Document:

Exhibit 4.2

 

B. Riley Financial, Inc.

 

and

 

U.S. Bank National Association,

 

as Trustee

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of November 2, 2016

 

to the Indenture dated as of November
2, 2016

 

7.50% Senior Notes due 2021

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE 1             APPLICATION OF FIRST SUPPLEMENTAL INDENTURE	1
	 	 	 
	Section 1.01.	Application of First Supplemental Indenture.	1
	 	 	 
	ARTICLE 2             DEFINITIONS	2
	 	 	 
	Section 2.01.	Certain Terms Defined in the Indenture.	2
	 	 	 
	Section 2.02.	Definitions.	2
	 	 	 
	ARTICLE 3             FORM AND TERMS OF THE NOTES	2
	 	 	 
	Section 3.01.	Form and Dating.	2
	 	 	 
	Section 3.02.	Terms of the Notes.	3
	 	 	 
	Section 3.03.	Optional Redemption.	4
	 	 	 
	ARTICLE 4             CERTAIN COVENANTS	4
	 	 	 
	Section 4.01.	Merger, Consolidation or Sale of Assets.	4
	 	 	 
	Section 4.02.	Reporting.	5
	 	 	 
	Section 4.03.	Payment of Taxes.	5
	 	 	 
	ARTICLE 5             EVENTS OF DEFAULT	5
	 	 	 
	Section 5.01.	Events of Default.	5
	 	 	 
	ARTICLE 6             MISCELLANEOUS	6
	 	 	 
	Section 6.01.	Trust Indenture Act Controls.	6
	 	 	 
	Section 6.02.	New York Law to Govern.	6
	 	 	 
	Section 6.03.	Counterparts.	7
	 	 	 
	Section 6.04.	Severability.	7
	 	 	 
	Section 6.05.	Ratification.	7
	 	 	 
	Section 6.06.	Effectiveness.	7
	 	 	 
	Section 6.07.	Trustee Makes No Representation.	7
	 	 	 
	EXHIBIT A             Form of 7.50% Senior Note due 2021	A-1

 

     

     

    

 

FIRST SUPPLEMENTAL INDENTURE

 

FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental
Indenture”), dated as of November 2, 2016, between B. Riley Financial, Inc., a Delaware corporation (the “Company”),
and U.S. Bank National Association, as trustee (the “Trustee”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company and the Trustee executed and delivered
an Indenture, dated as of November 2, 2016 (the “Base Indenture,” and together with this First Supplemental Indenture,
the “Indenture”), to provide for the issuance by the Company from time to time of Securities to be issued in one or
more series as provided in the Indenture;

 

WHEREAS, Section 9.1 of the Base Indenture provides,
among other things, that the Company and the Trustee may enter into indentures supplemental to the Base Indenture, without the
consent of any Holders of Securities, to establish the form of any Security, as permitted by Section 2.1 of the Base Indenture,
and to provide for the issuance of the Notes (as defined below), as permitted by Section 3.1 of the Base Indenture, and to set
forth the terms thereof;

 

WHEREAS, the Company desires to execute this First Supplemental
Indenture, pursuant to Section 2.1 of the Base Indenture, to establish the form and, pursuant to Section 3.1 of the Base Indenture,
to provide for the issuance, of a series of its senior notes designated as its 7.50% Senior Notes due 2021 (the “Notes”),
in an initial aggregate principal amount of $28,750,000. The Notes are a series of securities as referred to in Section 3.1 of
the Base Indenture.

 

WHEREAS, the Company has requested that the Trustee execute
and deliver this First Supplemental Indenture;

 

WHEREAS, all things necessary have been done by the Company
to make this First Supplemental Indenture, when executed and delivered by the Company, a valid supplement to the Indenture; and

 

WHEREAS, all things necessary have been done by the Company
to make the Notes, when executed by the Company and authenticated and delivered in accordance with the provisions of the Indenture,
the valid obligations of the Company;

 

NOW, THEREFORE, in consideration of the premises stated
herein and the purchase of the Notes by the Holders thereof, the Company and the Trustee mutually covenant and agree for the equal
and proportionate benefit of the respective Holders from time to time of the Notes as follows:

 

ARTICLE
1

APPLICATION OF FIRST SUPPLEMENTAL INDENTURE

 

Section 1.01. Application of First Supplemental
Indenture.

 

Notwithstanding any other provision of this First Supplemental
Indenture, all provisions of this First Supplemental Indenture are expressly and solely for the benefit of the Holders of the Notes,
and any such provisions shall not be deemed to apply to any other securities issued under the Base Indenture and shall not be deemed
to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Notes. Unless otherwise expressly
specified, references in this First Supplemental Indenture to specific Article numbers or Section numbers refer to Articles and
Sections contained in this First Supplemental Indenture as they amend or supplement the Base Indenture, and not the Base Indenture
or any other document. All Initial Notes and Additional Notes, if any, shall be treated as a single class for all purposes of this
Indenture, including waivers, amendments, redemptions and offers to purchase.

 

    	1

     

    

 

ARTICLE
2

DEFINITIONS

 

Section 2.01. Certain Terms Defined in
the Indenture.

 

For purposes of this First Supplemental Indenture, all capitalized
terms used but not defined herein shall have the meanings ascribed to such terms in the Base Indenture, as amended hereby.

 

Section 2.02. Definitions. (a) For
the benefit of the Holders of the Notes, the following terms shall have the meanings set forth in this Section 2.02:

 

“Additional Notes” has the meaning specified in
Section 3.02(b) of this First Supplemental Indenture.

 

“Depositary” has the meaning specified in Section
3.01(c) of this First Supplemental Indenture.

 

“Global Notes” means the Notes in the form of Global
Securities issued to the Depositary or its nominee, substantially in the form of Exhibit A.

 

“Initial Notes” has the meaning specified in Section
3.02(b) of this First Supplemental Indenture.

 

“Notes” has the meaning specified in the recitals
of this First Supplemental Indenture.

 

“person” has the meaning given thereto in Section
13(d)(3) of the Exchange Act.

 

ARTICLE
3

FORM AND TERMS OF THE NOTES

 

Section 3.01. Form and Dating.

 

a) The Notes and the Trustee’s certificate
of authentication shall be substantially in the form of Exhibit A attached hereto. The Notes shall be executed on behalf of the
Company by an Officer of the Company. The Notes may have notations, legends or endorsements required by law, stock exchange rules
or usage. Each Note shall be dated the date of its authentication. The Notes and any beneficial interest in the Notes shall be
in minimum denominations of $25 and integral multiples of $25 in excess thereof.

 

b) The terms and notations contained in the
Notes shall constitute, and are hereby expressly made, a part of the Indenture, and the Company and the Trustee, by their execution
and delivery of this First Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

c) Global Notes. The Notes shall be issued
initially in the form of fully registered Global Securities, which shall be deposited on behalf of the purchasers of the Notes
represented thereby with The Depository Trust Company, New York, New York (the “Depositary”) and registered in the
name of Cede & Co., the Depositary’s nominee, duly executed by the Company and authenticated by the Trustee.

 

    	2

     

    

 

d) Book-Entry Provisions. This Section 3.01(d)
shall apply only to the Global Notes deposited with or on behalf of the Depositary. The Company shall execute and the Trustee shall,
in accordance with this Section 3.01(d), authenticate and deliver the Global Notes that shall be registered in the name of the
Depositary or the nominee of the Depositary and shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instructions.

 

e) Paying Agent. The Company initially appoints
the Trustee as Paying Agent for the payment of the principal of (and premium, if any) and interest on the Notes and the office
of the Trustee at U.S. Bank National Association, 633 West Fifth Street, 24th Floor Los Angeles, California 90071, is hereby designated
as the Place of Payment where the Notes may be presented for payment.

 

Section 3.02. Terms of the Notes. The
following terms relating to the Notes are hereby established:

 

a) Title. The Notes shall constitute
a series of Securities having the title “7.50% Senior Notes due 2021”.

 

b) Principal Amount. The aggregate
principal amount of the Notes that may be initially authenticated and delivered under the Indenture (the “Initial Notes”)
shall be $28,750,000 (except for Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in
lieu of, other Notes pursuant to Sections 3.4, 3.5, 3.6, 9.6 or 11.7 of the Base Indenture). The Company may from time to time,
without the consent of the Holders of Notes, issue additional Notes (in any such case “Additional Notes”) having the
same ranking and the same interest rate, Maturity and other terms as the Initial Notes. Any Additional Notes and the Initial Notes
shall constitute a single series under the Indenture and all references to the Notes shall include the Initial Notes and any Additional
Notes unless the context otherwise requires.

 

c) Maturity Date. The entire outstanding
principal amount of the Notes shall be payable on October 31, 2021.

 

d) Interest Rate. The rate at which
the Notes shall bear interest shall be 7.50% per annum; the date from which interest shall accrue on the Notes shall be November
2, 2016, or the most recent Interest Payment Date to which interest has been paid or provided for; the Interest Payment Dates for
the Notes shall be January 31, April 30, July 31 and October 31 of each year, beginning January 31, 2017; the interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date, will be paid, in immediately available funds, to the Persons
in whose names the Notes (or predecessor Notes) are registered (which shall initially be the Depositary) at the close of business
on the Regular Record Date for such interest, which shall be the January 15, April 15, July 15 or October 15 (whether or not a
Business Day), as the case may be, preceding such Interest Payment Date. Interest shall be computed on the basis of a 360-day year
comprised of twelve 30-day months. For so long as the Notes are represented in global form by one or more Global Securities, all
payments of principal (and premium, if any) and interest shall be made by wire transfer of immediately available funds to the Depositary
or its nominee, as the case may be, as the registered owner of the Global Security representing such Notes. In the event that definitive
Notes shall have been issued, all payments of principal (and premium, if any) and interest shall be made by wire transfer of immediately
available funds to the accounts of the registered Holders thereof; provided, that the Company may elect to make such payments at
the office of the Paying Agent in The City of Los Angeles; and provided further, that the Company may at its option pay interest
by check to the registered address of each Holder of a definitive Note.

 

e) Currency. The currency of denomination
of the Notes is United States Dollars. Payment of principal of and interest and premium, if any, on the Notes shall be made in
United States Dollars.

 

f) Sinking Fund. The Notes are not
subject to any sinking fund.

 

    	3

     

    

 

g) Additional Interest. At the Company’s
election, the sole remedy with respect to an Event of Default due to a failure to comply with reporting requirements under the
Trust Indenture Act or under Section 4.02 below, for the first 180 calendar days after the occurrence of such Event of Default,
consists exclusively of the right to receive additional interest on the Notes at an annual rate equal to (1) 0.25% for the first
90 calendar days after such default and (2) 0.50% for calendar days 91 through 180 after such default. On the 181st day after such
Event of Default, if such violation is not cured or waived, the Trustee or the Holders of not less than 25% of the outstanding
principal amount of the Notes may declare the principal, together with accrued and unpaid interest, if any, on the Notes to be
due and payable immediately. If the Company chooses to pay such additional interest, the Company must notify the Trustee and the
Holders of the Notes by certificate of the Company’s election at any time on or before the close of business on the first
business day following the Event of Default.

 

Section 3.03. Optional Redemption.

 

a) The provisions of Article 11 of the Base
Indenture, as supplemented by the provisions of this First Supplemental Indenture, shall apply to the Notes.

 

b) The Notes shall be redeemable as a whole
or in part at any time and from time to time on or after October 31, 2018 at the Company’s option, upon notice not fewer
than 30 days and not more than 60 days prior to the date fixed for redemption to each Holder of Notes to be redeemed, at a redemption
price equal to the principal amount plus any unpaid interest payable thereon accrued to, but excluding, the date fixed for redemption.

 

c) If less than all of the Notes are to be
redeemed, the particular Notes to be redeemed will be selected not more than 45 days prior to the redemption date by the Trustee
from the outstanding Notes not previously called for redemption, by lot, or in the Trustee’s discretion, on a pro-rata basis,
provided that the unredeemed portion of the principal amount of any Notes will be in an authorized denomination (which will not
be less than the minimum authorized denomination) for such Notes. The Trustee will promptly notify us in writing of the Notes selected
for redemption and, in the case of any Notes selected for partial redemption, the principal amount thereof to be redeemed.

 

d) Unless the Company defaults on the payment
of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes called for redemption.

 

ARTICLE
4

CERTAIN COVENANTS

 

The following covenants shall be applicable to the Company for
so long as any of the Notes are Outstanding. Nothing in this Article will, however, affect the Company’s rights or obligations
under any other provision of the Base Indenture or this First Supplemental Indenture.

 

Section 4.01. Merger, Consolidation or
Sale of Assets.

 

The Company shall not merge or consolidate with or into any
other Person (other than a merger of a wholly owned Subsidiary of the Company into the Company) or sell, transfer, lease, convey
or otherwise dispose of all or substantially all of its property (provided that, for the avoidance of doubt, a pledge of assets
pursuant to any secured debt instrument of the Company or its Subsidiaries shall not be deemed to be any such sale, transfer, lease,
conveyance or disposition) in one transaction or series of related transactions unless:

 

    	4

     

    

 

a) the Company shall be the surviving Person
(the “Surviving Person”) or the Surviving Person (if other than the Company) formed by such merger or consolidation
or to which such sale, transfer, lease, conveyance or disposition is made shall be a corporation or limited liability company organized
and existing under the laws of the United States of America, any state thereof or the District of Columbia;

 

b) the Surviving Person (if other than the
Company) expressly assumes, by supplemental indenture in form reasonably satisfactory to the Trustee, executed and delivered to
the Trustee by such Surviving Person, the due and punctual payment of the principal of, and premium, if any, and interest on, all
the Notes Outstanding, and the due and punctual performance and observance of all the covenants and conditions of this Indenture
to be performed by the Company;

 

c) immediately before and immediately after
giving effect to such transaction or series of related transactions, no Default or Event of Default shall have occurred and be
continuing; and

 

d) in the case of a merger where the Surviving
Person is other than the Company, the Company shall deliver, or cause to be delivered, to the Trustee, an Officer’s Certificate
and an Opinion of Counsel, each stating that such transaction and the supplemental indenture, if any, in respect thereto comply
with this Section 4.01 and that all conditions precedent in this Indenture relating to such transaction have been complied with.

 

Section 4.02. Reporting.

 

If, at any time, the Company is not subject to the reporting
requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the Securities and Exchange Commission,
the Company agrees to furnish to Holders and Trustee, for the period of time during which the Notes are outstanding, its audited
annual consolidated financial statements, within 90 days of its fiscal year end, and unaudited interim consolidated financial
statements, within 45 days of its fiscal quarter end (other than our fourth fiscal quarter). All such financial statements
will be prepared, in all material respects, in accordance with Generally Accepted Accounting Principles, as applicable.

 

Section 4.03. Payment of Taxes.

 

The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, all taxes, assessments and governmental charges levied or imposed upon the Company or upon the income,
profits or property of the Company, except where the failure to do so would not be reasonably expected to have a material
adverse effect on the business, assets, financial condition or results of operations of the Company; provided, however, that
the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment or charge
whose amount, applicability or validity is being contested in good faith by appropriate proceedings.

 

ARTICLE
5

EVENTS OF DEFAULT

 

Section 5.01. Events of Default.

 

Solely for the benefit of the Holders of the Notes, Section
5.1 of the Base Indenture is hereby deleted in its entirety and replaced with the following:

 

“Section 5.1 Events of Default

 

“Event of Default”, wherever used herein with respect
to the Notes means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule
or regulation of any administrative or governmental body):

 

(1) default in the payment of any interest
upon any Note when it becomes due and payable, and continuance of such default for a period of 30 days;

 

(2) default in the payment of the principal
of any Note when due and payable;

 

    	5

     

    

 

(3) default in the performance, or breach,
of any covenant of the Company in this Indenture with respect to the Notes, and continuance of such default or breach for a period
of 60 days after there has been sent to the Company by the Trustee or to the Company and the Trustee by the Holders of at least
25% in principal amount of the Notes, a written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a “Notice of Default” hereunder;

 

(4) the entry by a court having jurisdiction
in the premises of (A) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable
federal or state bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company a bankrupt
or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in
respect of the Company under any applicable federal or state law, or appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed
and in effect for a period of 90 consecutive days; or

 

(5) the commencement by the Company of a voluntary
case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law or of any
other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree or order for
relief in respect of the Company in an involuntary case or proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal or state law, or
the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of the Company or of any substantial part of its property, or the making by
the Company of an assignment for the benefit of creditors, or the admission by the Company in writing of its inability to pay its
debts generally as they become due, or the taking of corporate action by the Company in furtherance of any such action.

 

Subject to the provisions of Section 6.1 hereof, the Trustee
shall not be deemed to have knowledge of an Event of Default hereunder (except for those described in paragraphs (1) and (2) above
if the Trustee is then the Paying Agent) unless a Responsible Officer of the Trustee shall have actual knowledge thereof or shall
have received written notice thereof and such notice references the Notes and this Indenture.

 

ARTICLE
6

MISCELLANEOUS

 

Section 6.01. Trust Indenture Act Controls.

 

If any provision of this First Supplemental Indenture limits,
qualifies or conflicts with another provision which is required to be included in this First Supplemental Indenture by the Trust
Indenture Act, the required provision shall control. If any provision of this First Supplemental Indenture modifies or excludes
any provision of the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed to apply to
this First Supplemental Indenture as so modified or to be excluded, as the case may be.

 

Section 6.02. New York Law to Govern.

 

This First Supplemental Indenture and the Notes shall be governed
by and construed in accordance with the laws of the State of New York.

 

    	6

     

    

 

Section 6.03. Counterparts.

 

This First Supplemental Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument. The exchange of copies of this First Supplemental Indenture and of signature pages by facsimile,
PDF or other electronic transmission shall constitute effective execution and delivery of this First Supplemental Indenture as
to the parties hereto and may be used in lieu of the original First Supplemental Indenture and signature pages for all purposes.

 

Section 6.04. Severability. If any
provision of this First Supplemental Indenture or the Notes shall be held to be illegal or unenforceable under applicable law,
then the remaining provisions hereof shall be construed as though such invalid, illegal or unenforceable provision were not contained
therein.

 

Section 6.05. Ratification.

 

The Base Indenture, as supplemented
and amended by this First Supplemental Indenture, is in all respects ratified and confirmed. The Indenture shall be read, taken
and construed as one and the same instrument. All provisions included in this First Supplemental Indenture supersede any conflicting
provisions included in the Base Indenture unless not permitted by law. The Trustee accepts the trusts created by the Indenture,
and agrees to perform the same upon the terms and conditions of the Indenture.

 

Section 6.06. Effectiveness.

 

The provisions of this First Supplemental Indenture shall become
effective as of the date hereof.

 

Section 6.07. Trustee Makes No Representation.

 

The recitals contained herein are made by the Company and not
by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this First Supplemental Indenture. All rights, protections, privileges, indemnities and benefits
granted or afforded to the Trustee under the Indenture shall be deemed incorporated herein by this reference and shall be deemed
applicable to all actions taken, suffered or omitted by the Trustee in each of its capacities hereunder, and each agent, custodian
and other Person employed to act under this First Supplemental Indenture.

 

[Remainder of page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this First
Supplemental Indenture to be duly executed as of the date first above written.

 

	 	B. RILEY FINANCIAL, INC.
	 	 
	 	By:	/s/ Phillip J. Ahn
	 	 	Name: Phillip J. Ahn
	 	 	Title: Chief Financial Officer & Chief Operating Officer

 

[Signature Page to Supplemental Indenture]

 

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	 	U.S. Bank National Association, as Trustee
	 	 
	 	By:	/s/ Paula Oswald
	 	 	Name: Paula Oswald
	 	 	Title: Vice President

 

[Signature Page to Supplemental Indenture]

 

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EXHIBIT A

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. THIS
GLOBAL SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR ITS NOMINEE ONLY
IN LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY,
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

B. RILEY FINANCIAL, INC.

 

7.50% Senior Note due 2021

 

	No. [●]	Principal Amount
	CUSIP No. 05580M 207	$28,750,000

 

B. Riley Financial, Inc., a Delaware corporation (hereinafter
called the “Company”, which term includes any successor Person under the Indenture referred to below), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of Twenty Eight Million Seven Hundred Fifty
Thousand U.S. Dollars (U.S. $28,750,000) on October 31, 2021 and to pay interest thereon from November 2, 2016 or from the most
recent Interest Payment Date to which interest has been paid or duly provided for, quarterly on January 31, April 30, July 31 and
October 31 in each year (each an “Interest Payment Date”), beginning January 31, 2017 at the rate of 7.50% per annum,
until the principal hereof is paid or duly made available for payment. The interest so payable and punctually paid or duly provided
for on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Note (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be
the January 15, April 15, July 15 or October 15 (whether or not a Business Day), as the case may be, preceding such Interest Payment
Date. Any such interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith
cease to be payable to the Holder hereof on the relevant Regular Record Date by virtue of having been such Holder, and may be paid
to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
the Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture.

 

    	A-1

     

    

 

Payment of the principal of (and premium, if any) and the interest
on this Note shall be made at the designated office of the Trustee (as defined below) at U.S. Bank National Association, 633 West
Fifth Street, 24th Floor Los Angeles, California 90071, in such currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however, for so long as the Notes are represented in global
form by one or more Global Securities, all payments of principal (and premium, if any) and interest shall be made by wire transfer
of immediately available funds to the Depositary or its nominee, as the case may be, as the registered owner of the Global Security
representing such Notes. In the event that definitive Notes shall have been issued, all payments of principal (and premium, if
any) and interest shall be made by wire transfer of immediately available funds to the accounts of the registered Holders thereof;
provided, that the Company may at its option pay interest by check to the registered address of each Holder of a definitive Note.

 

This Note is one of the duly authorized series of Securities
of the Company, designated as the Company’s “7.50% Senior Notes due 2021”, initially limited to an aggregate
principal amount of $28,750,000 all issued or to be issued under and pursuant to an Indenture (the “Base Indenture”),
dated as of November 2, 2016, between the Company and U.S. Bank National Association, as trustee (hereinafter referred to as the
“Trustee”), as supplemented by the First Supplemental Indenture thereto, dated as of November 2, 2016 (the “First
Supplemental Indenture”, and together with the Base Indenture, the “Indenture”). Reference is hereby made to
the Indenture for a description of the respective rights, limitation of rights, obligations, duties and immunities thereunder of
the Trustee, the Company and the Holders of the Notes.

 

The Company may redeem the Notes as a whole or in part, at any
time and from time to time on or after October 31, 2018 at the Company’s option, upon notice sent not fewer than 30 days
and not more than 60 days prior to the date fixed for redemption to each Holder of Notes to be redeemed, at a redemption price
equal to the principal amount plus any unpaid interest payable thereon accrued to, but excluding, the date fixed for redemption.

 

If less than all of the Notes are to be redeemed, the Notes
to be redeemed shall be selected not more than 45 days prior to the redemption date by the Trustee from the outstanding Notes not
previously called for redemption, by lot, or in the Trustee’s discretion, on a pro-rata basis, provided that the unredeemed
portion of the principal amount of any Notes will be in an authorized denomination (which will not be less than the minimum authorized
denomination) for such Notes. The Trustee will promptly notify the Company in writing of the Notes selected for redemption and,
in the case of any Notes selected for partial redemption, the principal amount thereof to be redeemed.

 

The Notes are not subject to any sinking fund.

 

If an Event of Default with respect to the Notes shall occur
and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect provided in the
Indenture.

 

    	A-2

     

    

 

The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities
of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of
not less than a majority in aggregate principal amount of the Securities at the time Outstanding of each series affected thereby.
The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities
of any series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this
Note or of the Indenture shall alter or impair the right of the Holder of this Note, which is absolute and unconditional, to receive
payment of the principal of and interest on this Note at the times herein and in the Indenture prescribed and to institute suit
for the enforcement of any such payment unless the Holder of this Note shall have consented to the impairment of such right.

 

As provided in the Indenture and subject to certain limitations
set forth therein, the transfer of this Note may be registered in the Security Register, upon surrender of this Note for registration
of transfer at the office or agency of the Company in any place where the principal of (and premium, if any) and interest on this
Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and
the Security Registrar duly executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon one or
more new Notes of this series and of any authorized denominations and of a like aggregate principal amount and tenor, shall be
issued to the designated transferee or transferees.

 

The Notes are issuable only in registered form without coupons
in minimum denominations of $25 and integral multiples of $25 in excess thereof. Subject to certain limitations therein set forth
in the Indenture and in this Note, the Notes are exchangeable for a like aggregate principal amount of Notes of this series in
different authorized denominations, as requested by the Holders surrendering the same.

 

No service charge shall be made for any such registration of
transfer or for exchange of this Note, but the Company or the Trustee may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any registration of transfer or exchange of a Note, other than
in certain cases provided in the Indenture.

 

Prior to due presentment of this Note for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered
as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

 

The Indenture contains provisions whereby (i) the Company may
be discharged from its obligations with respect to the Notes (subject to certain exceptions) or (ii) the Company may be released
from its obligations under specified covenants and agreements in the Indenture, in each case if the Company irrevocably deposits
with the Trustee money or U.S. Government Obligations sufficient to pay and discharge the entire indebtedness on all Notes of this
series, and satisfies certain other conditions, all as more fully provided in the Indenture.

 

This Note shall be governed by and construed in accordance with
the laws of the State of New York.

 

All terms used in this Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

 

    	A-3

     

    

 

Unless the certificate of authentication hereon has been executed
by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized signatories, this Note shall
not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed.

 

Dated: [●]

 

	 	B. RILEY FINANCIAL, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Global Note]

 

    	A-4

     

    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

Dated: [●]

 

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 
	 	By:	 
	 	 	Authorized Signatory

 

[Signature Page to Global Note]

 

    	1

     

    

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations.

 

	TEN COM - as tenants	UNIF GIFT MIN ACT - . . .Custodian
	in common	(Cust) (Minor)
	TEN ENT - as tenants by	Under Uniform Gifts to
	the entireties	Minor Act
	JT TEN - as joint tenants	 	 
	with right of	 
	survivorship and	 
	not as tenants in	 
	common	 	(State)

 

Additional abbreviations may also be used though not in the
above list.

 

 

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto

 

 

 

(Please insert Assignee’s legal name)

 

 

 

(Please insert Social Security or other identifying number of
Assignee)

 

 

 

 

 

 

 

(Please print or typewrite name and address including postal
zip code of Assignee)

 

the within Note of B. RILEY FINANCIAL, INC. and does hereby
irrevocably constitute and appoint attorney to transfer the said Note on the books of the Company, with full power of substitution
in the premises.

Dated:

 

	 	Your Signature:  	 
	 	 	(Sign exactly as your name appears on the
	 	 	face of this Note)

 

 

[NOTICE: The signature to this assignment must correspond with
the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change
whatever.]

 

    	1enva-ex101_427.htm

Exhibit 10.1

 

FIRST OMNIBUS AMENDMENT+

July 26, 2016

This FIRST OMNIBUS AMENDMENT, dated as of the date hereof (this “Amendment”) is by and among Enova International Inc., Enova Finance 5, LLC, NetCredit Loan Services, LLC (f/k/a Enova Lending Services, LLC), EFR 2016-1, LLC (the “Issuer”), Bankers Trust Company, in its capacity as indenture trustee and securities intermediary (the “Indenture Trustee”), First Associates Loan Servicing LLC (“First Associates”), Jefferies Funding LLC, WF 18, LLC and Drawbridge Special Opportunities Fund LP.  Whenever used in this Amendment and unless the context requires a different meaning, capitalized terms used herein and not otherwise expressly defined herein shall have the meanings assigned to such terms in Part I of Appendix A to the Indenture dated as of January 15, 2016 by and between the Issuer and the Indenture Trustee.

WHEREAS, the Issuer, the Master Servicer, the Administrative Agent, each Initial Term Note Holder and each Variable Funding Note Noteholder desire to amend the Note Purchase Agreement; 

WHEREAS, the Issuer and the Indenture Trustee desire to amend the Indenture; 

WHEREAS, the Master Servicer, the Asset Servicers, the Custodian, the Issuer, the Indenture Trustee, the Transferor and the Verification Agent desire to amend the Servicing Agreement; and

WHEREAS, the Seller and the Purchaser desire to amend the Receivables Purchase Agreement.

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.Amendments to Note Purchase Agreement.  

	
 
	
i.
	
Clause (d) of Section 2.04 of the Note Purchase Agreement is hereby amended and restated as follows:

“(d)Each Variable Funding Note Noteholder shall fund the percentage of the Requested Advance (its “Ratable Portion”) determined by dividing (i) the amount of such Variable Funding Note Noteholder’s Funding Commitment by (ii) the aggregate Funding Commitments of all Variable Funding Note Noteholders.  Subject to satisfaction of the Advance Conditions, each Variable Funding Note Noteholder shall deliver immediately available funds in an amount (an “Advance”) equal to its Ratable Portion of the Requested Advance to the Bankers 

 

	
+
	
Confidential Treatment Requested.  Confidential portions of this document have been redacted and have been separately filed with the Securities and Exchange Commission.

 

	
***
	
Indicates confidential material redacted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the redacted material.

 

Trust account specified in a separate letter agreement by and among the parties hereto no later than 2:00 p.m., New York City time, on the Applicable Advance Date.  Once all funds have been deposited, then upon Banker’s Trust’s receipt of notice and instruction from the Administrative Agent (which for the avoidance of doubt can be in the form of electronic correspondence) no later than 3:00 p.m. New York City time, Bankers Trust shall deliver the funds deposited into such account to an account specified by the Issuer (the information for which shall be provided to Bankers Trust by the Administrative Agent as part of the aforementioned notice and instruction); provided, however, that if all Variable Funding Note Noteholders do not deposit their Ratable Portion of the Requested Advance to the Bankers Trust account by 2:00 p.m. New York City time, on the applicable Advance Date, then all funds on deposit in such account shall be returned to the respective parties who made such deposits; provided, further, that any Variable Funding Note Noteholder who made a deposit of its Ratable Portion of the Requested Advance to the Bankers Trust account by 2:00 p.m. New York City time on such Advance Date shall not be deemed to be a Defaulting Variable Funding Note Noteholder if funds are subsequently returned to such Variable Funding Note Noteholder pursuant to the first proviso of this Section 2.04(d); provided further that if the Administrative Agent does not provide to Bankers Trust notice and instruction for delivery of the funds deposited in such account to an account specified by the Issuer by 3:00 p.m., New York City time, then Bankers Trust shall not be required to deliver such funds into the account specified by the Issuer until the next Business Day.

	
 
	
ii.
	
Section 2.08 of the Note Purchase Agreement is hereby amended and restated as follows:

“Section 2.08Unused Fee.On each Payment Date from the Initial Payment Date until the Funding Period Termination Date, the Issuer shall pay to the Variable Funding Note Noteholders a fee (the “Unused Fee”) equal to the product of: (a) the excess of (i) the lesser of (A) an amount equal to the Maximum Principal Amount, minus the sum of (x) the aggregate Outstanding Principal Amount of all Outstanding Term Notes and (y) the Average Variable Funding Note Balance, and (B) $20,000,000, over (ii) the Average Variable Funding Note Balance; (b) a per annum rate of ***%; and (c) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, payable in arrears on each Payment Date.”

	
 
	
iii.
	
Section 2.11(a) of the Note Purchase Agreement is hereby amended by adding the following clause at the end:

“(iv) for purposes of the making and funding of a Requested Advance, the Ratable Portion to be funded by each non-Defaulting Variable Funding Note Noteholder shall be determined without reference to the Funding Commitment of the Defaulting Variable Funding Note Noteholder, and the Maximum Advance Amount shall be reduced as appropriate to reflect the impact of the Defaulting Variable Funding Note Noteholder.”

2

 

 

2.Amendment to Indenture, Part I of Appendix A. 

	
 
	
i.
	
The definition of “ACH Sweep Account” is hereby added in the correct alphabetical order as follows:

““ACH Sweep Account” shall mean an account to be established prior to the Cut-Over Date at U.S. Bank National Association, bearing the account number set forth in that certain side letter dated as of July 26, 2016, by and among the Master Servicer, the Issuer, the Administrative Agent, each Variable Funding Note Noteholder and Bankers Trust, which is held by the Indenture Trustee on behalf of the Noteholders, which is subject to the ACH Sweep Blocked Account Control Agreement, and for which an Obligor shall remit all ACH payments, if applicable, under its applicable Contract.” 

	
 
	
ii.
	
The definition of “ACH Sweep Blocked Account Control Agreement” is hereby added in the correct alphabetical order as follows:

““ACH Sweep Blocked Account Control Agreement” shall mean the  Blocked Account Control Agreement, dated as of a date prior to the Cut-Over Date, by and among Enova, the Indenture Trustee and U.S. Bank National Association, as the depositary bank.”

	
 
	
iii.
	
The definition of “Collection Period” is hereby amended and restated as follows:

““Collection Period” shall mean, with respect to each Payment Date, the period from and including the first day of the calendar month immediately preceding such Payment Date to and including the last day of such calendar month; provided, however, that the initial Collection Period for the Initial Term Note Investment Pool shall be from the Closing Date to and including the last day of the calendar month preceding the month in which the Initial Payment Date occurs.”

	
 
	
iv.
	
The definition of “Collection Receipt Account” is hereby amended and restated as follows:

““Collection Receipt Accounts” shall mean the accounts (1) bearing account number ***, held by the Account Holder on behalf of the Master Servicer, and (2) bearing account number ***, held by the Account Holder on behalf of the Master Servicer, which are subject to the Blocked Account Control Agreement, and for which an Obligor may remit (i) prior to the Cut-Over Date all payments under its applicable Contract, and (ii) on and after the Cut-Over Date all payments under its applicable Contract other than ACH payments, which shall be remitted to the ACH Sweep Account.”

	
 
	
v.
	
The definition of “Credit Counseling Receivable” is hereby added in the correct alphabetical order as follows:

““Credit Counseling Receivable” shall have the meaning specified in Section 2.02(d)(ix) of the Servicing Agreement.”

3

 

 

	
 
	
vi.
	
The definition of “Cut-Over Date” is hereby added in the correct alphabetical order as follows:

““Cut-Over Date” shall have the meaning specified in Section 2.02(a)(i) of the Servicing Agreement.”

	
 
	
vii.
	
The definition of “Daily Data File” is hereby added in the correct alphabetical order as follows:

““Daily Data File” shall mean the daily data file delivered to the Backup Servicer pursuant to Section 2.06 of the Servicing Agreement, substantially in the form set forth in Exhibit A to that First Omnibus Amendment, dated as of July 26, 2016, by and among Enova International Inc., Enova Finance 5, LLC, NetCredit Loan Services, LLC (f/k/a Enova Lending Services, LLC), EFR 2016-1, LLC, Bankers Trust Company, First Associates Loan Servicing LLC, Jefferies Funding LLC, WF 18, LLC and Drawbridge Special Opportunities Fund LP.

	
 
	
viii.
	
The definition of “Daily Remittance Report” is hereby added in the correct alphabetical order as follows:

““Daily Remittance Report” shall mean a report of the Master Servicer, in a form approved by the Majority Holders, that, with respect to each Collection Receipt Account and the ACH Sweep Account, shall be delivered on each Business Day on and after the Cut-Over Date and that shall (i) specify the amount of Collections received in each Collection Receipt Account and ACH Sweep Account, as applicable, on the receipt date specified in such report, (ii) specify the amount of Collections transferred from each Collection Receipt Account and the ACH Sweep Account, as applicable, to the Collection Account on the Business Day on which such report is delivered and (iii) reconcile any difference between the amount described in the preceding clauses (i) and (ii).

	
 
	
ix.
	
The definition of “Due Date Adjustment” is hereby added in the correct alphabetical order as follows:

““Due Date Adjustment” shall mean, with respect to a Serviced Receivable and a related Obligor, the reset of an Obligor Due Date, so long as the reset Obligor Due Date is after the corresponding original due date and not later than the next scheduled Obligor Due Date specified in the related Serviced Receivable.”

	
 
	
x.
	
The definition of “Eligible Refinancing Receivable” is hereby amended and restated as follows:

““Eligible Refinancing Receivable” shall mean a Receivable that (i) was originated or acquired in connection with a Refinancing as to which the refinanced Serviced Receivable’s status was current with no amount past due as of the date of such Refinancing and (ii) was transferred to the Issuer prior to June 28, 2016.”

4

 

 

	
 
	
xi.
	
The definition of “Interest Period” is hereby amended and restated as follows:

““Interest Period” shall mean, (a) with respect to each Term Note and any Payment Date, the period from and including the Payment Date immediately preceding such Payment Date (or in the case of the Initial Payment Date for the Initial Term Note, from and including the Closing Date and in the case of the Initial Payment Date for a Term Note A or Term Note B from and including the applicable Conversion Date) to but excluding such Payment Date, and (b) with respect to a Variable Funding Note and any Payment Date, (i) the period from and including the first day of the calendar month (or in the case of the Initial Payment Date from and including the Closing Date) in which the Variable Funding Note Investment Pool for such Variable Funding Note was created or (ii)(A) if the last Business Day of the calendar month immediately preceding the calendar month in which the Variable Funding Note Investment Pool for such Variable Funding Note was created is a Conversion Date or (B) if the first Business Day of the calendar month in which the Variable Funding Note Investment Pool for such Variable Funding Note was created is a Conversion Date, then the period from and including such Conversion Date, to but excluding the related Conversion Date immediately preceding such Payment Date.”

	
 
	
xii.
	
The definition of “Investment Pool Cumulative Net Loss Trigger” is hereby amended and restated as follows:

 ““Investment Pool Cumulative Net Loss Trigger” shall occur with respect to a Collection Period and a Term Note Investment Pool in the event that the Investment Pool Cumulative Net Loss Ratio for such Term Note Investment Pool on the last day of the Collection Period set forth below is greater than the corresponding Trigger Level set forth below; provided, however, that Collection Period 1 for the Term Note Investment Pool for which the Conversion Date was May 31, 2016 (i.e., Term Note A4 (CUSIP 26845H9) and Term Note B4 (CUSIP 26845H AJ5)) shall be the month of May, 2016, and the subsequent Collection Periods for such Term Note Investment Pool shall follow sequentially:  

				
	
Collection Period of Term Note Investment Pool
	
Trigger Level for Initial Term Note Investment Pool Cumulative Net Loss Ratio
	
Trigger Level for Term Note A Investment Pool Cumulative Net Loss Ratio
	
Trigger Level for Term Note B Investment Pool Cumulative Net Loss Ratio

	
1
	
***%
	
***%
	
***%

	
2
	
***%
	
***%
	
***%

	
3
	
***%
	
***%
	
***%

	
4
	
***%
	
***%
	
***%

	
5
	
***%
	
***%
	
***%

5

 

 

				
	
6
	
***%
	
***%
	
***%

	
7
	
***%
	
***%
	
***%

	
8
	
***%
	
***%
	
***%

	
9
	
***%
	
***%
	
***%

	
10
	
***%
	
***%
	
***%

	
11
	
***%
	
***%
	
***%

	
12
	
***%
	
***%
	
***%

	
13
	
***%
	
***%
	
***%

	
14
	
***%
	
***%
	
***%

	
15
	
***%
	
***%
	
***%

	
16
	
***%
	
***%
	
***%

	
17
	
***%
	
***%
	
***%

	
18
	
***%
	
***%
	
***%

	
19
	
***%
	
***%
	
***%

	
20
	
***%
	
***%
	
***%

	
21
	
***%
	
***%
	
***%

	
22
	
***%
	
***%
	
***%

	
23
	
***%
	
***%
	
***%

	
24 
	
***%
	
***%
	
***%

	
25
	
***%
	
***%
	
***%

	
26
	
***%
	
***%
	
***%

	
27
	
***%
	
***%
	
***%

	
28
	
***%
	
***%
	
***%

	
29
	
***%
	
***%
	
***%

6

 

 

				
	
30
	
***%
	
***%
	
***%

	
31
	
***%
	
***%
	
***%

	
32
	
***%
	
***%
	
***%

	
33
	
***%
	
***%
	
***%

	
34
	
***%
	
***%
	
***%

	
35
	
***%
	
***%
	
***%

	
36
	
***%
	
***%
	
***%

	
37
	
***%
	
***%
	
***%

	
38
	
***%
	
***%
	
***%

	
39
	
***%
	
***%
	
***%

	
40
	
***%
	
***%
	
***%

	
41
	
***%
	
***%
	
***%

	
42
	
***%
	
***%
	
***%

	
43
	
***%
	
***%
	
***%

	
44
	
***%
	
***%
	
***%

	
45
	
***%
	
***%
	
***%

 

	
 
	
xiii.
	
The definition of “Payment Deferral” is hereby amended and restated as follows:

““Payment Deferral” shall mean, with respect to a Serviced Receivable and a related Obligor, the deferral of a scheduled installment payment from such Obligor’s next Obligor Due Date to a new Obligor Due Date, which follows the Obligor Due Date that theretofore had been the final scheduled maturity date of such Serviced Receivable.”

	
 
	
xiv.
	
The definition of “Variable Funding Note Payment Amount” is hereby amended and restated as follows:  

““Variable Funding Note Payment Amount” shall mean, with respect to each Payment Date, an amount equal to the sum of (i) the Variable Funding Note Monthly Interest, (ii) the Unused Fee (which amount shall be allocable to the related Variable Funding Note 

7

 

 

Investment Pool for which such Payment Date is its Initial Payment Date (occurring approximately 45 days after the related Conversion Date)) and (iii) any Increased Costs Amounts (which amount shall be allocable to the related Term Note Investment Pool for which such Payment Date is its Initial Payment Date (occurring approximately 45 days after the related Conversion Date)).”

	
 
	
xv.
	
The definition of “Waiver Amount” is hereby added in the correct alphabetical order as follows:

““Waiver Amount” shall mean, with respect to any Collection Period, the aggregate amount of all Waiver Credits granted in respect of Eligible Receivables in all Investment Pools during such Collection Period, net of all returns of Waiver Credits previously granted in respect of Eligible Receivables that have been received in such Collection Period.”

	
 
	
xvi.
	
The definition of “Waiver Credit” is hereby added in the correct alphabetical order as follows:

““Waiver Credit” shall mean, with respect to an Eligible Receivable, a one-time credit granted to the Obligor in order to re-establish goodwill due to an unsatisfactory customer service experience or to make a similar minor adjustment to an Eligible Receivable in respect of other administrative or timing factors, such credit to be granted to the Obligor in accordance with the Servicing Standard and the Servicing Policy.”   

3.Amendments to Servicing Agreement.

	
 
	
i.
	
Section 2.02(a) of the Servicing Agreement is hereby amended and restated as follows:

“(a) The Asset Servicers, Master Servicer and Indenture Trustee shall perform the actions enumerated for them below:

(i) The Master Servicer shall designate in writing to each Noteholder a date (the “Cut-Over Date”), which shall not be later than the sixtieth day following the execution of this Amendment, by which date the Master Servicer shall have (A) established the ACH Sweep Account, (B) caused the ACH Sweep Blocked Account Control Agreement to be executed and delivered and (C) certified in an officer’s certificate to the Noteholders that the Master Servicer, the Asset Servicers and the Indenture Trustee are ready to perform the other actions which they are required to perform hereunder on and after the Cut-Over Date.

(ii)Prior to the Cut-Over Date, each Asset Servicer shall follow the procedures specified in this clause (ii).  Each Asset Servicer shall direct the Obligors for the Serviced Receivables it services to make all payments with respect to such Serviced Receivables into a Collection Receipt Account.  Each Collection Receipt Account shall be subject to the control of the Intercreditor Agent pursuant to the Blocked Account Control Agreement.  Within two (2) Business Days following receipt of any Collections in respect of any of its Serviced Receivables in a Collection Receipt Account, each Asset 

8

 

 

Servicer shall cause an amount equal to such Collections to be deposited into the Collection Account maintained in the name of the Indenture Trustee. Until such Collections are so deposited in a Collection Receipt Account or the Collection Account, as applicable, such Asset Servicer will (A) hold such Collections in trust, for and as the property of the Issuer for the benefit of the Indenture Trustee (on behalf of the Noteholders) and (B) not permit any such Collections to be held in, or transferred to, any account other than a Collection Receipt Account or the Collection Account (or, on a trial basis to test the efficacy of the ACH Sweep Account, to the ACH Sweep Account, so long as any such funds transferred to the ACH Sweep Account are transferred to the Collection Account within two Business Days of original receipt). No funds shall be deposited into the Collection Account other than amounts representing Collections in respect of Serviced Receivables.  

(iii)  On and after the Cut-Over Date, each Asset Servicer shall follow the procedures specified in this clause (iii).  Each Asset Servicer shall (A) direct ACH payments in respect of the Serviced Receivables to be made to the ACH Sweep Account and (B) direct Obligors making all other types of payments with respect to such Serviced Receivables (including credit card, debit card and check) to make such payments into the Collection Receipt Accounts.  The ACH Sweep Account shall be subject to the control of the Indenture Trustee pursuant to the ACH Sweep Blocked Account Control Agreement and each Collection Receipt Account shall be subject to the control of the Intercreditor Agent pursuant to the Blocked Account Control Agreement. On each Business Day, all Collections received in the ACH Sweep Account (net of a reserve for ACH returns) on the preceding Business Day shall be deposited into the Collection Account maintained in the name of the Indenture Trustee. Within two (2) Business Days following receipt of any Collections in respect of any of its Serviced Receivables in a Collection Receipt Account, each Asset Servicer shall cause an amount equal to such Collections to be deposited into the Collection Account maintained in the name of the Indenture Trustee. In connection with the remittance of Collections from the ACH Sweep Account and each Collection Receipt Account, as applicable, to the Collection Account the Master Servicer shall deliver to the Indenture Trustee on the same day of transfer a Daily Remittance Report.  The Indenture Trustee shall verify on each such Business Day that the amounts of Collections deposited into the Collection Account on such Business Day (after adjustment for the reserve in the ACH Sweep Account) corresponds to the amounts specified in the applicable Daily Remittance Report.  In the event that the Indenture Trustee determines that such amounts do not so correspond, the Indenture Trustee’s sole responsibility shall be to notify the Master Servicer and each Noteholder of any discrepancy.  All Collections received by the Master Servicer or any Asset Servicer not directly deposited into the ACH Sweep Account or either Collection Receipt Account by an Obligor shall be transferred to the Collection Account within two Business Days of receipt. Each Asset Servicer will (A) hold Collections in trust, for and as the property of the Issuer for the benefit of the Indenture Trustee (on behalf of the Noteholders) and (B) not permit any Collections to be held in, or transferred to, any account other than the ACH Sweep Account, the Collection Receipt Accounts or the Collection Account. No funds shall be deposited into the ACH Sweep Account or the Collection Account other than amounts representing Collections in respect of Serviced Receivables.

9

 

 

	
 
	
ii.
	
The preamble of Section 2.02(d) of the Servicing Agreement is hereby amended and restated as follows:

“(d)No Asset Servicer shall effect an extension, rebate, deferral, alteration, amendment, adjustment, extension or release of a Receivable (each, a “Receivable Modification”), unless either (x) such Receivable Modification is as described in any of the following categories (each, a “Permitted Modification”) and each such Permitted Modification is effectuated in accordance with and pursuant to the Servicing Policy or (y) the Majority Holders consent to such modification:”

	
 
	
iii.
	
Section 2.02(d)(iv) of the Servicing Agreement is hereby amended and restated as follows:

“(iv)an Asset Servicer may effect a Due Date Adjustment;”

	
 
	
iv.
	
Section 2.02(d)(v) of the Servicing Agreement is hereby amended and restated as follows:

“(v)an Asset Servicer may effect a Payment Deferral for a Serviced Receivable that is not a Delinquent Receivable so long as (x) interest continues to accrue on the amount of such Payment Deferral (subject to any maximum finance charge specified in the related Contract) and (y) after applying such Payment Deferral, the new final scheduled maturity date of such Serviced Receivable is not more than *** calendar days later than its original final scheduled maturity date;”

	
 
	
v.
	
Section 2.02(d)(vi) of the Servicing Agreement is hereby amended and restated as follows:

“(vi)an Asset Servicer may effect a Payment Deferral for a Serviced Receivable that is a Delinquent Receivable so long as (x)(a) no prior Payment Deferral has been effected within the prior *** consecutive days for Obligors on a monthly installment payment schedule or (b) no more than one prior Payment Deferral has been effected within the prior *** consecutive days for Obligors not on a monthly installment payment schedule, (y) after applying such Payment Deferral, the new final scheduled maturity date of such Serviced Receivable is not more than *** calendar days later than its original final scheduled maturity date, and (z) interest continues to accrue on the amount of such Payment Deferral (subject to any maximum finance charge specified in the related Contract);”

	
 
	
vi.
	
Section 2.02(d) of the Servicing Agreement is hereby amended by adding the following clauses (viii), (ix) and (x):

“(ix)  in respect of any Serviced Receivable that is not a Charged-Off Receivable and as to which the Asset Servicer has been informed that the Obligor is working with a credit counseling service, such Asset Servicer may implement a proposal from such credit counseling service (with such modifications as such Asset Servicer shall agree upon with such credit counseling service or such Obligor) to establish an alternative payment schedule that alters the amount of one or more installment payments, alters the interest 

10

 

 

rate, extends the maturity date or otherwise makes changes beyond those contemplated by the foregoing clauses (i) and (iii) through (vi) (a Serviced Receivable with such alterations being a “Credit Counseling Receivable”), if (x) the Asset Servicer believes that such alternative schedule will maximize the Collections in respect of such Serviced Receivable and (y) such Asset Servicer enters into such Credit Counseling Receivable in accordance with the Servicing Standard and the Servicing Policy.  Starting on the date a Serviced Receivable becomes a Credit Counseling Receivable, it shall constitute an Ineligible Receivable for all purposes;

(x)  subject to the limits specified in the Servicing Policy, an Asset Servicer may apply a non-cash credit to an Obligor’s account balance in the event an Obligor completes one or more financial literacy courses; provided, however, that such non-cash credits shall not, in the aggregate, exceed the equivalent of a $*** cash payment; and

(xi)  an Asset Servicer may grant a Waiver Credit, so long as such Asset Servicer grants such Waiver Credit in accordance with the Servicing Standard and the Servicing Policy; provided, if the aggregate Waiver Amount for a Collection Period exceeds $10,000, the Master Servicer shall be obligated to deposit the amount of such excess into the Collection Account not later than the Business Day following the Reporting Date for such Collection Period, and such amount shall be allocated to each Investment Pool in accordance with the share of the Waiver Amount attributable to Eligible Receivables in such Investment Pool.”

	
 
	
vii.
	
Section 2.06 of the Servicing Agreement is hereby amended and restated as follows:

“Section 2.06Backup Servicer.  Pursuant to the Backup Servicing Agreement, each Asset Servicer has appointed the Backup Servicer to stand ready to assume each such Asset Servicer’s duties and obligations hereunder in the event that such Asset Servicer is no longer an Asset Servicer hereunder.  Each Asset Servicer agrees to allow the Backup Servicer to conduct due diligence and complete a beta test file conversion with respect to the Serviced Receivables.  Each Asset Servicer further agrees to provide the Backup Servicer with (i) Daily Data Files, (ii) monthly data files, (iii) program guidelines (including collection, modification and settlement procedures), (iv) delinquency reporting, (v) copies of all Obligor loan documents, (vi) copies of all ACH agreements, (vii) a monthly summary of payment processing (including the number of ACH, credit card and check payments), (viii) all applicable account information and any other information reasonably requested so long as any Serviced Receivable is outstanding, and if any of the foregoing information is amended, restated, supplemented or otherwise modified in any way, shall ensure that the Backup Servicer promptly receives such updated information, guideline or agreement, as applicable.” 

	
 
	
viii.
	
Section 8.01 of the Servicing Agreement is hereby amended by adding the following clause (l):

“(l)the occurrence of an Event of Default under the Indenture.”

11

 

 

	
 
	
ix.
	
Section 8.02 of the Servicing Agreement is hereby amended by adding the following clause (k):

 “(k)the occurrence of an Event of Default under the Indenture.”

4.Amendments to Receivables Purchase Agreement.  

	
 
	
i.
	
Appendix A of the Receivables Purchase Agreement is hereby amended by: 

(i) amending and restating the lead-in sentence as follows: “A Receivable shall constitute an “Eligible Receivable” if is satisfies each of the following criteria as of its Eligibility Date (or other date as may be specified below):”;

 (ii) amending and restating Eligibility Criterion 17 as follows: “Unless originated by a Bank Originator, at the time of the origination of such Receivable the Obligor is residing in ***; provided, however, that even if originated by a Bank Originator, at the time of the origination of such Receivable the Obligor is not residing in *** to the extent the interest rate associated with such Receivable would be usurious;”; and  

(iii) adding the following Eligibility Criterion as item 30:  “30.On any date of determination, the Obligor of such Receivable has paid in full a scheduled installment payment, the funds of which have been received in the Collection Account in the last ninety-five (95) calendar days.” 

5.Reference to and Effect Upon the Transaction Documents.  Except as specifically amended hereby, all terms, conditions, covenants, representations and warranties contained in the Transaction Documents, and all rights of the parties thereto and all of the obligations under the Transaction Documents, shall remain in full force and effect.  

6.GOVERNING LAW.  THIS AMENDMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

7.Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  Signatures of the parties hereto transmitted by facsimile or by electronic media or similar means shall be deemed to be their original signature for all purposes.

8.Severability.  The invalidity, illegality, or unenforceability of any provision in or obligation under this Amendment in any jurisdiction shall not affect or impair the validity, legality, or enforceability of the remaining provisions or obligations under this Amendment or of such provision or obligation in any other jurisdiction.  If feasible, any such offending provision 

12

 

 

shall be deemed modified to be within the limits of enforceability or validity; provided that if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Amendment in all other respects shall remain valid and enforceable.

9.Further Assurances.  The parties hereto shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Amendment and the consummation of the transactions contemplated hereby.

10.Headings.  The headings of this Amendment are for convenience of reference and shall not form part of, or affect the interpretation of, this Amendment.

11.Consent to Amendment. 

	
 
	
i.
	
The Indenture Trustee, hereby certifies, as of the date hereof, that:

(i)pursuant to Section 4.04(m) of the Indenture, the Indenture Trustee is the Note Registrar for the Registered Notes; and

(ii)no person other than the Noteholders listed on Appendix A hereto is registered in the Note Register as a Noteholder.

	
 
	
ii.
	
Each Noteholder listed on a signature page hereto, through its undersigned representative, hereby certifies, as of the date hereof, that:

(i)pursuant to Section 10.02 of the Indenture, such Noteholder is the holder of the Notes listed on Appendix A hereto;

(ii)such Noteholder has not sold, pledged, assigned, transferred or otherwise conveyed its interest in the Notes listed on Appendix A to any other Person; and

(iii)such Noteholder hereby consents to, authorizes and approves the execution and delivery of this Amendment.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

 

 

13

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed on the day and year first above written.

 

ENOVA INTERNATIONAL INC.

 

 

By: /s/ Lisa M. Young

Name:   Lisa M. Young

Title:     Vice President

 

ENOVA FINANCE 5, LLC

 

 

By: /s/ Lisa M. Young

Name:   Lisa M. Young

Title:     Vice President

 

 

NETCREDIT LOAN SERVICES, LLC

By: /s/ Lisa M. Young

Name:   Lisa M. Young

Title:     Vice President

EFR 2016-1, LLC

By: /s/ Lisa M. Young

Name:   Lisa M. Young

Title:     Vice President

 

 

 

BANKERS TRUST COMPANY, as Indenture Trustee and not in its individual capacity

 

By:/s/ Minda Barr

Name:   Minda Barr

Title:     Vice President

 

BANKERS TRUST COMPANY, as Securities Intermediary and not in its individual capacity

 

By:/s/ Minda Barr

Name:   Minda Barr

Title:     Vice President

 

 

 
FIRST ASSOCIATES LOAN SERVICING, LLC, as Verification Agent

 

By: /s/ Laurence Chiavaro

Name:  Laurence Chiavaro

Title:    Executive Vice President

 

JEFFERIES FUNDING LLC, as Administrative Agent, as an Initial Term Note Holder and as a Variable Funding Note Noteholder

 

By:/s/ Robert J. Welch

Name:   Robert J. Welch

Title:     Director

 

 

WF 18, LLC, as an Initial Term Note Holder and as a Variable Funding Note Noteholder

 

By:/s/ Patrick Lo

Name:   Patrick Lo

Title:     Managing Partner

 

 

Drawbridge Special Opportunities Fund LP, as an Initial Term Note Holder and as a Variable Funding Note Noteholder

By: Drawbridge Special Opportunities GP LLC, its General Partner

 

 

By:/s/ Constantine M. Dakolias

Name:   Constantine M. Dakolias

Title:     President

 

 

 

APPENDIX A

SCHEDULE OF NOTEHOLDERS & NOTES

				
	
Noteholder
	
Variable Funding Note
	
Outstanding Amount of Initial Term Note
	
Outstanding Amount of Other Term Notes

	
Jefferies Funding LLC
	
$*** 
	
$***
	
$***

	
WF 18, LLC
	
$***
	
$***
	
$***

	
Drawbridge Special Opportunities Fund LP
	
$***
	
$***
	
$***

	
Total
	
$10,200,000 
	
$55,599,264 
	
$41,615,062

 

 

 

 

 

EXHIBIT A

[Insert Daily Data File]

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