Document:

EXHIBIT 10.4

 

This TRADEMARK LICENSE AGREEMENT (this “Agreement”), is entered into as of the 21st day of December, 2012 (“Effective Date”), by and between ALTISOURCE SOLUTIONS S.À. R.L., a private limited liability company organized under the laws of the Grand Duchy of Luxembourg, with offices at 291, Route d’Arlon, L-1150 Luxembourg (“Altisource”), and ALTISOURCE ASSET MANAGEMENT CORPORATION, a corporation organized under the laws of the U.S. Virgin Islands, with offices at 402 Strand St., Frederiksted, VI 00840-3531 (“AAMC”), (each, a “Party,” and collectively, the “Parties”).

 

RECITALS

 

WHEREAS, Altisource has adopted, is using and is the owner of the Licensed Mark (as defined below) worldwide;

 

WHEREAS, pursuant to that certain Asset Management Agreement, by and between AAMC and Altisource Residential Corporation, a Maryland corporation (“Residential), AAMC is the asset manager of Residential;

 

WHEREAS, AAMC desires to use the Licensed Mark as part of the trade name Altisource Asset Management Corporation and in connection with the Licensed Activities (as defined below); and

 

WHEREAS, Altisource desires to license the Licensed Mark to AAMC to be used as part of the trade name Altisource Asset Management Corporation and in connection with the Licensed Activities subject to the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements contained herein, the Parties hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise.

 

“Licensed Mark” means the mark ALTISOURCE.

 

“Licensed Trade Name” means the corporate name Altisource Asset Management Corporation and any variation thereof including the term ALTISOURCE that is used by Licensed Users.

 

“Licensed Activities” means the provision of asset management and corporate governance services by Licensed Users and the operation of Licensed Users’ respective businesses in the ordinary course.

 

“Licensed User” and “Licensed Users” means AAMC and its Subsidiaries, if any.

 

“Subsidiary” means any corporation, company or other legal entity: (i) more than fifty percent (50%) of whose shares or outstanding securities (representing the right to vote for the election of directors or other managing authority) are, now or hereafter, Controlled, directly or

 

 

indirectly by a Party hereto, but such entity shall be deemed to be a Subsidiary for the purposes of this Agreement only so long as such Control exists; or (ii) which does not have outstanding shares or securities, as may be the case in a partnership, joint venture, or unincorporated association, but more than fifty percent (50%) of whose ownership interest representing the right to make decisions for such entity is now or hereafter, Controlled, directly or indirectly by a Party hereto, but such entity shall be deemed to be a Subsidiary for the purposes of this Agreement only so long as such Control exists.

 

ARTICLE 2

LICENSE GRANT AND CONDITIONS OF LICENSED USE

 

Section 2.1. Altisource hereby grants Licensed Users a nonexclusive, nontransferable, nonsublicensable, royalty-free license to use and display the Licensed Trade Name and the Licensed Mark worldwide solely in connection with the Licensed Activities.

 

Section 2.2. All use of the Licensed Mark by Licensed Users, and all goodwill associated with such use, shall inure to the benefit of Altisource.

 

Section 2.3. Licensed Users shall use the Licensed Mark in a form which is in accordance with sound trademark practice so as not to weaken the value of the Licensed Mark. Licensed Users shall use the Licensed Mark in a manner that does not derogate, based on an objective business standard, Altisource’s rights in the Licensed Mark or the value of the Licensed Mark, and shall take no action that would, based on an objective standard, interfere with, diminish or tarnish those rights or value.

 

Section 2.4. The Licensed Mark shall remain the exclusive property of Altisource and nothing in this Agreement shall give Licensed Users any right or interest in the Licensed Mark except the licenses expressly granted in this Agreement.

 

Section 2.5. All of Altisource’s rights in and to the Licensed Mark, including, but not limited to, the right to use and to grant others the right to use the Licensed Mark, are reserved by Altisource.

 

Section 2.6. No license, right, or immunity is granted by either Party to the other, either expressly or by implication, or by estoppel, or otherwise with respect to any trademarks, copyrights, or trade dress, or other property right, other than with respect to the Licensed Trade Name and the Licensed Mark in accordance with Section 2.1.

 

Section 2.7. Licensed Users acknowledge that Altisource is the sole owner of all right, title and interest in and to the Licensed Mark, and that Licensed Users have not acquired, and shall not acquire, any right, title or interest in or to the Licensed Mark except the right to use the Licensed Mark in accordance with the terms of this Agreement.

 

Section 2.8. Licensed Users shall not register the Licensed Mark in any jurisdiction without Altisource’s express prior written consent, and Altisource shall retain the exclusive right to apply for and obtain registrations for the Licensed Mark throughout the world.

 

 

Section 2.9. Licensed Users shall not challenge the validity of the Licensed Mark, nor shall Licensed Users challenge Altisource’s ownership of the Licensed Mark or the enforceability of Altisource’s rights therein.

 

Section 2.10. Licensed Users shall designate the first or a prominent use of the Licensed Mark in all promotional materials, documents, brochures, and/or manuals with the symbol “SM”.

 

Section 2.11. Licensed Users agree to cooperate with Altisource’s preparation and filing of any applications, renewals or other documentation necessary or useful to protect and/or enforce Altisource’s intellectual property rights in the Licensed Mark.

 

(a)                Licensed Users shall notify Altisource promptly of any actual or threatened infringements, imitations or unauthorized uses of the Licensed Mark of which Licensed Users become aware.

 

(b)                Altisource shall have the sole right, though it is under no obligation, to bring any action for any past, present and future infringements of its intellectual property rights in the Licensed Mark.

 

(c)                 Licensed Users shall cooperate with Altisource, at Altisource’s expense for any out-of-pocket costs incurred by Licensed Users, in any efforts by Altisource to enforce its rights in the Licensed Mark or to prosecute third party infringers of the Licensed Mark.

 

(d)                Altisource shall be entitled to retain any and all damages and other monies awarded or otherwise paid in connection with any such action.

 

Section 2.12 Quality Control. In order to promote the goodwill symbolized by the Licensed Mark, Licensed Users will insure that the Licensed Activities shall be of the same high quality as the services marketed or otherwise provided by Altisource.

 

(a)                Licensed Users shall use the Licensed Mark only in connection with services that meet or exceed generally accepted industry standards of quality and performance.

 

(b)                Altisource shall have the right to monitor the quality of the services provided and promotional materials used by Licensed Users, and Licensed Users shall use reasonable efforts to assist Altisource in monitoring the quality of the services provided and promotional materials used by Licensed Users.

 

(c)                 From time to time and upon Altisource’s request, Licensed Users shall submit to Altisource samples of all materials bearing the Licensed Mark, including, without limitation, any advertising, packaging and other publicly disseminated materials.

 

(d)                If Altisource discovers any improper use of the Licensed Mark on any such submission and delivers a writing describing in detail the improper use to Licensed Users, Licensed Users shall remedy the improper use immediately.

 

ARTICLE 3

TERM AND TERMINATION

 

Section 3.1. Either Party may terminate this Agreement by giving the other Party thirty (30) days’ prior written notice.

 

 

Section 3.2. In the event that AAMC loses Control of a Subsidiary, all rights and licenses granted to the former Subsidiary under this Agreement shall immediately terminate.

 

Section 3.3. Upon termination of this agreement, Licensed Users shall immediately cease use of the Licensed Trade Name and Licensed Mark as soon as practicable, but no longer than thirty (30) days, after termination.

 

ARTICLE 4

GENERAL PROVISIONS

 

Section 4.1. Indemnification. Licensed Users, at Licensed Users’ own expense, shall indemnify, hold harmless and defend Altisource, its affiliates, successors and assigns, and its and their directors, officers, employees and agents, against any claim, demand, cause of action, debt, expense or liability (including attorneys’ fees and costs), to the extent that the foregoing (a) is based on a claim resulting solely from any service provided or offered by Licensed Users, (b) results from a material breach, or is based on a claim that, if true, would be a material breach, of this Agreement by Licensed Users, or (c) is based upon Licensed Users’ unauthorized or improper use of the Licensed Mark.

 

Section 4.2 LIMITATION OF WARRANTY AND LIABILITY. ALTISOURCE DOES NOT MAKE WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, RELATED TO OR ARISING OUT OF THE LICENSED MARK OR THIS AGREEMENT.

 

(a)                ALTISOURCE SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, AND/OR TITLE, AND ALL OTHER WARRANTIES THAT MAY OTHERWISE ARISE FROM COURSE OF DEALING, USAGE OF TRADE OR CUSTOM.

 

(b)                IN NO EVENT SHALL ALTISOURCE OR ANY OF ITS DIRECTORS, OFFICERS, EMPLOYEES, LICENSORS, SUPPLIERS OR OTHER REPRESENTATIVES BE LIABLE FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, LOSS OF GOODWILL, COMPUTER FAILURE OR MALFUNCTION OR OTHERWISE, ARISING FROM OR RELATING TO THIS AGREEMENT OR THE LICENSED MARK, EVEN IF ALTISOURCE IS EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. The foregoing limitation of liability and exclusion of certain damages shall apply regardless of the failure of essential purpose of any remedies available to either party.

 

Section 4.3 Non-Transferable Agreement. Licensed Users may not assign this Agreement and/or any rights and/or obligations hereunder without the prior written consent of Altisource and any such attempted assignment shall be void.

 

Section 4.4 Remedies. Licensed Users acknowledge that a material breach of Licensed Users’ obligations under this Agreement would cause Altisource irreparable damage. Accordingly, Licensed Users agree that in the event of such breach or threatened breach, in addition to remedies at law, Altisource shall have the right to enjoin Licensed Users from the

 

 

unlawful and/or unauthorized use of the Licensed Trade Name and/or the Licensed Mark and other equitable relief to protect Altisource’s rights in the Licensed Mark.

 

Section 4.5 Integration.  This Agreement contains the entire agreement of the Parties. No promise, inducement, representation or agreement, other than as expressly set forth herein, has been made to or by the Parties hereto. All prior agreements and understandings related to the subject matter hereof, whether written or oral, are expressly superseded hereby and are of no further force or effect.

 

Section 4.6 Binding Agreement. This Agreement shall be binding upon the Parties’ permitted assigns and successors and references to each Party shall include such assigns and successors.

 

Section 4.7 Amendment. This Agreement cannot be altered, amended or modified in any respect, except by a writing duly signed by both Parties.

 

Section 4.8 No Strict Construction. The normal rule of construction to the effect that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this Agreement. Headings are for reference and shall not affect the meaning of any of the provisions of this Agreement.

 

Section 4.9 Waiver. At no time shall any failure or delay by either party in enforcing any provisions, exercising any option, or requiring performance of any provisions, be construed to be a waiver of same.

 

Section 4.10 Governing Law and Jurisdiction. The provisions of this Agreement shall be governed by and construed in accordance with the laws of the State of New York (excluding any conflict of law rule or principle that would refer to the laws of another jurisdiction). Each Party hereto irrevocably submits to the jurisdiction of the state and federal courts located in New York in any action or proceeding arising out of or relating to this Agreement, and each Party hereby irrevocably agrees that all claims in respect of any such action or proceeding must be brought and/or defended in any such court; provided, however, that matters which are under the exclusive jurisdiction of the federal courts shall be brought in the Federal District Court for the District of New York. Each Party hereto consents to service of process by any means authorized by the applicable law of the forum in any action brought under or arising out of this Agreement, and each Party irrevocably waives, to the fullest extent each may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.  Notwithstanding the foregoing, (i) in the event that a court of competent jurisdiction determines that the choice of New York law in accordance with this Section 4.10 is unenforceable, this Agreement shall be governed by the laws of the U.S. Virgin Islands and (ii) in the event that a court of competent jurisdiction determines that the choice of New York jurisdiction in accordance with this Section 4.10 is unenforceable, any action or proceeding arising out of or relating to this Agreement shall be brought in the courts of the U.S. Virgin Islands.

 

Section 4.11 Attorney’s Fees. In the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of this Agreement, the Parties hereto agree that the prevailing party shall be entitled to recover from the other party upon final judgment on the merits reasonable attorneys’ fees (and sales taxes thereon, if any), including attorneys’ fees for any appeal, and costs incurred in bringing such suit or proceeding.

 

 

Section 4.12 Relationship of the Parties. Nothing in this Agreement will be construed as creating a joint venture, partnership, or employment relationship between Altisource and any Licensed User. Neither Party will have the right, power or implied authority to create any obligation or duty on behalf of the other Party.

 

Section 4.13 Notices. Unless otherwise specified in this Agreement, all notices shall be in writing and delivered personally, mailed, first class mail, postage prepaid, or delivered by confirmed electronic or digital means, to the addresses set forth at the beginning of this Agreement and to the attention of the undersigned. Either Party may change the addresses or addressees for notice by giving notice to the other. All notices shall be deemed given on the date personally delivered, when placed in the mail as specified or when electronic or digital confirmation is received.

 

Section 4.14 Counterparts. This Agreement may be executed in counterparts, by manual or facsimile signature, each of which will be deemed an original and all of which together will constitute one and the same instrument.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the date set forth above.

 

 

	
ALTISOURCE SOLUTIONS S.À. R.L.
    	
 
    	
ALTISOURCE ASSET MANAGEMENT CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   William B. Shepro
    	
 
    	
/s/   Ashish Pandey
    
	
 
    	
 
    	
 
    
	
(Signature)
    	
 
    	
(Signature)
    
	
 
    	
 
    	
 
    
	
William   B. Shepro
    	
 
    	
Ashish   Pandey
    
	
 
    	
 
    	
 
    
	
(Print)
    	
 
    	
(Print)
    
	
 
    	
 
    	
 
    
	
Manager
    	
 
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
Title
    	
 
    	
Title
    
	
 
    	
 
    	
 
    
	
December 21,   2012
    	
 
    	
December 21,   2012
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Date
    

 

[TRADEMARK LICENSE AGREEMENT — AAMC]EXHIBIT 10.5

 

SUBSCRIPTION AGREEMENT

 

This SUBSCRIPTION AGREEMENT (this “Agreement”), entered into and effective as of December 21, 2012, is by and between NEWSOURCE REINSURANCE COMPANY, LTD., a company organized under the laws of Bermuda (the “Company”), and the undersigned investor, by itself or through a direct or indirect subsidiary (“Investor”).

 

RECITALS

 

WHEREAS, Investor has agreed to make a capital contribution to the equity capital of the Company in the amount of Two Million Dollars (US$2,000,000) (the “Capital Contribution”), in exchange for which the Company has agreed to issue to Investor a specified number of Common Shares, par value US$1.00 per share of the Company (the “Common Shares”).

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants, obligations and agreements contained herein, Investor and the Company, intending to be legally bound, hereby agree as follows:

 

1.                                      Purchase and Sale of Common Shares.  Subject to the terms and conditions set forth herein and in that certain Shareholders’ Agreement, to be entered into by Investor, ARNS, Inc., a Delaware corporation and the Company (as the same may be amended, supplemented and/or otherwise modified from time to time, and including any schedules or exhibits thereto, the “Shareholders’ Agreement”), Investor irrevocably agrees to make the Capital Contribution to the equity capital of the Company in immediately available funds via wire transfer to the account designated on Schedule A attached hereto.  In full and complete consideration for the Capital Contribution made by Investor, the Company agrees to issue to Investor 2,000,000 Common Shares.

 

2.                                      Execution of the Shareholders’ Agreement.  In connection with the consummation of the subscription made hereunder, Investor shall deliver to the Company an executed counterpart signature to the Shareholders’ Agreement, and in connection therewith, agrees to become a Shareholder (as such term is defined in the Shareholders’ Agreement) and to be bound by the provisions of the Shareholders’ Agreement to the extent applicable to Investor.

 

3.                                      Representations and Warranties of Investor.  In addition to any representations and warranties set forth in the Shareholders’ Agreement, Investor hereby represents and warrants to the Company, as of the date hereof, as follows:

 

(a)                                 Authorization.  Investor has all requisite power and authority to execute and deliver this Agreement and the Shareholders’ Agreement, to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder.  This Agreement and the Shareholders’ Agreement have each been duly and validly executed and delivered by Investor.  This Agreement and the Shareholders’ Agreement each constitute a legal, valid and binding obligation of Investor enforceable against Investor in accordance with their respective terms.

 

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(b)                                 No Consent. No consent, authorization, approval, order, license, certificate or permit of or from, or declaration or filing with, any federal, state, local or other governmental authority, or any court or any other tribunal, is required by Investor for the execution, delivery or performance by Investor of this Agreement and the Shareholders’ Agreement other than approval of the Exchange Control Division of the Bermuda Monetary Authority.

 

(c)                                  No Conflict.  The execution and delivery of this Agreement and the Shareholders’ Agreement, and the consummation of the transactions contemplated hereby and thereby and the performance of Investor’s obligations hereunder and thereunder will not conflict with, or result in any violation of or default under any provision of any governing instrument applicable to Investor, or any agreement or other instrument to which Investor is a party or by which Investor or any of the properties of Investor are bound, or any law, permit, franchise, judgment, decree, statute, rule or regulation applicable to Investor or Investor’s business or properties.

 

(d)                                 Accredited Investor.  Investor is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (the “Act”).

 

(e)                                  Available Information.  Investor is familiar with the Company’s business, plans and financial condition.  Investor understands all of the terms of the purchase of the Common Shares and the risks associated with an investment in the Company.  Investor acknowledges that it has received all information that is essential to Investor in making an informed investment decision whether to purchase the Common Shares and that Investor is relying solely on its own examination of the Company, the Common Shares and the terms and conditions of this Agreement and the Shareholders’ Agreement, regardless of the information previously provided to Investor, prior to making any investment decision with respect to purchase of the Common Shares.  Investor has consulted its own financial, legal and tax advisors with respect to the economic, legal and tax consequences of an investment in the Common Shares and has not relied on the Company or any of its officers, directors, managers, affiliates, agents or professional advisors for advice as to such consequences.  Investor acknowledges that any and all documents, whether oral or in writing, regarding the investment contemplated hereunder are superseded and are qualified in their entirety by the provisions of the Shareholders’ Agreement and this Agreement.

 

(f)                                   Restrictions. Investor understands that the offering and sale of the Common Shares is intended to be exempt from registration under the Act by virtue of Section 4(2) of the Act and the provisions of Regulation D promulgated thereunder and any state “blue sky” or similar laws.  Investor further acknowledges that no filings have been made under the Act or any state “blue sky” or similar laws, and to the extent permitted by law, Investor waives any other filings or notifications.  In furtherance thereof, Investor represents and warrants to and agrees with the Company and its affiliates as follows: (i) Investor realizes that the basis for the exemption may not be present if, notwithstanding such representations, Investor has in mind merely acquiring Common Shares and underlying securities for a fixed or determinable period in the future, or for a market rise, or for sale if the market does not rise; (ii) Investor has the financial ability to bear the economic risk of its investment, has adequate means for providing for its current needs and contingencies and has no need for liquidity with respect to its investment in 

 

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the Company; and (iii) Investor is an investor experienced in the purchase of securities that are offered pursuant to an exemption under the Act and understands that such securities are not liquid or marketable.  Investor has such knowledge and experience in financial and business matters as to enable it to evaluate the merits and risks of purchasing the Common Shares and to make an informed decision to do so.

 

(g)                                  Investment Intent.  Investor is acquiring the Common Shares for its own account as principal, not as a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part and no other person has a direct or indirect beneficial interest in such Common Shares and underlying securities.  Further, Investor does not have any contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participations to such person or entity or to any third person, with respect to any of the Common Shares.  Investor understands that the Common Shares are a speculative investment which involve a high degree of risk of loss of the entire investment in the Company.

 

(h)                                 Transferability.  Investor recognizes that (i) the Common Shares will be subject to certain restrictions on transferability as described in the Shareholders’ Agreement, and (ii) the marketability of the Common Shares will be severely limited.  Investor agrees that it will not transfer, sell or otherwise dispose of the Common Shares in any manner that will violate the Shareholders’ Agreement, the Act or similar state or foreign securities laws or will subject the Company to regulation under the Investment Company Act, the rules and regulations of the Securities and Exchange Commission, or the applicable laws of Bermuda, or any other country, state or municipality having jurisdiction thereof.  In particular, Investor is aware that the Common Shares are “restricted securities,” as such term is defined in Rule 144 promulgated under the Act (“Rule 144”) and may not be sold pursuant to Rule 144 promulgated under the Act unless all of the conditions of Rule 144 are met.  Investor also understands that the Company is under no obligation to register the Common Shares on behalf of Investor or otherwise assist Investor in complying with any exemption from registration under the Act.  Investor further understands that sales or transfers of the Common Shares are further restricted by state securities laws and the provisions of this Agreement which must be executed by Investor as a condition precedent to receiving securities of the Company.

 

(i)                                     Brokers.  Investor has not engaged any broker or other person or entity that is entitled to a commission, fee or other remuneration as a result of the execution, delivery or performance of this Agreement or the Shareholders’ Agreement.

 

(j)                                    Residence of Investor.  Investor hereby represents that the address of such Investor furnished by such Investor in Section 5(c) hereof is such Investor’s principal business address.

 

(k)                                 Reliance on Representation and Warranties.  Investor understands that the Common Shares are being offered and sold to Investor in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of Investor set forth herein in order to determine the applicability of such exemptions and the suitability of Investor to acquire the Common Shares.

 

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4.                                      Representations and Warranties of the Company.  The Company hereby represents and warrants to Investor, as of the date hereof, as follows:

 

(a)                                 Organization and Good Standing. The Company is a exempted company, duly organized, validly existing and in good standing under the laws of Bermuda and has full company power and authority to carry on its business as it is now being conducted and to own, lease or operate its properties and assets.

 

(b)                                 Valid Issuance.  Upon receipt of the Capital Contribution, the Common Shares issued to Investor will be duly and validly authorized, will be duly and validly issued and fully paid, free and clear of any and all liens, claims or encumbrances, other than those set forth in the Shareholders’ Agreement or those imposed by Investor.  The issuance and sale of the Common Shares contemplated hereby will not give rise to any preemptive rights or rights of first refusal on behalf of any person.  The only rights of the Shareholders in respect of their respective Common Shares will be as set forth in the Shareholders’ Agreement.

 

(c)                                  Authorization; Enforceability.  The Company has full capacity, power and authority to enter into this Agreement and to consummate the transactions contemplated hereunder.  This Agreement has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

 

(d)                                 No Consent.  Except as may be required in connection with applicable securities laws, no consent, authorization, approval, order, license, certificate or permit of or from, or declaration or filing with, any federal, state, local or other governmental authority, or any court or any other tribunal, is required by the Company for the execution, delivery or performance by the Company of this Agreement other than the approval of the Exchange Control Division of the Bermuda Monetary Authority.

 

(e)                                  No Conflict.  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and the performance of the Company’s obligations hereunder will not conflict with, or result in any violation of or default under any provision of any governing instrument applicable to the Company, or any agreement or other instrument to which the Company is a party or by which the Company or any of the properties of Investor are bound, or any law, permit, franchise, judgment, decree, statute, rule or regulation applicable to the Company or its business or properties.

 

5.                                      Miscellaneous.

 

(a)                                 Entire Agreement.  This Agreement, together with the Shareholders’ Agreement, collectively, constitutes the entire agreement and understanding between and among the parties as to the subject matter hereof and thereof and supersedes any and all prior discussions, agreements or other communications or understandings, whether written or oral, of any and every nature between and among them.

 

(b)                                 Amendments.  This Agreement may be amended only by the mutual written agreement of the Company and Investor.

 

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(c)                                  Notices.  Any notices, consents, waivers and/or other communications under this Agreement shall be in writing and will be deemed to have been duly given when (i) delivered by hand (with written confirmation of receipt), (ii) sent by fax (with written confirmation of receipt) or (iii) received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses or fax numbers set forth below (or to such other address, attention or fax number as a party may designate by notice to the other party given in accordance with this Section 5(c)):

 

If to Investor, to

 

Altisource Asset Management Corporation

402 Strand St.

Frederiksted, United States Virgin Islands

00840-3531

Facsimile No.:  (770) 644-7420

Attention:  (340) 692-1046

 

If to the Company, to:

 

NewSource Reinsurance Company, Ltd.

Crawford House

50 Cedar Avenue

Hamilton, Bermuda HM 11

Facsimile No.:  (441) 295-6566

Attention:  Neil Horner

 

with a copy to:

 

Kramer Levin Naftalis & Frankel LLP

1177  Avenue of the Americas

New York, New York 10036

Facsimile No:  (212) 715-8000
 Attention:  Russell Pinilis

 

(d)                                 Waiver.  No provision of this Agreement may be waived in any manner except by written agreement of the party entitled to the benefits of such provision.  In the event any provision hereof is waived, the balance of the provisions hereof shall nevertheless remain in full force and effect and shall in no way be waived, affected, impaired or otherwise invalidated.  No failure or delay on the part of any party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right.  All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available, whether by contract, at law, in equity or otherwise.

 

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(e)                                  Third Party Beneficiaries.  Nothing expressed or referred to in this Agreement will be construed to give any person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement.

 

(f)                                   Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns and Investor and its heirs, legal representatives, executors, administrators and permitted successors and assigns (as the case may be).  Investor shall not assign any of its obligations hereunder without the prior written consent of the Company.

 

(g)                                  Capitalized Terms.  All capitalized terms which are defined in the Shareholders’ Agreement shall have the same meanings in this Agreement as in the Shareholders’ Agreement, unless otherwise defined herein or unless the context otherwise requires.

 

(h)                                 Applicable Law.  This Agreement shall be governed by, construed and enforced in accordance with the laws of Bermuda, without regard to principles of conflict of laws.

 

(i)                                     Agreement in Counterparts.  This Agreement may be executed in more than one counterpart, each copy of which when so executed, then delivered or transmitted by facsimile or in pdf file by e-mail, shall be deemed to be an original, but all such counterparts shall, together, constitute one and the same instrument.

 

(j)                                    Headings.  The headings of the Sections hereof are inserted as a matter of convenience and for reference only and in no way define, limit or describe the scope of this Agreement or the meaning of any provision hereof.

 

(k)                                 Severability.  If any provision of this Agreement or the application of any such provision to any party or circumstance shall be determined by any court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement, or the application of such provision to any party or circumstance other than those to which it is so determined to be invalid or unenforceable, shall not be affected thereby, and each provision hereof shall be enforced to the fullest extent permitted by law.  If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the parties hereto agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration or area of the term or provision, or to delete specific words or phrases, and to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified.

 

(l)                                     Expenses.  Each party shall be responsible for such party’s own expenses in connection with the negotiation, execution and delivery of this Agreement and the Shareholders’ Agreement and the consummation of the transactions contemplated hereunder and thereunder.

 

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(m)                             Waiver of Jury Trial. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING WITHOUT LIMITATION, ANY COUNTERACTION OR COUNTERCLAIM, WHETHER IN CONTRACT, STATUTE, TORT (INCLUDING, WITHOUT LIMITATION, NEGLIGENCE) OR OTHERWISE.

 

(n)                                 Specific Performance. The parties acknowledge that they will be irreparably damaged if the provisions of this Agreement are not specifically enforced.  Should any controversy arise concerning a breach of any provision of this Agreement, an order or injunction may be issued restraining the breach pending the determination of such controversy (without the posting of any bond and without proving that damages would be inadequate), and the resolution of the controversy shall be enforceable in a court of equity by a decree of specific performance.  Each party shall be permitted to enforce specifically the terms and provisions hereof in any court of Bermuda or any other court having jurisdiction, this being in addition to any other remedy to which such party may be entitled at law or in equity or otherwise.

 

[SIGNATURE PAGES FOLLOW]

 

7

 

IN WITNESS WHEREOF, the Company has duly executed this Agreement as of the date first written above.

 

	
 
    	
THE   COMPANY
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
NEWSOURCE   REINSURANCE COMPANY, LTD.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen H. Gray
    
	
 
    	
 
    	
Name:
    	
Stephen   H. Gray
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Company Signature Page to Subscription Agreement - AAMC]

 

 

IN WITNESS WHEREOF, the undersigned has duly executed this Agreement as of the date first written above.

 

	
 
    	
THE INVESTOR
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ALTISOURCE   ASSET MANAGEMENT CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ashish Pandey
    
	
 
    	
 
    	
Name:
    	
Ashish   Pandey
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    

 

[Investor Signature Page to Subscription Agreement - AAMC]

 

 

Schedule A

 

Wire Instructions

 

Bank:

ABA No.:

Account Name:

Account No.:

Reference:

Attention:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]