Document:

exv10w5xcy

Exhibit 10.5(c)

THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

     THIS THIRD AMENDMENT (this “Amendment”) is made as of the 29th day of March, 2011 to that
certain EMPLOYMENT AGREEMENT, dated as of January 30, 2009 (the “Employment Agreement”), by and
between JAMES W. THORNE (“Employee”) and JOS. A. BANK CLOTHIERS, INC. (“Employer”).

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of which are hereby
acknowledged, Employer and Employee, being the sole parties to the Employment Agreement, hereby
amend the Employment Agreement and agree as follows:

     1. Subject to earlier termination as otherwise set forth in the Employment Agreement, the last
day of the Employment Period shall be February 2, 2013.

     2. Effective on the day on which general salary increases, if any, become effective for other
employees of the Employer for fiscal 2011, Employee’s Base Salary shall be $440,000.

     Except as specifically amended hereby, the Employment Agreement shall remain in full force and
effect according to its terms. To the extent of any conflict between the terms of this Amendment
and the terms of the remainder of the Employment Agreement, the terms of this Amendment shall
control and prevail. Capitalized terms used but not defined herein shall have those respective
meanings attributed to them in the Employment Agreement. This Amendment shall hereafter be deemed a
part of the Employment Agreement for all purposes. The terms of employment set forth in this
Amendment have been approved by the Compensation Committee of the Board of Directors of the
Employer.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above
written.

JOS. A. BANK CLOTHIERS, INC.

	 	 	 	 	 	 	 	 	 

	By:

	 	/s/ CHARLES D. FRAZER
 

Charles D. Frazer,
	 	 
	 	/s/ JAMES W. THORNE
 

JAMES W. THORNE
	 	 
	 

	 	Senior Vice President-General Counselexv10w6xey

Exhibit 10.6(e)

NINTH AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT

AGREEMENT

     THIS NINTH AMENDMENT (this “Amendment”) is made as of the 29th day of March, 2011
to that certain AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of May 15, 2002, as amended
(collectively, the “Employment Agreement”), by and between CHARLES D. FRAZER (“Employee”) and JOS.
A. BANK CLOTHIERS, INC. (“Employer”).

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of which are hereby
acknowledged, Employer and Employee, being the sole parties to the Employment Agreement, hereby
amend the Employment Agreement and agree as follows:

     1. Subject to earlier termination as otherwise set forth in the Employment Agreement, the last
day of the Employment Period shall be February 2, 2013.

     2. Effective on the day on which general salary increases, if any, become effective for other
employees of the Employer for fiscal 2011, Employee’s Base Salary shall be $285,600.

     Except as specifically amended hereby, the Employment Agreement shall remain in full force and
effect according to its terms. To the extent of any conflict between the terms of this Amendment
and the terms of the remainder of the Employment Agreement, the terms of this Amendment shall
control and prevail. Capitalized terms used but not defined herein shall have those respective
meanings attributed to them in the Employment Agreement. This Amendment shall hereafter be deemed a
part of the Employment Agreement for all purposes.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above
written.

JOS. A. BANK CLOTHIERS, INC.

	 	 	 	 	 	 	 	 	 

	By:

	 	/s/ R. Neal Black
 

R. Neal Black,
	 	 
	 	/s/ CHARLES D. FRAZER
 

CHARLES D. FRAZER
	 	 
	 

	 	President-Chief Executive Officerexv10w8xgy

Exhibit 10.8(g)

THIRTEENTH AMENDMENT TO EMPLOYMENT AGREEMENT

     THIS THIRTEENTH AMENDMENT (this “Amendment”) is made as of the 29th day of March,
2011 to that certain EMPLOYMENT AGREEMENT, dated as of November 30, 1999, as heretofore amended
(collectively, the “Employment Agreement”), by and between ROBERT HENSLEY (“Employee”) and JOS. A.
BANK CLOTHIERS, INC. (“Employer”).

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of which are hereby
acknowledged, Employer and Employee, being the sole parties to the Employment Agreement, hereby
amend the Employment Agreement and agree as follows:

     1. Subject to earlier termination as otherwise set forth in the Employment Agreement, the last
day of the Employment Period shall be February 2, 2013.

     2. Effective on the day on which general salary increases, if any, become effective for other
employees of the Employer for fiscal 2011, Employee’s Base Salary shall be $494,900.

     Except as specifically amended hereby, the Employment Agreement shall remain in full force and
effect according to its terms. To the extent of any conflict between the terms of this Amendment
and the terms of the remainder of the Employment Agreement, the terms of this Amendment shall
control and prevail. Capitalized terms used but not defined herein shall have those respective
meanings attributed to them in the Employment Agreement. This Amendment shall hereafter be deemed a
part of the Employment Agreement for all purposes. The terms of employment set forth in this
Amendment have been approved by the Compensation Committee of the Board of Directors of the
Employer.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above
written.

JOS. A. BANK CLOTHIERS, INC.

	 	 	 	 	 	 	 	 	 

	By:

	 	/s/ CHARLES D. FRAZER
 

Charles D. Frazer,
	 	 
	 	/s/ ROBERT HENSLEY
 

ROBERT HENSLEY
	 	 
	 

	 	Senior Vice President-General Counselexv10w10xay

Exhibit 10.10(a)

Jerry DeBoer was hired by the Company pursuant to an offer letter, dated November 20, 2000, which
letter is attached as Exhibit 10.10 to the Company’s Annual
Report on Form 10-K for the year ended
February 3, 2001. Effective on the day on which general salary increases, if any, become effective
for other employees of the Employer for fiscal 2011, Mr. DeBoer’s Base Salary shall be $357,200.exv10w11xdy

Exhibit 10.11(d)

FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT

     THIS FOURTH AMENDMENT (this “Amendment”) is made as of the 29th day of March, 2011 to that
certain EMPLOYMENT AGREEMENT, dated as of June 3, 2008 (the “Employment Agreement”), by and between
GARY MERRY (“Employee”) and JOS. A. BANK CLOTHIERS, INC. (“Employer”).

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of which are hereby
acknowledged, Employer and Employee, being the sole parties to the Employment Agreement, hereby
amend the Employment Agreement and agree as follows:

     1. Subject to earlier termination as otherwise set forth in the Employment Agreement, the last
day of the Employment Period shall be February 2, 2013.

     2. Effective on the day on which general salary increases, if any, become effective for other
employees of the Employer for fiscal 2011, Employee’s Base
Salary shall be $465,000.

     Except as specifically amended hereby, the Employment Agreement shall remain in full force and
effect according to its terms. To the extent of any conflict between the terms of this Amendment
and the terms of the remainder of the Employment Agreement, the terms of this Amendment shall
control and prevail. Capitalized terms used but not defined herein shall have those respective
meanings attributed to them in the Employment Agreement. This Amendment shall hereafter be deemed a
part of the Employment Agreement for all purposes. The terms of employment set forth in this
Amendment have been approved by the Compensation Committee of the Board of Directors of the
Employer.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above
written.

JOS. A. BANK CLOTHIERS, INC.

	 	 	 	 	 	 	 	 	 

	By:

	 	/s/ CHARLES D. FRAZER
 

Charles D. Frazer,
	 	 
	 	/s/ GARY MERRY
 

GARY MERRY
	 	 
	 

	 	Senior Vice President-General CounselExhibit 10.1

Exhibit 10.1

	 	 	 
	CREDIT SUISSE SECURITIES (USA) LLC
	 	RBS SECURITIES INC.
	Eleven Madison Avenue
	 	600 Washington Boulevard
	New York, NY 10010
	 	Stamford, CT 06901
	 	 	 
	CREDIT SUISSE AG
	 	THE ROYAL BANK OF SCOTLAND PLC
	Eleven Madison Avenue
	 	600 Washington Boulevard
	New York, NY 10010
	 	Stamford, CT 06901

CONFIDENTIAL

March 25, 2011

Walter Investment Management Corp.

3000 Bayport Drive, Suite 1100

Tampa, FL 33607

Attention: Denmar J. Dixon

PROJECT CARDINAL

$530,000,000 First Lien Senior Secured Credit Facilities

$265,000,000 Second Lien Senior Secured Term Facility

Commitment Letter

Ladies and Gentlemen:

You have advised Credit Suisse AG (acting through such of its affiliates or branches as it
deems appropriate, “CS”), Credit Suisse Securities (USA) LLC (“CS Securities”, and together with CS
and their respective affiliates, “Credit Suisse”), The Royal Bank of Scotland plc (“RBS Bank”) and
RBS Securities Inc. (“RBS Securities” and, together with RBS Bank, “RBS” and together with Credit
Suisse, the “Commitment Parties”, “we”, or “us”) that you intend to acquire (the “Acquisition”)
GTCS Holdings LLC, a Delaware limited liability company (the “Company”), from GTH LLC, a Delaware
limited liability company (the “Seller”), and to consummate the other Transactions (such term and
each other capitalized term used but not defined herein having the meaning assigned to such term in
the Summary of Principal First Lien Terms and Conditions attached hereto as Exhibit A (the “First
Lien Facilities Term Sheet”) or in the Summary of Principal Second Lien Terms and Conditions
attached hereto as Exhibit B (the “Second Lien Facility Term Sheet” and, together with the First
Lien Facilities Term Sheet, the “Term Sheets”)).

You have further advised us that, in connection therewith, the Borrower will obtain (a) the
first lien senior secured credit facilities (the “First Lien Facilities”) described in the First
Lien Facilities Term Sheet, in an aggregate principal amount of up to $530,000,000 and (b) the
second lien senior secured term loan facility (the “Second Lien Term Facility”) described in the
Second Lien Facility Term Sheet in a principal amount of up to $265,000,000. The First Lien
Facilities and the Second Lien Term Facility are collectively referred to herein as the
“Facilities”.

	1.	 	Commitments.

In connection with the foregoing, (a) CS is pleased to advise you of its commitment to provide
50% of the principal amount of the Facilities and (b) RBS Bank (in such capacity, an “Initial
Lender” and, together with CS, the “Initial Lenders”) is pleased to advise you of its

Commitment Letter

 

 

 

commitment to provide 50% of the principal amount of the Facilities, in each case upon the
terms set forth in this commitment letter (including the Term Sheets and other attachments hereto,
this “Commitment Letter”), and subject to the conditions set forth in Section 6 of this Commitment
Letter, the section entitled “Conditions Precedent to Initial Borrowing” in the First Lien
Facilities Term Sheet, the section entitled “Conditions Precedent to Borrowing” in the Second Lien
Facility Term Sheet and Exhibit C to this Commitment Letter. The commitments of CS and RBS Bank
hereunder will be allocated ratably among the Facilities and are several and not joint.

	2.	 	Titles and Roles.

You hereby appoint (a) CS Securities and RBS Securities to act, and CS Securities and RBS
Securities hereby agree to act, as joint bookrunners and joint lead arrangers for the Facilities
(in such capacities, the “Arrangers”), and (b) CS to act, and CS hereby agrees to act, as sole
administrative agent and sole collateral agent for the Facilities (in such capacities, the
“Agent”), in each case upon the terms and subject to the conditions set forth or referred to in
this Commitment Letter. Each of the Commitment Parties, in such capacities, will perform the
duties and exercise the authority customarily performed and exercised by it in such roles. You
agree that Credit Suisse will have “left” placement, and RBS will appear immediately to the right
of Credit Suisse, in any and all marketing materials or other documentation used in connection with
the Facilities. You further agree that no other titles will be awarded and no compensation (other
than that expressly contemplated by this Commitment Letter and the Fee Letters referred to below)
will be paid in connection with the Facilities unless you and we shall so agree.

	3.	 	Syndication.

The Arrangers reserve the right, prior to and/or after the execution of definitive
documentation for the Facilities, to syndicate all or a portion of the Initial Lenders’ respective
commitments with respect to the Facilities to a group of banks, financial institutions and other
institutional lenders (together with the Initial Lenders, the “Lenders”) identified by the
Arrangers in consultation with you, and you agree to provide the Arrangers with a period of at
least 30 consecutive days immediately prior to the Closing Date to syndicate the Facilities.
Notwithstanding the Arrangers right to syndicate the Facilities and receive commitments in respect
thereof, (i) no Initial Lender shall be relieved, released or novated from its obligations
hereunder (including its commitments hereunder) in connection with any syndication, assignment or
participation of the Facilities, including their commitments in respect thereof, until after the
initial funding of the Facilities on the Closing Date has occurred and (ii) no assignment or
novation shall become effective with respect to all or any portion of any Initial Lender’s
commitment in respect of the Facilities until the initial funding of the Facilities on the Closing
Date. We intend to commence syndication efforts promptly upon the execution of this Commitment
Letter, and you agree to actively assist us in completing a satisfactory syndication. Such
assistance shall include (a) your using commercially reasonable efforts to ensure that any
syndication efforts benefit materially from your existing lending and investment banking
relationships and the existing lending and investment banking relationships of the Company, (b)
direct contact between senior management, representatives and advisors of you (and your using
commercially reasonable efforts to cause direct contact between senior management, representatives
and advisors of the Company) and the proposed Lenders, (c) assistance by you (and your using
commercially reasonable efforts to cause the Company to assist) in the preparation of a
Confidential Information Memorandum for each of the Facilities (each, a “Confidential Information
Memorandum”) and other customary marketing materials and presentations to be used in connection
with the syndication (the “Information Materials”), (d) your providing or causing to be provided a
detailed business plan or projections of you and

Commitment Letter

 

2

 

your subsidiaries for the years 2011 through 2016 and for the four quarters beginning with the
second quarter of 2011, in each case in form and substance reasonably satisfactory to the Arrangers
(the “Plan Deliverables”), it being understood and agreed that the Plan Deliverables provided to
the Arrangers prior to the date hereof are in form and substance reasonably satisfactory to the
Arrangers; it being further understood and agreed that you shall promptly provide any significant
revisions to such business plan or projections to the Arrangers and that such revised business plan
or projections shall constitute Plan Deliverables only if such revisions are in form and substance
reasonably satisfactory to the Arrangers, (e) your using commercially reasonable efforts to obtain
promptly after the launch of the general syndication and prior to the Closing Date of a public
corporate credit rating from Standard & Poor’s Ratings Service (“S&P”) and a public corporate
family rating from Moody’s Investors Service, Inc. (“Moody’s”), in each case with respect to you,
and public ratings for each of the Facilities from each of S&P and Moody’s, (f) the hosting, with
the Arrangers, of one or more meetings of prospective Lenders and (g) your ensuring that prior to
and during the syndication of the Facilities, there are no competing issues, offerings, placements
or arrangements of debt securities or commercial bank or other credit facilities by or on behalf of
the Borrower, the Company or their respective subsidiaries being announced, offered, placed or
arranged (other than securitizations and lines of credit obtained by the Borrower, the Company or
any of their respective subsidiaries, in each case, in the ordinary course of business consistent
with past practice and indebtedness permitted to be incurred by the Purchase Agreement) without the
consent of the Arrangers, if such issues, offerings, placements or arrangements could reasonably be
expected to impair the primary syndication of the Facilities. Notwithstanding anything to the
contrary in this Commitment Letter or any other agreement or undertaking to the contrary, the
obtaining of the ratings referenced above shall not constitute a condition to the commitments
hereunder or the funding of the Facilities on the Closing Date.

You agree, at the request of the Arrangers, to assist in the preparation of a version of the
Information Materials to be used in connection with the syndication of the Facilities, consisting
exclusively of information and documentation that is either (a) publicly available (or, in the case
of the Company, of a type that would be publicly available if the Company were a public reporting
company) or (b) not material with respect to you, the Company or your and its subsidiaries or any
of your and its securities for purposes of foreign, United States Federal and state securities laws
(all such Information Materials being “Public Lender Information”). Any information and
documentation that is not Public Lender Information is referred to herein as “Private Lender
Information”. Before distribution of any Information Materials, you agree to execute and deliver
to the Arrangers, (i) a letter in which you authorize distribution of the Information Materials to
Lenders’ employees willing to receive Private Lender Information and (ii) a separate letter in
which you authorize distribution of Information Materials containing solely Public Lender
Information and represent that such Information Materials do not contain any Private Lender
Information, which letter shall in each case include a representation substantially in the form of
the representation set forth in Section 4. You further agree that each document to be disseminated
by any Arranger to any Lender in connection with the Facilities will, at the request of such
Arranger, be identified by you as either (A) containing Private Lender Information or (B)
containing solely Public Lender Information. You acknowledge that the following documents contain
solely Public Lender Information (unless you notify us promptly prior to their intended
distribution that any such document contains Private Lender Information): (1) drafts and final
definitive documentation with respect to the Facilities, including term sheets; (2) administrative
materials prepared by the Commitment Parties for prospective Lenders (such as a lender meeting
invitation, bank allocation, if any, and funding and closing memoranda); (3) notification of
changes in the terms of the Facilities; and (4) other materials (excluding the

Commitment Letter

 

3

 

Projections (as defined below)) intended for prospective Lenders after the initial distribution of Information
Materials.

The Arrangers will manage all aspects of any syndication in consultation with you, including
decisions as to the selection of institutions to be approached and when they will be approached,
when their commitments will be accepted, which institutions will participate, the allocation of the
commitments among the Lenders, any naming rights and the amount and distribution of fees among the
Lenders. To assist the Arrangers in their syndication efforts, you agree promptly to prepare and
provide (and to use commercially reasonable efforts to cause the Company promptly to provide) to
the Arrangers all information with respect to you, the Company and your and its subsidiaries, the
Transactions and the other transactions contemplated hereby, including all financial information
and projections (the “Projections”), as the Arrangers may reasonably request.

Without limiting your obligation to assist with the syndication efforts as set forth herein,
it is understood that the Initial Lenders’ respective commitments hereunder are not conditioned
upon the syndication of, or receipt of commitments in respect of, the Facilities and in no event
shall the commencement of syndication or completion of Successful Syndication (as defined in the
Facilities Fee Letter) constitute a condition to the availability of the Facilities on the Closing
Date.

	4.	 	Information.

Subject to the second paragraph of Section 6, you hereby represent and covenant that (a) all
written information other than the Projections and information of a general economic or industry
nature (the “Information”) that has been or will be made available to any Commitment Party by or on
behalf of you or any of your representatives, when taken as a whole, is or will be, when furnished,
complete and correct in all material respects and does not or will not, when furnished, contain any
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements contained therein not materially misleading in light of the circumstances under which
such statements are made (giving effect to all supplements and updates provided thereto) and (b)
the Projections that have been or will be made available to any Commitment Party by or on behalf of
you or any of your representatives have been or will be prepared in good faith based upon
accounting principles consistent with the historical audited financial statements of you and the
Company and upon assumptions that are reasonable at the time made and at the time the related
Projections are made available to such Commitment Party (it being understood that such Projections
are subject to significant uncertainties and contingencies and that no assurance can be given that
any particular Projections will be realized). You agree that if at any time prior to the later of
(i) the Closing Date and (ii) the completion of a Successful Syndication of the Facilities, any of
the representations in the preceding sentence would be incorrect if the Information and Projections
were being furnished, and such representations were being made, at such time, then you will
promptly supplement the Information and the Projections so that such representations will be
correct under those circumstances. In arranging and syndicating the Facilities, we will be
entitled to use and rely primarily on the Information and the Projections without responsibility
for independent verification thereof.

	5.	 	Fees.

As consideration for the Initial Lenders’ respective commitments hereunder and our agreements
to perform the services described herein, you agree to pay, to the Commitment

Commitment Letter

 

4

 

Parties, the fees set forth in this Commitment Letter and in the Facilities Fee Letter dated the date hereof and
delivered herewith with respect to the Facilities (the “Facilities Fee Letter”) and, to the Agent,
the fees set forth in the Agent Fee Letter dated the date hereof and delivered herewith
with respect to the Facilities (the “Agent Fee Letter” and, together with the Facilities Fee
Letter, the “Fee Letters”).

	6.	 	Conditions Precedent.

The Initial Lenders’ respective commitments hereunder and our agreements to perform the
services described herein, are subject to (a) except as set forth on Schedule 3.7 to the Purchase
Agreement as in effect on the date hereof, since December 31, 2010, there shall not have been,
individually or in the aggregate, a Company Material Adverse Effect (as defined below), (b) the
negotiation, execution and delivery of definitive documentation with respect to the Facilities
(including related collateral agreements) consistent with the Commitment Letter and the Fee Letters
and otherwise reasonably satisfactory to the Commitment Parties and (c) the other conditions set
forth in the section entitled “Conditions Precedent to Initial Borrowing” in the First Lien
Facilities Term Sheet, the section entitled “Conditions Precedent to Borrowing” in the Second Lien
Facility Term Sheet and Exhibit C to this Commitment Letter, and upon satisfaction (or waiver by
each of the Commitment Parties) of such conditions, the initial funding of the Facilities shall
occur.

Notwithstanding anything in this Commitment Letter (including each of the exhibits hereto),
the Fee Letters or the definitive documentation or any other agreement or undertaking related to
the Facilities to the contrary, (a) the only representations the accuracy of which shall be a
condition to the availability of the Facilities on the Closing Date, shall be (i) such of the
representations made by or on behalf of the Seller, the Company and its subsidiaries in the
Purchase Agreement as are material to the interests of the Lenders, but only to the extent that you
have (or an affiliate of yours has) the right (determined without regard to any notice requirement)
to terminate your (or its) obligations under the Purchase Agreement as a result of a breach of such
representations in the Purchase Agreement (to such extent, the “Purchase Agreement
Representations”) and (ii) the Specified Representations (as defined below) and (b) the terms of
the definitive documentation for the Facilities shall be in a form such that they do not impair the
availability of the Facilities on the Closing Date if the conditions set forth or referred to in
the preceding paragraph are satisfied (it being understood that (A) other than with respect to any
UCC Filing Collateral or Stock Certificates (each as defined below), to the extent any Collateral
cannot be delivered, or a security interest therein cannot be perfected, on the Closing Date after
your use of commercially reasonable efforts to do so, the delivery of, or perfection of a security
interest in, such Collateral shall not constitute a condition precedent to the availability of the
Facilities on the Closing Date, but such Collateral shall instead be required to be delivered, or a
security interest therein perfected, after the Closing Date pursuant to arrangements and timing to
be mutually agreed by the parties hereto acting reasonably, (B) with respect to perfection of
security interests in UCC Filing Collateral, your sole obligation shall be to deliver, or cause to
be delivered, necessary UCC financing statements to the Agent and to irrevocably authorize and to
cause the applicable guarantor to irrevocably authorize the Agent to file such UCC financing
statements, (C) with respect to perfection of security interests in Stock Certificates, your sole
obligation shall be to deliver to the Agent or its legal counsel Stock Certificates together with
undated stock powers executed in blank and (D) except as expressly set forth in the preceding
clause (a) or (b), nothing in preceding clause (b) shall be construed to limit the applicability of
individual conditions expressly set forth in Section 6, in the section entitled “Conditions
Precedent to Initial Borrowing” in the First Lien Facilities Term Sheet, in the section entitled
“Conditions Precedent to Borrowing” in the Second Lien Facility Term Sheet or in Exhibit C to

Commitment Letter

 

5

 

this Commitment Letter. For purposes hereof, (1) “UCC Filing Collateral” means Collateral consisting of
assets of the Company, the Borrower and their respective subsidiaries for which a security interest
can be perfected by filing a Uniform Commercial Code financing statement, (2) “Stock Certificates” means Collateral consisting of stock certificates representing capital
stock held by the Borrower and its subsidiaries required as Collateral pursuant to the Term Sheets
and (3) “Specified Representations” means the representations and warranties set forth in the Term
Sheets relating to corporate existence (subject to customary materiality thresholds), power and
authority, due authorization, execution and delivery, in each case as they relate to the entering
into and performance of the definitive documentation for the Facilities, the enforceability of such
documentation, Federal Reserve margin regulations, the PATRIOT Act, the Investment Company Act, no
conflicts between the definitive documentation for the Facilities and (x) the organization
documents of the Loan Parties, the Purchase Agreement or any Excluded Debt or (y) applicable law in
any material respect, status of the Facilities and the guarantees thereof as senior debt, solvency
as of the Closing Date (after giving effect to the Transactions) of the Borrower and its
subsidiaries on a consolidated basis and, subject to the limitations set forth in the prior
sentence, creation, validity, perfection and priority of security interests. This paragraph, and
the provisions herein, shall be referred to as the “Limited Conditionality Provisions”.

For purposes hereof, “Company Material Adverse Effect” means any change, development,
circumstance, effect, event or fact (a) that has, or would reasonably be expected to have, a
material adverse effect upon the financial condition, business, assets, liabilities or results of
operations of the Group Companies, taken as a whole or (b) would reasonably be expected to prevent
or materially impede or materially delay the performance in all material respects by the Seller
and/or the Company of their respective obligations under the Purchase Agreement or the consummation
of the transactions contemplated thereby; provided, however, that any adverse change, event or
effect arising from or related to: (i) conditions affecting the United States economy generally,
(ii) national or international political or social conditions, including the engagement by the
United States in hostilities, whether or not pursuant to the declaration of a national emergency or
war, or the occurrence of any military or terrorist attack upon the United States, or any of its
territories, possessions, or diplomatic or consular offices or upon any military installation,
equipment or personnel of the United States, (iii) changes after the date hereof in financial,
banking or securities markets (including any disruption thereof and any decline in the price of any
security or any market index), (iv) changes after the date hereof in GAAP, (v) changes after the
date hereof in any Law or other binding directives issued by any Governmental Entity, (vi) changes
after the date hereof that are generally applicable to the industries or markets in which the Group
Companies operate, (vii) the public announcement of the transactions contemplated by the Purchase
Agreement, (viii) any material failure by the Company to meet any internal or published
projections, forecasts or revenue or earnings predictions for any period ending on or after the
date of the Purchase Agreement; provided that any change, effect, event or occurrence that caused
or contributed to such failure to meet projections, forecasts or predictions shall not be excluded
pursuant to this clause (viii), (ix) the taking of any action contemplated by the Purchase
Agreement and the other agreements contemplated thereby, including the completion of the
transactions contemplated thereby, (x) any adverse change in or effect on the business of the Group
Companies that is cured prior to the Closing, or (xi) the matter set forth in Schedule I to this
Commitment Letter, shall not (for purposes of clause (a) of this definition) be taken into account
in determining whether a “Company Material Adverse Effect” has occurred; provided, further,
however, that any change, event or effect referred to in clauses (i) through (vi) may be taken into
account in determining whether or not there has been a “Company Material Adverse Effect” to the
extent such change, event or effect has a disproportionate adverse affect on the Group Companies,
taken as a whole, as compared to other participants in the industry in which the Group Companies
operate (in which case only the incremental disproportionate impact

Commitment Letter

 

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or impacts may be taken into account in determining whether or not there has been or may be a “Company Material Adverse
Effect”). Solely for purposes of this paragraph, any capitalized
terms used in the paragraph shall have the same meaning as set forth in the Purchase Agreement
as in effect on the date hereof.

	7.	 	Indemnification; Expenses.

You agree (a) to indemnify and hold harmless each Commitment Party and its officers,
directors, employees, agents, advisors, representatives, controlling persons, members and
successors and assigns (each, an “Indemnified Person”) from and against any and all losses, claims,
damages, liabilities and expenses, joint or several, to which any such Indemnified Person may
become subject arising out of or in connection with this Commitment Letter, the Fee Letters, the
Transactions, the Facilities or any related transaction or any claim, litigation, investigation or
proceeding relating to any of the foregoing, regardless of whether any such Indemnified Person is a
party thereto (and regardless of whether such matter is initiated by a third party or by you, the
Company or any of your or their affiliates or equity holders), and to reimburse each such
Indemnified Person upon demand for any reasonable legal or other expenses incurred in connection
with investigating or defending any of the foregoing; provided that the foregoing indemnity will
not, as to any Indemnified Person, apply to losses, claims, damages, liabilities or related
expenses to the extent they are found in a final, non-appealable judgment of a court of competent
jurisdiction to have resulted primarily from the willful misconduct or gross negligence of such
Indemnified Person, (b) to reimburse each Commitment Party from time to time, upon presentation of
a summary statement, for all reasonable out-of-pocket expenses (including, but not limited to,
expenses of such Commitment Party’s due diligence investigation, consultants’ fees, syndication
expenses, travel expenses and fees, and disbursements and other charges of counsel) incurred in
connection with the Facilities and the preparation and negotiation of this Commitment Letter, the
Fee Letters, the definitive documentation for the Facilities and any ancillary documents and
security arrangements in connection therewith and (c) to reimburse each Commitment Party from time
to time, upon presentation of a summary statement, for all out-of-pocket expenses (including, but
not limited to, consultants’ fees, travel expenses and fees, and disbursements and other charges of
counsel) incurred in connection with the enforcement of this Commitment Letter, the Fee Letters,
the definitive documentation for the Facilities and any ancillary documents and security
arrangements in connection therewith. You agree that, notwithstanding any other provision of this
Commitment Letter, no Indemnified Person shall have any liability (whether direct or indirect, in
contract or tort or otherwise) to you or your subsidiaries or affiliates or to your or their
respective equity holders or creditors or any other person arising out of, related to or in
connection with any aspect of the Transactions, except to the extent of direct, as opposed to
special, indirect, consequential or punitive, damages determined in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted from such Indemnified Person’s gross
negligence or willful misconduct.

	8.	 	Sharing Information; Absence of Fiduciary Relationship; Affiliate Activities.

You acknowledge that each Commitment Party may be providing debt financing, equity capital or
other services (including financial advisory services) to other companies in respect of which you
may have conflicting interests regarding the transactions described herein or otherwise. You also
acknowledge that we do not have any obligation to use in connection with the transactions
contemplated by this Commitment Letter, or to furnish to you, confidential information obtained by
any of us from other companies.

Commitment Letter

 

7

 

You further acknowledge and agree that (a) no fiduciary, advisory or agency relationship
between you and any Commitment Party is intended to be or has been created in respect of any of the
transactions contemplated by this Commitment Letter, irrespective of whether any
Commitment Party has advised or is advising you on other matters, (b) each Commitment Party,
on the one hand, and you, on the other hand, have an arm’s-length business relationship that does
not directly or indirectly give rise to, nor do you rely on, any fiduciary duty on the part of any
Commitment Party, (c) you are capable of evaluating and understanding, and you understand and
accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter,
(d) you have been advised that each Commitment Party is engaged in a broad range of transactions
that may involve interests that differ from your interests and that no Commitment Party has any
obligation to disclose such interests and transactions to you by virtue of any fiduciary, advisory
or agency relationship and (e) you waive, to the fullest extent permitted by law, any claims you
may have against any Commitment Party for breach of fiduciary duty or alleged breach of fiduciary
duty and agree that no Commitment Party shall have any liability (whether direct or indirect) to
you in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on
behalf of or in right of you, including your equity holders, employees or creditors. Additionally,
you acknowledge and agree that none of the Commitment Parties is advising you as to any legal, tax,
investment, accounting or regulatory matters in any jurisdiction (including, without limitation,
with respect to any consents needed in connection with the transactions contemplated hereby). You
shall consult with your own advisors concerning such matters and shall be responsible for making
your own independent investigation and appraisal of the transactions contemplated hereby
(including, without limitation, with respect to any consents needed in connection therewith), and
none of the Commitment Parties shall have any responsibility or liability to you with respect
thereto. Any review by any Commitment Party of you, the Company, the Transactions, the other
transactions contemplated hereby or other matters relating to such transactions will be performed
solely for the benefit of such Commitment Party and shall not be on behalf of you or any of your
affiliates.

You further acknowledge that each Commitment Party is a full-service securities firm engaged
in securities trading and brokerage activities as well as providing investment banking and other
financial services. In the ordinary course of business, a Commitment Party may provide investment
banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the
accounts of its customers, equity, debt and other securities and financial instruments (including
bank loans and other obligations) of, you, the Company and other companies with which you or the
Company may have commercial or other relationships. With respect to any securities and/or
financial instruments so held by any Commitment Party or any of its customers, all rights in
respect of such securities and financial instruments, including any voting rights, will be
exercised by the holder of the rights, in its sole discretion.

	9.	 	Assignments; Amendments; Governing Law, Etc.

This Commitment Letter shall not be assignable by you without the prior written consent of
each of the Commitment Parties (and any attempted assignment without such consent shall be null and
void), is intended to be solely for the benefit of the parties hereto (and Indemnified Persons),
and is not intended to confer any benefits upon, or create any rights in favor of, any person other
than the parties hereto (and Indemnified Persons). Any and all obligations of, and services to be
provided by, any Commitment Party hereunder (including, without limitation, any Initial Lender’s
commitment) may be performed and any and all rights of any Commitment Party hereunder may be
exercised by or through any of its respective affiliates or branches and, in connection with such
performance or exercise, such Commitment Party may exchange with such affiliates or branches
information concerning you and your affiliates that may be the subject of

Commitment Letter

 

8

 

the transactions contemplated hereby and, to the extent so employed, such affiliates and branches shall be entitled
to the benefits afforded to the Commitment Parties hereunder. This Commitment Letter may not be
amended or any provision hereof waived or modified except by an instrument
in writing signed by each of the Commitment Parties and you. This Commitment Letter may be
executed in any number of counterparts, each of which shall be an original and all of which, when
taken together, shall constitute one agreement. Delivery of an executed counterpart of a signature
page of this Commitment Letter by facsimile or other electronic transmission shall be effective as
delivery of a manually executed counterpart hereof. Section headings used herein are for
convenience of reference only, are not part of this Commitment Letter and are not to affect the
construction of, or to be taken into consideration in interpreting, this Commitment Letter. You
acknowledge that information and documents relating to the Facilities may be transmitted through
SyndTrak, Intralinks, the Internet, e-mail or similar electronic transmission systems, and that
none of the Commitment Parties shall be liable for any damages arising from the unauthorized use by
others of information or documents transmitted in such manner. Notwithstanding anything in Section
12 to the contrary, any Commitment Party may place advertisements in financial and other newspapers
and periodicals or on a home page or similar place for dissemination of information on the Internet
or World Wide Web as it may choose, and circulate similar promotional materials, after the closing
of the Transactions in the form of a “tombstone” or otherwise describing the names of you, the
Company and your and its affiliates (or any of them), and the amount, type and closing date of such
Transactions, all at such Commitment Party’s expense. This Commitment Letter and the Fee Letters
supersede all prior understandings, whether written or oral, between us with respect to the
Facilities. THIS COMMITMENT LETTER AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED
TO THIS COMMITMENT LETTER (INCLUDING, WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR
TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

	10.	 	Jurisdiction.

Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and
its property, to the exclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in the Borough of Manhattan in New York City, and any appellate
court from any thereof, in any suit, action or proceeding arising out of or relating to this
Commitment Letter, the Fee Letters or the transactions contemplated hereby or thereby, and agrees
that all claims in respect of any such suit, action or proceeding may be heard and determined only
in such New York State court or, to the extent permitted by law, in such Federal court; provided
that suit for the recognition or enforcement of any judgment obtained in any such New York State or
Federal court may be brought in any other court of competent jurisdiction, (b) waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Commitment Letter, the Fee Letters or the transactions contemplated hereby or thereby in any New
York State court or in any such Federal court, (c) waives, to the fullest extent permitted by law,
the defense of an inconvenient forum to the maintenance of such suit, action or proceeding in any
such court and (d) agrees that a final judgment in any such suit, action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Service of any process, summons, notice or document by registered mail
addressed to you at the address above shall be effective service of process against you for any
suit, action or proceeding brought in any such court.

Commitment Letter

 

9

 

	11.	 	Waiver of Jury Trial.

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION,
PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF
THIS COMMITMENT LETTER, ANY FEE LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER OR THEREUNDER.

	12.	 	Confidentiality.

This Commitment Letter is delivered to you on the understanding that neither this Commitment
Letter nor the Fee Letters nor any of their terms or substance, nor the activities of any
Commitment Party pursuant hereto, shall be disclosed, directly or indirectly, to any other person
except (a) if the Commitment Parties agree in writing to such proposed disclosure, (b) to your
officers, directors, employees, attorneys, accountants and advisors on a confidential and
need-to-know basis or (c) pursuant to the order of any court or administrative agency in any
pending or legal administrative proceeding or otherwise as required by applicable law or compulsory
legal process or to the extent requested or required by governmental and/or regulatory authorities,
in each case based on the reasonable advice of your legal counsel (in which case, to the extent
permitted by law, you agree to inform us promptly thereof prior to such disclosure); provided that
(i) you may disclose this Commitment Letter and the contents hereof (but not any Fee Letter or the
contents thereof) in any proxy or other public filing relating to the Transactions, (ii) you may
disclose the Term Sheets to rating agencies in connection with obtaining ratings for you and the
Facilities, (iii) you may disclose the fees contained in this Commitment Letter and in the Fee
Letters as part of a generic disclosure of aggregate sources and uses related to fee amounts to the
extent customary or required in marketing materials, any proxy or other public filing or any
prospectus or other offering memorandum and (iv) you may disclose this Commitment Letter and the
contents hereof and, to the extent portions thereof have been redacted in a manner to be mutually
agreed upon, the Fee Letters, to the Company and the Seller and their respective officers,
directors, employees, attorneys, accountants and advisors on a confidential and need-to-know basis.

Each Commitment Party will treat as confidential all confidential information provided to it
by or on behalf of you hereunder; provided that nothing herein shall prevent it from disclosing any
such information (a) pursuant to the order of any court or administrative agency or in any pending
legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal
process, (b) upon the request or demand of any regulatory authority having jurisdiction over such
Commitment Party, (c) to the extent that such information becomes publicly available other than by
reason of disclosure by any Commitment Party in violation of this paragraph, (d) to such Commitment
Party’s affiliates and to its and their respective employees, legal counsel, independent auditors
and other experts or agents who are informed of the confidential nature of such information, (e) to
actual or potential assignees, participants or derivative investors in the Facilities who agree to
be bound by the terms of this paragraph or substantially similar confidentiality provisions, (f) to
the extent permitted by Section 9 or (g) for purposes of establishing a “due diligence” defense.

Notwithstanding anything herein to the contrary, any party to this Commitment Letter (and any
employee, representative or other agent of such party) may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the transactions contemplated by
this Commitment Letter and the Fee Letters and all materials of any kind (including opinions or
other tax analyses) that are provided to it relating to such tax treatment and

Commitment Letter

 

10

 

tax structure, except that (i) tax treatment and tax structure shall not include the identity
of any existing or future party (or any affiliate of such party) to this Commitment Letter or the
Fee Letters and (ii) no party shall disclose any information relating to such tax treatment and tax
structure to the extent nondisclosure is reasonably necessary in order to comply with applicable
securities laws. For this purpose, the tax treatment of the transactions contemplated by this
Commitment Letter and the Fee Letters is the purported or claimed U.S. Federal income tax treatment
of such transactions and the tax structure of such transactions is any fact that may be relevant to
understanding the purported or claimed U.S. Federal income tax treatment of such transactions.

	13.	 	Surviving Provisions.

The compensation, reimbursement, indemnification, confidentiality, syndication, jurisdiction,
governing law and waiver of jury trial provisions contained herein and in the Fee Letters and the
provisions of Section 8 of this Commitment Letter shall remain in full force and effect regardless
of whether definitive financing documentation shall be executed and delivered and (other than in
the case of the syndication provisions) notwithstanding the termination of this Commitment Letter
or the Initial Lenders’ commitments hereunder and our agreements to perform the services described
herein.

	14.	 	PATRIOT Act Notification.

Each Commitment Party hereby notifies you that, pursuant to the requirements of the USA
PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “PATRIOT Act”),
such Commitment Party and each Lender is required to obtain, verify and record information that
identifies the Borrower and each guarantor, which information includes the name, address, tax
identification number and other information regarding the Borrower and each guarantor that will
allow such Commitment Party or such Lender to identify the Borrower and each guarantor in
accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the
PATRIOT Act and is effective as to each Commitment Party and each Lender. You hereby acknowledge
and agree that each Commitment Party shall be permitted to share any or all such information with
the Lenders.

	15.	 	Acceptance and Termination.

If the foregoing correctly sets forth our agreement with you, please indicate your acceptance
of the terms of this Commitment Letter and of the Fee Letters by returning to us executed
counterparts hereof and of the Fee Letters not later than 11:59 p.m., New York City time, on March
25, 2011. The Initial Lenders’ offer hereunder, and the agreements of the Commitment Parties to
perform the services described herein, will expire automatically and without further action or
notice and without further obligation to you at such time in the event that the Commitment Parties
have not received such executed counterparts in accordance with the immediately preceding sentence.
This Commitment Letter will become a binding commitment on each Initial Lender only after it has
been duly executed and delivered by you in accordance with the first sentence of this Section 15.
Thereafter, the commitments and other obligations of each Commitment Party and Initial Lender
hereunder shall automatically terminate without further action or notice and without further
obligations to you, unless each Commitment Party and Initial Lender shall in its sole discretion
agree to an extension, upon the earliest to occur of (i) the termination of the Purchase Agreement
in accordance with its terms (unless such termination results from the occurrence of the
Termination Date (as defined in, and as may be extended in accordance with, Section 8.1 of the
Purchase Agreement)), (ii) the closing of the Acquisition

Commitment Letter

 

11

 

without the use of any of the Facilities, (iii) the date which is 30 days after the
Termination Date (as defined in, and as may be extended in accordance with, Section 8.1 of the
Purchase Agreement) and (iv) September 30, 2011.

[Remainder of this page intentionally left blank]

Commitment Letter

 

12

 

The Commitment Parties are pleased to have been given the opportunity to assist you in
connection with the financing for the Acquisition.

	 	 	 	 	 
	 	Very truly yours,

CREDIT SUISSE SECURITIES (USA) LLC

 	 
	 	By  	/s/ Ali R. Mehdi
 	 
	 	 	Name:  	Ali R. Mehdi 	 
	 	 	Title:  	Managing Director 	 
	 
	 	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

 	 
	 	By  	/s/ Ari Bruger
 	 
	 	 	Name:  	Ari Bruger 	 
	 	 	Title:  	Vice President 	 
	 	 	 
	 	By  	/s/ Kevin Buddhdew
 	 
	 	 	Name:  	Kevin Buddhdew 	 
	 	 	Title:  	Associate 	 
	 
	 	THE ROYAL BANK OF SCOTLAND PLC

 	 
	 	By  	 /s/ L. Brett Matkins
 	 
	 	 	Name:  	L. Brett Matkins 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	RBS SECURITIES INC.

 	 
	 	By  	/s/ L. Brett Matkins
 	 
	 	 	Name:  	L. Brett Matkins 	 
	 	 	Title:  	Managing Director 	 
	 

Commitment Letter

 

 

 

	 	 	 	 	 
	Accepted and agreed to as of
the date first above written:

WALTER INVESTMENT MANAGEMENT CORP.

 	 	 
	By  	/s/ Mark O’Brien
 	 	 
	 	Name:  	Mark O’Brien 	 	 
	 	Title:  	Chairman and CEO 	 	 
	 

Commitment Letter

 

 

 

EXHIBIT A

PROJECT CARDINAL

$530,000,000 First Lien Senior Secured Credit Facilities

Summary of Principal First Lien Terms and Conditions

	 	 	 
	Borrower:

	 	Walter Investment Management
Corp., a Maryland corporation (the
“Borrower”).
	 
	 	 
	Transactions:

	 	The Borrower intends to acquire
(the “Acquisition”) GTCS Holdings
LLC, a Delaware limited liability
company (the “Company”), pursuant
to a membership interest purchase
agreement dated as of the date
hereof (as in effect on the date
hereof, the “Purchase Agreement”)
among the Borrower, the Company
and GTH LLC, a Delaware limited
liability company (the “Seller”).
In connection with the
Acquisition, (a) the Borrower will
acquire the Company from the
Seller with the Seller receiving
an aggregate amount of cash and
stock in accordance with the
Purchase Agreement (the
“Acquisition Consideration”), (b)
the Borrower will obtain the
senior secured credit facilities
described below under the caption
“First Lien Facilities”, (c) the
Borrower will borrow up to
$265,000,000 in aggregate
principal amount of second lien
term loans (the “Second Lien Term
Loans”) under a new credit
facility described in Exhibit B to
the Commitment Letter (the “Second
Lien Term Facility”), (d) all the
existing indebtedness of the
Borrower and its subsidiaries and
the Company and its subsidiaries
outstanding as of the Closing Date
other than the Excluded Debt (as
defined in Exhibit C) (the
“Existing Debt”) shall be repaid
and (e) fees and expenses incurred
in connection with the foregoing
(the “Transaction Costs”) will be
paid. The transactions described
in this paragraph are collectively
referred to herein as the
“Transactions”.
	 
	 	 
	Agent:

	 	Credit Suisse AG, acting through
one or more of its branches or
affiliates (“CS”), will act as
sole administrative agent and
collateral agent (collectively, in
such capacities, the “Agent”) for
a syndicate of banks, financial
institutions and other
institutional lenders (together
with the Initial Lenders, the
“Lenders”), and will perform the
duties customarily associated with
such roles.
	 
	 	 
	Joint Bookrunners and Joint Lead Arrangers:

	 	Credit Suisse Securities (USA) LLC
and RBS Securities Inc. will act
as joint bookrunners and joint
lead arrangers for the First Lien
Facilities described below
(collectively, in such capacities,
the “Arrangers”), and will perform
the duties customarily associated
with such roles.

First Lien Facilities Term Sheet

 

 

 

	 	 	 	 	 
	Syndication Agent:

	 	 	 	At the option of the Arrangers,
one or more financial institutions
identified by the Arrangers and
reasonably acceptable to the
Borrower (in such capacity, the
“Syndication Agent”).
	 
	 	 	 	 
	Documentation Agent:

	 	 	 	At the option of the Arrangers,
one or more financial institutions
identified by the Arrangers and
reasonably acceptable to the
Borrower (in such capacity, the
“Documentation Agent”).
	 
	 	 	 	 
	First Lien Facilities:

	 	(A)
	 	A senior secured term loan
facility in an aggregate principal
amount of up to $500,000,000 (the
“First Lien Term Facility”).
	 
	 	 	 	 
	 

	 	(B)
	 	A senior secured revolving credit
facility in an aggregate principal
amount of up to $30,000,000 (the
“Revolving Facility” and, together
with the First Lien Term Facility,
the “First Lien Facilities”), of
which up to an aggregate amount to
be agreed upon will be available
through a subfacility in the form
of letters of credit.
	 
	 	 	 	 
	Purpose:

	 	 	 	The proceeds of the First Lien
Term Facility will be used by the
Borrower, on the date of the
initial borrowing thereunder (the
“Closing Date”), together with the
proceeds of the Second Lien Term
Loans and cash on the Borrower’s
and Company’s balance sheet,
solely (a) to pay the Acquisition
Consideration, (b) to refinance
the Existing Debt and (c) to pay
the Transaction Costs.
	 
	 	 	 	 
	 

	 	(B)
	 	The proceeds of loans under the
Revolving Facility will be used by
the Borrower on the Closing Date
in an amount to be agreed and from
time to time thereafter to (a) pay
the Acquisition Consideration, (b)
to pay Transaction Costs and (c)
for general corporate purposes.
	 
	 	 	 	 
	 

	 	(C)
	 	Letters of credit will be used
solely to support payment
obligations incurred in the
ordinary course of business by the
Borrower and its subsidiaries.
	 
	 	 	 	 
	Availability:

	 	(A)
	 	The full amount of the First Lien
Term Facility must be drawn in a
single drawing on the Closing
Date. Amounts borrowed under the
First Lien Term Facility that are
repaid or prepaid may not be
reborrowed.

First Lien Facilities Term Sheet

 

A-2

 

	 	 	 	 	 
	 

	 	(B)
	 	Not more than an amount to be
agreed upon of loans under the
Revolving Facility shall be made
on the Closing Date. Thereafter,
loans under the Revolving Facility
will be available at any time
prior to the final maturity of the
Revolving Facility, in minimum
principal amounts and upon notice
to be agreed upon. Amounts repaid
under the Revolving Facility may
be reborrowed.
	 
	 	 	 	 
	Interest Rates and Fees:

	 	 	 	As set forth on Annex A-I hereto.
	 
	 	 	 	 
	Default Rate:

	 	 	 	Interest will accrue on past-due
amounts at the applicable interest
rate plus 2.0% per annum.
	 
	 	 	 	 
	Letters of Credit:

	 	 	 	Letters of credit under the
Revolving Facility will be issued
by CS or another Lender acceptable
to the Borrower and the Agent (the
“Issuing Bank”). Each letter of
credit shall expire not later than
the earlier of (a) 12 months after
its date of issuance and (b) the
fifth business day prior to the
final maturity of the Revolving
Facility; provided, however, that
any letter of credit may provide
for renewal thereof for additional
periods of up to 12 months (which
in no event shall extend beyond
the date referred to in clause (b)
above).
	 
	 	 	 	 
	 

	 	 	 	Drawings under any letter of
credit shall be reimbursed by the
Borrower on the same business day.
To the extent that the Borrower
does not reimburse the Issuing
Bank on the same business day, the
Lenders under the Revolving
Facility shall be irrevocably
obligated to reimburse the Issuing
Bank pro rata based upon their
respective Revolving Facility
commitments.
	 
	 	 	 	 
	 

	 	 	 	The issuance of all letters of
credit shall be subject to the
customary procedures of the
Issuing Bank.
	 
	 	 	 	 
	Final Maturity and Amortization:

	 	 (A)
	 	First Lien Term Facility

The First Lien Term Facility will
mature on the earlier of (x) the
date that is five years after the
Closing Date and (y) June 30, 2016
and will amortize in equal
quarterly installments in an
aggregate annual amount equal to
10% of the original principal
amount of the First Lien Term
Facility with the balance payable
on the maturity date of the First
Lien Term Facility.
	 
	 	 	 	 
	 

	 	(B)
	 	Revolving Facility
	 
	 	 	 	 
	 

	 	 	 	The Revolving Facility will mature
and the commitments thereunder
will terminate on the earlier of
(x) the date that is five years
after the Closing Date and (y)
June 30, 2016.

First Lien Facilities Term Sheet

 

A-3

 

	 	 	 
	Guarantees:

	 	All obligations of the Borrower
under the First Lien Facilities
and under any interest rate
protection or other hedging
arrangements entered into with the
Agent, any Arranger, an entity
that is a Lender at the time of
such transaction or any affiliate
of any of the foregoing (“Hedging
Arrangements”) will be
unconditionally guaranteed (the
“Guarantees”) by each existing and
subsequently acquired or organized
domestic subsidiary of the
Borrower, other than (x) any
special purpose vehicle, trust or
other similar entity in existence
on the date hereof and (y) other
subsidiaries to be mutually agreed
upon (the “Subsidiary Guarantors”
and, together with the Borrower,
the “Loan Parties”).
	 
	 	 
	Security:

	 	The First Lien Facilities, the
Guarantees and any Hedging
Arrangements will be secured by
substantially all the assets of
the Borrower and each Subsidiary
Guarantor, whether owned on the
Closing Date or thereafter
acquired (collectively, the
“Collateral”), including but not
limited to: (a) a perfected first
priority pledge of all the equity
interests held by the Borrower or
any Subsidiary Guarantor (which
pledge, in the case of any foreign
subsidiary, shall be limited to
100% of the non-voting equity
interests (if any) and 66% of the
voting equity interests of such
foreign subsidiary) and (b)
perfected first-priority security
interests in, and mortgages on,
substantially all tangible and
intangible assets of the Borrower
and each Subsidiary Guarantor
(including but not limited to
accounts receivable, inventory,
equipment, general intangibles,
investment property, intellectual
property, real property, cash,
deposit and securities accounts,
commercial tort claims, letter of
credit rights, intercompany notes
and proceeds of the foregoing).
	 
	 	 
	 

	 	Subject to the Limited
Conditionality Provisions, all the
above-described pledges, security
interests and mortgages shall be
created on terms, and pursuant to
documentation, satisfactory to the
Lenders (including, in the case of
real property, by customary items
such as satisfactory title
insurance and surveys), and none
of the Collateral shall be subject
to any other liens (other than the
second priority security interests
in favor of the lenders under the
Second Lien Term Facility),
subject to customary exceptions to
be agreed upon.
	 
	 	 
	 

	 	Notwithstanding the foregoing, the
Collateral shall not include: (i)
amounts collected from borrowers
in connection with the servicing
of loans to the extent

First Lien Facilities Term Sheet

 

A-4

 

	 	 	 
	 

	 	required to be turned over to the holders of
such loans, (ii) servicing rights
relating to mortgage loans owned
or controlled by an independent
third party financing source
(including government sponsored
enterprises) (“Pledged MSR”) and
subject to liens securing existing
and future permitted indebtedness
incurred by a subsidiary of the
Borrower from such third party
financing source to purchase such
servicing rights (“MSR Purchase
Money Lines”), (iii) mortgage
loans and related assets subject
to repurchase agreements to the
extent such repurchase agreements
constitute permitted indebtedness
under the definitive documentation
in respect of the First Lien
Facilities, (iv) vehicles and
leaseholds, (v) contracts with an
unaffiliated third party that
contain a valid and enforceable
prohibition on assignment, but
only so long as such prohibition
exists and the Borrower shall have
used commercially reasonable
efforts to obtain the consent of
the counterparty to the grant of
the liens contemplated herein,
(vi) equipment subject to certain
permitted liens (to the extent the
liens and security interests of
the Agent and the Lenders are not
permitted by the applicable
permitted lien), (vii) payroll
accounts, trust accounts, accounts
solely holding cash for the
benefit of third parties and other
accounts to be agreed, (viii)
pledges and security interests
prohibited by any effective
applicable law and (ix) any asset
to the extent the cost of
obtaining a security interest
thereon would, in the reasonably
determination of the Agent, be
excessive in relation to the
benefit thereof.
	 
	 	 
	Intercreditor Arrangements:

	 	The liens securing the Second Lien
Term Facility will be second in
priority to the liens securing the
First Lien Facilities and the
liens securing any Hedging
Arrangements. The priority of the
security interests in the
Collateral and related creditors’
rights will be set forth in
customary intercreditor provisions
included in the collateral
documents (the “Intercreditor
Agreement”). The Intercreditor
Agreement will contain, among
other things, customary agreements
between the holders of the
obligations under the First Lien
Facilities and the holders of the
obligations under the Second Lien
Term Facility with regard to (and
with customary exceptions) (i) the
subordination of the liens
securing the Second Lien Term
Facility, (ii) the right of the
holders of obligations under the
First Lien Facilities to control
the enforcement of remedies with
respect to Collateral, subject to
a standstill period, and to
control the release of

First Lien Facilities Term Sheet

 

A-5

 

	 	 	 
	 

	 	Collateral, (iii) the agreement of the holders
of obligations under the Second
Lien Term Facility to hold in
trust and turn over to the holders
of the obligations under the First
Lien Facilities proceeds received
from Collateral and (iv) the
agreement of the holders of
obligations under the Second Lien
Term Facility not to oppose
certain DIP financings unless the
holders of obligations under the
First Lien Facilities shall have
opposed such DIP financings.
	 
	 	 
	Mandatory Prepayments:

	 	Loans under the First Lien Term
Facility and the Second Lien Term
Facility shall be prepaid in
accordance with the “waterfall”
provisions described in the
following paragraphs with (a) 50%
of Excess Cash Flow (to be
defined), with a reduction to be
agreed upon based upon achievement
and maintenance of a leverage
ratio to be agreed upon, (b) 100%
of the net cash proceeds of all
asset sales or other dispositions
of property by the Borrower and
its subsidiaries (including
proceeds from the sale of equity
securities of any subsidiary of
the Borrower and insurance and
condemnation proceeds) (subject to
customary exceptions and
reinvestment provisions to be
agreed upon), (c) 100% of the net
cash proceeds of issuances,
offerings or placements of debt
obligations of the Borrower and
its subsidiaries (subject to
customary exceptions to be agreed
upon) and (d) 50% of the net cash
proceeds of issuances of equity
securities of the Borrower and its
subsidiaries (subject to customary
exceptions to be agreed upon),
with a reduction to be agreed upon
based upon achievement and
maintenance of a leverage ratio to
be agreed upon.
	 
	 	 
	 

	 	The above-described mandatory
prepayments shall be applied pro
rata to the remaining amortization
payments under the First Lien Term
Facility, and, when there are no
longer outstanding loans under the
First Lien Term Facility, to
mandatory prepayments of the
Second Lien Term Facility.
	 
	 	 
	Voluntary Prepayments and Reductions in Commitments:

	 	Voluntary reductions of the
unutilized portion of the
commitments under the First Lien
Facilities and prepayments of
borrowings thereunder will be
permitted at any time, in minimum
principal amounts to be agreed
upon, subject to the payment of
any applicable prepayment premium
(as set forth under the heading
“Prepayment Premium” in Annex A-I
attached hereto) and subject to
reimbursement of the Lenders’
redeployment costs in the case of
a prepayment of Adjusted LIBOR
borrowings other

First Lien Facilities Term Sheet

 

A-6

 

	 	 	 
	 

	 	than on the last day of the relevant interest
period. All voluntary prepayments
of the First Lien Term Facility
will be applied pro rata to the
remaining amortization payments
under the First Lien Term
Facility.
	 
	 	 
	Representations and Warranties:

	 	Usual for facilities and
transactions of this type and
others to be reasonably specified
by the Agent, including, without
limitation, corporate status;
legal, valid and binding
documentation; no consents;
accuracy of financial statements,
confidential information
memorandum and other information;
no material adverse change;
absence of undisclosed
liabilities, litigation and
investigations; no violation of,
or conflicts with, agreements or
instruments; compliance with laws
(including the PATRIOT Act, ERISA,
margin regulations, environmental
laws, laws applicable to
sanctioned persons and the Foreign
Corrupt Practices Act); payment of
taxes; ownership of properties;
intellectual property;
inapplicability of the Investment
Company Act or other regulatory
schemes limiting ability to incur
debt; solvency; effectiveness of
governmental approvals; labor
matters; environmental and other
regulatory matters; maintenance of
corporate separateness; servicing
agreements; validity, priority and
perfection of security interests
in the Collateral; and treatment
as senior debt under all
subordinated debt and, together
with debt under the Second Lien
Term Facility, as sole designated
senior debt thereunder.
	 
	 	 
	Conditions Precedent to Initial Borrowing:

	 	The initial borrowing under the
First Lien Facilities will be
subject to the applicable
conditions precedent set forth in
Section 6 of the Commitment
Letter, in “Conditions Precedent
to All Borrowings” below, and in
Exhibit C to the Commitment
Letter.
	 
	 	 
	Conditions Precedent to All Borrowings:

	 	Delivery of notice, accuracy of
representations and warranties
(subject to the Limited
Conditionality Provisions), and
absence of defaults (provided
that, in the case of the Closing
Date only, such defaults shall be
limited to (x) cross-default to
Excluded Debt referred to in
clauses (c)(i), (c)(ii) and
(c)(iii) of paragraph 3 in Exhibit C to the Commitment Letter and any
other indebtedness (excluding
non-recourse indebtedness of
securitization trusts) with an
aggregate principal amount or
termination or settlement value
(as applicable) of at least
$20,000,000 (collectively,
“Material Debt”) as a result of a
payment default, (y) cross-default
to Excluded Debt referred to in
clause (c)(ii) of paragraph 3 in
Exhibit C to the Commitment Letter as

First Lien Facilities Term Sheet

 

A-7

 

	 	 	 
	 

	 	a result of any breach of a
financial covenant or the
occurrence of any termination
event or event of default as a
result of any failure to meet any
specified financial condition or
financial requirement thereunder
and (z) cross-acceleration to
Material Debt).
	 
	 	 
	Affirmative Covenants:

	 	Usual for facilities and
transactions of this type and
others to be reasonably specified
by the Agent (to be applicable to
the Borrower and its
subsidiaries), including, without
limitation, maintenance of
corporate existence and rights;
performance of obligations;
delivery of consolidated financial
statements and other information,
including information required
under the PATRIOT Act; delivery of
notices of default under the First
Lien Facilities, default under
servicing agreements, call
options, historical performance of
delinquent accounts, litigation,
ERISA events and material adverse
change; maintenance of properties
in good working order; maintenance
of satisfactory insurance; use of
commercially reasonable efforts to
maintain a public corporate credit
rating from Standard & Poor’s
Ratings Service (“S&P”) and a
public corporate family rating
from Moody’s Investors Service,
Inc. (“Moody’s”), in each case
with respect to the Borrower, and
a public rating of the First Lien
Facilities by each of S&P and
Moody’s; compliance with laws;
inspection of books and
properties; changes in fiscal
periods; certain required
dividends; hedging arrangements
satisfactory to the Agent; further
assurances; and payment of taxes.
	 
	 	 
	Negative Covenants:

	 	Usual for facilities and
transactions of this type and
others to be reasonably specified
by the Agent (to be applicable to
the Borrower and its
subsidiaries), including, without
limitation, limitations on
dividends on, and redemptions and
repurchases of, equity interests
and other restricted payments;
limitations on prepayments,
redemptions and repurchases of
debt (other than (i) loans under
the First Lien Facilities and (ii)
prepayments of loans under the
Second Lien Term Facility as
described under the caption
“Mandatory Prepayments” above);
limitations on liens and
sale-leaseback transactions (other
than liens on (x) receivables and
related assets of a subsidiary
acquired with the proceeds of
Servicer Advance Line Debt of such
subsidiary and securing such
Servicer Advance Line Debt, (y)
servicing rights of a subsidiary
acquired with the proceeds of MSR
Purchase Money Lines of such
subsidiary and securing such MSR
Purchase Money Lines and (z) liens
on mortgage

First Lien Facilities Term Sheet

 

A-8

 

	 	 	 
	 

	 	loans to the extent
they constitute permitted
indebtedness under the definitive
documentation in respect of the
First Lien Facilities);
limitations on loans and
investments; limitations on debt,
guarantees and hedging
arrangements (other than (w)
current or future permitted
non-recourse servicer advance line
debt incurred by a special purpose
subsidiary and certain related
contingent obligations (“Servicer
Advance Line Debt”), (x) MSR
Purchase Money Lines, (y) mortgage
loans entered into for purposes of
warehousing and (z) certain
non-recourse debt, in each case on
terms to be agreed); limitations
on mergers, acquisitions and asset
sales; limitations on transactions
with affiliates; limitations on
changes in business conducted by
the Borrower and its subsidiaries;
absence of government regulation;
limitations on activities of
special purpose entities;
limitations on restrictions on
ability of subsidiaries to pay
dividends or make distributions;
limitations on amendments of debt
and other material agreements; and
limitations on capital
expenditures.
	 
	 	 
	Selected Financial Covenants:

	 	Usual for facilities and
transactions of this type (with
financial definitions, levels and
measurement periods to be agreed
upon), including, without
limitation: (a) maximum ratios of
Total Debt to EBITDA; and (b)
minimum interest coverage ratios.
	 
	 	 
	Events of Default:

	 	Usual for facilities and
transactions of this type and
others to be reasonably specified
by the Agent relating to the
Borrower and its subsidiaries
(subject, where appropriate, to
customary thresholds and grace
periods to be agreed upon),
including, without limitation,
nonpayment of principal, interest
or other amounts; violation of
covenants; incorrectness of
representations and warranties in
any material respect; cross
default and cross acceleration;
bankruptcy; material judgments;
ERISA events; actual or asserted
invalidity of Guarantees, the
Intercreditor Agreement or
security documents; and Change of
Control (to be defined).
	 
	 	 
	Voting:

	 	Amendments and waivers of the
definitive credit documentation
will require the approval of
Lenders holding more than 50% of
the aggregate amount of the loans
and commitments under the First
Lien Facilities (the “Required
Lenders”) (with certain amendments
and waivers also requiring class
votes), except that (a) the
consent of each affected Lender
shall be required with respect to
(i) increases in the commitment of
such Lender, (ii) reductions or
forgiveness of principal,
interest, fees or

First Lien Facilities Term Sheet

 

A-9

 

	 	 	 
	 

	 	reimbursement obligations payable to such
Lender, (iii) extensions of final
maturity or scheduled amortization
of the loans or commitments of
such Lender or of the date for
payment to such Lender of any
interest, fees or reimbursement
obligations payable to such
Lender, and (iv) changes that
impose any additional restriction
on such Lender’s ability to assign
any of its rights or obligations,
(b) the consent of each Lender
shall be required with respect to
(i) modification to voting
requirements or percentages, (ii)
modification to certain provisions
requiring the pro rata treatment
of lenders, and (iii) releases of
all or substantially all of the
value of the Guarantees, or all or
substantially all of the
Collateral and (c) the consent of
the Issuing Bank shall be required
with respect to amendments and
waivers affecting its rights or
duties.
	 
	 	 
	Cost and Yield Protection:

	 	Usual for facilities and
transactions of this type,
including customary tax gross-up
provisions.
	 
	 	 
	Assignments and Participations:

	 	The Lenders will be permitted to
assign (a) loans under the First
Lien Term Facility without the
consent of (but with notice to)
the Borrower and (b) loans and
commitments under the Revolving
Facility with the consent of the
Borrower and the Issuing Bank, in
each case not to be unreasonably
withheld or delayed; provided that
such consent of the Borrower (x)
shall not be required (i) if such
assignment is made to another
Lender under the Revolving
Facility or an affiliate or
approved fund of any such Lender,
(ii) during the primary
syndication of the loans and
commitments under the First Lien
Facilities or (iii) after the
occurrence and during the
continuance of an event of default
and (y) shall be deemed to have
been given if the Borrower has not
responded within five business
days of a request for such
consent. All assignments will
also require the consent of the
Agent, not to be unreasonably
withheld or delayed. Each
assignment will be in an amount of
an integral multiple of
$1,000,000. Assignments will be
by novation and will not be
required to be pro rata between
the First Lien Facilities.
	 
	 	 
	 

	 	The Lenders will be permitted to
sell participations in loans and
commitments without restriction.
Voting rights of participants
shall be limited to matters in
respect of (a) increases in
commitments of such participant,
(b) reductions or forgiveness of
principal, interest or fees
payable to such participant, (c)
extensions of final maturity or
scheduled amortization of, or the
date for payment of interest or

First Lien Facilities Term Sheet

 

A-10

 

	 	 	 
	 

	 	fees on, the loans or commitments
in which such participant
participates and (d) releases of
all or substantially all of the
value of the Guarantees, or all or
substantially all of the
Collateral.
	 
	 	 
	Defaulting Lenders:

	 	Usual for facilities and
transactions of this type,
including the provision of cash
collateral as reasonably
determined by the Agent.
	 
	 	 
	 

	 	If any Lender becomes a defaulting
Lender, then the letter of credit
exposure of such defaulting Lender
will automatically be reallocated
among the non-defaulting Lenders
pro rata in accordance with their
commitments under the Revolving
Facility up to an amount such that
the revolving credit exposure of
such non-defaulting Lender does
not exceed its commitments. In
the event that such reallocation
does not fully cover the letter of
credit exposure of such defaulting
Lender, the Issuing Bank may
require the Borrower to cash
collateralize such “uncovered”
exposure in respect of each
outstanding letter of credit and
will have no obligation to issue
new letters of credit, or to
extend, renew or amend existing
letters of credit to the extent
letter of credit exposure would
exceed the commitments of the
non-defaulting Lenders, unless
such “uncovered” exposure is cash
collateralized to the Issuing
Bank’s reasonable satisfaction.
	 
	 	 
	Expenses and Indemnification:

	 	The Borrower will indemnify each
Arranger, the Agent, the
Syndication Agent, the
Documentation Agent, the Lenders,
the Issuing Bank, their respective
affiliates, successors and assigns
and the officers, directors,
employees, agents, advisors,
controlling persons and members of
each of the foregoing (each, an
“Indemnified Person”) and hold
them harmless from and against all
costs, expenses (including
reasonable fees, disbursements and
other charges of counsel) and
liabilities of such Indemnified
Person arising out of or relating
to any claim or any litigation or
other proceeding (regardless of
whether such Indemnified Person is
a party thereto and regardless of
whether such matter is initiated
by a third party or by the
Borrower, the Company or any of
their respective affiliates or
equity holders) that relates to
the Transactions, including the
financing contemplated hereby, the
Acquisition or any transactions in
connection therewith, provided
that no Indemnified Person will be
indemnified for any cost, expense
or liability to the extent
determined in the final,
non-appealable judgment of a court
of competent jurisdiction to have
resulted primarily from

First Lien Facilities Term Sheet

 

A-11

 

	 	 	 
	 

	 	its gross negligence or willful misconduct.
In addition, the Borrower shall
pay (a) all reasonable
out-of-pocket expenses (including,
without limitation, reasonable
fees, disbursements and other
charges of counsel) of each
Arranger, the Agent, the
Syndication Agent, the
Documentation Agent and the
Issuing Bank in connection with
the syndication of the First Lien
Facilities, the preparation and
administration of the definitive
documentation, and amendments,
modifications and waivers thereto
and (b) all out-of-pocket expenses
(including, without limitation,
fees, disbursements and other
charges of counsel) of the
Arrangers, the Agent, the
Syndication Agent, the
Documentation Agent, the Issuing
Bank and the Lenders for
enforcement costs and documentary
taxes associated with the First
Lien Facilities.
	 
	 	 
	Governing Law and Forum:

	 	New York.
	 
	 	 
	Counsel to Agent:

	 	Davis Polk & Wardwell LLP.

First Lien Facilities Term Sheet

 

A-12

 

ANNEX A-I

	 	 	 
	Interest Rates:

	 	At the option of the Borrower, Adjusted LIBOR plus 5.25% or ABR plus 4.25%.
	 
	 	 
	 

	 	The Borrower may elect interest
periods of one, two, three or six
months for Adjusted LIBOR
borrowings.
	 
	 	 
	 

	 	Calculation of interest shall be on
the basis of the actual number of
days elapsed over a 360-day year (or
365- or 366-day year, as the case
may be, in the case of ABR loans
based on the Prime Rate) and
interest shall be payable at the end
of each interest period and, in any
event, at least every three months.
	 
	 	 
	 

	 	ABR is the Alternate Base Rate,
which is the highest of (i) CS’s
Prime Rate, (ii) the Federal Funds
Effective Rate plus 1/2 of 1.0% and
(iii) one-month Adjusted LIBOR plus
1.0%.
	 
	 	 
	 

	 	Adjusted LIBOR will at all times
include statutory reserves and shall
be deemed to be not less than 1.50%
per annum.
	 
	 	 
	Letter of Credit Fees:

	 	A per annum fee equal to the spread
over Adjusted LIBOR under the
Revolving Facility will accrue on
the aggregate face amount of
outstanding letters of credit under
the Revolving Facility, payable in
arrears at the end of each quarter
and upon the termination of the
Revolving Facility, in each case for
the actual number of days elapsed
over a 360-day year. Such fees
shall be distributed to the Lenders
participating in the Revolving
Facility pro rata in accordance with
the amount of each such Lender’s
Revolving Facility commitment. In
addition, the Borrower shall pay to
the Issuing Bank, for its own
account, (a) a fronting fee equal to
a percentage per annum to be agreed
upon of the aggregate face amount of
outstanding letters of credit,
payable in arrears at the end of
each quarter and upon the
termination of the Revolving
Facility, calculated based upon the
actual number of days elapsed over a
360-day year, and (b) customary
issuance and administration fees.
	 
	 	 
	Commitment Fees:

	 	0.75% per annum on the undrawn
portion of the commitments in
respect of the Revolving Facility,
payable quarterly in arrears after
the Closing Date and upon the
termination of the commitments,
calculated based on the actual
number of days elapsed over a
360-day year.

First Lien Facilities Term Sheet

 

 

 

	 	 	 
	Original Issue Discount/Upfront Fees:

	 	An upfront fee equal to 1.00% of the
aggregate commitments under the
Revolving Facility will be payable
by the Borrower on the Closing Date
for the account of the Lenders
participating in the Revolving
Facility. The loans under the First
Lien Term Facility will be issued to
the Lenders participating in the
First Lien Term Facility at a price
of 99.00% of their principal amount.
Notwithstanding the foregoing, (a)
all calculations of interest and
fees in respect of the First Lien
Facilities will be calculated on the
basis of their full stated principal
amount and (b) at the option of the
Arrangers, any original issue
discount may instead be effected in
the form of an upfront fee payable
to the Lenders.
	 
	 	 
	Prepayment Premium:

	 	1% upon any prepayment of or
amendment to the First Lien Term
Facility occurring on or prior to
the first anniversary of the Closing
Date in connection with a Repricing
Transaction (as defined below).
	 
	 	 
	 

	 	As used herein “Repricing
Transaction” means the prepayment or
refinancing of all or any portion of
the First Lien Term Facility
substantially concurrently with the
incurrence by the Borrower or any
affiliate thereof of any
indebtedness having a lower cost
financing than, or any amendment to
the First Lien Term Facility that
has the effect of reducing effective
yield (taking into account, for
example, the interest rate margin,
any interest rate floor and original
issue discount) then applicable to,
the First Lien Term Facility
(including any mandatory assignment
in connection therewith).

First Lien Facilities Term Sheet

 

A-I-2

 

			
	 	 	 
	CONFIDENTIAL
	 	EXHIBIT B

PROJECT CARDINAL

$265,000,000 Second Lien Senior Secured Term Facility 

Summary of Principal Second Lien Terms and Conditions1

	 	 	 
	Borrower:

	 	The Borrower under the First Lien Facilities.
	 
	 	 
	Transactions:

	 	As described in the First Lien Facilities Term Sheet.
	 
	 	 
	Sources and Uses:

	 	As described in the First Lien Facilities Term Sheet.
	 
	 	 
	Agent:

	 	Credit Suisse AG, acting through one or more of its
branches or affiliates (“CS”), will act as sole
administrative agent and collateral agent
(collectively, in such capacities, the “Agent”) for
a syndicate of banks, financial institutions and
other institutional lenders (together with the
Initial Lenders, the “Lenders”), and will perform
the duties customarily associated with such roles.
	 
	 	 
	Joint Bookrunners and Joint Lead Arrangers:

	 	Credit Suisse Securities (USA) LLC and RBS
Securities Inc. will act as joint bookrunners and
joint lead arrangers for the Second Lien Term
Facility described below (collectively, in such
capacities, the “Arrangers”), and will perform the
duties customarily associated with such roles.
	 
	 	 
	Syndication Agent:

	 	At the option of the Arrangers, one or more
financial institutions identified by the Arrangers
and reasonably acceptable to the Borrower (in such
capacity, the “Documentation Agent”).
	 
	 	 
	Documentation Agent:

	 	At the option of the Arrangers, one or more
financial institutions identified by the Arrangers
and reasonably acceptable to the Borrower (in such
capacity, the “Documentation Agent”).
	 
	 	 
	Second Lien Term Facility:

	 	A senior secured second lien term loan facility in
an aggregate principal amount of up to $265,000,000
(the “Second Lien Term Facility”).
	 
	 	 
	Purpose:

	 	The proceeds of the Second Lien Term Facility will
be used by the Borrower on the Closing Date,
together with the proceeds of the First Lien Term
Facility and cash on the Borrower’s and Company’s
balance sheet, solely (a) to pay the Acquisition
Consideration, (b) to refinance the Existing Debt
and (c) to pay the Transaction Costs.

 

	 	 	 
	1	 	All capitalized terms used but not defined herein have
the meanings given to them in the Commitment Letter to which this term sheet is
attached, including Exhibit A thereto (the “First Lien Facilities Term Sheet”).

Second Lien Facility Term Sheet

 

 

 

	 	 	 
	Availability:

	 	The full amount of the Second Lien Term Facility
must be drawn in a single drawing on the Closing
Date. Amounts borrowed under the Second Lien Term
Facility that are repaid or prepaid may not be
reborrowed.
	 
	 	 
	Interest Rates and Fees:

	 	As set forth on Annex B-I hereto.
	 
	 	 
	Default Rate:

	 	Interest will accrue on past-due amounts at the
applicable interest rate plus 2.0% per annum.
	 
	 	 
	Final Maturity and Amortization:

	 	The Second Lien Term Facility will mature on the
earlier of (x) the date that is five years and six
months after the Closing Date and (y) December 31,
2016, and will have no amortization payments prior
to maturity.
	 
	 	 
	Guarantees:

	 	All obligations of the Borrower under the Second
Lien Term Facility will be unconditionally
guaranteed (the “Guarantees”) by each existing and
subsequently acquired or organized subsidiary of the
Borrower that is a guarantor under the First Lien
Facilities (the “Subsidiary Guarantors” and,
together with the Borrower, the “Loan Parties”).
	 
	 	 
	Security:

	 	The Second Lien Term Facility and the Guarantees
will be secured on a second priority basis by all of
the collateral securing the First Lien Facilities
(the “Collateral”).
	 
	 	 
	 

	 	Subject to the Limited Conditionality Provisions,
all the pledges, security interests and mortgages
shall be created on terms, and pursuant to
documentation, satisfactory to the Lenders
(including, in the case of real property, by
customary items such as satisfactory title insurance
and surveys), and none of the Collateral shall be
subject to any other liens (other than the first
priority security interests in favor of the First
Lien Facilities and the liens securing any Hedging
Arrangements), subject to customary and limited
exceptions to be agreed upon.
	 
	 	 
	Intercreditor Arrangements:

	 	As described in the First Lien Facilities Term Sheet.
	 
	 	 
	Mandatory Prepayments:

	 	As described in the First Lien Facilities Term Sheet.
	 
	 	 
	Voluntary Prepayments:

	 	The Borrower may not make any voluntary prepayments
of borrowings under the Second Lien Term Facility at
any time prior to the first anniversary of the
Closing Date. Thereafter, voluntary prepayments of
borrowings under the Second Lien Term Facility will
be permitted at any time, in minimum principal
amounts to be agreed upon, subject to the payment of
any applicable prepayment

Second Lien Facility Term Sheet

 

B-2

 

	 	 	 
	 

	 	premium (as set forth under the heading “Prepayment Premium” in Annex B-I
attached hereto), and subject to reimbursement of
the Lenders’ redeployment costs in the case of a
prepayment of Adjusted LIBOR borrowings other than
on the last day of the relevant interest period.
	 
	 	 
	Representations and Warranties:

	 	Usual for facilities and transactions of this type
and others to be reasonably specified by the Agent,
including, without limitation, those specified under
the caption “Representations and Warranties” in the
First Lien Facilities Term Sheet, with such changes
as are appropriate for the Second Lien Term
Facility.
	 
	 	 
	Conditions Precedent to Borrowing:

	 	Delivery of notice; accuracy of representations and
warranties (subject to Limited Conditionality
Provisions); and absence of defaults limited to (x)
cross-default to Material Debt as a result of a
payment default, (y) cross-default to Excluded Debt
referred to in clause (c)(ii) of paragraph 3 in
Exhibit C to the Commitment Letter as a result of
any breach of a financial covenant or the occurrence
of any termination event or event of default as a
result of any failure to meet any specified
financial condition or financial requirement
thereunder and (z) cross-acceleration to Material Debt.
	 
	 	 
	 

	 	The borrowing under the Second Lien Term Facility
will also be subject to the applicable conditions
precedent set forth in Section 6 of the Commitment
Letter and in Exhibit C to the Commitment Letter.
	 
	 	 
	Affirmative and Negative Covenants:

	 	Usual for facilities and transactions of this type
and others to be reasonably specified by the Agent
(to be applicable to the Borrower and its
subsidiaries), including, without limitation, those
specified under “Affirmative Covenants” and
“Negative Covenants” in the First Lien Facilities
Term Sheet, with such changes as are appropriate for
the Second Lien Term Facility (with certain baskets
to be larger than the corresponding baskets in the
First Lien Facilities).
	 
	 	 
	Selected Financial Covenants:

	 	Usual for facilities and transactions of this type
(with financial definitions, levels and measurement
periods to be agreed upon), including, without
limitation: (a) maximum ratios of Total Debt to
EBITDA and (b) minimum interest coverage ratios
(with levels set higher than the corresponding
levels under the First Lien Facilities).
	 
	 	 
	Events of Default:

	 	Usual for facilities and transactions of this type
and others to be reasonably specified by the Agent
relating to the Borrower and its subsidiaries
(subject, where appropriate, to customary thresholds and grace

Second Lien Facility Term Sheet

 

B-3

 

	 	 	 
	 

	 	periods to be agreed upon), including,
without limitation, nonpayment of principal,
interest or other amounts; violation of covenants;
incorrectness of representations and warranties in
any material respect; cross default and cross
acceleration; bankruptcy; material judgments; ERISA
events; and actual or asserted invalidity of
guarantees or security documents. The Second Lien
Term Facility will cross-default to the First Lien
Facilities only if a default under the First Lien
Facilities is not cured or waived within a 45-day
grace period (subject to exceptions to be agreed).
	 
	 	 
	Change of Control:

	 	Upon the occurrence of a Change of Control (to be
defined), the Borrower must offer to repay the loans
under the Second Lien Term Facility at a price equal
to 101% of par, plus accrued interest.
	 
	 	 
	Voting:

	 	Amendments and waivers of the definitive credit
documentation will require the approval of Lenders
holding more than 50% of the aggregate amount of the
loans under the Second Lien Term Facility, except
that (a) the consent of each affected Lender shall
be required with respect to (i) reductions or
forgiveness of principal, interest or fees payable
to such Lender, (ii) extensions of final maturity of
the loans of such Lender or of the date for payment
to such Lender of any interest or fees and (iii)
changes that impose any additional restriction on
such Lender’s ability to assign any of its rights or
obligations and (b) the consent of each Lender shall
be required with respect to (i) modifications to
certain provisions requiring the pro rata treatment
of Lenders, (ii) modification to voting requirements
or percentages and (iii) releases of all or
substantially all of the value of the Guarantees, or
all or substantially all of the Collateral.
	 
	 	 
	Cost and Yield Protection:

	 	Usual for facilities and transactions of this type,
including customary tax gross-up provisions.
	 
	 	 
	Assignments and Participations:

	 	The Lenders will be permitted to assign loans under
the Second Lien Term Facility without the consent of
(but with notice to) the Borrower. All assignments
require the consent of the Agent, not to be
unreasonably withheld or delayed. Each assignment
will be in an amount of an integral multiple of
$1,000,000. Assignments will be by novation.
	 
	 	 
	 

	 	The Lenders will be permitted to sell participations
in loans without restriction. Voting rights of
participants shall be limited to matters in respect
of (a) reductions or forgiveness of principal,
interest or fees payable to such participant, (b)
extensions of final maturity or scheduled
amortization of, or date for payment of

Second Lien Facility Term Sheet

 

B-4

 

	 	 	 
	 

	 	interest or fees on, the loans in which such participant
participates and (c) releases of all or
substantially all of the value of the Guarantees or
all or substantially all of the Collateral.
	 
	 	 
	Expenses and Indemnification:

	 	The Borrower will indemnify each Arranger, the
Agent, the Syndication Agent, the Documentation
Agent, the Lenders, their respective affiliates,
successors and assigns and the officers, directors,
employees, agents, advisors, controlling persons and
members of each of the foregoing (each, an
“Indemnified Person”) and hold them harmless from
and against all costs, expenses (including
reasonable fees, disbursements and other charges of
counsel) and liabilities of such Indemnified Person
arising out of or relating to any claim or any
litigation or other proceeding (regardless of
whether such Indemnified Person is a party thereto
and regardless of whether such matter is initiated
by a third party or by the Borrower, the Company or
any of their respective affiliates or equity
holders) that relates to the Transactions, including
the financing contemplated hereby, the Acquisition
or any transactions connected therewith; provided
that no Indemnified Person will be indemnified for
any cost, expense or liability to the extent
determined in the final, non-appealable judgment of
a court of competent jurisdiction to have resulted
primarily from its gross negligence or willful
misconduct. In addition, the Borrower shall pay (a)
all reasonable out-of-pocket expenses (including,
without limitation, reasonable fees, disbursements
and other charges of counsel) of each Arranger, the
Agent, the Syndication Agent and the Documentation
Agent in connection with the syndication of the
Second Lien Term Facility, the preparation and
administration of the definitive documentation and
amendments, modifications and waivers thereto and
(b) all out-of-pocket expenses (including, without
limitation, fees, disbursements and other charges of
counsel) of each Arranger, the Agent, the
Syndication Agent, the Documentation Agent and the
Lenders for enforcement costs and documentary taxes
associated with the Second Lien Term Facility.
	 
	 	 
	Governing Law and Forum:

	 	New York.
	 
	 	 
	Counsel to Agent:

	 	Davis Polk & Wardwell LLP.

Second Lien Facility Term Sheet

 

B-5

 

ANNEX B-I

	 	 	 	 	 	 	 
	Interest Rates:	 	At the option of the Borrower, Adjusted LIBOR
plus 9.00% or ABR plus 8.00%.
	 
	 	 	 	 	 	 
	 	 	The Borrower may elect interest periods of one,
two, three or six months for Adjusted LIBOR borrowings.
	 
	 	 	 	 	 	 
	 	 	Calculation of interest shall be on the basis of
the actual number of days elapsed over a 360-day
year (or 365- or 366-day year, as the case may
be, in the case of ABR loans based on the Prime
Rate) and interest shall be payable at the end of
each interest period and, in any event, at least
every three months.
	 
	 	 	 	 	 	 
	 	 	ABR is the Alternate Base Rate, which is the
highest of (i) CS’s Prime Rate, (ii) the Federal
Funds Effective Rate plus 1/2 of 1.0% and (iii)
one-month Adjusted LIBOR plus 1.0%.
	 
	 	 	 	 	 	 
	 	 	Adjusted LIBOR will at all times include
statutory reserves and shall be deemed to be not
less than 1.50% per annum.
	 
	 	 	 	 	 	 
	Original Issue Discount:	 	The loans under the Second Lien Term Facility
will be issued to the Lenders participating in
the Second Lien Term Facility at a price of
98.00% of their principal amount.
Notwithstanding the foregoing, (a) all
calculations of interest and fees in respect of
the Second Lien Term Facility will be calculated
on the basis of its full stated principal amount
and (b) at the option of the Arrangers, any
original issue discount may instead be effected
in the form of an upfront fee payable to the Lenders.
	 
	 	 	 	 	 	 
	Prepayment Premium:	 	The Borrower may not make any voluntary
prepayments of borrowings under the Second Lien
Term Facility at any time prior to the first
anniversary of the Closing Date. Thereafter, in
the event that all or any portion of the Second
Lien Term Facility is voluntarily prepaid or is
prepaid in connection with a mandatory
assignment, such prepayments shall be made at the
following prices:
	 
	 	 	 	 	 	 
	 

	 	Year 2:
	 	 	103	%
	 
	 	 	 	 	 	 
	 

	 	Year 3:
	 	 	102	%
	 
	 	 	 	 	 	 
	 

	 	Year 4:
	 	 	101	%
	 
	 	 	 	 	 	 
	 

	 	Thereafter:
	 	 	par

Second Lien Facility Term Sheet

 

 

 

EXHIBIT C

PROJECT CARDINAL

$530,000,000 First Lien Senior Secured Credit Facilities

$265,000,000 Second Lien Senior Secured Term Facility

Summary of Additional Conditions Precedent2

The initial borrowing under each of the Facilities shall be subject to the following
additional conditions precedent:

1. The Acquisition shall be consummated substantially simultaneously with the closing under
the Facilities on the terms described in the Purchase Agreement (without any amendment,
modification or waiver thereof or any consent thereunder which is materially adverse to the
Borrower, the Lenders or the Arrangers for the Facilities without the prior written consent of the
Arrangers (it being understood and agreed that (a) any reduction in the Acquisition Consideration
(other than any reductions that in the aggregate are (x) 10% or less of the Acquisition
Consideration as of the date hereof and (y) if such reductions are reductions in the cash portion
of the Acquisition Consideration, allocated on a dollar-for-dollar basis, (i) in the case of the
first $15,000,000 of such reductions, to reduce the principal amount of the Second Lien Term
Facility and (ii) the remainder, 50% to reduce the aggregate principal amount of the Facilities
(allocated among the Facilities as determined by the Arrangers) and 50% to reduce the Acquisition
Consideration paid by the Borrower or any of its affiliates) and (b) any amendment or modification
to (x) Section 10.1 or 10.7 of the Purchase Agreement or (y) any provision of the Purchase
Agreement setting forth any liability cap or limitation on damages or remedies of which the
Arrangers and the Lenders are beneficiaries pursuant to Section 10.7 of the Purchase Agreement
(including, without limitation, Sections 8.2, 10.11 and 10.15 and Article 9 thereof), shall in each
case be deemed to be a modification which is materially adverse to the Lenders).

2. With respect to the First Lien Facilities, the Borrower shall have received not less than
$265,000,000 (subject to adjustment as provided in paragraph 1) in gross cash proceeds from
borrowings under the Second Lien Term Facility.

3. All amounts due or outstanding in respect of the Existing Debt shall have been (or
substantially simultaneously with the closing under the Facilities shall be) paid in full, all
commitments (if any) in respect thereof terminated and all guarantees (if any) thereof and security
(if any) therefor discharged and released. After giving effect to the Transactions and the other
transactions contemplated hereby, the Borrower and its subsidiaries shall have outstanding no
indebtedness for borrowed money or disqualified preferred stock other than (a) the loans and other
extensions of credit under the First Lien Facilities, (b) the loans under the Second Lien Term
Facility, (c)(i) debt in an aggregate principal amount not to exceed $20,100,000 under the Senior
Secured Credit Agreement dated as of October 9, 2009 between Green Tree Servicing LLC, as borrower
and the Federal National Mortgage Association, as lender (the “MSR Financing Facility”), (ii) debt
in an aggregate principal amount not to exceed $58,000,000 under the Receivables Loan Agreement
dated as of July 31, 2009 among Green Tree Advance Receivables II LLC, as borrower, Green Tree
Servicing LLC, as administrator, the financial institutions party thereto from time to time and
Wells Fargo Foothill LLC, as agent (the “Receivables Facility”), (iii) debt in an aggregate
principal amount not to exceed $5,000,000

 

	 	 	 
	2	 	All capitalized terms used but not defined herein have
the meanings given to them in the Commitment Letter to which this Exhibit C is
attached, including Exhibits A and B thereto. Unless the context requires
otherwise, references herein to the Agent shall be deemed to be references to
each of the Agent as defined in such Exhibit A and the Agent as defined in such
Exhibit B.

Summary of Additional Conditions Precedent

 

 

 

under the Master Repurchase Agreement dated as of August 20, 2010 among Green Tree Servicing,
LLC, as seller and Silvergate Bank, as buyer and (iv) non-recourse debt in an aggregate principal
amount not to exceed $2,404,000,000 of securitization trusts (such debt, together with debt under
the MSR Financing Facility, the Receivables Facility and debt under clause (d), the “Excluded
Debt”) and (d) other limited indebtedness to be agreed upon.

4. The Arrangers shall have received (a) U.S. GAAP audited consolidated balance sheets and
related statements of income, stockholders’ equity and cash flows of the Borrower and the Company
for the 2008, 2009 and 2010 fiscal years and each subsequent fiscal year ended at least 90 days
before the Closing Date and (b) U.S. GAAP unaudited consolidated balance sheets and related
statements of income, stockholders’ equity and cash flows of the Borrower and the Company for (i)
each subsequent fiscal quarter ended at least 45 days before the Closing Date and (ii) each fiscal
month after the most recent fiscal quarter for which financial statements were received by the
Arrangers as described above and ended at least 30 days before the Closing Date.

5. The Arrangers shall have received a pro forma consolidated balance sheet and related pro
forma consolidated statements of income and cash flows of the Borrower as of and for the
twelve-month period ending on the last day of the most recently completed four-fiscal quarter
period for which financial statements have been delivered pursuant to paragraph 4 above, prepared
after giving effect to the Transactions as if the Transactions had occurred as of such date (in the
case of such balance sheet) or at the beginning of such period (in the case of such other financial
statements).

6. The Company’s consolidated EBITDA for the twelve-month period ending on the last day of the
most recently completed fiscal month for which financial statements have been delivered pursuant to
paragraph 4 above (calculated in a manner consistent with the presentation of EBITDA set forth in
the Project Cardinal Offering Memorandum provided to the Arrangers prior to the date hereof,
adjusted for provision expense on advances) shall not be less than $160,000,000.

7. The Arrangers shall have received a solvency certificate from the chief financial officer
of the Borrower in the form attached hereto as Annex C-I certifying that the Borrower and its
subsidiaries, on a consolidated basis after giving effect to the Transactions and the other
transactions contemplated hereby, are solvent.

8. With respect to the Second Lien Term Facility, the First Lien Facilities shall have become
effective and the Borrower shall have borrowed on the Closing Date not more than $500,000,000 under
the First Lien Term Facility thereunder.

9. The Agent shall have received, at least five business days prior to the Closing Date, all
documentation and other information required by regulatory authorities under applicable “know your
customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT
Act.

10. With respect to each of the Facilities, (a) the Arrangers shall have received, not later
than 30 consecutive days prior to the Closing Date, the Confidential Information Memorandum and the
Plan Deliverables and (b) the Arrangers shall have been afforded a period of at least 30
consecutive days following the receipt of such Confidential Information Memorandum and Plan
Deliverables and prior to the Closing Date to syndicate the Facilities.

Summary of Additional Conditions Precedent

 

C-2

 

11. The Agent shall have received customary legal opinions, corporate documents and officers’
and public officials’ certifications and insurance certificates. Subject to the Limited
Conditionality Provisions, (i) the Agent under the First Lien Facilities shall have a perfected
first priority security interest in and lien on all Collateral and the Agent under the Second Lien
Term Facility shall have a perfected second priority security interest in and lien on all
Collateral and (ii) all filings and recordations necessary in connection with such liens and
security interests or arrangements reasonably satisfactory to the Collateral Agent therefor shall
have been duly made. The Agent shall have received the results of recent lien searches in each
relevant jurisdiction with respect to the Borrower and its subsidiaries, and if such search results
reveal any liens on any assets of the Borrower and its subsidiaries other than customary permitted
liens, liens to be discharged on or prior to the Closing Date and liens securing Excluded Debt, the
Borrower shall have used commercially reasonable efforts to discharge such liens on or prior to the
Closing Date. Each of the Guarantees shall have been executed and be in full force and effect.

12. All accrued costs, fees and expenses (including legal fees and expenses and the fees and
expenses of any other advisors) and other compensation payable to the Agent, the Arrangers and the
Lenders, required to be paid on the Closing Date in each case pursuant to the Commitment Letter or
the Fee Letters, shall have been paid (which amount may be offset against the proceeds of the
Facilities).

Summary of Additional Conditions Precedent

 

C-3

 

ANNEX C-I

FORM OF SOLVENCY CERTIFICATE

SOLVENCY CERTIFICATE

of

WALTER INVESTMENT MANAGEMENT CORP.

AND ITS SUBSIDIARIES

Pursuant to the Credit Agreement3, the undersigned hereby certifies, solely in such
undersigned’s capacity as [chief financial officer] [specify other officer with equivalent duties]
of the Borrower, and not individually, as follows:

1. I have made such investigation and inquiries as to the financial condition of the Borrower and
its subsidiaries as I have deemed necessary and prudent for the purposes of providing this Solvency
Certificate. I acknowledge that the Administrative Agent, the L/C Issuer and the Lenders are
relying on the truth and accuracy of this Solvency Certificate in connection with the making of
Loans and the issuance of Letters of Credit under the Credit Agreement. I further certify that the
financial information, projections and assumptions which underlie and form the basis for the
representations made in this Solvency Certificate were made in good faith and were based on
assumptions reasonably believed by the Borrower to be fair in light of the circumstances existing
at the time made and continue to be fair as of the date hereof.

2. As of the date hereof, after giving effect to the consummation of the Transactions, including
the making of the Loans and the issuance of Letters of Credit (if any) under the Credit Agreement
on the date hereof, and after giving effect to the application of the proceeds of such Loans:

	 	a.	 	The fair value of the assets of the Borrower and its subsidiaries, on
a consolidated basis, exceeds, on a consolidated basis, their debts and
liabilities, subordinated, contingent or otherwise;

	 
	 	b.	 	The present fair saleable value of the assets of the Borrower and its
subsidiaries, on a consolidated basis, is greater than the amount that will be
required to pay the probable liability, on a consolidated basis, of their debts
and other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured;

	 
	 	c.	 	The Borrower and its subsidiaries, on a consolidated basis, are able
to pay their debts and liabilities, subordinated, contingent or otherwise, as such
liabilities become absolute and matured; and

	 
	 	d.	 	The Borrower and its subsidiaries, on a consolidated basis, are not
engaged in, and are not about to engage in, business for which they have
unreasonably small capital.

For purposes of this Solvency Certificate, the amount of any contingent liability at any time
shall be computed as the amount that would reasonably be expected to become an actual and matured
liability. Capitalized terms used but not otherwise defined herein shall have the meanings
assigned to them in the Credit Agreement.

 

	 	 	 
	3	 	Credit Agreement to be defined.

Solvency Certificate

 

 

 

IN WITNESS WHEREOF, the undersigned has executed this Solvency Certificate in such
undersigned’s capacity as [chief financial officer] [specify other officer with equivalent duties]
of the Borrower, on behalf of the Borrower, and not individually, as of the date first stated
above.

	 	 	 	 	 
	 	WALTER INVESTMENT MANAGEMENT CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Solvency Certificate

 

C-I-2

 

SCHEDULE I

(a) Green Tree Servicing LLC received a Civil Investigative Demand (“CID”) from the Federal
Trade Commission (the “FTC”), its primary federal regulator, on November 18, 2010. The CID
was issued by the FTC in connection with a nonpublic investigation of loan servicing acts and
practices, and requires the Group Companies to produce certain documents and information to the FTC
and answer certain written interrogatories.

(b) Except as set forth in clause (c) below, this Schedule I and the disclosure herein speaks
solely to the CID and the obligations of the Group Companies to comply with and respond to the CID,
and does not (and is not intended to) serve as disclosure in respect of any Action, Order,
violation of Law or other matter that may result from the FTC investigation underlying the CID,
including to the extent prompted by the disclosure or contents of any of the documents and
information produced, or answers to written interrogatories provided, pursuant to the CID (each, a
“Reserved Matter”).

(c) Solely for purposes of the reference to this Schedule I in the definition of “Company Material
Adverse Effect” in the Commitment Letter, the matter set forth in this Schedule I shall be read to
include disclosure of any change, development, circumstance, effect, event or fact arising from or
relating to the matter described in clause (a) of this Schedule I if the Company does not, as of
the date of the Agreement, have knowledge of any such Reserved Matter or of any underlying breach
of Article 3 or Article 4 of the Purchase Agreement that gives rise to a Reserved Matter.

Any capitalized terms used in this Schedule I and not otherwise defined in the Commitment Letter
shall have the same meaning as set forth in the Purchase Agreement as in effect on the date hereof
and the phrases “to the Company’s knowledge”, “to the knowledge of the Company” and “known by the
Company” and any derivations thereof shall mean as of the applicable date, the actual knowledge
after reasonable inquiry (but shall in no event encompass constructive, imputed or similar concepts
of knowledge) of Brian Libman, Keith Anderson, James Breakey, Barbara Didrikson, Brian Corey,
Cheryl Collins, Jeffrey Hilligoss, Thomas Franco, Patricia Cook, James Van House, Dominic Baglio,
Mark Atencio, Ronald Siemers, Randy Shannon, Wade Burgess, and Scott Clarke, none of whom shall
have any personal liability or obligations regarding such knowledge.

Solvency Certificate

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