Document:

Exhibit 10.1

 

AMENDMENT NO. 9 TO SALE AND SERVICING
AGREEMENT

(VFCC Transaction with Ares Capital CP
Funding LLC)

 

THIS AMENDMENT
NO. 9 TO THE SALE AND SERVICING AGREEMENT,
dated as of October 18, 2007 (this “Amendment”),
is entered into in connection with that certain Sale and Servicing Agreement, dated
as of November 3, 2004 (as amended, modified, waived, supplemented or restated through
the date hereof, the “Sale and Servicing Agreement”), by and among Ares
Capital CP Funding LLC, as the borrower (together with its successors and
assigns in such capacity, the “Borrower”),
Ares Capital Corporation, as the originator (together with its successors and
assigns in such capacity, the “Originator”)
and as the servicer (together with its successors and assigns in such capacity,
the “Servicer”), each
of the Conduit Purchasers and Institutional Purchasers from time to time party
thereto, each of the Purchaser Agents from time to time party thereto, Wachovia
Capital Markets, LLC,  as the Administrative
Agent (together with its successors and assigns in such capacity, the “Administrative
Agent”) and as the Purchaser Agent with respect to Variable Funding Capital
Company LLC (f/k/a Variable Funding Capital Corporation), as Conduit Purchaser
(together with its successors and assigns in such capacity, the “VFCC Agent”),
U.S. Bank National Association, as the trustee (together with its successors
and assigns in such capacities, the “Trustee”), and Lyon Financial
Services, Inc. (d/b/a U.S. Bank Portfolio Services) as the backup servicer (together
with its successors and assigns in such capacity, the “Backup Servicer”). Capitalized
terms used and not otherwise defined herein shall have the meanings given to
such terms in the Sale and Servicing Agreement.

 

R E C I T A L S

 

WHEREAS, the above-named
parties have entered into the Sale and Servicing Agreement, and, pursuant to
and in accordance with Section 13.1 thereof, the parties hereto desire to amend
the Sale and Servicing Agreement, in certain respects as provided herein;

 

NOW, THEREFORE,
based upon the above Recital, the mutual premises and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the undersigned, intending to be legally
bound, hereby agree as follows:

 

SECTION 1.         AMENDMENTS.

 

(a)           Section 1.1 of the
Sale and Servicing Agreement is hereby amended by amending and restating in
their entirety the following defined terms:

 

“Broadly
Syndicated Loan”: Any Loan that is a Term Loan or a Revolving Loan that (i)
is secured by a valid and perfected first priority lien on all of the Obligor’s
assets constituting Related Property for the Loan (which may include a pledge
of common equity), subject to such exceptions that are generally acceptable to
lending institutions in connection with their regular commercial lending
activities, and such other exceptions to which similar Related Property is
commonly subject and which do not individually, or in the aggregate, materially
and adversely affect the benefits of the security intended to be provided by
the related Underlying Instruments and UCC financing statements, (ii) is to an
Obligor issued as part of a loan facility with an original facility amount
(including any

 

 

 

first and
second lien loans included in such facility) of greater than $250,000,000,
including for purposes of this definition the maximum available amount of
commitments under Revolving Loans and Delayed Draw Term Loans, and (iii) is
rated at least B- by S&P and B3 by Moody’s. For avoidance of doubt, (i)
Broadly Syndicated Loans may include multiple tranches of a single facility and
(ii) a Broadly Syndicated Loan that satisfies some but not all of the foregoing
provisions of this definition may still be eligible for purchase by the
Borrower as another loan type, subject to such Loan’s satisfaction of the
criteria set forth in the definitions of those Loans and in the definition of
Eligible Loan.

 

“Servicing
Fee”:  The Senior Servicing fee and
the Junior Servicing Fee, collectively.

 

(b)           Section 1.1 of the
Sale and Servicing Agreement is hereby amended by adding the following defined
terms in the proper alphabetical order:

 

“Diversity
Score”:  The single number that
indicates collateral concentration for Loans in terms of both Obligor and
industry concentration, which is calculated as described in Schedule X hereto.”

 

“Junior
Servicing Fee”:  The fee payable to
the Servicer on each Payment Date in arrears in respect of each Collection
Period, which fee shall be equal to the product of (i) 0.50%, (ii) Aggregate
Outstanding Loan Balance as of the first day of the related Collection Period
and (iii) the actual number of days in such Collection Period divided by 360.

 

“Senior
Servicing Fee”:  The fee payable to
the Servicer on each Payment Date in arrears in respect of each Collection
Period, which fee shall be equal to the product of (i) 0.50%, (ii) Aggregate
Outstanding Loan Balance as of the first day of the related Collection Period
and (iii) the actual number of days in such Collection Period divided by 360.

 

(c)           The definition of “Advance
Rate” in Section 1.1 of the Sale and Servicing Agreement is hereby amended by
replacing the table in the definition with the following:

 

	
  Diversity Score:

  	
   

  	
  < 15.00

  	
   

  	
  > 15.00

  	
   

  
	
  Pool Yield:

  	
   

  	
  > 4.0%

  	
   

  	
  > 3.0%

  	
   

  	
  > 4.0%

  	
   

  	
  > 3.0%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Broadly Syndicated Loans

  	
   

  	
  77.5

  	
  %

  	
  77.5

  	
  %

  	
  80.0

  	
  %

  	
  80.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Senior Secured ABLs

  	
   

  	
  77.5

  	
  %

  	
  77.5

  	
  %

  	
  80.0

  	
  %

  	
  80.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First Lien Loans

  	
   

  	
  77.5

  	
  %

  	
  75.0

  	
  %

  	
  80.0

  	
  %

  	
  77.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Qualified Second Lien Loans

  	
   

  	
  72.5

  	
  %

  	
  70.0

  	
  %

  	
  75.0

  	
  %

  	
  72.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Second Lien Loans

  	
   

  	
  68.0

  	
  %

  	
  66.0

  	
  %

  	
  70.0

  	
  %

  	
  70.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Senior Subordinated Loans

  	
   

  	
  63.0

  	
  %

  	
  60.0

  	
  %

  	
  63.0

  	
  %

  	
  63.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Junior Subordinated Loans

  	
   

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dip Loans

  	
   

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  

 

2

 

(d)           The definition of “Concentration
Limits” set forth in Section 1.1 of the Sale and Servicing Agreement is hereby
amended by deleting the number “8.0%” from clause (h)(iii) thereof and
replacing it with “the LIBOR Rate + 5.00%”.

 

(e)           The definition of “Facility
Termination Date” set forth in Section 1.1 of the Sale and Servicing Agreement
is hereby amended by replacing the date “October 30, 2009” with the date “October
6, 2010”.

 

(f)            The definition of “Pool
Yield” set forth in Section 1.1 of the Sale and Servicing Agreement is hereby
amended by inserting the word “Senior” immediately before the words “Servicing
Fee” in clause (a)(ii) thereof.

 

(g)           The definition of “Termination
Date” set forth in Section 1.1 of the Sale and Servicing Agreement is hereby
amended by replacing the date “October 31, 2007” in clause (iii) thereof with
the date “October 8, 2008”.

 

(h)           Section 2.9(a)(4) of
the Sale and Servicing Agreement is hereby amended and restated as follows:

 

“to the Servicer
(i) if the Originator, or an Affiliate of the Originator, is the Servicer, in
an amount equal to any accrued and unpaid Senior Servicing Fees to the end of
the related Collection Period, or (ii) if the Originator, or an Affiliate of the
Originator, is not the Servicer, in an amount equal to any accrued and unpaid
Servicing Fees to the end of the related Collection Period;”

 

(i)            Section 2.9(a) of
the Sale and Servicing Agreement is hereby amended by inserting the following
clause (9) and renumbering the existing clauses accordingly:

 

“(9)         to the Servicer (but only if the
Originator, or an Affiliate of the Originator, is the Servicer), in an amount
equal to any accrued and unpaid Junior Servicing Fees to the end of the related
Collection Period;”

 

(j)            Section 2.10(a)(4)
of the Sale and Servicing Agreement is hereby amended and restated as follows:

 

“to the Servicer
(i) if the Originator, or an Affiliate of the Originator, is the Servicer, in
an amount equal to any accrued and unpaid Senior Servicing Fees to the end of
the related Collection Period, or (ii) if the Originator, or an Affiliate of
the Originator, is not the Servicer, in an amount equal to any accrued and
unpaid Servicing Fees to the end of the related Collection Period;”

 

(k)           Section 2.10(a) of
the Sale and Servicing Agreement is hereby amended by inserting the following
clause (9) and renumbering the existing clauses accordingly:

 

3

 

“(9)         to the Servicer (but only if the
Originator, or an Affiliate of the Originator, is the Servicer), in an amount
equal to any accrued and unpaid Junior Servicing Fees to the end of the related
Collection Period;”

 

(l)            Section 2.14(b) of
the Sale and Servicing Agreement is hereby amended by inserting the words “or Senior
Servicing Fee, as applicable,” immediately after the words “Servicing Fee”
therein and adding the following at the end of the sentence before the period:

 

“, and the
Junior Servicing Fee in accordance with Section 2.9(a)(9) and Section
2.10(a)(9), as applicable”.

 

(m)          Section 6.8 of the
Sale and Servicing Agreement is hereby amended by inserting the words “or Senior
Servicing Fee, as applicable,” immediately after the words “Servicing Fee”
therein and adding the following at the end of the sentence before the period:

 

“, and the
Junior Servicing Fee to the extent of funds available therefor pursuant to the
provisions of Section 2.9(a)(9) or Section 2.10(a)(9), as
applicable”.

 

(n)           The Schedules to the
Sale and Servicing Agreement is hereby amended by adding Schedule X, which is
attached hereto, in the proper numerical alphabetical order

 

Pursuant to Section 8.6(h) of the Sale and Servicing Agreement, the
Administrative Agent hereby directs the Trustee to enter into this Amendment.

 

SECTION 2.         INTENTIONALLY OMITTED.

 

SECTION 3.         Agreement in Full Force and Effect as AMENDED.

 

Except as
specifically amended hereby, all provisions of the Sale and Servicing Agreement
are hereby ratified and shall remain in full force and effect. This Amendment shall
not be deemed to expressly or impliedly waive, amend or supplement any
provision of the Sale and Servicing Agreement other than as expressly set forth
herein, and shall not constitute a novation of the Sale and Servicing Agreement.

 

SECTION 4.         Representations.

 

Each of the Borrower
and the Servicer represent and warrant as of the date of this Amendment as
follows:

 

(i)            it
is duly incorporated or organized, validly existing and in good standing under
the laws of its jurisdiction of incorporation or organization;

 

(ii)           the
execution, delivery and performance by it of this Amendment are within its
powers, have been duly authorized, and do not contravene (A) its charter,
by-laws, or other organizational documents, or (B) any Applicable Law;

 

(iii)          no
consent, license, permit, approval or authorization of, or registration, filing
or declaration with any governmental authority, is required in connection with
the

 

4

 

execution, delivery, performance, validity or enforceability of this Amendment
by or against it;

 

(iv)          this
Amendment has been duly executed and delivered by it;

 

(v)           this
Amendment constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors’ rights generally or by general
principles of equity;

 

(vi)          it
is not in default under the Sale and Servicing Agreement, as amended hereby;
and

 

(vii)         upon
giving effect to this Amendment, there is no Termination Event, Unmatured
Termination Event, or Servicer Default.

 

SECTION 5.         Conditions to Effectiveness.

 

The
effectiveness of this Amendment is conditioned upon delivery of executed
signature pages by all parties hereto to the Administrative Agent.

 

SECTION 6.         Miscellaneous.

 

(a)           This Amendment may
be executed in any number of counterparts (including by facsimile), and by the
different parties hereto on the same or separate counterparts, each of which shall
be deemed to be an original instrument but all of which together shall
constitute one and the same agreement.

 

(b)           The descriptive
headings of the various sections of this Amendment are inserted for convenience
of reference only and shall not be deemed to affect the meaning or construction
of any of the provisions hereof.

 

(c)           This Amendment may
not be amended or otherwise modified except as provided in the Sale and
Servicing Agreement.

 

(d)           The failure or unenforceability
of any provision hereof shall not affect the other provisions of this Amendment
or the Sale and Servicing Agreement.

 

(e)           Whenever the context
and construction so require, all words used in the singular number herein shall
be deemed to have been used in the plural, and vice versa, and the masculine gender
shall include the feminine and neuter and the neuter shall include the
masculine and feminine.

 

(f)            This Amendment
represents the final agreement between the parties only with respect to the subject
matter expressly covered hereby 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.

 

5

 

(g)           THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT
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]

 

6

 

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

 

	
  CONDUIT PURCHASER:

  	
  VARIABLE FUNDING CAPITAL

  COMPANY LLC (f/k/a Variable Funding

  Capital Corporation)

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Wachovia Capital Markets, LLC,

  
	
   

  	
   

  	
  as attorney-in-fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Douglas R. Wilson, Sr.

  	
   

  
	
   

  	
   

  	
  Name: Douglas R. Wilson, Sr.

  
	
   

  	
   

  	
  Title:   Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE ADMINISTRATIVE AGENT

  AND THE VFCC AGENT:

  	
  WACHOVIA CAPITAL MARKETS, LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David Shutley

  	
   

  
	
   

  	
   

  	
     Name: David Shutley

  
	
   

  	
   

  	
     Title:   Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE BORROWER:

  	
  ARES CAPITAL CP FUNDING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Scott Lem

  	
   

  
	
   

  	
   

  	
     Name: Scott Lem

  
	
   

  	
   

  	
     Title:   Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE ORIGINATOR

  AND THE SERVICER:

  	
  ARES CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Richard S. Davis

  	
   

  
	
   

  	
   

  	
     Name: Richard S. Davis

  
	
   

  	
   

  	
     Title:   Chief Financial Officer

  
					

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

 

	
  THE TRUSTEE:

  	
  U.S. BANK NATIONAL ASSOCIATION,

  not in its individual capacity but solely as

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John T. Edwards

  	
   

  
	
   

  	
   

  	
     Name: John T. Edwards

  
	
   

  	
   

  	
     Title:   Assistant Vice President

  

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

 

	
  Acknowledged and Agreed to

  as of the date first written above:

   

  WACHOVIA BANK, NATIONAL ASSOCIATION,

  as a Hedge Counterparty

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Bruce Young

  	
   

  	
   

  
	
   

  	
     Name: Bruce Young

  	
   

  
	
   

  	
     Title: Senior Vice President

  	
   

  
				

 

 

SCHEDULE X

 

Diversity Score

 

The Diversity
Score for the Loans is calculated by summing each of the Industry Diversity
Scores, which are calculated as follows:

 

(i)            An “Obligor
Par Amount” is calculated for each Obligor represented in the
Collateral by summing the Outstanding Loan Balance of each Loan in the
Collateral of that Obligor or any Affiliate of that Obligor.

 

(ii)           An “Average
Par Amount” is calculated by summing the Obligor Par Amounts and
dividing by the number of Obligors represented. For purposes of calculating the
number of Obligors, any Obligors which are Affiliates will be considered one
Obligor; provided, however, that for purposes of this
calculation, the term “Affiliate” shall not include any Affiliate relationship
which may exist solely as a result of direct or indirect ownership of, or
control by, a common owner which is a financial institution, fund or other
investment vehicle which is in the business of making diversified investments.

 

(iii)          An “Equivalent
Unit Score” is calculated for each Obligor represented in the
Collateral by taking the lesser of (a) one and (b) the Obligor Par Amount for
such Obligor divided by the Average Par Amount. For purposes of calculating the
Equivalent Unit Score, any Obligors which are Affiliates will be considered one
Obligor; provided, however, that for purposes of this
calculation, the term “Affiliate” shall not include any Affiliate relationship
which may exist solely as a result of direct or indirect ownership of, or
control by, a common owner which is a financial institution, fund or other
investment vehicle which is in the business of making diversified investments.

 

(iv)          An “Aggregate
Industry Equivalent Unit Score” is then calculated for each of the
Moody’s Industry Classification Groups by summing the Equivalent Unit Scores
for each Obligor in the industry.

 

(v)           An “Industry
Diversity Score” is then established by reference to the Diversity
Score Table shown below for the related Aggregate Industry Equivalent Unit
Score. If any Aggregate Industry Equivalent Unit Score falls between any two
scores then the applicable Industry Diversity Score will be the lower of the
two Industry Diversity Scores.

 

(vi)          Charged-Off Loans shall be excluded from the
calculation of the Diversity Score.

 

 

Diversity Score Table

 

	
  Aggregate

  Industry

  Equivalent

  Unit Score

  	
   

  	
  

  

  Diversity

  Score

  	
   

  	
  Aggregate

  Industry

  Equivalent

  Unit Score

  	
   

  	
  

  

  Diversity

  Score

  	
   

  	
  Aggregate

  Industry

  Equivalent

  Unit Score

  	
   

  	
  

  

  Diversity

  Score

  	
   

  	
  Aggregate

  Industry

  Equivalent

  Unit Score

  	
   

  	
  

  

  Diversity

  Score

  
	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  5.0500

  	
   

  	
  2.7000

  	
   

  	
  10.1500

  	
   

  	
  4.0200

  	
   

  	
  15.2500

  	
   

  	
  4.5300

  
	
  0.0500

  	
   

  	
  0.1000

  	
   

  	
  5.1500

  	
   

  	
  2.7333

  	
   

  	
  10.2500

  	
   

  	
  4.0300

  	
   

  	
  15.3500

  	
   

  	
  4.5400

  
	
  0.1500

  	
   

  	
  0.2000

  	
   

  	
  5.2500

  	
   

  	
  2.7667

  	
   

  	
  10.3500

  	
   

  	
  4.0400

  	
   

  	
  15.4500

  	
   

  	
  4.5500

  
	
  0.2500

  	
   

  	
  0.3000

  	
   

  	
  5.3500

  	
   

  	
  2.8000

  	
   

  	
  10.4500

  	
   

  	
  4.0500

  	
   

  	
  15.5500

  	
   

  	
  4.5600

  
	
  0.3500

  	
   

  	
  0.4000

  	
   

  	
  5.4500

  	
   

  	
  2.8333

  	
   

  	
  10.5500

  	
   

  	
  4.0600

  	
   

  	
  15.6500

  	
   

  	
  4.5700

  
	
  0.4500

  	
   

  	
  0.5000

  	
   

  	
  5.5500

  	
   

  	
  2.8667

  	
   

  	
  10.6500

  	
   

  	
  4.0700

  	
   

  	
  15.7500

  	
   

  	
  4.5800

  
	
  0.5500

  	
   

  	
  0.6000

  	
   

  	
  5.6500

  	
   

  	
  2.9000

  	
   

  	
  10.7500

  	
   

  	
  4.0800

  	
   

  	
  15.8500

  	
   

  	
  4.5900

  
	
  0.6500

  	
   

  	
  0.7000

  	
   

  	
  5.7500

  	
   

  	
  2.9333

  	
   

  	
  10.8500

  	
   

  	
  4.0900

  	
   

  	
  15.9500

  	
   

  	
  4.6000

  
	
  0.7500

  	
   

  	
  0.8000

  	
   

  	
  5.8500

  	
   

  	
  2.9667

  	
   

  	
  10.9500

  	
   

  	
  4.1000

  	
   

  	
  16.0500

  	
   

  	
  4.6100

  
	
  0.8500

  	
   

  	
  0.9000

  	
   

  	
  5.9500

  	
   

  	
  3.0000

  	
   

  	
  11.0500

  	
   

  	
  4.1100

  	
   

  	
  16.1500

  	
   

  	
  4.6200

  
	
  0.9500

  	
   

  	
  1.0000

  	
   

  	
  6.0500

  	
   

  	
  3.0250

  	
   

  	
  11.1500

  	
   

  	
  4.1200

  	
   

  	
  16.2500

  	
   

  	
  4.6300

  
	
  1.0500

  	
   

  	
  1.0500

  	
   

  	
  6.1500

  	
   

  	
  3.0500

  	
   

  	
  11.2500

  	
   

  	
  4.1300

  	
   

  	
  16.3500

  	
   

  	
  4.6400

  
	
  1.1500

  	
   

  	
  1.1000

  	
   

  	
  6.2500

  	
   

  	
  3.0750

  	
   

  	
  11.3500

  	
   

  	
  4.1400

  	
   

  	
  16.4500

  	
   

  	
  4.6500

  
	
  1.2500

  	
   

  	
  1.1500

  	
   

  	
  6.3500

  	
   

  	
  3.1000

  	
   

  	
  11.4500

  	
   

  	
  4.1500

  	
   

  	
  16.5500

  	
   

  	
  4.6600

  
	
  1.3500

  	
   

  	
  1.2000

  	
   

  	
  6.4500

  	
   

  	
  3.1250

  	
   

  	
  11.5500

  	
   

  	
  4.1600

  	
   

  	
  16.6500

  	
   

  	
  4.6700

  
	
  1.4500

  	
   

  	
  1.2500

  	
   

  	
  6.5500

  	
   

  	
  3.1500

  	
   

  	
  11.6500

  	
   

  	
  4.1700

  	
   

  	
  16.7500

  	
   

  	
  4.6800

  
	
  1.5500

  	
   

  	
  1.3000

  	
   

  	
  6.6500

  	
   

  	
  3.1750

  	
   

  	
  11.7500

  	
   

  	
  4.1800

  	
   

  	
  16.8500

  	
   

  	
  4.6900

  
	
  1.6500

  	
   

  	
  1.3500

  	
   

  	
  6.7500

  	
   

  	
  3.2000

  	
   

  	
  11.8500

  	
   

  	
  4.1900

  	
   

  	
  16.9500

  	
   

  	
  4.7000

  
	
  1.7500

  	
   

  	
  1.4000

  	
   

  	
  6.8500

  	
   

  	
  3.2250

  	
   

  	
  11.9500

  	
   

  	
  4.2000

  	
   

  	
  17.0500

  	
   

  	
  4.7100

  
	
  1.8500

  	
   

  	
  1.4500

  	
   

  	
  6.9500

  	
   

  	
  3.2500

  	
   

  	
  12.0500

  	
   

  	
  4.2100

  	
   

  	
  17.1500

  	
   

  	
  4.7200

  
	
  1.9500

  	
   

  	
  1.5000

  	
   

  	
  7.0500

  	
   

  	
  3.2750

  	
   

  	
  12.1500

  	
   

  	
  4.2200

  	
   

  	
  17.2500

  	
   

  	
  4.7300

  
	
  2.0500

  	
   

  	
  1.5500

  	
   

  	
  7.1500

  	
   

  	
  3.3000

  	
   

  	
  12.2500

  	
   

  	
  4.2300

  	
   

  	
  17.3500

  	
   

  	
  4.7400

  
	
  2.1500

  	
   

  	
  1.6000

  	
   

  	
  7.2500

  	
   

  	
  3.3250

  	
   

  	
  12.3500

  	
   

  	
  4.2400

  	
   

  	
  17.4500

  	
   

  	
  4.7500

  
	
  2.2500

  	
   

  	
  1.6500

  	
   

  	
  7.3500

  	
   

  	
  3.3500

  	
   

  	
  12.4500

  	
   

  	
  4.2500

  	
   

  	
  17.5500

  	
   

  	
  4.7600

  
	
  2.3500

  	
   

  	
  1.7000

  	
   

  	
  7.4500

  	
   

  	
  3.3750

  	
   

  	
  12.5500

  	
   

  	
  4.2600

  	
   

  	
  17.6500

  	
   

  	
  4.7700

  
	
  2.4500

  	
   

  	
  1.7500

  	
   

  	
  7.5500

  	
   

  	
  3.4000

  	
   

  	
  12.6500

  	
   

  	
  4.2700

  	
   

  	
  17.7500

  	
   

  	
  4.7800

  
	
  2.5500

  	
   

  	
  1.8000

  	
   

  	
  7.6500

  	
   

  	
  3.4250

  	
   

  	
  12.7500

  	
   

  	
  4.2800

  	
   

  	
  17.8500

  	
   

  	
  4.7900

  
	
  2.6500

  	
   

  	
  1.8500

  	
   

  	
  7.7500

  	
   

  	
  3.4500

  	
   

  	
  12.8500

  	
   

  	
  4.2900

  	
   

  	
  17.9500

  	
   

  	
  4.8000

  
	
  2.7500

  	
   

  	
  1.9000

  	
   

  	
  7.8500

  	
   

  	
  3.4750

  	
   

  	
  12.9500

  	
   

  	
  4.3000

  	
   

  	
  18.0500

  	
   

  	
  4.8100

  
	
  2.8500

  	
   

  	
  1.9500

  	
   

  	
  7.9500

  	
   

  	
  3.5000

  	
   

  	
  13.0500

  	
   

  	
  4.3100

  	
   

  	
  18.1500

  	
   

  	
  4.8200

  
	
  2.9500

  	
   

  	
  2.0000

  	
   

  	
  8.0500

  	
   

  	
  3.5250

  	
   

  	
  13.1500

  	
   

  	
  4.3200

  	
   

  	
  18.2500

  	
   

  	
  4.8300

  
	
  3.0500

  	
   

  	
  2.0333

  	
   

  	
  8.1500

  	
   

  	
  3.5500

  	
   

  	
  13.2500

  	
   

  	
  4.3300

  	
   

  	
  18.3500

  	
   

  	
  4.8400

  
	
  3.1500

  	
   

  	
  2.0667

  	
   

  	
  8.2500

  	
   

  	
  3.5750

  	
   

  	
  13.3500

  	
   

  	
  4.3400

  	
   

  	
  18.4500

  	
   

  	
  4.8500

  
	
  3.2500

  	
   

  	
  2.1000

  	
   

  	
  8.3500

  	
   

  	
  3.6000

  	
   

  	
  13.4500

  	
   

  	
  4.3500

  	
   

  	
  18.5500

  	
   

  	
  4.8600

  
	
  3.3500

  	
   

  	
  2.1333

  	
   

  	
  8.4500

  	
   

  	
  3.6250

  	
   

  	
  13.5500

  	
   

  	
  4.3600

  	
   

  	
  18.6500

  	
   

  	
  4.8700

  
	
  3.4500

  	
   

  	
  2.1667

  	
   

  	
  8.5500

  	
   

  	
  3.6500

  	
   

  	
  13.6500

  	
   

  	
  4.3700

  	
   

  	
  18.7500

  	
   

  	
  4.8800

  
	
  3.5500

  	
   

  	
  2.2000

  	
   

  	
  8.6500

  	
   

  	
  3.6750

  	
   

  	
  13.7500

  	
   

  	
  4.3800

  	
   

  	
  18.8500

  	
   

  	
  4.8900

  
	
  3.6500

  	
   

  	
  2.2333

  	
   

  	
  8.7500

  	
   

  	
  3.7000

  	
   

  	
  13.8500

  	
   

  	
  4.3900

  	
   

  	
  18.9500

  	
   

  	
  4.9000

  
	
  3.7500

  	
   

  	
  2.2667

  	
   

  	
  8.8500

  	
   

  	
  3.7250

  	
   

  	
  13.9500

  	
   

  	
  4.4000

  	
   

  	
  19.0500

  	
   

  	
  4.9100

  
	
  3.8500

  	
   

  	
  2.3000

  	
   

  	
  8.9500

  	
   

  	
  3.7500

  	
   

  	
  14.0500

  	
   

  	
  4.4100

  	
   

  	
  19.1500

  	
   

  	
  4.9200

  
	
  3.9500

  	
   

  	
  2.3333

  	
   

  	
  9.0500

  	
   

  	
  3.7750

  	
   

  	
  14.1500

  	
   

  	
  4.4200

  	
   

  	
  19.2500

  	
   

  	
  4.9300

  
	
  4.0500

  	
   

  	
  2.3667

  	
   

  	
  9.1500

  	
   

  	
  3.8000

  	
   

  	
  14.2500

  	
   

  	
  4.4300

  	
   

  	
  19.3500

  	
   

  	
  4.9400

  
	
  4.1500

  	
   

  	
  2.4000

  	
   

  	
  9.2500

  	
   

  	
  3.8250

  	
   

  	
  14.3500

  	
   

  	
  4.4400

  	
   

  	
  19.4500

  	
   

  	
  4.9500

  
	
  4.2500

  	
   

  	
  2.4333

  	
   

  	
  9.3500

  	
   

  	
  3.8500

  	
   

  	
  14.4500

  	
   

  	
  4.4500

  	
   

  	
  19.5500

  	
   

  	
  4.9600

  
	
  4.3500

  	
   

  	
  2.4667

  	
   

  	
  9.4500

  	
   

  	
  3.8750

  	
   

  	
  14.5500

  	
   

  	
  4.4600

  	
   

  	
  19.6500

  	
   

  	
  4.9700

  
	
  4.4500

  	
   

  	
  2.5000

  	
   

  	
  9.5500

  	
   

  	
  3.9000

  	
   

  	
  14.6500

  	
   

  	
  4.4700

  	
   

  	
  19.7500

  	
   

  	
  4.9800

  
	
  4.5500

  	
   

  	
  2.5333

  	
   

  	
  9.6500

  	
   

  	
  3.9250

  	
   

  	
  14.7500

  	
   

  	
  4.4800

  	
   

  	
  19.8500

  	
   

  	
  4.9900

  
	
  4.6500

  	
   

  	
  2.5667

  	
   

  	
  9.7500

  	
   

  	
  3.9500

  	
   

  	
  14.8500

  	
   

  	
  4.4900

  	
   

  	
  19.9500

  	
   

  	
  5.0000

  
	
  4.7500

  	
   

  	
  2.6000

  	
   

  	
  9.8500

  	
   

  	
  3.9750

  	
   

  	
  14.9500

  	
   

  	
  4.5000

  	
   

  	
   

  	
   

  	
   

  
	
  4.8500

  	
   

  	
  2.6333

  	
   

  	
  9.9500

  	
   

  	
  4.0000

  	
   

  	
  15.0500

  	
   

  	
  4.5100

  	
   

  	
   

  	
   

  	
   

  
	
  4.9500

  	
   

  	
  2.6667

  	
   

  	
  10.0500

  	
   

  	
  4.0100

  	
   

  	
  15.1500

  	
   

  	
  4.5200Exhibit
10.2

 

THIRD AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS
THIRD AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Amendment”) by
and between AVANT Immunotherapeutics, Inc., a Delaware  corporation (f/k/a “T Cell Sciences, Inc.,”
the “Company”) and Una S. Ryan, Ph.D. (the “Executive”), is dated as of October
19, 2007.

 

WHEREAS,
the Company and the Executive entered into an Employment Agreement as of May
28, 1996 (the “Original Agreement”);

 

WHEREAS,
the Company and the Executive entered into an Amended and Restated Employment
Agreement as of August 20, 1998 (the “Employment Agreement”), which Employment
Agreement amended, restated and superseded the Original Agreement;

 

WHEREAS,
the Employment Agreement was amended by the First Amendment and the Second
Amendment thereto; and

 

WHEREAS,
the parties agree to further amend certain provisions of the Employment
Agreement in accordance with Paragraph 19 thereof.

 

NOW,
THEREFORE, the Company and the Executive, each intending to be legally bound
hereby, do mutually covenant and agree as follows:

 

1.                                       Paragraph 3 of the Employment Agreement is
hereby amended by deleting said Paragraph in its entirety and substituting
therefor the following:

 

“3.                                Term. Subject to the
provisions of Paragraph 6, the term of employment pursuant to this Agreement
(the “Term”) shall be extended for 13 months from the Effective Date of the
Merger (as defined in the Agreement and Plan of Merger, dated as of October 19,
2007, among certain parties including Avant Immunotherapeutics, Inc., and
Callisto Therapeutics, Inc.) and shall be renewed automatically for periods of
one (1) year commencing on the 13-month anniversary of the Effective Date and
each subsequent anniversary thereafter, unless either the Executive or the
Company gives written notice to the other not less than sixty (60) days prior
to the date of any such anniversary of such party’s election not to extend the
Term.”

 

2.                                       Subparagraph
6(d) of the Employment Agreement is amended by deleting Subparagraph (ii)(E)
thereof and renumbering Subparagraph (ii)(F) as new Subparagraph (ii)(E).

 

3.                                       Subparagraph
6(f)(i) of the Employment Agreement is hereby amended by deleting such
subparagraph in its entirety and substituting therefor the following:

 

 

“(i)                               In the event of
termination of the Executive’s employment with the Company by the Company
without Cause pursuant to Section 6(c) or by the Executive for Good Reason
pursuant to Section 6(d) above at any time after the Merger, or if the
Executive resigns or is terminated by the Company on or after the first
anniversary of the Merger for any reason, the Company shall pay to the
Executive a special retirement payment in the amount of $1,323,203.”

 

4.                                       Effective
as of January 1, 2008, Paragraph 6 of the Employment Agreement is hereby
further amended by adding the following new Subparagraph (i) immediately after
Subparagraph (h) thereof:

 

“(i)                              Specified Employee. Anything in
this Agreement to the contrary notwithstanding, if at the time of the Executive’s
termination of employment, the Executive is considered a ‘specified employee’
within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of
1986, as amended (the ‘Code’), and if any payment that the Executive becomes
entitled to under this Agreement would be considered deferred compensation
subject to interest and additional tax imposed pursuant to Section 409A(a) of
the Code as a result of the application of Section 409A(a)(2)(B)(i) of the
Code, then no such payment shall be payable prior to the date that is the
earlier of (A) six months and a day after the Executive’s separation from
service, or (B) the Executive’s death. Any such deferred payment shall earn
simple interest calculated at the short-term applicable federal rate in effect
on the date of the Executive’s separation from service. The parties intend that
this Agreement will be administered in accordance with Section 409A of the Code.
The parties agree that this Agreement may be amended, as reasonably requested
by either party, and as may be necessary to fully comply with Section 409A of
the Code and all related rules and regulations in order to preserve the
payments and benefits provided hereunder without additional cost to either
party.”

 

5.                                       Effective
as of January 1, 2008, Subparagraph 6(f)(iii) of the Employment Agreement is
further amended by deleting the third sentence thereof in its entirety and
substituting therefor the following:

 

“The initial Gross-Up
Payment, if any, as determined pursuant to this Subparagraph 6(f)(iii), shall
be paid by the Company as withholding taxes to the taxing authorities on behalf
of the Executive at such time or times when the Excise Tax is due.”

 

6.                                       Except
as so amended, the Employment Agreement in all other respects is hereby
confirmed.

 

 

7.                                       The
provisions of Sections 4 and 5 of this Third Amendment shall become effective
as of January 1, 2008. The remaining provisions of this Third Amendment shall
become effective upon the consummation of the Merger and such provisions shall
be null and void if the Merger is not consummated.

 

IN
WITNESS WHEREOF, this Third Amendment has been executed as a sealed instrument
by the Company, by its duly authorized officer, and by the Executive, as of the
date first written herein above.

 

	
   

  	
  AVANT
  IMMUNOTHERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Avery W. Catlin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Avery
  W. Catlin

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and

  
	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Una S. Ryan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Una
  S. Ryan, Ph.D.

  
	
   

  	
   

  	
  Title:

  	
  President
  and Chief Executive

  
	
   

  	
   

  	
   

  	
  Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]