Document:

exv10w35

 

Exhibit 10.35

RENT SCHEDULE

EXHIBIT “A”

This is
attached to the Lease Agreement dated July 1, 2006 by
and between MCM Legacy LTD PTNR, dba Patrick Park Center, as Landlord,

and     APEX
TESTING CORP..

UNIT:
  3155 East Patrick Lane, Suite 12, Las Vegas NV 89120 

Description-3,444
Sq. Ft.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Cam	 	 	 	 	 	 	 	 	 	TOTAL
	Date	 	Square Ft	 	Rents	 	Cam**	 	RENT
	01-July-2006
- 31-December-2006
	 	 	3,444	 	 	$	2,499.32	 	 	$	398.88	 	 	$2,898.20 Per Mo.
	01-January-2007 - 31-December-2007
	 	 	3,444	 	 	$	2,574.30	 	 	$	398.88	 	 	$2,973.18  Per Mo.

 

			
	**	 	Cams are subject to change

	 	 	 	 	 	 	 
	/s/ Bill
McDonald                                6/14/2006

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	Bill McDonald                                      Date

	 
	 	MCM Legacy LP
	 	Date
	Presidentexv10w36

 

Exhibit 10.36

FIRST AMENDMENT OF LEASE

     THIS
FIRST AMENDMENT TO LEASE AGREEMENT is made and entered into this
31 day of  OCT. 2006, by and between JPET LAS
VEGAS, LLC hereinafter referred to as “Landlord”, and MEADOW VALLEY
CORPORATION, INC., hereinafter referred to as “Tenant”.

     WHEREAS,
on. July 9, 2001 Landlord and Tenant entered into a certain Lease
Agreement, hereinafter collectively referred to as the “Lease”, providing for the Lease
by Landlord to Tenant of a certain demised premises commonly known as Space F consisting
of approximately 4,320 +/- square feet located in the City of North Las Vegas, County of
Clark, State of Nevada, which demised premises are more particularly described in the
Lease; and,

     WHEREAS,
JPET II, Company Limited Partnership assigned all of its right, title and
interest in the Lease Agreement to JPET LAS VEGAS, LLC under an assignment
dated June 20, 2002; and,

     WHEREAS,
the parties desire to amend the terms of the Lease in certain respects, and
Landlord does hereby consent to enter into such an agreement;

     NOW, THEREFORE, for and in consideration of the mutual promises herein
contained, the parties hereto agree that the Lease shall be, and the same is
hereby, amended as follows:

	 	1.	 	The term of the Lease shall hereby be extended for thirty-six
(36) months
commencing October 1, 2006 and continuing thereafter until September 30,
2009 (the “Extension Period”).
	 
	 	2.	 	During the Extension Period, Tenant’s basic rent shall be;

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Months	 	Rent/Sq. Ft.	 	Monthly Rent	 	Annual Rent
	1-12
	 	$	0.8200	 	 	$	3,542.40	 	 	$	42,508.80	 
	13-24
	 	$	0.8611	 	 	$	3,719.95	 	 	$	44,639.40	 
	25-36
	 	$	0.9041	 	 	$	3,905.71	 	 	$	46,868.52	 

	 	3.	 	The effective date of this Amendment is the date of full execution by both
parties.
	 
	 	4.	 	The Lease hereinabove defined shall remain in full force and effect as therein
stated, except as herein specifically modified or amended.

     IN
WITNESS WHEREOF, this First Amendment to Lease Agreement is executed the date and
year first hereinabove written.

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	JPET LAS VEGAS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Steven Price	 	 
	 

	 	 	 	 

J. Steven Price, Manager
	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	MEADOW VALLEY CORPORATION, INC.,	 	 
	 
	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/
Nancy A. McCafferty

	 	By:
	 	/s/ Robert Terril	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	its   V.P.	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Fed Tax ID# 88-0171959Direct General 10-K/A 03/29/07 Exhibit 10.15

    Exhibit
      10.15

    
 

    TENTH
      AMENDMENT

     

    TO

     

    EIGHTH
      AMENDED AND RESTATED LOAN AGREEMENT

     

    THIS
      TENTH AMENDMENT TO EIGHTH AMENDED AND RESTATED LOAN AGREEMENT (the "Amendment")
      made and entered into as of the 22nd
      day of
      November, 2006, by and among DIRECT
      GENERAL FINANCIAL SERVICES, INC., a
      Tennessee corporation whose address is 1281 Murfreesboro Road, Nashville,
      Tennessee 37217 (f/k/a Direct Financial Services, Inc.) ("DGFS"), DIRECT
      GENERAL PREMIUM FINANCE COMPANY,
      a
      Tennessee corporation whose address is 1281 Murfreesboro Road, Nashville,
      Tennessee 37217 ("DGPFC"; DGFS and DGPFC may be referred to hereinafter either
      individually or collectively as "Borrower"), DIRECT
      GENERAL CORPORATION,
      a
      Tennessee corporation (formerly known as Direct Corporation) ("DGC"),
DIRECT
      GENERAL INSURANCE AGENCY, INC.,
      a
      Tennessee corporation, DIRECT
      GENERAL INSURANCE AGENCY, INC.,
      an
      Arkansas corporation, DIRECT
      GENERAL INSURANCE AGENCY, INC.,
      a
      Mississippi corporation, DIRECT
      GENERAL INSURANCE AGENCY OF LOUISIANA, INC.,
      a
      Louisiana corporation, DIRECT GENERAL
      AGENCY OF KENTUCKY, INC.,
      a
      Kentucky corporation, DIRECT
      ADJUSTING COMPANY, INC.,
      a
      Tennessee corporation, DIRECT
      ADMINISTRATION, INC.,
      a
      Tennessee corporation, DIRECT
      GENERAL INSURANCE AGENCY, INC.,
      a Texas
      corporation, DIRECT
      GENERAL CONSUMER PRODUCTS, INC.,
      a
      Tennessee corporation, FIRST
      TENNESSEE BANK NATIONAL ASSOCIATION,
      a
      national banking association organized and existing under the statutes of the
      United States of America, with offices at 165 Madison Avenue, Memphis,
      Tennessee 38103 (in its agency capacity being herein referred to as "Agent,"
      and
      in its individual capacity as "FTBNA"), for itself and as agent for the other
      Banks hereinafter named, CAPITAL
      ONE, N.A.
      (successor by merger to Hibernia National Bank), a national banking association
      organized and existing under the laws of the United States of America, with
      offices at 440 Third Street, Baton Rouge, Louisiana 70801 ("Capital One"),
U.S.
      BANK NATIONAL ASSOCIATION,
      a
      national banking association (f/k/a U.S. Bank, N. A., which was f/k/a Mercantile
      Bank National Association) with offices located at 150 4th
      Avenue
      N., Nashville, Tennessee 37219 ("U.S. Bank"), CAROLINA
      FIRST BANK,
      a state
      bank formed under the laws of the State of South Carolina with offices located
      at 104 S. Main, Greenville, South Carolina 29601 ("Carolina First"),
JPMORGAN
      CHASE BANK, N.A. (successor
      by merger to Bank One, NA (Main Office Chicago) a
      national banking association with offices located at 451 Florida Street, Mail
      Code LA2-2714, Baton Rouge, Louisiana 70801 ("JPMorgan"), REGIONS
      BANK,
      an
      Alabama state banking association with offices located at 417 N. 20th
      Street,
      Birmingham, Alabama 35203 ("Regions"), NATIONAL
      CITY BANK OF KENTUCKY,
      a
      national banking association with offices located at 101 S. Fifth Street,
      37th
      Floor,
      Louisville, Kentucky 40202 ("National City Bank"), FIFTH
      THIRD BANK, N.A. (Tennessee),
      a
      national banking association organized and existing under the laws of the United
      States of America, with offices located at 810 Crescent Centre Drive, Suite
      160,
      Franklin, Tennessee 37067 ("Fifth Third"), and MIDFIRST
      BANK,
      a
      national banking association with offices located at 501 N.W. Grand
      Boulevard, Oklahoma City, Oklahoma 73118 ("MidFirst") (FTBNA, Capital One,
      U.S. Bank, Carolina First, JPMorgan, and Regions collectively, the "Original
      Banks") (the Original Banks, National City Bank, Fifth Third and MidFirst
      collectively the "Banks," and each individually, a "Bank").

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Recitals
      of Fact

     

    Pursuant
      to that certain Eighth Amended and Restated Loan Agreement dated as of October
      31, 2002 (the "Original Loan Agreement") among the Original Banks, DGFS and
      the
      other parties named therein, the Original Banks agreed to make loans and
      advances to DGFS on a revolving credit basis in an aggregate amount not to
      exceed One Hundred Fifteen Million Dollars ($115,000,000.00), evidenced by
      individual revolving credit notes to each Bank for the respective Facility
      Commitments set out in the Original Loan Agreement, each with a termination
      date
      of June 30, 2004 (collectively, the "October 2002 Notes").

     

    Pursuant
      to that certain First Amendment to Eighth Amended and Restated Loan Agreement
      dated as of March 31, 2003 (the "First Amendment") among the Original Banks,
      DGFS and the other parties named therein, the Facility Commitment for Regions
      was increased to a maximum principal amount of Twenty-Five Million Dollars
      ($25,000,000.00), and the total Commitment of the Original Banks was increased
      to a maximum aggregate principal amount of One Hundred Twenty-Five Million
      Dollars ($125,000,000.00).

     

    Pursuant
      to that certain Second Amendment to Eighth Amended and Restated Loan Agreement
      dated as of May 28, 2003 (the "Second Amendment") among the Original Banks,
      National City Bank, DGFS and the other parties named therein, the Facility
      Commitment for Carolina First was increased to a maximum principal amount of
      Fifteen Million Dollars ($15,000,000.00); the Facility Commitment for Bank
      One
      was increased to a maximum principal amount of Thirty-Five Million Dollars
      ($35,000,000.00); National City Bank was added as a Bank with a Facility
      Commitment of a maximum principal amount of Fifteen Million Dollars
      ($15,000,000.00); and the total Commitment of the Banks was increased to a
      maximum aggregate principal amount of One Hundred Sixty Million Dollars
      ($160,000,000.00).

     

    Pursuant
      to that certain Third Amendment to Eighth Amended and Restated Loan Agreement
      dated as of June 30, 2003 (the "Third Amendment"") among the Banks, DGFS and
      the
      other parties named therein, the Facility Commitment for Hibernia (now known
      as
      Capital One) was increased to a maximum principal amount of Twenty Million
      Dollars ($20,000,000.00); the Facility Commitment for U.S. Bank was increased
      to
      a maximum principal amount of Thirty Million Dollars ($30,000,000.00); Fifth
      Third was added as a Bank with a Facility Commitment of a maximum principal
      amount of Ten Million Dollars ($10,000,000.00); and the total Commitment of
      the
      Banks was increased to a maximum aggregate principal amount of One Hundred
      Eighty Million Dollars ($180,000,000.00).

     

    Pursuant
      to that certain Fourth Amendment to Eighth Amended and Restated Loan Agreement,
      dated on or about July 17, 2003 (the "Fourth Amendment") among the Banks, DGFS
      and the other parties named therein, the Loan Agreement was modified to allow
      DGC to pay dividends after the closing of its initial public offering of
      stock.

     

    Pursuant
      to that certain Fifth Amendment to Eighth Amended and Restated Loan Agreement,
      dated as of November 26, 2003 (the "Fifth Amendment") among the Banks, DGFS
      and
      the other parties named therein, the Facility Commitment for FTBNA was increased
      to a maximum principal amount of Forty Million Dollars ($40,000,000.00), the
      total Commitment of the Banks was increased to a maximum aggregate principal
      amount of One Hundred Ninety Million Dollars ($190,000,000.00), and other
      modifications were made to the Loan Agreement.

     

     

    
      
        2

      

      
         

        
          

        

      

      
         

      

    

     

    Pursuant
      to that certain Sixth Amendment to Eighth Amended and Restated Loan Agreement,
      dated as of June 30, 2004 (the "Sixth Amendment"), among the Banks, DGFS, DGPFC
      and other parties named therein, DGPFC was added as a Borrower under the Banks'
      respective Facility Commitments, DGPFC was added as a party to the Loan
      Agreement, the Seventh Amended and Restated Security Agreement as defined
      therein, and to other documents evidencing or securing the Loan (the Loan
      Agreement and all security documents collectively referred to as the "Security
      Documents"), the Banks extended the maturity date of the Loan to June 30, 2007,
      and other modifications were made to the Loan Agreement, the Seventh Amended
      and
      Restated Security Agreement defined therein and certain other loan and security
      documents.

     

    Pursuant
      to that certain Seventh Amendment to Eighth Amended and Restated Loan Agreement
      dated as of December 3, 2004 (the "Seventh Amendment"), DGFS and DGPFC
      obtained a Swing Line Loan up to an amount of Thirty Million Dollars
      ($30,000,000.00) from FTBNA as part of the credit facilities governed by the
      Loan Agreement.

     

    Pursuant
      to that certain Eighth Amendment to Eighth Amended and Restated Loan Agreement
      dated as of June 30, 2006 (the “Eighth Amendment”), the Banks agreed to extend
      the Loan Termination Date for their Facility Commitments, provide for future
      increases in certain of the Facility Commitments, admitted MidFirst Bank as
      a
      Bank hereunder, and made other modifications of the Loan Agreement, all as
      set
      forth in the Eighth Amendment.

     

    Pursuant
      to that certain Ninth Amendment to Eighth Amended and Restated Loan Agreement
      dated as of November 22, 2006 (the “Dated Date”) but with an Effective Date as
      defined therein (the “Ninth Amendment;” the Original Loan Agreement, as amended
      thereby, and by the First Amendment, the Second Amendment, the Third Amendment,
      the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh
      Amendment, and the Eighth Amendment, referred to hereinafter as the "Loan
      Agreement"), the Banks agreed to make certain modifications of the Loan
      Agreement, all as set forth in the Ninth Amendment, some of which (the
      termination of the Regions and MidFirst Facility Commitments) were intended
      to
      become effective on the Dated Date, and some of which would become effective
      only on the Effective Date upon the occurrence of certain conditions related
      to
      the Merger Transaction and the Bear Stearns Facilities as such terms are
      described in the Ninth Amendment.

     

    The
      Banks
      have been asked to enter into a further amendment of the Loan Agreement in
      order
      to evidence more clearly the termination of the Regions and MidFirst Facility
      Commitments as of November 22, 2006; to increase the Facility Commitment of
      Carolina First from $15,000,000 to $30,000,000 as of November 22, 2006; and
      to
      make other modifications to the Loan Agreement as set forth herein.

     

    NOW,
      THEREFORE, in consideration of the premises as set forth in the Recitals of
      Fact, the mutual covenants and agreements hereinafter set out, and other good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, it is agreed by the parties as follows:

     

     

    
      
        3

      

      
         

        
          

        

      

      
         

      

    

     

    Agreements

     

    SECTION
      I
      - GENERAL TERMS

     

    1.  All
      capitalized terms used and not defined herein shall have the meaning ascribed
      to
      them in the Loan Agreement.

     

    2.  To
      induce
      the Banks to enter into this Amendment, the Borrower does hereby absolutely
      and
      unconditionally, certify, represent and warrant to the Banks, and covenant
      and
      agree with the Banks, that:

     

    (a)  All
      representations and warranties made by the Borrower in the Loan Agreement,
      as
      amended hereby; in the Seventh Amended and Restated Security Agreement dated
      as
      of October 31, 2002, as thereafter amended from time to time, between the
      Borrower and Agent (the "Security Agreement"); and in all other loan documents
      (all of which are herein sometimes called the "Loan Documents"), are true,
      correct and complete in all material respects as of the date of this
      Amendment.

     

    (b)  As
      of the
      date hereof and with the execution of this Amendment, there are no existing
      events, circumstances or conditions which constitute, or would, with the giving
      of notice, lapse of time, or both, constitute Events of Default.

     

    (c)  There
      are
      no existing offsets, defenses or counterclaims to the obligations of the
      Borrowers as set forth in the New Notes, the Security Agreement, the Loan
      Agreement, or in any other Loan Document executed by the Borrower, in connection
      with the Loan.

     

    (d)  Neither
      Borrower has any existing claim for damages against the Banks arising out of
      or
      related to the Loan; and, if and to the extent (if any) that the Borrowers
      or
      any of them have or may have any such existing claim (whether known or unknown),
      the Borrower do each hereby forever release and discharge, in all respects,
      the
      Banks with respect to such claim.

     

    (e)  The
      Loan
      Documents, as amended by this Amendment, are valid, genuine, enforceable in
      accordance with their respective terms, and in full force and
      effect.

     

    SECTION
      II -- LOAN AGREEMENT AMENDMENTS

     

    1.  The
      following definitions shall be added to Section 1.1 of the Loan Agreement in
      alphabetical order:

     

    (a) “Trust
      Preferred Facility” means the Trust Preferred Securities guaranteed by DGC in
      the aggregate original principal amount of $30,000,000.

     

     

    
      
        4

      

      
         

        
          

        

      

      
         

      

    

     

    2.  Section
      6.11 of the Loan Agreement (as set forth in the Sixth Amendment to Eighth
      Amended and Restated Loan Agreement) shall be deleted in its entirety and the
      following inserted in lieu thereof:

     

    “6.11 Minimum
      Consolidated Net Income.
      Maintain, beginning December 31, 2006, as to DGC on a consolidated basis, on
      a
      rolling four (4) quarter basis, as of the end of each fiscal quarter net income
      after taxes (GAAP basis) of at least Twenty-Four Million Dollars
      ($24,000,000.00).”

     

    III.
      MISCELLANEOUS

     

    1.  All
      terms
      and provisions of the Loan Agreement, as heretofore amended, which are
      inconsistent with the provisions of this Amendment are hereby modified and
      amended to conform hereto; and, as so modified and amended, the Loan Agreement
      is hereby ratified, approved and confirmed. Except as otherwise may be expressly
      provided herein, this Amendment shall become effective as of the date set forth
      in the initial paragraph hereof.

     

    2.  All
      references in all Loan Documents (including, but not limited to, the New Notes,
      the Security Agreement, and the Loan Agreement) to the "Loan Agreement" shall,
      except as the context may otherwise require, be deemed to constitute references
      to the Loan Agreement as amended hereby. All references in the Loan Documents
      (including, but not limited to, the Security Agreement and the Loan Agreement)
      to the "Notes" shall, except as the context may otherwise require, be deemed
      to
      constitute references to the Notes as such term is defined herein.

     

    3.  MidFirst
      Bank joins herein solely for the purpose of terminating its Facility Commitment
      as of November 22, 2006 and withdrawing, on such date, as a Bank under the
      Loan
      Agreement and related documents. 

     

    4.  Regions
      Bank joins herein solely for the purpose of terminating its Facility Commitment
      as of November 22, 2006 and withdrawing, on such date, as a Bank under the
      Loan
      Agreement and related documents.  

     

    5.  Exhibit
      “B” to the Loan Agreement, as set forth in the Eighth Amendment, is hereby
      deleted in its entirety, and the schedule attached hereto marked Revised Exhibit
      “B” shall be inserted in lieu thereof. 

     

    6.  Exhibits
      "E" and "H" to the Loan Agreement, as set forth in the Eight Amendment, are
      hereby deleted in their entirety, and the schedules attached hereto marked
      Revised
      Exhibit "E" and
      Revised Exhibit "H"
      shall be
      inserted in lieu thereof.

     

    

     

    [SEPARATE
      SIGNATURE PAGES FOLLOW]

     

    

    
      
        
           

          

          5

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    SIGNATURE
      PAGE

    TO

    TENTH
      AMENDMENT TO EIGHTH AMENDED AND RESTATED LOAN AGREEMENT

     

    
      
        

      

     

    IN
      WITNESS WHEREOF, the Borrowers, the Guarantors, the Banks and the Agent have
      caused this Amendment to be executed by their duly authorized officers, all
      as
      of the day and year first above written.

     

    BORROWERS:

     

    

     

    DIRECT
      GENERAL FINANCIAL SERVICES, 

    INC.,
      a
      Tennessee corporation

     

    By:
      /s/Brian
      G. Moore

    Brian
      G.
      Moore, President

     

    DIRECT
      GENERAL PREMIUM FINANCE 

    COMPANY,
      a
      Tennessee corporation

     

    By:
      /s/Brian
      G. Moore 

    Brian
      G.
      Moore, President

     

    
GUARANTORS:

     

    DIRECT
      GENERAL CORPORATION,

    a
      Tennessee corporation

     

    By:/s/William
      J. Harter

    William
      J. Harter, 

     Senior
      Vice-President 

     

    DIRECT
      GENERAL INSURANCE AGENCY, 

    INC.,
      a
      Tennessee corporation

     

    By:
      /s/William
      J. Harter

    William
      J. Harter, 

     Senior
      Vice-President 

     

     

    [SIGNATURE
      PAGE CONTINUED]

     

    
      
         

        Exhibit
          "B"
          -
          2

         

         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DIRECT
      GENERAL INSURANCE AGENCY, 

    INC.,
      an
      Arkansas corporation

     

    By:
      /s/William
      J. Harter

    William
      J. Harter, 

     Senior
      Vice-President 

     

    DIRECT
      GENERAL INSURANCE AGENCY, 

    INC.,
      a
      Mississippi corporation

     

    By:
      /s/William
      J. Harter

    William
      J. Harter,

     Senior
      Vice-President 

     

    DIRECT
      GENERAL INSURANCE AGENCY 

    OF
      LOUISIANA, INC.,
      a
      Louisiana corporation

     

    By:
      /s/William
      J. Harter

    William
      J. Harter,

     Senior
      Vice-President 

     

    DIRECT
      GENERAL AGENCY OF 

    KENTUCKY,
      INC.,
      a
      Kentucky corporation

     

    By:
      /s/William
      J. Harter

    William
      J. Harter,

     Senior
      Vice-President 

     

    DIRECT
      ADJUSTING COMPANY, INC.,

    a
      Tennessee corporation

     

    By:/s/J.
      Todd Hagely

    J.
      Todd
      Hagely, 

     Senior
      Vice-President and Chief Financial Officer

     

    DIRECT
      ADMINISTRATION, INC.,

    a
      Tennessee corporation

     

    By:/s/J.
      Todd Hagely

    J.
      Todd
      Hagely, 

     Senior
      Vice-President and Chief Financial Officer

     

     

    [SIGNATURE
      PAGE CONTINUED]

     

    
      
         

        Exhibit
          "B"
          -
          2

         

         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DIRECT
      GENERAL INSURANCE AGENCY, 

    INC.,
      a
      Texas
      corporation

     

    By:
      /s/William
      J. Harter

    William
      J. Harter, 

     Senior
      Vice-President 

     

    DIRECT
      GENERAL CONSUMER 

    PRODUCTS,
      INC.,
      a
      Tennessee corporation

     

    By:/s/J.
      Todd Hagely

    J.
      Todd
      Hagely, President

     

     

    BANKS:

     

    FIRST
      TENNESSEE BANK NATIONAL 

    ASSOCIATION

     

    By:/s/Sam
      Jenkins

    Title:
      Senior Vice President 

     

    CAPITAL
      ONE, N.A.

     

    By:/s/Janet
      Rack

    Title:
      Senior Vice President

     

    U.S.
      BANK NATIONAL ASSOCIATION 

     

    By:___________________________________

    Title:__________________________________

     

    CAROLINA
      FIRST BANK

     

    By:___________________________________

    Title:__________________________________

     

    JPMORGAN
      CHASE BANK, N.A. 

     

    By:/s/Robert
      Bond 

    Title:
      Senior Vice President

     

     

    [SIGNATURE
      PAGE CONTINUED]

     

    
      
         

        Exhibit
          "B"
          -
          2

         

         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REGIONS
      BANK 

     

    By:/s/Nathan
      Raines

    Title:
      Senior Vice President

     

    NATIONAL
      CITY BANK OF KENTUCKY

     

    By:/s/
      Kevin Anderson

    Title:
      Senior Vice President

     

    FIFTH
      THIRD BANK, N.A. (Tennessee)

     

    By:/s/Justin
      Fontenont

    Title:
      Officer

     

    MIDFIRST
      BANK

     

    By:/s/Shawn
      Brewer

    Title:
      Vice President

     

     

    AGENT:

     

    FIRST
      TENNESSEE BANK NATIONAL 

    ASSOCIATION

     

    By:/s/Sam
      Jenkins

    Title:
      Senior Vice President

     

    

     

    
      
        
           

          Exhibit
            "B"
            -
            2

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    REVISED
      EXHIBIT "B"

     

    FACILITY
      COMMITMENTS OF THE BANKS

     

    AS
      OF
      NOVEMBER 22, 2006

     

    Revolving
      Facility Commitments

    

     

    
      	
              First
                Tennessee Bank National Association

            	 	
              $

            	
              40,000,000.00*

            	 
	
              Capital One

            	 	 	
              20,000,000.00

            	 
	
              U.
                S. Bank National Association

            	 	 	
              30,000,000.00

            	 
	
              Regions
                Bank

            	 	 	
              -0-

            	 
	
              Carolina
                First Bank

            	 	 	
              30,000,000.00

            	 
	
              National
                City Bank

            	 	 	
              15,000,000.00

            	 
	
              Fifth
                Third Bank

            	 	 	
              10,000,000.00

            	 
	
              JPMorgan
                Chase Bank, N.A.

            	 	 	
              35,000,000.00

            	 
	
              MidWest
                Bank

            	 	 	
              -0-

            	 
	
              TOTAL:

            	 	
              $

            	
              180,000,000.00

            	 
	 	 	 	 	 

    

    

    * Includes
      $30,000,000.00 Swing Line Commitment of First Tennessee Bank National
      Association.

     

    

     

    AS
      OF
      JANUARY 1, 2007

     

    Revolving
      Facility Commitments

    

     

    
      	
              First
                Tennessee Bank National Association

            	 	
              $

            	
              40,000,000.00*

            	 
	
              Capital One

            	 	 	
              25,000,000.00

            	 
	
              U.
                S. Bank National Association

            	 	 	
              30,000,000.00

            	 
	
              Carolina
                First Bank

            	 	 	
              30,000,000.00

            	 
	
              National
                City Bank

            	 	 	
              20,000,000.00

            	 
	
              Fifth
                Third Bank

            	 	 	
              15,000,000.00

            	 
	
              JPMorgan
                Chase Bank, N.A.

            	 	 	
              35,000,000.00

            	 
	
              TOTAL:

            	 	
              $

            	
              195,000,000.00

            	 
	 	 	 	 	 

    

    

    * Includes
      $30,000,000.00 Swing Line Commitment of First Tennessee Bank National
      Association.

     

    

    
 

     

    
      
        
           

          Exhibit
            "B"
            -
            2

          2100000-0
            12/18/2006

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    REVISED
      EXHIBIT "E"

     

    BORROWING
      BASE CERTIFICATE

     

    AS
      OF
      ____ DAY OF _______________, 20___

     

    

    
      	
              TOTAL
                RECEIVABLES FROM POLICYHOLDERS FOR PRIOR REPORT

            	
              $_______________

            
	
              ADD:

            	 
	
              New
                Contracts

            	
              $_______________

            
	
              LESS:

            	 
	
              Cash
                Payments

            	
              ($________________)

            
	
              TOTAL
                RECEIVABLES

              FROM
                POLICYHOLDERS FOR THIS REPORT:

            	
               

              $_______________

            
	
              LESS
                INELIGIBLE RECEIVABLES:

            	 
	
              Amounts
                Insured with Insurance Companies with an A.M. Best Rating 

              not
                in compliance with Section 8.13 of the Loan Agreement

            	
               

              ($_______________)

            
	
              Past
                Due Receivables (See clause (a)(iv) of definition of Eligible

              Receivables.)

            	
               

              ($_______________)

            
	
              Receivables
                in Ineligible States

            	
              ($_______________)

            
	
              Unearned
                Interest, Finance Charges or Service Charges

            	
              ($_______________)

            
	
              PLUS
                RECEIVABLES FROM INSURERS QUALIFYING UNDER 

              CLAUSE (b)
                OF DEFINITION OF "ELIGIBLE RECEIVABLES"

            	
               

              $_______________

            
	
              SUBTOTAL:
                Eligible Receivables (See Section 1.1)

            	
              $_______________

            
	
              TIMES
                ADVANCE RATE

            	
              x
                85%

            
	
              TOTAL
                AVAILABILITY

            	
              $_______________

            
	
              LESS
                LOAN OUTSTANDING  (not
                to exceed $180,000,000.00)

            	
              ($_______________)

            
	 	 
	
              NET
                LOAN AVAILABILITY

            	
              $_______________

            
	 	 

    

    The
      undersigned each certifies and warrants that the foregoing Borrowing Base
      Certificate is true and accurate, based upon the definitions set out in Sections
      1.1 and 1.2 of the Loan Agreement.

     

    DATED
      this ____ day of ___________________, 20__.

     

    DIRECT
      GENERAL FINANCIAL 

    SERVICES
      INC.

     

    By:_______________________________

    Title:______________________________

     

    DIRECT
      GENERAL PREMIUM 

    FINANCE
      COMPANY

     

    By:
      ________________________________

    Title:
      _______________________________

     

    

    
      
        
           

          Revised
            Exhibit "E"
            -
            1

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    REVISED
      EXHIBIT "H"

     

    COMPLIANCE
      CERTIFICATE

     

    The
      undersigned, the duly authorized officers of DIRECT GENERAL FINANCIAL SERVICES
      INC., a Tennessee corporation, DIRECT GENERAL PREMIUM FINANCE COMPANY, a
      Tennessee corporation (together, the "Borrower"), and DIRECT GENERAL
      CORPORATION, a Tennessee corporation ("DGC"), pursuant to that certain Eighth
      Amended and Restated Loan Agreement dated as of September 30, 2002, as
      subsequently amended (the "Loan Agreement"), among Borrower, DGC, other
      guarantors therein named, First Tennessee Bank National Association, Memphis,
      Tennessee, as agent and as bank ("Agent"), and the Banks named therein
      ("Banks"), certifies to said Agent and Banks, in accordance with the terms
      and
      provisions of said Loan Agreement, as follows:

     

    1.  All
      of the representations and warranties set forth in Section 5 of the Loan
      Agreement are and remain true and correct on and as of the date of this
      Certificate with the same effect as though such representations and warranties
      had been made on and as of this date.

     

    2.  As
      of the date hereof, the Borrower and DGC are in full compliance with all of
      the
      terms and provisions set forth in the Loan Agreement and all of the instruments
      and documents executed in connection therewith, and no Event of Default, as
      specified in Section 8 of the Loan Agreement, nor any event which, upon
      notice, lapse of time or both, would constitute an Event of Default, has
      occurred or is continuing.

     

    3.  As
      used herein, the term "Affiliated Insurers" shall have the meaning ascribed
      thereto in the Loan Agreement. 

     

    4.
      As of
      _________________, 20__ (the date of the most recent financial statement
      furnished by Borrower and Affiliated Insurers to Agent), the ratios listed
      in
      the Loan Agreement are as follows:

     

    
      	 	 	
              ACTUAL

            	
              COVENANT

            
	
              AFFIRMATIVE
                COVENANTS (AS TO BORROWER):

            	 	 
	
              Section
                6.13

            	
              Tangible
                Net Worth 

            	
              ____________

            	
              >$9,500,000

            
	
              Section
                6.14

            	
              Ratio
                of Eligible Receivables to Debt

            	
              ____________

            	
              >1.05:1.00

            
	
              Section
                6.15

            	
              Ratio
                of Unearned Premiums to Loan Amount

            	
              ____________

            	
              >1.1:1.0

            
	
              AFFIRMATIVE
                COVENANTS (AS TO DGC):

            	 	 
	
              Section
                6.11

            	
              Minimum
                Consolidated Net Income

            	
              ____________

            	
              >$24,000,000

            
	
              Section
                6.12

            	
              Loan
                Amount to Net Worth

            	
              ____________

            	
              <1.75:1.00

            
	
              Section
                6.13

            	
              Tangible
                Net Worth

            	
              ____________

            	
              >$200,000,000**

            
	
              Section
                6.16

            	
              Debt
                Service Coverage

            	
              ____________

            	
              >1.50:1.00

            

    

     

     

    
 

    
      
         

        Exhibit
          "H"
          -
          1

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              EVENTS
                OF DEFAULT AS MEASURED ON AFFILIATED INSURERS: 

            
	 
	
              Section
                8.4

            	
              Capital
                Adequacy Ratio

            	
              ____________

            	
              Event
                of Default if 

              ≥4.00
                to 1.00

            
	
              Section
                8.5

            	
              Liquidity
                Ratio

            	
              ____________

            	
              Event
                of Default if 

              <1.0:1.0

            
	
              Section
                8.6

            	
              Minimum
                Capital Surplus

            	
              ____________

            	
              Event
                of Default if 

              <$150,000,000.00

            
	
              Section
                8.8

            	
              Risk
                Based Capital*

            	
              ____________

            	
              Event
                of Default if 

              <250%

            

    

    

    
      	
              FUNDED
                DEBT / EBITDA CALCULATION:

            
	
              -
                Funded Debt / EBITDA Ratio: (Choose one)

            
	
              _______

            	
              Greater
                than 2.0 to 1.0

            	
              (Actual
                Ratio:_________________)

            
	
              _______

            	
              Less
                than 2.0 to 1.0

            	
              (Actual
                Ratio:_________________)

            

    

     

    *
      Measured Annually

     

    **
      Adjusted as provided in Section 6.13.

     

    The
      undersigned certify and warrant that the foregoing ratios have been computed
      from the figures contained in Borrower's, DGC's and Affiliated Insurers'
      financial statement of the date hereinabove indicated, based upon the
      definitions set out in Sections 1.1, 1.2 and 1.3 of the Loan
      Agreement.

     

    DATED
      this ____ day of ______________________, 20__.

     

    DIRECT
      GENERAL FINANCIAL 

    SERVICES
      INC.

     

    By:________________________________

    Title:_______________________________

     

    DIRECT
      GENERAL PREMIUM 

    FINANCE
      COMPANY

     

    By:
      _______________________________

    Title:
      ______________________________

     

    DIRECT
      GENERAL CORPORATION

     

    By:________________________________

    Title:______________________________

     

     

     

     

    
 

    

    Exhibit
      "H"  -  2

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