Document:

Exhibit 10.2

 

SIDE LETTER

 

This SIDE LETTER (this
“Agreement”), dated as of April 6, 2016, is made and entered into by and between ZAIS FINANCIAL CORP., a Maryland
corporation (the “Company”) and WATERFALL ASSET MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”).
Capitalized terms used herein but not defined shall have the meanings ascribed to them in the Management Agreement (defined below).

 

WHEREAS, the Company
is a party to the Agreement and Plan of Merger, dated as of April 6, 2016 (the “Merger Agreement”), by and among
the Company, ZAIS Financial Partners, L.P., a Delaware limited partnership (“Company Operating Partnership”),
ZAIS Merger Sub, LLC, a Delaware limited liability company (“Merger Sub”), Sutherland Asset Management Corporation
(“Sutherland”), and Sutherland Partners, L.P. (“Sutherland Operating Partnership”), whereby
Sutherland will merge with and into Merger Sub, with Merger Sub being the surviving company under the name of “Sutherland
Asset Management LLC” and a wholly owned subsidiary of the Company, and whereby Company Operating Partnership will merge
with Sutherland Operating Partnership, with Company Operating Partnership being the surviving entity under the name “Sutherland
Partners, L.P.” and whereby the Company will amend its charter to change its name to “Sutherland Asset Management Corporation”,
in each case effective as of the Effective Date (as defined below);

 

WHEREAS, concurrently
with the execution of this Agreement, the Company will execute the Management Agreement (the “Management Agreement”)
with the Manager, pursuant to which, as of the Effective Date (as defined below), the Manager will provide for the day-to-day management
of the operations of the Company and its subsidiaries and will be responsible for the selection, purchase and sale of the Company’s
portfolio investments, the Company’s financing activities, and providing the Company with investment advisory, asset management
and other services, all as more specifically described in the Management Agreement;

 

WHEREAS, in order to
address certain potential conflicts arising from and after the Effective Date from the Company’s relationship with the Manager
and the Manager’s relationship with its affiliates, the parties hereto desire to set forth certain policies relating to future
investment vehicles sponsored by the Manager or its affiliates; and

 

WHEREAS, this Agreement
will become effective if and when the closing under the Merger Agreement occurs, and will terminate automatically upon any termination
of the Merger Agreement in accordance with its terms.

 

NOW, THEREFORE, for
the mutual promises made herein and in the other agreements executed by the parties concurrently herewith or contemplated hereby,
and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

 

     

     

    

 

Article
I

ADDITIONAL INVESTMENT VEHICLES

 

Section
1.01         Additional Investment Vehicles. During the term of this
Agreement, neither the Manager nor any of its affiliates shall (i) sponsor or manage any additional investment vehicle where
the Company does not participate as an investor whose primary investment strategy will involve small-balance commercial (“SBC”)
mortgage loans, unless the Manager obtains the prior approval of a majority of the Board of Directors of the Company (the “Board
of Directors”) (including a majority of the Company’s independent directors) or (ii) acquire a portfolio of
assets, a majority of which (by value or unpaid principal balance) are SBC mortgage loans on behalf of another investment vehicle
(other than acquisitions of SBC asset backed securities), unless the Company is first offered the investment opportunity and a
majority of the Board of Directors (including a majority of the Company’s independent directors) decide not to acquire such
assets; provided, for the avoidance of doubt, the Board of Directors has previously waived the forgoing restrictions with respect
to past transactions as they relate to Waterfall Olympic Master Fund, LP or Waterfall Olympic Fund, Ltd.

 

Article
II

TERM

 

Section
2.01         Term. This Agreement shall be effective as of the Closing
Date (as defined in the Merger Agreement) (the “Effective Date”) and shall terminate on the first to occur of
any of the following events:

 

(a)          Immediately
upon the execution by all parties hereto of a written agreement to terminate this Agreement (or upon the effective date of such
termination as specified in such written agreement); provided, however, that such termination shall
not be effective unless and until it has been consented to by a majority of the Board of Directors, including a majority of the
Company’s independent directors; or

 

(b)          At
such time as either (i) the Management Agreement is terminated by any party thereto, for any reason, or (ii) the Manager
ceases to be the manager of the Company and its subsidiaries for any reason.

 

Section
2.02         Rights of Termination. If this Agreement is terminated,
such termination shall be without any further liability or obligation of either party to the other, except as provided in Section 3.07.

 

Section
2.03         Termination Prior to Effective Date. This Agreement shall
terminate automatically upon any termination of the Merger Agreement in accordance with its terms, and such termination shall be
without any further liability or obligation of either party to the other, except as provided in the Merger Agreement.

 

    	 	2	 

     

    

 

Article
III

MISCELLANEOUS PROVISIONS

 

Section
3.01         Assignment. This Agreement may not be assigned by any party
hereto without the prior written consent of the other party.

 

Section
3.02         Notice.

 

(a)          Unless
expressly provided otherwise in this Agreement, all notices, requests, demands and other communications required or permitted under
this Agreement shall be in writing and shall be deemed to have been duly given, made and received when delivered against receipt
or upon actual receipt of (i) personal delivery, (ii) delivery by reputable overnight courier, (iii) delivery by
facsimile transmission with telephonic confirmation or (iv) delivery by registered or certified mail, postage prepaid, return
receipt requested, addressed as set forth below:

 

If to the Manager:

 

Waterfall Asset Management, LLC

1140 Avenue of the Americas, 7th Floor

New York, New York 10036

Attention: Kenneth Nick

Facsimile: 212-843-8909

Telephone: 212- 257-4606

 

If to the Company:

 

Prior to the Effective Date: The
notice address of the Company as set forth in the Merger Agreement.

 

Following the Effective Date:

 

Sutherland Asset Management Corporation

1140 Avenue of the Americas, 7th Floor

New York, New York 10036

Attention: Kenneth Nick

Facsimile: 212-843-8909

Telephone: 212- 257-4606

 

(b)          Either
party may alter the address to which communications or copies are to be sent by giving notice of such change of address in conformity
with the provisions of this Section 3.02 for the giving of notice.

 

Section
3.03         Binding Nature of Agreement; Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives,
successors and permitted assigns as provided in this Agreement.

 

    	 	3	 

     

    

 

Section
3.04         Entire Agreement. This Agreement contains the entire agreement
and understanding among the parties hereto with respect to the subject matter of this Agreement and the Management Agreement, and
supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written,
of any nature whatsoever with respect to the subject matter of this Agreement and the Management Agreement. The express terms of
this Agreement control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms of
the Management Agreement, and in the event of any inconsistency or conflict between this Agreement and the Management Agreement,
the terms, conditions and provisions of this Agreement shall govern and control.

 

Section
3.05         Amendments. This Agreement may be amended or modified only
by an agreement in writing signed by all parties hereto; provided, that any such amendment shall not be effective
unless and until it has been approved by a majority of the Board of Directors, including a majority of the Company’s independent
directors.

 

Section
3.06         No Waivers; Cumulative Remedies. No failure to exercise
and no delay in exercising, on the part of any party hereto, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. No waiver of any
provision hereunder shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

Section
3.07         Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES TO THE CONTRARY.

 

Section
3.08         Headings. The headings contained in this Agreement are
for convenience only and shall not affect the construction or interpretation of any provisions of this Agreement.

 

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

 

Section
3.10         Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all
of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts
of this Agreement, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

 

[Remainder of Page Intentionally Left
Blank]

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed by their representatives on the date first written above.

 

	 	MANAGER
	 	 
	 	WATERFALL ASSET MANAGEMENT, LLC
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ Jack J. Ross
	 	 	Name: Jack J. Ross
	 	 	Title: Authorized Person
	 	 	 
	 	COMPANY
	 	 
	 	ZAIS FINANCIAL CORP.
	 	a Maryland corporation
	 	 
	 	By:	/s/ Michael Szymanski
	 	 	Name: Michael Szymanski
	 	 	Title: President and Chief Executive Officer

 

[Waterfall Side Letter – Signature
Page]Exhibit 10.3

 

TERMINATION AGREEMENT

 

THIS TERMINATION
AGREEMENT, dated as of April 6, 2016 (this “Agreement”), among ZAIS FINANCIAL CORP., a Maryland corporation
that has elected to be treated as a real estate investment trust for federal income tax purposes (“Company”),
ZAIS FINANCIAL PARTNERS, L.P., a Delaware limited partnership and the operating partnership of Company (“Company Operating
Partnership”), each of the subsidiaries of Company as set forth on the signature page hereto (“Company Subsidiaries”),
ZAIS REIT MANAGEMENT, LLC, a Delaware limited liability company and the investment advisor to Company (“Advisor”),
and SUTHERLAND ASSET MANAGEMENT CORPORATION, a Maryland corporation that has elected to be treated as a real estate investment
trust for federal income tax purposes (“Sutherland”). Each of Company, Company Operating Partnership, Company
Subsidiaries, Advisor and Sutherland is sometimes referred to herein as a “Party” and collectively as the “Parties.”

 

WHEREAS, Company, Company
Operating Partnership, ZAIS Merger Sub, LLC, Sutherland and Sutherland Partners, L.P. have entered into that certain Agreement
and Plan of Merger dated as of the date hereof (as may be amended, the “Merger Agreement”), which sets forth
certain rights and obligations of the parties thereto; and

 

WHEREAS, upon the consummation
of the Mergers (as defined in the Merger Agreement), the Parties desire to terminate the Third Amended and Restated Investment
Advisory Agreement, dated as of August 11, 2014, among Company, Company Operating Partnership, Company Subsidiaries and Advisor
(the “Company Advisory Agreement”), upon the terms and subject to the conditions set forth herein.

 

NOW THEREFORE, in consideration
of the foregoing and the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

 

Article
I

TERMINATION

 

Section
1.1           Definitions. Capitalized terms used and not
defined in this Agreement shall have the respective meanings ascribed to such terms in the Merger Agreement.

 

Section 1.2           Termination
of Company Advisory Agreement.

 

(a)          Advisor,
Company, Company Operating Partnership and Company Subsidiaries hereby agree that the Company Advisory Agreement shall be terminated,
without any further liability or obligation on the part of any party thereto, effective as of the Closing and upon receipt of the
Advisor Termination Payment; provided, that each of Section 6 (Records; Confidentiality), Section 9 (Expenses of the Company),
Section 10 (Calculations of Expenses), Section 11 (Limits of Advisor Responsibility; Indemnification), Section 16 (Actions Upon
Termination) and Section 20 (Governing Law) of the Company Advisory Agreement shall survive such termination until they are satisfied
in full or by their nature expire in accordance with its terms, subject to Section 1.3. If the Merger Agreement is terminated,
this Agreement shall automatically be deemed revoked and void ab initio.

 

     

     

    

 

(b)          The
Advisor Termination Payment shall be paid by Company on the Closing Date to the account of Advisor as set forth in Schedule
I. For the avoidance of doubt, no Termination Fee (as defined in the Company Advisory Agreement) shall be payable in connection
with the termination of the Company Advisory Agreement.

 

Section
1.3           Waiver of Notice; Calculation of Fees. Each
Party waives any notice of termination requirement, whether set forth in the Company Advisory Agreement, any other contract between
Company and Advisor or its Affiliate or otherwise. All fees due and payable for the period up to the Closing under the Company
Advisory Agreement shall be calculated in accordance with the term of the Company Advisory Agreement; provided, that Advisor
shall deliver the statement contemplated by Section 10 of the Company Advisory Agreement documenting the Expenses (as defined in
the Company Advisory Agreement) of Company, Company Operating Partnership and Company Subsidiaries and Expenses incurred by Advisor,
within 30 days after the Closing Date.

 

Article
II

REPRESENTATIONS AND WARRANTIES OF ADVISOR

 

Advisor hereby represents
and warrants to Company, Company Operating Partnership, Company Subsidiaries and Sutherland as follows: 

 

Section
2.1           Organization. Advisor is a limited liability
company duly organized, validly existing and in good standing under the laws of Delaware and has all limited liability company
power required to carry on its business as now conducted.

 

Section
2.2           Authority. Advisor has full limited liability
company power and authority to execute, deliver and perform its obligations under this Agreement. This Agreement has been duly
executed and delivered by Advisor and is legal, valid, binding and enforceable upon and against Advisor.

 

Section
2.3           No Conflict; Required Filings and Consents.
The execution, delivery and performance by Advisor of this Agreement and the consummation by Advisor of the transactions contemplated
hereby do not and will not (a) violate any provision of the organizational documents of Advisor; (b) violate any federal,
state or local statute, law, regulation, order, injunction or decree (“Law”); or (c) require any consent
or approval of any person, including any registration or filing with, or notice to any federal, state or local governmental authority
or any agency or instrumentality thereof.

 

Section
2.4           Claims by Advisor. Advisor has not made any
claims against Company, Company Operating Partnership and Company Subsidiaries (“Company Parties”) and, to Advisor’s
knowledge, there are no pending or threatened claims or facts or circumstances which are reasonably likely to give rise to any
claim by Advisor against any Company Party.

 

Section
2.5           Claims by Company Parties. None of the Company
Parties has made any claims against Advisor and, to Advisor’s knowledge, there are no pending or threatened claims or facts
or circumstances which are reasonably likely to give rise to any claim by any Company Party against Advisor.

 

    	 	2	 

     

    

 

Section
2.6           Brokers. Except as previously disclosed to Sutherland
pursuant to the Company Disclosure Letter, no broker, finder or investment banker is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf
of Advisor or its Affiliates.

 

Article
III

COVENANTS

 

Section
3.1           Public Announcements. So long as this Agreement
is in effect, the Parties shall consult with each other before issuing any press release or otherwise making any public statements
or filings with respect to this Agreement or any of the transactions contemplated by this Agreement, and none of the Parties shall
issue any such press release or make any such public statement or filing prior to obtaining the other Parties’ consent (which
consent shall not be unreasonably withheld, conditioned or delayed); provided, that a Party may, without obtaining the other
Parties’ consent, issue such press release or make such public statement or filing as may be required by Law, order or the
applicable rules of any stock exchange if it is not possible to consult with the other Party before making any public statement
with respect to this Agreement or any of the transactions contemplated by this Agreement.

 

Section
3.2           Post-Closing Cooperation. (a) Advisor and Company
shall cooperate with each other, and shall cause their Representatives to cooperate with each other, for a period of 180 days after
the Closing Date to facilitate the orderly transition of management of Company and Company Subsidiaries from Advisor to Waterfall
and to minimize any disruption to Company and the Company Subsidiaries that might result from the transactions contemplated by
the Merger Agreement. After the Closing, upon reasonable written notice, each of Advisor and Company shall furnish or cause to
be furnished to each other and their respective Representatives access, during normal business hours, to such information and assistance
relating to Company and Company Subsidiaries (to the extent within the control of such Party) as is reasonably necessary for the
conduct of business in the ordinary course, including but not limited to financial reporting, accounting and regulatory purposes.

 

(b)          For
the avoidance of doubt, the delivery to the Board of Directors of all property and documents of the Company or any Company Subsidiary
then in the custody of the Advisor required under Section 16(iii) of the Company Advisory Agreement shall include all imaged, electronic
or physical Collateral Files to the extent in the possession or the control of Advisor or its Affiliates (other than Company or
any Company Subsidiary). Any such documents shall be delivered by Advisor to a location in the United States, as designated by
Company. To the extent any such documents have not been delivered as of the Closing Date, Advisor shall cause such documents to
be delivered to Company or Company’s designee as promptly as reasonably practicable following the Closing Date and shall
be held by Advisor in trust for the benefit of Company until delivery to Company or Company’s designee. Notwithstanding anything
to the contrary in this Agreement or the Merger Agreement, Advisor (i) shall be permitted to retain such copies of the Collateral
Files and other property and documents as are necessary solely for the purpose of demonstrating compliance with applicable Laws
and for defending or maintaining any Action, and (ii) shall not be required to deliver such copies of the Collateral Files and
other property and documents as are maintained on any back-up or archival electronic storage system maintained by Advisor in the
ordinary course of business.

 

    	 	3	 

     

    

 

(c)          Each
Party shall reimburse the other for reasonable, documented out-of-pocket costs and expenses incurred in assisting the other pursuant
to this Section 3.2. Neither Party shall be required by this Section 3.2 to take any action that would unreasonably
interfere with the conduct of the business of such Party or its Affiliates or unreasonably disrupt the normal operations of such
Party or its Affiliates. For the avoidance of doubt, any information relating to Company and the Company Subsidiaries received
or retained by Advisor pursuant to this Section 3.2 shall be subject to Section 6 (Records; Confidentiality) of the Company
Advisory Agreement.

 

(d)          As
of the date that is ten (10) Business Days following the Merger Effective Time, Company will cease all use, and will cause each
Company Subsidiary to cease all use, of the “ZAIS” name, any derivative thereof or any terms confusingly similar thereto,
and none of Surviving Entity or any of its subsidiaries will ever use the “ZAIS” name, any derivative thereof or any
terms confusingly similar thereto; provided, that nothing in this Section 3.2(d) shall (i) require any amendment
to any financing statement, deed or other similar public filing or recorded instrument made in the name of Company or any Company
Subsidiary as a secured party, or (ii) prevent the Surviving Entity or its subsidiaries from (A) informing third parties of the
change in name, (B) using written materials marked with such names prior to the Closing Date, or (C) using the “ZAIS”
name as reasonably necessary or advisable for historical purposes to describe the former legal name of Company or any Company Subsidiary
or the former advisor to Company or any Company Subsidiary for the period prior to the Closing Date

 

Article
IV

GENERAL PROVISIONS

 

Section
4.1           Fees and Expenses. Each Party shall bear the
costs of its own legal, financial, strategic, accounting and tax advisors.

 

Section
4.2           Amendment and Modification. This Agreement may
not be amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument in writing
specifically designated as an amendment hereto, signed on behalf of each Party.

 

Section
4.3           Waiver. No failure or delay of any Party in
exercising any right or remedy hereunder shall operate as a waiver thereof. Any such waiver by a Party shall be valid only if set
forth in writing by such Party.

 

Section
4.4           Notices. All notices, requests, claims, consents,
demands and other communications under this Agreement shall be in writing and shall be deemed given if delivered personally, sent
by overnight courier (providing proof of delivery) to the Parties or sent by facsimile or e-mail of a pdf attachment (providing
confirmation of transmission) at the following addresses or facsimile numbers (or at such other address or facsimile number for
a Party as shall be specified by like notice):

 

    	 	4	 

     

    

 

(a)          if
to Advisor or, prior to Closing, a Company Party, to:

 

ZAIS REIT Management, LLC

c/o ZAIS Group, LLC

Two Bridge Avenue, Suite 322

Red Bank, NJ 07701

Attn: General Counsel

Fax: (732) 978-7507

 

(b)          if
to Sutherland or, following Closing, a Company Party, to:

 

Sutherland Asset Management Corporation

1140 Avenue of the Americas, 7th Floor

New York, NY 10036

Attn: Kenneth Nick

email: knick@waterfallam.com

Fax: (212) 843-8909

Telephone: (212) 257-4606

 

with a copy (which shall not constitute notice) to:

 

Sidley Austin LLP

787 Seventh Avenue

New York, NY 10019

Attention: Scott Freeman

Facsimile: (212) 839-5599

 

Section
4.5           Entire Agreement. This Agreement and any other
agreement among the Parties entered into simultaneous to this Agreement (a) constitute the entire agreement and supersede all prior
agreements and understandings, both written and oral, between the Parties with respect to the subject matter of this Agreement
and (b) are not intended to confer upon any Person other than the Parties hereto any rights or remedies.

 

Section
4.6           Governing Law; Venue.

 

(a)          This
Agreement, and all claims or causes of actions (whether at Law, in contract or in tort) that may be based upon, arise out of or
related to this Agreement or the negotiation, execution or performance of this Agreement, shall be governed by, and construed in
accordance with, the laws of the State of Maryland without giving effect to its conflicts of laws principles (whether the State
of Maryland or any other jurisdiction that would cause the application of the Laws of any jurisdiction other than the State of
Maryland).

 

    	 	5	 

     

    

 

(b)          All
disputes arising out of or relating to this Agreement shall be heard and determined exclusively in any Maryland state or federal
court. Each of the Parties hereby irrevocably and unconditionally (i) submits to the exclusive jurisdiction of any such Maryland
state or federal court, for the purpose of any dispute arising out of or relating to this Agreement brought by any Party, (ii)
agrees not to commence any such dispute except in such courts, (iii) agrees that any claim in respect of any such dispute may be
heard and determined in any such Maryland state or federal court, (iv) waives, to the fullest extent it may legally and effectively
do so, any objection which it may now or hereafter have to the laying of venue of any such dispute, and (v) waives, to the fullest
extent permitted by Law, the defense of an inconvenient forum to the maintenance of such dispute. Each of the Parties agrees that
a final judgment in any such dispute shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by Law. Each Party irrevocably consents to service of process in the manner provided for notices in
Section 4.4. Nothing in this Agreement will affect the right of any Party to serve process in any other manner permitted
by Law.

 

Section
4.7           Assignment. Neither this Agreement nor any of
the rights, interests or obligations under this Agreement shall be assigned or delegated, in whole or in part, by operation of
Law or otherwise by any of the Parties without the prior written consent of the other Parties. This Agreement will be binding upon,
inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns.

 

Section
4.8           Severability. If any term or other provision
of this Agreement is invalid, illegal or incapable of being enforced under any present or future Law, or public policy, (a) such
term or other provision shall be fully separable, (b) this Agreement shall be construed and enforced as if such invalid, illegal
or unenforceable provision had never comprised a part hereof, and (c) all other conditions and provisions of this Agreement shall
remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable term or other provision or by
its severance herefrom so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected
in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the Parties as closely as possible in a mutually acceptable manner in order that transactions contemplated by this Agreement
be consummated as originally contemplated to the fullest extent possible.

 

Section
4.9           Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original and all of which together shall be deemed one and the same agreement,
and shall become effective when one or more counterparts have been signed by each of the Parties and delivered (by telecopy, electronic
delivery or otherwise) to the other Parties. Signatures to this Agreement transmitted by facsimile transmission, by electronic
mail in “portable document form” (“pdf”), or by any other electronic means intended to preserve
the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document
bearing the original signature.

 

Section
4.10         Waiver of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING
ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT,
BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION 4.10.

 

    	 	6	 

     

    

 

Section
4.11         Further Assurances. The Parties undertake generally to
execute all such agreements, documents and other instruments and to do all such acts as are necessary to give full effect to, evidence
and confirm the terms of this Agreement.

 

[The remainder of this page is intentionally
left blank.]

 

    	 	7	 

     

    

 

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

 

	 	ZAIS
    REIT MANAGEMENT, LLC
	 	 
	 	By:	/s/ Michael
    Szymanski
	 	 	Name: Michael Szymanski
	 	 	Title: President
	 	 	 
	 	ZAIS
    FINANCIAL CORP.
	 	 	 
	 	By:	/s/
    Michael Szymanski
	 	 	Name: Michael Szymanski
	 	 	Title: President and
    Chief Executive Officer
	 	 	 
	 	ZAIS
    FINANCIAL PARTNERS, L.P.
	 	 	 
	 	By:
      ZAIS Financial Corp., its General Partner
	 	 	 
	 	By:	/s/
    Michael Szymanski
	 	 	Name: Michael Szymanski
	 	 	Title: President and
    Chief Executive Officer
	 	 	 
	 	ZAIS
    ASSET I, LLC
	 	 	 
	 	 	By: ZAIS Financial
    Partners, L.P., its Managing Member
	 	 	 
	 	 	By:
    ZAIS Financial Corp., its General Partner
	 	 	 
	 	By:	/s/
    Michael Szymanski
	 	 	Name: Michael Szymanski
	 	 	Title: President and
    Chief Executive Officer

 

[Signature Page to Termination Agreement]

 

     

     

    

 

	 	ZAIS ASSET II, LLC
	 	 	 
	 	 	By: ZAIS Financial Partners, L.P., its Managing Member
	 	 	 
	 	 	By: ZAIS Financial Corp., its General Partner
	 	 	 
	 	By:	/s/ Michael
Szymanski
	 	 	Name: Michael
Szymanski
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ZAIS ASSET III, LLC
	 	 	 
	 	 	By: ZAIS Financial Partners, L.P., its Managing Member
	 	 	 
	 	 	By: ZAIS Financial Corp., its General Partner
	 	 	 
	 	By:	/s/ Michael
Szymanski
	 	 	Name: Michael
Szymanski
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ZAIS ASSET IV, LLC
	 	 	 
	 	 	By: ZAIS Financial Partners, L.P., its Managing Member
	 	 	 
	 	 	By: ZAIS Financial Corp., its General Partner
	 	 	 
	 	By:	/s/ Michael
Szymanski
	 	 	Name: Michael
Szymanski
	 	 	Title: President and Chief Executive Officer

 

[Signature Page to Termination Agreement]

 

     

     

    

 

	 	ZFC FUNDING, INC.
	 	 	 
	 	By:	/s/ Michael
Szymanski
	 	 	Name: Michael
Szymanski
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ZFC TRUST
	 	 	 
	 	By:	/s/ Michael
Szymanski
	 	 	Name: Michael
Szymanski
	 	 	Title: Trustee
	 	 	 
	 	ZFC TRUST TRS I, LLC
	 	 	 
	 	 	By: ZFC Trust, its Managing Member
	 	 	 
	 	By:	/s/ Michael
Szymanski
	 	 	Name: Michael
Szymanski
	 	 	Title: Trustee

 

[Signature Page to Termination Agreement]

 

     

     

    

  

	 	SUTHERLAND ASSET MANAGEMENT CORPORATION
	 	 	 
	 	By:	/s/ Frederick C. Herbst
	 	 	Name: Frederick C. Herbst
	 	 	Title: Chief Financial Officer

 

[Signature Page to Termination Agreement]

 

     

     

    

 

Schedule I

 

Advisor Wire Transfer Instructions

 

[to be delivered prior to Closing]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]