Document:

FORM OF FOURTH MODIFICATION AGREEMENT

(New Terms)

This Fourth Modification Agreement (the “Agreement”), dated as of                          for reference purposes only, is made by and between Greenhill & Co. Inc., a Delaware corporation (“Borrower”), and First Republic Bank, a division of Merrill Lynch Bank & Trust Co., FSB (the “Lender”), with reference to the following facts:

A. The Lender has previously made a loan (the “Loan”) to Borrower in the total principal amount of Seventy-Five Million and 00/100 Dollars ($75,000,000.00).

B. The Loan arises out of that certain Loan Agreement, dated January 31, 2006, executed by Borrower and Lender, as modified pursuant to that certain first modification agreement dated as of August 1, 2006, that certain second modification agreement dated as of March 14, 2007, and that certain third modification agreement dated as of May 2, 2007 (as modified, including pursuant to this Agreement, the “Loan Agreement”). All terms with an initial capital letter that are used but not defined in this Agreement shall have the respective meanings given to such terms in the Loan Agreement. The Loan is evidenced by that certain promissory note dated January 31, 2006 (the “January 2006 Note”), as restated by that certain amended and restated promissory note dated August 1, 2006 (the “August 2006 Note”), that certain amended and restated promissory note dated as of March 14, 2007 (the “March 2007 Note”), and that certain amended and
restated promissory note dated as of May 2, 2007 (the “May 2007 Note”). The January 2006 Note, the August 2006 Note, the March 2007 Note and the May 2007 Note, are collectively referred to as the “Original Note.”

C. Borrower has requested that the Lender further modify certain of the Loan Documents on the terms and conditions of this Agreement, and the Lender is willing to do so.

THEREFORE, for valuable consideration, the Lender and Borrower agree as follows:

1. Modification of Loan Documents.

1.1 Principal Amount of the Loan. Effective with this Agreement, the principal amount of the Loan is hereby increased by Fifteen Million and 00/100 Dollars ($15,000,000.00) from the total amount of Seventy-Five Million and 00/100 Dollars ($75,000,000.00) to a total of Ninety Million and 00/100 Dollars ($90,000,000.00) (the “Maximum Loan Amount”).

1.2 Letter of Credit Sublimit. The Maximum Loan Amount shall continue to include the existing sublimit for a standby letter of credit in the sum of Four Hundred Seventy-Five Thousand, Forty-Four and 80/100 Dollars ($475,044.80) as set forth in Section 9 and 10 of the Loan Agreement.

1.3 Interest Rate. From the Existing Maturity Date until the New Maturity Date, interest on the unpaid principal balance of the Note shall accrue at the following interest rate or interest rates, subject to the terms of the Loan Documents: Refer to the Amended and Restated Promissory Note dated December 13, 2007, which supersedes and replaces the Promissory Note dated January 31, 2006, modified as of August 1, 2006, March 14, 2007 and May 2, 2007.

1.4 Payment of Principal and Interest. From and after the Existing Maturity Date to the New Maturity Date, principal and interest shall be payable as follows: No change.

 

 

1.5 Payment on Maturity Date. The entire unpaid principal balance of the Note and all accrued and unpaid interest thereon shall be due and payable on: June 30, 2009.

1.6 Other Modifications. The Loan Documents are further modified in the following respects:

(a) The amount on Section 2.1(a) of the Loan Agreement is hereby increased from Seventy-Five Million and 00/100 Dollars ($75,000,000.00) to Ninety Million and 00/100 Dollars ($90,000,000.00).”

(b) Both references to the date on Section 2.1(b) of the Loan Agreement are hereby replaced from August 1, 2008 to June 30, 2009.”

(c) The following are hereby added as Sections 8.3 and 8.4, respectively, to Exhibit A of the Loan Agreement:

“8.3. Liquidity. At all times, Borrower shall maintain Liquidity of not less than an amount equal to fifty percent (50%) of the Maximum Loan Amount. “Liquidity” shall mean the aggregate amount of Borrower’s unencumbered cash and unencumbered cash equivalents or any Liquid Assets.

8.4 Maintenance of Deposit Accounts. Borrower shall cause each of Greenhill Capital Partners, LLC and Greenhill Venture Partners, LLC to maintain a deposit account with Lender.”

(d) Additional Collateral. Borrower shall arrange for the delivery to Lender concurrently herewith of a Third Party Security Agreement, duly executed by Greenhill Venture Partners, LLC, granting Lender a valid, first priority lien on all collateral described therein. Such Third Party Security Agreement shall be in form and substance acceptable to Lender.

2. Execution of Amended and Restated Note. Concurrent with execution of this Agreement, Borrower shall execute the Promissory Note (Amended and Restated) dated December 13, 2007 and shall surrender the May 2007 Note. All references to the “Note” shall refer to Promissory Note (Amended and Restated) dated December 13, 2007, which shall supersede and replace the May 2007 Note.

3. Representations and Warranties. As a material inducement to the Lender’s execution of this Agreement, Borrower makes the following warranties and representations to the Lender:

3.1 Authority. Borrower has the full power and authority to enter into and perform all of its obligations under this Agreement, and this Agreement, when executed by the Persons signing this Agreement on behalf of Borrower, shall constitute a legal, valid and binding obligation of Borrower’s, enforceable in accordance with its terms. The Persons executing this Agreement on behalf of Borrower have been duly authorized to execute this Agreement by all requisite action on the part of Borrower.

3.2 Financial Statements. All statements respecting the financial condition of Borrower, any Guarantors, and any other Persons which have been furnished to the Lender (a) are accurate and complete in all respects as of the dates appearing thereon; (b) present fairly the financial condition and results of operations of the Person to whom the statement applies as of the date and for the period shown on such statement; and (c) disclose all suits, actions, proceedings and material contingent liabilities affecting the Person to whom the financial statement applies.

 

 

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3.3 Other Encumbrances. There are no encumbrances or liens affecting all or part of the Collateral, except for the liens and security interests in favor of the Lender and the Permitted Liens.

4. No Modification of Loan Documents. Nothing contained in this Agreement shall be construed to obligate the Lender to extend the time for payment of the Note or otherwise modify any of the Loan Documents in any respect, except as expressly set forth in this Agreement.

5. No Waiver. No waiver by the Lender of any of its rights or remedies in connection with the Loan shall be effective unless such waiver is in writing and signed by the Lender. The Lender’s rights and remedies under this Agreement are cumulative with and in addition to any and all other legal and equitable rights and remedies which the Lender may have in connection with the Loan.

6. Entire Agreement. This Agreement and the other Loan Documents contain the entire agreement and understanding among the parties concerning the matters covered by this Agreement and the other Loan Documents and supersede all prior and contemporaneous agreements, statements, understandings, terms, conditions, negotiations, representations and warranties, whether written or oral, made by the Lender or Borrower concerning the matters covered by this Agreement and the other Loan Documents.

7. Modifications. This Agreement may be modified only by a written agreement signed by Borrower and the Lender.

8. Descriptive Headings; Interpretation. The headings to sections of this Agreement are for convenient reference only and shall not be used in interpreting this Agreement. For purposes of this Agreement, the term “including” shall be deemed to mean “including without limitation.”

9. Indemnification. Borrower shall indemnify and hold the Lender and its officers, directors, agents, employees, representatives, shareholders, affiliates, participating lenders, successors and assigns harmless from and against any and all claims, demands, damages, liabilities actions, causes of action, lawsuits, costs and expenses, including attorneys’ fees and costs, directly or indirectly arising out of or relating to any commission or brokerage fee or charge claimed to be due or owing to any person or entity in connection with the transactions contemplated by this Agreement as a result of any act or agreement made by the Borrower.

10. No Third Party Beneficiaries. This Agreement is entered into for the sole benefit of the Lender and Borrower, and no other party shall have any right of action under this Agreement.

11. NO CLAIMS. BORROWER ACKNOWLEDGES AND AGREES THAT (A) IT HAS NO OFFSETS OR DEDUCTIONS OF ANY KIND AGAINST ANY OR ALL OF THE OBLIGATIONS; AND (B) IT HAS NO DEFENSES OR OTHER CLAIMS OR CAUSES OF ACTION OF ANY KIND AGAINST THE LENDER IN CONNECTION WITH THE LOAN OR THE COLLATERAL.

12. Fees.

12.1 Borrower shall pay to the Lender, upon execution of this Agreement, a commitment fee of $           and a documentation fee of $            totaling $           , which fees shall be debited from Borrower’s account number                        held with Lender.

12.2 Upon the Lender’s request, Borrower shall pay to the Lender all costs, charges, and expenses paid or incurred by the Lender in connection with the preparation of this Agreement and the transactions contemplated hereby, including reasonable attorneys’ fees and costs, filing fees, recording charges, and document preparation fees.

 

 

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13. Attorneys’ Fees. Borrower shall pay all costs and expenses, including attorneys’ fees and costs, incurred by the Lender in enforcing any of the terms of this Agreement or the other Loan Documents, whether or not any legal proceedings are instituted by the Lender. Without limiting the generality of the immediately preceding sentence, upon the Lender’s demand, Borrower shall reimburse the Lender for all costs and expenses, including attorneys’ fees and costs, which are incurred by the Lender in connection with any action by the Lender for relief from the automatic stay arising under Bankruptcy Code Section 362(a), 11 U.S.C. §362(a).

14. Continuing Effect of Documents. The Note and other Loan Documents, as modified by this Agreement, shall remain in full force and effect in accordance with their terms and are affirmed by Borrower.

15. Time of the Essence. Time is of the essence with respect to each provision of this Agreement.

16. Counterparts; Successors. This Agreement may be executed in counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same agreement. This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective permitted successors and assigns.

17. REVIEW BY BORROWER WITH INDEPENDENT COUNSEL. BORROWER ACKNOWLEDGES AND AGREES THAT (A) IT HAS CAREFULLY READ ALL OF THE TERMS AND CONDITIONS OF THIS AGREEMENT AND THE DOCUMENTS CONTEMPLATED BY THIS AGREEMENT AND UNDERSTANDS SUCH TERMS AND CONDITIONS, AND (B) IT HAS ENTERED INTO THIS AGREEMENT FREELY AND VOLUNTARILY, AFTER HAVING CONSULTED WITH ITS INDEPENDENT LEGAL COUNSEL OR AFTER HAVING HAD AN OPPORTUNITY TO CONSULT WITH ITS INDEPENDENT LEGAL COUNSEL.

[Signatures on following page.] 

 

 

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IN WITNESS WHEREOF, the undersigned parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

 

	
                         
 	
                         
 	
                         
 	
                        BORROWER:
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                        Greenhill & Co., Inc.
 
	
                         
 	
                         
 	
                         
 	
                        a Delaware corporation
 
	 	 	 	 	 
	
                         
 	
                          
 	
                         
 	
                        By: 
 	
          

          
 
	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                        Its: 
 	
                         
 

 

	
                         
 	
                         
 	
                         
 	
                        LENDER:
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                        First Republic Bank
 
	
                         
 	
                         
 	
                         
 	
                        a division of Merrill Lynch Bank & Trust Co., FSB
 
	 	 	 	 	 
	
                         
 	
                          
 	
                         
 	
                        By: 
 	
          

                        
 
	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                        Its: 
 	
                         
 

 

 

-5-FORM OF THIRD-PARTY SECURITY AGREEMENT

(Management and Advisory Fees)

This Third-Party Security Agreement (Management and Advisory Fees) (the “Agreement”), dated                               for reference purposes only, is executed by and between Greenhill Venture Partners, LLC, a Delaware limited liability company ( “Debtor”), and FIRST REPUBLIC BANK, a division of Merrill Lynch Bank & Trust Co., FSB (“Lender” or “Bank”), with reference to the following facts:

A. Concurrent herewith Bank and Greenhill & Co. Inc., a Delaware corporation (“Borrower”) are entering into a modification (the “Fourth Modification”) dated                              to the Loan Agreement dated January 31, 2006 and previously modified as of August 1, 2006, March 14, 2007 and May 2, 2007 (as modified, including pursuant to the Fourth Modification, the “Loan Agreement”).

B. This Agreement is being provided pursuant to the Loan Agreement to secure obligations of Borrower under the Loan Agreement, as amended and to induce Bank to enter into the Fourth Modification and to increase the amount of the loan as provided in the Fourth Modification.

THEREFORE, for valuable consideration, the receipt and adequacy of which are acknowledged, Debtor and Bank agree as follows:

1. Definitions. For purposes of this Agreement, the terms listed on Exhibit A shall have the meanings specified therein. In addition, terms not defined in Exhibit A, which are defined in Article 9 of the Code or in the Loan Agreement, shall have the meanings specified therein.

2. Security Interest.

2.1 Security Interest. Debtor hereby grants to Bank a continuing security interest in all presently existing and hereafter acquired or arising Collateral as described in Exhibit B in order to secure prompt repayment and performance of all Obligations. Upon filing of an appropriate UCC-1 Financing Statement, such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid security interest in Collateral acquired after the date hereof.

2.2 Security Documents.

(a) Bank may file all financing statements and confirmation statements as it may deem necessary to perfect and maintain perfected Bank’s security interest.

(b) Debtor shall execute and deliver, or cause to be executed and delivered, to Bank, at any time hereafter at the request of Bank, all documents which Bank may reasonably request, in form satisfactory to Bank, to perfect and maintain perfected Bank’s security interests in the Collateral and in order to fully consummate all of the transactions contemplated under this Agreement.

 

 

3. Warranties and Representations. In order to induce Bank to enter into this Agreement, Debtor warrants, represents and agrees as follows:

3.1 Management Agreement.

(a) Debtor provides management, investment and advisory services to GSAV, L.P., a Delaware limited partnership (the “Main Fund”), and to GSAV (Associates), L.P., a Delaware limited partnership (the “Associates Fund” which together with the Main Fund, are collectively referred to as the “Funds”), pursuant to that certain Management Agreement of Debtor, dated as of March 31, 2006 (the “Management Agreement”).

(b) The document provided to Bank as a Management Agreement is a full, true and correct copy of such Management Agreement and sets forth all of the terms under which Management Services are provided by Debtor for the Funds. Said document has not been modified, amended or otherwise changed in any material respect.

(c) The Management Agreement is currently in full force and effect; and there are no undisclosed modifications, supplements or addenda to such Management Agreement which would materially adversely affect Debtor’s rights to, or ability to perform its obligations under, such agreements to collect amounts due thereunder.

(d) Debtor is in compliance with all duties and material obligations required in connection with the Management Agreement.

3.2 Title to Collateral. Debtor has, and at all times will have, good title to the Collateral and to the Management Agreement free and clear of all liens, claims or interests except for Bank’s lien or other Permitted Liens as defined in the Loan Agreement.

3.3 Assignability of Rights to Collateral. Debtor may grant to Bank a security interest in the Collateral as provided above.

3.4 No Offsets. To the knowledge of Debtor, as of the date hereof all Management Fees in which Bank has been granted a security interest in connection with this Agreement are not subject to any defenses, set offs or counter claims.

3.5 Compliance. Any and all material Governmental Requirements which relate to the Management Agreement have been satisfied.

3.6 No Defaults. To the best of Debtor’s knowledge, there has occurred no event which is or, with notice or lapse of time or both, would be an Event of Default.

3.7 Warranties and Representations Cumulative. Debtor’s warranties and representations set forth in Section 3 shall be true and correct at the time of execution of this Agreement by Debtor and shall be automatically deemed repeated with each Advance under the Loan Agreement and shall be true and correct at each such time, except to the extent it relates to an earlier date in which case it shall be true and correct as of such earlier date. All representations shall be conclusively presumed to have been relied upon by Bank regardless of any investigation made or information possessed by Bank. The warranties, representations and agreements set forth herein shall be cumulative and in addition to any and all other warranties, representations and agreements which Debtor shall give, or cause to be
given, to Bank, either now or hereafter.

4. General Negative Covenants. During the term hereof and so long as any Obligations remain unpaid or unperformed, unless Bank otherwise agrees in writing, Debtor will not:

4.1 Transfer or Release of Assets. Transfer, abandon, terminate or release the Management Agreement or any item of Collateral except in the ordinary course of business.

 

 

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4.2 Management Fees. Discount, sell, transfer, waive or forfeit any of the Management Fees or any other item of Collateral except (i) to Bank or (ii) such discounts as are customarily provided for prompt payment.

4.3 Management Agreement. Without the written consent of Bank in advance, which consent will not be unreasonably withheld, terminate or make any material modifications to the Management Agreement which would (i) modify the extent to which Management Services are provided by or (ii) adversely affect the Management Fees, the prompt payment thereof or Debtor’s rights to collect such Management Fees.

5. General Affirmative Covenants. Debtor hereby covenants and agrees that during the term hereof and until all Obligations are fully paid and performed:

5.1 Reimbursements. Upon an Event of Default that is continuing, Debtor shall within five (5) Business Days following demand from Bank, reimburse Bank for all sums expended by Bank which constitute Bank Expenses.

5.2 Management Agreement. At all times, prior to the dissolution of the Funds, Debtor shall maintain in full force and effect the Management Agreement. Debtor shall also perform all of its responsibilities under the Management Agreement.

5.3 Taxes. Debtor shall promptly pay all material foreign, federal, state and local taxes and other governmental charges levied or assessed upon or against any item of Collateral, or upon or against the creation, perfection or continuance of the security interest granted hereby except to the extent contested in good faith by appropriate proceedings. To the extent that Debtor contests such taxes or charges, Debtor will take appropriate action to promptly pursue such contest to completion.

5.4 Title and Lien-Free. Debtor shall at all times have all good title to the Collateral and, at Debtor’s expense, keep all Collateral, free and clear of all security interests, liens and encumbrances, except for security interests, liens and encumbrances granted to Bank or otherwise permitted under the Loan Agreement.

5.5 Inspection. Debtor shall at all reasonable times, during Debtor’s business hours, permit Bank or its representatives to examine or inspect (upon not less than five (5) business days prior written notice) any Collateral wherever located, and to examine, inspect and copy Debtor’s books and records pertaining to the Collateral and its business and financial condition and to discuss with the other parties to the Management Agreement verifications of amounts owed to Debtor. Debtor shall pay all of Bank’s reasonable costs and expenses in making no more than one (1) such examination or inspection in each calendar year. All other costs and expenses of any such examination or inspection shall, unless an Event of Default shall have occurred and be continuing, be for the account of the Bank.

5.6 Records. Debtor shall keep materially accurate and complete books and records pertaining to the Collateral.

5.7 Reports. Upon Bank’s request, Debtor shall deliver to Bank such reports and information available to Debtor’s management concerning the Collateral as Bank may reasonably request. Such reports shall be in such form, for such periods, contain such information, and shall be rendered with such frequency as Bank may reasonably designate, but in no case more frequently than every calendar quarter end and shall be subject to normal preparation and distribution of information from the Debtor. All reports and information provided to Bank by Debtor shall be complete and accurate in all material respects at the time provided.

5.8 Deposit Account. So long as the Loan Agreement remains in effect or any of the Obligations remain outstanding, Debtor shall maintain a deposit account with Bank.

 

 

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6. Events of Default. The occurrence of any one or more of the following events shall constitute an Event of Default under this Agreement at the option of Bank if not cured within ten (10) days of such event (other than as set forth in Section 6.2):

6.1 Failure to Make Payment. Debtor fails to make any payment of funds as and when required by this Agreement.

6.2 Breach. There is a breach of any covenants contained in Section 4 or Section 5 of this Agreement or the occurrence of an Event of Default under the Loan Agreement; provided that Debtor shall have thirty (30) days to cure any breach of Section 5.3, 5.5, 5.6, 5.7 and 5.8 of this Agreement before such breach shall constitute and Event of Default; and provided further that for Section 5.6, the thirty (30)-day cure period shall commence upon a notice from the Bank of the breach.

6.3 Lien Priority. Bank shall cease to have a valid and perfected first priority lien upon any material portion of the Collateral.

6.4 Management Fees. Debtor’s interest in Management Fees is adversely affected in violation of the Negative Covenants set forth in Section 4 above.

6.5 Management Agreement. The Management Agreement is terminated prior to the dissolution of the Funds, and not replaced by a similar agreement between the Debtor and the Funds, or prior to the dissolution of the Funds, any action is taken by the Funds to terminate the Management Agreement without its replacement by a similar agreement between the Funds, and Debtor; there is a modification of the Management Agreement in violation of the Negative Covenants set forth in Section 4 above.

6.6 Voluntary Insolvency. If an Insolvency Proceeding is commenced by Debtor.

6.7 Involuntary Insolvency. If an Insolvency Proceeding is commenced against Debtor and not dismissed within sixty (60) days.

6.8 Injunction. If Debtor is enjoined, restrained or in any way prevented by court order from continuing to conduct all or any material part of Debtor’s business affairs.

6.9 Material Misrepresentations. If any material information or material representation or warranty provided to Bank by or on behalf of Debtor was materially misleading at the time provided.

6.10 Seizure of Assets. If a portion of the Debtor’s collateral assets with a value in excess of twenty-five percent (25%) of the principal amount under the Loan Agreement are attached, seized, subjected to a writ or distress warrant, or are levied upon, or come into the possession of any Judicial officer or Assignee.

7. Bank’s Rights And Remedies. If an Event of Default shall have occurred and not been cured or waived in accordance with the terms hereof, Bank shall have the following rights and powers and may, at its option, without notice of its election and without demand, do any one or more of the following, all of which are authorized by Debtor:

7.1 UCC Rights. Bank shall have all of the rights and remedies of a secured party under the Code and under all other applicable laws.

7.2 Protection of Collateral. Without notice to or demand upon Debtor or any guarantor, Bank may make such payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the Collateral, to pay, purchase, contest or compromise any

 

 

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encumbrance, charge or lien which in the opinion of Bank appears to be prior or superior to Bank’s security interest and to pay all expenses incurred in connection therewith.

7.3 Right to Payment. With respect to any items of Collateral, and without limiting Bank’s rights under Section 7.1 above, Bank may, to the extent Debtor would have the right to take the following action under the applicable documents:

(a) During such time that an Event of Default has occurred and is continuing, make demand and collect all amounts owed to Debtor in connection with the Management Fees and/or the Management Agreement and any and all amounts owed to Debtor, settle or adjust disputes and claims directly with the obligors, and compromise any obligations on terms and in any order which Bank considers advisable.

(b) In Bank’s or Debtor’s name, demand, collect, receive and give receipts for any and all money and other property due or to become due in connection with (i) the Management Agreement, including without limitation a demand on the other parties to the Management Agreement for payment of amounts arising thereunder, and (ii) the Management Fees.

7.4 Judicial Action. If Bank, at its option, seeks to take possession of any or all of the Collateral by court process, Debtor irrevocably and unconditionally agrees that a receiver may be appointed by a court for such purpose without regard to the adequacy of the security for the Obligations, and such receiver may, at Bank’s option, collect or dispose of all or part of the Collateral.

7.5 Discharge Claims. Bank may discharge claims, liens, encumbrances and taxes affecting any or all of the Collateral and take such other actions as Bank determines to be necessary or appropriate to protect the Collateral and Bank’s security interest therein. Bank, without releasing Debtor or any other party from any of the Obligations, may, but shall not be required to, perform any of the Obligations in such manner and to such extent as Bank determines to be necessary or appropriate to protect the Collateral and Bank’s security interest therein.

7 6 Remedies Cumulative. The remedies of Bank, as provided herein, shall be cumulative and concurrent, and may be pursued singularly or together at the sole discretion of Bank. No act of omission or commission by Bank shall be deemed to be a waiver or release of the same, such waiver or release to be effected only through a written document executed by Bank. A waiver or release with reference to any one event shall not be construed as continuing or as a waiver of any subsequent right, remedy or recourse as to a subsequent event.

8. Liability for Deficiency. The parties obligated under the Loan Documents shall at all times remain liable for any deficiency remaining on the Obligations after any disposition of any or all of the Collateral and after Bank’s application of any proceeds to the Obligations.

9. Authorization. Debtor hereby authorizes Bank, without notice or demand and without affecting its liability hereunder, and without consent of Debtor, from time to time to:

(a) Take and hold additional security for the payment of the Obligations with the consent of the party providing such security: and

(b) Accept additional co-guarantors for the payment of the Obligations.

10. Other Waivers.

10.1 Guarantor Waivers. To the extent that Debtor is deemed to be a guarantor of the Obligations pursuant to this Agreement, Debtor hereby waives and releases the following rights and remedies available to it: (i) all rights and defenses arising from Bank’s election of remedies, even though

 

 

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that election has destroyed Debtor’s rights of subrogation and reimbursement against Borrower by the operation of law; (ii) any right to require Bank to (A) proceed against Borrower; (B) proceed against or exhaust any security held from any person or marshalling of assets or liens; (C) proceed against any guarantor; or (D) pursue any other remedy available to Bank; (iii) any defense arising by reason of any disability or other defense of Borrower or by reason of the cessation of the liability of Borrower from any cause whatsoever; (iv) all presentments, demands for performance, notices of nonperformance, protests, notices of protest, notices of dishonor, notices of default or demand, notices of acceptance of and reliance on this Agreement and of the existence, creation, or incurring of new or additional indebtedness, notices of renewal, extension or modification of the
indebtedness; (v) the right to notice of any and all favorable and unfavorable information, whether financial or other, about Borrower, heretofore, now, or hereafter learned or acquired by Bank and all other notices to which Debtor might otherwise be entitled; (vi) any and all suretyship defenses now or hereafter available to it under the California Civil Code or the Commercial Code including, without limitation, (A) California Civil Code Sections 2799, 2808, 2809, 2810, 2815, 2819, 2820, 2821, 2822, 2838, 2839, 2845, 2846, 2847, 2848, 2849, 2850, 2899 and 3433; (B) Chapter 2 of Title 14 of the California Civil Code; or (C) California Commercial Code Section 3605; (vii) the benefit of any statute of limitations affecting its liability hereunder or the enforcement hereof; (vii) the right of subrogation, indemnity or contribution, all right to enforce any remedy Bank may have against Borrower or any other person, and any right to participate in security now or hereafter held by Bank
including, without limitation, any such right set forth in California Civil Code Sections 1845, 2848 or 2849. Any and all present and future debts and obligations of Borrower to Debtor are hereby postponed in favor of and subordinated to the full payment and performance of all indebtedness of Borrower to Bank. Debtor acknowledges that the waivers provided herein are made with Debtor’s full knowledge of the significance and consequence of such waivers and that Bank is relying on such waivers.

10.2 Application of Payments. Debtor waives the right to direct the application of any and all payments or collections at any time or times hereafter received by Bank on account of any Obligations then due, and Debtor agrees that Bank shall have the continuing exclusive right to apply and reapply such payments or collections to the Obligations then due in any manner as Bank may deem advisable.

10.3 Notices of Demand, Etc. Debtor waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension or renewal of any or all Obligations on which Debtor may in any way be liable.

10.4 Confidentiality of Accounting. Debtor waives the right to assert a confidential relationship, if any, Debtor may have with any accounting firm and/or service bureau in connection with any information requested by Bank pursuant to or in accordance with this Agreement, and agrees that Bank may contact directly any such accounting firm and/or service bureau in order to obtain such Information.

11. Actions. Bank shall have the right, but not the obligation, to commence, appear in, or defend any action or proceeding which affects or which Bank determines may affect (a) the Collateral; (b) Debtor’s or Bank’s rights or obligations under this Agreement; or (c) Borrower’s or Bank’s rights under the other Loan Documents. Whether or not Borrower is in default under the Loan Agreement, Bank shall at all times have the right to take any and all actions which Bank in its good faith business judgment determines to be necessary or appropriate to protect Bank’s interest in connection with the Loan.

12. Miscellaneous.

12.1 Taxes and Other Expenses Regarding the Collateral. If Debtor fails to pay promptly when due, to any person or entity, monies which Debtor is required to pay by reason of any provision in this Agreement, Bank may, but need not, pay the same and charge Debtors account therefor, and Debtor shall promptly reimburse Bank therefor. Bank need not inquire as to, or contest the validity of,

 

 

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any such tax or lien, and the receipt of the usual official notice for the payment thereof shall be conclusive evidence that the same was validly due and owing.

12.2 Notices. Any notice, demand or request required hereunder shall be given in writing (at the addresses set forth below) by any of the following means: (a) personal service, (b) electronic communication, whether by telex, telegram or telecopying; (c) overnight courier: or (d) registered or certified, first class U.S. mail, return receipt requested.

 

	
                        To Debtor:
 	
                         
 	
                        To Bank:
 
	
                         
 	
                         
 	
                         
 
	
                        Greenhill Venture Partners, LLC 
 300 Park Avenue
 New York, NY 10022
 Attn: General Counsel
 Fax No.: 212-389-1747
 	
                         
 	
                        First Republic Bank 
 111 Pine Street
 San Francisco, CA 94111
 Attn: Commercial Loan Administration
 Fax No.: 415-392-1413
 

Such addresses may be changed by notice to the other parties given in the same manner as above; provided any notice, demand or request sent pursuant to either subsection (a) or (b), above, shall be deemed received upon such personal service or upon dispatch by electronic means. Any notice, demand or request sent pursuant to subsection (c), above, shall be deemed received on the business day immediately following deposit with the overnight courier, and, if sent pursuant to subsection (d), above, shall be deemed received forty-eight (48) hours following deposit into the U.S. mail.

12.3 Destruction of Debtor’s Documents. Any documents, schedules, invoices or other papers delivered to Bank may be destroyed or otherwise disposed of by Bank six (6) months after they are delivered to or received by Bank unless Debtor requests, in writing, the return of the said documents, schedules, invoices or other papers and makes arrangements, at Debtor’s expense, for their return.

12.4 Choice of Law. The validity of this Agreement, its construction, interpretation and enforcement, and the rights of the parties hereunder and concerning the Collateral, shall be governed by and construed in accordance with the laws of the State of California. The parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in the County of San Francisco, State of California, or the federal courts located in the Northern District of California. Debtor waives any right Debtor may have to assert the doctrine of forum non conveniens or to object to such venue and hereby consents to any court-ordered relief.

12.5 Confidentiality. In handling all confidential information, Bank will comply with all state and federal privacy statutes and regulations applicable to banks. However, Bank may disclose all information (i) to state and federal regulatory and compliance bodies, (ii) to Bank’s attorneys, advisors, accountants, and affiliates, (iii) to representatives of the party to whom the information relates, or (iv) as may be required by appropriate legal proceedings.

12.6 Attorneys’ Fees. On demand, Debtor shall reimburse Bank for all costs and expenses including, without limitation, reasonable attorneys’ fees, costs and disbursements (excluding fees and disbursements of Bank’s in-house counsel) (collectively the “Fees and Costs”) expended or incurred by Bank in any arbitration, mediation, judicial reference, legal action, legal proceeding or otherwise in connection with (a) the amendment, interpretation and enforcement of this Agreement including, without limitation, Fees and Costs incurred in connection with any workout, attempted workout, and/or in connection with the rendering of legal advice as to Bank’s rights, remedies and obligations under this Agreement and/or the Loan Documents, (b)
collecting any sum which becomes due under this Agreement or the Loan Documents, (c) any proceeding, or any appeal, or (d) the protection, preservation of enforcement of any rights of Bank under this Agreement or the Loan Documents. Fees and Costs shall include, without limitation, attorneys’ fees and costs incurred in connection with the following: 

 

 

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(1) contempt proceedings; (2) discovery; (3) any motion, adversary proceeding, contested matter, confirmation or opposition to plan of reorganization or any other activity of any kind in connection with a bankruptcy case or relating to any petition under Title 11 of the United States Code; (4) garnishment, levy, and debtor and third-party examinations; and (5) post-judgment motions and proceedings of any kind including, without limitation, any activity taken to collection or enforce any judgment.

12.7 Agreement Binding, Assignment. This Agreement shall be binding and deemed effective when executed by Debtor and accepted and executed by Bank. This Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; provided, however, that neither Bank nor Debtor may assign this Agreement or any rights hereunder without the other party’s prior written consent and any prohibited assignment shall be absolutely void. No consent to an assignment by Bank shall release Debtor or any guarantor from their obligations to Bank.

12.8 Article and Section Headings. Article and Section headings and Article and Section numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each Article and Section applies equally to this entire Agreement.

12.9 Construction. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against Bank or Debtor, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of all parties hereto.

12.10 Time of Essence. Time is of the essence of each provision of this Agreement.

12.11 No Third-Party Beneficiaries. This Agreement is entered into for the sole protection and benefit of Bank and Debtor, and their respective permitted successors and assigns. No other Person shall have any rights or causes of action under this Agreement.

12.12 Further Assurances. Debtor will promptly and duly execute and deliver to Bank such further documents and assurances and take such further action as Bank may from time to time reasonably request including, without limitation, any amendments hereto in order to establish and protect the rights, interests and remedies created or intended to be created in favor of Bank hereunder.

12.13 Cumulative Rights. Debtor’s liability and Bank’s rights, powers, and remedies hereunder, and under any other agreement now or hereafter relating hereto, shall be cumulative and not alternative, and such rights, powers, and remedies shall be in addition to all rights, powers, and remedies given to Bank by law.

12.14 Performance of Covenants. Debtor shall perform all of its covenants under this Agreement at its sole cost and expense.

12.15 No Waiver by Bank. No waiver by the Bank of any of its rights or remedies in connection with this Agreement shall be effective unless such waiver is in writing and signed by the Bank. No act or omission by Bank to exercise a right as to any event shall be construed as continuing, or as a waiver or release of any subsequent right remedy or recourse as to a subsequent event.

12.16 Term. This Agreement shall continue in full force and effect as long as any of the Obligations are outstanding and until terminated by written agreement of Bank.

12.17 Severability. Each provision of this Agreement shall be severable from every other provision for the purpose of determining the legal enforceability of any specific provision.

 

 

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12.18 Integration. This Agreement cannot be changed or terminated orally. No modification or amendment to this Agreement shall be effective unless in writing, executed by Bank. Except as to currently existing obligations of Debtor to Bank, all prior agreements, understandings, representations, warranties, and negotiations between the parties, if any, are merged into this Agreement.

13. Joint and Several. If there is more than one party who is defined as Debtor in this Agreement, this Agreement shall be binding jointly and severally on each such Debtor and the assets of such Debtor.

14. WAIVER OF JURY TRIAL. BANK AND DEBTOR HEREBY VOLUNTARILY, UNCONDITIONALLY AND IRREVOCABLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION, ARBITRATION OR PROCEEDING IN A STATE OR FEDERAL COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR THE OBLIGATIONS, OR ANY INSTRUMENT OR DOCUMENT DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT THEREOF, OR ANY OTHER CLAIM OR DISPUTE HOWSOEVER ARISING (INCLUDING TORT AND CLAIMS FOR BREACH OF DUTY), BETWEEN BANK AND DEBTOR.

 

 

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IN WITNESS WHEREOF, Debtor has executed and delivered this Agreement on the date first hereinabove written.

 

	
                         
 	
                         
 	
                         
 	
                        DEBTOR:
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                        Greenhill Venture Partners, LLC
 
	
                         
 	
                         
 	
                         
 	
                        a Delaware limited liability company
 
	
                         
 	
                          
 	
                         
 	
                        By: 
 	
                        
  
 
	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                        Its: 
 	
                         
 

 

	
                        Accepted:
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        FIRST REPUBLIC BANK
 	
                         
 	
                         
 	
                         
 
	
                        A division of Merrill Lynch Bank & Trust Co., FSB
 	
                         
 	
                         
 	
                         
 
	
                        By: 
 	
                        
  
 	
                         
 	
                         
 	
                         
 
	
                        Name: 
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        Its: 
 	
                         
 	
                         
 	
                         
 	
                         
 

 

 

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EXHIBIT A

TO SECURITY AGREEMENT 

DEFINITIONS

Agreement means this Security Agreement, any concurrent or subsequent rider to this Security Agreement, and any extensions, supplements, amendments or modifications to this Security Agreement and/or to any such rider.

Bank means FIRST REPUBLIC BANK, a division of Merrill Lynch Bank & Trust Co., FSB, with a place of business located at 111 Pine Street, San Francisco, California 94111.

Bank Expenses mean all reasonable costs and expenses incurred by Bank in connection with this Agreement, the Note, the Loan Agreement or any other document executed in connection with this Agreement or the transactions contemplated hereby including, without limitation, (i) all reasonable costs and expenses incurred by Bank in collecting or realizing upon the Collateral (with or without suit), to correct any default or enforce any provision of this Agreement, (ii) costs and expenses of suit incurred by Bank in enforcing or defending this Agreement or any portion hereof, and costs and expenses incurred to enforce Bank s enforcement rights; and (iii) all reasonable attorneys’ fees and expenses incurred by Bank as set forth in Section 12.6.

Borrower means Greenhill & Co. Inc , a Delaware corporation.

Business Day means any day other than a day on which commercial banks in California or New York are authorized or required by law to close.

Code means the California Uniform Commercial Code, as presently in force and effect and any replacements therefore as and when such replacements become effective. Any and all terms used in this Agreement which are defined in the Code and not specifically defined herein shall be construed and defined in accordance with the meaning and definition ascribed to such terms under the Code.

Collateral has the meaning provided in Exhibit B.

Collateral Records mean all of Debtor’s existing and hereafter acquired books, records, data and other documentation relating to any or all of the Collateral.

Debtor means Greenhill Venture Partners, LLC, a Delaware limited liability company.

Debtor’s Books mean all of Debtor’s ledgers, books and records indicating, summarizing or evidencing Debtor’s assets, liabilities, the Collateral, the Obligations, and all information relating thereto and all computer programs, disc or tape files, printouts, runs and other computer-prepared information and the equipment containing such information.

Event of Default has the meaning set forth in Section 6 of this Agreement.

Governmental Requirements mean all existing and future federal, state and local laws, rules, regulations or orders applicable to Debtor or its assets, its business, the Management Agreement or the Collateral.

Insolvency Proceeding means any proceeding commenced by or against any person or entity, including Debtor, under any provision of the federal Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law including, but not limited to, assignments for the benefit of creditors, formal or informal moratoriums, compositions or extensions with some or all creditors.

 

 

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Judicial Officer or Assignee means any trustee, receiver, controller, custodian, assignee for the benefit of creditors or any other person or entity having powers or duties like or similar to the powers and duties of a trustee, receiver, controller, or assignee for the benefit of creditors.

Loan Documents mean this Agreement, the Loan Agreement, and any other document executed in connection therewith and any amendment, modification or restatement thereof.

Management Agreement has the meaning provided in Section 3.1 above and all amendments and supplements thereto and extensions and replacements thereof.

Management Fees mean all fees, rights to payment or consideration of any type paid or owed to Debtor pursuant to the Management Agreement.

Management Services mean all consulting, advising, investment or management services provided to the Funds pursuant to the Management Agreement.

Obligations mean any and all obligations, loans, advances, overdrafts, debts, liabilities covenants, promises and duties owing by Borrower to Bank pursuant to any Loan Document, agreement (including without limitation any agreement authorizing Bank to charge Borrower’s account and the Loan Documents), of any kind and description, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising and including, without limitation, all interest not paid when due and all Bank Expenses. The Obligations shall include without limitation, that certain Promissory Note (Amended and Restated), executed and delivered by Borrower concurrently herewith.

Other Terms. All terms with an initial capital letter that are used but not defined in this Agreement shall have the respective meanings given to such terms in the Loan Documents, and if not defined therein, as defined in the Code.

Person means any natural person or any entity, including any corporation, partnership, joint venture, trust, limited liability company, unincorporated organization or trustee.

Proceeds mean whatever is received upon the sale, lease, exchange, collection or other disposition of Collateral or proceeds including, without limitation, proceeds of insurance covering Collateral, tax refunds, and any and all accounts, notes, instruments, chattel paper, equipment, money, deposit accounts, goods, or other tangible and intangible property of Debtor resulting from the sale or other disposition of the Collateral, and the proceeds thereof.

 

 

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EXHIBIT B

TO SECURITY AGREEMENT

DESCRIPTION OF COLLATERAL

The Collateral consists of all of Debtor’s right, title and interest in and to the following assets whether currently existing or hereafter arising. Unless otherwise defined herein, the terms shall have the meaning provided in the Uniform Commercial Code applicable to the Security Agreement.

(a) all Management Fees;

(b) any cash distributed or owed to Debtor in respect of its partnership interest in (i) the GSAV, L.P., a Delaware limited partnership (the “Main Fund”), and GSAV (Associates), L.P., a Delaware limited partnership (the “Associates Fund” and together with the Main Fund, the “Funds.”), and (ii) GSAVP GP, L.P., the general partner of the Funds, in each case net of any taxes payable thereon and subject to any repayments required upon dissolution of the respective partnerships;

(c) all proceeds of any of the foregoing; and

(d) all Collateral Records which relate to any of the foregoing.

Management Agreement means that certain Management Agreement of Debtor, dated as of March 31, 2006.

Management Fees mean all fees, rights to payment or consideration of any type paid or owed to Debtor pursuant to the Management Agreement.

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