Document:

Exhibit 10.4

 

Execution Version

 

PAYMENT
AGREEMENT AND RELEASE

 

This PAYMENT AGREEMENT AND RELEASE (this “Agreement”) is entered into as of March 22,
2010, by and among Deerfield & Company LLC, an Illinois limited
liability company (the “Issuer”),
Deerfield Capital Corp., a Maryland corporation (“DFR”),
each of the holders listed on Schedule A attached hereto (each a “Series A Holder” and
collectively, the “Series A Holders”) and
each of the holders listed on Schedule B attached hereto (each a “Series B Holder” and
collectively, the “Series B Holders”) (each
Series A Holder and Series B Holder shall be referred to herein as a “Holder” and collectively, the “Holders”), Wendy’s/Arby’s Group, Inc.
(formerly known as Triarc Companies, Inc.) (“WAG”),
as collateral agent under the Series A Purchase Agreement (as defined
below)(in such capacity, the “Series A Collateral
Agent”), WAG, as administrative holder under the Series A
Purchase Agreement (in such capacity, the “Series A
Administrative Holder” and together with the Series A
Collateral Agent, collectively, the “Series A Agents”),
WAG, as collateral agent under the Series B Note Purchase Agreement (as
defined below) (in such capacity, the “Series B Collateral Agent”), and Spensyd
Asset Management LLLP, as administrative holder under the Series B Note
Purchase Agreement (in such capacity, the “Series B Administrative Holder” and,
together with the Series B Collateral Agent, collectively, the “Series B Agents”
and, together with the Series A Agents, collectively, the “Agents”).  Capitalized terms used herein without
definition are used as defined in each of the Note Purchase Agreements referred
to below.

 

WHEREAS, the Issuer and the Series A Holders
are party to that certain Series A Note Purchase Agreement, dated as of December 21,
2007 (as amended, supplemented or otherwise modified from time to time, the “Series A Note Purchase Agreement”),
among the Issuer, DFR, the Series A Collateral Agent, the purchasers party
thereto, the Series A Administrative Holder and each other holder from
time to time party thereto as provided therein.

 

WHEREAS, the Issuer and the Series B Holders
are party to that certain Series B Note Purchase Agreement, dated as of December 21,
2007 (as amended, supplemented or otherwise modified from time to time, the “Series B Note Purchase
Agreement” and, together with the Series A Note Purchase
Agreement, collectively, the “Note Purchase Agreements”),
among the Issuer, DFR, the Series B Collateral Agent, the purchasers party thereto,
the Series B
Administrative Holder and each other holder from time to time party
thereto as provided therein.

 

WHEREAS, pursuant to the terms of the Series A
Note Purchase Agreement, the Issuer has issued promissory notes to the Series A
Holders in an aggregate principal amount of $48,868,196 (the “Series A  Notes”)
and each Series A Holder is, as of the date hereof, the owner of Series A
Notes in an aggregate principal amount set forth opposite to such Series A
Holder’s name on Schedule A attached hereto.

 

WHEREAS, pursuant to the terms of the Series B
Note Purchase Agreement, the Issuer has issued promissory notes to the Series B
Holders in an aggregate principal amount of $25,073,445 (the “Series B  Notes”
and, together with the Series A Notes, the “Notes”)
and each Series B Holder is, as of the date hereof, the owner of Series B
Notes in an aggregate principal amount set forth opposite to such Series B
Holder’s name on Schedule B attached hereto.

 

WHEREAS, the Holders and the Agents have agreed that
in consideration of the Issuer paying the Note Repayment Amount (as defined
below) to the Holders and the Agents, as applicable, in accordance with Section 2
below, the Notes shall, as of the Payment Date, be treated as fully paid and
cancelled and the Issuer shall, subject to Section 16 hereof, be released
from any further obligations or liabilities in connection with the Notes or any
of its other obligations with respect thereto under the Note Purchase
Agreements or any other Note Documents thereunder (except for such obligations
that pursuant to the Note Documents are expressly stated to survive termination
of the Note Documents).

 

 

NOW THEREFORE, in consideration of the mutual
covenants and agreements herein contained, the parties hereto covenant and
agree as follows:

 

1                                         DEFINITIONS

 

1.1                               As
used in this Agreement, the following terms shall have the meanings set forth
below:

 

“Effective Date”
means July 31, 2010.

 

“Investment Transaction”
means any debt and/or equity financing transaction and/or recapitalization
transaction (or any combination thereof) consummated by the Issuer, DFR or any
of their respective Subsidiaries on or after the date hereof, which, together
with any other debt and/or equity financing transaction and/or recapitalization
transaction (or any combination thereof) consummated by the Issuer, DFR or any
of their respective Subsidiaries on or after the date hereof, results in
aggregate cash proceeds to the Issuer, DFR and their respective Subsidiaries in
an amount equal to at least $25,000,000.

 

“Investment Transaction
Date” means the date on which a closing under an Investment
Transaction shall have occurred.

 

“Note Repayment Amount”
means the sum of (i) the Series A Note Repayment Amount and (ii) the
Series B Note Repayment Amount.

 

“Parties”
means, collectively, each of the Issuer, DFR, each Holder and each Agent.

 

“Payment Date”
means the date on or prior to the Effective Date on which the Issuer shall have
paid the Note Repayment Amount in full in accordance with Section 2.1.

 

“Series A
Note Repayment Amount” means the sum
of (a) with respect to all Series A Holders in the aggregate,
$31,317,000.00 in full satisfaction of the $48,868,196.00 in aggregate
principal amount of Series A Notes being discharged pursuant to this
Agreement (i.e., at a price equal to $640,846.25 per $1,000,000 of principal
amount being discharged) plus (b) all
accrued and unpaid interest with respect to the outstanding principal amount of
the Series A Notes held by the Series A Holders as of the Payment
Date (as confirmed or determined by the Series A Administrative Holder
pursuant to Section 2.1) plus (c) all
unpaid costs and expenses of the Series A Holders, the Series A
Administrative Holder and the Series A Collateral Agent (including,
without limitation, the reasonable fees and expenses of counsel to the Series A
Holders, the Series A Administrative Holder and the Series A
Collateral Agent) in connection with the Series A Notes, the Series A
Note Purchase Agreement, the other Note Documents (as defined in the Series A
Note Purchase Agreement) and this Agreement (as notified in writing by the Series A
Administrative Holder to the Issuer prior to the Payment Date).

 

“Series B
Note Repayment Amount” means the sum
of (a) with respect to all Series B Holders in the aggregate,
$23,683,000.00 in full satisfaction of the $25,073,445.00 in aggregate
principal amount of Series B Notes being discharged pursuant to this
Agreement (i.e., at a price equal to $944,545.12 per $1,000,000.00 of principal
amount being discharged), plus (b) all
accrued and unpaid interest with respect to the outstanding principal amount of
the Series B Notes held by the Series B Holders as of the Payment
Date (as confirmed or determined by the Series B Administrative Holder
pursuant to Section 2.1) plus (c) all
unpaid costs and expenses of the Series B Holders, the Series B
Administrative Holder and the Series B Collateral Agent (including,
without limitation, the reasonable fees and expenses of counsel to the Series B
Holders, the Series B Administrative Holder and the Series B
Collateral Agent) in connection with the Series B Notes, the Series B
Note Purchase Agreement, the other Note Documents (as defined in the Series B
Note Purchase Agreement) and this 

 

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Agreement (as notified in writing by the Series B
Administrative Holder to the Issuer prior to the Payment Date).

 

2                                         REPAYMENT OF NOTES

 

2.1                               If
the Investment Transaction Date shall have occurred prior to or on the
Effective Date, notwithstanding anything to the contrary contained in the
Intercreditor Agreement or the Note Documents, the Issuer shall, on such
Investment Transaction Date, pay to (i) the Series A Holders, the Series A
Note Repayment Amount, with each Series A Holder receiving such portion of
the Series A Note Repayment Amount set forth opposite such Holder’s name
on Schedule D attached hereto under the heading “Holder/Agent Repayment
Amount” as complete and full repayment of the Series A Notes held by such Series A
Holder as set forth on Exhibit A, (ii) the Series B Holders, the
Series B Note Repayment Amount, with each Series B Holder receiving
such portion of the Series B Note Repayment Amount set forth opposite such
Holder’s name on Schedule D attached hereto under the heading “Holder/Agent
Repayment Amount,” as complete and full repayment of the Series B Notes
held by such Series B Holder as set forth on Exhibit B, (iii) the
Series A Administrative Holder the portion of the Series A Note
Repayment Amount owed to the Series A Agents (as notified by the Series A
Administrative Holder to the Issuer pursuant to the penultimate sentence of
this Section 2.2) and (iv) the Series B Administrative Holder
the portion of the Series B Note Repayment Amount owed to the Series B
Agents (as notified by the Series B Administrative Holder to the Issuer
pursuant to the penultimate sentence of Section 2.2), in each case by wire
transfer of immediately available funds to the accounts listed as such Person’s
account in Schedule C attached hereto.

 

2.2                               At
least four Business Days in advance of the contemplated Payment Date, the
Issuer shall provide in writing to each of the Series A Administrative
Holder and the Series B Administrative Holder the Issuer’s calculation of (i) the
portion of the Series A Note Repayment Amount and the Series B Note
Repayment Amount, respectively, representing the aggregate accrued and unpaid
interest with respect to the Series A Notes or the Series B Notes, as
applicable, as of such contemplated Payment Date and (ii) the aggregate
accrued and unpaid interest owing to each Holder as of such contemplated
Payment Date, in each case which amounts shall be confirmed by the Series A
Administrative Holder or the Series B Administrative Holder, as
applicable, in its discretion.  If the Series A
Administrative Holder or the Series B Administrative Holder does not agree
with the Issuer’s calculations of such accrued and unpaid interest with respect
to the Series A Notes or the Series B Notes, respectively, the Series A
Administrative Holder or the Series B Administrative Holder, as
applicable, shall not later than two Business Days prior to the contemplated
Payment Date provide its own calculation of such amount to the Issuer and the Series A
Administrative Holder or the Series B Administrative Holder, as applicable,
and such determination shall be conclusive and binding on the Parties in the
absence of manifest error.  At least two
Business Days prior to the Payment Date, the Agents shall notify the Issuer of
the amount of unpaid costs and expenses owed to the Holders and the Agents
pursuant to Section 9.04 of each of the Note Purchase Agreements
(including, without limitation, the reasonable and documented out-of-pocket
costs and expenses of the Holders and Agents relating to the negotiation,
preparation, execution and delivery of this Agreement) to be paid on such
contemplated Payment Date.  Upon receipt
of the Note Repayment Amount in full in cash in accordance with Section 2.1,
each Holder and each Agent shall be deemed to have accepted such amount in full
satisfaction and settlement of the Notes owned by such Holder, all
reimbursement and other obligations owed to the Holders and the Agents under
the Note Documents and all other obligations with respect thereto.

 

2.3                               The
Issuer shall use its commercially reasonable efforts to cause the Investment
Transaction Date to occur prior to the Effective Date.

 

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3                                         EFFECT OF REPAYMENT

 

Each Holder hereby acknowledges that upon payment by
the Issuer of the Note Repayment Amount in full in accordance with Section 2.1:

 

3.1                               all
obligations of the Issuer under the Notes shall be discharged in full, and the
Issuer and all other Note Parties shall be released and discharged from any and
all of their obligations and liabilities with respect to the Notes arising
under the Notes, the Note Purchase Agreements, any other Note Document under
the Note Purchase Agreements and all other documents and agreements executed
and delivered pursuant to the Note Purchase Agreements (except for obligations
under this Agreement and such obligations that pursuant to the Note Documents
are expressly stated to survive termination of the Note Documents);

 

3.2                               the
Notes shall be effectively cancelled, and of no further force and effect;

 

3.3                               the Liens created by the Guaranty and Pledge Agreement
or any other Note Document with respect to the
Collateral and any right, title or interest of the Holders (or any of the
Agents on their behalf) in the Collateral shall cease and be terminated and
released, including pursuant to Section 8.02 of each Note Purchase
Agreement; and

 

3.4                               the Agents will (and the Holders hereby instruct the
Agents to) execute and deliver to the Issuer or any other Note Party any and
all documents as the Issuer or such Loan Party reasonably requests in order to
evidence or otherwise give public notice of such terminations and releases
(provided that any and all expenses relating to the preparation, execution,
delivery and/or recordation of any such terminations and releases (and all documentation
with respect thereto) shall be paid by the Issuer), and the Holders hereby
authorize the Issuer and the Agents from time to time on and following the
Payment Date to file the aforementioned documents, terminations and releases.

 

4                                         REPRESENTATIONS AND WARRANTIES

 

4.1                               Each Party represents and warrants to the other Parties
as of the date hereof and as of the Payment Date that this Agreement has been
duly authorized, executed and delivered by such Party, and that this Agreement
is a legal, valid and binding obligation of such Party, enforceable against
such Party in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditor’s rights generally and by
general equitable principles.

 

4.2                               Each of the Issuer and DFR hereby represents and warrants to the Holders
and the Agents as of the date hereof and as of the Payment Date that the
execution, delivery and performance of this Agreement by the Issuer and DFR,
the repayment of the Notes, as contemplated by this Agreement, and, as of the
Payment Date, the consummation of the Investment Transaction (including any
financing and recapitalization transactions entered into by the Issuer, DFR or
any of their respective Subsidiaries after the date hereof) do not and will not
conflict with, result in the breach of or constitute (with due notice or lapse
of time or both) a default under any material contractual obligations to which
it is a party  or under its certificate
of incorporation, bylaws or other governing instruments.

 

4.3                               Each
of the Issuer and DFR hereby represents and warrants to the Holders and the
Agents that, as of the Payment Date and
after giving effect to the Investment Transaction and the payment of the Note
Repayment Amount, it shall be Solvent.

 

4.4                               DFR hereby represents and warrants to the Holders and
the Agents that, since the date of the filing of DFR’s Form 10-Q for the
period ended September 30, 2009 with the SEC, there has 

 

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been
no material decrease in the aggregate amount of DFR’s unrestricted cash and
cash equivalents.

 

4.5                               Each Holder hereby represents and warrants to the Issuer and DFR as of
the date hereof and as of the Payment Date that such Holder (i) is the
record and beneficial owner of the Notes in the principal amounts set forth
opposite such Holder’s name on Schedule A or Schedule B attached
hereto, as applicable, (ii) exercises sole investment authority with respect
to such Notes, including the power to sell, assign and transfer such Notes to
the Issuer and (iii) has not assigned, transferred, or otherwise disposed
of, or agreed to assign, transfer or otherwise dispose of any right, title or
interest in or to, such Holder’s Notes to any other Person (other
than pursuant to this Agreement).

 

4.6                               Each
Holder and each Agent hereby represents and warrants to the Issuer and DFR as
of the date hereof that it does not presently have any outstanding claims for
indemnification under any Note Document, including under Section 9.04 of
the Note Purchase Agreements, against the Issuer, DFR or any of their
respective Subsidiaries and, to its actual knowledge, no fact presently exists
that with the elapse of time or otherwise would give rise to or provide any
basis for any such claim for indemnification against the Issuer, DFR or any of
their respective Subsidiaries.

 

4.7                               DFR
and the Issuer each hereby represents and warrants to each Holder and each
Agent as of the date hereof that it does not presently have any outstanding
claims for indemnification under any Note Document against any Holder or Agent
and, to its actual knowledge, no fact presently exists that with the elapse of
time or otherwise would give rise to or provide any basis for any such claim
for indemnification against any Holder or Agent.

 

5                                         ADDITIONAL COVENANTS

 

5.1                               Prior
to the Investment Transaction Date, the Issuer shall deliver evidence to the
Holders and the Agents in form and substance reasonably satisfactory to the
Holders and the Agents that the transactions contemplated by Sections 2 and 3
of this Agreement (including, without limitation, the payment of the Note
Repayment Amount pursuant to Section 2.1) are a condition precedent to the
closing of the Investment Transaction.

 

5.2                               Each
of the Issuer and DFR agrees that immediately following the closing of the
Investment Transaction, the Issuer and DFR shall have immediately available and
unrestricted cash in an amount that is sufficient, together with the net cash
proceeds of the Investment Transaction, to pay the Note Repayment Amount in
full.

 

5.3                               Each
of the Issuer and DFR agrees that it will not make, and will not cause any
other Person to make, any statement that could reasonably be expected to
disparage or demean any Holder or Agent or any of their Subsidiaries with
respect to any of the matters contemplated by this Agreement, the Note Purchase
Agreements or the Investment Transaction and that it will not make, and will
not cause any other Person to make, any statement that could reasonably be
expected to be adverse to any Holder or Agent or any of their Subsidiaries with
respect to any of the matters contemplated by this Agreement, the Note Purchase
Agreements or the Investment Transaction; provided, however, that
nothing contained in this Section 5.3 shall prohibit, limit or restrict
the Issuer or DFR from (i) asserting or enforcing any rights, claims or
defenses or pursuing any remedies it may have against any Holder or Agent, or
any of its successors or assigns, under this Agreement, the Note Purchase
Agreements or any other Note Documents or (ii) making statements that it
believes are necessary or advisable in connection with (A) the fulfilment
of its obligations under applicable law or regulation, including, without
limitation, making statements contained in filings made or required to be made
with, or documents or reports delivered or required to be delivered to, any
Governmental Authority, including without limitation the SEC, and/or (B) any
pleadings, filings or written 

 

5

 

communications between or
among the Parties with respect to any actual or threatened litigation or
investigation by any Governmental Authority related thereto.  Unless the Payment Date shall have occurred
on or prior to the Effective Date, the provisions of this Section 5.3
shall terminate and be of no further force and effect on the day following the
Effective Date.  If the Payment Date shall have
occurred on or prior to the Effective Date, the provisions of this Section 5.3
shall terminate and be of no further force and effect following the second
anniversary of the Effective Date.

 

5.4                               Each
of the Holders and Agents agrees, severally and not jointly, that it will not
make, and will not cause any other Person to make, any statement that could
reasonably be expected to disparage or demean either the Issuer or DFR or any
of their subsidiaries with respect to any of the matters contemplated by this
Agreement, the Note Purchase Agreements or the Investment Transaction, and that
it will not make, and will not cause any other Person to make, any statement
that could reasonably be expected to be adverse to the Issuer, DFR or any of
their Subsidiaries in connection with the management of assets for existing
clients; provided, however, that nothing contained in this Section 5.4
shall prohibit, limit or restrict any of the Holders or Agents from (i) asserting
or enforcing any rights, claims or defenses or pursuing any remedies it may
have against either the Issuer or DFR, or any of its successors or assigns,
under this Agreement, the Note Purchase Agreements or any other Note Documents
or (ii) making statements or taking actions that it believes are necessary
or advisable in connection with (A) the fulfilment of its obligations
under applicable law or regulation, including, without limitation, making
statements contained in filings made or required to be made with, or documents
or reports delivered or required to be delivered to, any Governmental Authority,
including without limitation the SEC, and/or (B) any pleadings, filings or
written communications between or among the Parties with respect to any actual
or threatened litigation or investigation by any Governmental Authority related
thereto.  Unless the Payment Date shall
have occurred on or prior to the Effective Date, the provisions of this Section 5.4
shall terminate and be of no further force and effect on the day following the
Effective Date.  If the Payment Date shall have
occurred on or prior to the Effective Date, the provisions of this Section 5.4
shall terminate and be of no further force and effect following the second
anniversary of the Effective Date.

 

5.5                               Each of the Holders agrees that if
the Payment Date shall have occurred on or prior to the Effective Date, then
such Holder shall either deliver to the Issuer for cancellation on such Payment
Date the original Notes issued to such Holder in an aggregate principal amount
equal to the amount set forth opposite such Holder’s name on Schedule A
or Schedule B attached hereto, as applicable, or, in respect of each such Note
that has been lost, stolen, seized or destroyed, deliver, in lieu thereof, a
duly executed affidavit of loss and a duly executed indemnity agreement with
respect thereto reasonably acceptable to the Issuer.

 

6                                         TERMINATION OF THE INTERCREDITOR AGREEMENT

 

Effective as of the Payment Date, the Issuer, DFR,
each of the Agents and each of the Holders agree that the Intercreditor
Agreement shall terminate and be of no further force or effect.

 

7                                         MUTUAL RELEASE

 

Effective as of the Payment Date, and subject to the
terms hereof (including, without limitation, Sections 3.1 and 16), (i) DFR
and the Issuer each hereby does, for itself and for its successors and assigns,
fully and unconditionally release and forever discharge the other Parties and
their respective employees, officers, directors, agents, successors, and
assigns, (ii) each Series A Holder hereby does, for itself and for
its successors and assigns, fully and unconditionally release and forever
discharge each of DFR, the Issuer and their respective Subsidiaries, the Series A
Agents and, in each case, their respective employees, officers, 

 

6

 

directors, agents, successors, and assigns, (iii) each
Series B Holder hereby does, for itself and for its successors and
assigns, fully and unconditionally release and forever discharge each of DFR,
the Issuer and their respective Subsidiaries, the Series B Agents (in
their capacity as a Series B Agent) and, in each case, their respective
employees, officers, directors, agents, successors, and assigns, (iv) each
Series A Agent hereby does, for itself and for its successors and assigns,
fully and unconditionally release and forever discharge each of DFR, the Issuer
and their respective Subsidiaries, the other Series A Agent, each Series A
Holder and, in each case, their respective employees, officers, directors,
agents, successors, and assigns and (v) each Series B Agent hereby
does, for itself and for its successors and assigns, fully and unconditionally
release and forever discharge each of DFR, the Issuer and their respective
Subsidiaries, the other Series B Agent, each Series B Holder and, in
each case, their respective employees, officers, directors, agents, successors,
and assigns, in each case of clauses (i) through and including (v) above,
from all of their respective obligations and liabilities under or claims
relating to any of the Note Purchase Agreements, the Notes, any other Note Documents
under any of the Note Purchase Agreements and all other documents and
agreements delivered pursuant thereto (except for obligations and liabilities
under or claims relating to this Agreement and those that pursuant to the Note
Documents or other documents and agreements delivered pursuant thereto are
expressly stated to survive termination of the Note Documents).

 

8                                         NO TRANSFER OF NOTES

 

Each Holder agrees that, from the date hereof
through and including Effective Date, it shall not sell, transfer, assign or
otherwise dispose of any of the Notes (other than pursuant to this Agreement),
any interest therein or any of its related claims and rights arising out of or
in connection with or otherwise relating to the Notes, any of the Note Purchase
Agreements or any other Note Document under any Note Purchase Agreements, or
any option thereon or any right or interest with respect thereto, except to any
individual that is an heir, trustee or personal representative of such Holder,
in each case, that has assumed all obligations of such Holder hereunder.

 

9                                         RELEASE AND WAIVER

 

Effective as of the date hereof, and in
consideration of the agreements of the Holders under this Agreement, DFR on
behalf of itself and its Subsidiaries and Affiliates and each of their respective
successors and assigns (collectively, “Releasors”),
hereby:

 

9.1                               waives
unconditionally, irrevocably and forever, in accordance with Section 11.12
of that certain Agreement and Plan of Merger, dated as of December 17,
2007 (as amended, the “Merger Agreement”),
by and among DFR, DFR Merger Company, LLC, Deerfield & Company LLC and
(solely for the purposes of Article IX and XI and Sections 2.7, 3.3, 3.5,
6.5, 6.7, 6.10, 6.15, 6.19 and 6.20 of the Merger Agreement) WAG, WAG’s
obligation under Section 11.2(a)(iii) of the Merger Agreement to
indemnify and hold any Buyer Indemnified Party harmless from and against Losses
equal to the Seller’s Representative Percentage; and

 

9.2                               releases,
acquits and discharges, unconditionally, irrevocably and forever, to the
fullest extent permitted by law, WAG and its Affiliates, employees, officers,
directors, agents, attorneys, representatives, successors and assigns
(collectively, “Releasees”), from any and all
claims, demands, causes of action, and obligations, of every kind, nature and
description whatsoever, which such Releasor ever had, now has or may have in
relation to WAG’s obligation under Section 11.2(a)(iii) of the Merger
Agreement, whether direct or derivative, liquidated or unliquidated, fixed or
contingent, matured or unmatured, disputed or undisputed, known or unknown,
foreseen or unforeseen, in law, equity or otherwise.  Each Releasor agrees not to assert any claim,
demand, cause of action, or obligation covered by this Section 9 against
any Releasee.

 

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Notwithstanding the foregoing, nothing in this Section 9
shall constitute an acknowledgment that any Member otherwise is liable for any
indemnity or other obligation under Section 11.2(a)(iii) of the
Merger Agreement.

 

The Parties agree that the release and waiver
provided in this Section 9 shall survive the termination of this
Agreement.

 

For purposes of this Section 9, capitalized
terms that are used but not otherwise defined in this Agreement shall have the
meaning ascribed to such terms in the Merger Agreement.

 

10                                  COUNTERPARTS

 

This Agreement may be executed in any number of
counterparts and all of such counterparts taken together shall be deemed to
constitute one and the same instrument. 
Delivery of an executed counterpart hereof by facsimile or electronic
portable document format shall have the same effect as delivery of an
originally executed counterpart hereof.

 

11                                  GOVERNING LAW

 

This Agreement shall be governed by, and construed
and interpreted in accordance with, the law of the State of New York applicable
to agreements made and to be performed entirely within such state; provided
that the Series A Collateral Agent, the Series B Collateral Agent and
each Holder shall retain all rights arising under Federal law.

 

12                                  JURISDICTION

 

THE PARTIES HERETO HEREBY CONSENT, UNCONDITIONALLY
AND  IRREVOCABLY, TO THE NONEXCLUSIVE
JURISDICTION OF THE FEDERAL AND STATE COURTS OF THE STATE OF NEW YORK AND WAIVE
ANY OBJECTION BASED ON VENUE OR FORUM NON CONVENIENS WITH RESPECT TO ANY
PROCEEDING RELATING TO ANY MATTER, CLAIM OR DISPUTE ARISING UNDER THIS
AGREEMENT IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
IN CONTRACT, TORT, EQUITY OR OTHERWISE. 
THE ISSUER AND DFR FURTHER IRREVOCABLY WAIVE PERSONAL SERVICE OF ANY AND
ALL PROCESS UPON THEM AND CONSENT TO THE SERVICE OF PROCESS GENERALLY,
UNCONDITIONALLY AND IRREVOCABLY, AT THE ADDRESSES SET FORTH IN THE NOTE
PURCHASE AGREEMENTS IN CONNECTION WITH ANY OF THE AFORESAID PROCEEDINGS IN
ACCORDANCE WITH THE RULES APPLICABLE TO SUCH PROCEEDINGS.  TO THE EXTENT PERMITTED BY APPLICABLE LAW,
EACH OF THE ISSUER AND DFR HEREBY 
IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW HAVE OR HAVE IN
THE FUTURE TO THE LAYING OF VENUE IN RESPECT OF ANY OF THE AFORESAID
PROCEEDINGS BROUGHT IN THE COURTS REFERRED TO ABOVE AND AGREES NOT TO PLEAD OR
CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH
COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE
AGENTS OR HOLDERS TO COMMENCE PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY
OTHER PARTY IN ANY JURISDICTION.

 

13                                  ENTIRE AGREEMENT

 

This Agreement supersedes all other prior oral or
written agreements between the Parties with respect to the matters contained herein,
and this Agreement contains the entire understanding of the Parties with
respect to the matters covered herein and, except as specifically set forth 

 

8

 

herein, neither the Issuer nor any other Party hereto
makes any representation, warranty, covenant or undertaking with respect to
such matters.

 

14                                  TERMINATION

 

Unless the Payment Date shall have occurred on or
prior to the Effective Date, this Agreement (other than Sections 9, 11 and 12
hereof) shall terminate and shall be of no further force and effect, on the day
following the Effective Date; provided that the Effective Date and the term of
this Agreement may be extended to any date on or prior to the Maturity Date
pursuant to a written agreement executed by DFR, the Issuer, the Series A
Administrative Holder on behalf of the Series A Holders and the Series B
Administrative Holder on behalf of the Series B Holders.  Each of the Series A Holders hereby
authorizes the Series A Administrative Holder to extend the term of this
Agreement in its discretion pursuant to this Section 14, and each of the Series B
Holders hereby authorizes the Series B Administrative Holder to extend the
term of this Agreement in its discretion pursuant to this Section 14.

 

15                                  NOTE DOCUMENT; AMENDMENTS

 

This Agreement and the provisions herein applicable
to (i) the Series A Notes, the Series A Holders and the Series A
Agents shall constitute a Note Document, as defined in the Series A Note
Purchase Agreement, and (ii) the Series B Notes, the Series B
Holders and the Series B Agents shall constitute a Note Document, as
defined in the Series B Note Purchase Agreement, and amendments thereto,
other than as provided in Section 14 above with respect to the extension
of the term of this Agreement, shall be governed by Section 9.01 of the Series A
Note Purchase Agreement or the Series B Note Purchase Agreement, as
applicable.  For greater clarity and
subject to the exception regarding the extension of the term of this Agreement
set forth in Section 14 hereof, the amendment of any provision of this
Agreement that would have required the consent of any Holder pursuant to Section 9.01
of the Series A Note Purchase Agreement or the Series B Note Purchase
Agreement if such provision had been contained in the Series A Note
Purchase Agreement or Series B Note Purchase Agreement, respectively,
shall require such consent.

 

16                                  NOTES REMAIN OUTSTANDING

 

Notwithstanding anything to the contrary contained
in this Agreement, prior to the Payment Date, the Notes shall remain
outstanding and in full force and effect in accordance with the terms of the Series A
Note Purchase Agreement or the Series B Note Purchase Agreement, as
applicable, until the Note Repayment Amount with respect thereto is paid in
full in accordance with Section 2.1 above. For the avoidance of doubt,
nothing in this Agreement shall be deemed to be an approval of, consent to, or
waiver by any Holder in respect of, any action taken or proposed to be taken by
the Issuer, DFR or any of their respective Subsidiaries in connection with any
transaction not expressly permitted by the Note Purchase Agreements and the
other Note Documents, except for an Investment Transaction consummated in
accordance with the terms of this Agreement, including, without limitation, the
payment in full in cash of the Note Repayment Amount on the Investment
Transaction Date.

 

17                                  REINSTATEMENT

 

Notwithstanding anything to the contrary contained
in this Agreement, if at any time the payment of the Note Repayment Amount, or
any part thereof, is rescinded or must otherwise be restored or returned by any
Holder or Agent upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Issuer or any Loan Party, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Issuer or any Loan Party or any substantial part of its
property, or otherwise, then (i) the obligations of the Issuer and DFR
hereunder and under the Notes, the Note Purchase 

 

9

 

Agreements and under the Note Documents shall be
reinstated with respect to the principal amount of the Notes outstanding
immediately prior to the payment of the Note Repayment Amount, less any portion
of the Note Repayment Amount that has not been so rescinded or otherwise
restored or returned, all as though such payment had not been made, (ii) to
the extent that amounts so rescinded, restored or returned are with respect to
a portion of the Note Repayment Amount paid in respect of both the Series A
Notes and Series B Notes, the Intercreditor Agreement shall be reinstated
with respect to the principal amount of the Series A Notes and Series B
Notes outstanding immediately prior to the payment of the Note Repayment
Amount, less any portion of the Note Repayment Amount that has not been so
rescinded or otherwise restored or returned, all as though such payment had not
been made, (iii) the mutual release in Section 7 shall be null and
void and (iv) Section 8 shall be null and void.

 

18                                  EXPENSES

 

The Issuer shall bear its own costs and expenses.
The Issuer shall pay all reasonable and documented out-of-pocket costs and
expenses of the Holders and Agents relating to the negotiation, preparation,
execution and delivery of this Agreement, which costs and expenses of the
Holders and Agents shall, if not paid prior to the Payment Date, be included in
the Series A Note Repayment Amount and the Series B Note Repayment
Amount, as applicable.

 

[Remainder of Page Intentionally Left Blank]

 

10

 

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

 

	
   

  	
  DEERFIELD & COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Contreras

  
	
   

  	
   

  	
  Name:   

  	
  Robert A. Contreras

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEERFIELD CAPITAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Contreras

  
	
   

  	
   

  	
  Name:

  	
  Robert A. Contreras

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  

 

[Signature
Pate to DFR Payment Agreement and Release]

 

 

	
   

  	
  WENDY’S/ARBY’S GROUP,
  INC. (f/k/a
  Triarc Companies, Inc.), as Series A Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nils H. Okeson 

  
	
   

  	
   

  	
  Name:   

  	
  Nils H. Okeson 

  
	
   

  	
   

  	
  Title:

  	
  SVP, General Counsel and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WENDY’S/ARBY’S
  GROUP, INC. (f/k/a Triarc
  Companies, Inc.), as Series A Administrative Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nils H. Okeson 

  
	
   

  	
   

  	
  Name:   

  	
  Nils H. Okeson 

  
	
   

  	
   

  	
  Title:

  	
  SVP, General Counsel and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WENDY’S/ARBY’S GROUP,
  INC. (f/k/a
  Triarc Companies, Inc.), as Series B Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nils H. Okeson 

  
	
   

  	
   

  	
  Name:   

  	
  Nils H. Okeson 

  
	
   

  	
   

  	
  Title:

  	
  SVP, General Counsel and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SPENSYD ASSET MANAGEMENT
  LLLP,
  as Series B Administrative Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Sachs

  
	
   

  	
   

  	
  Name:   

  	
  Gregory Sachs

  
	
   

  	
   

  	
  Title:

  	
  Authorized Representative

  

 

[Signature
Pate to DFR Payment Agreement and Release]

 

 

	
   

  	
  WENDY’S/ARBY’S GROUP, INC. (f/k/a Triarc Companies, Inc.),
  as Series A Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nils H. Okeson 

  
	
   

  	
   

  	
  Name:   

  	
  Nils H. Okeson 

  
	
   

  	
   

  	
  Title:

  	
  SVP, General Counsel and
  Secretary

  

 

[Signature
Pate to DFR Payment Agreement and Release]

 

 

	
   

  	
  JONATHAN TRUTTER, as Series A
  Holder

  
	
   

  	
   

  
	
   

  	
  /s/ Jonathan W. Trutter

  

 

[Signature
Pate to DFR Payment Agreement and Release]

 

 

	
   

  	
  JOHN K. BRINCKERHOFF AND LAURA R. BRINCKERHOFF
  REVOCABLE TRUST, as Series A Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John K. Brinckerhoff

  
	
   

  	
   

  	
  Name: John K. Brinckerhoff

  
	
   

  	
   

  	
  Title: Trustee

  

 

[Signature
Pate to DFR Payment Agreement and Release]

 

 

	
   

  	
  PAULA HORN, as Series A
  Holder

  
	
   

  	
   

  
	
   

  	
  /s/ Paula Horn

  

 

[Signature
Pate to DFR Payment Agreement and Release]

 

 

	
   

  	
  SCOTT ROBERTS, as Series B
  Holder

  
	
   

  	
   

  
	
   

  	
  /s/ Scott Roberts

  

 

[Signature
Pate to DFR Payment Agreement and Release]

 

 

	
   

  	
  RIVER ROAD HOLDINGS, LLC,
  as Series B Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bradley Rosen

  
	
   

  	
   

  	
  Name:

  	
  Bradley Rosen

  
	
   

  	
   

  	
  Title:

  	
  Authorized Representative

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michelle Sibley

  
	
   

  	
   

  	
  Name:

  	
  Michelle Sibley

  
	
   

  	
   

  	
  Title:

  	
  Authorized Representative

  

 

[Signature
Pate to DFR Payment Agreement and Release]

 

 

	
   

  	
  GHS 2008 SCM TRUST,
  as Series B Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald M. Sachs

  
	
   

  	
   

  	
  Name:

  	
  Gerald M. Sachs

  
	
   

  	
   

  	
  Title:

  	
  Trustee

  

 

[Signature
Pate to DFR Payment Agreement and Release]Exhibit 10.5

 

EXECUTION COPY

 

TERMINATION AGREEMENT

 

This TERMINATION AGREEMENT,
dated March 21, 2010 (this “Agreement”), is entered into, by and
among PEGASUS DEERFIELD (AIV), LLC, a Delaware limited liability company (the “Investor”),
PGS MANAGEMENT, LLC, a Delaware limited liability company (“PM”, and
together with the Investor, the “Pegasus Parties”), DEERFIELD CAPITAL
CORP., a Maryland corporation (“DFR”), DEERFIELD CAPITAL MANAGEMENT,
LLC, a Delaware limited liability company (“DCM”), DPLC GENERAL PARTNER
LLC, a Delaware limited liability company (“DLC GP”), DEERFIELD LOAN
MANAGER LLC, a Delaware limited liability company (“DLM”), Deerfield
Pegasus Loan Capital LP, a Delaware limited partnership (the “Fund”) and
Jonathan Trutter (DFR, DCM, DLC GP, DLM, the Fund and Jonathan Trutter,
collectively, the “Deerfield Parties”). 
The Deerfield Parties and the Pegasus Parties are referred to herein
collectively as the “Parties.”

 

RECITALS:

 

WHEREAS, the Investor and
DFR have entered into that certain Warrant No. A, dated as of April 9,
2009 (as amended, modified or restated prior to the date hereof, “Warrant A”);
the Investor and DFR have entered into that certain Warrant No. B, dated
as of April 9, 2009 (as amended, modified or restated prior to the date
hereof, “Warrant B”); the Deerfield Parties and the Pegasus Parties have
entered into that certain Letter Agreement regarding the Fund, dated as of April 9,
2009 (the “Fund I Letter Agreement”); the Deerfield Parties and the
Pegasus Parties have entered into that certain Letter Agreement regarding
certain future investment funds to be managed by DCM, dated as of April 9,
2009 (the “Subsequent Funds Letter Agreement”), the Deerfield Parties
and the Pegasus Parties have entered into that certain Letter Agreement regarding
the board of managers of DCM, the board of directors of DFR and certain related
matters, dated as of April 9, 2009 (the “DCM Board Letter Agreement”),
the Investor and DLM have entered into that certain Amended and Restated
Limited Liability Company Agreement of DPLC General Partner LLC, dated as of April 9,
2009 (the “GP Agreement”), DCM and PM have entered into that certain
Consulting Agreement, dated as of April 9, 2009 (the “Consulting
Agreement”), and the Investor and DFR have entered into that certain
Registration Rights Agreement, dated as of April 9, 2009 (the “Registration
Rights Agreement” and, together with Warrant A, Warrant B, the Fund I
Letter Agreement, the Subsequent Funds Letter Agreement, the DCM Board Letter
Agreement, the GP Agreement and the Consulting Agreement, the “Pegasus
Transaction Documents”); and

 

WHEREAS, the DFR proposes (i) to
issue shares of common stock, par value $0.001 per share, of DFR (the “Common
Stock”), pursuant to, and subject to the terms and conditions of, that
certain Acquisition and Investment Agreement (the “Acquisition Agreement”),
dated as of the date hereof, by and among DFR, Columbus Nova Credit Investment
Management, LLC and Columbus Nova Partners, LLC (“CNP”) (such
transaction, the “Stock Issuance”) and (ii) to issue senior
subordinated convertible notes (the “Convertible Notes”) convertible
into shares of Common Stock, pursuant to, and subject to the terms and
conditions of, that certain Senior Subordinated Convertible Notes Agreement
(the “Convertible Notes Agreement”), dated as of the date hereof,
between DFR and CNP (such transaction, the “Notes Issuance” and
collectively with the Stock Issuance, the “Securities Issuance”);

 

 

NOW, THEREFORE, in
consideration of the premises and the agreements, and for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties hereto agree as follows:

 

SECTION 1.  WAIVER OF
SPECIFIED PROVISIONS OF THE PEGASUS TRANSACTION DOCUMENTS

 

Effective as of the date
hereof, with respect to the Securities Issuance, the Pegasus Parties hereby
waive any rights of the Pegasus Parties and any obligations of the Deerfield
Parties under Sections 3(a) and 19 of the Fund I Letter Agreement.

 

SECTION 2.  TERMINATION OF CERTAIN SPECIFIED PROVISIONS
IN THE PEGASUS TRANSACTION DOCUMENTS; FUND DISTRIBUTIONS

 

2.1                                 Terminated
Agreements.  Warrant A,
Warrant B, the DCM Board Letter Agreement, the Subsequent Funds Letter
Agreement, the Registration Rights Agreement and the Consulting Agreement (collectively,
the “Terminated Agreements”) are hereby each terminated effective as of
the date hereof and the parties to each such Terminated Agreement shall cease
to have any rights, duties or obligations to each other in respect of such
Terminated Agreement.  The investor shall
promptly, but in any event within three business days from the date hereof,
deliver to DFR the original Warrant A and Warrant B for cancellation thereof.

 

2.2                                 Release of
Unfunded Capital Commitments.  Effective as of the date hereof, DLC GP and
the Fund hereby release all partners (including for the avoidance of doubt DLC
GP) of the Fund and all members of DLC GP from their unfunded (as of the date
hereof) capital commitments to the Fund and/or DLC GP.

 

2.3                                 Amendment of GP
Agreement.  The parties
to the GP Agreement agree to amend the GP Agreement to make the modifications
to the GP Agreement set forth in Exhibit A hereof in order to (i) remove
the subordination right thereunder pursuant to which losses on the Fund’s
investment portfolio are allocated first to DLM prior to such losses being
allocated to the Investor and (ii) provide that all such losses (and all
profits on the Fund’s investment portfolio other than in respect of incentive
allocations) will be allocated to DLM and the Investor pro rata based on their
respective indirect or direct investments in the Fund.

 

2.4                                 Termination of
Certain Provisions in the Fund I Letter Agreement. The parties
to the Fund I Letter Agreement agree that, effective as of the date hereof, the
terms and provisions of each of Sections 3(d), 4(e), 11 and 17 of the Fund I
Letter Agreement shall terminate and that none of the parties to the Fund I
Letter Agreement shall as of the date hereof have any rights, duties or
obligations under any of Sections 3(d), 4(e), 11 and 17 of the Fund I Letter
Agreement.

 

2.5                                 Fund
distribution.  (a) Notwithstanding
anything to the contrary in the Amended and Restated Limited Partnership
Agreement of the Fund, dated as of April 9, 2009 (the “Fund Agreement”),
the Fund shall permit the Investor and Jonathan Trutter to withdraw from their
respective capital accounts, and shall distribute to them, on or prior to April 15,
2010, the following amounts: (i) $ 9 million to the Investor; and (ii) an
amount equal to his entire 

 

 

capital
account balance, to Jonathan Trutter. 
Such withdrawals shall be at a valuation based upon the net asset value
of the Fund as of the end of the month immediately prior to such withdrawal;
provided that no unamortized organizational costs of the Fund will be deducted
from amounts required to be distributed to the Investor and Jonathan Trutter
pursuant to this Section 2.5(a).

 

(b) Notwithstanding
anything to the contrary in the Fund Agreement and/or the GP Agreement, on or
subsequent to the date on which the Investor receives its $9 million
distribution pursuant to Section 2.5(a) above, DLC GP shall be
permitted to (i) withdraw an amount equal to the entire portion of its
capital account balance attributable to DLM’s investment in DLC GP, and (ii) distribute
such amount to DLM. Any unamortized organizational costs of the Fund shall be
allocated between DLC GP and the Investor (in respect of the Investor’s
remaining capital account balance after its withdrawal from its capital account
pursuant to Section 2.5(a) above) in the manner set forth in the Fund
Agreement.

 

2.6                                 Additional
Documentation. The Parties agree to execute such additional
amendments, agreements and other documentation as shall be necessary to
consummate the transactions described in this Section 2.

 

2.7                                 Proposed Fund
Transactions.  (a) The
Parties agree to negotiate in good faith to (i) permit the Fund to
purchase $9 million in aggregate principal amount of senior subordinated
convertible notes issued by DFR pursuant to the Senior Subordinated Convertible
Notes Agreement, dated as of the date hereof, between DFR and CNP and (ii) modify
the Fund Investment Protocol and the other investment guidelines of the Fund in
a manner mutually agreeable to the Parties.

 

(b) In consideration of
Investor entering into this Agreement, DFR shall grant Investor warrants to
purchase an aggregate of 200,000 shares of Common Stock of DFR at an exercise
price of $4.25 per share expiring April 9, 2014 which warrants shall be
substantially in the form of Warrant A as adjusted to take into account the
terms of the Convertible Notes (the “Investor Warrants”).  In consideration of services provided to DFR
by Jeffrey Scott and Cary Meadow (together, the “Operating Advisors”), DFR
shall grant each of the Operating Advisors warrants to purchase an aggregate of
25,000 shares of Common Stock of DFR at an exercise price of $4.25 per share
expiring April 9, 2014 which warrants shall be substantially in the form
of Warrant A as adjusted to take into account the terms of the Convertible
Notes (the “Advisor Warrants” and, together with the Investor Warrants, the “New
Warrants”).  DFR shall deliver original
Investor Warrants to the Investor and original Advisor Warrants to the
Operating Advisors on or prior to April 15, 2010; provided that such New
Warrants shall not be delivered as set forth herein if the Investor has not
delivered Warrant A and Warrant B to DFR for cancellation thereof pursuant to Section 2.1
hereof.

 

(c) If the Parties are
unable to come to agreement regarding Section 2.7(a) above within 45
days of the date hereof, then the Investor shall have the right, upon prior
written notice to DLC GP, to withdraw its entire capital account balance in the
Fund (including the portion of DLC GP’s capital account balance attributable to
the Investor’s investment in DLC GP) as of the end of the month during which
the Investor delivers such notice to DLC GP and if the Investor exercises such
right to withdraw its entire capital account balance in the Fund, then DLC GP 

 

 

shall
withdraw and distribute to DLM 100% of the portion of its capital account
balance attributable to DLM’s investment in DLC GP as of the end of the month
during which the Investor delivers such notice to DLC GP.  Except as expressly set forth herein, such
withdrawals (and the distributions of withdrawal proceeds in respect thereof)
shall be made in accordance with the Fund Agreement.

 

2.8                                 Other
Agreements.  The
Deerfield Parties and the Pegasus Parties hereby agree and acknowledge, that
except for this Agreement, the Pegasus Transaction Documents and the Agreements
set forth on Exhibit B hereto, there are no agreements, understandings or
arrangements between the Deerfield Parties and the Pegasus Parties.

 

SECTION 3.  MISCELLANEOUS

 

3.1                                 Binding Effect.  This Agreement shall be binding upon the
Parties hereto and their respective successors and assigns and shall inure to
the benefit of the Parties hereto and their successors and assigns.  The Pegasus Parties’ waiver of rights
specified herein shall not be deemed to operate as a waiver of any other
rights, powers or privileges of the Pegasus Parties under the Pegasus
Transaction Documents.

 

3.2                                 Severability. In case any
provision in or obligation hereunder shall be invalid, illegal or unenforceable
in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

 

3.3                                 Effect on
Transaction Documents. 
Except as expressly set forth in this Agreement, the Pegasus Transaction
Documents shall remain in full force and effect and are hereby ratified and
confirmed by the Parties.

 

3.4                                 Execution. The
execution, delivery and performance of this Agreement shall not, except as expressly
provided herein, constitute a waiver of any provision of, or operate as a
waiver of any right, power or remedy of any of the Parties under the Pegasus
Transaction Documents.

 

3.5                                 Headings. Section headings
herein are included herein for convenience of reference only and shall not
constitute a part hereof for any other purpose or be given any substantive
effect.

 

3.6                                 No Third Party
Beneficiaries.  This
Agreement is not intended, and shall not be deemed, to confer any rights or
remedies upon any person other than the Parties.

 

3.7                                 APPLICABLE LAW. THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF
THAT WOULD REQUIRE THE APPLICATION OF LAWS OTHER THAN THOSE OF THE STATE OF NEW
YORK.

 

 

3.8                                 Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.

 

 

IN WITNESS WHEREOF, the
Parties hereto have executed this Agreement as of the day and year first
written above.

 

 

	
   

  	
  PEGASUS
  DEERFIELD (AIV), LLC

  
	
   

  	
   

  
	
   

  	
  By: Pegasus Investors IV, L.P., its managing
  member

  
	
   

  	
   

  
	
   

  	
  By: Pegasus Investors IV GP,
  L.L.C., its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jason Schaefer

  
	
   

  	
  Name:
  Jason Schaefer

  
	
   

  	
  Title:
  Secretary and General Counsel

  
	
   

  	
   

  
	
   

  	
  PGS
  MANAGEMENT, LLC

  
	
   

  	
   

  
	
   

  	
  By: Pegasus Capital Advisors IV, L.P., its
  managing member

  
	
   

  	
   

  
	
   

  	
  By: Pegasus Capital Advisors
  IV GP, L.L.C., its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jason Schaefer

  
	
   

  	
  Name:
  Jason Schaefer

  
	
   

  	
  Title:
  Secretary and General Counsel

  

 

 

	
   

  	
  DEERFIELD PEGASUS LOAN CAPITAL LP

  
	
   

  	
   

  
	
   

  	
  By: DPLC General Partner LLC, its
  general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert A. Contreras

  
	
   

  	
   

  	
  Name:
  Robert A. Contreras

  
	
   

  	
   

  	
  Title:
  Deerfield Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DPLC GENERAL PARTNER LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert A. Contreras

  
	
   

  	
   

  	
  Name:
  Robert A. Contreras

  
	
   

  	
   

  	
  Title:
  Deerfield Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEERFIELD
  CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert A. Contreras

  
	
   

  	
   

  	
  Name:
  Robert A. Contreras

  
	
   

  	
   

  	
  Title:
  General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEERFIELD
  CAPITAL MANAGEMENT LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert A. Contreras

  
	
   

  	
   

  	
  Name:
  Robert A. Contreras

  
	
   

  	
   

  	
  Title:
  General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEERFIELD
  LOAN MANAGER LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert A. Contreras

  
	
   

  	
   

  	
  Name:
  Robert A. Contreras

  
	
   

  	
   

  	
  Title:
  General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jonathan W. Trutter

  
	
   

  	
  JONATHAN TRUTTER

  
				

 

 

Exhibit A

 

 

Exhibit B

 

1.               Pegasus/Deerfield Term Sheet
dated December 25, 2008 among Pegasus Partners IV, L.P., Deerfield Capital
Corp. and Deerfield Capital Management, LLC

 

2.               Exclusivity Extension to
Pegasus/Deerfield Term Sheet dated January 30, 2009 among Pegasus Partners
IV, L.P., Deerfield Capital Corp. and Deerfield Capital Management, LLC

 

3.               Exclusivity Extension #2 to
Pegasus/Deerfield Term Sheet dated February 16, 2009 among Pegasus Partners
IV, L.P., Deerfield Capital Corp. and Deerfield Capital Management, LLC

 

4.               Exclusivity Extension #3 to
Pegasus/Deerfield Term Sheet dated February 27, 2009 among Pegasus
Partners IV, L.P., Deerfield Capital Corp. and Deerfield Capital Management, LLC

 

5.               Conditions Letter dated March 2009
among Pegasus Partners IV, L.P., Deerfield Capital Corp. and Deerfield Capital
Management, LLC

 

6.               Amendment to Fund I Letter
Agreement dated September 23, 2009 among Deerfield Pegasus Loan Capital
LP, DPLC General Partner LLC, Deerfield Capital Corp., Deerfield Capital
Management, LLC, PGS Management, LLC and Pegasus Deerfield (AIV), LLC

 

7.               First Amendment to Warrant A
dated September 23, 2009 between Deerfield Capital Corp. and Pegasus
Deerfield (AIV), LLC

 

8.               First Amendment to Warrant B
dated September 23, 2009 between Deerfield Capital Corp. and Pegasus
Deerfield (AIV), LLC

 

9.               Fund Administration
Agreement dated April 9, 2009 between Deerfield Pegasus Loan Capital LP
and Deerfield Capital Management, LLC

 

10.         Custodial Agreement dated April 9,
2009 among Deerfield Pegasus Loan Capital LP, Deerfield Capital Management, LLC
and Deutsche Bank Trust Company Americas

 

11.         Investment Advisory
Agreement dated April 9, 2009 between Deerfield Pegasus Loan Capital LP
and Deerfield Capital Management, LLC

 

12.         Management Fee Waiver Letter
dated December 28, 2009 among Deerfield Capital Management, LLC, PGS
Management, LLC, DPLC General Partner LLC and Pegasus Deerfield (AIV), LLC

 

 

13.         Limited Liability Company
Agreement of DPLC General Partner LLC dated February 9, 2009 by Deerfield
Loan Manager LLC

 

14.         Limited Partnership
Agreement of Deerfield Pegasus Loan Capital LP dated February 9, 2009
between Deerfield Capital Management, LLC and DPLC General Partner LLC

 

15.         Amended and Restated Limited
Partnership Agreement of Deerfield Pegasus Loan Capital LP dated April 9,
2009 among Pegasus Deerfield (AIV), LLC, Deerfield Capital Management, LLC and
DPLC General Partner LLC

 

16.         Amendment No. 1 to
Amended and Restated Limited Partnership Agreement of Deerfield Pegasus Loan
Capital LP dated August 21, 2009 among Pegasus Deerfield (AIV), LLC, DPLC
General Partner LLC and Jonathan Trutter

 

17.         Amendment No. 2 to
Amended and Restated Limited Partnership Agreement of Deerfield Pegasus Loan
Capital LP dated September 23, 2009 among Pegasus Deerfield (AIV), LLC,
DPLC General Partner LLC and Jonathan Trutter

 

18.         Subscription Agreement dated
April 9, 2009 between Deerfield Pegasus Loan Capital LP and Pegasus
Deerfield (AIV), LLC

 

19.         Subscription Agreement dated
April 9, 2009 between Deerfield Pegasus Loan Capital LP and DPLC General
Partner LLC

 

20.         Subscription Agreement dated
April 28, 2009 between Deerfield Pegasus Loan Capital LP and Jonathan
Trutter

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