Document:

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                                                                EXHIBIT 10.14(d)

                                                          March 28, 2003

Banc of America Securities LLC
600 Montgomery Street
San Francisco, California 94111

Ladies and Gentlemen:

        1. Introduction. This agreement confirms our agreement with you ("BAS")
relating to the modification of certain terms of the Forward Issuance Agreement
(the "FORWARD ISSUANCE AGREEMENT") dated August 31, 2000, between BAS and Allied
Capital Corporation, a Maryland corporation (the "COMPANY"), as amended by the
letter agreements between BAS and the Company dated August 29, 2002, September
6, 2002, September 13, 2002, September 20, 2002 and September 27, 2002,
respectively, and by the letter agreement between BAS and the Company dated
September 30, 2002 (as amended by the letter agreement between BAS and the
Company dated December 19, 2002). Each capitalized term not otherwise defined
herein shall have the meaning assigned to such term in the Forward Issuance
Agreement.

        2. Additional Fee.  The payment date of the Additional Fee shall be
changed from March 31, 2003 to June 30, 2003.

        3. Underwriting or Placement Commissions. The Company and BAS agree that
with respect to any Issuance completed after March 31, 2003 and no later than
the Issuance Period End Date, BAS's underwriting or placement discount,
commission or fee shall be changed from 3.5% of the aggregate gross proceeds of
such Issuance to 2.75% of the aggregate gross proceeds of such Issuance.

        4. No Other Modification. Other than as specifically provided herein,
this agreement shall not operate to modify any other terms of the Forward
Issuance Agreement. The Forward Issuance Agreement shall remain in full force
and effect after the execution of this agreement.

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

        6. Counterparts.  This agreement may be issued in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

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        Please confirm your agreement with the foregoing by signing and
returning a copy of this agreement to the undersigned.

                                    Very truly yours,

                                    ALLIED CAPITAL CORPORATION

                                    By: /s/ Kelly A. Anderson
                                        ---------------------
                                    Name:  Kelly A. Anderson
                                    Title: EVP & Treasurer

Accepted and Agreed as of
the date first above written:

BANC OF AMERICA SECURITIES LLC

By: /s/ Derek Dillon
    -----------------
    Name:  Derek Dillon
    Title: Managing Directorexv4w1

 

EXHIBIT 4.1

CERTIFICATE OF DESIGNATION OF TERMS OF

5.25% NON-CUMULATIVE PREFERRED STOCK, SERIES D

	1.	 	Designation, Par Value and Number of Shares.

     The designation of the series of preferred stock of the Federal National
Mortgage Association (the “Corporation”) created by this resolution shall be
“5.25% Non-Cumulative Preferred Stock, Series D” (the “Series D Preferred
Stock”), and the number of shares constituting the Series D Preferred Stock is
Three Million (3,000,000). Shares of Series D Preferred Stock will have no par
value and a stated value and liquidation preference of $50 per share. The Board
of Directors of the Corporation, or a duly authorized committee thereof, in its
sole discretion, may increase the number of shares of Series D Preferred Stock
and may reduce the number of shares of Series D Preferred Stock, provided such
reduction is not below the number of shares of Series D Preferred Stock then
outstanding.

	2.	 	Dividends.

     (a)   Holders of record of Series D Preferred Stock (each individually a
“Holder”, or collectively the “Holders”) will be entitled to receive, when, as
and if declared by the Board of Directors of the Corporation, or a duly
authorized committee thereof, in its sole discretion out of funds legally
available therefor, non-cumulative, quarterly cash dividends which will accrue
from and including September 30, 1998, and will be payable on March 31, June
30, September 30 and December 31 of each year (each, a “Dividend Payment
Date”), commencing December 31, 1998, at the annual rate of $2.625 per share or
5.25% of the stated value and liquidation preference of $50 per share (without
taking into account any adjustments referred to in clause (b) below). Dividends
on the Series D Preferred Stock will be payable to the Holders as they appear
on the books and records of the Corporation on the relevant record date fixed
by the Board of Directors, or a duly authorized committee thereof, which may
not be earlier than 45 days or later than 10 days prior to the applicable
Dividend Payment Date.

     If declared, the initial dividend, which will be for the period from and
including September 30, 1998 to but excluding December 31, 1998, will be
$0.65625 per share. Thereafter, the dividend period relating to a Dividend
Payment Date will be the period from and including the preceding Dividend
Payment Date to but excluding such Dividend Payment Date. If a Dividend Payment
Date is not a Business Day, dividends (if declared) on the Series D Preferred
Stock will be paid on the succeeding Business Day, without interest. A
“Business Day” shall mean any day other than a Saturday, Sunday or other day on
which banking institutions in New York, New York are authorized or required by
law to close. Dividends payable on the Series D Preferred Stock for any period
greater or less than a full dividend period will be computed on the basis of a
360-day year consisting of twelve 30-day months and the actual number of days
elapsed in any period of less than one month. Dividends payable on the Series D
Preferred Stock for each full dividend period will be computed by dividing the
per annum dividend rate by four.

     (b)   No dividend (other than dividends or distributions paid in shares of,
or options, warrants or rights to subscribe for or purchase shares of, the
common stock of the Corporation or any other stock of the Corporation ranking,
as to the payment of dividends and the distribution of assets upon dissolution,
liquidation or winding up of the Corporation, junior to the Series D Preferred
Stock) may be declared or paid or set apart for payment on the Corporation’s
common stock (or on any other stock of the Corporation ranking, as to the
payment of dividends, junior to the Series D Preferred Stock) unless dividends
have been declared and paid or set apart (or ordered to be set apart) on the
Series D Preferred Stock for the then-current quarterly dividend period;
provided, however, that the foregoing dividend preference shall not be
cumulative and shall not in any way create any claim or right in favor of the
Holders of Series D Preferred Stock in the event that dividends have not been
declared or paid or set apart (or ordered to be set apart) on the Series D
Preferred Stock in respect of any prior dividend period. If the full dividend
on the Series D Preferred Stock is not paid for any quarterly dividend period,
the Holders of Series D Preferred Stock will have no claim in respect of the
unpaid amount so long as no dividend (other than those referred to above) is

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paid on the Corporation’s common stock (or any other stock of the
Corporation ranking, as to the payment of dividends, junior to the Series D
Preferred Stock) for such dividend period.

     (c)   The Board of Directors of the Corporation, or a duly authorized
committee thereof, may, in its discretion, choose to pay dividends on the
Series D Preferred Stock without the payment of any dividends on the
Corporation’s common stock (or any other stock of the Corporation ranking, as
to the payment of dividends, junior to the Series D Preferred Stock).

     (d)   No full dividends shall be declared or paid or set apart for payment
on any stock of the Corporation ranking, as to the payment of dividends, on a
parity with the Series D Preferred Stock for any period unless full dividends
have been declared and paid or set apart for payment on the Series D Preferred
Stock for the then-current quarterly dividend period. When dividends are not
paid in full upon the Series D Preferred Stock and all other classes or series
of stock of the Corporation, if any, ranking, as to the payment of dividends,
on a parity with the Series D Preferred Stock, all dividends declared upon
shares of Series D Preferred Stock and all such other stock of the Corporation
will be declared pro rata so that the amount of dividends declared per share of
Series D Preferred Stock and all such other stock will in all cases bear to
each other the same ratio that accrued dividends per share of Series D
Preferred Stock (but without accumulation of unpaid dividends on the Series D
Preferred Stock for prior dividend periods) and such other stock bear to each
other.

     (e)   No dividends may be declared or paid or set apart for payment on any
shares of Series D Preferred Stock if at the same time any arrears exist or
default exists in the payment of dividends on any outstanding class or series
of stock of the Corporation ranking, as to the payment of dividends, prior to
the Series D Preferred Stock.

     (f)   Holders of Series D Preferred Stock will not be entitled to any
dividends, whether payable in cash or property, other than as herein provided
and will not be entitled to interest, or any sum in lieu of interest, in
respect of any dividend payment.

	3.	 	Optional Redemption.

     (a)   On or after September 30, 1999, the Corporation, at its option, may
redeem the Series D Preferred Stock, in whole or in part, at any time or from
time to time, out of funds legally available therefor, at the redemption price
of $50.00 per share plus an amount equal to the dividend (whether or not
declared) for the then-current quarterly dividend period accrued to but
excluding the date of such redemption, but without accumulation of unpaid
dividends on the Series D Preferred Stock for prior dividend periods. If less
than all of the outstanding shares of Series D Preferred Stock are to be
redeemed, the Corporation will select the shares to be redeemed from the
outstanding shares not previously called for redemption by lot or pro rata (as
nearly as possible) or by any other method that the Board of Directors of the
Corporation, or a duly authorized committee thereof, in its sole discretion
deems equitable.

     (b)   In the event the Corporation shall redeem any or all of the Series D
Preferred Stock as aforesaid, the Corporation will give notice of any such
redemption to Holders of Series D Preferred Stock not less than 30 days prior
to the date fixed by the Board of Directors of the Corporation, or duly
authorized committee thereof, for such redemption. Each such notice will state:
(1) the number of shares of Series D Preferred Stock to be redeemed and, if
fewer than all of the shares of Series D Preferred Stock held by a Holder are
to be redeemed, the number of shares to be redeemed from such Holder; (2) the
redemption price; (3) the redemption date; and (4) the place at which a
Holder’s certificate(s) representing shares of Series D Preferred Stock must be
presented upon such redemption. Failure to give notice, or any defect in the
notice, to any Holder of Series D Preferred Stock shall not affect the validity
of the proceedings for the redemption of shares of any other Holder of Series D
Preferred Stock being redeemed.

     (c)   Notice having been given as herein provided, from and after the
redemption date, dividends on the Series D Preferred Stock called for
redemption shall cease to accrue and such Series D Preferred Stock called for
redemption will no longer be deemed outstanding, and all rights of the Holders
thereof as registered holders of such shares of Series D Preferred Stock will
cease. Upon surrender in accordance with

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said notice of the certificate(s) representing shares of Series D
Preferred Stock so redeemed (properly endorsed or assigned for transfer, if the
Board of Directors of the Corporation, or a duly authorized committee thereof,
shall so require and the notice shall so state), such shares shall be redeemed
by the Corporation at the redemption price aforesaid. Any shares of Series D
Preferred Stock that shall at any time have been redeemed shall, after such
redemption, be cancelled and not reissued. In case fewer than all the shares
represented by any such certificate are redeemed, a new certificate shall be
issued representing the unredeemed shares without cost to the Holder thereof.

     (d)   The Series D Preferred Stock will not be subject to any mandatory
redemption, sinking fund or other similar provisions. In addition, Holders of
Series D Preferred Stock will have no right to require redemption of any shares
of Series D Preferred Stock.

	4.	 	Liquidation Rights.

     (a)   Upon any voluntary or involuntary dissolution, liquidation or winding
up of the Corporation, after payment or provision for the liabilities of the
Corporation and the expenses of such dissolution, liquidation or winding up,
the Holders of outstanding shares of the Series D Preferred Stock will be
entitled to receive out of the assets of the Corporation or proceeds thereof
available for distribution to stockholders, before any payment or distribution
of assets is made to holders of the Corporation’s common stock (or any other
stock of the Corporation ranking, as to the distribution of assets upon
dissolution, liquidation or winding up of the Corporation, junior to the Series
D Preferred Stock), the amount of $50.00 per share plus an amount equal to the
dividend (whether or not declared) for the then-current quarterly dividend
period accrued to but excluding the date of such liquidation payment, but
without accumulation of unpaid dividends on the Series D Preferred Stock for
prior dividend periods.

     (b)   If the assets of the Corporation available for distribution in such
event are insufficient to pay in full the aggregate amount payable to Holders
of Series D Preferred Stock and holders of all other classes or series of stock
of the Corporation, if any, ranking, as to the distribution of assets upon
dissolution, liquidation or winding up of the Corporation, on a parity with the
Series D Preferred Stock, the assets will be distributed to the Holders of
Series D Preferred Stock and holders of all such other stock pro rata, based on
the full respective preferential amounts to which they are entitled, but
without accumulation of unpaid dividends on the Series D Preferred Stock for
prior dividend periods.

     (c)   Notwithstanding the foregoing, Holders of Series D Preferred Stock
will not be entitled to be paid any amount in respect of a dissolution,
liquidation or winding up of the Corporation until holders of any classes or
series of stock of the Corporation ranking, as to the distribution of assets
upon dissolution, liquidation or winding up of the Corporation, prior to the
Series D Preferred Stock have been paid all amounts to which such classes or
series are entitled.

     (d)   Neither the sale, lease or exchange (for cash, shares of stock,
securities or other consideration) of all or substantially all of the property
and assets of the Corporation, nor the merger, consolidation or combination of
the Corporation into or with any other corporation or the merger, consolidation
or combination of any other corporation into or with the Corporation, shall be
deemed to be a dissolution, liquidation or winding up, voluntary or
involuntary, for the purposes of this Section 4.

     (e)   After payment of the full amount of the distribution of assets upon
dissolution, liquidation or winding up of the Corporation to which they are
entitled pursuant to paragraphs (a), (b) and (c) of this Section 4, the Holders
of Series D Preferred Stock will not be entitled to any further participation
in any distribution of assets by the Corporation.

	5.	 	No Conversion or Exchange Rights.

     The Holders of shares of Series D Preferred Stock will not have any rights
to convert such shares into or exchange such shares for shares of any other
class or classes, or of any other series of any class or classes, of stock or
obligations of the Corporation.

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	6.	 	No Pre-emptive Rights.

     No Holder of Series D Preferred Stock shall be entitled as a matter of
right to subscribe for or purchase, or have any pre-emptive right with respect
to, any part of any new or additional issue of stock of any class whatsoever,
or of securities convertible into any stock of any class whatsoever, whether
now or hereafter authorized and whether issued for cash or other consideration
or by way of dividend.

	7.	 	Voting Rights; Amendments.

     (a)   Except as provided below, the Holders of Series D Preferred Stock
will not be entitled to any voting rights, either general or special.

     (b)   Without the consent of the Holders of Series D Preferred Stock, the
Corporation will have the right to amend, alter, supplement or repeal any terms
of the Series D Preferred Stock (i) to cure any ambiguity, or to cure, correct
or supplement any defective provision contained in this Certificate of
Designation or (ii) to make any other provision with respect to matters or
questions arising with respect to the Series D Preferred Stock that is not
inconsistent with the provisions of this Certificate of Designation so long as
such action does not materially and adversely affect the interests of the
Holders of Series D Preferred Stock; provided, however, that any increase in
the amount of authorized or issued Series D Preferred Stock or the creation and
issuance, or an increase in the authorized or issued amount, of any other class
or series of stock of the Corporation, whether ranking prior to, on a parity
with or junior to the Series D Preferred Stock, as to the payment of dividends
or the distribution of assets upon dissolution, liquidation or winding up of
the Corporation, or otherwise, will not be deemed to materially and adversely
affect the interests of the Holders of Series D Preferred Stock.

     (c)   Except as set forth in paragraph (b) of this Section 7, the terms of
the Series D Preferred Stock may be amended, altered, supplemented or repealed
only with the consent of the Holders of at least two-thirds of the shares of
Series D Preferred Stock then outstanding, given in person or by proxy, either
in writing or at a meeting of stockholders at which the Holders of Series D
Preferred Stock shall vote separately as a class. On matters requiring their
consent, Holders of Series D Preferred Stock will be entitled to one vote per
share.

     (d)   The rules and procedures for calling and conducting any meeting of
Holders (including, without limitation, the fixing of a record date in
connection therewith), the solicitation and use of proxies at such a meeting,
the obtaining of written consents, and any other aspect or matter with regard
to such a meeting or such consents shall be governed by any rules that the
Board of Directors of the Corporation, or a duly authorized committee thereof,
in its discretion, may adopt from time to time, which rules and procedures
shall conform to the requirements of any national securities exchange on which
the shares of the Series D Preferred Stock are listed at the time.

	8.	 	Additional Classes or Series of Stock.

     The Board of Directors of the Corporation, or a duly authorized committee
thereof, shall have the right at any time in the future to authorize, create
and issue, by resolution or resolutions, one or more additional classes or
series of stock of the Corporation, and to determine and fix the distinguishing
characteristics and the relative rights, preferences, privileges and other
terms of the shares thereof. Any such class or series of stock may rank prior
to, on a parity with or junior to the Series D Preferred Stock as to the
payment of dividends or the distribution of assets upon dissolution,
liquidation or winding up of the Corporation, or otherwise.

	9.	 	Priority.

     For purposes of this Certificate of Designation, any stock of any class or
series of the Corporation shall be deemed to rank:

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     (a)   Prior to the shares of Series D Preferred Stock, either as to the
payment of dividends or the distribution of assets upon dissolution,
liquidation or winding up of the Corporation, if the holders of such class or
series shall be entitled to the receipt of dividends or of amounts
distributable upon dissolution, liquidation or winding up of the Corporation,
as the case may be, in preference or priority to the Holders of shares of
Series D Preferred Stock.

     (b)   On a parity with shares of Series D Preferred Stock, either as to the
payment of dividends or the distribution of assets upon dissolution,
liquidation or winding up of the Corporation, whether or not the dividend rates
or amounts, dividend payment dates or redemption or liquidation prices per
share, if any, be different from those of the Series D Preferred Stock, if the
holders of such class or series shall be entitled to the receipt of dividends
or of amounts distributable upon dissolution, liquidation or winding up of the
Corporation, as the case may be, in proportion to their respective dividend
rates or amounts or liquidation prices, without preference or priority, one
over the other, as between the holders of such class or series and the Holders
of shares of Series D Preferred Stock.

     (c)   Junior to shares of Series D Preferred Stock, either as to the
payment of dividends or the distribution of assets upon dissolution,
liquidation or winding up of the Corporation, if such class shall be common
stock of the Corporation or if the Holders of shares of Series D Preferred
Stock shall be entitled to the receipt of dividends or of amounts distributable
upon dissolution, liquidation or winding up of the Corporation, as the case may
be, in preference or priority over the holders of such class or series.

     (d)   The shares of Preferred Stock of the Corporation designated “6.41%
Non-Cumulative Preferred Stock, Series A” (the “Series A Preferred Stock”),
“6.50% Non-Cumulative Preferred Stock, Series B” (the “Series B Preferred
Stock”) and “6.45% Non-Cumulative Preferred Stock, Series C” (“the Series C
Preferred Stock”) shall be deemed to rank on a parity with shares of Series D
Preferred Stock as to the payment of dividends and the distribution of assets
upon dissolution, liquidation or winding up of the Corporation. Accordingly,
the holders of record of Series A Preferred Stock, the holders of record of
Series B Preferred Stock, the holders of record of Series C Preferred Stock and
the Holders of Series D Preferred Stock shall be entitled to the receipt of
dividends and of amounts distributable upon dissolution, liquidation or winding
up of the Corporation, as the case may be, in proportion to their respective
dividend rates or amounts or liquidation prices, without preference or
priority, one over the other.

	10.	 	Transfer Agent, Dividend Disbursing Agent and Registrar.

     The Corporation hereby appoints First Chicago Trust Company of New York as
its initial transfer agent, dividend disbursing agent and registrar for the
Series D Preferred Stock. The Corporation may at any time designate an
additional or substitute transfer agent, dividend disbursing agent and
registrar for the Series D Preferred Stock.

	11.	 	Notices.

     Any notice provided or permitted by this Certificate of Designation to be
made upon, or given or furnished to, the Holders of Series D Preferred Stock by
the Corporation shall be made by first-class mail, postage prepaid, to the
addresses of such Holders as they appear on the books and records of the
Corporation. Such notice shall be deemed to have been sufficiently made upon
deposit thereof in the United States mail. Notwithstanding anything to the
contrary contained herein, in the case of the suspension of regular mail
service or by reason of any other cause it shall be impracticable, in the
Corporation’s judgment, to give notice by mail, then such notification may be
made, in the Corporation’s discretion, by publication in a newspaper of general
circulation in The City of New York or by hand delivery to the addresses of
Holders as they appear on the books and records of the Corporation.

     RECEIPT AND ACCEPTANCE OF A SHARE OR SHARES OF THE SERIES D PREFERRED
STOCK BY OR ON BEHALF OF A HOLDER SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE
BY SUCH HOLDER (AND ALL OTHERS HAVING BENEFICIAL OWNERSHIP OF SUCH SHARE OR
SHARES) OF ALL OF THE TERMS AND PROVISIONS OF THIS CERTIFICATE OF DESIGNATION.
NO SIGNATURE OR OTHER FURTHER MANIFESTATION OF ASSENT TO

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THE TERMS AND PROVISIONS OF THIS CERTIFICATE OF DESIGNATION SHALL BE
NECESSARY FOR ITS OPERATION OR EFFECT AS BETWEEN THE CORPORATION AND THE HOLDER
(AND ALL SUCH OTHERS).

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