Document:

VANGUARD HEALTH SYSTEMS, INC.

Exhibit 10.1

INCREMENTAL COMMITMENT AGREEMENT

April 24, 2012

Vanguard Health Holding Company II, LLC

20 Burton Hills Boulevard

Suite 100

Nashville, TN  37215

            Re:  Increased Revolving Loan Commitments

Ladies and Gentlemen:

                        Reference is hereby made to the Credit Agreement, dated as of January 29, 2010 (as
amended from time to time, the “Credit Agreement,” capitalized terms defined therein being used herein as therein defined), among Vanguard Health Holding Company I, LLC, Vanguard Health Holding Company II, LLC (the “Borrower”),
the lenders from time to time party thereto, Bank of America, N.A., as Administrative Agent, and the other parties thereto.

                        Each Lender (each an “Incremental Revolving Lender”) party to this
letter agreement (this “Agreement”) hereby severally agrees to provide the Increased Revolving Loan Commitment set forth opposite its name on Annex I attached hereto (for each such Incremental Revolving Lender, its “Increased
Revolving Loan Commitment”).  Each Increased Revolving Loan Commitment provided pursuant to this Agreement shall be identical to the Revolving Loan Commitments existing prior to the date of this Agreement and shall be subject to the terms and
conditions set forth in the Credit Agreement, including Section 1.11 thereof.

                        Each Incremental Revolving Lender agreeing to provide an Increased Revolving Loan
Commitment pursuant to this Agreement, the Borrower and the Administrative Agent acknowledge and agree that the Increased Revolving Loan Commitments provided pursuant to this Agreement shall, from and after the Agreement Effective Date (as defined below), constitute
“Revolving Loan Commitments” for all purposes of the Credit Agreement and the other Credit Documents.

                        Each Incremental Revolving Lender (i) confirms that it has received a copy of the
Credit Agreement and the other Credit Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and,
to the extent applicable, to become a Lender under the Credit Agreement, (ii) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement, (iii) appoints and authorizes the Administrative Agent and the Collateral Agent to take such action as agent on its behalf and

to exercise such powers under the Credit Agreement and the other Credit Documents as are delegated to the Administrative Agent and the Collateral Agent, as the case may be, by the terms thereof, together with such powers as
are reasonably incidental thereto, (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender and (v) in the case of each lending institution
organized under the laws of a jurisdiction outside the United States that is not currently a Lender under the Credit Agreement, has provided the Administrative Agent with the applicable forms described in Section 4.04(d) of the Credit Agreement certifying as to its
entitlement to a complete exemption from United States withholding taxes with respect to all payments to be made under the Credit Agreement and the other Credit Documents.  Upon the satisfaction of each of the following conditions at or prior to 5:00 p.m. (New
York City time) on August 31, 2012 (the date of satisfaction of such conditions, the “Agreement Effective Date”), the Increased Revolving Loan Commitment of each Incremental Revolving Lender party hereto shall become effective and each Incremental
Revolving Lender shall have all rights and obligations of a Revolving Lender pursuant to the Credit Agreement and the other Credit Documents with respect to its Increased Revolving Loan Commitment: (i) the Administrative Agent shall have received an executed
counterpart of this Agreement from each Incremental Revolving Lender, the Administrative Agent, the Swingline Lender, the Issuing Lender, the Borrower and each Guarantor and (ii) each of the actions specified on Annex II hereto shall have been completed. 
If the conditions set forth in the preceding sentence have not been satisified at or prior to 5:00 p.m. (New York City time) on August 31, 2012, this Agreement shall terminate, the Increased Revolving Loan Commitments of the Incremental Revolving Lenders hereunder
shall not become effective and none of the parties hereto shall have any further obligations hereunder.

                        The Borrower hereby agrees that on or prior to 90 days after the Agreement Effective
Date (or such longer period of time as the Administrative Agent shall agree in its reasonable discretion), it shall complete the actions specified on Annex III hereto.

                        The Borrower and each Guarantor each hereby: (i) reaffirms all of its obligations under
the Credit Documents after giving effect to the effectiveness of the Increased Revolving Loan Commitments provided hereby and the incurrence of any Obligations with respect to the Increased Revolving Loan Commitments provided hereby (including, without limitation,
any Loans made pursuant thereto and Letters of Credit issued thereunder) and (ii) acknowledges and agrees that all Obligations under the Increased Revolving Loan Commitments (including any such Loans and Letters of Credit) shall be entitled to the  benefits of
the Security Documents.  Attached hereto as Annex IV are executed resolutions of the Borrower authorizing the incurrence of the Increased Revolving Loan Commitments provided hereunder.

                        The Obligations to be incurred pursuant to the Increased Revolving Loan Commitments
provided hereunder are not prohibited by the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument to which the Borrower or any of its Subsidiaries are party (including any such
agreement governing Indebtedness).

                        You may accept this Agreement by executing the enclosed copies in the space provided
below, and returning a copy of same to us before the close of business on April 27, 2012.  If you do not so accept this Agreement by such time, our Increased Revolving Loan Commitments set forth in this Agreement shall be deemed cancelled.

                        This Agreement may be executed by way of counterparts (including by facsimile or email)
by the parties hereto.  Upon the Agreement Effective Date, this Agreement shall constitute a Credit Document and may only be changed, modified or varied by written instrument in accordance with the requirements for the modification of Credit Documents pursuant
to Section 14.12 of the Credit Agreement (and, for the avoidance of doubt, the provisions of Section 14.08 of the Credit Agreement shall apply to this Agreement).

*      *      *

                        THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK.

Very truly yours,

CITICORP NORTH AMERICA, INC.

By:  /s/ Stuart G.
Dickson                                            

           Name:  Stuart G. Dickson

          Title:  Vice President

JPMORGAN CHASE BANK, N.A.

By:  /s/ Dawn
LeeLum                                                 

           Name:  Dawn LeeLum

          Title:  Executive Director

ROYAL BANK OF CANADA

By:  /s/ Sharon M.
Liss                                                

           Name:  Sharon M. Liss

          Title:  Authorized Signatory

WELLS FARGO BANK, N.A.

By:  /s/ Kent S.
Davis                                                  

           Name:     Kent S. Davis

          Title:       Managing Director

Agreed and Accepted this 24th day of April, 2012:

VANGUARD HEALTH HOLDING COMPANY II, LLC

By:     /s/ James H. Spalding                             

           Name:  James H. Spalding

          Title:    Executive Vice President

VANGUARD HOLDING COMPANY II, INC.

          as Guarantor

By:     /s/ James H. Spalding                             

           Name:  James H. Spalding

          Title:    Executive Vice President

VANGUARD HEALTH HOLDING COMPANY I, LLC

          as Guarantor

By:     /s/ James H. Spalding                             

           Name:  James H. Spalding

          Title:    Executive Vice President

VANGUARD HEALTH SYSTEMS, INC.

          as Guarantor

By:     /s/ James H. Spalding                             

           Name:  James H. Spalding

          Title:    Executive Vice President

Abrazo Medical Group Urgent Care, LLC

BHS Physicians Alliance for ACE, LLC

Central Texas Corridor Hospital Company, LLC

Hospital Development of West Phoenix, Inc.

MacNeal Physicians Group, LLC

Vanguard Health Financial Company, LLC

Vanguard Health Management, Inc.

VHS Acquisition Corporation

VHS Acquisition Subsidiary Number 1, Inc.

VHS Acquisition Subsidiary Number 2, Inc.

VHS Acquisition Subsidiary Number 5, Inc.

VHS Acquisition Subsidiary Number 7, Inc.

VHS Acquisition Subsidiary Number 8, Inc.

VHS Acquisition Subsidiary Number 9, Inc.

VHS Acquisition Subsidiary Number 10, Inc.

VHS Acquisition Subsidiary Number 11, Inc.

VHS Acquisition Subsidiary Number 12, Inc.

VHS Chicago Market Procurement, LLC

VHS Genesis Labs, Inc.

VHS Holding Company, Inc.

VHS Imaging Centers, Inc.

VHS of Anaheim, Inc.

VHS of Arrowhead, Inc.

VHS of Huntington Beach, Inc.

VHS of Illinois, Inc.

VHS of Orange County, Inc.

VHS of Phoenix, Inc.

VHS of South Phoenix, Inc.

VHS Outpatient Clinics, Inc.

Baptist Medical Management Service Organization, LLC

Healthcare Compliance, L.L.C.

MacNeal Health Providers, Inc.

MacNeal Management Services, Inc.

Pros Temporary Staffing, Inc.

Watermark Physician Services, Inc.

VHS of Michigan, Inc.

VHS Children’s Hospital of Michigan, Inc.

            as Guarantors

By:     /s/ James H. Spalding                             

           Name:  James H. Spalding

          Title:    Executive Vice President

VHS Detroit Businesses, Inc.

VHS Detroit Receiving Hospital, Inc.

VHS Detroit Ventures, Inc.

VHS Harper-Hutzel Hospital, Inc.

VHS Huron Valley-Sinai Hospital, Inc.

VHS Rehabilitation Institute of Michigan, Inc.

VHS Sinai-Grace Hospital, Inc.

VHS University Laboratories, Inc.

VHS Westlake Hospital, Inc.

VHS West Suburban Medical Center, Inc.

VHS Acquisition Subsidiary Number 4, Inc.

Midwest Pharmacies, Inc.

VHS Arizona Heart Institute, Inc.

VHS Valley Management Company, Inc.

            as Guarantors

By:     /s/ James H. Spalding                             

           Name:  James H. Spalding

          Title:    Executive Vice President

VHS San Antonio Partners, LLC,

             as Guarantor

By: VHS Acquisition Subsidiary Number 5, Inc.,

                        its Member

By: /s/ James H.
Spalding                                 

          Name: James H. Spalding

         Title: Executive Vice President

BANK OF AMERICA, N.A.,

as Administrative Agent, Swingline Lender and Issuing Lender

By:/s/ Sarang Gadkari        

     Name:    Sarang Gadkari

    Title:       Managing Director

Annex I

INCREASED REVOLVING LOAN COMMITMENTS

	
Name of Lender

	
                       

	
Amount of Increased

 Revolving Loan Commitment

	
Citicorp North America, Inc.

	
 

	
$5,000,000.00

	
JPMorgan Chase Bank, N.A.

	
 

	
$40,000,000.00

	
Royal Bank of Canada

	
 

	
$40,000,000.00

	
Wells Fargo Bank, N.A.

	
 

	
$20,000,000.00

Annex II

1.         The Administrative Agent, for the account of each Incremental Revolving Lender, shall have received from or on behalf of the Borrower an upfront fee equal to 0.50% of such
Incremental Revolving Lender’s Increased Revolving Loan Commitment pursuant to this Agreement, which upfront fee shall be paid in immediately available funds and once paid will not be refundable under any circumstances.

2.         The Administrative Agent shall have received an opinion of Simpson Thacher & Bartlett LLP, special New York counsel to the Borrower, in form and substance reasonably
satisfactory to the Administrative Agent.

3.         With respect to each existing Mortgage, receipt by the Administrative Agent of a completed “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard
Determination with respect to each Mortgaged Property (together with a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower and the applicable Credit
Party relating thereto) and, if any such Mortgaged Property is located in a special flood hazard area, evidence of flood insurance to the extent required pursuant to the Credit Agreement.

4.         The Administrative Agent shall have received a certificate, signed by an Authorized Officer of the Borrower, stating that on the Agreement Effective Date, immediately after
giving effect to the effectiveness of the Increased Revolving Commitments (i) no Default or Event of Default has occurred and is continuing and (ii) all representations and warranties contained in the Credit Agreement and in the other
Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on the date of the making of such Credit Event (it being understood and agreed that any representation or warranty
which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date).

Annex III

            With respect to each Mortgaged Property, the Administrative Agent shall have received the following:

                        (i)         an amendment to each existing
Mortgage (each, a “Mortgage Amend

                        ment”) duly executed and acknowledged by the applicable Credit Party,

                         and in form for recording in the recording office where such Mortgage

                         was recorded, together with such certificates, affidavits, questionnaires or

                         returns as shall be required in connection with the recording or filing

                         thereof under applicable law, in each case in form and substance

                         reasonably satisfactory to the Administrative Agent and otherwise ap

                        proved by the applicable local counsel for filing in the appropriate juris

                        diction;

                        (ii)        with respect to the Mortgaged
Property located in Michigan, a favorable

                         opinion, addressed to the Administrative Agent, the Collateral Agent and

                        the Secured Creditors covering, among other things, the due authorization,

                         execution and delivery and enforceability of the applicable Mortgage and

                         shall otherwise be in form and substance reasonably satisfactory to the

                        Administrative Agent;

                        (iii)       a date down endorsement to the existing
Mortgage Policy, which shall be

                         in form and substance reasonably satisfactory to the Administrative Agent

                         and reasonably assures the Collateral Agent as of the date of such

                         endorsement that the Mortgaged Property subject to the lien of such

                         Mortgage is free and clear of all defects and encumbrances except those

                         Liens permitted under such Mortgage;

                        (iv)       such affidavits, certificates, information and
instruments of indemnifica

                        tion as shall be required to induce the title insurance company to issue the

                         endorsement to the Mortgage Policy contemplated in this Annex III; and

                        (v)        evidence of payment of all applicable
title insurance premiums, search and

                         examination charges, mortgage recording taxes and related charges

                         required for the issuance of the endorsement to the Mortgage Policy

                         contemplated in this Annex II and evidence of payment by the Borrower

                         of all search and examination charges, escrow charges and related charges,

                         and all other fees, charges, costs and expenses required for the recording

                         of the Mortgage Amendment referred to above.

Annex IV

Resolutions

See attached.Exhibit 10.1

 

FORM OF UNIT PURCHASE AGREEMENT

 

This UNIT PURCHASE AGREEMENT, dated as of April     , 2012, is entered into by and among Western Asset Mortgage Capital Corporation, a Delaware corporation (the “Issuer”), and [                        ] (including its successors and assigns, the “Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, subject to the terms and conditions set forth in this agreement, pursuant to a private placement exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), the Purchaser desires to purchase from the Issuer a certain number of units (the “Units”), consisting of one share of Common Stock, par value $0.01 per share, of the Issuer (collectively, the “Shares”) and a warrant to purchase 0.5 shares of Common Stock, which warrant is exercisable commencing six months after the date of Closing (as defined below) and expiring seven (7) years from the date of Closing and has an initial exercise price of $20.50 per share, subject to adjustment and limitation on adjustment as set forth in the Warrant substantially in the form attached hereto as Annex 1 (collectively, the “Warrants”) for a purchase price of $20.00 per Unit (the “Unit Purchase Price”), and the Issuer desires to issue and sell the Units to the Purchaser in exchange for the Unit Purchase Price on the terms and subject to the conditions described herein.

 

NOW THEREFORE, in consideration of the premises and of the mutual agreements, covenants and provisions in this Agreement and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE 1

 

PURCHASE AND SALE

 

1.1           Purchase and Sale of the Units. Subject to (a) the terms and conditions set forth in this Agreement and (b) the Issuer’s issuance and sale Common Stock to the underwriters (the “Underwriters”) named in the underwriting agreement with the issuer (the “Underwriting Agreement”) in connection with the Issuer’s initial public offering (the “IPO”) pursuant to and in accordance with the Underwriting Agreement (the “IPO Closing”), the Issuer shall issue and sell to the Purchaser, and the Purchaser shall purchase from the Issuer, [                    ] Units in exchange for payment by the Purchaser of the Unit Purchase Price per Unit.

 

1.2           Closing. Subject to the terms and upon the satisfaction of the conditions of this Agreement and the occurrence of the IPO Closing, the closing of the purchase and sale of the Units (the “Closing”) shall take place on the date of the IPO Closing at the offices of counsel to the Issuer, Skadden, Arps, Slate, Meagher & Flom LLP located at Four Times Square, New York, New York 10036, or at such other place as the parties hereto shall agree in writing.

 

1.3           Closing Deliveries. At the Closing, (a) the Purchaser shall deliver to the Issuer the Unit Purchase Price per Unit purchased by the Purchaser by wire transfer of immediately available funds to an account designated by the Issuer in writing at least two (2) business days prior to the date of the Closing, (b) the Units will immediately separate into Shares and Warrants and (c) the Issuer shall issue such Shares and the Warrants, and deliver certificates representing the Shares and the Warrants to the Purchaser, as set forth on the Purchaser’s signature page.

 

 

ARTICLE 2

 

REPRESENTATIONS AND WARRANTIES OF THE ISSUER

 

The Issuer represents and warrants to the Purchaser as follows:

 

2.1           Formation and Good Standing. The Issuer is duly incorporated and is validly existing and in good standing under the laws of the State of Delaware.

 

2.2           Authorization and Validity of Agreement. The Issuer has all requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the  transactions contemplated hereby. The execution and delivery of this Agreement, the performance by the Issuer of its obligations hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action of the Issuer. This Agreement constitutes a legal, valid and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms, except that the enforceability of this Agreement against the Issuer may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting the enforcement of creditors’ rights generally, public policy and general equitable principles.

 

2.3           No Conflicts; Consents. The execution, delivery and performance of this Agreement by the Issuer and the consummation by the Issuer of the transactions contemplated hereby do not and will not conflict with, contravene, result in a violation or breach of or default under (with or without the giving of notice or the lapse of time, or both), permit any party to terminate, amend or accelerate the provisions of, or result in the imposition of any claim, lien, pledge, deed of trust, option, charge, security interest, hypothecation, encumbrance, right of first offer, voting trust, proxy, right of third parties or other restriction or limitation of any nature whatsoever (each, a “Lien”), or any obligation to create any Lien, upon any of the property or assets of the Issuer under (a) any contract, agreement, indenture, letter of credit, mortgage, security agreement, pledge agreement, deed of trust, bond, note, guarantee, surety obligation, warranty, license, franchise, permit, power of attorney, lease, instrument or other agreement (each, a “Contract”) to which the Issuer is a party or by which any of its property or assets may be bound or (b) any provision of any organizational document of the Issuer.

 

2.4           Authorization of the Shares. The Shares have been duly authorized and, when issued in accordance with this Agreement, will be duly and validly issued, fully paid and non-assessable and will be free and clear of all Liens, other than restrictions on transfer imposed by the Securities Act and applicable state securities laws. The Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”), when issued in accordance with the terms of the Warrants, will be validly issued, fully paid and non-assessable and will be free and clear of all Liens, other than restrictions on transfer imposed by the Securities Act and applicable state securities laws.

 

2.5           Exemption from Registration; No Integration; No General Solicitation.

 

(a)           Subject to the accuracy of the representations and warranties of the Purchasers, it is not necessary in connection with the offer, sale and delivery of the Units to the Purchasers in the manner contemplated by this Agreement to register the Units (or the Shares and Warrants comprising the Units) under the Securities Act.

 

(b)           Neither the Issuer nor any affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act) of the Issuer has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or will be integrated with the sale of the Units (or the Shares and Warrants comprising the Units) in a manner that would require the registration under the Securities Act of the Units (or the Shares and

 

 

Warrants comprising the Units) or (ii) offered, solicited offers to buy or sold the Units (or the Shares and Warrants comprising the Units) by any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act.

 

ARTICLE 3

 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

 

The Purchaser represents and warrants to the Issuer as follows:

 

3.1           Formation and Good Standing. If a business entity, the Purchaser is duly organized, validly existing and in good standing under the jurisdiction and laws of the jurisdiction of its organization.

 

3.2           Authorization and Validity of Agreement. The Purchaser has all requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement, the performance by the Purchaser of its obligations hereunder and the consummation of the transactions contemplated hereby have been duly authorized by the Purchaser and, if a business entity, by all requisite corporate  action of the Purchaser. This Agreement constitutes a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except that the enforceability of this Agreement against the Purchaser may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting the enforcement of creditors’ rights generally, public policy and general equitable principles.

 

3.3           No Conflicts; Consents. The execution, delivery and performance of this Agreement by the Purchaser and the consummation by the Purchaser of the transactions contemplated hereby do not and will not conflict with, contravene, result in a violation or breach of or default under (with or without the giving of notice or the lapse of time, or both), permit any party to terminate, amend or accelerate the provisions of, or result in the imposition of any Lien (or any obligation to create any Lien) upon any of the property or assets of the Purchaser under (a) any Contract to which the Purchaser is party or by which any of its property or assets may be bound or (b) if a business entity, any provision of any organizational document of the Purchaser.

 

3.4           Offering Representations.

 

(a)           The Purchaser hereby acknowledges that the Units (and the Shares and Warrants comprising the Units) have not been registered under the Securities Act and may not be offered or sold except pursuant to registration or to an exemption from the registration requirements of the Securities Act and that the certificates evidencing the Shares and Warrants comprising the Units will bear a legend to that effect. The Units to be acquired by the Purchaser pursuant to this Agreement are being acquired for its own account and with no intention of distributing or reselling the Units (or the Shares and Warrants comprising the Units) or any part thereof in any transaction that would be in violation of the securities laws of the United States, any state of the United States or any foreign jurisdiction. The Purchaser further agrees that it has not entered and prior to the Closing will not enter into any Contract with respect to the distribution, sale, transfer or delivery of the Units.

 

(b)           The Purchaser is an institution that is an “accredited investor” as such term is defined in paragraphs (1), (2), (3) or (7) of Rule 501(a) of Regulation D promulgated under the Securities Act, as presently in effect.

 

 

(c)           The Purchaser has adequate means of providing for his, her or its current needs and personal contingencies, that the Purchaser has no need now, and anticipates no need in the foreseeable future, to sell the Shares or Warrants, and the Purchaser currently has sufficient financial liquidity to afford a complete loss of the Purchaser’s investment in the Issuer.

 

(d)           The overall commitment of the Purchaser to investments which are not readily marketable is not excessive in view of the Purchaser’s net worth and financial circumstances, and any purchase of the Units will not cause such commitment to become excessive.

 

(e)           The Purchaser is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks involved in purchasing the Units and to make an informed decision relating thereto.

 

(f)            In addition to reviewing the Issuer’s Preliminary Offering Memorandum, dated March 28, 2012 (as supplemented to date, the “Offering Memorandum”) the Purchaser has carefully considered the potential risks relating to the Issuer and a purchase of the Units, and fully understands that the Units are speculative investments which involve a high degree of risk of loss of the Purchaser’s entire investment. Among others, the Purchaser has carefully considered each of the risks described in the Offering Memorandum. The Purchaser has been furnished with the materials relating to the business, operations, financial condition, assets and liabilities of the Issuer and other matters relevant to the Purchaser’s investment in the Units which have been requested by the Purchaser. The Purchaser has had adequate opportunity to ask questions of, and receive answers from, the officers, employees, agents, accountants, and representatives of the Issuer concerning the business, operations, financial condition, assets and liabilities of the Issuer and all other matters relevant to the Purchaser’s investment in the Units.

 

(g)           The Purchaser has a pre-existing business relationship with the Issuer and/or Deutsche Bank Securities Inc. The Purchaser was directly contacted by the Issuer and/or Deutsche Bank Securities Inc. prior to and not in connection with any IPO marketing efforts.

 

(h)           The Purchaser (i) did not become interested in purchasing Shares or Warrants by means of the registration statement on Form S-11 filed by the Issuer with the U.S. Securities and Exchange Commission in connection with the IPO (the “Registration Statement”), (ii) was not identified through, or contacted in connection with, the marketing of the IPO, and (iii) did not independently contact the Issuer as a result of the general solicitation by means of the Registration Statement.

 

(i)            The Purchaser is a “qualified institutional buyer” (as such term is defined in Rule 144A under the Securities Act).

 

ARTICLE 4

 

COVENANTS

 

4.1           Further Assurances; Waivers and Indemnification.

 

(a)           Each party hereto shall execute and deliver such instruments and take such other actions prior to and/or after the Closing as the other party hereto may reasonably request in order to carry out the intent of this Agreement, including, without limitation, obtaining any required consents or approvals from third parties, if any. In addition, the Issuer and Deutsche Bank Securities Inc. (“Deutsche Bank Securities”) may request from the Purchaser such additional information as the Issuer and Deutsche Bank Securities may deem necessary to evaluate the eligibility of the Purchaser to acquire the Units, and may request from time to time such information as the Issuer or Deutsche Bank Securities may

 

 

deem necessary to determine the eligibility of the Purchaser to hold the Units or to enable the Issuer to determine the Issuer’s compliance with applicable regulatory requirements or tax status, and the Purchaser shall provide such information as may reasonably be requested.

 

(b)           The Purchaser acknowledges that Deutsche Bank Securities has acted as agent for the Issuer in connection with the sale of the Units and consents to Deutsche Bank Securities’ actions in this regard and hereby waives any and all claims, actions, liabilities, damages or demands the undersigned may have against Deutsche Bank Securities in connection with any alleged conflict of interest arising from Deutsche Bank Securities’ engagement as an agent of the Issuer with respect to the sale by the Issuer of Units to the Purchaser.

 

(c)           The Purchaser agrees to indemnify and hold harmless, in an amount not to exceed $30 million, the Issuer and Deutsche Bank Securities, their respective directors, executive officers and each other person, if any, who controls or is controlled by the Issuer or Deutsche Bank Securities, within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from and against any and all loss, liability, claim, damage and expense whatsoever (including, without limitation, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation commenced or threatened or any claim whatsoever) arising out of or based upon (a) any false, misleading or incomplete representation, declaration or warranty or breach or failure by the Purchaser to comply with any covenant or agreement made by the Purchaser in this Agreement or in any other document furnished by the Purchaser to any of the foregoing in connection with this transaction or (b) any action for securities law violations by the Purchaser.

 

(d)           The Purchaser understands and agrees that the undersigned is purchasing Units directly from the Issuer and not from Deutsche Bank Securities and that Deutsche Bank Securities did not make any representations, declarations or warranties to the Purchaser regarding the Units, the Issuer or the Issuer’s offering of the Units. The undersigned further acknowledges and agrees that Deutsche Bank Securities did not offer to sell, or solicit an offer to buy, any of the Units that the Purchaser proposes to acquire from the Issuer hereunder.

 

ARTICLE 5

 

CONDITIONS PRECEDENT TO THE OBLIGATIONS

 

5.1           Mutual Conditions. Each of the Issuer’s and the Purchaser’s respective obligations to consummate the purchase and sale of the Units at the Closing pursuant to and in accordance with this Agreement are subject to the fulfillment of the following conditions: (a) the occurrence of the IPO Closing,  (b) the absence of any order, decree, judgment or injunction of a court of competent jurisdiction or other governmental or regulatory authority precluding the consummation of the purchase and sale of the Units contemplated hereby and (c) there shall not have been any action taken or any statute, rule or regulation enacted, promulgated or deemed applicable to, the purchase and sale of the Units contemplated hereby by any court, governmental agency or regulatory or administrative authority that makes consummation of such transactions illegal.

 

5.2           Conditions to the Obligations of the Issuer. The Issuer’s obligation to consummate the purchase and sale of the Units at the Closing pursuant to and in accordance with this Agreement is subject to the fulfillment (or waiver by the Issuer) of the following conditions: (a) the representations and warranties of the Purchaser contained in or made pursuant to this Agreement shall be deemed to have been made again at and as of the Closing and shall then be true and accurate and (b) the Purchaser shall have performed and complied in all material respects with his, her or its obligations required by this Agreement to be performed or complied with by him, her or it prior to or at the Closing.

 

 

5.3           Conditions to the Obligations of the Purchaser. The Purchaser’s obligation to consummate the purchase and sale of the Units at the Closing pursuant to and in accordance with this Agreement is subject to the fulfillment (or waiver in writing by the Purchaser) of the following conditions: (a) the representations and warranties of the Issuer contained in or made pursuant to this Agreement shall be deemed to have been made again at and as of the Closing and shall then be true and accurate and (b) the Issuer shall have performed and complied in all material respects with its obligations required by this Agreement to be performed or complied with by it prior to or at the Closing.

 

ARTICLE 6

 

AGREEMENTS RELATING TO THE SHARES AND WARRANTS

 

6.1           Furnishing of Information. Upon consummation of the IPO, and until the earliest of the time that (i)  the Purchaser does not own any Shares, Warrants or Warrant Shares or (ii) the Warrants have expired, the Issuer covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Issuer after the date hereof pursuant to the Securities Exchange Act, even if the Issuer is not then subject to the reporting requirements of the Exchange Act. As long as the  Purchaser owns any Shares, Warrants or Warrant Shares, if the Issuer is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchaser and make publicly available in accordance with Rule 144(c) such information as is required for the Purchaser to sell the Shares, Warrants or Warrant Shares, including without limitation, under Rule 144. The Issuer further covenants that it will take such further action as any holder of Shares, Warrants or Warrant Shares may reasonably request, to the extent required from time to time to enable such holder to sell such Shares, Warrants or Warrant Shares without registration under the Securities Act, including without limitation, within the requirements of the exemption provided by Rule 144.

 

6.2           Reservation of Common Stock. As of the date hereof, the Issuer has reserved and the Issuer shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Issuer to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

6.3           Listing of Common Stock. Upon consummation of the IPO, the Issuer hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on the New York Stock Exchange (the “NYSE”), and concurrently with the Closing, the Issuer shall apply to list all of the Shares and Warrant Shares on the NYSE and promptly secure the listing of all of the Shares and Warrant Shares on the NYSE. The Issuer further agrees, if the Issuer applies to have the Common Stock traded on any other trading market, including the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market (or any successors to any of the foregoing) it will then include in such application all of the Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares and Warrant Shares to be listed on such other trading market as promptly as possible. The Issuer will then take all action reasonably necessary to continue the listing and trading of its Common Stock on a trading market and will comply in all respects with the Issuer’s reporting, filing and other obligations under the bylaws or rules of the trading market.

 

ARTICLE 7

 

MISCELLANEOUS

 

7.1           Termination. This Agreement shall be terminated prior to the Closing if (a) prior to the consummation of the IPO Closing, the Registration Statement is withdrawn or the Underwriting Agreement is terminated pursuant to its terms, or (b) the IPO Closing has not occurred within 45 days after the date of this Agreement. In the event of any termination of this Agreement, this Agreement shall become void and have no effect, without any liability to either party hereto, except for any liability resulting from a breach of this Agreement by either party hereto prior to such termination.

 

 

7.2           Survival. Each of the representations and warranties contained in this Agreement shall survive indefinitely. Each covenant contained in this Agreement shall survive the Closing until performed in accordance with its terms.

 

7.3           Amendments; Waivers. The provisions of this Agreement may not be amended or modified except by a writing signed by each party hereto; provided, however, that no such amendment or modification may be made without the prior written consent of Deutsche Bank Securities. No waiver of any term or condition hereof or obligation hereunder shall be valid unless made in writing and signed by the party to which any such performance is due.

 

7.4           Severability of Provisions. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party hereto. Upon such a determination, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 

7.5           Equal Treatment of Purchasers. No waiver or modification of any provision of this Agreement, the Warrants and any other documents or agreements executed in connection with the transactions contemplated hereunder (the “Transaction Documents”), shall be offered or made to any provision of any of the Transaction Documents unless the same waiver or modification is also offered to all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate right granted to the Purchaser by the Issuer and negotiated separately by each purchaser of Units, and is intended for the Issuer to treat  all such purchasers as a class and shall not in any way be construed as such purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

7.6           Independent Nature of Purchasers’ Obligations and Rights. The obligations of the Purchaser and each other purchaser of Units under any Transaction Document are several and not joint with the obligations of any other purchaser of Units, and the Purchaser shall not be responsible in any way for the performance or non-performance of the obligations of any other purchaser of Units under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any such purchaser pursuant thereto, shall be deemed to constitute such purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that such purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other purchaser to be joined as an additional party in any proceeding for such purpose. The Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. The Issuer has elected to provide all such purchasers with the same terms and Transaction Documents for the convenience of the Issuer and not because it was required or requested to do so by any of such purchasers.

 

7.7           Third Party Beneficiary. The Purchaser and the Issuer hereby acknowledge and agree that Deutsche Bank Securities is a third party beneficiary of this Agreement.

 

7.8           Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any conflict of laws principles thereof that would cause the application of the laws of another jurisdiction.

 

 

7.9           Waiver of Trial By Jury. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTER ARISING HEREUNDER.

 

7.10         Remedies and Waivers. No delay or omission on the part of either party hereto in exercising any right, power or remedy provided by law or under this Agreement shall (i) impair such right, power or remedy or (ii) operate as a waiver thereof. The single or partial exercise of any right, power or remedy provided by law or under this Agreement shall not preclude any other or further exercise of any other right, power or remedy. The rights, powers and remedies provided in this Agreement are cumulative and not exclusive of any rights, powers and remedies provided by law.

 

7.11         Notices. All notices, requests, demands, waivers and other communications to be given by either party hereto hereunder shall be in writing and shall be (i) mailed by first-class, registered or certified mail, postage prepaid, (ii) sent by hand delivery or reputable overnight delivery service or (iii) transmitted by fax (provided that a copy is also sent by reputable overnight delivery service) addressed to the General Counsel of the Issuer or the Purchasers, as applicable, in each case at c/o Western Asset Mortgage Capital Corporation, 385 East Colorado Boulevard, Pasadena, California 91101, facsimile no. (626) 844-9451, or such other address as may be specified in writing to the other party hereto. All such notices, requests, demands, waivers and other communications shall be deemed to have been given and received (i) if by personal delivery or fax, on the day of such delivery, (ii) if by first-class, registered or certified mail, on the fifth business day after the mailing thereof or (iii) if by reputable overnight delivery service, on the day delivered.

 

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

 

7.13         Headings. The Article and Section headings contained herein are for the convenience of the parties only and shall not affect the construction or interpretation of this Agreement.

 

7.14         Entire Agreement. This Agreement contains the entire understanding of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings, both written and oral, among the parties hereto with respect to the subject matter hereof.

 

[Signature page follows.]

 

 

 

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

 

 

	
 
    	
ISSUER:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WESTERN ASSET MORTGAGE CAPITAL CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; 
 SIGNATURE PAGE FOR PURCHASERS FOLLOWS]

 

 

PURCHASER SIGNATURE PAGE TO UNIT PURCHASE AGREEMENT

 

IN WITNESS WHEREOF, the undersigned have caused this Unit Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

Name of Purchaser:

 

 

Signature of Authorized Signatory of Purchaser:

 

Name of Authorized Signatory:

 

Title of Authorized Signatory:

 

Email Address of Authorized Signatory:

 

Facsimile Number of Authorized Signatory:

 

Address for Notice of Purchaser:

 

 

 

DWAC Instructions for Issuance of Shares:

 

 

 

Address for Delivery of Securities for Purchaser (if not same as address for notice):

 

 

 

Subscription Amount: $

 

Number of Units:

 

EIN Number (if applicable):

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00203-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00203-of-00352.parquet"}]]