Document:

Ex-10.1 9-30-12

Exhibit 10.1

INVESTMENT PLACEMENT AGREEMENT
THIS INVESTMENT PLACEMENT AGREEMENT (this “Agreement”) is made and entered into as of the 29th day of June, 2012, by and between America First Tax Exempt Investors, L.P., a Delaware limited partnership (the “Fund”), and America First Capital Associates Limited Partnership Two, a Nebraska limited partnership serving as the sole general partner of the Fund (the “General Partner”).
W I T N E S S E T H:
WHEREAS, the Fund has been formed for the primary purpose of acquiring federally tax-exempt mortgage revenue bonds issued by state and local housing authorities to provide construction and/or permanent financing for multifamily housing projects that provide affordable housing in their market areas (“Multifamily Bonds”); and
WHEREAS, the Fund may also invest in certain other types of tax-exempt securities that may or may not be secured by real estate (“Alternative Investments”) and the General Partner believes it is in the best interests of the Fund and its limited partners for the General Partner to seek Alternative Investments which may improve the Fund's investment return and cash available for distribution and the Fund desires to encourage the General Partner to identify, evaluate and develop Alternative Investments for the benefit of the Fund and its limited partners; and
WHEREAS, the General Partner is currently allowed to receive a mortgage placement fee of up to 1.0% of the amount invested by the Fund in Multifamily Bonds that is typically paid out of the bond proceeds provided by the Fund to the underlying borrowers; and
WHEREAS, the General Partner has currently identified a category of Alternative Investments identified in Exhibit A hereto and has devoted, and will continue to devote, time and resources to the identification, evaluation, development and negotiation of these Alternative Investments on behalf of the Fund which is at least as great as the time and resources typically devoted by the General Partner to the acquisition of Multifamily Bonds; and
WHEREAS, Alternative Investments, including the two Alternative Investments listed on Exhibit A which are currently under consideration for acquisition by the Fund, are generally not expected to be structured so as to allow the General Partner to receive a placement fee payable out of proceeds provided by the Fund to an underlying borrower in the same manner as the mortgage placement fees are payable to the General Partner with respect to Multifamily Bond investments made by the Fund; and
WHEREAS, the Fund desires to encourage the General Partner to identify, evaluate and develop Alternative Investments on behalf of the Fund by directly paying a placement fee to the General Partner in connection with the investments made by the Fund in such Alternative Investments on terms similar to the mortgage placement fees payable to the General Partner out of bond proceeds provided by the Fund in connection with its investment in Multifamily Bonds; and
WHEREAS, the General Partner has determined that the payment of such a placement fee in connection with the work performed to allow the Fund to make the Alternative Investments is fair and reasonable, in the best interest of the Fund and its limited partners and is consistent with the terms and conditions of the Fund's Agreement of Limited Partnership, dated October 1, 1998 (the “Limited Partnership Agreement”), including Section 5.03 thereof.
NOW, THEREFORE, in consideration of the mutual promises and covenants made herein, the Fund and the General Partner agree as follows:
1.  Alternative Investment Placement Services.  In order to increase investment returns and cash available for distribution to the Fund's limited partnership, the General Partner, acting on behalf of the Fund, agrees to identify, evaluate and negotiate the terms of Alternative Investments meeting the investment criteria of the Fund as set forth in the Limited Partnership Agreement, including, but not limited to, the Alternative Investments described in Exhibit A hereto.  Exhibit A may be amended from time to time in connection with the acquisition of additional Alternative Investments by the Fund.

2.  Placement Fee.  As compensation to the General Partner for the identification, evaluation, development and negotiation of Alternative Investments, the Fund will pay a placement fee to the General Partner at the time the Fund acquires an Alternative Investment at a market rate, but in no event to exceed 1.0% of the total principal amount of such Alternative Investment (excluding any accrued interest thereto).
3.  Termination.  This Agreement may be terminated, without penalty, by either party upon delivery of 60 day's prior written notice to the other party.  The Fund may terminate this Agreement pursuant to this Section 3 by a vote of the holders of a majority of the issued and outstanding Beneficial Unit Certificates representing assigned limited partner interests in the Fund pursuant to Section 5.03(c) of the Limited Partnership Agreement.
4.  Amendment.  This Agreement may be amended at any time by action of the Fund and the General Partner, provided that any such amendment must be in writing and signed by the Fund and the General Partner.
5.  Applicable Law.  This Agreement and the rights of the parties hereunder shall be construed and interpreted under the laws of the State of Nebraska.
6.  Entire Agreement.  This Agreement sets forth all, and is intended by all parties to be an integration of all, promises, agreements and understanding among the parties hereto with respect to the subject matter hereof and no other promises, agreements or understanding, whether written or oral, expressed or implied, with respect thereto shall have any force or effect whatsoever.

IN WITNESS WHEREOF, each of the Fund and the General Partner has caused this Agreement to be duly executed on its behalf as of the date first above written.

America First TAX EXEMPT INVESTORS, L.P.
By:      /s/ Mark A. Hiatt                    
        Mark A. Hiatt, President

America First Capital Associates Limited Partnership Two
By: The Burlington Capital Group L.L.C., its general partner
By:      /s/ Lisa Roskens                
       Lisa Roskens, President and Chief Executive Officer

EXHIBIT A
Alternative Investments
	
			
	Description of Alternative Investment
	Principal Amount
	Placement Fee

	Investment Grade Rated Public Housing Capital Fund Trusts' Certificates
	Up to $75 million
	1% of Par ValueEXHIBIT 10.1

 

EXECUTION COPY

AMENDMENT NO. 1

Dated as of September 25, 2012

to

CREDIT AGREEMENT

Dated as of October 19, 2011

THIS AMENDMENT NO. 1 (this "Amendment") is made as of September 25, 2012 by and among Central Hudson Gas & Electric Corporation, a New York corporation (the "Borrower"), the financial institutions listed on the signature pages hereof and JPMorgan Chase Bank, N.A., as Administrative Agent (the "Administrative Agent"), under that certain Credit Agreement dated as of October 19, 2011 by and among the Borrower, the Lenders and the Administrative Agent (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement").  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.

WHEREAS, the Borrower has requested that the requisite Lenders and the Administrative Agent agree to certain amendments to the Credit Agreement;

WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent have so agreed on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Lenders party hereto and the Administrative Agent hereby agree to enter into this Amendment.

1.            Amendments to the Credit Agreement.  Effective as of the date of satisfaction of the conditions precedent set forth in Section 2 below, the parties hereto agree that the Credit Agreement is hereby amended as follows:

 

(a)            Section 1.01 of the Credit Agreement is hereby amended to insert the following definition in the appropriate alphabetical order:

 

"Fortis" means Fortis Inc., a corporation organized under the Corporation Act of Newfoundland and Labrador.

(b)            The definition of "Change in Control" appearing in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

"Change in Control" means (i)  prior to the effectiveness of the acquisition (directly or indirectly) of all or substantially all of the outstanding common stock of Holdings and the Borrower by Fortis: (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity Interests representing more than 20% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of Holdings; or (b) Holdings ceases to own, directly or indirectly, and Control 100% of the ordinary voting power of the Borrower, disregarding for purposes of this determination any preferred stock of the Borrower so long as the holders of such preferred stock are not entitled to vote at the time in the election of directors and (ii) on and after the effectiveness of the acquisition (directly or indirectly) of all or substantially all of the outstanding common stock of Holdings and the Borrower by Fortis: (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity Interests representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of Fortis; or (b) Fortis ceases to own, directly or indirectly, and Control 100% of the ordinary voting power of the Borrower, disregarding for purposes of this determination any preferred stock of the Borrower so long as the holders of such preferred stock are not entitled to vote at the time in the election of directors; or (c) occupation of a majority of the seats (other than vacant seats) on the board of directors of Fortis by Persons who were neither (i) nominated by the board of directors of Fortis nor (ii) appointed by directors so nominated.

 

2.            Conditions of Effectiveness.  The effectiveness of this Amendment is subject to the conditions precedent that (i) the Administrative Agent shall have received counterparts of this Amendment duly executed by the Borrower, the Required Lenders and the Administrative Agent and (ii) the Administrative Agent shall have received payment and/or reimbursement of the Administrative Agent's and its affiliates' fees and expenses (including, to the extent invoiced, fees and expenses of counsel for the Administrative Agent) in connection with this Amendment.

 

3.            Representations and Warranties of the Borrower.  The Borrower hereby represents and warrants as follows:

 

(a)            This Amendment and the Credit Agreement as modified hereby constitute legal, valid and binding obligations of the Borrower and are enforceable against the Borrower in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

(b)            As of the date hereof and after giving effect to the terms of this Amendment, (i) no Default or Event of Default has occurred and is continuing and (ii) the representations and warranties of the Borrower set forth in the Credit Agreement, as amended hereby, are true and correct.

 

4.            Reference to and Effect on the Credit Agreement.

 

(a)            Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as amended hereby.

 

(b)            Each Loan Document and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

 

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(c)            Except with respect to the subject matter hereof, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement, the Loan Documents or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

5.            Governing Law.  This Amendment shall be construed in accordance with and governed by the law of the State of New York.

 

6.            Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

7.            Counterparts.  This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Signatures delivered by facsimile or PDF shall have the same force and effect as manual signatures delivered in person.

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

 

		
CENTRAL HUDSON GAS & ELECTRIC CORPORATION,

	
		as the Borrower	
			 	
			 	
		By: 	/s/ Stacey A. Renner	
		Stacey A. Renner	
		Treasurer	

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of October 19, 2011

Central Hudson Gas & Electric Corporation

 

 

 

 

 

		
JPMORGAN CHASE BANK, N.A.,

	
		individually as a Lender, as the Swingline Lender, as the Issuing Bank and as Administrative Agent	
			 	
			 	
		By: 	/s/ Scott A. McNamara	
		Name: Scott A. McNamara	
		Title: Senior Underwriter	

Signature Page to Amendment No. 1 to

Credit Agreement dated as of October 19, 2011

Central Hudson Gas & Electric Corporation

 

 

 

 

 

 

		
KEYBANK NATIONAL ASSOCIATION,

	
		as a Lender	
			 	
			 	
		By: 	/s/ Sherrie I. Manson	
		Name: Sherrie I. Manson	
		Title: Senior Vice President	

 

 

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of October 19, 2011

Central Hudson Gas & Electric Corporation

 

 

 

 

 

		
HSBC BANK USA, NATIONAL ASSOCIATION,

	
		as a Lender	
			 	
			 	
		By: 	/s/ Bruce Yoder	
		Name: Bruce Yoder	
		Title: Vice President	

 

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of October 19, 2011

Central Hudson Gas & Electric Corporation

 

 

 

 

		
BANK OF AMERICA, N.A.,

	
		as a Lender	
			 	
			 	
		By: 	/s/ Karen D. Finnerty	
		Name: Karen D. Finnerty	
		Title: Senior Vice President	

 

 

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of October 19, 2011

Central Hudson Gas & Electric Corporation

 

 

 

 

 

		
RBS CITIZENS, N.A.,

	
		as a Lender	
			 	
			 	
		By: 	/s/ David Lang	
		Name: David Lang	
		Title: Vice President

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of October 19, 2011

Central Hudson Gas & Electric Corporation

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