Document:

Exhibit 10.1

 

SIXTH AMENDMENT TO AMENDED AND RESTATED WAREHOUSING
  CREDIT AND SECURITY AGREEMENT

 

THIS SIXTH AMENDMENT TO AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENT (this “Amendment”) is made as of November 28, 2011, by and among WALKER & DUNLOP, LLC (the “Borrower”), BANK OF AMERICA, N.A., as credit agent (the “Credit Agent”), and the lenders party hereto (the “Lenders”).  Capitalized terms used herein without definition have the meanings specified therefor in that certain Amended and Restated Warehousing Credit and Security Agreement dated as of October 15, 2009, among the Borrower, the Credit Agent, and the Lenders, as amended (the “Loan Agreement”).

 

R E C I T A L S

 

The Borrower, the Credit Agent, and the Lenders desire to further amend the Loan Agreement on, and subject to, the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the agreements of the parties set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Amendments.  Effective as of the Effective Date, the Loan Agreement is amended as follows:

 

Clause (a) of Section 1.2 of the Loan Agreement is hereby amended by replacing the date “November 28, 2011” where it appears therein with the date “November 26, 2012.”

 

2.                                       Acknowledgments by Borrower.  The Borrower acknowledges, confirms and agrees that:

 

(a)                                  This Amendment is a Loan Document, and all references in any Loan Document to the Borrower’s Obligations shall mean and include the Obligations as amended by this Amendment.

 

(b)                                 Except as provided herein, the terms and conditions of the Loan Agreement and the other Loan Documents remain in full force and effect, and the Borrower hereby (x) ratifies, confirms and reaffirms all and singular of the terms and conditions of the Loan Agreement and the other Loan Documents, and (y) represents and warrants that:

 

(i)                                     No Default or Event of Default exists as of the date the Borrower executes this Amendment, nor will a Default or Event of Default exist as of the Effective Date.

 

(ii)                                  The representations and warranties made by the Borrower in the Loan Agreement and the other Loan Documents are true and correct as of the date hereof, and will be true and correct as of the Effective Date, except as to (1) matters which speak to a specific date, (2) changes in the ordinary course to the extent permitted and contemplated by the Loan Agreement, and (3) as reflected in the updated Exhibits annexed to this Amendment.

 

(iii)                               The Borrower has the power and authority and legal right to execute, deliver and perform this Amendment, has taken all necessary action to authorize the execution, delivery, and performance of this Amendment, and the person executing and delivering this Amendment on behalf of the Borrower is duly authorized to do so.

 

 

(iv)                              This Amendment constitutes the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, subject to the effect of applicable bankruptcy and other similar laws affecting the rights of creditors generally and the effect of equitable principles whether applied in an action at law or a suit in equity.

 

(v)                                 Exhibits  D, E, F, G, H, J, and K attached hereto are true, correct, and complete updates as of the Effective Date of the corresponding Exhibits to the Loan Agreement.

 

(c)                                  The Borrower shall promptly pay upon receipt of an invoice or statement therefor the reasonable attorneys’ fees and expenses and disbursements incurred by the Credit Agent and the Lenders in connection with this Amendment and any prior matters involving the Loan.

 

(d)                                 The Borrower acknowledges that it has no defenses, set offs or counterclaims with respect to any of its obligations to the Credit Agent or the Lenders, and hereby releases, waives, and forever relinquishes all claims, demands, obligations, liabilities, and causes of action whatever kind or nature, whether known or unknown, which it has or may have as of the date hereof and as of the Effective Date against the Credit Agent or any Lender, or their respective affiliates, officers, directors, employees, agents, attorneys, independent contractors, and predecessors, together with their successors and assigns, directly or indirectly arising out of or based upon any matter connected with the Loan Agreement or the administration thereof or the obligations created thereby (including pursuant to this Amendment).

 

3.                                       Conditions Precedent.  This Amendment shall be effective upon the satisfaction by the Borrower of, or written waiver by the Credit Agent and the Lenders of, the following conditions and any other conditions set forth in this Amendment, by no later than 4:00 p.m. (Boston time) on the date of this Amendment, as such time and date may be extended in writing by the Credit Agent and the Lenders, in their sole discretion (with the date, if at all, by which such conditions have been satisfied or waived being referred to herein as, the “Effective Date”), failing which this Amendment and all related documents shall be null and void at the option of the Credit Agent and the Lenders:

 

(a)                                  Delivery by the Borrower to the Credit Agent and each Lender of the following:

 

(i)                                     This Amendment, duly executed by the Borrower, the Credit Agent and each Lender.

 

(ii)                                  Such certificates of resolutions or other actions, incumbency certificates and/or other certificates of an authorized officer the Borrower as the Credit Agent may require evidencing (A) the authority of the Borrower to enter into this Amendment and any other documents to be executed and delivered in connection herewith, and (B) the identity, authority and capacity of each officer of the Borrower authorized to act on its behalf in connection with this Amendment and the other Loan Documents.

 

(iii)                               A copy of the Operating Agreement of the Borrower, as amended and in effect as of the Effective Date certified by an appropriate officer thereof.

 

(iv)                              An opinion of counsel to the Borrower in form and substance satisfactory to the Credit Agent.

 

(v)                                 Such other documents as the Credit Agent or any Lender reasonably may require, duly executed and delivered.

 

(b)                                 No Default or Event of Default shall have occurred and be continuing.

 

 

(c)                                  The representations and warranties of the Borrower contained in this Agreement or in any document, instrument, or agreement delivered or to be delivered in connection with this Agreement (i) shall have been true and correct in all material respects on the date that such representations and warranties were made, and (ii) shall be true and correct in all material respects on the Effective Date as if made on and as of such date.

 

(d)                                 In addition to all other expense payment and reimbursement obligations of the Borrower under the Loan Agreement and other Loan Documents, the Borrower will, promptly following their receipt of an appropriate invoice therefor, pay or reimburse the Credit Agent and each Lender for all of their respective reasonable out of pocket costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses and disbursements) incurred in connection with the preparation of this Amendment and any other documents in connection herewith and the matters addressed in and contemplated by, this Amendment.

 

(e)                                  The Borrower shall have executed and delivered to (i) the Credit Agent, and (ii) the Lenders, separate Fee Letters, in form and substance acceptable to the Credit Agent and the Lenders, respectively, and the Credit Agent and the Lenders shall have received payment in immediately available funds of all amounts payable thereunder in connection with this Amendment.

 

4.                                       Miscellaneous.

 

(a)                                  This Amendment shall be governed in accordance with the internal laws of the Commonwealth of Massachusetts (without regard to conflict of laws principles) as an instrument under seal.

 

(b)                                 This Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument.  Signatures transmitted electronically (including by fax or e-mail) shall have the same legal effect as originals, but each party nevertheless shall deliver original signed counterparts of this Amendment to each other party, upon request.

 

(c)                                  This Amendment constitutes the complete agreement among the Borrower, the Credit Agent, and the Lenders with respect to the subject matter of this Amendment and supersedes all prior agreements and understanding relating to the subject matter of this Amendment, and may not be modified, altered, or amended except in accordance with the Loan Agreement.

 

(d)                                 Time is of the essence with respect to all aspects of this Amendment.

 

[Remainder of page intentionally left blank]

 

 

Executed as a sealed instrument as of the date first above written.

 

	
 
    	
WALKER & DUNLOP, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deborah A. Wilson
    
	
 
    	
Name:
    	
Deborah   A. Wilson
    
	
 
    	
Title:
    	
Executive   Vice President, CFO and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A., as Credit Agent and a   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jane E. Huntington
    
	
 
    	
Name:
    	
Jane   E. Huntington
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TD BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William J. Olsen
    
	
 
    	
Name:
    	
William   J. Olsen
    
	
 
    	
Title:
    	
Senior   Vice PresidentExhibit 10.1

 

	

    	
CLIFFORD   CHANCE LLP

 
    

 

EXECUTION VERSION

 

AMENDMENT AND RESTATEMENT AGREEMENT

 

DATED 23 NOVEMBER 2011

 

FOR

 

HCC INSURANCE HOLDINGS, INC
 AS BORROWER

 

BARCLAYS BANK PLC AND THE ROYAL BANK OF SCOTLAND PLC
 AS ARRANGER

 

THE ROYAL BANK OF SCOTLAND PLC
 AS AGENT

 

AND

 

THE ROYAL BANK OF SCOTLAND PLC
 AS TRUSTEE

 

 

RELATING TO A $90,000,000 STANDBY LETTER OF
 CREDIT FACILITY

DATED 26 NOVEMBER 2010

 

 

 

CONTENTS

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Definitions and Interpretation
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Representations
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Restatement
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Continuity and Further Assurance
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
Fees, Costs and Expenses
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Miscellaneous
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Governing Law
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
Schedule 1 Conditions Precedent
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
Schedule 2 Amended Facility Agreement
    	
 
    	
6
    

 

i

 

THIS AGREEMENT is dated 23rd November 2011 and made between:

 

(1)                                  HCC INSURANCE HOLDINGS, INC (the “Borrower”);

 

(2)                                  BARCLAYS BANK PLC and THE ROYAL BANK OF SCOTLAND PLC as mandated lead arrangers (whether acting individually or together, the “Arranger”);

 

(3)                                  THE ROYAL BANK OF SCOTLAND PLC as the agent of the Finance Parties (the “Agent”);

 

(4)                                  THE ROYAL BANK OF SCOTLAND PLC as trustee for the Secured Parties (the “Trustee”); and

 

(5)                                  THE LENDERS (as defined in the Amended Facility Agreement).

 

IT IS AGREED as follows:

 

1.                                       DEFINITIONS AND INTERPRETATION

 

1.1                                 Definitions

 

In this Agreement:

 

“Amended Facility Agreement” means the Original Facility Agreement, as amended and restated by this Agreement.

 

“Effective Date” means the date on which the Agent confirms to the Lenders and the Borrower that it has received each of the documents and other evidence listed in Schedule 1 (Conditions Precedent) in a form and substance satisfactory to the Agent.

 

“Fee Letter” means any letter or letters dated on or about the date of this Agreement between the Borrower and the Agent setting out any of the fees referred to in Clause 5 (Fees, Costs and Expenses).

 

“Original Facility Agreement” means the $90,000,000 standby letter of credit facility agreement dated 26 November 2010 and entered into between the Borrower, the Arranger, the Agent, the Trustee and the Lenders.

 

1.2                                 Incorporation of defined terms

 

(a)                                  Unless a contrary indication appears, a term defined in the Original Facility Agreement has the same meaning in this Agreement.

 

(b)                                 The principles of construction set out in the Original Facility Agreement shall have effect as if set out in this Agreement.

 

1.3                                 Clauses

 

In this Agreement any reference to a “Clause” or a “Schedule” is, unless the context otherwise requires, a reference to a Clause in or a Schedule to this Agreement.

 

1

 

1.4                                 Third party rights

 

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.

 

1.5                                 Designation

 

In accordance with the Original Facility Agreement, each of the Borrower and the Agent designates this Agreement as a Finance Document.

 

2.                                       REPRESENTATIONS

 

The Repeated Representations (as defined in the Amended Facility Agreement) are deemed to be made by the Borrower (by reference to the facts and circumstances then existing) on:

 

(a)                                  the date of this Agreement; and

 

(b)                                 the Effective Date,

 

and references to “this Agreement” in the relevant representations should be construed as references to this Agreement and to the Original Facility Agreement and the Amended Facility Agreement, as relevant.

 

3.                                       RESTATEMENT

 

3.1                                 Restatement of the Original Facility Agreement

 

With effect from the Effective Date the Original Facility Agreement shall be amended and restated so that it shall be read and construed for all purposes as set out in Schedule 2 (Amended Facility Agreement).

 

4.                                       CONTINUITY AND FURTHER ASSURANCE

 

4.1                                 Continuing obligations

 

The provisions of the Original Facility Agreement shall, save as amended by this Agreement continue in full force and effect.

 

4.2                                 Further assurance

 

The Borrower shall, at the request of the Agent and at the Borrower’s own expense, do all such acts and things necessary or desirable to give effect to the amendments effected or to be effected pursuant to this Agreement.

 

5.                                       FEES, COSTS AND EXPENSES

 

5.1                                 Arrangement Fee

 

The Borrower shall pay to the Arranger, for its own account, the arrangement fee in the amounts and at the times agreed in a Fee Letter.

 

2

 

5.2                                 Agency Fee

 

The Borrower shall pay to the Agent, for its own account, the agency fees in the amounts and at the times agreed in a Fee Letter.

 

5.3                                 Transaction Expenses

 

Whether or not the Effective Date occurs, the Borrower shall, from time to time within five Business Days of demand of the Agent, reimburse the Finance Parties for all reasonable costs and expenses (including legal fees) together with any VAT thereon incurred by the Finance Parties in connection with the negotiation, preparation, printing, execution, syndication and implementation of this Agreement, any other document referred to in this Agreement and the completion of the transactions herein contemplated.  The Finance Parties agree to keep all costs incurred by them relating to the negotiation, preparation, printing, execution, syndication, enforcement and, implementation of this Agreement to a reasonable amount and shall notify the Borrower of any quotations it obtains in connection therewith.

 

6.                                       MISCELLANEOUS

 

6.1                                 Incorporation of terms

 

The provisions of clause 31 (Remedies and Waivers, Partial Invalidity), clause 32 (Notices) and clause 37 (Jurisdiction) of the Original Facility Agreement shall be incorporated into this Agreement as if set out in full in this Agreement and as if references in those clauses to “this Agreement” or “the Finance Documents” are references to this Agreement.

 

6.2                                 Counterparts

 

This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

7.                                       GOVERNING LAW

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

3

 

SCHEDULE 1
 CONDITIONS PRECEDENT

 

1.                                       The Borrower

 

(a)                                  A copy, certified as at the date of this Agreement to be a true and up-to-date copy by an Authorised Signatory of the Borrower, of the constitutional documents of the Borrower or a certificate (signed by a director of such Borrower) confirming that the constitutional documents previously delivered to the Lenders for the purposes of the Original Facility Agreement have not been amended and remain in full force and effect.

 

(b)                                 A copy of a board resolution of the Borrower:

 

(i)                                   approving the terms of, and the transactions contemplated by, this Agreement and resolving that it execute this Agreement;

 

(ii)                                authorising a specified person or persons to execute this Agreement;

 

(iii)                             authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched; and

 

(iv)                            approving the execution, delivery and performance of this Agreement and the terms and conditions hereof and authorising a named person or persons to sign this Agreement and any documents to be delivered by the Borrower pursuant thereto.

 

(c)                                  A specimen signature of each person authorised by the resolution referred to in paragraph (b) above.

 

(d)                                 A certificate of an Authorised Signatory of the Borrower confirming that utilisation of the Facility and entry into and performance of its obligations under each of the Finance Documents would not cause any borrowing, guaranteeing or similar restriction binding on it to be exceeded.

 

(e)                                  A certificate of an Authorised Signatory of the Borrower, certifying that each copy document relating to it specified in this Schedule 1 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

2.                                       Legal opinions

 

(a)                                  A legal opinion of Clifford Chance Limited Liability Partnership, legal advisers to the Agent in respect of English law, substantially in the form distributed to the Agent prior to the signing of this Agreement.

 

(b)                                 A legal opinion of Clifford Chance US LLP, legal advisers to the Agent in respect of the corporate capacity of the Borrower and other matters relating to New York law, substantially in the form distributed to the Agent prior to the signing of this Agreement.

 

4

 

3.                                       Other documents and evidence

 

(a)                                  A copy of the U.S. Facility Agreement.

 

(b)                                 A copy of a good standing certificate (including verification of tax status) with respect to the Borrower, issued as of a recent date by the Secretary of State or other appropriate official of:

 

(i)                                     the Borrower’s jurisdiction of incorporation or organisation; and

 

(ii)                                  the jurisdiction of the Borrower’s registered place of business.

 

(c)                                  Evidence that the Account Party is authorised to underwrite business at Lloyd’s.

 

(d)                                 The executed Fee Letters and evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 5 (Fees,  Costs and Expenses) of this Agreement have been paid or will be paid.

 

(e)                                  A copy of a letter of substitution signed on behalf of Lloyd’s by an authorised signatory.

 

(f)                                    A certificate of the Chief Financial Officer of the Borrower stating that it is and would be Solvent after complying with its obligations with respect to Letters of Credit set out in Clause 5 of the Original Facility Agreement (Borrower’s Liabilities in relation to Letters of Credit) and the payment of all estimated legal and other fees related to this Agreement and the Amended Facility Agreement and the consummation of the other transactions contemplated by this Agreement and the Amended Facility Agreement. For purposes of such certificate, “Solvent” means with respect to the Borrower on any date of determination that:

 

(i)                                   the fair value of the property of such person is greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such person;

 

(ii)                                the present fair saleable value of the assets of such person is not less than the amount which will be required to pay the probable liability of such person on its debts as they become absolute and mature;

 

(iii)                             such person does not intend to, and does not believe that it will, incur debts or liabilities beyond such person’s ability to pay as such debts and liabilities mature; and

 

(iv)                            such person is not engaged in a business or transaction, and is not about to engage in a business or transaction, for which such person’s property would constitute unreasonably small capital.

 

In computing the amount of contingent or unliquidated liabilities at any time, such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual and matured liability.

 

5

 

SCHEDULE 2
 AMENDED FACILITY AGREEMENT

 

(see Exhibit 10.2)

 

6

 

SIGNATURES

 

The Borrower

 

HCC INSURANCE HOLDINGS, INC.

 

	
By:
    	
/s/ Brad T. Irick
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
13403 Northwest Freeway
    	
 
    
	
 
    	
Houston TX 77040
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+ 1 713 744 9648
    	
 
    
	
Attention:
    	
General Counsel
    	
 
    

 

 

The Arranger

 

	
BARCLAYS BANK PLC
    	
THE ROYAL BANK OF SCOTLAND   PLC
    
	
 
    	
 
    
	
By:  
    	
/s/ J.V. French
    	
 
    	
By: 
    	
/s/ Barrie Davison
    
					

 

 

The Agent

 

THE ROYAL BANK OF SCOTLAND PLC

 

	
By:
    	
/s/ Anthony O’Flynn
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
5th Floor
    	
 
    
	
 
    	
135 Bishopsgate
    	
 
    
	
 
    	
London EC2M 3UR
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+ 44 20 7085 4564
    	
 
    
	
Attention:
    	
Tony O’Flynn
    	
 
    

 

 

The Trustee

 

THE ROYAL BANK OF SCOTLAND PLC

 

	
By:
    	
/s/ Anthony O’Flynn
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
5th Floor
    	
 
    
	
 
    	
135 Bishopsgate
    	
 
    
	
 
    	
London EC2M 3UR
    	
 
    
	
 
    	
 
    	
 
    
	
Fax:
    	
+ 44 20 7085 4564
    	
 
    
	
Attention:
    	
Tony O’Flynn
    	
 
    

 

7

 

The Lenders

 

THE ROYAL BANK OF SCOTLAND PLC 
  acting as agent for NATIONAL WESTMINSTER BANK PLC

 

	
By:
    	
/s/ Barrie Davison
    	
 
    

 

 

BARCLAYS BANK PLC

 

	
By:
    	
/s/ J.V. French
    	
 
    

 

8

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