Document:

EX-10.36

 Exhibit 10.36 

EXECUTION VERSION 
 AMENDMENT NO. 1
TO CREDIT AGREEMENT AND SECURITY AGREEMENT 
 AMENDMENT NO. 1 TO CREDIT AGREEMENT AND SECURITY AGREEMENT (this
“Amendment”), entered into as of October 15, 2019, among VELOCITY FINANCIAL, LLC, a Delaware limited liability company (“Parent”), VELOCITY COMMERCIAL CAPITAL, LLC, a California limited liability company
(the “Borrower”), VELOCITY COMMERCIAL RESOURCES, LLC, a California limited liability company (the “Guarantor”), the Lenders party hereto and OWL ROCK CAPITAL CORPORATION (“Owl Rock”), in its
capacities as the Administrative Agent and the Collateral Agent. 
 RECITALS: 

A.    Parent, the Borrower, the other Guarantors party thereto from time to time, the Lenders party thereto from time to
time and Owl Rock, in its capacities as the Administrative Agent and the Collateral Agent, are parties to that certain Credit Agreement, dated as of August 29, 2019 (as amended, restated, amended and restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”). Capitalized terms used herein but not defined herein shall have the meanings assigned to such terms in the Credit Agreement. 

B.    Parent, the Borrower, the other Grantors (as defined therein) from time to time party thereto and Owl Rock, in its
capacity as the Collateral Agent, are parties to that certain Security Agreement, dated as of August 29, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Security
Agreement”). 
 C.    On October 10, 2019, the Borrower and the other Persons party thereto entered
into the Amended and Restated Limited Liability Company Agreement of VCC Mortgage Securities, LLC in the form of Exhibit A (the “A&R VMS LLC Agreement”), and on such date the A&R VMS LLC Agreement
became effective, and amended and restated the Limited Liability Company Agreement of VCC Mortgage Securities, LLC dated January 26, 2011, in accordance with the terms of the A&R VMS LLC Agreement. 

D.    Holdings, the Borrower and the Guarantor have requested that (i) the Required Lenders agree to amend certain
provisions of the Credit Agreement and (ii) Owl Rock, in its capacity as the Collateral Agent, agree to amend certain provisions of the Security Agreement, each as provided for herein. 

E.    The Required Lenders are willing to agree to such amendment relating to the Credit Agreement and Owl Rock, in its
capacity as the Collateral Agent, is willing to agree to such amendment relating to the Security Agreement. 
 NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

SECTION 1.    Definitions. Except as otherwise defined in this Amendment, each term defined in the Credit
Agreement is used herein as defined therein. 
 SECTION 2.    Amendment. Effective as of the Amendment
Effective Date (as defined below): 
 (a)    Section 1.01 (Defined Terms) of the Credit Agreement is hereby amended by
adding the following new definitions thereto in the proper alphabetical order: 
 “Amendment
No. 1” means Amendment No. 1 to Credit Agreement and Security Agreement, entered into as of October 15, 2019, among Parent, the Borrower, the Guarantors party thereto, the Lenders party thereto, the
Administrative Agent and the Collateral Agent. 

 “Amendment No. 1 Effective Date” has the
meaning assigned to the term “Amendment Effective Date” in Amendment No. 1. 
 (b)    The definition
of the term “Securitization Depositor Entity” in Section 1.01 (Defined Terms) of the Credit Agreement is hereby amended by replacing the text “(as in effect on the Closing Date)” therein with the text “(as in effect on
the Amendment No. 1 Effective Date)”. 
 (c)    Clause (ii)(B) of Section 5.03 (Governmental
Authorization; Other Consents) of the Credit Agreement is hereby amended by replacing the text “solely in the case of clause (d) with respect to the Equity Interests in VCC Mortgage Securities, which are specified in the Limited Liability
Company Agreement of VCC Mortgage Securities” therein with the text “[reserved]”. 

(d)    Section 6.17 (New Securitization Depositor Entity) of the Credit Agreement is hereby amended by replacing the
text “after the Closing Date” with the text “after October 15, 2019”. 

(e)    Clause (e) of Section 2.03 (Representations, Warranties and Covenants) of the Security Agreement is
hereby amended by deleting the text “(or, with respect to the Equity Interests of VCC Mortgage Securities, the Limited Liability Company Agreement of VCC Mortgage Securities)” therein. 

SECTION 3.    Representations and Warranties. Each of the Loan Parties represents and warrants to Owl Rock, in
its capacities as the Administrative Agent and the Collateral Agent, and the Lenders that, as of the date of this Amendment and as of the Amendment Effective Date: 

(a)    The representations and warranties set forth in each Loan Document are true and correct in all material respects
with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date and except that such materiality qualifier shall not be applicable to any representation and
warranty that is already qualified by materiality. 
 (b)    At the time of and immediately after giving effect to this
Amendment, no Default or Event of Default has occurred and is continuing. 
 SECTION 4.    Conditions to
Effectiveness of this Amendment. This Amendment shall become effective as of 12:01 a.m. (New York City time) on the date (such date, the “Amendment Effective Date”) that Owl Rock, in its capacities as the Administrative Agent
and the Collateral Agent, shall have received counterparts of this Amendment executed by Holdings, the Borrower, the Guarantor, the Lenders party to the Credit Agreement constituting Required Lenders and Owl Rock, in its capacities as the
Administrative Agent and the Collateral Agent. 
 SECTION 5.    Confirmation of Loan Documents. Each of
Parent, the Borrower and the Guarantor, on behalf of itself and each other Loan Party, hereby confirms that each Loan Document to which any Loan Party is a party or otherwise bound and all Collateral encumbered thereby will continue to guarantee or
secure, as the case may be, to the fullest extent possible in accordance with the Loan Documents, the payment and performance of all “Obligations” under each of the Loan Documents to which any Loan Party is a party (in each case, as such
terms are defined in the applicable Loan Document). Each of Parent, the Borrower and the Guarantor, on behalf of itself and each other Loan Party, acknowledges and agrees that any of the Loan Documents to which any Loan Party is a party or otherwise
bound shall continue in full force and effect and that all of such Loan Party’s obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Amendment. 

  
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 SECTION 6.    Miscellaneous. 

(a)    On and after the date hereof, (i) each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof”
or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement after giving effect to this Amendment and (ii) each reference in the Security Agreement to “this Agreement”,
“hereunder”, “hereof”, “herein” or words of like import referring to the Security Agreement, and each reference in the other Loan Documents to the “Security Agreement”, “thereunder”,
“thereof” or words of like import referring to the Security Agreement shall mean and be a reference to the Security Agreement after giving effect to this Amendment. This Amendment shall be deemed to be a Loan Document for all purposes.

 (b)    Except as specifically modified or waived by this Amendment, the Credit Agreement, the Security Agreement and
the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right,
power or remedy of the Administrative Agent, the Collateral Agent or any Lender under, the Credit Agreement, the Security Agreement or any of the other Loan Documents, except as specifically provided herein. 

(c)    By their execution of this Amendment, each of the Lenders party hereto hereby authorizes and directs the
Administrative Agent and the Collateral Agent to execute this Amendment. 
 (d)    This Amendment may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract, and shall become effective as provided in Section 4
hereof. Delivery of an executed signature page to this Amendment by facsimile (or other electronic) transmission shall be as effective as delivery of a manually signed counterpart of this Amendment. 

(e)    This Amendment shall be construed in accordance with and governed by the laws of the State of New York. 

(f)    The provisions of Sections 1.02 (Other Interpretive Provisions), 1.05 (References to Agreements, Laws, Etc.), 10.15
(GOVERNING LAW) and 10.16 (WAIVER OF RIGHT TO TRIAL BY JURY) of the Credit Agreement are incorporated herein, mutatis mutandis. 

[Signature Pages Follow] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by
their proper and duly authorized officers as of the day and year first above written. 
  

					
	VELOCITY FINANCIAL, LLC,
	as Parent
		
	By:	 	 /s/ Christopher D. Farrar

		 	Name:	 	Christopher D. Farrar
		 	Title:	 	Chief Executive Officer
	
	VELOCITY COMMERCIAL CAPITAL, LLC,
	as the Borrower
		
	By:	 	 /s/ Christopher D. Farrar

		 	Name:	 	Christopher D. Farrar
		 	Title:	 	Chief Executive Officer
	
	VELOCITY COMMERCIAL RESOURCES, LLC, as
	the Guarantor
		
	By:	 	 /s/ Christopher D. Farrar

		 	Name:	 	Christopher D. Farrar
		 	Title:	 	Chief Executive Officer

  
 [Signature Page to
Amendment No. 1 to Credit Agreement and Security Agreement] 

					
	OWL ROCK CAPITAL CORPORATION,
	as the Administrative Agent, the Collateral Agent and a
	Lender
		
	By:	 	 /s/ Alexis Maged

		 	Name:	 	Alexis Maged
		 	Title:	 	Authorized Signatory

  
 [Signature Page to
Amendment No. 1 to Credit Agreement and Security Agreement] 

 
					
	ORCC II FINANCING LLC,
	as a Lender
		
	By:	 	 /s/ Alan Kirshenbaum

		 	Name:	 	Alan Kirshenbaum
		 	Title:	 	Authorized Signatory

  
 [Signature Page to
Amendment No. 1 to Credit Agreement and Security Agreement]Exhibit

FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Amendment”), dated as of October 16, 2019 (the “Effective Date”), is by and between The Simply Good Foods Company, a Delaware corporation (the “Company”), and Joseph E. Scalzo, in his individual capacity (“Executive”).
RECITALS
WHEREAS, the Company and Executive are parties to that certain Amended and Restated Employment Agreement, dated July 7, 2017 (the “Employment Agreement”), and any terms not defined herein shall have the same meaning as in the Employment Agreement; and
WHEREAS, the Company and Executive desire to amend the Employment Agreement, effective as of the Effective Date, according to the terms and conditions set forth in this Amendment, to account for certain changes to the terms of Executive’s employment, including, without limitation, eliminating the “single trigger” vesting treatment of Executive’s outstanding incentive equity awards upon a Qualifying Change of Control.
NOW, THEREFORE, in consideration of the mutual promises, agreements and consideration set forth below, the parties agree to the following terms:
WITNESSETH
1.Section 4(c)(v).  Section 4(c)(v) is hereby and amended and restated as follows:
Subject to this SECTION 4(c)(v), notwithstanding anything to the contrary in this Employment Agreement, if a Change in Control (as defined in the Incentive Plan) occurs, neither the Company, nor any current and/or future entity that controls, is controlled by or is under common control with the Company (collectively, “Affiliates”), nor any acquirer of the Company or any Affiliate of the Company, will have any obligation to make severance payments under this Section in connection with such Change in Control, unless a Qualifying Termination occurs.  If a Qualifying Termination occurs during the Term of this Employment Agreement and within the twelve (12)-month period immediately following a Change in Control, then in addition to the payments and benefits set forth in SECTION 4(c)(i), Executive will be entitled to accelerated vesting of all of his incentive equity awards outstanding as of the consummation of such Change in Control, subject to his execution and non-revocation of the Release as required below.
2.Section 4(f).  Section 4(f) is hereby and amended and restated as follows:
Good Reason. “Good Reason” means, without the express prior written consent of Executive, (i) a material reduction of Executive’s position, duties, and responsibilities with the Company from those in effect as of the date of this Employment Agreement, provided, that the Company’s transition of Executive’s position, duties and responsibilities to a new Chief Executive Officer following receipt of Executive’s notice of retirement (which he must provide at least six (6) months prior to retiring) will not constitute Good Reason so long as Executive continues to have executive officer-level responsibilities, (ii) Executive ceasing to report to the Board (or, following a Change in Control, not reporting to the Board of the ultimate parent of the Company), (iii) the Company’s failure to take commercially reasonable best efforts to nominate Executive to the Board (unless such nomination is prohibited by legal or regulatory requirements), (iv) a reduction 

 

by the Company of Executive’s Base Salary provided in SECTION 3(a) of this Employment Agreement, (v) a reduction by the Company of Executive’s Target Bonus provided in SECTION 3(a) of this Employment Agreement, (vi) a reduction by the Company of Executive’s target annual long-term incentive opportunity below the amount of Executive’s target annual long-term incentive opportunity for fiscal year 2019, (vii) the Company’s material breach of this Employment Agreement, or (viii) the Company’s requiring Executive to move his primary place of employment more than fifty (50) miles from his primary place of employment as of the Effective Date (provided, that, Executive will not have Good Reason under this clause (viii), if the Company relocates its headquarters without relocating Executive’s primary place of employment, even if such relocation increases the amount of Executive’s business travel); provided, however, that no act or omission described in clauses (i) through (viii) shall be treated as “Good Reason” under this Employment Agreement unless (1) Executive delivers to the Company a written statement of the basis for Executive’s belief that Good Reason exists, (2) Executive gives the Company thirty (30) days after the delivery of such statement to cure the basis for such belief, and (3) Executive actually resigns during the ten (10) day period which begins immediately after the end of such thirty (30) day period if Good Reason continues to exist after the end of such thirty (30) day period. 
3.     Construction. Except as specifically provided in this Amendment, the Employment Agreement will remain in full force and effect and is hereby ratified and confirmed in all respects.  To the extent a conflict arises between the terms of the Employment Agreement and this Amendment, the terms of this Amendment shall prevail.

4.     Governing Law.  This Amendment shall be construed under and enforced in accordance with the laws of the State of Delaware, in accordance with Section 10(c) of the Employment Agreement.

5.      Entire Agreement.  The Employment Agreement, as amended by this Amendment effective as of the Effective Date, embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in the Employment Agreement and this Amendment.

6.      Counterparts.  This Amendment may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

     2

IN WITNESS WHEREOF, the Company and Executive have executed this Amendment in multiple originals to be effective on the Effective Date.

	
				
	THE SIMPLY GOOD FOODS COMPANY
	 
	EXECUTIVE

	 
	 
	 
	 

	By:
	/s/ David West        
	 
	/s/ Joseph E. Scalzo

	Name:
	David West
	 
	Joseph E. Scalzo

	Title:
	Vice Chair of the Board
	 
	 

	October 16, 2019
	 
	October 16, 2019

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