Document:

EXECUTION
COPY

 

April 28, 2014

 

Reimbursement
Agreement

 

This reimbursement agreement is entered into on and as of the date set forth above (this “Agreement”) and
sets forth certain agreements between RCAP Holdings, LLC, a Delaware limited liability company (“Holdings”),
and RCS Capital Corporation, a Delaware corporation (the “Corporation”).

 

On the date of this Agreement, the Corporation shall consummate the transactions contemplated
by the Agreement and Plan of Merger dated as of January 16, 2014, among the Corporation, Clifford Acquisition, Inc., a Delaware
corporation, Cetera Financial Holdings, Inc., a Delaware corporation, and the other parties thereto. To facilitate the consummation
of such transactions, the Corporation shall also, on the date of this Agreement, enter into (a) the First Lien Credit Agreement,
with Holdings, RCS Capital Management, LLC, the lenders party thereto, and Barclays Bank PLC, as administrative agent and as collateral
agent, and (b) the Second Lien Credit Agreement, with Holdings, RCS Capital Management, LLC, the lenders party thereto, and Bank
of America, N.A., as administrative agent and as collateral agent. Collectively, the First Lien Credit Agreement and Second Lien
Credit Agreement are referred to herein as the “Financing Agreements.”

 

The Financing Agreements provide, among other things, that (a) an amount of the proceeds of the term loans under the Financing
Agreements necessary to repay all amounts outstanding under the First Allied Seller Notes (as defined below) shall be placed into
escrow (the “Special Escrow”) by the Corporation for the repayment of such amounts, (b) the amount deposited
in the Special Escrow by the Corporation may be drawn on by Holdings to repay its obligations under the First Allied Seller Notes,
and (c) the failure to prepay the outstanding principal amount of the term loan and revolving loan indebtedness, and all accrued
but unpaid interest thereon (collectively, the “First Allied Indebtedness”), under First Allied Credit Agreement
(as defined below) within 90 days following the closing date under the Financing Agreements will
be an event of default under such Financing Agreements. In connection with the foregoing, Holdings DOES HEREBY agree, solely for
the benefit of the Corporation and the Corporation’s successors and assigns (and not any third party), that Holdings shall,
(x) reimburse the Corporation for any amounts drawn on by Holdings from the Special Escrow in connection with repaying Holdings’
obligations under the First Allied Sellers Notes, within 5 business days of drawing upon any such amounts; provided, however,
that if Holdings shall fail to reimburse the Corporation within such 5 business day period for the amounts drawn from the Special
Escrow, then, until such unreimbursed amounts shall have been paid in full, interest shall accrue thereon at LIBOR plus the Applicable
Margin for Term Loans (each, as defined in the Financing Agreements); provided, further, however, that the
interest imposed by the preceding proviso shall not excuse the default of Holdings to pay its reimbursement obligations hereunder,
and (y) if the First Allied Contribution (as defined below) is not consummated prior to the ninetieth day following the closing
date under the Financing Agreements, prepay in full the amount of the First Allied Indebtedness on or prior to such ninetieth day.

 

    	 

    	 

    

 

Reimbursement Agreement

Page 2 of 3

 

As used in this Agreement, the term (i)
“First Allied Credit Agreement” shall mean the Amended and Restated Credit Agreement dated as of January 2,
2013, between First Allied Holdings Inc. and Fifth Third Bank, as amended, modified, restated, or amended and restated from time
to time, (ii) “First Allied Contribution” shall mean the contribution by Holdings of its right, title and interest
in all 46,920,050 issued and outstanding shares of common stock, par value $0.0001 per share, of First Allied Holdings Inc. to
the Corporation, on the terms and subject to the conditions set forth in the Contribution Agreement dated as of April 3, 2014 between
Holdings and the Corporation, and (iii) “First Allied Seller Notes” shall mean the Exchangeable Promissory Notes
issued by Holdings as partial consideration for its September 25, 2013 acquisition of First Allied Holdings Inc.

 

This Agreement shall be binding upon each
of the parties and their respective legal representatives, successors and assigns. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York. This Agreement may be executed (including by facsimile transmission)
with counterpart signature pages in one or more counterparts, all of which when taken together shall constitute one agreement.

 

[END OF TEXT]

 

    	 

    	 

    

 

Reimbursement Agreement

Page 3 of 3

 

This Agreement has been duly executed and
delivered by the parties hereto as of the date first above written.

 

	 	Corporation: 
	 	 
	 	RCS Capital Corporation
	 	 
	 	By:	/s/ William M. Kahane
	 	Name: William M. Kahane
	 	Title: Chief Executive Officer
	 	 
	 	Holdings: 
	 	 
	 	RCAP Holdings, LLC 
	 	 
	 	By:	/s/ Nicholas S. Schorsch
	 	Name: Nicholas S. Schorsch
	 	Title: Managing MemberAMENDMENT NO. 1 TO

AMENDED AND RESTATED

2013 MULTI-YEAR OUTPERFORMANCE AGREEMENT

 

This AMENDMENT NO. 1 TO AMENDED AND RESTATED
2013 MULTI-YEAR OUTPERFORMANCE AGREEMENTS, dated as of April 28, 2014 (this “Amendment”), is entered
into by and among RCS Capital Corporation (the “Company”), RCS Capital Holdings, LLC (the “Partnership”),
and RCS Capital Management, LLC, the Company’s service provider (the “Service Provider”).

 

WHEREAS, on or about the date hereof, the
Company will enter into a Securities Purchase Agreement with Luxor Capital Group, LP (the “Securities Purchase Agreement”);

 

WHEREAS, in connection with the Securities
Purchase Agreement, on or about the date hereof, the Service Provider will enter into an Amended and Restated Limited Liability
Company Operating Agreement with the members of the Service Provider named therein (the “Amended Operating Agreement”);

 

WHERAS, the Company, the Partnership and
the Service Provider are party to that certain Amended and Restated RCS Capital Corporation 2013 Multi-Year Outperformance Agreement,
dated as of February 11, 2014 (the “OPP Agreement”) (capitalized terms used but not defined herein will have
the respective meanings set forth for them in the OPP Agreement); and

 

WHEREAS, this Amendment is required under
the terms of the Securities Purchase Agreement and Amended Operating Agreement and is subject to the consummation of the transactions
contemplated under the Securities Purchase Agreement.

 

NOW, THEREFORE, in consideration of the
premises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree to the following:

 

1.Effective as of immediately prior to the Closing (as defined
in the Securities Purchase Agreement):

 

a.                  
The parties hereto acknowledge and agree that April 28, 2014 will be the “First Valuation Date” under the OPP.
For the avoidance of doubt, any Award LTIP Units earned based on performance through the First Valuation Date as provided in Section
3 of the OPP Agreement (the “Earned LTIP Units”) shall be subject vesting in accordance with the terms and conditions
of the OPP.

 

b.               
The remaining Award LTIP Units granted to the Service Provider under the OPP Agreement that do not become earned on the
First Valuation Date pursuant to Section 1(a) of this Amendment shall be automatically cancelled and forfeited without payment
of any consideration as of the First Valuation Date.

 

    	Page 1 of 3

    	 

    

 

 

c.               
The Earned LTIP Units shall be subject to the terms and conditions of the Limited Liability Company Agreement of the Partnership,
dated February 11, 2014, as amended from time to time.

 

d.              
The Service Provider acknowledges and agrees that from and after the First Valuation Date it will have no right to any Award
LTIP Units (other than the Earned LTIP Units), the right to earn any additional Award LTIP Units or other amounts pursuant to the
OPP Agreement.

 

2.                 
Effective as of the date hereof, this Amendment amends and is hereby incorporated in and forms a part of the OPP Agreement,
and except as amended hereby the OPP Agreement is confirmed in all respects and remains in full force and effect. The OPP Agreement
and this Amendment constitute the entire agreement between the parties with respect to the subject matter hereof and supersedes
all prior negotiations, representations or agreements relating thereto, whether written or oral. No amendment or modification of
this Amendment shall be valid or binding upon the parties unless in writing and signed by the parties hereto.

 

3.                 
The parties agree that if any provision of this Amendment is found to be invalid or unenforceable, it will not affect the
validity or enforceability of any other provision. This Amendment shall be governed by the laws of the State of New York, without
regard to the choice of law principles thereof.

 

4.                 
Except as expressly provided herein, this Amendment shall automatically terminate and be of no further force and effect
if the Securities Purchase Agreement terminates without the Closing occurring thereunder.

 

 

[Signature page follows]

  

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

 

 

RCS CAPITAL CORPORATION

By: /s/ William M. Kahane

       Name: William M. Kahane

       Title: Chief Executive Officer

 

 

RCS Capital
Holdings, LLC

By: RCS Capital Corporation, its managing member

 

 

By: /s/ Nicholas S. Schorsch

       Name: Nicholas S. Schorsch

       Title: Manager

 

 

RCS CAPITAL MANAGEMENT, LLC

 

By: /s/ Nicholas S. Schorsch

       Name: Nicholas S. Schorsch

       Title: Manager

 

 

 

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