Document:

exv10w15

Exhibit 10.15

EXECUTION COPY

AMENDMENT NO. 1

to

REVOLVING CREDIT AND SECURITY AGREEMENT

          THIS AMENDMENT NO. 1 TO REVOLVING CREDIT AND SECURITY AGREEMENT (this “Amendment”) is
made as of November 25, 2008 by and among HIGHLAND DISTRESSED OPPORTUNITIES, INC. (the
“Borrower”), LIBERTY STREET FUNDING LLC, as the Conduit Lender (the “Lender”), THE
BANK OF NOVA SCOTIA, ACTING THROUGH ITS NEW YORK AGENCY, as Secondary Lender (the “Secondary
Lender”), and THE BANK OF NOVA SCOTIA, ACTING THROUGH ITS NEW YORK AGENCY, as Agent (the
“Agent”) under that certain Revolving Credit and Security Agreement dated as of June 27,
2008 by and among the Borrower, the Lender, the Secondary Lender and the Agent (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).
Defined terms used herein and not otherwise defined herein shall have the meaning given to them in
the Credit Agreement.

WITNESSETH

          WHEREAS, the Borrower, the Lender, the Secondary Lender and the Agent are parties to the
Credit Agreement and have agreed to amend the Credit Agreement on the terms and conditions set
forth herein; and

          WHEREAS, the Borrower and the Agent are parties to the Fee Letter and have agreed to amend the
Fee Letter 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 parties hereto hereby agree as follows:

          1. Amendments to the Credit Agreement. Subject to the satisfaction of the conditions
precedent set forth in Section 3 below, the Credit Agreement is hereby amended as follows:

     1.1. The definition of “Applicable Margin” set forth in Section 1.01 of the
Credit Agreement is hereby amended and restated in its entirety as follows:

     “Applicable Margin” means, with respect to the Eurodollar Rate, 3.00%
per annum and with respect to the Alternate Base Rate, 2.50% per annum.

     1.2. The definition of “Asset Coverage Test” set forth in Section 1.01 of the
Credit Agreement is hereby amended to delete therefrom the figure “300%” to insert therefor
the following figure: “350%”.

     1.3. The definition of “Borrowing Base Advance Rate” set forth in Section 1.01 of
the Credit Agreement is hereby amended to delete therefrom the phrase “(d) in respect of
Class A Loan Assets, 82.7%, (e) in respect of Class B Loan Assets, 76.6%, (f) in respect of
Class C Loan Assets, 60.3%, (g) in respect of Class D Loan Assets, 50.5%, (h) in respect of
any Bond Asset, Second Lien Loan Asset or Senior Unsecured Loan

 

 

Asset, the Borrowing Base
Advance Rate determined according to Schedule I hereto,” and insert therefor the following
phrase: “(d) in respect of Class A Loan Assets, 75.0%, (e) in respect of Class B Loan
Assets, 69.0%, (f) in respect of Class C Loan Assets, 40.0%, (g) in respect of Class D Loan
Assets, 30.0%, (h) in respect of any Bond Asset or Senior Unsecured Loan Asset, the Borrowing Base Advance Rate determined according to Schedule I hereto,”

     1.4. The definition of “Borrowing Base Excess Amount” set forth in Section
1.01 of the Credit Agreement is hereby amended to (i) delete from clause (i)
thereof the phrase “five percent (5%)” and insert therefor the phrase “four percent (4%)”,
(ii) delete from clause (ii) thereof the phrase “twenty percent (20%)” and insert
therefor the phrase “seventeen and one-half percent (17.5%)” and (iii) amend and restate
clause (viii) thereof in its entirety as follows:

     (viii) the amount by which the aggregate Borrowing Base Adjusted Asset Value
of all Borrowing Base Eligible Assets which constitute Participation Interests
exceeds two and one-half percent (2.5%) of the aggregate Borrowing Base Adjusted
Asset Value of all Borrowing Base Eligible Assets;

     1.5. The definition of “Eligible Loan Asset” set forth in Section 1.01 of the
Credit Agreement is hereby amended to delete from clause (iv) thereof the phrase: “, Second
Lien Loan Asset”.

     1.6. The definition of “Secondary Lender Stated Expiration Date” set forth in
Section 1.01 of the Credit Agreement is hereby amended to delete therefrom the date
“December 1, 2008” and to insert therefor the following date: “May 29, 2009”.

     1.7. The definition of “Total Commitment” set forth in Section 1.01 of the
Credit Agreement is hereby amended to delete therefrom the figure “$100,000,000” and to
insert therefor the following figure: “$60,000,000”.

     1.8. Section 1.01 of the Credit Agreement is hereby amended to insert the
following definition therein in the proper alphabetical location:

     “Participation Interest” means any Loan Asset that consists of a
participation interest in a loan or other extension of credit.

     1.9. Section 2.01 of the Credit Agreement is hereby amended and restated in
its entirety as follows:

     On the terms and conditions hereinafter set forth, including without
limitation, Sections 3.01 and 3.02, the Conduit Lender may, in its sole discretion,
make Advances to the Borrower on any Borrowing Date from the date hereof to the
Lender Termination Date. On the terms and conditions hereinafter set forth,
including without limitation, Sections 3.01 and 3.02 and during the period from the
date hereof to the Secondary Lender Termination Date, the Secondary Lenders shall
make Advances to the Borrower, ratably in accordance with their respective
Secondary Lender Commitments, to the extent the Conduit Lender has

2

 

determined not
to make such Advance. Under no circumstances shall the Conduit Lender or any
Secondary Lender make any such Advance, to the extent that after giving effect to
the making of such Advance the aggregate principal amount of all outstanding
Advances would exceed the Total Commitment. Within the foregoing limits and subject
to the terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Advances.

     1.10. Schedule I to the Credit Agreement is hereby deleted in its entirety and
replaced with Exhibit A to this Amendment.

          2. Amendment to Fee Letter. Subject to the satisfaction of the conditions precedent
set forth in Section 3 below, the Fee Letter is hereby amended as follows:

     2.1. Paragraph 1 of the Fee Letter is hereby amended to delete therefrom the figure
“0.30%” and to insert therefor the following figure: “0.75%”.

     2.2. Paragraph 2 of the Fee Letter is hereby amended to delete therefrom the figure
“0.70%” and to insert therefor the following figure: “1.25%”.

          3. Conditions of Effectiveness. The effectiveness of this Amendment is subject to the
conditions precedent that the Agent shall have received:

	 	(a)	 	duly executed counterparts of this Amendment from each of the Borrower, the
Lender, the Secondary Lender and the Agent;
	 
	 	(b)	 	duly certified resolutions of the Board of Directors of the Borrower (in form
and substance reasonably acceptable to the Agent) authorizing the execution and
delivery of this Amendment and performance of this Amendment and the Credit Agreement
and the Fee Letter as amended hereby; and
	 
	 	(c)	 	such other documents, instruments and agreements as the Agent shall
reasonably request.

          4. Representations and Warranties of the Borrower.

	 	4.1.	 	The Borrower hereby represents and warrants that this Amendment and the
Credit Agreement and the Fee Letter as previously executed and as
amended hereby constitute legal, valid and binding obligations of the Borrower and
are enforceable against the Borrower in accordance with their terms (except as
enforceability may be limited by bankruptcy, insolvency, or similar laws affecting
the enforcement of creditors’ rights generally).
	 
	 	4.2.	 	Upon the effectiveness of this Amendment and after giving effect hereto, the
Borrower hereby (i) reaffirms all covenants, representations and warranties made in
the Credit Agreement and the Fee Letter as amended hereby, and agrees that all such
covenants, representations and warranties are true and correct as of the effective
date of this Amendment and (ii) certifies that no Default or Event of Default has
occurred and is continuing.

3

 

                   5. Effect on the Credit Agreement and the Fee Letter.

	 	5.1.	 	Upon the effectiveness of Section 1 hereof, on and after the date
hereof, each reference to the Credit Agreement in the Credit Agreement (including any
reference therein to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like
import referring thereto) or in any other Program Document shall mean and be a
reference to the Credit Agreement as amended hereby.

	 	5.2.	 	Upon the effectiveness of Section 2 hereof, on and after the date
hereof, each reference to the Fee Letter in the Fee Letter (including any reference
therein to “this Fee Letter,” “hereunder,” “hereof,” “herein” or words of like import
referring thereto) or in any other Program Document shall mean and be a reference to
the Fee Letter as amended hereby.

	 	5.3.	 	Except as specifically amended above, each of the Credit Agreement, the Fee
Letter and all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and is hereby ratified and
confirmed.

	 	5.4.	 	The execution, delivery and effectiveness of this Amendment shall not operate
as a waiver of any right, power or remedy of the Agent, the Lender or the Secondary
Lender, nor constitute a waiver of any provision of the Credit Agreement or any other
documents, instruments and agreements executed and/or delivered in connection
therewith.

                   6. GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS
OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF SAID STATE.

                  7. 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.

                  8. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto on separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original and all of which counterparts, taken together, shall
constitute but one and the same agreement. Delivery of an executed counterpart of this Amendment
by facsimile shall be deemed as effective as delivery of an originally executed counterpart.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

4

 

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

	 	 	 	 	 
	 
	 	HIGHLAND DISTRESSED

OPPORTUNITIES, INC.,

as the Borrower

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 
	 
	 	LIBERTY STREET FUNDING LLC,

as the Lender

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 
	 
	 	THE BANK OF NOVA SCOTIA, ACTING

THROUGH ITS NEW YORK AGENCY,

as the Secondary Lender

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 
	 
	 	THE BANK OF NOVA SCOTIA, ACTING

THROUGH ITS NEW YORK AGENCY,

as the Agent

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

Signature Page to Amendment No. 1 

to Revolving Credit and Security Agreement

 

 

Schedule I to Credit Agreement

Certain Borrowing Base Advance Rates

          The Borrowing Base Advance Rate with respect to any Bond Asset or Senior Unsecured Loan Asset
shall be determined according to the chart set forth below as the rate corresponding to the lower
of the Moody’s Rating and S&P Rating applicable to such Asset; provided, that (a) if such
Asset is rated by only S&P, the Borrowing Base Advance Rate with respect thereto shall be (i) if
such Asset is rated at least “BBB-” by S&P, the rate set forth below corresponding to the rating
one level below the S&P Rating applicable to such Asset, (ii) if such Asset is rated at least
“CCC+” and less than “BBB-” by S&P, the rate set forth below corresponding to the rating two levels
below the S&P Rating applicable to such Asset and (iii) if such Asset is rated “CCC” or “CCC-” by
S&P, 0.0%, (b) if such Asset is rated only by Moody’s, the Borrowing Base Advance Rate with respect
thereto shall be (i) if such Asset is rated at least “Baa3” by Moody’s, the rate set forth below
corresponding to the rating one level below the Moody’s Rating applicable to such Asset, (ii) if
such Asset is rated at least “Caa1” and less than “Baa3” by Moody’s, the rate set forth below
corresponding to the rating two levels below the Moody’s Rating applicable to such Asset and (iii)
if such Asset is rated “Caa2” or “Caa3” by Moody’s, 0.0% and (c) if such Asset is unrated by both
S&P and Moody’s, the Borrowing Base Advance Rate with respect thereto shall be (i) the rate set
forth below corresponding to the most recent credit estimate received by the Borrower from S&P with
respect to such Asset within the prior twelve months (a copy of which shall be delivered by the
Borrower to the Administrative Agent) or (ii) if no such credit estimate has been obtained, 0.0%;
provided, further, that the Borrowing Base Advance Rate with respect to any such
Asset that constitutes a Distressed Bond Asset or Distressed Loan Asset shall be 0.0%.

	 	 	 	 	 
	S&P Rating	 	Moody’s Rating	 	Borrowing Base Advance Rate
	AAA
	 	Aaa	 	69.0%
	AA+
	 	Aa1	 	69.0%
	AA
	 	Aa2	 	69.0%
	AA-
	 	Aa3	 	69.0%
	A+
	 	A1	 	69.0%
	A
	 	A2	 	69.0%
	A-
	 	A3	 	69.0%
	BBB+
	 	Baa1	 	69.0%
	BBB
	 	Baa2	 	69.0%
	BBB-
	 	Baa3	 	69.0%
	BB+
	 	Ba1	 	64.6%
	BB
	 	Ba2	 	64.2%
	BB-
	 	Ba3	 	60.8%
	B+
	 	B1	 	55.9%
	B
	 	B2	 	49.6%
	B-
	 	B3	 	43.5%
	CCC+
	 	Caa1	 	41.9%
	CCC
	 	Caa2	 	32.1%
	CCC-
	 	Caa3	 	19.3%exv10w39

EXHIBIT 10.39

	 	 	 
	

	 	UBS Financial Services Inc.

1200 Harbor Boulevard

Weehawken, NJ 07086
	 
	 	 
	 

	 	James M. Pierce

Co-Head

Wealth Management Advisor Group US
	 
	 	 
	ADVANCED ENERGY INDUSTRIES INC

ATTN: JESSICA ANDERSON

1625 SHARP POINT DRIVE

FORT COLLINS CO 80525-4423

	 	James D. Price

Co-Head

Wealth Management Advisor Group US

www.ubs.com 

October 8, 2008

Branch Telephone Number

+ 1-816-751-5200

	 
	 	 
	 

	 	Account Number: El 34989

We are pleased to offer you a way to liquidate certain of your auction rate securities (ARS). UBS
has designed a solution that gives you the option to hold your ARS or sell the securities back to
UBS. This solution is available for ARS that were held in a UBS account on February 13, 2008, and
that are not successfully clearing at auction (Eligible ARS).

UBS is offering you “Auction Rate Securities Rights” (Rights) to sell Eligible ARS at par value to
UBS at any time during a two-year time period. These Rights are nontransferable securities
registered with the U.S. Securities and Exchange Commission (SEC). This is a limited time offer
that will expire on November 14, 2008. Accepting this offer may impact your legal rights. Not
accepting this offer may have repercussions on outstanding loans secured by Eligible ARS. As a
result, it is important that you review the prospectus carefully.

The key features and terms of the offer are summarized below. For complete details,
please see the enclosed prospectus.

	•	 	UBS is offering you nontransferable Rights to sell Eligible ARS, held in the UBS account
identified above, at par value to UBS at any time during the period of June 30, 2010, through July 2, 2012.

	 	•	 	You may instruct your UBS Financial Advisor to exercise these Rights at any time during this time period;
	 
	 	•	 	If you do not exercise your Rights, the Eligible ARS will continue to accrue interest or
dividends as determined by the auction process;
	 
	 	•	 	If you do not exercise your Rights before July 2, 2012, they will expire and UBS will
have no further obligation to buy your Eligible ARS.

	•	 	Clients who accept this offer give UBS the discretion to purchase or sell their Eligible
ARS at any time after accepting the firm’s offer and without other prior notice.

	 	•	 	UBS will purchase tax-exempt Auction Preferred Stock (a specific type of ARS also known
as APS) at any time after clients accept the firm’s Rights offer;
	 
	 	•	 	UBS will only exercise its discretion to purchase or sell Eligible ARS for the
purpose of restructurings, dispositions or other solutions that will provide clients with par value for their
Eligible ARS;
	 
	 	•	 	In purchasing Eligible ARS or selling Eligible ARS on behalf of clients, including
tax-exempt APS, UBS will act in its capacity as broker-dealer and will execute these transactions on a principal basis regardless of the type
of client accounts in which the Eligible ARS are held. Please see pages 27-28 in the enclosed prospectus for more information;
	 
	 	•	 	UBS will pay clients par value for their Eligible ARS within one day of settlement of the transaction;
	 
	 	•	 	Eligible ARS are subject to issuer redemptions at any time.

UBS AG has filed a registration statement (including a prospectus) with the SEC for the offering to
which this communication relates. Before you make an investment decision, you should read the
prospectus in that registration statement and other documents that UBS has filed with the SEC for
more complete information about UBS and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.secgovor by calling UBS’s ARS Client Service Center at +1
-800-253-1974.

			
	 	 	 
	UBS Financial Services Inc. and UBS International Inc. are subsidiaries of UBS AG.
	 	1C-ARS0

 

 

UBS Financial Services Inc.

	•	 	Clients who accept this offer release UBS and its employees/agents from all claims except
claims for consequential damages directly or indirectly relating to its marketing and sale of ARS and expressly agree
not to seek any damages or costs (punitive damages, attorney fees, etc.) other than consequential damages.
Clients also will not serve as a class representative or receive benefits under any class action settlement or
investor fund.
	 
	•	 	UBS will provide clients who accept the offer “no net cost” loans up to the par value of Eligible ARS until June 30, 2010. Please see pages 36-39 in the enclosed prospectus for more information.
	 
	•	 	UBS will reimburse all clients who participated in prior UBS ARS loan programs after February
13, 2008, for the difference between the cost of the loan and the applicable interest paid on the Eligible ARS.

THIS OFFER EXPIRES ON NOVEMBER 14, 2008. Please complete, sign and date the enclosed form and
return it in the postage-paid envelope if you wish to accept this offer. We must receive your
signed acceptance form no later than November 14, 2008.

You may receive multiple letters from us depending on the type of ARS you own or if you have
ARS in multiple accounts. Please note you must return a form for each letter
you receive to accept all available offers relating to your ARS holdings. Please read each
response form carefully as the terms may vary.

A list of your Eligible ARS in the account identified on the first page of this letter is
attached. Additional information about your Eligible ARS, including the most recent interest
rates and dividend yields, is available at www. ubs. com/auctionratesecurities.

If you have any questions about your Eligible ARS or this offer, please contact your UBS Financial
Advisor or Branch Manager at the telephone number listed at the top of this letter. Please note
that UBS Financial Advisors and Branch Managers cannot provide legal or tax advice regarding this
offer. Instructions to exercise your Rights should be directed to your UBS Financial Advisor or
Branch Manager.

We regret any hardship that the failure of the ARS markets may have caused you. We hope that
the offer described above and discussed in detail in the prospectus provides resolution for
you regarding this matter. We look forward to continuing our relationship with you and to
serving your future investment needs.

Thank you for your business and for maintaining your relationship
with UBS.

Sincerely,

	 	 	 	 	 	 	 
	/s/ James M. Pierce

	 	 
	 	/s/ James D. Price
	 	 
	 

	 	 	 	 	 	 
	James M. Pierce

	 	 	 	James D. Price	 	 

UBS Financial Services Inc. serves as the clearing firm for UBS International Inc.
Accordingly, the information and terms contained in this letter and the accompanying
materials are directed to clients of both UBS Financial Services Inc and UBS International
Inc.

			
	 	 	 
	UBS Financial Services Inc. and UBS International Inc. are subsidiaries of UBS AG.
	 	1C-ARS0

 

 

			
	 	 	 
	
	 	UBS Financial Services Inc.

Please complete and sign this form.

We must
receive it by November 14, 2008.

Acceptance of UBS’s offer relating to auction rate securities

By signing below and returning this form, I accept UBS’s offer of Rights relating to my Eligible
ARS in the account listed below. I understand and acknowledge the following:

	•	 	All Eligible ARS must remain in my UBS account listed below until I exercise my Rights to
sell my Eligible ARS to UBS or they are redeemed by the issuer or purchased or sold on my behalf by UBS;
	 
	•	 	I will instruct my UBS Financial Advisor or Branch Manager if and when I want to exercise my Rights and sell my Eligible
ARS to UBS during the period of June 30, 2010, through July 2, 2012;
	 
	•	 	The acceptance of UBS’s offer constitutes consent (to the extent legally required) for UBS,
acting as principal, to purchase my Eligible ARS or to sell them on my behalf at any time in its sole discretion and without other
prior notice to me, from the date that I accept this offer through July 2, 2012;
	 
	•	 	If UBS purchases, sells or otherwise disposes of my Eligible ARS, it will deposit the par
value in my account within one business day of settlement of the transaction;
	 
	•	 	I release UBS and its employees/agents from all claims except claims for consequential
damages directly or indirectly relating to its marketing and sale of ARS and expressly agree that I will not seek any damages or costs
(punitive damages, attorney fees, etc.) other than consequential damages. I also will not serve as a class representative or
receive benefits under any class action settlement or investor fund;
	 
	•	 	If the account named below is in the name of a corporation, partnership, trust or other
entity, I represent and warrant that I have the power and authority to accept this offer on behalf of that entity.

	 	 	 
	

ADVANCED ENERGY INDUSTRIES INC 

ATTN: JESSICA ANDERSON 

1625 SHARP POINT DRIVE 

FORT COLLINS CO 80525-4423

	 	Please complete and sign this form.

We must receive it by November 14, 2008.

Mail   UBS Financial Services Inc.
 ATTN: ARS Group

1000 Harbor Boulevard

Weehawken, NJ 07086

	 
	 	 
	Account Number: EI 34989

	 	Fax     +1-201-442-7766

	 	 	 	 	 	 	 
	Account owner signature

	 	/s/ Lawrence D. Firestone
 

	 	 	Date 	10/23/08
 

	 
	 	 	 	 	 	 
	Additional party signature

	 	/s/ Hans Georg Betz

 

	 	 	Date 	10/23/08
 

	 
	 	 	 	 	 	 
	Daytime telephone number

	 	 
	 	 	 	 

If you have questions, please contact your UBS Financial Advisor or Branch Manager
at +1-816-751-5200.

Clients outside the U.S. may call +1-201-352-0105 collect.

We kindly request that you do not include comments or questions on this form as it could delay
processing of your instructions.

UBS AG has filed a registration statement (including a prospectus) with the SEC for the offering to
which this communication relates. Before you make an investment decision, you should read the
prospectus in that registration statement and other documents that UBS has filed with the SEC for
more complete information about UBS and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov or by calling UBS’s ARS Client Service Center at
+1-800-253-1974.

UBS Financial Services Inc. serves as the clearing firm for UBS International Inc. Accordingly, the
information and terms contained in this letter and the accompanying materials are directed to
clients of both UBS Financial Services Inc and UBS International Inc.

			
	 	 	 
	© 2008 UBS Financial Services Inc. All rights reserved. Member SIPC.
	 	1C-ARS0

000183

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