Document:

EX-10.(b)(2)

 Exhibit 10(b)(2) 

EXECUTION COPY 

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED NOTE AGREEMENT 

This FIRST AMENDMENT TO SECOND AMENDED AND RESTATED NOTE AGREEMENT dated as of June 3, 2013 (this “Amendment”),
among NEWSTAR FINANCIAL, INC. (the “Company”), THE HOLDERS PARTY HERETO (the “Holders”) and FORTRESS CREDIT CORP., as administrative agent for the Holders under the Note Agreement described below (in such capacity,
together with its successors and assigns, the “Administrative Agent”). 
 WHEREAS, the Company has entered into
a Second Amended and Restated Note Agreement dated as of May 13, 2013 with the Holders and the Administrative Agent (as it may be amended, modified, extended, supplemented or restated from time to time, the “Note Agreement”),
pursuant to which Note Agreement the Holders agreed, subject to the terms and conditions set forth therein, to make term loans to the Company; 
 WHEREAS, the Company has requested that the Administrative Agent and the Holders amend the Note Agreement as provided in this Amendment, and the Administrative Agent and the Holders have agreed to do the
foregoing, subject to the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the promises and the
mutual agreements contained in this Amendment, the Company, the Holders party hereto and the Administrative Agent hereby agree as follows: 
 1. Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings set forth in the Note Agreement. 
 2. Amendments to Note Agreement. Subject to the satisfaction of the conditions precedent set forth in Section 5 below and in reliance on the representations and warranties set forth in
Section 3, the Note Agreement is hereby amended as follows: 
 (a) Amendment to Section 1.01 of the
Note Agreement. Section 1.01 of the Note Agreement is hereby amended by deleting the definitions of “Applicable Margin”, “Scheduled Delayed Draw Term B Maturity Date” and “Scheduled Delayed Draw Term B-1 Maturity
Date” in their entirety and by substituting the following therefor: 
 “‘Applicable
Margin’ means (a) with respect to the Initial Term Loans, 4.50%, (b) with respect to the Delayed Draw Term A Loans, 4.50%, (c) with respect to the Delayed Draw Term B Loans, 3.375%, (d) with respect to the Delayed Draw
Term A-1 Loans, 4.50% and (e) with respect to the Delayed Draw Term B-1 Loans, 3.375%.” 

“‘Scheduled Delayed Draw Term B Maturity Date’ means June 3, 2016.” 

“‘Scheduled Delayed Draw Term B-1 Maturity Date’ means June 3, 2016.” 

(b) Amendment to Section 7.05 of the Note Agreement. Section 7.05 of the Note Agreement is hereby amended
by deleting clause (b) of such Section 7.05 in its entirety and substituting the following therefor: 

“(b) the aggregate amount of such Restricted Payments made in Cash during the term of this Agreement does not exceed
the sum of (i) $37,500,000 plus (ii) Cumulative Retained Excess Cash Flow.” 

 3. Default; Representations and Warranties, Etc. The Company hereby represents,
warrants, confirms and covenants that (a) the execution, delivery and performance by the Company of this Amendment and the consummation of the transactions contemplated hereby (i) have been duly authorized by all necessary action on the
part of the Company, (ii) have not violated, conflicted with or resulted in a default under and will not violate or conflict with or result in a default under (A) any applicable law or regulation, (B) any term or provision of the
organizational documents of the Company or (C) any term or provision of any indenture, agreement or other instrument binding on the Company or any of its assets, except, in the case of the foregoing clauses (A) and (C), to the extent that
such violation, conflict or default could not reasonably be expected to result in a Material Adverse Effect, and (iii) do not require any consent, waiver or approval of or by any Person which has not been obtained and (b) this Amendment
and the Note Agreement as amended hereby constitute legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to applicable Debtor Relief Laws and general principles of equity,
regardless of whether considered in a proceeding in equity or at law. 
 4. Ratification and Confirmation. The Company
hereby agrees and confirms that: 
 (a) the Note Agreement and each of the other Note Documents, as amended and
otherwise modified by the amendments specifically provided herein, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed; and 

(b) the liens and security interests granted in favor of the Administrative Agent for the benefit of itself and the
Holders under the terms of the Note Documents are perfected, effective, enforceable and valid and that such liens and security interests are, in each case, a first priority lien and security interest except to the extent otherwise expressly
permitted by the Note Documents and that such liens and security interests are hereby in all respects reaffirmed, ratified and confirmed. 
 5. Conditions to this Amendment. The effectiveness of this Amendment shall be subject to the satisfaction of the following conditions precedent: 

(a) The Administrative Agent shall have received counterparts of this Amendment duly executed by each Holder and the
Company; 
 (b) The Administrative Agent shall have received counterparts of the Ratification of Note Documents
duly executed by each Subsidiary Guarantor in the form attached hereto; 
 (c) Concurrently herewith, the Delayed
Draw Term B Holders and one or more Eligible Holders shall have executed and delivered one or more Assignment and Assumptions pursuant to which the Delayed Draw Term B Holders shall have assigned to such Eligible Holders and such Eligible Holders
shall have assumed the entire Delayed Term B Commitments of the Delayed Draw Term B Holders in the aggregate amount of $25,000,000, whereupon such Delayed Draw Term B Commitments shall be automatically converted to Delayed Draw Term B-1 Commitments
in the aggregate amount of $25,000,000 and such Eligible Holders shall automatically become Delayed Draw Term B-1 Holders under and for all purposes of the Note Agreement; and 

(d) The Administrative Agent shall have received such other assurances, certificates or other documents as the
Administrative Agent may reasonably require in connection herewith. 
 6. Miscellaneous. 

(a) Except as otherwise expressly set forth herein, nothing herein shall be deemed to constitute an amendment,
modification or waiver of any of the provisions of the Note Agreement or the other Note Documents, all of which remain in full force and effect as of the date hereof and are hereby ratified and confirmed. The Company acknowledges and agrees that
nothing contained herein shall be 

  
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deemed to entitle such party to a consent to, or a waiver, amendment or modification of, any of the terms, conditions, obligations, covenants or agreements contained in the Note Documents in
similar or different circumstances or shall prejudice any right or rights which the Administrative Agent or any Holder now has or may have under, or in connection with, the Note Agreement, as amended hereby, the Note Documents, or any other
documents referred to herein or therein. 
 (b) Upon the effectiveness of this Amendment, each reference in the
Note Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” “hereby” or words of like import shall mean and be a reference to the Note Agreement as amended hereby, and each reference to the
Note Agreement in any other document, instrument or agreement executed and/or delivered in connection with the Note Agreement shall mean and be a reference to the Note Agreement as amended hereby. 

(c) This Amendment may be executed in any number of counterparts, each of which, when executed and delivered, shall be an
original, but all counterparts shall together constitute one instrument. Whenever the terms or sections amended hereby shall be referred to in the Note Agreement, Note Documents or such other documents (whether directly or by incorporation into
other defined terms), such defined terms shall be deemed to refer to those terms or sections as amended by this Amendment. A signature page sent to the Administrative Agent or its counsel by facsimile or other electronic means (including in portable
document format (.pdf)) shall be effective as an original counterpart signature. 
 (d) THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH HOLDER SHALL RETAIN ALL RIGHTS ARISING
UNDER FEDERAL LAW. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns. 
 (e) The Company agrees to pay all reasonable expenses, including legal fees and disbursements incurred by the Administrative Agent in connection with this Amendment and the transactions contemplated
hereby. 
 [Signature Pages Follow] 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Amendment which shall be deemed to
be a sealed instrument as of the date first above written. 
  

			
	COMPANY
	
	NEWSTAR FINANCIAL, INC.
		
	By:	 	/s/ JOHN J. FRISHKOPF
		 	Name: John J. Frishkopf
		 	Title: Treasurer
	
	ADMINISTRATIVE AGENT
	
	 FORTRESS CREDIT CORP.,
 as Administrative Agent

		
	By:	 	/s/ CONSTANTINE M. DAKOLIAS
		 	Name: Constantine M. Dakolias
		 	Title: President
	
	HOLDERS
	
	 FORTRESS CREDIT OPPORTUNITIES I LP,
 as a Holder

	
	 By: Fortress Credit Opportunities I GP LLC,
 its general partner

		
	By:	 	/s/ CONSTANTINE M. DAKOLIAS
		 	Name: Constantine M. Dakolias
		 	Title: President
	
	FORTRESS CREDIT FUNDING III LP, as a Holder
	
	 By: Fortress Credit Funding III GP LLC,
 its general partner

		
	By:	 	/s/ CONSTANTINE M. DAKOLIAS
		 	Name: Constantine M. Dakolias
		 	Title: President

 Signature Page to First Amendment to Second A&R Note Agreement 

 
			
	 FORTRESS CREDIT FUNDING V LP,
 as a Holder

	
	 By: Fortress Credit Funding V GP LLC,
 its general partner

		
	By:	 	/s/ CONSTANTINE M. DAKOLIAS
		 	Name: Constantine M. Dakolias
		 	Title: President
	
	DRAWBRIDGE SPECIAL OPPORTUNITIES FUND LP as a Holder
	
	 By: Drawbridge Special Opportunities GP LLC,
 its general partner

		
	By:	 	/s/ CONSTANTINE M. DAKOLIAS
		 	Name: Constantine M. Dakolias
		 	Title: President

 Signature Page to First Amendment to Second A&R Note Agreement 

 RATIFICATION OF NOTE DOCUMENTS 

June 3, 2013 
 Each of the undersigned Subsidiary Guarantors hereby acknowledges and consents to the foregoing First Amendment to Second Amended and Restated Note Agreement dated as of June 3, 2013 (the
“First Amendment”) among NewStar Financial, Inc. (the “Company”), the holders party thereto (the “Holders”) and Fortress Credit Corp., as Administrative Agent (the “Administrative
Agent”), which amends that certain Second Amended and Restated Note Agreement, dated as of May 13, 2013, among the Company, the Holders and the Administrative Agent (as it may be amended, modified, extended, supplemented or restated
from time to time, the “Note Agreement”) . Capitalized terms used but not otherwise defined herein shall have the meanings attributed to them in the Note Agreement. Without in any way establishing a course of dealing by the
Administrative Agent or any Holder, each of the undersigned consents to the First Amendment and reaffirms the terms and conditions of the Subsidiary Guaranty and any other Note Document executed by it and acknowledges and agrees that the Subsidiary
Guaranty and each and every such Loan Document executed by the undersigned in connection with the Note Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed. NewStar Loan Funding, LLC, a Delaware limited
liability company, acknowledges and agrees that the liens and security interests granted in favor of the Administrative Agent for the benefit of itself and the Holders under the terms of the Note Documents are perfected, effective, enforceable and
valid and that such liens and security interests are, in each case, a first priority lien and security interest except to the extent otherwise expressly permitted by the Note Documents and that such liens and security interests are hereby in all
respects reaffirmed, ratified and confirmed. All references to the Note Agreement contained in the above-referenced documents shall be a reference to the Note Agreement as so modified by the First Amendment
and as the same may from time to time hereafter be amended, modified, extended, supplemented or restated. 
 [Signature Page
Follows] 

 
			
	SUBSIDIARY GUARANTORS:
	
	NEWSTAR LOAN FUNDING, LLC
		
	By:	 	/s/ JOHN J. FRISHKOPF
	Name:	 	John J. Frishkopf
	Title:	 	Manager
	
	I-295 NS EIGHT HOLDING, LLC
		
	By:	 	/s/ J. DANIEL ADKINSON
	Name:	 	J. Daniel Adkinson
	Title:	 	President
	
	FQ NS SIX HOLDING, LLC
		
	By:	 	/s/ J. DANIEL ADKINSON
	Name:	 	J. Daniel Adkinson
	Title:	 	President
	
	NEWSTAR BUSINESS CREDIT, LLC
	
	By: NewStar Financial, Inc., its sole member
		
	By:	 	/s/ JOHN J. FRISHKOPF
	Name:	 	John J. Frishkopf
	Title:	 	Treasurer
	
	NEWSTAR EQUIPMENT FINANCE I, LLC
	
	By: NewStar Financial, Inc., its designated manager
		
	By:	 	/s/ JOHN J. FRISHKOPF
	Name:	 	John J. Frishkopf
	Title:	 	Treasurer

 Signature Page to Ratification of Note DocumentsEX-10.(c)

 Exhibit 10 (c) 
 Execution Version 
  

 
  

SECOND AMENDMENT TO 
 REVOLVING CREDIT AND SECURITY AGREEMENT 
 by and among

 NEWSTAR COMMERCIAL LOAN FUNDING 2012-1 LLC, 

as Borrower, 

VERSAILLES ASSETS LLC, 
 as Required Lender, 
 and 

NATIXIS, NEW YORK BRANCH, 
 as Administrative Agent 
 and consented and agreed to by 

NEWSTAR FINANCIAL, INC., 
 as Collateral Servicer and as Originator 
 Dated as of May 17, 2013

  
  

 

 SECOND AMENDMENT TO 

REVOLVING CREDIT AND SECURITY AGREEMENT 
 THIS SECOND AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT, dated as of May 17, 2013 (this “Amendment”), is by and among NEWSTAR COMMERCIAL LOAN FUNDING 2012-1 LLC, a Delaware
limited liability company, as borrower (together with its permitted successors and assigns, the “Borrower”), VERSAILLES ASSETS LLC, a Delaware limited liability company (the “Required Lender”), NATIXIS, NEW YORK
BRANCH, as administrative agent for the Secured Parties (in such capacity, together with its successors and assigns, the “Administrative Agent”) and consented and agreed to by NEWSTAR FINANCIAL, INC., a Delaware corporation
(together with its successors and assigns and in its capacities as collateral servicer, the “Collateral Servicer” and as originator, the “Originator”). Reference is hereby made to that certain Revolving Credit and Security
Agreement dated as of February 16, 2012, as amended by the First Amendment to Revolving Credit and Security Agreement dated as of July 26, 2012 (as further amended by this Amendment, the “Credit Agreement”), among the
Borrower, the LENDERS referred to therein, the Administrative Agent and U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but as trustee for the Secured Parties. Capitalized terms used herein and not otherwise defined shall have the
meanings assigned to such terms in the Credit Agreement. 
 RECITALS 

WHEREAS, the Borrower, the Required Lender and the Administrative Agent are parties to the Credit Agreement; 

WHEREAS, the Borrower, the Required Lender and the Administrative Agent desire to amend certain provisions of the Credit Agreement as
provided for herein; 
 WHEREAS, prior written notice of this Amendment has been provided to the Rating Agency; and 

WHEREAS, the Collateral Servicer and Originator have indicated their consent to this Amendment by signing below. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and for other valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, hereto agree as follows: 
 SECTION 1. AMENDMENTS TO CREDIT AGREEMENT

 1.1 Amendments to Section 1.01 (Definitions). 

(a) Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of “Final Maturity Date” in its
entirety and inserting in lieu thereof the following: 

  
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 “Final Maturity Date” means February 14, 2020.

 (b) Section 1.01 of the Credit Agreement is hereby further amended by deleting the definition of “Minimum Weighted
Average Moody’s Recovery Rate Test” in its entirety and inserting in lieu thereof the following: 

“Minimum Weighted Average Moody’s Recovery Rate Test” means a test that will be satisfied on any
Measurement Date if the Weighted Average Moody’s Recovery Rate equals or exceeds 47.5%. 
 (c) Section 1.01 of the
Credit Agreement is hereby further amended by deleting the definition of “Weighted Average Maturity Test” in its entirety and inserting in lieu thereof the following: 

“Weighted Average Maturity Test” means a test that will be satisfied on any Measurement Date if the
Weighted Average Maturity Date of all Collateral Loans (excluding Defaulted Loans) as of such date is on or before February 15, 2018. 

SECTION 2. CONDITIONS TO EFFECTIVENESS 
 2.1 Conditions Precedent. This Amendment shall, pursuant to Section 13.01(b) of the Credit Agreement, become effective upon the satisfaction of all of the following conditions
precedent: 
 A. Execution. The Administrative Agent shall have received a counterpart signature page of this Amendment,
duly executed by each of the Borrower and the Required Lender. 
 B. Consents. The Administrative Agent shall have
received the consent and agreement of each of the Collateral Servicer and Originator, which consent may be evidenced by a counterpart signature page of this Amendment, duly executed by each of the Collateral Servicer and Originator. 

C. Notification. The Rating Agency shall have received notification of this Amendment. 

SECTION 3. CREDIT AGREEMENT CONFIRMED 
 3.1 Except as expressly amended by this Amendment, the Credit Agreement is in all respects ratified and confirmed and the Credit Agreement shall remain in full force and effect

  
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and shall be read, taken and construed as one and the same instrument, and no other amendment, waiver or other modification of any provision of the Credit Agreement shall be effective unless
signed by the parties hereto. 
 SECTION 4. SUCCESSORS AND ASSIGNS 

4.1 This Amendment applies to, inures to the benefit of, and binds all parties hereof and their permitted successors and assigns in
accordance with Section 13.06 of the Credit Agreement. 
 SECTION 5. GOVERNING LAW 

5.1 THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK. 
 SECTION 6. ENTIRE AGREEMENT 

6.1 This Amendment constitutes all of the agreements among the parties relating to the matters set forth herein and supersedes all
other prior or concurrent oral or written letters, agreements and understandings with respect to the matters set forth herein. 
 SECTION 7.
COUNTERPARTS 
 7.1 This Amendment may be executed in any number of counterparts and by different parties hereto on
separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Amendment. Delivery of an executed signature
page of this Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof. 
 [Remainder of this page intentionally left blank.] 

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

			
	 NEWSTAR COMMERCIAL LOAN FUNDING
 2012-1 LLC,

	as Borrower
	
	By: NewStar Financial, Inc., as its Designated Manager
		
	By:	 	/s/ MICHAEL EISENSTEIN
		 	Name: Michael Eisenstein
		 	Title: Managing Director, Treasury
	
	 VERSAILLES ASSETS LLC,
 as Required Lender

		
	By:	 	/s/ BERNARD J. ANGELO
		 	Name: Bernard J. Angelo
		 	Title: Senior Vice President
	
	 NATIXIS, NEW YORK BRANCH,
 as Administrative Agent

		
	By:	 	/s/ LORRAINE MEDVECKY
		 	Name: Lorraine Medvecky
		 	Title: Managing Director
		
	By:	 	/s/ HENRY J. SANDLASS
		 	Name: Henry J. Sandlass
		 	Title: Managing Director

 [SIGNATURES CONTINUE ON THE FOLLOWING PAGE] 

[Signature Page to First Amendment to Revolving Credit and Security Agreement] 

			
	CONSENTED AND AGREED TO:
	
	NEWSTAR FINANCIAL, INC.,
	as Collateral Servicer and as Originator
		
	By:	 	/s/ MICHAEL EISENSTEIN
	Name:	 	Michael Eisenstein
	Title:	 	Managing Director, Treasury

 [Signature Page to First Amendment to Revolving Credit and Security Agreement]

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