Document:

Exhibit 10.7

 

Execution Copy

 

AMENDMENT NO. 2 TO

AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT

 

This AMENDMENT NO. 2 TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT, dated as of June 4, 2015 (the “Agreement”), is entered into by and among (a) Focus Financial Partners, LLC (the “Company”), a Delaware limited liability company, (b) the Lenders (as defined below) and (c) Bank of America, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and as a Lender, L/C Issuer, and Swing Line Lender.

 

WHEREAS, the Company, certain Subsidiaries of the Company party thereto from time to time pursuant to Section 2.14 thereof (each a “Designated Borrower” and, together with the Company, collectively, the “Borrowers” and each individually a “Borrower”), each lender from time to time party thereto (collectively with the New Lenders (as defined below), the “Lenders” and each individually, a “Lender”), and the Administrative Agent are parties to that certain Amended and Restated Revolving Credit and Term Loan Agreement, dated as of December 10, 2013 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”; capitalized terms used but not otherwise defined herein shall have the same meanings ascribed to them in the Credit Agreement);

 

WHEREAS, each of BMO Harris Bank N.A., Citizens Bank, N.A. and BankUnited, N.A. (collectively, the “New Lenders”) desires to join the Credit Agreement as a “Lender” thereunder;

 

WHEREAS, the Company has requested (a) an increase in the Revolving Commitments of $255,000,000 (such increased Revolving Commitments, the “Incremental Revolving Commitments”) and (b) an extension of the Maturity Date to June 4, 2020;

 

WHEREAS, after giving effect to the Incremental Revolving Commitments, the Revolving Commitments shall total $555,000,000;

 

WHEREAS, in connection with the effectiveness of this Agreement, certain assignments of the Term Loan shall occur among the Lenders as provided for herein;

 

WHEREAS, each Incremental Revolving Lender (as defined below) has agreed to provide an Incremental Revolving Commitment, subject to the terms and conditions set forth herein, and the Company, the Administrative Agent and the Lenders have agreed, subject to the terms and conditions set forth herein, to extend the Maturity Date and amend certain other terms and provisions of the Credit Agreement each as described below; and

 

NOW, THEREFORE, the Administrative Agent and the undersigned Lenders have agreed, subject to the terms and conditions set forth herein, to amend certain terms and provisions of the Credit Agreement each as described below:

 

§1.                               Terms of the Incremental Revolving Commitments. Pursuant to Section 2.16(a) of the Credit Agreement, each Lender with an Incremental Revolving Commitment provided for under column (b) of Schedule 2.01 hereto (each an “Incremental Revolving Lender”) agrees to provide Incremental Revolving Commitments in the amount set forth opposite its name under such column, and such Incremental Revolving Commitments shall be added to and constitute a part of the Revolving Commitments for all purposes of the Credit Agreement and the Loan Documents, having the same terms and conditions applicable to the existing Revolving Commitments as set forth in the Loan Documents. On the Second Amendment Effective Date (as defined below), the Revolving Loans shall be adjusted pursuant to Section 2.16(g) of the Credit Agreement (as amended by this Agreement).

 

 

§2.                               Assignment of Term Loans. On the Second Amendment Effective Date, without the action of any other Person, each Decreasing Term Lender (as defined below) shall, by assignments to the Increasing Term Lenders (as defined below), sell a portion of the outstanding Term Loans held by it to each Increasing Term Lender, and each Increasing Term Lender shall, by assignments from the Decreasing Term Lenders, purchase a portion of the outstanding Term Loans held by such Decreasing Term Lender, in each case in such amounts (and the Decreasing Term Lenders and the Increasing Term Lenders shall, through the Administrative Agent, make such additional adjustments among themselves as shall be necessary) so that after giving effect to such assignments and adjustments, the Increasing Term Lenders and the Decreasing Term Lenders shall hold outstanding Term Loans in accordance with the amounts set forth under column (f) set forth on Schedule 2.01. Such assignments shall be deemed to occur hereunder automatically, and without any requirement for additional documentation, on the Second Amendment Effective Date. Each Decreasing Term Lender represents and warrants to each Increasing Term Lender to which any of its Loans are being assigned that (i) it is the legal and beneficial owner of the relevant assigned Loans; (ii) it has not created any adverse claim upon the interest being assigned by it to such Increasing Term Lender hereunder; (iii) such interest is free and clear of any lien, encumbrance or other adverse claim; (iv) it has full power and authority, and has taken all action necessary to execute and deliver this Agreement and to consummate the transactions contemplated hereby and (v) it is not a Defaulting Lender. For purposes of this Section 2, “Decreasing Term Lender” means any Lender whose Term Loan holding set forth in column (f) of Schedule 2.01 is less than its Term Loan holding set forth in column (e) thereof; and “Increasing Term Lender” means any Lender whose Term Loan holding set forth in column (f) of Schedule 2.01 is more than its Term Loan holding set forth in column (e) thereof. The Company shall pay all accrued and unpaid interest on the Term Loans on the Second Amendment Effective Date.

 

§3.                               Amendments to Credit Agreement. Upon the Second Amendment Effective Date, the Credit Agreement shall be automatically amended as follows without any further action required by any party hereto by:

 

(a)                                 adding in the appropriate alphabetical order the following new definition in Section 1.01 thereof

 

“Second Amendment Effective Date” means June 4, 2015.

 

(b)                                 deleting the last sentence of the definition of “Revolving Commitment” in Section 1.01 thereof and replacing it with the following sentence:

 

“The aggregate Revolving Commitment of all Revolving Lenders as of the Second Amendment Effective Date is $555,000,000.”

 

(c)                                  amending and restating in its entirety the definition of “Loan Notice” in Section 1.01 thereof:

 

“Loan Notice” means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to the other, or (c) a continuation of Eurocurrency Rate Loans, pursuant to Section 2.02(a), which shall be substantially in the form of Exhibit A or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Company.

 

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(d)                                 amending and restating in its entirety the definition of “Maturity Date” in Section 1.01 thereof:

 

“Maturity Date” means the later of (a) June 4, 2020 and (b) if maturity is extended pursuant to Section 2.15, such extended maturity date as determined pursuant to such Section; provided, however, that, in each case, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

 

(e)                                  amending and restating in its entirety the definition of “Responsible Officer” in Section 1.01 thereof:

 

“Responsible Officer” means any of the chief executive officer, president, chief financial officer, vice president of finance, treasurer or corporate controller of any Loan Party, or, with respect to any Loan Party, any officer of such Loan Party who is the functional equivalent of any of such officers, and solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of a Loan Party and, solely for purposes of notices given pursuant to Article II, any other officer or employee of the applicable Loan Party so designated by any of the following officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent. Any document delivered hereunder that is signed by any Responsible Officer of any Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership, limited liability company and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 

(f)                                   amending and restating in its entirety the definition of “Swing Line Loan Notice” in Section 1.01 thereof:

 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B or such other form as approved by the Administrative Agent in writing (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Company.

 

(g)                                  amending Section 2.02(a) by (i) replacing the words “telephone. Each such notice” on the third line thereof with the following:

 

“(A)       telephone, or (B) a Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Administrative Agent of a Loan Notice. Each such Loan Notice”;

 

(ii)      deleting the fourth sentence thereof in its entirety, and (iii) deleting the parenthetical “(whether telephonic or written)” in the seventh sentence thereof.

 

(h)                                 amending Section 2.04(b) by (i) replacing the words “telephone. Each such notice” on the third line thereof with the following:

 

“(A)       telephone, or (B) a Swing Line Loan Notice; provided that any telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the

 

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Administrative Agent of a Swing Line Loan Notice. Each such Swing Line Loan Notice”;

 

(ii)      deleting the third sentence thereof in its entirety, and (iii) deleting the word “telephonic” immediately prior to the word “Swing Line Loan Notice” in the fourth sentence thereof.

 

(i)                                     amending Section 2.05(a)(i) by adding the clause “in a form acceptable to the Administrative Agent and be” immediately after the words “such notice must be” on the third line thereof.

 

(j)                                    replacing the phrase “in an aggregate amount not to exceed $150,000,000 for all such Incremental Facilities” in Section 2.16(a) thereof with “in an aggregate amount not to exceed $350,000,000 after the Second Amendment Effective Date for all such Incremental Facilities”.

 

(k)                                 amending Section 2.16(c) by (1) deleting “and” immediately prior to clause (ii) and replacing such reference with “,” and (2) adding the following at the end thereof immediately before the period:

 

“and (iii) the Company shall make any breakage payments in connection with any adjustments of Revolving Loans pursuant to Section 3.05”

 

(l)                                     amending Section 2.16 by inserting the following new clause (g) at the end thereof as follows:

 

“Adjustments of Revolving Loans. To the extent the Commitments being increased on the relevant Incremental Effective Date are Incremental Revolving Commitments, then each Revolving Lender that is acquiring an Incremental Revolving Commitment on the Incremental Effective Date shall make a Revolving Loan, the proceeds of which will be used to prepay the Revolving Loans of the other Revolving Lenders immediately prior to such Incremental Effective Date, so that, after giving effect thereto, the Revolving Loans outstanding are held by the Revolving Lenders pro rata based on their Revolving Commitments after giving effect to the Incremental Revolving Commitments established on such Incremental Effective Date. If there is a new borrowing of Revolving Loans on such Incremental Effective Date, the Revolving Lenders after giving effect to such Incremental Effective Date shall make such Revolving Loans in accordance with Section 2.01(b). For the avoidance of doubt, any outstanding Letters of Credit, Swing Line Loans and the Revolving Exposure of each existing Revolving Lender and each Incremental Revolving Lender shall automatically be adjusted in accordance with this clause (g).”

 

(m)                             amending Section 10.02(c) by inserting the following clause immediately after the words “transmission of Borrower Materials” immediately prior to the words “through the Internet” on the fourteenth line thereof:

 

“or notices through the Platform, any other electronic platform or electronic messaging service, or”

 

(n)                                 amending Section 10.02(e) by deleting the words “or electronic” on the third line thereof immediately after the word “telephonic”

 

(o)                                 amending and restating Section 10.17 in its entirety to read as follows:

 

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“Electronic Execution of Assignments and Certain Other Documents. The words “execute,” “execution,” “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby (including without limitation Assignment and Assumptions, amendments or other modifications, Loan Notices, Swing Line Loan Notices, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it.”

 

(p)                                 amending and restating Schedule 2.01 in its entirety in the form of Schedule 2 attached hereto.

 

§4.                               Waiver. The Administrative Agent and the Lenders party hereto hereby waive the requirement for the Company to make any breakage payments pursuant to Section 3.05 of the Credit Agreement in connection with any adjustment of Revolving Loans resulting from the funding of the Incremental Revolving Commitments on the Second Amendment Effective Date or of the assignments of Term Loans pursuant to Section 2 above on the Second Amendment Effective Date.

 

§5.                               Joinder of New Lenders. Each New Lender, by its signature below, confirms that it has agreed to become a “Lender” under, and as defined in, the Credit Agreement with a Revolving Commitment and/or Term Loan as set forth on Schedule 2.01 hereto, effective on the date hereof upon the satisfaction of the conditions set forth in Section 5 hereof. Each New Lender (a) acknowledges that in connection with it becoming a Lender it has received a copy of the Credit Agreement and the Schedules and Exhibits thereto, together with copies of the most recent financial statements delivered by the Company pursuant to the Credit Agreement, and such other documents and information as it has deemed appropriate to make its own credit and legal analysis and decision to become a Lender; and (b) agrees that, upon it becoming a Lender on the date hereof, it will, independently and without reliance upon the Administrative Agent, the L/C Issuer, the Swing Line Lender 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 and legal decisions in taking or not taking action under the Credit Agreement. In addition, each New Lender represents and warrants that (i) it is duly organized and existing and it has full power and authority to take, and has taken, all action necessary to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender on the date hereof; (ii) such New Lender is, on the date hereof, an Eligible Assignee; and (iii) no notices to, or consents, authorizations or approvals of, any Person are required (other than any already given or obtained) for its due execution and delivery of this Agreement or the performance of its obligations hereunder or as a Lender under the Credit Agreement as of the date hereof. Each New Lender agrees to execute and deliver such other instruments, and take such other actions, as the Administrative Agent or any Loan Party may reasonably request in connection with the transactions contemplated by this Agreement (including, without limitation, delivering to the Administrative Agent, on or prior to the date hereof, an Administrative Questionnaire for such New Lender). The Company, the Administrative Agent, the L/C Issuer, the Swing Line Lender, each existing Lender and each New Lender acknowledges and agrees

 

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that, on the date hereof, each New Lender shall become a Lender and, from and after such date each New Lender will have all rights as a Lender under the Loan Documents. Each New Lender acknowledges and agrees that from and after the date hereof such New Lender (x) will be bound by the terms of the Credit Agreement as fully and to the same extent as if such New Lender were an original Lender under the Credit Agreement and (y) will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

§6.                               Conditions. The effectiveness of this Agreement is subject to the satisfaction of the following conditions precedent (the date such conditions are satisfied, the “Second Amendment Effective Date”):

 

(a)                                 Documentation. The Administrative Agent shall have received on or prior to the date hereof each of the following in form and substance reasonably satisfactory to the Administrative Agent:

 

(i)         this Agreement duly executed by the Company, the other Loan Parties and each Lender;

 

(ii)      a duly executed legal opinion of Weil, Gotshal & Manges LLP, counsel to the Loan Parties, in form and substance substantially consistent with the opinion of Weil, Gotshal & Manges LLP delivered to the Administrative Agent on the Closing Date;

 

(iii)       a certificate of a Responsible Officer of the Company certifying as to the satisfaction of the conditions set forth in Sections 2.16(c)(i)(A) and (B) of the Credit Agreement; and

 

(iv)      a certificate of a Responsible Officer of each Loan Party (i) certifying to and attaching the Organization Documents of such Loan Party (or if applicable, at the option of such Loan Party, certifying that there have been no changes to such Organization Documents since the later of (A) the Closing Date and (B) the date on which such entity became a Loan Party) and (ii) certifying and attaching copies of the resolutions adopted by each Loan Party approving and authorizing the execution, delivery and performance of this Agreement.

 

(b)                                 Fees and Expenses. The Company shall have paid (i) to the Administrative Agent, for account of each Lender providing a signature page to this Agreement by 5:00 p.m. (New York time) on June 3, 2015 (each such Lender, a “Consenting Lender”) an amendment fee in an amount equal to 0.20% of such Consenting Lender’s outstanding Term Loans and Revolving Commitments outstanding immediately prior to the Second Amendment Effective Date (except for any Lender who is a Departing Lender, as defined below), (ii) to the Administrative Agent, for account of each Lender, a closing fee in the amount of 0.50% times such Lender’s Aggregate Increase in Exposure (as defined below), and (iii) all fees and expenses that are due and payable on or prior to the Second Amendment Effective Date (including, without limitation, Attorney Costs of Morgan, Lewis & Bockius LLP that have been previously invoiced to the Company). For purposes of this clause (b), “Departing Lender” means any Lender who will not hold any Revolving Credit Commitment or Term Loan after the Second Amendment Effective Date, and “Aggregate Increase in Exposure” means the aggregate increase in exposure for each Lender, if any, as provided for in column (j) of Schedule 2.01 hereto.

 

§7.                               Affirmation of the Company and Guarantors. The Company hereby affirms its absolute and unconditional promise to pay to each Lender, the L/C Issuer, the Swing Line Lender and the Administrative Agent the Loans, the L/C Obligations and all other amounts due under the Notes, the Credit Agreement as amended hereby and the other Loan Documents, at the times and in the amounts provided for therein. The Company and each of the Guarantors hereby affirms its guaranty of the

 

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Obligations in accordance with the provisions of the applicable Guaranty. Each of the Company and the Guarantors confirms and agrees that (i) the obligations of the Borrowers to the Lenders, the Swing Line Lender, the L/C Issuer and the Administrative Agent under the Credit Agreement as amended hereby are secured by and entitled to the benefits of the Collateral Documents and (ii) all references to the term “Credit Agreement” in the Collateral Documents and the other Loan Documents shall hereafter refer to the Credit Agreement as amended hereby.

 

§8.                               Representations and Warranties. The Company hereby represents and warrants to the Lenders, the Administrative Agent and the L/C Issuer as follows:

 

(a)                                 Representations and Warranties in Credit Agreement. The representations and warranties of the Company contained in Article 5 of the Credit Agreement and the other Loan Documents are true and correct in all material respects (except for representations and warranties that are already qualified as to materiality, which are instead true and correct in all respects) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they were true and correct in all material respects (except for representations and warranties that are already qualified as to materiality, which were instead true and correct) as of such earlier date.

 

(b)                                 Authority, No Conflicts, Etc. The execution, delivery and performance of this Agreement and all related documents and the consummation of the transactions contemplated hereby and thereby (i) are within the corporate (or the equivalent company) authority of the Company and its Subsidiaries, (ii) have been duly authorized by all necessary corporate (or the equivalent company) proceedings, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which the Company or any of its Subsidiaries is subject or any judgment, order, writ, injunction, license or permit applicable to the Company or any of its Subsidiaries and (iv) do not conflict with any provision of the Organization Documents of, or any other agreement or other instrument binding upon, the Company or any of its Subsidiaries.

 

(c)                                  Enforceability of Obligations. This Agreement and the Credit Agreement as amended hereby constitute the legal, valid and binding obligations of the Company and each of its Subsidiaries party thereto, enforceable against the Company and each of its Subsidiaries party thereto, in accordance with their respective terms, except as limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, or other laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in equity or at law) and an implied covenant of good faith and fair dealing, and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefore may be brought.

 

§9.                               No Other Amendments or Waivers. Except as expressly provided in this Agreement, all of the terms, conditions and provisions of the Credit Agreement and the other Loan Documents shall remain the same. It is declared and agreed by each of the parties hereto that the Credit Agreement, as amended hereby, shall continue in full force and effect, and that this Agreement and the Credit Agreement shall be read and construed as one instrument.

 

§10.                        Execution in Counterparts. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf’ or “tif’) shall be effective as delivery of a manually executed counterpart of this Agreement.

 

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§11.                        Governing Law. THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

§12.                        Headings, etc. Headings or captions used in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof. This Agreement shall constitute a “Loan Document” under the Credit Agreement.

 

§13.                        Expenses. The Company agrees to pay to the Administrative Agent, on demand by the Administrative Agent, all reasonable out-of-pocket costs and expenses incurred or sustained by the Administrative Agent in connection with the preparation of this Agreement (including Attorney Costs of Morgan, Lewis & Bockius LLP).

 

[Signature pages follow]

 

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

 

	
 
    	
FOCUS   FINANCIAL PARTNERS, LLC,
    
	
 
    	
as Company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ James   Shanahan
    
	
 
    	
 
    	
Name: James   Shanahan
    
	
 
    	
 
    	
Title: Chief   Financial Officer
    

 

Signature Page to Amendment No. 2

 

 

Each of the undersigned Guarantors hereby (a) acknowledges and consents to the foregoing Agreement and the Company’s execution thereof; (b) ratifies and confirms all of their respective obligations and liabilities under the Loan Documents to which any of them is a party and ratifies and confirms that such obligations and liabilities extend to and continue in effect with respect to, and continue to guarantee and secure, as applicable, the Obligations of the Borrowers under the Credit Agreement; (c) acknowledges and confirms that the liens and security interests granted pursuant to the Loan Documents are and continue to be valid and perfected first priority liens and security interests (subject only to Permitted Liens) that secure all of the Obligations on and after the date hereof; (d) acknowledges and agrees that such Guarantor does not have any claim or cause of action against the Administrative Agent or any Lender (or any of its respective directors, officers, employees or agents); and (e) acknowledges, affirms and agrees that such Guarantor does not have any defense, claim, cause of action, counterclaim, offset or right of recoupment of any kind or nature against any of their respective obligations, indebtedness or liabilities to the Administrative Agent or any Lender.

 

AGREED AND ACKNOWLEDGED

 

SUBSIDIARY GUARANTORS:

 

ATLAS PRIVATE WEALTH MANAGEMENT, LLC

BAM ADVISOR SERVICES, LLC

BAM RISK MANAGEMENT, LLC

BEIRNE WEALTH CONSULTING SERVICES, LLC

BFSG, LLC

BRIDGEWATER WEALTH & FINANCIAL MANAGEMENT LLC

BUCKINGHAM ASSET MANAGEMENT, LLC

FIDELITY INDEPENDENT ADVISER NEWSLETTER, LLC

FLYNN FAMILY OFFICE LLC

FOCUS CANADA HOLDINGS, LLC

FOCUS INTERNATIONAL PARTNERS LLC

GRATUS CAPITAL, LLC

GW & WADE, LLC

HC INSURANCE SERVICES, LLC

HOYLECOHEN, LLC

INSTITUTIONAL AND FAMILY ASSET MANAGEMENT, LLC

 

 

	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its   Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief Financial   Officer
    	
 
    

 

Signature Page to Amendment No. 2

 

 

JFS RISK MANAGEMENT, LLC

JFS WEALTH ADVISORS, LLC

JOEL ISAACSON & CO., LLC

LAFLEUR & GODFREY LLC

LLBH PRIVATE WEALTH MANAGEMENT, LLC

LVW ADVISORS, LLC

MERRIMAN WEALTH MANAGEMENT, LLC

PETTINGA FINANCIAL ADVISORS LLC

RESNICK INVESTMENT ADVISORS, LLC

RETIREMENT ADVISORY GROUP, LLC

RETIREMENT BENEFIT CONSULTING SERVICES, LLC

RETIREMENT CONSULTING GROUP, LLC

RETIREMENT GROUP, LLC

SAPIENT PRIVATE WEALTH MANAGEMENT SERVICES, LLC

SENTINEL BENEFITS GROUP, LLC

SENTINEL FINANCIAL GROUP, LLC

STRATEGIC POINT HOLDINGS, LLC

STRATEGIC WEALTH PARTNERS GROUP, LLC

SUMMIT FINANCIAL WEALTH ADVISORS, LLC

TELEMUS CAPITAL, LLC

THE COLONY GROUP, LLC

THE FIDUCIARY GROUP, LLC

THE PORTFOLIO STRATEGY GROUP, LLC

VESTOR CAPITAL, LLC

WESPAC ADVISORS, LLC

WESPAC BENEFIT & INSURANCE SERVICES, LLC

WESPAC PLAN SERVICES, LLC

 

 

	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATLAS RISK MANAGEMENT, LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
ATLAS   PRIVATE WEALTH MANAGEMENT, LLC,
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Membe
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

Signature Page to Amendment No. 2

 

 

	
COLONY FUNDS, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
THE   COLONY GROUP, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
IFM INSURANCE SERVICES, LLC,
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
INSTITUTIONAL   AND FAMILY ASSET MANAGEMENT, LLC
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
STRATEGIC POINT INSURANCE SERVICES,   LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
STRATEGIC   POINT HOLDINGS, LLC
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
STRATEGIC POINT INVESTMENT ADVISORS,   LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
STRATEGIC   POINT HOLDINGS, LLC
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

Signature Page to Amendment No. 2

 

 

	
FOCUS OPERATING HOLDING CO.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

 

ACORN INSURANCE AGENCY, INC.

ARC ACQUISITION, LLC

FOCUS ADVISORS, LLC

FOCUS CONSULTING, LLC

FOCUS WEALTH ADVISORS, LLC

INSTITUTIONAL AND FAMILY ASSET MANAGEMENT INSURANCE, LLC

QUADRANT PRIVATE WEALTH MANAGEMENT, LLC

LJPR FINANCIAL ADVISORS, LLC

RELATIVE VALUE PARTNERS GROUP, LLC

SENTINEL BENEFITS GROUP, INC.

SENTINEL INSURANCE AGENCY, INC.

SENTINEL PENSION ADVISORS, INC.

STGP ACQUISITION, LLC

 

 

	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

 

VESTOR CAPITAL INSURANCE ADVISORS, LLC

 

	
By:
    	
VESTOR   CAPITAL, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

Signature Page to Amendment No. 2

 

 

TELEMUS INSURANCE SERVICES, LLC

 

	
By:
    	
TELEMUS   CAPITAL, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
FOCUS OPERATING, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
BANK OF   AMERICA N.A.,
    
	
 
    	
as   Administrative Agent, Lender, the L/C Issuer and the
    
	
 
    	
Swing Line   Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher   Busconi
    
	
 
    	
 
    	
Name:
    	
Christopher   Busconi
    
	
 
    	
 
    	
Title:
    	
SVP
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
THE   BANK OF TOKYO-MITSUBISHI, UFJ, LTD., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Oscar D. Cortez
    
	
 
    	
Name:
    	
O. Cortez
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
COMERICA   BANK, as a Lender,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Garth Gorrall
    
	
 
    	
Name:
    	
Garth Gorrall
    
	
 
    	
Title:
    	
Senior Vice   President
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
FIFTH   THIRD BANK, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lydia Altman
    
	
 
    	
Name:
    	
Lydia Altman
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
FIRSTBANK   FLORIDA, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jose Marla   Lacasa
    
	
 
    	
Name:
    	
Jose Marla   Lacasa
    
	
 
    	
Title:
    	
Senior Vice   President Corporate Banking
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
THE   HUNTINGTON NATIONAL BANK, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jared Shaner
    
	
 
    	
Name:
    	
Jared Shaner
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A., as a Lender,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kenise Henry   Larmond
    
	
 
    	
Name:
    	
Kenise Henry   Larmond
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
SUNTRUST   BANK, as a Lender,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Doug Kennedy
    
	
 
    	
Name:
    	
Doug Kennedy
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
TRISTATE   CAPITAL BANK, as a Departing Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark W.   Torie
    
	
 
    	
Name:
    	
Mark W. Torie
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
U.S.   BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Chrystian   Marin
    
	
 
    	
Name:
    	
Chrystian Marin
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
CITIZENS   BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David C.   Kilpatrick
    
	
 
    	
 
    	
Name:
    	
David C.   Kilpatrick
    
	
 
    	
 
    	
Title:
    	
Director
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
BANKUNITED,   N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gerard M.   McPartland
    
	
 
    	
 
    	
Name:
    	
Gerard M.   McPartland
    
	
 
    	
 
    	
Title:
    	
Senior Vice   President
    

 

Signature Page to Amendment No. 2

 

 

	
 
    	
BMO   HARRIS BANK N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Ferris
    
	
 
    	
 
    	
Name: Scott Ferris
    
	
 
    	
 
    	
Title: Managing   Director
    

 

Signature Page to Amendment No. 2

 

 

Schedule 2.01

Commitments and Applicable Percentages

 

	
 
    	
 
    	
Revolving Commitments
    	
 
    	
Term Loan Outstandings
    	
 
    	
Aggregate Amounts
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(c)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
New
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(f)
    	
 
    	
 
    	
 
    	
(h)
    	
 
    	
(i)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Revolving
    	
 
    	
 
    	
 
    	
 
    	
 
    	
New Term
    	
 
    	
 
    	
 
    	
Old
    	
 
    	
New
    	
 
    	
(j)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Commitment(
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Loan
    	
 
    	
 
    	
 
    	
Revolving
    	
 
    	
Revolving
    	
 
    	
Aggregate
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
after giving
    	
 
    	
 
    	
 
    	
 
    	
 
    	
outstandings
    	
 
    	
 
    	
 
    	
Commitment
    	
 
    	
Commitment
    	
 
    	
Increase or
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(b)
    	
 
    	
effect to
    	
 
    	
(d)
    	
 
    	
(e)
    	
 
    	
(after giving
    	
 
    	
(g)
    	
 
    	
plus Old
    	
 
    	
plus New
    	
 
    	
Decrease
    	
 
    	
(k)
    	
 
    
	
 
    	
 
    	
(a)
    	
 
    	
Incremental
    	
 
    	
Incremental
    	
 
    	
New
    	
 
    	
Old Term
    	
 
    	
effect to Term
    	
 
    	
New
    	
 
    	
Term Loan
    	
 
    	
Term Loan
    	
 
    	
(column (i)
    	
 
    	
New Total
    	
 
    
	
 
    	
 
    	
Old Revolving
    	
 
    	
Revolving
    	
 
    	
Revolving
    	
 
    	
Applicable
    	
 
    	
Loan
    	
 
    	
Loan
    	
 
    	
Applicable
    	
 
    	
Principal
    	
 
    	
Principal
    	
 
    	
minus column
    	
 
    	
Applicable
    	
 
    
	
Lender
    	
 
    	
Commitment
    	
 
    	
Commitment
    	
 
    	
Commitment)
    	
 
    	
Percentage
    	
 
    	
Outstanding
    	
 
    	
assignments)
    	
 
    	
Percentage
    	
 
    	
Outstanding
    	
 
    	
Outstanding
    	
 
    	
(h))
    	
 
    	
Percentage
    	
 
    
	
Bank of America, N.A.
    	
 
    	
$
    	
62,666,667
    	
 
    	
$
    	
33,213,429
    	
 
    	
$
    	
95,880,096
    	
 
    	
17.28
    	
%
    	
$
    	
16,466,667
    	
 
    	
$
    	
7,197,436
    	
 
    	
7.58
    	
%
    	
$
    	
79,133,334
    	
 
    	
$
    	
103,077,532
    	
 
    	
$
    	
23,944,198
    	
 
    	
15.86
    	
%
    
	
The Bank of Tokyo- Mitsubishi,   UFJ, LTD
    	
 
    	
54,833,333
    	
 
    	
15,258,334
    	
 
    	
70,091,667
    	
 
    	
12.63
    	
%
    	
4,908,333
    	
 
    	
4,908,333
    	
 
    	
5.17
    	
%
    	
59,741,666
    	
 
    	
75,000,000
    	
 
    	
15,258,334
    	
 
    	
11.54
    	
%
    
	
Comerica Bank
    	
 
    	
11,250,000
    	
 
    	
0
    	
 
    	
11,250,000
    	
 
    	
2.03
    	
%
    	
3,562,500
    	
 
    	
3,562,500
    	
 
    	
3.75
    	
%
    	
14,812,500
    	
 
    	
14,812,500
    	
 
    	
0
    	
 
    	
2.28
    	
%
    
	
Fifth Third Bank
    	
 
    	
37,500,000
    	
 
    	
16,375,000
    	
 
    	
53,875,000
    	
 
    	
9.71
    	
%
    	
11,875,000
    	
 
    	
11,875,000
    	
 
    	
12.50
    	
%
    	
49,375,000
    	
 
    	
65,750,000
    	
 
    	
16,375,000
    	
 
    	
10.12
    	
%
    
	
Firstbank Florida
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0.00
    	
%
    	
9,500,000
    	
 
    	
19,500,000
    	
 
    	
20.53
    	
%
    	
9,500,000
    	
 
    	
19,500,000
    	
 
    	
10,000,000
    	
 
    	
3.00
    	
%
    
	
The Huntington National   Bank
    	
 
    	
15,000,000
    	
 
    	
7,750,000
    	
 
    	
22,750,000
    	
 
    	
4.10
    	
%
    	
4,750,000
    	
 
    	
4,750,000
    	
 
    	
5.00
    	
%
    	
19,750,000
    	
 
    	
27,500,000
    	
 
    	
7,750,000
    	
 
    	
4.23
    	
%
    
	
JPMorgan Chase Bank, N.A.
    	
 
    	
37,500,000
    	
 
    	
10,000,000
    	
 
    	
47,500,000
    	
 
    	
8.56
    	
%
    	
11,875,000
    	
 
    	
11,875,000
    	
 
    	
12.50
    	
%
    	
49,375,000
    	
 
    	
59,375,000
    	
 
    	
10,000,000
    	
 
    	
9.13
    	
%
    
	
SunTrust Bank
    	
 
    	
58,750,000
    	
 
    	
26,172,468
    	
 
    	
84,922,468
    	
 
    	
15.30
    	
%
    	
15,437,500
    	
 
    	
15,437,500
    	
 
    	
16.25
    	
%
    	
74,187,500
    	
 
    	
100,359,968
    	
 
    	
26,172,468
    	
 
    	
15.44
    	
%
    
	
Tristate Capital Bank
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0
    	
 
    	
0.00
    	
%
    	
9,500,000
    	
 
    	
0
    	
 
    	
0.00
    	
%
    	
9,500,000
    	
 
    	
0
    	
 
    	
(9,500,000
    	
)
    	
0.00
    	
%
    
	
U.S. Bank, N.A.
    	
 
    	
22,500,000
    	
 
    	
0
    	
 
    	
22,500,000
    	
 
    	
4.05
    	
%
    	
7,125,000
    	
 
    	
7,125,000
    	
 
    	
7.50
    	
%
    	
29,625,000
    	
 
    	
29,625,000
    	
 
    	
0
    	
 
    	
4.56
    	
%
    
	
BMO Harris Bank N.A.
    	
 
    	
N/A
    	
 
    	
95,000,000
    	
 
    	
95,000,000
    	
 
    	
17.12
    	
%
    	
N/A
    	
 
    	
0
    	
 
    	
0.00
    	
%
    	
N/A
    	
 
    	
95,000,000
    	
 
    	
95,000,000
    	
 
    	
14.62
    	
%
    
	
Citizens Bank, N.A.
    	
 
    	
N/A
    	
 
    	
34,153,846
    	
 
    	
34,153,846
    	
 
    	
6.15
    	
%
    	
N/A
    	
 
    	
5,846,154
    	
 
    	
6.15
    	
%
    	
N/A
    	
 
    	
40,000,000
    	
 
    	
40,000,000
    	
 
    	
6.15
    	
%
    
	
BankUnited, N.A.
    	
 
    	
N/A
    	
 
    	
17,076,923
    	
 
    	
17,076,923
    	
 
    	
3.08
    	
%
    	
N/A
    	
 
    	
2,923,077
    	
 
    	
3.08
    	
%
    	
N/A
    	
 
    	
20,000,000
    	
 
    	
20,000,000
    	
 
    	
3.08
    	
%
    
	
Totals
    	
 
    	
$
    	
300,000,000
    	
 
    	
$
    	
255,000,000
    	
 
    	
$
    	
555,000,000
    	
 
    	
100
    	
%
    	
$
    	
95,000,000
    	
 
    	
$
    	
95,000,000
    	
 
    	
100
    	
%
    	
$
    	
395,000,000
    	
 
    	
$
    	
650,000,000
    	
 
    	
$
    	
255,000,000
    	
 
    	
100
    	
%Exhibit 10.8

 

EXECUTION COPY

 

AMENDMENT NO. 3 TO

AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT

 

This AMENDMENT NO. 3 TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT, dated as of December 18, 2015 (the “Agreement”), is entered into by and among (a) Focus Financial Partners, LLC (the “Company”), a Delaware limited liability company, (b) the Lenders (as defined below) and (c) Bank of America, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and as a Lender, L/C Issuer, and Swing Line Lender.

 

WHEREAS, the Company, certain Subsidiaries of the Company party thereto from time to time pursuant to Section 2.14 thereof (each a “Designated Borrower” and, together with the Company, collectively, the “Borrowers” and each individually a “Borrower”), each lender from time to time party thereto (the “Lenders” and each individually, a “Lender”), and the Administrative Agent are parties to that certain Amended and Restated Revolving Credit and Term Loan Agreement, dated as of December 10, 2013 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”; capitalized terms used but not otherwise defined herein shall have the same meanings ascribed to them in the Credit Agreement);

 

WHEREAS, the Company has requested (a) an increase in the Term Loan in an amount equal to $76,665,775.00 (such increase in the Term Loan, the “Third Amendment Incremental Term Loan” and the commitment of Lenders to provide such loan, the “Third Amendment Incremental Term Loan Commitments”);

 

WHEREAS, after giving effect to the Third Amendment Incremental Term Loan, the principal amount of the Term Loan shall equal $169,165,775; and

 

WHEREAS, each Third Amendment Incremental Term Loan Lender (as defined below) has agreed to provide a Third Amendment Incremental Term Loan Commitment, subject to the terms and conditions set forth herein, and the Company, the Administrative Agent and the Lenders have agreed, subject to the terms and conditions set forth herein, to amend certain other terms and provisions of the Credit Agreement each as described below;

 

NOW, THEREFORE, the Administrative Agent and the undersigned Lenders have agreed, subject to the terms and conditions set forth herein, to amend certain terms and provisions of the Credit Agreement as described below:

 

§1.          Terms of the Third Amendment Incremental Term Loan Commitments. Pursuant to Section 2.16(a) of the Credit Agreement, each Lender with a Third Amendment Incremental Term Loan Commitment provided for under column (d) of Schedule 2.01 hereto (each an “Third Amendment Incremental Term Loan Lender”) agrees to provide a Third Amendment Incremental Term Loan on the Third Amendment Effective Date in the amount set forth opposite its name under such column, and such Third Amendment Incremental Term Loan shall be added to and constitute a part of the Term Loan for all purposes of the Credit Agreement and the Loan Documents, having the same terms and conditions applicable to the existing Term Loan as set forth in the Loan Documents.

 

§2.          Amendments to Credit Agreement. Upon the Third Amendment Effective Date, the Credit Agreement shall be automatically amended as follows without any further action required by any party hereto by:

 

(a)           adding in the appropriate alphabetical order the following new definitions in Section 1.01 thereof:

 

 

““Initial Term Loan Lenders” means the Lenders holding a portion of the Initial Term Loan.”

 

““Initial Term Loan” means the Term Loans made on the Closing Date.”

 

““Public Company Costs” means costs relating to compliance with the laws and regulations applicable to companies with equity or debt securities held by the public, the rules of national securities exchange companies with listed debt or equity securities, directors’ or managers’ compensation, fees, and expense reimbursement, costs relating to investor relations, shareholder meetings and reports to shareholders or debtholders, directors’ and officers’ insurance and other executive costs, legal, accounting, auditing, tax and other professional fees, and listing fees.”

 

““Specified Acquisition” means that certain acquisition described to the Lenders on November 13, 2015.”

 

““Third Amendment Effective Date” means December 18, 2015.”

 

““Third Amendment Incremental Term Loan Lenders” means the Lenders holding the portion of the Term Loan consisting of the Third Amendment Incremental Term Loan.”

 

““Third Amendment Incremental Term Loan” means the Term Loans made on the Third Amendment Effective Date.”

 

(b)           amending and restating the definition of “Acquired Party EBITDA” in Section 1.01 in its entirety as follows:

 

“Acquired Party EBITDA” means for any Measurement Period (i) with respect to each Permitted Acquisition consummated on or prior to December 31, 2015 (other than (A) any Acquisition consisting solely of the acquisition of a Book of Business or a Permitted Minority Interest or (B) a Permitted Acquisition of the type described in either clause (iv)(a) or clause (v) below) during such Measurement Period, as determined on a pro forma basis as if such Permitted Acquisition had occurred on the first day of such Measurement Period, the product of EBITDAPC multiplied by the percentage of EBITDAPC purchased by the Company or other applicable Loan Party in connection with such Permitted Acquisition, (ii) with respect to each Permitted Acquisition during such Measurement Period consisting of the acquisition of a Book of Business, as determined on a pro forma basis as if such Permitted Acquisition had occurred on the first day of such Measurement Period, the Book of Business EBITDA, (iii) with respect to each Permitted Acquisition consisting of the acquisition of a Permitted Minority Interest during such Measurement Period, Permitted Minority Interest Historical Profits for such Measurement Period or (iv) with respect to each (a) Permitted Acquisition of an RIA under the “Focus Independence” program (formerly known as the “Focus Connections” program) and (b) Permitted Acquisition consummated after December 31, 2015 (in the case of each of clause (a) and (b), other than a Permitted Acquisition of a Book of Business or Permitted Minority Interest or an acquisition of the type described in clause (v) below), in each case, during such Measurement Period, the preferential earnings described in the relevant acquisition agreement, management agreement or other related agreements executed in connection with the closing of such Permitted Acquisition or (v) with respect to each Permitted Acquisition (other than an Acquisition of a Book of Business or Permitted Minority Interest), directly or indirectly, by a Subsidiary of the

 

2

 

Company that is a “partner firm” (as identified to the Administrative Agent by the Company) during such Measurement Period, as determined on a pro forma basis as if such Permitted Acquisition had occurred on the first day of such Measurement Period, EBITDAPC of such acquired entity net of any management fees payable to the Advisor Group of such partner firm pursuant to the applicable Advisor Group Documents.”

 

(c)           amending and restating the pricing grid in its entirety in the definition of “Applicable Rate” in Section 1.01 as follows:

 

Applicable Rate

 

	
 
    	
 
    	
 
    	
 
    	
Applicable Rate
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
for LIBOR Loans/
    	
 
    	
Applicable Rate
    	
 
    	
 
    	
 
    
	
Pricing
    	
 
    	
Consolidated Total
    	
 
    	
Letter of Credit
    	
 
    	
for Base Rate
    	
 
    	
 
    	
 
    
	
Level
    	
 
    	
Leverage Ratio
    	
 
    	
Fees
    	
 
    	
Loans
    	
 
    	
Commitment Fee
    	
 
    
	
I
    	
 
    	
<   2.00 to 1.00
    	
 
    	
2.25
    	
%
    	
0.75
    	
%
    	
0.250
    	
%
    
	
II
    	
 
    	
>   2.00 to 1.00 but
   < 2.50 to 1.00
    	
 
    	
2.50
    	
%
    	
1.00
    	
%
    	
0.300
    	
%
    
	
III
    	
 
    	
>   2.50 to 1.00 but
   < 3.00 to 1.00
    	
 
    	
2.75
    	
%
    	
1.25
    	
%
    	
0.375
    	
%
    
	
IV
    	
 
    	
>   3.00 to 1.00 but
   < 3.50 to 1.00
    	
 
    	
3.00
    	
%
    	
1.25
    	
%
    	
0.450
    	
%
    
	
V
    	
 
    	
>   3.50 to 1.00 but
   < 4.00 to 1.00
    	
 
    	
3.25
    	
%
    	
1.50
    	
%
    	
0.500
    	
%
    
	
VI
    	
 
    	
>   4.00 to 1.00
    	
 
    	
3.50
    	
%
    	
1.75
    	
%
    	
0.600
    	
%
    

 

(d)           amending and restating the second to last sentence of the definition of “Applicable Rate” in Section 1.01 as follows:

 

“The Applicable Rate in effect from the Third Amendment Effective Date up to January 4, 2016 shall be determined based upon Pricing Level IV (as set forth in the definition of “Applicable Rate” in this Agreement immediately prior to the Third Amendment Effective Date) and the Applicable Rate in effect from January 4, 2016 through the first Business Day immediately following the date on which a Compliance Certificate with respect to the Measurement Period ended March 31, 2016 is delivered to the Administrative Agent pursuant to Section 6.02(a) shall be determined based upon Pricing Level VI.”

 

(e)           amending the definition of “Consolidated EBITDA” in Section 1.01 as follows:

 

(i)            by replacing the reference to $1,000,000 in clause (a)(viii) thereof with a reference to $2,000,000;

 

3

 

(ii)           by replacing the reference to $300,000 in clause (a)(xii) thereof with a reference to $500,000;

 

(iii)          by adding the following as a new clause (xviii) at the end of clause (a) thereof:

 

“, plus (xviii) Public Company Costs to the extent funded by a Restricted Payment by the Company that is a Permitted Holdco Distribution permitted under Section 7.06(d), provided, that the amount referred to in this clause (xviii) shall not, in the aggregate, exceed $5,000,000 for any Measurement Period,”

 

(f)            amending the definition of “Consolidated Total Funded Debt” in Section 1.01 by replacing the reference in clause (b) thereof to $10,000,000 with a reference to $25,000,000.

 

(g)           amending the definition of “Federal Funds Rate” in Section 1.01 by deleting the phrase “arranged by Federal funds brokers on such day,” therein.

 

(h)           amending the definition of “Foreign Borrower Sublimit” in Section 1.01 by replacing the reference contained therein to $5,000,000 with a reference to $10,000,000.

 

(i)            amending the definition of “Permitted Acquisition Conditions” in Section 1.01 as follows:

 

(i)            clause (g) thereof shall be amended and restated in its entirety as follows:

 

“(g)         not less than five (5) Business Days prior to consummation of such Acquisition, the Company shall have delivered to the Administrative Agent:

 

(i)            a brief business description of such proposed Acquisition (which may be delivered to the Administrative Agent via e-mail) and in the event the Acquired Party EBITDA with respect to the proposed Acquisition is in excess of $7,500,000, (A) true and complete copies of the then most current drafts of the Acquisition Documentation for such Acquisition, (B) copies of historical financial statements then available to the Company relating to the entities or businesses that are the subject of such Acquisition and (C) updated financial projections revised to reflect on a Pro Forma Basis such Acquisition; and

 

(ii)           in the event the Acquired Party EBITDA with respect to the proposed Acquisition is in excess of $7,500,000, (A) a copy of the balance sheet of the Acquired Party and the related statements of income and cash flow (if such cash flow statements are available) for the immediately preceding four (4) Fiscal Quarter or twelve month period for which financial statements are then available, all in reasonable detail, reviewed by a Public Accounting Firm, subject to clause (k) below, in preparation of a due diligence report in form and scope reasonably satisfactory to the Administrative Agent and certified by the Company, (B) evidence reasonably satisfactory to the Administrative Agent that the Acquired Party has a positive EBITDAPC and operating income (subject to adjustment for certain items in the discretion of the Administrative Agent) for the immediately preceding four (4) Fiscal Quarter period (or,

 

4

 

in the event that financial statements are not available for the Fiscal Quarter ending immediately prior to such Acquisition, for the four (4) Fiscal Quarter period ending immediately prior to such Fiscal Quarter) and (C) the EBITDAPC calculations, which calculations shall be in form and substance reasonably satisfactory to the Administrative Agent; provided, however, in the event that no historical financial results are available with respect to the Acquired Party, such calculations shall be made with reference to reasonable estimates of such past performance made by the Company based on existing data and other available information, such estimates to be reasonably agreed upon by the Administrative Agent;”

 

(ii)           clause (j) thereof shall be amended by replacing the reference contained therein to $50,000,000 with a reference to $60,000,000.

 

(iii)          clause (k) thereof shall be amended by replacing the reference contained therein to $3,000,000 with a reference to $7,500,000.

 

(iv)          clause (n) thereof shall be amended by inserting the phrase “in the event the Acquired Party EBITDA with respect to the proposed Acquisition is in excess of $7,500,000” at the beginning thereof.

 

(j)            amending the definition of “Permitted Book of Business Acquisition Conditions” in Section 1.01 by replacing the references in each of clauses (b) and (g) thereof to $1,000,000 with a reference to $2,500,000.

 

(k)           amending the definition of “Permitted Minority Interest Acquisition Conditions” in Section 1.01 by replacing the reference in clause (g) thereof to $20,000,000 with a reference to $40,000,000.

 

(l)            amending and restating the definition of “Public Offering Transaction” in Section 1.01 in its entirety as follows:

 

““Public Offering Transaction” means (i) the acquisition of Equity Interests of the Company by a Permitted Holdco or (ii) the conversion of the Company to a corporation, each in connection with a Public Offering; provided that, in the case of any transaction pursuant to clause (i) of this definition, within 10 Business Days following the consummation of any such Public Offering Transaction, (x) all of the Equity Interests of the Company owned by the Permitted Holdco shall be pledged to the Administrative Agent and (y) the Permitted Holdco shall become a Guarantor pursuant to a Guaranty in form and substance reasonably satisfactory to the Administrative Agent.”

 

(m)          amending and restating the definition of “Term Loan” in Section 1.01 as follows:

 

““Term Loan” means an advance made by any Term Lender under the Term Facility, including the Initial Term Loan and the Third Amendment Incremental Term Loan.”

 

(n)           amending and restating Section 2.05(b)(v) in its entirety as follows:

 

“(v)    Equity Proceeds:

 

5

 

(i)            in connection with any Equity Cure by the Company, within one Business Day of the Company’s receipt of any net cash proceeds related thereto, the Borrowers shall prepay the Loans in an amount equal to 66% of the amount of such net cash proceeds; and

 

(ii)           within three (3) Business Days of the Company’s receipt of the Net Cash Proceeds of any initial Public Offering, the Borrowers shall prepay Loans in an amount so that, after giving effect to such prepayment, on a pro forma basis, the Consolidated Total Leverage Ratio does not exceed 3.50 to 1.00.”

 

(o)           amending and restating Section 2.05(b)(vi) in its entirety as follows:

 

“(vi) Application of Payments. Each prepayment of Loans pursuant to the foregoing provisions of Section 2.05(b)(i) through (v) shall be applied, first, pro-rata to the Term Loans, to the principal repayment installments of the Term Loans on a pro-rata basis for all such principal repayment installments, including, without limitation, the final principal repayment installment on the Maturity Date and, second, to the Revolving Facility (with no corresponding reduction in Revolving Commitments) in the manner set forth in clause (vii) of Section 2.05(b); provided that the prepayment of Loans pursuant to Section 2.05(b)(v)(ii) shall be applied first to the Revolving Facility, and second to the Term Loans, in each case in the manner provided for above. Subject to Section 2.15, such prepayments shall be paid to the Lenders in accordance with their respective Applicable Percentages in respect of the relevant Facilities.”

 

(p)           amending and restating Section 2.07(a) in its entirety as follows:

 

“(a)         Term Loans. The Borrowers shall repay the Term Loans as follows:

 

(i)            to the Initial Term Loan Lenders on each January 25th, April 25, July 25th and October 25th occurring on and after July 25, 2014 and prior to the Maturity Date, in each case, in an amount equal to 1.25% of the initial principal amount of the Initial Term Loans made on the Closing Date;

 

(ii)           to the Third Amendment Incremental Term Loan Lenders on each January 25th, April 25, July 25th and October 25th occurring on and after July 25, 2016 and prior to the Maturity Date, in each case, in an amount equal to 1.25% of the initial principal amount of the Third Amendment Incremental Term Loans made on the Third Amendment Effective Date; and

 

(iii)          the final principal repayment installment of the Term Loans shall be repaid on the Maturity Date and in any event shall be in an amount equal to the aggregate principal amount of all such Term Loans outstanding on such date;

 

provided that (A) such amounts in each case shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.05, unless accelerated sooner pursuant to Section 8.02; (B) if any principal repayment installment to be made by the Borrowers (other than

 

6

 

principal repayment installments on Eurocurrency Rate Loans) shall come due on a day other than a Business Day, such principal repayment installment shall be due on the next succeeding Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be and (C) if any principal repayment installment to be made by the Borrowers on a Eurocurrency Rate Loan shall come due on a day other than a Business Day, such principal repayment installment shall be extended to the next succeeding Business Day unless the result of such extension would be to extend such principal repayment installment into another calendar month, in which event such principal repayment installment shall be due on the immediately preceding Business Day.”

 

(q)           replacing the phrase “in an aggregate amount not to exceed $350,000,000 after the Second Amendment Effective Date for all such Incremental Facilities” in Section 2.16(a) thereof with “in an aggregate amount not to exceed $350,000,000 after the Third Amendment Effective Date for all such Incremental Facilities”.

 

(r)            replacing the “;” at the end of Section 6.01(a) with the following text “; provided that following a Public Offering of the Equity Interests of Permitted Holdco, (x) the Company shall cause Permitted Holdco to deliver (x) the audited consolidated financials referenced in the foregoing clause (i) for Permitted Holdco, the Company and its Subsidiaries (in lieu of delivery of audited consolidated audited for the Company and its Subsidiaries) and (y) the unaudited consolidating financials referenced in the foregoing clause (ii) for Permitted Holdco, the Company and its Subsidiaries (in lieu of delivery of unaudited consolidating financials for the Company and its Subsidiaries);”.

 

(s)            amending and restating Section 6.01(c) in its entirety as follows:

 

“(c) as soon as available, but in any event not later than February 15 of each Fiscal Year of the Company, an annual budget and forecast prepared by the senior management of the Company, and approved by the board of directors or managers of the Company, in form and detail reasonably satisfactory to the Administrative Agent and Required Lenders, which shall include consolidated balance sheet, statement of income or operations and statement of cash flows of the Company and its Subsidiaries for the next Fiscal Year, such annual budget and forecast to be on a quarterly basis.”

 

(t)            replacing the phrase “(and in any event within five (5) days)” in the lead-in to Section 6.14(b) thereof with “(and in any event within (x) thirty (30) days or, in the case of any newly created or formed Subsidiary (other than any Subsidiary described in clause (y)) and (y) within forty five (45) days of such creation or formation so long as such Subsidiary has no assets, liabilities, operations and is otherwise inactive during such period)”.

 

(u)           amending and restating the lead-in language in Section 6.14(d) in its entirety as follows:

 

“(d)         If and whenever any Public Offering Transaction is consummated, to the extent that the Permitted Holdco has been created or formed in connection therewith, within 10 Business Days after the consummation of such Public Offering Transaction:”

 

(v)           amending Section 7.02 as follows:

 

7

 

(i)            replacing the references to $20,000,000 in each of clauses (k) and (l) of Section 7.02 with references to $25,000,000.

 

(ii)           deleting the word “and” at the end of clause (l) thereof, replacing the “.” at the end of clause (m) thereof with the word “and” and inserting the following as a new clause (n):

 

“(n)         the Specified Acquisition; provided, that (i) immediately before and immediately after giving effect to such Acquisition, no Default or Event of Default shall be continuing or result therefrom and (ii) the conditions set forth in clauses (a)-(i) and (k)-(n) of the definition of “Permitted Acquisition Conditions” shall have been satisfied.”

 

(w)          amending Section 7.06 by deleting the word “and” at the end of clause (g)(iii) thereof, replacing the “.” at the end of clause (h) thereof with the word “and” and inserting the following as new clause (i):

 

“(i)          other Restricted Payments; provided that the Consolidated Total Leverage Ratio of the Company and its Subsidiaries, after giving pro forma effect to any such Restricted Payment and any related incurrence of Indebtedness, is no greater than 3.50:1.00.”

 

(x)           amending and restating clause (b) of Section 7.10 (Financial Covenants) of the Credit Agreement in its entirety as follows:

 

“(b)         Maximum Consolidated Total Leverage Ratio. Commencing with the Measurement Period ending December 31, 2015, (i) to the extent that a Public Offering has been consummated as of the last day of any Measurement Period, permit the Consolidated Total Leverage Ratio of the Company and its Subsidiaries to be greater than 4.00 to 1.00 as of last day of such Measurement Period and (ii) to the extent that a Public Offering has not been consummated as of the last day of any Measurement Period, permit the Consolidated Total Leverage Ratio of the Company and its Subsidiaries as of the end of any Measurement Period to be greater than the ratio set forth below opposite such Measurement Period:

 

	
Measurement Period Ending
    	
 
    	
Consolidated Total Leverage Ratio
    
	
December 31, 2015
    	
 
    	
4.75 : 1.00
    
	
March 31, 2016
    	
 
    	
5.25 : 1.00
    
	
June 30, 2016
    	
 
    	
5.25 : 1.00
    
	
September 30, 2016
    	
 
    	
5.00 : 1.00
    
	
December 31, 2016
    	
 
    	
5.00 : 1.00
    
	
March 31, 2017
    	
 
    	
4.75 : 1.00
    
	
June 30, 2017
    	
 
    	
4.50 : 1.00
    

 

8

 

	
September 30, 2017
    	
 
    	
4.50 : 1.00
    
	
December 31, 2017
    	
 
    	
4.25 : 1.00
    
	
March 31, 2018 and   thereafter
    	
 
    	
3.75 : 1.00
    

 

(y)           amending and restating clause (c) of Section 7.10 (Financial Covenants) of the Credit Agreement in its entirety as follows:

 

“(c)         Maximum Consolidated Secured Leverage Ratio. Commencing with the Measurement Period ending December 31, 2015, (i) to the extent that a Public Offering has been consummated as of the last day of any Measurement Period, permit the Consolidated Secured Leverage Ratio of the Company and its Subsidiaries to be greater than 4.00 to 1.00 as of last day of such Measurement Period and (ii) to the extent that a Public Offering has not been consummated as of the last day of any Measurement Period, permit the Consolidated Secured Leverage Ratio of the Company and its Subsidiaries as of the end of any Measurement Period to be greater than the ratio set forth below opposite such Measurement Period:

 

	
Measurement Period Ending
    	
 
    	
Consolidated Secured Leverage Ratio
    
	
December 31, 2015
    	
 
    	
4.50 : 1.00
    
	
March 31, 2016
    	
 
    	
5.25 : 1.00
    
	
June 30, 2016
    	
 
    	
5.25 : 1.00
    
	
September 30, 2016
    	
 
    	
5.00 : 1.00
    
	
December 31, 2016
    	
 
    	
4.75 : 1.00
    
	
March 31, 2017
    	
 
    	
4.50 : 1.00
    
	
June 30, 2017
    	
 
    	
4.25 : 1.00
    
	
September 30, 2017
    	
 
    	
4.25 : 1.00
    
	
December 31, 2017
    	
 
    	
4.00 : 1.00
    
	
March 31, 2018 and   thereafter
    	
 
    	
3.50 : 1.00
    

 

(z)           amending and restating the last sentence of Section 9.06(c) in its entirety as follows:

 

“After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 10.04 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them (i) while the retiring or removed Administrative

 

9

 

Agent was acting as Administrative Agent and (ii) after such resignation or removal for as long as any of them continues to act in any capacity hereunder or under the other Loan Documents, including (a) acting as collateral agent or otherwise holding any collateral security on behalf of any of the Lenders and (b) in respect of any actions taken in connection with transferring the agency to any successor Administrative Agent.”

 

(aa)         amending Section 10.06(d) by replacing the text “acting solely for this purpose as an agent of the Borrowers” with the text “acting solely for this purpose as a non-fiduciary agent of the Borrowers”.

 

(bb)         amending and restating Schedule 2.01 in its entirety in the form of Schedule 2.01 attached hereto.

 

(cc)         amending and restating Exhibit D in its entirety in the form of Schedule 3 attached hereto.

 

§3.       Waiver. The Administrative Agent and the Lenders party hereto hereby waive the requirement for the Company to make any breakage payments pursuant to Section 3.05 of the Credit Agreement in connection with the continuation of any Eurodollar Rate Loan (and the breakage of any outstanding Eurocurrency Rate contract) prior to the last day of the relevant Interest Period applicable thereto on or about the Third Amendment Effective Date.

 

§4.       Conditions. The effectiveness of this Agreement is subject to the satisfaction of the following conditions precedent (the date such conditions are satisfied, the “Third Amendment Effective Date”):

 

(a)           Documentation. The Administrative Agent shall have received on or prior to the date hereof each of the following in form and substance reasonably satisfactory to the Administrative Agent:

 

(i)            this Agreement duly executed by the Company, the other Loan Parties and each Lender;

 

(ii)           a duly executed legal opinion of Weil, Gotshal & Manges LLP, counsel to the Loan Parties, in form and substance substantially consistent with the opinion of Weil, Gotshal & Manges LLP delivered to the Administrative Agent on the Closing Date;

 

(iii)          a certificate of a Responsible Officer of the Company certifying as to the satisfaction of the conditions set forth in Sections 2.16(c)(i)(A) and (B) of the Credit Agreement; and

 

(iv)          a certificate of a Responsible Officer of each Loan Party (i) certifying to and attaching the Organization Documents of such Loan Party (or if applicable, at the option of such Loan Party, certifying that there have been no changes to such Organization Documents since the later of (A) the Closing Date and (B) the date on which such entity became a Loan Party) and (ii) certifying and attaching copies of the resolutions adopted by each Loan Party approving and authorizing the execution, delivery and performance of this Agreement.

 

(b)           Fees and Expenses. The Company shall have paid (i) to the Administrative Agent, for account of each Lender providing a signature page to this Agreement by 5:00 p.m. (New York

 

10

 

time) on December 17, 2015 (each such Lender, a “Consenting Lender”) an amendment fee in an amount equal to 0.12% of such Consenting Lender’s outstanding Term Loans and Revolving Commitments outstanding immediately prior to the Third Amendment Effective Date, (ii) to the Administrative Agent, for account of each Lender, a closing fee in the amount of 0.50% times such Lender’s Aggregate Increase in Exposure (as defined below), and (iii) all fees and expenses that are due and payable on or prior to the Third Amendment Effective Date (including, without limitation, Attorney Costs of Morgan, Lewis & Bockius LLP that have been previously invoiced to the Company). For purposes of this clause (b), “Aggregate Increase in Exposure” means the aggregate increase in exposure for each Lender, if any, as provided for in column (h) of Schedule 2.01 hereto.

 

§5.       Affirmation of the Company and Guarantors. The Company hereby affirms its absolute and unconditional promise to pay to each Lender, the L/C Issuer, the Swing Line Lender and the Administrative Agent the Loans, the L/C Obligations and all other amounts due under the Notes, the Credit Agreement as amended hereby and the other Loan Documents, at the times and in the amounts provided for therein. The Company and each of the Guarantors hereby affirms its guaranty of the Obligations in accordance with the provisions of the applicable Guaranty. Each of the Company and the Guarantors confirms and agrees that (i) the obligations of the Borrowers to the Lenders, the Swing Line Lender, the L/C Issuer and the Administrative Agent under the Credit Agreement as amended hereby are secured by and entitled to the benefits of the Collateral Documents and (ii) all references to the term “Credit Agreement” in the Collateral Documents and the other Loan Documents shall hereafter refer to the Credit Agreement as amended hereby.

 

§6.       Representations and Warranties. The Company hereby represents and warrants to the Lenders, the Administrative Agent and the L/C Issuer as follows:

 

(a)           Representations and Warranties in Credit Agreement. The representations and warranties of the Company contained in Article 5 of the Credit Agreement and the other Loan Documents are true and correct in all material respects (except for representations and warranties that are already qualified as to materiality, which are instead true and correct in all respects) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they were true and correct in all material respects (except for representations and warranties that are already qualified as to materiality, which were instead true and correct) as of such earlier date.

 

(b)           Authority, No Conflicts, Etc. The execution, delivery and performance of this Agreement and all related documents and the consummation of the transactions contemplated hereby and thereby (i) are within the corporate (or the equivalent company) authority of the Company and its Subsidiaries, (ii) have been duly authorized by all necessary corporate (or the equivalent company) proceedings, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which the Company or any of its Subsidiaries is subject or any judgment, order, writ, injunction, license or permit applicable to the Company or any of its Subsidiaries and (iv) do not conflict with any provision of the Organization Documents of, or any other agreement or other instrument binding upon, the Company or any of its Subsidiaries.

 

(c)           Enforceability of Obligations. This Agreement and the Credit Agreement as amended hereby constitute the legal, valid and binding obligations of the Company and each of its Subsidiaries party thereto, enforceable against the Company and each of its Subsidiaries party thereto, in accordance with their respective terms, except as limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, or other laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in equity or at law) and an implied covenant of good faith and fair dealing, and except to the extent that availability of the remedy of specific performance or

 

11

 

injunctive relief is subject to the discretion of the court before which any proceeding therefore may be brought.

 

§7.       No Other Amendments or Waivers. Except as expressly provided in this Agreement, all of the terms, conditions and provisions of the Credit Agreement and the other Loan Documents shall remain the same. It is declared and agreed by each of the parties hereto that the Credit Agreement, as amended hereby, shall continue in full force and effect, and that this Agreement and the Credit Agreement shall be read and construed as one instrument.

 

§8.       Execution in Counterparts. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf’ or “tif’) shall be effective as delivery of a manually executed counterpart of this Agreement.

 

§9.       Governing Law. THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

§10.     Headings, etc. Headings or captions used in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof. This Agreement shall constitute a “Loan Document” under the Credit Agreement.

 

§11.     Expenses. The Company agrees to pay to the Administrative Agent, on demand by the Administrative Agent, all reasonable out-of-pocket costs and expenses incurred or sustained by the Administrative Agent in connection with the preparation of this Agreement (including Attorney Costs of Morgan, Lewis & Bockius LLP).

 

[Signature pages follow]

 

12

 

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

 

 

	
 
    	
FOCUS   FINANCIAL PARTNERS, LLC,
    
	
 
    	
as Company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James Shanahan
    
	
 
    	
 
    	
Name: James   Shanahan
    
	
 
    	
 
    	
Title: Chief   Financial Officer
    

 

Signature Page to Amendment No. 3 to Amended and Restated Revolving Credit and Term Loan Agreement

 

 

Each of the undersigned Guarantors hereby (a) acknowledges and consents to the foregoing Agreement and the Company’s execution thereof; (b) ratifies and confirms all of their respective obligations and liabilities under the Loan Documents to which any of them is a party and ratifies and confirms that such obligations and liabilities extend to and continue in effect with respect to, and continue to guarantee and secure, as applicable, the Obligations of the Borrowers under the Credit Agreement; (c) acknowledges and confirms that the liens and security interests granted pursuant to the Loan Documents are and continue to be valid and perfected first priority liens and security interests (subject only to Permitted Liens) that secure all of the Obligations on and after the date hereof; (d) acknowledges and agrees that such Guarantor does not have any claim or cause of action against the Administrative Agent or any Lender (or any of its respective directors, officers, employees or agents); and (e) acknowledges, affirms and agrees that such Guarantor does not have any defense, claim, cause of action, counterclaim, offset or right of recoupment of any kind or nature against any of their respective obligations, indebtedness or liabilities to the Administrative Agent or any Lender.

 

AGREED AND ACKNOWLEDGED

 

SUBSIDIARY GUARANTORS:

 

ATLAS PRIVATE WEALTH MANAGEMENT, LLC

BAM ADVISOR SERVICES, LLC

BAM RISK MANAGEMENT, LLC

BEIRNE WEALTH CONSULTING SERVICES, LLC

BFSG, LLC

BRIDGEWATER WEALTH & FINANCIAL MANAGEMENT LLC

BUCKINGHAM ASSET MANAGEMENT, LLC

FIDELITY INDEPENDENT ADVISER NEWSLETTER, LLC

FLYNN FAMILY OFFICE LLC

FOCUS CANADA HOLDINGS, LLC

FOCUS INTERNATIONAL PARTNERS LLC

FORT PITT CAPITAL GROUP, LLC

GRATUS CAPITAL, LLC

GW & WADE, LLC

HC INSURANCE SERVICES, LLC

HOYLECOHEN, LLC

INSTITUTIONAL AND FAMILY ASSET MANAGEMENT, LLC

 

 

	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its   Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

Signature Page to Amendment No. 3 to Amended and Restated Revolving Credit and Term Loan Agreement

 

 

JFS RISK MANAGEMENT, LLC

JFS WEALTH ADVISORS, LLC

JOEL ISAACSON & CO., LLC

LAFLEUR & GODFREY LLC

LLBH PRIVATE WEALTH MANAGEMENT, LLC

LVW ADVISORS, LLC

MERRIMAN WEALTH MANAGEMENT, LLC

PATTON ALBERTSON MILLER GROUP, LLC

PETTINGA FINANCIAL ADVISORS LLC

QUADRANT PRIVATE WEALTH MANAGEMENT, LLC

RELATIVE VALUE PARTNERS GROUP, LLC

RESNICK INVESTMENT ADVISORS, LLC

RETIREMENT ADVISORY GROUP, LLC

RETIREMENT BENEFIT CONSULTING SERVICES, LLC

RETIREMENT CONSULTING GROUP, LLC

RETIREMENT GROUP, LLC

SAPIENT PRIVATE WEALTH MANAGEMENT SERVICES, LLC

SENTINEL BENEFITS GROUP, LLC

SENTINEL FINANCIAL GROUP, LLC

STRATEGIC POINT HOLDINGS, LLC

STRATEGIC WEALTH PARTNERS GROUP, LLC

SUMMIT FINANCIAL WEALTH ADVISORS, LLC

TELEMUS CAPITAL, LLC

THE COLONY GROUP, LLC

THE FIDUCIARY GROUP, LLC

THE PORTFOLIO STRATEGY GROUP, LLC

VESTOR CAPITAL, LLC

WESPAC ADVISORS, LLC

WESPAC BENEFIT & INSURANCE SERVICES, LLC

WESPAC PLAN SERVICES, LLC

 

 

	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

Signature Page to Amendment No. 3 to Amended and Restated Revolving Credit and Term Loan Agreement

 

 

	
ATLAS   RISK MANAGEMENT, LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
ATLAS   PRIVATE WEALTH MANAGEMENT, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
COLONY FUNDS, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
THE   COLONY GROUP, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
IFAM INSURANCE SERVICES, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
INSTITUTIONAL   AND FAMILY ASSET MANAGEMENT, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PAM FIDUCIARY SERVICES LIMITED, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
PATTON   ALBERTSON MILLER GROUP, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief Financial   Officer
    	
 
    

 

Signature Page to Amendment No. 3 to Amended and Restated Revolving Credit and Term Loan Agreement

 

 

	
STRATEGIC   POINT INSURANCE SERVICES, LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
STRATEGIC   POINT HOLDINGS, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
STRATEGIC POINT INVESTMENT   ADVISORS, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
STRATEGIC   POINT HOLDINGS, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TELEMUS INSURANCE SERVICES, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
TELEMUS   CAPITAL, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
QUADRANT INSURANCE WEALTH   STRUCTURING, LLC
    
	
 
    	
 
    	
 
    
	
By:
    	
QUADRANT   PRIVATE WEALTH MANAGEMENT, LLC,
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    

 

Signature Page to Amendment No. 3 to Amended and Restated Revolving Credit and Term Loan Agreement

 

 

	
VESTOR CAPITAL INSURANCE ADVISORS,   LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
VESTOR   CAPITAL, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
By:
    	
FOCUS   OPERATING, LLC,
    	
 
    
	
 
    	
its Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FOCUS OPERATING, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FOCUS OPERATING HOLDING CO.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title: Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ACORN INSURANCE AGENCY, INC.
    	
 
    
	
DMM ACQUISITION, LLC
    	
 
    
	
DOUGLAS LANE & ASSOCIATES,   LLC
    	
 
    
	
FOCUS ADVISORS, LLC
    	
 
    
	
FOCUS CONSULTING, LLC
    	
 
    
	
FOCUS WEALTH ADVISORS, LLC
    	
 
    
	
INSTITUTIONAL AND FAMILY ASSET   MANAGEMENT INSURANCE, LLC
    
	
KOVITZ INVESTMENT GROUP PARTNERS,   LLC
    	
 
    
	
POWERS ACQUISITION, LLC
    	
 
    
	
SENTINEL BENEFITS GROUP, INC.
    	
 
    
	
SENTINEL INSURANCE AGENCY, INC.
    	
 
    
	
SENTINEL PENSION   ADVISORS, INC.
    	
 
    
	
TRITON ACQUISITION, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ James   Shanahan
    	
 
    
	
 
    	
Name: James   Shanahan
    	
 
    
	
 
    	
Title:   Authorized Person
    	
 
    

 

Signature Page to Amendment No. 3 to Amended and Restated Revolving Credit and Term Loan Agreement

 

 

	
 
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   Administrative Agent, Lender, the L/C Issuer and the Swing Line Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher   Busconi
    
	
 
    	
 
    	
Name:
    	
Christopher   Busconi
    
	
 
    	
 
    	
Title:
    	
SVP
    

 

Signature Page to Amendment No. 3

 

 

	
 
    	
SUNTRUST   BANK,
    
	
 
    	
as a Lender,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Doug Kennedy
    
	
 
    	
Name:
    	
Doug Kennedy
    
	
 
    	
Title:
    	
Vice President
    

 

 

	
 
    	
BMO   HARRIS BANK N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott M.   Ferris
    
	
 
    	
 
    	
Name: Scott M.   Ferris
    
	
 
    	
 
    	
Title: Managing   Director
    

 

 

	
 
    	
THE   BANK OF TOKYO-MITSUBISHI, UFJ,
    
	
 
    	
LTD.,   as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Oscar D.   Cortez
    
	
 
    	
Name: 
    	
Oscar D. Cortez
    
	
 
    	
Title: 
    	
Vice President
    

 

 

	
 
    	
GOLDMAN   SACHS BANK USA, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rebecca   Kratz
    
	
 
    	
Name: 
    	
Rebecca Kratz
    
	
 
    	
Title: 
    	
Authorized   Signatory
    

 

 

	
 
    	
FIFTH   THIRD BANK, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lydia Altman
    
	
 
    	
Name: 
    	
Lydia Altman
    
	
 
    	
Title: 
    	
Vice President
    

 

 

	
 
    	
CITIZENS   BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David C.   Kilpatrick
    
	
 
    	
 
    	
Name: David C.   Kilpatrick
    
	
 
    	
 
    	
Title: Director
    

 

 

	
 
    	
U.S.   BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brad Edwards
    
	
 
    	
Name: 
    	
Brad Edwards
    
	
 
    	
Title: 
    	
M D
    

 

 

	
 
    	
THE   HUNTINGTON NATIONAL BANK, as
    
	
 
    	
Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jared Shaner
    
	
 
    	
Name: 
    	
Jared Shaner
    
	
 
    	
Title: 
    	
Vice President
    

 

 

	
 
    	
BANKUNITED,   N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gerard M.   McPartland
    
	
 
    	
 
    	
Name: Gerard M. McPartland
    
	
 
    	
 
    	
Title: Senior   Vice President
    

 

 

	
 
    	
FIRSTBANK   FLORIDA, as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jose Maria   Lacasa
    
	
 
    	
Name:
    	
Jose Maria   Lacasa
    
	
 
    	
Title:
    	
Senior Vice   President
    
	
 
    	
 
    	
Corporate   Banking
    

 

 

	
 
    	
COMERICA   BANK,
    
	
 
    	
as a Lender,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kevin Urban
    
	
 
    	
Name: 
    	
Kevin Urban
    
	
 
    	
Title: 
    	
Senior Vice   President
    

 

 

SCHEDULE 2.01

 

	
 
    	
 
    	
Revolving Commitment
    	
 
    	
Term Loan Outstandings
    	
 
    	
Aggregate Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(g)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Revolving
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(e)
    	
 
    	
 
    	
 
    	
Commitment plus
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Term Loan
    	
 
    	
 
    	
 
    	
Term Loan Principal
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(d)
    	
 
    	
outstandings
    	
 
    	
 
    	
 
    	
Outstanding
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Third
    	
 
    	
(after giving
    	
 
    	
 
    	
 
    	
(after giving effect to
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(c)
    	
 
    	
Amendment
    	
 
    	
effect to Third
    	
 
    	
(f)
    	
 
    	
the Third
    	
 
    	
(h)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)
    	
 
    	
(b)
    	
 
    	
Initial Term
    	
 
    	
Incremental Term
    	
 
    	
Amendment
    	
 
    	
New
    	
 
    	
Amendment
    	
 
    	
Aggregate
    	
 
    	
(i)
    	
 
    
	
 
    	
 
    	
Revolving
    	
 
    	
Applicable
    	
 
    	
Loan
    	
 
    	
Loan
    	
 
    	
Incremental
    	
 
    	
Applicable
    	
 
    	
Incremental Term
    	
 
    	
Increase or
    	
 
    	
New Total Applicable
    	
 
    
	
Lender
    	
 
    	
Commitment
    	
 
    	
Percentage
    	
 
    	
Outstanding
    	
 
    	
Commitment
    	
 
    	
Term Loan)
    	
 
    	
Percentage
    	
 
    	
Loan)
    	
 
    	
Decrease
    	
 
    	
Percentage
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bank of America, N.A.
    	
 
    	
$
    	
95,880,096.00
    	
 
    	
17.28
    	
%
    	
$
    	
7,008,029.80
    	
 
    	
$
    	
15,858,082.00
    	
 
    	
$
    	
22,866,111.80
    	
 
    	
13.52
    	
%
    	
$
    	
118,746,207.80
    	
 
    	
$
    	
15,858,082.00
    	
 
    	
16.40
    	
%
    
	
The Bank of Tokyo- Mitsubishi,   UFJ, LTD
    	
 
    	
$
    	
70,091,667.00
    	
 
    	
12.63
    	
%
    	
$
    	
4,779,166.34
    	
 
    	
$
    	
11,538,462.00
    	
 
    	
$
    	
16,317,628.34
    	
 
    	
9.65
    	
%
    	
$
    	
86,409,295.34
    	
 
    	
$
    	
11,538,462.00
    	
 
    	
11.93
    	
%
    
	
Comerica Bank
    	
 
    	
$
    	
11,250,000.00
    	
 
    	
2.03
    	
%
    	
$
    	
3,468,750.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,468,750.00
    	
 
    	
2.05
    	
%
    	
$
    	
14,718,750.00
    	
 
    	
$
    	
0.00
    	
 
    	
2.03
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Third Bank
    	
 
    	
$
    	
53,875,000.00
    	
 
    	
9.71
    	
%
    	
$
    	
11,562,500.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
11,562,500.00
    	
 
    	
6.84
    	
%
    	
$
    	
65,437,500.00
    	
 
    	
$
    	
0.00
    	
 
    	
9.04
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Firstbank Florida
    	
 
    	
$
    	
0.00
    	
 
    	
0.00
    	
%
    	
$
    	
18,986,842.10
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
18,986,842.10
    	
 
    	
11.22
    	
%
    	
$
    	
18,986,842.10
    	
 
    	
$
    	
0.00
    	
 
    	
2.62
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Huntington National   Bank
    	
 
    	
$
    	
22,750,000.00
    	
 
    	
4.10
    	
%
    	
$
    	
4,625,000.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
4,625,000.00
    	
 
    	
2.73
    	
%
    	
$
    	
27,375,000.00
    	
 
    	
$
    	
0.00
    	
 
    	
3.78
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Goldman Sachs Bank USA
    	
 
    	
$
    	
47,500,000.00
    	
 
    	
8.56
    	
%
    	
$
    	
11,562,500.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
21,562,500.00
    	
 
    	
12.75
    	
%
    	
$
    	
69,062,500.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
9.54
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
SunTrust Bank
    	
 
    	
$
    	
84,922,468.00
    	
 
    	
15.30
    	
%
    	
$
    	
15,031,250.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
25,031,250.00
    	
 
    	
14.80
    	
%
    	
$
    	
109,953,718.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
15.18
    	
%
    
	
U.S. Bank, N.A.
    	
 
    	
$
    	
22,500,000.00
    	
 
    	
4.05
    	
%
    	
$
    	
6,937,500.00
    	
 
    	
$
    	
3,500,000.00
    	
 
    	
$
    	
10,437,500.00
    	
 
    	
6.17
    	
%
    	
$
    	
32,937,500.00
    	
 
    	
$
    	
3,500,000.00
    	
 
    	
4.55
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
BMO Harris Bank N.A.
    	
 
    	
$
    	
95,000,000.00
    	
 
    	
17.12
    	
%
    	
$
    	
0.00
    	
 
    	
$
    	
14,615,385.00
    	
 
    	
$
    	
14,615,385.00
    	
 
    	
8.64
    	
%
    	
$
    	
109,615,385.00
    	
 
    	
$
    	
14,615,385.00
    	
 
    	
15.14
    	
%
    
	
Citizens Bank, N.A.
    	
 
    	
$
    	
34,153,846.00
    	
 
    	
6.15
    	
%
    	
$
    	
5,692,307.84
    	
 
    	
$
    	
6,153,846.00
    	
 
    	
$
    	
11,846,153.84
    	
 
    	
7.00
    	
%
    	
$
    	
45,999,999.84
    	
 
    	
$
    	
6,153,846.00
    	
 
    	
6.35
    	
%
    
	
BankUnited, N.A.
    	
 
    	
$
    	
17,076,923.00
    	
 
    	
3.08
    	
%
    	
$
    	
2,846,153.92
    	
 
    	
$
    	
5,000,000.00
    	
 
    	
$
    	
7,846,153.92
    	
 
    	
4.64
    	
%
    	
$
    	
24,923,076.92
    	
 
    	
$
    	
5,000,000.00
    	
 
    	
3.44
    	
%
    
	
Totals
    	
 
    	
$
    	
555,000,000.00
    	
 
    	
100.00
    	
%
    	
$
    	
92,500,000.00
    	
 
    	
$
    	
76,665,775.00
    	
 
    	
$
    	
169,165,775.00
    	
 
    	
100.00
    	
%
    	
$
    	
724,165,775.00
    	
 
    	
$
    	
76,665,775.00
    	
 
    	
100
    	
%
    

 

 

SCHEDULE 3

 

Exhibit D

 

[See attached]

 

 

EXHIBIT D

 

FORM OF COMPLIANCE CERTIFICATE(1)

 

Financial Statement Date:

 

To:          Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

I hereby certify that I am the Chief Financial Officer of FOCUS FINANCIAL PARTNERS, LLC, a Delaware limited liability company (the “Company”), and, in such capacity and not individually, further certify as of the date hereof to the following:

 

1.             Definitions. I have reviewed a copy of and am familiar with the Amended and Restated Revolving Credit and Term Loan Agreement, dated as of December 10, 2013 (as amended, extended, restated, amended and restated, supplemented or otherwise modified and in effect from time to time, the “Credit Agreement;” the terms defined therein being used herein as therein defined unless otherwise defined herein), by and among the Company, certain Subsidiaries of the Company party thereto pursuant to Section 2.14 of the Credit Agreement (each a “Designated Borrower” and, together with the Company, the “Borrowers” and each a “Borrower”), the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender.

 

2.             No Default. [Except as set forth below] None of the Loan Parties are in Default in the performance or observance of any of the covenants, terms or provisions of the Credit Agreement or any of the other Loan Documents. If any Loan Party shall be in Default, the signer of this certificate shall specify all such Defaults and the nature thereof, of which (s)he may have knowledge. Attached hereto as Appendix I are all relevant calculations necessary to determine whether the Company is in compliance with Section 7.10 of the Credit Agreement as at the end of the Measurement Period covered by the financial statements delivered herewith. The information contained in the attached Appendix I is true, accurate and complete as of the date hereof.

 

3.             EBITDAPC, Etc. To the extent required to be calculated pursuant to the definition of Acquired Party EBITDA or the related provisions of the Credit Agreement, attached hereto as Appendix II are all relevant calculations necessary to determine (a) EBITDAPC, (b) Book of Business EBITDA with respect to any Book of Business and (c) Permitted Minority Interest Historical Profits with respect to any Permitted Minority Interest, in each case, with respect to any Acquired Party acquired during the relevant Measurement Period. The information contained in the attached Appendix II is true, accurate and complete as of the date hereof.

 

4.             No New Subsidiaries. Neither the Company nor any of its Subsidiaries has created or formed any new Subsidiary during the relevant Measurement Period except as set forth below. [If any new Subsidiary has been created or formed, please identify such Subsidiary’s name and place of formation herein.]

 

(1) Update, as necessary, following any conversion of the Company from a Delaware limited liability company to a Delaware C-Corp.

 

 

5.             Jurisdiction of Formation; etc. The Company (a) is a Delaware limited liability company and (b) has not changed its type of organization or jurisdiction of organization. The chief executive office for the Company is located at: 825 Third Avenue, 27th Floor, New York, NY 10022.

 

6.             Financial Statements. Together with this Certificate, the Company is delivering to the Administrative Agent the financial statements required pursuant to Section 6.01 of the Credit Agreement.

 

7.             Intellectual Property. [No applications were made by any Loan Party] [Schedule 1 attached hereto lists all applications] for registration of any patents, trademarks or copyrights filed by any of the Loan Parties with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in the prior Fiscal Quarter. (2)

 

[Remainder of page intentionally left blank]

 

(2) To be used in connection with the delivery of financial statements pursuant to Section 6.01 of the Credit Agreement.

 

2

 

IN WITNESS WHEREOF, the undersigned has executed this certificate as an instrument as of the date first set forth above.

 

	
 
    	
FOCUS   FINANCIAL PARTNERS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Jim Shanahan
    
	
 
    	
Title:
    	
Chief Financial   Officer
    

 

3

 

EXHIBIT D

 

APPENDIX I(3)

 

COMPLIANCE CERTIFICATE

 

1.     Minimum Consolidated Fixed Charge Coverage Ratio (Section 7.10(a) of the Credit Agreement) for the Fiscal Quarter ending.

 

A.    Consolidated EBITDA of the Company and its Subsidiaries for the Measurement Period ending as of the last day of the Fiscal Quarter:

 

	
1.
    	
Consolidated Net   Income:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
plus,   income tax expense (including, without limitation, any franchise taxes imposed   in lieu of income taxes and Permitted Tax Distributions):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
plus,   Consolidated Interest Expense, amortization or write-off of deferred   financing fees, debt discount and debt issuance costs and commissions,   discounts and other fees and charges associated with Indebtedness:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
plus,   depreciation and amortization expense:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
plus,   amortization (or write-downs) of intangibles (including, without limitation,   goodwill) and organization costs:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
plus,   any other non-cash charges or expenses or non-cash losses (including, without   duplication, (a) non-cash charges and expenses incurred or sustained in   connection with Permitted Acquisitions, (b) non-cash losses on   Dispositions of assets outside the ordinary course of business,   (c) non-cash charges arising from the impairment of goodwill and   intangible assets, (d) extraordinary or non-recurring non-cash charges or   expenses or non-cash losses in accordance with GAAP and (e) non-cash   charges resulting from issuances of stock based awards):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
plus,   extraordinary or non-recurring cash charges, expenses or losses during such   Measurement Period (including, without duplication of any item in Item 6   above, losses on dispositions of assets outside of the ordinary course of   business) in an aggregate amount not to exceed 15% of Consolidated EBIDTA for   such Measurement Period (calculated before giving effect to any such addback   under this Item 7):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
plus,   any amounts deducted in determining Consolidated
    	
 
    	
$
    

 

(3) In the event of a conflict between the provisions of this Appendix 1, Appendix II and the Credit Agreement, the provisions of the Credit Agreement shall control.

 

Appendix I - 1

 

	
 
    	
Net Income representing   mark-to-market losses that must be recognized currently in Consolidated Net   Income under Accounting Standards Codification Topic 815: Derivatives and   Hedging:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
plus,   the aggregate amount paid or required to be paid in cash during such period   for recruiting, success or finder’s fees relating to or arising in connection   with any Permitted Acquisition in an amount not to exceed $2,000,000 for all   Permitted Acquisitions in the aggregate during such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
plus,   (i) with respect to each Permitted Acquisition consummated on or prior   to December 31, 2015 (other than (A) any Acquisition consisting   solely of the acquisition of a Book of Business or a Permitted Minority   Interest or (B) a Permitted Acquisition of the type described in either   clause (iv)(a) or (v) below) during such Measurement Period   determined on a pro forma basis   as if such Permitted Acquisition had occurred on the first day of such   Measurement Period:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
EBITDAPC (see Appendix II Item 1(C) below):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(b)
    	
the percentage of   EBITDAPC purchased by the Company or other applicable Loan Party in   connection with such Permitted Acquisition:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
                  %
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(c)
    	
Item   10(a) multiplied by Item 10(b):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
with respect to each   Permitted Acquisition consisting of the acquisition of a Book of Business   during such Measurement Period determined on a pro forma basis as if such Permitted Acquisition had   occurred on the first day of such Measurement Period, Book of Business EBITDA   (see Appendix II Item 2(D) below):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
with respect to each   Permitted Acquisition consisting of the acquisition of a Permitted Minority   Interest during such Measurement Period, Permitted Minority Interest   Historical Profits (see Appendix II Item 3(C) below):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)
    	
with respect to each   (a) Permitted Acquisition of an RIA under the “Focus
    	
 
    	
 
    

 

Appendix I - 2

 

	
 
    	
 
    	
 
    	
Independence” program   (formerly known as “Focus Connections” program) and (b) Permitted Acquisition   consummated after December 31, 2015 (in each case of clause (a) and   (b), other than a Permitted Acquisition of a Book of Business or Permitted   Minority Interest or an acquisition of the type described in clause   (v) below), in each case, during such Measurement Period, the   preferential earnings described in the relevant acquisition agreement,   management agreement or other related agreements executed in connection with   the closing of such Permitted Acquisition:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
or
    	
 
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(v)
    	
with respect to each   Permitted Acquisition (other than an acquisition of a Book of Business or   Permitted Minority Interest), directly or indirectly, by a Subsidiary of the   Company that is a “partner firm” (as identified to the Administrative Agent   by the Company) during such Measurement Period, as determined on a pro forma basis as if such Permitted   Acquisition had occurred on the first day of such Measurement Period,   EBITDAPC of such acquired entity net of any management fees payable to the   Advisor Group of such partner firm pursuant to the applicable Advisor Group   Documents: (See Appendix II Item 4(E) below)
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
plus,   with respect to any Permitted Minority Interest, an amount equal to the   profits of such wealth advisory firm for such Measurement Period to the   extent, without duplication, (a) actually distributed in cash to a Loan   Party in such Measurement Period in accordance with such Loan Party’s   ownership percentage in such firm or (b) contractually required to be   distributed in cash to a Loan Party within 180 days following the end of such   Measurement Period in accordance with such Loan Party’s
    	
 
    	
 
    

 

Appendix I - 3

 

	
 
    	
ownership percentage of   such wealth advisory firm; provided that, for the avoidance of doubt,   Permitted Minority Interest Profits shall not include any Permitted Minority   Interest Historical Profits:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
plus,   the non-cash reduction to deferred revenue as a result of purchase accounting   in accordance with Accounting Standards Codification Topic 805: Business   Combinations:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
plus,   the aggregate costs and expenses incurred in connection with Permitted   Acquisitions which have been consummated during such Measurement Period;   provided, that such costs and expenses shall not, in the aggregate, exceed   $500,000 for any Permitted Acquisition during such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
plus,   charges as a result of changes in estimates for earn-outs under Accounting   Standards Codification Topic 805: Business Combinations during such   Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
plus,   cash and non-cash expenses incurred in connection with the Transactions   during such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
plus,   cash and non-cash expenses incurred in connection with or in preparation for   a planned or actual Public Offering not to exceed $2,000,000 in the aggregate   during such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
plus,   solely for purposes of determining compliance with the financial covenants   set forth in Section 7.10 of the Credit Agreement, the amount of any   Equity Cure during such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
plus,   extraordinary or non-recurring cash charges, expenses or losses in connection   with the Centerbridge Transactions as contemplated by   Section 1.3(a) of Centerbridge Purchase Agreement:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
19.
    	
plus,   Public Company Costs to the extent funded by a Restricted Payment by the   Company that is a Permitted Holdco Distribution permitted under   Section 7.06(d) of the Credit Agreement, not to exceed, in the aggregate,   $5,000,000 for any Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
Total   (sum of Items 1 through 19 above):
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
minus,   without duplication, and only to the extent included in the calculation of   such Consolidated Net Income for the Measurement Period, all non-cash income:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
minus,   without duplication, and only to the extent included in the calculation of   such Consolidated Net Income for the
    	
 
    	
$
    

 

Appendix I - 4

 

	
 
    	
 
    	
Measurement Period, all   non-cash gains:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
23.
    	
minus,   without duplication, and only to the extent included in the calculation of   such Consolidated Net Income for the Measurement Period, any amounts added in   determining Consolidated Net Income representing mark-to-market gains that   must be recognized currently in net income under Accounting Standards   Codification Topic 815: Derivatives and Hedging:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
24.
    	
minus,   without duplication and only to the extent excluded in the calculation of   Consolidated Net Income for such Measurement Period, gains as a result of   changes in estimates for earn-outs under Accounting Standards Codification   Topic 805: Business Combinations during such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
25.
    	
minus,   without duplication, and only to the extent included in the calculation of   Consolidated EBITDA for the prior Measurement Period, the amount of Permitted   Minority Interest Profits (see Item 11 above), not actually distributed in   cash to the applicable Loan Party owning such Permitted Minority Interest   within 180 days following the end of such prior Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
26.
    	
Total   (sum of Items 21 through 25 above):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
27.
    	
Consolidated   EBITDA (Item 20 minus Item 26):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
B.
    	
Consolidated Capital   Expenditures (non-financed with Indebtedness or equity) of the Company and   its Subsidiaries for the Measurement Period ending as of the last day of the   Fiscal Quarter:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
C.
    	
The aggregate amount   paid or required to be paid in cash in respect of income taxes (including   Permitted Tax Distributions) by the Company and its Subsidiaries for the   Measurement Period ending as of the last day of the Fiscal Quarter:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
D.
    	
Item 1(A)(27) minus   Item 1(B) minus Item 1(C):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
E.
    	
Consolidated fixed   charges of the Company and its Subsidiaries for the Measurement Period ending   as of the last day of the Fiscal Quarter:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.
    	
Consolidated Scheduled   Funded Debt Payments during such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.
    	
plus,   Consolidated Cash Interest Expense for the Company and its Subsidiaries for   such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.
    	
plus,   dividends with respect to Equity Interests in the Company permitted under the   Credit Agreement and paid
    	
 
    	
$
    

 

Appendix I - 5

 

	
 
    	
 
    	
in cash during such   Measurement Period (other than dividends in connection with the Centerbridge   Transactions):
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.    
    	
Consolidated   Fixed Charges (sum of Items 1 through 3 above):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
F.
    	
Ratio of Item   1(D) to Item 1(E)(4):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
G.
    	
Shall Not Be Less Than:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
For each Measurement   Period ending on or after December 31, 2013:
    	
 
    	
1.50:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
H.
    	
Compliance
    	
 
    	
Yes         No
    
	
 
    	
 
    	
 
    	
 
    
	
2.  Maximum Consolidated Total Leverage Ratio (Section 7.10(b) of the Credit Agreement) for the Fiscal Quarter ending.
    
	
 
    	
 
    	
 
    	
 
    
	
A.
    	
Consolidated Total   Funded Debt of the Company and its Subsidiaries as of the last day of such   Fiscal Quarter:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.
    	
Indebtedness for   borrowed money:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.
    	
unrestricted domestic   cash and cash equivalents of the Company and its Subsidiaries as of such date   in an aggregate amount not to exceed $25,000,000:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.
    	
Consolidated   Total Funded Debt (Item 1 minus Item 2):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
B.
    	
Consolidated EBITDA of   the Company and its Subsidiaries for the Measurement Period as of the last   day of such Fiscal Quarter (see Item 1(A)(27) above):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
C.
    	
Ratio of Item   2(A)(3) to Item 2(B):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
D.
    	
Shall Not Be Greater   Than:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(i) 4.00:1.00 to   the extent that a Public Offering has been consummated as of the last day of   any Measurement Period or (ii) the ratio set forth below opposite the   applicable Measurement Period to the extent that a Public Offering has not   been consummated as of the last day of any Measurement Period:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
For the Measurement   Period ending:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
December 31, 2015:
    	
 
    	
4.75:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
March 31, 2016:
    	
 
    	
5.25:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
June 30, 2016:
    	
 
    	
5.25:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
September 30,   2016:
    	
 
    	
5.00:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
December 31, 2016:
    	
 
    	
5.00:1.00
    

 

Appendix I - 6

 

	
 
    	
March 31, 2017:
    	
 
    	
4.75:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
June 30, 2017:
    	
 
    	
4.50:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
September 30,   2017:
    	
 
    	
4.50:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
December 31, 2017:
    	
 
    	
4.25:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
March 31, 2018 and   thereafter:
    	
 
    	
3.75:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
E.
    	
Compliance
    	
 
    	
Yes         No
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Maximum   Consolidated Secured Leverage Ratio (Section 7.10(c) of the Credit   Agreement) for the Fiscal Quarter ending.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
A.
    	
Consolidated Secured   Funded Debt of the Company and its Subsidiaries as of the last day of such   Fiscal Quarter
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
B.
    	
Consolidated EBITDA of   the Company and its Subsidiaries for the Measurement Period as of the last   day of such Fiscal Quarter (see Item 1(A)(27) above):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
C.
    	
Ratio of Item   3(A) to Item 3(B):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    
	
D.
    	
Shall Not Be Greater   Than:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(i) 4.00:1.00 to   the extent that a Public Offering has been consummated as of the last day of   any Measurement Period or (ii) the ratio set forth below opposite the   applicable Measurement Period to the extent that a Public Offering has not   been consummated as of the last day of any Measurement Period:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
For the Measurement   Period ending:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
December 31, 2015:
    	
 
    	
4.50:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
March 31, 2016:
    	
 
    	
5.25:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
June 30, 2016:
    	
 
    	
5.25:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
September 30,   2016:
    	
 
    	
5.00:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
December 31, 2016:
    	
 
    	
4.75:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
March 31, 2017:
    	
 
    	
4.50:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
June 30, 2017:
    	
 
    	
4.25:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
September 30,   2017:
    	
 
    	
4.25:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
December 31, 2017:
    	
 
    	
4.00:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
March 31, 2018 and   thereafter:
    	
 
    	
3.50:1.00
    
	
 
    	
 
    	
 
    	
 
    
	
E.
    	
Compliance
    	
 
    	
Yes      No
    
					

 

Appendix I - 7

 

EXHIBIT D

 

APPENDIX II

 

COMPLIANCE CERTIFICATE

 

	
1.
    	
EBITDAPC   for the Measurement Period ending immediately prior to the acquisition of   such Acquired Party:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.
    	
Revenues of such Acquired   Party for such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.
    	
minus,   recurring operating expenses which shall exclude:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(1)
    	
income tax expense   (including, without limitation, any franchise taxes imposed in lieu of income   taxes and any distributions made by such Acquired Party or Person, as the   case may be, to its members solely in respect of income taxes):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(2)
    	
Interest Expense,   amortization or write-off of deferred financing fees, debt discount and debt   issuance costs and commissions, discounts and any other fees and charges   associated with Indebtedness:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(3)
    	
depreciation and   amortization expense:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(4)
    	
amortization (or   write-downs) of intangibles (including, without limitation, goodwill) and   organization costs:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(5)
    	
any other non-cash   charges or expenses or non-cash losses (including, without duplication,   (a) non-cash charges arising from impairment of goodwill and intangible   assets and (b) extraordinary or non-recurring non-cash charges or   expenses or non-cash losses) or non-cash income:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(6)
    	
any amounts   representing mark-to-market losses or gains that must be recognized under   Accounting Standards Codification Topic 815: Derivatives and Hedging:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(7)
    	
100% of the   compensation, benefits and other executive perquisites paid to members,   partners or owners of such Acquired Party as determined immediately prior to   or as of the consummation of the related Permitted Acquisition:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.
    	
Total   (sum of Items A and B above):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Book   of Business EBITDA for the most recent twelve-month period available (such   period ending no earlier than six months prior to the date of the acquisition   of such Book of Business):
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.
    	
Revenues in respect of   such Book of Business for such period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.
    	
the amount of cash   compensation (if any) paid or payable to any financial advisor or broker in   connection with such Book of Business:
    	
 
    	
$
    

 

Appendix II - 1

 

	
 
    	
C.
    	
(Item A minus   Item B) x 0.90:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
D.
    	
Total:   Item C (net of management fee percentage):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Permitted   Minority Interest Historical Profits for any Measurement Period during which   the Acquisition of such Permitted Minority Interest was consummated:
    
	
 
    	
 
    
	
 
    	
A.
    	
Profits of the   applicable wealth advisory firm for such Measurement Period realized prior to   the consummation of such Acquisition solely to the extent such profits were   distributed or distributable among such firm’s partners, shareholders or   members pro rata in accordance with each such Person’s ownership percentage   of such firm:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.
    	
the applicable Loan   Party’s ownership percentage of such wealth advisory firm as of the end of   such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.
    	
Total:   Item A x Item B:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Partner   Firm Sub-Acquisition Consummated during the Measurement Period:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.
    	
Revenues of such   Acquired Party for such Measurement Period:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.
    	
minus,   recurring operating expenses which shall exclude:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(1)
    	
income tax expense   (including, without limitation, any franchise taxes imposed in lieu of income   taxes and any distributions made by such Acquired Party or Person, as the   case may be, to its members solely in respect of income taxes):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(2)
    	
Interest Expense,   amortization or write-off of deferred financing fees, debt discount and debt   issuance costs and commissions, discounts and any other fees and charges   associated with Indebtedness:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(3)
    	
depreciation and   amortization expense:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(4)
    	
amortization (or   write-downs) of intangibles (including, without limitation, goodwill) and   organization costs:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(5)
    	
any other non-cash   charges or expenses or non-cash losses (including, without duplication,   (a) non-cash charges arising from impairment of goodwill and intangible   assets and (b) extraordinary or non-recurring non-cash charges or   expenses or non-cash losses) or non-cash income:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(6)
    	
any amounts   representing mark-to-market losses or gains that must be recognized under   Accounting Standards Codification Topic 815: Derivatives and Hedging:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(7)
    	
100% of the   compensation, benefits and other executive perquisites paid to members,   partners or owners of such Acquired Party as determined immediately prior to   or as of 
    	
 
    	
$
    
								

 

Appendix II - 2

 

	
 
    	
 
    	
 
    	
the consummation of the   related Permitted Acquisition:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.
    	
Total   (sum of Items A and B above):
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
D.
    	
Management fees payable   to the Advisor Group of such partner firm pursuant to the applicable Advisor   Group Documents:
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
E.
    	
Total   (Item C minus Item D above):
    	
 
    	
$
    

 

Appendix II - 3

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