Document:

Exhibit 4.3

Exhibit 4.3 

							
	 
	 
	 
	 
	 
	 
	 

	NUMBER

ARR.W_____ 

	 
	(SEE REVERSE SIDE FOR LEGEND)

THIS WARRANT WILL BE VOID IF NOT EXERCISED PRIOR TO

5:00 P.M. NEW YORK CITY TIME, NOVEMBER 7, 2013

	 
	WARRANTS

ARMOUR Residential REIT, Inc.

CUSIP                           

WARRANT

THIS CERTIFIES THAT, for value received  

is the registered holder of a Warrant or Warrants expiring at 5:00 p.m., New York City time, on November 7, 2013 (the “Warrant”) to purchase one fully paid and non-assessable share (“Shares”) of Common Stock, par value $.001 per share (“Common Stock”), of ARMOUR Residential REIT, Inc., a Maryland corporation (the “Corporation”), for each Warrant evidenced by this Warrant Certificate. The Warrant entitles the holder thereof to purchase from the Corporation such number of Shares of the Corporation at the price of $11.00 per share, upon surrender of this Warrant Certificate and payment of the Warrant Price at the office or agency of Continental Stock Transfer & Trust Company (the “Warrant Agent”), but only subject to the conditions set forth herein and in the Warrant Agreement, made as of November 7, 2007, between Enterprise Acquisition Corp., a Delaware corporation (“Enterprise”), and the Warrant Agent, as amended by the Supplement and Amendment to Warrant Agreement, dated as of ______, 2009, among Enterprise, the Corporation and the Warrant Agent (as the same may be amended from time to time, the “Warrant Agreement”). The Corporation shall not be obligated to deliver any securities pursuant to the exercise of a Warrant and shall have no obligation to settle a Warrant exercise unless a registration statement under the Securities Act of 1933, as amended (the “Act”), with respect to the Common Stock is effective, subject to the Corporation satisfying its obligations under Section 7.4 of the Warrant Agreement to use its best efforts. In the event that a registration statement with respect to the Common Stock underlying a Warrant is not effective under the Act, the holder of such Warrant shall not be entitled to exercise such Warrant and such Warrant may have no value and expire worthless. In no event will the Corporation be required to net cash settle the warrant exercise. The Warrant Agreement provides that upon the occurrence of certain events the Warrant Price and the number of Warrant Shares purchasable hereunder, set forth on the face hereof, may, subject to certain conditions, be adjusted. The term Warrant Price as used in this Warrant Certificate refers to the price per Share at which Shares may be purchased at the time the Warrant is exercised. 

The Shares underlying the Warrants represented by this certificate are subject to restrictions on Beneficial Ownership and Constructive Ownership and Transfer for the purpose of the Corporation’s maintenance of its qualification as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to certain further restrictions and except as expressly provided in the Corporation’s Charter, (i) no Person may Beneficially Own or Constructively Own shares of the Corporation’s Common Stock in excess of 9.8 percent (in value or number of shares) of the outstanding shares of Common Stock of the Corporation unless such Person is an Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (ii) no Person may Beneficially Own or Constructively Own shares of Capital Stock of the Corporation in excess of 9.8 percent (in value or number of shares) of the total outstanding shares of Capital Stock of the Corporation, unless such Person is an Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (iii) no Person may Beneficially Own or Constructively Own Capital Stock that would result in the Corporation being “closely held” under Section 856(h) of the Code or otherwise cause the Corporation to fail to qualify as a REIT; and (iv) no Person may Transfer shares of Capital Stock if such Transfer would result in the Capital Stock of the Corporation being owned by fewer than 100 Persons. Any Person who Beneficially Owns or Constructively Owns or attempts to Beneficially Own or Constructively Own shares of Capital Stock which causes or will cause a Person to Beneficially Own or Constructively Own shares of Capital Stock in excess or in violation of the above limitations must immediately notify the Corporation. If the restrictions on transfer or ownership provided in (i), (ii) or (iii) above are violated, the shares of Capital Stock in excess or in violation of the above limitations will be automatically transferred to a Trustee of a Trust for the benefit of one or more Charitable Beneficiaries. In addition, the Corporation may redeem shares upon the terms and conditions specified by the Board of Directors in its sole discretion if the Board of Directors determines that ownership or a Transfer or other event may violate the restrictions described above. Furthermore, if the ownership restriction provided in (iv) above would be violated or upon the occurrence of certain events, attempted Transfers in violation of the restrictions described above may be void ab initio. All capitalized terms in this paragraph have the meanings defined in the Charter of the Corporation, as the same may be amended from time to time. 

No fraction of a Share will be issued upon any exercise of a Warrant. If the holder of a Warrant would be entitled to receive a fraction of a Share upon any exercise of a Warrant, the Corporation shall, upon such exercise, round up or down to the nearest whole number the number of Shares to be issued to such holder. 

Upon any exercise of the Warrant for less than the total number of full Shares provided for herein, there shall be issued to the registered holder hereof or the registered holder’s assignee a new Warrant Certificate covering the number of Shares for which the Warrant has not been exercised. 

Warrant Certificates, when surrendered at the office or agency of the Warrant Agent by the registered holder hereof in person or by attorney duly authorized in writing, may be exchanged in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants. 

Upon due presentment for registration of transfer of the Warrant Certificate at the office or agency of the Warrant Agent, a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any applicable tax or other governmental charge. 

The Corporation and the Warrant Agent may deem and treat the registered holder as the absolute owner of this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the registered holder, and for all other purposes, and neither the Corporation nor the Warrant Agent shall be affected by any notice to the contrary. 

This Warrant does not entitle the registered holder to any of the rights of a stockholder of the Corporation. 

The Corporation reserves the right to call the Warrant at any time prior to its exercise, with a notice of call in writing to the holders of record of the Warrant, giving 30 days’ notice of such call at any time after the Warrant becomes exercisable if the last sale price of the Shares has been at least $14.25 per share on each of 20 trading days within any 30 trading day period ending on the third business day prior to the date on which notice of such call is given. The call price of the Warrants is to be $.01 per Warrant. Any Warrant either not exercised or tendered back to the Corporation by the end of the date specified in the notice of call shall be canceled on the books of the Corporation and have no further value except for the $.01 call price. 

			
	

By:                                                                                    

Secretary 

	 
	

                                                                                                            

 President

2

SUBSCRIPTION FORM

To Be Executed by the Registered Holder in Order to Exercise Warrants

The undersigned Registered Holder irrevocably elects to exercise                  Warrants represented by this Warrant Certificate, and to purchase the shares of Common Stock issuable upon the exercise of such Warrants, and requests that Certificates for such shares shall be issued in the name of 

			
	 

	(PLEASE TYPE OR PRINT NAME AND ADDRESS)

	 

	 

	 

	(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)

	and be delivered to                                                                                                                                                                 

	(PLEASE PRINT OR TYPE NAME AND ADDRESS)

	 

	and, if such number of Warrants shall not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants be registered in the name of, and delivered to, the Registered Holder at the address stated below:

	 

	Dated:                 

	 

	 
	(SIGNATURE)

	 
	 

	 
	(ADDRESS)

	 
	 

	 
	 

	 
	(TAX IDENTIFICATION NUMBER)

	 
	 

	ASSIGNMENT

To Be Executed by the Registered Holder in Order to Assign Warrants

	For Value Received,                                                  hereby sell, assign, and transfer unto 

	 

	(PLEASE PRINT OR TYPE NAME AND ADDRESS)

	 

	 

	 

	(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)

	and be delivered to                                                                                                                                                 

	(PLEASE PRINT OR TYPE NAME AND ADDRESS)

	                                 of the Warrants represented by this Warrant Certificate, and hereby irrevocably constitute and appoint                                                                  Attorney to transfer this Warrant Certificate on the books of the Corporation, with full power of substitution in the premises.

	Dated:                                 

	 

	 
	(SIGNATURE)

THE SIGNATURE TO THE ASSIGNMENT OF THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR CHICAGO STOCK EXCHANGE. 

3ex10-1.htm

    Exhibit
10.1

     

    OMNIBUS
AMENDMENT NO. 2

    TO

    LOAN,
SECURITY AND SERVICING AGREEMENT

    AND

    FEE
AGREEMENT

    

    THIS
AMENDMENT (the “Amendment”) is
entered into effective as of September 30, 2009, by and among, Ministry Partners
Funding, LLC (the “Borrower”), Fairway
Finance Company, LLC (the “Lender”), Evangelical
Christian Credit Union (the “Servicer”), BMO
Capital Markets Corp. (the “Agent”), U.S. Bank
National Association, and Lyon Financial Services, Inc. (d/b/a U.S. Bank
Portfolio Services).

     

    WITNESSETH

     

    WHEREAS,
the parties hereto previously entered into that certain Loan, Security and
Servicing Agreement, dated as of October 30, 2007, as heretofore amended (the
“Original Loan
Agreement”, the Original Loan Agreement, as amended by this Amendment are
herein collectively called the “Loan
Agreement”);

     

    WHEREAS,
in connection with the Original Loan Agreement, the Borrower, the Servicer and
the Agent entered into that certain Fee Agreement, dated as of October 30, 2007,
as heretofore amended (the “Original Fee
Agreement”, the Original Fee Agreement, as amended by this Amendment are
herein collectively called the “Fee
Agreement”);

     

    WHEREAS,
the Facility Termination Date occurred on October 31, 2008 and as a result
thereof, the Lenders’ obligations to make Loans under the Loan Agreement have
terminated and the outstanding Loans are amortizing in accordance with the terms
of the Loan Agreement;

     

    WHEREAS,
the parties hereto have agreed to amend the Original Loan Agreement and the
Original Fee Agreement on the terms and subject to the conditions set forth
herein;

     

    NOW,
THEREFORE, in consideration of the premises and mutual agreement contained
herein, the adequacy and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

     

    Section
1.  Defined
Terms.

     

    For
purposes of this Amendment, unless the context clearly requires otherwise, all
capitalized terms which are used but not otherwise defined herein shall have the
respective meanings assigned to such terms in the Loan Agreement.

     

    Section
2.  Amendment to
Loan Agreement.

     

    (a)           Clause
‘sixth’ of
Section 1.4(e)
of the Original Loan Agreement is hereby amended in its entirety to read as
follows:

     

    “sixth, to the Agent,
in payment of the sum of (i) the accrued and unpaid Interest on the outstanding
Loans, plus
(ii) the accrued and unpaid Non-Usage Fee, plus (iii) any losses
or expenses incurred by the Agent or the Lender as a result of any payment or
prepayment of all or any portion of the Loan (including, without limitations, as
a result of clause
(e) seventh below, plus (iv) all
reasonable costs, fees and expenses that Agent pays or incurs in connection with
the negotiation, preparation, administration, enforcement, perfection, amendment
and termination of this Agreement or any of the other Transaction Documents
(including, without limitation, the reasonable fees and expenses of counsel to
Agent actually incurred in connection therewith) (each, as confirmed by the
Agent);”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)           Subsections (i), (ii) and
(iii) to the definition of “Concentration Limits” set forth in Exhibit I of the
Original Loan Agreement are hereby amended in their entirety to read as
follows:

     

    “(i) 
The aggregate Outstanding Principal Balance of all Eligible Mortgage Loans
located in any single state (other than California, Texas and Florida) shall not
exceed 9% of the Eligible Pool Balance;

     

    (ii) 
The aggregate Outstanding Principal Balance of all Eligible Mortgage Loans
located in (a) Texas shall not exceed 19% of the Eligible Pool Balance, and (b)
Florida shall not exceed 12% of the Eligible Pool Balance;

     

    (iii) 
The aggregate Outstanding Principal Balance of all Eligible Mortgage Loans
located in California shall not exceed 15% of the Eligible Pool
Balance;”

     

    (c)           The
definition of “Concentration Limits” set forth in Exhibit I of the
Original Loan Agreement is hereby amended by deleting the “and” following
subsection (x) and deleting the “.” following subsection (xi) and replacing it
with “;” and adding the following provisions as subsections (xii) and
(xiii):

     

    “             
(xii)  The aggregate Outstanding Principal Balance of all Eligible Mortgage
Loans that have a Mortgagor Debt Service ratio in excess of 30% shall not exceed
14% of the Eligible Pool Balance;

     

    (xiii)  The aggregate Outstanding
Principal Balance of all Eligible Mortgage Loans that have an LTV in excess of
45% shall not exceed 69% of the Eligible Pool Balance;”

     

    (d)           The
definition of “Eligible Mortgage Loan” set forth in Exhibit I of the
Original Loan Agreement is hereby amended by deleting clause (xxxv) in its
entirety and replacing it with the following:

     

    “[Reserved];”

     

    (e)           The
definition of “Loan Limit” set forth in Exhibit I of the
Original Loan Agreement is hereby amended in its entirety to read as
follows:

     

    “ ‘Loan Limit’ means the
amount set forth in the table below opposite the corresponding date of
determination:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        
          	
                  Date
      of Determination

                	
                  Loan
      Limit

                
	
                  on
      and after September 30, 2009 and prior to October 14, 2009

                	
                  $31,891,991

                
	
                  on
      and after October 14, 2009 and prior to November 14, 2009

                	
                  $30,000,000

                
	
                  on
      and after November 14, 2009 and prior to December 14, 2009

                	
                  $20,000,000

                
	
                  on
      and after December 14, 2009 and prior to January 14, 2010

                	
                  $10,000,000

                
	
                  on
      and after January 14, 2010 and prior to February 14, 2010

                	
                  $5,000,000

                
	
                  on
      and after February 14, 2010 and prior to March 14, 2010

                	
                  $2,500,000

                
	
                  on
      and after March 14, 2010

                	
                  $0.00

                

        

      

    

    

     

    Section
3.  Amendment to
Fee Agreement.

     

    The
second paragraph to the Original Fee Agreement is hereby amended and restated in
its entirety to read as follows:

     

    “For
purposes of the Loan Agreement, the term “Spread” means, (i)
prior to the occurrence and continuance of an Event of Default, and (A) prior
to  January 1, 2010, 1.75%, or (B) on or after January 1, 2010, 3.00%,
or (ii) following the occurrence and during the continuance of an Event of
Default, 2.00%.”

     

    Section
4.  Conditions to
Effectiveness.

     

    This
Amendment shall become effective as of the date first above written when and
only when:

     

    (i) 
the Agent shall have received a duly executed counterpart of this
Amendment,

     

    (ii) 
Borrower shall have paid all expenses of the Agent, including Agent’s outside
legal counsel, incurred and billed as of the date of this Amendment, in
connection with the transactions evidenced by this Amendment,

     

    (iii) 
Borrower shall have paid an amendment fee in the amount of $1,000.00 to each of
U.S. Bank National Association and Lyon Financial Services (d/b/a U.S. Bank
Portfolio Services), and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii) 
the Agent shall have received such other documents as the Agent may
request.

     

    Section
5.  Waiver.  The
Agent hereby irrevocably waives any breach or violation of the Loan Agreement
resulting solely from the Borrowing Base Deficit in existence on or before the
date hereof, which, for the avoidance of doubt, does not include any Borrowing
Base Deficit occurring on or after the date hereof.

     

    Section
6.  Representations and
Warranties.

     

    In order
to induce the parties to enter into this Amendment, Borrower represents and
warrants that:

     

    (a)           The
representations and warranties contained in Article II of the Original Loan
Agreement are true and correct at and as of the time of the effectiveness
hereof;

     

    (b)           Borrower
is duly authorized to execute and deliver this Amendment and is and will
continue to be duly authorized to perform its obligations under the Loan
Agreement.  Borrower has duly taken all action necessary to authorize
the execution and delivery of this Amendment and to authorize the performance of
the obligations of Borrower hereunder;

     

    (c)           The
execution and delivery by Borrower of this Amendment, the performance by
Borrower of its obligations hereunder and the consummation of the transactions
contemplated hereby do not and will not conflict with any provision of law,
statute, rule or regulation or of the certificate of formation and operating
agreement of Borrower, or of any material agreement, judgment, license, order or
permit applicable to or binding upon Borrower, or result in the creation of any
lien, charge or encumbrance upon any assets or properties of
Borrower.  Except for those which have been duly obtained, no consent,
approval, authorization or order of any court or governmental authority or third
party is required in connection with the execution and delivery by Borrower of
this Amendment or to consummate the transactions contemplated hereby;
and

     

    (d)           When
duly executed and delivered this Amendment will be a legal and binding
instrument and agreement of Borrower, enforceable in accordance with its terms,
except as limited by bankruptcy, insolvency and similar laws applying to
creditors’ rights generally and by principles of equity applying to creditors’
rights generally.

     

    Section
7.  Ratification
of Agreement.

     

    Each of
the Original Loan Agreement and the Original Fee Agreement as hereby
amended  are hereby ratified and confirmed in all
respects.  Any reference to the Loan Agreement or Fee Agreement in any
Transaction Document shall be deemed to refer to this Amendment
also.  The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of Agent or Lender under the Loan Agreement, the Fee
Agreement or any other Transaction Document nor constitute a waiver of any
provision of the Loan Agreement, the Fee Agreement or any other Transaction
Document.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
8.  Facility
Termination Date.

     

    The
Borrower, Servicer, Lender and Agent hereby confirm and agree that the Facility
Termination Date has heretofore occurred.

     

    Section
9.  Survival of
Agreements.

     

    All
representations, warranties, covenants and agreements of Borrower herein shall
survive the execution and delivery of this Amendment and the performance hereof,
and shall further survive until all of the Obligations are paid in
full.  All statements and agreements contained in any certificate or
instrument delivered by Borrower hereunder or under the Loan Agreement to the
Agent or the Lender shall be deemed to constitute representations and warranties
by, or agreements and covenants of, Borrower under this Amendment and under the
Loan Agreement.

     

    Section
10.  Binding
Effect.

     

    The
provisions of this Amendment shall be binding upon and shall be enforceable by
the parties hereto and their respective successors and assigns.

     

    Section
11.  Governing
Law.

     

    This
Amendment shall be construed in accordance with the substantive laws of the
State of New York (without regard to conflict of law principles, other than
Section 5-1401 of the New York General Obligations Law) and the
obligations, rights and remedies of the parties hereto shall be determined in
accordance with such laws.

     

    Section
12.  Severability
of Provisions.

     

    If any
one or more of the provisions or terms of this Amendment shall be for any reason
whatsoever held invalid, then such provisions or terms shall be deemed severable
from the remaining provisions or terms of this Amendment and shall in no way
affect the validity or enforceability of the other provisions or terms of this
Amendment.

     

    Section
13.  Transaction
Document.

     

    This
Amendment is a Transaction Document, and all provisions in the Loan Agreement
pertaining to Transaction Documents apply hereto and thereto.

     

    Section
14.  Counterparts.

     

    This
Amendment may be separately executed in counterparts and by the different
parties hereto in separate counterparts, each of which when so executed shall be
deemed to constitute one and the same Amendment.  This Amendment may
be duly executed by facsimile or other electronic transmission.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
AMENDMENT AND THE OTHER TRANSACTION DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

     

    THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     

    

    [The
Remainder of This Page Intentionally Left Blank]

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    
      
        
          
            
              
                
                  
                    
                      	 
      	
                              MINISTRY
      PARTNERS FUNDING, LLC,
      as Borrower

                            
	 	 
	 	 
	 
      	
                              By:_________________________________

                            
	 
      	
                              Name:
      Billy M. Dodson

                            
	 
      	
                              Title:
      President

                            
	 	 
	 	 
	 
      	
                              EVANGELICAL
      CHRISTIAN CREDIT UNION,
      as Servicer

                            
	 	 
	 	 
	 
      	
                              By:_________________________________

                            
	 
      	
                              Name:
      Terry L. Donnelly

                            
	 
      	
                              Title:
      Executive Vice President/ Credit
Manager

                            

                    

                  

                

              

            

          

        

      

    

    

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        
          	 
      	 
      
	 
      	
                  BMO
      CAPITAL MARKETS CORP., as Agent

                
	 	 
	 	 
	 
      	
                  By:_________________________________

                
	 
      	
                  Name:
      Matthew Peters

                
	 
      	
                  Title:
      Managing Director

                

        

      

    

    

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        
          
            
              	 
      	
                      FAIRWAY FINANCE COMPANY,
      LLC, as
      Lender

                    
	 	 
	 	 
	 
      	
                      By:_________________________________

                    
	 
      	
                      Name:
      Philip A. Martone

                    
	 
      	
                      Title:
      Vice
President

                    

            

          

        

      

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                	 
      	
                        U.S.
      BANK NATIONAL ASSOCIATION, as Account Bank and Custodian

                      
	 	 
	 	 
	 
      	
                        By:_________________________________

                      
	 
      	
                        Name:
      David Duclos

                      
	 
      	
                        Title:
      Vice
President

                      

              

            

          

        

      

    

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        
          	 
      	
                  LYON
      FINANCIAL SERVICES, INC.

                
	 
      	
                  (d/b/a
      U.S. Bank Portfolio Services),

                
	 
      	
                  as
      Back-Up Servicer

                
	 	 
	 	 
	 
      	
                  By:_________________________________

                
	 
      	
                  Name:
      Joseph Andries

                
	 
      	
                  Title:
      Senior Vice President

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