AMENDMENT No. 4 TO SECURED LOAN AGREEMENT
Exhibit 10.4
AMENDMENT No. 4 TO SECURED LOAN AGREEMENT
AMENDMENT TO SECURED LOAN AGREEMENT (this “Amendment”) dated as of June 1, 2008 among WESTLB
AG, NEW YORK BRANCH (the “Lender”), U.S. BANK NATIONAL ASSOCIATION, a national banking
association (the “Collateral Agent” and “Securities Intermediary”), LEAF EQUIPMENT
LEASING INCOME FUND III, L.P., a Delaware limited partnership (“LEAF” or the
“Seller”), LEAF FINANCIAL CORPORATION, a Delaware corporation (the “Servicer”),
LEAF FUNDING INC., a Delaware corporation (the “Originator”) and LEAF FUND III, LLC, a
Delaware limited liability company (the “Borrower”).
W I T N E S S E T H:
WHEREAS, the parties hereto are parties to the Secured Loan Agreement, dated as of June 19,
2007 (as modified, amended or supplemented from time to time, the “Secured Loan
Agreement”);
WHEREAS, pursuant to Section 14.04 of the Secured Loan Agreement, the parties hereto wish to
amend the Secured Loan Agreement and hereby agree that the Secured Loan Agreement is hereby
amended; and
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:
SECTION 1. Definitions.
(a) Whenever used in this Amendment, capitalized terms used and not otherwise defined
herein shall have the meanings set forth in Appendix A to the Secured Loan Agreement.
(b) Any term that relates to a document or a statute, rule, or regulation includes any
amendments, modifications, supplements, or any other changes that may have occurred since
the document, statute, rule, or regulation came into being, including changes that occur
after the date of this Amendment.
SECTION 2. Amendments.
(a) The definition of Senior Leverage Ratio in Appendix A shall be struck in its
entirety and replaced with:
“Senior Leverage Ratio” means, with respect to LEAF, the result obtained by
dividing LEAF’s Combined Recourse Debt by LEAF’s Adjusted Partner’s Capital. For such
determination, “Combined Recourse Debt” means all of LEAF’s debts and liabilities, but
excluding third party accounts payable, accrued expenses, non-recourse debt, SFAS 133/138
adjustments (if any), and intercompany obligations less applicable cash then on the
deposit in the “Lockbox Account”, and “Adjusted Partner’s Capital” means partner’s capital
(in accordance with GAAP with no adjustment for other
comprehensive income accounted for pursuant to SFAS 133/138) plus “Due to General
Partner” plus subordinated debt, if any. For such determination (including Section
7.02(jj)), “Due to General Partner” means amounts, as set forth in the financial statements
of LEAF, that are due to LEAF Financial Corporation and its affiliates, as general partner
of LEAF, for management fees and expenses due for servicing the Securitized Portfolio in
addition to amounts LEAF Financial Corporation has paid for property taxes due on the
Securitized Portfolio that have been billed to Customers.
SECTION 3. Effective Date. The effective date of this Amendment shall be the date
hereof.
SECTION 4. Representations and Warranties.
Borrower, LEAF and Servicer each hereby severally certifies as to itself that its respective
representations and warranties set forth in Article VI of the Secured Loan Agreement (and any other
representations and warranties made by Borrower, LEAF or Servicer in the Secured Loan Agreement)
are true and correct on the date hereof with the same force and effect as if made on the date
hereof, except to the extent such representations and warranties speak specifically to an earlier
date in which case they shall have been true and correct on such date. In addition, Borrower, LEAF
and Servicer each severally represents and warrants (which representations and warranties shall
survive the execution and delivery hereof) that (a) no unwaived Facility Termination Event or Event
of Default (nor any event that but for notice or lapse of time or both would constitute an unwaived
Facility Termination Event or Event of Default) shall have occurred and be continuing as of the
date hereof nor shall any unwaived Facility Termination Event or Event of Default (nor any event
that but for notice or lapse of time or both would constitute an unwaived Facility Termination
Event or Event of Default) occur due to this Amendment becoming effective, (b) Borrower, LEAF and
Servicer each has the power and authority to execute and deliver this Amendment and has taken or
caused to be taken all necessary actions to authorize the execution and delivery of this Amendment,
(c) no consent of any other person (including, without limitation, members or creditors of
Borrower, LEAF or Servicer), and no action of, or filing with any governmental or public body or
authority is required to authorize, or is otherwise required in connection with the execution and
performance of this Amendment, other than such that have been obtained, (d) the Secured Loan
Agreement, as amended by this Amendment, constitutes the legal, valid and binding obligation of
Servicer, LEAF and the Borrower, enforceable against them in accordance with its terms except as
the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization and
other similar laws of general application affecting creditors’ rights generally and by general
principles of equity (whether such enforceability is considered in a proceeding in equity or law),
and (e) the execution, delivery and performance of this Amendment will not violate any provision of
any existing law or regulation or any order or decree of any court, regulatory body or
administrative agency or the certificate of formation or the limited liability company agreement of
Servicer, LEAF or Borrower or any material indenture, agreement, mortgage, deed of trust or other
instrument to which Servicer, LEAF or the Borrower is a party or by which it is bound.
SECTION 5. Ratification. Upon execution of this Amendment, the Secured Loan Agreement
shall be amended in accordance herewith, and the respective rights, limitations,
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obligations, duties, liabilities and immunities of the parties shall hereafter be determined,
exercised and enforced subject in all respects to such amendments, and the terms of this Amendment
shall be a part of the Secured Loan Agreement for any and all purposes. Except as modified and
expressly amended by this Amendment, the Amendment is in all respects ratified and confirmed, and
all the terms, provisions and conditions thereof shall be and remain in full force and effect.
SECTION 6. GOVERNING LAW. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE INTERNAL LAWS OF THE STATE
OF NEW YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAW PRINCIPLES THEREOF.
SECTION 7. Counterparts. For the purpose of facilitating the execution of this
Amendment and for other purposes, this Amendment may be executed simultaneously in any number of
counterparts, each of which shall be deemed to be an original and together shall constitute and be
one and the same instrument.
SECTION 8. Severability of Provisions. If any one or more of the provisions or terms
of this Amendment shall be for any reason whatsoever held invalid, then such provisions or terms
shall be deemed severable from the remaining provisions or terms of this Amendment and shall in no
way affect the validity or enforceability of the other provisions or terms of this Amendment.
SECTION 9. Amendment. This Amendment may be amended or modified from time to time by
the parties hereto, but only by an instrument in writing signed by each of the parties hereto.
SECTION 10. Headings. The Section headings are not part of this Amendment and shall
not be used in its interpretation.
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year
first above written.
| LEAF FUND III, LLC, as Borrower |
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| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | Vice President | |||
| LEAF EQUIPMENT LEASING INCOME FUND III, L.P., as Seller |
||||
| By: | LEAF ASSET MANAGEMENT LLC, as General Partner |
|||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | President, COO | |||
| LEAF FINANCIAL CORPORATION, as Servicer |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | President, COO | |||
| LEAF FUNDING INC., as Originator |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | Senior Vice President | |||
| U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent and Securities Intermediary |
||||
| By: | /s/ Xxxxx X. Xxxxxxxx | |||
| Name: | Xxxxx X. Xxxxxxxx | |||
| Title: | Vice President | |||
| WESTLB AG, NEW YORK BRANCH, as Lender |
||||
| By: | /s/ Xxxxxxx X. Xxxxx | |||
| Name: | Xxxxxxx X. Xxxxx | |||
| Title: | Executive Director | |||
| By: | /s/ Xxxxxxxxx Xxxxxx | |||
| Name: | Xxxxxxxxx Xxxxxx | |||
| Title: | Director | |||
