Document:

exv10w3

Exhibit
10.3

EXECUTIVE
COPY

AMENDMENT AGREEMENT NO. 2

     AMENDMENT AGREEMENT NO. 2, dated as of April 22, 2008 (this “Agreement”),
among LEAF III A SPE, LLC, a Delaware limited liability company (“Borrower”), LEAF
FINANCIAL CORPORATION, a Delaware corporation (“LEAF Financial”), as servicer (in such
capacity, together with its successors and assigns, the “Servicer”), LEAF FUNDING, INC., a
Delaware corporation (“LEAF Funding”), LEAF EQUIPMENT LEASING INCOME FUND III, L.P., a
Delaware limited partnership (“LEAF III”), the Required Lenders and MERRILL LYNCH BANK USA,
a Utah industrial bank (“MLBUSA”), as administrative agent (together with its permitted
successors in such capacity, the “Administrative Agent”).

WITNESSETH:

     WHEREAS, capitalized terms used herein shall have the meanings ascribed thereto in the
Definitions and Rules of Construction attached as Appendix A to the Purchase and Sale Agreement,
dated as of July 2, 2007, between LEAF Funding and LEAF III, as amended, supplemented or otherwise
modified as of the date hereof;

     WHEREAS, the parties hereto intend to amend the Definitions and Rules of Construction attached
to the Purchase and Sale Agreement as Appendix A (the “Definitions”) on the terms and subject to
the satisfaction of the conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
contained herein, the parties hereto hereby agree as follows:

     SECTION 1. Amendment.

     (a) As of the Effective Date, certain of the Definitions are hereby amended as follows:

     (i) The definition of “Advance Rate” is hereby amended in its entirety to read
as follows:

“Advance Rate” means, as of any date of determination, (a) if the aggregate amount
of the Contract Values of all Purchased Contracts as of such date is less than
$50,000,000, a percentage equal to the lowest of the following: (i) 90%; (ii) a
percentage equal to (x) 100%, less (y) an amount (expressed as a percentage) equal
to (A) $2,000,000, divided by (B) the aggregate amount of the Net Contract Values of
all Purchased Contracts as of such date; and (iii) a percentage equal to (x) 100%,
less (y) an amount (expressed as a percentage) equal to (A) the aggregate amount of
the Contract Values of all Purchased Contracts as of such date of the three (3)
largest Obligors, divided by (B) the aggregate amount of the Net Contract Values of
all Purchased Contracts as of such date; and (b) if the aggregate amount of the
Contract Values of all Purchased Contracts as of such date is greater than or equal
to $50,000,000, 90%.

 

 

-2-

     (ii) The definition of “Contract Value” is hereby amended in its entirety to
read as follows:

“Contract Value” means (i) with respect to any Contract that is 61 days or less
delinquent, as of any date of determination, the present value of the remaining
scheduled payments of such Contract, excluding any residual payment, discounted at
the Discount Rate and (ii) with respect to any Contract that is more than 61 days
delinquent, as of any date of determination, an amount equal to zero; provided,
however, that any Contract that is more than 61 days delinquent and which
subsequently is no longer delinquent without first having (x) the related obligor be
subject to an Insolvency Event, (y) been charged off by the Servicer in accordance
with the Policy and Procedures, or (z) become 121 or more days delinquent, and is
still a Contract comprising part of the Collateral, shall have a Contract Value as
provided in clause (i) hereof.

     (iii) The definition of “Funded Rate” is hereby amended in its entirety to read
as follows:

“Funded Rate” means as of any date of determination, a rate equal to the sum of the
(a) Hedged Swap Rate as of such date and (b) the Alternate Fee Rate.

     (iv) Clause (m) of the definition of “Servicer Default” is hereby amended in
its entirety to read as follows:

(m) Either (x) as of the last day of each fiscal quarter beginning with the fiscal
quarter ending September 30, 2007, LEAF III shall have failed to maintain minimum
“partners capital” (as reflected in its financial statements, but excluding any
mark-to-market gain or loss on any swap or other hedge transaction, “Partners
Capital”) of no less than 75.00% of Partners Capital reported on the corresponding
financial statements as of the immediately preceding calendar quarter, or (y) as of
September 30, 2008 or any later calendar quarter, LEAF III shall have failed to
maintain minimum Partners Capital of no less than 75.00% of Partners Capital as
reported in its June 30, 2008 financial statements; or

     (v) Clause (n) of the definition of “Servicer Default” is hereby amended in its
entirety to read as follows:

(n) LEAF III, together with Borrower, shall have as of the last day of each fiscal
quarter thereof a ratio of Debt (as reflected in its financial statements, excluding
any applicable cash then on deposit in the Master DDA) as of such date to Partners
Capital as of such date (in each case determined on a consolidated basis in
accordance with GAAP) in excess of 8.5 to 1.0. For further clarification, when
calculating this ratio, the Borrower and LEAF III shall also include other entities
sponsored by LEAF III or the Borrower which are not required to be consolidated
under GAAP.

 

 

-3-

     (vi) The definition of “Static Pool Loss Ratio” is hereby amended in its
entirety to read as follows:

“Static Pool Loss Ratio” means, with respect to a Quarterly Origination Period, as
of any date of determination, an amount, expressed as a percentage, equal to (i) the
Cumulative Losses with respect to Contracts originated during such Quarterly
Origination Period divided by (ii) the original Contract Value of Contracts
originated during such Quarterly Origination Period, in each case, regardless of
whether such Contract still comprises part of the Collateral.

     SECTION 2. Conditions Precedent to the Effectiveness of this Agreement. This
Agreement shall become effective as of the date hereof (the “Effective Date”) provided that
each of the following conditions precedent shall have been satisfied, or waived by the Required
Lenders, on or before such date:

     (a) The Required Lenders shall have received this Agreement, executed and delivered by a duly
Authorized Officer of each party hereto.

     (b) As of the date hereof, the representations and warranties made herein by LEAF Funding,
LEAF Financial, LEAF III and Borrower shall be true and correct in all material respects on and as
of such date as if made on and as of such date (except to the extent such representation or
warranty expressly relates to an earlier date, in which case such representation or warranty shall
be true and correct in all material respects as of such earlier date).

     (c) No Potential Termination Event or Termination Event shall have occurred and be continuing
or shall occur as a result of this Agreement.

     SECTION 3. Representations and Warranties. To induce the Required Lenders to enter
into this Agreement, each of LEAF Funding, LEAF Financial, LEAF III and Borrower hereby represent
and warrant to the Required Lenders as follows:

     (a) Its execution, delivery and performance of this Agreement have been duly and validly
authorized by all necessary action on the part of it.

     (b) No Potential Termination Event or Termination Event has occurred and is continuing or
shall occur as a result of this Agreement.

     SECTION 4. Reference to and Effect on the Transaction Documents. As of the Effective
Date, any reference in any Transaction Document to the Definitions and Rules of Construction
attached to the Purchase and Sale Agreement as Appendix A shall be to such Definitions and Rules of
Construction as amended hereby.

     SECTION 5. Counterparts. This Agreement may be executed by one or more of the parties
to this Agreement on any number of separate counterparts (including by facsimile transmission of
signature pages hereto), and all of said counterparts taken together shall be deemed to constitute
one and the same instrument.

 

 

-4-

     SECTION 6. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     SECTION 7. GOVERNING LAW AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL
BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

[remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	LEAF III A SPE, LLC, as Borrower

 	 
	 	By:  	/s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President, COO 	 
	 
	 	LEAF FINANCIAL CORPORATION, as Servicer

 	 
	 	By:  	/s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President, COO 	 
	 
	 	LEAF FUNDING, INC.

 	 
	 	By:  	/s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President, COO 	 
	 
	 	LEAF EQUIPMENT LEASING INCOME FUND III, L.P.

 	 
	 	By:  	LEAF Asset Management, LLC, its General Partner
 	 
	 
	 	 	 
	 	By:  	                                                  /s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President, COO 	 

 

 

	 	 	 	 	 
	 	ZANE FUNDING, LLC, as a CP Rate
Lender
     and as Required Lender

 	 
	 	By:  	/s/ John M. DeMilt
 	 
	 	 	Name:  	John M. DeMilt 	 
	 	 	Title:  	Vice President 	 
	 
	 	MERRILL LYNCH BANK USA, as the
     Administrative Agent

 	 
	 	By:  	/s/ Aeneas P. Griffin
 	 
	 	 	Name:  	Aeneas P. Griffin 	 
	 	 	Title:  	Directorexv10w4

Exhibit 10.4

AMENDMENT No. 4 TO SECURED LOAN AGREEMENT

     AMENDMENT TO SECURED LOAN AGREEMENT (this “Amendment”) dated as of June 1, 2008 among WESTLB
AG, NEW YORK BRANCH (the “Lender”), U.S. BANK NATIONAL ASSOCIATION, a national banking
association (the “Collateral Agent” and “Securities Intermediary”), LEAF EQUIPMENT
LEASING INCOME FUND III, L.P., a Delaware limited partnership (“LEAF” or the
“Seller”), LEAF FINANCIAL CORPORATION, a Delaware corporation (the “Servicer”),
LEAF FUNDING INC., a Delaware corporation (the “Originator”) and LEAF FUND III, LLC, a
Delaware limited liability company (the “Borrower”).

W I T N E S S E T H:

     WHEREAS, the parties hereto are parties to the Secured Loan Agreement, dated as of June 19,
2007 (as modified, amended or supplemented from time to time, the “Secured Loan
Agreement”);

     WHEREAS, pursuant to Section 14.04 of the Secured Loan Agreement, the parties hereto wish to
amend the Secured Loan Agreement and hereby agree that the Secured Loan Agreement is hereby
amended; and

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

     SECTION 1. Definitions. 

     (a) Whenever used in this Amendment, capitalized terms used and not otherwise defined
herein shall have the meanings set forth in Appendix A to the Secured Loan Agreement.

     (b) Any term that relates to a document or a statute, rule, or regulation includes any
amendments, modifications, supplements, or any other changes that may have occurred since
the document, statute, rule, or regulation came into being, including changes that occur
after the date of this Amendment.

     SECTION 2. Amendments. 

     (a) The definition of Senior Leverage Ratio in Appendix A shall be struck in its
entirety and replaced with:

          “Senior Leverage Ratio” means, with respect to LEAF, the result obtained by
dividing LEAF’s Combined Recourse Debt by LEAF’s Adjusted Partner’s Capital. For such
determination, “Combined Recourse Debt” means all of LEAF’s debts and liabilities, but
excluding third party accounts payable, accrued expenses, non-recourse debt, SFAS 133/138
adjustments (if any), and intercompany obligations less applicable cash then on the
deposit in the “Lockbox Account”, and “Adjusted Partner’s Capital” means partner’s capital
(in accordance with GAAP with no adjustment for other

 

 

comprehensive income accounted for pursuant to SFAS 133/138) plus “Due to General
Partner” plus subordinated debt, if any. For such determination (including Section
7.02(jj)), “Due to General Partner” means amounts, as set forth in the financial statements
of LEAF, that are due to LEAF Financial Corporation and its affiliates, as general partner
of LEAF, for management fees and expenses due for servicing the Securitized Portfolio in
addition to amounts LEAF Financial Corporation has paid for property taxes due on the
Securitized Portfolio that have been billed to Customers.

     SECTION 3. Effective Date. The effective date of this Amendment shall be the date
hereof.

     SECTION 4. Representations and Warranties.

     Borrower, LEAF and Servicer each hereby severally certifies as to itself that its respective
representations and warranties set forth in Article VI of the Secured Loan Agreement (and any other
representations and warranties made by Borrower, LEAF or Servicer in the Secured Loan Agreement)
are true and correct on the date hereof with the same force and effect as if made on the date
hereof, except to the extent such representations and warranties speak specifically to an earlier
date in which case they shall have been true and correct on such date. In addition, Borrower, LEAF
and Servicer each severally represents and warrants (which representations and warranties shall
survive the execution and delivery hereof) that (a) no unwaived Facility Termination Event or Event
of Default (nor any event that but for notice or lapse of time or both would constitute an unwaived
Facility Termination Event or Event of Default) shall have occurred and be continuing as of the
date hereof nor shall any unwaived Facility Termination Event or Event of Default (nor any event
that but for notice or lapse of time or both would constitute an unwaived Facility Termination
Event or Event of Default) occur due to this Amendment becoming effective, (b) Borrower, LEAF and
Servicer each has the power and authority to execute and deliver this Amendment and has taken or
caused to be taken all necessary actions to authorize the execution and delivery of this Amendment,
(c) no consent of any other person (including, without limitation, members or creditors of
Borrower, LEAF or Servicer), and no action of, or filing with any governmental or public body or
authority is required to authorize, or is otherwise required in connection with the execution and
performance of this Amendment, other than such that have been obtained, (d) the Secured Loan
Agreement, as amended by this Amendment, constitutes the legal, valid and binding obligation of
Servicer, LEAF and the Borrower, enforceable against them in accordance with its terms except as
the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization and
other similar laws of general application affecting creditors’ rights generally and by general
principles of equity (whether such enforceability is considered in a proceeding in equity or law),
and (e) the execution, delivery and performance of this Amendment will not violate any provision of
any existing law or regulation or any order or decree of any court, regulatory body or
administrative agency or the certificate of formation or the limited liability company agreement of
Servicer, LEAF or Borrower or any material indenture, agreement, mortgage, deed of trust or other
instrument to which Servicer, LEAF or the Borrower is a party or by which it is bound.

     SECTION 5. Ratification. Upon execution of this Amendment, the Secured Loan Agreement
shall be amended in accordance herewith, and the respective rights, limitations,

2

 

obligations, duties, liabilities and immunities of the parties shall hereafter be determined,
exercised and enforced subject in all respects to such amendments, and the terms of this Amendment
shall be a part of the Secured Loan Agreement for any and all purposes. Except as modified and
expressly amended by this Amendment, the Amendment is in all respects ratified and confirmed, and
all the terms, provisions and conditions thereof shall be and remain in full force and effect.

     SECTION 6. GOVERNING LAW. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE INTERNAL LAWS OF THE STATE
OF NEW YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAW PRINCIPLES THEREOF.

     SECTION 7. Counterparts. For the purpose of facilitating the execution of this
Amendment and for other purposes, this Amendment may be executed simultaneously in any number of
counterparts, each of which shall be deemed to be an original and together shall constitute and be
one and the same instrument.

     SECTION 8. Severability of Provisions. If any one or more of the provisions or terms
of this Amendment shall be for any reason whatsoever held invalid, then such provisions or terms
shall be deemed severable from the remaining provisions or terms of this Amendment and shall in no
way affect the validity or enforceability of the other provisions or terms of this Amendment.

     SECTION 9. Amendment. This Amendment may be amended or modified from time to time by
the parties hereto, but only by an instrument in writing signed by each of the parties hereto.

     SECTION 10. Headings. The Section headings are not part of this Amendment and shall
not be used in its interpretation.

[REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK]

3

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year
first above written.

	 	 	 	 	 
	 	LEAF FUND III, LLC,

     as Borrower

 	 
	 	By:  	/s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	Vice President 	 
	 
	 	LEAF EQUIPMENT LEASING INCOME FUND 

III, L.P., as Seller

 	 
	 	By:  	LEAF ASSET MANAGEMENT LLC,
as General Partner
 	 
	 	 	 
	 	By:  	                                                  /s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President, COO 	 
	 
	 	LEAF FINANCIAL CORPORATION, as Servicer

 	 
	 	By:  	/s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	President, COO 	 
	 
	 	LEAF FUNDING INC., as Originator

 	 
	 	By:  	/s/ Miles Herman
 	 
	 	 	Name:  	Miles Herman 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as 

Collateral Agent and Securities Intermediary

 	 
	 	By:  	/s/ Diane L. Reynolds
 	 
	 	 	Name:  	Diane L. Reynolds 	 
	 	 	Title:  	Vice President 	 
	 
	 	WESTLB AG, NEW YORK BRANCH, as Lender

 	 
	 	By:  	/s/ Matthew F. Tallo
 	 
	 	 	Name:  	Matthew F. Tallo 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	                                               /s/ Vesselina Koleva
 	 
	 	 	Name:  	Vesselina Koleva 	 
	 	 	Title:  	Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]