Document:

Exhibit
10.3

 

AMENDED AND RESTATED

 

REGISTRATION RIGHTS AGREEMENT

 

BY AND AMONG

 

DEERFIELD CAPITAL CORP.

 

BOUNTY INVESTMENTS, LLC

 

AND

 

CIFC PARENT HOLDINGS LLC

 

 

Dated as of
[                    ],
2011

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.

  	
   

  	
  Definitions

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.

  	
   

  	
  Demand Registration and Piggyback Rights on Demand
  Registrations

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.

  	
   

  	
  Piggyback Rights on Company or Third Party Registrations

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.

  	
   

  	
  Registration Procedures

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.

  	
   

  	
  Registration Expenses

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.

  	
   

  	
  Indemnification

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.

  	
   

  	
  Facilitation of Sales Pursuant to Rule 144

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.

  	
   

  	
  Miscellaneous

  	
  20

  

 

2

 

AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

 

THIS
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is
made and entered into as of
[                          ],
2011, by and among Deerfield Capital Corp., a Maryland corporation (the “Company”),
Bounty Investments, LLC , a Delaware limited liability company (together with
its successors and assigns, “Bounty”), and CIFC Parent Holdings LLC, a
Delaware limited liability company (together with its successors and assigns, “CIFC
Parent” and, together with Bounty, the “Investors”).

 

WHEREAS,
the Company, Bulls I Acquisition Corporation, a Delaware corporation and
wholly-owned subsidiary of the Company (“First MergerSub”), Bulls II
Acquisition LLC, a Delaware limited liability company and wholly-owned
subsidiary of the Company (“Second MergerSub” and, together with First
MergerSub, the “MergerSubs”), CIFC Parent and Commercial Industrial
Finance Corp., a Delaware corporation and wholly-owned subsidiary of CIFC
Parent (“CIFC”), are parties to the Agreement and Plan of Merger, dated
as of December 21, 2010 (the “Merger Agreement”), pursuant to which
on or about the date hereof (i) First MergerSub is merging with and into
CIFC (the “First Step Merger”), with CIFC continuing as the surviving
entity  (the “Intermediate Surviving Entity”), (ii) the Intermediate
Surviving Entity is next merging with and into Second MergerSub (the “Second
Step Merger” and, together with the First Step Merger, the “Merger”)
and (iii) in connection with the Merger, the Company is issuing to CIFC
Parent 9,090,909 shares (the “CIFC Shares”) of the common stock of the
Company, par value $.001 per share (the “Common Stock”), and making
certain cash payments to CIFC Parent, all in accordance with the terms of the
Merger Agreement;

 

WHEREAS,
pursuant to that certain Acquisition and Investment Agreement, dated as of March 22,
2010, among the Company, Bounty and Columbus Nova Credit Investment Management,
LLC, a Delaware limited liability company (the “Acquisition Agreement”),
the Company issued to Bounty 4,545,455 shares of Common Stock (the “Bounty
Shares”);

 

WHEREAS,
as of the date hereof, Bounty owns (i) the Bounty Shares and (ii) Senior
Subordinated Convertible Notes in the original principal amount of twenty-five
million dollars ($25,000,000) and due December 9, 2017 (the “Convertible
Notes”), which are convertible into shares of Common Stock (the “Conversion
Shares”);

 

WHEREAS,
the Company and Bounty are parties to the Registration Rights Agreement, dated
as of June 9, 2010 (the “Original Agreement”);

 

WHEREAS,
the Investors are establishing certain terms and conditions concerning the
corporate governance of the Company, the CIFC Shares and the Bounty Shares and
related provisions concerning the relationship of the Investors with, and their
investments in, the Company as provided in the Amended and Restated
Stockholders Agreement, dated as of the date hereof (the “Stockholders
Agreement”);

 

WHEREAS,
the execution and delivery of this Agreement is a condition to the obligations
of the Company, CIFC Parent and CIFC to consummate the Merger and the other
transactions contemplated by the Merger Agreement; and

 

3

 

WHEREAS,
the Company and the Investors desire to amend and restate the Original
Agreement and establish in this Agreement certain terms and conditions
concerning the registration rights with respect to the CIFC Shares, the Bounty
Shares and Conversion Shares and related provisions concerning the relationship
of the Investors with, and their investments in, the Company from and after the
Closing (as defined below).

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.              Definitions.  As used in this Agreement, the following
terms shall have the respective meanings set forth in this Section 1:

 

“Affiliate”
means, with respect to any Person, any other Person, directly or indirectly
through one or more intermediaries, controlling, controlled by or under common
control with such Person.  The term “control”
(including, with correlative meaning, the terms “controlled by” and “under
common control with”), as applied to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting or other
securities, by contract or otherwise.

 

“Automatic
Shelf Registration Statement” means an “automatic shelf registration
statement” as defined under Rule 405.

 

“Business
Day” means a day other than Saturday, Sunday or any other day on which
banks located in New York, New York are authorized or obligated Law to close.

 

“Closing”
means the closing of the transactions contemplated in the Merger Agreement.

 

“Commission”
means the United States Securities and Exchange Commission or any successor
entity thereto.

 

“Demand
Registration” has the meaning set forth in Section 2(a).

 

“Demanding
Holder” means the Holder requesting registration of Registrable Securities
pursuant to Section 2(a).

 

“Effective
Date” means the time and date that the Registration Statement filed
pursuant to Section 2(a)is first declared effective by the
Commission or otherwise becomes effective.

 

“Effectiveness
Date” means, with respect to each Registration Statement that may be
required pursuant to Section 2(a)) hereof: (i) if the Company
is a WKSI at such time, the date such additional Registration Statement is
filed; or (ii) if the Company is not a WKSI at such time, the earlier of:
(x) the forty-fifth (45th) day following the written notice of demand therefor by the Demanding
Holder and (y) the fifth (5th) Trading Day following the date on which the
Company is notified by the Commission that such additional Registration
Statement will not be reviewed or is no longer subject to further review and
comments.

 

“Effectiveness
Period” has the meaning set forth in Section 2(a).

 

4

 

“Electing
Holder” means (a) with respect to any Demand Registration pursuant to Section 2(a),
each Holder other than the Demanding Holder that requests to include
Registrable Securities in such Demand Registration and (b) with respect to
any Piggyback Registration pursuant to Section 3(a), each Holder
that requests to include Registrable Securities in such Piggyback Registration.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Filing
Date” means with respect to each Registration Statement that may be
required pursuant to Section 2(a) hereof, (x) if the
Company is then eligible to file a Registration Statement on Form S-3, the
fifteenth (15th) day following
the written notice of demand therefor by the Demanding Holder or (y) if
the Company is not then eligible to file a Registration Statement on
Form S-3, the thirtieth (30th) day following the written notice of demand
therefor by the Demanding Holder, provided, however, that if the
Filing Date falls on a Saturday, Sunday or other day that the Commission is
closed for business, the Filing Date shall be extended to the next Business Day
on which the Commission is open for business.

 

“Freely
Tradable” means, with respect to any security, a security that (i) is
eligible to be sold by the Holder thereof without any volume or manner of sale
restrictions under the Securities Act pursuant to Rule 144 or
(ii) (A) if certificated, does not and is not required to bear
legends restricting the transfer thereof and (B) if not certificated, does
not and is not required to bear a restricted CUSIP number and/or is not and is
not required to be held in a “restricted account” on behalf of a Holder by the
Company’s transfer agent.

 

“Governmental
Authority” means any foreign, federal, state or local governmental,
judicial, legislative, regulatory or administrative agency, commission or
authority, and any court, tribunal or arbitrator(s) of competent
jurisdiction, including Self-Regulatory Organizations.

 

“Holder”
or “Holders” means the record holder or holders, as the case may be,
from time to time of Convertible Notes and any Registrable Securities.

 

“Indemnified
Party” has the meaning set forth in Section 6(c).

 

“Indemnifying
Party” has the meaning set forth in Section 6(c).

 

“Investor
Shares” means the CIFC Shares, the Bounty Shares and any other shares of
Common Stock held by CIFC Parent, Bounty or any other Investor.

 

“Law”
means any statute, code, Order, law, ordinance, rule, regulation or other
requirement of any Governmental Authority (including, for the sake of clarity,
common law).

 

“Losses”
has the meaning set forth in Section 6(a).

 

“Order”
means any judgment, order, injunction, stipulation, decree, writ, doctrine,
ruling, assessment or arbitration award or similar order of any Governmental
Authority.

 

“Other
Securities” has the meaning set forth in Section 2(d).

 

5

 

“Person”
means any individual, corporation, partnership, limited liability company,
limited liability partnership, firm, joint venture, association, joint-stock
company, trust, unincorporated organization, Governmental Authority or other
entity.

 

“Piggyback
Notice” has the meaning set forth in Section 3(a).

 

“Piggyback
Registration” has the meaning set forth in Section 3(a)

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or known to the Company to be threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from
a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or supplemented
by any prospectus supplement, with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Registration Statement, and
all other amendments and supplements to the Prospectus, including
post-effective amendments, and all material incorporated by reference or deemed
to be incorporated by reference in such Prospectus.

 

“Questionnaire”
has the meaning set forth in Section 4(k).

 

“Registrable
Securities” means (i) the Investor Shares, (ii) the Conversion
Shares issuable or issued upon the conversion of the Convertible Notes and
(iii) any securities issued as (or issuable upon the conversion or
exercise of any warrant, right or other security that is issued as) a dividend,
stock split, recapitalization or other distribution with respect to, or in
exchange for, or in replacement of, the securities referenced in clauses (i) or
(ii) above or this clause (iii); provided, however,
that the term “Registrable Securities” shall exclude in all cases any
securities (1) sold or exchanged by a Person pursuant to an effective
registration statement under the Act or in compliance with Rule 144, (2) that
are Freely Tradable (it being understood that for purposes of determining
eligibility for resale under this clause (2), solely with respect to
clause (i) of the definition of Freely Tradable, no securities held
by any Holder shall be considered Freely Tradable to the extent such Holder
reasonably determines that it is an affiliate (as defined under Rule 144)
of the Company) or (3) that shall have ceased to be outstanding.

 

“Registration
Default” has the meaning set forth in Section 2(b).

 

“Registration
Default Date” has the meaning set forth in Section 2(b).

 

“Registration
Default Period” has the meaning set forth in Section 2(b).

 

“Registration
Statement” means a registration statement in the form required to register
the resale of the Registrable Securities, and including the Prospectus,
amendments and supplements to each such registration statement or Prospectus,
including pre- and post-effective amendments, all exhibits thereto, and all
material incorporated by reference or deemed to be incorporated by reference in
such registration statement.

 

6

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

 

“Rule 405”
means Rule 405 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

 

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

 

“Rule 433”
means Rule 433 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Self-Regulatory
Organization” means each national securities exchange in the United States
of America or other commission, board, agency or body that is charged with the
supervision or regulation of brokers, dealers, securities underwriting or
trading, stock exchanges, commodities exchanges, insurance companies or agents,
investment companies or investment advisers, or to the jurisdiction of which
any party or any of their respective subsidiaries is otherwise subject.

 

“Special
Interest” has the meaning set forth in Section 2(b).

 

“Super
Majority Interest” means the holders of two-thirds (66 2/3%) of the
Registrable Securities.

 

“Suspension
Period” has the meaning set forth in Section 2(a).

 

“Trading
Day” means any day on which the Common Stock is traded on the Trading
Market, or, if there is no Trading Market, any Business Day.

 

“Trading
Market” means the principal national securities exchange on which the
Common Stock is listed.

 

“WKSI”
means a “well known seasoned issuer” as defined under Rule 405.

 

7

 

Section 2.              Demand
Registration and Piggyback Rights on Demand Registrations.

 

(a)           Subject to Section 2(c),
if at any time the Company receives a written request from Bounty or CIFC
Parent that the Company register Registrable Securities under the Securities
Act, the Company will prepare and file with the Commission, as promptly as
reasonably practicable but not later than the applicable Filing Date, a
Registration Statement covering the resale of all Registrable Securities that
the Demanding Holder requests to be registered (each such registration, a “Demand
Registration”); provided, that the Company shall not be required to
register the Registrable Securities unless the Demanding Holder has requested
to include in such Registration at least the lesser of (A) 1,000,000
shares of Common Stock and (B) if the Common Stock is then listed, the
number of Registrable Securities having a fair market value (based on the
closing price of the Common Stock quoted on the Trading Market immediately
preceding the date the request is received by the Company) of $5,000,000.  The Registration Statement (i) shall be
on Form S-3 (except if the Company is not then eligible to register for
resale the Registrable Securities on Form S-3, in which case such
registration shall be on another appropriate form for such purpose) and, if the
Company is a WKSI as of the Filing Date, shall be an Automatic Shelf
Registration Statement and (ii) shall contain (except if otherwise
requested by the Demanding Holder or required pursuant to written comments
received from the Commission upon a review of such Registration Statement) the “Plan
of Distribution” in substantially the form attached hereto as Annex A.  The Company will use its commercially
reasonable efforts to cause the Registration Statement to be declared effective
or otherwise to become effective under the Securities Act as soon as possible
but, in any event, no later than the Effectiveness Date, and will use its commercially
reasonable efforts to keep the Registration Statement continuously effective
from the Effectiveness Date until the earliest to occur of (x) the date on
which the Demanding Holder notifies the Company in writing that all Registrable
Securities included in such Registration Statement have been sold in reliance
thereon or that the offering for the sale thereof (or any unsold portion
thereof) has been abandoned, and (y) thirty (30) days following the date
that such Registration Statement was declared effective by the Commission (such
period, the “Effectiveness Period”). 
The Company shall promptly notify all other Holders of any demand made
by a Demanding Holder, and each such Holder who wishes to include all or a
portion of such Holder’s Registrable Securities in the Demand Registration
shall so notify the Company within fifteen (15) days after the receipt by the
Holder of the notice from the Company. 
Upon any such request, the Electing Holders shall be entitled to have
their Registrable Securities included in the Demand Registration, subject to Section 2(d).  Neither the Company nor any other Person
(other than the Demanding Holder and any Electing Holders) shall be entitled to
include Other Securities in any Demand Registration without the prior written
consent of the Demanding Holder. 
Notwithstanding anything to the contrary in this Agreement, upon notice
to the Holders, without incurring or accruing any obligation to pay any Special
Interest pursuant to (b), the Company may suspend the use or effectiveness
of the Registration Statement, or delay the Filing Date, for up to thirty (30)
consecutive days and up to ninety (90) days in the aggregate, in any 365-day
period (a “Suspension Period”) if the Board of Directors of the Company
determines that there is a valid business purpose for extension, which valid
business purpose shall include without limitation plans for a registered public
offering, an acquisition or other proposed or pending corporate developments
and similar events (it being agreed that the notice of the Extension Period
need not state the reason therefor); provided that (1) a Suspension
Period shall not prevent the Holders from requesting any Demand Registration

 

8

 

or electing to participate in any Piggyback
Registration under Section 3, (2) a Suspension Period shall
not apply to Holders in any Piggyback Registration to the extent the Company
has waived the Suspension Period with respect to any registered offering of
Other Securities for its own account or for the account of any other Person,
which offering gives rise to such Piggyback Registration and (3) a
Suspension Period may not be in effect, and may not commence, at any time
during the period from and after the date that the Convertible Notes are
redeemed pursuant to Section 4 of the Convertible Note Agreement through
5:00 p.m. New York City time on the date that is ten (10) consecutive
Trading Days after the date of such redemption. 
In the event the Company exercises its rights under the preceding
sentence, the Holders agree to suspend, immediately upon their receipt of the
notice referred to above, their use of the Prospectus relating to such
Registration Statement in connection with any sale or offer to sell Registrable
Securities and not to sell any Registrable Securities pursuant thereto until
such Holder has been advised in writing by the Company that the applicable
Prospectus may be used or is effective (which notice the Company agrees to
provide promptly following the lapse of the event or circumstance giving rise
to such suspension).  Each Holder shall
keep confidential the fact of the delivery of the extension notice except as
required by applicable Law.  If the
Company delays any Filing Date pursuant to a Suspension Period, then the
Demanding Holder may withdraw the Demand Registration at any time prior to the
filing of the Registration Statement by providing written notice to the
Company.

 

(b)           If, with
respect to any Registration Statement required by this Section 2:
(i) such Registration Statement is not filed on or prior to its Filing
Date, (ii) such Registration Statement is not declared effective by the
Commission or does not otherwise become effective on or prior to its required
Effectiveness Date, (iii) the Company fails to file with the Commission a
request for acceleration with Rule 461 promulgated under the Securities
Act, within five (5) Trading Days of the date on which the Company is
notified (orally or in writing, whichever is earlier) by the Commission that
such Registration Statement will not be reviewed or is not subject to further
review, or (iv) after its Effective Date, such Registration Statement
ceases for any reason to be effective and available to the Holders as to all
Registrable Securities to which it is required to cover at any time prior to
the expiration of the Effectiveness Period (in each case, except as
specifically permitted herein with respect to any applicable Suspension Period
and subject to Section 2(d)) (any such failure or breach being
referred to as a “Registration Default,” and for purposes of
clauses (i) or (ii) the date on which such Registration Default
occurs, and for purposes of clause (iii) the date on which such five (5) Trading
Day period is exceeded and for purposes of clause (iv) the date on
which the Registration Statement ceases to be effective and available, being
referred to as the “Registration Default Date” and each period from and
including the Registration Default Date during which a Registration Default has
occurred and is continuing, a “Registration Default Period”), then,
during the Registration Default Period, in addition to any other rights
available to the Holders (including, without limitation, pursuant to Section 8(a)),
the Company will pay a special payment (collectively, “Special Interest”)
to Holders (x) in respect of each Convertible Note convertible into
Conversion Shares that, when issued, will constitute Registrable Securities
(which, for the avoidance of doubt, shall be deemed to constitute Registrable
Securities to the extent such Holder reasonably determines that it is, or upon
conversion of such Convertible Notes would reasonably be expected to become, an
affiliate (as defined under Rule 144) of the Company), in an amount equal
to one percent (1.0%) per annum of the principal amount of such Convertible
Note and, without duplication, (y) in respect of each Conversion Share
issued upon conversion of the Convertible Notes and that is a

 

9

 

Registrable Security, in an amount equal to one
percent (1.0%) per annum of the quotient of one thousand dollars ($1,000)
divided by the number of Conversion Shares issued upon conversion of such
Convertible Notes; provided that (A) no Special Interest shall
accrue or be payable in respect of the Investor Shares and (B) the
obligation to pay Special Interest in respect of a Demand Registration may be
waived with respect to all Registrable Securities covered thereby in the sole
discretion of the applicable Demanding Holder. 
Special Interest shall accrue from the applicable Registration Default
Date until all Registration Defaults have been cured and shall be payable
quarterly in arrears on each January 1, April 1, July 1 and October 1
following the applicable Registration Default Date to the record holder of the
applicable security on the date that is fifteen (15) days prior to such payment
date, until paid in full.  Special
Interest payable in respect of any Registration Default Period shall be
computed on the basis of a 360-day year consisting of twelve (12) thirty
(30)-day months.  Special Interest shall
be payable only with respect to a single Registration Default at any given
time, notwithstanding the fact that multiple Registration Defaults may have
occurred and be continuing.

 

(c)           The Company
shall not be required to effect a Demand Registration of Registrable Securities
pursuant to this Section 2 (x) at the request of Bounty if the
Company has effected a total of two (2) Demand Registrations at the
request of Bounty, or (y) at the request of CIFC Parent if the Company has
effected a total of two (2) Demand Registrations at the request of CIFC
Parent, in each case in accordance with the terms of this Section 2,
and each Registration Statement filed upon such Demand Registration was
declared or ordered effective by the Commission and was maintained effective by
the Company throughout the Effectiveness Period as required by Section 2(a);
provided  further that, for the avoidance of doubt, any Demand
Registration that is delayed or interrupted due to a Suspension Period, for
which demand has been withdrawn in accordance with Section 2(a), or
otherwise not maintained available to the Demanding Holder and Electing Holders
(subject to Section 2(d)) at all times through the Effectiveness Period
shall not constitute one (1) of the Demand Registrations to which such
Demanding Holder is enititled under this Section 2(c).

 

(d)           If the Demand
Registration is an underwritten offering and if the managing underwriter or
underwriters for a Demand Registration that is to be an underwritten offering
advises the Company and the Demanding Holder in writing that it is their good
faith opinion that the total amount of Registrable Securities which the
Demanding Holder desires to sell, taken together with all shares of Common
Stock or other equity securities of the Company (such Common Stock and other
equity securities (other than Registrable Securities) collectively, “Other
Securities”), which the Company and any other Persons having rights to
participate in such registration intend to include in such offering, exceeds
the total number or aggregate dollar amount of such securities that can be sold
without having an adverse effect on the price, timing, distribution method or
successful offering of the Registrable Securities to be so included together
with all Other Securities, then there shall be included in such firm commitment
underwritten offering the number or dollar amount of Registrable Securities and
such Other Securities that in the good faith opinion of such managing
underwriter or underwriters can be sold without so adversely affecting such
offering, and such number of Registrable Securities and Other Securities shall
be allocated for inclusion as follows: (i) first, all Registrable
Securities being sold by the Demanding Holder and Electing Holders, pro rata,
based on the number of Registrable Securities that each such Holder has
requested be included in such Demand Registration; (ii) second, all Other
Securities being sold by the Company; and (iii) third, all

 

10

 

Other Securities of any holders thereof requesting inclusion in such Demand Registration, pro rata, based on the number of Other Securities that each such Person has requested be included in such Demand Registration.

 

(e)           Notwithstanding anything to the contrary herein, in no event shall the Company be required to file or cause to be declared effective a Registration Statement providing for the resale of Registrable Securities on a delayed or continuous basis pursuant to Rule 415 or otherwise for a period longer than thirty (30) days.

 

Section 3.              Piggyback Rights on Company or Third Party Registrations.

 

(a)           Subject to the terms and conditions of this Agreement, if at any time after the date hereof, the Company files a registration statement under the Securities Act with respect to an offering of Other Securities, whether or not for sale for its own account (other than a registration statement (i) on Form S-4, Form S-8 or any successor forms, (ii) filed solely in connection with any employee benefit or dividend reinvestment plan or (iii) filed pursuant to a Demand Registration in accordance with Section 2), then the Company shall use commercially reasonably efforts to give written notice of such filing to the Holders at least ten (10) Business Days before the anticipated filing date (or such later date as it becomes commercially reasonable to provide such notice) (the “Piggyback Notice”).  The Piggyback Notice and the contents thereof shall be kept confidential by the Holders and their respective Affiliates and representatives, and the Holders shall be responsible for breaches of confidentiality by their respective Affiliates and representatives.  The Piggyback Notice shall offer the Holders the opportunity to include in such registration statement, subject to the terms and conditions of this Agreement, the number of Registrable Securities as they may reasonably request (a “Piggyback Registration”).  Subject to the terms and conditions of this Agreement, the Company shall use its commercially reasonable efforts to include in each such Piggyback Registration all Registrable Securities with respect to which the Company has received from the Holders written requests for inclusion therein within ten (10) Business Days following receipt of any Piggyback Notice by the Holders, which request shall specify the maximum number of Registrable Securities intended to be disposed of by such Electing Holders and the intended method of distribution.  For the avoidance of doubt and notwithstanding anything in this Agreement to the contrary, the Company may not commence or permit the commencement of any sale of Other Securities for its own account or the account of another Person that is not a Holder in a public offering to which this Section 3 applies unless the Holders shall have received the Piggyback Notice in respect to such public offering not less than ten (10) Business Days prior to the commencement of such sale of Other Securities. The Electing Holders shall be permitted to withdraw all or part of the Registrable Securities from a Piggyback Registration at any time at least two (2) Business Days prior to the effective date of the registration statement relating to such Piggyback Registration. No Piggyback Registration shall count towards the number of demand registrations that any Holder is entitled to make pursuant to Section 2.

 

(b)           If any Other Securities Registered in accordance with the procedures set forth in Section 3(a) are to be sold in an underwritten offering, (1) the Company or other Persons designated by the Company shall have the right to appoint the book-running, managing and other underwriter(s) for such offering in their discretion and (2) the Electing Holders shall be permitted to include all Registrable Securities requested to be included in such registration in such 

 

11

 

underwritten offering on the same terms and conditions as such Other Securities proposed by the Company or any third party to be included in such offering; provided, however, that if such offering involves an underwritten offering and the managing underwriter or underwriters of such underwritten offering advise the Company in writing that it is their good faith opinion that the total amount of Registrable Securities requested to be so included, together with all Other Securities that the Company and any other Persons having rights to participate in such registration intend to include in such offering, exceeds the total number or dollar amount of such securities that can be sold without having an adverse effect on the price, the timing or the method of distribution of the Registrable Securities to be so included together with all Other Securities, then there shall be included in such firm commitment underwritten offering the number or dollar amount of Registrable Securities and such Other Securities that in the good faith opinion of such managing underwriter or underwriters can be sold without so adversely affecting such offering, and such number of Registrable Securities and Other Securities shall be allocated for inclusion as follows: (x) to the extent such public offering is the result of a registration initiated by the Company, (i) first, all Other Securities being sold by the Company, (ii) second, the Registrable Securities as to which Registration has been requested by the Electing Holders, pro rata, based on the number of Registrable Securities beneficially owned by the Electing Holders, and (iii) third, all Other Securities of any holders thereof (other than the Company and the Electing Holders) requesting inclusion in such registration, pro rata, based on the number of Other Securities beneficially owned by each such holder of Other Securities or (y) to the extent such public offering is the result of a registration by any Persons (other than the Company or the Holders) exercising a contractual right to demand registration not included in this Agreement, (i) first, all Other Securities owned by such Persons exercising the contractual right, pro rata, based on the number of Other Securities beneficially owned by each such holder of Other Securities, (ii) second, the Registrable Securities as to which Registration has been requested by the Electing Holders, pro rata, based on the number of Registrable Securities beneficially owned by such Electing Holders, (iii) third, all Other Securities being sold by the Company, and (iv) fourth, all Other Securities requested to be included in such registration by other holders thereof (other than the Company and the Holders), pro rata, based on the number of Other Securities beneficially owned by each such holder of Other Securities.

 

Section 4.              Registration Procedures.  The procedures to be followed by the Company and each selling Holder, and the respective rights and obligations of the Company and such Holders, with respect to the preparation, filing and effectiveness of a Registration Statement, and the distribution of Registrable Securities pursuant thereto, are as follows:

 

(a)           The Company will, as promptly as practicable prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto, (i) furnish to the Holders copies of all such documents proposed to be filed, which documents (other than those incorporated by reference) will be subject to the reasonable review of such Holders and (ii) use its reasonable efforts to address in each such document when so filed with the Commission such comments as the Holders reasonably shall propose.

 

(b)           The Company will use commercially reasonable efforts to: (i)  prepare and file with the Commission such amendments, including post-effective amendments, and supplements to each Registration Statement and the Prospectus used in connection therewith as may be necessary under applicable Law with respect to the disposition of all Registrable 

 

12

 

Securities covered by such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; and (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to the Holders as “selling stockholders” but not any comments that would result in the disclosure to the Holders of material and non-public information concerning the Company.

 

(c)           The Company will comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration Statements and the disposition of all Registrable Securities covered by each Registration Statement.

 

(d)           The Company will notify the Holders as promptly as reasonably practicable (and, in the case of (i)(A) below, not less than three (3) Trading Days prior to such filing) and (if requested by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day: (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement (in which case the Company shall provide true and complete copies thereof and all written responses thereto to each of the Holders that pertain to the Holders as “selling stockholders” or to the Plan of Distribution, but not information which the Company believes would constitute material and non-public information); and (C) with respect to each Registration Statement or any post-effective amendment, when the same has been declared effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional information that pertains to the Holders as “selling stockholders” or the Plan of Distribution; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of (but not the nature or details concerning) any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

13

 

(e)           The Company will use commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment, or if any such order or suspension is made effective during any Suspension Period, as soon as reasonably practicable after the Suspension Period is over.

 

(f)            During the Effectiveness Period, the Company will furnish to each Holder, without charge, at least one (1) conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Person (including those incorporated by reference) promptly after the filing of such documents with the Commission.

 

(g)           The Company will promptly deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request during the Effectiveness Period.  The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

 

(h)           The Company will, prior to any public offering of Registrable Securities, use commercially reasonable efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the applicable state securities or Blue Sky Laws of those jurisdictions within the United States as any Holder reasonably requests in writing to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statements; provided, that the Company will not be required to (i) qualify generally to do business or as a dealer in securities in any jurisdiction where it is not then so qualified or (ii) take any action which would subject the Company to general service of process or any material tax in any such jurisdiction where it is not then so subject.

 

(i)            The Company will cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statements, which certificates shall be free, to the extent permitted by the Merger Agreement, the Acquisition Agreement and the Convertible Note Agreement and/or the Convertible Notes, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request.  In connection therewith, if required by the Company’s transfer agent, the Company will promptly after the effectiveness of the Registration Statement cause an opinion of counsel as to the effectiveness of the Registration Statement to be delivered to and maintained with its transfer agent, together with any other authorizations, certificates and directions required by the transfer agent which authorize and direct the transfer agent to issue such Registrable Securities without legend upon sale by the holder of such shares of Registrable Securities under the Registration Statement.

 

14

 

(j)            Upon the occurrence of any event contemplated by Section 4(d)(v), as promptly as reasonably possible, the Company will prepare a supplement or amendment, including a post-effective amendment, if required by applicable Law, to the affected Registration Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(k)           In connection with filing any Registration Statement, the Company may require each Holder that wishes to include Registrable Securities in such Registration Statement to furnish to the Company a certified statement as to the securities of the Company (including shares of Common Stock issuable upon conversion of Convertible Notes) beneficially owned by such Holder and any Affiliate thereof substantially in the form of Exhibit A hereto (the “Questionnaire”) for use in connection with the Registration Statement at least ten (10) Trading Days prior to the filing of the Registration Statement.  Each Holder further agrees that it shall not be entitled to be named as a selling securityholder in a Registration Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has returned to the Company a completed and signed Questionnaire.  Each Holder acknowledges and agrees that the information in the Questionnaire will be used by the Company in the preparation of the Registration Statement and hereby consents to the inclusion of such information in the Registration Statement.  The Company agrees to periodically update the Prospectus upon request to add any Holders who have delivered a Questionnaire since initial filing or the last such update as selling securityholders in the Prospectus.

 

(l)            The Holders may distribute the Registrable Securities by means of an underwritten offering; provided that (i) the Demanding Holder provides written notice to the Company of its intention to distribute Registrable Securities by means of an underwritten offering, (ii) the managing underwriter or underwriters thereof shall be designated by the Demanding Holder (provided, however, that such designated managing underwriter or underwriters shall be reasonably acceptable to the Company), (iii) each Holder participating in such underwritten offering agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the persons entitled selecting the managing underwriter or underwriters hereunder and (iv) each Holder participating in such underwritten offering completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.  The Company hereby agrees with each Holder that, in connection with any underwritten offering in accordance with the terms hereof, it will negotiate in good faith and execute all indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements, including using all commercially reasonable efforts to procure customary legal opinions and auditor “comfort” letters.

 

(m)          In the event the Holders seek to complete an underwritten offering, for a reasonable period prior to the filing of any Registration Statement, and throughout the Effectiveness Period, the Company will make available upon reasonable notice at the Company’s principal place of business or such other reasonable place for inspection by the managing underwriter or underwriters selected in accordance with Section 4(l), such financial and other 

 

15

 

information and books and records of the Company, and cause the officers, employees, counsel and independent certified public accountants of the Company to respond to such inquiries, as shall be reasonably necessary (and in the case of counsel, not violate an attorney-client privilege in such counsel’s reasonable belief) in the judgment of legal counsel for such managing underwriter or underwriters, to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that the foregoing inspection and information gathering on behalf of the Holders (and any managing underwriter or underwriters) shall be conducted by legal counsel to the Holders (and legal counsel to such managing underwriter or underwriters); and provided  further that each such party shall be required to maintain in confidence and not to disclose to any other Person any information or records reasonably designated by the Company as being confidential, until such time as (A) such information becomes a matter of public record (whether by virtue of its inclusion in the Registration Statement or in any other manner other than through the release of such information by any Person afforded access to such information pursuant hereto), or (B) such Person shall be required so to disclose such information pursuant to a subpoena or order of any court or other governmental agency or body having jurisdiction over the matter (subject to the requirements of such order, and only after such Person shall have given the Company prompt prior written notice of such requirement so that the Company may seek to object to such subpoena or order, or to make such disclosure subject to a protective order or confidentiality agreement).

 

(n)           Bounty hereby acknowledges the restrictions on the transfer of the Bounty Shares, the Convertible Notes and the Conversion Shares as set forth in the Acquisition Agreement, the Stockholders Agreement and/or the Convertible Note Agreement, and expressly acknowledges and agrees that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the Acquisition Agreement, the Stockholders Agreement or the Convertible Note Agreement, as applicable.  CIFC Parent hereby acknowledges the restrictions on the transfer of the CIFC Shares as set forth in the Merger Agreement and the Stockholders Agreement, and expressly acknowledges and agrees that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the Merger Agreement or the Stockholders Agreement.

 

Section 5.              Registration Expenses.  All fees and expenses incident to the Company’s performance of or compliance with its obligations under this Agreement (excluding any underwriting discounts and selling commissions, but including all legal fees and expenses of one (1) legal counsel to the Holders) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the Trading Market, and (B) in compliance with applicable state securities or Blue Sky Laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement.  In addition, the 

 

16

 

Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.  For the avoidance of doubt, each Holder shall pay all underwriting and placement discounts and commissions, agency and placement fees, brokers’ commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities.  In addition to the foregoing, the Company shall pay the reasonable legal fees and expenses of the single counsel to the Holders in connection with the Registration Statement (not to exceed $50,000 in the aggregate); provided, however, if the Holders reasonably determine that local counsel is required in connection with the Registration Statement, then the Company shall be obligated to pay such reasonable legal fees and expense as well (not to exceed $15,000 in the aggregate).

 

Section 6.              Indemnification.

 

(a)           Indemnification by the Company.  The Company will, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, agents, partners, members, stockholders and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable Law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus (including, without limitation, any “issuer free writing prospectus” as defined in Rule 433) or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus (including, without limitation, any “issuer free writing prospectus” as defined in Rule 433) or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements, alleged untrue statements, omissions or alleged omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Person expressly for use therein pursuant to Section 4(k).  The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

 

(b)           Indemnification by Holders.  Each Holder shall, notwithstanding any termination of this Agreement, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable Law, from and against all Losses, as incurred, arising solely out of or based solely upon any untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus (including, without limitation, any “issuer free writing prospectus” as defined in Rule 433), or in any amendment or supplement thereto, or 

 

17

 

arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, or any form of prospectus (including, without limitation, any “issuer free writing prospectus” as defined in Rule 433) or supplement thereto, in light of the circumstances under which they were made) not misleading to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder in the Questionnaire or otherwise expressly for use therein.  In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

 

(c)           Conduct of Indemnification Proceedings.  If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall be permitted to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

 

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld, conditioned or delayed.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject to the terms and conditions of this Agreement, all fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection 

 

18

 

with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, promptly upon receipt of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided that the Indemnified Party shall promptly reimburse the Indemnifying Party for all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

 

(d)           Contribution.  If a claim for indemnification under Section 6(a)or Section 6(b) is unavailable to an Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.  The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 6(c), any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

 

The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this Section 6(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties and are not in diminution or limitation of the indemnification provisions under the Acquisition Agreement or Merger Agreement, as applicable.

 

Section 7.              Facilitation of Sales Pursuant to Rule 144.  To the extent it shall be required to do so under the Exchange Act, the Company shall timely file the reports required to be filed by it under the Exchange Act or the Securities Act (including the reports under 

 

19

 

Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144), and shall take such further action as any Holder may reasonably request, all to the extent required from time to time to enable the Holders to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144.  Upon the request of any Holder in connection with that Holder’s sale pursuant to Rule 144, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements.

 

Section 8.              Miscellaneous.

 

(a)           Termination.  The rights granted under this Agreement shall automatically terminate upon the earlier of (i) such time as there are no outstanding Registrable Securities and (ii) the date and time at which all of the Registrable Securities are Freely Tradable.

 

(b)           Specific Performance.  The Company and each Holder acknowledge that each party would not have an adequate remedy at law for money damages in the event that any of the covenants hereunder have not been performed in accordance with their terms, and therefore agree that each other party hereto shall be entitled to specific enforcement of the terms hereof and any other equitable remedy to which such party may be entitled.  Each of the parties hereby waives (i) any defenses in any action for specific performance, including the defense that a remedy at law would be adequate and (ii) any requirement under any Law to post a bond or other security as a prerequisite to obtaining equitable relief.

 

(c)           Compliance.  Subject to the Company’s compliance with its obligations set forth under Section 4, each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to the Registration Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in the Registration Statement.

 

(d)           Discontinued Disposition.  Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 4(d), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.  The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

 

(e)           Amendments and Waivers.  This Agreement may not be amended, altered or modified and no provision of this Agreement may be waived or amended except by written instrument executed by a Super Majority Interest and the Company; provided that any requirement hereunder in respect of a Demand Registration (including any obligation to pay Special Interest in respect thereof) may be waived or modified with respect to all Registrable Securities covered thereby in a written instrument signed by the Company and the applicable

 

20

 

Demanding Holder. The failure by any party hereto to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision nor in any way to affect the validity of this Agreement or any part hereof or the right of such party thereafter to enforce each and every such provision.  No waiver of any breach of or non-compliance with this Agreement shall be held to be a waiver of any other or subsequent breach or non-compliance. Any waiver made by any party hereto in connection with this Agreement shall not be valid unless agreed to in writing by such party.

 

(f)            Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective (a) on the first (1st) Business Day after being sent, prepaid, by nationally recognized overnight courier that issues a receipt or other confirmation of delivery, (b) upon machine generated acknowledgement of receipt after transmittal by facsimile if so acknowledged to have been received before 5:00 p.m. on a Business Day at the location of receipt and otherwise on the next following Business Day or (c) when sent, if sent by electronic mail before 5:00 p.m. on a Business Day at the location of receipt and otherwise the next following Business Day.  Any party may change the address to which Notices under this Agreement are to be sent to it by giving written notice of a change of address in the manner provided in this Agreement for giving Notice.  The address for such notices and communications shall be as follows:

 

	
If to the Company:
  	
 
  	
Deerfield Capital Corp.
 6250 North River Road
 Rosemont, Illinois 60018
 Attention: Robert Contreras
 Facsimile: (773) 380-1695
 Email: rcontreras@DeerfieldCapital.com
  
	
 
  	
 
  	
 
  
	
With a copy to:
  	
 
  	
Weil, Gotshal & Manges LLP
 767 Fifth Avenue
 New York, NY 10153
 Attention: Simeon Gold, Esq.
 Facsimile: (212) 310-8007
 E-mail: simeon.gold@weil.com
  
	
 
  	
 
  	
 
  
	
If to Bounty:
  	
 
  	
Bounty Investments, LLC
 c/o Columbus Nova
 900 Third Avenue, 19th Floor
 New York, NY 10022
 Attention: Paul Lipari
 Facsimile: (212) 308-6623
 Email: plipari@columbusnova.com
  

 

21

 

	
With a copy to:
  	
 
  	
Latham & Watkins LLP
 885 Third Avenue
 New York, NY 10022
 Attention: James C. Gorton, Esq.
 Facsimile: (212) 751-4864
 E-mail Address: james.gorton@lw.com
  
	
 
  	
 
  	
 
  
	
If to CIFC Parent:
  	
 
  	
CIFC Parent Holdings LLC
 250 Park Avenue, 5th Floor
 New York, NY 10177
 Attention: Peter Gleysteen
 Facsimile: (212) 624-1199
 E-mail: pgleysteen@cifc.com
  
	
 
  	
 
  	
 
  
	
With a copy to:
  	
 
  	
Goodwin Procter LLP
 135 Commonwealth Drive
 Menlo Park, CA 94025
 Attention: Kevin M. Dennis, Esq. 
 Facsimile: (650) 853-1038
 E-mail: kdennis@goodwinprocter.com
  
	
 
  	
 
  	
 
  
	
If to any other Person who is then the registered Holder:
  	
 
  	
To the address of such Holder as it appears in the applicable register for the Registrable Securities, or after delivery of a Questionnaire by such Holder, as provided in such Questionnaire or such other address as may be designated in writing hereafter, in the same manner, by such Person.
  
	
 
  	
 
  	
 
  

 

(g)           Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder; provided, however, that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of (i) in the case of Bounty, the Acquisition Agreement, the Stockholders Agreement or the Convertible Note Agreement and (ii) in the case of CIFC Parent, the Merger Agreement or the Stockholders Agreement. The Company may not assign its rights or obligations hereunder without the prior written consent of the other parties hereto (other than by operation of merger).

 

(h)           Execution and Counterparts.  This Agreement may be executed in counterparts (including by facsimile or other electronic transmission), each of which shall be deemed an original and each of which shall constitute one and the same instrument.

 

(i)            Governing Law.  This Agreement shall be governed by and construed in accordance with the Laws of the State of New York without regard to choice of laws or conflicts of laws provisions thereof that would require the application of the laws of any other jurisdiction.

 

22

 

(j)            Consent to Jurisdiction.  Each party to this Agreement, by its execution hereof, (a) hereby irrevocably consents and agrees that any action, suit or proceeding arising in connection with any disagreement, dispute, controversy or claim, in whole or in part, arising out of, related to, based upon or in connection with this Agreement or the subject matter hereof shall be brought only in the courts of the State Courts of the State of New York, New York County or the United States District Court located in the State of New York, New York County, (b) hereby waives to the extent not prohibited by applicable Law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such action brought in one of the above-named courts should be dismissed on grounds of forum non conveniens, should be transferred to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court and (c) hereby agrees not to commence any such action other than before one of the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action to any court other than one of the above-named courts whether on the grounds of forum non conveniens or otherwise. Each party hereby (i) consents to service of process in any such action in any manner permitted by New York law, (ii) agrees that service of process made in accordance with clause (i) or made by registered or certified mail, return receipt requested, at its address specified pursuant to Section 8(f), shall constitute good and valid service of process in any such action, and (iii) waives and agrees not to assert (by way of motion, as a defense, or otherwise) in any such action any claim that service of process made in accordance with clause (i) or (ii) does not constitute good and valid service of process.

 

(k)           Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(l)            Entire Agreement.  This Agreement, including any Schedules, Exhibits, Annexes, certificates and lists referred to herein, any documents executed by the parties simultaneously herewith or pursuant thereto constitute the entire understanding and agreement of the parties hereto with respect to the subject matter hereof  and supersedes all other prior agreements and understandings, written or oral, between the parties with respect to such subject matter (including without limitation, the Original Agreement).  Each of the Company and Bounty hereby agrees, approves and consents, by its signature hereto, that the Original Agreement be, and hereby is, amended and restated in its entirety to read as set forth herein.

 

(m)          Headings; Section References.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. Unless 

 

23

 

otherwise stated, references to Sections, Schedules and Exhibits are to the Sections, Schedules and Exhibits of this Agreement.

 

(n)           Delays or Omissions.  No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement shall impair any such right, power, or remedy of such party, nor shall it be construed to be a waiver of or acquiescence to any breach or default, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default.  All remedies, either under this Agreement or by Law or otherwise afforded to any holder, shall be cumulative and not alternative.

 

(o)           Mutual Drafting; Interpretation.  Each party hereto has participated in the drafting of this Agreement, which each such party acknowledges is the result of extensive negotiations between the parties.  If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision.

 

[THIS SPACE LEFT BLANK INTENTIONALLY]

 

24

 

IN WITNESS WHEREOF, the parties have executed this Amended and Restated Registration Rights Agreement as of the date first written above.

 

 

	
 
  	
COMPANY:
  
	
 
  	
 
  
	
 
  	
DEERFIELD CAPITAL CORP.
  
	
 
  	
 
  
	
 
  	
By:
  	
 
  
	
 
  	
Name:
  	
Jonathan Trutter
  
	
 
  	
Title:
  	
Chief Executive Officer
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
INVESTORS:
  
	
 
  	
 
  
	
 
  	
BOUNTY INVESTMENTS, LLC
  
	
 
  	
 
  
	
 
  	
By:
  	
 
  
	
 
  	
Name:
  	
Andrew Intrater
  
	
 
  	
Title:
  	
Chief Executive Officer
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
CIFC PARENT HOLDINGS LLC
  
	
 
  	
 
  
	
 
  	
By:
  	
 
  
	
 
  	
Name:
  	
Peter Gleysteen
  
	
 
  	
Title:
  	
Chief Executive Officer
  

 

Signature Page to Amended and Restated Registration Rights Agreement

 

 

ANNEX A

 

PLAN OF DISTRIBUTION

 

The holders of Securities (defined below) selling or otherwise disposing of such Securities pursuant hereto (the “Selling Securityholders”) and any of their pledgees, donees, transferees, assignees or other successors-in-interest may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of common stock of the Company or other securities of the Company included for public offering in this prospectus (collectively, “Securities”) or interests in Securities on any stock exchange, market or trading facility on which the Securities are traded or in private transactions.  These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.  The Selling Securityholders may use one or more of the following methods when disposing of the Securities or interests therein:

 

·              ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

·              block trades in which the broker-dealer will attempt to sell the Securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

 

·              purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

·              an exchange distribution in accordance with the rules of the applicable exchange;

 

·              privately negotiated transactions;

 

·              short sales entered into after the effective date of the registration statement of which this prospectus is a part;

 

·              through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

·              broker-dealers may agree with the Selling Securityholders to sell a specified number of such Securities at a stipulated price per share;

 

·              a combination of any such methods of disposition; and

 

·              any other method permitted pursuant to applicable law.

 

The Selling Securityholders may also sell Securities under Rule 144 under the Securities Act, if available, rather than under this prospectus.

 

Broker-dealers engaged by the Selling Securityholders may arrange for other broker-dealers to participate in sales.  Broker-dealers may receive commissions or discounts from the

 

i

 

Selling Securityholders (or, if any broker-dealer acts as agent for the purchaser of  securities, from the purchaser) in amounts to be negotiated.  The Selling Securityholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved.

 

The Selling Securityholders may from time to time pledge or grant a security interest in some or all of the Securities owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell Securities from time to time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 amending the list of Selling Securityholders to include the pledgee, transferee or other successors in interest as Selling Securityholders under this prospectus.

 

Upon the Company being notified in writing by a Selling Securityholder that any material arrangement has been entered into with a broker-dealer for the sale of Securities through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, a supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under the Securities Act, disclosing (i) the name of each such Selling Securityholder and of the participating broker-dealer(s), (ii) the number of Securities involved, (iii) the price at which such Securities were sold, (iv) the commissions paid or discounts or concessions allowed to such broker-dealer(s), where applicable, (v) that such broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus, and (vi) other facts material to the transaction.  In addition, upon the Company being notified in writing by a Selling Securityholder that a donee or pledge intends to sell more than 500 Securities, a supplement to this prospectus will be filed if then required in accordance with applicable securities law.

 

The Selling Securityholders also may transfer the Securities in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

In connection with the sale of Securities or interests in Securities, the Selling Securityholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the Common Stock in the course of hedging the positions they assume.  The Selling Securityholders may also sell Securities of Common Stock short and deliver these securities to close out their short positions, or loan or pledge the Common Stock to broker-dealers that in turn may sell these securities. The Selling Securityholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of Securities offered by this prospectus, which Securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

 

The Selling Securityholders may enter into derivative transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions.  If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell securities covered by this prospectus and the applicable prospectus supplement,

 

A-ii

 

including in short sale transactions.  If so, the third party may use securities pledged by the Selling Securityholders or borrowed from the Selling Securityholders or others to settle those sales or to close out any related open borrowings of stock, and may use securities received from the Selling Securityholders in settlement of those derivatives to close out any related open borrowings of stock. The third party in such sale transactions will be an underwriter and, if not identified in this prospectus, will be identified in the applicable prospectus supplement (or a post-effective amendment).

 

The Company has advised the Selling Securityholders that they are required to comply with Regulation M promulgated under the Securities and Exchange Act during such time as they may be engaged in a distribution of the Securities.  The foregoing may affect the marketability of the Securities.

 

The Company is required to pay all fees and expenses incident to the registration of the Securities.  The Company has agreed to indemnify the Selling Securityholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act or otherwise.

 

A-iii

 

EXHIBIT A

 

FORM OF

 

SELLING SECURITYHOLDER QUESTIONNAIRE

 

Reference is made to that certain Amended and Restated Registration Rights Agreement (the “Registration Rights Agreement”), dated as of [                  ], 2011, by and among Deerfield Capital Corp., (the “Company”), Bounty Investments, LLC (“Bounty”), and CIFC Parent Holdings LLC (“CIFC Parent”).  Capitalized terms used and not defined herein shall have the meanings given to such terms in the Registration Rights Agreement.

 

The undersigned Holder (the “Selling Securityholder”) of the Registrable Securities is providing this Selling Securityholder Questionnaire pursuant to Section 4(k) of the Registration Rights Agreement. The Selling Securityholder, by signing and returning this Selling Securityholder Questionnaire, understands that it will be bound by the terms and conditions of this Selling Securityholder Questionnaire and the Registration Rights Agreement.  The Selling Securityholder hereby acknowledges its indemnity obligations pursuant to Section 6(b) of the Registration Rights Agreement.

 

A-1

 

The Selling Securityholder provides the following information to the Company and represents and warrants that such information is accurate and complete:

 

	
(1)
  	
 
  	
(a)
  	
 
  	
Full Legal Name of Selling Securityholder:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
(b)
  	
 
  	
Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities listed in (3) below are held:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
(c)
  	
 
  	
Full Legal Name of DTC Participant (if applicable and if not the same as (b) above) through which Registrable Securities listed in (3) below are held:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
(2)
  	
 
  	
Address for Notices to Selling Securityholder:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Telephone (including area code):
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
Fax (including area code):
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
Contact Person:
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
(3)
  	
 
  	
Beneficial Ownership of Registrable Securities:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
(a)
  	
 
  	
Type and Principal Amount/Number of Registrable Securities beneficially owned:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
(b)
  	
 
  	
CUSIP No(s). of such Registrable Securities beneficially owned:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
(4)
  	
 
  	
Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder:
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
Except as set forth below in this Item (4), the Selling Securityholder is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities listed above in Item (3).
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
(a)
  	
 
  	
Type and Amount of Other Securities beneficially owned by the Selling Securityholder:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
													

 

A-2

 

	
 
  	
 
  	
(b)
  	
 
  	
CUSIP No(s). of such Other Securities beneficially owned:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
(5)
  	
 
  	
Relationship with the Company:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Except as set forth below, neither the Selling Securityholder nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
State any exceptions here:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
(6)
  	
 
  	
Is the Selling Securityholder a registered broker-dealer?
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Yes
  	
o
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
No
  	
o
  
	
 
  	
 
  
	
 
  	
If “Yes,” please answer subsection (a) and subsection (b):
  
	
 
  	
 
  
	
 
  	
 
  	
(a)  Did the Selling Securityholder acquire the Registrable Securities as compensation for underwriting/broker-dealer activities to the Company?
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
Yes
  	
o
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
No
  	
o
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
(b)  If you answered “No” to question 6(a), please explain your reason for acquiring the Registrable Securities:
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  
	
(7)
  	
Is the Selling Securityholder an affiliate of a registered broker-dealer?
  
	
 
  	
 
  
	
Yes
  	
o
  
	
 
  	
 
  
	
No
  	
o
  
	
 
  	
 
  
	
If “Yes,” please identify the registered broker-dealer(s), describe the nature of the affiliation(s) and answer subsection (a) and subsection (b):
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  	
(a)  Did the Selling Securityholder purchase the Registrable Securities in the ordinary course of business (if no, please explain)?
  
								

 

A-3

 

	
 
  	
 
  	
Yes
  	
o
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
No
  	
o
  
	
 
  	
 
  
	
 
  	
Explain:
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  	
(b)  Did the Selling Securityholder have an agreement or understanding, directly or indirectly, with any person to distribute the Registrable Securities at the same time the Registrable Securities were originally purchased (if yes, please explain)?
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Yes
  	
o
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
No
  	
o
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
Explain:
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  
	
(8)
  	
Is the Selling Securityholder a non-public entity?
  
	
 
  	
 
  	
 
  	
 
  
	
Yes
  	
o
  
	
 
  	
 
  
	
No
  	
o
  
	
 
  	
 
  
	
If “Yes,” please answer subsection (a):
  
	
 
  
	
 
  	
 
  	
(a) Identify the natural person or persons that have voting or investment control over the Registrable Securities that the non-public entity owns:
  
	
 
  	
 
  	
 
  
	
(9)
  	
Plan of Distribution:
  
	
 
  	
 
  
	
The Selling Securityholder (including its donees and pledgees) intends to distribute the Registrable Securities listed above in Item (3) pursuant to the Registration Statement in accordance with the Plan of Distribution attached as Annex A to the Registration Rights Agreement.

 

The Selling Securityholder acknowledges that it understands its obligations to comply with the provisions of the Securities Exchange Act of 1934, as amended, and the rules thereunder relating to stock manipulation, particularly Regulation M thereunder (or any successor rules or regulations), in connection with any offering of Registrable Securities pursuant to the Shelf Registration Agreement.  The Selling Securityholder agrees that neither it nor any person acting on its behalf will engage in any transaction in violation of such provisions.

 

Pursuant to the Registration Rights Agreement, the Company has agreed under certain circumstances to indemnify the Selling Securityholder against certain liabilities.
  

 

A-4

 

	
In the event the Selling Securityholder transfers all or any portion of the Registrable Securities listed in Item (3) above after the date on which such information is provided to the Company other than pursuant to the Registration Statement, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer of its rights and obligations under this Selling Securityholder Questionnaire and the Registration Rights Agreement.

 

In accordance with the Selling Securityholder’s obligation under the Registration Rights Agreement to provide such information as may be required by Law or by the staff of the Commission for inclusion in the Registration Statement, the Selling Securityholder agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at anytime while the Registration Statement remains effective.  All notices to the Selling Securityholder pursuant to the Registration Rights Agreement shall be made in writing, by hand-delivery, first-class mail, or air courier guaranteeing overnight delivery to the address set forth below.

 

By signing below, the Selling Securityholder consents to the disclosure of the information contained herein in its answers to Items (1) through (9) above and the inclusion of such information in the Registration Statement and the related Prospectus.  The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related Prospectus.

 

By signing below, the undersigned agrees that if the Company notifies the undersigned that the Registration Statement is not available pursuant to the terms of the Registration Rights Agreement, the undersigned will suspend use of the Prospectus until notice from the Company that the Prospectus is again available.

 

Once this Selling Securityholder Questionnaire is executed by the undersigned and received by the Company, the terms of this Selling Securityholder Questionnaire, and the representations, warranties and agreements contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives, and assigns of the Company and the undersigned with respect to the Registrable Securities beneficially owned by the undersigned and listed in Item (3) above.  This Selling Securityholder Questionnaire shall be governed by and construed in accordance with the laws of the State of New York without regard to choice of laws or conflicts of laws provisions thereof that would require the application of the laws of any other jurisdiction.
  

 

A-5

 

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Selling Securityholder Questionnaire to be executed and delivered either in person or by its duly authorized agent.

 

	
Dated:
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
Beneficial Owner
  
	
 
  	
 
  	
By:
  	
 
  
	
 
  	
 
  	
Name:
  	
 
  
	
 
  	
 
  	
Title:
  	
 
  

 

 

PLEASE RETURN THE COMPLETED AND EXECUTED

 

SELLING SECURITYHOLDER QUESTIONNAIRE TO THE COMPANY AT:

 

Deerfield Capital Corp.
 6250 North River Road
 Rosemont, Illinois 60018
 Attention:  Robert Contreras
 Facsimile:  (773) 380-1695
 Email: rcontreras@DeerfieldCapital.com

 

A-6Exhibit 10.4

 

MANAGEMENT AGREEMENT

 

THIS MANAGEMENT AGREEMENT (this “Agreement”), dated as of [                  ], 2011, is by and between Deerfield Capital Corp., a Maryland corporation (the “Company”), and CIFC Parent Holdings LLC, a Delaware limited liability company (“CIFC Parent”) (each referred to herein as a “Party” to this Agreement, collectively referred to as the “Parties” to this Agreement, and in the applicable context the Company as “Supplier” and CIFC Parent as “Receiver”).

 

WHEREAS, the Company, Bulls I Acquisition Corporation, a Delaware corporation and wholly-owned subsidiary of the Company (“First MergerSub”), Bulls II Acquisition, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company (“Second MergerSub” and, together with First MergerSub, the “MergerSubs”), CIFC Parent and Commercial Industrial Finance Corp., a Delaware corporation and wholly owned subsidiary of CIFC Parent (“CIFC”), are parties to the Agreement and Plan of Merger, dated as of December 21, 2010 (the “Merger Agreement”);

 

WHEREAS, the execution and delivery of this Agreement is a condition to the obligations of the Company, CIFC Parent and CIFC to consummate the transactions contemplated by the Merger Agreement;

 

WHEREAS, the Parties desire to enter into this Agreement under which Supplier will provide and Receiver shall obtain support and assistance in the form of administrative and support services related to the business and operations of CIFC Parent from and after the Closing (as defined in the Merger Agreement);

 

WHEREAS, Supplier and Receiver desire to set forth and confirm their rights and obligations in respect of the business arrangements described herein; and

 

NOW, THEREFORE, in consideration of the premises, and other good and valuable consideration to be received, Supplier and Receiver agree as follows:

 

ARTICLE I

 

AGREEMENT, TERM, LIMITATIONS AND DEFINITIONS

 

Section 1.1            Agreement.  During the term of this Agreement, in accordance with the Company’s existing practice and course of dealing, Supplier shall supply to Receiver, and Receiver shall purchase or receive from Supplier, the administrative and support services set forth on Schedule A hereto (the “Services”) on a continuing basis without Receiver’s express request, except as otherwise specified herein, all upon and subject to the terms and conditions specified in this Agreement.  To the extent that Receiver requests, and Supplier agrees to perform, any Services other than those described on Schedule A on the date hereof, Schedule A shall be amended to include such additional Services.

 

Section 1.2            Term.  The term of this Agreement shall commence on the Effective Date and shall continue in effect until terminated in accordance with this Agreement.

 

 

Section 1.3            Definitions.  The following definitions shall apply to this Agreement:

 

(a)           “Business Day” means a day other than Saturday, Sunday or any other day on which banks located in New York, New York are authorized or obligated by law to close.

 

(b)           “Effective Date” shall mean the date hereof.

 

(c)           “Damages” means any and all claims, injuries, lawsuits, liabilities, losses, damages, judgments, fines, penalties, deficiencies, costs and expenses, including the reasonable fees and disbursements of counsel and experts (including reasonable fees of attorneys and paralegals, whether at the pre-trial, trial, or appellate level, or in arbitration) and all amounts reasonably paid in investigation, defense, or settlement of any of the foregoing.

 

(d)           “Governmental Authority” means any foreign, federal, state or local governmental, judicial, legislative, regulatory or administrative agency, commission or authority, and any court, tribunal or arbitrator(s) of competent jurisdiction, including Self-Regulatory Organizations.

 

(e)           “Person” means any individual, corporation, partnership, limited liability company, limited liability partnership, firm, joint venture, association, joint-stock company, trust, unincorporated organization, Governmental Authority or other entity.

 

(f)            “Receiver” shall mean CIFC Parent.

 

(g)           “Supplier” shall mean the Company.

 

(h)           “Self-Regulatory Organization” means each national securities exchange in the United States of America or other commission, board, agency or body that is charged with the supervision or regulation of brokers, dealers, securities underwriting or trading, stock exchanges, commodities exchanges, insurance companies or agents, investment companies or investment advisers, or to the jurisdiction of which any Party or any of their respective Subsidiaries is otherwise subject.

 

ARTICLE II

 

WARRANTIES AND LIABILITIES

 

Section 2.1            Warranty.  Supplier shall use reasonable care in providing Services.  EXCEPT AS SPECIFICALLY STATED IN THIS AGREEMENT OR OTHERWISE AGREED IN WRITING, SUPPLIER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING ANY MATTER, INCLUDING THE MERCHANTABILITY, SUITABILITY, ORIGINALITY, FITNESS FOR A PARTICULAR USE OR PURPOSE, OR RESULTS TO BE DERIVED FROM THE USE OF ANY SERVICE PROVIDED UNDER THIS AGREEMENT.

 

Section 2.2            Limitation of Liability.  If any Party shall be liable to the other for any matter relating to or arising in connection with this Agreement, whether based on an action or claim in contract, equity, negligence, intended conduct, tort or otherwise, in no event shall the

 

2

 

measure of damages include, nor shall any Party be liable for, any amounts for loss of income, profit or savings or indirect, incidental, consequential, or punitive damages of any Party or any third parties.

 

ARTICLE III

 

PAYMENTS TO SUPPLIER

 

Section 3.1            Compensation.  An annual management fee (the “Management Fee”) equal to (a) $50,000 plus (b) $15,000 for each issuer of collateralized loan obligations (a “CLO Issuer”) in which Receiver holds securities during such annual period (and pro rated to the extent securities in such CLO Issuer are held by Receiver for any portion of the applicable annual period) shall be paid in four (4) installments each fiscal year, payable in advance on each of March 1, June 1, September 1, and December 1 of each such fiscal year during the term of this Agreement, with each such installment pro rated on a per diem basis for the number of calendar days in the period relating to such installment (i.e., that portion of the Management Fee payable on March 1 of each fiscal year shall relate to the period beginning on March 1 and ending on May 31 of each fiscal year, and that portion of the management fee payable on December 1 of each fiscal year shall relate to the period beginning on December 1 and ending on February 28 (or February 29) of the following fiscal year).  On the date hereof, Receiver shall pay to Supplier the pro rated portion of the Management Fee for the period beginning on the Closing Date (as defined in the Merger Agreement) and ending on the last day of the calendar quarter that includes the Closing Date.

 

Section 3.2            Expenses.  Receiver shall reimburse Supplier, quarterly in arrears, for the reasonable and documented out-of-pocket expenses incurred by Supplier during the term of this Agreement in connection with the performance by Supplier of the Services; provided, that no single expense shall exceed $5,000 and such expenses shall not in the aggregate exceed $10,000 in any year without the prior written authorization of Receiver.  Supplier will deliver an invoice to Receiver for such expenses promptly following the completion of each quarter and Receiver shall pay such invoices within thirty (30) days after receipt of such invoice.

 

Section 3.3            Taxes.  If Receiver is required by law to make any deduction or withholding of taxes imposed by the laws of any jurisdiction upon Supplier or upon the payments to be made by Receiver in connection with the provision of Services, Receiver shall promptly effect payment thereof to the relevant tax authorities, and also shall promptly provide Supplier with official tax receipts or other evidence issued by the applicable tax authorities sufficient to establish that the taxes have been paid.  Where Receiver is required by law to withhold or deduct taxes, Receiver shall only be required to remit an amount net of any such withholding or deductions to Supplier.

 

ARTICLE IV

 

TERMINATION

 

Section 4.1            Termination by Mutual Consent.  This Agreement may be terminated upon mutual written consent of the parties as of a date specified in such written consent.

 

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Section 4.2            Termination of Agreement for Convenience.  Receiver may terminate this Agreement upon thirty (30) days prior written notice to Supplier.  Supplier may terminate this agreement on or after May 31, 2012 upon one hundred eighty (180) days prior written notice to Receiver.

 

Section 4.3            Termination for Cause.  Except as provided by Section 4.5, if any Party materially or repeatedly defaults in the performance of any of its duties or obligations set forth in this Agreement, and such default is not substantially cured within sixty (60) days after written notice is given to the defaulting Party specifying the default, then the Party not in default may, by giving written notice thereof to the defaulting Party, terminate the provision of the Services relating to such default by that Party as of a date specified in such notice of termination.

 

Section 4.4            Termination for Insolvency or Bankruptcy.  Such termination provided in Section 4.3 may be made by giving written notice to the affected Party in the event of: (i) the liquidation or insolvency of the affected Party; (ii) the appointment of a receiver or similar officer for the affected Party; (iii) an assignment by the affected Party for the benefit of all or substantially all of its creditors; (iv) entry by the affected Party into an agreement for the composition, extension, or readjustment of all or substantially all of its obligations; or (v) the filing of a meritorious petition in bankruptcy by or against the affected Party under any bankruptcy or debtors’ law for its relief or reorganization.

 

Section 4.5            Termination for Non-Payment.  Supplier may terminate the provision of a Service if Receiver fails to pay when due any undisputed amounts due and such failure continues for a period of sixty (60) days after the last day payment is due, so long as Supplier gives Receiver written notice of the expiration date of the aforementioned sixty (60) day period at least thirty (30) days before such expiration date.

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.1            Headings.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section 5.2            Relationship of Parties.  Supplier, in furnishing Services to Receiver hereunder, is acting only as an independent contractor and neither Supplier nor any of its employees shall be deemed or construed to be an employee, agent or legal representative of Receiver for any purpose whatsoever.  Nothing set forth in this Agreement shall be construed to create the relationship of principal and agent between Supplier and Receiver.  No Party shall act or attempt to act or represent itself, directly or by implication, as an agent of another Party or in any manner assume or create, or attempt to assume or create, an obligation on behalf of or in the name of, another Party.  Unless provided otherwise in this Agreement or separately in writing, Supplier, through either its employees or agents, shall not be construed as possessing the power to legally bind Receiver (contractually or otherwise) and Supplier’s employees and agents shall not have the power to execute or sign any legally binding agreement on behalf of Receiver.  This Agreement shall not be construed to create a partnership or joint venture between Supplier, Receiver, or the other Parties.

 

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Section 5.3            Further Acts.  Each Party shall do, or cause to be done, all such further acts and shall execute, acknowledge and deliver, or cause to be executed, acknowledged or delivered, any and all further documentation which the applicable Party may reasonably require in connection with the provision of the Services.

 

Section 5.4            Notices.  All notices, demands and other communications pertaining to this Agreement (“Notices”) shall be in writing and addressed as follows:

 

If to the Company:

 

Deerfield Capital Corp.
  6250 North River Road

Rosemont, IL 60018 
 Attention:  Robert Contreras

Facsimile:  (773) 380-1695

Email: rcontreras@DeerfieldCapital.com

 

with copies to:

 

Weil, Gotshal & Manges LLP
 767 Fifth Avenue
 New York, NY 10153 
 Attention:  Simeon Gold, Esq.
 Facsimile:  (212) 310-8007
 E-mail:  simeon.gold@weil.com

 

If to CIFC Parent:

 

c/o CIFC Parent Holdings, LLC
 250 Park Avenue, 5th Floor 
 New York, NY 10177
 Attention:  Peter Gleysteen
 Facsimile:  (212) 624-1199
 E-mail:  pgleysteen@cifc.com

 

with copies to:

 

Goodwin Procter LLP
 135 Commonwealth Drive
 Menlo Park, CA 94025
 Attention:  Kevin M. Dennis, Esq. 
 Facsimile:  (650) 853-1038
 E-mail:  kdennis@goodwinprocter.com

 

Notices shall be deemed given (a) on the first (1st) Business Day after being sent, prepaid, by nationally recognized overnight courier that issues a receipt or other confirmation of delivery, (b) upon machine generated acknowledgement of receipt after transmittal by facsimile if so acknowledged to have been received before 5:00 p.m. on a Business Day at the location of

 

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receipt and otherwise on the next following Business Day or (c) when sent, if sent by electronic mail before 5:00 p.m. on a Business Day at the location of receipt and otherwise the next following Business Day.  Any Party may change the address to which Notices under this Agreement are to be sent to it by giving written notice of a change of address in the manner provided in this Agreement for giving Notice.

 

Section 5.5            Remedies.  All remedies set forth in this Agreement shall be cumulative and in addition to and not in lieu of any other remedies available to a Party at law, in equity or otherwise, and may be enforced concurrently or from time to time.

 

Section 5.6            Governing Law.  This Agreement will be governed by and construed and enforced in accordance with the internal laws of the State of New York without reference to any choice of law rules that would require the application of the laws of any other jurisdiction.

 

Section 5.7            Consent to Jurisdiction.  Each Party to this Agreement, by its execution hereof, (a) hereby irrevocably consents and agrees that any action, suit or proceeding arising in connection with any disagreement, dispute, controversy or claim, in whole or in part, arising out of, related to, based upon or in connection with this Agreement or the subject matter hereof shall be brought only in the courts of the State Courts of the State of New York, New York County or the United States District Court located in the State of New York, New York County, (b) hereby waives to the extent not prohibited by applicable Law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such action brought in one of the above-named courts should be dismissed on grounds of forum non conveniens, should be transferred to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court and (c) hereby agrees not to commence any such action other than before one of the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action to any court other than one of the above-named courts whether on the grounds of forum non conveniens or otherwise. Each Party hereby (i) consents to service of process in any such action in any manner permitted by New York law, (ii) agrees that service of process made in accordance with clause (i) or made by registered or certified mail, return receipt requested, at its address specified pursuant to Section 5.4 shall constitute good and valid service of process in any such action, and (iii) waives and agrees not to assert (by way of motion, as a defense, or otherwise) in any such action any claim that service of process made in accordance with clause (i) or (ii) does not constitute good and valid service of process.

 

Section 5.8            Specific Performance.  The Parties to this Agreement each acknowledge that each Party would not have an adequate remedy at law for money damages in the event that any of the covenants hereunder have not been performed in accordance with their terms, and therefore agree that each other Party hereto shall be entitled to specific enforcement of the terms hereof and any other equitable remedy to which such Party may be entitled.  Each of the Parties hereby waives (i) any defenses in any action for specific performance, including the defense that a remedy at law would be adequate and (ii) any requirement under any Law to post a bond or other security as a prerequisite to obtaining equitable relief.

 

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Section 5.9            Binding Effect; Persons Benefiting; Assignment.  This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and permitted assigns.  Nothing in this Agreement is intended or shall be construed to confer upon any Person other than the Parties hereto and their respective successors and permitted assigns any right, remedy or claim under or by reason of this Agreement or any part hereof.  Without the prior written consent of each of the other Parties, this Agreement may not be assigned by any of the Parties and any purported assignment made without such consent shall be null and void.

 

Section 5.10         Counterparts.  This Agreement may be executed in counterparts (including by facsimile or other electronic transmission), each of which shall be deemed an original and each of which shall constitute one and the same instrument.

 

Section 5.11         Entire Agreement.  This Agreement, including any Schedules, any documents executed by the Parties simultaneously herewith or pursuant thereto constitute the entire understanding and agreement of the Parties hereto with respect to the subject matter hereof and supersedes all other prior agreements and understandings, written or oral, between the Parties with respect to such subject matter.

 

Section 5.12         Severability.  If any provision of this Agreement, or the application thereof to any Person or circumstance, is invalid or unenforceable in any jurisdiction, (a) a substitute and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable in such jurisdiction, the intent and purpose of their invalid or unenforceable provision; and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability of such provision affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

 

Section 5.13         Amendments and Waivers.  This Agreement, including any Schedules, may not be amended, altered or modified except by written instrument executed by each of the Parties hereto.  The failure by any Party hereto to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision nor in any way to affect the validity of this Agreement or any part hereof or the right of such Party thereafter to enforce each and every such provision.  No waiver of any breach of or non-compliance with this Agreement shall be held to be a waiver of any other or subsequent breach or non-compliance.  Any waiver made by any Party hereto in connection with this Agreement shall not be valid unless agreed to in writing by such Party.

 

Section 5.14         Mutual Drafting; Interpretation.  Each Party hereto has participated in the drafting of this Agreement, which each such Party acknowledges is the result of extensive negotiations between the Parties. If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision.

 

Section 5.15         Third Party Beneficiaries.  Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any Person, other than the Parties hereto and their respective permitted successors and assigns, any rights or remedies under or by reason

 

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of this Agreement, such third Persons specifically including employees or creditors of the Company.

 

[Remainder of Page Left Blank]

 

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IN WITNESS WHEREOF, the Parties hereto have each caused this Management Agreement to be executed and delivered by its duly authorized representative as of the date first written above.

 

 

	
 
  	
DEERFIELD CAPITAL CORP.
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
By:
  	
 
  
	
 
  	
 
  	
Name:
  	
Jonathan Trutter
  
	
 
  	
 
  	
Title:
  	
Executive Officer
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
CIFC PARENT HOLDINGS LLC
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
By:
  	
 
  
	
 
  	
 
  	
Name: 
  	
Peter Gleysteen
  
	
 
  	
 
  	
Title: 
  	
Chief Executive Officer
  

 

Signature Page to CIFC Management Agreement

 

 

SCHEDULE A

 

SERVICES

 

The following shall constitute the Services:

 

·                  Maintenance of separate books and records of Receiver on an income tax basis, including the establishment of a general ledger and periodic journal entries to update Receiver’s accounts

 

·                  Support the annual audit of Receiver by providing information to the relevant auditors retained by Receiver in response to audit requests or otherwise

 

·                  Prepare financial statements on an income tax basis, including unaudited quarterly statements and audited annual reports and notes to the financial statements

 

·                  Provide account information and all other requested documentation in support of the annual K1 preparation process

 

·                  Act as representative of Receiver in dealings with Receiver’s external auditor, tax and legal advisors, and bankers; provided that Receiver shall be responsible for retaining any such parties

 

·                  Respond to Receiver’s reasonable inquiries for financial metrics with respect to the CLO securities held by Receiver, including, without limitation, comparative pricing and forecasts

 

Notwithstanding the foregoing, all receipts and disbursements of funds will continue to be the responsibility of the Receiver.

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