Document:

Exhibit 10.22

 

EXECUTION
VERSION

 

 

AMENDED AND
RESTATED WAREHOUSING

CREDIT AND SECURITY AGREEMENT

 

 

AMONG

 

 

WALKER & DUNLOP, LLC

a Delaware limited liability company

 

AND

 

GREEN PARK FINANCIAL LIMITED PARTNERSHIP,

a District of Columbia limited partnership

AS BORROWERS

 

 

AND

 

 

BANK OF AMERICA, N.A.,

a national banking association

 

AND

 

TD BANK, N.A.,

a national banking association

 

AS LENDERS, TOGETHER WITH ANY OTHER LENDERS PARTY HERETO

 

 

AND

 

 

BANK OF AMERICA, N.A.,

 

AS CREDIT AGENT

 

 

DATED AS OF OCTOBER 15, 2009

 

 

 

TABLE OF CONTENTS

 

	
  1.      THE
  CREDIT

  	
  1

  
	
  1.1

  	
  The Warehousing Commitment

  	
  1

  
	
  1.2

  	
  Expiration of Warehousing Commitment

  	
  2

  
	
  1.3

  	
  Warehousing Notes

  	
  2

  
	
  1.4

  	
  Replacement of Warehousing Note

  	
  2

  
	
  1.5

  	
  Nature of Obligations

  	
  3

  
	
  1.6

  	
  Agreements Relating to GPF as a Borrower and the Existing
  Agreement

  	
  3

  
	
  2.      PROCEDURES
  FOR OBTAINING ADVANCES

  	
  1

  
	
  2.1

  	
  Warehousing Advances

  	
  1

  
	
  2.2

  	
  Funding Advances

  	
  1

  
	
  3.      INTEREST,
  PRINCIPAL AND FEES

  	
  1

  
	
  3.1

  	
  Interest

  	
  1

  
	
  3.2

  	
  Interest Limitation

  	
  1

  
	
  3.3

  	
  Principal Payments

  	
  2

  
	
  3.4

  	
  Non-Usage Fee

  	
  4

  
	
  3.5

  	
  Miscellaneous Fees and Charges

  	
  4

  
	
  3.6

  	
  Overdraft Advances

  	
  4

  
	
  3.7

  	
  Method of Making Payments

  	
  5

  
	
  3.8

  	
  Billings

  	
  5

  
	
  3.9

  	
  Late Charges

  	
  6

  
	
  3.10

  	
  Additional Provisions Relating to Interest Rate

  	
  6

  
	
  3.11

  	
  Continuing Authority of Authorized Representatives

  	
  8

  
	
  4.      COLLATERAL

  	
  1

  
	
  4.1

  	
  Grant of Security Interest

  	
  1

  
	
  4.2

  	
  Maintenance of Collateral Records

  	
  2

  
	
  4.3

  	
  Release of Security Interest in Pledged Loans and Pledged
  Securities

  	
  3

  
	
  4.4

  	
  Collection and Servicing Rights

  	
  4

  
	
  4.5

  	
  Return of Collateral at End of Warehousing Commitment

  	
  4

  
	
  4.6

  	
  Delivery of Collateral Documents

  	
  5

  
	
  4.7

  	
  Borrowers Remain Liable

  	
  5

  
	
  5.      CONDITIONS
  PRECEDENT

  	
  1

  
	
  5.1

  	
  Initial Advance

  	
  1

  
	
  5.2

  	
  Each Advance

  	
  3

  
	
  5.3

  	
  New Fannie Mae Special Program Agreements

  	
  4

  
	
  5.4

  	
  Force Majeure

  	
  4

  
	
  6.      GENERAL
  REPRESENTATIONS AND WARRANTIES

  	
  1

  
	
  6.1

  	
  Place of Business

  	
  1

  
	
  6.2

  	
  Organization; Good Standing; Subsidiaries

  	
  1

  
	
  6.3

  	
  Authorization and Enforceability

  	
  1

  
	
  6.4

  	
  Approvals

  	
  2

  
	
  6.5

  	
  Financial Condition

  	
  2

  
	
  6.6

  	
  Litigation

  	
  2

  
	
  6.7

  	
  Compliance with Laws

  	
  3

  
	
  6.8

  	
  Regulation U

  	
  3

  

 

i

 

	
  6.9

  	
  Investment Company Act

  	
  3

  
	
  6.10

  	
  Payment of Taxes

  	
  3

  
	
  6.11

  	
  Agreements

  	
  4

  
	
  6.12

  	
  Title to Properties

  	
  4

  
	
  6.13

  	
  ERISA

  	
  4

  
	
  6.14

  	
  No Retiree Benefits

  	
  4

  
	
  6.15

  	
  Assumed Names

  	
  4

  
	
  6.16

  	
  Servicing

  	
  5

  
	
  6.17

  	
  Foreign Asset Control Regulations

  	
  5

  
	
  7.      AFFIRMATIVE
  COVENANTS

  	
  1

  
	
  7.1

  	
  Payment of Obligations

  	
  1

  
	
  7.2

  	
  Financial Statements

  	
  1

  
	
  7.3

  	
  Other Borrower Reports

  	
  1

  
	
  7.4

  	
  Maintenance of Existence; Conduct of Business

  	
  2

  
	
  7.5

  	
  Compliance with Applicable Laws

  	
  3

  
	
  7.6

  	
  Inspection of Properties and Books; Operational Reviews

  	
  3

  
	
  7.7

  	
  Notice

  	
  3

  
	
  7.8

  	
  Payment of Debt, Taxes and Other Obligations

  	
  4

  
	
  7.9

  	
  Insurance

  	
  4

  
	
  7.10

  	
  Closing Instructions

  	
  4

  
	
  7.11

  	
  Subordination of Certain Indebtedness

  	
  5

  
	
  7.12

  	
  Other Loan Obligations

  	
  5

  
	
  7.13

  	
  ERISA

  	
  5

  
	
  7.14

  	
  Use of Proceeds of Warehousing Advances

  	
  5

  
	
  8.      NEGATIVE
  COVENANTS

  	
  1

  
	
  8.1

  	
  Contingent Liabilities

  	
  1

  
	
  8.2

  	
  Restrictions on Fundamental Changes

  	
  1

  
	
  8.3

  	
  Subsidiaries

  	
  1

  
	
  8.4

  	
  Deferral of Subordinated Debt

  	
  2

  
	
  8.5

  	
  Loss of Eligibility, Licenses or Approvals

  	
  2

  
	
  8.6

  	
  Accounting Changes

  	
  2

  
	
  8.7

  	
  Leverage Ratio

  	
  2

  
	
  8.8

  	
  Minimum Tangible Net Worth

  	
  2

  
	
  8.9

  	
  Minimum Liquid Assets

  	
  3

  
	
  8.10

  	
  Servicing Delinquencies

  	
  3

  
	
  8.11

  	
  Distributions to Partners

  	
  3

  
	
  8.12

  	
  Transactions with Affiliates

  	
  3

  
	
  8.13

  	
  Recourse Servicing Contracts

  	
  4

  
	
  9.      SPECIAL
  REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL

  	
  1

  
	
  9.1

  	
  Special Representations and Warranties Concerning
  Eligibility as Seller/Servicer of Mortgage Loans

  	
  1

  
	
  9.2

  	
  Special Representations and Warranties Concerning
  Warehousing Collateral

  	
  1

  
	
  9.3

  	
  Special Affirmative Covenants Concerning Warehousing
  Collateral

  	
  4

  
	
  9.4

  	
  Special Negative Covenants Concerning Warehousing
  Collateral

  	
  5

  

 

ii

 

	
  9.5

  	
  Special Representation and Warranty Concerning Fannie Mae DUS
  Program Reserve Requirements

  	
  6

  
	
  9.6

  	
  Special Representations and Warranties Concerning Special
  Fannie Mae Mortgage Loans

  	
  6

  
	
  9.7

  	
  Special Covenants Concerning Special Fannie Mae Mortgage
  Loans

  	
  6

  
	
  9.8

  	
  Special Representations and Warranties Concerning FHA Mortgage
  Loans

  	
  7

  
	
  10.      DEFAULTS;
  REMEDIES

  	
  1

  
	
  10.1

  	
  Events of Default

  	
  1

  
	
  10.2

  	
  Remedies

  	
  3

  
	
  10.3

  	
  Insufficiency of Proceeds

  	
  6

  
	
  10.4

  	
  Credit Agent Appointed Attorney-in-Fact

  	
  6

  
	
  10.5

  	
  Right of Set-Off

  	
  7

  
	
  11.      THE
  CREDIT AGENT AND THE LENDERS

  	
  1

  
	
  11.1

  	
  Appointment

  	
  1

  
	
  11.2

  	
  Duties of Credit Agent; Administration of Loan by Credit
  Agent

  	
  1

  
	
  11.3

  	
  Delegation of Duties

  	
  1

  
	
  11.4

  	
  Exculpatory Provisions

  	
  1

  
	
  11.5

  	
  Reliance by Credit Agent

  	
  2

  
	
  11.6

  	
  Notice of Default

  	
  2

  
	
  11.7

  	
  Lenders’ Credit Decisions

  	
  2

  
	
  11.8

  	
  Credit Agent’s Reimbursement and Indemnification

  	
  3

  
	
  11.9

  	
  Credit Agent in its Individual Capacity

  	
  3

  
	
  11.10

  	
  Successor Credit Agent

  	
  3

  
	
  11.11

  	
  Duties in Case of Enforcement

  	
  4

  
	
  11.12

  	
  Respecting Loans and Payments

  	
  4

  
	
  11.13

  	
  Assignment and Participation

  	
  8

  
	
  11.14

  	
  Administrative Matters

  	
  10

  
	
  12.      MISCELLANEOUS

  	
  1

  
	
  12.1

  	
  Notices

  	
  1

  
	
  12.2

  	
  Reimbursement Of Expenses; Indemnity

  	
  2

  
	
  12.3

  	
  Financial Information

  	
  3

  
	
  12.4

  	
  Terms Binding Upon Successors; Survival of Representations

  	
  3

  
	
  12.5

  	
  Pledge to Federal Reserve Banks

  	
  3

  
	
  12.6

  	
  Confidentiality

  	
  3

  
	
  12.7

  	
  Governing Law

  	
  4

  
	
  12.8

  	
  Amendments

  	
  4

  
	
  12.9

  	
  Relationship of the Parties

  	
  4

  
	
  12.10

  	
  Severability

  	
  5

  
	
  12.11

  	
  Consent to Credit References

  	
  5

  
	
  12.12

  	
  Counterparts

  	
  5

  
	
  12.13

  	
  Headings/Captions

  	
  5

  
	
  12.14

  	
  Entire Agreement

  	
  5

  
	
  12.15

  	
  Consent to Jurisdiction

  	
  6

  
	
  12.16

  	
  Waiver of Jury Trial

  	
  6

  
	
  12.17

  	
  Waiver of Punitive, Consequential, Special or Indirect
  Damages

  	
  6

  
	
  12.18

  	
  U.S. Patriot Act

  	
  7

  

 

iii

 

	
  12.19

  	
  Merger of Obligations

  	
  7

  
	
  13.      DEFINITIONS

  	
  1

  
	
  13.1

  	
  Defined Terms

  	
  1

  
	
  13.2

  	
  Other Definitional Provisions; Terms of Construction

  	
  15

  

 

iv

 

EXHIBITS

 

	
  Exhibit A

  	
  Form of
  Warehousing Advance Request

  
	
   

  	
   

  
	
  Exhibit B
  FNMA/DUS

  	
  Procedures
  and Documentation for Fannie Mae DUS Loans and Other Fannie Mae Mortgage
  Loans

  
	
   

  	
   

  
	
  Exhibit B
  FNMA/NT

  	
  Procedures
  and Documentation for Fannie Mae Negotiated Transactions Loans

  
	
   

  	
   

  
	
  Exhibit B
  FHA/GNMA

  	
  Procedures
  and Documentation for FHA Mortgage Loans and Ginnie Mae Mortgage Backed
  Securities

  
	
   

  	
   

  
	
  Exhibit B-Freddie Mac 

  	
   

  
	
  Program Plus Loans

  	
  Procedures
  and Documentation for Freddie Mac Program Plus Loans

  
	
   

  	
   

  
	
  Exhibit C

  	
  Eligible
  Loans and Other Assets

  
	
   

  	
   

  
	
  Exhibit D

  	
  Authorized
  Representatives

  
	
   

  	
   

  
	
  Exhibit E

  	
  Master
  Credit Facilities

  
	
   

  	
   

  
	
  Exhibit F

  	
  Subsidiaries

  
	
   

  	
   

  
	
  Exhibit G

  	
  Assumed
  Names

  
	
   

  	
   

  
	
  Exhibit H

  	
  Servicing
  Portfolio

  
	
   

  	
   

  
	
  Exhibit I

  	
  Form of
  Compliance Certificate

  
	
   

  	
   

  
	
  Exhibit J

  	
  Lines
  of Credit

  
	
   

  	
   

  
	
  Exhibit K

  	
  Foreign
  Qualifications and Licenses

  
	
   

  	
   

  
	
  Exhibit L

  	
  Miscellaneous
  Fees and Charges

  
	
   

  	
   

  
	
  Exhibit M

  	
  Form of
  Assignment and Acceptance

  
	
   

  	
   

  
	
  Exhibit N

  	
  Commitment
  Amounts, Commitment Percentages, Notice Information

  

 

v

 

AMENDED AND
RESTATED WAREHOUSING

CREDIT AND SECURITY AGREEMENT

 

AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY
AGREEMENT, dated as of October 15, 2009, among Walker &
Dunlop, LLC, a Delaware limited liability company (“W&D”), GREEN
PARK FINANCIAL LIMITED PARTNERSHIP, a District of Columbia limited partnership
(“GPF;” GPF and W&D being referred to herein, individually as a “Borrower”
and collectively as, the “Borrowers”), BANK OF AMERICA, N.A., a national
banking association (in its individual capacity, “Bank of America”), TD
BANK, N.A., a national banking association (“TD Bank,” together with
Bank of America, in its capacity as a lender hereunder, and any Additional
Lenders as may from time to time become parties hereto, being referred to
individually, as a “Lender,” and collectively, as the “Lenders”),
and Bank of America, as administrative agent for the Lenders (in such capacity,
the “Credit Agent”).

 

Preliminary Statement

 

Borrowers
and Bank of America are parties to a certain Warehousing Credit and Security
Agreement dated as of January 30, 2009 (the “Existing Agreement”),
pursuant to which Bank of America committed to make advances to Borrowers from
time to time subject to and on the terms and conditions set forth therein (with
such advances, and all related obligations, including, without limitation,
interest thereon and fees and expenses, being referred to herein as “Existing
Agreement Obligations”).

 

Borrowers
have requested Lenders to (a) allocate the Existing Agreement Obligations
among the Lenders, to be continued under this Agreement as Warehousing Advances
(as to the outstanding principal amount thereof; referred to herein as “Existing
Warehousing Advances”) and as Obligations of the same type hereunder as
under the Existing Agreement with respect to other Existing Agreement
Obligations, and (b) agree to amend and restate the Existing Agreement to,
among other things, (i) add TD Bank as a Lender, and (ii) provide for
additional Warehousing Advances to be made by Lenders from time to time to GPF
during the GPF Transition Period and to W&D during the term hereof.

 

Lenders
have agreed to the requests of Borrowers described in the preceding paragraph,
but only on, and subject to, the terms and conditions set forth in this
Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties to this Agreement agree that, as of
the Closing Date, the Existing Agreement is hereby amended and restated as
follows:

 

1.                                      THE CREDIT

 

1.1                               The Warehousing Commitment

 

1.1(a)                            On the terms
and subject to the conditions and limitations of this Agreement, including Exhibit C,
Lenders agree to (a) continue Existing Warehousing Advances as Warehousing
Advances under this Agreement (and hereafter to be referred to an treated 

 

1-1

 

as such), (b) make
additional Warehousing Advances to GPF from the Closing Date to the last
Business Day of the GPF Transition Period, and (c) make Warehousing
Advances to W&D from the Closing Date to the Business Day immediately
preceding the Warehousing Maturity Date, during which applicable period
Borrowers may borrow, repay and reborrow in accordance with the provisions of
this Agreement. Lenders have no obligation to make or maintain Warehousing
Advances if, after giving effect to each requested Warehousing Advance, the
aggregate outstanding principal amount of all Warehousing Advances would exceed
the Warehousing Credit Limit.  No Lender
shall be obligated to make Warehousing Advances if, after giving effect to each
requested Warehousing Advance, the aggregate outstanding principal amount of
such Lender’s Warehousing Advances would exceed such Lender’s Warehousing
Commitment Amount.  While a Default or
Event of Default exists, Lenders may refuse to make any additional Warehousing
Advances to Borrowers. All Warehousing Advances under this Agreement constitute
a single indebtedness, and all of the Collateral is security for the
Warehousing Notes and for the performance of all of the Obligations.

 

1.1(b)                           On the Closing
Date, the Credit Agent will coordinate with the Lenders, and the Lenders shall
make, appropriate allocations, adjustments, and advances among themselves in
order to properly reflect their respective Commitment Percentages of all
Existing Agreement Obligations.

 

1.2                               Expiration of Warehousing Commitment

 

The
Warehousing Commitment expires on the earlier of (“Warehousing Maturity Date”):
(a) November 30, 2009, as such date may be extended in writing by
Lenders, in their sole discretion, on which date the Warehousing Commitment
will expire of its own term and the Warehousing Advances together with all
accrued and unpaid interest and costs and expenses will become due and payable
without the necessity of Notice or action by Credit Agent or Lenders; and (b) the
date the Warehousing Commitment is terminated and the Warehousing Advances
become due and payable under Section 10.2(a) or 10.2(b).

 

1.3                               Warehousing Notes

 

Warehousing
Advances are evidenced by Borrowers’ promissory notes, payable to Lenders on
the form prescribed by Credit Agent (each a Warehousing Note”). The term
“Warehousing Note” as used in this Agreement includes all amendments,
restatements, renewals or replacements of the original Warehousing Note and all
substitutions for it. All terms and provisions of the Warehousing Note are
incorporated into this Agreement.  Bank
of America’s Warehousing Note under (and as defined in) the Existing Agreement
shall be amended and restated as a Warehousing Note under this Agreement, and
shall be considered a continuation of the extension of credit thereunder.

 

1.4                               Replacement of Warehousing Note

 

Upon
receipt of an affidavit of an officer of a Lender as to the loss, theft,
destruction or mutilation of a Warehousing Note or any other security document
which is not of public record, 

 

1-2

 

and,
in the case of any such loss, theft, destruction or mutilation, upon
cancellation of such Warehousing Note or other security document and receipt by
Borrowers of customary indemnification from Lender,  Borrowers will issue, in lieu thereof, a
replacement note or other security document in the same principal amount
thereof and otherwise of like tenor.

 

1.5                               Nature of Obligations

 

All
Warehousing Advances (including the Existing Advances from and after the date
hereof) made under this Agreement constitute a single joint and several
Indebtedness of Borrowers, and all of the Collateral granted by Borrowers is
security for the payment and performance of the Obligations of both Borrowers.
The amendment and restatement of the Existing Agreement is not intended by the
parties to constitute either a novation or a discharge or satisfaction of the
indebtedness and obligations under the Existing Loan Agreement, which
indebtedness and obligations shall remain outstanding hereunder on the terms
and conditions hereinafter provided. The aggregate amount of all Warehousing
Advances outstanding from time to time under this Agreement may hereinafter
collectively be referred to as the “Loan.”

 

1.6                               Agreements Relating to GPF as a Borrower and the Existing Agreement

 

GPF
shall only be a “Borrower” hereunder for as long as, and only to the minimum
extent that, it requires Existing Warehousing Advances to be maintained and new
Warehousing Advances to be made, in order to perform its obligations under the
Transition Services Agreement, as in effect as of the date hereof or as
hereafter amended (or performance thereof waived) with Credit Agent’s consent
(and with Required Lenders consent if such proposed amendment or waiver would
materially affect the interests of Lenders under this Agreement).  GPF and W&D agree to keep Credit Agent
regularly, and at Credit Agent’s request from time to time, informed of the
status of the ongoing provision of Transition Services, and promptly upon the
end of the GPF Transition Period.  At any
time following Notice from Borrowers to the Credit Agent of the end of the GPF
Transition Period and repayment in full of Existing Warehouse Advances and all
other Warehousing Advances made to GPF, and provided no Default or Event of
Default has occurred and is continuing, upon the written request of GPF and
W&D, GPF shall be removed as a “Borrower” hereunder and the Credit Agent
shall provide such evidence of such removal as GPF shall reasonably request.

 

End of Article 1

 

1-3

 

2.                                      PROCEDURES FOR OBTAINING ADVANCES

 

2.1                               Warehousing Advances

 

Either
Borrower may obtain a Warehousing Advance under this Agreement, by delivering
to Credit Agent a completed and signed request for a Warehousing Advance on
Credit Agent’s then current form (“Warehousing Advance Request”), not
later than 3:00 p.m. on the Business Day before the Business Day on which
such Borrower desires the Warehousing Advance. Warehousing Advance Requests
received by Credit Agent after 3:00 p.m. on a Business Day will be deemed
received on the following Business Day, provided, however, on a case-by-case
basis at the request of a Borrower, the Credit Agent may, in its sole
discretion (and without thereby establishing any course of dealing), extend
such 3:00 p.m. cut-off time to a later time on the subject Business
Day.  Subject to the delivery of a
Warehousing Advance Request and the satisfaction of the conditions set forth in
Sections 5.1 and 5.2, Borrowers may obtain a Warehousing Advance under this
Agreement upon compliance with the procedures set forth in this Section and
in the applicable Exhibit B, including delivery to Credit Agent of
all Collateral Documents required to be delivered on the applicable dates
specified in this Agreement for such delivery. Credit Agent’s current form of
Warehousing Advance Request is set forth in Exhibit A. Upon not
less than five (5) Business Days’ prior Notice to Borrowers, Credit Agent
may modify its form of Warehousing Advance Request and any other Exhibit or
document referred to in this Section to conform to current legal
requirements or Lender practices and, as so modified, those Exhibits and
documents will become part of this Agreement.

 

2.2                               Funding Advances

 

Credit
Agent shall notify each Lender no later than 12:00 noon on the date of the
requested Warehousing Advance of Credit Agent’s receipt of a Warehousing
Advance Request and of such Lender’s Commitment Percentage of such Warehousing
Advance. To make a Warehousing Advance, each Lender shall wire transfer to a
specified account of Credit Agent prior to 1:00 p.m. on the date of such
Warehousing Advance, and Credit Agent shall make such Warehousing Advance
available to the requesting Borrower only upon receipt of each Lenders’
Commitment Percentage thereof.  Neither
Credit Agent nor any Lender shall have any obligation to fund a non-funding
Lender’s Commitment Percentage of any Warehousing Advance.

 

End of Article 2

 

2-1

 

3.                                      INTEREST, PRINCIPAL AND FEES

 

3.1                               Interest

 

3.1(a)                            Except as
otherwise provided in this Section, Borrowers must pay interest on the unpaid
amount of each Warehousing Advance from the date the Warehousing Advance is
made until it is paid in full at the Applicable Rate as in effect from time to
time.

 

3.1(b)                           Credit Agent
computes interest on the basis of the actual number of days in each month and a
year of 360 days. Borrowers must pay interest monthly in arrears, not later
than 9 days after the date of Credit Agent’s invoice or, if applicable, 2 days
after the date of Credit Agent’s account analysis statement, commencing with
the first month following the Closing Date and on the Warehousing Maturity
Date.

 

3.1(c)                            If, for any
reason, (i) a Borrower repays a Warehousing Advance on the same day that
it was made, or (ii) a Borrower instructs Credit Agent not to make a
previously requested Warehousing Advance after Credit Agent and Lenders have
reserved funds or made other arrangements necessary to enable Credit Agent and
Lenders to fund that Warehousing Advance, Borrowers agree to pay to Credit
Agent, without limiting the provisions of Section 3.10, (x) for the
account of Credit Agent, an administrative fee equal to 1 day of interest on
that Warehousing Advance at the rate of 1.50% per annum, and (y) for the
ratable account of all Lenders (based on Commitment Percentages) who funded the
subject Warehousing Advance, interest thereon at the Applicable Rate
notwithstanding repayment prior to the cut-off time specified in Section 3.7(a) (unless
the reason for such repayment is due to the failure of the underlying
transaction to close). Borrower must pay all such administrative fees and
interest within 9 days after the date of Credit Agent’s invoice or, if
applicable, within 2 days after the date of Credit Agent’s account analysis
statement.

 

3.1(d)                           After an Event
of Default occurs and upon Notice to Borrowers by Credit Agent, the unpaid
amount of each Warehousing Advance will bear interest at the Default Rate until
paid in full.

 

3.1(e)                            Credit Agent
will adjust the rates of interest provided for in this Agreement as of the
effective date of each change in the applicable Reference Rate. Credit Agent’s
determination of such rates of interest as of any date of determination is
conclusive and binding, absent manifest error.

 

3.2                               Interest Limitation

 

If,
at any time, the rate of interest, together with all amounts which constitute
or are deemed under any applicable law to constitute interest and which are
reserved, charged or taken by a Lender or Credit Agent as compensation for
fees, services or expenses incidental to the making, negotiating or collecting
of Warehousing Advances, shall be deemed by any competent court of law,
governmental agency or tribunal to exceed the maximum rate of interest
permitted to be charged by a Lender or Credit Agent to Borrowers under
applicable law, then, during such time as such rate of interest would be deemed
excessive, that portion of each sum paid attributable to that portion of such
interest rate that exceeds the maximum rate of interest so permitted shall be 

 

3-1

 

deemed
a voluntary prepayment of principal (or, if no Obligations are then
outstanding, shall be repaid to the Borrower). As used herein, the term “applicable
law” shall mean the law in effect as of the date hereof; provided, however,
that in the event there is a change in the law which results in a higher
permissible rate of interest, then this Agreement shall be governed by such new
law as of its effective date.

 

3.3                               Principal Payments

 

3.3(a)                            Borrowers must
pay Credit Agent the outstanding principal amount of all Warehousing Advances
together with all accrued and unpaid interest thereon, and any unpaid costs and
expenses, on the Warehousing Maturity Date.

 

3.3(b)                           Except as
otherwise provided in Section 3.1, Borrowers may prepay any portion of the
Warehousing Advances without premium or penalty at any time.

 

3.3(c)                            Upon telephonic
or written Notice to Borrowers by Credit Agent, Borrowers must pay to Credit
Agent, and Borrowers authorize Credit Agent to charge their respective
Operating Accounts for, the amount of any outstanding Warehousing Advance
against a specific Pledged Asset upon the earliest occurrence of any of the
following events:

 

(1)                                  For any Pledged
Loan, the Warehouse Period elapses.

 

(2)                                  For any Pledged
Loan, the Shipped Period elapses.

 

(3)                                  On the date a
Warehousing Advance was made if the Pledged Loan to be funded by that
Warehousing Advance has not closed and funded.

 

(4)                                  One (1) Business
Day elapses from the date a Warehousing Advance was made against a Pledged
Loan, without receipt of the Collateral Documents relating to that Pledged Loan
required to be delivered on that date, or such Collateral Documents, upon examination
by Credit Agent, are found not to be in compliance with the requirements of
this Agreement or the related Purchase Commitment.

 

(5)                                  Ten (10) Business
Days elapse without the return of a Collateral Document delivered by Credit
Agent to Borrower under a Trust Receipt for correction or completion.

 

(6)                                  On the date on
which a Pledged Loan is determined to have been originated based on untrue,
incomplete or inaccurate information or otherwise to be subject to fraud,
whether or not either Borrower had knowledge of the misrepresentation,
incomplete or inaccurate information or fraud.

 

(7)                                  On the date on
which a Borrower knows, has reason to know, or receives Notice from Credit
Agent, that (A) one or more of the representations and warranties set
forth in Article 9 were inaccurate or incomplete in any material respect
on any date when made or deemed made or became inaccurate or incomplete after
any such date, or (B) either Borrower has failed to perform or comply with
any covenant, term or condition applicable to it set forth in Article 9.

 

3-2

 

(8)                                  On the date on
which a Pledged Loan or a Lien prior to the Mortgage securing repayment of the
Pledged Loan has been in default for a period of 60 days or more (it being
understood that, as provided in Section 9.2(o), no Warehousing Advance
will be made against any Mortgage Loan which is in default).

 

(9)                                  On the
mandatory delivery date of the related Purchase Commitment if the specific
Pledged Loan has not been delivered under the Purchase Commitment prior to such
mandatory delivery date, or on the date the related Purchase Commitment expires
or is terminated.

 

(10)                            Three (3) Business
Days after the date a Pledged Loan is rejected for purchase by an Investor
unless another Purchase Commitment is provided within that three (3) Business
Day period.

 

(11)                            Upon the sale,
other disposition or prepayment of any Pledged Asset or, with respect to a
Pledged Loan included in an Eligible Mortgage Pool, upon the sale or other disposition
of the related Agency Security.

 

(12)                            With respect to
any Pledged Loan, any of the Collateral Documents, upon examination by Credit
Agent, are found not to be in compliance with the requirements of this
Agreement or the related Purchase Commitment.

 

(13)                            If, after
giving effect to a new Warehousing Advance against a Pledged Loan or to the
payment of existing Warehousing Advances against Pledged Loans, any of the
limitations set forth in Exhibit C have been exceeded.

 

3.3(d)                           In addition to
the payments required by Sections 3.3(a) and 3.3(b), if the principal
amount of any Pledged Loan is prepaid in whole or in part while a Warehousing
Advance is outstanding against the Pledged Loan, Borrowers must pay to Credit
Agent, without the necessity of prior demand or Notice from Lender, and
Borrowers authorize Credit Agent to charge their respective Operating Accounts
for, the amount of the prepayment, to be applied against the Warehousing
Advance.

 

3.3(e)                            The proceeds of
the sale or other disposition of Pledged Assets must be paid directly by the
Investor to the applicable Borrower’s Cash Collateral Account. The applicable
Borrower must give Notice to Credit Agent in writing or by telephone (and if by
telephone, followed promptly by written Notice) of the Pledged Assets for which
proceeds have been received. Upon receipt of such Borrower’s Notice, Credit
Agent will apply any proceeds deposited into the applicable Cash Collateral
Account to the payment of the Warehousing Advances related to the Pledged
Assets identified by such Borrower in its Notice, and those Pledged Assets will
be considered to have been redeemed from pledge to the extent the related
Warehousing Advance has been paid in full. Credit Agent is entitled to rely
upon a Borrower’s affirmation that deposits in the applicable Cash Collateral
Account represent payments from Investors for the purchase of the Pledged
Assets specified by such Borrower in its Notice. If the payment from an
Investor for the purchase of Pledged Assets is less than the outstanding
Warehousing Advances against the Pledged Assets identified by a Borrower in its
Notice, the 

 

3-3

 

Borrower must pay to Credit
Agent, and Borrowers authorize Credit Agent to charge Borrowers’ Operating Accounts
for, an amount equal to that deficiency. As long as no Default or Event of
Default exists, Credit Agent will return to the applicable Borrower any excess
payment from an Investor for Pledged Assets.

 

3.3(f)                              Credit Agent
reserves the right to revalue any Pledged Loan or Pledged Security. Borrowers
must pay to Credit Agent, without the necessity of prior demand or Notice from
Credit Agent, and Borrowers authorize Credit Agent to charge Borrowers’
Operating Accounts for, any amount required after any such revaluation to
reduce the principal amount of the Warehousing Advance outstanding against the
revalued Pledged Loan or Pledged Security to an amount equal to the Advance
Rate for the applicable type of Pledged Loan or Pledged Security multiplied by
the Fair Market Value of the Pledged Loan or Pledged Security.

 

3.4                               Non-Usage Fee

 

At
the end of each Calendar Quarter during the term of this Agreement, Credit
Agent will determine the average usage of the Warehousing Credit Limit by
calculating the arithmetic daily average of the Warehousing Advances
outstanding during such Calendar Quarter (“Used Portion”). If the Used
Portion for such Calendar Quarter is less than an amount equal to fifty percent
(50%) of the Warehousing Credit Limit, Credit Agent will then subtract the Used
Portion from the Warehousing Credit Limit, and the result will be known as the “Unused
Portion.” Borrowers must pay to Credit Agent, for the ratable account of
Lenders based on their Commitment Percentages, a fee (“Non-Usage Fee”)
in an amount of 0.125% per annum of the Unused Portion during such Calendar
Quarter.  The Non-Usage Fee is payable
quarterly, in arrears. Borrowers must pay the Non-Usage Fee within 9 days after
the date of Credit Agent’s invoice or, if applicable, within 2 days after the
date of Credit Agent’s account analysis statement. If the date set forth in
clause (a) of the definition of Warehousing Maturity Date occurs on a day
other than the last day of a Calendar Quarter, Borrowers must pay the prorated
portion of the Non-Usage Fee due from the beginning of the then current
Calendar Quarter to and including that date. Borrowers are not entitled to a
reduction in the amount of the Non-Usage Fee under any circumstance. Credit
Agent’s determination of the Non-Usage Fee is computed on the basis of the
actual number of days in each subject Calendar Quarter (or portion thereof) and
a year of 360 days, and is conclusive and binding, absent manifest error.

 

3.5                               Miscellaneous Fees and Charges

 

Borrowers
must pay or reimburse Credit Agent, as applicable, for all Miscellaneous Fees
and Charges. Borrowers must pay all Miscellaneous Fees and Charges within 9
days after the date of Credit Agent’s invoice or, if applicable, within 2 days
after the date of Lender’s account analysis statement.

 

3.6                               Overdraft Advances

 

If,
under the authorization given by a Borrower pursuant to this Agreement, Credit
Agent debits a Borrower’s Operating Account to honor an item presented against
an Operating Account and that debit or direction results in an overdraft,
Credit Agent may make an additional advance to 

 

3-4

 

fund
that overdraft (“Overdraft Advance”). Borrowers must pay (a) the
outstanding amount of any Overdraft Advance, within 1 Business Day after the
date of the Overdraft Advance, and (b) interest on the amount of the
Overdraft Advance, at a rate per annum equal to the Applicable Rate plus 2%,
within 9 days after the date of Credit Agent’s invoice or, if applicable,
within 2 days after the date of Credit Agent’s 
account analysis statement.

 

3.7                               Method of Making Payments

 

3.7(a)                            All payments of
interest, principal and fees shall be made in lawful money of the United States
in immediately available funds, without counterclaim or setoff and free and clear
of, and without any deduction or withholding for, any taxes or other payments
by wire transfer to Lender, or as otherwise provided in this Agreement.
Payments shall be credited on the Business Day on which immediately available
funds are received prior to 2:00 P.M.; payments received after 2:00 P.M.
shall be credited on the next Business Day. All payments shall be applied first
to the payment of all fees, expenses, and other amounts due to Credit Agent
and/or Lenders (excluding principal and interest), then to accrued interest,
and the balance on account of outstanding principal, provided, however, that,
after the occurrence and during the continuation of an Event of Default,
payments will be applied to the Obligations as Credit Agent determines. If the
due date is not a Business Day, payment is due on, and interest will accrue to,
the next Business Day.

 

3.7(b)                           Borrowers
authorize Credit Agent to charge Borrowers’ Operating Accounts for any interest
or fees due and payable to Credit Agent and/or Lenders on or after the 9th day
after the date of Credit Agent’s invoice or, if applicable, on or after the 2nd
day after the date of Credit Agent’s account analysis statement, without the
necessity of prior demand or Notice from Credit Agent.

 

3.7(c)                            While a Default
or Event of Default exists, Borrowers authorize Credit Agent to charge
Borrowers’ Operating Accounts for any Obligations due and payable to Credit
Agent or Lenders, without the necessity of prior demand or Notice from Credit
Agent.

 

3.7(d)                           All payments
made on account of the Obligations shall be made by the Borrowers to Credit
Agent for distribution to the Lenders, except for fees payable to Credit Agent
for its own account. No principal payments resulting from the refinancing, sale
or other disposition of Pledged Loans or Pledged Securities shall be deemed to
have been received by Credit Agent until Credit Agent has also received the
Notice required under Section 3.3(e). All amounts received by Credit Agent
on account of the Obligations for distribution to the Lenders shall be
disbursed to the Lenders by wire transfer on the date of receipt if received by
the Credit Agent by the applicable deadlines for payment thereof, or, if
received later, by 12:00 noon on the next succeeding Business Day, without any
interest payable by Credit Agent thereon.

 

3.8          Billings

 

Any
changes in the interest rate and in the outstanding amount of the Obligations
which occur between the date of any billing and the due date of any payment may
be reflected in adjustments 

 

3-5

 

in
the billing for a subsequent month. Neither the failure of Credit Agent to
submit a bill, nor any error in any such bill shall excuse Borrowers from the
obligation to make full payment of all Borrowers’ payment obligations when due.

 

3.9                               Late Charges

 

Borrowers
shall pay, upon billing therefor, a “Late Charge” equal to three percent
(3%) of the amount of any payment of principal (other than principal due at the
Warehousing Maturity Date or the date on which Credit Agent accelerates the
time for payment of the Loan after the occurrence of an Event of Default),
interest, or fees, which are not paid within ten (10) days of the due date
thereof.  Late Charges are: (a) payable
in addition to, and not in limitation of, the Default Rate; (b) intended
to compensate Credit Agent and Lenders for administrative and processing costs
incident to late payments; (c) not interest; and (d) not subject to
refund or rebate or credit against any other amount due.

 

3.10                        Additional Provisions Relating to Interest Rate

 

3.10(a)                      If Credit Agent
has determined, after the date hereof, that the adoption or the becoming
effective of, or any change in, or any change by any governmental authority,
central bank or comparable agency charged with the interpretation or
administration thereof in the interpretation or administration of, any
applicable law, rule or regulation regarding capital adequacy, or
compliance by any Lender with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority,
central bank or comparable agency, has or would have the effect of reducing the
rate of return on such Lender’s capital or assets as a consequence of its
commitments or obligations hereunder to a level below that which Lender could
have achieved but for such adoption, effectiveness, change or compliance
(taking into consideration Lender’s policies with respect to capital adequacy),
then, upon notice from Credit Agent to Borrowers and delivery by Credit Agent
of a statement setting forth the reduction in the rate of return experienced by
the affected Lender and the amount necessary to compensate such Lender under
this Section 3.10(a), Borrowers shall be obligated to pay to the affected
Lender such additional amount or amounts as will compensate such Lender for
such reduction.  Each determination by
Credit Agent of amounts owing under this Section shall, absent manifest
error, be conclusive and binding on the parties hereto.

 

3.10(b)                     If Credit Agent determines
(which determination shall be conclusive) that (i) by reason of
circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Applicable Daily Floating LIBOR Rate for any
day; or (ii) the BBA LIBOR Daily Floating Rate will not adequately and
fairly reflect the cost to Lenders of funding (including maintaining)
Warehousing Advances, then Credit Agent shall give Borrowers prompt notice
thereof, and, so long as such condition remains in effect, the Loan (and all
outstanding and future Warehousing Advances under the Loan) shall bear interest
at the Applicable Base Rate.

 

3.10(c)                      Any and all
payments by Borrowers to or for the account of Credit Agent and/or Lenders
hereunder shall be made free and clear of and without deduction for any and all

 

3-6

 

present or future taxes,
duties, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding taxes imposed on Credit
Agent’s or any Lender’s income, and franchise taxes imposed on it, by the
jurisdiction under the laws of which Credit Agent and/or any Lender is
organized or any political subdivision thereof (all such non-excluded taxes,
duties, levies, imposts, deductions, charges, withholdings, and liabilities
being hereinafter referred to as “Taxes”).  If either Borrower shall be required by law
to deduct any Taxes from or in respect of any sum payable under this Agreement
to Credit Agent and/or any Lender, (i) the sum payable shall be increased
as necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 3.10(c)) Credit
Agent and Lenders receive an amount equal to the sum they would have received
had no such deductions been made, (ii) the affected Borrower shall make
such deductions, (iii) the affected Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law, and (iv) the affected Borrower shall furnish to
Credit Agent the original or a certified copy of a receipt evidencing payment
thereof.

 

3.10(d)                     Borrowers also agree to pay
any and all present or future stamp or documentary taxes and any other excise
or property taxes or charges or similar levies which arise from any payment
made under this Agreement or from the execution or delivery of, or otherwise
with respect to, this Agreement (hereinafter referred to as “Other Taxes”).  Further, if either Borrower shall be required
to deduct or pay any Taxes or Other Taxes from or in respect of any sum payable
under this Agreement to Lender, Borrowers shall also pay to Credit Agent, at
the time interest is paid, such additional amount that Credit Agent specifies
is necessary to preserve the after-tax yield (after factoring in all taxes,
including taxes imposed on or measured by net income) that Credit Agent and
Lenders would have received if such Taxes or Other Taxes had not been imposed.

 

3.10(e)                      Borrowers agree
to indemnify Credit Agent and each Lender for (i) the full amount of Taxes
and Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed or asserted by any jurisdiction on amounts payable under this Section 3.10)
paid by any of them and any liability (including penalties, interest, and
expenses) arising therefrom or with respect thereto; (ii) any
other amounts payable under Section 3.10; and (iii) any
liability (including additions to tax, penalties, interest and expenses)
arising therefrom or with respect thereto, in each case whether or not such
Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority.  Payment
under this Section 3.10(e) shall be made within 30 days after the
date Credit Agent makes a demand therefor.

 

3.10(f)                        In the event
that either Borrower is required to pay or withhold any amount pursuant to
Sections 3.10(c), 3.10(d), or 3.10(e), which results in Borrowers paying more
than would have been the case without regard to such Sections (an “Excess
Payment”), Borrowers shall have the option to terminate the Warehousing
Commitment in its entirety (but not in part) and this Agreement (other than as
to those provisions which by their terms survive the termination of this
Agreement), by giving Notice to Credit Agent specifying the effective date of
such termination, which Notice may be given no earlier than three (3) Business
Days after making an Excess Payment and no later than thirty 

 

3-7

 

(30) days after making an
Excess Payment.  Upon the effective date
of the termination of this Agreement by Borrowers pursuant to this Section,
Borrowers shall pay all of the Obligations in full.

 

3.10(g)                     Notwithstanding anything to
the contrary contained elsewhere in this Agreement, if (x) any change in
law shall make it unlawful for any Lender to make Warehousing Advances as LIBOR
Loans, or to maintain outstanding Warehousing Advances as LIBOR Loans or to
give effect to its obligations as contemplated hereby with respect to the Loan
or any particular Warehousing Advance as a LIBOR Loan or (y) at any time
Credit Agent reasonably determines that the making or continuance of LIBOR
Loans has become impracticable as a result of a contingency occurring after the
date hereof which adversely affects the London interbank market, the Credit
Agent , may, by written notice to Borrowers (i) declare that LIBOR Loans
will not thereafter be made by any Lender hereunder, whereupon all subsequent
Warehousing Advances will be made as Base Rate Loans unless such declaration
shall be subsequently withdrawn; and/or (ii) require that any then
outstanding Warehousing Advances be converted to Base Rate Loans (and thereby
bear interest at the Applicable Base Rate), as of the effective date of such
notice.

 

3.11                        Continuing Authority of Authorized Representatives

 

Credit
Agent is authorized to rely upon the continuing authority of the Persons
hereafter designated by Borrowers (“Authorized Representatives”) to bind
Borrowers with respect to all matters pertaining to the Loan and the Loan
Documents, including, but not limited to, the submission of requests for
Warehousing Advances, and certificates with regard thereto, instructions with
regard to the Operating Accounts and, to the extent permitted under this Agreement,
the Collateral, and matters pertaining to the procedures and documentation for
Warehousing Advances. Such authorization may be changed only upon written
notice to Credit Agent accompanied by evidence, reasonably satisfactory to
Credit Agent, of the authority of the person giving such notice and such notice
shall be effective not sooner than five (5) Business Days following
receipt thereof by Credit Agent. The Authorized Representatives as of the
Closing Date are listed on Exhibit D. Credit Agent shall have a
right of approval, not to be unreasonably withheld or delayed, over the
identity of the Authorized Representatives so as to assure Credit Agent that
each Authorized Representative is a responsible and senior official of the
respective Borrowers.

 

End
of Article 3

 

3-8

 

4.                                      COLLATERAL

 

4.1                               Grant of Security Interest

 

As
security for the payment of their respective obligations under the Warehousing
Notes and for the payment and performance of all of the Obligations, each
Borrower grants a security interest to Credit Agent, as agent for the Lenders,
in all of such Borrower’s right, title and interest in and to the following
described property, whether now owned or whether acquired or arising after the date
of this Agreement (“Collateral”):

 

4.1(a)                            All amounts
advanced by Credit Agent or Lenders to or for the account of either Borrower
under this Agreement to fund a Mortgage Loan until that Mortgage Loan is closed
and those funds disbursed.

 

4.1(b)                           All Mortgage
Loans, including all Mortgage Notes, Mortgages and Security Agreements
evidencing or securing those Mortgage Loans, that are delivered or caused to be
delivered to Credit Agent (including delivery to a third party on behalf of
Credit Agent), or that otherwise come into the possession, custody or control
of Credit Agent or any Lender (including the possession, custody or control of
a third party on behalf of Credit Agent), in each case in respect of which
Credit Agent or a Lender has made a Warehousing Advance under this Agreement,
and with respect to any such Mortgage Loan that is a Special Fannie Mae
Mortgage Loan, all of the subject Borrower’s right, title and interest in and
to the subject Master Credit Facility Agreement and all Mortgage Notes and
other agreements, documents and instruments executed and delivered in
connection with, or otherwise relating to and referenced in the subject Master
Credit Facility Agreement (collectively, “Pledged Loans”).

 

4.1(c)                            All
Mortgage-backed Securities that are created in whole or in part on the basis of
Pledged Loans or that are delivered or caused to be delivered to Credit Agent
or that otherwise come into the possession, custody or control of Credit Agent
or any Lender, or its agent, bailee or custodian as assignee, or that are
pledged to Credit Agent or, for such purpose are registered by book-entry in
the name of Credit Agent (including registration in the name of a third party
on behalf of Credit Agent), in each case in respect of which a Warehousing Advance
has been made by Credit Agent or a Lender under this Agreement (collectively, “Pledged
Securities”).

 

4.1(d)                           All private
mortgage insurance and all commitments issued by the FHA to insure or guarantee
any Pledged Loan; all Purchase Commitments held by either Borrower covering
Pledged Loans or Pledged Securities, and all proceeds from the sale of Pledged
Loans or Pledged Securities to Investors pursuant to those Purchase
Commitments; and all personal property, contract rights, servicing rights or
contracts and servicing fees and income or other proceeds, amounts and payments
payable to either Borrower as compensation or reimbursement, accounts,
payments, intangibles and general intangibles of every kind relating to Pledged
Loans, Pledged Securities, Purchase Commitments, FHA commitments and private
mortgage insurance and commitments relating to Pledged Loans and Pledged
Securities, and all other documents or instruments relating to Pledged Loans
and Pledged Securities, including any interest 

 

4-1

 

of either Borrower in any
fire, casualty or hazard insurance policies and any awards made by any public
body or decreed by any court of competent jurisdiction for a taking or for
degradation of value in any eminent domain proceeding as the same relate to
Pledged Loans.

 

4.1(e)                            All escrow
accounts, documents, instruments, files, surveys, certificates, correspondence,
appraisals, computer programs, tapes, discs, cards, accounting records
(including all information, records, tapes, data, programs, discs and cards)
necessary or helpful in the administration or servicing of the Collateral) and
other information and data of either Borrower relating to the Collateral.

 

4.1(f)                              The Operating
Accounts, the Cash Collateral Accounts, and all cash, whether now existing or
acquired after the date of this Agreement, delivered to or otherwise in the
possession of Credit Agent, any Lender, or Credit Agent’s or any Lender’s
agent, bailee or custodian or designated on the books and records of either
Borrower as assigned and pledged to Credit Agent and/or Lenders, including all
cash deposited in the Cash Collateral Account.

 

4.1(g)                           All Hedging
Arrangements related to the Collateral (“Pledged Hedging Arrangements”)
and each Borrower’s accounts in which those Hedging Arrangements are held (“Pledged
Hedging Accounts”), including all rights to payment arising under the
Pledged Hedging Arrangements and the Pledged Hedging Accounts, except that
Lender’s security interest in the Pledged Hedging Arrangements and Pledged
Hedging Accounts applies only to benefits, including rights to payment, related
to the Collateral.

 

4.1(h)                           All cash and
non-cash proceeds of the Collateral, including all dividends, distributions and
other rights in connection with, and all additions to, modifications of and
replacements for, the Collateral, and all products and proceeds of the
Collateral, together with whatever is receivable or received when the
Collateral or proceeds of Collateral are sold, collected, exchanged or
otherwise disposed of, whether such disposition is voluntary or involuntary,
including all rights to payment with respect to any cause of action affecting
or relating to the Collateral or proceeds of Collateral.

 

4.2                               Maintenance of Collateral Records

 

As
long as the Warehousing Commitment is outstanding or there remain any
Obligations to be paid or performed under this Agreement or under any other
Loan Document, Borrowers must preserve and maintain, at their respective chief
executive office and principal place of business or in a regional office
approved by Credit Agent, or in the office of a computer service bureau engaged
by the applicable Borrower and approved by Credit Agent and, upon request, make
available to Credit Agent the originals, or copies in any case where the
originals have been delivered to Credit Agent or to an Investor, of the
Mortgage Notes, Mortgages and Security Agreements included in Pledged Loans,
Mortgage-backed Securities delivered to Lender as Pledged Securities, Purchase
Commitments, and all related Mortgage Loan documents and instruments, and all
files, surveys, certificates, correspondence, appraisals, computer programs,
tapes, discs, cards, accounting records and other information and data relating
to the Collateral.

 

4-2

 

4.3                               Release of Security Interest in Pledged Loans and Pledged Securities

 

4.3(a)                            Except as
provided in Section 4.3(b), Credit Agent will release its security interest in
the Pledged Loans and all of the Collateral related to the Pledged Loans, as
such Collateral is described in Sections 4.1(d) and 4.1(e), only against
payment to Credit Agent of the Release Amount in connection with those Pledged
Loans. If Pledged Loans are transferred to a pool custodian or an Investor for
inclusion in a Mortgage Pool and Credit Agent’s security interest in the
Pledged Loans and all of the Collateral related to the Pledged Loans, as such
Collateral is described in Sections 4.1(d) and 4.1(e) included in the Mortgage
Pool is not released before the issuance of the related Mortgage-backed
Security, then that Mortgage-backed Security, when issued, is a Pledged
Security, Lender’s security interest continues in the Pledged Loans and all of
the Collateral related to the Pledged Loans, as such Collateral is described in
Sections 4.1(d) and 4.1(e), backing that Pledged Security and Credit Agent is
entitled to possession of the Pledged Security in the manner provided in this
Agreement.

 

4.3(b)                           If Pledged
Loans are transferred to an Approved Custodian and included in an Eligible
Mortgage Pool, Credit Agent’s security interest in the Pledged Loans and all of
the Collateral related to the Pledged Loans, as such Collateral is described in
Sections 4.1(d) and 4.1(e), included in the Eligible Mortgage Pool will be
released upon the delivery of the Agency Security to Credit Agent (including
delivery to or registration in the name of a third party on behalf of Lender)
and that Agency Security is a Pledged Security. Credit Agent’s security
interest in that Pledged Security will be released only against payment to
Credit Agent of the Release Amount in connection with the Mortgage Loans
backing that Pledged Security.

 

4.3(c)                            Credit Agent
has the exclusive right to possession of all Pledged Securities or, if Pledged
Securities are issued in book-entry form or issued in certificated form and
delivered to a clearing corporation (as that term is defined in the Uniform
Commercial Code of Massachusetts) or its nominee, Credit Agent has the right to
have the Pledged Securities registered in the name of a securities intermediary
(as that term is defined in the Uniform Commercial Code of Massachusetts) in an
account containing only customer securities and credited to an account of
Credit Agent. Credit Agent has no duty or obligation to deliver Pledged Securities
to an Investor or to credit Pledged Securities to the account of an Investor or
an Investor’s designee except against payment for those Pledged Securities.
Borrowers acknowledge that Credit Agent may enter into one or more standing
arrangements with securities intermediaries with respect to Pledged Securities
issued in book entry form or issued in certificated form and delivered to a
clearing corporation or its designee, under which the Pledged Securities are
registered in the name of the securities intermediary, and Borrowers agree,
upon request of Credit Agent, to execute and deliver to those securities
intermediaries their respective written concurrence in any such standing
arrangements.

 

4.3(d)                           If no Default
or Event of Default occurs, Borrowers may redeem a Pledged Loan and all of the
Collateral related to the Pledged Loans, as such Collateral is described in
Sections 4.1(d) and 4.1(e), or Pledged Security from Credit Agent’s security
interest by notifying Credit Agent of its intention to redeem the Pledged Loan
or Pledged Security from pledge and paying, or causing an Investor to pay, to
Credit Agent, for application 

 

4-3

 

as a prepayment on the
principal balance of the Warehousing Note, the Release Amount in connection
with the Pledged Loan or the Pledged Loans backing that Pledged Security.

 

4.3(e)                            After a Default
or Event of Default occurs, Credit Agent may, with no liability to either
Borrower or any other Person, continue to release its security interest in any
Pledged Loan and all of the Collateral related to the Pledged Loans, as such
Collateral is described in Sections 4.1(d) and 4.1(e), or Pledged Security
against payment of the Release Amount for that Pledged Loan or for the Pledged
Loans backing that Pledged Security.

 

4.3(f)                              The amount to
be paid by Borrowers to obtain the release of Credit Agent’s security interest
in a Pledged Loan and all of the Collateral related to the Pledged Loans, as
such Collateral is described in Sections 4.1(d) and 4.1(e) (“Release Amount”)
will be (1) in connection with the sale of a Pledged Loan by Credit Agent while
an Event of Default exists, the amount paid to Credit Agent in a commercially
reasonable disposition of that Pledged Loan and (2) otherwise, until an Event
of Default occurs, the principal amount of the Warehousing Advance outstanding
against the Pledged Loan.

 

4.4                               Collection and Servicing Rights

 

4.4(a)                            If no Event of
Default exists, Borrowers may service and receive and collect directly all sums
payable to Borrowers in respect of the Collateral other than proceeds of any
Purchase Commitment or proceeds of the sale of any Collateral. All proceeds of
any Purchase Commitment or any other sale of Collateral must be paid directly
to the Cash Collateral Account for application as provided in this Agreement.

 

4.4(b)                           After an Event
of Default, Credit Agent or its designee is entitled to service and receive and
collect all sums payable to either Borrower in respect of the Collateral, and
in such case, subject to any applicable requirements of Fannie Mae (1) Credit
Agent or its designee in its discretion may, in its own name, in the name of
Borrower or otherwise, demand, sue for, collect or receive any money or
property at any time payable or receivable on account of or in exchange for any
of the Collateral, but Credit Agent has no obligation to do so, (2) Borrower
must, if Credit Agent requests it to do so, hold in trust for the benefit of
Credit Agent and immediately pay to Credit Agent at its office designated by
Notice, all amounts received by Borrower upon or in respect of any of the
Collateral, advising Credit Agent as to the source of those funds, and (3) all
amounts so received and collected by Credit Agent will be held by it as part of
the Collateral and applied by Credit Agent as provided in this Agreement.  Notwithstanding the foregoing, no such rights
may be exercised while any obligations are outstanding under the GPFA Term
Loan, and such rights in any event shall be junior and subordinate to the GPFA Term
Loan.

 

4.5                               Return of Collateral at End of Warehousing Commitment

 

If
(a) the Warehousing Commitment has expired or has been terminated, and (b) no
Warehousing Advances, interest or other Obligations are outstanding and unpaid,
Credit Agent will release its security interest and will deliver all Collateral
in its possession to the applicable Borrower at 

 

4-4

 

such
Borrower’s expense. A Borrower’s acknowledgement or receipt for any Collateral
released or delivered to such Borrower under any provision of this Agreement is
a complete and full acquittance for the Collateral so returned, and Credit
Agent and Lenders are discharged from any liability or responsibility for that
Collateral.

 

4.6                               Delivery of Collateral Documents

 

4.6(a)                            Credit Agent
may deliver documents relating to the Collateral to a Borrower for correction
or completion under a Trust Receipt.

 

4.6(b)                           If no Default
or Event of Default exists, upon delivery by a Borrower to Credit Agent of
shipping instructions pursuant to the applicable Exhibit B, Credit Agent
will deliver the Mortgage Notes evidencing Pledged Loans or Pledged Securities
together with all related loan documents and pool documents previously received
by Credit Agent under the requirements of the applicable Exhibit B to
the designated Investor or Approved Custodian or to another party designated by
such Borrower and acceptable to Credit Agent in its sole discretion.

 

4.6(c)                            If a Default or
Event of Default exists, Credit Agent may, without liability to either Borrower
or any other Person, continue to deliver Pledged Loans or Pledged Securities,
together with all related loan documents and pool documents in Credit Agent’s
possession, to the applicable Investor or Approved Custodian or to another
party acceptable to Credit Agent in its sole discretion.

 

4.7                               Borrowers Remain Liable

 

Anything
herein to the contrary notwithstanding, each Borrower shall remain liable under
each item of the Collateral granted by it to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all
in accordance with the terms thereof and any other agreement giving rise
thereto, and in accordance with and pursuant to the terms and provisions
thereof. Whether or not the Credit Agent has exercised any rights in any of the
Collateral, neither the Credit Agent nor any Lender shall have any obligation
or liability (other than for gross negligence or willful misconduct) under any
of the Collateral (or any agreement giving rise thereto) by reason of or
arising out of this Agreement or the receipt by the Credit Agent of any payment
relating thereto, nor shall the Credit Agent nor any Lender be obligated in any
manner to perform any of the obligations of a Borrower under or pursuant to any
of the Collateral (or any agreement giving rise thereto) to make any payment,
to make any inquiry as to the nature or the sufficiency of any payment received
by it or as to the sufficiency of any performance by any party under any of the
Collateral (or any agreement giving rise thereto), to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

 

End of Article 4

 

4-5

 

5.                                      CONDITIONS PRECEDENT

 

5.1                               Initial Advance

 

The
effectiveness of this Agreement is subject to the satisfaction, in the sole
discretion of Credit Agent, of the following conditions precedent:

 

5.1(a)                            Credit Agent
must receive the following, all of which must be satisfactory in form and
content to Credit Agent, in its sole discretion:

 

(1)                                  The Fee
Letters, the Warehousing Notes respectively payable to each Lender, and this
Agreement, duly executed by the Borrowers.

 

(2)                                  Each Borrower’s
organizational documents, certified as true and complete by an appropriate
officer or other Person.

 

(3)                                  Certificates of
legal existence and good standing from the District of Columbia for GPF and the
Secretary of State of Delaware for W&D, dated within thirty (30) days of
the date of this Agreement.

 

(4)                                  Such
certificates of resolutions or other action, incumbency certificates and/or
other certificates of responsible officers of each Borrower as Credit Agent may
require evidencing (A) the authority of each Borrower to enter into this
Agreement and the other Loan Documents to which such Borrower is a party and
(B) the identity, authority and capacity of each Authorized Representative
thereof authorized to act as an Authorized Representative in connection with
this Agreement and the other Loan Documents to which such Borrower is a party.

 

(5)                                  Assumed Name
Certificates dated within 30 days of the date of this Agreement for any assumed
name used by Borrower in the conduct of its business.

 

(6)                                  Uniform
Commercial Code, tax lien and judgment searches of the appropriate public
records for each Borrower that do not disclose the existence of any Lien on the
Collateral other than in favor of Credit Agent.

 

(7)                                  Copies of each
Borrower’s errors and omissions insurance policy or mortgage impairment
insurance policy, and blanket bond coverage policy, or certificates in lieu of
policies, showing compliance by such Borrower as of the date of this Agreement
with the related provisions of Section 7.9.

 

(8)                                  Receipt by
Credit Agent and Lenders of any fees due on the date of this Agreement pursuant
to the Fee Letters.

 

(9)                                  An opinion from
counsel for each Borrower in form and substance satisfactory to Credit Agent
concerning, among other matters (i) the legal existence, good standing and
qualification to business of each Borrower, (ii) the power and 

 

5-1

 

authority of each Borrower
to enter into and perform the Loan Documents to which it is a party, (iv) the
authorization of the individuals executing and delivering Loan Documents on
behalf of each Borrower to do so, (v) the enforceability of each Borrower’s
obligations under the Loan Documents, (vi) the absence of any pending or
threatened material litigation against either Borrower, (vii) the validity and
perfection of Credit Agent’s Lender’s security interest in the Collateral,
(viii) the non-contravention of Borrowers’ obligations under the Loan Documents
under the Borrowers’ charter documents or under any agreements or legal
proceedings to which either of them is a party or by which either of them is
bound, and (ix) such other matters as Credit Agent reasonably shall request
consistent with loan facilities similar to the loan facility established by
this Agreement.

 

(10)                            Copies of such
documentation concerning Borrower’s status as a DUS lender as Credit Agent
shall request, including any amendments to the W&D Fannie Mae DUS
Agreements entered into subject to the Existing Agreement.

 

(11)                            Copies of such
documentation concerning W&D’s status as a Freddie Mac Program Plus seller
and servicer, if applicable, as Credit Agent shall request, including all
amendments to any such documents entered into subsequent to the Existing
Agreement.

 

(12)                            Such financial
statements and other information as Credit Agent shall have reasonably
requested.

 

(13)                            Such other
documents as Credit Agent reasonably may require, duly executed and delivered,
and evidence satisfactory to Credit Agent of the occurrence of any further
conditions precedent to the closing of the credit facility established hereby.

 

5.1(b)                           If, as of the
date of this Agreement, either Borrower has any indebtedness for borrowed money
to any of its partners or Affiliates or any director, officer, member, or
shareholder of any partner or any Affiliate of any partner, the Person to whom
such Borrower is indebted must have executed a subordination of debt agreement,
on the form prescribed by Credit Agent (each, a “Subordination of Debt
Agreement”); and Credit Agent must have received an executed copy of that
Subordination of Debt Agreement, certified an Authorized Representative to be
true and complete and in full force and effect as of the date of the Closing
Date.

 

5.1(c)                            Credit Agent
shall have filed such Uniform Commercial Code financing statements, in such
jurisdictions, as Credit Agent shall have determined to be appropriate in order
to perfect the security interest in the Collateral granted by Borrower pursuant
to this Agreement or any other Loan Document.

 

5.1(d)                           No Defaults or
Events of Default shall have occurred and be continuing under the Existing
Agreement (as such terms are defined therein), and the representations and
warranties of the Borrowers thereunder shall be true, correct and complete (except
as to 

 

5-2

 

matters which speak to a
specific date, or changes specifically contemplated and permitted by the
Existing Agreement).

 

5.1(e)                            Borrowers shall
have (i) paid to the Credit Agent and Lenders, as applicable, all amounts due
as of the Closing Date pursuant to any Fee Letters, and (ii) paid or reimbursed
the Credit Agent and the Lenders for all their respective attorneys’ fees and
expenses incurred in connection with this Agreement and the other Loan
Documents.

 

5.2                               Each Advance

 

The
effectiveness of this Agreement, including each Lender’s obligation to make
Warehousing Advances is subject to the satisfaction, in the sole discretion of
Credit Agent, as of the date of each Warehousing Advance, of the following
additional conditions precedent:

 

5.2(a)                            A Borrower must
have delivered to Credit Agent the Warehousing Advance Request and the
Collateral Documents required by, and must have satisfied the procedures and
substantive requirements set forth in, Article 2 and the Exhibits described in
that Article. All items delivered to Credit Agent must be satisfactory to
Credit Agent in form and content, and Credit Agent may reject any item that
does not satisfy the requirements of this Agreement or the applicable Purchase
Commitment.

 

5.2(b)                           Credit Agent
must have received evidence satisfactory to it as to the making or continuation
of any book entry or the due filing and recording in all appropriate offices of
all financing statements and other instruments necessary to perfect the
security interest of Credit Agent in the Collateral under the Uniform
Commercial Code or other applicable law.

 

5.2(c)                            The
representations and warranties of Borrowers contained in Article 6 and Article
9 must be accurate and complete in all material respects as if made on and as
of the date of each Warehousing Advance.

 

5.2(d)                           Borrowers must
have performed all agreements to be performed by them under this Agreement, and
after giving effect to the requested Warehousing Advance, no Default or Event
of Default will exist under this Agreement.

 

5.2(e)                            Except with
respect to GPF as contemplated by the Transaction Documents, there shall not
have been any material adverse change in the financial condition, business, or
affairs of either Borrower since the date of this Agreement which in Credit
Agent’s good faith judgment may jeopardize in a material manner the ability of
either Borrower to perform fully its obligations under each applicable Loan
Document.

 

5.2(f)                              Credit Agent
shall have received and approved such other documents, and certificates as
Credit Agent reasonably may request, in form and substance reasonably
satisfactory to Credit Agent.

 

5.2(g)                           Prior to any
Warehousing Advance being made against any otherwise Eligible Loan, W&D
shall have provided to Credit Agent copies of all documents, agreements and
other materials and information concerning W&D’s status as an originator
and seller of 

 

5-3

 

such type of Mortgage Loan
for the applicable Federal Agency as Credit Agent may require.

 

Delivery
of a Warehousing Advance Request by a Borrower will be deemed a representation
by the Borrowers that all conditions set forth in this Section have been
satisfied as of the date of the Warehousing Advance.

 

5.3                               New Fannie Mae Special Program Agreements

 

With
the prior written consent of Credit Agent and Required Lenders, Borrowers may
amend Exhibit E to add a new Master Credit Facility Agreement. An
amendment to Exhibit E is not effective, and Lenders have no obligation
to make Warehousing Advances against Special Fannie Mae Mortgage Loans under
any new Master Credit Facility Agreement, until Borrowers have satisfied the
following conditions precedent (in addition to satisfy all other applicable
requirements of this Agreement):

 

5.3(a)                            The
representations and warranties of Borrowers contained in Article 6 must be
accurate and complete in all material respects as if made on and as of the date
of, and after giving effect to, the amendment to Exhibit E.

 

5.3(b)                           If requested by
Credit Agent, Credit Agent must receive from counsel for Borrowers an updated
opinion, in form and substance satisfactory to Credit Agent, addressed to
Credit Agent and Lenders and dated the date of the amendment to Exhibit E,
covering such matters relating to the Master Credit Facility Agreement and
related documents as Lender may reasonably request.

 

5.4                               Force Majeure

 

Notwithstanding
Borrowers’ satisfaction of the conditions set forth in this Agreement, Lenders
have no obligation to make a Warehousing Advance if Credit Agent or any Lender
is prevented from obtaining the funds necessary to make a Warehousing Advance,
or is otherwise prevented from making a Warehousing Advance as a result of any
fire, flood or other casualty, failure of power, strike, lockout or other labor
trouble, banking moratorium, embargo, sabotage, confiscation, condemnation,
riot, civil disturbance, insurrection, act of terrorism, war or other activity
of armed forces, act of God or other similar reason beyond the control of
Credit Agent or any Lender. Lenders will make the requested Warehousing Advance
as soon as reasonably possible following the occurrence of such an event
(provided that all applicable terms and conditions relating to such Warehousing
Advance continue to be satisfied).

 

End of Article 5

 

5-4

 

6.                                      GENERAL REPRESENTATIONS AND WARRANTIES

 

Borrowers
represent and warrant to Credit Agent and Lenders, as of the date of this
Agreement and as of the date of each Warehousing Advance Request and the making
of each Warehousing Advance, that:

 

6.1                               Place of Business

 

Each
Borrower’s chief executive office and principal place of business is 7501
Wisconsin Avenue, Suite 1200, Bethesda, MD, 20814-6531.

 

6.2                               Organization; Good Standing; Subsidiaries

 

GPF
is a limited partnership duly organized, validly existing and in good standing
under the laws of the District of Columbia, W&D is a limited liability
company duly organized, validly existing and in good standing under the laws of
the State of Delaware, and each has the full legal power and authority to own
its property and to carry on its business as currently conducted. Borrowers are
duly qualified respectively as a foreign limited partnership and foreign
limited liability company to do business and are in good standing in each
jurisdiction in which the transaction of its business makes qualification
necessary, except in jurisdictions, if any, where a failure to be in good
standing has no material adverse effect on such Borrower’s business,
operations, assets or financial condition as a whole. For the purposes of this
Agreement, good standing includes qualification for all licenses and payment of
all taxes required in the jurisdiction of its formation and in each jurisdiction
in which the applicable Borrower transacts business. Exhibit K hereto
sets forth all foreign qualifications and mortgage lender and mortgage servicer
licenses held by each Borrower.  Neither
Borrower has any Subsidiaries except as set forth on Exhibit F, which
sets forth with respect to each Subsidiary, its name, address, jurisdiction of
organization, each state in which it is qualified to do business and the
percentage ownership of its Equity Interests by the applicable Borrower. Each
of such Subsidiaries is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, and has the full legal
power and authority to own its property and to carry on its business as
currently conducted.

 

6.3                               Authorization and Enforceability

 

Each
Borrower has the power and authority to execute, deliver and perform this
Agreement, the Warehousing Notes and the other Loan Documents to which such
Borrower is a party and to make the borrowings under this Agreement. The
execution, delivery and performance by each Borrower of this Agreement, the
Warehousing Notes and the other Loan Documents to which such Borrower is party
and the making of the borrowings under this Agreement, and the Warehousing
Notes, have been duly and validly authorized by all necessary limited
partnership or limited liability company action, as applicable, on the part of
such Borrower (none of which actions has been modified or rescinded, and all of
which actions are in full force and effect) and do not and will not conflict
with or violate any provision of law, of any judgments binding upon such
Borrower, or of the certificate of limited partnership or partnership agreement
of GPF or the certificate of formation or operating agreement of W&D,
conflict with or result in a breach of, constitute a default or require any
consent under, or result in or require the acceleration of any 

 

6-1

 

indebtedness
of either Borrower under any agreement, instrument or indenture to which such
Borrower is a party or by which either Borrower or its property may be bound or
affected, or result in the creation of any Lien upon any property or assets of
either Borrower (other than the Lien on the Collateral granted under this
Agreement). This Agreement, the Warehousing Notes and the other Loan Documents
to which either Borrower is a party constitute the legal, valid and binding
obligations of such Borrower, enforceable in accordance with their respective
terms, except that enforceability may be limited by bankruptcy, insolvency or
other such laws affecting the enforcement of creditors’ rights and general
principles of equity.

 

6.4                               Approvals

 

The
execution and delivery of this Agreement, the Warehousing Notes and the other
Loan Documents and the performance of Borrowers’ obligations under this
Agreement, the Warehousing Note and the other Loan Documents and the validity
and enforceability of this Agreement, the Warehousing Notes and the other Loan
Documents do not require any license, consent, approval or other action of any
agency, commission, instrumentality or other regulatory body or authority (in
each case, whether federal, state or local, domestic or foreign) other than
those that have been obtained and remain in full force and effect.

 

6.5                               Financial Condition

 

The
balance sheet of GPF (and, if applicable, GPF’s Subsidiaries) as of each
Statement Date, and the related statements of income, cash flows and changes in
partners’ equity for the fiscal period ended on each Statement Date, furnished
to Credit Agent and Lenders, fairly present the financial condition of GPF
(and, if applicable, GPF’s Subsidiaries) as at that Statement Date and the
results of its operations for the fiscal period ended on that Statement Date.
GPF had, on each Statement Date, no known material liabilities, direct or
indirect, fixed or contingent, matured or unmatured, or liabilities for taxes,
long-term leases or unusual forward or long-term commitments not disclosed by,
or reserved against in, those financial statements, and at the present time
there are no material unrealized or anticipated losses from any loans, advances
or other commitments of GPF except as previously disclosed to Credit Agent and
Lenders in writing. Those financial statements were prepared in accordance with
GAAP applied on a consistent basis throughout the periods involved. Except as
completed pursuant to the Transaction Documents, (a) since the Audited
Statement Date, there has been no material adverse change in the business,
operations, assets or financial condition of GPF (and, if applicable, GPF’s
Subsidiaries), nor (b) is GPF aware of any state of facts that (with or without
notice or lapse of time or both) would or could result in any such material
adverse change.  All schedules and
reports furnished by GPF to Credit Agent and/or any Lender, including, without
limitation, schedules of contingent liabilities and off balance sheet
transactions, were true, accurate and complete, and did not omit any
information necessary in order to make any provided information not misleading
in any material respect.

 

6.6                               Litigation

 

As
of the date hereof, there are no actions, claims, suits or proceedings pending
or, to either Borrower’s knowledge, threatened or reasonably anticipated
against or affecting either Borrower or any Subsidiary of either Borrower in
any court or before any arbitrator or before any agency, 

 

6-2

 

board,
bureau, commission, instrumentality or other administrative or regulatory body
(in each case, whether federal, state or local, domestic or foreign) that, if
adversely determined, may reasonably be expected to result in a material
adverse change in either Borrower’s business, operations, assets or financial
condition as a whole, or that would affect the validity or enforceability of
this Agreement, the Warehousing Notes or any other Loan Document.

 

6.7                               Compliance with Laws

 

Neither
Borrower nor any Subsidiary of either Borrower is in violation of any provision
of any law, or of any judgment, award, rule, regulation, order, decree, writ or
injunction of any court or public regulatory body or authority that could
result in a material adverse change in either Borrower’s business, operations,
assets or financial condition as a whole or that would affect the validity or
enforceability of this Agreement, the Warehousing Notes or any other Loan
Document.

 

6.8                               Regulation U

 

Neither
Borrower is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying Margin
Stock, and no part of the proceeds of any Warehousing Advance made under this
Agreement will be used to purchase or carry any Margin Stock or to extend
credit to others for the purpose of purchasing or carrying any Margin Stock.

 

6.9                               Investment Company Act

 

Neither
Borrower is an “investment company” or controlled by an “investment company”
within the meaning of the Investment Company Act.

 

6.10                        Payment of Taxes

 

GPF
and each of its Subsidiaries has filed or caused to be filed all federal, state
and local income, excise, property and other tax returns that are required to
be filed with respect to the operations of GPF and its Subsidiaries, all such
returns are true and correct and GPF and each of its Subsidiaries has paid or
caused to be paid all taxes shown on those returns or on any assessment, to the
extent that those taxes have become due, including all FICA payments and
withholding taxes, if appropriate. The amounts reserved as a liability for
income and other taxes payable in the financial statements described in Section
6.5 are sufficient for payment of all unpaid federal, state and local income,
excise, property and other taxes, whether or not disputed, of GPF and its
Subsidiaries accrued for or applicable to the period and on the dates of those
financial statements and all years and periods prior to those financial
statements and for which Borrower and its Subsidiaries may be liable in their
own right or as transferee of the assets of, or as successor to, any other Person.
No tax Liens have been filed and no material claims are being asserted against
GPF, any Subsidiary of GPF or any property of GPF or any Subsidiary of GPF with
respect to any taxes, fees or charges.

 

6-3

 

6.11                        Agreements

 

Other
than the Transaction Documents, neither Borrower nor any Subsidiary of either
Borrower is a party to any agreement, instrument or indenture or subject to any
restriction materially and adversely affecting its business, operations, assets
or financial condition, except as disclosed in the financial statements
described in Section 6.5. Neither Borrower nor any Subsidiary of either
Borrower is in default in the performance, observance or fulfillment of any of
the obligations, covenants or conditions contained in any agreement,
instrument, or indenture which default could result in a material adverse
change in either Borrower’s business, operations, assets or financial condition
as a whole. No holder of any indebtedness of either Borrower or of any of their
respective Subsidiaries has given notice of any asserted default under that
indebtedness, and no liquidation or dissolution of either Borrower or of any of
their respective Subsidiaries and no receivership, insolvency, bankruptcy, reorganization
or other similar proceedings relative to either Borrower or of any of their
respective Subsidiaries or any of its or their properties is pending or to the
knowledge of either Borrower, threatened.

 

6.12                        Title to Properties

 

Each
Borrower and each Subsidiary of each Borrower has good, valid, insurable and
(in the case of real property) marketable title to all of its properties and
assets (whether real or personal, tangible or intangible) reflected on the
financial statements described in Section 6.5, except for those properties and
assets that a Borrower has disposed of since the date of those financial
statements either in the ordinary course of business or because they were no
longer used or useful in the conduct of such Borrower’s or Subsidiary’s
business. All of Borrowers’ properties and assets are free and clear of all
Liens except as disclosed in Borrowers’ financial statements (or in the Base
Line Projections, in the case of W&D).

 

6.13                        ERISA

 

Each
Plan is in compliance with all applicable requirements of ERISA and the
Internal Revenue Code and with all material applicable rulings and regulations
issued under the provisions of ERISA and the Internal Revenue Code setting
forth those requirements, except where any failure to comply would not result
in a material loss to either Borrower or any ERISA Affiliate. All of the
minimum funding standards or other contribution obligations applicable to each
Plan have been satisfied. No Plan is a Multiemployer Plan or a defined-benefit
pension plan subject to Title IV of ERISA.

 

6.14                        No Retiree Benefits

 

Except
as required under Section 4980B of the Internal Revenue Code, Section 601 of
ERISA or applicable state law, neither Borrower nor any Subsidiary of either
Borrower is obligated to provide post-retirement medical or insurance benefits
with respect to employees or former employees.

 

6.15                        Assumed Names

 

Neither
Borrower originates Mortgage Loans or otherwise conducts business under any
names other than its legal name and the assumed names set forth on Exhibit G.
Borrowers have made all 

 

6-4

 

filings
and taken all other action as may be required under the laws of any
jurisdiction in which each respectively originates Mortgage Loans or otherwise
conducts business under any assumed name. Borrowers’ use of the assumed names
set forth on Exhibit G does not conflict with any other Person’s legal
rights to any such name, nor otherwise give rise to any liability by either
Borrower to any other Person. Borrowers may amend Exhibit G to add or
delete any assumed names used by a Borrower to conduct business. An amendment
to Exhibit G to add an assumed name is not effective until a Borrower
has delivered to Credit Agent an assumed name certificate in the jurisdictions
in which the assumed name is to be used, which must be satisfactory in form and
content to Credit Agent in its sole discretion. 
In connection with any amendment to delete a name from Exhibit G,
the affected Borrower represents and warrants that it has ceased using that
assumed name in all jurisdictions.

 

6.16                        Servicing

 

Exhibit
H is a true and complete list of each Borrower’s Servicing Portfolio as
of July 31, 2009. All of Borrowers’ Servicing Contracts are in full force and
effect, and are unencumbered by Liens other than pursuant to the GPFA Term
Loan. No event of default or event that, with notice or lapse of time or both,
would become an event of default, exists under any of Borrowers’ Servicing
Contracts.

 

6.17                        Foreign Asset Control Regulations.

 

Neither
the making of the Warehousing Advances nor the use of the proceeds of any
thereof (or any other Loan)  will violate
the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as amended) (the “Trading
With the Enemy Act”) or any of the foreign assets control regulations of
the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) (the “Foreign Assets Control Regulations”) or any enabling
legislation or executive order relating thereto (which for the avoidance of
doubt shall include, but shall not be limited to (a) Executive Order 13224 of
September 21, 2001 Blocking Property and Prohibiting Transactions With Persons
Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
(2001)) (the “Executive Order”) and (b) the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (Public Law 107-56). 
Furthermore, none of the Borrowers or their Affiliates (a) is or will
become a “blocked person” as described in the Executive Order, the Trading With
the Enemy Act or the Foreign Assets Control Regulations or (b) engages or will
engage in any dealings or transactions, or be otherwise associated, with any
such “blocked person.”

 

End of Article 6

 

6-5

 

7.                                      AFFIRMATIVE COVENANTS

 

As
long as the Warehousing Commitment is outstanding or there remain any
Obligations to be paid or performed under this Agreement or under any other
Loan Document, Borrowers must, unless Credit Agent and the Required Lenders (or
all of the Lenders, if required pursuant to Section 11.14(a)) consent in
writing:

 

7.1                               Payment of Obligations

 

Punctually
pay or cause to be paid all Obligations, including the Obligations payable
under this Agreement and the Warehousing Notes, in accordance with their terms.

 

7.2                               Financial Statements

 

Deliver
to Credit Agent, in form and detail reasonably satisfactory to Credit Agent:

 

7.2(a)                            As soon as
available and in any event within one hundred twenty (120) days after the end of
each fiscal year of W&D, audited fiscal year-end statements of income and
cash flows of W&D for that year, and the related audited balance sheet as
of the end of that year (setting forth in comparative form the corresponding
figures for the preceding fiscal year), all in reasonable detail and
accompanied by (1) an opinion as to those financial statements in form and
substance reasonably satisfactory to Credit Agent and prepared by an
independent  certified public accounting
firm reasonably acceptable to Credit Agent (it being acknowledged by Credit
Agent that KPMG currently is an acceptable independent certified public
accounting firm) and (2) if then available or otherwise within fifteen (15)
days of receipt by W&D, any management letters, management reports or other
supplementary comments or reports delivered by those accountants to W&D or
its governing board, body, manager, general partner, or the like;

 

7.2(b)                           As soon as
available and in any event within sixty (60) days after the end of each Fiscal
Quarter of W&D, including its last Fiscal Quarter, interim statements of
income of W&D, separately, and on a combining basis with Green Park, for
that fiscal quarter and the period from the beginning of the fiscal year to end
of that fiscal quarter, and the related balance sheet (including contingent
liabilities) as at the end of that fiscal quarter, all in reasonable detail,
subject, however, to year-end audit adjustments;

 

7.2(c)                            Together with
each delivery of financial statements required by this Section, a Compliance
Certificate substantially in the form of Exhibit I.

 

7.3                               Other Borrower Reports

 

Deliver
to Credit Agent:

 

7.3(a)                            As soon as
available and in any event within sixty (60) days after the end of each
Calendar Quarter, a consolidated report (“Servicing Portfolio Report”)
as of the end of the Calendar Quarter, as to all Mortgage Loans the servicing
rights to which are owned by W&D, and separately for GPF during the
Transition Services Period with respect 

 

7-1

 

any servicing rights GPF
owns and has not transferred to W&D (in each case, specified by investor
type, recourse and non-recourse) regardless of whether the Mortgage Loans are
Pledged Loans. The Servicing Portfolio Report must be in similar summary form
as previously presented to Credit Agent (or as Credit Agent otherwise may
agree), and must, at a minimum, indicate which Mortgage Loans (1) are current
and in good standing, (2) are more than 30, 60 or 90 days past due, (3) are the
subject of pending bankruptcy or foreclosure proceedings, or (4) have been
converted (through foreclosure or other proceedings in lieu of foreclosure)
into real estate owned by a Borrower, and include, by Mortgage Loan type (x)
weighted average coupon, (y) weighted average maturity, and (z) weighted
average servicing fee.

 

7.3(b)                           As soon as
available and in any event within sixty (60) days after the end of each
Calendar Quarter, a consolidated loan production report as of the end of that
Calendar Quarter, presenting the total dollar volume and the number of Mortgage
Loans originated and closed or purchased during that Calendar Quarter and for
the fiscal year-to-date, specified by property type, loan type and Investor to
whom each Mortgage Loan was sold.

 

7.3(c)                            Other reports
in respect of Pledged Assets, including, without limitation, copies of purchase
confirmations issued by Investors purchasing Pledged Loans from either
Borrower, in such detail and at such times as Credit Agent in its discretion
may reasonably request.

 

7.3(d)                           With reasonable
promptness, all further information regarding the business, operations, assets
or financial condition of either Borrower as Credit Agent may reasonably
request, including copies of any audits completed by Fannie Mae, Freddie Mac,
HUD, FHA or Ginnie Mae.

 

7.3(e)                            As soon as
available and in any event within 30 days after the end of each Calendar
Quarter, a report as of the end of such Calendar Quarter detailing all requests
that either Borrower repurchase Mortgage Loans and the status of each such
request and any indemnification or similar agreement to which either Borrower
is a party in connection with any such request.

 

7.4                               Maintenance of Existence; Conduct of Business

 

Preserve
and maintain its existence as a limited partnership as to GPF and a limited
liability company as to W&D, in good standing and all of its rights,
privileges, licenses and franchises necessary or desirable in the normal
conduct of its business, including its eligibility as lender, seller/servicer
or issuer as described under Section 9.1; conduct its business in an orderly
and efficient manner; maintain a net worth of acceptable assets as required for
maintaining Borrowers’ respective eligibility as lender, seller/servicer or
issuer as described under Section 9.1; and make no material change in the
nature or character of its business or engage in any business in which it was
not engaged on the date of this Agreement, except as contemplated by the
Transaction Documents.

 

7-2

 

7.5                               Compliance with Applicable Laws

 

Comply
with the requirements of all applicable laws, rules, regulations and orders of
any governmental authority, a breach of which could result in a material
adverse change in Borrowers’ business, operations, assets, or financial
condition as a whole or on the enforceability of this Agreement, the
Warehousing Notes, any other Loan Document or any Collateral, except where
contested in good faith and by appropriate proceedings.

 

7.6                               Inspection of Properties and Books; Operational Reviews

 

Permit
Credit Agent, any Lender, and any Assignee or Participant (and their authorized
representatives) to discuss the business, operations, assets and financial
condition of Borrowers and their Subsidiaries with GPF’s General Partner,
W&D’s senior officers, and other management officials, agents and
employees, and to examine and make copies or extracts of Borrowers’ and their
Subsidiaries’ books of account, all at such reasonable times as Credit Agent,
any Lender, or any Participant may request. Provide their accountants with a
copy of this Agreement promptly after its execution and authorize and instruct
them to answer candidly all questions that the officers of Credit Agent, any
Lender, or any Participant or any authorized representatives of Credit Agent,
any Lender, or any Participant may address to them in reference to the
financial condition or affairs of Borrowers and their Subsidiaries. Borrowers
may have representatives in attendance at any meetings held between the
officers or other representatives of Credit Agent, any Lender, or any
Participant and Borrowers’ accountants under this authorization. Permit Credit
Agent, any Lender, or any Participant (and their authorized representatives)
access to Borrowers’ premises and records for the purpose of conducting a
review of Borrowers’ general mortgage business methods, policies and
procedures, auditing its loan files and reviewing the financial and operational
aspects of Borrowers’ business.

 

7.7                               Notice

 

Give
prompt Notice to Credit Agent of (a) any action, suit or proceeding instituted
by or against either Borrower or any of their Subsidiaries or the General
Partner in any federal or state court or before any agency, board, bureau,
commission, instrumentality or other administrative or regulatory body (in each
case, whether federal, state or local, domestic or foreign), which action, suit
or proceeding has at issue in excess of $100,000, or any such proceedings
threatened against either Borrower or any of their Subsidiaries or the General
Partner in a writing containing the details of that action, suit or proceeding;
(b) the filing, recording or assessment of any Lien for any federal, state or
local taxes, assessments or other governmental charges against either Borrower,
any of their assets or any of their Subsidiaries or the General Partner, other
than a Lien for taxes, assessments or other governmental charges on real
property securing or that previously secured an individual Mortgage Loan that
is not a Pledged Loan; (c) an Event of Default; (d) a Default that continues
for more than 4 days; (e) the suspension, revocation or termination of either
Borrower’s eligibility, in any respect, as lender, seller/servicer or issuer as
described under Section 9.1 or the suspension, revocation or termination of any
other license or approval required for either Borrower to engage in the
business of originating, acquiring and, if applicable, servicing Mortgage
Loans; (f) the imposition of any other adverse regulatory or administrative
action or sanction on or against either Borrower or the General Partner by any
agency, board, bureau, commission, instrumentality or other administrative or
regulatory body 

 

7-3

 

(in
each case, whether federal, state or local, domestic or foreign) that could
result in a material adverse change in a Borrower’s business, operations,
assets or financial condition as a whole or that could affect the validity or
enforceability of any Pledged Asset; (g) the transfer, loss, nonrenewal or
termination of any Servicing Contracts to which either Borrower is a party, or
which is held for the benefit of either Borrower, and the reason for that
transfer, loss, nonrenewal or termination; (h) any Prohibited Transaction with
respect to any Plan, specifying the nature of the Prohibited Transaction and
what action the subject Borrower proposes to take with respect to it; and (i)
any other action, event or condition of any nature that could lead to or result
in a material adverse change in the business, operations, assets or financial
condition of either Borrower or any of their Subsidiaries or the General
Partner.

 

7.8                               Payment of Debt, Taxes and Other Obligations

 

Pay,
perform and discharge, or cause to be paid, performed and discharged, all of
the obligations and indebtedness of Borrowers and their Subsidiaries, all
taxes, assessments and governmental charges or levies imposed upon either
Borrower or their Subsidiaries or upon their respective income, receipts or
properties before those taxes, assessments and governmental charges or levies
become past due, and all lawful claims for labor, materials and supplies or
otherwise that, if unpaid, could become a Lien or charge upon any of their
respective properties or assets. Borrowers and their Subsidiaries are not
required to pay, however, any taxes, assessments and governmental charges or
levies or claims for labor, materials or supplies for which such Borrower or
its Subsidiaries have obtained an adequate bond or insurance or that are being
contested in good faith and by proper proceedings that are being reasonably and
diligently pursued and for which proper reserves have been created.

 

7.9                               Insurance

 

Maintain
blanket bond coverage and errors and omissions insurance with such companies
and in such amounts as satisfy prevailing requirements applicable to a lender,
seller/servicer or issuer as described under Section 9.1, and liability
insurance and fire and other hazard insurance on its properties, in each case
with responsible insurance companies acceptable to Credit Agent, in such
amounts and against such risks as is customarily carried by similar businesses
operating in the same location. Within 30 days after Notice from Credit Agent,
obtain such additional insurance as Credit Agent may reasonably require, all at
the sole expense of Borrowers. Copies of such policies must be furnished to
Credit Agent without charge upon request of Credit Agent.

 

7.10                        Closing Instructions

 

Indemnify
and hold Credit Agent and each Lender harmless from and against any loss,
including reasonable attorneys’ fees and costs, attributable to the failure of
any title insurance company, agent or attorney to comply with a Borrower’s
disbursement or instruction letter relating to any Mortgage Loan. Credit Agent
has the right to pre-approve each Borrower’s choice of title insurance company,
agent or attorney, unless already approved by Fannie Mae, Freddie Mac, or FHA,
as applicable, and a Borrower’s disbursement or instruction letter to them in
any case in which a Borrower intends to obtain a Warehousing Advance against
the Mortgage Loan to be created at settlement or to pledge that Mortgage Loan
as Collateral under this Agreement.

 

7-4

 

7.11                        Subordination of Certain Indebtedness

 

Cause
any indebtedness of either Borrower for borrowed money to any partner or
Affiliate or any member, shareholder, director or officer of any partner or
Affiliate of such Borrower, to be subordinated to the Obligations by the
execution and delivery to Credit Agent of a Subordination of Debt Agreement, on
the form prescribed by Credit Agent, certified by the corporate secretary of
the applicable Borrower to be true and complete and in full force and effect.

 

7.12                        Other Loan Obligations

 

Perform
all material obligations under the terms of each loan agreement, note,
mortgage, security agreement or debt instrument by which either Borrower is
bound or to which any of its property is subject, and promptly notify Credit
Agent in writing of a declared default under or the termination, cancellation,
reduction or nonrenewal of any of its other lines of credit or agreements with
any other lender. Exhibit J is a true and complete list of all such
lines of credit or agreements as of the date of this Agreement. Borrowers must
give Credit Agent and Lenders at least 30 days Notice before entering into any
new lines of credit or agreements.

 

7.13                        ERISA

 

Maintain
and cause each ERISA Affiliate to maintain each Plan in compliance with all
material applicable requirements of ERISA and of the Internal Revenue Code and
with all applicable rulings and regulations issued under the provisions of
ERISA and of the Internal Revenue Code, and not, and not permit any ERISA
Affiliate to, (a) engage in any transaction in connection with which a Borrower
or any ERISA Affiliate would be subject to either a civil penalty assessed
pursuant to Section 502(i) of ERISA or a tax imposed by Section 4975 of the
Internal Revenue Code, in either case in an amount exceeding $25,000 or (b)
fail to make full payment when due of all amounts that, under the provisions of
any Plan, a Borrower or any ERISA Affiliate is required to pay as contributions
to that Plan, or permit to exist any accumulated funding deficiency (as such
term is defined in Section 302 of ERISA and Section 412 of the Internal Revenue
Code), whether or not waived, with respect to any Plan in an aggregate amount
exceeding $25,000.

 

7.14                        Use of Proceeds of Warehousing Advances

 

Use
the proceeds of each Warehousing Advance solely for the purpose of funding
Eligible Loans and against the pledge of those Eligible Loans as Collateral.

 

End of Article 7

 

7-5

 

8.                                      NEGATIVE COVENANTS

 

As
long as the Warehousing Commitment is outstanding or there remain any Obligations
to be paid or performed, Borrowers must not, either directly or indirectly,
without the prior written consent of Credit Agent and Required Lenders (or all
of the Lenders, if required pursuant to Section 11.14(a)):

 

8.1                               Contingent Liabilities

 

Assume,
guarantee, endorse or otherwise become contingently liable for the obligation
of any Person except (a) by endorsement of negotiable instruments for deposit
or collection in the ordinary course of business and (b) for obligations
arising in connection with the sale of Mortgage Loans with recourse in the
ordinary course of a Borrower’s business.

 

8.2                               Restrictions on Fundamental Changes

 

8.2(a)                            Reorganize,
spin-off, consolidate with, merge with or into, or enter into any analogous
reorganization or transaction with any Person.

 

8.2(b)                           Amend or
otherwise modify GPF’s certificate of limited partnership or partnership
agreement, or W&D’s certificate of formation or operating agreement.

 

8.2(c)                            Liquidate, wind
up or dissolve (or suffer any liquidation or dissolution).

 

8.2(d)                           Except as
contemplated and permitted by the Transaction Documents, cease actively to
engage in the business of originating or acquiring Mortgage Loans, or if
applicable, servicing Mortgage Loans, or make any other material change in the
nature or scope of the business in which a Borrower engages as of the date of
this Agreement.

 

8.2(e)                            Sell, assign,
lease, convey, transfer or otherwise dispose of (whether in one transaction or
a series of transactions) all or any substantial part of a Borrower’s business
or assets, whether now owned or acquired after the Closing Date, other than, in
the ordinary course of business and to the extent not otherwise prohibited by
this Agreement, sales of (1) Mortgage Loans, (2) Mortgage-backed Securities and
(3) Servicing Contracts.

 

8.2(f)                              Acquire by
purchase or in any other transaction all or substantially all of the business
or property, or stock or other ownership interests of any Person.

 

8.2(g)                           Permit any
Subsidiary of a Borrower to do or take any of the foregoing actions.

 

8.3                               Subsidiaries

 

Form
or acquire, or permit any Subsidiary of a Borrower to form or acquire, any
Person that would thereby become a Subsidiary.

 

8-1

 

8.4                               Deferral of Subordinated Debt

 

Pay
any Subordinated Debt of a Borrower in advance of its stated maturity or, after
a Default or Event of Default under this Agreement has occurred, make any
payment of any kind on any Subordinated Debt of a Borrower until all of the
Obligations have been paid and performed in full and any applicable preference
period has expired.

 

8.5                               Loss of Eligibility, Licenses or Approvals

 

Take
any action, or fail or omit to take any action, that would (a) cause a Borrower
to lose all or any part of its status as an eligible lender, seller/servicer or
issuer as described under Section 9.1 or all or any part of any other license
or approval required for a Borrower to engage in the business of originating,
acquiring and, if applicable, servicing Mortgage Loans or (b) result in the
imposition of any other adverse regulatory or administrative action or sanction
on or against a Borrower by any agency board, bureau, commission,
instrumentality or other administrative or regulatory body (in each case,
whether federal, state or local, domestic or foreign) that could result in a
material adverse change in a Borrower’s business, operations, assets or
financial condition as a whole or that could affect the validity or
enforceability of any Pledged Loan.

 

8.6                               Accounting Changes

 

Make,
or permit any Subsidiary of a Borrower to make, any significant change in
accounting treatment or reporting practices, except as required by GAAP, or
change its fiscal year or the fiscal year of any Subsidiary of a Borrower.  If any changes in GAAP would result in any
material deviation in the method of calculating and results of testing
compliance with any financial covenant hereunder, such financial covenant shall
continue to be calculated and tested as if such change in GAAP had not
occurred, unless otherwise specifically agreed in writing by Lender after full
disclosure by Borrowers.

 

8.7                               Leverage Ratio

 

Permit
W&D’s Leverage Ratio at any time to exceed 6 to 1.

 

8.8                               Minimum Tangible Net Worth

 

Permit W&D’s Adjusted Tangible Net Worth at any
time to be less than the applicable amount set forth below as of the dates, and
during the applicable periods, set forth below, to be tested as of such dates
and on the last day of each Fiscal Quarter occurring during each applicable
period, or otherwise not to be in compliance with applicable requirements
of  HUD, Investors (including Freddie
Mac) or Fannie Mae.

 

	
   

  	
  Specified
  Date and Period

  	
   

  	
  Applicable

  Minimum Amount

  	
   

  	
   

  
	
   

  	
  Closing Date to October 30, 2009

  	
   

  	
  $

  	
  60,000,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  October 31, 2009 and thereafter 

  	
   

  	
  $

  	
  65,000,000

  	
   

  	
   

  

 

8-2

 

8.9                               Minimum Liquid Assets

 

Permit W&D’s Liquid Assets at any time to be
less than the applicable amount set forth below as of the dates, and during the
applicable periods, set forth below, to be tested as of the such dates and on
the last day of each Fiscal Quarter occurring during each applicable period, or
otherwise not to be in compliance with applicable requirements of  HUD, Investors (including Freddie Mac) or
Fannie Mae.

 

	
   

  	
  Specified
  Date and Period

  	
   

  	
  Applicable

  Minimum Amount

  	
   

  	
   

  
	
   

  	
  Closing Date to October 30, 2009

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  October 31, 2009 and thereafter

  	
   

  	
  $

  	
  7,000,000

  	
   

  	
   

  

 

8.10                        Servicing Delinquencies

 

Permit
(i) the aggregate unpaid principal amount of Fannie Mae DUS Mortgage Loans
comprising W&D’s Servicing Portfolio which are sixty (60) or more days past
due or otherwise in default at any time to exceed two percent (2%) of the
aggregate unpaid principal balance of all Fannie Mae DUS Mortgage Loans
comprising W&D’s Servicing Portfolios at such time, or (ii) the aggregate
unpaid principal amount of At Risk Mortgage Loans comprising W&D’s
Servicing Portfolio which are sixty (60) or more days past due or otherwise in
default to increase by more than one-half percent (.5%) from the last day of a
Fiscal Quarter to the last day of the following Fiscal Quarter.

 

8.11                        Distributions to Partners

 

Make
any distributions to a Borrower’s Partners (including any purchase or
redemption of Equity Interests) if a Default or Event of Default exists or
would occur as a result of the dividend or distribution.

 

8.12                        Transactions with Affiliates

 

Directly
or indirectly (a) make any loan, advance, extension of credit or capital
contribution to any of a Borrower’s Affiliates, (b) sell, transfer, pledge or
assign any of its assets to or on behalf of those Affiliates, (c) merge or
consolidate with or purchase or acquire assets from those Affiliates, or (d)
pay management fees to or on behalf of those Affiliates, other than (i)
payments attributable to reasonable overhead and administrative charges
allocated to a Borrower by the Affiliates, (ii) reasonable subservicing fees
payable to Affiliates for their servicing of the Servicing Portfolio, (iii)
advances to Affiliates in an aggregate amount outstanding at any time not
exceeding $250,000, made in accordance with current practices as described by
the Borrowers to Credit Agent and Lenders, and (iv) loans from W&D to GPF
pursuant to the specific provisions of Section 4.4.3 of the Operating
Agreement.

 

8-3

 

8.13                        Recourse Servicing Contracts

 

Except
for Servicing Contracts involving Fannie Mae DUS Mortgage Loans, and conduit
originations for which Borrower notifies Lender under Section 7.3(e), acquire
or enter into Servicing Contracts under which a Borrower must repurchase or
indemnify the holder of the Mortgage Loans as a result of defaults on the
Mortgage Loans at any time during the term of those Mortgage Loans.

 

End of Article 8

 

8-4

 

9.                                      SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL

 

9.1                               Special Representations and Warranties Concerning Eligibility as
Seller/Servicer of Mortgage Loans

 

9.1(a)                            W&D
represents and warrants to Credit Agent and Lenders, as of the date of this
Agreement and as of the date of each Warehousing Advance Request and the making
of each Warehousing Advance, that W&D is approved, qualified and in good
standing as:

 

(1)                        A Fannie
Mae-approved seller/servicer of Mortgage Loans, eligible to originate,
purchase, hold, sell and service Mortgage Loans to be sold to Fannie Mae under
the following programs:

 

(a)                                  Fannie Mae DUS
Program; and

 

(b)                                 Fannie Mae
Aggregation Program.

 

(2)                        A Freddie Mac
Program Plus seller/servicer of Mortgage Loans.

 

9.1(b)                           Notwithstanding
the foregoing, it is acknowledged, understood and agreed that W&D is in the
process of obtaining its California mortgage lending license.  Until W&D obtains such license, Fannie
Mae and Freddie Mac have each agreed to allow GPF to originate loans secured by
properties located in the State of California under their respective programs
referred to above, and sell those loans to W&D for subsequent purchase by
Fannie Mae or Freddie Mac, as applicable, which arrangement between W&D and
GPF is in accordance with applicable provisions of the Transition Services
Agreement.

 

9.1(c)                            W&D
represents and warrants to the Credit Agent and the Lenders that approval is
currently pending for W&D to be: (i) an FHA/HUD approved mortgagee, (ii) a
HUD MAP Lender, and (iii) a Ginnie Mae approved servicer.  W&D shall regularly keep Credit Agent and
Lenders informed of the status of (and promptly notify the Credit Agent and
Lenders of any material action with respect to) the foregoing approvals.

 

9.2                               Special Representations and Warranties Concerning Warehousing Collateral

 

Borrowers
represents and warrants to Credit Agent and Lenders, as of the date of this
Agreement and as of the date of each Warehousing Advance Request and the making
of each Warehousing Advance, that:

 

9.2(a)                            Borrowers have
not selected the Collateral in a manner so as to affect adversely Credit Agent’s
or Lender’s interests.

 

9.2(b)                           A Borrower is
the legal and equitable owner and holder, free and clear of all Liens (other
than Liens granted under this Agreement), of the Pledged Loans and the Pledged
Securities. All Pledged Loans, Pledged Securities and related Purchase
Commitments have been duly authorized and validly issued to a Borrower, and all
of the foregoing items of Collateral comply with all of the requirements of this
Agreement, and have 

 

9-1

 

been and will continue to be
validly pledged or assigned to Lender, subject to no other Liens.

 

9.2(c)                            Borrowers have,
and will continue to have, the full right, power and authority to pledge the
Collateral pledged and to be pledged by it under this Agreement.

 

9.2(d)                           Each Mortgage
Loan and each related document included in the Pledged Loans (1) has been duly
executed and delivered by the parties to that Mortgage Loan and that related
document, (2) has been made in compliance with all applicable laws, rules and
regulations (including all laws, rules and regulations relating to usury), (3)
is and will continue to be a legal, valid and binding obligation, enforceable
in accordance with its terms, without setoff, counterclaim or defense in favor
of the mortgagor under the Mortgage Loan or any other obligor on the Mortgage
Note, (4) has not been modified, amended or any requirements of which waived,
except in a writing that is part of the Collateral Documents, and (5) complies
and will continue to comply with the terms of this Agreement, the related
Purchase Commitment, and the standard practices of the applicable Federal
Agency or Investor.

 

9.2(e)                            Each Pledged
Loan is secured by a Mortgage on real property and improvements located in one
of the states of the United States or the District of Columbia.

 

9.2(f)                              Each Pledged
Loan has been closed or will be closed and funded with the Warehousing Advance
made against it.

 

9.2(g)                           Except for FHA
Construction Mortgage Loans and Special Fannie Mae Mortgage Loans, each
Mortgage Loan has been fully advanced in the face amount of its Mortgage Note.

 

9.2(h)                           Each Pledged
Loan is a First Mortgage Loan, unless permitted to be a Subordinate Mortgage Loan
under Exhibit C (in which case such Pledged Loan may only be a Second
Mortgage Loan or a Third Mortgage Loan).

 

9.2(i)                               Each First
Mortgage Loan is secured by a First Mortgage on the real property and
improvements described in or covered by that Mortgage.

 

9.2(j)                               Each First
Mortgage Loan has or will have a title insurance policy, in ALTA form or
equivalent, from a recognized title insurance company, insuring the priority of
the Lien of the Mortgage and meeting the usual requirements of Investors
purchasing those Mortgage Loans.

 

9.2(k)                            The real
property securing each Pledged Loan has been evaluated or appraised in
accordance with Title Xl of FIRREA, USPAP, and the requirements of the
applicable Federal Agency or Investor.

 

9.2(l)                               Each
Subordinate Mortgage Loan (to the extent Subordinate Mortgage Loans are
permitted by Exhibit C) is a Second Mortgage Loan or a Third Mortgage
Loan on the premises described in that Mortgage.  With respect to each Second Mortgage Loan and
Third Mortgage Loan, a Borrower shall be the servicer, and the lender with
respect to 

 

9-2

 

such Second Mortgage Loan
and Third Mortgage Loan shall also be the lender with respect to the senior
Mortgage Loan on such Property.

 

9.2(m)                         To the extent
required by the related Purchase Commitment or by Investors generally for
similar Mortgage Loans, each Subordinate Mortgage Loan has or will have a title
insurance policy, in ALTA form or equivalent, from a recognized title insurance
company, insuring the priority of the Lien of the Mortgage and meeting the
usual requirements of Investors purchasing those Mortgage Loans.

 

9.2(n)                           The Mortgage
Note for each Pledged Loan is (1) payable or endorsed to the order of a
Borrower, (2) an “instrument” within the meaning of Article 9 of the Uniform
Commercial Code of all applicable jurisdictions and (3) is denominated and
payable in United States dollars.

 

9.2(o)                           No default
exists under any Mortgage Loan when such Mortgage Loan first is included as a
Pledged Loans, and no default has existed for 60 days or more under any such
Mortgage Loan at any time thereafter.

 

9.2(p)                           No party to a
Mortgage Loan or any related document is in violation of any applicable law,
rule or regulation that would impair the collectability of the Mortgage Loan or
the performance by the mortgagor or any other obligor of his or her obligations
under the Mortgage Note or any related document.

 

9.2(q)                           All fire and
casualty policies covering the real property and improvements encumbered by
each Mortgage included in the Pledged Loans (1) name and will continue to name
Borrower and its successors and assigns as the insured under a standard
mortgagee clause, (2) are and will continue to be in full force and effect and
(3) afford and will continue to afford insurance against fire and such other
risks as are usually insured against in the broad form of extended coverage
insurance generally available.

 

9.2(r)                              Pledged Loans
secured by real property and improvements located in a special flood hazard
area designated as such by the Director of the Federal Emergency Management
Agency are and will continue to be covered by special flood insurance under the
National Flood Insurance Program.

 

9.2(s)                            The real
property and improvements securing each Pledged Loan are free of damage or
waste and are in good repair, and no improvement located on or being a part of
such real property violates any applicable zoning law or regulation (unless
constituting a legal non-conforming use or improvement).

 

9.2(t)                              No notice of
any partial or total condemnation has been given with respect to the real
property and improvements securing any Pledged Loan.

 

9.2(u)                           Each Pledged
Loan against which a Warehousing Advance has been or will be made on the basis
of a Purchase Commitment, meets all of the requirements of that Purchase
Commitment, and each Pledged Security against which a Warehousing Advance is
outstanding meets all of the requirements of the related Purchase Commitment.

 

9-3

 

9.2(v)                           Pledged Loans
that are intended to be exchanged for Agency Securities comply or, prior to the
issuance of the Agency Securities will comply, with the requirements of any
governmental instrumentality, department or agency issuing or guaranteeing the
Agency Securities.

 

9.2(w)                         None of the
Pledged Loans is a graduated payment Mortgage Loan or has a shared appreciation
or other contingent interest feature, and each Pledged Loan provides for
periodic payments of all accrued interest on the Mortgage Loan on at least a
monthly basis.

 

9.2(x)                             Neither
Borrower nor any of either Borrower’s Affiliates has any ownership interest,
right to acquire any ownership interest or equivalent economic interest in any
property securing a Pledged Loan or the mortgagor under the Pledged Loan or any
other obligor on the Mortgage Note for such Pledged Loan.

 

9.2(y)                           The original
assignments of Mortgage delivered to Lender for each Pledged Loan are in
recordable form and comply with all applicable laws and regulations governing
the filing and recording of such documents.

 

9.2(z)                             None of the
mortgagors, guarantors or other obligors of any Pledged Loan is a Person named
in any Restriction List and to whom the provision of financial services is
prohibited or otherwise restricted by applicable law.

 

9.3                               Special Affirmative Covenants Concerning Warehousing Collateral

 

As
long as the Warehousing Commitment is outstanding or there remain any
Obligations to be paid or performed under this Agreement or under any other
Loan Document, Borrowers must, unless Credit Agent and the Required Lenders (or
all of the Lenders, if required pursuant to Section 11.14(a)) consent in
writing:

 

9.3(a)                            Warrant and
defend the right, title and interest of Credit Agent, for itself and as agent
of Lenders, in and to the Collateral against the claims and demands of all
Persons.

 

9.3(b)                           Service or
cause to be serviced all Pledged Loans in accordance with the standard
requirements of the issuers of Purchase Commitments covering them and all
applicable Federal Agency requirements, including taking all actions necessary
to enforce the obligations of the obligors under such Mortgage Loans. Service
or cause to be serviced all Mortgage Loans backing Pledged Securities in
accordance with applicable governmental requirements and requirements of
issuers of Purchase Commitments covering them. Hold all escrow funds collected
in respect of Pledged Loans and Mortgage Loans backing Pledged Securities in
trust, without commingling the same with non-custodial funds, and apply them
for the purposes for which those funds were collected.

 

9.3(c)                            Execute and
deliver to Credit Agent, with respect to the Collateral, those further
instruments of sale, pledge, assignment or transfer, and those powers of
attorney, as required by Credit Agent, and do and perform all matters and
things necessary or desirable to be done or observed, for the purpose of
effectively creating, maintaining 

 

9-4

 

and preserving the security
and benefits intended to be afforded Credit Agent and Lenders under this
Agreement.

 

9.3(d)                           Notify Credit
Agent within 2 Business Days of any default under, or of the termination of,
any Purchase Commitment relating to any Pledged Loan, Eligible Mortgage Pool or
Pledged Security.

 

9.3(e)                            Promptly comply
in all respects with the terms and conditions of all Purchase Commitments, and
all extensions, renewals and modifications or substitutions of or to all
Purchase Commitments. Deliver or cause to be delivered to the Investor the
Pledged Loans and Pledged Securities to be sold under each Purchase Commitment
not later than the mandatory delivery date of the Pledged Loans or Pledged
Securities under the Purchase Commitment.

 

9.3(f)                              Compare the
names of every mortgagor, guarantor and other obligor of every Mortgage Loan,
together with appropriate identifying information concerning those Persons
obtained by Borrower, against every Restriction List, and make certain that
none of the mortgagors, guarantors or other obligors of any Mortgage Loan is a
Person named in any Restriction List and to whom the provision of financial
services is prohibited or otherwise restricted by applicable law.

 

9.3(g)                           Other than with
respect to Fannie Mae DUS Mortgage Loans, prior to the origination by a
Borrower of any Mortgage Loans for sale to a Federal Agency, such Borrower
shall have entered into an agreement among Credit Agent, the Investor under the
applicable Purchase Commitment, and such Borrower, pursuant to which such
Investor agrees to send all cash proceeds of Mortgage Loans sold by such
Borrower to such Investor to the applicable Cash Collateral Account.

 

9.4                               Special Negative Covenants Concerning Warehousing Collateral

 

As
long as the Warehousing Commitment is outstanding or there remain any
Obligations to be paid or performed, Borrowers must not, either directly or
indirectly, without the prior written consent of Credit Agent and the Required
Lenders (or all of the Lenders, if required pursuant to Section 11.14(a)):

 

9.4(a)                            Amend, modify,
or waive any of the terms and conditions of, or settle or compromise any claim
in respect of, any Pledged Loans or Pledged Securities.

 

9.4(b)                           Sell, transfer
or assign (other than assignments from GPF to W&D pursuant to the GPF
Origination Services), or grant any option with respect to, or pledge (except
under this Agreement and, with respect to each Pledged Loan or Pledged
Security, the related Purchase Commitment) any of the Collateral or any
interest in any of the Collateral.

 

9.4(c)                            Make any
compromise, adjustment or settlement in respect of any of the Collateral or
accept any consideration other than cash in payment or liquidation of the
Collateral.

 

9-5

 

9.5                               Special Representation and Warranty Concerning Fannie Mae DUS Program
Reserve Requirements

 

Borrowers
represent and warrant to Credit Agent and Lenders that Borrowers will have met
the Fannie Mae DUS Program requirements for lender reserves for each Fannie Mae
DUS Mortgage Loan to be funded by a Warehousing Advance, at such time as
required by Fannie Mae under the Fannie Mae DUS Program.

 

9.6                               Special Representations and Warranties Concerning Special Fannie Mae
Mortgage Loans

 

Borrowers
represent and warrant to Credit Agent and Lenders, as of the date of this
Agreement and as of the date of each Warehousing Advance Request and the making
of each Warehousing Advance, that at the time of any Warehousing Advance
against a Special Fannie Mae Mortgage Loan:

 

9.6(a)                            The related
Master Credit Facility Agreement and the Mortgage Notes evidencing the Special
Fannie Mae Mortgage Loan are in full force and effect and constitute the legal,
valid and binding obligations of the parties to those agreements and
instruments, enforceable against those parties in accordance with their terms.

 

9.6(b)                           All of the
Mortgages and pledges of Mortgage Notes securing the Special Fannie Mae
Mortgage Loan under the related Master Credit Facility Agreement are in full
force and effect, constitute the legal, valid and binding obligations of the
parties to those agreements and instruments, enforceable against such parties
in accordance with their terms, and, in the case of Mortgages, constitute
valid, perfected first priority Liens on the underlying property, subject only
to Liens specified as exceptions in the original title insurance policy related
to each Mortgage, and in the case of pledges of Mortgage Notes, constitute a
valid, perfected first priority Lien on those Mortgage Notes, which is in turn
secured by valid, perfected, first priority Liens on the underlying property,
subject only to Liens specified in the original title insurance policy related
to that Mortgage Loan.

 

9.6(c)                            The Special
Fannie Mae Mortgage Loan is in compliance with all terms of the related Master
Credit Facility Agreement and the related Special Fannie Mae Pool Purchase
Contract.

 

9.7                               Special Covenants Concerning Special Fannie Mae Mortgage Loans

 

As
long as the Warehousing Commitment is outstanding or there remain any
Obligations to be paid or performed, Borrowers must, unless Credit Agent and
the Required Lenders (or all of the Lenders, if required pursuant to Section
11.14(a)) consent in writing:

 

9.7(a)                            Promptly
provide Credit Agent with copies of any amendment, supplement, restatement or
other modification of any Master Credit Facility Agreement, the promissory
notes evidencing the Special Fannie Mae Mortgage Loans made under that
agreement or the related Special Fannie Mae Pool Purchase Contract.

 

9-6

 

9.7(b)                           Not amend,
restate, renew or replace the Mortgage Notes evidencing a Special Fannie Mae
Mortgage Loan or the related Master Credit Facility Agreement or the related
Special Fannie Mae Pool Purchase Contract, at any time that a Warehousing
Advance is outstanding against that Special Fannie Mae Mortgage Loan.

 

9.7(c)                            Not, while any
Warehousing Advance is outstanding against any Special Fannie Mae Mortgage
Loan, borrow against such Special Fannie Mae Mortgage Loan (or any advance
thereunder) from any other Person, or grant a security interest therein in
favor of any Person other than Lender.

 

9.8                               Special Representations and Warranties Concerning FHA Mortgage Loans

 

Borrowers
represent and warrant to Credit Agent and Lenders, as of the date of each
Advance Request and the making of each Warehousing Advance, that:

 

9.8(a)                            Each
FHA-insured Mortgage Loan included in the Pledged Loans meets all applicable
governmental requirements for such insurance. W&D has complied and will
continue to comply with all laws, rules and regulations with respect to the FHA
insurance of each Pledged Loan designated by W&D as an FHA-insured Mortgage
Loan, and such insurance is and will continue to be in full force and effect.

 

9.8(b)                           For FHA-insured
Pledged Loans that will be used to back Ginnie Mae Mortgage-backed Securities,
W&D has received from Ginnie Mae the Confirmation Notice for Request of
Additional Commitment Authority and Confirmation Notice for Request of Pool
Numbers, and there remains available under those agreements a commitment on the
part of Ginnie Mae sufficient to permit the issuance of Ginnie Mae
Mortgage-backed Securities in an amount at least equal to the amount of the
Pledged Loans designated by W&D as the Mortgage Loans to be used to back
those Ginnie Mae Mortgage-backed Securities; each of those Confirmation Notices
is in full force and effect; each of those Pledged Loans has been assigned by
W&D to one of those Pool Numbers and a portion of the available Ginnie Mae
Commitment has been allocated to this Agreement by W&D, in an amount at least
equal to those Pledged Loans; and each of those assignments and allocations has
been reflected in the books and records of W&D.

 

End of Article 9

 

9-7

 

10.                               DEFAULTS; REMEDIES

 

10.1                        Events of Default

 

The
occurrence of any of the following is an event of default (“Event of Default”):

 

10.1(a)                      Borrowers fail
to pay the principal of any Warehousing Advance when due, whether at stated
maturity, by acceleration, or otherwise; or fails to pay interest on any
Warehousing Advance when due hereunder; or fails to pay, within any applicable
grace period, any other amount due under this Agreement or any other Obligation
of Borrowers to Lender.

 

10.1(b)                     Borrowers fail to perform or
comply with any term or condition applicable to it contained in any Section of
Article 7 or Article 8.

 

10.1(c)                      Except as
contemplated by the Transaction Documents, the suspension, revocation or
termination of a Borrower’s eligibility, in any respect, as lender,
seller/servicer or issuer as described under Section 9.1 or of any other
license or approval required for either Borrower to engage in the business of
originating, acquiring and, if applicable, servicing Mortgage Loans; or the
imposition of any other adverse regulatory or administrative action or sanction
on or against a Borrower by any agency, board, bureau, commission,
instrumentality or other administrative or regulatory body (in each case,
whether federal, state or local, domestic or foreign) that could result in a
material adverse change in either Borrower’s business, operations, assets or
financial condition as a whole or that could affect the validity or
enforceability of any Pledged Loan.

 

10.1(d)                     Any representation or
warranty made or deemed made by a Borrower under this Agreement, in any other
Loan Document or in any written statement or certificate at any time given by a
Borrower, other than the representations and warranties set forth in Article 9
with respect to specific Pledged Loans, is inaccurate or incomplete in any
material respect on the date as of which it is made or deemed made.

 

10.1(e)                      Borrowers
default in the performance of or compliance with any term contained in this
Agreement or any other Loan Document other than those referred to in Sections
10.1(a), 10.1(b), 10.1(c) or 10.1(d) and such default has not been remedied or
waived in writing within 30 days after the earliest of (1) receipt by Borrowers
of Notice from Credit Agent of that default, (2) receipt by Credit Agent of
Notice from Borrowers of that default or (3) the date Borrowers should have
notified Credit Agent of that default under the applicable clause of Section
7.7.

 

10.1(f)                        A Borrower or
any of its Subsidiaries or any General Partner default under any other
Indebtedness in excess of $500,000 (individually or in the aggregate) and such
default continues for more than thirty (30) days.

 

10.1(g)                     An “event of default”
(however defined) occurs under any agreement between a Borrower and Bank of
America other than this Agreement and the other Loan Documents.

 

10-1

 

10.1(h)                     A case (whether voluntary or
involuntary) is filed by or against either Borrower or any Subsidiary or the
General Partner of Borrower under any applicable bankruptcy, insolvency or
other similar federal or state law; or a court of competent jurisdiction
appoints a receiver (interim or permanent), liquidator, sequestrator, trustee,
custodian or other officer having similar powers over a Borrower or any
Subsidiary or the General Partner, or over all or a substantial part of their
respective properties or assets, and, if filed against such party, such action
is contested by such party, such action is not dismissed within 45 days, and,
during such period as such party is contesting such action, there is a stay in
effect; or a Borrower or any Subsidiary General Partner of a Borrower (1)
consents to the appointment of or possession by a receiver (interim or
permanent), liquidator, sequestrator, trustee, custodian or other officer
having similar powers over a Borrower or any Subsidiary or General Partner of
Borrower or over all or a substantial part of their respective properties or
assets, (2) makes an assignment for the benefit of creditors, or (3) fails, or
admits in writing its inability, to pay its debts as those debts become due.

 

10.1(i)                         A Borrower
fails to perform any contractual obligation to repurchase Mortgage Loans, if
such obligations in the aggregate exceed $5,000,000.

 

10.1(j)                         Any money
judgment, writ or warrant of attachment or similar process involving an amount
in excess of $100,000 is entered or filed against a Borrower or any of its
Subsidiaries or General Partner or any of their respective properties or assets
and remains undischarged, unvacated, unbonded or unstayed for a period of 30
days or 5 days before the date of any proposed sale under that money judgment,
writ or warrant of attachment or similar process.

 

10.1(k)                      Any order,
judgment or decree decreeing the dissolution of a Borrower or General Partner
is entered and remains undischarged or unstayed for a period of 20 days.

 

10.1(l)                         A Borrower or
the General Partner purports to disavow any of its Obligations or contests the
validity or enforceability of any Loan Document.

 

10.1(m)                   Credit Agent’s and/or any
Lender’s security interest on any portion of the Collateral becomes
unenforceable or otherwise impaired.

 

10.1(n)                     A material adverse change
occurs in Borrowers’ financial condition, business, properties or assets,
operations or prospects, or in Borrowers’ ability to repay the Obligations.

 

10.1(o)                     Any Lien for any tax,
assessment or other governmental charge (i) is filed or is otherwise enforced
against a Borrower or any of its property, including any of the Collateral,
other than a Lien for taxes, assessments or other governmental charges on real
property securing or that previously secured an individual Mortgage Loan that
is not a Pledged Loan, or (ii) obtains priority that is equal to or greater
than the priority of Credit Agent’s security interest in any of the Collateral.

 

10-2

 

10.1(p)                     Any Partner transfers,
directly or indirectly, any of its Equity Interests of a Borrower; or any new
General Partner is admitted to GPF; or any Partner withdraws from a Borrower.

 

10.1(q)                     Walker & Dunlop GP,
LLC ceases to be the Managing General Partner of GPF.

 

10.2                        Remedies

 

10.2(a)                      If an Event of
Default described in Section 10.1(h) occurs with respect to a
Borrower, the Warehousing Commitment will automatically terminate and the
unpaid principal amount of and accrued interest on the Warehousing Notes and
all other Obligations will automatically become due and payable, without
presentment, demand or other Notice or requirements of any kind, all of which
Borrowers expressly waive.

 

10.2(b)                     If any other Event of
Default occurs, Credit Agent may, and at the direction of Required Lenders
shall, by Notice to Borrowers, terminate the Warehousing Commitment and declare
the Obligations to be immediately due and payable.

 

10.2(c)                      If any Event of
Default occurs, Credit Agent may, and at the direction of Required Lenders
shall, also take any of the following actions:

 

(1)                                  Foreclose upon
or otherwise enforce its security interest in and Lien on the Collateral to
secure all payments and performance of the Obligations in any manner permitted
by law or provided for in the Loan Documents.

 

(2)                                  Notify all
obligors under any of the Collateral that the Collateral has been assigned to
Credit Agent (or to another Person designated by Credit Agent) and that all
payments on that Collateral are to be made directly to Credit Agent (or such
other Person); settle, compromise or release, in whole or in part, any amounts
any obligor or Investor owes on any of the Collateral on terms acceptable to
Credit Agent (with the Required Lenders’ consent in the case of the release of
any Pledged Loan or Pledged Security for an amount less than the outstanding
Warehousing Advance against such Pledged Loan or Pledged Security); enforce
payment and prosecute any action or proceeding involving any of the Collateral;
and where any Collateral is in default, foreclose on and enforce any Liens
securing that Collateral in any manner permitted by law and sell any property
acquired as a result of those enforcement actions.

 

(3)                                  Prepare and
submit for filing Uniform Commercial Code amendment statements evidencing the
assignment to Lender or its designee of any Uniform Commercial Code financing
statement filed in connection with any item of Collateral.

 

(4)                                  Subject to the
rights of the lenders under the GPFA Term Loan, act, or contract with a third
party to act at Borrowers’ expense, as servicer or subservicer of Collateral
requiring servicing and perform all obligations required under any Collateral,
including Servicing Contracts and Purchase Commitments.

 

10-3

 

(5)                                  Require
Borrowers to assemble and make available to Credit Agent the Collateral and all
related books and records at a place designated by Credit Agent.

 

(6)                                  Enter onto
property where any Collateral or related books and records are located and take
possession of those items with or without judicial process; and obtain access
to Borrower’s respective data processing equipment, computer hardware and
software relating to the Collateral and use all of the foregoing and the
information contained in the foregoing in any manner Credit Agent deems
necessary for the purpose of effectuating its rights under this Agreement and
any other Loan Document.

 

(7)                                  Before the
disposition of the Collateral, prepare it for disposition in any manner and to
the extent Credit Agent deems appropriate.

 

(8)                                  Exercise all
rights and remedies of a secured creditor under the Uniform Commercial Code of
Massachusetts or other applicable law, including selling or otherwise disposing
of all or any portion of the Collateral at one or more public or private sales,
whether or not the Collateral is present at the place of sale, for cash or
credit or future delivery, on terms and conditions and in the manner as Credit
Agent may determine, including sale under any applicable Purchase Commitment.
Borrower waives any right it may have to prior notice of the sale of all or any
portion of the Collateral to the extent allowed by applicable law. If notice is
required under applicable law, Credit Agent will give the applicable Borrower
not less than 10 days’ notice of any public sale or of the date after which any
private sale may be held. Borrowers agree that 10 days’ notice is reasonable
notice. Credit Agent may, without notice or publication, adjourn any public or
private sale one or more times by announcement at the time and place fixed for
the sale, and the sale may be held at any time or place announced at the
adjournment. In the case of a sale of all or any portion of the Collateral on
credit or for future delivery, the Collateral sold on those terms may be
retained by Credit Agent until the purchaser pays the selling price or takes
possession of the Collateral. Credit Agent has no liability to either Borrower
if a purchaser fails to pay for or take possession of Collateral sold on those
terms, and in the case of any such failure, Credit Agent may sell the
Collateral again upon notice complying with this Section.

 

(9)                                  Instead of or
in conjunction with exercising the power of sale authorized by Section 10.2(c)(8),
Credit Agent may proceed by suit at law or in equity to collect all amounts due
on the Collateral, or to foreclose Credit Agent’s Lien on and sell all or any
portion of the Collateral pursuant to a judgment or decree of a court of
competent jurisdiction.

 

(10)                            Proceed against
Borrowers, or either of them, on the Warehousing Notes.

 

(11)                            Retain all
excess proceeds from the sale or other disposition of the Collateral (“Liquidation
Proceeds”), and apply them to the payment of the Obligations under Section 11.12(c).

 

10-4

 

10.2(d)                     Neither Credit Agent nor any
Lender will incur any liability as a result of the commercially reasonable sale
or other disposition of all or any portion of the Collateral at any public or
private sale or other disposition. Each Borrower waives (to the extent
permitted by law) any claims it may have against Credit Agent or any Lender
arising by reason of the fact that the price at which the Collateral may have
been sold at a private sale was less than the price that might have been
obtained at a public sale, or was less than the aggregate amount of the
outstanding Warehousing Advances, accrued and unpaid interest on those
Warehousing Advances, and unpaid fees, even if Credit Agent accepts the first
offer received and does not offer the Collateral to more than one offeree. Each
Borrower agrees that any sale of Collateral under the terms of a Purchase
Commitment, or any other disposition of Collateral arranged by Borrower,
whether before or after the occurrence of an Event of Default, will be deemed
to have been made in a commercially reasonable manner.

 

10.2(e)                      Each Borrower
acknowledges that Mortgage Loans are collateral of a type that is the subject
of widely distributed standard price quotations and that Mortgage-backed Securities
are collateral of a type that is customarily sold on a recognized market. Each
Borrower waives any right it may have to prior notice of the sale of Pledged
Securities, and agrees that Credit Agent or any Lender may purchase Pledged
Loans and Pledged Securities at a private sale of such Collateral.

 

10.2(f)                        Each Borrower
specifically waives and releases (to the extent permitted by law) any equity or
right of redemption, stay or appraisal that either Borrower has or may have
under any rule of law or statute now existing or adopted after the date of
this Agreement, and any right to require Credit Agent or any Lender to (1) proceed
against any Person, (2) proceed against or exhaust any of the Collateral
or pursue its rights and remedies against the Collateral in any particular
order or (3) pursue any other remedy within its power. Neither Credit
Agent nor any Lender is required to take any action to preserve any rights of
Borrower against holders of mortgages having priority to the Lien of any
Mortgage or Security Agreement included in the Collateral or to preserve
Borrower’s rights against other prior parties.

 

10.2(g)                     Credit Agent or a Lender
may, but is not obligated to, advance any sums or do any act or thing necessary
to uphold or enforce the Lien and priority of, or the security intended to be
afforded by, any Mortgage or Security Agreement included in the Collateral,
including payment of delinquent taxes or assessments and insurance premiums.
All advances, charges, costs and expenses, including reasonable attorneys’ fees
and disbursements, incurred or paid by Credit Agent or a Lender in exercising
any right, power or remedy conferred by this Agreement, or in the enforcement
of this Agreement, together with interest on those amounts at the Default Rate,
from the time paid by Credit Agent or a Lender until repaid by Borrowers, are
deemed to be principal outstanding under this Agreement and the Warehousing
Notes.

 

10.2(h)                     No failure or delay on the
part of Credit Agent or any Lender to exercise any right, power or remedy
provided in this Agreement or under any other Loan Document, at law or in
equity, will operate as a waiver of that right, power or remedy. No single or
partial exercise by Credit Agent or any Lender of any right, power or remedy
provided under 

 

10-5

 

this Agreement or any other
Loan Document, at law or in equity, precludes any other or further exercise of
that right, power or remedy by Credit Agent or any Lender, or Credit Agent’s or
any Lender’s exercise of any other right, power or remedy. Without limiting the
foregoing, each Borrower waives all defenses based on the statute of
limitations to the extent permitted by law. The remedies provided in this
Agreement and the other Loan Documents are cumulative and are not exclusive of
any remedies provided at law or in equity.

 

10.2(i)                         Each Borrower
grants Credit Agent a license or other right to use, without charge, Borrower’s
computer programs, other programs, labels, patents, copyrights, rights of use
of any name, trade secrets, trade names, trademarks, service marks and
advertising matter, or any property of a similar nature, as it pertains to the
Collateral, in advertising for sale and selling any of the Collateral and
Borrower’s rights under all licenses and all other agreements related to the
foregoing inure to Credit Agent’s and Lender’s benefit until the Obligations
are paid in full.

 

10.3                        Insufficiency of Proceeds

 

If
Liquidation Proceeds are insufficient to cover the costs and expenses of the
sale, disposition or other enforcement rights with respect to the Collateral
and payment in full of all Obligations (applied in accordance with Section 11.12(c)),
Borrowers are jointly and severally liable for the deficiency.  Nothing herein shall require Credit Agent or
Lenders to look to all or any portion of the Collateral prior to, or in lieu
of, pursuing any other right or remedy, any or all of which may be pursued in
any order and at any time, including at the same time.

 

10.4                        Credit Agent Appointed Attorney-in-Fact

 

Each
Borrower appoints Credit Agent its attorney-in-fact, with full power of
substitution, for the purpose of carrying out the provisions of this Agreement,
the Warehousing Notes and the other Loan Documents and taking any action and
executing any instruments that Credit Agent deems necessary or advisable to
accomplish that purpose. Each Borrower’s appointment of Credit Agent as
attorney-in-fact is irrevocable and coupled with an interest. Without limiting
the generality of the foregoing, Credit Agent may give notice of its security
interest in and Lien on the Collateral to any Person, either in a Borrower’s
name or in its own name, endorse all Pledged Loans or Pledged Securities
payable to the order of either Borrower, change or cause to be changed the
book-entry registration or name of subscriber or Investor on any Pledged
Security, prepare and submit for filing Uniform Commercial Code amendment
statements with respect to any Uniform Commercial Code financing statements
filed in connection with any item of Collateral or receive, endorse and collect
all checks made payable to the order of a Borrower representing payment on
account of the principal of or interest on, or the proceeds of sale of, any of
the Pledged Loans or Pledged Securities and give full discharge for those
transactions.  The foregoing appointment
shall be effective immediately with respect to ministerial matters, and upon
the occurrence of an Event of Default with respect to all other matters.

 

10-6

 

10.5                        Right of Set-Off

 

Each
Borrower hereby grants to Credit Agent and each Lender a continuing lien,
security interest and right of setoff as security for all liabilities and
obligations to Credit Agent and each Lender, whether now existing or hereafter
arising, upon and against all deposits, credits, collateral and property, now
or hereafter in the possession, custody safekeeping or control of Credit Agent
or any Lender or any entity under the control of Credit Agent or such Lender,
and their respective successors and assigns or in transit to any of them, other
than third-party custodial accounts maintained by Borrower at Credit Agent or
any Lender.  If Borrowers default in the
payment of any Obligation or in the performance of any of its duties under the
Loan Documents, Credit Agent or any applicable Lender may, without Notice to or
demand on either Borrower (which Notice or demand each Borrower expressly
waives), set-off, appropriate or apply any property of either Borrower held at
any time by Credit Agent or any applicable Lender, or any indebtedness at any
time owed by Credit Agent or any applicable Lender to or for the account of a
Borrower, against the Obligations, whether or not those Obligations have
matured.  ANY AND ALL RIGHTS TO REQUIRE
CREDIT AGENT OR ANY APPLICABLE LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH
RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOANS, PRIOR TO EXERCISING
ITS RIGHT OF SETOFF WITH RESPECT TO SUCH NON-CUSTODIAL DEPOSITS, CREDITS OR
OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY
WAIVED.

 

End of Article 10

 

10-7

 

11.                               THE CREDIT AGENT AND THE LENDERS

 

11.1                        Appointment

 

Each
Lender hereby irrevocably designates and appoints Bank of America as Credit
Agent of such Lender to act as specified herein and in the other Loan
Documents, and each such Lender hereby irrevocably authorizes the Credit Agent
to take such actions, exercise such powers and perform such duties as are
expressly delegated to or conferred upon the Credit Agent by the terms of this
Agreement and the other Loan Documents, together with such other powers as are
reasonably incidental thereto.  The
Credit Agent agrees to act as such upon the express conditions contained in
this Section 11. The Credit Agent shall not have any duties or
responsibilities except those expressly set forth herein or in the other Loan
Documents, nor shall it have any fiduciary relationship with any Lender, and no
implied covenants, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or otherwise exist against the Credit  Agent. 
The provisions of this Section 11 are solely for the benefit of the
Credit Agent and the Lenders, and neither the Borrowers nor any other Person
shall have any rights as third party beneficiaries of any of the provisions
hereof.

 

11.2                        Duties of Credit Agent; Administration of Loan by Credit Agent

 

The
Credit Agent shall be responsible for administering the Loan on a day-to-day
basis.  In the exercise of such
administrative duties, the Credit Agent shall use the same diligence and
standard of care that is customarily used by the Credit  Agent with respect to similar loans held by
the Credit Agent solely for its own account.

 

11.3                        Delegation of Duties

 

The
Credit Agent may execute any of its duties under this Agreement or any other
Loan Document by or through its agents or attorneys-in-fact, and shall be
entitled to the advice of counsel concerning all matters pertaining to its rights
and duties hereunder or under the Loan Documents.  The Credit Agent shall not be responsible to
the Lenders for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care.

 

11.4                        Exculpatory
Provisions

 

Neither
the Credit Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates shall be liable to the Lenders for any action
lawfully taken or omitted to be taken by it or them under or in connection with
this Agreement or the other Loan Documents, except for its or their gross
negligence or willful misconduct, as finally determined by a court of competent
jurisdiction.  Neither the Credit Agent
nor any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates shall be responsible to the Lenders for or have any duty to the
Lenders to ascertain, inquire into, or verify (i) any recital, statement,
representation or warranty made by a Borrower or any of their officers or
agents contained in this Agreement or the other Loan Documents or in any
certificate or other document delivered in connection therewith; (ii) the
performance or observance of any of the covenants or agreements contained in,
or the conditions of, this Agreement or the other Loan Documents; (iii) the
state or condition of any properties of either Borrower or any other obligor
hereunder constituting Collateral for the Obligations of either Borrower
hereunder, or any information contained in the books or records 

 

11-1

 

of
the Borrower; (iv) the validity, enforceability, collectability,
effectiveness or genuineness of this Agreement or any other Loan Document or
any other certificate, document or instrument furnished in connection
therewith; or (v) the validity, priority or perfection of any lien
securing or purporting to secure the Obligations or the value or sufficiency of
any of the Collateral.

 

11.5                        Reliance by Credit Agent

 

The
Credit Agent shall be entitled to rely, and shall be fully protected in relying,
upon any notice, consent, certificate, affidavit, or other document or writing
believed by it to be genuine and correct and to have been signed, sent or made
by the proper person or persons, and upon the advice and statements of legal
counsel (including, without, limitation, counsel to the Borrowers), independent
accountants and other experts selected by the Credit Agent.  The Credit Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate or it shall first be indemnified to
its satisfaction by the Lenders against any and all liability and expense which
may be incurred by it by reason of the taking or failing to take any such
action.  With respect to the Lenders, the
Credit Agent shall in all cases be fully protected in acting, or in refraining
from acting, under this Agreement and the other Loan Documents in accordance
with any written request of the Required Lenders, and each such request of the
Required Lenders, and any action taken or failure to act by the Credit Agent
pursuant thereto, shall be binding upon all of the Lenders; provided, however,
that the Credit Agent shall not be required in any event to act, or to refrain
from acting, in any manner which is contrary to the Loan Documents or to
applicable law, or without specific indemnification satisfactory to Credit
Agent in its discretion.

 

11.6                        Notice of Default

 

The
Credit Agent shall not be deemed to have knowledge or notice of the occurrence
of any Default or Event of Default unless the Credit Agent has actual knowledge
of the same or has received notice from a Lender or the Borrower referring to
this Agreement, describing such Default or Event of Default and stating that
such notice is a “notice of default”.  In
the event that the Credit Agent obtains such actual knowledge or receives such
a notice, the Credit Agent shall give prompt notice thereof to each of the
Lenders.  Credit Agent may (but shall not
be obligated to) take such action, or refrain from taking such action, with
respect to any such Default or Event of Default as it shall deem advisable in
the best interest of the Lenders.  If a
Lender shall have knowledge of a Default or an Event of Default, it shall
forthwith give Notice thereof to the Credit Agent. If the Credit Agent shall
have knowledge of a Default or Event of Default, it shall forthwith give Notice
thereof to each Lender and to Borrowers.

 

11.7                        Lenders’ Credit Decisions

 

Each
Lender acknowledges that it has, independently and without reliance upon the
Credit Agent or any other Lender, and based on the financial statements
prepared by the Borrowers and such other documents and information as it has
deemed appropriate, made its own credit analysis and investigation into the
business, assets, operations, property, and financial and other condition of
the Borrowers and has made its own decision to enter into this Agreement and
the other Loan Documents.  Each Lender
also acknowledges that it will, independently and without reliance 

 

11-2

 

upon
the Credit Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in determining whether or not conditions precedent to funding
any Loan hereunder have been satisfied and in taking or not taking any action
under this Agreement and the other Loan Documents.

 

11.8                        Credit Agent’s Reimbursement and Indemnification

 

The
Lenders agree to reimburse and indemnify the Credit Agent, ratably in
proportion to their respective Commitment Percentages, for (i) any
out-of-pocket expenses not reimbursed by the Borrowers for which the Credit
Agent is entitled to reimbursement by the Borrowers under this Agreement or the
other Loan Documents, (ii) any other expenses incurred by the Credit Agent
on behalf of the Lenders in connection with the preparation, execution,
delivery, administration, amendment, waiver and/or enforcement of this
Agreement and the other Loan Documents, and (iii) any liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind and nature whatsoever which may imposed on,
incurred by or asserted against the Credit Agent in any way relating to or
arising out of this Agreement or the other Loan Documents or any other document
delivered in connection therewith or any transaction contemplated thereby, or
the enforcement of any of the terms hereof or thereof, provided that no Lender
shall be liable for any of the foregoing to the extent that they arise from the
gross negligence or willful misconduct of the Credit Agent (or, subject to the
last sentence of Section 11.3, of its agents or permitted delegees), as
finally determined by a court of competent jurisdiction.  If any indemnity furnished to the Credit
Agent for any purpose shall, in the opinion of the Credit Agent, be
insufficient or become impaired, the Credit Agent may call for additional
indemnity and cease, or not commence, to do the action indemnified against
until such additional indemnity is furnished.

 

11.9                        Credit Agent in its Individual Capacity

 

With
respect to its Warehousing Commitment as a Lender, and the Warehousing Advances
made by it and the Warehousing Note issued to it, the Credit Agent shall have
the same rights and powers hereunder and under any other Loan Document as any
Lender and may exercise the same as though it were not the Credit Agent, and
the term “Lender” or “Lenders” shall, unless the context otherwise indicates,
include the Credit Agent in its individual capacity.  The Credit Agent and its subsidiaries and
affiliates may accept deposits from, lend money to, and generally engage in any
kind of commercial or investment banking, trust, advisory or other business
with the Borrowers or any subsidiary or affiliate of the Borrowers as if it
were not the Credit Agent hereunder.

 

11.10                 Successor Credit Agent

 

The
Credit Agent may resign at any time by giving forty-five (45) days’ prior
written notice to the Lenders and Borrowers. 
Upon any such resignation, the Required Lenders shall have the right to
appoint a successor Credit Agent, and, provided no Default or Event of Default
has occurred and is continuing, the Borrowers shall have the right to approve
such successor Credit Agent, provided further, such approval shall not be
unreasonably withheld.  If no successor
Credit Agent shall have been so appointed by the Required Lenders and accepted
such appointment within forty-five (45) days after the retiring Credit Agent’s
giving notice of 

 

11-3

 

resignation
then the retiring Credit Agent may appoint, on behalf of the Borrowers and the
Lenders, a successor Credit Agent.  Upon
the acceptance of any appointment as Credit Agent hereunder by a successor
Credit Agent, such successor Credit Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Credit Agent, and the retiring Credit Agent shall be discharged from its duties
and obligations hereunder and under the other Loan Documents.  After any retiring Credit Agent’s resignation
hereunder, the provisions of this Section 11 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as the Credit Agent hereunder.

 

11.11                 Duties in Case of Enforcement

 

In
case one or more Events of Default have occurred and shall be continuing, and
whether or not acceleration of the Obligations shall have occurred, the Credit
Agent may, and shall, at the request of the Required Lenders, and provided that
the Lenders have given to the Credit Agent such additional indemnities and
assurances against expenses and liabilities as the Credit Agent may reasonably
request, proceed to enforce the provisions of this Agreement and the other Loan
Documents respecting the foreclosure of mortgages, the sale or other
disposition of all or any part of the Collateral and the exercise of any other
legal or equitable rights or remedies as it may have hereunder or under any
other Loan Document or otherwise by virtue of applicable law, or to refrain
from so acting if similarly requested by the Required Lenders.  The Credit Agent shall be fully protected
with respect to the Lenders in so acting or refraining from acting upon the
instruction of the Required Lenders, and such instruction shall be binding upon
all the Lenders.  The Required Lenders
may direct the Credit Agent in writing as to the method and the extent of any
such foreclosure, sale or other disposition or the exercise of any other right
or remedy, the Lenders hereby agreeing to indemnify and hold the Credit Agent
harmless from all costs and liabilities incurred in respect of all actions
taken or omitted in accordance with such direction, provided that the Credit
Agent need not comply with any such direction to the extent that the Credit
Agent reasonably believes the Credit Agent’s compliance with such direction to
be unlawful or commercially unreasonable in any applicable jurisdiction.  The Credit Agent may, in its discretion, but
without obligation, in the absence of direction from the Required Lenders, take
such interim actions as it believes necessary to preserve the rights of the
Lenders hereunder and in and to any Collateral securing the Obligations,
including, but not limited to, petitioning a court for injunctive relief,
appointment of a receiver or preservation of the proceeds of any Collateral.  Each of the Lenders acknowledges and agrees
that no individual Lender may, except as expressly provided in this Agreement,
separately enforce or exercise any of the provisions of any of the Loan
Documents, including, without limitation, the Notes, other than through the
Credit Agent.

 

11.12                 Respecting Loans and Payments

 

11.12(a)                Nature of Obligations of
Lenders.  The  obligations of the Lenders hereunder are
several and not joint.  Failure of any
Lender to fulfill its obligations hereunder shall not result in any other
Lender becoming obligated to advance more than its Commitment Percentage of the
Loan, nor shall such failure release or diminish the obligations of any other
Lender to fund its  Commitment Percentage
provided herein.

 

11-4

 

11.12(b)               Payments to Credit Agent.  All payments of principal of and interest on
the Loan or the Warehousing Notes shall be made to the Credit Agent by the
Borrowers or any other obligor for the account of the Lenders in immediately
available funds as provided in the Warehousing Notes and this Agreement. Except
as otherwise expressly provided herein, the Credit Agent agrees to use its
reasonable best efforts to promptly to distribute to each Lender, on the same
Business Day upon which each such payment is made (if received prior to 2:00 p.m.
on such Business Day), such Lender’s proportionate share of each such payment
in immediately available funds excluding Liquidation Proceeds which shall be
distributed in accordance with Section 11.12(c), below.  The Credit Agent shall upon each distribution
promptly notify the Borrowers of such distribution and each Lender of the
amounts distributed to it applicable to principal of, and interest on, the
proportionate share held by the applicable Lender.  Each payment to the Credit Agent under the
first sentence of this Section shall constitute a payment by the Borrowers
to each Lender in the amount of such Lender’s proportionate share of such
payment, and any such payment to the Credit Agent shall not be considered outstanding
for any purpose after the date of such payment by the Borrowers to the Credit
Agent without regard to whether or when the Credit Agent makes distribution
thereof as provided above.  If any
payment received by the Credit Agent from a Borrower is insufficient to pay
both all accrued interest and all principal then due and owing, the Credit
Agent shall first apply such payment to all outstanding interest of the
Borrowers until paid in full and shall then apply the remainder of such payment
to all principal of such Borrower then due and owing, and shall distribute the
payment to each Lender accordingly.

 

11.12(c)                Distribution of Liquidation
Proceeds.  Subject to
the terms and conditions hereof, the Credit Agent shall distribute all
Liquidation Proceeds in the order and manner set forth below:

 

First:                                                                     To the Credit
Agent, towards any fees and any expenses for which the Credit Agent is entitled
to reimbursement under this Agreement or the other Loan Documents not
theretofore paid to the Credit Agent.

 

Second:                                                     To all
applicable Lenders in accordance with their proportional share based upon their
respective Commitment Percentages until all Lenders have been reimbursed for
all expenses which such Lenders have previously paid to the Credit Agent and
not theretofore paid to such Lenders.

 

Third:                                                                To all Lenders
in accordance with their proportional share based upon their respective
Commitment Percentages until all Lenders have been paid in full all principal
and interest due to such Lenders under the Loan, with each Lender applying such
proceeds for purposes of this Agreement first against the outstanding principal
balance due to such Lender under the Loan and then to accrued and unpaid
interest due under the Loan.

 

11-5

 

Fourth:                                                         To all
applicable Lenders in accordance with their proportional share based upon their
respective Commitment Percentages until all Lenders have been paid in full all
other amounts due to such Lenders under the Loan including, without limitation,
any costs and expenses incurred directly by such Lenders to the extent such
costs and expenses are reimbursable to such Lenders by the Borrower under the
Loan Documents.

 

Fifth:                                                                    To any
applicable Lender (including the Credit Agent), or applicable Affiliate thereof,
any costs and expenses incurred directly by such Lender or Affiliate as a
result of any breach of any Hedging Arrangement specifically hedging Borrowers’
interest bearing obligations under this Agreement and of which Hedging
Arrangement Credit Agent had been provided Notice (and all details thereof)
prior to its establishment.

 

Sixth:                                                                   To the
Borrowers or such third parties as may be entitled to claim such Liquidation
Proceeds.

 

11.12(d)               Adjustments.  If, after Credit Agent has paid each Lender’s
proportionate share of any payment received or applied by Credit Agent in
respect of the Loan, that payment is rescinded or must otherwise be returned or
paid over by Credit Agent, whether pursuant to any bankruptcy or insolvency
law, sharing of payments clause of any loan agreement or otherwise, each Lender
shall, at Credit Agent’s request, promptly return its proportionate share of
such payment or application to Credit Agent, together with the Lender’s
proportionate share of any interest or other amount required to be paid by
Credit Agent with respect to such payment or application.

 

11.12(e)                Sharing of Payments.  Each of the Lenders agrees with each other
Lender that if such Lender shall receive from a Borrower, whether by voluntary
payment, exercise of the right of setoff, counterclaim, cross action,
enforcement of the claim evidenced by the Warehousing Notes held by such
Lender, proceedings against a Borrower at law or in equity, or proof thereof in
bankruptcy, reorganization, liquidation, receivership or similar proceedings,
or otherwise, and shall retain and apply to the payment of the Warehousing
Notes of the Borrowers held by such Lender any amount in excess of its ratable
portion of the payments received by all of the Lenders with respect to the Warehousing
Notes held by all of the Lenders, such Lender will give Credit Agent prompt
Notice thereof, and will make such disposition and arrangements with the other
Lenders with respect to such excess, either by way of distribution, pro tanto
assignment of claims, subrogation or otherwise as shall result in each Lender
receiving in respect of the Warehousing Notes held by it its proportionate
payment as contemplated by this Agreement; provided 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.

 

11.12(f)                  Distribution by Credit Agent.  If in the opinion of the Credit Agent
distribution of any amount received by it in such capacity hereunder or under
the Warehousing Notes or 

 

11-6

 

under any of the other Loan
Documents might involve any liability, it may refrain from making distribution
until its right to make distribution shall have been adjudicated by a court of
competent jurisdiction or has been resolved by the mutual consent of all
Lenders.  In addition, the Credit Agent
may request full and complete indemnity, in form and substance satisfactory to
it, prior to making any such distribution. 
If a court of competent jurisdiction shall adjudge that any amount
received and distributed by the Credit Agent is to be repaid, each person to
whom any such distribution shall have been made shall either repay to the
Credit Agent its proportionate share of the amount so adjudged to be repaid or
shall pay over to the same in such manner and to such persons as shall be
determined by such court.

 

11.12(g)               Delinquent Lender.

 

(1)                                  If for any
reason any Lender shall fail or refuse to make available to Credit Agent its
pro rata share of any Warehousing Advances, expenses or setoff (a “Delinquent
Lender”), or, unless subject to a bona fide dispute shall fail or refuse to
abide by any other of its obligations under this Agreement and, in any of the
foregoing circumstances such failure or refusal is not cured within ten (10)
days after receipt from the Credit Agent of written notice thereof, then, in
addition to the rights and remedies that may be available to Credit Agent,
other Lenders, the Borrowers or any other party at law or in equity, and not at
limitation thereof, (i) such Delinquent Lender’s right to participate in the
administration of, or decision-making rights related to, the Loans, this
Agreement or the other Loan Documents shall be suspended during the pendency of
such failure or refusal, and (ii) a Delinquent Lender shall be deemed to have
assigned any and all payments due to it from the Borrowers, whether on account
of outstanding Warehousing Advances, interest, fees or otherwise, to the
remaining non-delinquent Lenders for application to, and reduction of, their
proportionate shares of all outstanding Loans until, as a result of application
of such assigned payments the Lenders’ respective pro rata shares of all
outstanding Loans shall have returned to those in effect immediately prior to
such delinquency and without giving effect to the nonpayment causing such
delinquency.  The Delinquent Lender’s
decision-making and participation rights and rights to payments as set forth in
clauses (i) and (ii) hereinabove shall be restored only upon the payment by the
Delinquent Lender of its pro rata share of any Loans or expenses as to which it
is delinquent, together with interest thereon at the Default Rate from the date
when originally due until the date upon which any such amounts are actually
paid.

 

(2)                                  The
non-delinquent Lenders shall also have the right, but not the obligation, in
their respective, sole and absolute discretion, to acquire for no cash
consideration, (pro rata, based on the respective
Warehousing Commitments of those Lenders electing to exercise such right) the
Delinquent Lender’s Commitment to fund future Loans (the “Future Commitment”).  Upon any such purchase of the pro  rata
share of any Delinquent Lender’s Future Commitment, the Delinquent Lender’s
share in future Loans and its rights under the Loan Documents with respect
thereto shall terminate on the date of purchase, and the Delinquent Lender
shall promptly execute all documents reasonably requested to surrender and
transfer 

 

11-7

 

such interest, including, if
so requested, an Assignment and Acceptance. 
Each Delinquent Lender shall indemnify Credit Agent and each
non-delinquent Lender from and against any and all loss, damage or expenses,
including but not limited to reasonable attorneys’ fees and funds advanced by
Credit Agent or by any non-delinquent Lender, on account of a Delinquent Lender’s
failure to timely fund its pro  rata share of a Loan or to
otherwise perform its obligations under the Loan Documents.

 

(3)                                  In the event
that the non-delinquent Lenders elect not to acquire the Future Commitment,
then, so long as no Default or Event of Default has occurred and is continuing,
the Borrowers may either (i) demand that the Delinquent Lender, and upon
such demand the Delinquent Lender shall, promptly assign its Commitment
Percentage of the Loan to an Assignee subject to and in accordance with the
provisions of Section 11.13(a) for a purchase price equal to the aggregate
principal balance of the Loan then owing to the Delinquent Lender plus any
accrued but unpaid interest thereon and accrued but unpaid fees owing to the
Delinquent Lender, or (ii)  pay to the Delinquent Lender the aggregate principal
balance of the Loan then owing to the Delinquent Lender plus any accrued but
unpaid interest thereon and accrued but unpaid fees owing to the Delinquent
Lender, whereupon the Delinquent Lender shall no longer be a party hereto or
have any rights or obligations hereunder or under any of the other Loan
Documents.  Each of the Credit Agent and
the Delinquent Lender shall reasonably cooperate in effectuating the
replacement of such Delinquent Lender under this Section, but at no time shall
the Credit Agent, such Delinquent Lender nor any other Lender be obligated in
any way whatsoever to initiate any such replacement or to assist in finding an
Assignee.  The exercise by Borrowers of
their rights under this Section shall be at Borrowers’ sole cost and expenses
and at no cost or expense to the Credit Agent, the Delinquent Lender or any of
the other Lenders.

 

11.12(h)               Holders.  The Credit Agent may deem and treat the payee
of any Warehousing Note as the owner thereof for all purposes hereof unless and
until a written notice of the assignment, transfer or endorsement thereof, as
the case may be, shall have been filed with the Credit Agent.  Any request, authority or consent of any
person or entity who, at the time of making such request or giving such
authority or consent, is the holder of any Warehousing Note shall be conclusive
and binding on any subsequent holder, transferee or endorsee, as the case may
be, of such Warehousing Note or of any Warehousing Note or Warehousing Notes
issued in exchange therefor.

 

11.13                 Assignment and Participation

 

11.13(a)                Assignment by Lenders.  Each Lender may assign to one or more banks
or other financial institutions (each an “Assignee”) all or a portion of
its interests, rights and obligations under this Agreement (including all or a
portion of its Commitment Percentage and Warehousing Commitment and the same
portion of the Loan at the time owing to it and the Warehousing Notes held by
it), upon satisfaction of the following conditions: (a) each of the Credit
Agent and the Borrowers shall have given its prior written consent to such
assignment (provided that, in the case of the Borrowers, such 

 

11-8

 

consent will not be
unreasonably withheld and shall not be required if a Default or Event of
Default shall have occurred and be continuing); (b) each such assignment shall
be of a constant, and not a varying, percentage of all the assigning Lender’s
rights and obligations under this Agreement, (c)  prior to the occurrence of an Event of Default,
each assignment shall be in an amount that is at least $10,000,000.00 and is a
whole multiple of $250,000.00, and (d) the parties to such assignment shall
execute and deliver to the Credit Agent, for recording in the Register (as
hereinafter defined), an Assignment and Acceptance, substantially in the form
of Exhibit M hereto (an “Assignment and Acceptance”), together
with any Warehousing Notes subject to such assignment.  Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and
Acceptance, which effective date shall be at least five (5) Business Days after
the execution thereof, (x) the assignee thereunder shall be a party hereto and,
to the extent provided in such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder, and (y) the assigning Lender shall, to the
extent provided in such assignment and upon payment to the Credit Agent of the
registration fee referred to in Section 11.13(b), be released from its obligations
under this Agreement.

 

11.13(b)               Register.  The Credit Agent shall maintain a copy of
each Assignment and Acceptance delivered to it and a register or similar list
(the “Register”) for the recordation of the names and addresses of the
Lenders and the Commitment Percentage of, and principal amount of the Loan
owing to the Lenders from time to time. 
The entries in the Register shall be conclusive, in the absence of
manifest error, and the Borrowers, the Credit Agent and the Lenders may treat
each person whose name is recorded in the Register as a Lender hereunder for
all purposes of this Agreement.  The
Register shall be available for inspection by each Borrower and the Lenders at
any reasonable time and from time to time upon reasonable prior notice.  Upon each such recordation, the assigning
Lender agrees to pay to the Credit Agent a registration fee in the sum of
$5,000.00.

 

11.13(c)                New Warehousing Notes.  Upon its receipt of an Assignment and
Acceptance executed by the parties to such assignment, together with each
Warehousing Note subject to such assignment, the Credit Agent shall (a) record
the information contained therein in the Register, and (b) give prompt notice
thereof to the Borrowers and the Lenders (other than the assigning Lender).  Within five (5) Business Days after receipt
of such notice, the Borrowers (or W&D, separately, if after the GPF
Transition Period), at their respective own expense, shall execute and deliver
to the Credit Agent, in exchange for each surrendered Warehousing Note, a new
Warehousing Note to the order of such Assignee in an amount equal to the amount
assumed by such Assignee pursuant to such Assignment and Acceptance and, if the
assigning Lender has retained some portion of its obligations hereunder, a new
Warehousing Note to the order of the assigning Lender in an amount equal to the
amount retained by it hereunder.  Such
new Warehousing Notes shall provide that they are replacements for the
surrendered Warehousing Notes, shall be in an aggregate principal amount equal
to the aggregate principal amount of the surrendered Warehousing Notes, shall
be dated the effective date of such Assignment and Acceptance and shall
otherwise be substantially in the form of the assigned Warehousing Notes.  The surrendered Warehousing Notes shall be
cancelled and returned to the Borrower.

 

11-9

 

11.13(d)               Participations.  Each Lender may sell participations to one or
more banks or other financial institutions (each a “Participant”) in all
or a portion of such Lender’s rights and obligations under this Agreement and
the other Loan Documents; provided that (a) each such participation shall be in
a minimum amount of $5,000,000.00, (b) any such sale or participation shall not
affect the rights and duties of the selling Lender hereunder to the Borrowers
or the Credit Agent, and (c) the only rights granted to the Participant
pursuant to such participation arrangements with respect to waivers, amendments
or modifications of the Loan Documents shall be the rights to approve waivers,
amendments or modifications that would reduce the principal of or the interest
rate on any Loans, extend the term or increase the amount of the Warehousing
Commitment of such Lender as it relates to such Participant, reduce the amount
of any commitment fees to which such Participant is entitled or extend any
regularly scheduled payment date for interest.

 

11.13(e)                Disclosure.  The Borrowers agree that, in addition to
disclosures made in accordance with standard and customary banking practices,
any Lender may disclose information obtained by such Lender pursuant to this
Agreement to Assignees or Participants and potential Assignees or Participants
hereunder; provided that such Assignees or Participants or potential Assignees
or potential Participants shall agree (a) to treat in confidence such
information unless such information otherwise becomes public knowledge, (b) not
to disclose such information to a third party, except as required by law or
legal process and (c) not to make use of such information for purposes of
transactions unrelated to such contemplated assignment or participation.

 

11.13(f)                  Miscellaneous Assignment
Provisions.  Any
assigning Lender shall retain its rights to be indemnified pursuant to Section
12.2(b) with respect to any claims or actions arising prior to the date of such
assignment.  If any Assignee is not
incorporated under the laws of the United States of America or any state
thereof, it shall, prior to the date on which any interest or fees are payable
hereunder or under any of the other Loan Documents for its account, deliver to
the Borrower and the Credit Agent certification as to  exemption from deduction or withholding of
any United States federal income taxes.

 

11.13(g)               Assignment by Borrower.  Neither Borrower may assign or transfer any
of its rights or obligations hereunder or any other Loan Document without the
prior written consent of Credit Agent and each of the Lenders.

 

11.14                 Administrative Matters

 

11.14(a)                Amendment, Waiver, Consent,
Etc.  Except as otherwise provided in
this Agreement, no term or provision of this Agreement or any other Loan
Document may be modified, changed, waived, discharged or terminated, nor may
any consent required or permitted by this Agreement or any other Loan Document
be given, unless such modification, change, waiver, discharge, termination or
consent receives the written approval of the Required Lenders.

 

Notwithstanding
the foregoing, any proposed waiver, modification, change, amendment, waiver,
discharge, termination, or consent which would:

 

11-10

 

(1)                                  extend the
Warehousing Maturity Date, the scheduled date for the payment of interest or
fees payable hereunder, or the date for any mandatory payment of principal,
shall require the consent of all Lenders,

 

(2)                                  reduce the
principal of, or rate of interest or fees on, any Lender’s Warehousing Advances
or any Lender’s Warehousing Commitment, shall require the consent of each
affected Lender,

 

(3)                                  modify any Lender’s
Commitment Percentage, shall require the consent of each affected Lender,

 

(4)                                  result in a
Warehousing Advance being made against Collateral which does not satisfy the
applicable requirements of this Agreement, shall require the consent of all
Lenders,

 

(5)                                  modify the
definition of “Required Lenders,” or of the number or percentage of Lenders
that are required to take action under the Loan Documents, shall require the
consent of all Lenders,

 

(6)                                  release any
Pledged Loan, Pledged Security, or other material item of Collateral, except as
expressly contemplated by the Loan Documents or in connection with a sale of
such Collateral permitted hereunder, shall require the consent of all Lenders,

 

(7)                                  amend this
Section 11.14(a), shall require the consent of all Lenders.

 

It
is expressly agreed and understood that (x) the failure by the Required Lenders
to elect to accelerate amounts outstanding hereunder or to terminate the
obligation of the Lenders to make Warehousing Advances hereunder shall not
constitute an amendment or waiver of any term or provision of this Agreement,
and (y) without the consent of the Credit Agent, no such action referred to
above shall amend, modify or waive any provision of this Article or any other
provision of any Loan Document which relates to the rights or obligations of
the Credit Agent.

 

11.14(b)               Deemed Consent or Approval.  With respect to any requested amendment,
waiver, consent or other action which requires the approval of the Required
Lenders or all of the Lenders, as the case may be, in accordance with the terms
of this Agreement, or if the Credit Agent is required hereunder to seek, or
desires to seek, the approval of the Required Lenders or all of the Lenders, as
the case may be, prior to undertaking a particular action or course of conduct,
the Credit Agent in each such case shall provide each Lender with written
notice of any such request for amendment, waiver or consent or any other
requested or proposed action or course of conduct, accompanied by such detailed
background information and explanations as may be reasonably necessary to
determine whether to approve or disapprove such amendment, waiver, consent or
other action or course of conduct.  The
Credit Agent may (but shall not be required to) include in any such notice,
printed in capital letters or boldface type, a legend substantially to the
following effect:

 

11-11

 

“THIS
COMMUNICATION REQUIRES IMMEDIATE RESPONSE. 
FAILURE TO RESPOND WITHIN TEN (10) CALENDAR DAYS FROM THE RECEIPT OF
THIS COMMUNICATION SHALL CONSTITUTE A DEEMED APPROVAL BY THE ADDRESSEE OF THE
ACTION REQUESTED BY THE BORROWERS OR THE COURSE OF CONDUCT PROPOSED BY THE
CREDIT AGENT AND RECITED ABOVE,”

 

and
if the foregoing legend is included by the Credit Agent in its communication, a
Lender shall be deemed to have approved or consented to such action or course
of conduct for all purposes hereunder if such Lender fails to object to such
action or course of conduct by written notice to the Credit Agent within ten
(10) calendar days of such Lender’s receipt of such notice.

 

End of Article 11

 

11-12

 

12.                               MISCELLANEOUS

 

12.1                        Notices

 

Except
where telephonic or facsimile notice is expressly authorized by this Agreement,
all communications required or permitted to be given or made under this
Agreement (“Notices”) must be in writing and must be sent by manual
delivery, overnight courier or United States mail (postage prepaid), addressed
as follows (or at such other address as may be designated by Borrower or Lender
in a Notice to the other):

 

	
  If
  to GPF:

  	
   

  	
  Green
  Park Financial Limited Partnership

  7501
  Wisconsin Avenue

  Suite
  1200

  Bethesda,
  MD 20814-6531

  Attention:
  Deborah A. Wilson, CFO

  Facsimile:
  (301) 634-2150

  
	
   

  	
   

  	
   

  
	
  If
  to W&D 

  	
   

  	
  Walker
  & Dunlop, LLC

  7501
  Wisconsin Avenue

  Suite
  1200

  Bethesda,
  MD 20814-6531

  Attention:
  Deborah A. Wilson, CFO

  Facsimile:
  (301) 634-2150

  
	
   

  	
   

  	
   

  
	
  In
  each case with a copy to 

  	
   

  	
  Morgan,
  Lewis & Bockius LLP

  1701
  Market Street

  Philadelphia,
  PA 19103-2921

  Attention:
  Michael J. Pedrick

  Facsimile:
  (215) 963-5001

  
	
   

  	
   

  	
   

  
	
  If
  to Credit Agent:

  	
   

  	
  Bank
  of America, N.A.

  Mail
  Stop: MA5-503-04-16

  One
  Federal Street

  Boston,
  MA 02110

  Attention:
  Jane Huntington

  Facsimile:
  (617) 346-5025

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
  Riemer
  & Braunstein LLP

  Three
  Center Plaza

  Boston,
  MA 02108

  Attention:
  Ronald N. Braunstein, Esquire

  Facsimile:
  (617) 880-3456

  
	
   

  	
   

  	
   

  
	
  If
  to any Lender:

  	
   

  	
  at
  the address set forth for such Lender on

  Exhibit N  hereto

  

 

All
periods of Notice will be measured from the date of delivery if delivered
manually or by facsimile, from the first Business Day after the date of sending
if sent by overnight courier or 

 

12-1

 

from
4 days after the date of mailing if sent by United States mail, except that
Notices to Credit Agent under Article 2 and Section 3.3(e) will be deemed to
have been given only when actually received by Credit Agent. Each Borrower
authorizes Credit Agent to accept Borrower’s Warehousing Advance Requests,
shipping requests, wire transfer instructions, security delivery instructions
and other routine communications concerning the Warehousing Commitment and the
Collateral transmitted to Credit Agent by electronic transmission (including
facsimile or e-mail) and those documents, when transmitted to Credit Agent by
electronic transmission have the same force and effect as the originals.

 

12.2        Reimbursement Of Expenses; Indemnity

 

12.2(a)                      Whether or not
the transactions contemplated hereby shall be consummated, Borrowers jointly
and severally agrees to pay promptly: (i) all the actual and reasonable
out-of-pocket costs and expenses of Credit Agent and each Lender for
preparation of the Loan Documents and any consents, amendments, waivers, or
other modifications thereto; (ii) the reasonable fees, expenses, and
disbursements of counsel to Credit Agent and each Lender in connection with the
negotiation, preparation, execution, and administration of the Loan Documents
and any consents, amendments, waivers, or other modifications thereto and any
other documents or matters requested by either Borrower; (iii) all other actual
and reasonable out-of-pocket costs and expenses incurred by Credit Agent and
each Lender in connection with the establishment of the facility, the
syndication of the Warehousing Commitment and the negotiation, preparation, and
execution of the Loan Documents and any consents, amendments, waivers, or other
modifications thereto and the transactions contemplated thereby; and (iv) all
reasonable out-of-pocket expenses (including reasonable attorneys  fees and costs, which attorneys may be
employees of Credit Agent or a Lender and the fees and costs of appraisers,
brokers, investment bankers or other experts retained by Credit Agent or any
Lender) incurred by Credit Agent and each Lender in connection with (x) the
enforcement of or preservation of rights under any of the Loan Documents
against either Borrower or any other Person, or the administration thereof, (y)
any refinancing or restructuring of the credit arrangements provided under this
Agreement in the nature of a “work-out” or pursuant to any insolvency or
bankruptcy proceedings, and (z) any litigation, proceeding or dispute whether
arising hereunder or otherwise, in any way related to Credit Agent’s or any
Lender’s relationship with either 
Borrower, except to the extent arising out of such Person’s bad faith,
gross negligence, willful misconduct or material breach of this Agreement or
any other Loan Document, as finally determined by a court of competent
jurisdiction. The covenants of this Section shall survive payment or
satisfaction of payment of amounts owing with respect to the Warehousing Notes.
The amount of all such expenses shall, until paid, bear interest at the rate
applicable to principal hereunder (including the Default Rate) and be an
Obligation secured by any Collateral.

 

12.2(b)                     Borrowers jointly and
severally shall indemnify and hold harmless Credit Agent, Lenders and their
respective parents, affiliates, officers, directors, employees, attorneys, and
agents (“Indemnified Party”) from and against any and all claims,
actions and suits whether groundless or otherwise, and from and against any and
all liabilities, losses, damages and expenses of every nature and character
arising out of this Agreement or any of the other Loan Documents or the
transactions contemplated hereby (“Damages”) 

 

12-2

 

including, without
limitation (i) any actual or proposed use by either Borrower or any of their
Subsidiaries of the proceeds of the Loan, (ii) either Borrowers or any of their
Subsidiaries entering into or performing this Agreement or any of the other
Loan Documents, or (iii) with respect to a Borrower and its Subsidiaries and
their respective properties and assets, the violation of any applicable law, in
each case including, without limitation, the reasonable fees and disbursements
of counsel and allocated costs of internal counsel incurred in connection with
any such investigation, litigation or other proceeding; provided, however,
that no Indemnified Party shall be entitled to indemnification if a court of
competent jurisdiction finally determines (all appeals having been exhausted or
waived) that such Indemnified Party acted in bad faith, with willful
misconduct, gross negligence, or material breach of this Agreement or any other
Loan Document.  In litigation, or the
preparation therefor, Credit Agent and Lenders shall be entitled to select
their respective own counsel and, in addition to the foregoing indemnity, Borrowers
jointly and severally agree to pay promptly the reasonable fees and expenses of
such counsel. If, and to the extent that the obligations of Borrowers under
this Section 12.2(b) are unenforceable for any reason, Borrowers jointly and
severally agree to make the maximum contribution to the payment in satisfaction
of such obligations which is permissible under applicable law. The provisions
of this Section 12.2(b) shall survive the repayment of the Loan and the
termination of the obligations of Credit Agent and Lenders hereunder.

 

12.3                        Financial Information

 

All
financial statements and reports furnished to Credit Agent and/or any Lender
under this Agreement must be prepared in accordance with GAAP, applied on a
basis consistent with that applied in preparing the most recent Audited
Financial Statement of GPF provided to Lender.

 

12.4                        Terms Binding Upon Successors; Survival of Representations

 

The
terms and provisions of this Agreement are binding upon and inure to the
benefit of Borrowers, Credit Agent, Lenders and their respective successors and
permitted assigns. All of Borrowers’ representations, warranties, covenants and
agreements survive the making of any Warehousing Advance, and, except where a
longer period is set forth in this Agreement, remain effective for as long as
the Warehousing Commitment is outstanding or there remain any Obligations to be
paid or performed.

 

12.5                        Pledge to Federal Reserve Banks

 

Any
Lender may at any time pledge or assign all or any portion of its rights under
the Loan Documents (including, without limitation, any portion of its
Warehousing Note) to any of the Federal Reserve Banks organized under Section 4
of the Federal Reserve Act, 12 U.S.C. 
Section 341.  No such pledge or
assignment or enforcement thereof shall release Lender from its obligations
under any of the Loan Documents.

 

12.6                        Confidentiality

 

Credit
Agent and Lenders agree to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to their and their
Affiliates’ directors,

 

12-3

 

officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential); (b) to the extent requested by any
regulatory authority; (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process; (d) to any other
party to this Agreement; (e) in connection with the exercise of any
remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any Loan Document or the enforcement
of rights hereunder or thereunder; (f) to any actual or prospective
counterparty (or its advisors) to any swap or to any credit derivative
transaction relating to either Borrower and its obligations; (g) with the
consent of a Borrower; (h) subject to an agreement containing provisions
substantially the same as those of this Section, any Assignee or any
prospective Assignee; and (i) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section, or (ii) becomes
available to the disclosing Person on a nonconfidential basis from a source
other than a Borrower.  For purposes of
this Section, “Information” means all information received from a Borrower
relating to such Borrower or its business, other than any such information that
is available to Credit Agent or a Lender on a nonconfidential basis prior to
disclosure by the Borrower; provided that, in the case of information received
from a Borrower after the date hereof, such information is clearly identified
at the time of delivery as confidential. 
The Credit Agent and Lenders shall be considered to have complied with
their respective obligations to maintain the confidentiality of Information as
provided in this Section if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

 

12.7                        Governing Law

 

This
Agreement and the rights and obligations of the parties hereunder shall be
construed and interpreted in accordance with the laws of the Commonwealth of
Massachusetts (excluding the laws applicable to conflicts or choice of law).

 

12.8                        Amendments

 

This
Agreement may not be amended, modified, or supplemented except in accordance
with the provisions of Section 11.14(a) hereof.

 

12.9                        Relationship of the Parties

 

This
Agreement provides for the making of Warehousing Advances by Lenders, the
requirement of Warehousing Advances by Borrowers, the payment of interest on
those Warehousing Advances, and the payment of certain fees by Borrowers to
Credit Agent and Lenders. The relationship between Credit Agent, Lenders and
Borrowers is limited to that of creditor and secured party on the part of
Credit Agent and Lenders and of debtor on the part of Borrowers. The provisions
of this Agreement and the other Loan Documents for compliance with financial
covenants and the delivery of financial statements and other operating reports
are intended solely for the benefit of Credit Agent and Lenders to protect
their interests as creditors and secured party. Nothing in this Agreement
creates or may be construed as permitting or obligating Credit Agent or any
Lender to act as a financial or business advisor or consultant to either
Borrower, as 

 

12-4

 

permitting
or obligating Credit Agent or any Lender to control either Borrower or to
conduct either Borrower’s operations, as creating any fiduciary obligation on
the part of Credit Agent or any Lender to either Borrower, or as creating any
joint venture, partnership, agency or other similar relationship between Credit
Agent or any Lender and either Borrower. Each Borrower acknowledges that it has
had the opportunity to obtain the advice of experienced counsel of its own
choice in connection with the negotiation and execution of the Loan Documents
and to obtain the advice of that counsel with respect to all matters contained
in the Loan Documents, including the waivers of jury trial and of punitive,
consequential, special or indirect damages contained in Sections 12.16 and
12.17, respectively. Each Borrower further acknowledges that it is experienced
with respect to financial and credit matters and has made its own independent
decisions to apply to Credit Agent and Lenders for credit and to execute and
deliver this Agreement.

 

12.10                 Severability

 

If
any provision of this Agreement or any other Loan Document is declared to be
illegal or unenforceable in any respect, that provision is null and void and of
no force and effect to the extent of the illegality or unenforceability, and
does not affect the validity or enforceability of any other provision of the
Agreement or such other Loan Document.

 

12.11                 Consent to Credit References

 

Each
Borrower consents to the disclosure of information regarding Borrower and its
Subsidiaries and their relationships with Credit Agent and Lenders to Persons
making credit inquiries to Credit Agent or a Lender. This consent is revocable
by Borrowers at any time upon Notice to Credit Agent and each Lender as
provided in Section 12.1.

 

12.12                 Counterparts

 

This
Agreement may be executed in any number of counterparts, each of which will be
deemed an original, but all of which together constitute but one and the same
instrument.

 

12.13                 Headings/Captions

 

The
captions or headings in this Agreement and the other Loan Documents are for
convenience only and in no way define, limit or describe the scope or intent of
any provision of this Agreement or any other Loan Document.

 

12.14                 Entire Agreement

 

This
Agreement, the Warehousing Notes and the other Loan Documents are intended by
the parties as the final, complete and exclusive statement of the transactions
evidenced by thereby.  All prior or
contemporaneous promises, agreements and understandings, whether oral or
written, are deemed to be superseded by this Agreement, the Warehousing Notes
and the other Loan Documents, and no party is relying on any promise, agreement
or understanding not set forth in this Agreement, the Warehousing Notes or the
other Loan Documents.

 

12-5

 

12.15      Consent to Jurisdiction

 

EACH
BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT OR ANY OF
THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE COMMONWEALTH
OF MASSACHUSETTS OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE
NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH SUIT
BEING MADE UPON A BORROWER BY MAIL AT THE ADDRESS SET FORTH HEREIN. EACH
BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN
INCONVENIENT FORUM.

 

12.16                 Waiver of Jury Trial

 

BORROWERS,
CREDIT AGENT, AND LENDERS (BY ACCEPTANCE OF THIS AGREEMENT) MUTUALLY HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN
RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN
CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT
LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF
CREDIT AGENT OR ANY LENDER RELATING TO THE ADMINISTRATION OF THE LOANS OR
ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NO PARTY WILL SEEK TO
CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT
BE OR HAS NOT BEEN WAIVED.

 

12.17                 Waiver of Punitive, Consequential, Special or Indirect Damages

 

EACH
BORROWER WAIVES ANY RIGHT IT MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL,
SPECIAL OR INDIRECT DAMAGES FROM CREDIT AGENT OR ANY LENDER OR ANY OF CREDIT
AGENT’S OR ANY LENDER’S AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS,
OR AGENTS WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION,
PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY BORROWER AGAINST CREDIT AGENT OR
ANY LENDER OR ANY OF CREDIT AGENT’S OR ANY LENDER’S AFFILIATES, OFFICERS,
DIRECTORS, EMPLOYEES, ATTORNEYS, OR AGENTS WITH RESPECT TO ANY MATTER ARISING
OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT. THIS
WAIVER OF THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT
DAMAGES IS KNOWINGLY AND VOLUNTARILY GIVEN BY EACH BORROWER, AND IS INTENDED TO
ENCOMPASS EACH INSTANCE AND EACH ISSUE FOR WHICH THE RIGHT TO SEEK PUNITIVE,
CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES WOULD OTHERWISE APPLY. CREDIT AGENT
AND EACH LENDER IS AUTHORIZED AND DIRECTED TO SUBMIT THIS AGREEMENT TO ANY
COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE PARTIES TO THIS
AGREEMENT AS CONCLUSIVE EVIDENCE OF 

 

12-6

 

THIS
WAIVER OF THE RIGHT TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL OR INDIRECT
DAMAGES.

 

12.18                 U.S. Patriot Act

 

Each
Lender hereby notifies the Borrowers that pursuant to the requirements of the
USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrowers, which information includes the name
and address of each Borrower and other information that will allow such Lender
to identify each Borrower in accordance with the Act.

 

12.19                 Merger of Obligations

 

Borrowers
understand and agree that their respective duties and obligations under the
Existing Agreement merge with and into this Agreement, except as expressly
modified by this Agreement. Borrowers agree that their respective duties and
obligations under the Existing Agreement are not satisfied or extinguished by
the execution and delivery of this Agreement.

 

End of Article 12

 

12-7

 

13.                               DEFINITIONS

 

13.1                        Defined Terms

 

In
addition to terms defined elsewhere in this Agreement, when used in this
Agreement and, unless otherwise defined therein, in any other Loan Document
(and including, unless otherwise defined therein, in any Schedules or Exhibits
to this Agreement and to the other Loan Documents), capitalized terms defined
below or elsewhere in this Agreement have the following meanings:

 

“Advance
Rate” means, with respect to any Eligible Loan, the Advance Rate set forth
in Exhibit C for that type of Eligible Loan.

 

“Affiliate”
means, when used with reference to any Person, (a) each Person that,
directly or indirectly, controls, is controlled by or is under common control
with, the Person referred to, (b) each Person that beneficially owns or
holds, directly or indirectly, 5% or more of any class of voting Equity
Interests of the Person referred to, (c) each Person, 5% or more of the
voting Equity Interests of which is beneficially owned or held, directly or indirectly,
by the Person referred to, and (d) each of such Person’s officers,
directors, joint venturers and partners. For these purposes, the term “control”
(including the terms “controlled by” and “under common control with”) means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of the Person in question.

 

“Agency
Security” means a Mortgage-backed Security issued or guaranteed by Fannie
Mae, Freddie Mac, or Ginnie Mae.

 

“Agreement”
means this Amended and Restated Warehousing Credit and Security Agreement,
either as originally executed or as it may be amended, restated, renewed or
replaced, and including all Exhibits and Schedules hereto.

 

“Applicable
Base Rate” means, for any day, the Base Rate for such day plus the
Applicable Margin.

 

“Applicable
Daily Floating LIBOR Rate” means, for any day, a rate per annum equal to
the BBA LIBOR Daily Floating Rate for such day, plus the Applicable Margin.

 

“Applicable
Margin” means (a) for LIBOR Loans, 2.00%, and (b) for Base Rate
Loans, 2.00%.

 

“Applicable
Rate” means, for any day (a) except as otherwise required from time to
time pursuant to Section 3.10(b) or 3.10(g), the Applicable Daily
Floating LIBOR Rate for such day, or (b) if, and only for as long as,
required from time to time pursuant to Section 3.10(b) or 3.10(g),
the Applicable Base Rate for each applicable day.

 

“Approved
Custodian” means Fannie Mae, Freddie Mac, and any pool custodian or other
Person that Credit Agent deems acceptable, in its sole discretion, to hold
Mortgage Loans for inclusion in a Mortgage Pool or to hold Mortgage Loans as
agent for an Investor that has issued a Purchase Commitment for those Mortgage
Loans.

 

13-1

 

“Assignee”
has the meaning set forth in Section 11.13(a).

 

“Assignment
and Acceptance” has the meaning set forth in Section 11.13(a).

 

“At
Risk Mortgage Loans” means Mortgage Loans as to which W&D has any loss
sharing arrangement or otherwise are with recourse to W&D.

 

“Audited
Statement Date” means the date of a Borrower’s most recent audited
financial statements (and, if applicable, such Borrower’s Subsidiaries, on a
consolidated basis) delivered to Credit Agent under this Agreement.

 

“Authorized
Representatives” has the meaning set forth in Section 3.11.

 

“Base
Rate” means, on any day, the greater of (a) the Prime Rate in effect
for such day, and (b) the sum of (i) the Federal Funds Rate for such
day, plus (ii) 0.50%.

 

“Base
Rate Loan” means the Loan (or any particular Warehousing Advance) at any
time while it bears interest at the Applicable Base Rate.

 

“BBA
LIBOR Daily Floating Rate” means, for any day, a fluctuating rate of
interest per annum equal to the British Bankers Association LIBOR Rate (“BBA
LIBOR”) as published by Reuters (or other commercially available sources
providing quotations of BBA LIBOR as selected by Credit Agent from time to
time) as determined for each such day at approximately 11:00 a.m. London
time two (2) London Banking Days prior to the date in question, for U.S.
dollar deposits (for delivery on the date in question, or, if not a London
Banking Day, on the immediately preceding London Banking Day) with a one month
term, as adjusted from time to time in Credit Agent’s reasonable discretion for
reserve requirements, deposit insurance assessment rates and other regulatory
costs. If such rate is not published by Reuters or any other such commercially
available source at such time for any reason, then such rate will be determined
by such alternate method as reasonably selected by Credit Agent.

 

“Borrower”
and “Borrowers” have the meanings set forth in the first paragraph of
this Agreement.

 

“Business
Day” means any (a) day other than Saturday or Sunday, or (b) day
of the year on which offices of Bank of America, N.A. are not required or
authorized by law to be closed for business in Boston, Massachusetts. If any
day on which a payment is due is not a Business Day, then the payment shall be
due on the next day following which is a Business Day. Further, if there is no
corresponding day for a payment in the given calendar month (e.g., there is no “February 30th”),
the payment shall be due on the last Business Day of the calendar month.

 

“C&D
System” means Fannie Mae’s Multifamily Committing and Delivery system.

 

“Calendar
Quarter” means the 3 month period beginning on each January 1, April 1,
July 1 or October 1.

 

“Cash
Collateral Account” means the Credit Agent access only demand deposit
accounts maintained at Credit Agent and designated for receipt of the proceeds
of the sale or other 

 

13-2

 

disposition
of Collateral (account no. 004602273011 for GPF, and account no. 14999-23825
for W&D).

 

“Closing
Date” means, subject to the Borrowers’ satisfaction of the conditions set
forth in Article 5, the date as of which this Agreement is executed as
first above written.

 

“Collateral”
has the meaning set forth in Section 4.1.

 

“Collateral
Documents” means, with respect to each Mortgage Loan, (a) the Mortgage
Note, the Mortgage and all other documents including, if applicable, any
Security Agreement, executed in connection with or relating to the Mortgage
Loan, (b) as applicable, the original lender’s ALTA Policy of Title
Insurance or its equivalent, documents evidencing the FHA Commitment to Insure,
or private mortgage insurance, the appraisal, the environmental assessment, the
engineering report, certificates of casualty or hazard insurance, credit
information on the maker of the Mortgage Note, (c) any other document
listed in the applicable Exhibit B and (d) any other document
that is customarily desired for inspection or transfer incidental to the
purchase of any Mortgage Note by an Investor or that is customarily executed by
the seller of a Mortgage Note to an Investor.

 

“Committed
Purchase Price” means for an Eligible Loan (a) the dollar price as set
forth in the Purchase Commitment or, if the price is not expressed in dollars,
the product of the Mortgage Note Amount multiplied by the price (expressed as a
percentage) as set forth in the Purchase Commitment for the Eligible Loan, or (b) if
the Eligible Loan is to be used to back an Agency Security, an amount equal to
the product of the Mortgage Note Amount multiplied by the price (expressed as a
percentage) as set forth in the Purchase Commitment for the Agency Security.

 

“Commitment
Percentage” means, as of the date of determination, as to each Lender (i) prior
to the Warehousing Commitments being terminated or reduced to zero, the
percentage obtained by dividing (y) such Lender’s Warehousing Commitment
Amount, by (z) the aggregate Warehousing Commitment Amounts of all
Lenders, and (ii) from and after the time that all Warehousing Commitments
have been terminated or reduced to zero, the percentage obtained by dividing (y) the
aggregate outstanding principal amount of such Lender’s Warehousing Advances by
(z) the aggregate outstanding principal amount of all Warehousing
Advances.  The initial Commitment
Percentages of each Lender is set forth opposite the name of such Lender on Exhibit N
or in the Assignment and Acceptance pursuant to which such Lender becomes a
party hereto, as applicable.

 

“Compliance
Certificate” means a certificate executed on behalf of a Borrower by its
General Partner or other management official having principal financial
accounting responsibilities, substantially in the form of Exhibit I.

 

“Damages”
has the meaning set forth in Section 12.2(b).

 

“Default”
means the occurrence of any event or existence of any condition that, but for
the giving of Notice, the lapse of time or both would constitute an Event of
Default.

 

“Default
Rate” means, on any day, a rate per annum equal to the Applicable Rate on
such day plus 4%.

 

13-3

 

“Delinquent
Lender” has the meaning set forth in Section 11.12(g).

 

“Eligible
Loan” means a Mortgage Loan that satisfies the conditions and requirements
set forth in Exhibit C.

 

“Eligible
Mortgage Pool” means a Mortgage Pool for which (a) an Approved
Custodian has issued its initial certification, (b) there exists a
Purchase Commitment covering the Agency Security to be issued on the basis of
that certification and (c) the Agency Security will be delivered to Credit
Agent.

 

“Equity
Interests” means all shares, interests, participations or other
equivalents, however, designated, of or in a Person (other than a natural
person), whether or not voting, including common stock, membership interests,
partnership interests, warrants, preferred stock, convertible debentures and
all agreements, instruments and documents convertible, in whole or in part,
into any one or more of the foregoing.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 and all rules and
regulations promulgated under that statute, as amended, and any successor
statute, rules, and regulations.

 

“ERISA
Affiliate” means any trade or business (whether or not incorporated) that
is a member of a group of which a Borrower is a member and that is treated as a
single employer under Section 414 of the Internal Revenue Code.

 

“Event
of Default” means any of the conditions or events set forth in Section 10.1.

 

“Excess
Payment” has the meaning set forth in Section 3.10(f).

 

“Existing
Agreement” has the meaning specified in the Preliminary Statement.

 

“Existing
Agreement Obligations” has the meaning specified in the Preliminary
Statement.

 

“Existing
Warehousing Advances” has the meaning specified in the Preliminary
Statement.

 

“Fair
Market Value” means, at any time for an Eligible Loan or a related Pledged
Security (if the Eligible Loan is to be used to back a Pledged Security) as of
any date of determination, the market price for such Eligible Loan or Pledged
Security, determined by Credit Agent based on market data for similar Mortgage
Loans or Pledged Securities and such other criteria as Credit Agent deems
appropriate in its sole discretion.

 

“Fannie
Mae” means Fannie Mae, a corporation created under the laws of the United
States, and any successor corporation or other entity.

 

“Fannie
Mae Aggregation Program” means Fannie Mae’s program for the purchase of
Mortgage Loans described in the Aggregation Product Line portion of Fannie Mae’s
Negotiated Transactions Guide.

 

“Fannie
Mae DUS Mortgage Loan” has the meaning specified in Exhibit C.

 

13-4

 

“Fannie
Mae DUS Program” means Fannie Mae’s program for the purchase of Mortgage
Loans originated under Fannie Mae’s Delegated Underwriting and Servicing Guide,
as amended from time to time.

 

“Fannie
Mae Loan Loss Reserves” means reserves established by Borrower to absorb
estimated future losses related to Fannie Mae DUS Mortgage Loans.

 

“Federal
Agency” means FHA, Fannie Mae, Freddie Mac, or any other instrumentality or
agency of the United States of America or corporation organized under the laws
of the United States of America which insures, guaranties or purchases Mortgage
Loans.

 

“Fee
Letters” means those certain fee letters to be entered into on or before
the Closing Date between the Credit Agent and the Borrowers and the Lenders and
the Borrowers, on mutually acceptable terms and conditions.

 

“FHA”
means the Federal Housing Administration and any successor agency or other
entity.

 

“FHA
Construction Mortgage Loan” means an FHA fully-insured Mortgage Loan for
the construction or substantial rehabilitation of Multi-Family Properties.

 

“FHA
Mortgage Loan” means an FHA Construction Mortgage Loan or an FHA Permanent
Mortgage Loan.

 

“FHA
Permanent Mortgage Loan” means an FHA fully-insured Mortgage Loan secured
by a Mortgage on a Multi-Family Property.

 

“FICA”
means the Federal Insurance Contributions Act and all rules and
regulations promulgated under that statute, as amended, and any successor
statute, rules and regulations.

 

“FIRREA”
means the Financial Institutions Reform, Recovery and Enforcement Act of 1989
and all rules and regulations promulgated under that statute, as amended,
and any successor statute, rules, and regulations.

 

“First
Mortgage” means a Mortgage that constitutes a first Lien on the real
property and improvements described in or covered by that Mortgage.

 

“First
Mortgage Loan” means a Mortgage Loan secured by a First Mortgage.

 

“Formation
Agreement” means the Formation Agreement dated as of January 30, 2009
by and among GPF, Walker & Dunlop, Inc., Column Guaranteed, LLC,
and W&D.

 

“Freddie
Mac” means Freddie Mac, or other Federal Agency to which the powers and
duties of Freddie Mac have been transferred.

 

“Freddie
Mac Approval” means the conditional approval of W&D as a Freddie Mac
Program Plus seller, dated December 23, 2008.

 

“Freddie
Mac Program Plus” means Freddie Mac’s Program Plus Seller/Servicer program.

 

13-5

 

“Future
Commitment” has the meaning set forth in Section 11.12(g).

 

“GAAP”
means generally accepted accounting principles set forth in opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and in statements and pronouncements of the
Financial Accounting Standards Board, or in opinions, statements or
pronouncements of any other entity approved by a significant segment of the
accounting profession, which are applicable to the circumstances as of the date
of determination.

 

“General
Partner” means the General Partner of GPF from time to time.

 

“Ginnie
Mae” means the Government National Mortgage Association or other Federal
Agency as to which the powers and duties of the Governmental National Mortgage
Association have been transferred.

 

“Ginnie
Mae Security” means a security representing an undivided fractional
interest in an Eligible Mortgage Pool, which security is issued and guaranteed
as to payment of principal and interest by Ginnie Mae to an extent consistent
with Ginnie Mae’s customary practices, without regard as to whether W&D
collects any payments on such Mortgage Loans.

 

“GPFA
Term Loan” means the term loan made by the lenders pursuant to the GPFA
Term Loan Agreement.

 

“GPFA
Term Loan Agreement” means that certain Amended and Restated Credit
Agreement entered into as of January 30, 2009 among GPF ACQUISITION, LLC,
WALKER & DUNLOP MULTIFAMILY, INC., WALKER & DUNLOP GP,
LLC, GPF, W&D, each lender from time to time party thereto and BANK OF
AMERICA, N.A., as Administrative Agent and Collateral Agent, as from time to
time amended, modified, supplemented, restated, or extended.

 

“GPF
Origination Services” means the undertaking of GPF to originate Fannie Mae
DUS Mortgage Loans, to be transferred to W&D prior to sale, pursuant to the
Transition Services Agreement.

 

“GPF
Transition Period” means the period during which GPF provides services to
W&D pursuant to the Transition Services Agreement.

 

“Hedging
Arrangements” means, with respect to any Person, any agreements or other
arrangements (including interest rate swap agreements, collars, derivatives,
interest rate cap agreements and forward sale agreements) entered into to
protect that Person against changes in interest rates or the market value of
assets.

 

“HUD”
means the Department of Housing and Urban Development, and any successor agency
or other entity.

 

“HUD
MAP Lender” means a lender approved by HUD under its Multifamily
Accelerated Processing program.

 

13-6

 

“Indebtedness”
means, as to any Person, all obligations, contingent and otherwise, that in
accordance with GAAP should be classified upon the consolidated balance sheet
of such Person and such Person’s Subsidiaries as liabilities, or to which
reference should be made by footnotes thereto, including in any event and
whether or not so classified: (a) all obligations for borrowed money or
other extensions of credit whether secured or unsecured, absolute or
contingent, including, without limitation, unmatured reimbursement obligations
with respect to letters of credit or guarantees issued for the account of or on
behalf of such Person and its Subsidiaries and all obligations representing the
deferred purchase price of property; (b) all obligations evidenced by bonds,
notes, debentures or other similar instruments; (c) all liabilities
secured by any mortgage, pledge, security interest, lien, charge, or other
encumbrance existing on property owned or acquired subject thereto, whether or
not the liability secured thereby shall have been assumed; (d) all
guarantees, endorsements and other contingent obligations whether direct or
indirect, in respect of indebtedness of others or otherwise, including any
obligations under Hedging Arrangements and otherwise with respect to puts,
swaps, and other similar undertakings, any obligation to supply funds to or in
any manner to invest in, directly or indirectly, the debtor, to purchase
indebtedness, or to assure the owner of indebtedness against loss, through an
agreement to purchase goods, supplies, or services for the purpose of enabling
the debtor to make payment of the indebtedness held by such owner or otherwise,
and the obligations to reimburse the issuer in respect of any letters of
credit; and (e) that portion of all obligations arising under capital
leases that is required to be capitalized on the consolidated balance sheet of
such Person and its Subsidiaries; but excluding, in all events obligations
arising under operating leases and accounts payable arising in the ordinary
course of business.

 

“Indemnified
Party” has the meaning set forth in Section 12.2(b).

 

“Interim
Statement Date” means the date of the most recent unaudited financial
statements of a Borrower (and, if applicable, such Borrower’s Subsidiaries, on
a consolidated basis) delivered to Credit Agent under this Agreement.

 

“Internal
Revenue Code” means the Internal Revenue Code of 1986, Title 26 of the
United States Code, and all rules, regulations and interpretations issued under
those statutory provisions, as amended, and any subsequent or successor federal
income tax law or laws, rules, regulations and interpretations.

 

“Investment
Company Act” means the Investment Company Act of 1940 and all rules and
regulations promulgated under that statute, as amended, and any successor
statute, rules and regulations.

 

“Investor”
means (a) a Federal Agency, or (b) a financially responsible private
institution that Credit Agent deems acceptable from time to time, in its sole
discretion, to issue Purchase Commitments with respect to a particular category
of Eligible Loans.

 

“Late
Charge” has the meaning set forth in Section 3.9.

 

“Lender”
has the meaning set forth in the first paragraph of this Agreement.

 

“Leverage
Ratio” means the ratio of a Person’s Indebtedness to Tangible Net Worth,
except that for purposes of calculating a Person’s Leverage Ratio, Indebtedness
arising under Hedging 

 

13-7

 

Arrangements,
to the extent of assets arising under those Hedging Arrangements, may be
excluded from that Person’s Indebtedness.

 

“LIBOR
Loan” means the Loan (or any particular Warehousing Advance) at any time it
is being maintained at a rate of interest based upon the BBA LIBOR Daily
Floating Rate (the Applicable Rate for which shall be the Applicable Daily
Floating LIBOR Rate).

 

“Lien”
means any lien, mortgage, deed of trust, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature of such an agreement and any
agreement to give any security interest).

 

“Liquid
Assets” means the following unrestricted and unencumbered assets owned by a
Person (and, if applicable, that Person’s Subsidiaries, on a consolidated
basis) as of any date of determination: (a) cash, (b) funds on
deposit in accounts with any bank located in the United States (net of the
aggregate amount payable under all outstanding and unpaid checks, drafts and
similar items drawn by a Person against those accounts for purposes other than
funding Mortgage Loans against which Warehousing Advances have been or will be
made), (c) investment grade commercial paper, (d) money market funds,
and (e) marketable securities actively traded on a major U.S. exchange.

 

“Liquidation
Proceeds” has the meaning set forth in Section 10.2(c)(11).

 

“Loan
Documents” means this Agreement, the Warehousing Notes, any agreement of a
Borrower relating to Subordinated Debt, and each other document, instrument or
agreement executed by a Borrower in connection with any of those documents,
instruments and agreements, or establishing or evidencing an Obligation,
including, without limitation, pursuant to a Hedging Arrangement with a Lender
(including Credit Agent) or an Affiliate as the counterparty, to the extent specifically
hedging Borrowers’ interest bearing obligations under this Agreement and of
which Hedging Arrangement Credit Agent had been provided Notice (and all
details thereof) prior to its establishment, each as originally executed or as
any of the same may be amended, restated, renewed or replaced.

 

“London
Banking Day” is a Business Day on which banks in London are open for
business and dealing in offshore dollars.

 

“Margin
Stock” has the meaning assigned to that term in Regulation U of the Board
of Governors of the Federal Reserve System, as amended.

 

“Master
Credit Facility Agreement” means any agreement between a Borrower and one
or more mortgagors and (if applicable) other obligors described on Exhibit E
(as amended in accordance with Section 5.3), under which a Borrower makes
Special Fannie Mae Mortgage Loans to those mortgagors and other obligors
secured by Mortgages on Multifamily Properties, as long as Fannie Mae has
agreed, on terms satisfactory to Credit Agent and Required Lenders, to issue an
Agency Security in exchange for a 100% participation in each Special Fannie Mae
Mortgage Loan.

 

“Miscellaneous
Fees and Charges” means, without duplication, the miscellaneous fees set
forth on Exhibit L and/or in the custodial agreement and related
documents and fee schedule 

 

13-8

 

previously,
or to be, entered into by Credit Agent (or an affiliate) and either Borrower on
or before the Closing Date, and all miscellaneous disbursements, charges and
expenses incurred by or on behalf of Credit Agent for the handling and
administration of Warehousing Advances and Collateral, including custodial
fees, costs for Uniform Commercial Code, tax lien and judgment searches
conducted by Credit Agent, filing fees, charges for wire transfers (outgoing
and incoming) and check processing charges, charges for security delivery fees,
charges for overnight delivery of Collateral to Investors, recording fees,
service fees and overdraft charges. Upon not less than 3 Business Days’ prior
Notice to Borrowers, Credit Agent may modify such Miscellaneous Fees and
Charges (and Exhibit L, as may be appropriate) to conform to
current Credit Agent practices.

 

“Mortgage”
means a mortgage or deed of trust on real property that, except in the case of
an FHA Construction Mortgage Loan, is improved and substantially completed.

 

“Mortgage-backed
Securities” means securities that are secured or otherwise backed by
Mortgage Loans.

 

“Mortgage
Loan” means any loan evidenced by a Mortgage Note and secured by a Mortgage
and, if applicable, a Security Agreement.

 

“Mortgage
Note” means a promissory note secured by one or more Mortgages and, if
applicable, one or more Security Agreements.

 

“Mortgage
Note Amount” means, as of any date of determination, the then outstanding
and unpaid principal amount of a Mortgage Note (whether or not an additional
amount is available to be drawn under that Mortgage Note).

 

“Mortgage
Pool” means a pool of one or more Pledged Loans on the basis of which a
Mortgage-backed Security is to be issued.

 

“Multiemployer
Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA, to which either Borrower or any ERISA Affiliate of a Borrower has any
obligation with respect to its employees.

 

“Multifamily
Property” means real property that contains or that will contain more than
4 dwelling units.

 

“Non-Usage
Fee” has the meaning set forth in Section 3.4.

 

“Notices”
has the meaning set forth in Section 12.1.

 

“Obligations”
means all indebtedness, obligations and liabilities of Borrowers or either of
them to Credit Agent or Lenders (whether now existing or arising after the date
of this Agreement, voluntary or involuntary, joint or several, direct or
indirect, absolute or contingent, liquidated or unliquidated, or decreased or extinguished
and later increased and however created or incurred), including, without
limitation, Borrowers’ several or joint and several obligations and liabilities
to Credit Agent and Lenders (a) under the Loan Documents, (b) for
disbursements made by Credit Agent or a Lender for a Borrower’s account, (c) for
overdrafts (which, if permitted, shall be at 

 

13-9

 

Credit
Agent’s sole discretion), (d) for automated clearinghouse exposure, (e) under
Hedging Arrangements with a Lender (including Credit Agent) or an Affiliate as
the counterparty, to the extent specifically hedging Borrowers’ interest
bearing obligations under this Agreement and of which Hedging Arrangement
Credit Agent had been provided Notice (and all details thereof) prior to its
establishment, and (f) under any cash management or related agreements.

 

“Operating
Accounts” means the demand deposit accounts maintained at Credit Agent
respectively in Borrower’s name and designated for funding that portion of each
Eligible Loan not funded by a Warehousing Advance made against that Eligible
Loan and for returning any excess payment from an Investor for a Pledged Loan
or Pledged Security (as of the date hereof, account no. 004602273516 with
respect to GPF and account no. 004625970919 with respect to W&D).

 

“Operating
Agreement” means the Operating Agreement of W&D dated as of January 30,
2009 as amended pursuant to Amendment No. 1, Amendment No. 2, and
Amendment No. 3, each dated as of July 22, 2009.

 

“Other
Fannie Mae Mortgage Loan” has the meaning set forth in Exhibit C.

 

“Other
Taxes” has the meaning set forth in Section 3.10(d).

 

“Overdraft
Advance” has the meaning set forth in Section 3.6.

 

“Participant”
has the meaning set forth in Section 11.13(d).

 

“Partner”
means any Person holding an Equity Interest in a Borrower.

 

“Partnership
Agreement” means that certain Second Amended and Restated Agreement of
Limited Partnership of Green Park Financial Limited Partnership dated as of November 12,
1996, as the same may be amended or supplemented from time to time.

 

“Person”
means and includes natural persons, corporations, limited liability companies,
limited liability partnerships, limited partnerships, general partnerships,
joint stock companies, joint ventures, associations, companies, trusts, banks,
trust companies, land trusts, business trusts or other organizations, whether
or not legal entities, and governments and agencies and political subdivisions
of those governments.

 

“Plan”
means each employee benefit plan (whether in existence on the date of this
Agreement or established after that date), as that term is defined in Section 3
of ERISA, maintained for the benefit of directors, officers or employees of a
Borrower or any ERISA Affiliate.

 

“Pledged
Hedging Accounts” has the meaning set forth in Section 4.1(g).

 

“Pledged
Hedging Arrangements” has the meaning set forth in Section 4.1(g).

 

“Pledged
Investment Property” means Eligible Investments held by a Borrower in a
Pledged Account.

 

13-10

 

“Pledged
Loans” has the meaning set forth in Section 4.1(b).

 

“Pledged
Securities” has the meaning set forth in Section 4.1(c).

 

“Prime
Rate” means on any day, the rate of interest per annum then most recently
established by the Credit Agent as its “prime rate,” it being understood and
agreed that such rate is set by Credit Agent as a general reference rate of
interest, taking into account such factors as Credit Agent may deem
appropriate, that it is not necessarily the lowest or best rate actually
charged to any customer or a favored rate, that it may not correspond with
future increases or decreases in interest rates charged by other lenders or
market rates in general, and that Credit Agent may make various business or
other loans at rates of interest having no relationship to such rate.  If Credit Agent ceases to exist or to
establish or publish a prime rate from which the Prime Rate is then determined,
the applicable variable rate from which the Prime Rate is determined thereafter
shall be instead the prime rate reported in The Wall Street Journal (or
the average prime rate if a high and a low prime rate are therein reported),
and the Prime Rate shall change without notice with each change in such prime
rate as of the date such change is reported.

 

“Prohibited
Transaction” has the meanings set forth for such term in Section 4975
of the Internal Revenue Code and Section 406 of ERISA.

 

“Property”
means a Multifamily Property securing a Mortgage Loan.

 

“Purchase
Commitment” means an unconditional, fixed price, irrevocable written
commitment, in form and substance satisfactory to Credit Agent, issued in favor
of a Borrower by an Investor under which that Investor commits to purchase
Mortgage Loans or Mortgage-backed Securities.

 

“Rating
Agency” means any nationally recognized statistical rating organization
that in the ordinary course of its business rates Mortgage-backed Securities.

 

“Reference
Rate” means, as applicable for determining the Applicable Rate for any day,
the BBA LIBOR Daily Floating Rate or the Base Rate for such day.

 

“Register”
has the meaning set forth in Section 11.13(b).

 

“Release
Amount” has the meaning set forth in Section 4.3(f).

 

“Required
Lenders” means, as of any particular date (a) if no Warehousing
Advances are outstanding, Lenders whose Warehousing Commitment Amounts
aggregate at least 51% of the Warehousing Commitment Amounts of all Lenders who
are not Delinquent Lenders, or (b) if any Warehousing Advances are
outstanding, Lenders holding at least 51% of the aggregate unpaid principal
amount of all then outstanding Warehousing Advances of Lenders who are not
Delinquent Lenders.  No Lender which is a
Delinquent Lender shall be considered a “Lender” for the purposes of
determining the “Required Lenders.”

 

“Restriction
List” and “Restriction Lists” means each and every list of Persons
who are Specially Designated Nationals and Blocked Persons or otherwise are
Persons to whom the Government of the United States prohibits or otherwise
restricts the provision of financial services. For the purposes of this
Agreement, Restriction Lists include the list of Specially Designated Nationals

 

13-11

 

and
Blocked Persons established pursuant to Executive Order 13224 (September 23,
2001) and maintained by the U.S. Department of the Treasury’s Office of Foreign
Assets Control or any successor agency or other entity, U.S. Department of the
Treasury, current as of the day the Restriction List is used for purposes of
comparison in accordance with the requirements of this Agreement.

 

“Second
Mortgage” means a Mortgage that constitutes a second Lien on the real
property and improvements described in or covered by that Mortgage.

 

“Second
Mortgage Loan” means a Mortgage Loan secured by a Second Mortgage.

 

“Security
Agreement” means a security agreement or other agreement that creates a
Lien on personal property, including furniture, fixtures and equipment, to
secure repayment of a Mortgage Loan.

 

“Servicing
Contract” means, with respect to any Person, the arrangement, whether or
not in writing, under which that Person has the right to service Mortgage
Loans.

 

“Servicing
Portfolio” means, as to any Person, the unpaid principal balance of
Mortgage Loans serviced by that Person under Servicing Contracts, minus the
principal balance of all Mortgage Loans that are serviced by that Person for
others under subservicing arrangements.

 

“Servicing
Portfolio Report” has the meaning set forth in Section 7.3(a).

 

“Shipped
Period” means the maximum number of days specified in Exhibit C
during which a Warehousing Advance may remain outstanding against a Pledged
Loan that has been sent to (a) an Investor or a custodian for an Investor
for examination and purchase under a Purchase Commitment, (b) an Approved
Custodian for examination and inclusion in an Eligible Mortgage Pool or (c) a
pool custodian for examination and inclusion in a Mortgage Pool.

 

“Special
Fannie Mae Bailee Agreement” means an agreement among Borrower, Lender and
Fannie Mae, on the form prescribed by Credit Agent and acceptable to Fannie
Mae, with respect to Credit Agent’s security interest (for itself and Lenders)
in Borrower’s interest in one or more Mortgage Notes evidencing a Special
Fannie Mae Mortgage Loan.

 

“Special
Fannie Mae Mortgage Loan” has the meaning set forth in Exhibit C.

 

“Special
Fannie Mae Pool Purchase Contract” means an agreement, on terms
satisfactory to Credit Agent, under which Fannie Mae agrees to purchase a 100%
participation in Special Fannie Mae Mortgage Loans in exchange for Agency
Securities.

 

“Specially
Designated Nationals or Blocked Persons” means Persons which are owned or
controlled by, or acting on behalf of, the government of target countries or
are associated with international narcotics trafficking or terrorism.

 

“Statement
Date” means the Audited Statement Date or the Interim Statement Date, as
applicable.

 

13-12

 

“Subordinated
Debt” means all indebtedness of a Borrower for borrowed money that is
effectively subordinated in right of payment to all present and future
Obligations either (1) under a Subordination of Debt Agreement on the form
prescribed by Credit Agent or (2) otherwise on terms acceptable to Credit
Agent.

 

“Subordinate
Mortgage” means a Mortgage that constitutes a Lien that is not a first Lien
on the real property and improvements described in or covered by that Mortgage.

 

“Subordinate
Mortgage Loan” means a Mortgage Loan secured by a Subordinate Mortgage for
which all prior Mortgage Loans on that Property are being serviced by a
Borrower under a Servicing Contract, and for which all prior Mortgage Loans on
that Property have been sold to, or are subject to a Purchase Commitment issued
by, Fannie Mae or Freddie Mac.

 

“Subordination
of Debt Agreement” has the meaning set forth in Section 5.1(b).

 

“Subsidiary”
means any corporation, partnership, association or other business entity in
which more than 50% of the shares of stock or other ownership interests having
voting power for the election of directors, managers, trustees or other Persons
performing similar functions is at the time owned or controlled by any Person
either directly or indirectly through one or more Subsidiaries of that Person.

 

“Tangible
Net Worth” means the excess of a Person’s (and, if applicable, that Person’s
Subsidiaries, on a consolidated basis) total assets minus total liabilities as
of the date of determination, each determined in accordance with GAAP applied
in a manner consistent with the most recent audited financial statements
delivered to Credit Agent under this Agreement, plus Fannie Mae Loan Loss
Reserves. For purposes of calculating a Person’s Tangible Net Worth, advances
or loans to partners, employees, Affiliates or shareholders, members,
directors, officers, or employees of any general partner, investments in
Affiliates, assets pledged to secure any liabilities not included in the
Indebtedness of that Person, intangible assets, those other assets that would
be deemed by HUD to be non-acceptable in calculating adjusted net worth in
accordance with its requirements in effect as of that date, as those
requirements appear in the “Consolidated Audit Guide for Audits of HUD
Programs,” and other assets Credit Agent deems unacceptable, in its sole
discretion, must be excluded from that Person’s total assets.

 

“Taxes”
has the meaning set forth in Section 3.10(c).

 

“Third
Mortgage” means a Mortgage that constitutes a third Lien on the real
property and improvements described in or covered by that Mortgage.

 

“Third
Mortgage Loan” means a Mortgage Loan secured by a Third Mortgage.

 

“Third
Party Originated Loan” means a Mortgage Loan originated and funded by a
third party (other than with funds provided by a Borrower at closing to
purchase the Mortgage Loan) and subsequently purchased by a Borrower.  “Third Party Originated Loan” shall
not include a Mortgage Loan originated by GPF pursuant to the Transition
Services Agreement and subsequently contributed to W&D for sale in
accordance with the provisions thereof.

 

13-13

 

“Transaction Documents” means the
Formation Agreement, the Operating Agreement, the Transition Services
Agreement, and each document, instrument and agreement executed and delivered
by any Person in connection with the Transaction.

 

“Transition Services Agreement” means the Transition Services Agreement dated
as of January 30, 2009 by and among GPF, Walker & Dunlop, Inc.,
Column Guaranteed, LLC, and W&D.

 

“Trust
Receipt” means a trust receipt in a form approved by and under which Credit
Agent may deliver any document relating to the Collateral to Borrower for
correction or completion.

 

“Unused
Portion” has the meaning set forth in Section 3.4.

 

“Used
Portion” has the meaning set forth in Section 3.4.

 

“USPAP”
means the Appraisal Foundation’s Uniform Standards of Professional Appraisal
Practice, as in effect from time to time.

 

“W&D
Fannie Mae DUS Agreements” means the various agreements between W&D and
Fannie Mae establishing W&D as a Fannie Mae-approved seller/servicer under
the Fannie Mae DUS Program, and the terms and conditions thereof.

 

“Warehouse
Period” means, for any Eligible Loan, the maximum number of days a
Warehousing Advance against that type of Eligible Loan may remain outstanding
as set forth in Exhibit C.

 

“Warehousing
Advance” means a disbursement by Lenders under Section 1.1.

 

“Warehousing
Advance Request” has the meaning set forth in Section 2.1.

 

“Warehousing
Collateral Value” means, as of any date of determination, (a) with
respect to any Eligible Loan, the lesser of (1) the amount of any
Warehousing Advance made, or that could be made, against such Eligible Loan
under Exhibit C or (2) an amount equal to the Advance Rate for
the applicable type of Eligible Loan multiplied by the Fair Market Value of
such Eligible Loan; and (b) if Eligible Loans have been exchanged for
Agency Securities, the lesser of (1) the amount of any Warehousing
Advances outstanding against the Eligible Loans backing the Agency Securities
or (2) an amount equal to the Advance Rates for the applicable types of
Eligible Loans backing the Agency Securities multiplied by the Fair Market
Value of the Agency Securities.

 

“Warehousing
Commitment” means the obligation of each Lender to make Warehousing
Advances to Borrowers under Section 1.1.

 

“Warehousing
Commitment Amount” means, for any Lender, at any date, that dollar amount
designated opposite such Lender’s name on Exhibit N as its
Warehousing Commitment Amount, as the same may be amended from time to time in
accordance with this Agreement.

 

“Warehousing
Credit Limit” means the sum of the Warehousing Commitment Amounts of all of
the Lenders.

 

13-14

 

“Warehousing
Maturity Date” has the meaning set forth in Section 1.2.

 

“Warehousing
Note” has the meaning set forth in Section 1.3.

 

13.2                        Other Definitional Provisions; Terms of Construction

 

13.2(a)                      Accounting
terms not otherwise defined in this Agreement have the meanings given to those
terms under GAAP.

 

13.2(b)                     Defined terms may be used in
the singular or the plural, as the context requires.

 

13.2(c)                      All references
to time of day mean the then applicable time in Boston, Massachusetts, unless
otherwise expressly provided.

 

13.2(d)                     References to Sections,
Exhibits, Schedules and like references are to Sections, Exhibits, Schedules
and the like of this Agreement unless otherwise expressly provided.

 

13.2(e)                      The words “include,”
“includes” and “including” are deemed to be followed by the phrase “without
limitation.”

 

13.2(f)                        Unless the
context in which it is used otherwise clearly requires, the word “or” has the
inclusive meaning represented by the phrase “and/or.”

 

13.2(g)                     All incorporations by
reference of provisions from other agreements are incorporated as if such
provisions were fully set forth into this Agreement, and include all necessary
definitions and related provisions from those other agreements. All provisions
from other agreements incorporated into this Agreement by reference survive any
termination of those other agreements until the Obligations of Borrowers under
this Agreement and the Warehousing Notes are irrevocably paid in full and the
Warehousing Commitment is terminated.

 

13.2(h)                     All references to the
Uniform Commercial Code are deemed to be references to the Uniform Commercial
Code in effect on the date of this Agreement in the applicable jurisdiction.

 

13.2(i)                         Unless the
context in which it is used otherwise clearly requires, all references to days,
weeks and months mean calendar days, weeks and months.

 

End of Article 13

 

13-15

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as
of the date first above written.

 

	
   

  	
  GREEN
  PARK FINANCIAL LIMITED PARTNERSHIP, a District of Columbia limited
  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WALKER &
  DUNLOP GP, LLC,

  
	
   

  	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
  Its:

  	
  Managing
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By
  

  	
  /s/
  William Walker

  
	
   

  	
   

  	
  Name:

  	
  William
  M. Walker

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WALKER &
  DUNLOP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By
  

  	
  /s/William
  M. Walker

  
	
   

  	
  Name:

  	
  William
  M. Walker

  
	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK
  OF AMERICA, N.A., as Credit Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By
  

  	
  /s/Jane
  E. Huntington

  
	
   

  	
  Name:

  	
  Jane
  E. Huntington

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TD
  BANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By
  

  	
  /s/William
  J. Olsen

  
	
   

  	
  Name:

  	
  William
  J. Olsen

  
	
   

  	
  Title:

  	
  Regional
  Vice President

  

 

S-1Exhibit 10.23

 

FIRST AMENDMENT TO AMENDED
AND RESTATED WAREHOUSING

CREDIT AND SECURITY
AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED
WAREHOUSING CREDIT AND SECURITY AGREEMENT (this “Amendment”) is made as
of November 30, 2009, by and between GREEN PARK FINANCIAL LIMITED
PARTNERSHIP and WALKER & DUNLOP, LLC (collectively, the “Borrowers”),
BANK OF AMERICA, N.A., as credit agent (the “Credit Agent”), and the
lenders party hereto (the “Lenders”). Capitalized terms used herein
without definition have the meanings specified therefor in that certain Amended
and Restated Warehousing Credit and Security Agreement dated as of October 15,
2009, among the Borrowers, the Credit Agent, and the Lenders (the “Loan
Agreement”).

 

R E C I T A L S

 

The Borrowers, the Credit Agent, and the Lenders
desire to amend the Loan Agreement on the terms and conditions set forth
herein.

 

GPF has no Warehousing Advances outstanding under
the Loan Agreement, and does not anticipate any new Warehousing Advances being
required to be made to it pursuant to the Transition Services Agreement (as
defined in the Loan Agreement).

 

NOW, THEREFORE, in consideration of the agreements
of the parties set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

1.             Amendment. Effective as
of the Effective Date (as hereafter defined), the Loan Agreement is amended as
follows:

 

(a)         Clause (a) of Section 1.2
of the Loan Agreement is hereby amended by replacing the date “November 30,
2009” where it appears therein with the date “November 29, 2010.”

 

(b)         Section 8.8 is hereby
deleted in its entirety and replaced with the following:

 

“8.8      Minimum Tangible Net Worth

 

Permit W&D’s Adjusted Tangible Net Worth at any
time to be (i) less than $75,000,000, to be tested on the last day of each
Fiscal Quarter occurring, or (ii) otherwise not in compliance with
applicable requirements of HUD, Investors (including Freddie Mac) or Fannie
Mae.”

 

(c)          Section 13.1 is hereby
amended by deleting the following definitions in their entirety, and replacing
them with the following:

 

“Applicable Margin” means (a) for LIBOR
Loans, 2.75%, and (b) for Base Rate Loans, 2.75%.

 

 

“Required Lenders” means, as of any
particular date (a) if no Warehousing Advances are outstanding, Lenders
whose Warehousing Commitment Amounts aggregate at least 51% of the Warehousing
Commitment Amounts of all Lenders who are not Delinquent Lenders, or (b) if
any Warehousing Advances are outstanding, Lenders holding at least 51% of the
aggregate unpaid principal amount of all then outstanding Warehousing Advances
of Lenders who are not Delinquent Lenders; provided, however, that at any time
that the Credit Agent holds not less than the lesser of (a) a Commitment
Percentage equal to or greater than 33-1/3%, or (b) a Warehousing
Commitment Amount of not less than $50,000,000, the term “Required Lenders”
shall include the Credit Agent. No Lender which is a Delinquent Lender shall be
considered a “Lender” for the purposes of determining the “Required Lenders.”

 

(d)         Exhibit C to the Loan
Agreement is hereby deleted in its entirety and replaced with the form of Exhibit C
annexed hereto.

 

(e)          GPF is hereby removed as a
Borrower from the Loan Agreement for all purposes, and all applicable
corresponding changes reflecting the deletion of GPF are deemed made.

 

2.              Accordion Option.

 

(a)         Capitalized Terms used in
this Section 2 which are not defined in the Loan Agreement or defined
elsewhere in this Amendment have the meanings specified therefor in Section 2(g),
below.

 

(b)         At the request of the
Borrowers as provided herein, the Warehousing Commitment Amount may be
increased by an amount of up to $50,000,000 (bringing the total Warehousing
Commitment Amount to a maximum of $150,000,000), upon the Credit Agent’s
determination that the Accordion Conditions have been fully satisfied. In such
event, subject to all applicable provisions of the Accordion Loan Documents,
the Lenders and the Accordion Lenders shall thereafter make Warehousing
Advances to the Borrowers based upon the increased Warehousing Commitment
Amount and their respective Commitment Percentages. The obligations of the
Lenders and the Accordion Lenders shall be several and not joint.

 

(c)          With respect to any increase
to the Warehousing Commitment Amount requested by the Borrowers, the Borrowers
hereby acknowledge and agree as follows:

 

(i)            The request for such
increase (the “Accordion Notice”) must (A) be in writing, and (B) specify
the amount of the requested increase to the Warehousing Commitment Amount,
which requested increase (x) may not exceed $50,000,000, and (y) must
be at least $15,000,000.

 

2

 

(ii)           Credit Agent will manage all
aspects of the proposed syndication of the requested increase to the
Warehousing Commitment Amount, including, without limitation, the final
allocations of the increased Warehousing Commitment Amount among the Lenders
and the Accordion Lenders, the respective Commitment Percentages, and the
allocation of interest and fees.

 

(iii)          After the Borrowers’ request
to increase the Warehousing Commitment Amount, the Borrowers shall cooperate
with the Credit Agent in connection with the efforts of the Credit Agent to
achieve a Successful Accordion Syndication, to include, among other things: (a) permitting
and facilitating direct contact during the syndication between each Borrower’s
senior officers, representatives and advisors, on the one hand, and prospective
lenders, on the other hand, at such times and places as the Credit Agent may
reasonably request; (b) providing to the Credit Agent and prospective
Accordion Lenders all financial and other information as they may reasonably
request, including, without limitation, projections and forecasts; and (c) assistance
in the preparation of a confidential information memorandum and other marketing
materials to be used in connection with the proposed syndication of the
requested increased Warehousing Commitment Amount.

 

(d)         The Borrowers may give only
one Accordion Notice.

 

(e)          The Credit Agent (i) is
only agreeing to use reasonable and customary efforts to achieve a Successful
Accordion Syndication, (ii) is not, nor is any Lender, agreeing or
committing to increase the amount of its Warehousing Commitment, and (iii) is
not guarantying that any efforts to achieve a Successful Accordion Syndication
will succeed.

 

(f)          Credit Agent may elect, in
its discretion, to abandon its efforts to achieve Successful Accordion
Syndication if it determines that such efforts are not likely to succeed. In
such event, (i) the Credit Agent and Lenders shall have no obligation to
increase the existing Warehousing Commitment Amount, (ii) the Credit Agent
and the Lenders shall have no liability to the Borrowers or any other Person
with respect to the efforts undertaken by the Credit Agent in connection
therewith or the failure to achieve a Successful Accordion Syndication, and
(iii) the Borrowers promptly shall reimburse the Credit Agent for all
costs and expenses incurred by the Credit Agent in its syndication efforts.

 

(g)          As used herein, the
following terms have the following meanings:

 

“Accordion Conditions”
means the satisfaction of all of the following conditions precedent, each as
determined by the Credit Agent:

 

(a)           A Successful Accordion
Syndication shall have been achieved (including, without limitation, the
execution and delivery by all applicable parties

 

3

 

of all Accordion Loan Documents and the satisfaction
of all applicable conditions set forth therein) within thirty (30) days after
the Credit Agent’s receipt of the Accordion Notice;

 

(b)         As of the date of the
Accordion Notice and as of the effective date of the increase to the
Warehousing Commitment Amount, no Default or Event of Default shall have then
occurred and be continuing;

 

(c)          The Borrowers shall have
paid all fees required by this Agreement and in any other agreement between the
Borrowers and the Credit Agent; and

 

(d)         The Borrowers shall have
paid all fees, costs, and expenses (including, without limitation, all
attorneys’ reasonable fees) incurred by the Credit Agent, the Lenders, and the
Accordion Lenders in connection with the Successful Accordion Syndication and
the preparation, negotiation, execution, and delivery of the Accordion Loan
Documents.

 

“Commitment Percentage”
means, in the event of a Successful Accordion Syndication, the respective
Warehousing Commitments of the Lenders and each Accordion Lender, expressed as
a percentage of the total increased Warehousing Commitment Amount.

 

“Accordion Lender”
means each lender, acceptable to the Credit Agent, in its discretion, and
reasonably acceptable to the Borrowers, which makes an Accordion Commitment and
becomes a “Lender” obligated to make Warehousing Advances pursuant to the terms
and conditions of the Accordion Loan Documents.

 

“Accordion Loan Documents”
means such amendments, restatements, and modifications of the existing Loan
Documents, together with any additional documents, instruments and agreements,
deemed necessary or desirable in the sole discretion of the Credit Agent to
evidence and effectuate a Successful Accordion Syndication, and the resulting
increase to the Warehousing Commitment Amount, all of the foregoing in form and
substance satisfactory to the Credit Agent, the Borrower, the Accordion
Lenders, and the Required Lenders if the Lenders would be adversely affected
thereby (or if otherwise required by this Agreement).

 

“Successful Accordion
Syndication” means the arrangement of commitments from one or more
Accordion Lenders by the Credit Agent, on terms and conditions acceptable to
the Credit Agent in all respects, resulting in an increase in the Warehousing
Commitment Amount by the amount requested by the Borrowers in the Accordion
Notice (or such lesser amount as may be agreed upon by the Credit Agent and the
Borrower) pursuant to the Accordion Loan Documents.

 

4

 

3.              Acknowledgments by Borrowers. The Borrowers
acknowledge, confirm and agree that:

 

(a)           This Amendment is a Loan
Document, and all references in any Loan Document to the Borrowers’ Obligations
shall mean and include the Obligations as amended by this Amendment.

 

(b)           Except as provided herein,
the terms and conditions of the Loan Agreement and the other Loan Documents
remain in full force and effect, and the Borrowers hereby (x) ratify,
confirm and reaffirm all and singular of the terms and conditions of the Loan
Agreement and the other Loan Documents, and (y) represent and warrant
that:

 

(i)           no Default or Event of
Default exists as of the date the Borrowers execute this Amendment, nor will a
Default or Event of Default exist as of the Effective Date.

 

(ii)          the representations and
warranties made by the Borrowers in the Loan Agreement and the other Loan
Documents are true and correct as of the date hereof, and will be true and
correct as of the Effective Date, except as to (1) matters which speak to
a specific date, (2) changes in the ordinary course to the extent
permitted and contemplated by the Loan Agreement, and (3) as reflected in
the updated Exhibits annexed to this Amendment.

 

(iii)         the Borrowers have the power
and authority and legal right to execute, deliver and perform this Amendment,
have taken all necessary action to authorize the execution, delivery, and
performance of this Amendment, and the person executing and delivering this
Amendment on behalf of each Borrower is duly authorized to do so.

 

(iv)        this Amendment constitutes
the legal, valid and binding obligation of the Borrowers, enforceable against
the Borrowers in accordance with its terms, subject to the effect of applicable
bankruptcy and other similar laws affecting the rights of creditors generally
and the effect of equitable principles whether applied in an action at law or a
suit in equity.

 

(v)         Exhibits D,
E, F, G, H, J, and K attached hereto
are true, correct, and complete updates as of the Effective Date of the
corresponding Exhibits to the Loan Agreement.

 

(c)           The Borrowers shall promptly
pay upon receipt of an invoice or statement therefor the reasonable attorneys’
fees and expenses and disbursements incurred by the Credit Agent and the
Lenders in connection with this Amendment and any prior matters involving the
Loan.

 

5

 

(d)             Each Borrower acknowledges
that it has no defenses, set offs or counterclaims with respect to any of its
obligations to the Credit Agent or the Lenders, and hereby releases, waives,
and forever relinquishes all claims, demands, obligations, liabilities, and
causes of action whatever kind or nature, whether known or unknown, which it
has or may have as of the date hereof and as of the Effective Date against the
Credit Agent or any Lender, or their respective affiliates, officers, directors,
employees, agents, attorneys, independent contractors, and predecessors,
together with their successors and assigns, directly or indirectly arising out
of or based upon any matter connected with the Loan Agreement or the
administration thereof or the obligations created thereby (including pursuant
to this Amendment).

 

4.             Conditions Precedent. This
Amendment shall be effective upon the satisfaction by the Borrowers of, or
written waiver by the Credit Agent and the Lenders of, the following conditions
and any other conditions set forth in this Amendment, by no later than 4:00 p.m.
(Boston time) on the date of this Amendment, as such time and date may be
extended in writing by the Credit Agent and the Lenders, in their sole
discretion (with the date, if at all, by which such conditions have been
satisfied or waived being referred to herein as, the “Effective Date”), failing
which this Amendment and all related documents shall be null and void at the
option of the Credit Agent and the Lenders:

 

(a)           Delivery by the Borrowers to
the Credit Agent and each Lender of the following:

 

(i)           This Amendment, duly
executed by the Borrowers, the Credit Agent and each Lender.

 

(ii)          An opinion of counsel to the
Borrowers in form and substance satisfactory to the Credit Agent and the
Lenders.

 

(iii)         Such other documents as the
Credit Agent or any Lender reasonably may require, duly executed and delivered.

 

(b)           No Default or Event of
Default shall have occurred and be continuing.

 

(c)           In addition to all other
expense payment and reimbursement obligations of the Borrowers under the Loan
Agreement and other Loan Documents, the Borrowers will, promptly following
their receipt of an appropriate invoice therefor, pay or reimburse the Credit
Agent and each Lender for all of their respective reasonable out of pocket
costs and expenses (including, without limitation, reasonable attorneys’ fees
and expenses and disbursements) incurred in connection with the preparation of
this Amendment and any other documents in connection herewith and the matters
addressed in and contemplated by, this Amendment.

 

(d)           The Borrowers shall have
executed and delivered to (i) the Credit Agent, and (ii) the Lenders,
separate Fee Letters, in form and substance acceptable to the Credit

 

6

 

Agent and the Lenders, respectively, and the Credit
Agent and the Lenders shall have received payment in immediately available
funds of all amounts payable thereunder in connection with this Amendment.

 

5.             Miscellaneous.

 

(a)           This Amendment shall be
governed in accordance with the internal laws of the Commonwealth of
Massachusetts (without regard to conflict of laws principles) as an instrument
under seal.

 

(b)           This Amendment may be
executed in one or more counterparts, each of which when so executed shall be
deemed to be an original, but all of which when taken together shall constitute
one and the same instrument. Signatures transmitted electronically (including
by fax or e-mail) shall have the same legal effect as originals, but each party
nevertheless shall deliver original signed counterparts of this Amendment to
each other party, upon request.

 

(c)           This Amendment constitutes
the complete agreement among the Borrowers, the Credit Agent, and the Lenders
with respect to the subject matter of this Amendment and supersedes all prior
agreements and understanding relating to the subject matter of this Amendment,
and may not be modified, altered, or amended except in accordance with the Loan
Agreement.

 

(d)           Time is of the essence with
respect to all aspects of this Amendment.

 

[Remainder of page intentionally
left blank]

 

7

 

Executed as a sealed instrument as of the date first
above written.

 

	
   

  	
  GREEN PARK FINANCIAL LIMITED

  PARTNERSHIP, a District of Columbia limited

  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WALKER & DUNLOP GP, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability company

  
	
   

  	
  Its:

  	
  Managing General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Deborah A. Wilson

  
	
   

  	
   

  	
  Its:

  	
  SVP-CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WALKER & DUNLOP, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Deborah A. Wilson

  
	
   

  	
  Name:

  	
  Deborah A. Wilson

  
	
   

  	
  Title:

  	
  SVP-CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as Credit Agent and a

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jane E. Huntington

  
	
   

  	
  Name:

  	
  Jane E. Huntington

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TD BANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ William J. Olsen

  
	
   

  	
  Name:

  	
  William J. Olsen

  
	
   

  	
  Title:

  	
  Regional Vice President

  

 

Signature page to First Amendment

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