Document:

Exhibit

Exhibit 10.2

Form of
EMPLOYEE RESTRICTED STOCK UNIT AWARD AGREEMENT
 
THIS EMPLOYEE RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”) is made and entered into effective as of [_______, 20__] (the “Effective Date”), by and between BNC Bancorp, a North Carolina corporation (the “Company”), and [Name of Employee] (“Participant”).
WHEREAS, the Company is the holding company of the Bank of North Carolina (the “Bank”), a state chartered commercial bank, and the BNC Bancorp 2013 Omnibus Stock Incentive Plan was approved by the Company’s board of directors and by its shareholders on May 21, 2013 and as it may be amended from time to time (the “Plan”);
WHEREAS, Participant is an employee of the Bank, and the Compensation Committee of the Board of Directors of the Company (the “Committee”), as administrator of the Plan, has determined that it is desirable and in the best interest of the Bank to grant a Restricted Stock Unit (“RSU”) award (the “Award”) for certain shares of the common stock of the Company (the “Common Stock”), under the Plan, to the Participant, subject to certain restrictions as specified below; and
WHEREAS, capitalized terms not otherwise defined herein shall have the same meaning given to such terms in the Plan.
NOW, THEREFORE, the Parties agree as follows:
1.Date of Award. The date of grant of the Award under this Agreement is [_______, 20__].  The Company has made this Award in consideration of the continued employment of the Participant.  The Participant is an employee of the Bank.

2.Award of Plan Shares. The Participant is awarded, no purchase price per share, a Restricted Stock Unit Award (as defined above, the “Award”) for an aggregate of [___] shares (the “Plan Shares”) of Common Stock, which Plan Shares may become vested and nonforfeitable as provided in Section 4 of this Agreement.  Prior to the issuance of the Plan Shares upon vesting of the Award (in whole or in part), the Award shall represent an unsecured obligation of the Company, payable (if at all) only from the Company’s general assets.

3.Representations, Warranties and Transfer Restrictions.

(a)Representations and Warranties. Participant makes and agrees to the representations and warranties, if any, attached hereto as Annex A.  The Committee may cause a legend to be placed on any certificate representing any of the Plan Shares to make appropriate reference to restrictions on transfer, as necessary.

(b)Securities Law and Regulations. The Participant agrees that the Plan Shares shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange or interdealer quotation system upon which the common stock is then listed and any other applicable 

federal or state securities laws, rules or regulations, and the Committee may cause a legend or legends to be placed on any certificate representing any of the Plan Shares to make appropriate reference to such restrictions.

(c)Other Transfer Restrictions. No portion of the Award or Plan Shares granted hereunder may be sold transferred, assigned, pledged or otherwise encumbered or disposed of by Participant until such portion of the Plan Shares shall become fully vested in accordance with Section 4 of this Agreement.  Notwithstanding the foregoing, Plan Shares may be transferred to satisfy tax obligations pursuant to Section 9 herein. 

4.Vesting and Delivery of Plan Shares.

(a)Vesting Schedule. Subject to the terms of the Plan and this Agreement, the Award and related Plan Shares shall vest and become nonforfeitable as set forth herein:

		
	(i)
	Provided that the Participant has been continuously employed by either the Company or the Bank from the Effective Date through the following vesting dates, [___] Plan Shares shall vest and be earned as follows: [___] Plan Shares on [_______, 20__]; [___] Plan Shares on [_______, 20__]; and [___] Plan Shares on [_______, 20__].   In the event that the employment of the Participant with the Company and/or the Bank terminates prior to vesting of all or a portion of the Plan Shares, the Award shall terminate with respect to such unvested Plan Shares, and the Award and such unvested Plan Shares shall be forfeited without the payment of any consideration therefor, and the Participant shall no rights with respect thereto.  

		
	(ii)
	The impact, if any, on vesting due to a Change in Control is governed by Section 10 of the Plan. 

(b)Delivery of Vested Plan Shares to the Participant.  The Award, if earned in accordance with the terms of this Agreement, shall be payable in whole shares Common Stock. The total number of Plan Shares that may be acquired upon vesting of the Award (or portion thereof) shall be rounded down to the nearest whole share.   A certificate or certificates for the Plan Shares subject to the Award or portion thereof shall be issued in the name of the Participant or his or her beneficiary (or, in the case of uncertificated shares, other written evidence of ownership in accordance with applicable laws, rules and regulations shall be provided) as soon as practicable after, and only to the extent that, the Award or portion thereof has vested and is distributable.  The Plan Shares (or any other benefit subject to the Award) shall, upon vesting of the Award be issued and distributed to the Participant (or his or her beneficiary) no later than the later of (a) the fifteenth (15th) day of the third month following the Participant’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture, or (b) the fifteenth (15th) day of the third month following the end of the Company’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture, or otherwise in accordance with Code Section 409A.  The parties agree to execute any further instrument and to take such action as may be reasonably necessary to carry out the intent of this Agreement.

5.Voting and Payment of Dividends.  The Participant shall not be deemed to be the holder of any Plan Shares subject to the Award and shall not have any dividend rights, voting rights or other rights as a shareholder unless and until (and only to the extent that) the Award has vested and certificates for 

such Plan Shares have been issued to him (or, in the case of uncertificated shares, other written evidence of ownership in accordance with applicable laws shall have been provided). 

6.Designation of Beneficiary. The Participant hereby designates the person(s) described on Annex B as the beneficiary or beneficiaries who shall be entitled to receive the vested Plan Shares and other assets, if any, distributable to the Participant upon his Death.  The Participant may, from time to time, revoke or change his beneficiary designation without the consent of any prior beneficiary, if any, by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant’s Death, and in no event shall it be effective as of a date prior to such receipt.

If no such beneficiary designation is in effect at the time of the Participant’s Death, or if no designated beneficiary survives the Participant, or if such designation conflicts with law, the Participant’s estate shall be deemed to have been designated his beneficiary and shall receive the vested Plan Shares and other assets, if any, distributable to the Participant upon his Death.  If the Committee is in doubt as to the right of any person to receive such distribution, the Committee may direct the Bank to retain the vested Plan Shares and other assets, without liability for any interest in respect thereof, until the rights thereto are determined, or the Committee may direct the transfer of such Plan Shares into any court of appropriate jurisdiction and such transfer shall be deemed a complete discharge of the obligations of the Bank, the Company and the Committee hereunder.
7.Effect of Award on Status of Participant. The fact that an Award has been made to the Participant under this Plan shall not confer on the Participant any right to continued employment or service with the Company, the Bank or an Affiliate thereof, nor shall it limit the right of the Company, the Bank or any Affiliate to terminate the employment or service of the Participant at any time without prior notice.

8.Impact of Award on Other Benefits of Participant. The value of the Plan Shares on the date of the Award or at the time the Plan Shares become vested shall not be includable as compensation or earnings for purposes of any other benefit plan offered by the Bank, the Company or any subsidiary thereof, other than any qualified employee benefit plan which provides that such value shall be included as compensation or earnings for purposes of such plans, unless the Committee determines otherwise.

9.Tax and Tax Withholding. Participant has reviewed with Participant’s own tax and financial advisors the federal, state and local tax consequences of this Agreement and receipt of the Plan Shares.  The Participant acknowledges that the Company shall require the Participant to pay the Company the amount of any tax or other amount required by any governmental authority to be withheld and paid over by the Company to such authority for the account of the Participant, and the Participant agrees, as a condition to the grant of the Award and delivery of the Plan Shares or any other benefit, to satisfy such obligations.  In satisfaction of such or other taxes, all vested Plan Shares distributed pursuant to this Agreement shall be subject to withholding by the Company to cover any applicable taxes.  The Participant expressly acknowledges and agrees to such withholding without regard to whether the Plan Shares may then be sold or otherwise transferred by the Participant.  The number of Plan Shares to be withheld shall have a fair market value as of the date that the amount of tax to be withheld is determined as nearly equal as possible to (but not exceeding) the amount of such obligations being satisfied.  

10.Notices. Any notices or other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been sufficiently given if delivered personally 

or three business days after deposit in the United States mail by Certified Mail, return receipt requested, properly addressed and postage prepaid, if to the Company, the Bank or the Committee, at the Bank’s principal office address at 3980 Premier Drive, High Point, North Carolina 27265; and, if to the Participant, at his last address appearing on the books of the Bank.  The Company and the Participant may change their address or addresses by giving written notice of such change as provided herein. Any notice or other communication hereunder shall be deemed to have been given on the date actually delivered or as of the third (3rd) business day following the date mailed as set forth above, as the case may be.

11.Construction Controlled by Plan. The Plan, a copy of which is attached hereto as Annex C, is incorporated herein by reference.  The Award and Plan Shares shall be subject to the terms and conditions of the Plan, and the Participant hereby assumes and agrees to comply with all of the obligations imposed upon the Participant in the Plan.  This Agreement shall be construed so as to be consistent with the Plan; and the provisions of the Plan shall be deemed to be controlling in the event that any provision hereof should appear to be inconsistent therewith.

12.Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid and enforceable under applicable law, but if any provision of this Agreement is determined to be unenforceable, invalid or illegal, the validity of any other provision or part thereof shall not be affected thereby and this Agreement shall continue to be binding on the parties hereto as if such unenforceable, invalid or illegal provision or part thereof had not been included herein.

13.Governing Law. Without regard to the principles of conflicts of laws, the laws of the State of North Carolina shall govern and control the validity, interpretation, performance and enforcement of this Agreement.

14.Modification of Agreement; Waiver. This Agreement may be modified, amended, suspended or terminated, and any terms, representations or conditions may be waived, but only by a written instrument signed by each of the parties hereto or their successors in interest.  No waiver hereunder shall constitute a waiver with respect to any subsequent occurrence or other transaction hereunder or of any other provision hereof.

15.Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their respective heirs, legatees, personal representatives, executors, and administrators, successors and assigns.

16.Entire Agreement. This Agreement and the Plan constitute and embody the entire understanding and agreement of the parties hereto and, except as otherwise provided hereunder, there are no other agreements or understandings, written or oral, in effect between the parties hereto relating to the matters addressed herein.

17.Counterparts. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

18.Non-Solicitation Covenant; Additional Forfeiture Terms.  In consideration of the Company’s grant of the Award as described in this Agreement, the Participant and the Company hereby agree to the following:

(a)During the Participant’s employment and the 12-month period following the Participant’s termination of employment for any reason (such period of employment and the 12-month period following termination of employment being referred to herein as the “Restricted Period”), the Participant shall not, directly or indirectly, (i) solicit or encourage any person to leave his or her employment with the Company or assist in any way with the hiring of any Company employee by any other business or (ii) induce or encourage any Client to enter into any business relationship with any person, firm, corporation or other business organization other than the Company, the Bank or any of their respective Affiliates relating to Banking Services or banking business of any type.  The Participant further expressly agrees that, in the event that the Participant breaches (as determined by the Committee in its discretion) the covenants contained in Section 18 herein, then the Participant shall forfeit the Award and any Plan Shares, whether vested or unvested, related to the Award, without the payment by the Company of any consideration for such Award or Plan Shares.  

(b)For purposes of this Section 18(a):

		
	(i)
	The term “Banking Services” means retail or commercial banking business, asset and trust management, wealth management, investment services and all other services customarily provided by banks or otherwise provided by the Company, the Bank or any of their respective Affiliates.

		
	(ii)
	The term “Client” means all persons, firms, corporations, entities or business organizations who are or were customers or clients of the Company, the Bank or any of their respective Affiliates and with whom the Participant had contact at any time during the two-year period prior to the Participant’s date of termination of employment.

(c)The Participant acknowledges that the Company would be irreparably injured by a violation of this Section 18 and the Participant or the Company, as applicable, agrees that the Company or the Participant, as applicable, in addition to any other remedies available to it for such breach or threatened breach (including but in no way limited to the rights of the Company described in Section 18(a) herein), shall be entitled, without posting a bond, to a preliminary injunction, temporary restraining order, or other equivalent relief, restraining the Participant or the Company (including its executive officers and directors), as applicable, from any actual or threatened breach of this Section 18. The Participant agrees not to urge in any action the claim or defense that an adequate remedy at law exists.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the Company has caused this instrument to be executed in its corporate name by its President, or one of its Executive Vice Presidents, and attested by its Secretary or one of its Assistant Secretaries, and its corporate seal to be hereto affixed; and each individual party hereto has hereunto set his hand and adopted as his seal the typewritten word “SEAL” appearing beside his name, all done this the day and year first above written.
BNC BANCORP

By:                                        
Name:    Richard D. Callicutt, II
Title:    President and CEO
ATTEST:

By:                                  
Assistant Secretary

[Corporate Seal]

PARTICIPANT

                          Date:              
(SEAL)   

ANNEX A
 
Representations and Warranties
Participant represents to the Company that:
(a)The Plan Shares were not offered or transferred to Participant by means of any form of general solicitation or general advertising, and in connection therewith, Participant did not: (i) receive or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar media or broadcast over television or radio whether closed circuit or generally available or (ii) attend any seminar meeting or industry investor conference whose attendees were invited by any general solicitation or general advertising.

(b)Participant has received a copy of the Plan and represents that he is familiar with the terms and provisions thereof, and hereby accepts the Plan Shares subject to all of the terms and provisions of the Plan except as otherwise specifically stated in this Agreement.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan.  Participant acknowledges that the Plan Shares may only be transferred or otherwise disposed of pursuant to (i) a registration statement on Form S-8 upon delivery of a resale prospectus to the recipient of the Plan Shares, as long as Participant is an affiliate of the Company, (ii) an effective registration statement under the Securities Act of 1933, as amended (the “Act”), or (iii) pursuant to an exemption from registration under the Act.

(c)Participant acknowledges that he must therefore hold the Plan Shares indefinitely unless a subsequent disposition of the Plan Shares is permitted under the terms of this Agreement.

(d)Participant acknowledges that, given the restrictions on transfer acknowledged above, he is able to bear the economic risk of holding the Plan Shares for an indefinite period of time and can afford a complete loss of the value of the Plan Shares.

(e)Participant agrees and acknowledges that the Company may, if it so desires and subject to Section 3 of this Agreement, permit the transfer of the Plan Shares out of Participant’s name only when Participant’s request for transfer is accompanied by an opinion of counsel reasonably satisfactory to the Company and its counsel that neither the sale nor the proposed transfer results in violation of the Act or any state securities or “blue sky” laws (collectively, “Securities Laws”).  Participant agrees to hold the Company and its directors, officers, agents and controlling persons and their respective heirs, representatives, successors and assigns harmless and to indemnify them from and against all liabilities, costs and expenses incurred by them as a result of any misrepresentation made by Participant contained herein or any sale or distribution by Participant in violation of the Securities Laws.

(f)Participant represents that the receipt of the Plan Shares by Participant will not result in the violation by Participant of any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental authority to or by which Participant is bound, including, without limitation, United States laws and other laws that may be applicable to Participant and will not conflict with, or result in a material breach or violation of, any of the terms or provisions of, or constitute (with due notice or lapse of time or both) a material default under, any material lease, loan agreement, mortgage, security agreement, trust indenture or other agreement or instrument to which Participant is a party or by which Participant is bound or to which Participant’s material properties or assets is subject, nor result in the creation or imposition of any lien upon any of the material properties or assets of Participant.

(g)Participant acknowledges and agrees that this Agreement is not a contract of employment and that nothing in this Agreement shall confer upon Participant any right with respect to continuation of service to or employment by the Company or the Bank, nor shall it interfere in any way with his right or the Company’s or the Bank’s right to terminate his service to or employment by the Company or the Bank at any time, with or without cause.

(h)Participant hereby accepts this Agreement subject to all of the terms and provisions hereof.  Participant has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of the Agreement.

(i)Participant acknowledges that the Company and its counsel are entitled to rely on the representations made above.

ANNEX B
 
BNC Bancorp 2013 Omnibus Stock Incentive Plan
Beneficiary Designation Form
 
As beneficiary to receive any shares of stock distributable on my behalf pursuant to the BNC Bancorp 2013 Omnibus Stock Incentive Plan, I hereby designate the following:
Name            Address        Relationship
	
		
	Primary Beneficiary:
	

	Contingent Beneficiary: (if any)
	

If more than one primary beneficiary is named, shares will be paid in equal shares to surviving primary beneficiaries.  Should the contingent beneficiaries be eligible to receive the benefits (i.e., all primary beneficiaries are deceased), such benefits will be paid in equal shares to such surviving contingent beneficiaries.
Name of Spouse if not given above:                                    

                                                    
Witness                    Participant

                                            
Date

ANNEX C
 
BNC Bancorp 2013 Omnibus Stock 
Incentive Plan
 
See Attached.Exhibit

Exhibit 10.1

THIRD AMENDMENT TO CREDIT AGREEMENT

This THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of July 15, 2015, among Orchard Acquisition Company, LLC, a Delaware limited liability company (the “Parent Borrower”) and Jefferies Finance LLC, as Administrative Agent for, and on behalf of, the Lenders (as defined below) (in such capacity, the “Administrative Agent”).

R E C I T A L S:

A.The Parent Borrower, J.G. Wentworth, LLC (“Holdings”), the lenders from time to time party thereto (the “Lenders”) and the Administrative Agent are parties to that certain Credit Agreement, dated as of February 8, 2013 (as amended by the First Amendment to Credit Agreement, dated as of May 31, 2013, the Second Amendment to Credit Agreement, dated as of December 6, 2013, and as further amended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”).

B.The Borrower wishes to amend the Credit Agreement to, among other things, modify Section 7.03 to permit Mortgage Financing Indebtedness (as defined below).

C.Accordingly, the Parent Borrower, Holdings, the Administrative Agent and the Lenders party hereto desire to amend the Credit Agreement pursuant to Section 11.12 thereof in order to modify certain provisions thereof in accordance with and subject to the terms and conditions set forth below.

Section 1    Definitions and Interpretation.

1.Definitions. Unless otherwise defined in this Amendment, capitalized terms used herein shall have the meanings given to them in the Credit Agreement.

2.Interpretation. This Amendment shall be construed and interpreted in accordance with the rules of construction set forth in Sections 1.02, 1.03 and 1.04 of the Credit Agreement.

Section 2    Amendment to Credit Agreement. As of the Third Amendment Effective Date, the Credit Agreement is hereby amended as follows:

1.Amendments to Section 1.01.

(a)Section 1.01 of the Credit Agreement is hereby amended by adding the following defined terms in proper alphabetical order:

“Mortgage Financing Assets” means any indebtedness and obligations of Persons from loans made, or the extension of credit to, such Persons for the acquisition of Real Property, all mortgages, deeds of trust, hypothecs, assignments of leases and rents, leasehold mortgages, debentures, legal charges or other security documents granting a Lien on such Real Property to secure the indebtedness and obligations of such
Persons, all contracts and contract rights and all guarantees or other obligations in respect of such indebtedness obligations and Real Property, all proceeds of such indebtedness, obligations and Real Property, including without limitation, servicing 

Exhibit 10.1

obligations, and other assets (including contract rights) which are the type customarily transferred in connection with the making of loans, or the extension of credit, to Persons for the acquisition of Real Property.

“Mortgage Financing Indebtedness” means Indebtedness of Mortgage Financing Subsidiaries, including, without limitation, Indebtedness secured by Mortgage Financing Assets, provided that such Indebtedness is not (i) guaranteed by Holdings or any of its Subsidiaries that is not a Non-Recourse SPE, a Mortgage Financing Subsidiary or a Securitization SPE and (ii) secured by the respective assets of the Company or any Subsidiary that is not a Non-Recourse SPE, a Mortgage Financing Subsidiary or a Securitization SPE (it being understood that customary repurchase obligations and indemnities related to breaches of representations or warranties shall not be deemed a guarantee or security).

“Mortgage Financing Subsidiary” means a Person (i) that is a direct or indirect Subsidiary of Holdings used solely to do any of the following (A) originate, hold title to or finance Mortgage Financing Assets, (B) enter into Mortgage Financing Indebtedness transactions and
(C) hold Capital Stock of a Person that engages in any of the activities set forth in subsections (B) and (C) above and (ii) neither Holdings nor any of its Subsidiaries that is not a Non- Recourse SPE, a Mortgage Financing Subsidiary or a Securitization SPE has any obligations to guarantee, maintain or preserve such Person’s financial condition or cause it to achieve certain levels of operating results.

“Third Amendment” means that certain Third Amendment to Credit Agreement, dated July 15, 2015 among the Parent Borrower and the Administrative Agent.

“Third Amendment Effective Date” has the meaning set forth in Section 3.1 of the Third Amendment, which shall be July 15, 2015.

“WestStar Acquisition” means the transactions contemplated by that certain Stock Purchase Agreement dated as of March 6, 2015, by and among The J.G. Wentworth Company, WestStar Mortgage, Inc., Walter F. Jones, Kathleen Murphy-Zimpel and Roger W. Jones.

(b)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Applicable Restricted Asset” in its entirety and replacing it with the following:
“Applicable Restricted Assets” means, (i) with respect to Securitizations and Securitization Indebtedness, assets securitized, Capital Stock of Applicable Restricted Entities and any Capital Stock pledged by Securitization SPEs, (ii) with respect to Non-Recourse Indebtedness, Non-Recourse Assets, Capital Stock of Non-Recourse SPEs and any Capital Stock pledged by Non-Recourse SPEs, (iii) with respect to SRI Indebtedness, SRI Assets, Capital Stock of Non-Recourse SPEs and any Capital Stock pledged by Non-Recourse SPEs, (iv) with respect to Mortgage Financing Indebtedness, Mortgage Financing Assets, Capital Stock of Mortgage Financing Subsidiaries and any Capital Stock pledged by Mortgage Financing Subsidiaries and (v) with respect to Business Indebtedness (other than Securitization Indebtedness, Non-Recourse Indebtedness and SRI Indebtedness), assets securing such other Business Indebtedness, Capital Stock of Applicable Restricted Entities and any Capital Stock pledged by Applicable Restricted 

Exhibit 10.1

Entities.

(c)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Applicable Restricted Entity” in its entirety and replacing it with the following:

“Applicable Restricted Entities” means, with respect to (i) Securitizations and Securitization Indebtedness, Securitization SPEs and Subsidiaries that are originators, purchasers or arrangers of the relevant securitized assets, (ii) with respect to Non-Recourse Indebtedness, Non-Recourse SPEs and Subsidiaries that are originators, purchasers or arrangers of the relevant Non-Recourse Assets, (iii) with respect to SRI Indebtedness, Non-Recourse SPEs and Subsidiaries that are originators, purchasers or arrangers of the relevant SRI Assets, (iv) with respect to Mortgage Financing Indebtedness, Mortgage Financing Subsidiaries and Subsidiaries that are originators, purchasers or arrangers of the relevant Mortgage Financing Assets and (v) with respect to Business Indebtedness (other than Securitization Indebtedness, Non-Recourse Indebtedness and SRI Indebtedness), Subsidiaries incurring or guaranteeing such other Business Indebtedness and Subsidiaries that are originators, purchasers or arrangers of the assets securing such other Business Indebtedness.

(d)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Business Indebtedness” in its entirety and replacing it with the following:

“Business Indebtedness” means collectively, the Securitization Indebtedness, the Non-Recourse Indebtedness, the SRI Indebtedness, the Financing Indebtedness, Mortgage Financing Indebtedness and the Installment Obligations.

(e)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Non-Recourse Indebtedness” in its entirety and replacing it with the following:
“Non-Recourse Indebtedness” means Indebtedness of Non-Recourse SPEs, other than SRI Indebtedness, which is not (i) guaranteed by Holdings or any of its Subsidiaries that is not a Non-Recourse SPE, a Mortgage Financing Subsidiary or  a Securitization SPE or (ii) secured by the respective assets of the Company or
any Subsidiary that is not a Non-Recourse SPE, a Mortgage Financing Subsidiary or a Securitization SPE (it being understood that customary repurchase obligations and indemnities related to breaches of representations or warranties shall not be deemed a guarantee or security).

(f)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Non-Recourse SPE” in its entirety and replacing it with the following:

“Non-Recourse SPE” means a Person that is a direct or indirect wholly owned special purpose Subsidiary of Holdings used solely for the purpose of effecting one or more Non- Recourse Indebtedness financings, Mortgage Financing Indebtedness financings or SRI Indebtedness financings; provided, in each case, that (i) such Person engages in no business other than the origination or acquisition, including from Holdings or any of its Subsidiaries, and related financing of Non-Recourse Assets, Mortgage Financing Assets or Sellers’ Retained Interests and, in each case, activities 

Exhibit 10.1

related thereto, (ii) such Person has no contract, agreement, arrangement or understanding with Holdings or any of its Subsidiaries that is not a Non-Recourse SPE, a Mortgage Financing Subsidiary or a Securitization SPE other than customary contracts, arrangements or agreements entered into with respect to the sale, purchase and servicing of Non-Recourse Assets, Mortgage Financing Assets or Sellers’ Retained Interests on market terms for similar transactions as determined in good faith by an Authorized Officer of the Parent Borrower and (iii) neither Holdings nor any of its Subsidiaries that is not a Non- Recourse SPE, a Mortgage Financing Subsidiary or a Securitization SPE has any obligations to guarantee, maintain or preserve such Person’s  financial condition or cause it to achieve certain levels of operating results.

(g)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Securitization” in its entirety and replacing it with the following:

“Securitization” means any transaction or series of transactions entered into by Holdings or any of its Subsidiaries pursuant to which Holdings or any of its Subsidiaries, as the case may be, sells, conveys or otherwise transfers (or purports to sell, convey or otherwise transfer), Securitization Assets and/or Mortgage Financing Assets, directly or indirectly, to a Securitization SPE which funds the purchase of such assets, in whole or in part, through the issuance of Securitization Indebtedness.

(h)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Securitization Indebtedness” in its entirety and replacing it with the following:
“Securitization Indebtedness” means notes, bonds or other debt instruments, beneficial interests in trusts, pass-through certificates or other ownership interests (including any fractional undivided interests) issued by a Securitization SPE and which are not (i) guaranteed by Holdings or any of its Subsidiaries that is not a Securitization SPE, a Mortgage Financing Subsidiary or a Non-Recourse SPE or (ii) secured by the assets of Holdings or any of its Subsidiaries, that is not a Securitization SPE, a Mortgage Financing Subsidiary or a Non-Recourse SPE (it being understood that customary repurchase obligations and indemnities related to breaches of representations or warranties shall not be deemed a guarantee or security).

(i)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Securitization SPE” in its entirety and replacing it with the following:

“Securitization SPE” means a Person (i) used solely for the purpose of effecting one or more Securitizations and which is restricted by contract or under its constitutive documents from engaging in business activities other than those related to such Securitizations and activities incidental thereto, (ii) which has no contract, agreement, arrangement or understanding with Holdings or any of its Subsidiaries that is not a Securitization SPE, Mortgage Financing Subsidiary or a Non-Recourse SPE other than customary contracts, arrangements or agreements entered into with respect to the sale, purchase and servicing of the assets of the entity on market terms for similar securitization transactions as determined in good faith by an Authorized Officer of the Parent Borrower and (iii) neither Holdings nor any of its Subsidiaries that is not a Securitization SPE, a Mortgage Financing Subsidiary or a Non-Recourse SPE has any 

Exhibit 10.1

obligations to guarantee, maintain or preserve such Person’s financial condition or cause it to achieve certain levels of operating results.

(j)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “SRI Assets” in its entirety and replacing it with the following:

“SRI Assets” means all Sellers’ Retained Interests, all collateral securing such Sellers’ Retained Interests, all contracts and contract rights and all guarantees or other obligations in respect of such Sellers’ Retained Interests, all proceeds of such assets and other assets (including contract rights) which are acquired, sold, transferred or otherwise conveyed or originated by Holdings, a Subsidiary, a Mortgage Financing Subsidiary or a Non-Recourse SPE, or which are otherwise the property of a Mortgage Financing Subsidiary or a Non- Recourse SPE, in each case, either (i) for the purpose of such Non-Recourse SPE or Mortgage Financing Subsidiary entering into SRI Indebtedness permitted by this Agreement or (ii) to the extent the originator, purchaser or arranger of such assets has entered into an agreement with a Non-Recourse SPE, Mortgage Financing Subsidiary or a Securitization SPE with respect to the origination, servicing, sale or financing of such Sellers’ Retained Interests.

(k)Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “SRI Indebtedness” in its entirety and replacing it with the following:

“SRI Indebtedness” means Indebtedness of Non-Recourse SPEs which (i) is secured by SRI Assets or Mortgage Financing Assets owned by a Non-Recourse SPE and (ii) is not (A) guaranteed by Holdings or any Subsidiary that is not a Non-Recourse SPE or a Securitization SPE or (B) secured by the respective assets of Holdings or any Subsidiary that is not a Non-Recourse SPE or a Securitization SPE (it being understood that customary repurchase obligations and indemnities related to breaches of representations or warranties shall not be deemed a guarantee or security).

(l)Section 1.01 of the Credit Agreement is hereby amended by deleting subsection (xi) of the definition of “Asset Sale” in its entirety and replacing it with the following:

“sales or dispositions of assets to Securitization SPEs, Mortgage Financing Subsidiaries and to Non-Recourse SPEs in connection with Securitizations and Non-Recourse Indebtedness, Mortgage Financing Indebtedness and SRI Indebtedness financings, respectively, provided that such Securitizations, Non-Recourse Indebtedness, Mortgage Financing Indebtedness and SRI Indebtedness financings and Asset Sales or other dispositions are effected on market terms as determined in good faith by an Authorized Officer of the Parent Borrower, and”

(m)Section 1.01 of the Credit Agreement is hereby amended by deleting subsection (xii) of the definition of “Asset Sale” in its entirety and replacing it with the following:

“sales or dispositions of Mortgage Financing Assets, lotteries, life contingents, loans, advances, life settlements and other assets to third parties”

(n)Section 1.01 of the Credit Agreement is hereby amended by deleting subsection 

Exhibit 10.1

(b) of the definition of “Specified Facilities” in its entirety and replacing it with the following:

“any Non-Recourse Indebtedness, Mortgage Financing Indebtedness or SRI Indebtedness”

(o)Section 1.01 of the Credit Agreement is hereby amended by deleting subsection (i) of the definition of “Indebtedness” in its entirety and replacing it with the following:
“all indebtedness of such Person for borrowed money and any obligations of such person to repurchase assets sold by such Person to another Person within a specified time frame or upon the occurrence of certain conditions;”

(p)Section 1.01 of the Credit Agreement is hereby amended by deleting the “.” at the end of the definition of “Excluded Subsidiary” and replacing it with the following:

“; and (m) any Mortgage Financing Subsidiary.

(q)Section 1.01 of the Credit Agreement is hereby amended by deleting the “.” at the end of the definition of “Permitted Acquisition” and replacing it with the following:

“; provided that, for the avoidance of doubt, the WestStar Acquisition is a Permitted Acquisition.”

2.Amendment to Section 7.03(x). Section 7.03(x) of the Credit Agreement is hereby amended by deleting Section 7.03(x) in its entirety and replacing it with the following:

(x)    Securitization    Indebtedness,    Non-Recourse    Indebtedness,    SRI Indebtedness and Mortgage Financing Indebtedness.

3.Amendment to Section 7.07(n). Section 7.07(n) of the Credit Agreement is hereby amended by deleting Section 7.07(n) in its entirety and replacing it with the following:

(n) Contractual Obligations that include customary restrictions and conditions contained in, or otherwise required by, agreements relating to Securitizations, Non-Recourse Indebtedness. Mortgage Financing Indebtedness and other Business Indebtedness permitted hereunder.

4.Amendment to Section 7.08(b). Section 7.08(b) of the Credit Agreement is hereby amended by inserting the following immediately after the term “Securitization Assets” therein:
“, Mortgage Financing Assets”

5.Amendment to Sections 8.01(g) and 8.01(h). Sections 8.01(g) and 8.01(h) of the Credit Agreement are hereby amended by inserting the following immediately after the term “Non-Recourse SPE” in each place it appears in each such section:

“, Mortgage Financing Subsidiary”

Section 3    Effectiveness.

1.Conditions Precedent. The effectiveness of the amendments set forth in Section 2 above 

Exhibit 10.1

shall be conditioned on the satisfaction of the following conditions precedent (such date
upon which all such conditions have been satisfied is referred to herein as the (the “Third Amendment Effective Date”)):

(a)this Amendment shall have been executed by the Parent Borrower and the Administrative Agent and Lenders constituting the Required Lenders shall have consented to this Amendment by executing a Lender Addendum in the form attached hereto as Attachment 1, and counterparts hereof and thereof as so executed shall have been delivered to the Administrative Agent;

(b)upon and after giving effect to this Amendment, all of the representations and warranties set forth in Section 4 below will be true and correct in all material respects;

(c)Guarantors shall have executed and delivered the reaffirmation of the Guaranty attached hereto as Attachment 1;

(d)the Parent Borrower shall have paid all reasonable legal fees and expenses of the Administrative Agent in connection with the preparation, negotiation and  execution of this Amendment, and any other documents being executed or delivered in connection therewith;

(e)the Parent Borrower shall have paid to Administrative Agent for the account of each Lender party hereto an amendment fee in the amount of 15 basis points of the principal amount of such Lenders’ outstanding Loans and Commitments, which amendment fee will be in all respects fully earned, due and payable on the Third Amendment Effective Date and non-refundable and non-creditable thereafter;

Section 4    Representations and Warranties. The Parent Borrower hereby represents and warrants to the Administrative Agent and the Lenders party hereto as follows:

1.Existence. It is a duly organized or formed and validly existing limited liability company in good standing under the laws of its jurisdiction of formation.

2.Power and Authority. It has the legal power and authority to execute and deliver this Amendment and perform its obligations hereunder.

3.No Contraventions. The execution and delivery of this Amendment and the performance and observance by the Parent Borrower of the provisions hereof will not (a) violate or contravene its Organizational Documents or any provision of any law, statute, rule, regulation, order, writ, injunction or decree of any Governmental Authority applicable to the Parent Borrower or its properties and assets or (b) conflict with or result in a breach or contravention of any provision of, or constitute a default under, any contract binding upon or enforceable against the Parent Borrower or any of its properties or assets.

4.Valid and Binding Agreement. This Amendment has been duly executed and delivered by the Parent Borrower. Upon satisfaction of the conditions set forth in Section 3.1 above, this Amendment shall constitute a valid and binding agreement of the Parent Borrower, enforceable against it in accordance with its terms, subject to the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally.

Exhibit 10.1

5.No Event of Default. (a) Immediately prior to the signing date with respect to the WestStar Acquisition and immediately after giving effect to such signing, no Event of Default had occurred and was continuing and (b) at the time of the consummation of the WestStar Acquisition, no Specified Event of Default shall have occurred or be continuing.

6.No Consents. No consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with this Amendment, or the execution, delivery, performance, validity or enforceability of this Amendment, except consents, authorizations, filings and notices which have been obtained or made and are in full force and effect.

Section 5    Miscellaneous.

1.Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

2.Survival of Representations and Warranties. All representations and warranties made hereunder shall survive the execution and delivery of this Amendment.

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

4.Headings. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

5.Loan Documents Unaffected. Each reference to the Credit Agreement in any Loan Document shall hereafter be construed as a reference to the Credit Agreement as amended hereby. This Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of any party under, the Credit Agreement or any other Loan Document. Except as herein otherwise specifically provided, all provisions of the Credit Agreement and the other Loan Documents, and the guarantees, pledges and grants of security interests, as applicable, under each of the Security Documents, are hereby reaffirmed and ratified and shall remain in full force and effect, shall continue to accrue to the benefit of the Secured Parties and shall be unaffected hereby. This Amendment is a Loan Document.

6.Expenses. As provided in and subject to the limitations of Section 11.01 of the Credit Agreement, the Parent Borrower agrees to pay all reasonable costs and expenses incurred by the Administrative Agent in connection with the preparation, negotiation, and execution of  this Amendment, including without limitation the reasonable costs and fees of the Administrative Agent’s legal counsel.
7.Entire Agreement. This Amendment, together with the Credit Agreement and the other Loan Documents, integrates all the terms and conditions mentioned herein or incidental hereto and supersedes all oral representations and negotiations and prior writings with respect to the subject matter hereof.

that:

Exhibit 10.1

		
	8.
	Acknowledgments. Each of Holdings and the Borrower hereby acknowledges

(a)it has been advised by counsel in the negotiation, execution and delivery of this Amendment and the other Loan Documents;

(b)neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to the Parent Borrower or any Credit Party arising out of or in connection with this Amendment or any of the other Loan Documents, and the relationship between the Administrative Agent and the Lenders, on one hand, and the Parent Borrower and the other Credit Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

(c)no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Parent Borrower and the Lenders.

9.Counterparts. This Amendment may be executed by the parties hereto separately in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same agreement. Transmission by a party to another party (or its counsel) via facsimile or electronic mail of a copy of this Amendment (or a signature page of this Amendment) shall be as fully effective as delivery by such transmitting party to the other parties hereto of a counterpart of this Amendment that had been manually signed by such transmitting party.

10.Governing Law. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE BORROWER AND HOLDINGS HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK GOVERNS THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS.

11.Jury Trial Waiver. EACH OF THE PARTIES TO THIS AMENDMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS (INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR
OTHER MODIFICATIONS RELATING TO ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

[SIGNATURE PAGE FOLLOWS.]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

Exhibit 10.1

ORCHARD ACQUISITION COMPANY, LLC

/s/ Stewart A. Stockdale
Chief Executive Officer

[Signature Page to Third Amendment]

Exhibit 10.1

JEFFERIES FINANCE LLC, as Administrative
Name:    
Title:

Exhibit 10.1

[Signature Page to Third Amendment]

REAFFIRMATION OF GUARANTY

By its execution and delivery of this reaffirmation (this “Reaffirmation of Guaranty”), each of the undersigned Guarantors hereby acknowledges and agrees to that certain Third Amendment to Credit Agreement dated as of July 15, 2015, among Orchard Acquisition Company, LLC, a Delaware limited liability company (the “Parent Borrower”) and Jefferies Finance LLC, as Administrative Agent for and on behalf of the Lenders (the “Amendment"; capitalized terms used without definition herein have the meanings set forth in the Amendment), and reaffirms the Guaranty dated as of February 8, 2013 among the Parent Borrower, J.G. Wentworth, LLC, the subsidiaries of the Parent Borrower party thereto, and Jefferies Finance LLC, as Collateral Agent thereunder, for the benefit of the Secured Creditors (as defined therein).

[SIGNATURE PAGE FOLLOWS.]

Exhibit 10.1

LENDER ADDENDUM

Reference is hereby made to the proposed Third Amendment to Credit Agreement dated as of July 15, 2015 (the “Amendment”), among Orchard Acquisition Company, LLC, a Delaware limited liability company and Jefferies Finance LLC, as Administrative Agent for and on behalf of the Lenders (including the undersigned), a copy of which is attached hereto. Capitalized terms used but not defined herein have the meanings assigned to them in the Amendment. By its signature below, the undersigned hereby consents as of this    day of July, 2015 to the amendments provided for in the proposed Amendment and authorizes the Administrative Agent to execute the Amendment on its behalf.

[LENDER], as a Lender
By:      Name:
Title:

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