Document:

Exhibit 10.34 Third Amended & Restated Amendment and Waiver AA

 

THIRD AMENDED & RESTATED

AMENDMENT AND WAIVER AGREEMENT

                   
THIS THIRD AMENDED & RESTATED AMENDMENT AND WAIVER AGREEMENT, dated as of November 15,
2001 (this "Agreement"), is among ALLEGIANCE FUNDING I, LLC (the
"Depositor"), MANUFACTURERS AND TRADERS TRUST COMPANY (the "Trustee"),
and POINT WEST CAPITAL CORPORATION (the "Servicer") and is consented to by the
Certificateholders named on the signature pages hereto.

RECITALS

                   
WHEREAS (i) the Depositor, the Trustee and the Servicer are parties to that certain Trust
Agreement, dated as of August 1, 1998 (as amended from time to time, and including all
supplements thereto, the "Trust Agreement"), and (ii) the Depositor, the Trustee
and the Servicer are parties to that certain Third Amended and Restated Supplement to
Trust Agreement for Revolving Series 1998-1, dated as of April 14, 2000 (the "Series
1998-1 Revolving Supplement"), pursuant to which the Depositor issued the Allegiance
Capital Trust I Revolving Certificates, Series 1998-1 (the "98-1 Revolving
Certificates");

                   
WHEREAS the Loan to Peavy & Brooks International, Inc. (the "PBI Loan") held
by theDepositor and the Loan to Southern Acquisitions, Inc. (the "Southern
Loan") held by the Depositor havebecome Defaulted Loans and have caused the Depositor
to be in violation of certain provisions of theTrust Agreement;

                   
WHEREAS the parties previously agreed to amend a provision of the Series 1998-1 Revolving
Supplement and to amend and waive certain provisions of the Trust Agreement on the terms
and conditions set forth in the Amendment and Waiver Agreement dated as of December 15,
2000 (the "Initial Waiver"), as modified by the Amended & Restated Amendment
and Waiver Agreement, dated as of April15, 2001 (the "First Amended Waiver"), as
modified by the Second Amended & Restated Amendmentand Waiver Agreement, dated as of
July 16, 2001 (the "Second Amended Waiver"; the Initial Waiver,together with the
First Amended Waiver and the Second Amended Waiver, is sometimes hereinafter referred to
as the "Existing Waiver");

                   
WHEREAS the Scheduled Maturity of the 98-1 Revolving Certificates, as amended under the
Existing Waiver, is September 17, 2001;

                   
WHEREAS, pursuant to Section 9.02 of the Trust Agreement, the Depositor, the Servicer and
the Trustee may amend, modify or waive the provisions thereof with the prior written
consent of the Holders of each Outstanding Certificate and may amend, modify or waive the
provisions of the Series 1998-1

                   
Revolving Supplement with the prior written consent of the Holders of the 98-1 Revolving
Certificates; and WHEREAS the parties have agreed to further amend a provision of the
Series 1998-1 Revolving Supplement and to amend and waive certain provisions of the Trust
Agreement on the terms and conditions set forth in this Agreement;

                   
NOW, THEREFORE, the parties hereto agree as follows:

                   
1.      Definitions.  Each capitalized term used and not
otherwise defined herein, including those used in the Recitals, has the meaning set forth
in the Trust Agreement.

 

                   
2.      Amendments to Series 1998-1 Revolving Supplement.
  The definition of "Scheduled Maturity" in the Series 1998-1 Revolving
Supplement is hereby amended by deleting the date "December 15, 2000" therein
and substituting in its place the date "December 15, 2001". Notwithstanding the
foregoing, the increase in interest rate that became effective on February 15, 2001 under
Section 5 of the 1998-1 Revolving Supplement (as amended by the Initial Waiver) shall
remain in effect.

                   
3.      Amendments to Trust Agreement.     
Solely with respect to the PBI Loan and the Southern Loan, each of the Depositor, the
Servicer, the Trustee and the Certificateholders agree to amend the following provisions
of the Trust Agreement on the following terms:

                           
(a)      Clause (b) of the definition of "Adjustment
Amount". The words "within sixty (60) days from the date the Loan became a
Defaulted Loan" in clause (b) of the definition of"Adjustment Amount" are
hereby deleted and replaced with the words "on or before February 15, 2002"; and

                           
(b)     Clause (c) of the definition of "Adjustment Amount".
     The words "within one hundred twenty (120) days from the
date of receipt of such letter of intent" in clause (c) of the definition of
"Adjustment Amount" are hereby deleted and replaced with the words "on or
before April 15, 2002".

                           
(c)      Section 1.03(b).     Section
1.03(b) is hereby amended to provide that Recoveries in respect of the PBI Loan or the
Southern Loan shall be applied first to reimburse the Reserve Account for any Recovery
Expenses allocable to such PBI Loan or Southern Loan and previously withdrawn from the
Reserve Account.

                           
(d)     Section 5.03(d).     Section 5.03(d) is
hereby amended to allow disbursement of funds from the Reserve Account on each
Distribution Date to reimburse the Servicer or the Special Servicer, as applicable, for
Recovery Expenses allocable to the PBI Loan and/or Southern Loan if (i) the
Certificateholder Agent has provided to the Depositor, the Servicer and the Special
Servicer written consent to such disbursement and (ii) the remaining balance in the
Reserve Account after such disbursement would equal or exceed the Reserve Account Floor
Amount. The Depositor, the Servicer or the Special Servicer, as applicable, shall provide
a written request for such disbursement to the Certificateholder Agent by the 3rd day of
the calendar month in which such disbursement is to be made (or the next Business Day if
such day is not a Business Day) and the Certificateholder Agent shall provide written
consent or refusal to consent no later than the 10th day of such calendar month (or the
next Business Day if such day is not a Business Day) and, assuming such request is timely
delivered, the Certificateholder Agent's approval shall not be unreasonably withheld. The
Certificateholder Agent's written consent shall be deemed to be direction to the Trustee
to make such disbursement pursuant to Schedule 9 of the Servicing Report.

                           
(e)      Section 6.01.     Section 6.01 is
hereby amended to delete the period at the end of subparagraph (j) thereof and replace it
with a semi-colon and to add the following new clause at the end thereof:

                           
(k)      the failure of the Special Servicer to provide to the
Certificateholders and the Certificateholder Agent weekly reports as to the status of the
                              
PBI Loan and the Southern Loan, including a comparison of actual results to the projected
timeline for completion of the workout of each
                              
such Defaulted Loans indicated on Exhibit A attached to that certain Third Amended &
Restated Amendment and Waiver Agreement, dated as
                              
of November 15, 2001, among the Depositor, the Trustee and the Servicer (as consented to
by the

-2-

                                   
Certificateholders), so long as such Loans are included in the Trust Estate and have not
been re-classified as performing Loans or Liquidated Loans. 

                   
4.              Waivers.
     The Trustee and the Certificateholders hereby waive through but
not beyond February 15, 2002, any Default by the Depositor under Section 6.01(f) of the
Trust Agreement, provided that a Depositor Event of Default under Section 6.01(f) shall be
deemed to exist on and after February 16, 2002 if the 98-1 Revolving Certificates that are
Rated Certificates have not been paid in full on or before February 15, 2002.

                   
5.              Expenses.
     The Trust shall reimburse from funds on deposit in the Reserve
Account all reasonable fees, costs and expenses incurred by the Certificateholder Agent
and the Holders of the Rated Certificates in connection with their review of this
Agreement, including, without limitation, the reasonable fees of their special counsel
(namely, Day, Berry & Howard LLP). In each applicable monthly Servicer Report, the
Servicer shall from time to time instruct the Trustee to effect any such reimbursements.

                   
6.              Governing
Law. This Agreement shall be governed by and construed in accordance with the internal
laws of the State of New Yor k. 

                   
7.              General.
     This Agreement and all the provisions hereof shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and
permitted assigns. This Agreement may be executed in one or more counterparts, all of
which taken together shall constitute one instrument. Delivery of an executed counterpart
of a signature page to this Agreement by telecopier shall be as effective as delivery of a
manually executed counterpart of this Agreement.

                   
8.              Ratification;
Consent.  Except as expressly modified and superseded by this Agreement, each of
the Trust Agreement and the Series 1998-1 Revolving Supplement is ratified and confirmed
in all respects and shall continue in full force and effect. By their execution and
delivery of the consent hereto, each of the Certificateholders authorizes and directs the
Trustee to execute and deliver that certain Third Amendment to Servicing Agreement, dated
as of November 15, 2001 (the "Servicing Amendment"), among the Depositor, the
Trustee, the Servicer, Allegiance Capital, LLC, as the Special Servicer, and Foresight
Analysts, Inc., as the Servicing Advisor, a final copy of which is attached hereto as
Exhibit B.

 

-3-

 

 

	ALLEGIANCE FUNDING 1 llc, , as
    the Depositer

	
	By:
             /s/ Michael W. McDermitt
	

    
	Name:    Michael W. McDermitt
	Title:        Vic
    President & Secretary

 

	MANUFACTURERE AND TRADERS TRUST
    COMPANY, as the Trustee

	
	By:
              /s/ Russell T. Whitley
	

    
	Name:     Russell T. Whitley
	Title:
            Assitant Vice President

 

	POINT WEST CAPITAL CORPORATION,
      as the Servicer

	
	By:
             /s/ John Ward Rotter
	

    
	Name:    John Ward Rotter
	Title:       
    Chief Financial Officer

Consented and Agreed:

Each of the Certificateholders aurhorizes and directs the Trustee to execute the
foregoing Third Amended & Restated Amendment and Waiver Agreement and the Servicing
Amendment referenced therein.

	TICE & CO., as registered
    owner of the 
	UNITED OF OMAHA LIFE INSURANCE

	Class A-R Certificates	COMPANY

		
	By:
             /s/ Brian D.  Hunt
	By:        /s/
    Edwin H. Garrison Jr.
	

    	

    
	Its::   
         Partner-Tice & Co	Its:        
    First Vice President

 

	TICE & CO., as registered
    owner of the 
	NATIONWIDE LIFE INSURANCE

	Class B-R Certificates	COMPANY
		
	By:
             /s/ Brian D.  Hunt
	By:        /s/
    Mark W. Poeppelman
	

    	

    
	Its::   
         Partner-Tice & Co	Its:
             Associate Vice President

 

	TICE & CO., as registered
    owner of the 
	LIBERTY LIFE INSURANCE COMPANY

	Class C-R Certificates	(Certificates held in the nominee name HARE &
    CO.)
		
	By:
             /s/ Brian D.  Hunt
	By:
             /s/ Adam Emerson
	

    	

    
	Its::   
         Partner-Tice & Co	Its:        
    Authorized Officer

 

	ALLEGIANCE FUNDING 1, LLC, as
	TICE & CO.,  registered
    owner of the Class C

	registered owner of the Class D-R Certificates	Certificates
		
	By:
             /s/ Michael W. McDermitt
	By:
             /s/ Brian D.  Hunt

	

    	

    
	Its::        
    Vice President & Secretary      	Its::   
         Partner-Tice & Co

 

	PACIFIC LIFE INSURANCE COMPANY
	TICE & CO.,   
    registered owner of the Class D

		Certificates
		
	By:
             /s/ Cathy Schwartz
	By:
             /s/ Brian D.  Hunt

	

    	

    
	Its::   
          Asst. Vice President	Its::   
         Partner-Tice & Co
		
	By:
             /s/ Diane W. Dales
	
	

    	
	Its::   
          Asst. Secretary	

		TICE & CO.,   
    registered owner of the Class E

		Certificates
		
		By:
             /s/ Brian D.  Hunt

		

    
		Its::   
         Partner-Tice & Co

 

 

EXHIBIT A

to

THIRD AMENDED & RESTATED

AMENDMENT AND WAIVER AGREEMENT

 

Nichols Family Services, LLC

Timeline for Disposition

	April - May -
    June, 2001

    

  - Complete business renewal activities;

  - Get bookkeeping established;

  - Account for pre-need assets & liabilities;

  - Establish budget and fr ee cash flow expectations;

  - Decide whether to hi re a broker for sale process;

  - Collect info for sales prospectus;

  - Prepare sales prospectus;

  - Begin identifying possible buyers

  - Business begins generating free cash flow

  

	June – July,
    2001

    

  - Marketing Process 

  - Business continues generating free cash flow

  

	August, 2001

    

  - Complete marketing process

  - Select buyer

  - Negotiate and Enter into LOI

  - Business continues generating free cash flow

	September -
    October, 2001

    

  - Complete sale process

  - Possible foreclosure and/or negotiation with Specialized Commercial
  Lending (junior mortgage

  holder) and/or the Nichols (former owners/ unsecured creditors), also
  Brown-Service (landlord in

  main funeral home)

  - September 30 October 30: close sale 

  

 

 

 

Southern Family Funeral Care, LLC

Timeline for Disposition

	April – May
    – June – July, 2001

    

  - Get bookkeeping established;

  - Accounting for pre-need assets & liabilities;

  - Establish budget and free cash flow expectations;

  - Decide whether to hire broker;

  - Collect info for sales prospectus;

  - Prepare sales prospectus;

  - Begin identifying possible buyers

  

	July –
    August – September – October, 2001

    

  - Marketing process

  - Business generating free cash flow

  

	October –
    November – December, 2001

    

  - Complete marketing process;

  - Select buyer, negotiate and enter into LOI

  

	December –
    January – February, 2002

    

  - Complete sale process;

  - Possible foreclosure and/or negotiation with junior creditors (Kents
  in respect of Kent FHs/ Morrows in respect of

    Pineview Memory Gardens).

  - January 30: close sale

  

 

 

EXHIBIT B

to

THIRD AMENDED & RESTATED

AMENDMENT AND WAIVER AGREEMENT

Please see attached.

 

 

 

 

THIRD AMENDMENT TO SERVICING AGREEMENT

                   
THIS THIRD AMENDMENT TO SERVICING AGREEMENT, dated as of November 15, 2001 (this
"Agreement"), is among ALLEGIANCE FUNDING I, LLC (the "Depositor"),
MANUFACTURERS AND TRADERS TRUST COMPANY (the "Trustee"), POINT WEST CAPITAL
CORPORATION (the "Servicer"), ALLEGIANCE CAPITAL, LLC ("Special
Servicer"), and FORESIGHT ANALYSTS, INC. (the "Servicing Advisor").

RECITALS

                   
WHEREAS the Servicer, the Special Servicer, the Servicing Advisor, the Depositor and the
Trustee are parties to that certain Servicing Agreement, dated as of August 1, 1998 (as
amended by the Consent and Amendment, dated as of June 4, 1999, and the Fourth Amendment
to Trust Agreement & Second Amendment to Servicing Agreement, dated as of August 1,
2001, the "Servicing Agreement"), whereby the Servicer, the Special Servicer and
the Servicing Advisor each perform certain duties with respect to servicing the Loans on
behalf of the Depositor and the Certificateholders;

                   
WHEREAS the parties have agreed to amend the Servicing Agreement on the terms and
conditions contained herein; and

                   
WHEREAS, pursuant to Section 7.02 of the Servicing Agreement, the Depositor, the Servicer,
the Special Servicer, the Servicing Advisor and the Trustee may amend, modify or waive the
provisions of the Servicing Agreement with the prior written consent of the Holders of 51%
of each affected Class of

Rated Certificates; 

                   
NOW, THEREFORE, the parties hereto agree as follows:

                   
1.          Definitions.
     Each capitalized term used and not otherwise defined herein,
including those used in the Recitals, has the meaning set forth in  the Servicing
Agreement. 

                   
2.          Amendments to Servicing Agreement.

                               
(a)          Section 3.02(b). Section
3.02(b) of the Servicing Agreement is hereby amended to add a new sub-clause (viii)
thereto at the end
                    
thereof as follows:

                                            
(viii) The Special Servicer shall, promptly upon becoming aware of any material fact or
material development concerning (w) any
                                 
Defaulted Loan, (x) any Delinquent Loan, (y) any Loan that the Special Servicer at such
time reasonably believes could reasonably be
                                 
expected to become a Delinquent Loan or a Defaulted Loan or (z) any underperforming Loan,
provide written notice to the Certificateholder
                                
Agent specifying such material fact or material development.

                               
(b) Section 3.16. Each of the Depositor, the Servicer, the Special Servicer, the Servicing
Advisor, the Trustee and the Certificateholders
                    
hereby agree that, notwithstanding anything to the contrary contained in the Servicing
Agreement, including, without limitation, Section 3.16 thereof and
                    
Exhibit F thereto, effective on and after March 15, 2001, each of the Servicer and the
Special Servicer shall use its best efforts to obtain and/or keep in
                    
place the insurance required under Section 3.16 of the Servicing Agreement and Exhibit F
thereto; provided that, so long as the Servicer and the
                    
Special Servicer use such best efforts, no Servicer Default, Servicer Event of Default,
Special Servicer Default or Special Servicer Event of Default

 

 

                   
shall be deemed to occur by virtue of the Servicer and/or the Special Servicer, as
applicable, being unable to comply with the requirements contained in
                    
Section 3.16 of the Servicing Agreement and Exhibit F thereto; provided further that the
foregoing shall in no way diminish or relieve the Servicer, the
                    
Special Servicer and the Servicing Advisor, as applicable, from any of their other
respective duties and obligations as set forth in the Servicing
                    
Agreement.

                   
3.          Expenses.
     The Trust shall reimburse from funds on deposit in the Reserve
Account all reasonable fees, costs and expenses incurred by the Certificateholder Agent
and the Holders of the Rated Certificates in connection with their review of this
Agreement, including without limitation the reasonable fees of their special counsel
(namely, Day, Berry & Howard LLP). In each applicable monthly Servicer Report the
Servicer shall from time to time instruct the Trustee to effect any such reimbursements.

                   
4. Governing Law.     This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York.

                   
5. General.     This Agreement and all the provisions hereof
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns. This Agreement may be executed in one or more
counterparts, all of which taken together shall constitute one instrument. Delivery of an
executed counterpart of a signature page to this Agreement by telecopier shall be as
effective as delivery of a manually executed counterpart of this Agreement.

                   
6. Ratification.     Except as expressly modified and
superseded by this Agreement, the Servicing Agreement is ratified and confirmed in all
respects and shall continue in full force and effect.

                   
7. Effectiveness.     This Agreement shall become effective
upon (a) the execution and delivery of a counterpart hereof by each of the parties hereto
and (b) the execution and delivery by the Certificateholders of their consent to that
certain Third Amended & Restated Amendment and Waiver Agreement, dated as of November
15, 2001, among the Depositor, the Trustee and the Servicer.

 

-2-exhibit 10.35 Purchase AA among Point West Capital & Kildare Capital

PURCHASE AGREEMENT

                   
This PURCHASE AGREEMENT (this "Agreement"), dated as of December 31, 2001, is by
and among Point West Capital Corporation, a Delaware corporation (the "Seller"),
Kildare Capital, Inc., a California corporation ("Purchaser"), and BROKER DEALER
MARKET, INC., a Florida corporation ("Escrow Agent"), regarding the sale and
purchase of one hundred percent (100%) of the equity ownership of Point West Securities,
LLC, a Delaware limited liability company (the "Company").

                   
A. WHEREAS, Seller is the owner of all the member interests ("Interests") of the
Company;

                   
B. WHEREAS, the Company is a broker-dealer registered with the United States Securities
and Exchange Commission (the "SEC") pursuant to Section 15 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), is in good standing with
the National Association of Securities Dealers as a member thereof and is authorized to
conduct business as a broker-dealer; and

                   
C. WHEREAS, Seller wishes to sell, and Purchaser wishes to purchase, the Interests on the
terms and conditions set forth below.

                   
NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants set
forth herein, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, and intending to be legally bound hereby, the parties do
mutually covenant and agree as follows:

ARTICLE 1

PURCHASE PRICE

                   
1.1 Subject to the terms and conditions contained herein, Purchaser agrees to pay
FORTY-FIVE THOUSAND DOLLARS ($45,000) (the "Purchase Price") for the Interests.
As of the date hereof, Purchaser deposited, and Escrow Agent acknowledges that Purchaser
deposited, the sum of TWENTY THOUSAND DOLLARS ($20,000) with Escrow Agent as a good faith
deposit. The balance of the Purchase Price, TWENTY-FIVE THOUSAND DOLLARS ($25,000), in the
form of a cashier’s check or bank to bank transfer, shall be due and payable to
Escrow Agent at least one day prior to the Closing Date (as such term is defined below).

ARTICLE 2

CLOSING DATE AND CLOSING DELIVERABLES

                   
2.1 The closing of the purchase and sale of the Interests (the "Closing") shall
occur promptly after (but in no event more than three business days after) the receipt by
Purchaser of written approval of this transaction from both the National Association of
Securities Dealers ("NASD") and the State of California (the "Closing
Date"). The Closing shall be accomplished by mail.

 

 

                   
2.2 On the business day before the Closing Date: 

                                       
(a) Purchaser will deposit with Escrow Agent the balance of the Purchase Price in the
amount as set forth above. 

                                       
(b) As Seller’s Interests are not certificated, Seller shall deliver an assignment of
limited liability company membership interest (the "Assignment of Interest"),
substantially in the form of Exhibit A, to the Escrow Agent evidencing the transfer of the
Interests to Purchaser at Closing. 

                                       
(c) Seller will execute and deliver to Escrow Agent a certificate (the "Closing
Certificate"), dated as of the Closing Date, certifying that the representations and
warranties of Seller contained in this Agreement are true and correct on and as of the
Closing Date with the same effect as if made on and as of the date hereof and that all
covenants and conditions to be performed and satisfied on or before the Closing have been
fully performed and satisfied by Seller.

                                       
(d) Seller will deliver signature cards for the Company’s bank accounts designating
Sean Sweeney as the only signor to the Escrow Agent.

                   
2.3 On the Closing Date, Escrow Agent will deliver, by reputable overnight courier, to
Purchaser, the Closing Certificate, the bank signature cards referred to in 2.2(d), the
executed Assignment of Interest, and to Seller, the Purchase Price. 

ARTICLE 3

PURCHASER’S AND SELLER’S OBLIGATION PRE-CLOSING

                   
3.1 As soon as practicable after the signing of this Agreement, but before the Closing,
Purchaser will prepare an amended Form B/D (the "Form B/D") to be filed promptly
after the Closing by Purchaser with the SEC, the NASD and the State of California,
indicating the change in ownership of Company and listing the new officers and directors,
including specifically appropriate disclosure of the resignation of the present licensed
persons from association with the Company. The Form B/D may also indicate a change in
business and change in location of the Company. Immediately after the signing of this
Agreement Seller shall prepare and send a letter to the NASD notifying the NASD of the
anticipated change in ownership of the Company and shall, further, cooperate to the extent
necessary with Purchaser with respect to preparation of the Form B/D and the subsequent
processing thereof after Closing by the regulatory authorities, to facilitate the
transaction contemplated herein and to provide such information to Purchaser, the NASD
and/or the SEC as is reasonably necessary in connection with NASD’s and SEC’s
review of this transaction. 

2

 

                   
3.2 Prior to Closing, Seller:

                                       
(a) will file, on behalf of Purchaser, the registration forms for the Commonwealth of
Pennsylvania; provided, however, that Purchaser will reimburse Seller at
Closing for all registration fees directly related to such registration (the "State
Registration Fees"); and

ARTICLE 4

SELLER’S REPRESENTATIONS

                       
4.1 Seller hereby represents, warrants and covenants to and with Purchaser on the date
hereof, which representations, warranties and covenants will continue to be true and
correct and will be fully performed or satisfied on or before the Closing Date, the
following:

                                       
(a) The Company is a limited liability company duly formed, validly existing and in good
standing under the laws of the State of Delaware, has all requisite power and authority to
own and operate its properties and to carry on business as now being conducted or as
conducted in the past, and is qualified to do business and is in good standing as a
foreign entity in each state or other jurisdiction in which the nature of its properties,
assets or business requires such qualification and in which the failure to so qualify
could have a material adverse effect on its business.

                                       
(b) On the Closing Date, Seller will convey and Purchaser will receive good and marketable
title to the Interests, which will represent all of the outstanding membership interests
of the Company, free of any claim, debt or obligation whatsoever, and no outstanding
options, warrants, rights (including conversion or preemptive rights and rights of first
refusal), proxy or stockholder agreements, or agreements of any kind (oral or written) for
the purchase or acquisition from the Company of any of its membership interests.

                                       
(c) The execution and delivery of this Agreement, and the consummation of the transactions
contemplated hereby, by Seller will not conflict with, violate or breach, or result in a
default or lien under (i) any agreement or other instrument to which the Company or Seller
is a party, including without limitation the Company’s operating agreement and
articles of organization or (ii) any permit, license, registration or authorization of any
governmental or self-regulated agency or other person.

                                       
(d) The Company is duly licensed as a broker/dealer with (i) the SEC, (ii) the NASD, (iii)
the State of California and (iv) the Securities Industry Protection Corporation (the
"SIPC"). The Company has all permits, licenses and authorizations required by
any government authority or agency for the conduct of its current business. The Company is
registered and in good standing with the SEC as a broker-dealer pursuant to the Exchange
Act and each jurisdiction which requires such registration or qualification in connection
with its business and is a member in good standing of the NASD and the SIPC, and is
currently fully registered to conduct business in the State of California, and has been
and currently is operating in full compliance with the laws, rules and regulations of such
regulatory bodies and any other industry, governmental or trade organization required by
law for the conduct of its present business (together "Regulatory Agencies").

3

 

                                       
(e) On the Closing Date, Seller will deliver to Purchaser all of the Company’s books,
records and documents in such form and detail as may be required or requested in the
normal course of operating a licensed broker/dealer by any of the regulatory agencies of
licensed broker/dealers.

                                       
(f) There are no debts or liabilities of any nature or kind outstanding, including
liabilities for securities transactions effected by the Company or liabilities for
securities, the creation or placement of which has been facilitated by the Company. As of
the Closing Date, there will be no outstanding trades that have not settled. The Company
is not party to any agreements (whether oral or written), except for those listed on Schedule
A attached hereto. Seller has delivered to Purchaser true, correct and complete copies
(including all amendments and supplements thereto) of all agreements listed on Schedule
A. 

                                       
(g) Seller has caused the Company to prepare and file accurately all federal, state and
local and all other material income, property, sales and use, or other applicable tax
returns, declarations, statements, reports (including FOCUS reports), schedules, forms and
information returns and any amendments thereto that are or were required to be filed
(collectively, "Tax Returns"), and has paid, caused the Company to pay, or made
provision for the payment of all taxes and other charges required to be paid with respect
to the periods covered by such Tax Returns, including the period ended December 31, 2001.
Seller has not caused the Company to be and it is not currently delinquent in the payment
of any tax assessment or governmental charge, nor has Seller caused the Company to execute
any waiver of any statute of limitations on the assessment or collection of any tax.
Seller knows of no basis for the assertion of any deficiencies for any period covered by
such Tax Returns or otherwise payable to any taxing authority.

                                       
(h) Since December 31, 2001, there has been no change in the assets, liabilities,
financial condition or operating results of the Company, except those changes in the
ordinary course of business that have not been, in the aggregate, materially adverse to
the Company.

                                           
(i) Seller has delivered to Purchaser a true and correct copy of the Company’s
unaudited financial statements as of and for the year ended December 31, 2001, and the
Company’s audited financial statements as of and for the years ended December 31,
2000, and December 31, 1999, which financial statements have been prepared in accordance
with generally accepted accounting principles and present fairly in all material respects
the financial position of the Company as of the date thereof.

                                       
(j) Seller has delivered to Purchaser all of the Company’s books and records,
including all formation documents, annual filings and minutes of the Company’s
managers and/or members, if any.

                                       
(k) There are no customer complaints (oral or written) outstanding, and none has ever been
made against the Company.

                                       
(l) There is no claim (oral or written), action, suit, litigation, proceeding, arbitration
or investigation of any kind, at law or in equity (including actions or 

4

 

proceedings seeking injunctive relief), pending or, to the best
knowledge of Seller, threatened against the Company (nor is Seller aware of any basis on
which any of the foregoing could reasonably be threatened) and the Company is not subject
to any continuing order of consent decree, settlement agreement or other similar written
agreement with or investigation by, any regulatory authority or governmental entity, or
any judgment, order, writ, injunction, decree or award of any regulatory authority or
governmental entity or arbitrator including, without limitation, cease-and-desist or other
orders.

                                       
(m) The Company has no subsidiaries and does not own any capital stock, security,
partnership interest or other equity interest of any kind in any corporation, partnership,
joint venture, association or other entity.

                                       
(n) The Company does not now engage in, nor has the Company ever engaged in, any
manufacturing activity or the distribution of manufactured goods, nor has any such
activity ever been conducted by any third party within any premises leased or owned by the
Company.

                                       
(o) The Company does not now sponsor, maintain, offer or have (nor has it ever sponsored,
maintained, offered or had) any employee benefit plans. Except Seller, the Company has no
employees who have performed activities on behalf of the Company as members and/or
managers under the Delaware Limited Liability Company Act and the Company has never had
any employees who have performed activities on behalf of the Company as members and/or
managers under the Delaware Limited Liability Company Act.

                                        
(p) The Company’s Security Dealer Fidelity Bond with Fidelity & Deposit Company
of Maryland (Policy #S0990168) is in good standing, and will continue to be in good
standing and in full force and effect with no claims pending against such Bond as of the
Closing Date.

                                       
(q) The Company is exempt from registration with the Lost and Stolen Securities Program.

                                       
(r) The Company does not maintain or have (nor has the Company ever maintained or had) a
custodial bank account for customer funds.

                                       
(s) All information provided to Purchaser, or its agents, by or on behalf of the Company
or Seller or any of their respective representatives or agents (including, without
limitation, each representation, warranty and covenant of Seller set forth in this
Agreement) is, and Seller covenants that any such information provided hereafter will be,
true and correct in all material respects and does not, and Seller will not, omit any
material statements which would make the statements made, in light of the circumstances
under which they were made, not misleading.

ARTICLE 5

COVENANTS

                   
5.1 From the date hereof through the Closing Date, Seller will not, and will use its best
efforts to cause the Company not to:

 

5

                              
  (a) make any change in the Company’s certificate of formation or operating agreement
  or authorize or propose the same;

                                       
(b) issue, deliver or sell, authorize or propose the issuance, delivery or sale of, any of
the Company’s securities (including any Interests of the Company), options, warrants,
calls, conversion rights or commitments relating to the Company’s securities of any
kind, or authorize or propose any change in the Company’s equity capitalization, or
issue or authorize the issuance of any debt securities of the Company;

                                       
(c) declare or pay any dividend, or make any distribution (whether in cash, stock or
property) in respect of its member interests, whether now or hereafter outstanding, or
split, combine or reclassify any of the member interests, or issue or authorize the
issuance of any other securities in respect of, in lieu of or in substitution for the
member interest or purchase, redeem or otherwise acquire or retire for value any of the
Interests;

                                       
(d) enter into any contract or commitment or incur or agree to incur any liability (other
then commissions payable in the ordinary course of business) or make any capital
expenditures, or guarantee any indebtedness;

                                       
(e) acquire or negotiate for the acquisition of (by merger, consolidation, purchase of a
substantial portion of assets or otherwise) any business or the start-up of any new
business, or otherwise acquire or agree to acquire any assets (other than assets acquired
in connection with the execution of securities trades executed in the ordinary course of
business);

                                       
(f) merge or consolidate or agree to merge or consolidate with or into any other
corporation or entity;

                                       
(g) waive any material rights or claims of the Company;

                                       
(h) commit a material breach of or amend or terminate any agreement, permit, license or
other right other than as specifically permitted herein;

                                       
(i) enter into any agreement (whether oral or written);

                                       
(j) commence or threaten a lawsuit;

                                       
(k) revalue any of the Company’s assets, including without limitation, writing off
accounts receivable;

                                       
(l) make any tax election other than in the ordinary course of business and consistent
with past practice, change any tax election, adopt any tax accounting method other than in
the ordinary course of business and consistent with past practice, change any tax
accounting method, file any tax return (other than any estimated tax returns, payroll tax
returns or sales tax returns) or any amendment to a tax return, enter into any closing
agreement, settle any tax claim or assessment, or consent to any tax claim or assessment;
or

 

6

                                       
(m) take, or agree (in writing or otherwise) to take, any of the actions described in (a)
through (l) in this Section, or any action which would make any of the representations and
warranties of Seller contained in this Agreement untrue or result in any of the covenants
set forth in this Agreement not being satisfied.

                   
5.2 Within 2 business days of filing the Company’s FOCUS report for the quarter
ending December 31, 2001 (the "FOCUS Report") with the NASD, Seller will deliver
to Purchaser a true and correct copy of the FOCUS Report.

ARTICLE 6

INDEMNIFICATION AND ASSUMPTION OF LIABILITIES

                   
6.1 Seller shall indemnify, defend, and hold harmless Purchaser and its affiliates and
their respective shareholders, directors, officers, employees, and agents from and against
all claims, causes of action, losses, damages, liabilities, fines, penalties, costs, and
expenses (including all reasonable fees and disbursements of counsel), whether arising in
equity, at common law, or by statute, or under the law of contracts, tort (including
negligence and strict liability without regard to fault) or property, of every kind and
character (including for personal injury (including emotional distress), real or personal
property damage and economic loss), (collectively, "Losses"), to the
extent (i) caused by a breach of any representation or warranty made by Seller in this
Agreement and any other certificate or document delivered by Seller pursuant to this
Agreement or (ii) arising from or out of Seller’s ownership or operation of the
Company or its business on or prior to the Closing Date, including, but not limited to,
any agreement existing before or as of the Closing Date.

                   
6.2 Purchaser shall indemnify, defend, and hold harmless Seller and its affiliates and
their respective shareholders, directors, officers, employees, agents from and against all
Losses to the extent (i) caused by a breach of any representation or warranty made by
Purchaser in this Agreement and any other certificate or document delivered by Purchaser
pursuant to this Agreement or (ii) arising from or out of Purchaser’s ownership or
operation of the Company or its business after the Closing Date.

                   
6.3 The amount of any loss, liability, claim, damage, expense or tax for which
indemnification is provided under this Section 6 shall be net of any amounts
recovered by the Indemnified Party (as defined below) under insurance policies with
respect to such loss, liability, claim, damage or expense.

                   
6.4 In order for a party (the "Indemnified Party") to be entitled to any
indemnification provided for under this Agreement in respect of, arising out of or
involving a claim or demand made by any third party against the Indemnified Party (a
"Third Party Claim"), such Indemnified Party must notify the party who is
indemnifying (the "Indemnifying Party") in writing, and in reasonable
detail, of the Third Party Claim within 20 business days after receipt by such Indemnified
Party of written notice of the Third Party Claim and in any event prior to the expiration
of any time period established by laws for defending a Third Party Claim or instituting a
claim for indemnification, including laws relating to statutes of limitations pertaining
to the Third Party Claim for which indemnification is sought; provided, however, that
failure to give such notification shall not affect the indemnification provided hereunder
except to the extent the 

7

Indemnifying Party shall have been actually prejudiced as a result of
such failure, including the inability to defend such Third Party Claim as the result of
applicable laws, including statutes of limitations (except that the Indemnifying Party
shall not be liable for any expenses incurred during the period in which the Indemnified
Party failed to give such notice). Thereafter, the Indemnified Party shall deliver to the
Indemnifying Party, within five business days after the Indemnified Party’s receipt
thereof, copies of all notices and documents (including court papers) received by the
Indemnified Party relating to the Third Party Claim.

    If a Third Party Claim is made against an
Indemnified Party, the Indemnifying Party shall be entitled to participate in the defense
thereof and, if it so chooses and acknowledges its obligation to indemnify the Indemnified
Party therefor, to assume the defense thereof with counsel selected by the Indemnifying
Party; provided that such counsel is not reasonably objected to by the Indemnified Party.
If the Indemnifying Party assumes such defense, the Indemnified Party shall have the right
to participate in the defense thereof and to employ counsel (not reasonably objected to by
the Indemnifying Party), at its own expense, separate from the counsel employed by the
Indemnifying Party, it being understood that the Indemnifying Party shall control such
defense. The Indemnifying Party shall be liable for the fees and expenses of counsel
employed by the Indemnified Party for any period during which the Indemnifying Party has
failed to assume the defense thereof.

    If the Indemnifying Party so elects to assume the
defense of any Third Party Claim, the Indemnified Party shall reasonably cooperate with
the Indemnifying Party in the defense or prosecution thereof. Such cooperation shall
include (i) the retention and (upon the Indemnifying Party’s request and expense) the
provision to the Indemnifying Party of records and information which are reasonably
relevant to such Third Party Claim, and making employees available, on a mutually
convenient basis to provide additional information and explanation of any material
provided hereunder. (ii) to any settlement, compromise or discharge of a Third Party Claim
which the Indemnifying Party may recommend and which by its terms obligates the
Indemnifying Party to pay the full amount of the liability in connection with such Third
Party Claim, which releases the Indemnified Party completely in connection with such Third
Party Claim and which, in the reasonable judgment of the Indemnifying Party, would not
otherwise adversely affect the Indemnified Party.

    Notwithstanding the foregoing, the Indemnifying
Party shall not be entitled to assume the defense of any Third Party Claim (and shall be
liable for the fees and expenses of counsel incurred by the Indemnified Party in defending
such Third Party Claim) if the Third Party Claim seeks an order, injunction or other
equitable relief or relief for other than money damages against the Indemnified Party
which the Indemnified Party reasonably determines, after conferring with its outside
counsel, cannot be separated from any related claim for money damages. If such equitable
relief or other relief portion of the Third Party Claim can be so separated from that for
money damages, the Indemnifying Party shall be entitled to assume the defense of the
portion relating to money damages. The indemnification required by Section 6 shall
be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or loss, liability, claim, damage or expense is
incurred. 

ARTICLE 7

TERMINATION

 

8

 

                   
7.1 This Agreement may be terminated at any time prior to the Closing:

                                       
(a) By the written agreement of Purchaser and Seller, in which case Escrow Agent shall
return to Purchaser, within two business days of such termination, all of the Purchase
Price deposited with Escrow Agent; or

                                       
(b) By Purchaser upon written notice to Seller and Escrow Agent only in the event of one
or more of the following: 

                                               
(i) Seller and Purchaser do not receive all necessary third party approvals, including the
NASD and the State of California, within 90 days from the date hereof; or

                                               
(ii) there has been a breach by Seller of any representation, warranty, covenant or
agreement set forth in this Agreement.

                   
7.2 In the event of a termination of this Agreement pursuant to Section 7.1(b)(i) of this
Article, Escrow Agent shall return to Purchaser, within two business days of such
termination, all of the Purchase Price deposited with Escrow Agent less the State
Registration Fees which Escrow Agent shall deliver to Seller as Seller’s sole and
exclusive remedy. In the event of a termination of this Agreement pursuant to Section
7.1(b)(ii) of this Article, Seller shall not be entitled to reimbursement of the State
Registration Fees and in such case, Escrow Agent shall return to Purchaser within two
business days of such termination, all of the Purchase Price deposited with Escrow Agent.

ARTICLE 8

SELLER’S POST CLOSING COVENANT

                   
8.1 Seller will, no later than one business day following the Closing Date, send a notice
of termination with respect to each agreement listed on Schedule A attached hereto.

ARTICLE 9

ESCROW AGENT’S, BROKER’S AND FINDER’S FEES

                   
9.1 Other than fees due to Escrow Agent, Seller and Purchaser have not incurred, and will
not incur, directly or indirectly, any liability for brokerage’s or finder’s
fees or agent’s commissions or any similar charges in connection with this Agreement
or any transaction contemplated hereby. Escrow Agent acknowledges and agrees that upon
receipt of $__________ (the "Escrow Agent Fee") at Closing, to be deducted from
the Purchase Price deposited in escrow, Escrow Agent will be fully paid by the parties
hereto for all services rendered in connection herewith. Escrow Agent acknowledges and
agrees that he will only be entitled to the Escrow Agent Fee if this transaction closes
pursuant to the terms of this Agreement. 

ARTICLE 10

NOTICES

 

9

                   
10.1 Except for matters relating to formation, governance and capitalization of the
Company which will be governed by the Delaware Limited Liability Company Act of the State
of Delaware, this Agreement shall be enforced and interpreted in accordance with the law
of the State of California, and in the courts of the State of California, which shall have
exclusive jurisdiction thereover. Personal service in any proceeding shall be made and
accepted in the manner of giving of notice as below stated.

                   
10.2 Any notices, demands, consent or other communications, which may or shall be given
one business day after the day sent by overnight courier service, in each case, addressed
to the parties as below provided:

  
    
      
        If to Purchaser at:
                           
        Kildare Capital, Inc.

                                                           
        960 North Amelia Avenue, Suite "A"

                                                           
        San Dimas, California 91773

        If to Seller at:
                                   
        Point West Capital Corporation

                                                           
        1700 Montgomery Street, Suite 250

                                                           
        San Francisco, California 94111

        If to Escrow Agent:
                           
        Broker Dealer Market Inc

                                                           
        302 Park Boulevard

                                                           
        Oldsmar, Florida 34677

         

      

    

  

ARTICLE 11

SURVIVAL

                   
11.1 Those paragraphs which either expressly or by their nature would survive termination
of this Agreement shall survive termination of this Agreement.

ARTICLE 12

NECESSARY ACTS AND FURTHER ASSURANCES

                   
12.1 The parties will execute and deliver such other and further documents and
instruments, and will take such other and further actions, as may be reasonably necessary
or appropriate to evidence or carry out the parties’ mutual intent in entering into
this Agreement.

ARTICLE 13

COMPLETE AGREEMENT; COUNTERPARTS

                   
13.1 This Agreement embodies the entire agreement and understanding of the parties with
respect to the subject matter hereof, and supersedes all other agreements and
understandings, whether written or oral, between the parties relating to the subject
matter hereof entered into prior to the execution hereof. No modification, amendment or
supplement to this Agreement will be binding or effective for any purpose unless such
modification, amendment or supplement is in writing and executed by the duly authorized
representatives of all parties hereto. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same Agreement.

10

ARTICLE 14

THIRD PARTY BENEFICIARIES

                   
Except as expressly stated herein, nothing in this Agreement is intended to confer
benefits, rights or remedies unto any person other than the parties hereto and their
permitted successors and assigns.

 

11

 

                   
IN WITNESS WHEREOF, the parties have executed this Purchase Agreement as of the date first
written above.

 

 

 

	KILDARE CAPITAL, INC.

	
	By:
             /s/ Sean M. Sweeney
	

    
	Name:    Sean M. Sweeney
	Title:       CEO

 

	POINT WEST CAPITAL
    CORPORATION

	
	By:
              /s/ John W. Rotter
	

    
	Name:    John W. Rotter
	Title:
            CEO

 

	ESCROW AGENT:

	
	BROKER DEALER MARKET INC.
	By:
             /s/ John J. McGrath
	

    
	Name:    John J. McGrath
	Title:       
    President

 

 

 

  
    
      
        
          
            
              
                
                  
                    
                      
                         

                      

                    

                  

                

              

            

          

        

      

    

  

SCHEDULE A

Agreements

 

ASSIGNMENT OF LIMITED LIABILITY COMPANY MEMBERSHIP INTEREST

 

                   
THIS ASSIGNMENT OF LIMITED LIABILITY COMPANY MEMBERSHIP INTEREST AGREEMENT (the
"Assignment") is made as of the ___ day of _______, 2002 by and between Kildare
Capital, Inc., a California corporation ("Kildare"), and Point West Capital
Corporation ("Point West").

                   
WHEREAS, Point West is the sole Member and Manager of Point West Securities, LLC, a
Delaware limited liability company ("Point West Securities"); and

                   
WHEREAS, Point West desires to assign, deliver, convey, transfer and vest all of its
right, title and interest, legal and equitable, in the limited liability company interest
("Membership Interest") in Point West Securities, all of which are owned by
Point West to Kildare and Kildare desires to accept such assignment, delivery, conveyance,
transfer and vesting pursuant to the terms and conditions contained herein and that
certain purchase agreement by and among Kildare, Point West and Broker Dealer Market,
Inc., a Florida corporation, dated as of December 31, 2001 (the "Purchase
Agreement").

                   
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound hereby, the parties hereto
agree as follows:

                   
1. Point West hereby assigns to Kildare all of its right, title and interest in Point West
Securities with respect to such Membership Interest and Kildare hereby assumes all of
Point West’s right, title and interest in Point West Securities with respect to such
Membership Interest.

                   
2. This Agreement shall be binding upon Point West and Kildare and their respective
successors and permitted assigns and shall inure to the benefit of Point West and Kildare,
and their respective successors and permitted assigns.

                   
3. Neither the making nor the acceptance of this instrument shall enlarge, restrict or
otherwise modify the terms of the Purchase Agreement or constitute a waiver or release of
any such parties’ liabilities, duties or obligations under such agreement.

                   
4. This Assignment shall be governed by and construed in accordance with the laws of the
State of California, without regard to its provisions with respect to conflict of laws.

 

IN WITNESS WHEREOF, Point West and Kildare have caused this Assignment of Limited
Liability Company Membership Interest Agreement to be executed as of the day and year
first above written.

 

 

POINT WEST CAPITAL CORPORATION

By: _______________________________ 

Name: John Ward Rotter

Title: CEO 

 

KILDARE CAPITAL, INC.

By: _______________________________

Name: Sean Sweeney

Title: President

 

POINT WEST CAPITAL CORPORATION

SECRETARY’S CERTIFICATE

 

                   
I, John Ward Rotter, Secretary of Point West Capital Corporation, a Delaware corporation
(the "Company"), do hereby further certify that:

                               
1. Attached hereto as Exhibit A are true, correct and complete copies of
resolutions duly adopted by the Board of Directors of the Company authorizing the
execution, delivery and performance of the Purchase Agreement dated December 31, 2001
("the Purchase Agreement"), by and among the company, Kildare Capital, Inc., a
California corporation and Broker Dealer Market Inc., a Florida corporation and the
consummation of the transactions contemplated by the Purchase Agreement. All of the
resolutions contained in Exhibit A hereto were duly and validly adopted by the
Board of Directors of the Company in accordance with applicable law and the bylaws of the
Company. Such resolutions have not bee amended, modified or rescinded and are in full
force and effect on the date hereof.

                               
2. The following persons are duly elected, qualified and acting officers of the Company
and hold the respective offices set forth opposite their names below, and the signatures
set forth opposite their names and titles are their true and genuine signatures:

 

	Name	Title	Signature
			
	John Ward Rotter	Chief Executive Officer	/s/ John Ward Rotter
			
	Alan B. Perper	  President	/s/ Alan B. Perper
			
	Bradley Rotter	  Chairman	/s/ Bradley Rotter

IN WITNESS WHEREOF, I have hereunto signed my name as the CEO and Corporate Secretary
of the Company, as of this 23 day of January, 2002.

 

	POINT WEST
    CAPITAL CORPORATION

	

	By:
              /s/ John W. Rotter

	

    

	Name:    John
    W. Rotter

	Title:
            CEO and Corporate Secretary

 

                   
I, Alan B. Perper, President of Point West Capital Corporation, do hereby certify that
John Ward Rotter is the duly appointed, qualified and acting CEO, Chief financial Officer
and Corporate Secretary of Point West Capital Corporation, and that the signature of John
Ward Rotter set forth above is his true and genuine signature.

 

                   
IN WITNESS WHEREOF, I have hereunto signed my name this 23 day of January,

 

	POINT WEST
    CAPITAL CORPORATION

	

	By:
              /s/ Alan B. Perper

	

    

	Name:    Alan
    B. Perper

	Title:
           President

 

 

 

EXHIBIT A

Resolutions

 

                   
Whereas, the Purchase Agreement dated as of December 31, 2001, by and among the company,
Kildare Capital, inc., a California Corporation and Broker Dealer Market Inc., as Florida
corporation (the "Purchase Agreement") has been presented to the board of
Directors; and whereas, the company will benefit by entering into the Purchase Agreement.

 

                   
Now, therefore, it is hereby resolved that Ward Rotter or Alan Perper is authorized and
directed to execute and deliver the Purchase Agreement to consummate the transaction
contemplated thereby and take all other actions and execute and deliver any and all other
or further documents and instruments contemplated or necessary, in either of their sole
dissolution, in order to effectuate the transaction contemplated in the Purchase
Agreement.

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