Document:

Employment Agreement, between Gregory M. Capitolo and Tumbleweed

 
EXHIBIT 10.13

 
[LETTERHEAD OF TUMBLEWEED COMMUNICATIONS CORP.]

 
June 20, 2002 
 
Gregory M. Capitolo 
 
Dear Greg, 
 
I am pleased to confirm the offer extended to you to join Tumbleweed Communications Corp. in the position of Senior Vice
President-Finance and Chief Financial Officer, reporting to me, and subject to confirmation by our Board of Directors. 
 
Salary and Bonus.    Your starting salary will be $7,708.33 per semi-monthly pay period, which is equivalent to $185,000.00 on
an annualized basis. You will also be eligible for an annual performance bonus of up to $55,500.00, based on mutually agreed objectives and company performance metrics we will establish after your start date. All salary and bonus payments are
subject to normal withholdings. Tumbleweed will also reimburse you for up to $2,500.00 of attorneys fees you incur personally in connection with legal advice concerning this employment offer. 
 
Stock Options.    As part of your compensation
package, you will be granted stock options to purchase 200,000 shares of Tumbleweed common stock. The stock options are subject to a vesting schedule, whereby 25% of the options vest upon completion of one year of employment at Tumbleweed, and the
remaining options vest monthly thereafter over a three-year period, for a total vesting period of four years. 
 
Termination.    If Tumbleweed unilaterally terminates your employment for any reason other than Cause, or in the case of a Constructive Termination, (i) Tumbleweed will pay
you as severance payment an amount equal to six months of your base salary, paid in a lump sum within 30 days of such termination, and (ii) Tumbleweed will reimburse you for any out-of-pocket COBRA costs you incur during the first six months after
such termination. In the event of termination for Cause, or if you voluntarily resign, you will not be entitled to such severance payment, or any additional payments, salary, bonus, stock option vesting, or benefits. 
 
Change of Ownership Control.    If a Change of
Ownership Control occurs, followed by your involuntary termination (except for Cause) or Constructive Termination within six months of the Change of Ownership Control, upon such termination, (i) the vesting of one year’s worth of your
outstanding stock options immediately will be accelerated and (ii) you will be entitled to receive as severance the payment of an amount equal to one year of your base salary, paid in a lump sum within 30 days of such termination. For avoidance of
doubt, under no circumstances will you be entitled to receive the lump sum payment described in the preceding sentence in addition to the lump sum payment described in the paragraph above titled “Termination”; either one lump sum payment
provision will apply or the other but not both. “Change of Ownership Control” means any sale of all or substantially all of Tumbleweed’s assets, or any merger, consolidation, or stock sales that results in the holders of
Tumbleweed’s capital stock immediately prior to such transaction owning less than 50% of the voting power of Tumbleweed’s capital stock immediately after such transaction. 
 

 
Cause.    Notwithstanding the other provisions of this agreement, in the event of termination for Cause, you will not be entitled to any severance payment, or any additional payments, salary, bonus, stock
option vesting, or benefits. For purposes of this agreement, “Cause” means only: the commission of a felony by you and intended to result in your substantial personal enrichment at Tumbleweed’s expense, your conviction of a crime
involving moral turpitude, or your willful failure to perform your duties to Tumbleweed, which failure is deliberate, results in injury to Tumbleweed, and continues for more than 15 days after written notice is given to you. For purposes of this
definition, no act or omission is considered to have been “willful” unless it was not in good faith and you had knowledge at the time that the act or omission was not in the best interests of Tumbleweed. 
 
Constructive Termination.    For purposes of this
agreement, “Constructive Termination” consists of reduction of base salary, diminution of duties, change in title or reporting relationship, change in office location by more than ten (10) miles, or the failure of any successor to the
assets or business through any Change of Ownership Control to fully assume all obligations of Tumbleweed under this agreement. 
 
Benefits Package.    Beginning on the first of the month following full time employment start date, you and your eligible
dependents will be able to participate in a comprehensive benefits program including medical, dental and vision insurance. 
 
Additionally, beginning on the first of the month following full time employment start date, you will also be able to participate in other benefit
programs, including: Life and AD&D insurance; Short and Long-Term Disability insurance; and an Employee Assistance Program. Insurance premiums for employee coverage in benefit plans are paid 100% by Tumbleweed. Medical insurance premiums for
eligible dependents are paid approximately 80% by Tumbleweed. Vision and Dental Insurance premiums for eligible dependents are paid 100% by Tumbleweed. 
 
You will also be eligible to participate in a 401(k) Plan and Pre-Tax Flexible Benefits Plan. Furthermore, you will be entitled to fifteen (15) days of
paid time off during your first year, accruing at the rate of 10 hours per month from your date of hire, as well other paid holidays. Additionally, you will be eligible to participate in the Tumbleweed Employee Stock Purchase Plan. Dates of
eligibility for these programs are set forth in the documents governing such plans. 
 
Proprietary Information.    As a condition of employment, you will be required to sign a Proprietary Information and Inventions Agreement. You should also note that, in accordance with federal law,
you will be required to demonstrate employment eligibility, which includes verification of your identity and of your authorization to work in the United States. Tumbleweed requests that you provide documentation on your first day at work and in any
event it must be provided to Tumbleweed no later than three (3) business days of your date of hire. 
 

 
At-Will
Employment.    If you choose to accept this offer, please understand your employment is voluntarily entered into and is for no specific period. As a result, you are free to resign at any time, for any reason, or for no
reason. Similarly, Tumbleweed is free to conclude its at-will employment relationship with you at any time, with or without cause. 
 
Greg, we hope you agree that you have a great contribution to make to Tumbleweed, and that you will find working here a rewarding experience. We look
forward to a favorable reply and the opportunity of working with you to create a successful company. 
 
To indicate your acceptance of this offer of employment, please sign and date this confirmation form and return it to Tumbleweed. This letter, along with the Tumbleweed Communications Employee Manual
and the Plan Documents governing the health and welfare benefit plans, which you will receive shortly, sets forth the terms of your employment with Tumbleweed and supersedes any prior representations or agreements, whether written or oral. The terms
and conditions in the Employee Manual and the Plan Documents are subject to change at any time by Tumbleweed, subject to requirements of federal, state or local law. This letter may only be modified by a written agreement signed by you and an
officer of Tumbleweed. 
 
This offer will terminate at midnight on
June 21, 2002. 
 

	
	 /s/    JEFFREY C.
SMITH

	 Jeffrey C. Smith
 Chief Executive Officer
 Tumbleweed
Communications Corp.

 
 
Please indicate acceptance of this offer by returning this form with your signature. 
 
I agree to and accept the enclosed offer of employment with Tumbleweed
Communications. My start date will be June 20, 2002. 
 

	
	 /s/    GREGORY M.
CAPITOLO

	 Gregory M. Capitolo

 

	
	 June 20, 2002

	 DateAmendment 2 to the 2nd Amended Credit Agreement

  EXHIBIT 10.37
  AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT
AGREEMENT
            THIS AMENDMENT NO. 2 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as of
January 20, 2003, and is by and among FEDERATED INVESTORS, INC., a Pennsylvania corporation (the “Borrower”), the BANKS set forth herein (collectively, the “Banks”), and PNC BANK, NATIONAL ASSOCIATION, as agent
for the Banks (the “Agent”).
            WHEREAS, the Borrower, the Banks and the Agent are parties to that certain Second Amended
and Restated Credit Agreement dated as of January 22, 2002, as amended by Amendment No. 1 to Second Amended and Restated Credit Agreement dated as of April 8, 2002 (the “Credit Agreement”);
            WHEREAS, the Borrower, the Banks and the Agent wish to amend the Credit Agreement as set forth herein.
            NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the parties hereto, intending to be legally bound, agree as
follows:

	  
 	  1.
 	  Definitions.
 
	  
 	  
 	  
 
	                    Capitalized terms used herein unless otherwise
defined herein shall have the meanings ascribed to them in the Credit Agreement as amended by this Amendment.
 
	  
 	  
 	  
 
	  
 	  2.
 	  Amendment of Credit Agreement.
 
	  
 	  
 	  
 
	                                     (a) 
         The definition of “Revolving Credit Expiration Date” in Section 1.1 of the Credit Agreement is hereby deleted in its entirety and the following is inserted in lieu
thereof:
 
	  
 	  
 	  
 
	  
 	                        Revolving Credit Expiration
Date shall mean January 18, 2004 (which is the date 364 days after the effective date of Amendment No. 2 to Second Amended and Restated Credit Agreement among the Borrower, the Banks and the Agent) or such later date as determined
pursuant to Section 2.13(a).
 
	  
 	  
 
	                                     (b) 
         Section 8.2(g) [Guaranties] of the Credit Agreement is hereby amended by inserting the following immediately before the end of the sentence:
 
	  
 
	  
 	                                       and
(iii) the Guaranty dated January 1, 2000 by the Borrower in favor of  40th Associates pursuant to which the Borrower guarantees that certain lease dated October 9, 1998 between InvestLink Technologies, Inc., as lessee, and 40th 

				

	  
 	 Associates, as lessor, of commercial space located at 8 West 40th Street, New York, NY at an annual rent of approximately $225,000 and with a term expiring December 31,
2008.
 
	  
 	  
 
	                                     (c) 
         Section 8.2(i) [Dividends and Related Distributions] of the Credit Agreement is hereby amended by deleting clause (iv) in its entirety and inserting the following in lieu
thereof:
 
	  
 
	  
 	                                      
 (iv)     during the Borrower’s fiscal year 2003 and thereafter, so long as (A) no Event of Default or Potential Default has occurred and is continuing, and (B) the Borrower is in compliance with
Section 8.2(a), in the case of both clauses (A) and (B) after giving effect to any such dividend or stock repurchase payment, the Borrower may (1) make dividend payments with respect to the Common Shares and in an amount not to exceed, and
(2) in addition to repurchases of Class B Shares permitted pursuant to Section 8.2(i)(ii) above, repurchase Class B Shares for an amount not to exceed, in any fiscal year on a cumulative basis for clauses (1) and (2), 50% of any
net income (or minus 100% of any net loss) of the Borrower and its Subsidiaries from January 1, 2000 through the date of payment.
 
	  
 
	                                    (d) 
         Section 8.2(j) [Liquidations, Mergers, Consolidations and Acquisitions] of the Credit Agreement is hereby amended by inserting the following sentence at the end of such section:

	  
 
	                                     The parties
expressly acknowledge that Section 8.2(j) does not restrict the acquisition of assets by a Fund in the ordinary course of business where no liabilities are assumed by the Fund and the acquisition price consists of trailer payments based on
average net assets in the Fund from time to time but in no event more than the Fund Fees received by any of the Companies and such fees are paid out of the Fund itself or by any of the Companies in accordance with normal business
practices.
 
	  
 
	                                     (e) 
         Section 8.3(g) [Certain Events] of the Credit Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof:
 
	  
 
	                                     
              (g)     Certain Events.
 
	  
 
	  
 	                                      
            Written notice to the Agent of (i) any sale or other transfer of assets as permitted under subsections (ii), (iii) or (iv) of Section 8.2(k), (ii) any merger,
acquisition, consolidation or liquidation permitted under Section 8.2(j), (iii) any change in the ownership or management of the Borrower permitted under Section 8.2(u), (iv) the creation or acquisition of any new Subsidiaries or
investment in any other corporate entity, such notice to be delivered to the Agent within five (5) Business Days after occurrence of such event or consummation of such transaction(s), and in the case of the creation or acquisition of a new
Subsidiary or investment in any other corporate entity, accompanied by the items specified in Section 8.1 to be delivered within thirty (30) calendar days after the creation or acquisition of a new Subsidiary or investment in any 

 - 2 -

	  
 	  other corporate entity, and (v) any amendment to the declaration of trust, certificate or articles of incorporation, bylaws, partnership agreement or other
organizational documents of any of the Companies or the use by any of the Companies of any fictitious name, it being understood that any such amendments require at least ten (10) Business Days’ prior notice to the Agent and may in some cases,
including any amendment to the  Articles of Incorporation of the Borrower which the Agent has determined would be adverse to the Banks pursuant to Section 8.2(s), require the prior written consent of the Required Banks.  Written
notice to the Agent of any sale or other transfer of assets as permitted under Section 8.2(k)(i) shall be given on a quarterly basis at the same time that quarterly financial statements are required to be delivered under
Section 8.3(b).
 
	  
 	  
 
	                                     (f) 
         Schedule 1.1(a) [Commitments of the Banks] of the Credit Agreement is hereby deleted in its entirety and Schedule 1.1(a) attached hereto is inserted in lieu thereof.

	  
 
	                                    (g) 
         Exhibit I [Compliance Certificate] of the Credit Agreement is hereby deleted in its entirety and Exhibit I attached hereto is inserted in lieu thereof.
 
	  
 
	                           3.       Conditions of Effectiveness
of Amendment of Credit Agreement.  The effectiveness of this Amendment of the Credit Agreement is expressly conditioned upon satisfaction of each of the following conditions precedent on the date hereof:
 
	  
 
	                                     (a) 
         Representations and Warranties; No Defaults.  The representations and warranties of the Borrower contained in Article VI of the Credit Agreement shall be true and accurate on the
date hereof with the same effect as though such representations and warranties had been made on and as of such date (except representations and warranties which relate solely to an earlier date or time, which representations and warranties shall be
true and correct on and as of the specific dates or times referred to therein), and the Borrower shall have performed and complied with all covenants and conditions under the Senior Loan Documents and hereof; and no Event of Default or Potential
Default under the Credit Agreement and the other Senior Loan Documents shall have occurred and be continuing or shall exist.
 
	  
 
	                                    (b) 
         Authorization and Incumbency.  There shall be delivered to the Agent for the benefit of each Bank a certificate, dated as of the date hereof, and signed by the Secretary or an
Assistant Secretary of the Borrower, certifying as appropriate as to:
 
	  
 
	  
 	  (i)
 	  all action taken by the Borrower in connection with this Amendment and the other Senior Loan Documents; and
 
	  
 	  
 	  
 
	  
 	  (ii)
 	  the names of the officer or officers authorized to sign this Amendment and the other documents executed and delivered in connection herewith and described in this Section 3 and
the true signatures of such officer or officers.
 
	  
 	  
 	  
 
	                                    (c) 
         Notes.  There shall be delivered to the Agent for the benefit of each Bank which is having its Revolving Credit Commitment amended pursuant to this Amendment a 
 
				

  - 3 -

	  Revolving Credit Note executed by the Borrower which reflects its new Revolving Credit Commitment as set forth on Schedule 1.1(a) hereto.
 
	  
 
	                                     (d) 
         Acknowledgment.  There shall be delivered to the Agent for the benefit of each Bank the Confirmation in the form attached hereto as Exhibit 1 hereto executed by each of the
Loan Parties (other than the Borrower).
 
	  
 
	                                     (e) 
         Legal Details; Counterparts.  All legal details and proceedings in connection with the transactions contemplated by this Amendment shall be in form and substance satisfactory to the
Agent.  The Agent shall have received from the Borrower and each of the Banks an executed original of this Amendment.  Each of this Amendment and the Confirmation may be executed by the parties hereto or thereto in any number of separate
counterparts, each of which when taken together shall constitute one and the same instrument.
 
	  
 
	                                    (f) 
         Amendment Fee.  The Borrower shall pay to each of the Banks in immediately available funds an amendment fee equal to five (5) basis points of each Bank’s Revolving Credit
Commitment, determined as of the date of this Amendment.
 
	  
 
	                           4.       Fees and Expenses. 
The Borrower hereby agrees to reimburse the Agent and the Banks on demand for all legal costs, expenses and disbursements relating to this Amendment which are payable by the Borrower as provided in Sections 10.5 and 11.3 of the Credit
Agreement.
 
	  
 
	                           5.       Force and Effect. 
Except as expressly modified by this Amendment, the Credit Agreement and the other Senior Loan Documents are hereby ratified and confirmed and shall remain in full force and effect after the date hereof.
 
	  
 
	                          6.       Governing Law.  This
Amendment shall be deemed to be a contract under the laws of the Commonwealth of Pennsylvania and for all purposes shall be governed by and construed and enforced in accordance with the internal laws of the Commonwealth of Pennsylvania without
regard to its conflict of laws principles.
 

  [SIGNATURE PAGES FOLLOW]
  - 4 -

   SIGNATURE PAGE 1 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
                 IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this Amendment No. 2 to Second
Amended and Restated Credit Agreement as of the date first above written.

	  
 	  FEDERATED INVESTORS, INC.
 
	  
 	  
 
	  
 	 By:  
 	  /s/ DENIS MCAULEY III
 
	  
 	  
 	 
 
	  
 	  Name:
 	  Denis McAuley, III
 
	  
 	  Title:
 	  Vice President
 

   SIGNATURE PAGE 2 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	  
 	  PNC BANK, NATIONAL ASSOCIATION
 individually and as Agent
 
	  
 	  
 
	  
 	 By:  
 	  /s/ ENRICO DELLA
CORNA
 
	  
 	  
 	 
 
	  
 	  Name:
 	  Enrico Della Corna
 
	  
 	  Title:
 	  Vice President
 

   SIGNATURE PAGE 3 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	  
 	  BANK OF AMERICA, NATIONAL ASSOCIATION
 
	  
 	  
 
	  
 	 By:  
 	  /s/ ELIZABETH W.F. BISHOP
 
	  
 	  
 	 
 
	  
 	  Name:
 	  Elizabeth W.F. Bishop
 
	  
 	  Title:
 	  Managing Director
 

   SIGNATURE PAGE 4 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	  
 	  US BANK, N.A.
 
	  
 	  
 
	  
 	 By:  
 	  /s/ DAVID J. DANNEMILLER
 
	  
 	  
 	 
 
	  
 	  Name:
 	  David J. Dannemiller
 
	  
 	  Title:
 	  Vice President
 

   SIGNATURE PAGE 5 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	  
 	  STATE  STREET BANK AND TRUST COMPANY
 
	  
 	  
 
	  
 	 By:  
 	  /s/ JOHN T. DALEY
 
	  
 	  
 	 
 
	  
 	  Name:
 	  John T. Daley
 
	  
 	  Title:
 	  Vice President
 

   SIGNATURE PAGE 6 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	  
 	  BANKONE, NA (Main Office Chicago)
 
	  
 	  
 
	  
 	 By:  
 	  /s/ ANDREA S. KANTOR
 
	  
 	  
 	 
 
	  
 	  Name:
 	  Andrea S. Kantor
 
	  
 	  Title:
 	  Director
 

   SIGNATURE PAGE 7 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	  
 	  CITIBANK, N.A.
 
	  
 	  
 
	  
 	  By:  
 	  /s/ MATTHEW NICHOLLS
 
	  
 	  
 	 
 
	  
 	 Name:
 	  Matthew Nicholls
 
	  
 	  Title:
 	  Vice President
 

   SIGNATURE PAGE 8 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	  
 	  FLEET NATIONAL BANK
 
	  
 	  
 
	  
 	  By:  
 	  /s/ LAWRENCE DAVIS
 
	  
 	  
 	 
 
	  
 	 Name:
 	  Lawrence Davis
 
	  
 	  Title:
 	  Portfolio Manager
 

   SIGNATURE PAGE 9 OF 9 TO AMENDMENT NO. 2
 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	  
 	  FIFTH THIRD BANK
 
	  
 	  
 
	  
 	  By:  
 	  /s/ CHRISTOPHER HELMECI
 
	  
 	  
 	 
 
	  
 	 Name:
 	  Christopher Helmeci
 
	  
 	  Title:
 	  Vice President
 

   EXHIBIT I
  FORM OF
 COMPLIANCE CERTIFICATE
  PNC Bank, National Association, as Agent
 One PNC Plaza, 2nd Floor
 249 Fifth Avenue
 P1-POPP-02-1
 Pittsburgh, PA 15222
 Telephone No.:  (412) 762-3669
 Telecopier No.: (412) 705-0981

Attn:   John Werner, Vice President
  Ladies and Gentlemen:
                 Pursuant to Section 8.3(d) of the Second Amended and Restated Credit Agreement (the “Agreement”) dated as of
January 22, 2002, by and among Federated Investors, Inc. (the ”Borrower”), the Banks party thereto, and PNC Bank, National Association, as agent (the “Agent”) for the Banks, as further amended, restated or
supplemented from time to time, I, the [Chief Executive Officer / President / Chief Financial Officer / Treasurer / Principal Accounting Officer] of the Borrower, in my capacity as the [Chief Executive Officer / President / Chief Financial Officer /
Treasurer / Principal Accounting Officer], do hereby certify to the Banks and the Agent as follows (capitalized terms which are not defined herein have the meanings given in the Agreement) as of the [quarter/year] ending on _____________ (the
“Report Date”):

	 (1)
 	  The representations and warranties of the Borrower contained in Article 6 of the Agreement and any certifications delivered by any of the Companies after the Closing Date are true
on and as of the Report Date with the same effect as though such representations, warranties and certifications had been made on and as of such date (except representations, warranties and certifications which expressly related solely to an earlier
date and time which representations, warranties and certifications were true on and as of the specific date referred to therein), and the Borrower has performed and complied with all covenants and conditions of the Agreement, [except that:
insert any applicable disclosures].
 
	  
 	  
 
	  (2)
 	  No Event of Default or Potential Default exists and is continuing.
 
	  
 	  
 
	  (3)
 	  Minimum Consolidated EBITDA.  (Section 8.2(a)).  Consolidated EBITDA, for the four (4) fiscal quarters ending as of the Report Date, is $__________ (see item
4(A)(iv) below), which is not less than $200,000,000.
 

	 (4)
 	  Minimum Interest Coverage Ratio (Section 8.2(b)).  The ratio of (A)  Consolidated EBITDA to (B) consolidated interest expense, for the four (4)
fiscal quarters ending as of the Report Date, is ________ to 1.0 which is not less than 4.0 to 1.0.
 
	  
 	  
 
	  
 	  (A)
 	  Consolidated EBITDA is computed as follows (each item is measured for the four (4) fiscal quarters ending on the Report Date on a consolidated basis):
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  (a)
 	  net income
 	  $________
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (b)
 	  depreciation
 	  $________
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (c)
 	  amortization
 	  $________
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (d)
 	  other non-cash charges to net income (excluding any non-cash charges which require an accrual or reserve for cash charges for any future period)
 	  $________
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (e)
 	  interest expense
 	  $________
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (f)
 	  income tax expense
 	  $________
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  Sum of Items (a), (b), (c), (d), (e) and (f)
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  Non-cash credits to net income
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  Item (ii) reduced by Item (iii) equals Consolidated EBITDA
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	 (B)
 	  Consolidated interest expense for the four (4) fiscal quarters ending on the Report Date
 	  $________
 
	  
 	  
 	  
 	  
 
	  
 	  (C)
 	  Ratio of Item (A)(iv) to Item (B) equals interest coverage ratio
 	  ___ to 1.0
 
	  
 	  
 	  
 	  
 
	  (5)
 	  Maximum Leverage Ratio (Section 8.2(c)).  Beginning with the fiscal quarter ending December 31, 2001, the ratio of (A) Total Indebtedness on the
Report Date to (B) Consolidated EBITDA for the four (4) fiscal quarters ending as of the Report Date is ________ to 1.0 which does not exceed 2.0 to 1.0.
 	  
 
	  
 	  
 	  
 
	  
 	 (A)
 	  Total Indebtedness as of the Report Date (each item is measured on a consolidated basis):
 	  
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  Borrowed money (including money borrowed under the Agreement)
 	  $________
 

	  
 	  
 	  (ii)
 	  Amounts raised under or liabilities in respect of any note purchase or acceptance credit facility
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (iii)
 	  Reimbursement obligations under letters of credit, currency swap agreements, any interest rate swap, cap, collar or floor agreement or other interest rate protection
devices
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  Other transactions (including forward sale or purchase agreements, capitalized leases and conditional sales agreements) having the commercial effect of a borrowing of money
entered into by such person to finance operations or capital requirements (but not including trade payables and accrued expenses incurred in the ordinary course of business which are not more than thirty (30) days past due)
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (v)
 	  Any Guaranty of Indebtedness for borrowed money
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (vi)
 	  Sum of Items (i), (ii), (iii), (iv), and (v) equals Total Indebtedness
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  (B)
 	  Consolidated EBITDA for the four (4) quarters ending on the Report Date (insert figure from Item 4(A)(iv) above)
 	  $________
 
	  
 	  
 	  
 	  
 
	  
 	 (C)
 	  Ratio of Item (A)(vi) to Item (B) equals Leverage Ratio
 	  ___ to 1.0
 
	  
 	  
 	  
 	  
 	  
 
	  (6)
 	  Loans and Investments (Section 8.2(h)).  The Borrower and its Subsidiaries have not made any loans and investments in any other persons except as expressly
permitted under Section 8.2(h).
 	  
 
	  
 	  
 	  
 
	  
 	  (A)
 	  Less than Wholly Owned Corporate Entities (Subsection (iii)(B)).  The Companies’ investment in corporate entities in which the Borrower does not
maintain control but for which none of the Companies has any liability greater than its initial investment in such entity and where the activities in which such entity engages are consistent with the activities set forth in Section 6.1(aa) of the
Agreement is $________ on the Report Date which does not exceed the maximum permitted amount of $50,000,000.
 	  
 

	  
 	  
 	 Less than Wholly Owned Corporate Entities (list the dollar amount of each investment separately)
 

 

	  
 	  
 	  $
 	  _______
 	  
 
	  
 	  
 	  $
 	  _______
 	  
 
	  
 	  
 	  
 	  
 	  
 
	  Total
 	  
 	  $
 	  _______
 	  
 

 

	  
 	  (B)
 	  Limited Investments in Special Purpose Subsidiaries (Subsection (ix)).  The Companies’ Limited Investment in Special Purpose Subsidiaries is $_________ on the
Report Date which does not exceed the maximum permitted amount of $500,000.
 	  
 
	  
 	  
 	  
 	  
 
	  (7)
 	  
 	  Dividends and Related Distributions (Section 8.2(i)).  The Companies have not made or paid or agreed to make or pay any dividends or other distributions on account of
any shares of Borrower’s capital stock or the purchase, redemption or retirement of any such shares (or warrants, rights or options therefor) during the quarter ending on the Report Date except for (A) purchases of Class B Shares in the amount
of $________ or purchases of Restricted Stock in the amount of $____________ made in compliance with Sections 8.2(i)(ii) and (iv) of the Agreement and (B) dividends on Borrower’s Common Shares in the amount of $________ made in compliance with
Section 8.2(i)(iv) of the Agreement.
 	  
 
	  
 	  
 	  
 	  
 
	  
 	 (A)
 	  Purchase of Class B Shares and Restricted Stock (Subsection (ii) of 8.2(i)).  In addition to repurchases of Class B Shares permitted pursuant to Section 8.2(i)(iv) of
the Agreement, Item 7(B) of this Certificate, the Borrower has purchased Class B Shares (net of purchases of Restricted Stock) from and after January 1, 2001 through the Report Date, primarily on the open market and in accordance with any stock
repurchase plan authorized by the Board of Directors from time to time, in an amount of $__________ which is not more than $125,000,000 and the number of Class B Shares purchased is _________.  The Borrower has purchased Restricted Stock during
the term of the Agreement in the amount of $__________ which does not exceed the permitted amount of $5,000,000.
 	  
 

	  
 	  (B)
 	  Dividends and Repurchases (Subsection (iv) of Section 8.2(i)).  During Borrower’s fiscal year 2003 and thereafter, Borrower has paid dividends on its
Common Shares and, in addition to repurchases of Class B Shares permitted pursuant to Section 8.2(i)(ii), made repurchases of Class B Shares during its current fiscal year in the amount of $_________ which does not exceed on a cumulative basis
the permitted amount of 50% of any net income (or minus 100% of any net loss) of the Borrower and its Subsidiaries from January 1, 2000 through the date of payment.
 	  
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  Dividends paid by Borrower on its Common Shares and purchases of Class B Shares (in addition to repurchases permitted pursuant to Section 8.2(i)(ii) above) from
January 1, 2003 through the quarter preceding the quarter ending on Report Date.
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  Dividends paid by Borrower on its Common Shares and repurchases of Class B Shares (in addition to repurchases permitted pursuant to Section 8.2(i)(ii) above) during the
quarter ending on the Report Date.
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (iii)
 	  50% of any net income (or minus 100% of any net loss) of the Borrower and its Subsidiaries from January 1, 2000 through the date of payment.
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  Sum of clauses (i) and (ii) (may not exceed amount in line (iii))
 	  $________
 
	  
 	  
 	  
 	  
 	  
 
	  (8)
 	  Liquidations, Mergers, Consolidations, Acquisitions (Section 8.2(j)).  None of the Companies was a party to any dissolution, liquidation, merger,
consolidation or acquisition during the quarter ending on the Report Date, except as expressly permitted under Section 8.2(j).
 	  
 
	  
 	  
 	  
 
	  
 	 (A)
 	  Acquisitions of Stock or Assets of Third Parties (Subsection (iii) of Section 8.2(j)).
 	  
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  The Borrower and each Consolidated Subsidiary of the Borrower did not acquire the stock or assets of any other persons except as listed below, each of which transactions is
correctly described below and was completed in compliance with Section 8.2(j)(iii) of the Agreement:
 	  
 

	  Date of
 Transaction
 	   
 	  Name of
 Seller
 	   
 	  Assets Acquired
 (Stock or Assets)
 	   
 	   
 	  Purchase
 Price
 (including
 liabilities
 assumed)
 	   
 	   
 	   
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	 
 	  
 	  
 	  
 
	 ____________
 	   
 	  ____________
 	   
 	  ____________
 	  
 	   
 	  $____________
 	  
 	  
 	  
 
	 ____________
 	   
 	  ____________
 	   
 	  ____________
 	  
 	   
 	  $____________
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	   
 	  $____________
 	  
 	  (Total)
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 

 

	  (9)
 	  Disposition of Assets or Subsidiaries (Section 8.2(k)).  The Borrower and its Subsidiaries did not sell, convey, assign, lease, abandon or otherwise
transfer or dispose of, voluntarily or involuntarily, any of their properties or assets, tangible or intangible (including sale, assignment, discount or other disposition of accounts, contract rights, chattel paper, equipment or general intangibles
with or without recourse or of capital stock, shares of beneficial interest or partnership interests of a Subsidiary), except in accordance with clauses (i) through (iv) of Section 8.2(k) of the Agreement.
 	  
 
	  
 	  
 	  
 
	  
 	  (A)
 	  Designated Assets (Subsection (i) of Section 8.2(k)).  The following Subsidiaries of the Borrower have sold or transferred Designated Assets in the following amounts
in connection with a securitization or other receivables sale transaction in accordance with Section 8.2(k)(i):
  
 	  
 
				

 

	  Subsidiary
 	   
 	   
 	  Amount of Designated Assets Transferred
 
	 
 	  
 	  
 	 
 
	  
 	   
 	   
 	  
 
	 
 	   
 	   
 	 
 
	 
 	   
 	   
 	 
 
	 
 	  
 	  
 	 
 

 

	  
 	  (B)
 	  Unnecessary Assets (Subsection (ii) of Section 8.2(k).  The after-tax proceeds (net of customary expenses) in connection with sales, transfers or leases of assets of
the Borrower or its Subsidiaries no longer necessary or required in the conduct of their business during the fiscal year in which the Report Date falls is $________ which does not exceed the permitted amount of $10,000,000.
 	  
 
	  
 	  
 	  
 	  
 
	  
 	  (C)
 	  Capital Stock or Substantially All Assets  (Subsection (iv) of Section 8.2(k)).  The assets of any sold or transferred Subsidiary comprised _____% of the total
assets of the Borrower and the Consolidated Subsidiaries for the most recent fiscal quarter ending prior to such disposition, which does not exceed the permitted percentage of 5%, and _____% of Consolidated EBITDA for the most recent four (4) fiscal

 	  
 

	  
 	  
 	 quarters ending prior to such disposition is attributable to such sold or transferred Subsidiaries or assets, which does not exceed the permitted percentage of 5%. 

	  
 
	  
 	  
 	  
 	  
 
	  (10)
 	  Change of Ownership (Section 8.2(u)).
 	  
 
	  
 	  
 	  
 	  
 
	  
 	  (A)
 	  No change in the ownership of Borrower’s capital stock has occurred during the quarter ending on the Report Date except for transactions permitted under of
Section 8.2(u) of the Agreement.
 	  
 
	  
 	  
 	  
 	  
 
	 (11)
 	  New Subsidiaries (Section 8.1(1)).  Borrower has not created or acquired any Subsidiaries during the calendar quarter ending on the Report Date except
for the following:
 	  
 

 

	  Name of Subsidiary
 	   
 	  Acquired/Formed
 	   
 	  Date of 
 Acquisition of 
 Formation
 
	 
 	  
 	 
 	  
 	 
 
	  
 	  
 	  
 	  
 	  
 
	 ____________
 	   
 	  ____________
 	   
 	  ____________
 
	  ____________
 	   
 	  ____________
 	   
 	  ____________
 
	  
 	  
 	  
 	  
 	  
 

 

	  [insert “None” if Borrower has not created or acquired any new Subsidiaries]
 	  
 
	  
 	  
 	  
 	  
 
	 If Borrower has listed any Subsidiaries above, Borrower must check and complete (1) or (2) below, as applicable (see Section 8.1(1)):
 	  
 
	  
 	  
 	  
 	  
 
	  
 	  (1)
 	  ___
 	  Borrower has previously caused each of the Subsidiaries listed above and its owners to execute and deliver to the Agent each of the following (check each of (a), (b) and (c), as
applicable):
 	  
 
	  
 	  
 	   
 	  
 	  
 
	  
 	  (a)
 	  ___
 	  A joinder to the Intercompany Subordination Agreement
 	  
 
	  
 	  
 	   
 	  
 	  
 
	  
 	 (b)
 	  ___
 	  A joinder to the Guaranty Agreement (not required for Foreign Subsidiaries or Subsidiaries that are less than wholly-owned and over which the Borrower does not maintain control as
permitted by Section 8.2(h)(iii)(B) of the Agreement)
 	  
 
	  
 	  
 	   
 	  
 	  
 
	  
 	  (c)
 	  ___
 	  a legal opinion confirming the matters set forth in Exhibit H to the Credit Agreement
 	  
 
	  
 	  
 	   
 	  
 	  
 
	  
 	 (2)
 	  ___
 	  Borrower is delivering each of the documents listed in item 1(a) through (c) above with this Certificate
 	  
 
							

	  
 	  FEDERATED INVESTORS, INC.
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 

  Exhibit 1
  Form of
 CONFIRMATION
                 Reference is hereby made to that certain Second Amended and Restated Credit Agreement by and between FEDERATED INVESTORS, INC., the
BANKS set forth therein, and PNC BANK, NATIONAL ASSOCIATION, as Agent for the Banks, dated as of January 22, 2002, as amended by Amendment No. 1 to Second Amended and Restated Credit Agreement dated as of April 8, 2002 (the
“Credit Agreement”).  All terms used herein unless otherwise defined herein shall have the meanings given to them in the Credit Agreement.
                 On the date hereof, the Borrower, the Banks and the Agent are entering into that certain Amendment No. 2 to Second Amended and
Restated Credit Agreement (the “Amendment”), a copy of which has been provided to the undersigned.  This Confirmation is delivered to the Bank pursuant to Section 3(c) of the Amendment.
                 Pursuant to the Credit Agreement, on the Closing Date (i) the Guarantors entered into that certain Continuing Agreement of Guaranty
and Suretyship in favor of the Agent for the benefit of the Banks (the “Guaranty Agreement”) and (ii) the Borrower and its Subsidiaries entered into that certain Intercompany Subordination Agreement in favor of the Agent for
the benefit of the Banks (the “Intercompany Subordination Agreement”).  This Confirmation will confirm to the Agent and the Banks that the undersigned Guarantors and Subsidiaries of the Borrower have read and understand the
Amendment which provides for, subject to certain conditions set forth in the Credit Agreement, the extension of the Revolving Credit Expiration Date and the modification of certain covenants.
                The Guarantors hereby ratify and confirm the Guaranty Agreement.  The Subsidiaries of the Borrower hereby ratify and confirm the
Intercompany Subordination Agreement.
                 This Confirmation is dated as of January 20, 2003.
  [SIGNATURE PAGES FOLLOW]

   [SIGNATURE PAGE 1 OF 5 OF CONFIRMATION]
                 IN WITNESS WHEREOF, intending to be legally bound hereby, the undersigned, by their duly authorized officers, have executed this
Confirmation as of the date set forth above.

	  
 	  EDGEWOOD SERVICES, INC.
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	 Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	  FEDERATED ADMINISTRATIVE SERVICES
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	  FEDERATED  ADMINISTRATIVE SERVICES, INC.
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 
	  
 	  
 
	  
 	  FEDERATED INVESTMENT MANAGEMENT COMPANY
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 

   [SIGNATURE PAGE 2 OF 5 OF CONFIRMATION]

	  
 	 FEDERATED INVESTORS TRUST COMPANY
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	 FEDERATED FINANCIAL SERVICES, INC.
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	 FEDERATED GLOBAL INVESTMENT MANAGEMENT CORP.
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	 Title:
 	   
 
	  
 	  
 	 
 
	  
 	  FEDERATED INTERNATIONAL MANAGEMENT LIMITED
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	 Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	  FEDERATED INVESTORS, INC.
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	 Title:
 	   
 
	  
 	  
 	 
 

   [SIGNATURE PAGE 3 OF 5 OF CONFIRMATION]

	  
 	  FEDERATED INVESTORS MANAGEMENT COMPANY
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	 Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	  FEDERATED INVESTMENT COUNSELING
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	 Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	  FEDERATED SECURITIES CORP.
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  FEDERATED SERVICES COMPANY
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	  FEDERATED SHAREHOLDER SERVICES COMPANY
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 

   [SIGNATURE PAGE 4 OF 5 OF CONFIRMATION]

	  
 	 FII HOLDINGS, INC.
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	 PASSPORT RESEARCH, LTD.
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	 FEDERATED INTERNATIONAL HOLDINGS BV
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	 Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	  FEDERATED INTERNATIONAL - EUROPE GMBH
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	 Title:
 	   
 
	  
 	  
 	 
 

     [SIGNATURE PAGE 5 OF 5 OF CONFIRMATION]

	  
 	  FEDERATED ASSET MANAGEMENT GMBH
 
	  
 	  
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	  Name:
 	  
 
	  
 	  
 	 
 
	  
 	 Title:
 	   
 
	  
 	  
 	 
 
	  
 	  
 	   
 
	  
 	  FEDERATED PRIVATE ASSET MANAGEMENT, INC.
 
	  
 	  
 
	  
 	  By:
 	  
 
	  
 	  
 	 
 
	  
 	 Name:
 	  
 
	  
 	  
 	 
 
	  
 	  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]