Document:

Exhibit 10.2

 Exhibit 10.2 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN
AND SECURITY AGREEMENT, dated as of the 25th day of July, 2007, is made by and among FIRST NLC FINANCIAL SERVICES, LLC, a Florida limited liability
company (the “Borrower”), NLC HOLDING CORP., a Delaware corporation (“NLC Holding”), FNLC FINANCIAL SERVICES, INC, a Delaware corporation (“Lender NLC”, with NLC Holding and Lender NLC being
referred to collectively as the “Lenders” and individually as a “Lender”), FRIEDMAN, BILLINGS RAMSEY GROUP, INC., a Virginia corporation executing for the limited purpose of any fraud claims (“FBR”), and
NLC HOLDING CORP., a Delaware corporation, in its capacity as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”). 
 RECITALS 
 The Borrower has requested that the Lenders make Loans in an aggregate principal
amount of $75,000,000. 
 The Lenders severally, to the extent of their respective Commitments, as defined herein, have agreed to provide
severally such financing to the Borrower, subject to the terms and conditions of this Agreement. 
 Accordingly, for good and valuable
consideration, the receipt and sufficiency of which are acknowledged, the Lenders, the Administrative Agent and the Borrower agree as follows: 
 Section 1 Definitions; Construction 
 1.1 Definitions. As used in this Agreement, the following terms
shall have the meanings assigned to them below, which meanings shall be equally applicable to the singular and plural forms of the terms defined. 
 “Adjusted Tangible Net Book Value” shall mean he consolidated members’ equity of the Borrower prepared in accordance with GAAP using the same principles, procedures, policies, reserve calculations, methodologies and other
methods and practices that are described in Annex A. For the avoidance of doubt, Intangible Assets and deferred Taxes shall be deducted from Total Assets, both as defined in Annex A. 
 “Administrative Agent” shall have the meaning assigned to such term in the preamble to this Agreement. 
 “Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly, through one or more intermediaries,
controls or is controlled by, or is under common control with, such specified Person. The term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of common stock, by contract or otherwise. 
 “Agreement” means this Loan and Security Agreement, as the
same may be amended, modified or supplemented from time to time. 

 “Borrower” shall have the meaning assigned to such terms in the preamble to this Agreement.

 “Borrower Loan” means a Mortgage Loan of which the Borrower or any of its Subsidiaries is the sole beneficial owner and holder
of legal title and in which no other Person has any interest. 
 “Borrowing” means a borrowing consisting of Loans under this
Agreement. 
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized or
required to close under the laws of the State. 
 “Capital Expenditures” means, for any period, with respect to any Person, the
aggregate of all expenditures by such Person and its Subsidiaries for the acquisition of fixed or capital assets or additions to equipment (including replacements, capitalized repairs and improvements during such period) which should be capitalized
under GAAP on a consolidated balance sheet of such Person and its Subsidiaries. 
 “Capital Lease” means any lease that has been or
should be capitalized on the books of the lessee in accordance with GAAP. 
 “Capital Stock” means any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all security or evidence of Debt convertible into or
exchangeable for, or warrants, rights or options to purchase or acquire, any of the foregoing. 
 “Cash Equivalents” means
(a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States Government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from
the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank deposits having maturities of six months or less from the date of acquisition issued by any Lender or by any commercial bank
organized under the laws of the United States of America or any state thereof having combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody’s or carrying
an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally, and maturing within six months from the date of acquisition; (d) repurchase
obligations of any Lender or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than 30 days with respect to securities issued or fully guaranteed or insured by the United States
government; (e) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or Taxing Authority of any such
state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A by S&P or A by
Moody’s; (f) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any Lender or any commercial bank satisfying the 

  

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requirements of clause (b) of this definition; or (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying
the requirements of clauses (a) through (f) of this definition. 
 “Closing” means the initial disbursement of the Loans.

 “Closing Date” means the date on which the Loans are initially funded in accordance with Section 2.1 of this Agreement.

 “Closing Date Mortgage Loans” means all Mortgage Loans owned by the Borrower as of the day prior to the Closing Date.

 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and all regulations issued pursuant thereto.

 “Collateral” means the following properties, assets and rights (if any) of the Borrower and its Subsidiaries, wherever located,
whether now owned or hereafter acquired or arising, and all Proceeds (as defined in the UCC) and products thereof: all personal and fixture property of every kind and nature including without limitation (a) all Goods (including inventory,
equipment and all accessions thereto); (b) Instruments (including promissory notes); (c) Documents; (d) Accounts (including health-care-insurance receivables); (e) Chattel Paper (whether tangible or electronic); (f) all
Deposit Accounts, all cash and other property deposited therein from time to time and other monies and property in the possession or under the control of any Lender; (g) Letter-of-Credit Rights (whether or not the letter of credit is evidenced
by a writing); (h) commercial tort claims; (i) securities and all other Investment Property; (j) Supporting Obligations; (k) any other Contract rights or rights to the payment of money; (l) insurance claims and proceeds;
(m) tort claims; (n) all General Intangibles (including all payment intangibles and Intellectual Property(as defined below)); (o) Equipment; (p) Fixtures; (q) all other personal property whether or not subject to the UCC.
For purposes of this definition only, (A) except as otherwise noted above, the capitalized terms used in this definition shall have the meaning ascribed to such terms in the UCC, and (B) so long as any amounts remain outstanding under the
Mortgage Loan Repurchase Agreement dated as of March 11, 2005 (the “Loan Repurchase Agreement”), among Washington Mutual Bank, FBR, MHC I, Inc., First NLC, Inc., NLC, Inc. and Borrower, Collateral shall not include any of the
Repurchase Assets (as defined below) now owned or hereafter acquired by Washington Mutual Bank. “Repurchase Assets” means all Mortgage Loans purchased by Washington Mutual Bank pursuant to the Loan Repurchase Agreement, all related
Mortgage Notes, Takeout Commitments, servicing rights and other rights and privileges appurtenant thereto, the Custodial Account, and all proceeds of any of the foregoing (all capitalized used in this sentence shall have the meanings given to such
terms in the Loan Repurchase Agreement). 
 “Commitment” means (a) as to NLC Holding, an amount equal to $60,000,000, and
(b) as to Lender NLC, an amount equal to $15,000,000. 
 “Contract” means any written or oral contract, agreement, lease,
instrument, or other document or commitment, arrangement, undertaking, practice, or authorization (including all amendments, supplements, and modifications thereto) that is binding on any Person or its property under any applicable law. 

 

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 “Conversion Date” means the date on which the Loans have been converted into Equity pursuant to
Section 2.2(b) of the Recapitalization Agreement or Section 2.1 of the Loan Agreement. 
 “Correspondent Agreement” means
any Contract, as amended and modified, for the acquisition of any Mortgage Loan originated or brokered by or to the Borrower or any of its Subsidiaries, including all investor guides, manuals, handbooks, bulletins, circulars, announcements,
issuances, releases, letters, correspondence and other instructions applicable to such Contracts. 
 “Customer” means any Person
obligated to make payments with respect to the Collateral. 
 “Debt” means, collectively, and includes, without duplication, with
respect to any specified Person, (a) indebtedness or liability for borrowed money or issued in substitution or exchange for indebtedness for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of assets to
another Person subject to an understanding or agreement, contingent or otherwise, to repurchase such assets from such Person) or for the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of
business); (b) obligations as a lessee or obligor under a Capital Lease or a Synthetic Lease; (c) obligations, contingent or otherwise, to reimburse the issuer of letters of credit or acceptances; (d) all Guaranties; (e) net
obligations under Hedging Agreements; (f) obligations under any foreign exchange contract, currency swap or other similar agreements or arrangements designed to protect that Person against fluctuations in currency values; (g) all preferred
stock or similar equity interests issued by such Person which by the terms thereof could be (at the request of the holders thereof or otherwise) subject to mandatory sinking fund payments, redemption or acceleration at any time during the term of
this Agreement; (h) the amount of contingent obligations of such Person incurred in connection with acquisitions (including, without limitation, obligations to make earnout payments or other contingent payments), in each case determined in
accordance with GAAP, (i) obligations secured by any Lien on property owned by the specified Person, whether or not the obligations have been assumed, (j) all obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments, (k) all payment obligations of such Person to former owners of businesses which were acquired by such Person which are in the nature of deferred purchase price or earn-out, (l) Off-Balance Sheet Liabilities,
(m) any commitment by which a Person ensures a creditor against loss, and (n) any interest, principal, prepayment penalty, fees, or expenses to the extent paid in respect of those items listed in clauses (a) through (m) of this
definition. The Debt of any Person shall include the Debt of any partnership or joint venture in which such Person is a general partner or a joint venturer, except to the extent that the terms of such Debt provide that such Person is not liable
therefor. 
 “Default” means any condition or event that, with the giving of notice, the lapse of time, or both, would constitute
an Event of Default. 
  

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 “Disposition” means with respect to any assets, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof; and the terms “Dispose” and “Disposed of” shall have correlative meanings. 
 “Distribution” means the payment or other direct or indirect dividend or distribution of cash, stock or any other assets by any of the Borrower or any of its Subsidiaries to any of their respective
equityholders in their capacity as equityholders. 
 “Dollars” and “$” means the lawful currency of the United States of
America. 
 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by or with any Governmental Body, relating in any way to the environment, preservation or reclamation of natural resources, to health and safety matters and/or governing the
management, handling, use, generation, treatment, storage, transportation, disposal, manufacture, distribution, formulation, packaging, labeling, or Release or threatened Release of any Hazardous Material. 
 “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental
investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) any actual violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any actual exposure to any Hazardous Materials, (d) the Release or threatened Release of any
Hazardous Materials. 
 “Equity” means Preferred Interests (as defined in the Recapitalization Agreement) to be issued to the
Lenders pursuant to the Recapitalization Agreement. 
 “Equity Rights” shall have the meaning assigned to such term in
Section 4.2(c). 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and all
regulations issued pursuant thereto. 
 “ERISA Affiliate” means any trade or business, whether or not incorporated, that together
with the Borrower or any of its Subsidiaries would be deemed a “single employer” within the meaning of Section 4001(b)(1) of ERISA. 
 “Escrow Funds” mean the $2,000,000 escrow fund held by the Borrower. 
 “Estimated Closing Balance Sheet” shall
have the meaning assigned to such term in Section 7.1. 
 “Estimated Closing Adjusted Tangible Net Book Value” shall have the
meaning assigned to such term in Section 7.1. 
 “Event of Default” means any of the events specified as an “Event of
Default” under this Agreement, provided that any requirement for the giving of notice, the lapse of time, or both, or any other condition, has been satisfied. 
  

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 “Excluded Collateral” means all mortgage loans and related assets sold to or securing the Repo
Lenders under the Repurchase Agreements at any time. 
 “FHA” means the Federal Housing Administration, an agency within the
Department of Housing and Urban Development (“HUD”), or any successor thereto and including the Federal Housing Commissioner and the Secretary of HUD where appropriate under the Federal Housing Administration regulations. 
 “Fidelity Insurance” shall mean insurance coverage with respect to employee dishonesty, forgery, theft, disappearance and destruction, robbery
and safe burglary, property (other than money and securities) and computer fraud. 
 “FRB” means the Board of Governors of the
Federal Reserve System or any other entity or agency that succeeds to its responsibilities and powers. 
 “GAAP” means United
States generally accepted accounting principles as employed in the United States of America consistently applied. 
 “Governmental
Body” means any federal, state, local, or other government (or any political subdivision, agency, authority, bureau, commission, department or instrumentality thereof) and any court, tribunal, grand jury or arbitrator, in each instance whether
foreign or domestic. 
 “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Debt or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly and including any
obligation, direct or indirect, of the guarantor (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation or to purchase (or to advance or supply funds for the purchase of) any security
for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Debt or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Debt or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued in support of
such Debt or obligation; provided, that the term “Guarantee” shall not include endorsements for collection or deposits in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the
stated or determinable amount of the primary obligation in respect of which Guarantee is made or, if not so stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith. The term “Guarantee” used as a verb has a corresponding meaning. 
 “Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including (a) any “hazardous substances” as defined by the federal
Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., (b) any “extremely hazardous substance,” “hazardous chemical,” or “toxic chemical” as those terms are
defined by the federal Emergency 

  

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Planning and Community Right-to-Know Act, 42 U.S.C. §§ 11001 et seq., (c) any “hazardous waste,” as defined under the federal Solid
Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., (d) any “pollutant,” as defined under the federal Water Pollution Control Act, 33 U.S.C. §§ 1251 et seq., as
any of such laws in clauses (a) through (d) may be amended, (e) petroleum or petroleum distillates, (f) asbestos or asbestos containing materials, lead or lead-containing materials or polychlorinated biphenyls, (g) radon
gas, (h) infectious or medical wastes, and (i) all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
 “Hedging Agreement” means interest rate swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity agreements and other similar agreements or
arrangements designed to protect against fluctuations in interest rates, currency values or commodity values. 
 “Information
Technology” means electronic business processes, data processing, information, record keeping, communications, telecommunications and computer systems (including all computer hardware and equipment, programs, software, databases, and firmware).

 “Intellectual Property” means all (a) copyrights (registered or unregistered) and copyright registrations, (b) domain
names, trademarks (registered or unregistered), trade names, and service marks (registered or unregistered), together with the goodwill associated with any of the foregoing, (c) inventions (whether or not patentable), patents, patent
applications, trade secrets, know-how, customer information, and Information Technology, and (d) licenses to use any of the foregoing. 
 “Investor” means any Person to which the Borrower or any of its Subsidiaries may sell Mortgage Loans pursuant to a Correspondent Agreement or any other agreement. 
 “Lease” means any of the material real estate or other personal property leases or subleases, or a sublease of an interest thereunder, of the
Borrower or any Subsidiary of the Borrower, together with all amendments, modifications, alterations and renewals thereof. 
 “Lenders” shall have the meaning assigned to such term in the preamble to this Agreement. 
 “License” means any
authorization, permit, consent, franchise, ordinance, registration, certificate, license, agreement or other right, privilege or approval filed with, granted by, issued by or entered into with any Governmental Body. 
 “Lien” means any mortgage, deed of trust, pledge, security interest, adverse claim, restriction on transferability, defect of title,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), or preference, priority or other security agreement, or preferential arrangement, escrow agreement, charge or encumbrance of any kind or nature whatsoever
(including, without limitation, any restriction on the use, voting, transfer, receipt of income, or other exercise of any attributes of ownership and any conditional sale or other title retention agreement, any Capital Lease, any Synthetic Lease and
the filing of any financing statement under the UCC or comparable law of any jurisdiction to evidence any of the foregoing). 
  

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 “Liquidity Event” means (a) any dissolution, liquidation or winding up of the Borrower,
whether voluntary or involuntary, (b) the sale, conveyance, exchange, exclusive license, lease or other transfer of all or substantially all of the property or assets of the Borrower, (c) any acquisition of the Borrower by means of a
consolidation, securities exchange, securities sale, merger or other form of reorganization of the Borrower with any other entity in which the Borrower’s equityholders prior to the consolidation or merger own less than a majority of the voting
securities of the surviving entity, or (d) any transaction or series of related transactions following which the Borrower’s equityholders prior to such transaction or series of related transactions own less than a majority of the voting
securities of the Borrower. 
 “Loan Documents” means this Agreement, each Note, bank account control agreements and any other
document now or hereafter executed or delivered in connection with the Obligations, in evidence thereof or as security therefor. 
 “Loan Percentage” means as to any Lender at any time, the percentage which such Lender’s Commitment then constitutes of the aggregate Commitments (or, at any time after the Closing Date, the percentage which the aggregate
principal amount of such Lender’s Loans then outstanding constitutes of the aggregate principal amount of the Loans then outstanding). 
 “Loans” has the meaning assigned to such terms in Section 2.1. 
 “Material Adverse Effect” means any
change, effect, event, matter, occurrence or state of facts that (a) has or results in, or would reasonably be expected to have or result in, a material adverse effect on the business, financial condition, assets, properties, or results of
operations of the Borrower or any of its Subsidiaries, or (b) does, or would reasonably be expected to, impair or materially delay the Borrower’s ability to promptly perform its obligations hereunder or any of the other Loan Documents. For
the avoidance of doubt, losses incurred by the Borrower in the ordinary course of business shall not be deemed to be a Material Adverse Effect. 
 “Material Contract” means any contract to which the Borrower or any of its Subsidiaries is a party or by which it or any of its properties or assets is bound or that relates to goods or services provided to or for the benefit of
the Borrower or any of its Subsidiaries (whether or not the Borrower or any of its Subsidiaries is a party thereto) of the following type, but excluding any Plan: 
 (a) License Agreements (as defined in Section 4.19); 
 (b) employment, consulting, severance, agency,
bonus, compensation, collective bargaining or other trusts, funds and other Contracts relating to or for the benefit of current, future or former employees, officers, directors, managers, stockholders, members, sales representatives, distributors,
dealers, agents, independent contractors or consultants (whether or not legally binding); 
 (c) Mortgage Servicing Agreements and
Correspondent Agreements; 
 (d) Contract with respect to the lending or investing of funds (other than Mortgage Loans originated or entered
into by the Borrower in the ordinary course of its business of mortgage origination); 
  

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 (e) Contracts relating to any Debt involving an amount in excess of $100,000 in each case; 
 (f) any joint venture, strategic alliance, exclusive distribution, partnership or similar Contract involving a sharing of profits or expenses or payments
based on revenues, profits or assets under management of the Borrower or any of its Subsidiaries; 
 (g) stock purchase agreements, asset
purchase agreements and other acquisition or divestiture agreements; 
 (h) orders and other Contracts involving aggregate payments in excess
of $500,000 in each case or $500,000 in the aggregate; 
 (i) any agreement or other arrangement with an Affiliate; 
 (j) Contracts providing for future payments or the acceleration or vesting of payments that are conditioned, in whole or in part, on a change in control
of the Borrower or any of its Subsidiaries; 
 (k) Contracts not entered into in the ordinary course of business; 
 (l) each Owned Mortgage Loan and any Mortgage Servicing Agreements and escrow agreements relating thereto; 
 (m) Contracts that cannot be terminated by the Borrower or a Subsidiary of the Borrower, without the incurrence of any payment or other economic penalty
or cost, within thirty (30) days of the date of termination; and 
 (n) any Contract prohibiting or materially restricting the ability
of the Borrower or any of its Subsidiaries to conduct their respective businesses, to engage in any business or operate in any geographical area or to compete with any Person. 
 “Maturity Date” means, with respect to the Loans, the earlier of (a) July 31, 2008, or (b) the date on which the principal
amount of all outstanding Loans have been declared or automatically have become due and payable (whether by acceleration or otherwise). 
 “Membership Interests” mean the Interests, as defined in the Operating Agreement. 
 “MERS” means Mortgage
Electronic Registration Systems, Inc., a Delaware corporation, or any successor in interest thereto. 
 “Moody’s” shall mean
Moody’s Investors Service, Inc., and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “Moody’s” shall be deemed to refer to any other nationally
recognized securities rating agency designated by the Borrower with the consent of the Administrative Agent. 
 “Mortgage” means a
mortgage, deed of trust, security deed or other security instrument on real property securing a Mortgage Loan. 
  

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 “Mortgage Collateral” means the real and personal property securing a Mortgage Loan or a bond,
mortgage-backed security or other obligation relating to a Mortgage Loan. 
 “Mortgage Loan” means a mortgage loan other than a
Closing Date Mortgage Loan secured by a Mortgage (a) in which the Borrower or any of its Subsidiaries is the mortgagee of record or the Borrower or any of its Subsidiaries has a legal or beneficial ownership interests; (b) for which the
Borrower or any of its Subsidiaries was the initial mortgagee of record or for which MER served as mortgagee of record as nominee of Borrower or any of its Subsidiaries; or (c) that have been or are subject to Mortgage Servicing Agreements or a
Correspondent Agreement or are to be serviced or subserviced by the Borrower. 
 “Mortgage Loan Documents” means any Mortgage Note
or Mortgage or similar instrument, and all amendments thereto, evidencing or securing a Mortgage Loan, including hard copies where available, and all machine-readable copies on any media. 
 “Mortgage Loan Files” means the underwriting, credit and closing documentation, custodial documents, escrow documents, and all other documents
in the possession of the Borrower or any of its Subsidiaries pertaining to a Mortgage Loan or reasonably necessary for prudent servicing of a Mortgage Loan, or as may be specifically required by any Investor. 
 “Mortgage Loan Indemnity Agreement” means that certain Mortgage Loan Indemnity Agreement dated the date hereof between the Borrower and FBR
pursuant to which FBR agrees to indemnify the Borrower for all Losses relating to all of the Owned Mortgage Loans closed prior to the Closing Date. 
 “Mortgage Note” means the original executed note (or promise to pay a sum of money at a fixed or variable interest rate during a specified term) evidencing a Mortgage Loan. 
 “Mortgage Servicing Agreement” means any Contract between the Borrower or any of its Subsidiaries (whether as servicer or otherwise), on the
one hand, and any other party (including an Investor or a servicer), on the other hand, setting forth the terms and conditions under which a Mortgage Loan or other obligations relating to a Mortgage Loan have been and are to be serviced or
subserviced and which may be incorporated in general guidelines, handbooks, rules, regulations, promulgations and other issuances of an Investor, each as amended from time to time. 
 “Mortgage Servicing Portfolio” means all of the Mortgage Loans that have been or are subject to Mortgage Servicing Agreements or are to be
serviced or subserviced by the Company, other than Owned Mortgage Loans. 
 “Mortgaged Property” means the real property (or
leasehold estate, if applicable) encumbered by a Mortgage. 
 “Non-Originated Mortgage Loans” means all Mortgage Loans other than
Originated Mortgage Loans. 
 “Note” means a promissory note payable to the order of each Lender, in form and substance acceptable
to the Administrative Agent and the Lenders, in the principal amount of 

  

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such Lender’s Commitment, and evidencing the obligation of the Borrower to repay the Loan made by such Lender, together with interest thereon, and all
extensions, renewals, modifications and amendments of such note, made in accordance with the terms hereof. 
 “Obligations” means
the Loans, the Notes, and all indebtedness and obligations of the Borrower under this Agreement and the other Loan Documents. 
 “Off-Balance Sheet Liabilities” of any Person means (i) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (ii) any liability of such Person under any
sale and leaseback transactions which do not create a liability on the balance sheet of such Person, (iii) any liability of such Person under any Synthetic Lease transaction, or (iv) any obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such Person. 
 “Operating Agreement” means the Third Amended and Restated Operating Agreement of the Borrower, dated March 16, 2007, as the same may be amended, modified or supplemented from time to time. 

“Organizational Documents” means, with respect to any Person that is a corporation, its articles or certificate of incorporation or
memorandum and articles of association, as the case may be, and bylaws; with respect to any Person that is a partnership, its certificate of partnership and partnership agreement; with respect to any Person that is a limited liability company, its
certificate of formation and limited liability company or operating agreement; with respect to any Person that is a trust or other entity, its declaration or agreement of trust or constituent document; and with respect to any other Person, its
comparable organizational documents, in each case, as has been amended or restated. 
 “Originated Mortgage Loans” means all
Mortgage Loans for which the Borrower or a Subsidiary of the Borrower was the initial mortgagee of record (or MERS, on its behalf), or for which the Borrower or a Subsidiary of the Borrower provided financing (including “table funding”)
whether or not such Borrower or Subsidiary of the Borrower was the initial mortgagee of record. 
 “Owned Mortgage Loan” means any
Mortgage Loan (a) in which the Borrower or any of its Subsidiaries is the mortgagee of record (or MERS, on its behalf), (b) in which the Borrower or any of its Subsidiaries has a legal or beneficial ownership interests (in each of case
(a) and (b), except for any Mortgage Loan sold by the Borrower or any of its Subsidiaries pursuant to a loan purchase agreement), (c) that is a Borrower Loan or a Warehouse Loan or (d) that the Borrower or any of its Subsidiaries has
repurchased from an Investor or other purchaser of such Mortgage Loan. 
 “Payment Office” means the office of the Administrative
Agent located at 5200 Town Center Circle, Suite 470, Boca Raton, Florida 33486, or such other location as to which the Administrative Agent shall have given written notice to the Borrower and the other Lenders. 
 “PBGC” means the Pension Benefit Guaranty Corporation and any successor thereto. 
  

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 “Permitted Liens” means all Liens that are (a) for Taxes or assessments that are not yet
due and payable or which are being contested in good faith and by appropriate proceedings and (1) for which adequate reserves have been established on the Borrower’s and its Subsidiaries’ books and records in accordance with GAAP and
(2) which are not reasonably expected to be material; (b) Liens or pledges to secure payments of workmen’s compensation and other payments, unemployment and other insurance, old-age pensions or other social security obligations, or
the performance of bids, tenders, leases, contracts, public or statutory obligations, surety, stay or appeal bonds, or other similar obligations arising in the ordinary course of business which are not individually or in the aggregate material;
(c) workmen’s, repairmen’s, warehousemen’s, vendors’ or carriers’ Liens or other similar Liens arising in the ordinary course of business and securing sums that are not past due, or deposits or pledges to obtain the
release of any such Liens which are not individually or in the aggregate material; (d) statutory landlords’ Liens under Leases to which the Borrower or a Subsidiary of the Borrower is a party; and (e) zoning restrictions, easements,
rights of way, licenses and restrictions on the use of real property or minor irregularities in title thereto, that do not materially impair the use of such property in the normal operation of the business or the value of such property for the
purpose of such business. 
 “Person” means an individual, partnership, corporation, business trust, joint stock company, trust,
unincorporated association, joint venture, governmental authority, limited liability company or other entity of whatever nature. 
 “Pipeline Application” means applications by borrowers for Mortgage Loans taken or received by employees or agents of the Borrower or a Subsidiary of the Borrower (or brokers working with the Borrower or a Subsidiary of the
Borrower) and entered into the pipeline tracking system (or subject to entry, or required to be entered, according to the Borrower’s standard policies and procedures) of the Borrower or a Subsidiary of the Borrower on or prior to the Closing
Date. 
 “Plan” has the meaning assigned to such term in Section 4.16. 
 “Principal Officer” means the President, the Chief Executive Officer, the Vice President of Finance, the Controller or the Assistant Controller
of the Borrower or any Subsidiary. 
 “Proceeding” means any judicial, administrative or arbitral action, suit, claim,
investigation, examination, audit, review, inquiry or proceeding brought by or on behalf of any Governmental Body or any other Person. 
 “Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible, including, without limitation, Capital Stock. 
 “Recapitalization Agreement” means the Recapitalization Agreement, dated as of July 25, 2007, between FNLC Financial Services, Inc., the
Borrower and the Lenders, as amended, modified and in effect from time to time. 
 “Receivables” means all rights to payments for
property sold or licensed or for services rendered, whether now owned or hereafter acquired by the Borrower or any Subsidiary. 
  

 12 

 “Release” means any release, spill, emission, leaking, dumping, injection, pouring, deposit,
disposal, discharge, dispersal, leaching or migration into the environment (including ambient air, surface water, groundwater, land surface or subsurface strata) or within any building, structure, facility or fixture. 
 “REO” means real estate obtained by the Borrower or any of its Subsidiaries in its name or on behalf of Investors in connection with
foreclosure proceedings or deed in lieu of foreclosure proceedings on Mortgage Loans. 
 “Repo Lender” means each of the buyers
party to a Repurchase Agreement. 
 “Repurchase Agreement” means each of the repurchase agreements listed on Exhibit A. 

“Repurchased/Unsold Loans” means any Owned Mortgage Loan that (1) the Borrower or a Subsidiary of the Borrower has repurchased (or is
subject to a repurchase) from an Investor or other purchaser due to (A) a breach of a representation and warranty, (B) a payment default shortly after sale, or (C) for any other reason or (2) the Borrower or a Subsidiary of the
Borrower has been unable to sell to an Investor or other third-party purchaser due to a defect with respect to such Mortgage Loan which causes such Mortgage Loan to be impaired or ineligible for sale pursuant to a Correspondent Agreement or similar
agreement. 
 “Restricted Payment” means (a) the declaration or payment of a distribution by the Borrower to its members on
any class of the Borrower’s Capital Stock, or any payment by the Borrower on account of, or setting apart assets of the Borrower for a sinking or other analogous fund for, the purchase, redemption, retirement, defeasance or other acquisition
of, any shares of Capital Stock of the Borrower now or hereafter outstanding, or (b) any payment by the Borrower on account of, or setting apart assets of the Borrower for a sinking fund or other analogous fund designated for, the purchase,
redemption, retirement or other acquisition by the Borrower of, any options, warrants, or other rights to purchase Capital Stock of the Borrower, whether now or hereafter outstanding, or (c) the making of any other distribution by reduction of
capital or otherwise in respect of any shares of the Capital Stock of the Borrower. 
 “SEC” means the United States Securities and
Exchange Commission. 
 “Serviced Loan” means any Mortgage Loan that is subject to a Mortgage Servicing Agreement or that is to be
serviced or subserviced by the Borrower or any of its Subsidiaries. 
 “Servicing Rights” means the right to receive the servicing
fee income and any other income arising from or connected to the Mortgage Servicing Agreements or the servicing of the Mortgage Loans in the Mortgage Servicing Portfolio. 
 “S&P” means Standard & Poor’s, a division of McGraw-Hill, Inc., a corporation organized and existing under the laws of the State of New York, its successors and assigns, and, if such
corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “S&P” shall be deemed to refer to any other nationally recognized securities rating agency designated by the Borrower
with the consent of the Administrative Agent. 
  

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 “State” means the State of New York. 
 “Subordinate Priority Mortgage Loans” mean Mortgage Loans secured by a Mortgage of a subordinate priority. 
 “Subsidiary” as to any Person, means a corporation, partnership, limited partnership, limited liability company or other entity of which shares
of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a
“Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower. 
 “Synthetic Lease” means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product where the transaction is considered Debt for borrowed money for federal income tax
purposes but is classified as an operating lease in accordance with GAAP for financial reporting purposes. 
 “Tax” means any
federal, state, foreign or local net or gross income, alternative minimum, accumulated earnings, personal holding company, franchise, doing business, capital stock, net worth, capital, profits, windfall profits, gross receipts, business, securities
transaction, value added, sales, use, excise, custom, transfer, registration, stamp, premium, real property, personal property, ad valorem, intangibles, rent, occupancy, license, occupational, employment, unemployment, social security, disability,
workers’ compensation, payroll, withholding, estimated or other similar tax, duty or other governmental charge of any kind whatsoever (including all interest and penalties thereon and additions thereto). 
 “Tax Return” means any return, report, declaration, form, claim for refund or information statement relating to Taxes, including any schedule
or attachment thereto, and including any amendment thereof. 
 “Taxing Authority” means any governmental agency, board, bureau,
body, department or authority of any United States federal, state or local jurisdiction or any foreign jurisdiction, having or purporting to exercise jurisdiction with respect to any Tax. 
 “UCC” means the Uniform Commercial Code as adopted in the State, and all amendments thereto. 
 “Units” shall have the meaning assigned thereto in the Fourth Amended and Restated Operating Agreement of the Company. 
 “VA” means the Veterans Administration or any successor thereto. 
 “Warehouse Financing Agreements” means any Material Contract that is a loan agreement, repurchase agreement or similar agreement providing financing for the origination of Warehouse Loans by the Borrower or
any Subsidiary of the Borrower. 
  

 14 

 “Warehouse Loan” means any Mortgage Loan that (i) has been pledged by the Borrower or any
of its Subsidiaries as collateral or that secures any warehouse facility or other financing facility used by the Borrower or any of its Subsidiaries or (ii) the Borrower or any of its Subsidiaries has sold to a third party under a Repurchase
Agreement. 
 “Whole Loan” means an evidence of indebtedness where the entire indebtedness is transferred with the entire evidence
of indebtedness. 
 1.2 Accounting Terms and Determination. Unless otherwise defined or specified herein, all accounting
terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance with GAAP as in effect from time to time, applied on a
basis consistent (except for such changes approved by the Borrower’s independent public accountants) with the most recent audited consolidated financial statements of the Borrower delivered pursuant to Section 5.8(b). 
 1.3 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. In the computation of periods of time from a specified date to a later specified date, the word
“from” means “from and including” and the word “to” means “to but excluding”. Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document as it was originally executed or as it may from time to time be amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (iii) the words “hereof”, “herein” and “hereunder”
and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provision hereof, (iv) all references to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles,
Sections, Exhibits and Schedules to this Agreement and (v) all references to a specific time shall be construed to refer to the time in the city and state of the Administrative Agent’s principal office, unless otherwise indicated.

 Section 2 Loans 
 2.1 Loans. 
 (a) Subject to the terms and conditions set forth herein and in reliance
upon the representations and warranties in the Loan Documents, NLC Holding and Lender NLC each severally agrees to make a Loan (each, a “Loan”) to the Borrower on the Closing Date in a principal amount not to exceed the Commitment of such
Lender; provided that Lender NLC shall be required to fund an amount equal to its Commitment minus the Estimated Closing Adjusted Tangible Net Book Value, but shall be deemed to have funded the entire full amount of its Commitment on the Closing
Date for purposes of calculating the principal outstanding, interest payable thereon and all other amounts due with respect thereto. 
  

 15 

 (b) If the Borrower would have a net tangible book value for state licensing
purposes of less than $250,000, Lender NLC’s Loan shall be deemed automatically converted into equity in an amount and to the extent required for the Borrower to have a net tangible book value for regulatory purposes of at least $250,000.

 (c) If Lender NLC’s Loan has been converted into equity in its entirety, NLC Holding’s Loan shall be
deemed automatically converted into equity in an amount and to the extent required for the Borrower to have a net tangible book value for regulatory purposes of at least $250,000; provided, however, that (i) in such event, the parties shall
enter into a revised LLC Agreement in a form reasonably acceptable to NLC Holding to reflect NLC Holding’s contributions; and (ii) NLC Holding’s Loan shall not be converted if the conversion would cause NLC Holding to own more than
10% of the aggregate outstanding equity of the Borrower on a fully-diluted basis, absent regulatory notice or approval in those states where the Borrower is licensed and where a change of ownership requires regulatory notice or approval. 

(d) Notwithstanding the automatic conversion of any Loans to equity in accordance with this Section 2.1, the aggregate
amount of principal balance of the Loans (including any amounts added to principal or converted to equity under this Section 2.1) shall continue to accrue interest at the rate of 15% per annum, compounded monthly on the first day of each
month. 
 (e) In the event that the Second Closing does not occur on or prior to the Maturity Date or termination of
this Agreement, Lender NLC agrees that any recovery by the Lenders from the Borrower or its assets in respect of the Loans shall be shared 80% by NLC Holding and 20% by Lender NLC, notwithstanding whether any Loans have been converted into equity.

 2.2 Funding of Borrowings. 
 (a) Each Lender will make available each Loan to be made by it hereunder on the proposed date thereof by wire transfer in
immediately available funds by 11:00 a.m. (Eastern time) to the Borrower at its principal place of business in Boca Raton, Florida. 
 (b) No Lender shall be responsible for any default by any other Lender in its obligations hereunder, and each Lender shall be obligated to make its Loans provided to be made by it hereunder, regardless of the failure of any other
Lender to make its Loans hereunder; provided that in no event will any Lender be required to make any Loan in excess of its Commitment. 
 2.3 Interest. 
 (a) The outstanding principal balance of the Loans
(including any amounts added to principal) shall bear interest at a rate of interest equal to fifteen percent (15%) per annum (the “Contract Rate”), compounded monthly on the first day of each calendar month. 
 (b) While an Event of Default exists or after acceleration, the Loans shall accrue interest at a rate of 2% per annum in
excess of the rate otherwise in effect. 
  

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 2.4 Repayment of Loans.  
 (a) The outstanding principal amount of all Loans, if not sooner converted into Equity in accordance with this Agreement or the
Recapitalization Agreement, together with all accrued and unpaid interest thereon, shall be due and payable on the Maturity Date. 
 (b) All payments in respect of the Loans, including all accrued and unpaid interest thereon, shall be made in accordance with the provisions of Section 2.10(b). 
 2.5 Computation of Interest. All computations of interest hereunder shall be made on the basis of a year of 360 days for
the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or fees are payable (to the extent computed on the basis of days elapsed). Each determination by the Administrative Agent
of an interest amount or fee hereunder shall be made in good faith and, except for manifest error, shall be final, conclusive and binding for all purposes. 
 2.6 Evidence of Indebtedness.  
 (a) Each Lender
shall maintain in accordance with its usual practice appropriate records evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest
payable thereon and paid to such Lender from time to time under this Agreement. The entries made in such records shall be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided,
that the failure or delay of any Lender in maintaining or making entries into any such record or any error therein shall not in any manner affect the obligations of the Borrower to repay the Loans (both principal and unpaid accrued interest) of such
Lender in accordance with the terms of this Agreement. 
 (b) The Borrower agrees that it shall execute and deliver to
each Lender a Note, in the form attached hereto as Exhibit B, payable to the order of such Lender, in the applicable amount of such Lender’s Commitment. The Notes shall be dated the Closing Date, shall bear interest at the rate per annum and be
payable as to principal and interest in accordance with the terms hereof. Notwithstanding the stated amount of any Note, the liability of the Borrower under each Note shall be limited at all times to the outstanding principal amount of the Loans by
each Lender evidenced thereby, plus all interest accrued thereon and the amount of all costs and expenses then payable hereunder, as established by each such Lender’s books and records, which books and records shall be conclusive absent
manifest error. 
 2.7 Termination of Commitments. The Commitments shall terminate upon the making of the Loans pursuant
to the terms of this Agreement. 
 2.8 Optional Prepayments. The Loans may be prepaid in whole or in part, at any time,
without premium or penalty. 
 2.9 Mandatory Prepayments. The Obligations shall be prepaid in full by the Borrower upon
the occurrence of a Liquidity Event. 
  

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 2.10 Payments Generally; Pro Rata Treatment; Sharing of Set-offs. 

 (a) Each Borrowing by the Borrower from the Lenders hereunder and each payment by the Borrower on account of any of
the Obligations shall be made pro rata according to the respective Loan Percentages. 
 (b) The Borrower shall
make each payment required to be made by it hereunder prior to 12:00 noon (Eastern time), on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion
of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at the Payment Office. The Administrative
Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be made payable for the period of such extension. All payments hereunder shall be made in Dollars. 

(c) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of
principal, interest and fees then due hereunder, such funds shall be applied in accordance with Section 9.2(d). 
 (d) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans that would result in such Lender receiving payment of a greater
proportion of the aggregate amount of its Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans of
other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans; provided, that if
any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest. The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim
with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 
 2.11 Use of Proceeds. The funds advanced under the Loans may be used exclusively to fund general working capital requirements of the Borrower and for other legitimate corporate purposes; provided that the funds advanced
under the Loans made by NLC Holding may not be used to fund any fees, costs, or expenses related to any litigation relating to the Class Action Lawsuits (as defined in the Recapitalization Agreement). 
 2.12 Fees. Borrower will pay to the Administrative Agent those fees set forth in Schedule 2.12. 
  

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 Section 3 Security 
 3.1 Security Interest. The Borrower and its Subsidiaries hereby assign and pledge to the Administrative Agent, for the ratable benefit of the Lenders, and hereby grants to the Administrative
Agent, for the ratable benefit of the Lenders, a first priority security interest in all of the Borrower’s and each of its Subsidiaries’ right, title and interest in and to the Collateral (subject to Liens permitted by this Agreement or
any other Loan Document), whether now owned or hereafter acquired by the Borrower or any Subsidiary, including all proceeds of any and all of the foregoing or hereinafter-described Collateral (including, without limitation, proceeds that constitute
property of the types described herein) and, to the extent not otherwise included, all policies of insurance on any property of the Borrower and its Subsidiaries and all payments and proceeds under any such insurance (whether or not the
Administrative Agent is the loss payee thereof, for the ratable benefit of the Lenders), or any indemnity warranty or guaranty payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral; all cash proceeds of
the Collateral; and all books of account and records, including all computer software relating thereto. This Agreement secures the payment of all Obligations of the Borrower now or hereafter existing or arising. Without limiting the generality of
the foregoing, this Agreement secures the payment of all amounts that constitute part of the Obligations and would be owed by the Borrower to the Administrative Agent and any of the Lenders but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Borrower. Notwithstanding anything to the contrary in this Agreement, no security interest, pledge or assignment shall attach to any Excluded
Collateral prior to the occurrence of an Event of Default. 
 3.2 Representations and Warranties Concerning the
Collateral. 
 (a) As of the date hereof (i) all items of equipment and inventory of
the Borrower and its Subsidiaries is located at the places specified in Schedule 3.2 hereto; (ii) during the five years immediately preceding the date of this Agreement, none of the Borrower, any Subsidiary or any predecessor of the Borrower or
any Subsidiary has used any corporate or fictitious name other than its current corporate name except as set forth on Schedule 3.2 hereto; (iii) neither the Borrower nor any Subsidiary has any trade names except as set forth on Schedule 3.2
hereto; (iv) the chief executive office and mailing address of the Borrower and its Subsidiaries is 4680 Conference Way South, Suite 100, Boca Raton, Florida 333431 (Palm Beach County); (v) the exact legal name of the Borrower and its
Subsidiaries is that indicated on the signature pages hereof; (vi) the Borrower and each of its Subsidiaries is an organization of the type, and are organized in the jurisdictions set forth herein; and (vii) the signature page hereof
accurately sets forth the organizational identification number of the Borrower and each of its Subsidiaries. 
 (b) The
Borrower or a Subsidiary is the legal and beneficial owner of the Collateral and either the Borrower or a Subsidiary has good and marketable title to the Collateral free and clear of any Lien, security interest, option or other charge or encumbrance
except for the security interest created by this Agreement or permitted by this Agreement. 
 (c) This Agreement
creates a valid security interest in the Collateral, securing the payment of the Obligations and, when properly perfected, shall constitute a valid perfected security interest in such Collateral, free and clear of all Liens except as created or
permitted by this Agreement. 
  

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 3.3 Covenants Concerning the Collateral. 
 (a) The Borrower and each Subsidiary shall have its equipment and inventory insured against loss or damage by fire, theft,
burglary, pilferage, loss in transportation and such other hazards as the Administrative Agent shall reasonably specify, by insurers reasonably satisfactory to the Administrative Agent, in amounts reasonably satisfactory to the Administrative Agent
and under policies containing loss payable clauses satisfactory to the Administrative Agent. Any such insurance policies, or certificates or other evidence thereof satisfactory to the Administrative Agent, shall be deposited with the Administrative
Agent on the Closing Date. The Borrower and each Subsidiary agrees that the Administrative Agent, for the ratable benefit of the Lenders, shall have a security interest in such policies and the proceeds of such policies thereof, and if any loss
shall occur during the continuation of an Event of Default, the proceeds relating to the loss or damage of the equipment or inventory may be applied to the payment of the Obligations or to the replacement or restoration of the inventory or equipment
damaged or destroyed, as the Administrative Agent may elect or direct. After the occurrence and during the continuance of an Event of Default, the Administrative Agent shall have the right to file claims under any insurance policies, to receive,
receipt and given acquittance for any payments that may be made thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect to the collection, compromise, or
settlement of any claims under any of the insurance policies. 
 (b) The Borrower and each Subsidiary covenants and
agrees that at all times during the term of this Agreement, it will have, good and marketable title to the Collateral, which is owned or acquired from time to time by it, free and clear of Lien, security interest, option or other charge or
encumbrance except for the security interest created by this Agreement or permitted by this Agreement, and shall defend the Collateral against the claims and demands of all persons, firms and entities whomsoever. 
 (c) The Borrower and each Subsidiary covenants and agrees to faithfully preserve and protect the Administrative Agent’s
security interest in the Collateral and shall, at its own cost and expense, cause, or assist the Administrative Agent to cause that security interest to be perfected and continue perfected so long as the Obligations or any portion of the Obligations
is outstanding. For purposes of the perfection of the Administrative Agent’s security interest in the Collateral in accordance with the requirements of this Agreement, the Borrower and each Subsidiary shall from time to time at the request of
the Administrative Agent file or record, or cause to be filed or recorded, such instruments, documents and notices, including assignments, financing statements and continuation statements, as the Administrative Agent may deem necessary or advisable
from time to time in order to perfect and continue perfected such security interest. 
 (d) The Borrower and each
Subsidiary shall do all such other acts and things and shall execute and deliver all such other instruments and documents, including further security agreements, pledges, endorsements, assignments and notices, as the Administrative Agent in its
discretion, may deem necessary or advisable from time to time in order to perfect and preserve the priority of such security interest as a first lien security interest in the Collateral prior to the rights of all third persons, firms and entities,
except as may be otherwise provided in this Agreement. 
  

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 3.4 Perfection of Security Interest. The Borrower and each Subsidiary hereby
irrevocably authorizes the Administrative Agent, for the ratable benefit of the Lenders, at any time and from time to time to file in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that
(a) indicate the Collateral (1) as all assets of the Borrower and each Subsidiary or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the Uniform
Commercial Code of the State or such jurisdiction, or (2) as being of an equal or lesser scope or with greater detail, and (b) contain any other information required by part 5 of Article 9 of the Uniform Commercial Code of the State or
such jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment, including (1) whether the Borrower or any Subsidiary (as applicable) is an organization, the type of organization and any organization
identification number issued to the Borrower or any Subsidiary and, (2) in the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of real
property to which the Collateral relates. The Borrower and each Subsidiary agrees to furnish any such information to the Administrative Agent promptly upon request. If the Borrower or any Subsidiary shall at any time hold or acquire any promissory
notes or tangible chattel paper included as part of the Collateral, the Borrower or such Subsidiary shall forthwith endorse, assign and deliver the same to the Administrative Agent, accompanied by such instruments of transfer or assignment duly
executed in blank as the Administrative Agent may from time to time specify. 
 3.5 Power of Attorney. The Borrower and
each Subsidiary appoints the Administrative Agent and any officer, employee or agent of the Administrative Agent, as the Administrative Agent from time to time may designate, as attorneys-in-fact for the Borrower and each Subsidiary (1) to
perform all actions including without limitation, to make such filings or registrations with any Governmental Body, as may be necessary or desirable in the sole discretion of the Administrative Agent to protect, enforce or maintain its security
interest in the Collateral and to realize upon and dispose of the Collateral, for the ratable benefit of the Lenders, (2) to do or cause to be done all acts and things as may be necessary to make the sale or disposition of the Collateral valid,
binding and in compliance with applicable law, and (3) to exercise such rights and powers with respect to the Collateral as the Administrative Agent may deem necessary or desirable, all at the Borrower’s expense. The Borrower and each
Subsidiary agrees that neither the Administrative Agent nor any other such attorney-in-fact will be liable for any acts of omission or commission, nor for any error of judgment or mistake of law or fact, unless such acts were willful and malicious
or grossly negligent. This power is coupled with an interest and is irrevocable so long as any Obligations are outstanding. The Administrative Agent agrees that it shall be entitled to exercise its rights under this Section 3.5 only upon the
occurrence and during the continuation of an Event of Default. 
 Section 4 Representations And Warranties 
 The Borrower represents and warrants to the Administrative Agent and each Lender, as of the date hereof and as of each Borrowing hereunder, that:

 4.1 Formation, Good Standing and Due Qualification. The Borrower (a) is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Florida; (b) has the power and authority to own its assets and to transact the business 

  

 21 

 
in which it is now engaged or in which it is proposed to be engaged; and (c) is duly qualified and licensed as a foreign limited liability company and a
mortgage lender in good standing under the laws of each other jurisdiction in which such qualification is required, except when the failure to be so qualified has not had and could not reasonably be expected to have a Material Adverse Effect.

 4.2 Capital Structure. 
 (a) The authorized Capital Stock of the Borrower consists of the Membership Interests, and such Membership Interests are issued, outstanding and held by such Persons in such amounts as indicated on Schedule
4.2(a). None of the Membership Interests are represented by certificates, and the ownership of the Membership Interests is accurately recorded in the books of the Borrower. All of the Membership Interests are duly authorized, validly issued,
fully paid and non-assessable and have not been issued in violation of any Equity Rights (as defined below). No current or former holder of any Membership Interests or any other Person is contesting or has a valid basis for contesting the ownership
of any Membership Interests or any dividends, distributions or contributions relating thereto. Other than the Membership Interests, there is no Capital Stock of the Borrower authorized, issued or outstanding. Except as set forth on Schedule
4.2(a), the Borrower has not made any Distribution since February 16, 2005, and no current or former holder of any Membership Interests has any right to receive any Distribution. 
 (b) The authorized Capital Stock and the total number of outstanding Capital Stock of each Subsidiary of the Borrower are set forth
on Schedule 4.2(b). All such Capital Stock is duly authorized, validly issued, fully paid and non-assessable. 
 (c) Except as set forth in the Transaction Documents, there are no outstanding securities, options, warrants, calls, rights, conversion rights, preemptive rights, rights of first refusal, redemption rights, repurchase rights, plans,
“tag-along” or “drag-along” rights, commitments, agreements, arrangements or undertakings (“Equity Rights”) (1) obligating the Borrower, any Subsidiary of the Borrower or any of their respective Affiliates
to issue, deliver, redeem, purchase or sell, or cause to be issued, delivered, redeemed, purchased or sold, any Capital Stock of the Borrower or any Subsidiary of the Borrower or any securities or obligation convertible or exchangeable into or
exercisable for, any Capital Stock of the Borrower or any Subsidiary of the Borrower, (2) giving any Person a right to subscribe for or acquire any Capital Stock of the Borrower or any Subsidiary of the Borrower, or (3) obligating the
Borrower, any Subsidiary of the Borrower or any of their respective Affiliates to issue, grant, adopt or enter into any such Equity Right. Except as set forth in the Transaction Documents, there is no outstanding or authorized equity appreciation,
phantom stock, profit participation or similar rights with respect to the Capital Stock of the Borrower or any Subsidiary of the Borrower. Except as set forth in the Transaction Documents, none of the Borrower, any Subsidiary of the Borrower or any
of their respective Affiliates has (x) outstanding Debt that could entitle or convey to any Person the right to vote, or that is convertible into or exercisable for any Capital Stock of the Borrower or any Subsidiary of the Borrower or
(y) Equity Rights that could entitle or convey to any Person the right to vote with the equityholders of the Borrower or any Subsidiary of the Borrower on any matter. There are no voting trusts or other agreements or understandings outstanding
with respect to the Capital Stock of the Borrower or any Subsidiary of the Borrower. 
  

 22 

 4.3 Subsidiaries of the Borrower . 
 (a) Schedule 4.3(a) sets forth a true, complete and correct list of (i) each Subsidiary of the Borrower, together with
the type of entity and jurisdiction of organization of each such Subsidiary and (ii) each equity investment or other investment of the Borrower or any Subsidiary of the Borrower in any Person other than a Subsidiary of the Borrower (each, a
“Non-Affiliate Interest”). The Borrower owns, directly or indirectly, all of the issued and outstanding Capital Stock in each Subsidiary of the Borrower, and owns its interests in each and Non-Affiliate Interest, in each case, free
and clear of any Liens. 
 (b) All of the issued and outstanding Capital Stock of each Subsidiary of the Borrower has
been duly authorized, validly issued, is fully paid and non-assessable and has not been issued in violation of any Equity Rights. None of the Capital Stock for any Subsidiary of the Borrower (other than a Subsidiary of the Borrower that is a
corporation) is represented by certificates, and the ownership of such Capital Stock is accurately recorded in the books of the applicable Subsidiary of the Borrower. There are no outstanding Equity Rights (i) obligating the Borrower, any
Subsidiary of the Borrower or any of their respective Affiliates to issue, deliver, purchase or sell, or cause to be issued, delivered, purchased or sold, any Capital Stock of any Subsidiary of the Borrower or any securities or obligations of any
Subsidiary of the Borrower convertible or exchangeable into or exercisable for, Capital Stock of any Affiliate, (ii) giving any Person a right to subscribe for or acquire any Capital Stock of any Subsidiary of the Borrower or
(iii) obligating the Borrower, any Subsidiary of the Borrower or any of their respective Affiliates to issue, grant, adopt or enter into any such Equity Right. There are no agreements, arrangements or commitments to sell or transfer, or with
respect to the voting or governance of, any (x) Capital Stock in any Subsidiary of the Borrower or (y) Non-Affiliate Interests. 
 (c) Each Subsidiary of the Borrower is duly organized or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation. Each Subsidiary of the Borrower has
the requisite power and authority to carry on its business and to own, lease and operate all of its properties and assets, as currently conducted, owned, leased or operated. Each Subsidiary of the Borrower is duly qualified to do business in each
jurisdiction in which the nature of its business or the character or location of the properties and assets owned, leased or operated by it makes such qualification necessary, other than any failure to be so qualified that, individually or in the
aggregate, has not had or resulted in and could not reasonably be expected to have or result in a Material Adverse Effect. Schedule 4.3(c) contains a complete and correct list of each of the jurisdictions in which each Subsidiary of the
Borrower is qualified to do business, and, to the knowledge of the Borrower, no Subsidiary of the Borrower is required to be qualified to do business in any other jurisdiction. The Borrower has made available to the Lenders complete and correct
copies of the Organizational Documents of each Subsidiary of the Borrower, and a list of each such Organizational Documents is set forth in Schedule 4.3(c). Each of such Organizational Documents is in full force and effect and there has been
no material violation thereof. 
 4.4 Power and Authority. The Borrower has all requisite power and authority to execute
and deliver the Loan Documents and the Recapitalization Agreement and to perform its obligations hereunder and thereunder. The execution, delivery and performance by the Borrower of the Loan Documents and the Recapitalization Agreement have been
duly authorized by all 

  

 23 

 
necessary corporate actions and except as set forth on Schedule 4.4, do not and will not (a) require any consent or approval of, or filing or
registration with, or obtaining a license from, any Governmental Body or any other third party; (b) contravene the Borrower’s Organizational Documents; (c) conflict with, result in a violation or termination of, contravene or
constitute a breach of or default under any Contract, Plan or other instrument binding upon the Borrower or a Subsidiary of the Borrower, or to which the property of the Borrower or a Subsidiary of the Borrower or any portion of the Borrower’s
business is subject, except for, any conflict, violation, termination, contravention, breach, default, payment, acceleration, vesting, cancellation, Lien or loss of rights that, individually or in the aggregate, would not reasonably be expected to
have or result in a Material Adverse Effect; (d) result in or require the creation or imposition of any Lien upon or with respect to any of the properties now owned or hereafter acquired by the Borrower, except in favor of the Administrative
Agent, for the ratable benefit of the Lenders; or (e) cause the Borrower to be in default under any material law, rule, regulation, order, writ, judgment, injunction, decree, determination or award applicable to the Borrower. 
 4.5 Legally Enforceable Agreement. This Agreement is, and each of the other Loan Documents when delivered under this Agreement will
be, legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization or similar laws or equitable principles relating to
creditors’ rights generally (the “Enforceability Exceptions”). 
 4.6 Financial Statements.

 (a) The Borrower has furnished to the Administrative Agent and each Lender (1) the audited consolidated and
unaudited consolidating balance sheet of the Borrower and its Subsidiaries as of December 31, 2005 and 2006 and the related consolidated and consolidating statements of income, stockholders’ equity and cash flows for the fiscal year then
ended; and (2) the unaudited consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as of June 30, 2007, and the related unaudited consolidated and consolidating statement of income for the fiscal quarter and
year-to-date period then ending, certified by a Principal Officer ((1) and (2) collectively, the “Financial Statements”; and the balance sheet as of June 30, 2007, the “Latest Balance Sheet”). Such
Financial Statements (i) have been prepared in accordance with the books and records of the Borrower and the Subsidiaries of the Borrower, (ii) are complete and correct and fairly present in all material respects the financial condition of
the Borrower and its Subsidiaries on a consolidated and consolidating basis as of the dates of such statements subject, in the case of the statements referred to in clause (2) to normal year-end adjustments and the absence of footnote
disclosure, and (iii) have been prepared in accordance with GAAP consistently applied throughout the periods covered thereby (except, in the case of the statements referred to in clause (2) to normal year-end adjustments and the absence of
footnote disclosure). Since the dates of such Financial Statements, there has been no material adverse change in the business, assets, liabilities, results of operations, or financial condition of the Borrower taken as a whole. 
 (b) Schedule 4.6(b) sets forth a true, correct and complete list of all bank accounts and safe deposit boxes of the Borrower
and the Subsidiaries of the Borrower and all Persons who are signatories thereunder or who have access thereto. 
  

 24 

 (c) Except as set forth in Schedule 4.6(c), the books and records of the
Borrower and the Subsidiaries of the Borrower have been maintained in accordance with GAAP and all applicable laws and reflect only actual transactions. Neither the latest consolidated audited balance sheet in the Financial Statements nor the Latest
Balance Sheet (collectively, the “Balance Sheets”) reflects any material asset or liability that is not intended to constitute a part of the business of the Borrower or any of its Subsidiaries (excluding routine dispositions of
assets in the ordinary course of business consistent with past practice), and none of the consolidated income statements of the Borrower and any Subsidiary of the Borrower included in the Financial Statements reflects the results of operations of
any Person that are not intended to constitute a part of the business of the Borrower or any of its Subsidiaries. Such income statements reflect all material costs that historically have been incurred in connection with the operation of the business
of the Borrower or any of its Subsidiaries. Except as set forth in the Financial Statements or Schedule 4.6(c), there are no material special or non-recurring items of income or expense during the periods covered by the Financial Statements,
and the Balance Sheets do not reflect any write-up or revaluation increasing the book value of any assets. 
 (d) The
Borrower and the Subsidiaries of the Borrower maintain internal controls over financial reporting designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with GAAP, including policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Borrower and the
Subsidiaries of the Borrower, (2) are designed to provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Borrower
and the Subsidiaries of the Borrower are being made only in accordance with authorizations of management and directors of the Borrower and the Subsidiaries of the Borrower and (3) are designed to provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Borrower and the Subsidiaries of the Borrower that could have a material effect on the financial statements (it being understood that the Borrower is
not making any representation or warranty that it complies, or has complied with, Section 404 of the Sarbanes-Oxley Act). 
 (e) Schedule 4.6(e) describes, and the Borrower has made available to the Lenders, complete and correct copies of all documents governing, all “off balance sheet arrangements” (as defined by item 303(a)(4) of
Regulation S-K promulgated by the SEC) in respect of the Borrower and any Subsidiary of the Borrower. 
 4.7 Litigation;
Environmental Matters. 
 (a) Except as set forth on Schedule 4.7(a) attached hereto, there is no
pending or threatened Proceeding against or affecting the Borrower or any of its Subsidiaries or the business of the Borrower and its Subsidiaries as currently conducted (other than any litigation where neither the Borrower nor any of its
Subsidiaries is the real party in interest and where such litigation relates solely to Mortgage Loans sold by the Borrower or any of its Subsidiaries (but where such sale was not recorded in the appropriate local land records), none of which
litigation is material to the Borrower or any of its Subsidiaries) before any court, governmental agency or arbitrator. True, correct and complete copies of all material and non-privileged documents and correspondence relating to any matter required
to be set forth on Schedule 4.7(a) have been made available to the Lenders. 
  

 25 

 (b) Schedule 4.7(b) lists each Proceeding since January 10, 2005 that
resulted or could be expected to result (1) in any sanctions, (2) in any regulatory or examination-related findings or reports, or (3) in payments in excess of $50,000, in each case by or against the Borrower or any of its
Subsidiaries or any of their respective officers, directors or managers in their capacity as officers, directors or managers (whether as a result of a judgment, civil fine, settlement or otherwise). 
 (c) Except that either individually or in the aggregate could not be reasonably expected to have a Material Adverse Effect, no
Borrower (i) is the subject of any pending or threatened claim alleging that it has failed to comply with any Environmental Law or to obtain, maintain or comply with any License or other approval required under any Environmental Law,
(ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability, or (iv) knows of any facts or circumstances that would reasonably be expected to subject the
Borrower to any material Environmental Liabilities. 
 4.8 Absence of Undisclosed Liabilities. Neither the Borrower nor
any Subsidiary of the Borrower is subject to any material claims, liabilities or obligations (whether known, unknown, absolute, accrued, contingent or otherwise), except (a) as and to the extent disclosed or reserved against on the face of (but
not in footnotes to) the Latest Balance Sheet or (b) obligations and liabilities under Contracts that (i) are incurred after the date of the Latest Balance Sheet of the nature, type and amount previously incurred in the ordinary course of
business consistent with past practice of the Borrower and its Subsidiaries (none of which relates to breach of Contract, breach of warranty, tort, infringement, violation of law, order or License, or any proceeding), (ii) individually and in
the aggregate, could not reasonably be expected to have or result in a Material Adverse Effect, and (iii) are not prohibited by this Agreement or any other Loan Document or (c) as set forth on Schedule 4.8. Since December 31,
2005, neither the Borrower nor any Subsidiary of the Borrower has experienced any loss contingencies (as such term is used in Statement of Financial Accounting Standards No. 5 issued by the Financial Accounting Standards Board in March 1975).
Except as set forth on Schedule 4.8, neither of the Borrower nor any Subsidiary of the Borrower has, either expressly or by operation of law, assumed or undertaken any liability of any other Person, including any obligation for corrective or
remedial action relating to environmental, health or safety laws. 
 4.9 Intentionally Left Blank. 
 4.10 Assets. The Borrower and its Subsidiaries own and have good and valid title to, or in the case of leased property have good and valid
leasehold interests in, or otherwise have full or sufficient and legally enforceable rights to use all of the properties and assets (real, personal or mixed, tangible or intangible) used or held for use in connection with, necessary for the conduct
of, or otherwise material to, their business, including all such assets reflected in the Latest Balance Sheet or acquired after the date of the Latest Balance Sheet (except accounts receivable and notes receivable paid in full subsequent to the date
of the Latest Balance Sheet and assets and properties disposed of in the ordinary course of business since the date of the Latest Balance Sheet) (the “Assets”), in each case free and clear of any Lien other than Permitted Liens.

  

 26 

 
The Borrower or a Subsidiary of the Borrower has maintained all tangible Assets in all material respects in good repair, working order and operating
condition subject only to ordinary wear and tear, and all such tangible Assets are fully adequate and suitable for the purposes for which they are presently being used. The Assets are sufficient for the conduct of the business of the Borrower and
its Subsidiaries as currently conducted and as proposed to be conducted, and immediately following the Closing, the Assets will be sufficient for the Borrower and its Subsidiaries to conduct their respective businesses in the same manner and to the
same effect as conducted immediately prior to the Closing. 
 4.11 Real Property. Except as set forth in Schedule
4.11 or any REO that is not scheduled to be sold by the Borrower or any of its Subsidiaries within two Business Days of the date on which the Borrower or any Subsidiary of the Borrower obtained ownership of such REO, neither the Borrower nor any
of its Subsidiaries owns any real property or interest therein. Schedule 4.11 contains a true, correct and complete list of all of the real property Leases in existence on the date hereof to which the Borrower or any of its Subsidiaries is a
party or which is used in the business of the Borrower or its Subsidiaries (the “Real Property Leases”). True and correct copies of all such Real Property Leases have been delivered to the Lenders, together with any amendments,
modifications or supplements thereto. There exists no material default or condition, or any state of facts or event which with the passage of time or giving of notice would constitute a material default, in the performance of its obligations under
any Real Property Lease by the Borrower or any of its Subsidiaries or, to the knowledge of the Borrower, by any other party thereto. Neither the Borrower nor any of its Subsidiaries has received any written or oral communication from the landlord or
lessor under any of the Real Property Leases claiming that the Borrower or such Subsidiary is in breach in any material respect of its obligations under the respective Real Property Leases, including due but unpaid rent or other charges. The
Borrower or a Subsidiary of the Borrower is in sole possession of the premises demised under the Real Property Leases and has not assigned, sublet, mortgaged or otherwise conveyed all or any portion of its respective interest in any Real Property
Lease or the premises demised under any Real Property Lease. 
 4.12 Material Contracts. 
 (a) Schedule 4.12(a) contains a correct and complete list of all Material Contracts in existence on the date hereof. The
Borrower has delivered to the Lenders complete and correct copies of all written Material Contracts and accurate and complete descriptions of all material terms of all oral Material Contracts. 
 (b) Each Material Contract is valid, binding and in full force and effect, and is enforceable against the Borrower and each of its
Subsidiaries, as applicable, and, to the knowledge of the Borrower, each other party thereto in accordance with its terms, subject to the Enforceability Exceptions. The Borrower and each of its Subsidiaries, as applicable, have duly performed all of
its material obligations under each such Material Contract to the extent that such obligations have accrued. Except as set forth on Schedule 4.12(b), the enforceability of any Material Contract by the Borrower or its Subsidiary party thereto
will not be adversely affected by the execution, delivery or performance of this Agreement or any other Loan Documents, and no Material Contract contains any change-in-control provision or other terms or conditions that will become applicable or
inapplicable as a result of the consummation of the transactions 

  

 27 

 
contemplated hereunder or under the Recapitalization Agreement. There are no existing material defaults (or circumstances, occurrences, events or acts that,
with the giving of notice or lapse of time or both would become material defaults) of the Borrower or any of its Subsidiaries or, to the knowledge of the Borrower, any other party thereto under any Material Contract. To the knowledge of the
Borrower, there are no circumstances, occurrences, events or acts that, with the giving of notice or lapse of time or both, would permit the Borrower or any of its Subsidiaries or any other party thereto to alter or amend any of the material terms
or conditions of any Material Contract or would permit or would result in any increased liability or penalty. Each Material Contract has been performed by the Borrower and each of its Subsidiaries, as applicable, in all material respects in
accordance with its terms and applicable law. 
 (c) Except as set forth on Schedule 4.12(c), none of the
Borrower nor any of its Subsidiaries has entered into or is bound by or subject to any of the following: (1) any Contract under which (A) any Person has directly or indirectly guaranteed Debt, liabilities or obligations of the Borrower or
any of its Subsidiaries or (B) the Borrower or any of its Subsidiaries has directly or indirectly guaranteed Debt, liabilities or obligations of any Person; (2) any Contract providing for the indemnification of any Person with respect to
material liabilities, whether absolute, accrued, contingent or otherwise; (3) any Contract (other than if made in the ordinary course of the Borrower’s business of mortgage origination) under which the Borrower or any of its Subsidiaries
has made or is obligated to make, directly or indirectly, any advance, loan, extension of credit or capital contribution to, or other investment in, any Person; (4) any Contract prohibiting or materially restricting the ability of the Borrower
or any of its Subsidiaries to conduct their respective businesses, to engage in any business or operate in any geographical area or to compete with any Person; (5) any Contract to cap fees, share fees or other payments, share expenses, waive
fees or to reimburse or assume any or all fees or expenses thereunder, in each case other than as required by law; (6) any Contract that provides for earn-outs or other similar contingent obligations; (7) any Contract that contains
(A) a “clawback” or similar undertaking requiring the reimbursement or refund of any fees (whether performance based or otherwise) paid to any member of the Borrower or any of its Subsidiaries or (B) a “most favored
nation” or similar provision; or (8) any Contract requiring the Borrower or any of its Subsidiaries (A) to co-invest with any other Person, (B) to provide seed capital or similar investment, or (C) to invest in any
investment product. 
 (d) Without limiting the representations in Section 4.12(a), (b) or (c) with
respect to Warehouse Financing Agreements, (1) none of the Borrower nor any of its Subsidiaries is in default under any Warehouse Financing Agreement in any respect that would permit the lender, buyer or other financing party thereto (a
“Warehouse Financing Party”) to terminate or suspend its obligation to finance or purchase Warehouse Loans thereunder, (2) none of the Borrower nor any of its Subsidiaries has received any written or oral notice that any
default exists under a Warehouse Financing Agreement or that a Warehouse Financing Party will terminate any Warehouse Loan facility or will cease to finance or purchase Warehouse Loans that are financed or purchased on an uncommitted or demand basis
under any Warehouse Loan Agreement in amounts consistent with past practice, (3) none of the Borrower nor any of its Subsidiaries has received any written or oral communication from any Warehouse Financing Party requesting or requiring a
repurchase of Warehouse Loans earlier than the scheduled repurchase date or otherwise on terms not set forth in the applicable Warehouse Loan Agreement or not consistent with the past course of dealing with such Warehouse Financing Party; and
(4) the expiration of each Warehouse Loan facility is as set forth on Schedule 4.12(d). 
  

 28 

 4.13 Affiliate Arrangements. 
 (a) Except as set forth in Schedule 4.13(a), and except for compensation paid or payable by the Borrower or any of its
Subsidiaries to bona-fide employees of the Borrower or any of its Subsidiaries in the ordinary course of business and consistent with past practice, there are no Contracts, arrangements, liabilities or obligations (whether or not evidenced by a
writing) (i) between the Borrower or any of its Subsidiaries, on the one hand, and any Lender or any of its Affiliates (including the Borrower or any of its Subsidiaries), on the other hand, or (ii) between the Borrower or any of its
Subsidiaries, on the one hand, and a former Subsidiary of the Borrower on the other hand (any such Contract, liability or obligation, an “Affiliate Arrangement”). Each Affiliate Arrangement is and at all times has been on terms and
conditions as favorable to the Borrower or its Subsidiary, as applicable, as would have been obtainable by it at the time in a comparable arm’s length transaction with an unrelated third party. 
 (b) Except as set forth in Schedule 4.13(b) and for mortgage loans made to employees of the Borrower or a Subsidiary of the
Borrower in the ordinary course of business and consistent with past practice, neither the Borrower nor any of its Subsidiaries has any loan outstanding, and since February 16, 2005 has not extended or maintained credit, or arranged for the
extension of credit, to any director, officer, manager, stockholder, member or employee of any of them. 
 4.14 Compliance with
Laws; Government Regulations. 
 (a) Except as set forth in Schedule 4.14(a), (a) the Borrower and
each of its Subsidiaries have complied and are in compliance in all material respects with all applicable law, and (ii) neither the Borrower nor any of its Subsidiaries has received any notice asserting or, to the knowledge of the Borrower,
does a reasonable basis exist for asserting, any violation by the Borrower or any of its Subsidiaries of any applicable law. 
 (b) The Borrower and each of its Subsidiaries (and, where required, the employees of the Borrower and each of its Subsidiaries) holds all Licenses that are required in order to permit the Borrower and each of its Subsidiaries to own
or lease its properties and assets and to conduct their respective businesses as currently conducted under and pursuant to all applicable law. All such Licenses are in full force and effect and are not subject to any suspension, cancellation or
revocation or any Proceedings related thereto, and, to the knowledge of the Borrower, no such suspension, cancellation, revocation or Proceeding is threatened or is reasonably likely. Schedule 4.14(b) contains a true, correct and complete
list of all Licenses under which the Borrower or any of its Subsidiaries (and, where required, the employees of the Borrower and each of its Subsidiaries) is operating or bound, and the Lenders have been provided with true, correct and complete
copies of such Licenses. Except as set forth on Schedule 4.14(b), and subject to Section 4.4, none of the Licenses set forth on Schedule 4.14(b) shall be adversely affected as a result of the Borrower’s execution and
delivery of, or the performance of its obligations under, this Agreement, and other Loan Document, or the Recapitalization Agreement or the consummation of the transactions hereunder or thereunder. 

  

 29 

 
Except as provided on Schedule 4.14(b), the Borrower is qualified by the FHA as a mortgagee for FHA loans, and by the VA as a lender for VA loans.
Notwithstanding the foregoing, neither Borrower nor any of its Subsidiaries has originated or serviced since February 16, 2005 any FHA or VA loan. 
 (c) To the knowledge of the Borrower, no director, trustee, managing director, officer, manager or employee of the Borrower or any of its Subsidiaries is, or while working or performing services for the
Borrower has been, (1) subject to any cease and desist, censure or other disciplinary or similar order issued by, (2) a party to any written agreement, consent agreement, memorandum of understanding or disciplinary agreement with,
(3) a party to any commitment letter or similar undertaking to, (4) subject to any order or directive by or (5) a recipient of any supervisory letter from, any Governmental Body. 
 (d) The Borrower and each of its Subsidiaries has filed all material filings required to be filed by it with any Governmental Body,
including all amendments or supplements thereto (the “Filings”) since February 16, 2005. The Filings complied in all material respects with the requirements of applicable law. The Borrower has made available to the Lenders
complete and correct copies of (1) all material Filings made since February 16, 2005, (2) all material audit or inspection reports received by the Borrower or any of its Subsidiaries from any Governmental Body and all written
responses thereto made by the Borrower or any of its Subsidiaries since February 16, 2005, (3) all material inspection reports provided to the Borrower or any of its Subsidiaries by any Governmental Body since February 16, 2005 and
(4) all non-privileged material correspondence relating to any investigation provided to the Borrower or any of its Subsidiaries by any Governmental Body since February 16, 2005. 
 (e) Except for routine examinations and audits conducted by any Governmental Body in the regular course of business of the Borrower
or any of its Subsidiaries, (1) no Governmental Body has initiated any Proceeding or, to the knowledge of the Borrower, no such Proceeding, investigation, examination, audit or review into the business or operations of the Borrower or any of
its Subsidiaries is threatened by any Governmental Body and (2) none of the Borrower or any of its Subsidiaries or any of their respective Affiliates has received any notice or communication (A) of any unresolved violation or exception by
any Governmental Body with respect to any report or statement by any Governmental Body relating to any examination of the Borrower or any of its Subsidiaries, (B) threatening to revoke or condition the continuation of any License or
(C) restricting or disqualifying their activities (except for restrictions generally imposed by rule, regulation or administrative policy on similarly regulated Persons generally). 
 4.15 Ownership and Liens. The Borrower has title to or leasehold interests in all of its assets, including the Collateral, and none
of the Collateral or such assets is subject to any Lien, except Liens created or permitted by this Agreement or the other Loan Documents, including the Liens on the Excluded Collateral granted to the Repo Lenders. 
 4.16 ERISA. 
 (a) Schedule 4.16(a) contains a true and complete list of each “employee benefit plan” (as defined in Section 3(3) of ERISA) and all other material employee, bonus, 

  

 30 

 
deferred compensation, incentive compensation, stock purchase, stock option, stock appreciation right or other stock-based incentive, severance,
change-in-control, or termination pay, hospitalization or other medical, disability, life or other insurance, supplemental unemployment benefits, profit-sharing, pension, or retirement plan, program, agreement or arrangement and each other employee
benefit plan, program, policy, agreement or arrangement, sponsored, maintained or contributed to or required to be contributed to by the Borrower or any of its Subsidiaries, for the benefit of (or with) any current or former employee, consultant, or
director, officer or manager of the Borrower or any of its Subsidiaries, whether or not written (the “Plans”). Neither the Borrower nor any of its Subsidiaries has any formal plan or commitment, whether legally binding or not, to
create any additional Plan or modify or change any existing Plan that would affect any current or former employee, director, officer, manager or consultant of the Borrower or any of its Subsidiaries. 
 (b) With respect to each of the Plans, the Borrower has heretofore made available to the Lenders true and complete copies of each
of the following documents, as applicable: (1) a copy of the Plan (including all amendments thereto) for each Plan (or a written description of any Plan that is not in writing); (2) a copy of the annual report or Internal Revenue Service
Form 5500 Series, if required under ERISA, with respect to each Plan for the last three Plan years ending prior to the date of this Agreement for which such a report was filed; (3) a copy of the two most recent actuarial reports, if applicable;
(4) a copy of the two most recent financial reports, if applicable; (5) a copy of the most recent summary plan description, together with all summaries of material modifications issued with respect to such summary plan description, if
required under ERISA, with respect to each Plan, and all other material employee communications relating to each Plan; (6) if the Plan is funded through a trust or any other funding vehicle, a copy of the trust or other funding agreement
(including all amendments thereto) and the latest financial statements thereof, if any; and (7) the most recent determination letter received from the Internal Revenue Service with respect to each Qualified Plan (as defined below). 

(c) None of the Borrower, the Borrower’s Subsidiaries, or the ERISA Affiliates maintain or contribute to (or have at any
point during the past six years maintained or contributed to) any employee benefit plan that is subject to Title IV of ERISA. No liability under Title IV or Section 302 of ERISA has been incurred by the Borrower, any Subsidiary of the Borrower
or any ERISA Affiliate that has not been satisfied in full, and no condition exists that presents a material risk to the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate of incurring any such liability. 
 (d) Each Plan has been operated and administered in all material respects in accordance with applicable law, including ERISA and
the Code, and in accordance with the provisions of such Plan, except where any failure to comply with applicable law would not reasonably be expected to have a Material Adverse Effect. There are no pending or, to the knowledge of the Borrower,
threatened or anticipated claims by or on behalf of any Plan, by any employee or beneficiary under any such Plan or otherwise involving any such Plan (other than routine claims for benefits). Without limiting the previous sentence, there are no
pending or threatened claims (other than claims for benefits in the ordinary course), lawsuits or arbitrations which have been asserted or instituted, and, to the Borrower’s knowledge, no set of circumstances exists which may reasonably give
rise to a claim or lawsuit, against the Plans, any 

  

 31 

 
fiduciaries thereof with respect to their duties to the Plans or the assets of any of the trusts under any of the Plans which could reasonably be expected to
result in any material liability of the Borrower or any of its Subsidiaries to the Pension Benefit Guaranty Corporation, the Department of Treasury, the Department of Labor, any multiemployer plan, any Plan, any participant in a Plan, or any other
party. 
 (e) Schedule 4.16(e) identifies all Plans that are intended to be “qualified plans” within
the meaning of Section 401(a) of the Code (“Qualified Plans”). The Internal Revenue Service has issued a favorable determination letter with respect to each Qualified Plan and the related trust that has not been revoked, and,
to the knowledge of the Borrower, there are no existing circumstances and no events have occurred that could adversely affect the qualified status of any Qualified Plan or the related trust. Schedule 4.16(e) also identifies each trust funding
to any Plan which is intended to meet the requirements of Section 501(c)(9) of the Code, and, to the knowledge of the Borrower, each such trust meets such requirements and provides no disqualified benefits (as such term is defined in
Section 4976(b) of the Code). 
 (f) Each Plan that is an employee welfare benefit plan under Section 3(1) of
ERISA (a “Welfare Plan”) either (1) is funded through an insurance company contract and is not a “welfare benefit fund” within the meaning of Section 419 of the Code or (2) is unfunded. No Welfare Plan
provides benefits, including death or medical benefits (whether or not insured), with respect to current or former employees of the Borrower or any of its Subsidiaries after retirement or other termination of service (other than (x) coverage
mandated by applicable law, (y) death benefits or retirement benefits under any “employee pension plan,” as that term is defined in Section 3(2) of ERISA, or (z) benefits, the full direct cost of which is borne by the
current or former employee (or beneficiary thereof)). 
 (g) Each individual who renders services to the Borrower or
any of its Subsidiaries who is classified as having the status of an independent contractor or other non-employee status for any purpose (including for purposes of taxation and tax reporting and under Plans) is properly so characterized. Except with
respect to matters relating to employee classification or job responsibilities of any position or task in determining or providing compensation, benefits, working conditions, or business operations as they relate to interactions with independent
contractors, current, and former employees, each individual who renders services to the Borrower or any of its Subsidiaries is properly classified as an independent contractor, exempt employee, or non-exempt employee for all applicable labor law
purposes (including for purposes of eligibility for overtime pay). 
 (h) No labor organization or group of employees
of the Borrower or any of its Subsidiaries has made a pending written demand to the Borrower for recognition or certification, and there are no representation or certification proceedings or petitions seeking a representation proceeding presently
pending or threatened to be brought or filed, with the National Labor Relations Board or any other labor relations tribunal or authority. There are no strikes, work stoppages, lockouts, material arbitrations or material grievances, or other material
labor disputes pending or, to the knowledge of the Borrower, threatened against or involving the Borrower or any of its Subsidiaries, and to the knowledge of the Borrower, there are no organizing activities underway with respect to employees of the
Borrower or any of its Subsidiaries. 
  

 32 

 (i) Neither the execution of this Agreement or the Recapitalization Agreement nor
the consummation of the transactions contemplated hereby or thereby will, either alone or in combination with any other event, (1) entitle any current or former employee, officer, director, manager or consultant of the Borrower, any Subsidiary
of the Borrower or any ERISA Affiliate to severance pay, unemployment compensation or any other similar termination payment or (2) accelerate the time of payment or vesting, or increase the amount of, or otherwise enhance, any benefit due to
any such employee, officer, director, manager or consultant. No amounts payable under any of the Plans or any other Contract with respect to which the Borrower or any of its Subsidiaries may have any liability would reasonably be expected not to be
deductible for federal income tax purposes by virtue of Section 280G of the Code as currently in effect. 
 4.17
Taxes. Except as set forth on Schedule 4.17: 
 (a) Each of the Borrower and its
Subsidiaries has (1) duly and timely filed (or has been included in a consolidated group which has filed) with the appropriate Taxing Authority all federal and state income Tax Returns and other material Tax Returns (federal, state and local)
required to be filed by or with respect to it (including with respect to its income, properties and operations), and all such Tax Returns are true, correct and complete in all material respects, and (2) timely paid (or there has been timely
paid on its behalf) all Taxes due or claimed to be due from or with respect to it (including with respect to its income, properties and operations) by any Taxing Authority, except for such taxes being contested in good faith and as for which
adequate reserves are being maintained in accordance with GAAP. 
 (b) Each of the Borrower and the its Subsidiaries
has complied in all material respects with all applicable law relating to the payment and withholding of Taxes (including withholding of Taxes pursuant to Sections 1441 and 1442 of the Code and any similar provisions of any foreign applicable law)
and has, within the time and manner prescribed, withheld and paid over to the proper Taxing Authority all material amounts required to be withheld and paid over under all applicable law. 
 (c) Except with regards to Liens that may be placed upon the Borrower’s REO Properties from time to time in the ordinary
course of business, there are no Liens for Taxes upon the assets or properties of the Borrower or any of its Subsidiaries except for statutory Liens for Taxes not yet due. There are no outstanding waivers or comparable consents regarding the
application of the statute of limitations with respect to any Taxes or Tax Returns of the Borrower or any of its Subsidiaries. Neither the Borrower nor any of its Subsidiaries has requested an extension of time within which to file any Tax Return in
respect of any taxable period which Tax Return has not since been filed. 
 (d) No jurisdiction in which the Borrower
or any of its Subsidiaries does not file a Tax Return has made a claim that the Borrower or any of its Subsidiaries is required to file a Tax Return for such jurisdiction. Except for administrative proceedings with respect to the Borrowers and its
Subsidiaries for 2003 and 2004, no federal, state, local or foreign audits or other administrative Proceedings have formally commenced or, to the knowledge of the Borrower, are presently ongoing with respect to any Taxes or Tax Returns of or
including the Borrower or any of its Subsidiaries, and no notification has been received in writing that such an 

  

 33 

 
audit or other Proceeding is pending or threatened with respect to any Taxes due from or with respect to the Borrower or any of its Subsidiaries or any Tax
Return filed by or with respect to the Borrower or any of its Subsidiaries. No deficiency for any Tax has been assessed in writing with respect to the Borrower or any of its Subsidiaries which has not been paid in full. Except with respect to the
administrative proceedings referenced above, no power of attorney which is currently in force has been granted by or with respect to the Borrower or any of its Subsidiaries with respect to any matter relating to Taxes. No closing agreement pursuant
to Section 7121 of the Code (or any predecessor provision) or any similar provision of any state, local or foreign law has been entered into by or with respect to the Borrower or any of its Subsidiaries. 
 (e) Except as listed in Section 4.17(e), neither the Borrower nor any of its Subsidiaries is a party to, bound by, or has any
obligation under, any Tax sharing agreement or has any potential liability or obligation to any Person as a result of, or pursuant to, any Tax sharing agreement. No claim has been or reasonably could be asserted by any Taxing Authority that the
Borrower or any of its Subsidiaries is liable for any material Taxes under or as a result of Section 482 of the Code or any similar provision of state, local or foreign law. 
 (f) Any Taxes of the Borrower or any of its Subsidiaries that accrued through, but were not due and payable as of, the date of the
Balance Sheets, were properly accrued on either Balance Sheet in accordance with GAAP, except for personal property taxes at various locations that are less than $10,000 in the aggregate. Since the date of the Balance Sheets, neither the Borrower
nor any of its Subsidiaries has incurred any liability for Taxes other than in the ordinary course of business. 
 (g)
Since its indirect acquisition by FBR, the Borrower and its Subsidiaries have been a member of FBR’s consolidated, combined, unitary or similar group for income tax purposes. 
 (h) The Borrower qualifies and has since the date of its formation qualified to be treated as a partnership or a “disregarded
entity” for United States federal income tax purposes, is currently a “disregarded entity” for United States federal income tax purposes and neither the Borrower nor any holder of any Membership Interest has taken a position
inconsistent with such treatment with regard to any Tax. Each Subsidiary of the Borrower that is a partnership or limited liability company qualifies and has since the date of its formation qualified to be treated as a partnership or disregarded
entity for United States federal income tax purposes, and no Person has taken a position inconsistent with such treatment with regard to any Tax. 
 (i) The Tax Returns of the Borrower and each of its Subsidiaries for all tax years through 2002, (i) have been examined and the tax years closed by the Internal Revenue Service, and no adjustments to such
Tax Returns were made, or (ii) the statute of limitations with respect to all such Tax Returns has expired. 
 4.18
Debt. The Borrower is not obligated with respect to any Debt that is not permitted by this Agreement. 
  

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 4.19 Intellectual Property. 
 (a) Schedule 4.19(a)(i) sets forth a complete and correct list of all material Intellectual Property and indicates whether
such Intellectual Property is owned by the Borrower or any of its Subsidiaries or licensed to the Borrower or any of its Subsidiaries by a third Person. All of the material Intellectual Property owned by the Borrower or any of its Subsidiaries is
owned free and clear of any Liens other than Permitted Liens. The Borrower and its Subsidiaries have the legal right to use the Intellectual Property in connection with their respective businesses as currently conducted and, immediately after the
Closing, will continue to have such right to the same extent and on the same terms as each of them was entitled to use such Intellectual Property immediately prior to the Closing. Schedule 4.19(a)(ii) sets forth a complete and correct list of
all written, oral or other licenses and agreements with respect to any Intellectual Property that is licensed by or to the Borrower or any of its Subsidiaries (the “License Agreements”). 
 (b) To the knowledge of the Borrower, the business of the Borrower and its Subsidiaries has not and does not infringe any
intellectual property rights of any Person in any material respect. To the knowledge of the Borrower, except as set forth on Schedule 4.19(b), no Intellectual Property owned by the Borrower or any of its Subsidiaries is being materially
infringed by any Person. Except as set forth on Schedule 4.19(b) or pursuant to the License Agreements, no Intellectual Property owned by the Borrower or any of its Subsidiaries is subject to any outstanding judgment, injunction, order,
decree or agreement restricting the use thereof by the Borrower or any of its Subsidiaries with respect to their respective businesses as currently conducted or restricting the licensing thereof by such any of them to any Person. Except as set forth
on Schedule 4.19(b), neither the Borrower nor any of its Subsidiaries has entered into any agreement to indemnify any other Person against any charge of infringement of Intellectual Property. The Intellectual Property owned by the Borrower or
any of its Subsidiaries that has been registered with, filed in or issued by the United States Patent and Trademark Office, the United States Copyright Office or other filing offices, domestic or foreign is set forth on Schedule 4.19(b) and
such registrations, filings, issuances and other actions in respect thereof remain in full force and effect. 
 (c) All
Information Technology used in the business of the Borrower or its Subsidiaries as currently conducted functions in all material respects in accordance with its applicable specifications and is adequate for its use. 
 (d) The Borrower and its Subsidiaries have at all times complied with all applicable laws, as well as their own rules, policies,
and procedures relating to privacy, data protection, and the collection and use of personal information collected, used, or held for use by the Borrower or any of its Subsidiaries in the conduct of their business. No action, claim, complaint, suit,
inquiry, judicial or administrative proceeding, audit or investigation has been asserted or threatened against the Borrower or any of its Subsidiaries alleging a violation of any Person’s privacy or personal information or data rights and the
consummation of the transactions contemplated hereby will not breach or otherwise cause any violation of any law or rule, policy, or procedure, related to privacy, data protection, or the collection and use of personal information collected, used,
or held for use by the Borrower or any of its Subsidiaries in the conduct of their business. The Borrower and its Subsidiaries take reasonable measures to ensure that personal information is protected against unauthorized access, use, modification,
or other misuse. 
  

 35 

 4.20 Labor and Employment Matters. Except as set forth on Schedule 4.20:

 (a) There are no labor agreements, collective bargaining agreements, work rules or practices, or any other
labor-related agreements or arrangements with any labor union, labor organization, trade union or works council to which the Borrower or any of its Subsidiaries is a party or bound or covering employees of the Borrower or any of its Subsidiaries. To
the knowledge of the Borrower, no union organizing campaign with respect to the employees of the Borrower or any of its Subsidiaries is threatened or underway, no labor union, labor organization, trade union, works council or group of employees of
the Borrower or any of the Borrower’s Subsidiaries has made a pending demand for recognition or certification, and there are no representation or certification proceedings or petitions seeking a representation proceeding presently pending or
threatened in writing to be brought or filed with the National Labor Relations Board or any similar state or foreign Governmental Body. 
 (b) There is no unfair labor practice charge or complaint against the Borrower or any of its Subsidiaries pending or, to the knowledge of the Borrower, threatened before the National Labor Relations Board or
any similar state or foreign Governmental Body. There is no charge with respect to or relating to the Borrower or any of its Subsidiaries pending or, to the knowledge of the Borrower, threatened before the Equal Employment Opportunity Commission or
any other Governmental Body responsible for the prevention of unlawful employment practices. Neither the Borrower nor any of its Subsidiaries has received notice of any complaint, lawsuit or other proceeding pending or threatened in any forum by or
on behalf of any present or former employee of such entities, any applicant for employment, or classes of the foregoing, alleging breach of any express or implied contract of employment, any applicable law governing the employment relationship or
the termination thereof. 
 (c) Except as may be the subject of the Class Action Litigation, the Borrower and its
Subsidiaries are in compliance with all applicable laws respecting employment and employment practices, terms and conditions of employment (including termination of employment), wages, hours of work, occupational safety and health, and worker
classification, and are not engaged in any unfair labor practices, including the Fair Labor Standards Act, the Immigration Control and Reform Act, 42 U.S.C. Sec. 1981, 42 U.S.C. Sec. 1985 and Title VII of the Civil Rights Act of 1964, the Equal Pay
Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the Health Insurance Portability Protection Act, the whistleblower provisions of Sarbanes-Oxley, the Occupational Safety and Health
Act, or any other analogous state law. Neither the Borrower nor any of its Subsidiaries has received written notice of the intent of any Governmental Body responsible for the enforcement of labor or employment laws to conduct an investigation with
respect to or relating to employees and, to the knowledge of the Borrower, no such investigation is in progress. 
 (d)
Since February 16, 2005, neither Borrower nor any of its Subsidiaries has effectuated (1) a “plant closing” (as defined in the Worker Adjustment and Retraining Notification Act (the “WARN Act”) or any similar law)
affecting any site of employment or one or more facilities or operating units within any site of employment or facility of the Borrower or any of its Subsidiaries; (2) a “mass layoff” (as defined in the WARN Act, or any similar Law)
affecting any site of employment or facility of the Borrower or any of its Subsidiaries; or (3) an 

  

 36 

 
“exit incentive or other employment termination program” (as defined in the Older Workers Benefit Protection Act (the “OWBPA”) or any
similar Law). 
 4.21 Hedging Agreements. Schedule 4.21 sets forth a true, complete and correct list of all
Hedging Agreement (other than any forward commitment entered into to sell Mortgage Loans or any best efforts, mandatory or other rate lock or rate protection issued to a mortgagor pursuant to a Mortgage Loan) and other similar risk management
arrangements and derivative financial instruments, whether entered into for the account of the Borrower or any of its Subsidiaries or for the account of one or more Investors. Each Hedging Agreement constitutes the valid and legally binding
obligation of the parties thereto, enforceable in accordance with its terms, and are in full force and effect. Neither the Borrower nor any of its Subsidiaries or, to the knowledge of the Borrower, any other party thereto is in material breach of
any of its obligations under any Hedging Agreement. 
 4.22 Insurance. Schedule 4.22 contains a true, correct and
complete list of all policies of liability, theft, fidelity, business interruption, life, fire, product liability, workmen’s compensation, health, errors or omissions, malpractice and other material forms of insurance held by the Borrower or
any of its Subsidiaries for the benefit of the Borrower or any of its Subsidiaries (specifying the insurer, amount of coverage, type of insurance, policy number, and any material pending claims thereunder), which insurance and bonds are of the type
and in amounts customarily carried by Persons conducting businesses similar to the business of the Borrower and its Subsidiaries as currently conducted (“Insurance Policies”). With respect to each Insurance Policy: (a) each
Insurance Policy is in full force and effect; (b) all premiums due and payable have been paid; (c) no notice of cancellation or termination (or other notice that such Insurance Policy will not be renewed on substantially the same terms as
are now in effect or the premium on such Insurance Policy shall be materially increased on the renewal thereof) has been received; and (d) to the knowledge of the Borrower, there exists no event, occurrence, condition or act (including the
transactions contemplated under the Loan Documents or the Recapitalization Agreement) that, with the giving of notice, the lapse of time or the happening of any other event or condition, would entitle any insurer to terminate or cancel any such
Insurance Policy, except as a result of a change in control with respect to the Borrower. The Borrower and its Subsidiaries, as applicable, have complied in all material respects with the terms and provisions of such Insurance Policy and bonds.
There is no material claim by the Borrower or any of its Subsidiaries pending under any of such policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds, or that could reasonably be
expected to cause a material increase in the insurance rates of the Borrower or any of its Subsidiaries. The Fidelity Insurance, the directors and officers liability insurance, and errors and omissions policies and all other insurance coverage of
the Borrowers and its Subsidiaries have been maintained in accordance with applicable law in all material respects. 
 4.23
Mortgage Loans. 
 (a) Owned Mortgage Loan Schedule. Schedule 4.23(a) sets
forth a true, complete and correct list, as of the date thereof, of all Owned Mortgage Loans and the following information with respect to each such Owned Mortgage Loan: (1) whether it is a Borrower Loan, a Serviced Loan or a Warehouse Loan
(and, if so, the applicable warehouse lender or repurchaser under the Repurchase Agreement), (2) the face amount of the Mortgage Note and the aggregate 

  

 37 

 
unpaid principal balance, (3) the interest rate, (4) maturity date, (5) the debt-income ratio (if applicable), (6) the loan-to-value
ratio, (7) prepayment penalty term, (8) prepayment penalties, (9) lien priority, and (10) the state where the Mortgage Collateral securing the Owned Mortgage Loan is located. 
 (b) Ownership of Owned Mortgage Loans. Except as set forth on Schedule 4.23(b)(1), the Borrower or a
Subsidiary of the Borrower is the sole beneficial owner and holder of legal title to each Owned Mortgage Loans. Except as set forth on Schedule 4.23(b)(2) (which schedule shall identify all forward loan sale commitments in place as of
the date hereof), no Person other than the Borrower or a Subsidiary of the Borrower has any interest in the Owned Mortgage Loans. Except as set forth on Schedule 4.23(b)(3), neither the Borrower nor any of its Subsidiaries has assumed any
obligations with respect to any Non-Originated Mortgage Loan. 
 (c) Correspondent Agreements.

 (1) Schedule 4.23(c)(1) sets forth a true, complete and accurate list of all Correspondent Agreements. The Borrower
has delivered or otherwise made available to the Lenders true and complete copies of each Correspondent Agreement. Each Correspondent Agreement is in full force and effect. 
 (2) Except for Mortgage Loans repurchased by the Borrower pursuant to a Correspondent Agreement due to a breach of a representation and
warranty set forth therein, to the knowledge of the Borrower, each of the representations and warranties of the Borrower or any Subsidiary of the Borrower set forth in each Correspondent Agreement is true and correct in all material respects with
respect to each Mortgage Loan sold pursuant to such Correspondent Agreement. 
 (3) Except as set forth on Schedule
4.23(c)(3), all Mortgage Loans sold by the Borrower or any Subsidiary of the Borrower to an Investor are sold on a servicing released-basis, and, after the closing of such sale, neither the Borrower nor any Subsidiary of the Borrower retains any
rights or obligations to service such Mortgage Loans. Except as set forth on Schedule 4.23(c)(3) and subject to interim servicing under a Mortgage Servicing Agreement, prior to such sale to an Investor, the Borrower or a Subsidiary of the
Borrower has all rights and obligations to service such Mortgage Loans. 
 (d) Compliance with Applicable
Law. 
 (1) Each Originated Mortgage Loan and, to the knowledge of the Borrower, each Non-Originated Mortgage Loan
(and, in each case, the related Mortgage Loan Documents and Mortgage Loan Files) has at all times during which it was an Owned Mortgage Loan, complied with, and the activities of the Borrower and the Borrower’s Subsidiaries (including,
activities relating to the documentation, underwriting, origination, purchase, assumption, modification, sale, pooling, servicing, subservicing and master servicing) comply with and at all times have been in compliance with, (A) all applicable
law then in effect, including all predatory and abusive lending, usury, truth-in-lending, real estate settlement procedures, consumer credit protection 

  

 38 

 
(including the Uniform Consumer Credit Code), fair credit reporting, unfair collection practices, equal credit opportunity, fair housing and disclosure laws
and other laws applicable to the solicitation, origination, servicing and collection of mortgage loans and any requirement that the Borrower receive disclosure materials and, if applicable, rescission materials, with respect to such mortgage loan;
(B) the material terms of any Correspondent Agreement in effect at the time the Mortgage Loan was sold applicable to such Mortgage Loan and any schedule, statement or certificate furnished to the Investors pursuant to any Mortgage Servicing
Agreement or Correspondent Agreement; and (C) in all material respects, the standard underwriting guidelines of the Borrower and each Subsidiary of the Borrower in effect at the time such Mortgage Loan was originated. 
 (2) Each Pipeline Application, if and when funded, will be in compliance with all applicable law. 
 (3) Except for payment defaults of less than 30 days, there are no defaults in complying with the terms of any Owned Mortgage Loans, and
all Taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or ground rents which previously became due and owing and which, if left unpaid, would result in a default under an Owned Mortgage Loan,
have been paid, or an escrow of funds has been established in an amount sufficient to pay for every such item which remains unpaid and which has been assessed but is not yet due and payable. Neither the Borrower nor any Subsidiary of the Borrower
has advanced funds, or induced, solicited or knowingly received any advance of funds by a party other than the mortgagor, directly or indirectly, for the payment of any amount required under any Owned Mortgage Loan, except for interest accruing from
the date of the Mortgage Note or date of disbursement of the Owned Mortgage Loan proceeds, whichever is earlier, to the date which precedes by one month the due date of the first installment of principal and interest. 
 (4) In connection with the origination and servicing of each Mortgage Loan, all requirements of any federal, state or local law in effect
at the time of the origination or servicing, as applicable, of such Mortgage Loan, including all applicable predatory and abusive lending, usury, truth-in-lending, real estate settlement procedures, consumer credit protection (including Uniform
Consumer Credit Code laws), fair credit reporting, unfair collection practices, equal credit opportunity or fair housing and disclosure laws applicable to the solicitation, origination servicing and collection of payments in respect of mortgage
loans have been complied with, and any mortgagor has received all disclosure materials required by applicable law with respect to the making of mortgage loans. 
 (5) No Owned Mortgage Loan is (1) a loan defined under or covered by the Home Ownership and Equity Protection Act of 1994, as
amended, (2) a “high cost,” “threshold,” “covered,” “predatory,” “abusive,” or similarly defined loan, including refinance loans, under any other applicable law (or a similarly classified loan
using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees), or (3) a “High Cost Loan” or “Covered
Loan” as defined in the S&P 

  

 39 

 
LEVELS glossary. The Borrower and each Subsidiary of the Borrower has implemented and conducted compliance procedures to determine if each Owned Mortgage
Loan is a “high cost” home loan or a similarly classified loan under applicable law. 
 (e)
Modifications and Waivers. Except as set forth in the Mortgage Loan Documents or the Mortgage Loan Files and identified on Schedule 4.23(e), to the knowledge of the Borrower, the terms of each Mortgage Note and Mortgage have not
been impaired, waived, altered or modified in any respect from the date of their origination except by a written instrument, which written instrument has been recorded if recordation is necessary to protect the interests of the owner thereof. The
execution of any waiver, alteration or modification was not in violation of any warehouse agreement or repurchase agreement to which the Borrower or a Subsidiary of the Borrower is a party, and the substance of any such waiver, alteration or
modification has been communicated to and approved in writing by the title insurer and any issuer of a policy of mortgage guaranty insurance, if applicable, to the extent required by the relevant policies, and its terms are reflected in the Mortgage
Loan Documents or the applicable Mortgage Loan Files. Except as set forth on Schedule 4.23(a) or except as set forth in the Mortgage Loan Documents or the Mortgage Loan Files and identified on Schedule 4.23(e), neither the Borrower nor
any Subsidiary of the Borrower has (1) subordinated the Lien of any Mortgage Loan to any other Mortgage or Lien or (2) released any portion of the Mortgage Collateral from the Lien of any Owned Mortgage Loan, except upon receipt of payment
in full of all amounts due under such Owned Mortgage Loan. No Mortgage Note or Mortgage with respect to an Owned Mortgage Loan requires the holder thereof to release all or any portion of the released Mortgage Collateral from the Lien of the related
Mortgage Note or Mortgage, except upon payment in full of all amounts due under such Owned Mortgage Loan. 
 (f)
Enforceability of Mortgage Loans. Except as set forth on Schedule 4.23(f), each Owned Mortgage Loan: (1) is evidenced by an enforceable Mortgage Note and is not subject to any right of rescission, offset,
counterclaim or defense, including the defense of usury, and (2) is secured by a duly recorded and enforceable first or, as to Subordinate Priority Mortgage Loans, second priority Mortgage on the real property and improvements described in or
covered by the related Mortgage. Except to the extent that the enforceability may be affected by applicable bankruptcy, reorganization, insolvency, conservatorship, receivership, moratorium and other laws affecting the rights of creditors generally,
each Mortgage Note and Mortgage Loan Document in respect of an Owned Mortgage Loan has been duly and validly executed by the Borrower, and, to the knowledge of the Borrower, by the other parties thereto and is enforceable and a binding obligation of
the parties thereto in accordance with its terms, and the exercise of any rights thereunder will not render any Owned Mortgage Loan or related Mortgage Loan Documents unenforceable, in whole or in part, or subject to any right of rescission, offset,
counterclaim or defense, including the defense of usury, and no such right of rescission, offset, counterclaim or defense has been asserted with respect thereto. To the knowledge of the Borrower, each Borrower had, at the time of the origination of
the applicable Owned Mortgage Loan, the full right, power, authority and capacity to pledge the Mortgage Collateral pledged under the related Owned Mortgage Loan. 
  

 40 

 (g) Mortgage Collateral. 
 (1) Except as set forth on Schedule 4.23(g)(1): (A) no part of any Mortgage Collateral securing an Owned Mortgage Loan has
been condemned; (B) there is no Proceeding pending or, to the knowledge of the Borrower, threatened against or affecting any Borrower or any of the Mortgage Collateral securing an Owned Mortgage Loan that, if determined adversely to such
Borrower or Mortgage Collateral, would reasonably be expected to adversely affect the value of such Mortgage Collateral; and (C) there is no casualty affecting any portion of the Mortgage Collateral securing an Owned Mortgage Loan. 

(2) To the knowledge of the Borrower, all of the real property and improvements included in the Mortgage Collateral securing each Owned
Mortgage Loan comply in all material respects with all applicable zoning, land use, environmental and other applicable law, as well as any regulatory agreement or restrictive covenant affecting such Mortgage Collateral. There is no pending action or
proceeding directly involving any mortgaged Mortgage Collateral securing an Owned Mortgage Loan of which the Borrower or any Subsidiary of the Borrower is aware in which compliance with any Environmental Law, rule or regulation is an issue; and to
the knowledge of the Borrower, nothing further remains to be done to satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite to use and enjoyment of said property. 
 (3) If an Owned Mortgage Loan is secured by a long-term residential lease, (A) the lessor under the lease holds a fee simple interest
in the land; (B) the terms of such lease expressly permit the mortgaging of the leasehold estate, the assignment of the lease without the lessor’s consent and the acquisition by the holder of the Mortgage of the rights of the lessee upon
foreclosure or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar protections; (C) the terms of such lease do not (i) allow the termination thereof upon the lessee’s default without the
holder of the Mortgage being entitled to receive written notice of, and opportunity to cure, such default, (ii) allow the termination of the lease in the event of damage or destruction as long as the Mortgage is in existence,
(iii) prohibit the holder of the Mortgage from being insured (or receiving proceeds of insurance) under the hazard insurance policy or policies relating to the Mortgaged Property or (iv) permit any increase in rent other than
pre-established increases set forth in the lease; (D) the original term of such lease is not less than 15 years; (E) the term of such lease does not terminate earlier than five years after the maturity date of the Mortgage Note; and
(F) the Mortgaged Property is located in a jurisdiction in which the use of leasehold estates in transferring ownership in residential properties is a widely accepted practice. 
 (4) The Borrower and the Borrower’s Subsidiaries have properly filed or caused to be properly filed all UCC financing statements,
including all extension statements, in the appropriate offices required to perfect and maintain a valid Lien in all Mortgage Collateral for which a filing of a UCC financing statement may be used to perfect and maintain a valid Lien in such Mortgage
Collateral. 
 (5) The Mortgage Collateral securing each of the Owned Mortgage Loans is, and has been at all times during
which such Mortgage Collateral secured an Owned Mortgage Loan, covered by policies of hazard and flood insurance, to the extent 

  

 41 

 
required by applicable law, all in a form usual and customary in the industry and all of which are in full force and effect, and all amounts due and payable
under each policy have been, or will be, paid prior to the Closing Date. All fire and casualty policies covering the real property and improvements encumbered by each Mortgage related to an Owned Mortgage Loan (A) name the mortgagee and its
successors and assigns as the insured under a standard mortgage clause, (B) to knowledge of the Borrower, are in full force and effect, and (C) afford insurance against fire and such other risks as are usually insured against in the
special risk or all risk form of extended coverage insurance generally available. Each Mortgage or other related Loan Document for each Owned Mortgage Loan provides that insurance proceeds and condemnation proceeds will be applied to either restore
or repair the related mortgaged Mortgage Collateral or repay the principal of the related Owned Mortgage Loan, with, in some cases, the related Borrower being entitled to receive proceeds in excess of the amount utilized to restore or repair the
related mortgaged Mortgage Collateral. 
 (6) To the knowledge of the Borrower, there are no uninsured casualty losses to the
premises securing the Owned Mortgage Loans or any casualty losses to such premises where coinsurance has been or will be claimed by the insurance company or where the loss, exclusive of contents, is greater than the net recovery from the casualty
insurance carrier. To the knowledge of the Borrower, all damage with respect to which casualty insurance proceeds have been received by or through the Borrower or any Subsidiary of the Borrower has been repaired or is in the process of being
repaired with such proceeds. 
 (7) To the knowledge of the Borrower, there are no structural defects affecting any of the
improvements included in the Mortgage Collateral securing the Owned Mortgage Loans, other than defects for which adequate reserves have been established by the Borrower with the Borrower or any Subsidiary of the Borrower and which are identified on
Schedule 4.23(g)(7). 
 (8) In the event that an Owned Mortgage Loan is secured by a deed of trust, all applicable law
with respect to the trustee’s service under such deed of trust have been complied with or, if not complied with, can be cured solely by substituting trustees thereunder and by filing a substitution of trustee document in the appropriate filing
or recording office. 
 (9) To the knowledge of the Borrower, the Mortgage Collateral securing each Owned Mortgage Loan is
lawfully occupied under applicable law; all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the such mortgaged Mortgage Collateral and, with respect to the use and occupancy of the same,
including certificates of occupancy, have been made or obtained from the appropriate authorities. 
 (10) The source of the
down payment with respect to each Owned Mortgage Loan has been verified in accordance with the guidelines of the Borrower or a Subsidiary of the Borrower unless such Owned Mortgage Loan is in an acceptable program that does not require verification
of assets. 
  

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 (11) Each Mortgage or other Loan Document related to each Owned Mortgage Loan contains an
enforceable provision for the acceleration of the unpaid balance of the related Owned Mortgage Loan, if, without prior consent of lender or satisfaction of certain conditions, the related mortgaged Mortgage Collateral or interest therein is directly
or indirectly transferred or sold or encumbered (including in connection with subordinate financing) without the prior written consent of the mortgagee thereunder. 
 (12) The Mortgage Collateral securing an Owned Mortgage Loan is located in the state identified in Schedule 4.23(a) and consists of
a contiguous parcel of real property with a detached single family residence erected thereon, or a two- to four-family dwelling, or an individual condominium unit in a condominium project, or an individual unit in a planned unit development or a
townhouse; provided, however, that any condominium project or planned unit development shall conform with the applicable law regarding such dwellings. No mortgaged Mortgage Collateral securing an Owned Mortgage Loan consists of
manufactured homes, log homes, mobile homes, geodesic domes or other unique property types. None of the mortgaged Mortgage Collateral securing an Owned Mortgage Loan is comprised in whole or part of cooperative units. As of the respective appraisal
date for each item of mortgaged Mortgage Collateral, no portion of such mortgaged Mortgage Collateral was being used for commercial or mixed-use purposes and, to the Borrower’s or Borrower’s Subsidiaries knowledge, since the date of such
appraisal, no portion of such mortgaged Mortgage Collateral has been used for commercial purposes. No Owned Mortgage Loan finances builder inventory. If the mortgaged Mortgage Collateral securing an Owned Mortgage Loan is a condominium unit or a
planned unit development (other than a de minimus planned unit development) such condominium or planned unit development project complies with applicable law. 
 (h) Mortgage Holders. Except as set forth on Schedule 4.23(h), each Owned Mortgage Loan was originated
by an entity that is supervised and examined by a federal or state authority or by a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act. To the knowledge of the Borrower,
all Persons that have had any interest in an Owned Mortgage Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such interest, were) (1) in compliance with all applicable law
(including all applicable licensing requirements of the laws of the state in which the Mortgage Collateral securing an Owned Mortgage Loan is located), and (2) (A) organized under the laws of the state in which the Mortgage Collateral
securing such Owned Mortgage Loan is located, (B) qualified to do business in such state, (C) a federal savings and loan association or national bank having principal offices in such state, or (D) not doing business in such state. To
the knowledge of the Borrower, no act or acts by any Person which has had an interest in any Owned Mortgage Loan will render the Owned Mortgage Loan or Mortgage Loan Documents unenforceable, in whole or in part, or subject to any right of
rescission, and no such right of rescission has been asserted or, to the knowledge of the Borrower, threatened with respect thereto. 
 (i) Title Insurance. Except as set forth on Schedule 4.23(i), each Owned Mortgage Loan is insured by an ALTA lender’s title insurance policy or other generally acceptable form of policy or insurance,
containing such endorsements and affirmative insurance 

  

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as is customary for similar transactions; each such title insurance policy is issued by a title insurer qualified to do business in the jurisdiction where
the related Mortgage Collateral is located, and insures the originator and its successors and assigns as to the first or second priority Lien of the Mortgage in the original principal amount of the Owned Mortgage Loan subject only to those Liens
shown on the title policy. With respect to Warehouse Loans, the applicable warehouse lender, as assignee of the originator’s rights, is an insured of such lender’s title insurance policy, and such lender’s policy is in full force and
effect. None of the Borrower, any Subsidiary of the Borrower or, to the knowledge of the Borrower, any prior servicer or owner has committed or suffered any act or omission that has impaired, or would reasonably be expected to impair, the coverage
of such lender’s policy. 
 (j) Defaults and Delinquencies. Except as set forth on
Schedule 4.23(j), no Owned Mortgage Loan is delinquent in payment in excess of 30 days or otherwise in default, and there are no events that, with the giving of notice or the passage of time, or both, would constitute a default, breach or
event of acceleration under any Owned Mortgage Loan. To the knowledge of the Borrower, there are no pending requests for material modification, extension, workout, foreclosure or deed in lieu of foreclosure in connection with any Owned Mortgage
Loan. 
 (k) Escrows. Except as set forth on Schedule 4.23(k), the Borrower or a Subsidiary of the
Borrower (or the servicer acting on behalf of the Borrower or a Subsidiary of the Borrower) collects all escrows related to the Owned Mortgage Loans to the extent that the Mortgage Loan Documents require any escrows. Except as set forth on
Schedule 4.23(k), all escrow accounts of the Borrower have been maintained by the Borrower and the Borrower’s Subsidiaries (or the servicer acting on behalf of the Borrower or a Subsidiary of the Borrower) in accordance with all
applicable law, and in accordance with the Mortgage Servicing Agreement and the Mortgage Loan Documents related thereto. Except as set forth on Schedule 4.23(k), the Borrower or a Subsidiary of the Borrower (or the servicer acting on behalf
of the Borrower or a Subsidiary of the Borrower) has properly credited to the account of the pertinent Borrowers all interest required to be paid on any escrow account of the Borrower through the Closing Date. 
 (l) Escrow Analysis. The Borrower and the Borrower’s Subsidiaries (or the servicer acting on behalf of
the Borrower or a Subsidiary of the Borrower) have properly conducted, in all material respects, an escrow analysis for each Owned Mortgage Loan within the 12-month period immediately preceding the Closing Date (unless such Owned Mortgage Loan was
originated in such 12-month period). All books and records with respect to each such Owned Mortgage Loan are in good condition and are adjusted to reflect properly the results of the escrow analysis. The Borrower and the Borrower’s Subsidiaries
(or the servicer acting on behalf of the Borrower or a Subsidiary of the Borrower) have delivered timely and proper notification to the Borrower under each such Owned Mortgage Loan of all payment adjustments resulting from such escrow analysis.

 (m) Letters of Credit. There are no letters of credit held by the Borrower or a Subsidiary of
the Borrower with respect to Mortgage Loans. 
 (n) Loan Documents. Except as set forth on Schedule
4.23(n), the Borrower’s warehouse lenders or other repurchase buyer or a custodian therefor has physical 

  

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possession of the executed original Mortgage Note for each Owned Mortgage Loan, which Mortgage Notes are located in the location set forth in Schedule
4.23(n). Each Mortgage Loan File related to an Owned Mortgage Loan is complete and accurate in all material respects, and all monies received with respect to each Owned Mortgage Loan have been properly accounted for and applied. There are no
material defects in any Owned Mortgage Loan or related Mortgage Loan File. To the knowledge of the Borrower, the documents, instruments and agreements used in underwriting each Owned Mortgage Loan were not falsified. 
 (o) Advances. Except as set forth on Schedule 4.23(o), neither the Borrower nor any Subsidiary of the
Borrower (nor the servicer acting on behalf of the Borrower or a Subsidiary of the Borrower) has advanced funds, directly or indirectly, for the payment of any amount required under the Mortgage Loan Documents for each Owned Mortgage Loan except for
interest accruing from the date of the related Mortgage Note or date of disbursement of the Owned Mortgage Loan proceeds, whichever is earlier, to the date which precedes by one month the due date of the first installment of principal and interest.
Except as set forth on Schedule 4.23(o), neither the Borrower nor any Subsidiary of the Borrower is under any obligation to make any future advances under any Owned Mortgage Loan, and the proceeds of each Owned Mortgage Loan have been
fully advanced. Except as set forth on Schedule 4.23(o), which schedule also sets forth the source and amount of future funding, any mortgage amounts that may hereafter be required to be disbursed to the applicable Borrower are properly held
in the appropriate escrow or other reserve accounts with or on behalf of the Borrower or a Subsidiary of the Borrower. 
 (p) Repurchased/Unsold Loans. Schedule 4.23(p) sets forth a true, complete and accurate list, as of the date of such Schedule, of (i) each Repurchased/Unsold Loan, (ii) the unpaid principal
balance of each such Repurchased/Unsold Loan as of the date thereof, (iii) any advances made with respect to each such Repurchased/Unsold Loan by the Borrower, a Subsidiary of the Borrower or any servicer, (iv) the current payments status
of each such Repurchased/Unsold Loan (e.g., 30+ days delinquent, foreclosure, etc.) and (v) an explanation setting forth the reason that each such Repurchased/Unsold Loan was repurchased or is unable to be sold pursuant to a Correspondent
Agreement (e.g., repurchased upon breach of representation, repurchased upon early payment default, foreclosure, document defects, failure to satisfy conditions to sale, etc.). 
 (q) Investor Commitments. Except as set forth on Schedule 4.23(b)(ii), there are no commitments made by
Investors to purchase Mortgage Loans from the Borrower or any Subsidiary of the Borrower (or to guarantee and purchase mortgage-backed securities with respect thereto) or other future or option contracts. 
 (r) Adjustable Mortgage Rates. All Owned Mortgage Loans with adjustable rates, if any, have been timely and
appropriately adjusted, in all material respects, and the applicable Borrowers have been appropriately advised where it is the obligation of the Borrower or a Subsidiary of the Borrower to do so. All Taxes, assessments and similar charges due in
respect of the property covered by each Owned Mortgage Loan having an impound account administered by the Borrower or a Subsidiary of the Borrower or a servicer acting on behalf of the Borrower or a Subsidiary of the Borrower are current.

  

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 (s) REO. As of the date of Schedule 4.23(s), neither
the Borrower nor any Subsidiary of the Borrower holds any REO and does not own or lease real property related to a Mortgage Loan other than as disclosed in Schedule 4.23(s). As of the date hereof, no Mortgage Collateral securing an Owned
Mortgage Loan is in foreclosure by the Borrower or any Subsidiary of the Borrower on behalf of itself or on behalf of any Investor other that as disclosed in Schedule 4.23(s). 
 (t) Whole Loan. Each Owned Mortgage Loan is a Whole Loan. 
 (u) Loan-to-Value Ratio. If any Owned Mortgage Loan had an original loan-to-value ratio of greater than 80%, and the
Mortgage Loan Documents reflect that the Owned Mortgage Loan is covered by a PMI policy, the excess over 78% is and will be insured as to payment defaults by a PMI policy until terminated pursuant to the Homeowners Protection Act of 1998, 12 U.S.C.
§ 4901, et seq. All provisions of such PMI policy have been and are being complied with, such policy is in full force and effect, and all premiums due thereunder have been paid. Any Owned Mortgage Loan subject to a PMI policy
obligates the Borrower thereunder to maintain the PMI policy and to pay all premiums and charges in connection therewith. Any such premium is not payable from any portion of the mortgage interest rate. 
 (v) Pipeline Applications. 
 (1) Compliance. The Borrower and the Borrower’s Subsidiaries have complied in all material respects with all applicable
law with respect to the origination, processing, underwriting and credit approval of the Pipeline Applications, including those laws relating to real estate settlement procedures, consumer credit protection, truth-in-lending laws, usury limitations,
fair housing, transfers of servicing, collection practices, equal credit opportunity and adjustable rate mortgages. Without limiting the generality of the foregoing, the documentation in connection with the origination, processing, underwriting and
credit approval of the Pipeline Applications complied in all material respects with all applicable law in effect at the time that such Pipeline Applications were prepared and processed by the Borrower or a Subsidiary of the Borrower. 
 (2) Books and Records; Loan Files. The information contained in each Mortgage Loan File with respect to the Pipeline
Applications, and other documents upon which underwriters generally rely (such as verification of employment) is complete and accurate in all material respects and is in compliance in all material respects with applicable law. 
 (3) Pipeline Applications. Schedule 4.23(v)(3) sets forth, as of the date indicated thereon, (A) the last name
of each applicant who has submitted a Pipeline Application, provided that the Pipeline Application is then in force and has not resulted in a closed loan; (B) the loan amount, (C) the interest rate on the loan, (D) the origination
date of the loan, (E) the approval date of the loan, (F) the lien status of the loan and (G) the property address (including the state) where the Mortgage Collateral securing such loan is located. In the case of any of the Pipeline
Applications that have been approved by the Borrower or a Subsidiary of the Borrower, there are and will be no terms or conditions relating to such Pipeline Application that will prevent the Borrower or any Subsidiary of the Borrower from timely
making any required disclosures or otherwise complying with all applicable law. 
  

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 (w) Appraisals. The Mortgage Loan File for each Owned Mortgage Loan
contains an appraisal of the related mortgaged Mortgage Collateral signed prior to the funding of the Owned Mortgage Loan application by a duly qualified appraiser and the appraisal and appraiser both satisfy the requirements of the Investors and
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the rules and regulations promulgated thereunder, all as in effect on the date the Owned Mortgage Loan was originated. 
 (x) No Satisfaction of Mortgage. As to any Owned Mortgage Loan, the Mortgage has not been satisfied, canceled,
subordinated or rescinded, in whole or in part, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would effect any such satisfaction, release, cancellation,
subordination or rescission. 
 (y) Acceptable Investment. Neither the Borrower nor the Subsidiary of the
Borrower has any knowledge of any circumstances or conditions with respect to any Owned Mortgage Loan, a Mortgaged Property, any Borrower or any Borrower’s credit standing that can reasonably be expected to cause private institutional investors
to regard such Owned Mortgage Loan as an unacceptable investment, cause such Owned Mortgage Loan to become delinquent, or adversely affect the value or marketability of such Owned Mortgage Loan. 
 (z) Qualified Mortgages. Except for Mortgage Loans that are delinquent 90 days or more as of the “start-up
date” of a real estate mortgage investment conduit, each Mortgage securing an Owned Mortgage Loan is a “qualified mortgage” within Section 860(a)(3) of the Code. 
 (aa) No Additional Collateral. As to each Owned Mortgage Loan, the related Mortgage Note is not and has not been
secured by any collateral, pledged account or other security except the lien of the corresponding Mortgage and the security interest of any applicable security agreement or chattel mortgage. 
 (bb) Prepayment Penalties. With respect to any Owned Mortgage Loan that contains a provision permitting imposition of
a prepayment charge or penalty interest in connection with a prepayment of such Owned Mortgage Loan (a “Prepayment Penalty”): (1) the Prepayment Penalty is disclosed to the related Borrower in the loan documents pursuant to applicable
state and federal law, (2) for Owned Mortgage Loans originated on or after September 1, 2004, the duration of the prepayment period shall not exceed three (3) years from the date of the note, unless such Owned Mortgage Loan was
modified to reduce the prepayment period to no more than three years from the date of the related Mortgage Note and the related Borrower was notified in writing of such reduction in payment period, and (3) notwithstanding any state or federal
law to the contrary, the lender is prohibited from imposing such Prepayment Penalty in any instance when the mortgage debt is accelerated as a result of the related Borrower’s default in making the applicable monthly payments thereunder.

  

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 4.24 Servicing Agreement Matters. 
 (a) Mortgage Servicing Agreements. Schedule 4.23(a)(1) sets forth a true, correct and complete list of
all Mortgage Servicing Agreements in effect as of the date hereof. Each Mortgage Servicing Agreement is valid, binding and enforceable in accordance with its terms. The Borrower and the Borrower’s Subsidiaries have serviced all Mortgage Loans,
or caused through the use of a servicer such Mortgage Loans to be serviced or subserviced, in accordance with all applicable law, documents evidencing Warehouse Loans and Correspondent Agreements. Neither the Borrower nor any Subsidiary of the
Borrower has notice of any default by other parties under any Mortgage Servicing Agreement. No material default of the Borrower or any Subsidiary of the Borrower exists under any Mortgage Servicing Agreement, including any default arising with
notice or lapse of time, or both. Except as set forth on Schedule 4.23(a)(2), each Mortgage Servicing Agreement between the Borrower or a Subsidiary of the Borrower, on the one hand, and any other Person as servicer, on the other hand,
provides the Borrower or the Subsidiary of the Borrower, as the case may be, with an indemnity by such other Person for any losses or damages that the Borrower or the Subsidiary of the Borrower may suffer or incur under a Correspondent Agreement
with respect to the servicing or sub-servicing of the Mortgage Loan covered by such Mortgage Servicing Agreement. 
 (b) Servicing Rights. Except as set forth on Schedule 4.23(b), none of the Servicing Rights is subject to recourse against the Borrower or any Subsidiary of the Borrower for losses on liquidation of a
Mortgage Loan, borrower defaults or repurchase obligations upon the occurrence of non-payment or other events, and neither the Borrower nor any Subsidiary of the Borrower has any obligation to any Person to which it may have sold or transferred any
Mortgage Loans or Servicing Rights, and no such Person has any recourse against the Borrower or any Subsidiary of the Borrower in this regard. For the purposes of this Section 4.23(b), “recourse” shall not include industry standard
representations and warranties (such as those concerning title, zoning, etc.), except to the extent that such representations and/or warranties relate generally to economic performance. Except as set forth on Schedule 4.23(b), with respect to
all Mortgage Loans sold to Investors, neither the Borrower nor any Subsidiary of the Borrower has any obligations for servicing such Mortgage Loans as of the effective date of the sale of the Mortgage Loans to an Investor, except during the interim
period (which interim period is no greater than 60 days) after the sale of such Mortgage Loan in which the Borrower or a Subsidiary of the Borrower has an obligation to service such Mortgage Loans. 
 4.25 True and Complete Information. All factual and financial information (taken as a whole) previously furnished to the
Administrative Agent or any Lender in connection with this Agreement by the Borrower is, and all factual and financial information (taken as a whole) furnished to the Administrative Agent or any Lender by the Borrower after the date of this
Agreement will be, true and accurate in all material respects on the date on which such information is dated, certified or furnished, and is not, and will not be, incomplete by omitting to state any material fact necessary to make such information
(taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. 
 4.26 OFAC. The Borrower (i) is not a person whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) does not engage in any dealings 

  

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or transactions prohibited by Section 2 of such executive order, or is otherwise associated with any such person in any manner violative of
Section 2, or (iii) is not a person on the list of Specially Designated Nationals and Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control
regulation or executive order. 
 4.27 Patriot Act. The Borrower is in compliance, in all material respects, with
(i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order
relating thereto, and (ii) the Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of the Loans will be used, directly or indirectly,
for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 
 4.28 Survival of
Representations and Warranties, Etc. All representations and warranties made under this Agreement and the other Loan Documents shall be deemed to be made at and as of the date hereof, the Closing Date and at and as of the date of the
disbursement of any Loan, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate in all respect on and as of such
earlier date). All such representations and warranties shall survive the effectiveness of this Agreement, the execution and delivery of the Loan Documents and the making of the Loans. 
 Section 5 Affirmative Covenants 
 The Borrower and each Subsidiary covenants and
agrees that so long as any Lender has a Commitment hereunder or the principal of or interest on any Loan remains unpaid: 
 5.1
Maintenance of Existence. The Borrower and each of its Subsidiaries will (1) preserve and maintain its existence as a limited liability company or corporation (as applicable) and its good standing in the jurisdiction of its
formation, (2) qualify and remain qualified, as a foreign limited liability company and a licensed mortgage lender in each jurisdiction in which such qualification is required, except where such failure to qualify as a foreign corporation would
not have a Material Adverse Effect; and (3) maintain the validity of all its Licenses to the extent necessary for the proper conduct of its business as currently conducted. 
 5.2 Maintenance of Records. The Borrower and each of its Subsidiaries will keep adequate records and books of account, in which
complete entries will be made in accordance with GAAP, reflecting all financial transactions of the Borrower and its Subsidiaries. The principal records and books of account, including those concerning the Collateral, shall be kept at the chief
executive office of the Borrower and its Subsidiaries described above. The Borrower and its Subsidiaries will not move such records and books of account or change its chief executive office or the name under which it does business without
(a) giving the Administrative Agent at least 30 days’ prior written notice, and (b) filing, or authorizing the filing by the Administrative Agent of, financing statements reasonably satisfactory to the Administrative Agent prior to
such move or change. 
  

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 5.3 Maintenance of Properties. The Borrower and each of its Subsidiaries will
maintain, keep and preserve all of its properties (tangible and intangible) necessary in the proper conduct of its business in good working order and condition, ordinary wear and tear and casualty excepted. 
 5.4 Conduct of Business. The Borrower and each of its Subsidiaries will continue to (1) engage in a business of the same
general type as conducted by it on the date of this Agreement and (2) subject to available funding, operate and carry on its business in the usual, regular and ordinary course consistent with its past practices. 
 5.5 Maintenance of Insurance. The Borrower and each of it Subsidiaries will maintain insurance with financially sound and reputable
insurance companies or associations in such amounts and covering such risks as are customarily carried by companies engaged in the same or a similar business and similarly situated, including, without limitation, insurance covering the inventory and
equipment as required hereby. Without limiting the generality of the foregoing, the Borrower and each of its Subsidiaries shall maintain Fidelity Insurance covering the Borrower’s and its Subsidiaries’ officers and employees in an amount
acceptable to the Administrative Agent. If the Borrower or any Subsidiary fails or refuses to obtain or maintain any such insurance coverage, then Administrative Agent (at its election) may (but is not obligated to) obtain and maintain such
insurance coverage on behalf of the Borrower or such Subsidiary, and the premiums and other costs thereof (a) will be included in the Debt hereunder secured by the Collateral and (b) will be due and payable by the Borrower to
Administrative Agent immediately upon demand. Each such policy for liability insurance must name Administrative Agent (for the benefit of itself as Administrative Agent and each Lender) as an additional insured, and each such other policy for
insurance must name the Administrative Agent as loss payee. Each such policy must also require the insurer to furnish Administrative Agent with written notice at least 10 days prior to any termination, cancellation or lapse of coverage and must
provide Administrative Agent with the right (but not the obligation) to cure any non-payment of premium. Upon Administrative Agent’s request, the Borrower (from time to time) will furnish Administrative Agent with proof of such insurance (in
form and substance reasonably acceptable to Administrative Agent) and a copy of the related policy. 
 5.6 Compliance with Laws;
Taxes. 
 (a) The Borrower and each of its Subsidiaries will comply in all material respects (1) with all
applicable laws, rules, regulations and orders (including, without limitation, ERISA and all Environmental Laws) and (2) with the provisions and requirements of all Licenses. Upon a Principal Officer of the Borrower or any Subsidiary obtaining
knowledge thereof, the Borrower will notify Administrative Agent promptly (but in any event within five Business Days in detail of any actual or alleged material failure to comply with or material violation of any such laws, rules, regulations or
orders, or under the terms of any of such Licenses, or of the occurrence or existence of any facts or circumstances that with the passage of time, the giving of notice or otherwise could create such a failure to comply or violation or could
reasonably be expected to occasion the termination of any of such License. 
  

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 (b) The Borrower and its Subsidiaries will file with the appropriate Taxing
Authority all federal and state income Tax Returns and other material Tax Returns (federal, state and local) required to be filed and shall pay and discharge all taxes, assessments and governmental charges and levies imposed on it or any of its
property prior to the date on which any penalty for non-payment is incurred, except for such Taxes (1) being contested in good faith by appropriate proceedings diligently prosecuted, (2) for which adequate reserves are being maintained in
accordance with GAAP, and (3) the consequences of such non-payment could not reasonably be expected to have a Material Adverse Effect. 
 5.7 Right of Inspection. At any reasonable time and from time to time, with reasonable notice, the Borrower will permit, except as prohibited by applicable law, the Administrative Agent or any agent or representative of
the Administrative Agent to audit, examine and verify the Collateral, examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Borrower or any Subsidiary, and to discuss the affairs,
finances and accounts of the Borrower and its Subsidiaries with any of its officers and directors and the Borrower’s and its Subsidiaries’ independent accountants. The Administrative Agent agrees to give the Borrower not fewer than five
days’ prior written notice of taking any action described in the preceding sentence. 
 5.8 Reporting Requirements.
The Borrower will furnish to each Lender 
 (a) Monthly Financial Statements of the Borrower. As soon as
available and in any event within 30 days after the end of each fiscal month of each fiscal year, unaudited financial statements consisting of consolidated and consolidating balance sheets of the Borrower and its Subsidiaries as of the end of
such month and consolidated and consolidating statements of income and changes in stockholders equity of the Borrower and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such month, all in
reasonable detail and stating in comparative form the respective variances between such consolidated and consolidating figures and the Borrower’s operating plan or budget for such fiscal year, and all prepared in accordance with GAAP. Such
financial statements shall be certified to be accurate by a Principal Officer of the Borrower (subject to year-end adjustments and the absence of footnote disclosure) and such certificate shall state that as of the date thereof there is not any
existing Default or Event of Default; 
 (b) Annual Financial Statements of the Borrower. As soon as available
and, in any event, within 90 days after the end of each fiscal year of the Borrower, audited financial statements consisting of the consolidated and consolidating balance sheets of the Borrower and its Subsidiaries as of the end of such fiscal year,
and consolidated and consolidating statements of income, changes in stockholders’ equity and cash flows of the Borrower and its Subsidiaries for such fiscal year, all in reasonable detail and all prepared in accordance with GAAP, accompanied by
an unqualified opinion thereon of an independent certified public accounting firm selected by the Borrower and reasonably acceptable to the Administrative Agent; 
 (c) Management Letters. Promptly upon receipt thereof, copies of any reports submitted to the Borrower by independent
certified public accountants in connection with examination of the financial statements of the Borrower made by such accountants; 
  

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 (d) Notice of Litigation; Proceedings. Promptly after the commencement
thereof and, in any event, within five Business Days after the earlier of receipt by or actual knowledge of the Borrower of the commencement thereof or service of process with respect thereto, notice of all actions, suits, investigations and
Proceedings before any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the Borrower or any Subsidiary; 
 (e) Notice of Defaults and Events of Default. As soon as possible and, in any event, within five days after the occurrence
of each Default and Event of Default, a written notice setting forth the details of such Default or Event of Default and the action that is proposed to be taken by the Borrower or any Subsidiary with respect thereto; 
 (f) Notice of Material Adverse Effect. Prompt notice of (1) any change in the business, assets, liabilities, financial
condition or results of operations of the Borrower or any Subsidiary; (2) the happening of any event; or (3) the assertion or threat of any claim, in the case of (1), (2) and (3) which has had or may have a Material Adverse
Effect (such notice to be provided no later than 10 Business Days after Borrower’s determination that such occurrence of the applicable change, event, assertion, or threat has had or may have a Material Adverse Effect); 
 (g) Environmental Matters. Notice of the occurrence of any event or any other development by which the Borrower or any of
its Subsidiaries (1) fails to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (2) becomes subject to any Environmental Liability,
(3) receives notice of any claim with respect to any Environmental Liability, or (iv) becomes aware of any basis for any Environmental Liability and in each of the preceding clauses, which individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect; and 
 (h) General Information. Such other information
respecting the condition or operations, financial or otherwise, of the Borrower or any Subsidiary as the Administrative Agent or any Lender from time to time reasonably may request. 
 5.9 Further Assurances. The Borrower and each of its Subsidiaries shall from time to time execute and deliver, or cause to be
executed and delivered, such additional instruments, certificates or documents, and take all such actions, as the Administrative Agent may reasonably request, for the purposes of implementing or effectuating the provisions of this Agreement and the
other Loan Documents, or of more fully perfecting or renewing the rights of the Administrative Agent and the Lenders with respect to the Collateral (or with respect to any additions thereto or replacements or proceeds thereof or with respect to any
other property or assets hereafter acquired by the Borrower or any Subsidiary which may be deemed to be part of the Collateral) pursuant hereto or thereto. 
 5.10 Fiscal Year. The Borrower and each of its Subsidiaries will maintain a fiscal year that has a December 31st year end. 
 5.11 Deposit Accounts. The Borrower and each of its Subsidiaries (a) will maintain commercial deposit accounts only at
federally insured depository institutions rated as “well 

  

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capitalized” by their primary federal regulator, (b) will provide Administrative Agent with written notice of the institution’s name and
location and the account name and number with respect to each such account within twenty (20) calendar days after opening or acquiring any such account, and (c) will use commercially reasonable efforts to deliver to Lenders deposit account
control agreements for each institution for which the Borrower or any of its Subsidiaries has a deposit account. The Borrower’s current deposit accounts are listed in Schedule 4.6(b). 
 5.12 ERISA. The Borrower and each of its Subsidiaries shall comply in all material respects with the provisions of ERISA to the
extent applicable to any Plan maintained for the employees of the Borrower or any of its Subsidiaries or any ERISA Affiliate. The Borrower and each of its Subsidiaries will do or cause to be done all such acts and things that are required to
maintain the qualified status of each Plan that is intended to be qualified under Section 4.01(a) of the Code, and tax exempt status of each trust forming part of such Plan. 
 5.13 Loan Purpose. The Borrower will use the proceeds of each Advance for the purposes set forth in Section 2.10. 

5.14 Post-Closing Matters. Within 60 days after the Closing Date, the Borrower shall obtain and deliver to Administrative Agent
duly executed control agreements, in form and substance reasonably satisfactory to Administrative Agent, with respect to the Borrower’s and its Subsidiaries’ deposit accounts. 
 Section 6 Negative Covenants 
 The Borrower and each of its Subsidiaries
covenants and agrees that so long as any Lender has a Commitment hereunder or the principal of or interest on any Loan remains unpaid: 
 6.1 Liens. Neither the Borrower nor any of its Subsidiaries will create, incur, assume or permit to exist, any Lien upon or with respect to any of its properties, now owned or hereafter acquired, except: 
 (a) Liens in favor of the Administrative Agent for the ratable benefit of the Lenders pursuant to this Agreement and the other Loan
Documents; 
 (b) Liens that are incidental to, and in the ordinary course of, the conduct of the business of the
Borrower, are not incurred in connection with the obtaining of credit and do not materially impair the value or use of assets of the Borrower; 
 (c) purchase-money Liens, whether now existing or hereafter arising (including those arising out of a Capital Lease or a Synthetic Lease) on any fixed assets provided that (1) any property subject to a
purchase-money Lien is acquired by the Borrower in the ordinary course of its respective business and the Lien on any such property is created contemporaneously with such acquisition, (2) each such Lien shall attach only to the property so
acquired and the proceeds thereof, and (3) the property subject to such Liens does not constitute (A) equity interests in or substantially all of the property of another Person, or (B) any other asset the loss of which could
reasonably be expected to have or cause a Material Adverse Effect; 
  

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 (d) Liens imposed by law for taxes, assessments or charges of any governmental
authority for claims not yet due or which are being contested in good faith by appropriate proceedings and with respect to which (1) adequate reserves or other appropriate provisions are being maintained by such Person in accordance with and if
required by GAAP and (2) such Liens (in Administrative Agent’s reasonable opinion) could not reasonably be expected to have or cause a Material Adverse Effect; 
 (e) statutory Liens of landlords and of carriers, warehousemen, mechanics, materialmen, and other Liens imposed by law or that
arise by operation of law in the ordinary course of business from the date of creation thereof, in each case only for amounts not yet due or which are being contested in good faith by appropriate proceedings and with respect to which
(1) adequate reserves or other appropriate provisions are being maintained by such Person in accordance with and if required by GAAP and (2) such Liens (in Administrative Agent’s reasonable opinion) could not reasonably be expected to
have or cause a Material Adverse Effect; 
 (f) Liens incurred or deposits made (including, without limitation, surety
bonds and appeal bonds) in connection with workers’ compensation, unemployment insurance and other types of social security benefits or to secure the performance of tenders, bids, leases, Contracts (other than for the repayment of Debt),
statutory obligations and other similar obligations; 
 (g) the interest or title of any lessor or sublessor in
Property leased under an operating lease or of any licensor or sublicensor in Property licensed to the Borrower; 
 (h)
zoning restrictions, easements, covenants and rights of way and similar restrictions on the use of real property that do not materially impair the use of such property in the normal operation of the business or the value of such property for the
purpose of such business; 
 (i) Liens created by the Repurchase Agreements; and 
 (j) Liens approved in writing by the Administrative Agent. 
 6.2 Debt. Neither the Borrower nor any Subsidiary will create, incur, assume or permit to exist, any Debt, except: (a) the
Obligations; (b) Debt of the Borrower subordinated to the Obligations on terms satisfactory to the Lenders; (c) Debt of the Borrower (including Debt arising out of a Capital Lease or a Synthetic Lease) secured by purchase-money Liens
permitted by this Agreement; (d) Guarantees in respect of Debt not prohibited hereunder; (e) intercompany Debt and Guarantees between the Borrower and its Subsidiaries as approved in writing by the Administrative Agent; (f) Debt under
the Repurchase Agreements; and (g) Debt approved in writing by the Administrative Agent. Notwithstanding the foregoing, neither Borrower nor any Subsidiary will create, incur, assume or permit to exist, any Debt that would have a right to
payment which would be senior to the right to payment of the Loans other than warehouse loans in the ordinary course of business. 
 6.3 Mergers, etc. Neither the Borrower nor any Subsidiary will merge or consolidate with or into any Person. 
  

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 6.4 Sale and Leaseback. Neither the Borrower nor any Subsidiary will sell, transfer
or otherwise dispose of, any real or personal property to any Person and thereafter, directly or indirectly, lease back the same or similar property. 
 6.5 Restricted Payments. Neither the Borrower nor any Subsidiary will make any Restricted Payment provided that, after the Maturity Date, (i) the Borrower may make Restricted Payments to the
Lenders, and (ii) Restricted Payments may be made to employees who terminate employment with the Borrower and are eligible to receive stock options if such Restricted Payments are approved by the Borrower’s Board of Managers. 

6.6 Sale of Assets. Neither the Borrower nor any Subsidiary will sell, lease, assign, transfer, license or otherwise dispose of,
any of its now owned or hereafter acquired assets, except for (a) any mortgage loans in the ordinary course of business; (b) the Disposition of immaterial assets (other than such mortgage loans) no longer used or useful in the conduct of
its business; (c) the Disposition of Cash Equivalents, Restricted Payments or any other Investment permitted hereunder; (d) intercompany transfers of assets or property among the Borrower and its Subsidiaries as approved in writing by the
Administrative Agent; and (e) discounts or forgiveness of mortgage loans and accounts receivable in the ordinary course of business in connection with the collection or compromise thereof, to the extent permitted by this Agreement; provided,
however, that in connection with the Borrower’s cost-cutting measures, the disposition or sublease of leased property in connection with closed facilities (and personal property associated therewith) shall be permitted hereunder.

 6.7 Investments, Loans, etc. Neither the Borrower nor any Subsidiary will purchase, hold or acquire (including
pursuant to any merger with any Person that was not a wholly-owned Subsidiary prior to such merger), any common stock, evidence of indebtedness, Capital Stock or other equity interests or other securities (including any option, warrant, or other
right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person other than overnight investments (all of
the foregoing being collectively called “Investments”), or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person that constitute a business unit, except: 
 (a) Mortgage loans and mortgage backed securities originated or acquired in the ordinary course of business and consistent with the
Borrower’s current standards and guidelines which are set forth on Schedule 6.7(a); 
 (b) Cash
Equivalents; 
 (c) Except for employee promissory notes referenced in Schedule 4.20, travel advances or other advances
in cash that do not exceed $10,000 to any individual employee and do not at any time in the aggregate outstanding exceed $100,000, which are made to any employee of the Borrower or any of its Subsidiaries in the ordinary course of their business;

 (d) Investments in deposit accounts in which the Administrative Agent has a first lien perfected security interest
under the Loan Documents; 
  

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 (e) Investments (including debt obligations) received in connection with the
bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business; 
 (f) Receivables owing to the Borrower or any Subsidiary created or acquired in the ordinary course of business and payable on
customary trade terms of the Borrower; and 
 (g) Existing Investments described on Schedule 6.7. 
 6.8 Acquisitions. Neither the Borrower nor any Subsidiary will become a partner or joint venturer with any Person, or purchase or
acquire all or substantially all of the assets of any Person, or any division or business line of any Person, or any Capital Stock of or ownership interest in any other Person. 
 6.9 Transactions with Affiliates. Neither the Borrower nor any Subsidiary will enter into any transaction, including, without
limitation, the purchase, sale or exchange of property or the rendering of any service, with any Affiliate, except (a) in the ordinary course of and pursuant to the reasonable requirements of the Borrower’s business and upon fair and
reasonable terms no less favorable to the Borrower than would be applicable in a comparable arm’s length transaction with a Person not an Affiliate; (b) transactions between the Borrower and either of the Lenders; (c) reasonable and
customary compensation payments to non-employee directors who are not affiliated with the Borrower or its Affiliates; (d) reasonable and customary compensation of officers and employees (including bonuses) and other benefits (including
retirement, health, stock options and other benefit plans) and indemnification arrangements arising in the ordinary course of business; and (e) the payment of reasonable and customary incentive bonuses to employees and officers of the Borrower
and its Subsidiaries; provided, however, that in no event shall the Borrower, directly or indirectly, pay any management, consulting or similar fees to any Affiliate or to any manager, director, officer or employee of the Borrower or any of its
Subsidiaries without the prior written consent of the Administrative Agent or as contemplated by the Loan Documents, the Recapitalization Agreement or the documents contemplated thereby . 
 6.10 Organizational Documents. Neither the Borrower nor any of its Subsidiaries shall permit any amendments to its Organizational
Documents without first obtaining the prior written consent of the Lenders. 
 6.11 Capital Expenditures. Without the
prior written consent of the Administrative Agent, neither the Borrower nor any Subsidiary shall incur Capital Expenditures in any fiscal year in an aggregate amount in excess of $100,000. 
 6.12 Issuance of Additional Equity. Neither the Borrower nor any Subsidiary shall permit the issuance, reissuance, conversion or
exercise of any equity interests (common stock, preferred stock, partnership interests, member interests or otherwise) or any options, warrants, convertible securities or other rights to purchase such beneficial or equity interest. 
 6.13 Terms of and Modifications to Material Contracts. Neither the Borrower nor any Subsidiary shall (and each shall not permit any
other party to) cancel, terminate, amend, modify or otherwise alter any Material Contract outside the ordinary course of business, or that 

  

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could reasonably be expected to have or cause a Material Adverse Effect. In addition, each of the Borrower and each of its Subsidiaries shall use
commercially reasonable efforts to ensure that no Material Contract entered into by any such Person after the Closing Date (including the renewal or extension of any Material Contract existing as of the Closing Date) will restrict such Person’s
ability to collaterally assign or encumber such Material Contract in favor of the Lenders. 
 6.14 New Line of Business; New
Subsidiaries. Neither the Borrower nor any of its Subsidiaries will (a) engage in any line of business substantially different from those lines of business carried on by it on the Closing Date or (b) form or acquire (or cause or
permit the creation or acquisition of) any Subsidiary without the prior written consent of the Administrative Agent. 
 6.15
Margin Stock Restrictions; Other Federal Statutes. The Borrower will not use any of the proceeds of the Loans, directly or indirectly, to purchase or carry, or to reduce or retire any indebtedness that was originally incurred to
purchase or carry, any “Margin Stock” within the meaning of Regulation T, U or X of the FRB or for any other purpose that might constitute the transactions contemplated hereby as a “Purpose Credit” within the meaning of
Regulation T, U or X of the FRB. In addition, the Borrower will not engage as its principal business in the extension of credit for purchasing or carrying “Margin Stock” within the meaning of Regulation T, U or X of the FRB. The Borrower
will not cause or permit any Loan Document to violate any other regulation of the FRB. 
 6.16 Litigation. Except with
respect to the settlement of the Class Action Lawsuits in accordance with the terms of the settlement agreements entered into prior to the date of this Agreement or with the prior written consent of the Administrative Agent, neither the Borrower nor
any of its Subsidiaries shall settle any Proceedings before any Governmental Body, affecting the Borrower, or any threat or demand thereof, that (1) involve a purported amount in controversy in excess of $500,000 or (2) if determined
adversely to the Borrower or any Subsidiary, could have a Material Adverse Effect. 
 6.17 ERISA. The Borrower will not,
and will not permit any of the Borrower’s Subsidiaries or ERISA Affiliates to, (a) establish, maintain or become obligated to contribute to any employee benefit plan that is subject to Title IV of ERISA or § 412 of the Code, or
(b) engage or permit any Plan to engage in any “prohibited transaction” (as defined in § 406 of ERISA or § 4975 of the Code) that would be reasonably expected to have a Material Adverse Effect. 
 Section 7 Adjusted Tangible Net Book Value Adjustment 
 7.1 Estimated Closing Balance Sheet. Prior to the Closing Date, Lender NLC, at Lender NLC’s expense, shall prepare, or cause to be prepared, and deliver to NLC Holding: (i) a good faith
estimated consolidated balance sheet of the Borrower and its Subsidiaries as of the Closing Date prepared in accordance with Section 7.6 and consistent with the methods and practices set forth in Annex A (the “Estimated Closing Balance
Sheet”); (ii) a calculation based on the Estimated Closing Balance Sheet setting forth a good-faith estimate of the Adjusted Tangible Net Book Value as of the Closing Date (the “Estimated Closing Adjusted Tangible Net 

  

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Book Value”); and (iii) a certificate of a Principal Officer of the Borrower certifying that the Estimated Closing Balance Sheet and the
calculation of the Estimated Closing Adjusted Tangible Net Book Value were prepared in accordance with Section 7.6 and consistent with the methods and practices set forth in Annex A. Lender NLC shall give, and shall cause its respective
advisors to give, NLC Holding and its advisors reasonable access to such books, records and personnel of the Borrower and its Subsidiaries as may be reasonably necessary to enable NLC Holding to confirm, prior to the Closing, the amounts set forth
on the Estimated Closing Balance Sheet and the calculation of the Estimated Closing Adjusted Tangible Net Book Value. Each of Lender NLC and NLC Holding shall use reasonable efforts to agree, prior to the Closing, on the amounts set forth on the
Estimated Closing Balance Sheet and the calculation of the Estimated Closing Adjusted Tangible Net Book Value. 
 7.2 Draft
Closing Balance Sheet. Within 45 calendar days after the Closing Date, NLC Holding shall, at the Company’s expense, prepare and deliver to Lender NLC: (i) a consolidated balance sheet of the Borrower and its Subsidiaries prepared
in accordance with Section 7.6 and consistent with the methods and practices set forth in Annex A (the “Draft Closing Balance Sheet”); (ii) a calculation based on the Draft Closing Balance Sheet setting forth the Adjusted
Tangible Net Book Value as of the Closing Date (the “Draft Closing Adjusted Tangible Net Book Value”); and (iii) a certificate of an executive officer of NLC Holding certifying that the Draft Closing Balance Sheet and the calculation
of the Draft Closing Adjusted Tangible Net Book Value were prepared in accordance with Section 7.6 and consistent with the methods and practices set forth in Annex A. The Borrower shall give, and shall cause its advisors to give, NLC Holding
and its advisors reasonable access to such books, records and personnel of the Borrower and its Subsidiaries and their respective accountants as may be reasonably necessary to enable NLC Holding to prepare the Draft Closing Balance Sheet and the
calculation of the Draft Closing Adjusted Tangible Net Book Value. 
 7.3 Review Period. Lender NLC shall have 15
calendar days from the date on which the Draft Closing Balance Sheet is delivered to it to assess the preparation and confirm the accuracy of the Draft Closing Balance Sheet and the calculation of the Draft Closing Adjusted Tangible Net Book Value
(the “Review Period”). The Borrower shall give, and shall cause its advisors to give, Lender NLC and its accountants reasonable access to such books, records and personnel of the Borrower and its Subsidiaries and their respective
accountants as may be reasonably necessary to enable Lender NLC to assess the preparation and confirm the accuracy of the Draft Closing Balance Sheet and the calculation of the Draft Closing Adjusted Tangible Net Book Value. If Lender NLC believes
that the Draft Closing Balance Sheet (or the calculation of the Draft Closing Adjusted Tangible Net Book Value) was not prepared in accordance with Section 7.6 and consistent with the methods and practices set forth in Annex A and/or are not
accurate, Lender NLC may, on or prior to the last day of the Review Period, deliver a notice to NLC Holding setting forth, in reasonable detail, each disputed item or amount and the basis for Lender NLC’s disagreement therewith, together with
supporting calculations (the “Dispute Notice”). If no Dispute Notice is received by NLC Holding on or prior to the last day of the Review Period, the Draft Closing Balance Sheet and the amount of Draft Closing Adjusted Tangible Net Book
Value set forth in NLC Holding’s certificate shall be deemed accepted by Lender NLC and shall be final and binding on Lender NLC as the Final Closing Balance Sheet and the Final Closing Adjusted Tangible Net Book Value. 
  

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 7.4 Dispute Mechanism. 
 (a) If Lender NLC delivers to NLC Holding a Dispute Notice on or prior to the last day of the Review Period, then Lender NLC and
NLC Holding shall negotiate in good faith to resolve any disputes in such Dispute Notice. If Lender NLC and NLC Holding agree on all disputes in such Dispute Notice, then the Draft Closing Balance Sheet and the Draft Closing Adjusted Tangible Net
Book Value, each as modified by such agreement of Lender NLC and NLC Holding, shall be and become the Final Closing Balance Sheet and the Final Closing Adjusted Tangible Net Book Value. If the parties are unable to resolve all disputed items in such
Dispute Notice within 30 calendar days after Lender NLC’s delivery of such Dispute Notice, NLC Holding and Lender NLC shall, within 15 calendar days after Lender NLC’s delivery of such Dispute Notice, jointly retain an independent
valuation firm reasonably agreed to by NLC Holding and Lender NLC (the “Independent Arbiter”), to resolve the issues set forth in the Dispute Notice. The Independent Arbiter shall conduct its review of such issues, any related work papers
of the Borrower’s accountants and any supporting documentation and hear such presentations by Lender NLC and NLC Holding as the Independent Arbiter deems necessary. 
 (b) NLC Holding and Lender NLC shall use their respective reasonable best efforts to retain the Independent Arbiter as promptly as
practicable following delivery of the Dispute Notice to NLC Holding and to cooperate with one another and the Independent Arbiter to resolve the issues set forth in the Dispute Notice no later than 60 calendar days following the date of the
Independent Arbiter’s retention so that the Independent Arbiter may deliver to Lender NLC and Buyer a report (the “Adjustment Report”) setting forth the adjustments, if any, that should be made to the disputed Draft Closing Balance
Sheet or Lender NLC’s proposed calculation of the Draft Closing Adjusted Tangible Net Book Value. The fees, expenses and costs of the Independent Arbiter for the services described herein shall be allocated between Lender NLC and NLC Holding in
proportion to the aggregate differences between their respective calculations of Adjusted Tangible Net Book Value as embodied in the Draft Closing Balance Sheet and NLC Holding’s certificate, as to NLC Holding, and the Dispute Notice, as to
Lender NLC, and the Adjusted Tangible Net Book Value as finally determined by the Independent Arbiter in the Adjustment Report. NLC Holding, on the one hand, and Lender NLC, on the other, shall each reimburse the other to the extent the other has
actually paid more of the fees, expenses and costs of the Independent Arbiter than the amount so required to be paid by such party pursuant to the preceding sentence. The Draft Closing Balance Sheet and the Draft Closing Adjusted Tangible Net Book
Value, each as modified by the Adjustment Report, shall be and become the Final Closing Balance Sheet and the Final Closing Adjusted Tangible Net Book Value, respectively. The Adjustment Report, the Final Closing Balance Sheet and the Final Closing
Adjusted Tangible Net Book Value shall be final and binding upon NLC Holding and Lender NLC, and shall be deemed a final arbitration award that is enforceable in any court having jurisdiction. 
 (c) Effective upon the end of the Review Period (if a timely Dispute Notice is not delivered), or upon the resolution of all
matters set forth in the Dispute Notice by agreement of the parties hereto or by the issuance of the Adjustment Report (if a timely Dispute Notice is delivered) (the “Resolution Date”), the Draft Closing Balance Sheet and the amount of
Draft Closing Adjusted Tangible Net Book Value shall be adjusted to the extent necessary to reflect 

  

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the final resolution of any disputed items in accordance with the last sentence of Section 7.4(a), the second sentence of Section 7.4(b), or
Section 7.4(c), as applicable. 
 7.5 Adjustment Payment. Promptly and, in any event, no later than three
(3) Business Days following the Resolution Date: 
 (1) If the Final Closing Adjusted Tangible Net Book Value is less
than the Estimated Closing Adjusted Tangible Net Book Value, Lender NLC shall pay the Borrower the amount of such deficiency together with interest thereon at five percent (5%) per annum calculated from the Closing Date through the actual
payment date; and 
 (2) If the Final Closing Adjusted Tangible Net Book Value is greater than the Estimated Closing Adjusted
Tangible Net Book Value, the Borrower shall pay Lender NLC the amount of such excess together with interest thereon at five percent (5%) per annum calculated from the Closing Date through the actual payment date. 
 7.6 Accounting Procedures. The Draft Closing Balance Sheet and the Final Closing Balance Sheet shall each be prepared in accordance
with GAAP (except as set forth on Annex A) and consistent with the methods and practices set forth in Annex A and using the same principles, procedures, policies, reserve calculation methodologies and other methods and practices that were used to
prepare the Latest Balance Sheet, which principles, procedures, policies, reserve calculation methodologies and other methods and practices are described in Annex A. 
 Section 8 Conditions Of Lending 
 The obligations of the Lenders to make Loans shall be subject to
the following conditions: 
 8.1 Conditions Precedent to Closing. The Closing and the initial disbursement of the Loans
shall be subject to the following conditions precedent: 
 (a) The Loan Documents shall have been appropriately
completed, duly executed by the parties thereto, recorded where necessary and delivered to the Administrative Agent. 
 (b) No Default or Event of Default shall have occurred and be continuing. 
 (c) All representations
and warranties contained herein shall be true and correct in all respects at the Closing Date. 
 (d) All legal matters
incident to the Loans shall be reasonably satisfactory to the Administrative Agent, and the Borrower agrees to execute and deliver to the Administrative Agent such additional documents and certificates relating to the Loans as the Administrative
Agent reasonably may request. 
 (e) Financing statements in form and substance satisfactory to the Administrative
Agent shall have been properly filed in each office where necessary to perfect the 

  

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security interest of the Administrative Agent, for the ratable benefit of the Lenders, in the Collateral, termination statements shall have been filed with
respect to any other financing statements covering all or any portion of the Collateral, except with respect to financing statements perfecting Liens permitted by this Agreement, and all Taxes and fees with respect to such recording and filing shall
have been paid by the Borrower. 
 (f) The Borrower shall have delivered to the Administrative Agent (1) a
certificate executed by the Secretary of the Borrower certifying (A) copies of evidence of all company actions taken by the Borrower to authorize the execution and delivery of the Loan Documents, (B) copies of the Organizational Documents
of the Borrower, and (C) a certificate of incumbency for the officers of the Borrower executing the Loan Documents, (2) a good standing certificate, dated not more than 10 days prior to the Closing Date, from the appropriate state official
of any state in which the Borrower is organized, and (3) such additional supporting documents as the Administrative Agent or counsel for the Administrative Agent reasonably may request. 
 (g) The Administrative Agent shall have received financing statement, judgment and Tax lien searches reflecting that there are no
Liens outstanding against the Collateral other than those created or permitted by this Agreement or the other Loan Documents. 
 (h) The Administrative Agent shall have received evidence that the insurance on the Collateral required by this Agreement has been obtained and is in full force and effect. 
 (i) The Administrative Agent shall have received evidence satisfactory to it that all governmental, equity holder and third party
consents and approvals necessary in connection with the transactions contemplated hereunder have been obtained and remain in effect. 
 (j) The Borrower shall have executed and delivered each other Loan Document required hereunder and the Recapitalization Agreement. 
 (k) The Administrative Agent shall have received a written opinion of counsel to the Borrower in form and substance reasonably satisfactory to the Administrative Agent. 
 (l) The Estimated Closing Adjusted Tangible Net Book Value shall be at least $0. 
 (m) The Borrower shall have committed Warehouse Financing Agreements in form and substance satisfactory to the Lenders in its sole
discretion. 
 (n) The Borrower shall have entered into Settlement Agreements, as defined in the Recapitalization
Agreement, and filed a joint motion for preliminary approval of the Settlement Agreements with the U.S. District Court for the Northern District of California. 
 (o) The Borrower and FBR shall have executed the Mortgage Loan Indemnity Agreement, which agreement shall be in form and substance
satisfactory to NLC Holding in its sole discretion. 
  

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 (p) The Borrower and the Administrative Agent shall have agreed to the appropriate
level of balance sheet reserves to be set forth on Annex A. 
 (q) The Borrower shall have delivered schedules to this
Agreement, which schedules shall be in form and substance satisfactory to NLC Holding in its sole discretion. 
 (r)
Buyer shall have received evidence to its satisfaction that the Escrow Fund formerly held by the Borrower has been deposited as security to satisfy Litigation claims of the Borrower and its Subsidiaries pursuant to the settlement agreements in
respect of the Class Action Lawsuits referred to in Section 6.16 hereof. 
 Section 9 Default 
 9.1 Events of Default. Each of the following shall constitute an Event of Default under this Agreement: 
 (a) Failure of the Borrower to pay any Obligation, including, without limitation, the principal of or interest on any Note or the
Loans within three days after the same shall become due and payable, whether at maturity, or otherwise; or 
 (b) If
the Borrower refuses to permit the Administrative Agent to inspect, examine, verify or audit the Collateral in accordance with the provisions of this Agreement; or 
 (c) Failure of the Borrower to perform or observe any covenant contained in Sections 5 or 6 of this Agreement; or 
 (d) Failure of the Borrower to perform or observe any other term, condition, covenant, warranty, agreement or other provision
contained in this Agreement (except any such failure resulting in the occurrence of another Event of Default described in this Section), which failure continues for 30 days after the earlier of (1) the date upon which a Principal Officer of the
Borrower knew or should have known of such failure or (2) date upon which written notice thereof is given to the Borrower by the Administrative Agent; or 
 (e) If any representation or warranty made or deemed made by the Borrower in this Agreement, any Loan Document or any statement or
representation made in any certificate, report or opinion delivered pursuant to this Agreement (including any financial statements) or in connection with any borrowing under this Agreement was untrue or is breached in any material respect; or

 (f) If, as a result of default, any other obligation of the Borrower for the payment of any Debt in excess of
$500,000 to any other creditor becomes or is declared to be due and payable prior to the expressed maturity thereof, unless and to the extent that the declaration is being contested in good faith in a court of appropriate jurisdiction; or

 (g) The Borrower makes an assignment for the benefit of creditors, files a petition in bankruptcy, petitions or
applies to any tribunal for any receiver or any trustee of the Borrower or such Subsidiary or any substantial part of its property, or commences any proceeding relating to the Borrower under any reorganization, arrangement, readjustments of debt,
dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or 
  

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 (h) If, within 60 days after the filing of a bankruptcy petition or the
commencement of any proceeding against the Borrower seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, the proceeding shall not have
been dismissed, or, if, within 60 days after the appointment, without the consent or acquiescence of the Borrower, of any trustee, receiver or liquidator of the Borrower or of all or any substantial part of the properties of the Borrower, the
appointment shall not have been vacated; or 
 (i) Except with respect to the Class Action Lawsuits, any judgment
against the Borrower in excess of $250,000 or any attachment in excess of $250,000 against any property of the Borrower that remains unpaid, undischarged, unbonded or undismissed for a period of 30 days, unless and to the extent that the
judgment or attachment is appealed in good faith in a court of higher jurisdiction and the appeal remains pending; or 
 (j) The dissolution, liquidation or termination of existence of the Borrower or any of its Subsidiaries; or 
 (k) If the Borrower fails to give the Administrative Agent or any Lender any notice required by this Agreement within ten days after the occurrence of the event giving rise to the obligation to give such notice, provided that such
failure to give notice shall not constitute an Event of Default if the applicable Event of Default or breach is cured within any grace period that otherwise would have been applicable had the notice been timely given; or 
 (l) The Loan Documents shall for any reason cease to create a valid and perfected first priority security interest in any of the
Collateral with value in excess of $500,000 purported to be covered thereby, subject to Liens or dispositions of assets permitted by this Agreement or any other Loan Document, or if any Loan Document ceases to be in full force and effect.

 (m) Any Material Adverse Effect shall have occurred since the date of the Latest Balance Sheet. 
 9.2 Remedies upon Default. Upon the occurrence of an Event of Default, the following provisions shall be applicable: 
 (a) The Administrative Agent, at its option, may, and upon the written request of the Lenders, shall, terminate the Commitments
(whereupon the Commitment of each Lender shall terminate immediately), terminate the obligations of the Lenders to make Loans under this Agreement, and to declare all Obligations, whether incurred prior to, contemporaneous with or subsequent to the
date of this Agreement, and whether represented in writing or otherwise, immediately due and payable and may exercise all of rights and remedies of the Lenders against the Borrower and any Collateral. 
 (b) The Administrative Agent may foreclose its lien and security interest in the Collateral, held for the ratable benefit of the
Lenders, in any way permitted by applicable law 

  

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and shall have, without limitation, the remedies of a secured party under the UCC. The Administrative Agent may enter the premises of the Borrower in
compliance with the UCC without legal process and without incurring liability to the Borrower and remove the Collateral to such place or places as the Administrative Agent may deem advisable, or the Administrative Agent may require the Borrower to
assemble the Collateral and make the Collateral available to the Administrative Agent at a convenient place in accordance with the UCC and, with or without having the Collateral at the time or place of sale, the Administrative Agent may, for the
ratable benefit of the Lenders, sell or otherwise dispose of all or any part of the Collateral whether in its then condition or after further preparation or processing, either at public or private sale or at any broker’s board, in lots or in
bulk, for cash or for credit, at any time or place, in one or more sales and upon such terms and conditions as the Administrative Agent may elect. The Administrative Agent shall give not less than ten Business Days’ prior written notice to the
Borrower of the time and place of any public sale of the Collateral or the time after which the Collateral may be sold in a private sale, which the Borrower agrees constitutes commercially reasonable notice. At any such sale the Administrative Agent
or any Lender may be the purchaser, subject to the applicable provisions of the UCC. 
 (c) The Borrower shall, at the
request of the Administrative Agent, notify account debtors and other persons obligated on any of the Collateral of the security interest of the Administrative Agent (held for the ratable benefit of the Lenders) in any account, chattel paper,
general intangible, instrument or other Collateral and that payment thereof is to be made directly to the Administrative Agent or to any financial institution designated by the Administrative Agent as the Administrative Agent’s agent therefor,
and the Administrative Agent may itself, without notice to or demand upon the Borrower, so notify account debtors and other persons obligated on Collateral. After the making of such a request or the giving of any such notification, the Borrower
shall hold any proceeds of collection of accounts, chattel paper, general intangibles, instruments and other Collateral received by the Borrower as trustee for the Administrative Agent without commingling the same with other funds of the Borrower
and shall turn the same over to the Administrative Agent in the identical form received, together with any necessary endorsements or assignments. 
 (d) Notwithstanding any other provisions of this Agreement to the contrary, after the occurrence of an Event of Default and the declaration of the Obligations to be immediately due and payable in accordance
with the provisions of this Agreement, all amounts collected or received by the Administrative Agent or any Lender on account of the Obligations or any other amounts outstanding under any of the Loan Documents or in respect of the Collateral shall
be paid over or delivered as follows: 
 (1) FIRST, to the payment of all reasonable out-of-pocket costs and expenses
(including without limitation reasonable attorneys’ fees) of the Administrative Agent in connection with enforcing the rights of the Lenders under the Loan Documents and any advances made by the Administrative Agent with respect to the
Collateral pursuant to Section 9.2(h); 
 (2) SECOND, to the payment of all reasonable out-of-pocket costs and expenses
of each of the Lenders in connection with enforcing its respective rights under the Loan Documents or otherwise with respect to the Obligations owing to such Lender 

  

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(including without limitation, reasonable attorneys’ fees) and the reasonable fees of appraisers, investment bankers or other professionals retained by
the Administrative Agent to provide services to sell, collect or otherwise dispose of the Collateral; 
 (3) THIRD, to the
payment of Obligations consisting of interest due with respect to the Loans based on the respective Loan Percentage of each Lender; 
 (4) FOURTH, to the payment of Obligations consisting of principal due with respect to the Loans based on the respective Loan Percentage of each Lender; 
 (5) FIFTH, to all other Obligations and other obligations which shall have become due and payable under the Loan Documents or otherwise
and not repaid pursuant to clauses “FIRST” through “FOURTH” above based on the respective Loan Percentage of each Lender; and 
 (6) SIXTH, the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus. 
 (e) To the extent that the Obligations are now or hereafter secured by property other than the Collateral described herein or by the Guarantee, endorsement or property of any other Person, the Administrative
Agent, at its option, may, and upon the written request of the Lenders, shall, proceed against such other Guarantee, endorsement or property upon the occurrence of an Event of Default, and the Administrative Agent shall have the right, in its sole
discretion, to determine which rights, security, liens, security interests or remedies the Administrative Agent shall at any time pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any way modifying or
affecting any of them or any of the Administrative Agent’s rights hereunder. 
 (f) The Administrative Agent is
hereby authorized at any time or from time to time, without prior notice to the Borrower (any such notice being expressly waived by the Borrower), to setoff and apply any deposit (general or special, time or demand, provisional or final) or
investment account at any time held, including any certificate of deposit, and other indebtedness at any time owed by the Administrative Agent or any Lender, whether or not any such deposit or indebtedness is then due, to or for the credit or
account of the Borrower against any and all of the Obligations. The Administrative Agent shall give written notice of any setoff to the Borrower. 
 (g) THE BORROWER, HAVING KNOWLEDGE THAT IT MAY BE ENTITLED TO NOTICE AND A HEARING PRIOR TO REPOSSESSION OF THE COLLATERAL, WAIVES ANY RIGHT THAT IT MAY HAVE TO NOTICE OF FORECLOSURE, OTHER THAN NOTICES
REQUIRED BY THE UCC, TO ANY HEARING THAT MAY BE HELD RELATING TO FORECLOSURE, AND TO ANY NOTICE THAT MAY BE REQUIRED TO BE GIVEN BY THE ADMINISTRATIVE AGENT OR ANY LENDER PRIOR TO SUCH HEARING, OTHER THAN THE NOTICES OR HEARINGS REQUIRED BY THE LOAN
DOCUMENTS, THE UCC OR ANY OTHER APPLICABLE LAW. THE ADMINISTRATIVE AGENT, EACH LENDER AND THE BORROWER EXPRESSLY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.

  

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 (h) The Administrative Agent itself may perform or comply, or otherwise cause
performance or compliance, for the ratable benefit of the Lenders, with the obligations of the Borrower contained in this Agreement, including, without limitation, the obligations of the Borrower to defend and insure the Collateral. The expenses of
the Administrative Agent incurred in connection with such performance or compliance, together with interest thereon at the Default Rate, from the date such expenses are paid until the same are repaid, shall be payable by the Borrower to the
Administrative Agent on demand and shall constitute Obligations. 
 (i) If, other than as expressly provided elsewhere
herein, any Lender shall receive from the Borrower or any other source whatsoever on account of the Loans made by it any payment (whether voluntary, involuntary, through the exercise of any right of set-off, bankers’ lien, counterclaim,
cross-action, enforcement of any claim evidenced by this Agreement or any of the other Loan Documents or by proof thereof in any case under the Bankruptcy Code or similar proceeding or otherwise) which is in excess of any payment to which it would
otherwise be entitled under this Section 9.2, such Lender shall forthwith (a) notify Administrative Agent of such fact and (b) make such dispositions and arrangements with each other Lender with respect to such excess, either by way
of distribution until the amount of such excess has been exhausted, assignment of claims, subrogation or otherwise, as shall result in each such Lender receiving in respect of the amounts due such Lender, under this Agreement its ratable share of
such payments; provided, however, that if all or any part of such excess payment is thereafter recovered from such Lender, such disposition and arrangements shall be rescinded and the amount restored to the extent of such recovery, but without
interest. 
 Section 10 The Administrative Agent 
 10.1 Appointment of Administrative Agent. Each Lender hereby irrevocably appoints NLC Holding as the Administrative Agent and authorizes it to take such actions on such Lender’s behalf and to
exercise such powers as are delegated to the Administrative Agent under this Agreement and the other Loan Documents, together with all such actions and powers that are reasonably incidental thereto. The Administrative Agent may perform any of its
duties hereunder by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers through their respective
Affiliates. The exculpatory provisions set forth in this Section shall apply to any such sub-agent and the Affiliates of the Administrative Agent and any such sub-agent and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
 10.2 Nature of Duties of
Administrative Agent. The Administrative Agent shall not have any duties or obligations except those expressly set forth in this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, (a) the
Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or an Event of Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except those 

  

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discretionary rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is required to exercise in writing by the Lenders
(or such other number or percentage of the Lenders as shall be necessary as otherwise provided herein), and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent will promptly
deliver to the Lenders copies of any financial statements and other information required by this Agreement, default notices or other material notices sent to the Borrower under the terms of the Loan Documents, and will promptly provide to the
Lenders copies of any material notices or other material information received from Borrower that are not otherwise required to be provided to the Lenders, and the Lenders agree that the Administrative Agent may provide such material notices and
other material information to the Lenders by posting it to a secure website to which the Lenders are given access. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Lenders
(or such other number or percentage of the Lenders as shall be necessary as otherwise provided herein) or in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall not be deemed to have knowledge of any Default
or Event of Default unless and until written notice thereof is given to the Administrative Agent by the defaulting Borrower or any Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into
(i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith,
(iii) the performance or observance of any of the covenants, agreements, or other terms and conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other
agreement, instrument or document, or (v) the satisfaction of any condition precedent to the effectiveness of this Agreement or any Loan Document, other than to confirm receipt of items expressly required to be delivered to the Administrative
Agent. 
 10.3 Lack of Reliance on the Administrative Agent. Each of the Lenders acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders also
acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, continue to make its own decisions in taking or not taking of
any action under or based on this Agreement, any related agreement or any document furnished hereunder or thereunder. 
 10.4 Certain
Rights of the Administrative Agent. If the Administrative Agent shall request instructions from the Lenders with respect to any action or actions (including the failure to act) in connection with this Agreement, the Administrative Agent
shall be entitled to refrain from such act or taking such act, unless and until it shall have received instructions from such Lenders; and the Administrative Agent shall not incur liability to any Person by reason of so refraining. Without limiting
the foregoing, no Lender shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting hereunder in accordance with the instructions of the Lenders where required
by the terms of this Agreement. 
  

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 10.5 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed, sent or made by the proper Person. The
Administrative Agent may also rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel
(including counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or not taken by it in accordance with the advice of such counsel, accountants or experts. 

10.6 Administrative Agent’s Reimbursement and Indemnification by Lenders. The Lenders agree to reimburse and indemnify the
Administrative Agent ratably in proportion to their respective Loan Percentages (or, if the Commitments have been terminated, in proportion to their Loan Percentages immediately prior to such termination) (i) for any amounts not reimbursed by
the Borrower for which the Administrative Agent is entitled to reimbursement by the Borrower under the Loan Documents, (ii) for any other expenses incurred by the Administrative Agent on behalf of the Lenders, in connection with the
preparation, execution, delivery, administration and enforcement of the Loan Documents (including, without limitation, for any expenses incurred by the Administrative Agent in connection with any dispute between the Administrative Agent and any
Lender or between or among two or more of the Lenders) and (iii) for any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever which may be imposed
on, incurred by or asserted against the Administrative Agent in any way relating to or arising out of the Loan Documents or any other document delivered in connection therewith or the transactions contemplated thereby (including, without limitation,
for any such amounts incurred by or asserted against the Administrative Agent in connection with any dispute between the Administrative Agent and any Lender or between or among two or more of the Lenders), or the enforcement of any of the terms of
the Loan Documents or of any such other documents, provided that (i) no Lender shall be liable for any of the foregoing to the extent any of the foregoing is found in a final non-appealable judgment by a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of the Administrative Agent and (ii) any indemnification required pursuant to Section 11.3 shall, notwithstanding the provisions of this Section 10.6, be
paid by the relevant Lender in accordance with the provisions thereof. The obligations of the Lenders under this Section 10.6 shall survive payment of the Obligations and termination of this Agreement. 
 10.7 The Administrative Agent in its Individual Capacity. The entity serving as the Administrative Agent shall have the same rights and
powers under this Agreement and any other Loan Document in its capacity as a Lender as any other Lender and may exercise or refrain from exercising the same as though it were not the Administrative Agent; and the terms “Lenders”,
“Lenders”, “holders of Notes”, or any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual capacity. The bank acting as the Administrative Agent and its
Affiliates may accept deposits from, lend money to, and generally engage in any kind of business with the Borrower or any Subsidiary or Affiliate of the Borrower as if it were not the Administrative Agent hereunder. 
  

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 10.8 Authorization to Execute other Loan Documents. Each Lender hereby authorizes the
Administrative Agent to execute on behalf of all Lenders all Loan Documents other than this Agreement. 
 Section 11 Miscellaneous 

 11.1 Notices. 
 (a) Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications to any party herein to be effective shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 
  

			
	To the Borrower, any	  	
	of its Subsidiaries:	  	 First NLC Financial Services, LLC
 4680 Conference Way
South
 Suite 100
 Boca Raton, FL 33441
 Attention: Jeff Henschel
 Telecopy Number: (866) 949-5333

		
	To NLC Holding:	  	 NLC Holding Corp.
 c/o Sun Capital Partners,
Inc.
 5200 Town Center Circle, Suite 470
 Boca Raton, Florida
33486
 Attention: Michael Kalb and C. Deryl Couch
 Telecopy
Number: (561) 394-0540

		
	With a copy to:	  	 Morgan, Lewis & Bockius LLP
 One Oxford
Centre
 Thirty-Second Floor
 Pittsburgh, Pennsylvania
15219
 Telecopy Number: (412) 560-7001
 Attention: David A.
Gerson

		
	To Lender NLC:	  	 J. Rock Tonkel, Jr.
 Friedman, Billings Ramsey Group,
Inc.
 1001 Nineteenth Street North
 Arlington, VA
22209
 Telecopy Number: (703) 469-1145

		
	With a Copy to:	  	 William J. Ginivan
 1001 Nineteenth Street
North
 Arlington, VA 22209
 Telecopy Number: (703)
469-1140

  

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 Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to
the other parties hereto. All such notices and other communications shall, when transmitted by overnight delivery, or faxed, be effective when delivered for overnight (next-day) delivery, or transmitted in legible form by facsimile machine,
respectively, or if mailed, upon the third Business Day after the date deposited into the mails or if delivered, upon delivery; provided, that notices delivered to the Administrative Agent shall not be effective until actually received by such
Person at its address specified in this Section 11.1. 
 (b) Any agreement of the Administrative Agent and the
Lenders herein to receive certain notices by telephone or facsimile is solely for the convenience and at the request of the Borrower. The Administrative Agent and the Lenders shall be entitled to rely on the authority of any Person purporting to be
a Person authorized by the Borrower and any other Borrower to give such notice and the Administrative Agent and Lenders shall not have any liability to the Borrower or other Person on account of any action taken or not taken by the Administrative
Agent or the Lenders in reliance upon such telephonic or facsimile notice. The joint and several obligations of the Borrower to repay the Loans and all other Obligations hereunder shall not be affected in any way or to any extent by any failure of
the Administrative Agent and the Lenders to receive written confirmation of any telephonic or facsimile notice or the receipt by the Administrative Agent and the Lenders of a confirmation which is at variance with the terms understood by the
Administrative Agent and the Lenders to be contained in any such telephonic or facsimile notice. 
 11.2 Waiver;
Amendments. 
 (a) No failure or delay by the Administrative Agent or any Lender in
exercising any right or power hereunder or any other Loan Document, and no course of dealing between the Borrower and the Administrative Agent or any Lender, shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right or power or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power hereunder or thereunder. The rights and remedies of the
Administrative Agent and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by law. No waiver of any provision of this Agreement or any other Loan Document or consent to
any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given. Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent or any Lender may have had notice or
knowledge of such Default or Event of Default at the time. 
 (b) No amendment or waiver of any provision of this
Agreement or the other Loan Documents, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Borrower and the Lenders or the Borrower and the Administrative
Agent with the consent of the Lenders and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Each Lender shall reply within five (5) Business Days after the Administrative
Agent’s written request for approval action to be taken by it or any Lenders hereunder, or such lesser time 

  

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as may be reasonably determined by the Administrative Agent due to time constraints in the Loan Documents and specified in the request for approval. In the
event any Lender fails to reply to a request for approval from the Administrative Agent within ten (10) Business Days (or such shorter period of time as may be requested by the Administrative Agent for actions that are reasonably required to
preserve or protect the Collateral), such Lender shall be deemed to have approved any matters set forth in the request for approval. 
 11.3 Expenses; Indemnification. 
 (a) The Borrower shall pay (i) all
reasonable, out-of-pocket costs and expenses of the Administrative Agent, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent in connection with the preparation and administration of the Loan Documents
and any amendments, modifications or waivers thereof (whether or not the transactions contemplated in this Agreement or any other Loan Document shall be consummated), (ii) all reasonable out-of-pocket costs and expenses (including, without
limitation, the reasonable fees, charges and disbursements of outside counsel and the allocated cost of inside counsel) incurred by the Administrative Agent in connection with the enforcement or protection of its rights in connection with this
Agreement, including its rights under this Section, or in connection with the Loans made, including all such reasonable out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans. Such payments shall
be made by the Borrower within one Business Day upon receipt of a written invoice provided to the Borrower with respect thereto. 
 (b) The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender, each Affiliate of such Person, and the partners, directors, officers, employees, agents and advisors of such Person and of such
Person’s Affiliates (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements
of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower arising out of, in connection with, or as a result of an investigation, litigation or proceeding arising out of (1) the execution or delivery of this Agreement, any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (2) any Loan or the
use or proposed use of the proceeds therefrom, (3) the Borrower’s or any of its Subsidiaries’ breach of any representation, warranty, covenant or undertaking contained in this Agreement or the other Loan Documents, (4) the
Borrower or any of its Subsidiaries’ failure to comply with any or all laws, statutes, ordinances, governmental rules, regulations or standards, whether federal, state, or local, or court or administrative orders or decrees, including any
actual or alleged presence or release of Hazardous Materials related to the Borrower’s or any of its Subsidiaries’ operations on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental
Liability related in any way to the operations of the Borrower or any of its Subsidiaries, and (5) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any
other theory, whether brought by a third party or by the Borrower, and regardless of whether 

  

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any Indemnitee is a party thereto, provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a
claim brought by the Borrower against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower has obtained a final and nonappealable judgment in its favor on such claim
as determined by a court of competent jurisdiction. 
 (c) To the extent that the Borrower fails to pay any amount
required to be paid to the Administrative Agent under clauses (a), (b) or (c) of this Section 11.3, each Lender severally agrees to pay to the Administrative Agent the respective Lender’s Loan Percentage (determined as of the
time that the unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided, that the unreimbursed expense or indemnified payment, claim, damage, liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent. 
 (d) To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to actual or direct damages) arising out of, in connection with or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the transactions contemplated therein, any Loan or the use of proceeds thereof. 
 (e) All amounts due under this Section shall be payable promptly after written demand therefor. 
 11.4 Successors and Assigns. 
 (a) The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that the Borrower may not assign or transfer any of its rights hereunder, without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be null and void). 
 (b) With the consent
of the Administrative Agent and the other Lender, any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement and the other Loan Documents; provided, however, that NLC
Holding shall be permitted to assign and transfer, by novation, the right and responsibility to participate in up to a one-sixth (1/6) interest in any of its rights and obligations under this Agreement (including, without limitation, the right
to assign and transfer up to one-sixth (1/6) of the face amount of any Loans) to Neal Henschel and Jeffrey M. Henschel collectively, and to each of them severally, at any time or from time to time in NLC Holding’s sole discretion.

 11.5 Governing Law; Jurisdiction; Consent to Service of Process. 
 (a) This Agreement and the other Loan Documents shall be construed in accordance with and be governed by the law (without giving
effect to the conflict of law 

  

 72 

 
principles thereof) of the State of New York. EACH LOAN DOCUMENT (OTHER THAN AS OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT) WILL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSES SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 
 (b) Each party to this Agreement hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive
jurisdiction of the United States District Court of the Southern District of New York, and of any court of the State of New York sitting in New York county and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or any other Loan Document or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in such New York state court or, to the extent permitted by applicable law, such federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent or
any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or their respective properties in the courts of any jurisdiction. 
 (c) Each party to this Agreement irrevocably and unconditionally waives any objection which it may now or hereafter have to
the laying of venue of any such suit, action or proceeding described in paragraph (b) of this Section and brought in any court referred to in paragraph (b) of this Section. Each of the parties hereto irrevocably waives, to the fullest
extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 (d) Each party to this Agreement irrevocably consents to the service of process in the manner provided for notices in Section 11.1. Nothing in this Agreement or in any other Loan Document will affect the
right of any party hereto to serve process in any other manner permitted by law. 
 11.6 WAIVER OF JURY TRIAL. EACH PARTY
HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  

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 11.7 Right of Setoff. In addition to any rights now or hereafter granted under applicable
law and not by way of limitation of any such rights, each Lender shall have the right, at any time or from time to time upon the occurrence and during the continuance of an Event of Default, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent permitted by applicable law, to set off and apply against all deposits (general or special, time or demand, provisional or final) of the Borrower at any time held or other obligations at any time
owing by such Lender to or for the credit or the account of the Borrower against any and all Obligations held by such Lender irrespective of whether such Lender shall have made demand hereunder and although such Obligations may be unmatured. Each
Lender agrees promptly to notify the Administrative Agent and the Borrower after any such set-off and any application made by such Lender; provided, that the failure to give such notice shall not affect the validity of such set-off and
application. 
 11.8 Counterparts; Integration. This Agreement may be executed by one or more of the parties to this Agreement
on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. This Agreement, the other Loan Documents, and any separate letter agreement(s)
relating to any fees payable to the Administrative Agent constitute the entire agreement among the parties hereto and thereto regarding the subject matters hereof and thereof and supersede all prior agreements and understandings, oral or written,
regarding such subject matters. 
 11.9 Survival. All covenants, agreements, representations and warranties made by the
Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this
Agreement and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is
outstanding and unpaid and so long as the Commitments have not expired or terminated. The provisions of Sections 11.3 and 11.11 and Section 9 shall survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination of the Commitments or the termination of this Agreement or any provision hereof. All representations and warranties made herein, in the certificates, reports, notices,
and other documents delivered pursuant to this Agreement shall survive the execution and delivery of this Agreement and the other Loan Documents and the making of the Loans. 
 11.10 Severability. Any provision of this Agreement or any other Loan Document held to be illegal, invalid or unenforceable in any
jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof or thereof; and the
illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 11.11 Confidentiality. Each of the Administrative Agent and each Lender agrees to take normal and reasonable precautions to maintain the
confidentiality of any information 

  

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designated in writing as confidential and provided to it by the Borrower or any Subsidiary, except that such information may be disclosed (i) to any
Affiliate of the Administrative Agent, or any such Lender, and their respective accountants, legal counsel and other professional advisors, (ii) to the extent required by applicable laws or regulations or by any subpoena or similar legal
process, (iii) to the extent requested by any regulatory agency or governmental authority having jurisdiction over the disclosing Administrative Agent or Lender, (iv) to the extent that such information becomes publicly available other
than as a result of a breach of this Section, or which becomes available to the Administrative Agent, any Lender or any Affiliate, or their accountants, legal counsel or other professional advisors, of any of the foregoing on a nonconfidential basis
from a source other than the Borrower, (v) in connection with the exercise of any remedy hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (vi) subject to provisions
substantially similar to this Section 11.11, to any actual or prospective assignee or successor of the Lender, or (vii) with the prior written consent of the Borrower. Any Person required to maintain the confidentiality of any information
as provided for in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such information as such Person would accord its own
confidential information. 
 11.12 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time
the interest rate applicable to any Loan, together with all fees, charges and other amounts which may be treated as interest on such Loan under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate of interest
(the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by a Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall
be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Rate
to the date of repayment, shall have been received by such Lender. 
 11.13 Captions. The captions of the various sections and
paragraphs of this Agreement have been inserted only for the purposes of convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain, enlarge or restrict any of the provisions of this
Agreement. 
 11.14 Use of Defined Terms. All terms defined in this Agreement shall have the defined meanings when used in
certificates, reports or other documents made or delivered pursuant to this Agreement, unless the context shall otherwise require. 
 11.15 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes

  

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the name and address of the Borrower sand other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower
in accordance with the Patriot Act, and each Borrower hereby agrees to provide the Administrative Agent and each Lender with all information necessary in order for the Administrative Agent and each Lender to comply with the Patriot Act. 

11.16 Claims for Fraud; No Recourse to Members, Etc. The Parties acknowledge that FBR is a party to this Agreement only with respect to
potential claims for fraud, willful misrepresentation or willful misconduct, and except for any such claims, no recourse under or upon any obligation, indemnity, representation, warranty covenant or agreement of the Borrower or any Subsidiary
contained in this Agreement or any other Loan Document shall be had against Lender NLC, FBR, or any other member of the Borrower or any Subsidiary. 
 [SIGNATURES ON FOLLOWING PAGE] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective duly
authorized representatives all as of the day and year first above written. 
  

			
	BORROWER:
	
	COMPANY:
	
	FIRST NLC FINANCIAL SERVICES LLC, a Florida limited liability company
	Organizational Identification Number: ___________

			
		
	By:	 	/s/ Neil Henschel
	Name:	 	Neil Henschel
	Title:	 	CEO
	
	SUBSIDIARIES OF THE BORROWER:
	
	FIRST NLC, INC., a Minnesota corporation
	Organizational Identification Number: ___________

			
		
	By:	 	/s/ Neil Henschel
	Name:	 	Neil Henschel
	Title:	 	CEO
	
	NLC, INC., a Tennessee corporation
	Organizational Identification Number: ___________

			
		
	By:	 	/s/ Neil Henschel
	Name:	 	Neil Henschel
	Title:	 	CEO

 [SIGNATURES CONTINUE ON FOLLOWING PAGE] 

			
	ADMINISTRATIVE AGENT:
	
	NLC HOLDING CORP., a Delaware corporation
		
	By:	 	/s/ Brian Urbanek
	Name:	 	Brian Urbanek
	Title:	 	Vice President

 [SIGNATURES CONTINUE ON FOLLOWING PAGE] 

			
	LENDER:
	
	NLC HOLDING CORP, a Delaware corporation
		
	By:	 	/s/ Brian Urbanek
	Name:	 	Brian Urbanek
	Title:	 	Vice President

 Commitment: $60,000,000 
 [SIGNATURES CONTINUE ON FOLLOWING PAGE] 

			
	FNLC FINANCIAL SERVICES, INC, a Delaware corporation
		
	By:	 	/s/ Brian J. Bowers
	Name:	 	Brian J. Bowers
	Title:	 	Executive Vice President

 Commitment: $15,000,000 minus Estimated Closing Adjusted Tangible Net Book Value 
  

			
	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC., a Virginia corporation, for the limited purposes recited in the preamble to this Agreement
		
	By:	 	/s/ J. Rock Tonkel, Jr.
	Name:	 	J. Rock Tonkel, Jr.
	Title:	 	President, Chief Operating Officer

 EXHIBIT A 
 REPURCHASE AGREEMENTSSecurities Purchase Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
 SECURITIES PURCHASE AGREEMENT 
 SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of July 30, 2007, by and among Orthovita, Inc., a Pennsylvania
corporation, with headquarters located at 77 Great Valley Parkway, Malvern, Pennsylvania 19355 (the “Company”), and the investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and
collectively, the “Buyers”). 
 BACKGROUND 
 A. The Company and each Buyer desire to enter into this transaction to purchase the securities set forth herein pursuant to the Company’s
registration statement on Form S-3 (Registration Number 333-131668) (the “First Shelf Registration Statement”) and the Company’s registration statement on Form S-3 (Registration Number 333-141403) (the “Second Shelf
Registration Statement” and, together with the First Registration Statement, the “Registration Statement”) which have, in the aggregate, at least $111,000,000 in unallocated securities registered thereunder, and which have
been declared effective in accordance with the Securities Act of 1933, as amended (the “1933 Act”), by the United States Securities and Exchange Commission (the “SEC”). 
 B. Each Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, that number of shares of common
stock, par value $0.01 per share, of the Company (the “Common Stock”), set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers (which aggregate amount for all Buyers together shall be 12,317,066 shares
of Common Stock and shall collectively be referred to herein as the “Purchased Shares”). 
 NOW, THEREFORE, the
Company and each Buyer, intending to be legally bound, hereby agree as follows: 
 1. PURCHASE AND SALE OF PURCHASED SHARES. 
 (a) Purchase of Purchased Shares. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall
issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company on the Closing Date (as defined below), the number of Purchased Shares as is set forth opposite such Buyer’s name in column (3) on
the Schedule of Buyers (the “Closing”). The Closing shall occur on the Closing Date at the offices of Duane Morris LLP, 1540 Broadway, 14th Floor, New York, New York 10036. 
 (b) Purchase Price. The purchase price for each Purchased Share to be purchased by each Buyer at the Closing shall be $2.64 (the “Purchase
Price”). 
 (c) Closing Date. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New
York City time, on July 30, 2007, after notification of satisfaction (or waiver) of the conditions to the Closing set forth in Sections 6 and 7 below (or such later date as is mutually agreed to by the Company and each Buyer). 

 (d) Form of Payment. On the Closing Date, (i) each Buyer shall pay to the Company the total
Purchase Price for the Purchased Shares to be issued and sold to such Buyer at the Closing (which total Purchase Price shall be calculated by multiplying the number of Purchased Shares to be purchased by such Buyer by the Purchase Price), by wire
transfer of immediately available funds in accordance with the Company’s written wire instructions, and (ii) the Company shall cause the Company’s transfer agent (the “Transfer Agent”), in the Company’s
discretion, either (A) through the Depository Trust Company (“DTC”) to credit to the securities account at DTC specified in writing by such Buyer a securities entitlement or (B) to issue a stock certificate in the name of
such Buyer, in either case, with respect to the number of Purchased Shares such Buyer is purchasing as is set forth opposite such Buyer’s name in column (3) of the Schedule of Buyers. The Purchased Shares shall be offered, issued and sold
by the Company pursuant to the First Shelf Registration Statement until the aggregate amount of the securities registered thereby has been issued. The balance of the Purchased Shares shall be offered, issued and sold by the Company pursuant to the
Second Shelf Registration Statement. 
 2. REPRESENTATIONS AND WARRANTIES OF EACH BUYER. Each Buyer represents and warrants solely with respect to
such Buyer that: 
 (a) Organization; Authority. Such Buyer, if an entity, is an entity duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization with full right, corporate, partnership or limited liability company power and authority to enter into and to consummate the transactions contemplated by this Agreement and the other
Transaction Documents (as defined below) and otherwise to carry out its obligations hereunder and thereunder. Such Buyer, if an individual, has full right, power and authority to enter into and to consummate the transactions contemplated by this
Agreement and the other Transaction Documents and otherwise to carry out such Buyer’s obligations hereunder and thereunder. The execution, delivery and performance by such Buyer, if an entity, of the transactions contemplated by this Agreement
and the other Transaction Documents to which such Buyer is a party have been duly authorized by all necessary corporate, partnership or limited liability company action on the part of such Buyer. Such Buyer, if an individual, has legal capacity to
execute, deliver and perform the transactions contemplated by this Agreement and the other Transaction Documents to which such Buyer is a party. Each of this Agreement and the other Transaction Documents to which such Buyer is party has been duly
executed by such Buyer, and when delivered by such Buyer in accordance with terms hereof and thereof, will constitute the valid and legally binding obligation of such Buyer, enforceable against such Buyer in accordance with its terms, except as such
enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. 
 (b) No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation
by such Buyer of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer that is an entity or (ii) conflict with, or constitute a default (or an event which with notice or lapse
of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Buyer is a party, or (iii) result in a violation of any
law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Buyer, except in the case of 

  

 2 

 
clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, have a material
adverse effect on the ability of such Buyer to perform its obligations hereunder. 
 (c) Residency. Such Buyer is a resident of that
jurisdiction specified below its address on the Schedule of Buyers. 
 (d) Certain Fees. No brokerage or finder’s fees or
commissions are or will be payable by such Buyer to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person (as defined below) with respect to the transactions contemplated by this Agreement. The
Company shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees on behalf of such Buyer of a type contemplated in this Section 2(d) that may be due in connection with the
transactions contemplated by this Agreement. 
 (e) Acquiring Person. Such Buyer, after giving effect to the transactions contemplated
hereby, will not, either individually or with a group (as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “1934 Act”)), be the beneficial owner of 20% or more of the Company’s
outstanding Common Stock. For purposes of this Section 2(e), beneficial ownership shall be determined pursuant to Rule 13d-3 under the 1934 Act. 
 (f) No Short Sales. From and after obtaining knowledge of the sale of the Purchased Shares, such Buyer has not taken, and prior to the public announcement of the transactions contemplated hereby, such Buyer
shall not take, any action that has caused or will cause such Buyer to have, directly or indirectly, sold or agreed to sell any Common Stock, effected through any short sale. 
 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents and warrants to each Buyer that: 
 (a) Subsidiaries. The Company has no direct or indirect subsidiaries (individually, a “Subsidiary” and, collectively, the “Subsidiaries”) other than those listed on Schedule
3(a) and in the SEC Reports (as defined below). Except as disclosed in the SEC Reports, the Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and clear of any lien, charge, security interest, encumbrance,
right of first refusal or other restriction (collectively, the “Liens”), and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and
similar rights. 
 (b) Organization and Qualification. Each of the Company and each Subsidiary is an entity duly incorporated or
otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its
business as described in the Prospectus (as defined below). Neither the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter
documents. Each of the Company and the Subsidiaries is duly qualified to do business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes
such 

  

 3 

 
qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not, individually or in the aggregate:
(i) materially adversely affect the legality, validity or enforceability of this Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder (collectively, the “Transaction
Documents”), (ii) have or result in a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) adversely impair
the Company’s ability to perform fully on a timely basis its obligations under any of the Transaction Documents (any of (i), (ii) or (iii), a “Material Adverse Effect”). 
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further consent or action is required by the Company, its Board of Directors or its
shareholders. Each of the Transaction Documents executed by the Company has been (or upon delivery will be) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 
 (d) No
Conflicts. The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby do not and will not:
(i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) subject to obtaining the Required Approvals
(as defined below), conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or
asset of the Company or any Subsidiary is bound or affected, or (iii) subject to obtaining the Required Approvals, result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or
governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each
of clauses (ii) and (iii), such as could not, individually or in the aggregate, result in a Material Adverse Effect. 
 (e) Filings,
Consents and Approvals. No consent, waiver, authorization or order of, give any notice to, or filing or registration with, any court or other federal, state, local or other governmental authority or other Person is required in connection with
the execution, delivery and performance by the Company of the Transaction Documents, other than (i) the filings required 

  

 4 

 
under Section 4(f) of this Agreement, (ii) the filing with the SEC of the prospectus supplements required by the Registration Statement pursuant to
Rule 424(b) under the 1933 Act (the “Prospectus Supplement”) supplementing the base prospectuses forming part of the Registration Statement (such base prospectuses, together with the Prospectus Supplement and all information
incorporated therein by reference to SEC Reports, the “Prospectus”), (iii) the application(s) to The NASDAQ Stock Market LLC (“NASDAQ”) for the listing of the Purchased Shares for trading on The NASDAQ Global
Market (the “Principal Market”) in the time and manner required thereby, (iv) applicable Blue Sky filings and (v) such consents and waivers as have previously been obtained (clauses (i) through (v) are
collectively referred to as the “Required Approvals”). “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
 (f) Issuance of the Purchased Shares.
The Purchased Shares are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. The Purchased Shares are being issued pursuant to
the Registration Statement, the issuance of the Purchased Shares has been registered by the Company under the 1933 Act, and all of the Purchased Shares are freely transferable and tradable by the Buyers without restriction, other than restrictions
imposed under (i) the Company’s Policy Statement on Trading In Orthovita, Inc. Securities by Directors, Officers and Other Employees, which is applicable to any Buyer affiliated with a director or employee of the Company, and
(ii) provisions of the 1933 Act applicable to transfers of Company securities by directors of the Company and their respective affiliates. The Registration Statement is effective and available for the issuance of the Purchased Shares thereunder
and the Company has not received any notice that the SEC has issued or intends to issue a stop-order with respect to the Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, or intends or has threatened in writing to do so. The “Plan of Distribution” section of the Prospectus permits the issuance and sale of the Purchased Shares in the manner contemplated hereunder. Upon
receipt of the Purchased Shares, each Buyer will have good and marketable title to the Purchased Shares purchased by such Buyer hereunder, and the Purchased Shares will be freely tradable on the Principal Market, except to the extent restricted
under (i) the Company’s Policy Statement on Trading In Orthovita, Inc. Securities by Directors, Officers and Other Employees, which is applicable to any Buyer affiliated with a director or employee of the Company, and (ii) provisions
of the 1933 Act applicable to transfers of Company securities by directors of the Company and their respective affiliates. The Purchased Shares constitute less than 20% of the issued and outstanding shares of Common Stock of the Company. Upon
issuance, the Purchased Shares will be listed and authorized for trading on the Principal Market. 
 (g) Capitalization. The number of
shares and type of all authorized, issued and outstanding capital stock, options and other securities of the Company (whether or not presently convertible into, or exercisable or exchangeable for, shares of capital stock of the Company) is set forth
in the Prospectus or incorporated by reference in the Prospectus by virtue of the SEC Report of the Company most recently filed with the SEC. All outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and
nonassessable and have been issued in compliance with all applicable securities laws. No securities of the Company are entitled to preemptive or similar rights, and no Person has any right of first refusal, preemptive 

  

 5 

 
right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as set forth on
Schedule 3(g) or in the Prospectus, there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable
for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common
Stock, or securities or rights convertible into or exercisable or exchangeable for shares of Common Stock. Except as set forth on Schedule 3(g), there are no anti-dilution or price adjustment provisions contained in any security issued by the
Company (or in any agreement providing rights to security holders), and the issuance and sale of the Purchased Shares will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Buyers) and will
not result in a right of any holder of Company securities to adjust the exercise, conversion, number of issuable shares, exchange or reset price under such securities. The Company will not approve the issuance of any additional securities unless
there are sufficient authorized shares of Common Stock (or any successor security thereto) available, taking into account all potential adjustments or anti-dilution provisions in such securities, to satisfy the rights of the Buyers to acquire the
Purchased Shares. 
 (h) SEC Reports; Financial Statements. The Company has filed with the SEC all reports required to be filed by it
under the 1934 Act, including reports required to be filed with the SEC pursuant to Section 13(a) or 15(d) thereof, for the two (2) years preceding the date hereof (the foregoing materials being collectively referred to herein as the
“SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. The Company has made available via the EDGAR system operated
by the SEC or otherwise to each Buyer a true, correct and complete copy of all SEC Reports filed within the ten (10) days preceding the date hereof. As of their respective dates, the SEC Reports complied in all material respects with the
requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Registration Statement, the Prospectus and the Prospectus Supplement complied, or will comply, as the
case may be, in all material respects with the applicable requirements of the 1933 Act and the rules and regulations of the SEC promulgated thereunder, and none of the Registration Statement, the Prospectus or the Prospectus Supplement contained, or
will contain, as the case may be, as of the respective times they were, or will be, as the case may be, filed with the SEC, any untrue statement of a material fact or omitted, or will omit, as the case may be, to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the case of the Prospectus or the Prospectus Supplement, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in
accordance with generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto, and fairly present
in all material respects the financial position of the Company and its consolidated subsidiaries as of the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal
year-end audit adjustments. 
  

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 (i) Material Changes. Since the date of the latest audited financial statements included within
the SEC Reports, except as specifically disclosed in the SEC Reports: (i) there has been no event, occurrence or development that, individually or in the aggregate, has had or that could result in a Material Adverse Effect, (ii) except as
disclosed on Schedule 3(i), the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and
(B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not altered its method of accounting in a manner that
would reasonably be expected to result in a Material Adverse Effect or changed the identity of the registered independent public accounting firm that audited such audited financial statements, (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities to any officer,
director or Affiliate, except pursuant to existing Company equity compensation plans. “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 144. “Rule 144”means Rule 144 promulgated by the SEC pursuant to the 1933 Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the SEC having substantially the same effect as such Rule. 
 (j) Litigation. Except as disclosed on
Schedule 3(j), there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the best knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) or before or by any self-regulatory organization or other non-governmental regulatory authority
(including, without limitation, the Principal Market) (collectively, an “Action”) which: (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Purchased Shares
or (ii) could, if there were an unfavorable decision, individually or in the aggregate, result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor, to the best knowledge of the Company, any director or officer thereof with
respect to such director’s or officer’s capacity with the Company, is the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. Except for the
confidential treatment request submitted to the SEC with respect to the Amended and Restated License Agreement, dated as of December 26, 2006, between the Company and Angiotech Pharmaceuticals (US), Inc., the Company does not have pending
before the SEC any request for confidential treatment of information. There has not been, and to the best knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any Subsidiary, or any
director or officer of the Company with respect to such director’s or officer’s capacity with the Company. The SEC has not issued any stop order or other order suspending the effectiveness of the Registration Statement. 
  

 7 

 (k) Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in
violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it
is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has
been waived), (ii) to the best knowledge of the Company, is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority,
except in each case as could not, individually or in the aggregate, result in a Material Adverse Effect. 
 (l) Labor Relations. No
strike, work stoppage, slow down or other material labor problem exists or, to the best knowledge of the Company, is threatened or imminent with respect to any of the employees of the Company or any Subsidiary. 
 (m) Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not, individually or in the aggregate, result in a Material
Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 
 (n) Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them that is
material to the business of the Company and the Subsidiaries and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, taken as a whole, in each case free and clear of
all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries, and (ii) Liens
on certain assets pursuant to the Senior Secured Note And Warrant Purchase Agreement (the “Note and Warrant Purchase Agreement”) dated July 30, 2007 among the Company, the Purchasers of Notes and Warrants (as each such
term is defined in the Note and Warrant Purchase Agreement) named therein and LB I Group Inc., a Delaware corporation, as Collateral Agent (as such term is defined in the Note and Warrant Purchase Agreement) and any and all related documents
executed in connection therewith. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries are in compliance
in all material respects. 
 (o) Patents and Trademarks. Schedule 3(o) sets forth all of the Company’s patents and patent
applications, in-bound patent licenses, trademarks and trademark applications, in-bound trademark licenses, copyrights and copyright applications and in-bound copyright licenses, including the description thereof, the name of the registered owner,
the jurisdiction of such registration and the registration number (collectively, the “IP Rights”). Except set forth on Schedule 3(o), (i) the Company and the Subsidiaries own or possess the IP Rights, without conflict
with the rights of others; (ii) to the best knowledge of the Company, no product of the Company or the Subsidiaries that is labeled, promoted or used in a manner that meets the definition of “medical device” set forth in
Section 321(b) of the Federal Food, Drug & Cosmetic 

  

 8 

 
Act, 21 U.S.C. Sections 301 et seq. (2007), infringes on any license, patent, copyright, service mark, trademark, trade name or other intellectual property
right owned by any other Person; and (iii) to the best knowledge of the Company, there is no known violation by any Person of any right of the Company or any of the Subsidiaries with respect to any IP Rights. 
 (p) Insurance. To the best knowledge of the Company, the Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not
be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost, except for cost increases
being experienced by public companies in similar businesses and risk categories. 
 (q) Transactions With Affiliates and Employees.
Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the best knowledge of the Company, none of the employees of the Company is presently a party to any material transaction with the Company or any
Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or
otherwise requiring payments to or from any officer, director or such employee or, to the best knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee
or partner. 
 (r) Internal Accounting Controls. The Company and the Subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The financial records of the Company accurately reflect in all material respects the
information relating to the business of the Company, the location and collection of its assets, and the nature of all transactions giving rise to the obligations or accounts receivable of the Company. The Company has established disclosure controls
and procedures (as defined in 1934 Act Rules 13a-14 and 15d-14) for the Company and designed such disclosures controls and procedures to ensure that material information relating to the Company is made known to the certifying officers by others
within the Company, particularly during the period in which the Company’s Form 10-K or 10-Q, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and
procedures as of a date within 90 days prior to the filing date of the Form 10-K for the year ended December 31, 2006 (such date, the “Evaluation Date”). The Company presented in the Form 10-K for the year ended
December 31, 2006, the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant
changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the 1934 Act) or, the best knowledge of the Company, in other factors that could significantly affect the Company’s internal
controls. 
  

 9 

 (s) Solvency. Based on the financial condition of the Company as of date hereof and as of the
Closing Date: (i) the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as
they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into account the
particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company would receive,
were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company does not intend to incur
debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). 
 (t) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or
other Person with respect to the transactions contemplated by this Agreement, and the Company has not taken any action that would cause any Buyer to be liable for any such fees or commissions. The Company agrees that the Buyers shall have no
obligation with respect to any fees or with respect to any claims made by or on behalf of any Person for fees of the type contemplated by this Section 3(t) in connection with the transactions contemplated by this Agreement. 
 (u) Integration. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Purchased Shares to be integrated with prior offerings of securities by the Company for purposes of any
applicable shareholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated, nor will the Company or
any of its Subsidiaries take any action or steps that would cause the offering of the Purchased Shares to be integrated with other offerings. 
 (v) Listing and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from the Principal Market on which the Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of the Principal Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and
maintenance requirements. The issuance and sale of the Purchased Shares hereunder does not contravene the rules and regulations of the Principal Market and no shareholder approval is required for the Company to fulfill its obligations under the
Transaction Documents. The Common Stock is currently listed on the Principal Market. 
 (w) Registration Rights. No holder of
securities of the Company has any right to cause the registration under the 1933 Act of any securities of the Company as a result of the issuance of the 

  

 10 

 
Purchased Shares hereunder the failure to effect which right could expose the Company to material liability or any other holder of securities of the Company
to any liability or that could impair the Company’s ability to consummate the issuance and sale of the Purchased Shares in the manner, and at the times, contemplated hereby, which rights have not been waived by such holder as of the date
hereof. 
 (x) Application of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in
order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s Articles of Incorporation (or
similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Buyers as a result of the Buyers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including, without limitation, as a result of the Company’s issuance of the Purchased Shares and the Buyers’ ownership of the Purchased Shares. 
 (y) Investment Company. The Company and its Subsidiaries are not, and are not an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

(z) Sarbanes-Oxley Act. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are
effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof, except where such noncompliance would not have a Material Adverse Effect. 
 (aa) Tax Returns. All tax returns required to be filed by the Company or any of the Subsidiaries have been timely filed, taking into account any
extensions of time within which to file such tax returns, and all taxes and other assessments of a similar nature (whether imposed directly or through withholding) including any interest, additions to tax or penalties applicable thereto due or
claimed to be due from such entities have been timely paid, other than those being contested in good faith and for which adequate reserves have been provided in accordance with GAAP, and except where the failure to file such returns or pay such
taxes or other assessments would not, individually or in the aggregate, have a Material Adverse Effect. 
 (bb) Material Contracts.
Except as set forth on Schedule 3(bb), neither the Company nor any Subsidiary has sent or received any communication regarding termination of, or intent not to renew, any of the material contracts or agreements to which the Company or any
subsidiary is a party referred to or described in the Prospectus or referred to or described in, or filed as an exhibit to, or incorporated by reference as an exhibit to, the Registration Statement, and no such termination or non-renewal has been
threatened by the Company or any Subsidiary or, to the Company’s best knowledge, any other party to any such contract or agreement. 
 (cc) Illegal Funds. Neither the Company nor any of the Subsidiaries nor, to the Company’s best knowledge, any employee or agent of the Company or any Subsidiary has made any payment of funds of the Company or any Subsidiary or
received or retained any funds in violation of any law, rule or regulation (including, without limitation, the Foreign Corrupt Practices Act of 1977), which payment, receipt or retention of funds is of a character required to be disclosed in the
Registration Statement or the Prospectus. 
  

 11 

 (dd) Restrictions on Subsidiaries. Except as otherwise set forth in the Registration Statement
(excluding any exhibits thereto and the Prospectus) and except as set forth on Schedule 3(dd), no Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such
Subsidiary’s capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property or assets to the Company or any other Subsidiary of the Company.

 (ee) Market Manipulation. Neither the Company nor any of the Subsidiaries nor, to the Company’s best knowledge, any of their
respective directors, officers, affiliates or controlling persons has taken, directly or indirectly, any action designed, or which has constituted or might reasonably be expected to cause or result in the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Purchased Shares. 
 (ff) Environmental and Safety Laws. The
Company is in material compliance with applicable statutes, laws and regulations relating to the environment or occupational health and safety. No hazardous or toxic substances or wastes have been released by the Company at any real property now or
previously owned or leased by the Company which could result in a Material Adverse Effect. 
 (gg) Disclosure. The Company understands
and confirms that the Buyers will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Buyers regarding the Company, its business and the transactions contemplated hereby,
furnished by or on behalf of the Company, taken together with SEC Reports, are true and correct, in all material respects, and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not misleading. 
 4. COVENANTS. 
 (a) Best Efforts. Each party shall use its best efforts timely to satisfy each of the covenants and the conditions to be satisfied by it as
provided in Sections 6 and 7 of this Agreement. 
 (b) Prospectus Supplement and Blue Sky. On or before the execution of this
Agreement, the Company shall have delivered, and as soon as practicable after the Closing the Company shall file with the SEC, the Prospectus Supplement with respect to the Purchased Shares as required under and in conformity with the 1933 Act,
including Rule 424(b) thereunder. If required, the Company, on or before the Closing Date, shall take such actions as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Purchased Shares for sale
to the Buyers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so
taken to the Buyers on or prior to the Closing Date. The Company shall make all filings and reports relating to the offer and sale of the Purchased Shares required under applicable securities or “Blue Sky” laws of the states of the United
States following the Closing Date. 
  

 12 

 (c) Reporting Status. The Company shall timely file all reports required to be filed with the SEC
pursuant to the 1934 Act and shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would otherwise permit such termination until the date (the
“Reporting Period”) on which each Buyer shall no longer be the holder of record, or the beneficial owner reflected on listing of non-objecting beneficial owners, commonly referred to as the “NOBO list,” reasonably
available to the Company, in either case, of fewer than 25% of the Purchased Shares purchased by such Buyer under this Agreement. 
 (d)
Listing. The Company shall promptly secure the listing of all of the Purchased Shares upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject to official notice of
issuance) and shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all outstanding shares of Common Stock from time to time issuable under the terms of the Transaction Documents. The Company shall maintain
the Common Stock’s authorization for listing on the Principal Market for so long as the Common Stock is so listed. Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the
delisting or suspension of the Common Stock on the Principal Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(d). 
 (e) Fees. The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or broker’s
commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions contemplated hereby, including, without limitation, any fees or commissions payable to the agent in connection with the Purchased Shares. The
Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment.
Except as otherwise set forth in this Agreement or in the other Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Purchased Shares to the Buyers. 
 (f) Disclosure of Transactions and Other Material Information. The Company shall, on or before 8:30 a.m., New York City time, on the first
business day after the date hereof, file a Current Report on Form 8-K reasonably acceptable to the Buyers disclosing all material terms of the transactions contemplated hereby in the form required by the 1934 Act, and attaching the form of this
Agreement as an exhibit to such filing (including all attachments, the “8-K Filing”). Except with respect to any Buyer a representative of which is a member of the Board of Directors of the Company or any other Buyer affiliated with
such Buyer, the Company shall not, and shall cause each of its Subsidiaries and each of their respective officers, directors, employees and agents, not to, provide any Buyer with any material, nonpublic information regarding the Company or any of
its Subsidiaries from and after the filing of the press release referred to in the first sentence of this Section 4(f) without the express written consent of such Buyer. Subject to the foregoing, neither the Company nor any Buyer shall issue
any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of any Buyer, to make any press 

  

 13 

 
release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith
and (ii) as is required by applicable law and regulations, including the applicable rules and regulations of the Principal Market (provided that in the case of clause (i) Essex Woodlands Health Ventures VII, L.P. (the “Lead
Buyer”) shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). 
 (g) Incorporation; Good Standing. On or prior to the 30th day after the Closing Date, the Company shall deliver to each Buyer a certificate evidencing the incorporation and good standing of the Company and each of its Subsidiaries in
the applicable jurisdiction of incorporation issued by the Pennsylvania Secretary of the Commonwealth or Delaware Department of State, as applicable. 
 (h) Articles of Incorporation. On or prior to the 30th day after the Closing Date, the Company shall have delivered to each Buyer a certified copy of the Articles of Incorporation, as amended (the
“Articles”), as certified by the Pennsylvania Secretary of the Commonwealth. 
 5. BOARD OF DIRECTORS MATTERS. 
 (a) Provided the aggregate Purchase Price for the Purchased Shares purchased by the Lead Buyer hereunder is at least $25 million, the Lead Buyer shall
have the right to designate, at Closing, one individual to be considered by the Nominating and Corporate Governance Committee (the “Nominating Committee”) of the Company’s Board of Directors, in accordance with the Nominating
Committee’s charter and applicable rules and regulations of the SEC and the Principal Market, for nomination and election to the Company’s Board of Directors promptly following the Closing (the “Board Designation Right”).
In the event such individual is no longer employed by or in a business relationship or affiliation with the Lead Buyer or takes another position within the Lead Buyer’s organization which makes his or her continuing representation of the Lead
Buyer on the Company’s Board of Directors undesirable in the view of the Lead Buyer, or if an individual so designated by the Lead Buyer pursuant to the Board Designation Right is not elected to the Company’s Board of Directors, then the
Lead Buyer shall be permitted to designate another individual to be so nominated and elected. The individual designated by the Lead Buyer for election to the Company’s Board of Directors shall be considered by the Nominating Committee, in
accordance with its charter and applicable rules and regulations of the SEC and the Principal Market, for nomination and re-election to the Company’s Board of Directors at the Company’s 2008 Annual Meeting of Shareholders and thereafter
until otherwise decided by the Lead Buyer. If the Lead Buyer determines not to exercise the Board Designation Right, then for 30 days following the next occurring vacancy on the Board of Directors, the Lead Buyer shall have the right to designate
one individual to be considered by the Nominating Committee for election to the Company’s Board of Directors on the terms described above. 
 (b) The Board Designation Right shall terminate, expire and be of no further force or effect on and after the first date on which the Lead Buyer and its affiliates shall cease to hold, in the aggregate, a majority of the Purchased Shares
originally sold to and purchased by the Lead Buyer pursuant to this Agreement. 
  

 14 

 6. CONDITIONS TO THE COMPANY’S OBLIGATIONS. The obligations of the Company hereunder to issue and sell
the Purchased Shares to each Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that such conditions are for the Company’s sole benefit and may be waived by
the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof: 
 (a) Such Buyer shall have
executed and delivered to the Company each of the Transaction Documents to which it is a party. 
 (b) Such Buyer shall have delivered to the
Company, and the Company shall have received, the aggregate Purchase Price for the Purchased Shares being purchased by such Buyer at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the
Company. 
 (c) The aggregate Purchase Price for all of the Purchased Shares being purchased by the Buyers at the Closing shall be at least
$25.0 million. 
 (d) The representations and warranties of such Buyer shall be true and correct in all material respects (except for those
representations and warranties that are qualified by materiality or material adverse effect, which shall be true and correct in all respects), as of the date made and as of the Closing Date as though made at that time (except for representations and
warranties that speak as of a specific date, which shall be true and correct as of such date), and such Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by such Buyer at or prior to the Closing Date. 
 (e) NASDAQ shall have issued to the
Company its written interpretation of NASDAQ Marketplace Rule 4350(i)(1)(D)(ii) in the manner requested by the Company pursuant to the letter, dated July 13, 2007, on behalf of the Company to NASDAQ, as such letter may be amended or
supplemented subsequently by the Company. 
 7. CONDITIONS TO EACH BUYER’S OBLIGATIONS. The obligation of each Buyer to purchase the Purchased
Shares at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that such conditions are for such Buyer’s sole benefit and may be waived by such Buyer at any time in its
sole discretion by providing the Company with prior written notice thereof: 
 (a) The Company shall have (i) executed and delivered to
such Buyer each of the Transaction Documents, and (ii) delivered the Purchased Shares being purchased by such Buyer at the Closing pursuant to this Agreement. 
 (b) Such Buyer shall have received the opinion of Duane Morris LLP, the Company’s counsel (“Company Counsel”), dated as of the Closing Date, substantially in the form attached hereto as
Exhibit A. 
 (c) The Company shall have delivered to such Buyer a letter from a reputable service company stating that a verbal good
standing has been obtained from the Pennsylvania Secretary of the Commonwealth or the Delaware Department of State, as applicable, with respect to the Company and each of its Subsidiaries as of a date within 10 days prior to the Closing Date.

  

 15 

 (d) The Common Stock (i) shall be listed on the Principal Market and (ii) shall not have been
suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have been threatened, as of the Closing Date, either (A) in writing by the SEC or
the Principal Market or (B) by failing to satisfy the minimum listing maintenance requirements of the Principal Market as of the Closing Date. 
 (e) The Company shall have delivered to such Buyer a certificate, executed by the Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions consistent with the transactions contemplated by this Agreement as
adopted by the Company’s Board of Directors or a committee thereof in a form reasonably acceptable to such Buyer, (ii) the Articles and (iii) the Bylaws of the Company, each as in effect at the Closing, in the form attached hereto as
Exhibit B. 
 (f) The representations and warranties of the Company shall be true and correct in all material respects (except for
those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects), as of the date when made and as of the Closing Date as though made at that time (except for
representations and warranties that speak as of a specific date, which shall be true and correct as of such date), and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing Date. Such Buyer shall have received a certificate, executed by the Chief Executive Officer or Chief Financial Officer of the
Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form attached hereto as Exhibit C. 
 (g) The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the issuance and sale of
the Purchased Shares. 
 (h) The Registration Statement shall be effective in accordance with the 1933 Act and available for the issuance and
sale of the Purchased Shares hereunder, and the Company shall have delivered to such Buyer the Prospectus. 
 (i) NASDAQ shall have issued to
the Company its written interpretation of NASDAQ Marketplace Rule 4350(i)(1)(D)(ii) in the manner requested by the Company pursuant to the letter, dated July 13, 2007, on behalf of the Company to NASDAQ, as such letter may be amended or
supplemented subsequently by the Company. 
 (j) The Company shall have delivered to such Buyer such other documents relating to the
transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request. 
 8. TERMINATION. In the event that the Closing
shall not have occurred with respect to any Buyer on the Closing Date due to the failure of any condition set forth in Sections 6 or 7 (and the non-breaching party’s failure to waive such unsatisfied condition), then the non-breaching party or
parties shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date by notice to such other party without liability of any party to any other party. 
  

 16 

 9. MISCELLANEOUS. 
 (a) Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New
York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.
Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 
 (b) Counterparts. This Agreement may
be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 
 (c) Headings. The headings of this Agreement are for convenience of reference and shall not form part, or affect the interpretation, of this
Agreement. 
 (d) Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. 
 (e) Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyers, the Company, their
affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and
therein and, except as specifically set forth herein or therein, neither the 

  

 17 

 
Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended
other than by an instrument in writing signed by the Company and the holders of Purchased Shares representing at least a majority of the aggregate number of the Purchased Shares, or, if prior to the Closing Date, the Buyers listed on the Schedule of
Buyers as being obligated to purchase at least a majority of the aggregate number of Purchased Shares. No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. No such amendment
shall be effective to the extent that it applies to less than all of the holders of the Purchased Shares then outstanding. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of
any of the Transaction Documents unless the same consideration also is offered to all of parties to the Transaction Documents. The Company has not, directly or indirectly, made any agreement with any Buyer relating to the terms or conditions of the
transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. 
 (f) Notices. Any notices,
consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one business day after deposit with an overnight courier service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 
 (i) If
to the Company: 
 Orthovita, Inc 
 Attn:  Christine J. Arasin, 
 Vice President and Corporate Counsel 
 77 Great Valley Parkway 
 Malvern, PA 19355 
 Facsimile: 610.640.2603 
 with a copy to: 
 Duane Morris LLP 
 Attn:  Richard A. Silfen, Esquire 
 30 South 17th Street 
 Philadelphia, PA
19103 
 Facsimile: 215.979.1020 
 (ii) If to a Buyer, to its address and facsimile number set forth on the Schedule of Buyers, with copies to such Buyer’s representatives as set forth on the Schedule of Buyers, or to such other address and/or
facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt
(A) given by the recipient of such 

  

 18 

 
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time,
date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier
service in accordance with clause (i), (ii) or (iii) above, respectively. 
 (g) Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the holders of
Purchased Shares representing at least a majority of the aggregate number of the Purchased Shares. 
 (h) No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 
 (i) Survival. Unless this Agreement is terminated pursuant to Section 8, the representations and warranties of the Company and the respective
Buyers contained in Sections 3 and 2, respectively, the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing for a period of two years thereafter. No Buyer shall be responsible for any representations, warranties,
agreements and covenants hereunder of any other Buyer. 
 (j) Further Assurances. Each party shall do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby. 
 (k) Indemnification. 
 (i) In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Purchased Shares
thereunder, and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless each Buyer and its shareholders, partners, members, officers, directors,
employees and its direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively,
the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is
a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or
relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in the Transaction Documents, (b) any breach of any covenant, agreement or obligation of the Company contained in the Transaction
Documents or (c) any cause of action, suit or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting from the 

  

 19 

 
execution, delivery, performance or enforcement of the Transaction Documents. To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. 
 (ii) Promptly after receipt by an Indemnitee under this Section 9(k) of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim for indemnification in respect thereof is to be made against any indemnifying party under this Section 9(k), deliver to the
indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own counsel with the fees and expenses of not more
than one counsel for such Indemnitee to be paid by the indemnifying party, if, in the reasonable opinion of the Indemnitee, the representation by such counsel of the Indemnitee and the indemnifying party would be inappropriate due to an actual
conflict of interest between such Indemnitee and any other party represented by such counsel in such proceeding (it being understood that, in the event that a claim involves more than one Indemnitee, the indemnifying party’s obligations to pay
the fees and expenses of one counsel shall extend only to one Indemnitee). Legal counsel referred to in the immediately preceding sentence shall be selected by the Buyers holding at least a majority of the Purchased Shares. The Indemnitee shall
cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or Indemnified Liabilities by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the
Indemnitee that relates to such action or Indemnified Liabilities. The indemnifying party shall keep the Indemnitee fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying
party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No
indemnifying party shall, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liabilities or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnitee
with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action
shall not relieve such indemnifying party of any liability to the Indemnitee under this Section 9(k), except to the extent that the indemnifying party is prejudiced in its ability to defend such action. 
 (iii) The indemnification required by this Section 9(k) shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or Indemnified Liabilities are incurred. 
  

 20 

 (iv) The indemnity agreements contained herein shall be in addition to (i) any cause
of action or similar right of the Indemnitee against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law. 
 (l) No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party. 
 (m) Remedies. Each Buyer shall have all rights and
remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted by the Company at any time under any other agreement or contract and all of the rights which such holders have under any applicable law.
Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law may prove to be
inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other
security. 
 (n) Payment Set Aside. To the extent that the Company makes a payment or payments to the Buyers hereunder or pursuant to
any of the other Transaction Documents or the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to
be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy
law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred. 
 (o) Independent Nature of Buyers’ Obligations and
Rights. The obligations of each Buyer under any Transaction Document are several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any other Buyer under
any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that the Buyers
are not acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Buyer confirms that it has independently participated in the negotiation of the transaction contemplated
hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents,
and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose. 
 [Signature
Pages Follow] 
  

 21 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	COMPANY:
	
	ORTHOVITA, INC.
		
	By:	 	/s/ Albert J. Pavucek, Jr.
	Name:	 	Albert J. Pavucek, Jr.
		
	Title:	 	Chief Financial Officer

  

 22 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYER:
	
	ESSEX WOODLANDS HEALTH VENTURES FUND VII, L.P.
		
	By:	 	Essex Woodlands Health Ventures VII, L.P., its general partner
		
	By:	 	/s/ Mark Pacala
	Name:	 	Mark Pacala
		
	Title:	 	Manager

  

 23 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYER:
		
	By:	 	/s/ Stephen F. Wiggins
	Name:	 	Stephen F. Wiggins

  

 24 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYER:
	
	MAGNETAR CAPITAL MASTER FUND, LTD.
		
	By:	 	Magnetar Financial LLC, its Investment Manager
		
	By:	 	/s/ Doug Litowitz
	Name:	 	Doug Litowitz
		
	Title:	 	Counsel

  

 25 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYER:
	
	W.H.I. GROWTH FUND Q.P., L.P.
		
	By:	 	William Harris Investors, Inc., GP
		
	By:	 	/s/ Charles Polsky
	Name:	 	Charles Polsky
		
	Title:	 	Vice President

  

 26 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYER:
	
	WHI SELECT FUND, L.P.
		
	By:	 	William Harris Investors, Inc., GP
		
	By:	 	/s/ Charles Polsky
	Name:	 	Charles Polsky
		
	Title:	 	Vice President

  

 27 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYER:
	
	PANACEA FUND, LLC
		
	By:	 	William Harris Investors, Manager
		
	By:	 	/s/ Charles Polsky
	Name:	 	Charles Polsky
		
	Title:	 	Vice President

  

 28 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYER:
	
	LEHMAN BROTHERS INC.
		
	By:	 	/s/ Jeffrey Ferrell
	Name:	 	Jeffrey Ferrell
		
	Title:	 	Vice President

  

 29 

 SCHEDULE OF BUYERS 
  

							
	 Buyer
	  	 Address, Facsimile Number
 and State of Residence
	  	 Number of
 Purchased
 Shares
	  	 Legal Representative’s
 Address and
 Facsimile Number

	 Essex Woodlands Health
 Ventures Fund VII, L.P.

	  	 717 Fifth Avenue
 14th Floor, Suite B
 New York, NY 10022
 Attn: Mark Pacala
 Facsimile: 212-355-2313
	  	9,469,697	  	 Cooley Godward Kronish LLP
 One Freedom Square

Reston Town Center
 11951 Freedom Drive
 Reston, VA 20190
 Attn: Mark D. Spoto, Esq.
 Facsimile: 703-456-8100

	Stephen F. Wiggins	  	 c/o Essex Woodlands Health
 Ventures VII, L.P.

717 Fifth Avenue
 14th Floor, Suite B
 New York, NY 10022
	  	378,788	  	 c/o Essex Woodlands Health
 Ventures VII, L.P.

717 Fifth Avenue
 14th Floor, Suite B
 New York, NY 10022

	Magnetar Capital Master Fund, Ltd.	  	 Magnetar Capital LLC
 13th Floor
 1603 Orrington Avenue
 Evanston, IL 60201
 Attn: Douglas Litowitz
 Facsimile: 847-905-5685
	  	822,860	  	 Magnetar Capital LLC
 13th Floor
 1603 Orrington Avenue
 Evanston, IL 60201
 Attn: Douglas Litowitz
 Facsimile: 847-905-5685

	W.H.I. Growth Fund Q.P., L.P.	  	 William Harris Investors Inc.
 191 North Wacker Drive

 Suite 1500
 Chicago, IL 60606-1899
 Attn: Charles Polsky
 Facsimile: 312-621-0984
	  	452,573	  	 William Harris Investors Inc.
 191 North Wacker Drive

 Suite 1500
 Chicago, IL 60606-1899
 Attn: Charles Polsky
 Facsimile: 312-621-0984

	WHI Select Fund, L.P.	  	 William Harris Investors Inc.
 191 North Wacker Drive

 Suite 1500
 Chicago, IL 60606-1899
 Attn: Charles Polsky
 Facsimile: 312-621-0984
	  	246,858	  	 William Harris Investors Inc.
 191 North Wacker Drive

 Suite 1500
 Chicago, IL 60606-1899
 Attn: Charles Polsky
 Facsimile: 312-621-0984

	Panacea Fund, LLC	  	 William Harris Investors Inc.
 191 North Wacker Drive

 Suite 1500
 Chicago, IL 60606-1899
 Attn: Charles Polsky
 Facsimile: 312-621-0984
	  	123,429	  	 William Harris Investors Inc.
 191 North Wacker Drive

 Suite 1500
 Chicago, IL 60606-1899
 Attn: Charles Polsky
 Facsimile: 312-621-0984

	Lehman Brothers Inc.	  	 Lehman Brothers Inc.
 Global Trading
Strategies
 399 Park Avenue, 9th Floor
 New York, NY 10022
 Attn: Richard T. Pines
 Facsimile: 646-834-2412
	  	822,861	  	 Lehman Brothers Inc.
 Global Trading
Strategies
 399 Park Avenue, 9th Floor
 New York, NY 10022
 Attn: Richard T. Pines
 Facsimile: 646-834-2412

		  		  	 	  	
	 Total
	  		  	12,317,066	  	
		  		  	 	  	

  

 30

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