Document:

exv10w7

Exhibit 10.7

 

 

FOURTH AMENDMENT

TO

CREDIT AGREEMENT

Dated as of August 6, 2008

among

ENCORE WIRE CORPORATION,

as the Borrower

BANK OF AMERICA, N.A.,

as Administrative Agent and a Lender,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Syndication Agent and a Lender

and

The Other Lenders Party Thereto

 

 

BANK OF AMERICA, N.A.,

as Sole Lead Arranger and Sole Book Manager

 

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

     THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Fourth Amendment”), dated as of
August 6, 2008, is entered into among ENCORE WIRE CORPORATION, a Delaware corporation (the
“Borrower”), BANK OF AMERICA, N.A. (“Bank of America”) and WELLS FARGO BANK,
NATIONAL ASSOCIATION (“Wells Fargo”), in their individual capacities as “Lenders”
(as such term is defined herein), and BANK OF AMERICA, N.A., as Administrative Agent.

BACKGROUND

     A. The Borrower, the Lenders and the Administrative Agent are parties to that certain Credit
Agreement, dated as of August 27, 2004, as amended by that certain First Amendment to Credit
Agreement, dated as of May 16, 2006, that certain Second Amendment to Credit Agreement, dated as of
August 31, 2006, and that certain Third Amendment to Credit Agreement, dated as of June 29, 2007
(said Credit Agreement, as amended, the “Credit Agreement”). The terms defined in the
Credit Agreement and not otherwise defined herein shall be used herein as defined in the Credit
Agreement.

     B. The Borrower has requested certain amendments to the Credit Agreement.

     C. The Lenders and the Administrative Agent hereby agree to amend the Credit Agreement,
subject to the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set
forth, and for other good and valuable consideration, the receipt and adequacy of which are all
hereby acknowledged, the Borrower, the Lenders and the Administrative Agent covenant and agree as
follows:

     1. AMENDMENTS.

     (a) The definition of “Aggregate Commitments” set forth at 1.6 of the Credit Agreement
is hereby amended to read as follows:

     “Aggregate Commitments” means the Commitments of all the Lenders. As of the
Fourth Amendment Effective Date, the Aggregate Commitments are $150,000,000.

     (b) The definition of “Accordion Amount” set forth in Article I of the Credit
Agreement is hereby amended to read as follows:

     “Accordion Amount” means $50,000,000.

     (c) The definition of “Applicable Margin” set forth at 1.8 of the Credit Agreement is
hereby amended to read as follows:

     “Applicable Margin” means the following percentages per annum, based upon the
Leverage Ratio:

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	APPLICABLE	 	APPLICABLE	 	 
	 	 	 	 	 	 	MARGIN FOR	 	MARGIN FOR	 	 
	 	 	 	 	 	 	BASE RATE	 	EURODOLLAR	 	COMMITMENT
	LEVEL	 	LEVERAGE RATIO	 	LOANS	 	RATE LOANS	 	FEE
	 	1	 	 	Less than or equal to 1.50 to 1.00
	 	 	0	%	 	 	1.000	%	 	 	0.200	%
	 	2	 	 	Greater than 1.50 to 1.00 and less than or
equal to 2.25 to 1.00
	 	 	0	%	 	 	1.250	%	 	 	0.250	%
	 	3	 	 	Greater than 2.25 to 1.00 and less than or
equal to 3.00 to 1.00
	 	 	0	%	 	 	1.500	%	 	 	0.250	%
	 	4	 	 	Greater than 3.00 to 1.00
	 	 	0.250	%	 	 	1.750	%	 	 	0.375	%

     The Applicable Margin shall be measured and determined according to the quarterly
consolidated financial statements delivered to Agent under paragraph 7.6. Any adjustment in
the Applicable Margin after the Effective Date shall be deemed effective as of the date the
financial statements referred to in the immediately preceding sentence are due. The
Applicable Margin in effect from the Fourth Amendment Effective Date until the first day
following the receipt by the Agent of the quarterly consolidated financial statements
referred to above for the quarter ending June 30, 2008 shall be determined based upon
Pricing Level 1.

     If, as a result of a restatement of or other adjustments to the financial statements to
Agent under paragraph 7.6, Agent determines that (a) the Leverage Ratio as calculated by
Borrower as of any applicable date was inaccurate and (b) a proper calculation of the
Leverage Ratio would have resulted in different pricing for any period, then (i) if the
proper calculation of the Leverage Ratio would have resulted in a higher pricing for such
period, Borrower shall automatically and retroactively be obligated to pay to Agent (for the
account of Lenders), promptly on demand by Agent, an amount equal to the excess of the
amount of interest and fees that should have been paid for such period over the amount of
interest and fees actually paid for such period, and (ii) if the proper calculation of the
Leverage Ratio would have resulted in lower pricing for such period, Lenders shall have no
obligation to repay any interest or fees to Borrower; provided that if, as a result of any
restatement or other event a proper calculation of the Leverage Ratio would have resulted in
higher pricing for one or more periods and lower pricing for one or more periods (due to the
shifting of income or expenses from one period to another period or any similar reason),
then the amount payable by Borrower pursuant to clause (i) above shall be based upon the
excess, if any, of the total amount of interest and fees that should have been paid for all
applicable periods over the total amount of interest and fees actually paid for all such
periods. This paragraph shall not limit the rights of Lenders under paragraph 3.1.1(c) or
other provisions of this

 

 

Agreement. The obligation of Borrower under this paragraph shall survive termination
of the Commitments and repayment of all other Obligations hereunder.

     (d) The definition of “Contract Term” set forth at 1.29 of the Credit Agreement is
hereby amended to read as follows:

     “Contract Term” means the period beginning on the Effective Date and continuing
through August 6, 2013.

     (e) Article I of the Credit Agreement is hereby amended by adding the defined term “Fourth
Amendment Effective Date” thereto in proper alphabetical order to read as follows:

     “Fourth Amendment Effective Date” means August 6, 2008.

     (f) Paragraph 7.21(a) of the Credit Agreement is hereby amended to read as follows:

     (a) Borrower agrees that the following financial covenants must be maintained as set
forth herein. Borrower’s compliance shall be measured as of the end of each Fiscal Quarter,
unless the context provides otherwise.

	 	1.	 	Fixed Charge Ratio. Fixed Charge Ratio shall not at
any time be less than 2.00 to 1.00.
	 
	 	2.	 	Leverage Ratio. Leverage Ratio shall not at any time
be more than 3.50 to 1.00.
	 
	 	3.	 	Leverage Ratio. Leverage Ratio for more than two
consecutive Fiscal Quarters shall not exceed 3.00 to 1.00.
	 
	 	4.	 	Capital Expenditures. Capital Expenditures shall not
exceed $30,000,000 during any fiscal year.

     (g) Paragraph 7.26 of the Credit Agreement is hereby amended to read as follows:

     7.26 Limitation on Indebtedness. Neither Borrower nor any Guarantor will be
obligated, directly or indirectly, for borrowed money or otherwise under any promissory
note, bond, indenture or similar instrument, other than (a) in favor of Agent and the
Lenders hereunder, (b) trade indebtedness incurred in the normal and ordinary course of
Borrower’s or such Guarantor’s business and not more than ninety (90) days past due, (c)(i)
indebtedness of Borrower or any Guarantor under capitalized leases and (ii) purchase money
indebtedness in connection with the purchase of equipment, provided that the aggregate
outstanding amount of indebtedness in respect of such capitalized leases and purchase money
indebtedness does not exceed $15,000,000 at any time, (d) the Private Placement Debt, so
long as there is no Default or Event of Default immediately before and, on a pro forma
basis, after incurrence of such indebtedness, (f) obligations (contingent or otherwise) of
the Borrower or any Subsidiary existing or arising under any Swap Contract with any Lender
or any Affiliate of any Lender, provided that (i) such obligations are (or were)
entered into by such Person in the ordinary course of business for the purpose of directly
mitigating risks associated with liabilities,

 

 

commitments, investments, assets, or property held or reasonably anticipated by such
Person, or changes in the value of securities issued by such Person, and not for purposes of
speculation or taking a “market view;” and (ii) such Swap Contract does not contain any
provision exonerating the non-defaulting party from its obligation to make payments on
outstanding transactions to the defaulting party, and (g) unsecured indebtedness not
otherwise permitted pursuant to clauses (a) through (f) above, not to exceed $5,000,000 in
aggregate principal amount at any time outstanding;

     (h) Paragraph 7.30 of the Credit Agreement is hereby amended to read as follows:

     7.30 Dividends, Distributions, Redemptions. Borrower will not (i) declare, pay
or issue any dividends or other distributions in respect of its equity interests, (ii)
distribute, reserve, secure or otherwise commit distributions in respect of its equity
interests or (iii) make any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination in respect of its equity interests;
provided, however, that if no Default or Event of Default exists or will result therefrom
and there is compliance with the financial covenants in Paragraph 7.21(a) on a pro forma
basis after giving effect thereto, Borrower may (x) repurchase shares of Borrower to be held
as treasury shares for an aggregate amount during any fiscal year not to exceed $15,000,000
and (y) pay dividends to its shareholders.

     2. REPRESENTATIONS AND WARRANTIES TRUE; NO EVENT OF DEFAULT. By its execution and
delivery hereof, the Borrower represents and warrants that, as of the date hereof and after giving
effect to this Fourth Amendment:

     (a) the representations and warranties contained in the Credit Agreement and the other Loan
Documents are true and correct on and as of the date hereof as made on and as of such date, except
to the extent that such representations and warranties specifically refer to an earlier date, in
which case they shall be true and correct as of such earlier date, and except to the extent such
representations and warranties have been supplemented pursuant to paragraph 7.12 of the Credit
Agreement;

     (b) no event has occurred and is continuing which constitutes a Default or an Event of
Default;

     (c) (i) the Borrower has full power and authority to execute and deliver this Fourth
Amendment, (ii) this Fourth Amendment has been duly executed and delivered by the Borrower, and
(iii) this Fourth Amendment and the Credit Agreement, as amended hereby, constitute the legal,
valid and binding obligations of the Borrower, enforceable in accordance with their respective
terms, except as enforceability may be limited by applicable Debtor Relief Laws and by general
principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at
law) and except as rights to indemnity may be limited by federal or state securities laws;

     (d) neither the execution, delivery and performance of this Fourth Amendment or the Credit
Agreement, as amended hereby, nor the consummation of any transactions contemplated herein or
therein, will conflict with (i) the certificate or articles of incorporation or the applicable
constituent documents or bylaws of the Borrower or the Guarantor, (ii) any Law

 

 

applicable to the Borrower or the Guarantor or (iii) any indenture, agreement or other
instrument to which the Borrower, the Guarantor or any of their respective properties are subject;
and

     (e) no authorization, approval, consent, or other action by, notice to, or filing with, any
Governmental Authority or other Person not previously obtained is required for (i) the execution,
delivery or performance by the Borrower of this Fourth Amendment or (ii) the acknowledgement by the
Guarantor of this Fourth Amendment.

     3. CONDITIONS TO EFFECTIVENESS. This Fourth Amendment shall be effective immediately
upon satisfaction or completion of the following:

     (a) the Administrative Agent shall have received counterparts of this Fourth Amendment
executed by each Lender;

     (b) the Administrative Agent shall have received counterparts of this Fourth Amendment
executed by the Borrower and acknowledged by the Guarantor;

     (c) the Administrative Agent shall have received a certified resolution of the Board of
Directors of the Borrower authorizing the execution, delivery and performance of this Fourth
Amendment;

     (d) the Administrative Agent shall have received an opinion of the Borrower’s counsel, in form
and substance satisfactory to the Administrative Agent and its counsel, with respect to the matters
set forth in clauses (c), (d) and (e) of Section 2 of this Fourth Amendment and with
respect to such other matters as the Administrative Agent and its counsel shall reasonably request;

     (e) the Administrative Agent shall have received in immediately available funds for the
account of each Lender a fee in an amount equal to the product of (A) $125,000.00 and (B) the
amount of such Lender’s Commitment, as reduced by this Fourth Amendment, divided by the Aggregate
Commitments; and

     (f) the Administrative Agent shall have received, in form and substance satisfactory to the
Administrative Agent and its counsel, such other documents, certificates and instruments as the
Administrative Agent shall require.

     4. REFERENCE TO THE CREDIT AGREEMENT.

     (a) Upon the effectiveness of this Fourth Amendment, each reference in the Credit Agreement to
“this Agreement”, “hereunder”, or words of like import shall mean and be a reference to the Credit
Agreement, as affected and amended hereby.

     (b) The Credit Agreement, as amended by the amendments referred to above, shall remain in full
force and effect and is hereby ratified and confirmed.

     5. COSTS, EXPENSES AND TAXES. The Borrower agrees to pay on demand all costs and
expenses of the Administrative Agent in connection with the preparation, reproduction, execution
and delivery of this Fourth Amendment and the other instruments and documents to be delivered
hereunder (including the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent with respect thereto).

 

 

     6. GUARANTOR’S ACKNOWLEDGMENT. By signing below, the Guarantor (a) acknowledges,
consents and agrees to the execution, delivery and performance by the Borrower of this Fourth
Amendment, (b) acknowledges and agrees that its obligations in respect of its Guaranty (i) are not
released, diminished, waived, modified, impaired or affected in any manner by this Fourth Amendment
or any of the provisions contemplated herein, and (ii) includes all Obligations as assumed by the
Borrower, (c) ratifies and confirms its obligations under its Guaranty, and (d) acknowledges and
agrees that it has no claims or offsets against, or defenses or counterclaims to, its Guaranty.

     7. EXECUTION IN COUNTERPARTS. This Fourth Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which when taken together shall
constitute but one and the same instrument. For purposes of this Fourth Amendment, a counterpart
hereof (or signature page thereto) signed and transmitted by any Person party hereto to the
Administrative Agent (or its counsel) by facsimile machine, telecopier or electronic mail is to be
treated as an original. The signature of such Person thereon, for purposes hereof, is to be
considered as an original signature, and the counterpart (or signature page thereto) so transmitted
is to be considered to have the same binding effect as an original signature on an original
document.

     8. GOVERNING LAW; BINDING EFFECT. This Fourth Amendment shall be governed by and
construed in accordance with the laws of the State of Texas, provided that the Administrative Agent
and each Lender shall retain all rights arising under federal law, and shall be binding upon the
parties hereto and their respective successors and assigns.

     9. HEADINGS. Section headings in this Fourth Amendment are included herein for
convenience of reference only and shall not constitute a part of this Fourth Amendment for any
other purpose.

     10. ENTIRE AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THIS FOURTH AMENDMENT, AND
THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

 

 

     IN WITNESS WHEREOF, this Fourth Amendment is executed as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	ENCORE WIRE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Frank J. Bilban
 

Frank J. Bilban
	 	 
	 

	 	Title:
	 	Vice President &

Chief Financial Officer	 	 

 

 

	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Suzanne M. Paul
 

Suzanne M. Paul
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as a Lender	 	 
	Commitment: $90,000,000
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Allison W. Connally
 

Allison W. Connally
	 	 
	 

	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a
Lender	 	 
	 
	 	 	 	 	 	 
	Commitment: $60,000,000
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas I. Sako
 

Douglas I. Sako
	 	 
	 

	 	Title:
	 	Vice President	 	 

 

 

ACKNOWLEDGED AND AGREED:

EWC AVIATION CORP.

By:     /s/ Frank J. Bilban               

Name: Frank J. Bilban

Title: Vice President & Chief Financial Officerexv10w11

Exhibit 10.11

AMENDMENT NO. 1 TO ADMINISTRATION SERVICES AGREEMENT

     This Amendment No. 1 dated June 6, 2008 is made to the Administration Services Agreement dated
as of February 27, 2007 (the “Agreement”) by and between HIGHLAND CAPITAL MANAGEMENT, L.P., a
Delaware limited partnership (“Highland”), and HIGHLAND DISTRESSED OPPORTUNITIES, INC., a Delaware
corporation (the “Company”).

     WHEREAS, Highland provides administration services to the Company pursuant to the Agreement;
and

     WHEREAS, Highland and the Company desire to amend the Agreement to set forth in more detail
the administration services that Highland has been providing and will continue to provide to the
Company; and

     WHEREAS, Section 17 of the Agreement provides that the Agreement may be changed by a written
amendment;

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained,
and intending to be legally bound hereby, the parties hereto agree as follows:

     Section 14 of the Agreement is hereby amended and restated in its entirety, effective as of
the date hereof, as follows:

     14. Description of Administration Services on a Continuous Basis. Highland will
perform the following administration services:

	 	(i)	 	Prepare monthly security transaction listings;

	 
	 	(ii)	 	Supply various normal and customary portfolio and Company statistical
data as requested on an ongoing basis;

	 
	 	(iii)	 	Prepare for execution and file the Company’s Federal and state tax
returns: prepare a fiscal tax provision in coordination with the annual audit;
prepare an excise tax provision; and prepare all relevant 1099 calculations;

	 
	 	(iv)	 	Coordinate contractual relationships and communications between the
Company and its contractual service providers;

	 
	 	(v)	 	Coordinate printing of the Company’s annual shareholder reports;

	 
	 	(vi)	 	Prepare income and capital gain distributions;

	 
	 	(vii)	 	Prepare the semiannual and annual financial statements;

	 
	 	(viii)	 	Monitor the Company’s compliance with IRC, SEC and prospectus requirements;

 

 

	 	(ix)	 	Prepare, coordinate with the Company’s counsel and coordinate the
filing with the SEC: semi-annual reports on Form N-SAR and Form N-CSR; Form N-Q;
and Form N-PX based upon information provided by the Company; assist in the
preparation of Forms 3, 4 and 5 pursuant to Section 16 of the 1934 Act and Section
30(h) of the 1940 Act for the officers and directors of the Company, such filings
to be based on information provided by those persons;

	 
	 	(x)	 	Assist in the preparation of notices of meetings of shareholders,
coordinate preparation of proxy statements, including obtaining information
required to be disclosed by applicable regulations and the engagement of proxy
solicitors on behalf of the Company;

	 
	 	(xi)	 	Assist in obtaining the fidelity bond and directors’ and
officers’/errors and omissions insurance policies for the Company in accordance
with the requirements of Rule 17g-1 and 17d-1(d)(7) under the 1940 Act, including
evaluation of insurance carriers, recommending appropriate coverage levels and
evaluating the costs thereof, as such bond and policies are approved by the
Company’s Board of Directors;

	 
	 	(xii)	 	Monitor the Company’s assets to assure adequate fidelity bond coverage
is maintained;

	 
	 	(xiii)	 	Draft agendas and resolutions for quarterly and special board meetings;

	 
	 	(xiv)	 	Coordinate the preparation, assembly and mailing of board materials;

	 
	 	(xv)	 	Attend board meetings and draft minutes thereof;

	 
	 	(xvi)	 	Maintain the Company’s corporate calendar to assure compliance with
various filing and board approval deadlines;

	 
	 	(xvii)	 	Assist the Company in the handling of SEC examinations and responses thereto;

	 
	 	(xviii)	 	If the chief executive officer or chief financial officer of the Company is
required to provide a certification as part of the Trust’s Form 10-Q or Form 10-K
filing pursuant to regulations promulgated by the SEC under Section 302 of the
Sarbanes-Oxley Act of 2002, Highland will provide (to such person or entity as
agreed between the Company and Highland) a sub-certification in support of certain
matters set forth in the aforementioned certification, such sub-certification to be
in such form and relating to such matters as agreed between the Company and
Highland from time to time. Highland shall be required to provide the
sub-certification only during the term of the Agreement and only if it receives
such cooperation as it may request to perform its investigations with respect to
the sub-certification. For clarity, the sub-certification is not itself a
certification under the Sarbanes-Oxley Act of 2002 or under any

2

 

	 	 	 	other regulatory requirement;

	 
	 	(xix)	 	Prepare and coordinate the Company’s state notice filings;

	 
	 	(xx)	 	Furnish the Company office space in the offices of Highland, or in such
other place or places as may be agreed from time to time, and all necessary office
facilities, simple business equipment, supplies, utilities and telephone service
for managing the affairs of the Company;

	 
	 	(xxi)	 	Perform clerical, bookkeeping and other administrative services not
provided by the Company’s other service providers;

	 
	 	(xxii)	 	Determine or oversee the determination and publication of the Company’s net asset
value in accordance with the Company’s policies as adopted from time to time by the
Board of Directors;

	 
	 	(xxiii)	 	Oversee the maintenance by the Company’s custodian and transfer agent and
dividend disbursing agent of certain books and records of the Company as required
under Rule 31a-1(b)(2)(iv) of the 1940 Act and maintain (or oversee maintenance by
such other persons as approved by the Board of Directors) such other books and
records required by law or for the proper operation of the Company;

	 
	 	(xxiv)	 	Determine the amounts available for distribution as dividends and distributions
to be paid by the Fund to its shareholders; calculate, analyze and prepare a
detailed income analysis and forecast future earnings for presentation to the Board
of Directors; prepare and arrange for the printing of dividend notices to
shareholders, as applicable, and provide the Company’s dividend disbursing agent
and custodian with such information as is required for such parties to effect the
payment of dividends and distributions and to implement the Company’s dividend
reinvestment plan;

	 
	 	(xxv)	 	Serve as liaison between the Company and each of its service
providers;

	 
	 	(xxvi)	 	Assist in monitoring and tracking the daily cash flows of the individual assets
of the Company, as well as security position data of portfolio investments; assist
in resolving any identified discrepancies with the appropriate third party,
including the Company’s custodian, administrative agents and other service
providers, through various means including researching available data via agent
notices, financial news and data services, and other sources.

	 
	 	(xxvii)	 	Monitor compliance with leverage tests under the Company’s credit facility, and
communicate with leverage providers and rating agencies;

	 
	 	(xxviii)	 	Coordinate negotiation and renewal of credit agreements for presentation to the
Board of Directors;

3

 

	 	(xxix)	 	Coordinate negotiations of agreements with counterparties and the Company’s
custodian for derivatives, short sale and similar transactions, as applicable;

	 
	 	(xxx)	 	Provide assistance with the settlement of trades of portfolio
securities;

	 
	 	(xxxi)	 	Coordinate and oversee the provision of legal services to the Company;

	 
	 	(xxxii)	 	Cooperate with the Company’s independent registered public accounting firm in
connection with audits and reviews of the Company’s financial statements, including
interviews and other meetings, and provide necessary information and coordinate
confirmations of bank loans and other assets for which custody is not through DTC,
as necessary;

	 
	 	(xxxiii)	 	Provide Secretary and any Assistant Secretaries, Treasurer and any Assistant
Treasurers and other officers for the Company as requested;

	 
	 	(xxxiv)	 	Develop or assist in developing guidelines and procedures to improve overall
compliance by the Company;

	 
	 	(xxxv)	 	Investigate and research customer and other complaints to determine liability,
facilitate resolution and promote equitable treatment of all parties;

	 
	 	(xxxvi)	 	Determine and monitor expense accruals for the Company;

	 
	 	(xxxvii)	 	Authorize expenditures and approve bills for payment on behalf of the Company;

	 
	 	(xxxviii)	 	Monitor the number of shares of the Company registered and assist in the
registration of additional shares, as necessary;

	 
	 	(xxxix)	 	Prepare such reports as the Board of Directors of the Company may request from
time to time;

	 
	 	(xl)	 	Administer and oversee any securities lending program of the Company;

	 
	 	(xli)	 	Be responsible for the Company’s allocable portion of the employment
costs of the Company’s executive officers and their respective staffs and other
employees of Highland who devote substantial attention to the administration of the
Company, except that the Company will be responsible for all costs relating to
maintenance of a toll-free stockholder information telephone line, including the
Company’s allocable share of routine overhead expenses of any third-party service
provider furnishing this telephone line; and

	 
	 	(xlii)	 	Perform such additional administrative duties relating to the administration of
the Company as may subsequently be agreed upon in

4

 

writing between the Company and Highland.

Except as expressly set forth above, the Agreement will remain in full force and effect.

5

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first written above.

	 	 	 	 	 
	 	HIGHLAND CAPITAL MANAGEMENT, L.P.

 	 
	 	By:  	Strand Advisors, Inc.,
 its general partner
 	 
	 	 	 
	 	By:  	                         /s/ James Dondero
 	 
	 	 	Name:  	James Dondero 	 
	 	 	Title:  	President 	 

	 	 	 	 	 
	 	HIGHLAND DISTRESSED OPPORTUNITIES, INC.

 	 
	 	By:  	/s/ James Dondero
 	 
	 	 	Name:  	James Dondero 	 
	 	 	Title:  	President 	 
	 

6

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