Document:

Management Consultation Service Agreement

 

EXHIBIT 10.4

上海藏韵管理咨询有限公司和周兴涛、王维、符雅琴及海南藏宝天下艺术品有限公司、藏宝天下(上海)艺术品有限公司

Shanghai Cangyun Management Consulting Co., Ltd.and Xingtao Zhou、Wei wang 、Yaqin FU and 

Hainan Cangbao Tianxia Cultural Relic Co., Ltd. 、Cangbao Tianxia(Shanghai)Cultural Relic Co., Ltd.

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独家管理咨询服务协议 

Exclusive Management Consultation Service Agreement 

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2019年 8月8日 

中华人民共和国  

Dated: 8 August ,2019

The People’s Republic of China 

 

独家管理咨询服务协议 

Exclusive Management Consultation Service Agreement 

        本独家管理咨询服务协议(“本协议”)由以下各方(单独称为“一方”,统 称为“各方”)于 2019 年 8 月 8 日(“生效日”)在中华人民共和国广州市签署: 

This Exclusive Management Consultation Service Agreement (this “Agreement”) is made and entered into, as of (Augut 8th ,2018) (the “effective  day”), in (Guangzhou City), the People’s Republic of China, by the Parties as follows (the Parties will hereinafter be individually referred to as a “Party” or collectively referred to as the “Parties” or “each Party”): 

        (1)上海藏韵管理咨询有限公司(“上海藏韵”),一家在中华人民共和国(“中国”)上海注册的外商独资企业(WFOE),地址为中国上海市宝山区逸仙路1328号6幢3层3166室;

Shanghai Cangyun Management Consulting Co., Ltd. (“Shanghai Cangyun”), a wholly foreign owned enterprise registered in Shanghai, People’s Republic of China (“PRC”) with its address at Room 3166, 3rd Floor, Building 6, No. 1328, Yixian Road, Baoshan District, Shanghai, PRC;

 (2)海南藏宝天下艺术品有限公司、藏宝天下(上海)艺术品有限公司(均为“目标公司”,前者在中国海南注册、地址为中国海南省海口市美兰区国兴大道61号盛达商务广场6层609房的有限责任公司。后者在中国上海注册、地址为上海市青浦区朱家角镇康业路6号1幢五层C区169室的有限责任公司)

      Hainan Cangbao Tianxia Cultural Relic Co., Ltd., Cangbao Tianxia(Shanghai)Cultural Relic Co., Ltd. The former limited liability company registered in Hainan, PRC with its address at Room 609, 6th Floor, Shengda Plaza, No. 61, Guoxing Ave. Meilan District, Haikou City, Hainan Province, PRC.The later limited liability company registered in shanghai,PRC with its address at room 169, area C, 5th floor, building 1, no.6 kangye road, zhujiajiao town, qingpu district,hereinafter referred to as “Target Company”

(4) 公司股东周兴涛、王维、符雅琴为中华人民共和国公民。 

Shareholders  Xingtao Zhou、Wei wang 、Yaqin FU are citizens of the People’s Republic of China. 

除另有定义,粗体字的含义皆按本协议附件 A 所定义,该附件属于本协议的一部

分。 

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Unless other provisions in this Agreement, the terms in bold shall be referred to as the definitions in the Appendix A in this Agreement which shall be regarded as a portion of this Agreement.  

前言 

RECITALS 

鉴于以下事实,签订本协议: Whereas: 

A.  WFOE 是一家根据中华人民共和国(“中国”)法律有效成立的有限责任公

司。 

WFOE is a corporation with limited liability duly organized under the laws of the People’s Republic of China (“China”). 

B. 目标公司是由公司股东周兴涛、王维、符雅琴持有 100%股权的有限责任公司。目标公司现在以及将来可能从事的经营业务简称为“业务”。 

The Target Company is a corporation with limited liability, in which shareholders Xingtao Zhou、Wei wang 、Yaqin FU jointly holds 100% of the stock equity. The business the Target Company undertakes currently or may undertake in the future will be hereinafter referred to as the “Business”. 

有鉴于此,各方基于相互承诺和同意,充分考虑各方的利益,在全面了解和确认的 同时,经过友好协商,在平等互利的基础上,根据相关中国法律法规,各方签订协议如 下: 

NOW, THEREFORE, for the mutual commitment and consent, under the consideration of the benefit of all Parties and with comprehensively understanding and acknowledgement, all Parties, after friendly negotiation, based on the principle of mutual benefit, make and enter into, pursuant to relevant laws of China, an agreement as follows: 

1.

独家管理服务 

Exclusive Management Service 

本协议期限内,WFOE 将作为目标公司独家管理服务提供商,且目标公司为此目的 而聘请 WFOE。目标公司同意,本协议期间内,其将不会接受来自任何第三方提供 的相同或相似服务。WFOE 提供的服务范围包括,在 WFOE 股东大会和/或董事会依

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据本协议条款的监督和授权下,确认并向目标公司提供足够的,能够提供附件 B 所 示服务(“管理服务”)的富有经验的专业管理和财务人员。 

Within the term of this Agreement, the WFOE shall act as the exclusive provider to provide the Target Company with management service, and the Target Company shall engage the WFOE for such purpose. The Target Company agrees, within the term of this Agreement, it shall not engage any third party or accept the same or similar service provided by any third party. Within the service scope, the WFOE shall, under the supervision and authorization by the Board of Shareholders and/or Board of Directors of the WFOE pursuant to this Agreement, verify and provide the Target Company with sufficient experienced management and financial personnel who are competent in providing the services (“Management Service”) set forth in the Appendix B of this Agreement  

2.

服务费 Service Fee 

(a) 鉴于 WFOE 提供的管理服务,WFOE 有权在本协议期限内向目标公司收取相应 的服务费。在本协议期限内,每一年度的服务费按《购买权协议》 约定的对应年度的股东收益权货币价值收取。 

Within the term of this Agreement, the WFOE shall be entitled to charge the management service fees on the Target Company, with an annual service fee which is equivalent of the annual monetary value of the shareholder usufruct stipulated in Shareholder Usufruct Transfer Agreement. 

(b) 就每一年度的服务费,目标公司应于每一服务年度结束后的 30 个公历日 内,向 WFOE 一次性支付。 

Such annual service fee shall be one time charge which the Target Company shall pay to the WFOE within a period of 30 calendar days which commence from the end of each service year.  

(c) 根据 WFOE、股东和目标公司于 2019年 8月 8日签订的股权质押协议,股东已质押他们所持有的对目标公司注册资本的全部权益,以确保目标公司根 据本协议约定支付服务费。 

Pursuant to the Stock Equity Pledge Agreement made and entered into, as of (August 8th,2019), by the WFOE, the Shareholders and the Target Company, the Shareholders have already made all of the 

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equity of the registered capital of the Target Company they  hold in pledge, to ensure that the Target Company will pay such service fee pursuant to this Agreement.  

3.

业务运营 

Business Operation 在本协议的期限内: 

Within the term of this Agreement,  

(a)

各方保证: All Parties guarantee that: 

(i) 管理服务和本协议所涵盖的业务将包括目标公司的业务以及目 标公司所享有的所有业务机会; 

The management service and the business covered  in this Agreement shall include the  business  of the Target Company and all business opportunities  which the Target Company may share; 

(ii) 目标公司的所有现金应留存于公司银行账户或根据本协议条款 予以处置; 

All of the cash of the Target  Company  shall be reserved in the bank account of such Target  Company, or be disposed pursuant to this Agreement; 

(iii) 目标公司所持有的、源于或涉及目标公司业务经营的所 有营业收入、营运资本、应收账款、以及其他资金,应存于公 司银行账户; 

All operating revenue, operating capital, accounts receivable and other capital, held by the company or brought about from or relating to the business of the Target Company, shall be deposited in the bank account of such Target Company; 

(iv) 所有应付账款、员工补偿金、其他雇用相关支出、以及涉及为 目标公司利益而购置资产或因理赔目标公司责任的支出,应从 公司银行账户的余额支付;以及 

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All accounts payable, compensations  to employees, other expenses relating to employment and the expenses relating to the purchase of the assets for the benefit of the Target Company or to any indemnification to the liability of the Target Company, shall be paid  from the balance of the bank account of the Target Company; and 

(v) 未有 WFOE 的事先书面同意,不得采取可能导致部分或全部目 标公司业务委托给他人的行为。 

Without prior written consent of the WFOE, any action that may cause part or all of the business of the Target Company entrusted to other person shall not be taken.  

(b)

WFOE 保证: WFOE guarantees that: 

(i) 将以经营自身业务所持的谨慎水准建议目标公司所从事的协议 所述业务,并始终遵循其合理商业判断原则,包括不得采取知 晓或根据其合理商业判断应当知晓,会实质性不利于业务经营 所必需的许可、执照以及批准的行为,或者违反中华人民共和 国相应法律法规的行为;以及 

The WFOE shall make suggestion on the business conducted by the Target Company set forth in this Agreement in prudence with which the WFOE conducts its own business, and shall abide by any reasonable business judgment principles, including without taking any action, which, it knows or it shall know based on reasonable business judgment, may materially  go against the approval, permit or license necessary for the business, or any action which may violate relevant laws and regulations of the People’s Republic of China; and 

(ii) WFOE 应保持目标公司业务和运营的完整性,且不得采取其知 晓或根据其合理商业判断应当知晓,会实质性不利于目标公司 业务、运营和前景的行为。 

The WFOE shall preserve and maintain the integrity of the business and operation of the Target Company, and shall not take any action, which, it knows or it shall 

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know based on reasonable business judgment, may materially go against the business, operation and prospects of the Target Company.  

(c)

股东保证: The Shareholders guarantee that: 

(i) 确保除非已经向 WFOE 足额支付适用年度的管理服务的服务 费,否则他们中的任何一位都不会在该年度收取其作为目标公 司股东所享有的部分或全部净利润; 

The Shareholders shall not obtain any net profit they may have as the shareholders of the Target Company, unless the management service fee in relevant year has been paid in full amount; 

(ii) 根据本协议,股东或其代理人、代表人不得采取任何干预业务 运营、或有干预业务运营效果的、或实质性不利于目标公司资 产、运营、业务或前景的行为; 

Pursuant to this Agreement, the Shareholders or their agents and representatives shall not take any action which may interfere with the business operation or the result of business operation, or may materially go against the assets, operation, business or prospects of the Target Company; 

(iii) 他们将委派并选举 WFOE 根据其管理服务提议的目标公 司的董事人选为董事; 

The Shareholders shall appoint and elect the director candidate recommended by the WFOE, according to the management service provided by the WFOE, to the Target Company, to be the director; 

(iv) 他们将尽最大努力合作并协助 WFOE 和目标公司有效持有目标 公司业务经营所需的所有许可证、执照、其他授权或批准;以 及 

The Shareholders shall strive, in greatest efforts, to cooperate with and assist the WFOE and the Target Company to hold effectively and validly all of the permits, licenses, other authorization or approval 

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necessary for the operation and business of the Target Company; and 

(v) 他们将尽最大努力协助 WFOE 及目标公司与相关政府机关及其 代表保持积极和卓有成效的关系。 

The Shareholders shall strive, in greatest efforts, to assist the WFOE and the Target Company in preserving and maintaining active and effective relationship with the governmental sectors and their representatives. 

(d)

目标公司保证其将: The Target Company guarantees that: (i) 按照本协议第二条中的规定向 WFOE 支付服务费; 

The Target Company shall pay the management service  fee to the WFOE pursuant to the Paragraph 2 in  this Agreement; 

(ii) 就 WFOE 为履行本协议项下的管理服务,向 WFOE 提供目标公司 各类运营及财务信息(包括但不限于目标公司的月度、季度、年 度财务会计报表、预算安排和商业计划),并在 WFOE 的合理要 求下,就任一事项提供具体说明; 

For the management service provided by the WFOE under this Agreement, the Target Company shall provide the WFOE with the operation and financial information and data, including but not limited to the monthly, quarterly, and annual financial statements, budget arrangements and business plan of the Target Company, and shall provide specific notes to any such item at the request of the WFOE. 

(iii) 为 WFOE 以及 WFOE 授权的人员为履行本协议进入目标公司的办 公场所及其他业务场所提供协助; 

The Target Company shall assist the WFOE and the staff authorized by WFOE in going on site to the office of the Target Company and other places of business for the purpose of this Agreement; 

(iv) 在与第三方签订重大合同前通知并获得 WFOE 的书面同意。本 条所指重大合同是指任何与第三方订立的合作、转让股权、融资

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或其他任何可能影响 WFOE 在本协议中的利益的书面的或口头的 合同、协议、约定或承诺,或可能合理导致目标公司做出任何变 更或提前终止本协议决定的书面的或口头的其他合同、协议、约 定或承诺; 

The Target Company shall notify and  obtain written consent from the WFOE prior to making and entering into material contract with a third party. The material contracts in this clause shall refer to as any written or verbal contract, agreement, engagement or commitment entered into by the Target Company and any third  party for cooperation, stock equity transfer, financing or any other purpose which may affect the WFOE’s benefit  in this Agreement, or any other written or verbal contract, agreement, engagement or commitment which may reasonably result in any determination by the Target Company to modify or in advance terminate this Agreement; 

(v) 及时通知 WFOE 任何可能合理地影响目标公司的各类司法或仲裁 程序,不论目标公司是否为其中一方,以及任何目标公司可能或 已经接受行政处罚的情况; 

The Target Company shall timely notify the WFOE of any legal or arbitration proceeding which may reasonably affect the Target Company, whether the Target Company is involved as a party or not, and of any administrative sanction which the Target Company may receive or has been received. 

(vi) 及时通知 WFOE 任何可能或已经影响目标公司正常运营的其他 各类事件; 

The Target Company shall timely notify the WFOE of any other event or incident by which the normal and regular operation of the Target Company may be or has been affected; 

(vii) 经 WFOE 的合理要求,从有关政府机关处获得目标公司为履行 本协议所必需的各类及全部批准、许可、同意和授权; 

The Target Company shall, at the reasonable request of the WFOE, obtain any or all governmental approvals, 

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permits, license, consents and authorization  necessary for performing this Agreement; 

(viii)

向 WFOE 提供其与有关政府机关的所有联络往来,包括 从其处获得各类及全部批准、许可、同意和授权的复印件; 

The Target Company shall provide to the WFOE with all of the communication with the governmental sectors, including the facsimile copies of all approvals, permits, license, consents and authorization obtained from such governmental sectors; 

(ix)

尽其最大努力有效持有目标公司业务经营所需的各类及全部批 准、许可、执照、同意和授权; 

The Target Company shall strive, in the greatest efforts, to validly hold all of the approvals, permits, license, consents and authorization necessary for the operation and business of the Target Company; 

(x) 在本协议第九条中所作的陈述与保证在本协议期限内持续有效并 准确;以及 

The representation and guarantees in the Paragraph 9 in this Agreement shall be continuously valid and accurate within the term of this Agreement; and  

(xi)

董事会聘任 WFOE 根据其管理服务提议高级管理人员(包括但 不限于总经理、财务总监)的人选。 

The Board of Directors of the Target Company shall engage the senior officer candidates recommended by the WFOE pursuant to the management service provided by the WFOE, including but not limited to general manager and chief financial officer. 

4.

实质行为 

Substantial or Material Action 

            各方认可并同意,在本协议期限内,未得 WFOE 的事先书面同意,各方保证目标公司及股东不得采取任何实质行为(实质行为的含义见本协议附件 C),但该 等同意要求不得被不合理拖延或拒绝。 

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            All Parties approve and agree, within the term of this Agreement, all Parties guarantee, without prior written consent of the WFOE, the Target Company and Shareholders shall not take  any  substantial or material action which shall be referred to as the definitions in the Appendix C in this Agreement, but such prior written consent shall   not be unreasonably delayed or withheld. 

5.

签署承诺函 Commitment Letter 

           为进一步确保 WFOE 顺利提供本协议附件 B 所列管理服务,以及股东不实施任 何实质行为,股东同意签署本协议附件 D 所列承诺函。 

            The Shareholders agree to execute signatures on the Commitment Letter in the Appendix D of this Agreement, to further ensure that WFOE could successfully provide the management service set forth in the Appendix B of this Agreement and that the Shareholders will not take any substantial or material action.  

6.

优先购买权  Purchase Priority  

           股东同意授予 WFOE 购买其持有的对公司注册资本的全部或部分权益的优先权 利。

      The Shareholders agree to award the WFOE a priority to purchase all or part of the equity of the registered capital of the Target Company owned by the Shareholders. 

7.

知识产权的所有权 

Ownership of Intellectual Property 

 WFOE 提供管理服务过程中所创造的知识产权仅可作为 WFOE 的财产,目标公司不 得所有或使用该知识产权,WFOE 与目标公司就此达成单独协议的除外。 

      The intellectual property created by the WFOE in the process to provide management service shall only be deemed as the property of WFOE; the Target Company shall not possess or apply such intellectual   property, 

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unless a separate agreement for such possession or application of such intellectual property is made and entered into by and between the WFOE and the Target Company. 

8.

目标公司和股东的陈述与保证 

       Representation and Guarantee of the Target Company and Shareholders 目标公司与股东在此为 WFOE 利益做出如下陈述和保证: 

The Target Company and shareholders hereby represent and guarantee for the benefit of WFOE as follows: 

(a)公司存续和权利 目标公司依据中华人民共和国法律合法有效设立,具备 当前和当前预期开展业务所要求的公司的所有权利以及政府颁发的所有许可 证、授权、同意和批准。股东从未批准或开展,任何旨在解散或清算目标公 司或终止目标公司业务或事务的程序或选举。 

     The Existence and Corporate Right of the Company The Target Company is a company duly organized under the  laws  of the People’s Republic of China, with all necessary and required corporate right and approval, authorization, consent and ratification from governmental sectors, to operate the current and prospective business; the shareholders of this Company never approved to and conducted any procedure or election so as to dissolve or liquidate the Target Company, or to terminate the business or operation of the Target Company. 

(b)授权;无未决同意 目标公司(i)已采取一切必要公司行为,以签署、交 付和履行本协议和所有相关文件,并具备签署、交付和履行本协议和所有相 关文件的公司权力和授权;(ii)具备绝对和不受限制的权利、权力、授权 和资格,以签署和交付本协议和其他相关文件以及履行本协议和其他相关文 件项下的义务;(iii)关于签署和交付本协议或履行本协议所计划的任何 独家合作安排义务,除已有效发出的通知或征得的同意外,无需向其他任何 人发出通知或征得同意;以及(iv)持有所有必需政府许可,以允许目标公 司按照当前开展和运营业务的方式合法开展和运营其业务,以及按照当前所 有和使用其资产的方式所有和使用其资产。就目标公司所知,任何政府机构 未有以任何方式撤回、撤销和终止该任何政府许可的依据。 

     Authorization; No Pending Consent The Target Company (i) has already taken all necessary and required corporate action, and has the power and authorization, to execute, deliver and perform this Agreement  and  all  relevant  documents;  (ii)  has  absolute and 

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unlimited rights, power, authorization, competence and capacity in executing and delivering this Agreement and all relevant documents, and in performing the obligations under this Agreement and all relevant documents; (iii) has no other necessary notification to issue or consent to obtain, besides the notifications and consent effectively issued and obtained, in executing and delivering this Agreement and in performing the obligation of any exclusive cooperation arrangement under this Agreement; and (iv) has all necessary and required governmental approvals so that the Target Company is permitted to legally conduct and operate the business as the current business mode, and to possess and apply the assets as the current mode in possessing and applying such assets. In the acknowledgement of the Target Company, any governmental sector holds no legal source to withdraw, repeal or terminate, in any way, any of such governmental approvals aforementioned. 

(c)

不冲突

目标公司签署和履行本协议不会违反、抵触或导致违背

(i)任何目标公司组织文件的规定;(ii)目标公司董事会和股东会通过 的决议;以及(iii)目标公司或任何本协议计划的独家合作安排所遵循的 任何法律法规。 

       No Inconsistence The execution and performance of this Agreement by the Target Company result in no violation, conflict, contradiction or contravention (i) against the stipulations  for the Target Company to make a document, (ii) against any resolution approved by the Board of Directors and Board of Shareholders  of the Target Company, and (iii) against any laws and regulations pursuant to which the Target Company or this Agreement make plans for the exclusive cooperation arrangement. 

9.

WFOE 的陈述和保证   

       Representation and Guarantee of the WFOE 

WFOE 在此为目标公司和股东利益做出如下陈述和保证: 

The WFOE hereby represent and guarantee for the benefit of Target Company and shareholders as follows: 

(a) 公司的存续和权利 WFOE(i)是按照中华人民共和国法律有效设立 和存在的外商投资公司,具备所有必需的公司权利和政府许可、授权、同意 和批准,以开展当前业务和当前所预期的业务;以及(ii)从未批准或开 展,任何旨在解散或清算 WFOE 或终止 WFOE 业务或事务的程序或选举。 

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      The Existence and Corporate Right of the Company  The WFOE (i) is a wholly foreign owned company, duly organized and existing under the laws of the People’s Republic of China, with all necessary and required corporate right and governmental approval, authorization, consent and ratification, to operate the   current and prospective business, and (ii) never approved to and conducted any procedure or election so as to dissolve or liquidate the WFOE, or to terminate the business or operation of the WFOE. 

(b) 授权;无未决同意 WFOE(i)已采取一切必要公司行为,以签署、 交付和履行本协议和所有相关文件,并具备签署、交付和履行本协议和所有 相关文件的公司权力和授权;(ii)具备绝对和不受限制的权利、权力、授 权和资格,以签署和交付本协议和其他相关文件以及履行本协议和其他相关 文件项下的义务;(iii)关于签署和交付本协议或履行本协议所计划的任 何独家合作安排义务,除已有效发出的通知或征得的同意外,无需向其他任 何人发出通知或征得同意;以及(iv)持有所有必需政府许可,以允许 WFOE 按照当前开展和运营业务的方式合法开展和运营其业务,以及按照当 前所有和使用其资产的方式所有和使用其资产。就 WFOE 所知,任何政府机 构未有以任何方式撤回、撤销和终止该任何政府许可的依据。 

       Authorization; No Pending Consent The WFOE (i) has already taken all necessary and required corporate action, and has the power and authorization, to execute, deliver and execute this Agreement and all relevant documents; (ii) has  absolute and unlimited rights, power, authorization, competence and capacity in executing and delivering this Agreement and all relevant documents, and in performing the obligations under this Agreement and all relevant documents; (iii) has no other necessary notification to issue or consent to obtain, besides the notifications and consent effectively issued and obtained, in executing and delivering this Agreement and in performing the obligation of any exclusive cooperation arrangement under this Agreement; and (iv) has all necessary and required governmental approvals so that the WFOE is permitted to legally conduct and operate the business as the current business mode, and to possess and apply the assets as the current mode in possessing and applying such assets. In the acknowledgement of the WFOE, any governmental sector holds no legal source to withdraw, repeal or terminate, in any way, any of such governmental approvals aforementioned. 

(c)

不冲突

WFOE 签署和履行本协议不会违反、抵触或导致违背

(i)任何 WFOE 成立文件的规定;(ii)WFOE 董事会和股东会通过的决

13

 

议;以及(iii)WFOE 或任何本协议计划的独家合作安排所遵循的任何法律 法规。 

       No Inconsistence The execution and performance of this Agreement by the WFOE result in no violation, conflict, contradiction or contravention (i) against the stipulations  for the WFOE to make a document, (ii) against any resolution approved by the Board of Directors and Board of Shareholders of the WFOE, and (iii) against any laws and regulations pursuant to which the WFOE or this Agreement make plans for the exclusive cooperation arrangement. 

10.

违约责任,补偿和免责赔偿 

       Liability of Breach, Indemnification and Exoneration Compensation 

    一方应对违反本协议所导致的协议其他各方的损失或损害承担责任。该等责任 包括所有的直接经济损失、任何可以合理预见到的间接经济损失以及由此产生的相 关费用,包括但不限于律师费、诉讼费、仲裁费以及差旅费用。目标公司与股东将 共同并连带地补偿和确保 WFOE 不遭受任何第三方主张或声称的与本协议预期的交 易相关的任何赔偿、损失或损害,但因 WFOE 违反本协议项下义务,或其随意、放 纵或不法行为所导致的赔偿、损失或损害除外。WFOE 应补偿并确保目标公司或股 东不遭受任何第三方主张或声称与本协议预期的交易相关的任何赔偿、损失或损 害,但因目标公司或股东违反本协议项下义务,或目标公司或股东随意、放纵或不 法行为所导致的赔偿、损失或损害除外。 

             A Party shall assume the liability for any loss or damage of any other Party herein caused by its breach of this Agreement. Such liability shall include all direct economic losses,  any indirect economic loss which can be reasonably predicted, and any relating expense brought about from such losses, including but not limited to attorney fee, proceeding fee, arbitration fee and travel expenses. The Target Company and shareholders shall collectively and  jointly indemnify against and protect the WFOE from any compensation, loss or damage relating to any predicted transaction under this Agreement, claimed or asserted by any third party, except for any compensation, loss or damage resulted from the WFOE’s breach of obligation under this Agreement, or its indiscretion, indulgence or inaction; and vice versa. 

11.

争议解决 

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       Solution to Dispute 

(a) 友好协商 任何源于或关于本协议的解释或履行的争议、分歧或赔 偿请求,以及任何违约或违反此处所创关系的行为,应当通过友好协商解 决。 

     Negotiation Any dispute, difference  or  claim for indemnification arising from or relating to this Agreement, and any breach or conduct that may result in any violation against the relationship under this Agreement, shall be settled and solved through friendly negotiation. 

(b) 仲裁 由于本协议解释和履行而产生的任何争议应当首先通过各方友好协商解决。如果争议在一方发出要求与其他一方进行协商的通知后三十(30)天内未能解决,任何一方可以将该争议提交中国国际经济贸易仲裁委员会根据该会届时有效的仲裁规则在上海进行仲裁。仲裁庭由三(3)名载于或者未载于中国国际经济贸易仲裁委员会仲裁员名册之上的仲裁员组成,其中上海藏韵指定一名仲裁员,各股东共同指定一名仲裁员,第三名仲裁员担任仲裁庭庭长,由双方选择的仲裁员共同指定,且其不得为美国或者中国公民,并应当中英文流利且具有争议所涉领域的专业知识。仲裁裁决为终局性的且对所有各方具有约束力。 

      Arbitration Any dispute arising from the interpretation and performance of this Agreement shall first be resolved through friendly consultations by the Parties.  If the dispute fails to be resolved within thirty (30) days after one Party gives notice requesting consultations to the other Party, either Party may submit such dispute to China International Economic and Trade Arbitration Commission (hereinafter the “CIETAC”) for arbitration in Shanghai in accordance with the then effective arbitration rules of the CIETAC.  The arbitration panel shall consist of four (4) arbitrators who may or may not be on the CIETAC’s list of arbitrators, of which one arbitrator shall be selected by Shanghai Cangyun and one arbitrator shall be jointly selected by the Shareholders.  The fourth arbitrator, who shall be the chairman of the arbitration panel, shall be jointly selected by the two arbitrators selected by the Parties and shall not be a citizen of the United States or the PRC, shall be fluent in both English and Chinese and shall have expertise in the area of the dispute.  The arbitration award shall be final and binding on all Parties.

(i) 仲裁程序应以中文进行。仲裁庭开庭时,如果任何一方或他们 的代理或证人要求英文翻译,翻译可以根据仲裁规则提供,翻译服务 的开支与费用由要求翻译的一方承担。 

                    The arbitration shall be conducted in Chinese language. In the session of such arbitration, if a Party or its  agent or witness requires English translation or  interpreting, 

15

 

such translation or interpreting service may be provided pursuant to arbitration rules, with the translation or interpreting fees and expenses assumed by the Party requiring such service. 

(ii)

仲裁裁决为终局并有效拘束各方。 

                    The adjudication of arbitration shall be a final judgment and be binding on all Parties. 

(iii)

争端解决过程中,各方应继续履行本协议项下的其他义务。 

                    During the solution of such dispute, all Parties shall proceed with other obligations under this Agreement. 

12.

期限 

       Term 

本协议自各方签署之日起生效,并持续有效至购买权协议终止时终止, 或按以下方式之一终止。本协议有效的期限称为“期限”。 

       This Agreement comes into force after the signature of each Party is executed, and will be expired as the Call Option Agreement is expired or in any way as follows. The validity period of this Agreement is referred to as the “Term” 

(a)

互相同意

本协议可于任何时间由各方以互相同意的方式终止,互 相同意以各方签字的书面协议为依据。 

                  Mutual Consent This Agreement may be terminated, at  any time, by mutual consent, which may be obtained after  the signatures of the Parties are executed in a written agreement. 

(b)

违约或破产  WFOE 和目标公司都可根据以下情况立即终止本协议:

(a)另一方实质违反其本协议项下的义务,且未能在违约方发出书面通知 三十(30)个公历日内消除该违约行为;或(b)另一方提出或被提出自愿 或非自愿破产申请,或另一方已破产,或任何置另一方于破产状态法律程序 的开始,或另一方为债权人利益开始任何财产的转让或分配。 

       Breach or Bankruptcy This  Agreement  may  be terminated promptly by the WFOE and the Target Company, in the conditions as follows: (a) a Party materially violates the obligations  under this Agreement, and such violation is not eliminated within thirty 

16

 

(30) calendar days which commence from the day of the issuance  of a written notification by the non-defaulting Party; (b) the other Party raises or is threatened to raise a voluntary or involuntary bankruptcy petition, or the other Party has already been in bankruptcy, or any legal proceeding resulting in the bankruptcy of the other Party commences, or the other Party, for the benefit of the creditor, commences the transfer or distribution of its property. 

(c) 存续 第 10 条的规定(违约责任;补偿和免责赔偿),第 11 条(争 议解决),以及第 13 条(其他事项)不因本协议的终止而失效。尽管协议 按此终止,但任何一方对另一方根据本协议承担的债务自协议终止日仍然有 效。 

      Existence The provisions  in  Paragraph  10  (Liability of Breach, Indemnification and Exoneration Compensation),  Paragraph 11 (Solution to Dispute) and Paragraph 13 (Other Particulars) will not be null and void as the expiration of this Agreement. Notwithstanding the expiration of this Agreement, the liability assumed by any Party to the other, under this Agreement, will remain valid after such expiration. 

13.

其他事项 

Other Particulars 

(a)适用法律 本协议的签订、生效、解释、履行、修订与终止应由中国法律 管辖。 

             Applicable Laws The execution, validation, interpretation, performance, amendment and termination of this Agreement shall be under the jurisdiction of the laws of China. 

(b)生效 本协议在各方正式授权代表签署时即生效并对各方具有约束力。 

Validation  This Agreement shall come into force and be  binding on all Parties promptly after the signatures are executed by the officially authorized representatives of all Parties. 

(c)修订 除非本协议另有约定,本协议的任何修改均应由各方签署书面协议方 为有效。 

17

 

             Amendment Unless other provisions in this Agreement, any amendment to this Agreement shall be in force only after a written agreement is executed by all Parties. 

(d)费用 除非中国法律另有规定,目标公司应当支付所有与本协议项下付款相 关的所有的印花、文档登记或其他税收,以及目标公司的实际费用和内部费 用。 

             Expenses Unless other provisions under the laws of China the Target Company shall assume all stamp taxes, transcripts and other taxes relating to the loans under this Agreement, and other out-of-pocket expense and internal expenses of the Target Company. 

(e)不豁免 任何一方对于另一方因违反本协议或对本协议构成违约而迟延 或疏忽行使任何权、利力或救济不得损及受害方所享有的该等权利、权力或 救济,亦不得解释为受害方对该等违约或随后任何类似违约救济的放弃,或 对该等违约的默认。对任何一方违反本协议或对本协议构成违约的任何部分 的任何种类或必须的放弃、许可、同意或批准,或对任何一方对本协议的任 何规定或条件部分的任何放弃必须以书面的形式做出,且仅在以该等书面形 式中特别规定的范围内有效。本协议或法律或以其它方式赋予各方的全部救 济应为累积的而不是仅可选择的。 

             Non-exemption  Any Party’s delay or negligence in the exercise of rights, power or remedy resulted from other Party’s violation or breach of this Agreement, shall not damnify or damage such rights, power or remedy of the injured Party, and shall not be construed as any waiver of the injured Party in the remedy against such breach or any subsequent similar breach, or as the injured Party ’ s pretermission to such breach. Any waiver, approval, consent or ratification, necessary or in any category, of any part of this Agreement under the violation or breach  by any Party, or any waiver of any part or of any provision of this Agreement by any Party, shall be executed in written and only be effective to the extent expressly set forth in such written document. All remedies to each Party provided by this Agreement, laws or otherwise shall be accumulative, rather than to  select one only. 

(f)全部协议 本协议及本协议提及的或其明示包含的其他合同及文件构成各 方之间就本协议项下标的签订的完整的协议,并取代各方就本协议项下标的 所达成的任何先前的口头的或书面的协议、合同、承诺和通信。 

18

 

             Entire Agreement This  Agreement  and  other  agreements, contracts or documents referred to or overtly involved in this Agreement shall constitute an entire Agreement for the target under this Agreement by all Parties. Such entire Agreement shall substitute any prior verbal or written agreement, contract, commitment and communication for the target under this Agreement by all Parties. 

(g)可分割 如果本协议的任何条款在可适用的中国法下被认为非法或者不 具强制执行力,该条款应被视为被从本协议中删除并且不具有效力。本协议 的其他的条款及条件应仍然有效,本协议并应被认为在最初签署时已排除了 该无效条款。 

             Severability  If any provision of this Agreement shall be  held as invalid, illegal or unenforceable under applicable laws of China, such provision shall be deemed as eliminated from this Agreement and ineffective. The validity, legality and enforceability of the remaining provisions in this Agreement shall not be affected in any way, and such invalid, illegal or enforceable provision shall also be deemed as eliminated  from this Agreement at the very beginning of the execution of this Agreement. 

(h)保密性 自本协议终止之日起至其后 5 年止,每一方均应对保密信息严 格保密并且除为诚信地履行本协议之目的外,不得直接或间接为其他任何目 的披露、使用或利用该信息。 

             Confidentiality     Within 5 years which commence from the  day of the termination or expiration of this Agreement, each Party shall maintain secrecy of all confidential data and information. Except for the performance of this Agreement in good faith, such confidential data and information shall not be exposed, used or applied directly or indirectly for any other purpose. 

此处“保密信息”指:(i)本协议以及此处所涉及或另外纳入的所有协议 和文件的存在和内容;以及(ii)涉及各方的可能包含非公众信息的任何形 式的任何信息、文件或数据,包括技术信息、数据、工艺和方法、商业秘 密、市场分析、定价信息、客户名单、调查、软件、一般技术、设计和广告 和其他私人或保密的信息或数据以及任何财务结果或信息。 

 Such “Confidential Data and Information” shall include: (i) the existence and content of this Agreement and all other agreements and documents relating to or involved by this Agreement; (ii) any 

19

 

form of information, document or data relating to each Party, which may include any non-public information, including technical information, data, techniques and method, trade secret, market analysis, pricing data, list of clients or customers, investigation, software, general technology, design and advertisement, other private or confidential information or data and any financial and accounting result and data. 

(i)继续有效 在此所作声明、保证、承诺和约定在本协议拟议的交易完成后 继续有效。 

             Continued Validity Any declaration, guarantee, commitment and stipulation under this Agreement will remain in validity  after the completion or accomplishment of transaction proposed pursuant to this Agreement. 

(j)继承方与转让 除非本协议另有约定,未得任何其他各方事先书面同 意,一方不得出让或转让本协议项下的权利或义务。本协议的条款应对本协 议各方的继受人和经允许的受让人有利并对其具有约束力。 

              Successor and Assigns Unless other provisions in  this Agreement, without prior written consent of all other Parties, any Party shall not assign or transfer any right or obligation under this Agreement. The provisions under this Agreement shall inure to the benefit of the successor or permitted assignee of the Parties herein and be binding on such successor or assignee. 

(k)语言 本协议由中文及英文书写。两个语言版本同等真实。各方在此确认其 均审阅了两个语言的版本并且两个版本在所有重大方面实质相同。在两个版 本存在差异的情况下,应以中文版为准。 

             Language This Agreement is made in Chinese language and English language, which are equally authentic. All Parties hereby confirm that the Agreement in such two  languages  has been reviewed and materially the same with all aspects. In the case of any inconsistence between such two versions, the Chinese version shall prevail. 

(l)副本 本协议在中国广州市由各方正式授权代表签署(四)份原件(每份中英 文各一份)。每一方应留存一份原件。 

             Counterparts This Agreement is executed, in (Guangzhou City), China, by the officially authorized representatives of each Party, 

20

 

in (four copies) in both Chinese language and English language, each of which shall be authentic and each Party shall keep one in both languages. 

(m)进一步确认 自本协议签订之日起,应一方要求,接到要求的另一方应签署 并交付为确认、履行并充分实现本协议的意图和目的所合理必需或有益的文 书、文件或其他书面材料。 

              Further Confirmation    As from the execution of this Agreement, at the request of any Party, other Party receiving such request shall execute and deliver any writ, document or other written material, reasonably necessary or useful for confirming, performing and fully realizing the intents and goals under this Agreement. 

[以下为签字页] [Signatures in Next Page]

21

 

 

各方在此于段首之日签署本独家管理咨询服务协议,以昭信守。 

            The Parties hereby sign and execute this Exclusive Management Consultation Service Agreement as of the date aforementioned at the beginning of this Agreement. 

 

			
	上海藏韵管理咨询有限公司

	 
	海南藏宝天下艺术品有限公司

	Shanghai Cangyun Management Consulting Co., Ltd.

	 
	Hainan Cangbao Tianxia Cultural Relic Co., Ltd.

	 
	 
	 

	签字:/s/ Yung Lap Tsang

	 
	签字:/s/ Liang Tan

	Signature: /s/ Yung Lap Tsang

	 
	Signature: /s/ Liang Tan

	 
	 
	 

	姓名:

	 
	姓名:

	Name:

	 
	Name:

	 
	 
	 

	职务:法定代表人

	 
	职务:法定代表人

	Position: Legal Representative

	 
	Position: Legal Representative

	 
	 
	 

	藏宝天下(上海)艺术品有限公司

	 
	 

	Cangbao Tianxia(Shanghai)Cultural Relic Co., Ltd.

	 
	 

	 
	 
	 

	签字:/s/ Liang Tan

	 
	 

	Signature: /s/ Liang Tan

	 
	 

	 
	 
	 

	姓名:

	 
	 

	Name:

	 
	 

	 
	 
	 

	职务:法定代表人

	 
	 

	Position: Legal Representative

	 
	 

	 
	 
	 

	股东:周兴涛

	 
	 

	Shareholders: Xingtao ZHOU

	 
	 

	 
	 
	 

	签字:/s/ Xingtao ZHOU

	 
	 

	Signature: /s/ Xingtao ZHOU

	 
	 

	 
	 
	 

22

 

			
	股东:王维

	 
	股东:符雅琴

	Shareholders:Wei WANG

	 
	Shareholders:Yaqin FU

	 
	 
	 

	签字:/s/ Wei WANG

	 
	签字:/s/ Yaqin FU

	Signature: /s/ Wei WANG

	 
	Signature: /s/ Yaqin FU

23

 

 

附件 A 

Appendix A 

定义 

Definition 

        鉴于 2019年 8 月 8 日,WFOE 、目标公司和股东之间达成的独家管理咨询服务 协议,作为该协议的附件 A,以下术语按如下解释: 

         Whereas, WFOE, the Target Company and the Shareholders made and entered into an Exclusive Management Consultation Service Agreement as of (August 8th,2019), in which the terms shall be defined in this Appendix A of the Agreement as follows: 

        “附属公司”应指本协议一方,直接或间接,所有或控制,或共同所有或控制 的法律实体或自然人(就本协议而言,“所有”或“控制”是指直接或间接所有商业企业 超过百分之五十(50%)的带投票权股份,或通过享有任命商业企业董事会超过半数成员 的权利或在其享有任命董事会一半成员权利的董事会中拥有票数相等时的决定性投票权来 控制商业企业)。 

         “Affiliated Company” shall be referred to as any legal entity or natural person, directly or indirectly, owned or controlled, or collectively owned or controlled by a Party or Parties in this Agreement (for this Agreement, to “own” or “control” shall refer to directly or indirectly possession of over 50% of the voting stock shares of the commercial cooperation, or to control the commercial cooperation by possessing the right to appoint the majority members of the Board of Directors in such cooperation or by possessing the decisive voting right in the case of tie of votes in the Board of Directors where such Party have the right to appoint the majority members of such BOD).  

        “最大努力”是指一个勤勉、谨慎的人为确保尽其最快地实现某种特定结果的 而为之付出的努力。 

         “Greatest Effort” shall refer to the effort made by a diligent and prudent person to ensure to realize or achieve a certain target at the soonest.  

        “商业”的定义见前言。 

          “Business” shall be referred to as the definition in the RECITALS. 

24

 

         “商业合作协议”是指各方和/或其附属公司达成的以下协议:(a)于 2019

年8月8 日,WFOE、公司和股东之间达成的独家管理咨询服务协议;(b)于 2019年8月8日,WFOE 和股东之间达成的购买权协议;(c)于 2019年8月8日,

WFOE 与股东之间达成的股权质押协议;(d)于 2019年 8月 8 日,WFOE 和股东之间达成的委托协议。  

          “Business Cooperation Agreements” shall refer to the Agreements, made and entered into by all Parties and/or their affiliated company, as follows: (a) an Exclusive Management Service Agreement entered into, as of (August 8th, 2019), by the WFOE, the Company and shareholders; (b) a Shareholder  Call Option Agreement  entered into, as of (August 8th, 2019), by and between the WFOE and the shareholders; (c) a Stock Equity Pledge Agreement entered into, as of (August 8th, 2019), by and between the WFOE and shareholders; and (d) a _Proxy Agreement entered into, as of (August 8th, 2019), by and between the WFOE and the shareholders.  

        “公司银行账户”是指以 WFOE 的名义在任何银行或者其他金融机构中所持有或 开立的所有账户,无论这些账户是在协议达成时已存在或在协议后新设。 

         “Bank Accounts of the Company” shall refer to as all accounts held or opened in any bank or other financial institution in the name of (WFOE), whether such accounts have already been in existence before or are opened after this Agreement is made. 

        “同意”是指任何批准、同意、核准、许可、弃权或者授权,包括任何政府机 关授予或许可的任何前述方式。 

          “ Consent” refers to any approval, consent, agreement, permit, waiver or authorization, including any of such modes awarded or approved by government or governmental sectors. 

        “政府机关”是指国家或政府或任何省或州的下属任何政治分支机构;任何行 使行政、立法、司法权、管理或规划职能的政府或政府附属的实体、机关或团体,包括中 华人民共和国及其下属机构的政府部门机构、部门、机关、董事会、委员会和政府授权、 委托的组织;以及任何法院、法庭、仲裁组织和其他自治组织。 

          “Governmental Sectors” refers to any political  subordinate division of the country or government, or of any province or state; any government or government-affiliated entity, office or organization which exercises administrative power, legislative power, judicial power, management or programming power, including the People’s Republic of China and its any subordinate ministry, department, office, board of directors, committee   and 

25

 

any organization authorized or entrusted by government; and any court, arbitration organization and other autonomy organization. 

         “知识财产”是指专利、专利申请、商标(无论是否注册和是否涉及公开出 版)、商标申请、商业名称、传统商业名称、服务标志(无论是否注册)、服务标志申 请、著作权(无论是否注册)、著作权申请、掩模作品、掩模作品申请权、商业秘密、专 有技术、特许权、体系、计算机软件、发明、设计、设计蓝图、专有产品、专有权,以及 上述事项的改进,以及其他知识产权和无形财产。 

          “Intellectual Property” shall refer to patent, patent application, trademark (whether registered or not; or relating to publication or not), trademark application, brand name, traditional brand name,  service mark (whether registered or not), service mark application, copyright (whether registered or not), copyright application, mask work, mask work application right, trade secret, proprietary technology, concession, system, computer software, invention, design, design blue print, proprietary product, exclusive right, and the improvement of such items, and other intellectual property and intangible property.  

         “法律”是指以下文件中的相应条款:(a)宪法、条约、条例、法律(包括 普通法)、法典、法规、规章、条例或者任何有关政府机关的命令;(b)政府批准;

(c)政府机构的命令、决定、禁令、裁决、法令和协定。 

          “Laws” shall include any provisions of the documents as follows: (a) the constitution, treaties, regulations, laws (including common laws), codes, legislations, rules, statutes or any order by governmental sectors; (b) governmental approvals; (c) orders, determinations, prohibitions, adjudications, statutes or protocols of governmental sectors. 

         “法定要求”是指由政府机关所发布的、颁布的、采纳的、通过的、同意的、 公布的、制定的、适用的或者通过其他方式使之生效的任何由国家(或联邦)、省、州、 地方、城市、外国或者其他地方的宪法、法律、条例、立法文件、普通法的原则、决议、 条例、法典、法令、行政命令、文告、条约、公约、规则、规章、规定、指令、声明、要 求、规范、决定、决议、主张或者解释。 

         “Legal Requirements” refer to any national (or  federal), provincial, state, local, civic, foreign or other place’s constitution, law, regulation, legislative document, principle of common laws, resolution, legislation, code, statute, administrative order, proclamation, treaty, convention, rule, provision, instruction, statement, declaration, standard, determination,  claim  or  interpretation,  which  is  released, promulgated, 

26

 

adopted, approved, passed, declared, established, set forth, announced to be applicable, issued by governmental sectors or otherwise effective. 

        “优先权”是指抵押、保证、信贷、担保契约、他方权利、保护、抵押、担 保、所有权瑕疵、财产保留协议、租赁、转租、许可、占有协议、地役权、契约诉讼、处 置先行条件、侵占、参与信托协议的表决、优先购买选择权,参与并可以拒绝相关财产的 代理、留置和处置,以及其他类型的限制和约束,包括但不限于任何合同项下所形成的优 先权。 

         “Priority” refers to any pledge, guarantee, credit loan, hypothecation, right of other party, protection, mortgage, warranty, defect in title, property reservation agreement, lease, under lease,  approval, possession agreement, servitude, contract lawsuit, antecedent condition of disposal, disseizing, voting in entrustment agreement; priority of  purchase and option; right to participate and reject the property proxy, retention and disposal; and limitation and stipulation otherwise, including but not limited to any priority under any agreement or contract. 

        “管理服务”由第 1 条定义。 

         “Management Service” shall be referred to as the definition in the Paragraph 1. 

       “实质行为”是指附件 C 中所列的行为。 

         “Substantial or Material Act” shall refer to the acts or   actions in the Appendix C. 

        “净利润”是指由普遍接受的会计准则计算出来的公司净利润。 

          “Net Profit” shall be referred to as the net profit of (Company) calculated and reckoned under the generally accepted accounting principles.  

         “人”是指个人、公司、合作伙伴、协会、受托人、或者其他实体、组织,包 括政府或者政治性的分支部门、机关以及机构。 

          “Person” shall include individual person, corporation, partner, association, trustee or other entity or organization, including the government or political divisions, offices and institutions. 

         “合理的商业判断”是指基于诚信,经过合理的注意而做出的判断。 

27

 

           “Reasonable Business Judgment” shall be referred to  as the judgment for good faith made after reasonable attention. 

         “销售收入” 是指由普遍接受的会计准则计算出来的目标公司的销售收入。 

          “Sales Revenue” shall refer to the  sales  revenue  of Target Company calculated and reckoned under the generally accepted accounting principles. 

          “税收申报”是指任何现在、已经或将来需要申报或提交或要求提交给有关政 府机关,且与确定、评估、征收和缴纳税收有关或涉及依据税收的法定要求的管理、执 行、操作的申报(包括任何信息申报)、报告、陈述、声明、评估、时间表、注意、通 知、单据、选择、认证或其他文件和信息。 

          “Tax Return” shall refer to any declaration (including any information declaration), report, representation, announcement, assessment, timetable, notice, notification, receipt, option, certification or other document and information, already, currently or prospectively, required to be declared, submitted or required to be submitted to relevant governmental 

28

 

附件 B 

Appendix B 

管理服务 

Management Service 

      鉴于 2019 年 8 月8 日,WFOE 、目标公司和股东之间达成的独家管理咨询服务协 议,作为该协议的附件 B,“管理咨询服务”意为根据目标公司股东大会和/或董事会最 终监督和指导的涉及以下方面的咨询服务及其他相关服务: 

Whereas, the Exclusive Management Consultation Service Agreement  was made and entered into, as of August 8th , 2019), by the WFOE, the Target Company and the Shareholders. In this Appendix B of such Agreement, the term “management consultation service” shall be referred to as the consultation service and other relevant services relating to the follows, under the ultimate supervision and instruction by the Board of Shareholders and/or Board of Directors of the Target Company: 

(a)所有目标公司的日常经营,包括其与客户的关系、与其他方达成的协议和安排的 履约行为、以及对相关法律法规的遵守; 

      All of the daily operation of the Target Company, including the relationship with clients or customers, any performance of the agreement or arrangement made and entered into with other parties, and any relevant legal compliance; 

(b)所有目标公司的董事、高级管理人员(包括但不限于总经理、财务总监)、员 工、顾问、代理人和其他目标公司的代表人等各类目标公司的管理人员或员工的任命、雇 佣、报酬(包括任何红利、非货币补偿、附加和其他福利、以及基于股权的报酬)、解雇 和处罚; 

       The engagement, appointment, employment, compensation (including any dividend, non-monetary compensation, other welfare and compensation brought about from the stock equity), dismissal and penalty for all management and staff of the Target Company, such as directors, senior officers (including but not limited to general manager and chief financial officer), employees, consultants, agents and other representatives of the Target Company; 

(c)为目标公司的任何员工、顾问、代理人、代表人或其他人员利益的任何计划和安 排的制定、维持、终止或取消; 

29

 

       The formulation, maintenance, termination and cancellation of any plan and arrangement for the benefit of any staff, consultant,  agent, representative and other personnel of the Target Company; 

(d)关于目标公司所有应收账款、应付账款、资金和投资的管理、控制和授权; 

       The management, control and authorization of all of the accounts receivable, accounts payable, capital and investment of the Target Company; 

(e)公司银行账户的管理、控制和授权; 

      The management, control and authorization of the bank account of the Target Company; 

(f)目标公司的所有开支包括资本开支; 

      All of the expenses and expenditures of the Target Company, including capital expenses; 

(g)目标公司已是或将是一方的任何合同、协议或其他安排的缔结、修改或修正、以 及终止; 

      Any conclusion, amendment or modification and termination of any contract, agreement or other arrangement in which the Target Company has already been or may be a party; 

(h)目标公司获取、租赁或许可任何资产、供给、不动产或私人财产、或知识产权以 及无形资产; 

      Any acquisition, lease, or approval of any assets, supply, real  estate or private property, or intellectual property and intangible assets by the Target Company; 

(i)目标公司与其他人获取或进入任何合资企业或其他安排; 

      The acquisition or participation in any joint venture or any other arrangement by the Target Company with other person; 

(j)目标公司的任何借款,或承担任何性质的责任或义务或致使目标公司资产上设定 优先权的行为; 

      Any loans taken by the Target Company, or the assumption of any liability or obligation, or any action resulting in the priority to the assets of the Target Company; 

30

 

(k)任何目标公司所有、收益或控制的资产的销售、租赁、许可或其他处置; 

      Any sale, lease, approval or other disposal of any assets possessed, benefited from or controlled by the Target Company; 

(l)任何目标公司业务运行所必要执照、许可、和批复的申请、更新或保持有效的任 何措施; 

      Any measure to apply for, renew and maintain valid any license, approval and reply necessary for the operation of any Target Company; 

(m)目标公司对其与他人的诉讼或其他争议,所开始、实施或才取得协商、仲裁、诉 讼或上诉; 

      Any negotiation, arbitration, proceeding or  appeal commenced, implemented or obtained for the proceeding or dispute between the Target Company and other person; 

(n)目标公司的利润分红或其他利润分配的宣布或支付; 

      The announcement or payment of the dividend or other distribution of profit of the Target Company; 

(o)所有税收申报、缴税以及涉及税收的与任何政府机关的法律程序的准备或申请; 

      Any preparation of or application for all tax return, tax payment or any legal procedure of governmental sectors relating to taxes. 

31

 

附件 C 

Appendix C 

实质行为 

Substantial or Material Actions 

        鉴于 2019 年 8 月 8 日,WFOE 、目标公司和股东之间达成的独家管理咨询服务 协议,作为该协议的附件 C,“实质行为”意为以下任一解释: 

        Whereas, the Exclusive Management Consultation Service Agreement was made and entered into, as of (August 8th , 2018), by the WFOE, the Target Company and the Shareholders. In this Appendix C of this Agreement, the term “Substantial or Material Actions” shall be referred to as the actions as follows: 

(a)目标公司的组织文件或章程文件的任何改动; 

       Any modification or amendment to the documents of association or articles of incorporation or bylaws of the Target Company; 

(b)目标公司的任何新股份发行,包括任何可转换为目标公司股权的债券、或目标公 司接受任何股权投资、或重购或赎回目标公司的任何股权; 

  The issuance of new stocks of the Target Company, including any convertible notes which can be converted into the stock equity of the Target Company, or the Target Company’s acceptance of any equity investment, or the repurchase or redemption of any of the Target Company’s equity; 

(c)任何雇佣、解雇或处罚任何目标公司的管理人员或董事; 

   Any employment, dismissal or penalty for or to any management or director in the Target Company; 

(d)目标公司购置任何重要资产; 

   The purchase of any important and essential asset of the Target Company; (e)目标公司对任何重要资产包括但不限于任何目标公司重要知识产权的销售、转

让、许可或设定担保; 

32

 

   Any sale, transfer, approval or enactment of warranty of or to any important and essential asset of the Target Company, including but not limited to any of the important intellectual property of such Target Company; 

(f)目标公司已是或将是一方的协议、合同或其他安排的缔结、修改、补充或其他改 变,若该协议、合同或其他安排单独或总合的价值或影响目标公司超过 3,000,000 人民 币; 

  Any conclusion, amendment, supplementation or other modification to any agreement, contract or other arrangement in which the Target Company has been or may be a party, if the respective or total value or the influence to the Target Company of such agreement, contract or other arrangement exceeds 3,000,000 RMB; 

(g)致使对第三方负担债务或类似义务,或目标公司的资产被设定任何优先权利; 

   Any action resulting in any liability to the third party assumed by the Target Company, or similar obligation, or in any priority set to the assets of the Target Company; 

(h)以一次或一系列的交易,投资、设立或其他方式创设任何附属公司或合资企业、 或购置或以其他方式购买其他实体或商业机构的任何股票或股权权益,或处置任何上述事 项; 

   Any incorporation or establishment of any affiliated company or joint venture in one or a series of transaction, investment, establishment or otherwise, or any purchase or acquisition in otherwise of any stock or stock equity of other entity or commercial institution, or any disposal,  treatment or settlement of such action; 

(i)任何目标公司管理人员、顾问或其他代表人的报酬变化; 

   Any change or alteration of the compensation of the management, consultant or other representatives in the Target Company;  

(j)目标公司的任何正常商业交易之外的交易、行为或协议; 

   Any transaction, action or agreement other than any ordinary or normal commercial transaction of the Target Company; 

(k)任何目标公司与其任何股东的任何交易、合同或协议; 

33

 

   Any transaction, contract or agreement between the Target Company  and any of its shareholders; 

(l)宣布或对资本股份支付红利或进行任何分配,除非该行为符合界定任何该资本股 份或债券权利的文书的规定; 

  The announcement or distribution of any dividend brought about from the capital stock, unless such actions go in accordance with any regulation to the right of such capital stock or bonds; 

(m)涉及目标公司的任何诉讼或仲裁的提起和解决; 

   Any initiation and settlement of any proceeding or arbitration in which the Target Company is involved; 

(n)批准目标公司的年度预算和将来数年商业计划; 

   Any approval to the annual budget and business plan for future years of the Target Company; 

(o)批准目标公司准备提交给税务机关的目标公司年度调整财务报表和税收申报的最 终审计; 

   Any approval of the final audit of the annual financial statement adjustment and tax return of the Target Company which are prepared to  submit to the tax bureau by the Target Company; 

(p)任何目标公司的会计或税收政策的重大变化或目标公司独立审计方的变化;以及 

   Any material change or alteration in the  accounting  or taxation policies of the Target Company, or in the independent auditor of the Target Company; and 

(q)公司董事数量的任何变化,因本协议任何其他规定的运行所导致的变化除外。 

   Any change or alteration in the quantity of the directors of the Target Company, except for the change or alteration resulted from the performance of any other provision in this Agreement. 

34nrz-2020630xexhibit1057

                                                                  Exhibit 10.57                                                             EXECUTION VERSION    Certain identified information marked with “[***]” has been omitted from this document  because it is both (i) not material and (ii) would be competitively harmful if publicly  disclosed.                                                                                                                                                                             SENIOR SECURED TERM LOAN FACILITY AGREEMENT                                                                      dated as of May 19, 2020                                                                              among                                                            NEW RESIDENTIAL INVESTMENT CORP.,                            as Parent and the Borrower,                                                                               and                                               CERTAIN SUBSIDIARIES OF NEW RESIDENTIAL INVESTMENT CORP.,                             as Subsidiary Guarantors,                                                                  THE LENDERS PARTY HERETO                                                                               and                                                         CORTLAND CAPITAL MARKET SERVICES LLC,                     as Administrative Agent and Collateral Agent          _____________________________________________________________                                                            $600,000,000 Senior Secured Term Loan Facility          _____________________________________________________________                                                                                     

 

                                  Table of Contents                                                                             Page                                       ARTICLE I                                                                DEFINITIONS AND INTERPRETATION   Section 1.1 Definitions................................................................................................................1  Section 1.2 Accounting Terms ..................................................................................................37  Section 1.3 Interpretation, Etc ..................................................................................................37  Section 1.4 Timing of Payment or Performance .......................................................................38                                    ARTICLE II                                                                           THE FACILITY   Section 2.1 Term Loan Facility ................................................................................................38  Section 2.2 Pro Rata Shares; Availability of Funds ..................................................................40  Section 2.3 Use of Proceeds ......................................................................................................41  Section 2.4 Evidence of Debt; Register; Lenders’ Books and Records; Notes ........................41  Section 2.5 Interest....................................................................................................................42  Section 2.6 Exercise of Warrants ..............................................................................................42  Section 2.7 Default Interest.......................................................................................................42  Section 2.8 Payments ................................................................................................................42  Section 2.9 Voluntary Prepayments ..........................................................................................43  Section 2.10 Mandatory Prepayment ..........................................................................................43  Section 2.11 Application of Prepayments ...................................................................................45  Section 2.12 General Provisions Regarding Payments ...............................................................46  Section 2.13 Ratable Sharing ......................................................................................................47  Section 2.14 [Reserved] ..............................................................................................................48  Section 2.15 Increased Costs; Capital Adequacy; Liquidity ......................................................48  Section 2.16 Taxes; Withholding, Etc ........................................................................................49  Section 2.17 Obligation to Mitigate ............................................................................................53  Section 2.18 [Reserved] ..............................................................................................................54  Section 2.19 Removal or Replacement of Lender ......................................................................54  Section 2.20 Incremental Facilities .............................................................................................54                                    ARTICLE III                                                                     CONDITIONS PRECEDENT   Section 3.1 Conditions Precedent to Effective Date .................................................................57                                              

 

                                    ARTICLE IV                                                               REPRESENTATIONS AND WARRANTIES   Section 4.1 Organization and Qualification ..............................................................................59  Section 4.2 Corporate Authorization ........................................................................................59  Section 4.3 Equity Interests and Ownership .............................................................................59  Section 4.4 No Conflict.............................................................................................................59  Section 4.5 Governmental Consents .........................................................................................60  Section 4.6 Binding Obligation .................................................................................................60  Section 4.7 Financial Statements ..............................................................................................60  Section 4.8 No Material Adverse Change.................................................................................60  Section 4.9 Tax Returns and Payments .....................................................................................61  Section 4.10 Environmental Matters...........................................................................................61  Section 4.11 Governmental Regulation ......................................................................................61  Section 4.12 Employee Matters ..................................................................................................61  Section 4.13 ERISA ....................................................................................................................62  Section 4.14 Margin Stock ..........................................................................................................62  Section 4.15 Solvency .................................................................................................................62  Section 4.16 Disclosure ..............................................................................................................62  Section 4.17 Sanctions; PATRIOT Act; Anti-Corruption ..........................................................63  Section 4.18 Security Documents ...............................................................................................63  Section 4.19 Adverse Proceedings; Compliance with Law ........................................................63  Section 4.20 Properties ...............................................................................................................64  Section 4.21 Use of Proceeds. .....................................................................................................64  Section 4.22 EEA Financial Institution ......................................................................................64  Section 4.23 Beneficial Ownership Certificate ...........................................................................64                                    ARTICLE V                                                                    AFFIRMATIVE COVENANTS   Section 5.1 Financial Statements and Other Reports ................................................................64  Section 5.2 Existence ................................................................................................................68  Section 5.3 Payment of Taxes ...................................................................................................68  Section 5.4 Insurance ................................................................................................................68  Section 5.5 Books and Records; Inspections ............................................................................68  Section 5.6 Conference Calls ....................................................................................................69  Section 5.7 Compliance with Laws ..........................................................................................69  Section 5.8 Environmental ........................................................................................................69  Section 5.9 Additional Subsidiary Guarantors..........................................................................69  Section 5.10 Further Assurances.................................................................................................70  Section 5.11 Maintenance of Properties .....................................................................................70  Section 5.12 AML; Sanctions .....................................................................................................71  Section 5.13 Post-Closing Covenant...........................................................................................71                                          ii   

 

                                    ARTICLE VI                                                                      NEGATIVE COVENANTS   Section 6.1 Indebtedness ...........................................................................................................71  Section 6.2 Liens .......................................................................................................................74  Section 6.3 No Further Negative Pledges .................................................................................74  Section 6.4 Limitations on Prepayment of, and Modifications to, Unsecured or              Subordinated Indebtedness ....................................................................................75  Section 6.5 Dividends ...............................................................................................................75  Section 6.6 Investments ............................................................................................................77  Section 6.7 Financial Covenants ...............................................................................................79  Section 6.8 Fundamental Changes ............................................................................................80  Section 6.9 Transactions with Affiliates ...................................................................................81  Section 6.10 Intermediate Entities ..............................................................................................82  Section 6.11 Conduct of Business ..............................................................................................82  Section 6.12 No Change to Organizational Documents .............................................................82  Section 6.13 Use of Proceeds ......................................................................................................82  Section 6.14 Negative Pledge .....................................................................................................82  Section 6.15 Unencumbered Asset Equity Pledge Subsidiaries .................................................83                                    ARTICLE VII                                                                            GUARANTY   Section 7.1 Guaranty of the Obligations ...................................................................................84  Section 7.2 Contribution by Subsidiary Guarantors .................................................................84  Section 7.3 Payment by Subsidiary Guarantors ........................................................................85  Section 7.4 Liability of Subsidiary Guarantors Absolute .........................................................85  Section 7.5 Waivers by Subsidiary Guarantors ........................................................................87  Section 7.6 Subsidiary Guarantors’ Rights of Subrogation, Contribution, Etc ........................88  Section 7.7 Subordination of Other Obligations .......................................................................88  Section 7.8 Continuing Guaranty ..............................................................................................89  Section 7.9 Authority of Subsidiary Guarantors or Parent .......................................................89  Section 7.10 Financial Condition of Parent ................................................................................89  Section 7.11 Bankruptcy, Etc ......................................................................................................89  Section 7.12 Discharge of Guaranty Upon Sale of any Subsidiary Guarantor ...........................90                                   ARTICLE VIII                                                                       EVENTS OF DEFAULT   Section 8.1 Events of Default ...................................................................................................90  Section 8.2 Right to Cure ..........................................................................................................93                                          iii   

 

                                    ARTICLE IX                                                                              AGENTS   Section 9.1 Appointment of Agents ..........................................................................................94  Section 9.2 Powers and Duties..................................................................................................94  Section 9.3 General Immunity ..................................................................................................95  Section 9.4 Agents Entitled to Act as Lender ...........................................................................96  Section 9.5 Lenders’ Representations, Warranties and Acknowledgment ...............................97  Section 9.6 Indemnity ...............................................................................................................97  Section 9.7 Successor Administrative Agent and Collateral Agent .........................................97  Section 9.8 Security Documents and Guaranty ........................................................................98  Section 9.9 Withholding Taxes ...............................................................................................100  Section 9.10 Administrative Agent May File Proofs of Claim .................................................100                                    ARTICLE X                                MISCELLANEOUS   Section 10.1 Notices .................................................................................................................100  Section 10.2 Expenses ..............................................................................................................101  Section 10.3 Indemnity .............................................................................................................102  Section 10.4 Set-Off..................................................................................................................102  Section 10.5 Amendments and Waivers ...................................................................................103  Section 10.6 Successors and Assigns; Participations ...............................................................106  Section 10.7 Survival of Representations, Warranties and Agreements ..................................111  Section 10.8 No Waiver; Remedies Cumulative ......................................................................111  Section 10.9 Marshalling; Payments Set Aside ........................................................................111  Section 10.10 Severability ..........................................................................................................112  Section 10.11 Obligations Several; Independent Nature of Lenders’ Rights .............................112  Section 10.12 Headings ..............................................................................................................112  Section 10.13 APPLICABLE LAW ...........................................................................................112  Section 10.14 CONSENT TO JURISDICTION .........................................................................112  Section 10.15 Confidentiality .....................................................................................................113  Section 10.16 Usury Savings Clause ..........................................................................................115  Section 10.17 Counterparts .........................................................................................................115  Section 10.18 Effectiveness; Entire Agreement; No Third Party Beneficiaries .........................115  Section 10.19 PATRIOT Act ......................................................................................................116  Section 10.20 Electronic Execution of Loan Documents ...........................................................116  Section 10.21 No Fiduciary Duty ...............................................................................................116  Section 10.22 WAIVER OF JURY TRIAL ................................................................................116  Section 10.23 Acknowledgement and Consent to Bail-In of Affected Financial              Institutions............................................................................................................117                                          iv   

 

                                             SCHEDULES:  1.1(a)      Effective Date Term Loan Commitments and Second Draw Term Loan              Commitments  1.1(b) Principal Office  1.1(c)      Servicing Advance Entities  1.1(d) Subsidiary Guarantors  1.1(e) Restricted Subsidiaries   1.1(f)      Unencumbered Asset (Long Term) Equity Pledge Subsidiaries  1.1(g)      Unencumbered Asset (Short Term) Equity Pledge Subsidiaries  1.1(h) Operating Reserves  4.1        Organization and Qualification  4.3         Equity Interests and Ownership  6.1 Certain Indebtedness  6.2 Certain Liens  10.1(a) Notice Addresses   EXHIBITS:  A Borrowing Notice  B Note  C Compliance Certificate  D-1 Assignment Agreement  D-2         Affiliated Lender Assignment Agreement  D-3         Notice of Affiliate Assignment  E-1-4      U.S. Tax Compliance Certificates  F-1         Effective Date Certificate  F-2 Solvency Certificate  G Counterpart Agreement  H Joinder Agreement                                              v   

 

                SENIOR SECURED TERM LOAN FACILITY AGREEMENT         This SENIOR SECURED TERM LOAN FACILITY AGREEMENT, dated as of  May 19, 2020, is entered into by and among NEW RESIDENTIAL INVESTMENT CORP., a  Delaware corporation (“Parent”), CERTAIN SUBSIDIARIES OF NEW RESIDENTIAL  INVESTMENT CORP., as Subsidiary Guarantors, THE LENDERS PARTY HERETO  FROM TIME TO TIME and CORTLAND CAPITAL MARKET SERVICES LLC  (“Cortland”), as Administrative Agent (together with its permitted successors in such capacity,  the “Administrative Agent”) and as Collateral Agent (together with its permitted successors in  such capacity, the “Collateral Agent”).                                   WITNESSETH:         WHEREAS, Parent has requested the Lenders extend credit in the form of term loans on  the Effective Date or the Second Draw Date, as applicable, in an aggregate principal amount not  in excess of $600,000,000.         WHEREAS, the Lenders are willing to extend such credit to Parent on the terms and  subject to the conditions set forth herein.         WHEREAS, the proceeds of the Loans extended by the Lenders hereunder on the  Effective Date or the Second Draw Date, as applicable, are to be used in accordance with Section  2.3.         NOW, THEREFORE, in consideration of the premises and the agreements, provisions  and covenants herein contained, the parties hereto agree as follows:                                     ARTICLE I                                                                DEFINITIONS AND INTERPRETATION          Section 1.1 Definitions. The following terms used herein, including in the preamble,   recitals, exhibits and schedules hereto, shall have the following meanings:          “ACH” has the meaning specified in the definition of Cash Management Obligations.          “Administrative Agent” has the meaning specified in the preamble hereto.          “Adverse Proceeding” means any action, suit, demand, claim, proceeding, hearing (in   each case, whether administrative, judicial (civil or criminal) or otherwise), governmental  investigation or arbitration (whether or not purportedly on behalf of Parent or any Restricted  Subsidiary) at law or in equity, or before or by any Governmental Authority, domestic or foreign,  whether pending or, to the knowledge of Parent, threatened against or affecting Parent or any  Restricted Subsidiary or any property of Parent or any Restricted Subsidiary.         “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK  Financial Institution.                                               

 

           “Affiliate” means, as applied to any Person, any other Person directly or indirectly  controlling, controlled by, or under common control with, that Person. For the purposes of this  definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled  by” and “under common control with”), as applied to any Person, means the possession, directly  or indirectly, of the power to direct or cause the direction of the management or policies of that  Person, whether through the ability to exercise voting power, by contract or otherwise; provided   that, with respect to Parent and its Subsidiaries, the term “Affiliate” shall be deemed to include   Fortress Investment Group LLC and its Control Investment Affiliates (other than Debt Fund  Affiliates); provided, further, that no Canyon Lender nor any of its Subsidiaries or Affiliates   shall be deemed to be Affiliates of Parent or any of its Subsidiaries under this Agreement or the   other Loan Documents.          “Affiliated Lender” means, at any time, any Lender that is any Affiliate of Parent, other   than any Debt Fund Affiliate.          “Affiliated Lender Assignment Agreement” means an Assignment and Assumption   Agreement for an Affiliated Lender substantially in the form of Exhibit D-2, with such   amendments or modifications as may be approved by the Administrative Agent in its reasonable   discretion.          “Affiliated Lender Cap” has the meaning specified in Section 10.6(h)(iv).          “Agent” means each of the Administrative Agent and the Collateral Agent.          “Agent Fee Letter” means that certain fee letter, dated as of May 19, 2020, by and   between Parent and the Administrative Agent          “Aggregate Amounts Due” has the meaning specified in Section 2.13.          “Aggregate Payments” has the meaning specified in Section 7.2.          “Agreement” means this Senior Secured Term Loan Facility Agreement, dated as of   May 19, 2020, as it may be amended, restated, supplemented or otherwise modified from time to   time in accordance with the terms hereof.          “Allocation” has the meaning specified in Section 2.16(i).          “Anti-Bribery and Anti-Corruption Laws” means applicable laws and regulations   addressing prohibitions against improper payments and bribery of officers, directors, employees,   agents and affiliates of Governmental Authorities or commercial parties, particularly local laws   in effect in the applicable jurisdiction, including, without limitation, Corrupt Practices Laws.          “Anti-Terrorism and Money Laundering Laws” means applicable laws and   regulations, including, but not limited to, the PATRIOT Act, (a) prohibiting transactions with   Persons who (i) commit, threaten to commit, or support terrorism, and/or (ii) participate in   monetary transactions in property derived from specified unlawful activity, or (b) otherwise   relating to prohibitions in connection with the illegal laundering of the proceeds of any criminal   activity and preventing the funds, proceeds and revenue of Parent, any other Loan Party and their                                          2    

 

     respective Affiliates from being used in connection with the advancement of criminal activity,  including, without limitation, the PATRIOT Act and “know your customer” rules.          “Anticipated Cure Deadline” has the meaning specified in Section 8.2(a).         “ASC” has the meaning specified in the definition of Core Earnings.         “Assignment Agreement” means an Assignment and Assumption Agreement  substantially in the form of Exhibit D-1, with such amendments or modifications as may be   approved by the Administrative Agent in its reasonable discretion, or, if applicable, an Affiliated   Lender Assignment Agreement.          “Assignment Effective Date” has the meaning specified in Section 2.4(b).          “Authorized Officer” means, as applied to any Person, any individual holding the   position of chairman of the board (if an officer), chief executive officer, president, chief financial   officer or treasurer.          “Available Excess Cash” means, as of the last day of each month, the amount by which   (i) the Cash and Cash Equivalents of Parent and its wholly owned Subsidiaries as of the end of   such month exceeds (ii) the operating reserves with respect to such month, calculated as set forth   on Schedule 1.1(h) (subject to adjustment pursuant to Section 2.10(c)), as reflected in the   relevant Compliance Certificate.          “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the   applicable Resolution Authority in respect of any liability of an Affected Financial Institution.          “Bail-In Legislation” means (a) with respect to any EEA Member Country   implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council   of the European Union, the implementing law, regulation rule or requirement for such EEA   Member Country from time to time which is described in the EU Bail-In Legislation Schedule   and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as   amended from time to time) and any other law, regulation or rule applicable in the United   Kingdom relating to the resolution of unsound or failing banks, investment firms or other   financial institutions or their affiliates (other than through liquidation, administration or other   insolvency proceedings).          “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as   now and hereafter in effect, or any successor statute and all of the rules and regulations issued or   promulgated in connection therewith.          “Beneficial Ownership Certification” shall mean a certification regarding beneficial   ownership as required by the Beneficial Ownership Regulation.          “Beneficial Ownership Regulation” shall mean 31 C.F.R. § 1010.230.          “Beneficiary” means each Agent and each Lender.                                          3    

 

           “Big Boy Letter” means a letter from a Lender acknowledging that (a) an Affiliated   Lender may have information regarding Parent and its Subsidiaries or Parent and its  Subsidiaries’ ability to perform the Obligations, or any other material information that has not  previously been disclosed to the Agents and the Lenders (“Excluded Information”), (b) the  Excluded Information may not be available to such Lender, (c) such Lender has independently  and without reliance on any other party made its own analysis and determined to assign Loans to  an Affiliated Lender pursuant to Section 10.6(h) notwithstanding its lack of knowledge of the   Excluded Information and (d) such Lender waives and releases any claims it may have against   the Agents, such Affiliated Lender, Parent and its Subsidiaries with respect to the nondisclosure   of the Excluded Information; or otherwise in form and substance reasonably satisfactory to such   Affiliated Lender and assigning Lender.          “Board of Governors” means the Board of Governors of the United States Federal   Reserve System, or any successor thereto.          “Borrower Materials” has the meaning specified in Section 10.15(b).         “Borrowing” means a borrowing consisting of the same Class of Loans.         “Borrowing Notice” means a written notice executed by an Authorized Officer of Parent  substantially in the form of Exhibit A.          “Business Day” means any day excluding Saturday, Sunday and any day which is a legal   holiday under the laws of the State of New York or is a day on which banking institutions   located in such state are authorized or required by law or other governmental action to close.          “Canyon Lender” means any Lender that is an affiliate or Subsidiary of, or managed by,   Canyon Partners, LLC or an affiliate thereof.          “Capitalized Lease Obligation” means, as to any Person, the obligations of such Person   under a lease that are required to be classified and accounted for as capital lease obligations   under GAAP and, for purposes of this definition, the amount of such obligations at any date shall   be the capitalized amount of such obligations at such date, determined in accordance with   GAAP.          “Cash” means money, currency or a credit balance on hand or in any demand or Deposit   Account.          “Cash Equivalents” means, as at any date of determination, any of the following: (i)   securities with maturities of one year or less from the date of acquisition issued or fully   guaranteed or insured by the United States Government or any agency thereof; (ii) certificates of   deposit and eurodollar time deposits with maturities of 90 days or less from the date of   acquisition and overnight bank deposits of any commercial bank having capital and surplus in   excess of $500,000,000; (iii) repurchase obligations of any commercial bank satisfying the   requirements of clause (ii) of this definition, having a term of not more than seven days with   respect to securities issued or fully guaranteed or insured by the United States Government; (iv)   commercial paper of a domestic issuer rated at least A-1 or the equivalent thereof by Standard   and Poor’s Ratings Group (“S&P”) or P-1 or the equivalent thereof by Moody’s Investors                                          4    

 

     Service, Inc. (“Moody’s”) and in either case maturing within 90 days after the day of  acquisition; (v) securities with maturities of 90 days or less from the date of acquisition issued or  fully guaranteed by any state, commonwealth or territory of the United States, by any political   subdivision or taxing authority of any such state, commonwealth or territory or by any foreign   government, the securities of which state, commonwealth, territory, political subdivision, taxing   authority or foreign government (as the case may be) are rated at least A by S&P or A by   Moody’s; (vi) securities with maturities of 90 days or less from the date of acquisition backed by   standby letters of credit issued by any commercial bank satisfying the requirements of clause (b)   of this definition; or (vii) shares of money market mutual or similar funds which invest   exclusively in assets satisfying the requirements of clauses (i) through (vi) of this definition.          “Cash Liquidity” means, as at any date of determination, the aggregate amount of   unrestricted Cash and Cash Equivalents of Parent and its Subsidiaries as of such determination   date and calculated on a consolidated basis in accordance with GAAP.          “Cash Management Obligations” means obligations of Parent or any Restricted   Subsidiary in relation to (i) treasury, depository or cash management services, arrangements or   agreements (including, without limitation, credit, debt or other purchase card programs and   intercompany cash management services) or any automated clearinghouse (“ACH”) transfers of   funds (including reimbursement and indemnification obligations with respect to letters of credit   or similar instruments), and (ii) netting services, overdraft protections, controlled disbursement,   ACH transactions, return items, interstate deposit network services, supplier services, cash   pooling and operational foreign exchange management, Society for Worldwide Interbank   Financial Telecommunication transfers and similar programs.          “Change in Law” means the occurrence, after the Effective Date (or with respect to any   Lender, if later, the date on which such Lender becomes a Lender), of any of the following: (a)   the adoption or taking effect of any law, rule, regulation or treaty; (b) any change in any law,   rule, regulation or treaty or in the administration, interpretation or application thereof by any  Governmental Authority; or (c) the making or issuance of any request, rules, guideline,  requirement or directive (whether or not having the force of law) by any Governmental  Authority; provided, however, that notwithstanding anything herein to the contrary, (i) the Dodd-  Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines,  requirements and directives thereunder, issued in connection therewith or in implementation   thereof, and (ii) all requests, rules, guidelines, requirements and directives promulgated by the   Bank for International Settlements, the Basel Committee on Banking Supervision (or any   successor or similar authority) or the United States or foreign regulatory authorities, in each case   pursuant to Basel III, shall in each case be deemed a “Change in Law” regardless of the date   enacted, adopted, issued or implemented.          “Change of Control” means any Person or “group” (within the meaning of Rules 13d-3   and 13d-5 under the Exchange Act) other than Permitted Holders shall have acquired beneficial   ownership or control of 40% or more on a fully diluted basis of the voting and/or economic   interest in the Equity Interests of Parent.          “Class” means (i) with respect to Lenders, each of the following classes of Lenders: (a)   Lenders having Effective Date Term Loan Exposure, (b) Lenders having Second Draw Term                                          5    

 

   Loan Exposure and (c) Lenders having New Term Loan Exposure of each applicable Series and  (ii) with respect to Loans, each of the following classes of Loans: (a) Effective Date Term Loans,  (b) Second Draw Term Loans and (c) each Series of New Term Loans.         “Collateral” means, collectively, all of the property in which Liens are purported to be  granted pursuant to the Security Documents as security for the Obligations.         “Collateral Agent” has the meaning specified in the preamble hereto.         “Commitment” means the Effective Date Term Loan Commitment, the Second Draw  Term Loan Commitment or the New Term Loan Commitment of a Lender and “Commitments”  means such commitments of all Lenders.         “Commodity Agreement” means any commodity futures contract, commodity swap,  commodity option or other similar agreement or arrangement designed to protect against  fluctuations in the price of commodities or to otherwise manage commodity prices or the risk of  fluctuations in commodity prices.         “Compliance Certificate” means a Compliance Certificate substantially in the form of  Exhibit C, which provides detailed calculations of compliance by Parent with the financial  covenants set forth in Section 6.7 and Available Excess Cash for the relevant period.          “Consolidated” means, when used with reference to financial statements or financial  statement items of any Person, such statements or items on a consolidated basis in accordance  with, except as otherwise set forth herein, applicable principles of consolidation under GAAP.         “Contractual Obligation” means, as applied to any Person, any provision of any  Security issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking,  agreement or other instrument to which that Person is a party or by which it or any of its  properties is bound or to which it or any of its properties is subject.         “Contributing Guarantors” has the meaning specified in Section 7.2.         “Control Investment Affiliate” means, as applied to any Person, any other Person (a)  directly or indirectly controlling, controlled by, or under common control with, that Person and  (b) that exists primarily for the purpose of making equity or debt investments in one or more  companies.  For the purposes of this definition, “control” (including, with correlative meanings,  the terms “controlling,” “controlled by” and “under common control with”), as applied to any  Person, means the possession, directly or indirectly, of the power to direct or cause the direction  of the management or policies of that Person, whether through the ability to exercise voting  power, by contract or otherwise.         “Convertible Notes” means debt securities, the terms of which provide for conversion  into, or exchangeable for, Equity Interests of Parent, cash in lieu thereof and/or a combination of  Equity Interests and cash in lieu thereof.         “Core Earnings” means, for any period, the net income (or loss) of Parent and its  Subsidiaries on a Consolidated basis for such period, as adjusted to (a) exclude (i) all                                         6   

 

     impairments and all realized and unrealized gains or losses (including impairment on   unconsolidated investments), (ii) reserves for expected credit losses required under ASU No.   2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on   Financial Instruments, (iii) non-capitalized transaction-related expenses, (iv) incentive   compensation paid to the Manager, (v) deferred taxes, (vi) amortization of intangibles and (vii)   accreted interest income on residential mortgage-backed securities where Parent and its   Subsidiaries receive par upon the exercise of associated call rights based on the estimated value   of the underlying collateral, net of related costs including advance payments, (b) include   (i) accretion on held-for-sale loans and held-for-investment loans accounted for under the fair   value option, as if they continued to be held-for investment, (ii) impairment on tangible assets   and (iii) realized and unrealized gains or losses included in the servicing and origination   segments, and (c) adjust consumer loans accounted for under fair value option, FASB   Accounting Standards Codification (“ASC”) Nos. 310-20 and 310-30, to a level yield.          “Corrupt Practices Laws” means (i) the United States Foreign Corrupt Practices Act of   1977 (Pub. L. No. 95 213, §§101 104), as amended, (ii) the UK Bribery Act 2010, and (iii) any   other anti-corruption laws applicable to Parent and its Subsidiaries and the conduct of their   business.          “Cortland” has the meaning specified in the preamble hereto.          “Counterpart Agreement” means a Counterpart Agreement substantially in the form of   Exhibit G delivered by a Loan Party pursuant to Section 5.9, with such amendments or   modifications as may be approved by the Administrative Agent in its reasonable discretion.          “Credit Enhancement Agreements” means, collectively, any documents, instruments,   guarantees or agreements entered into by Parent, any of its Subsidiaries or any Securitization  Entity for the purpose of providing credit support (in a manner that is consistent with market  practice and a form that is reasonably customary, in each case as determined in good faith by  Parent) with respect to any Permitted Funding Indebtedness or Permitted Securitization  Indebtedness.         “Cure Amount” has the meaning specified in Section 8.2(a).         “Cure Right” has the meaning specified in Section 8.2(a).         “Currency Agreement” means any foreign exchange contract, currency swap agreement  or other agreement or arrangement designed to protect against fluctuations in currency values or  otherwise manage currency exchange rates or currency exchange rate risk.         “Debt Fund Affiliate” means, with respect to any Person, a bona fide debt fund that is an   Affiliate of such Person and that is primarily engaged in, or advises fund or other investment   vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial   loans, notes, bonds and similar extensions of credit or securities in the ordinary course of its   business, whose managers have fiduciary duties to the investors independent of their duties to   such Person or other Affiliates, and with respect to which such Person and its other Affiliates do   not, directly or indirectly, possess the power to direct or cause the direction of the investment   policies of such entity.                                         7    

 

         “Default” means a condition or event described in Section 8.1 that, after notice or lapse  of time or both, would unless cured or waived constitute an Event of Default.         “Default Rate” has the meaning specified in Section 2.7.         “Deposit Account” means a demand, time, savings, passbook or like account with a  bank, savings and loan association, credit union or like organization, other than an account  evidenced by a negotiable certificate of deposit.         “Designated Jurisdiction” means any country or territory, to the extent that such country  or territory itself is the subject of any comprehensive Sanctions (at the time of this Agreement,  Cuba, Iran, North Korea, Syria, and the Crimea region).         “Disposition” has the meaning specified in Section 6.8.         “Disqualified Equity Interests” means any Equity Interest which, by its terms (or by the  terms of any security or other Equity Interests into which it is convertible or for which it is  exchangeable), or upon the happening of any event or condition (i) matures (excluding any  maturity as the result of an optional redemption by the issuer thereof) or is mandatorily  redeemable (other than for Qualified Equity Interests), pursuant to a sinking fund obligation or  otherwise, (ii) is redeemable at the option of the holder thereof (other than for Qualified Equity  Interests), in whole or in part, (iii) provides for scheduled payments or dividends in cash or (iv)  is or becomes convertible into or exchangeable (unless at the sole option of the issuer thereof) for  Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in  each case, prior to the date that is 91 days after the latest Maturity Date at the time such Equity  Interests are issued; provided that any Equity Interest which, by its terms, provides for dividends  in cash to be payable prior to the date that is 91 days after the latest Maturity Date at the time  such Equity Interests are issued solely to the extent that such payment is not prohibited by  Section 6.5 of this Agreement shall not be a Disqualified Equity Interest.         “Dividend” means, with respect to any Person, that such Person has, directly or  indirectly, declared or paid a dividend, distribution or returned any other amount with respect to  any Equity Interests to its stockholders, shareholders, partners or members or authorized or made  any other distribution, payment or delivery of property, cash or other assets to its stockholders,  shareholders, partners or members in their capacity as such, or redeemed, retired, purchased or  otherwise acquired or terminated or cancelled, directly or indirectly, for a consideration (whether  in cash, securities or other property) any shares of any class of its capital stock or any other  Equity Interests outstanding on or after the Effective Date (or any options or warrants issued by  such Person with respect to its capital stock or other Equity Interests).         “Dollars” and the sign “$” mean the lawful money of the United States of America.         “EEA Financial Institution” means (a) any credit institution or investment firm  established in any EEA Member Country which is subject to the supervision of an EEA  Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of  an institution described in clause (a) of this definition, or (c) any financial institution established  in an EEA Member Country which is a subsidiary of an institution described in clause (a) or (b)  of this definition and is subject to consolidated supervision with its parent.                                        8   

 

           “EEA Member Country” means any of the member states of the European Union,   Iceland, Liechtenstein and Norway.          “EEA Resolution Authority” means any public administrative authority or any person   entrusted with public administrative authority of any EEA Member Country (including any   delegee) having responsibility for the resolution of any EEA Financial Institution.          “Effective Date” means the date on which the conditions specified in Section 3.1 are   satisfied (or waived in accordance with Section 10.5), which date is anticipated to be May 20,   2020.          “Effective Date Certificate” means a certificate substantially in the form of Exhibit F-1.          “Effective Date Term Loan Commitment” means the commitment of a Lender to make   or otherwise fund an Effective Date Term Loan and “Effective Date Term Loan Commitments”   means such commitments of all Lenders in the aggregate. The amount of each Lender’s Effective   Date Term Loan Commitment, if any, is set forth on Schedule 1.1(a) under the column   “Effective Date Term Loan Commitment” or in the applicable Assignment Agreement, subject to   any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount   of the Effective Date Term Loan Commitments as of the Effective Date is $310,000,000.          “Effective Date Term Loan Exposure” means, with respect to any Lender, as of any   date of determination, the outstanding principal amount of the Effective Date Term Loan  Commitment or, after the funding thereof, the Effective Date Term Loans of such Lender.         “Effective Date Term Loans” means the term loans made by the Lenders on the  Effective Date to Parent pursuant to Section 2.1(a)(i).         “Eligible Assignee” means (i) any Lender, any Affiliate of any Lender and any Related   Fund (any two or more Related Funds being treated as a single Eligible Assignee for all purposes   hereof), and (ii) any commercial bank, insurance company, investment or mutual fund or other   entity that is an “accredited investor” (as defined in Regulation D under the Securities Act) and   which extends credit or buys loans in the ordinary course of business; provided that no natural   person, Loan Party, Excluded Institution or any Affiliate (other than any Debt Fund Affiliate of   Parent or, if the additional limitations set forth in Section 10.6(h) are satisfied, any other Affiliate   of Parent that is not a Debt Fund Affiliate) of the foregoing shall be an Eligible Assignee.          “Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3)   of ERISA which is sponsored, maintained or contributed to by, or required to be contributed to   by, Parent or any of its ERISA Affiliates or which was sponsored, maintained or contributed to  by, or required to be contributed to by, Parent or any of its ERISA Affiliates during the  immediately preceding five plan years.         “Environmental Claim” means any investigation, notice, notice of violation, claim,   action, suit, proceeding, demand, abatement order or other order or directive (conditional or   otherwise), by any Governmental Authority or any other Person, arising (i) pursuant to or in   connection with any actual or alleged violation of any Environmental Law; (ii) in connection   with any Hazardous Material or any actual or alleged Hazardous Materials; or (iii) in connection                                          9    

 

   with any actual or alleged damage, injury, threat or harm to health, safety, natural resources or  the environment.         “Environmental Laws” means any and all current or future foreign or domestic, federal  or state (or any subdivision of either of them), statutes, ordinances, codes, orders, rules, rules of  common law regulations, judgments, Governmental Authorizations, binding and enforceable  guidelines, or any other requirements of Governmental Authorities, or any judicial or  administrative interpretation thereof, including any judicial or administrative order, consent  decree or judgment, in each case, to the extent binding on Parent or its Subsidiaries relating to (i)  environmental matters; (ii) the generation, use, storage, transportation or disposal of Hazardous  Materials; or (iii) occupational safety and health, industrial hygiene, land use or the protection of  human, plant or animal health or welfare, in any manner applicable to Parent or any of its  Restricted Subsidiaries or any real property (including all buildings, fixtures or other  improvements located thereon) owned, leased, operated or used by Parent or any of its Restricted  Subsidiaries.         “Equity Interests” means any and all shares, interests, participations or other equivalents  (however designated) of capital stock of a corporation, any and all equivalent ownership interests  in a Person (other than a corporation), including partnership interests and membership interests,  and any and all warrants, rights or options to purchase or other arrangements or rights to acquire  any of the foregoing; provided that “Equity Interests” shall not include Permitted Convertible  Note Hedging Agreements, Convertible Notes, or other Indebtedness that is convertible into  Equity Interests.         “ERISA” means the Employee Retirement Income Security Act of 1974, as amended  from time to time, and any successor thereto.         “ERISA Affiliate” means, as applied to any Person, (i) any corporation which is a  member of a controlled group of corporations within the meaning of Section 414(b) of the  Internal Revenue Code of which that Person is a member; (ii) any trade or business (whether or  not incorporated) which is a member of a group of trades or businesses under common control  within the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a  member; and (iii) any member of an affiliated service group within the meaning of Section  414(m) or (o) of the Internal Revenue Code of which that Person is a member.         “ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of  ERISA and the regulations issued thereunder with respect to any Pension Plan (excluding those  for which the provision for notice to the PBGC has been waived by regulation); (ii) the failure to  meet the minimum funding standard of Section 303 of ERISA with respect to any Pension Plan  or the failure to make by its due date a required installment under Section 430(j) of the Internal  Revenue Code with respect to any Pension Plan or the failure to make any required contribution  to a Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan pursuant to  Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination  described in Section 4041(c) of ERISA; (iv) the withdrawal by Parent or any of its ERISA  Affiliates from any Pension Plan with two or more contributing sponsors or the termination of  any such Pension Plan resulting in liability to Parent or any of its Affiliates pursuant to Section  4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension                                         10   

 

     Plan, or the occurrence of any event or condition which constitutes grounds under ERISA for the   termination of, or the appointment of a trustee to administer, any Pension Plan; (vi) the   imposition of liability on Parent or its ERISA Affiliates pursuant to Section 4062(e) or 4069 of   ERISA or by reason of the application of Section 4212(c) of ERISA; (vii) the withdrawal of   Parent or any of its ERISA Affiliates in a complete or partial withdrawal (within the meaning of   Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there is an assessment by   such Multiemployer Plan of liability therefor, or the receipt by Parent or its ERISA Affiliates of   notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section   4241 or 4245 of ERISA, or that it intends to terminate or has terminated under Section 4041A or   4042 of ERISA; (viii) the occurrence of an act or omission which gives rise to the imposition on   Parent or any of its ERISA Affiliates of fines, penalties, taxes or related charges under Chapter   43 of the Internal Revenue Code or under Section 409, Section 502(c), (i) or (l), or Section 4071   of ERISA in respect of any Employee Benefit Plan; (ix) the imposition of a lien pursuant to   Section 430(k) of the Internal Revenue Code with respect to a Pension Plan; or (x) the imposition   of any liability under Title IV of ERISA, other than the PBGC premiums due but not delinquent   under Section 4007 of ERISA.          “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule   published by the Loan Market Association (or any successor person), as in effect from time to   time.          “Event of Default” means any of the conditions or events specified in Section 8.1.          “Excess Cash Flow End Date” has the meaning specified in Section 2.10(c).          “Excess Cash Flow Trigger Date” has the meaning specified in Section 2.10(c).          “Exercise Price” has the meaning specified in the Warrants.          “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to   time, and any successor statute.          “Excluded Information” has the meaning specified in the definition of “Big Boy   Letter”.          “Excluded Institutions” means (a) the financial institutions specifically identified in   writing to the Administrative Agent prior to the Effective Date and their Affiliates clearly   identifiable by similarity of name and (b) any competitors of Parent and its Subsidiaries and their   Affiliates clearly identifiable by similarity of name that are specifically identified in writing to   the Administrative Agent prior to the Effective Date (or after the Effective Date, but only to the   extent mutually agreed upon by Parent and the Administrative Agent, each party acting   reasonably); provided that any Person that is a Lender and subsequently becomes an Excluded   Institution (but was not an Excluded Institution at the time it became a Lender) shall not  retroactively be deemed to be an Excluded Institution hereunder; provided, further, any Person   that is a Lender that is designated as an Excluded Institution after the date it became a Lender,   once so designated, shall not be entitled to acquire any additional assignments of, or   participations in, Commitments or Loans from any other Lender.  In no event shall any Canyon   Lender or any of its Subsidiaries or Affiliates be deemed to be an Excluded Institution.                                         11    

 

     Notwithstanding anything to the contrary contained in this Agreement, (i) the Administrative   Agent shall not be responsible or have any liability for, or have any duty to ascertain, inquire   into, monitor or enforce, compliance with the provisions hereof relating to Excluded Institutions,   and (ii) Parent, the other Loan Parties and the Lenders acknowledge and agree that the   Administrative Agent shall have no responsibility or obligation to determine whether any Lender   or potential Lender is an Excluded Subsidiary or any liability with respect to an assignment or   participation made to an Excluded Institution.          “Excluded Taxes” means, with respect to a recipient of any payment by any Loan Party   under any Loan Document:  (i) Taxes imposed on or measured by income (however   denominated), franchise Taxes, and branch profits Taxes, in each case, (a) imposed as a result of   such recipient being organized under the laws of, or having its principal office or, in the case of   any Lender, its applicable lending office located in, the jurisdiction imposing such Tax or (b) that   are Other Connection Taxes; (ii) any United States federal withholding tax imposed pursuant to   any law in effect at the time such recipient becomes a party to this Agreement or acquires an   interest in the applicable Loan or Commitment (other than pursuant to an assignment request by  Parent under Section 2.19) (or changes its applicable lending office), except to the extent such  recipient’s assignor (if any) was entitled, immediately prior to such assignment, or such recipient  was entitled, immediately prior to its change in applicable lending office, to receive additional  amounts in respect of such withholding tax pursuant to Section 2.16(b); (iii) any withholding tax  that results from a recipient’s failure to comply with Section 2.16(c); and (iv) any U.S. federal  withholding tax imposed pursuant to FATCA.         “Fair Share” has the meaning specified in Section 7.2.         “Fair Share Contribution Amount” has the meaning specified in Section 7.2.         “FATCA” means Sections 1471 through 1474 of the Internal Revenue Code as of the  Effective Date (and any amended and successor version that is substantively comparable and not  materially more onerous to comply with) and any Treasury regulations or other official  administrative interpretations thereof and any agreements entered into pursuant thereto.         “FDIC” means the Federal Deposit Insurance Corporation.         “Financial Officer Certification” means, with respect to the financial statements for  which such certification is required, the certification of the chief financial officer of Parent that  such financial statements fairly present, in all material respects, the financial condition of Parent  and its Subsidiaries as at the dates indicated and the results of their operations and their cash  flows for the periods indicated, subject to changes resulting from audit and normal year-end  adjustments.         “Fiscal Quarter” means a fiscal quarter of any Fiscal Year.         “Fiscal Year” means the fiscal year of Parent and its Subsidiaries ending on December  31 of each calendar year.         “Funding Guarantor” has the meaning specified in Section 7.2.                                          12    

 

         “GAAP” means, subject to the limitations on the application thereof set forth in Section  1.2, United States generally accepted accounting principles in effect as of the date of  determination thereof consistently applied.         “Governmental Authority” means any federal, state, municipal, national or other  government, governmental department, central bank, commission, board, bureau, court, agency  or instrumentality or political subdivision thereof or any entity, officer or examiner exercising  executive, legislative, judicial, regulatory or administrative functions of or pertaining to any  government (including any supra-national body exercising such powers or functions, such as the  European Union or the European Central Bank) or any court, in each case whether associated  with a state of the United States, the United States, or a foreign entity or government.         “Governmental Authorization” means any permit, license, authorization, plan,  directive, consent order or consent decree of or from any Governmental Authority.         “Guaranteed Obligations” has the meaning specified in Section 7.1.         “Guaranty” means the guaranty of each Subsidiary Guarantor set forth in Article VII.         “Hazardous Materials” means any substances or materials (a) which are or become  defined as hazardous wastes, hazardous substances, pollutants, contaminants, chemical  substances or mixtures or toxic substances under any Environmental Law, (b) which are toxic,  explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise  harmful to human health or the environment and are or become regulated by any Governmental  Authority, (c) the presence of which require investigation or remediation under any  Environmental Law or common law, (d) the discharge or emission or release of which requires a  permit or license under any Environmental Law or other Governmental Authorization, (e) which  are deemed to constitute a nuisance or a trespass which pose a health or safety hazard to Persons  or neighboring properties, (f) which consist of underground or aboveground storage tanks,  whether empty, filled or partially filled with any substance or (g) which contain, without  limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum  hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel, natural gas or  synthetic gas.         “Hedge Agreement” means (i) an Interest Rate Agreement, a Currency Agreement, a  Commodity Agreement, (ii) any and all other rate swap transactions, basis swaps, credit default  swaps, total return swaps and other credit derivative transactions, forward rate transactions,  commodity swaps, commodity options, forward commodity contracts, equity or equity index  swaps or options, bond or bond price or bond index futures, swaps or options or forward bond or  forward bond price or forward bond index transactions, interest rate options, swaps, swap options  (“swaptions”), caps or floors, forward foreign exchange transactions, cap transactions, floor  transactions, collar transactions, currency swap transactions, cross-currency rate swap  transactions, currency options, spot contracts, mortgage-backed or mortgage-based (including  principal-only and interest-only) securities and other instruments (including any kind of  collateralized mortgage obligation), to-be-announced mortgage-backed securities, or any other  similar transactions or any combination of any of the foregoing (including any options to enter  into any of the foregoing), whether or not any such transaction is governed by or subject to any                                         13   

 

     master agreement, (iii) any and all transactions of any kind, and the related confirmations, which   are subject to the terms and conditions of, or governed by, any form of master agreement   published by the International Swaps and Derivatives Association, Inc., any International  Foreign Exchange Master Agreement, any Master Securities Forward Transaction Agreement or  any other master derivatives agreement (any such master agreement, together with any related  schedules, a “Master Agreement”), including any such obligations or liabilities under any  Master Agreement, and (iv) any other primary agreement governing any exchange-traded or  over-the-counter derivative transaction entered into by Parent or any Subsidiary of Parent.          “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time  or from time to time may be contracted for, charged, or received under the laws applicable to any  Lender which are presently in effect or, to the extent allowed by law, under such applicable laws  which may hereafter be in effect and which allow a higher maximum nonusurious interest rate  than applicable laws now allow.         “Historical Financial Statements” means (i) the audited financial statements of Parent  and its Subsidiaries for the Fiscal Year ended December 31, 2019, consisting of Consolidated  balance sheets and the related Consolidated statements of income, stockholders’ equity and cash  flows, and (ii) the unaudited financial statements of Parent and its Subsidiaries for the Fiscal  Quarter ended March 31, 2020, consisting of a condensed Consolidated balance sheet and the  related condensed Consolidated statements of income, stockholders’ equity and cash flows, in  each case certified by the chief financial officer of Parent that they fairly present, in all material  respects, the financial condition of Parent and its Subsidiaries as at the dates indicated and the  results of their operations and their cash flows for the periods indicated, subject to changes  resulting from audit and normal year-end adjustments.         “HMT” has the meaning specified in the definition of “Sanctions”.         “Increased Amount Date” has the meaning specified in Section 2.20(a).         “Increased Cost Lender” has the meaning specified in Section 2.19.         “Indebtedness” means, as applied to any Person, without duplication, (i) all obligations  created, issued or incurred by such Person for borrowed money; (ii) all obligations of such  Person evidenced by bonds, debentures, notes or other similar instruments; (iii) all Capitalized  Lease Obligations of such Person; (iv) all obligations of such Person issued or assumed as the  deferred purchase price of property or services and all payment obligations of such Person under  conditional sale or other title retention agreements relating to assets purchased by such Person   (but, in each case, excluding trade accounts payable (other than for borrowed money) arising,   and accrued expenses incurred, in the ordinary course of business); (v) obligations (contingent or   otherwise) of such Person for the reimbursement of any obligor on any drawn letter of credit,   banker’s acceptance or similar credit transaction; (vi) guarantees by such Person of Indebtedness  of other Persons of the types referred to in clauses (i) through (v) above and clauses (viii)   through (ix) below; (vii) Indebtedness of any other Person of the type referred to in clauses (i)   through (vi) above which is secured by any Lien on any property or asset of such referent Person,   the amount of such Indebtedness of such referent Person being deemed to be the lesser of the fair   market value of such property or asset and the amount of the Indebtedness of such other Person                                          14    

 

     so secured; (viii) all net payment obligations of such Person under Commodity Agreements,  Currency Agreements and Interest Rate Agreements of such Person; and (ix) obligations of such  Person under any repurchase agreements, sale/buy-back agreements or similar arrangements.          “Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses,  damages, penalties, claims, actions, judgments, suits, claims, costs, expenses and disbursements  of any kind or nature whatsoever (but limited, with respect to legal fees and expenses, to the  reasonable and documented out of pocket fees and disbursements of one single primary counsel  and one single local counsel in each appropriate jurisdiction for all similarly situated Indemnitees  (it being agreed that, in the case of any actual or perceived conflict of interest between or among   any Indemnitees, such Indemnitees shall be deemed not to be similarly situated and each such   group of Indemnitees shall be entitled to additional counsel as set forth herein) in connection   with any investigative, administrative or judicial proceeding or hearing commenced or threatened   by any Person (including, without limitation, any Loan Party), whether or not any such   Indemnitee shall be designated as a party or a potential party thereto), that may be imposed on,   incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of   this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby   (including the use or proposed use of proceeds, the Lenders’ Commitments, or any enforcement   of any of the Loan Documents (including any sale of, collection from, or other realization upon   any of the Collateral or the enforcement of the Guaranty)), but excluding any Taxes.          “Indemnified Taxes” means any and all Taxes, other than Excluded Taxes, imposed on   or with respect to any payment by any Loan Party under any Loan Document.          “Indemnitee” has the meaning specified in Section 10.3(a).          “Initial Term Loans” means, collectively, the Effective Date Term Loans and the   Second Draw Term Loans.          “Initial Term Loan Maturity Date” means the third anniversary of the Effective Date.          “Installment” has the meaning specified in Section 2.8.         “Interest Rate Agreement” means any interest rate swap, cap, floor, collar, hedge or  similar agreement and any other agreement or arrangement designed to manage interest rates or  interest rate risk.         “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.         “Investment” means (i) any direct or indirect purchase or other acquisition by Parent or  any of its Restricted Subsidiaries of, or of a beneficial interest in, any of the Equity Interests,  Indebtedness or Securities of any other Person; (ii) any direct or indirect redemption, retirement,  purchase or other acquisition for value, by Parent or any of its Restricted Subsidiaries of any  Equity Interests of such Person; (iii) any direct or indirect loan, advance (other than residential  mortgage loans in the ordinary course of business, warehouse loans secured by residential   mortgage loans and related assets, advances to employees for hardship, moving, entertainment  and travel expenses, drawing accounts and similar expenditures in the ordinary course of  business) to, or any other investment or capital contribution in, any other Person by Parent or any                                          15    

 

     of its Restricted Subsidiaries; (iv) all investments consisting of any exchange traded or over the  counter derivative transaction, including any Interest Rate Agreement and Currency Agreement;  and (v) the purchase or other acquisition (in one transaction or a series of transactions) of all or   substantially all of the property and assets or business of another Person or assets constituting a   business unit, line of business or division of any Person.  For purposes of covenant compliance,   (x) the amount of any Investment of the type described in clauses (i), (ii), (iii) and (v) shall be the   amount actually invested, without any adjustments for subsequent increases or decreases in value   of such Investment but giving effect to any returns or distributions of capital or repayment of   principal actually received in cash by such other Person with respect thereto and (y) Investments   will be valued at the time of the making thereof and without giving effect to any write-ups, write-  downs or write-offs with respect to such Investment.          “Joinder Agreement” means an agreement substantially in the form of Exhibit H or such   other form or with such changes as may be necessary to reflect term loans made pursuant to   Section 2.20 as an increase to the Initial Term Loans or any prior Series of New Term Loans or   such other changes as the Administrative Agent deems reasonably necessary to reflect an   incurrence of term loans under Section 2.20.          “Joint Venture” means a joint venture, partnership or other similar arrangement,   whether in corporate, partnership or other legal form.          “Lender” means each financial institution listed on the signature pages hereto as a   Lender, and any other Person that becomes a party hereto pursuant to an Assignment Agreement   or Joinder Agreement.          “Lien” means any lien, mortgage, pledge, assignment, security interest, charge or   encumbrance of any kind.          “Loan” means a term loan made by a Lender to Parent under this Agreement.          “Loan Document” means any of this Agreement, the Notes, if any, the Agent Fee Letter   and the Security Documents.          “Loan Party” means Parent or a Subsidiary Guarantor.          “Manager” means, so long as Parent is externally managed, any Person serving as   Parent’s external manager which, on the Effective Date, is FIG LLC, a Delaware limited liability   company.          “Margin Stock” has the meaning specified in Regulation U.          “Master Agreement” has the meaning specified in the definition of Hedge Agreement.          “Material Adverse Effect” means the effect of any event or circumstance that, taken   alone or in conjunction with other events or circumstances, has a material adverse effect on (i)   the business, assets, operations or financial condition of Parent and its Subsidiaries taken as a   whole; (ii) the ability of any Loan Party to fully and timely perform its payment obligations   under the Loan Documents; (iii) the enforceability of any Loan Document; (iv) the value of the                                          16    

 

     Collateral or the validity or priority of the Collateral Agent’s Liens on the Collateral, taken as a   whole; (v) the ability of the Collateral Agent to enforce or realize upon the Collateral, taken as a   whole or (vi) the rights, remedies and benefits available to, or conferred upon, the Agents and the   Lenders under the Loan Documents, taken as a whole; provided that the impacts of COVID-19   on the business, assets, operations or financial condition of Parent or any of its Subsidiaries that  are expected to or reasonably likely to occur as of the Effective Date and that have been  previously disclosed to the Lenders in writing prior to the Effective Date shall not constitute a  “Material Adverse Effect”.         “Maturity Date” means the Initial Term Loan Maturity Date and the New Term Loan  Maturity Date of any Series of New Term Loans.         “Moody’s” has the meaning specified in the definition of “Cash Equivalents”.         “MSR” means mortgage servicing rights (including master servicing rights) entitling the  holder to service mortgage loans.         “MSR Cashflow” means the cashflow paid or required to be paid to Parent or any of its  Subsidiaries, as applicable, in connection with any MSR Facility, either on the related monthly  remittance date or after satisfaction of the obligations of Parent or its Subsidiaries, as applicable,  under the transaction documents relating to such MSR Facility.         “MSR Facility” means any financing arrangement of any kind, including, but not limited  to, financing arrangements in the form of repurchase facilities, loan agreements, note issuance  facilities and commercial paper facilities (excluding in all cases, any Securitization), with a  financial institution or other lender or purchaser, in any case exclusively to finance or refinance  the purchase, investment in, pooling or funding by Parent or a Subsidiary of Parent of MSRs  invested in, purchased, or owned by Parent or any Subsidiary of Parent in the ordinary course of  business or otherwise secured by MSR Cashflow.           “MSR Facility Trust” means any Person (whether or not a Subsidiary of Parent)  established for the purpose of issuing notes or other securities in connection with an MSR  Facility, which (i) notes and securities are backed by specified MSRs purchased by such Person  from Parent or any Subsidiary of Parent, or (ii) notes and securities are backed by specified  mortgage loans purchased by such Person from Parent or any Subsidiary of Parent.         “Multiemployer Plan” means any Employee Benefit Plan that is subject to Title IV of   ERISA and that is a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which   Parent or any of its ERISA Affiliates makes or is obligated to make contributions.          “Narrative Report” means, with respect to the financial statements for which such   narrative report is required, a narrative report describing the operations of Parent and its   Subsidiaries with content substantially consistent with the requirements for “Management’s   Discussion and Analysis of Financial Condition and Results of Operations” for a Quarterly   Report on Form 10-Q or Annual Report on Form 10-K under the rules and regulations of the   SEC, or any similar successor provisions, which may be satisfied for the relevant period by   delivery of a Form 10-Q or Form 10-K, as applicable, as contemplated by Section 5.1 hereof.                                          17    

 

           “Net Cash Proceeds” means (a) with respect to the sale, transfer or other disposition   (whether in a single transaction, multiple transactions or a series of related transactions), directly   or indirectly, of any Equity Interests in NewRez or any of its Subsidiaries that hold material   assets, or any material assets of NewRez or its Subsidiaries, to any Person other than Parent or   any other Loan Party outside of the ordinary course of business (it being understood that sales,   transfers or other dispositions of mortgages, MSRs, “excess” MSRs, to-be-announced mortgage-  backed securities and Servicing Advances are in the ordinary course of business for NewRez and   its Subsidiaries), an amount equal to: (i) cash payments (including any cash received by way of   deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as   and when so received) received by Parent or any of its Subsidiaries from such sale, transfer or   other disposition, minus (ii) any bona fide direct costs incurred in connection with such sale,   transfer or other disposition, including (1) income or gains taxes paid or payable by the seller as   a result of any gain recognized in connection with such sale, transfer or other disposition, (2)   payment of the outstanding principal amount of, premium or penalty, if any, and interest on any   Indebtedness (other than the Loans) that is secured by a Lien on the Equity Interests or assets in  question and that is required to be repaid under the terms thereof as a result of such sale, transfer   or other disposition and (3) a reasonable reserve for any indemnification payments (fixed or   contingent) attributable to seller’s indemnities and representations and warranties to purchaser in   respect of such sale, transfer or other disposition undertaken by Parent or any other Loan Party in  connection with such sale, transfer or other disposition or for adjustments to the sale price in  connection therewith; provided that if all or any portion of any such reserve is not used or is   released, then the amount not used or released shall comprise Net Cash Proceeds, minus (iii)   mandated fees and penalties by any Specified Government Entity, if any, and all customary or   reasonable commissions, discounts, fees, costs and expenses associated therewith; (b) with  respect to the sale, transfer or other disposition (whether in a single transaction, multiple  transactions or a series of related transactions), directly or indirectly, of any Equity Interests in  an Unencumbered Asset Equity Pledge Subsidiary to any Person other than Parent or any other  Loan Party, or any assets of an Unencumbered Asset (Long Term) Equity Pledge Subsidiary to  any Person other than another Unencumbered Asset (Long Term) Equity Pledge Subsidiary, an  amount equal to: (i) cash payments (including any cash received by way of deferred payment  pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so  received) received by Parent or any of its Subsidiaries from such sale, transfer or other  disposition, minus (ii) any bona fide direct costs incurred in connection with such sale, transfer   or other disposition, including (1) income or gains taxes paid or payable by the seller as a result   of any gain recognized in connection with such sale, transfer or other disposition, and (2) a   reasonable reserve for any indemnification payments (fixed or contingent) attributable to seller’s   indemnities and representations and warranties to purchaser in respect of such sale, transfer or   other disposition undertaken by Parent or any of its Subsidiaries in connection with such sale,   transfer or other disposition or for adjustments to the sale price in connection therewith; provided   that if all or any portion of any such reserve is not used or is released, then the amount not used   or released shall comprise Net Cash Proceeds, minus (iii) all customary or reasonable   commissions, discounts, fees, costs and expenses associated therewith; or (c) with respect to any   issuance or incurrence of Indebtedness or any sale or issuance of Equity Interests, means the cash   proceeds of such issuance, sale or incurrence, as the case may be, net of attorneys’ fees,   accountants’ fees, underwriters’ or placement agents’ fees, discounts and commissions and                                           18    

 

   brokerage, consultant and other fees and expenses incurred in connection with such issuance,  sale or incurrence, as the case may be, and net of taxes paid or payable as a result thereof.         “New Term Loan Commitments” has the meaning specified in Section 2.20(a).         “New Term Loan Exposure” means, with respect to any Lender, as of any date of  determination, the outstanding principal amount of the New Term Loan Commitment or, after  the funding thereof, the New Term Loans of such Lender.         “New Term Loan Lender” has the meaning specified in Section 2.20(a).         “New Term Loan Maturity Date” means the date on which New Term Loans of a  Series shall become due and payable in full hereunder, as specified in the applicable Joinder  Agreement, including by acceleration or otherwise.         “New Term Loans” has the meaning specified in Section 2.20(b).         “NewRez” means NewRez LLC, a Delaware limited liability company.         “Non-Recourse Indebtedness” means any Indebtedness of Parent or any of its  Subsidiaries:         (1)   that is advanced to finance the acquisition (including from Parent or a Subsidiary  of Parent) of Securitization Assets or other assets and secured only by the assets to which such  Indebtedness relates (or by a pledge of equity in the Securitization Entity or Subsidiary of Parent  owning such assets) without recourse to Parent or any of its Subsidiaries (excluding any such  Subsidiary that is a Securitization Entity or that owns no assets other than its interest in a  Securitization Entity and, in each case, is a borrower, guarantor, pledgor or other obligor of such  Indebtedness) (other than recourse pursuant to Standard Recourse Undertakings, unless, until and  for so long as a claim for payment has been made under any such Standard Recourse  Undertakings (which has not been satisfied or waived) at which time the obligations with respect  to any such Standard Recourse Undertakings shall not be considered Non-Recourse Indebtedness  to the extent, and only to the extent, that such claim is a claim for the payment of Indebtedness  for borrowed money of Parent or any Subsidiary of Parent and is also a liability (for GAAP  purposes) of Parent or such Subsidiary, as applicable (excluding any such Subsidiary that is a  Securitization Entity or that owns no assets other than its interest in a Securitization Entity and,  in each case, is a borrower, guarantor, pledgor or other obligor of such Indebtedness));         (2)   that is advanced to any Subsidiaries or group of Subsidiaries of Parent formed for  the sole purpose of acquiring or holding Securitization Assets or other assets (directly or  indirectly) against which a loan is obtained or other Indebtedness is issued without recourse to,  and with no cross-collateralization against, any other assets of Parent or any of its Subsidiaries  (excluding any such Subsidiary that is a Securitization Entity or that owns no assets other than its  interest in a Securitization Entity and, in each case, is a borrower, guarantor, pledgor or other  obligor of such Indebtedness) (other than recourse pursuant to Standard Recourse Undertakings,  unless, until and for so long as a claim for payment has been made under any such Standard  Recourse Undertakings (which has not been satisfied or waived) at which time the obligations  with respect to any such Standard Recourse Undertakings shall not be considered Non-Recourse                                         19   

 

   Indebtedness to the extent, and only to the extent, that such claim is a claim for the payment of  Indebtedness for borrowed money of Parent or any Subsidiary of Parent and is also a liability  (for GAAP purposes) of Parent or such Subsidiary, as applicable (excluding any such Subsidiary  that is a Securitization Entity or that owns no assets other than its interest in a Securitization  Entity and, in each case, is a borrower, guarantor, pledgor or other obligor of such  Indebtedness));         (3)   that is advanced to finance the acquisition of real property and secured by only the  real property (and any accessions, improvements and fixtures thereto) to which such  Indebtedness relates (or by a pledge of equity in the Securitization Entity or Subsidiary of Parent  owning such assets) without recourse to Parent or any of its Subsidiaries (excluding any such  Subsidiary that is a Securitization Entity or that owns no assets other than its interest in a  Securitization Entity and, in each case, is a borrower, guarantor, pledgor or other obligor of such  Indebtedness) (other than recourse pursuant to Standard Recourse Undertakings, unless, until and  for so long as a claim for payment has been made under any such Standard Recourse  Undertakings (which has not been satisfied or waived) at which time the obligations with respect  to any such Standard Recourse Undertakings shall not be considered Non-Recourse Indebtedness  to the extent, and only to the extent, that such claim is a claim for the payment of Indebtedness  for borrowed money of Parent or any Subsidiary of Parent and is also a liability (for GAAP  purposes) of Parent or such Subsidiary, as applicable (excluding any such Subsidiary that is a  Securitization Entity or that owns no assets other than its interest in a Securitization Entity and,  in each case, is a borrower, guarantor, pledgor or other obligor of such Indebtedness));         (4)   in respect of which recourse for payment is contractually limited to specific assets  (including, without limitation, intangible assets) of Parent or any of its Subsidiaries encumbered  by a Lien securing such Indebtedness (other than recourse pursuant to Standard Recourse  Undertakings, unless, until and for so long as a claim for payment has been made under any such  Standard Recourse Undertakings (which has not been satisfied or waived) at which time the  obligation with respect to any such Standard Recourse Undertakings shall not be considered  Non-Recourse Indebtedness to the extent, and only to the extent, that such claim is a claim for  the payment of Indebtedness for borrowed money of Parent or any Subsidiary of Parent and is  also a liability (for GAAP purposes) of Parent or such Subsidiary, as applicable (excluding any  such Subsidiary that is a Securitization Entity or that owns no assets other than its interest in a  Securitization Entity and, in each case, is a borrower, guarantor, pledgor or other obligor of such  Indebtedness)); or         (5)   customary completion or budget guarantees provided to lenders in connection  with any of the foregoing clauses (1) through (4) in the ordinary course of business.         For the purposes of clarity, it is understood and agreed that if the payment of any  Indebtedness for borrowed money of Parent or any of its Subsidiaries that would otherwise  constitute Non-Recourse Indebtedness is guaranteed in part but not in whole by Parent or a  Subsidiary of Parent in such manner that the portion of such Indebtedness so guaranteed no  longer constitutes Non-Recourse Indebtedness, then the portion of the Indebtedness so  guaranteed shall be deemed to constitute recourse Indebtedness and the remainder of such  Indebtedness shall be deemed to constitute Non-Recourse Indebtedness.                                         20   

 

         “Note” means a promissory note in the form of Exhibit B, as it may be amended,  restated, supplemented or otherwise modified from time to time.         “Notice of Affiliate Assignment” has the meaning specified in Section 10.6(h)(v).         “NRM” means New Residential Mortgage LLC, a Delaware limited liability company.         “Obligations” means all obligations of every nature of each Loan Party, including  obligations from time to time owed to Agents, Lenders or any of them, under any Loan  Document, whether for principal, interest (including interest which, but for the filing of a petition  in bankruptcy with respect to such Loan Party, would have accrued on any Obligation, whether  or not a claim is allowed against such Loan Party for such interest in the related bankruptcy  proceeding), fees, expenses, indemnification or otherwise, whether direct or indirect, absolute or  contingent, due or to become due, or now existing or hereafter arising. Any reference in this  Agreement or in the other Loan Documents to the Obligations shall include all extensions,  modifications, renewals or alterations thereof, both prior and subsequent to any filing of a  petition in bankruptcy.         “Obligee Guarantor” has the meaning specified in Section 7.7.         “OFAC” means Office of Foreign Assets Control of the U.S. Treasury Department.         “Organizational Documents” means with respect to any Person all formation,  organizational and governing documents, instruments and agreements, including (i) with respect  to any corporation, its certificate or articles of incorporation or organization, as amended,  supplemented or otherwise modified, and its by-laws, as amended, supplemented or otherwise  modified, (ii) with respect to any limited partnership, its certificate of limited partnership, as  amended, supplemented or otherwise modified, and its partnership agreement, as amended,  supplemented or otherwise modified, (iii) with respect to any general partnership, its partnership  agreement, as amended, supplemented or otherwise modified and (iv) with respect to any limited  liability company, its articles of organization, as amended, supplemented or otherwise modified,  and its operating agreement, as amended, supplemented or otherwise modified. In the event any  term or condition of this Agreement or any other Loan Document requires any Organizational  Document to be certified by a secretary of state or similar governmental official, the reference to  any such “Organizational Document” shall only be to a document of a type customarily certified  by such governmental official.         “Other Connection Taxes” means, with respect to any recipient of any payment by any  Loan Party under any Loan Document, Taxes imposed as a result of a present or former  connection between such recipient and the jurisdiction imposing such Tax (other than  connections arising from such Recipient having executed, delivered, become a party to,  performed its obligations under, received payments under, received or perfected a security  interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or  sold or assigned an interest in any Loan or Loan Document).         “Other Taxes” means all present or future stamp, documentary, intangible, mortgage,  recording or similar Taxes arising from any payment made under any Loan Document or from  the execution, delivery, registration or enforcement of, or otherwise with respect to, any Loan                                        21   

 

   Document, except any such Taxes that are Other Connection Taxes imposed with respect to an  assignment (other than an assignment made pursuant to Section 2.19) (an “Assignment Tax”).         “Parent” has the meaning specified in the preamble hereto.         “PATRIOT Act” has the meaning specified in Section 3.1(g).         “Payment Date” means (i) with respect to interest payments, the last Business Day of  each March, June, September and December to occur while such Loan is outstanding, the final  maturity date of such Loan and the date of any repayment or prepayment made in respect  thereof, and (ii) with respect to principal payments, the last Business Day of each March, June,  September and December to occur while such Loan is outstanding and the final maturity date of  such Loan.         “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.         “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan,  which is subject to Title IV of ERISA.         “Permitted Acquisition” means any acquisition by Parent or any of its Subsidiaries,  whether by purchase, merger or otherwise, of all or substantially all of the assets of, not less than  a majority of the Equity Interests of, or a business line or unit or a division of, any Person;  provided that:                   (i)     immediately prior thereto, and after giving effect thereto, no        Default or Event of Default shall have occurred and be continuing or would result        therefrom;                  (ii)     all transactions in connection therewith shall be consummated, in        all material respects, in accordance with all applicable laws and in conformity with all       applicable Governmental Authorizations;                 (iii)    Parent and its Subsidiaries shall be in compliance with the       financial covenants set forth in Section 6.7 on a pro forma basis after giving effect to       such acquisition as of the last day of the month most recently ended for which financial       statements of Parent are required to have been delivered pursuant to Section 5.1(a); and                  (iv)    in the case of acquisitions other than those in which at least 80% of       the consideration is paid in Equity Interests, the aggregate intangibles acquired or       generated as a result of such acquisitions (net of any contingent consideration, earn-outs       or gain on bargain purchase) shall not exceed, at the time such acquisition is       consummated, (A) $100,000,000 if the aggregate outstanding principal amount of       Indebtedness incurred pursuant to Section 6.1(a)(ii) plus the outstanding principal amount        of Loans hereunder exceeds $500,000,000, or (B) $200,000,000 if the aggregate        outstanding principal amount of Indebtedness incurred pursuant to Section 6.1(a)(ii) plus        the outstanding principal amount of Loans hereunder exceeds $250,000,000 but is less        than or equal to $500,000,000.                                         22   

 

     For the avoidance of doubt, the condition in clause (iv) above shall not apply to any acquisition   (x) effected by contributing or exchanging all or a portion of an operating business (other than   the NewRez business) through a “carve-out” or otherwise into an existing Investment or a newly   formed acquisition vehicle or merger into a third party or merger subsidiary for equity   consideration; provided that such equity consideration has a fair market value that is at least   equal to the fair market value of the assets or business contributed to, exchanged for or otherwise   invested, or (y) where a Person becomes a Subsidiary as a result of the exercise of stock options   or warrants held on the Effective Date by Parent or any of its Subsidiaries.           “Permitted Convertible Note Hedging Agreement” means (a) an agreement pursuant   to which Parent acquires a call or a capped call option requiring the counterparty thereto to   deliver to Parent shares of common stock in Parent, the cash value of such shares or cash  representing the termination value of such option or a combination thereof from time to time   upon settlement, exercise or early termination of such option and (b) an agreement pursuant to  which, among other things, Parent issues to the counterparty thereto warrants to acquire common   stock of Parent, cash in lieu of delivering shares of common stock or cash representing the   termination value of such option, or a combination thereof upon settlement, exercise or early   termination thereof, in each case, under clauses (a) and (b), entered into by Parent in connection   with any issuance of Convertible Notes (including, without limitation, the exercise of any over-  allotment or initial purchaser’s or underwriter’s option).          “Permitted Funding Indebtedness” means (i) any Permitted Servicing Advance Facility   Indebtedness, (ii) any Permitted Warehouse Indebtedness, (iii) any Permitted Residual  Indebtedness, (iv) any Permitted MSR Indebtedness, (v) any facility that combines any  Indebtedness under clause (i), (ii), (iii) or (iv) and (vi) any Refinancing of the Indebtedness under  clause (i), (ii), (iii), (iv) or (v) and advanced to Parent or any of its Subsidiaries based upon, and  secured by, Servicing Advances, mortgage related securities, loans, MSRs, MSR Cashflow,  consumer receivables, REO Assets or Residual Interests existing on the Effective Date or created  or acquired thereafter.         “Permitted Holders” means Fortress Investment Group LLC and its Control Investment  Affiliates.         “Permitted Liens” means:                    (i)    Liens in favor of the Collateral Agent for the benefit of the Secured        Parties granted pursuant to any Loan Document;                   (ii)    pledges or deposits by such Person under workers’ compensation,        early retirement or termination obligations, pension fund obligations or contributions,        unemployment insurance laws or similar legislation, in each case incurred in the ordinary        course of business;                  (iii)    Liens imposed by operation of law, for carriers’, warehousemen’s,        mechanics’ or similar Liens, in each case for sums not yet overdue by more than 30 days        or which are being contested in good faith by appropriate proceedings;                                           23    

 

                          (iv)     Liens imposed by operation of law for taxes, assessments and other   governmental charges not yet overdue or which are being contested in good faith by   appropriate proceedings; provided that any reserve or other appropriate provision as is   required in conformity with GAAP has been made therefor;             (v)     Liens or deposits to secure the performance of statutory or   regulatory obligations or of surety, bid, customs, stay, appeal, tax, indemnity or  performance bonds, warranty and contractual requirements, completion guarantees and  payment obligations in connection with self-insurance or similar obligations, in each case  in the ordinary course of business;             (vi)    survey exceptions, encumbrances, easements or reservations of, or  rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone  lines and other similar purposes, or zoning or other restrictions as to the use of real  property or to the ownership of its properties which do not (1) secure obligations for  borrowed money or (2) materially impair the use in the ordinary course operation of the  business of such Person;            (vii)    any interest or title of a lessor or sublessor under any lease of real  estate not prohibited hereunder and covering only the assets so leased;           (viii)    purported Liens evidenced by the filing of precautionary UCC  financing statements (1) relating solely to operating leases of personal property entered  into in the ordinary course of business or (2) to evidence the sale of assets in the ordinary  course of business;             (ix)    Liens existing on the Effective Date and listed on Schedule 6.2, but   not the extension of coverage thereof to any other category or type of property or assets   not the subject of such Liens on the Effective Date (other than assets and property affixed   or appurtenant thereto and proceeds and products thereof);             (x)     Liens on property or Equity Interests of another Person at the time  such other Person becomes a Subsidiary of such Person; provided that the Liens may not   extend to any other property owned by such Person or any of its Subsidiaries (other than  assets and property affixed or appurtenant thereto and proceeds and products thereof);  provided, further, that such Liens are not created or Incurred in connection with, or in   contemplation of, such acquisition;             (xi)     Liens on property at the time such Person or any of its Subsidiaries   acquires the property, including any acquisition by means of a merger or consolidation  with or into such Person or a Subsidiary of such Person; provided, however, that the   Liens may not extend to any other property owned by such Person or any of its  Subsidiaries (other than assets and property affixed or appurtenant thereto and proceeds  and products thereof); provided, further, that such Liens are not created or incurred in   connection with, or in contemplation of, such acquisition;            (xii)     Liens securing intercompany Indebtedness or other obligations   among Parent and/or any of its Subsidiaries; provided that (A) any such intercompany                                   24                

 

                 Indebtedness if held by a Loan Party is pledged for the benefit of the Secured Parties and   (B) the Liens permitted by this clause (xii) do not attach to any Collateral;            (xiii)    Liens securing Indebtedness permitted under Section 6.1(p);   provided, however, that (1) such Liens do not at any time encumber any property except   for accessions to such property other than the property financed by such Indebtedness and   the proceeds and the products thereof and (2) with respect to Capitalized Lease   Obligations, such Liens do not at any time extend to or cover any assets (except for   accessions to such assets) other than the assets subject to such Capitalized Lease   Obligations; provided, further, that individual financings of equipment provided by one   lender may be cross-collateralized to other financings of equipment provided by such  lender;             (xiv)    (A) Liens on the Collateral to secure Indebtedness incurred  pursuant to Section 6.1(a)(ii) or 6.1(d) that is subject to an intercreditor agreement that is   reasonably acceptable to the Administrative Agent, and (B) Liens to secure Indebtedness  incurred pursuant to Section 6.1(e), but only to the extent that the Indebtedness being  guarantied pursuant to Section 6.1(e) is also permitted to be secured by a Permitted Lien;            (xv)     Liens to secure any Refinancing (or successive Refinancings) as a  whole, or in part, of any Indebtedness secured by any Lien referred to in the foregoing  clauses (i), (ix), (x), (xi) and (xiii) above and (xxvi) – (xxx) below; provided, however,   that:                      (1)   such new Lien shall be limited to all or part of the   same property and assets that secured or, under the written agreements pursuant to   which the original Lien arose, could secure the original Lien (plus improvements   and accessions to such property or proceeds or distributions thereof);                       (2)   the Indebtedness secured by such Lien at such time   is not increased to any amount greater than the sum of (x) the outstanding  principal amount or, if greater, committed amount of the Indebtedness described   under clauses (i), (ix), (x), (xi) and (xiii) above and (xxvi) – (xxx) below at the   time the original Lien became a Permitted Lien and (y) an amount necessary to   pay any fees and expenses, including premiums, incurred in connection with such   Refinancing, refunding, extension, renewal or replacement; and                      (3)   if the Liens securing the Indebtedness to be   Refinanced included Liens on Collateral and such Liens were subject to an   intercreditor agreement with the Secured Parties or an agent on their behalf, such   new Lien securing such Refinancing Indebtedness shall be subject to an   intercreditor agreement with the Secured Parties or an agent on their behalf and   shall not have greater priority with respect to the Liens securing the Obligations   than the Liens securing the Indebtedness to be Refinanced;            (xvi)     Liens securing judgments for the payment of money not   constituting an Event of Default under Section 8.1(h);                                    25                

 

                        (xvii)     Liens of a collection bank arising under Section 4-210 of the UCC   on items in the course of collection;           (xviii)    Liens encumbering reasonable customary initial deposits and  margin deposits and similar Liens attaching to commodity trading accounts or other  brokerage accounts incurred in the ordinary course of business;            (xix)    Liens solely on any cash earnest money deposits made by Parent or  any of its Subsidiaries in connection with any letter of intent or purchase agreement in  connection with a transaction permitted under this Agreement;            (xx)     licenses, sublicenses or similar rights to use any patent, trademark,  copyright or other intellectual property right granted to others by Parent or any of its  Subsidiaries in the ordinary course of business, which do not interfere in any material  respect with the business of Parent or such Subsidiary;            (xxi)    Liens on any amounts held by a trustee under any indenture or  other debt agreement issued in escrow pursuant to customary escrow arrangements  pending the release thereof, or under any indenture or other debt agreement pursuant to  customary discharge, redemption or defeasance provisions;           (xxii)    any encumbrance or restriction (including put or call arrangements,  tag, drag, right of first refusal and similar rights) with respect to Equity Interests or other  securities of any Joint Venture or similar arrangement pursuant to any Joint Venture or   similar agreement;           (xxiii)    Liens on deposits or other amounts held in escrow to secure   contractual payments (contingent or otherwise) payable by Parent or its Subsidiaries to a   counterparty in connection with any Investment, acquisition or disposition;           (xxiv)     (i) Liens required by prime brokers in connection with prime   brokerage arrangements or that are contractual rights of set-off relating to the   establishment of depository relations with banks not given in connection with the  issuance of Indebtedness and (ii) Liens to secure Indebtedness incurred pursuant to   Section 6.1(l), other Indebtedness of Parent or any of its Subsidiaries owed to banks and   other financial institutions incurred in connection with Cash Management Obligations   and other ordinary banking arrangements to provide treasury services or to manage cash   balances of Parent and its Subsidiaries, and other Indebtedness of Parent or any of its   Subsidiaries arising from the honoring by a bank or other financial institution of a check,   draft or similar instrument drawn against insufficient funds; provided, however, that such   Indebtedness is extinguished within five (5) Business Days of incurrence;           (xxv)      Liens on cash and Cash Equivalents securing obligations under   Hedge Agreements entered into not for speculative purposes;           (xxvi)     Liens securing Non-Recourse Indebtedness;                                     26                

 

               (xxvii)     Liens securing Permitted Funding Indebtedness other than        Permitted Servicing Advance Facility Indebtedness so long as any such Lien shall        encumber only (i) the assets originated, acquired or funded with the proceeds of such        Indebtedness and (ii) any intangible contract rights and other documents, records and        assets directly related to the assets set forth in clause (i) and any proceeds thereof;               (xxviii)    Liens on Servicing Advances, any intangible contract rights and        other documents, records and assets directly related to the foregoing assets and any        proceeds thereof securing deferred servicing fees, Permitted Servicing Advance Facility        Indebtedness, Permitted Securitization Indebtedness or Non-Recourse Indebtedness;                (xxix)     Liens on the Equity Interests of any Securitization Entity and the        proceeds thereof securing Securitization Indebtedness of such Securitization Entity;                (xxx)      Liens on Securitization Assets, any intangible contract rights and        other documents, records and assets directly related to the foregoing assets and any        proceeds thereof incurred in connection with Permitted Securitization Indebtedness or        permitted guarantees thereof;                 (xxxi)     Liens on MSR Cashflow, deposit accounts or securities accounts        holding such MSR Cashflow and all replacements, substitutions, distributions on or        proceeds of any or all of the foregoing; and               (xxxii)     other Liens securing obligations not constituting Indebtedness for        borrowed money that do not exceed $5,000,000 in the aggregate at any one time;   provided that, for purposes of this definition, any reference to any Indebtedness permitted  pursuant to Section 6.1 shall be deemed to include a reference to such Indebtedness incurred by  any Subsidiary of Parent (to the extent not already provided herein).         “Permitted MSR Indebtedness” means Indebtedness in connection with an MSR  Facility; the amount of any particular Permitted MSR Indebtedness as of any date of  determination shall be calculated in accordance with GAAP.         “Permitted REIT Distributions” means any (i) dividend, redemption, or other  distribution or payment by Parent (whether in cash, Parent stock, other property, or any  combination thereof, as determined by Parent) that, in Parent’s reasonable determination, is  intended (A) to maintain Parent’s status or ability to qualify for taxation as a REIT or (B) to  avoid the payment of all entity-level federal, state and local income or excise tax and (ii)  dividend, redemption, or other distribution or payment by any Restricted Subsidiary that is  intended to permit Parent to make any distribution or payment described in clause (i).         “Permitted Residual Indebtedness” means any Indebtedness of Parent or any of its  Subsidiaries under a Residual Funding Facility.         “Permitted Securitization Indebtedness” means Securitization Indebtedness; provided  that in connection with any Securitization, any Permitted Warehouse Indebtedness or Permitted  MSR Indebtedness used to finance the purchase or origination of any receivables or other asset                                         27   

 

     subject to such Securitization is repaid in connection with such Securitization to the extent of the   net proceeds received by Parent and its Subsidiaries from the applicable Securitization Entity.          “Permitted Servicing Advance Facility Indebtedness” means any Indebtedness of   Parent or any of its Subsidiaries incurred under a Servicing Advance Facility.          “Permitted Warehouse Indebtedness” means Indebtedness in connection with a  Warehouse Facility; provided that the amount of any particular Permitted Warehouse   Indebtedness as of any date of determination shall be calculated in accordance with GAAP.          “Person” means and includes natural persons, corporations, limited partnerships, general   partnerships, limited liability companies, limited liability partnerships, joint stock companies,   Joint Ventures, associations, companies, trusts, banks, trust companies, land trusts, business  trusts or other organizations, whether or not legal entities, and Governmental Authorities.         “Platform” has the meaning specified in Section 10.15(b).         “Prepayment Notice” has the meaning specified in Section 2.9(a).         “Principal Office” means, with respect to the Administrative Agent, such Person’s  “Principal Office” or account as set forth on Schedule 1.1(b), or such other office account or   office account of a third party or sub-agent, as appropriate, as such Person may from time to time   designate in writing to Parent, the Administrative Agent and each Lender.          “Pro Rata Share” means (i) with respect to all payments, computations and other   matters relating to the Effective Date Term Loan Commitment or the Effective Date Term Loan   of any Lender, the percentage obtained by dividing (a) the Effective Date Term Loan Exposure   of that Lender by (b) the aggregate Effective Date Term Loan Exposure of all Lenders; (ii) with   respect to all payments, computations and other matters relating to the Second Draw Term Loan   Commitment or the Second Draw Term Loan of any Lender, the percentage obtained by dividing   (a) the Second Draw Term Loan Exposure of that Lender by (b) the aggregate Second Draw   Term Loan Exposure of all Lenders and (iii) with respect to all payments, computations, and   other matters relating to New Term Loan Commitments or New Term Loans of a particular   Series, the percentage obtained by dividing (a) the New Term Loan Exposure of that Lender with   respect to that Series by (b) the aggregate New Term Loan Exposure of all Lenders with respect   to that Series. For all other purposes with respect to each Lender, “Pro Rata Share” means the   percentage obtained by dividing (A) an amount equal to the sum of the aggregate Effective Date   Term Loan Exposure, Second Draw Term Loan Exposure and New Term Loan Exposure of that   Lender, by (B) an amount equal to the sum of the aggregate Effective Date Term Loan Exposure,   the aggregate Second Draw Term Loan Exposure and the aggregate New Term Loan Exposure   of all Lenders.          “Public Lender” has the meaning specified in Section 10.15(b).          “Qualified Equity Interest” means any Equity Interest that is not a Disqualified Equity   Interest.                                           28    

 

           “Refinance” means, in respect of any security or Indebtedness, to refinance, extend,   renew, replace or refund (including pursuant to any defeasance, covenant defeasance or   satisfaction, discharge or similar mechanism), or to issue a security or incur new Indebtedness in   exchange or replacement for such security or Indebtedness in whole or in part. “Refinanced”   and “Refinancing” shall have correlative meanings.          “Refinancing Indebtedness” means Indebtedness of Parent or any Subsidiary of Parent   that Refinances any other Indebtedness of Parent or any Subsidiary of Parent incurred or   outstanding in accordance with Section 6.1 (other than Indebtedness incurred or outstanding   under clauses (a)(i), (b), (c), (e), (f), (i), (j), (k), (l) and (m) of Section 6.1), including, without   limitation, Indebtedness that Refinances Refinancing Indebtedness; provided, however, that:          (1)   such Refinancing Indebtedness has an aggregate principal amount (or if incurred   with original issue discount, an aggregate issue price) that is equal to or less than the sum of the   aggregate principal amount (or, if incurred with original issue discount, the aggregate accreted   value) of the Indebtedness being Refinanced plus, without duplication, any additional   Indebtedness incurred to pay interest or dividends thereon and the amount of any premium  (including tender premium), defeasance costs and any fees and expenses incurred in connection  with such Refinancing;         (2)    such Refinancing Indebtedness has a Weighted Average Life to Maturity at the  time such Refinancing Indebtedness is incurred that is equal to or greater than the Weighted  Average Life to Maturity of the Indebtedness being Refinanced at such time; and         (3)    (a) if the final stated maturity of the Indebtedness being Refinanced is earlier than  the latest applicable Maturity Date, the Refinancing Indebtedness has a final stated maturity no  earlier than the final stated maturity of the Indebtedness being Refinanced or (b) if the final  stated maturity of the Indebtedness being Refinanced is on or later than the latest applicable  Maturity Date, the Refinancing Indebtedness has a final stated maturity at least 91 days later than  the latest applicable Maturity Date;         provided that if such Indebtedness being Refinanced is subordinate to the Obligations in   right of payment or priority of Liens pursuant to the terms of any instrument, contract or   agreement evidencing such Indebtedness being Refinanced or under which such Indebtedness   shall have been incurred, then such Refinancing Indebtedness shall be subordinate to the   Obligations at least to the same extent as provided in the documentation governing the   Indebtedness being Refinanced.  For purposes of clarity, it is understood and agreed that   (x) whether any particular item of Indebtedness is outstanding under any of the clauses of   Section 6.1 shall be determined after giving effect to any classification or reclassification of   Indebtedness by Parent pursuant to the paragraph immediately following Section 6.1 and (y) if   the terms of any Indebtedness being Refinanced provide that the final stated maturity thereof   may be extended, whether at the option of the borrower or otherwise, the final stated maturity of   such Indebtedness shall be determined, for purposes of this definition, without giving effect to   any such extension unless such extension is in effect at the time of such Refinancing.          “Register” has the meaning specified in Section 2.4(b).                                          29    

 

           “Regulation D” means Regulation D of the Board of Governors, as in effect from time to  time.         “Regulation T” means Regulation T of the Board of Governors, as in effect from time to  time.         “Regulation U” means Regulation U of the Board of Governors, as in effect from time to  time.         “Regulation X” means Regulation X of the Board of Governors, as in effect from time to  time.         “REIT” means a real estate investment trust as defined in Sections 856-860 of the  Internal Revenue Code (and any corresponding provisions of state or local law).         “Related Fund” means, with respect to any Lender that is an investment fund, any other  investment fund that invests in commercial loans and that is managed or advised by the same  investment advisor as such Lender or by an Affiliate of such investment advisor.         “Related Party” means, with respect to any specified Person, such Person’s Affiliates  and the respective directors, trustees, officers, employees, agents, representatives and advisors of  such Person and such Person’s Affiliates.         “Release” means any release, spill, emission, leaking, pumping, pouring, injection,  escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any  Hazardous Material into the indoor or outdoor environment (including the abandonment or  disposal of any barrels, containers or other closed receptacles containing any Hazardous  Material), including the movement of any Hazardous Material through the air, soil, surface water  or groundwater.         “REO Assets” of a Person means any real property owned by such Person and acquired  (i) as a result of the foreclosure or other enforcement of a lien on such asset securing a loan,  Servicing Advance or other mortgage-related receivables or (ii) from some other Person,   including a Securitization Entity.          “Replacement Lender” has the meaning specified in Section 2.19.          “Required Lenders” means Lenders holding Effective Date Term Loan Exposure plus   Second Draw Term Loan Exposure plus New Term Loan Exposure representing more than 50%   of the sum of (i) the aggregate Effective Date Term Loan Exposure of all Lenders, (ii) the   aggregate Second Draw Term Loan Exposure of all Lenders and (iii) the aggregate New Term   Loan Exposure of all Lenders; provided that the loans of an Affiliated Lender or a Debt Fund   Affiliate shall be excluded for purposes of making a determination of Required Lenders to the   extent set forth in Section 10.5(f) or (g), as applicable.          “Residual Funding Facility” means any funding arrangement with a financial institution   or institutions or other lenders or purchasers under which advances are made to Parent or any   Subsidiary secured by Residual Interests.                                          30    

 

           “Residual Interests” means any residual, subordinated, reserve accounts and retained   ownership interest held by Parent or a Subsidiary in any Securitization Entity, Warehouse   Facility Trust or MSR Facility Trust, regardless of whether required to appear on the face of the   consolidated financial statements in accordance with GAAP.         “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK   Financial Institution, a UK Resolution Authority.          “Restricted Subsidiary” means, collectively, the Subsidiary Guarantors and each other   Person listed on Schedule 1.1(e), and the permitted successors and assigns of each such person,   together with each other direct Subsidiary of Parent formed or acquired after the Effective Date.   Parent will promptly notify the Administrative Agent of any new Restricted Subsidiary.          “S&P” has the meaning specified in the definition of “Cash Equivalents”.          “Sanctions” means any economic or financial sanctions or trade embargos administered,   imposed or enforced by (a) the United States Government, including, without limitation, OFAC,   and the United States Department of State, (b) the United Nations Security Council, (c) the   European Union, (d) Her Majesty’s Treasury (“HMT”), or (e) any European Union member   state.          “Sanctioned Person” has the meaning specified in Section 4.17(a).           “SEC” means the United States Securities and Exchange Commission and any successor   Governmental Authority performing a similar function.          “Second Draw Date” means May 27, 2020, or such earlier date as may be agreed   between Parent and the Lenders holding Second Draw Term Loan Commitments..          “Second Draw Term Loan Commitment” means the commitment of a Lender to make   or otherwise fund a Second Draw Term Loan and “Second Draw Term Loan Commitments”   means such commitments of all Lenders in the aggregate. The amount of each Lender’s Second   Draw Term Loan Commitment, if any, is set forth on Schedule 1.1(a) under the column “Second   Draw Term Loan Commitment” or in the applicable Assignment Agreement, subject to any   adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of   the Second Draw Term Loan Commitments as of the Effective Date is $290,000,000.          “Second Draw Term Loan Exposure” means, with respect to any Lender, as of any date  of determination, the outstanding principal amount of the Second Draw Term Loan Commitment   or, after the funding thereof, the Second Draw Term Loans of such Lender.          “Second Draw Term Loans” means the term loans made by the Lenders on the Second   Draw Date to Parent pursuant to Section 2.1(a)(ii).         “Secured Parties” has the meaning specified in the Security Agreement.          “Securities” means any stock, shares, partnership interests, voting trust certificates,   certificates of interest or participation in any profit-sharing agreement or arrangement, options,                                          31    

 

     warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,   convertible, subordinated or otherwise, or in general any instruments commonly known as   “securities” (including mortgage-backed securities) or any certificates of interest, shares or   participations in temporary or interim certificates for the purchase or acquisition of, or any right   to subscribe to, purchase or acquire, any of the foregoing.          “Securities Act” means the Securities Act of 1933, as amended from time to time, and   any successor statute.          “Securitization” means a public or private transfer, sale or financing of Servicing   Advances, MSRs, mortgage loans, mortgage-backed securities, installment contracts, other   loans, accounts receivable, real estate assets, mortgage receivables and any other assets capable   of being securitized (collectively, “Securitization Assets”) by which Parent or any of its  Subsidiaries directly or indirectly securitizes or finances a pool of specified Securitization Assets  or incurs Non-Recourse Indebtedness secured by specified Securitization Assets, including any  such transaction involving the sale of specified Securitization Assets to a Securitization Entity.          “Securitization Assets” has the meaning set forth in the definition of “Securitization”.          “Securitization Entity” means (i) any Person established for the purpose of issuing   asset-backed or mortgage-backed or mortgage pass-through securities of any kind (including   collateralized mortgage obligations and net interest margin securities) or other similar securities;   (ii) any special-purpose Subsidiary established for the purpose of selling, depositing or   contributing Securitization Assets into a Person described in clause (i) or for the purpose of   holding Equity Interests of, or securities issued by, any related Securitization Entity, regardless   of whether such special-purpose Subsidiary is an issuer of securities; provided that such   special-purpose Subsidiary described in this clause (ii) is not an obligor with respect to any   Indebtedness of Parent or any Subsidiary Guarantor; (iii) any Person established for the purpose   of holding Securitization Assets and issuing Non-Recourse Indebtedness secured by such   Securitization Assets; (iv) any special purpose Subsidiary formed exclusively for the purpose of   satisfying the requirements of Credit Enhancement Agreements (including, without limitation,   any Subsidiary that is established for the purpose of owning another Securitization Entity and   pledging the equity of that other Securitization Entity as security for the Indebtedness of such   other Securitization Entity) and regardless of whether such Subsidiary is an issuer of securities,   provided that such special-purpose Subsidiary is not an obligor with respect to any Indebtedness   of Parent or any Subsidiary Guarantor other than under Credit Enhancement Agreements; and   (v) any other Subsidiary which is established for the purpose of (x) acting as sponsor for and   organizing and initiating Securitizations or (y) facilitating or entering into a Securitization, in   each case that engages in activities reasonably related or incidental thereto and that is not an   obligor or guarantor with respect to any Indebtedness of Parent. Whether or not a Person is a   Securitization Entity shall be determined in good faith by Parent.  In no event shall any   Unencumbered Asset Equity Pledge Subsidiary be a Securitization Entity.          “Securitization Indebtedness” means (i) Indebtedness of Parent or any of its   Subsidiaries incurred pursuant to on-balance sheet Securitizations treated as financings and (ii)   any Indebtedness consisting of advances made to Parent or any of its Subsidiaries based upon                                          32    

 

     bonds, debentures, notes, certificates or other securities issued by a Securitization Entity   pursuant to a Securitization and acquired or retained by Parent or any of its Subsidiaries.          “Securitization Repurchase Obligation” means any obligation of a seller of   Securitization Assets in a Securitization to repurchase Securitization Assets, or to make a   payment in respect thereof, arising as a result of a breach of a representation, warranty or   covenant or otherwise, including, without limitation, as a result of a receivable or portion thereof   becoming subject to any asserted defense, dispute, offset or counterclaim of any kind as a result   of any action taken by, any failure to take action by or any other event relating to the seller.          “Security Agreement” means the Pledge and Security Agreement executed by Parent   and each Subsidiary Guarantor dated as of the date hereof, as it may be amended, restated,   supplemented or otherwise modified from time to time.          “Security Documents” means the Security Agreement and all other instruments,   documents and agreements delivered by any Loan Party pursuant to this Agreement or any of the   other Loan Documents in order to grant to the Collateral Agent, for the benefit of Secured   Parties, a first priority Lien on the Collateral and subject to no other Liens (other than Permitted   Liens) as security for the Obligations.          “Series” has the meaning specified in Section 2.20(a).          “Servicing Advance Entity” means (a) as of the Effective Date, each Subsidiary listed   on Schedule 1.1(c) and any Subsidiary that owns any Equity Interests of any Subsidiary listed on   Schedule 1.1(c) from time to time and (b) any Subsidiary that, after the Effective Date, enters   into any transactions and performs any functions similar to those entered into or performed by   the Subsidiaries listed on Schedule 1.1(c) on the Effective Date and any Subsidiary that owns   any Equity Interests of any Subsidiary referred to in this clause (b) from time to time and, in each   case, their successors and assigns. In no event shall an Unencumbered Asset Equity Pledge   Subsidiary be a Servicing Advance Entity.          “Servicing Advance Facility” means any funding arrangement with banks, lenders,   investors or other Persons collateralized in whole or in part by Servicing Advances or, to the   extent permitted by Section 6.14, the Equity Interests of any Servicing Advance Entity, under   which advances are made to Parent or any of its Subsidiaries based on such collateral.         “Servicing Advances” means advances made by Parent or any of its Subsidiaries in its  capacity as servicer of any mortgage-related receivables to fund principal, interest, escrow,   foreclosure, insurance, tax or other payments or advances when the borrower on the underlying   receivable is delinquent in making payments on such receivable; to enforce remedies; or to   manage and liquidate REO Assets; or that Parent or any of its Subsidiaries otherwise advances in   its capacity as servicer.          “Servicing Agreements” means any servicing agreements (including whole loan   servicing agreements for portfolios of whole mortgage loans), pooling and servicing agreements,   interim servicing agreements and other servicing agreements, and any other agreement governing   the rights, duties and obligations of Parent or any of its Subsidiaries, including the Fannie Mae   and Freddie Mac servicing guide, as a servicer, under such servicing agreements (including, for                                         33    

 

     the avoidance of doubt, any agreements related to primary servicing, sub-servicing, special   servicing and master servicing).          “Solvency Certificate” means a Solvency Certificate of the chief financial officer of   Parent substantially in the form of Exhibit F-2.          “Solvent” means, with respect to any Loan Party, that as of the date of determination,  both (i) (a) the sum of such Loan Party’s debt (including contingent liabilities) does not exceed  the present fair saleable value of such Loan Party’s present assets; (b) such Loan Party’s capital   is not unreasonably small in relation to its business as contemplated on the Effective Date or with   respect to any transaction contemplated to be undertaken after the Effective Date; and (c) such   Person has not incurred and does not intend to incur, or believe (nor should it reasonably believe)  that it shall incur, debts beyond its ability to pay such debts as they become due (whether at   maturity or otherwise); and (ii) such Person is “solvent” within the meaning given that term and   similar terms under the Bankruptcy Code and applicable laws relating to fraudulent transfers and   conveyances. For purposes of this definition, the amount of any contingent liability at any time   shall be computed as the amount that, in light of all of the facts and circumstances existing at   such time, represents the amount that can reasonably be expected to become an actual or matured   liability (irrespective of whether such contingent liabilities meet the criteria for accrual under   Statement of Financial Accounting Standard No. 5).          “Specified Government Entities” means the Federal Housing Administration, Veterans   Administration, Ginnie Mae, Fannie Mae, Freddie Mac or other similar governmental agencies   or government sponsored programs.          “Standard Recourse Undertakings” means, with respect to any Securitization or   Indebtedness, (a) such representations, warranties, covenants and indemnities which are   customarily (as determined by Parent in good faith) made by sellers of financial assets or other   Securitization Assets or an Affiliate of such sellers, including, without limitation, Securitization   Repurchase Obligations, and (b) such customary (as determined by Parent in good faith)   carve-out or other matters for which Parent or any of its Subsidiaries acts as an indemnitor or   guarantor in connection with any such Securitization or Indebtedness, such as fraud,   misappropriation and misapplication of funds, misrepresentation, criminal acts, repurchase   obligations for breach of representations or warranties, environmental indemnities, insolvency   events, misstatement or omission with respect to transaction offering documents or marketing   materials, indemnification of transaction parties, non-approved transfers and other similar   undertakings which Parent determines in good faith to constitute standard undertakings   customarily provided by sellers of financial assets or an Affiliate of such sellers or consistent   with past practice of Parent.          “Subsidiary” means, with respect to any Person, any corporation, partnership, limited   liability company, association, joint venture or other business entity of which more than 50.0%   of the total voting power of shares of stock or other ownership interests entitled (without regard   to the occurrence of any contingency) to vote in the election of the Person or Persons (whether   directors, managers, trustees or other Persons performing similar functions) having the power to   direct or cause the direction of the management and policies thereof is at the time owned or   controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that                                          34    

 

     Person or a combination thereof; provided that in determining the percentage of ownership   interests of any Person controlled by another Person, no ownership interest in the nature of a   “qualifying share” of the former Person shall be deemed to be outstanding.          “Subsidiary Guarantor” means each person listed on Schedule 1.1(d) and each other   person that becomes party to this Agreement as a Subsidiary Guarantor in accordance with   Section 5.9, and the permitted successors and assigns of each such person.         “Tangible Book Value” means, as of any date of determination, (a) consolidated  stockholders’ equity of Parent and its Subsidiaries, minus (b) consolidated intangible assets   (including goodwill) of Parent and its Subsidiaries, in each case determined in accordance with   GAAP as of the last day of the month most recently ended prior to such date for which financial   statements of Parent have been delivered pursuant to Section 5.1(a). For the avoidance of doubt,   “stockholders’ equity” includes both common and preferred equity.          “Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee,   deduction or withholding imposed by any Governmental Authority and any related interest,   penalties and additions to tax.          “Tax Treatment” has the meaning specified in Section 2.16(i).          “Terminated Lender” has the meaning specified in Section 2.19.          “UCC” means the Uniform Commercial Code enacted in the State of New York, as   amended from time to time; provided that if by reason of mandatory provisions of law, the   perfection, the effect of perfection or non-perfection or priority of, or remedies with respect to a   security interest is governed by the Uniform Commercial Code or other personal property   security laws of any jurisdiction other than the State of New York, “UCC” shall mean the   Uniform Commercial Code or other personal property security laws as in effect in such other   jurisdiction solely for the purposes of the provisions hereof relating to such perfection, priority or   remedies and for the definitions related to such provisions.          “UK Financial Institution” means any BRRD Undertaking (as such term is defined   under the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom   Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook   (as amended from time to time) promulgated by the United Kingdom Financial Conduct   Authority, which includes certain credit institutions and investment firms, and certain affiliates   of such credit institutions or investment firms.          “UK Resolution Authority” means the Bank of England or any other public   administrative authority having responsibility for the resolution of any UK Financial Institution.          “Unencumbered Asset Equity Pledge Subsidiary” means each Unencumbered Asset   (Long Term) Equity Pledge Subsidiary and each Unencumbered Asset (Short Term) Equity   Pledge Subsidiary,                                           35    

 

           “Unencumbered Asset (Long Term) Equity Pledge Subsidiary” means each  Subsidiary listed on Schedule 1.1(f) and the permitted successors and assigns of each such   person.           “Unencumbered Asset (Short Term) Equity Pledge Subsidiary” means each   Subsidiary listed on Schedule 1.1(g) and the permitted successors and assigns of each such   person.           “U.S. Tax Compliance Certificate” has the meaning specified in Section 2.16(c).          “Warehouse Facility” means any financing arrangement of any kind, including, but not  limited to, financing arrangements in the form of repurchase facilities, loan agreements, note  issuance facilities and commercial paper facilities (excluding in all cases, any Securitization),  with a financial institution or other lender or purchaser exclusively to (i) finance or refinance the  purchase, investment in or funding by Parent or a Subsidiary of Parent of, provide funding to  Parent or a Subsidiary of Parent through the transfer of, loans, mortgage related securities and   other mortgage-related receivables purchased or invested in by Parent or any Subsidiary of   Parent in the ordinary course of business; (ii) finance or refinance the purchase, investment in or   funding by Parent or a Subsidiary of Parent of, provide funding to Parent or a Subsidiary of   Parent through the transfer of, loans, consumer loan-related securities and other consumer loan-  related receivables purchased or invested in by Parent or any Subsidiary of Parent in the ordinary   course of business; (iii) finance the funding of or refinance Servicing Advances; or (iv) finance   or refinance the carrying of REO Assets related to loans and other mortgage-related receivables   purchased or invested in by Parent or any Subsidiary of Parent; provided that such purchase,   investment, pooling, funding, refinancing and carrying is in the ordinary course of business.         “Warehouse Facility Trusts” means any Person (whether or not a Subsidiary of Parent)  established for the purpose of issuing notes or other securities in connection with a Warehouse   Facility, which (i) notes and securities are backed by specified Servicing Advances purchased by   such Person from Parent or any Subsidiary, or (ii) notes and securities are backed by specified   mortgage loans purchased by such Person from Parent or any Subsidiary.          “Warrants” means the warrants entitling the holders thereof to purchase an aggregate of   43,441,606 shares of Common Stock (or such greater number to the extent provided in the   Warrant) to be delivered to, and registered in the name of, the Lenders on the Effective Date or   the Second Draw Date, as applicable.          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any   date, the number of years obtained by dividing: (i) the product obtained by multiplying (y) the   amount of each then remaining installment, sinking fund, serial maturity or other required   payments of principal, including payment at final maturity, in respect thereof, by (z) the number   of years (calculated to the nearest one-twelfth) that will elapse between such date and the making   of such payment; by (ii) the then outstanding principal amount of such Indebtedness.          “Wholly-Owned Subsidiary” means, with respect to any Person, any other Person all of   the Equity Interest of which (other than (x) directors’ qualifying shares required by law and (y)                                           36    

 

     shares issued to foreign nationals to the extent required by applicable law) is owned by such   Person directly and/or through other Wholly-Owned Subsidiaries.          “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution   Authority, the write-down and conversion powers of such EEA Resolution Authority from time   to time under the Bail-In Legislation for the applicable EEA Member Country, which write- down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with  respect to the United Kingdom, any powers of the applicable Resolution Authority under the  Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK  Financial Institution or any contract or instrument under which that liability arises, to convert all  or part of that liability into shares, securities or obligations of that person or any other person, to  provide that any such contract or instrument is to have effect as if a right had been exercised  under it or to suspend any obligation in respect of that liability or any of the powers under that  Bail-In Legislation that are related to or ancillary to any of those powers.         Section 1.2 Accounting Terms. Except as otherwise expressly provided herein, all   accounting terms not otherwise defined herein shall have the meanings assigned to them in   conformity with GAAP. Financial statements and other information required to be delivered by  Parent to Lenders pursuant to Sections 5.1(a), 5.1(b) and 5.1(c) shall be prepared in accordance   with GAAP as in effect at the time of such preparation; provided that, if Parent notifies the   Administrative Agent that Parent requests an amendment to any provision hereof to eliminate the   effect of a change occurring after the Effective Date in GAAP or in the application thereof on the   operation of such provision, regardless of whether any such notice is given before or after such  change in GAAP or in the application thereof, then such provision shall be interpreted on the   basis of GAAP as in effect and applied immediately before such change shall have become   effective until such notice shall have been withdrawn or such provision amended in accordance   with this Agreement. Notwithstanding anything to the contrary in this Agreement or any other   Loan Document, (a) the adoption of ASU 2016-02 shall be ignored for purposes of this   Agreement such that (i) Capitalized Lease Obligations shall specifically exclude any operating   lease liabilities (regardless of whether such operating leases were in effect on the date ASU   2016-02 was adopted or were entered into thereafter or after the Effective Date) under GAAP as   in effect immediately prior to the adoption of ASU 2016-02 and (ii) related operating lease assets   shall similarly not be considered Capitalized Lease Obligations and continue to be treated as   operating lease assets, and (b) if at any time the obligations of any Person in respect of an   operating lease are otherwise required to be characterized or recharacterized as capital or finance   lease obligations as a result of a change in GAAP after the Effective Date, then for purposes   hereof such person’s obligations under such operating lease shall not, notwithstanding such   characterization or recharacterization, be deemed Capitalized Lease Obligations.          Section 1.3 Interpretation, Etc. Any of the terms defined herein may, unless the   context otherwise requires, be used in the singular or the plural, depending on the reference.   References herein to any Article, Section, Schedule or Exhibit shall be to an Article, a Section, a   Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. The   use herein of the word “include” or “including,” when following any general statement, term or   matter, shall not be construed to limit such statement, term or matter to the specific items or   matters set forth immediately following such word or to similar items or matters, whether or not   non-limiting language (such as “without limitation” or “but not limited to” or words of similar                                          37    

 

     import) is used with reference thereto, but rather shall be deemed to refer to all other items or   matters that fall within the broadest possible scope of such general statement, term or matter. The   words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to   this Agreement as a whole and not to any particular provision of this Agreement. The word  “will” shall be construed to have the same meaning and effect as the word “shall”; and the words  “asset” and “property” shall be construed as having the same meaning and effect and to refer to  any and all tangible and intangible assets and properties, including cash, securities, accounts and  contract rights. The terms lease and license shall include sub-lease and sub-license, as applicable.  Whenever the context may require, any pronoun shall include the corresponding masculine,  feminine and neuter forms. Except as otherwise expressly provided herein or therein, any  reference in this Agreement or any other Loan Document to any agreement, document or  instrument shall mean such agreement, document or instrument as amended, restated,  supplemented or otherwise modified from time to time, in each case, in accordance with the  express terms of this Agreement or such Loan Document.         Section 1.4 Timing of Payment or Performance.  Except as otherwise expressly   provided herein, when the payment of any obligation or the performance of any covenant, duty   or obligation is stated to be due or performance required on a day which is not a Business Day,   the date of such payment or performance shall extend to the immediately succeeding Business   Day (other than with respect to the applicable Maturity Date, which such payment or   performance shall be required on the immediately preceding Business Day).                                     ARTICLE II                                                                            THE FACILITY          Section 2.1 Term Loan Facility.                (a)   Commitments.                    (i)     Subject to the terms and conditions hereof, each Lender severally         agrees to make on the Effective Date an Effective Date Term Loan to Parent in an         amount equal to such Lender’s Pro Rata Share relative to the total amount of Borrowings         specified in the Borrowing Notice with respect thereto, up to the amount of such Lender’s         Effective Date Term Loan Commitment.                    (ii)     Subject to the terms hereof, each Lender with a Second Draw Term         Loan Commitment severally agrees to make on the Second Draw Date a Second Draw         Term Loan to Parent in an amount equal to such Lender’s Second Draw Term Loan         Commitment.                   (iii)    Any amount borrowed under this Section 2.1(a) and subsequently         repaid or prepaid may not be reborrowed. Subject to Sections 2.9(a) and 2.10, all amounts         owed hereunder with respect to the Initial Term Loans shall be paid in full no later than         the Initial Term Loan Maturity Date. Each Lender’s Effective Date Term Loan         Commitment shall terminate immediately and without further action to the extent not         drawn on the Effective Date, and each Lender’s Second Draw Term Loan Commitment                                          38    

 

                 shall terminate immediately and without further action to the extent not drawn on the   Second Draw Date. The aggregate amount of Effective Date Term Loans requested in the   Borrowing Notice on the Effective Date shall not exceed the aggregate amount of   Effective Date Term Loan Commitments, and the aggregate amount of Second Draw   Term Loans requested in the Borrowing Notice on the Second Draw Date shall not  exceed the aggregate amount of Second Draw Term Loan Commitments.             (iv)    Subject to the terms and conditions hereof, each New Term Loan  Lender having a New Term Loan Commitment severally agrees to make on the  applicable Increased Amount Date a New Term Loan to Parent, in an aggregate principal  amount not to exceed its New Term Loan Commitment and otherwise on the terms and   subject to the conditions set forth in any Joinder Agreement to which such New Term   Loan Lender may become a party.          (b)   Borrowing Mechanics.              (i)     Parent shall deliver to the Administrative Agent a fully executed   Borrowing Notice with respect to the Effective Date Term Loans no later than 11:00 a.m.  (New York City time), one (1) Business Day prior to the Effective Date or on such  shorter notice as to which the Administrative Agent reasonably agrees. Promptly upon   receipt by the Administrative Agent of such Borrowing Notice, the Administrative Agent   shall notify each Lender of the proposed Borrowing.             (ii)     No Borrowing Notice shall be required with respect to the Second   Draw Term Loans.  Each Lender with a Second Draw Term Loan Commitment hereby   agrees to make the Second Draw Term Loans on the Second Draw Date without any   requirement for further notice or satisfaction of any conditions precedent.             (iii)    Each Lender shall make its Effective Date Term Loan available to   the Administrative Agent in an amount based on its Pro Rata Share of Borrowings under   the Borrowing Notice in accordance with Section 2.2 not later than 12:00 p.m. (New   York City time) on the Effective Date, by wire transfer of same day funds in Dollars, to   the Principal Office designated by the Administrative Agent. Upon receipt of all   requested funds and satisfaction or waiver of the conditions precedent specified herein,   the Administrative Agent shall make the proceeds of the Effective Date Term Loans   available to Parent on the Effective Date by causing an amount of same day funds in   Dollars equal to the proceeds of all such Loans received by the Administrative Agent   from Lenders to be credited by wire transfer to the account of Parent as may be   designated in writing to the Administrative Agent by Parent.             (iv)     Each Lender shall make its Second Draw Term Loan available to   the Administrative Agent in an amount based on its Second Draw Term Loan   Commitment in not later than 12:00 p.m. (New York City time) on the Second Draw   Date, by wire transfer of same day funds in Dollars, to the Principal Office designated by   the Administrative Agent. Upon receipt of all requested funds, the Administrative Agent   shall make the proceeds of the Second Draw Term Loans available to Parent on the   Second Draw Date by causing an amount of same day funds in Dollars equal to the                                    39                

 

           proceeds of all such Loans received by the Administrative Agent from Lenders to be         credited by wire transfer to the account of Parent as may be designated in writing to the         Administrative Agent by Parent.                   (v)     Each New Term Loan Lender shall make its New Term Loan        available to the Administrative Agent in an amount based on its Pro Rata Share of        Borrowings under the Borrowing Notice in accordance with Section 2.2 not later than        12:00 p.m. (New York City time) on the applicable Increased Amount Date, by wire        transfer of same day funds in Dollars, at the Principal Office designated by the         Administrative Agent. Upon receipt of all requested funds and satisfaction or waiver of         the conditions precedent specified herein, the Administrative Agent shall make the         proceeds of the New Term Loans available to Parent on such Increased Amount Date by         causing an amount of same day funds in Dollars equal to the proceeds of all such Loans         received by the Administrative Agent from the New Term Loan Lenders to be credited by         wire transfer to the account of Parent as may be designated in writing to the         Administrative Agent by Parent.          Section 2.2 Pro Rata Shares; Availability of Funds.                (a)   Pro Rata Shares. All Loans shall be made by Lenders simultaneously and   proportionately to their respective Pro Rata Shares, it being understood that no Lender shall be   responsible for any default by any other Lender in such other Lender’s obligation to make a Loan   requested hereunder nor shall any Commitment of any Lender be increased or decreased as a   result of a default by any other Lender in such other Lender’s obligation to make a Loan   requested hereunder.                (b)   Availability of Funds. Unless the Administrative Agent shall have been   notified in writing by any Lender prior to the Effective Date, Second Draw Date or Increased   Amount Date, as applicable, that such Lender does not intend to make available to the  Administrative Agent the amount of such Lender’s Loan requested on such date, the  Administrative Agent may assume that such Lender has made such amount available to the  Administrative Agent on the Effective Date, Second Draw Date or Increased Amount Date, as  applicable, and the Administrative Agent may, in its sole discretion, but shall not be obligated to,  make available to Parent a corresponding amount on such date. If such corresponding amount is  not in fact made available to the Administrative Agent by such Lender, the Administrative Agent  shall be entitled to recover such corresponding amount on demand from such Lender together  with interest thereon, for each day from the Effective Date, Second Draw Date or Increased  Amount Date, as applicable, until the date such amount is paid to the Administrative Agent, at  the customary rate set by the Administrative Agent for the correction of errors among banks. If  such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s  demand therefor, the Administrative Agent shall promptly notify Parent and Parent shall  immediately pay such corresponding amount to the Administrative Agent together with interest   thereon, for each day from the Effective Date, Second Draw Date or Increased Amount Date, as   applicable, until the date such amount is paid to the Administrative Agent, at the rate payable   hereunder pursuant to Section 2.5(a). Nothing in this Section 2.2(b) shall be deemed to relieve   any Lender from its obligation to fulfill its Commitment hereunder or to prejudice any rights that   Parent may have against any Lender as a result of any default by such Lender hereunder.                                          40    

 

           Section 2.3 Use of Proceeds. The proceeds of the Loans made on the Effective Date   and on the Second Draw Date shall be applied by Parent to (a) repay one or more existing credit   facilities, (b) fund working capital and other general corporate purposes of Parent and its   Subsidiaries and (c) pay fees and expenses incurred in connection with the foregoing.           Section 2.4 Evidence of Debt; Register; Lenders’ Books and Records; Notes.                (a)   Lenders’ Evidence of Debt. Each Lender shall maintain on its internal   records an account or accounts evidencing the Obligations of Parent to such Lender, including   the amounts of the Loans made by it and each repayment and prepayment in respect thereof. Any   such recordation shall be conclusive and binding on Parent, absent manifest error; provided that   the failure to make any such recordation, or any error in such recordation, shall not affect   Parent’s Obligations in respect of any applicable Loans; and provided, further, that in the event   of any inconsistency between the Register and any Lender’s records, the recordations in the  Register shall govern.               (b)   Register. The Administrative Agent (or its agent or sub-agent appointed   by it), acting solely for this purpose as a non-fiduciary agent of Parent, shall maintain at one of   its offices a register for the recordation of the names and addresses of Lenders and the principal   and interest amounts of Loans of each Lender from time to time (the “Register”). The Register   shall be available for inspection by Parent or any Lender (with respect to any entry relating to   such Lender’s Loans) at any reasonable time and from time to time upon reasonable prior written   notice. The Administrative Agent shall record, or shall cause to be recorded, in the Register the   Loans in accordance with the provisions of Section 10.6(f), and each repayment or prepayment   in respect of the principal amount of the Loans (and related interest amounts), and any such   recordation shall be conclusive and binding on Parent and each Lender, absent manifest error.   Parent, the Administrative Agent and Lenders shall treat the Persons listed as Lenders in the   Register as the holders and owners of the corresponding Commitments and Loans listed therein   for all purposes hereof (notwithstanding notice to the contrary), and no assignment or transfer of   any such Commitment or Loan shall be effective, in each case, unless and until recorded in the   Register following receipt of a fully executed Assignment Agreement effecting the assignment or   transfer thereof, together with the required forms and certificates regarding tax matters and any   fees payable in connection with such assignment, in each case, as provided in Section 10.6(c).   The date of such recordation of a transfer shall be referred to herein as the “Assignment   Effective Date”. Any request, authority or consent of any Person who, at the time of making   such request or giving such authority or consent, is listed in the Register as a Lender shall be   conclusive and binding on any subsequent holder, assignee or transferee of the corresponding   Commitments or Loans.                (c)   Notes. If so requested by any Lender by written notice to Parent (with a   copy to the Administrative Agent) prior to the Effective Date, the Second Draw Date or the  Increased Amount Date, as applicable, or at any time thereafter, Parent shall execute and deliver   to such Lender (and/or, if applicable and if so specified in such notice, to any Person who is an   assignee of such Lender pursuant to Section 10.6) on the Effective Date, the Second Draw Date   or the Increased Amount Date, as applicable (or, if such notice is delivered after such date,   promptly after Parent’s receipt of such notice) a Note or Notes to evidence such Lender’s Loan.                                          41    

 

           Section 2.5 Interest.                (a)   Except as otherwise set forth herein, each Initial Term Loan shall bear   interest on the unpaid principal amount thereof from the date made through repayment (whether   by acceleration or otherwise) thereof at a rate per annum equal to 11.0%.                (b)   Interest payable pursuant to Section 2.5(a) shall be computed on the basis   of a 365-day year (or a 366-day year, as applicable) for the actual number of days elapsed in the   period during which it accrues. In computing interest on any Loan, the initial date the Loan is   made and thereafter the last Payment Date with respect to such Loan shall be included, and the   date of payment of such Loan or interest applicable to such Loan, as the case may be, shall be   excluded; provided that if a Loan is repaid on the same day on which it is made, one day’s   interest shall be paid on that Loan.                (c)   Except as otherwise set forth herein, interest on each Loan (i) shall accrue   on a daily basis and shall be payable in arrears on each Payment Date with respect to interest   accrued on and to each such Payment Date; (ii) shall accrue on a daily basis and shall be payable   in arrears upon any prepayment of such Loan, whether voluntary or mandatory, to the extent   accrued on the amount being prepaid; and (iii) shall accrue on a daily basis and shall be payable   in arrears at maturity of such Loan, including final maturity of such Loan.          Section 2.6 Exercise of Warrants.  For so long as any Lender is the holder of a   Warrant and Loans in a principal amount exceeding the aggregate Exercise Price of such   Warrant, such Lender may pay the Exercise Price of such Warrant, at its election, by a reduction   in the principal amount of the Loans held by such Lender. Such Lender shall provide Parent and  the Administrative Agent with notice of any such reduction in the principal amount of the Loans  held by such Lender in connection with  the exercise of such Warrant, and the Administrative  Agent shall record, or shall cause to be recorded, in the Register such reduction.           Section 2.7 Default Interest. Upon the occurrence and during the continuance of an   Event of Default, the principal amount of all Loans outstanding and, to the extent permitted by   applicable law, any interest payments on the Loans or any fees or other amounts owed hereunder   that, in either case, are then overdue, shall thereafter bear interest (including post-petition interest   in any proceeding under the Bankruptcy Code or other applicable bankruptcy laws or any other  act or law pertaining to insolvency or debtor relief, whether state, federal or foreign) payable on  demand by the Administrative Agent at a rate (the “Default Rate”) that is 2.00% per annum in  excess of the interest rate otherwise payable hereunder with respect to the applicable Loans.  Payment or acceptance of the increased rates of interest provided for in this Section 2.7 is not a  permitted alternative to timely payment and shall not constitute a waiver of any such Event of  Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any  Lender.         Section 2.8 Payments. The principal amount of the Initial Term Loans shall be repaid   in consecutive quarterly installments (each, an “Installment”) on each Payment Date,   commencing March 31, 2021, in an amount equal to 0.25% of the outstanding principal amount   of the Initial Term Loans, and the balance of the Initial Term Loans shall be repaid at the Initial   Term Loan Maturity Date. In the event any New Term Loans are made, such New Term Loans                                          42    

 

     shall be repaid after the applicable Increased Amount Date based on an amortization schedule, if   any, determined by Parent and the applicable holders of the New Term Loans.          Notwithstanding the foregoing, (x) such amounts owed hereunder shall be reduced in   connection with any voluntary or mandatory prepayments of the Loans, in accordance with   Sections 2.9, 2.10 and 2.11, as applicable; and (y) the Loans, together with all other amounts   owed hereunder with respect thereto, shall, in any event, be paid in full no later than the   applicable Maturity Date.          Section 2.9 Voluntary Prepayments.                (a)   Subject to Section 2.9(b), Parent may, upon written notice to the  Administrative Agent (a “Prepayment Notice”), at any time and from time to time on any  Business Day voluntarily prepay the Loans in whole or in part, in an aggregate minimum  principal amount of $1,000,000 and integral multiples of $250,000 in excess of that amount.               (b)   All such prepayments shall be made upon not less than one (1) Business  Day’s prior written notice (or such shorter period as agreed by the Administrative Agent) in the  form of a written Prepayment Notice and given to the Administrative Agent by 12:00 noon (New  York City time) on the date required (and the Administrative Agent shall promptly notify each  Lender of such Prepayment Notice and the amount of each Lender’s ratable share of such  prepayment). Upon the giving of any such Prepayment Notice, the principal amount of the Loans  specified in such notice shall become due and payable on the prepayment date specified therein;  provided that a Prepayment Notice may state that such notice is conditioned upon the   effectiveness of another credit facility or the closing of a securities offering or other transaction,   in which case such notice may be revoked by written notice to the Administrative Agent on or   prior to the specified prepayment date if such condition is not satisfied. Any such voluntary   prepayment shall be applied as specified in Section 2.11.          Section 2.10 Mandatory Prepayment.                (a)   Issuance or Incurrence of Debt.                     (i)     On the date of receipt by Parent, any other Loan Party or any of        their respective Restricted Subsidiaries of any Net Cash Proceeds from the issuance or        incurrence of any Indebtedness of Parent, any other Loan Party or any of their respective        Restricted Subsidiaries (other than with respect to any Indebtedness permitted to be        incurred pursuant to Section 6.1), Parent shall prepay the Loans in an aggregate amount        equal to 100% of such Net Cash Proceeds.                     (ii)     No later than three (3) Business Days following the date of receipt        by Parent or any other Loan Party of any Net Cash Proceeds from the issuance or        incurrence of any Indebtedness of Parent or any other Loan Party pursuant to Sections        2.20 or 6.1(a)(ii), Parent shall prepay the Initial Term Loans in an aggregate principal        amount equal to 100% of such Net Cash Proceeds.               (b)   Issuance of Any Disqualified Equity Interests. No later than three (3)   Business Days following the date of receipt by Parent of any Net Cash Proceeds from the                                          43    

 

     issuance of any Disqualified Equity Interests, Parent shall prepay the Loans in an aggregate   principal amount equal to 100% of such Net Cash Proceeds.                (c)   Available Excess Cash.  If Tangible Book Value as of the last day of any   month for which financial statements of Parent are required to have been delivered pursuant to   Section 5.1(a) is less than the lesser of (i) $3,150,000,000 and (ii) the amount that is 5.25 times  the sum of (A) the aggregate outstanding principal amount of Indebtedness incurred pursuant to  Section 6.1(a)(ii) plus (B) the outstanding principal amount of Loans hereunder, then Parent shall   apply all Available Excess Cash from such month within seven (7) Business Days of the date   monthly financial statements are required to be delivered pursuant to Section 5.1(a) (the “Excess  Cash Flow Trigger Date”) to prepay the Loans, and within three (3) Business Days of the date  monthly financial statements are required to be delivered pursuant to Section 5.1(a) in each  month thereafter until, after giving effect to such prepayments and all other prepayments and   repayments of the Loans made on or after the Excess Cash Flow Trigger Date, an amount equal   to at least 25% of the aggregate principal amount of Loans hereunder outstanding on the Excess   Cash Flow Trigger Date has been prepaid (the “Excess Cash Flow End Date”).  During any   period commencing on an Excess Cash Flow Trigger Date and ending on the Excess Cash Flow   End Date, Parent and its Subsidiaries shall (v) cease (1) the origination of residential mortgage   loans through the correspondent origination channel and (2) making Investments in MSRs and   “excess” MSRs other than those originated by a Subsidiary of Parent, unless, in either case,   Parent or the applicable Subsidiary has entered into a binding written commitment with respect   thereto prior to the relevant Excess Cash Flow Trigger Date, (w) not enter into any binding  commitment to make any Investments other than (1) commitments that are fully financed or (2)  commitments that only require payment following the Excess Cash Flow End Date, (x) not be  permitted to maintain operating reserves for cash needs for the hedging asset portfolio in excess  of $25,000,000, (y) not maintain operating reserves for liquidity required by Specified  Government Entities in excess of the minimum required amount and (z) only maintain operating  reserves for general corporate purposes to the extent required to operate the business of the   Parent and its Subsidiaries in the ordinary course of business and consistent with past practice.                (d)   Sale, Transfer or Other Disposition of NewRez. No later than three (3)   Business Days following the date of receipt by Parent or any other Loan Party of any Net Cash   Proceeds from the sale, transfer or other disposition (whether in a single transaction, multiple   transactions or a series of related transactions), directly or indirectly, of any Equity Interests in   NewRez or any of its Subsidiaries that hold material assets, or any material assets of NewRez or   its Subsidiaries, to any Person other than Parent or any other Loan Party outside of the ordinary   course of business (it being understood that sales, transfers or other dispositions of mortgages,  MSRs, “excess” MSRs, to-be-announced mortgage-backed securities and Servicing Advances  are in the ordinary course of business for NewRez and its Subsidiaries), Parent shall prepay the  Loans in an aggregate principal amount equal to 100% of such Net Cash Proceeds.               (e)   Equity Cure.  No later than three (3) Business Days following the date of   receipt by Parent of any Cure Amount from the issuance of any Equity Interests pursuant to   Section 8.2, Parent shall prepay the Loans in an aggregate principal amount equal to 90% of such  Cure Amount.                                           44    

 

                 (f)   Sale, Transfer or Other Disposition of Unencumbered Asset Equity Pledge   Subsidiary Equity Interests or Assets.  No later than three (3) Business Days following the date   of receipt by Parent, any other Loan Party or any Unencumbered Asset Equity Pledge Subsidiary   of any Net Cash Proceeds from the sale, transfer or other disposition (whether in a single  transaction, multiple transactions or a series of related transactions), directly or indirectly, of (i)   any Equity Interests in an Unencumbered Asset Equity Pledge Subsidiary to any Person other  than Parent or any other Loan Party or (ii) any asset of an Unencumbered Asset (Long Term)   Equity Pledge Subsidiary to any Person other than another Unencumbered Asset (Long Term)  Equity Pledge Subsidiary (but only to the extent the Net Cash Proceeds from the sale, transfer or  other disposition of such assets are not retained or invested by such Unencumbered Asset (Long  Term) Equity Pledge Subsidiary or another Unencumbered Asset (Long Term) Equity Pledge  Subsidiary), Parent shall prepay the Loans in an aggregate principal amount equal to 100% of   such Net Cash Proceeds.                (g)   Prepayment Notice and Certificate. All such prepayments pursuant to   clause (a), (b), (c), (d), (e) or (f) above shall be made upon not less than one (1) Business Day’s   prior written notice (or such shorter period as agreed by the Administrative Agent) in the form of   a written Prepayment Notice given to the Administrative Agent by 12:00 noon (New York City   time) on the date required (and the Administrative Agent shall promptly notify each Lender of   such Prepayment Notice and the amount of each Lender’s ratable share of such prepayment).   Concurrently with any prepayment of the Loans pursuant to clause (a), (b), (c), (d), (e) or (f)   above, Parent shall deliver to the Administrative Agent a certificate of an Authorized Officer   demonstrating the calculation of the amount required to be used to prepay the Loans.          Section 2.11 Application of Prepayments.                (a)   Any prepayment of Loans pursuant to Section 2.9(a) shall be applied as  follows:               first, to prepay Loans on a pro rata basis (in accordance with the respective        outstanding principal amounts thereof) and further applied to the remaining        scheduled Installments of principal of the Loans as directed by Parent (or, if no        such direction is given, then in direct order of maturity);               second, to pay any accrued and unpaid interest and any other amounts in        respect of the Loans outstanding on a pro rata basis (in accordance with the        respective outstanding principal amounts thereof); and               third, to satisfy any other outstanding Obligations of Parent on a pro rata        basis hereunder by the amount of such prepayment remaining.               (b)   Any prepayment of Loans pursuant to Section 2.10 (other than clause  (a)(ii) thereof) shall be applied as follows:               first, to prepay Loans and, if required by the definitive documentation with        respect thereto, the aggregate outstanding principal amount of Indebtedness        incurred pursuant to Section 6.1(a)(ii), on a pro rata basis (in accordance with the        respective outstanding principal amounts thereof) and further applied to the                                         45    

 

         remaining scheduled Installments of principal of the Loans in direct order of        maturity;               second, to pay any accrued and unpaid interest and any other amounts        outstanding in respect of the Loans and, if required by the definitive documentation        with respect thereto, the aggregate outstanding principal amount of Indebtedness        incurred pursuant to Section 6.1(a)(ii), on a pro rata basis (in accordance with the        respective outstanding principal amounts thereof); and               third, to satisfy any other outstanding Obligations of Parent on a pro rata        basis hereunder by the amount of such prepayment remaining.               (c)   Any prepayment of Initial Term Loans pursuant to Section 2.10(a)(ii) shall  be applied as follows:               first, to prepay Initial Term Loans on a pro rata basis (in accordance with        the respective outstanding principal amounts thereof) and further applied to the        remaining scheduled Installments of principal of the Initial Term Loans in direct        order of maturity;               second, to pay any accrued and unpaid interest and any other amounts in        respect of the Initial Term Loans outstanding on a pro rata basis (in accordance        with the respective outstanding principal amounts thereof); and               third, to satisfy any other outstanding Obligations of Parent in respect of the        Initial Term Loans on a pro rata basis hereunder by the amount of such prepayment        remaining.         Section 2.12 General Provisions Regarding Payments.               (a)   All payments by Parent of principal, interest, fees and other Obligations  shall be made in Dollars in same day funds, without defense, setoff or counterclaim, free of any  restriction or condition, and delivered to the Administrative Agent not later than 2:00 p.m. (New  York City time) on the date due at the Principal Office designated by the Administrative Agent  for the account of Lenders. For purposes of computing interest and fees, funds received by the  Administrative Agent after that time on such due date may, in the Administrative Agent’s  discretion, be deemed to have been paid by Parent on the next succeeding Business Day.               (b)   All payments in respect of the principal amount of any Loan shall be  accompanied by payment of accrued interest on the principal amount being repaid or prepaid,  and all such payments (and, in any event, any payments in respect of any Loan on a date when  interest is due and payable with respect to such Loan) shall be applied to the payment of interest  then due and payable before application to principal.               (c)   The Administrative Agent (or its agent or sub-agent appointed by it) shall  promptly distribute to each Lender at such account as such Lender shall indicate in writing, such  Lender’s applicable Pro Rata Share of all payments and prepayments of principal and interest                                         46   

 

     due hereunder, together with all other amounts due thereto, including all fees payable with  respect thereto, to the extent received by the Administrative Agent.               (d)   [Reserved].               (e)   Whenever any payment to be made hereunder with respect to any Loan  shall be stated to be due on a day that is not a Business Day, such payment shall be subject to the  provisions of Section 1.4.               (f)   Parent hereby irrevocably waives the right to direct the application of any  and all payments in respect of the Obligations and any proceeds of Collateral after the  occurrence and during the continuance of an Event of Default and agrees that, notwithstanding  the provisions of Section 2.11 above, the Administrative Agent may, and, upon either (A) the  written direction of the Required Lenders or (B) the acceleration of the Obligations pursuant to  Section 8.1 shall, apply all payments in respect of any Obligations in the following order:               first, to pay Obligations in respect of any expense reimbursements or indemnities              then due to the Agents;               second, to pay Obligations in respect of any expense reimbursements or              indemnities then due to the Lenders;               third, to pay Obligations in respect of any fees then due to the Agents and the              Lenders;               fourth, to pay interest then due and payable in respect of the Loans, including              interest due and payable at the Default Rate;               fifth, to pay or prepay principal amounts on the Loans, ratably to the aggregate              principal amount of such Loans; and               sixth, to the ratable payment of all other Obligations;   provided, however, that if sufficient funds are not available to fund all payments to be made in   respect of any Obligation described in any of the clauses above, the available funds being applied   with respect to any such Obligation (unless otherwise specified in such clause) shall be allocated   to the payment of such Obligation ratably, based on the proportion of the Administrative Agent’s   and each Lender’s interest in the aggregate outstanding Obligations described in such clauses;   The order of priority set forth in the clauses above may at any time and from time to time be   changed by the agreement of the Required Lenders without necessity of notice to or consent of or   approval by Parent, any Secured Party that is not a Lender or by any other Person that is not a   Lender.  The order of priority set forth in first, second and third clauses above may be changed   with respect to amounts owing to the Administrative Agent only with the prior written consent of   the Administrative Agent.          Section 2.13 Ratable Sharing. The Lenders hereby agree among themselves that, if any   of them shall, whether by voluntary payment (other than a voluntary prepayment of Loans made   and applied in accordance with the terms hereof), through the exercise of any right of set-off or                                          47    

 

     banker’s lien, by counterclaim or cross action or by the enforcement of any right under the Loan   Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under   the Bankruptcy Code, receive payment or reduction of a proportion of the aggregate amount of   principal, interest, fees and other amounts then due and owing to such Lender hereunder or under   the other Loan Documents (collectively, the “Aggregate Amounts Due” to such Lender) which   is greater than the proportion received by any other Lender in respect of the Aggregate Amounts  Due to such other Lender, then the Lender receiving such proportionately greater payment shall  (a) notify, in writing, the Administrative Agent and each other Lender of the receipt of such  payment and (b) apply a portion of such payment to purchase participations (which it shall be  deemed to have purchased from each seller of a participation simultaneously upon the receipt by  such seller of its portion of such payment) in the Aggregate Amounts Due to the other Lenders  so that all such recoveries of Aggregate Amounts Due shall be shared by all Lenders in  proportion to the Aggregate Amounts Due to them; provided that if all or part of such   proportionately greater payment received by such purchasing Lender is thereafter recovered from   such Lender upon the bankruptcy or reorganization of Parent or otherwise, those purchases shall   be rescinded and the purchase prices paid for such participations shall be returned to such   purchasing Lender ratably to the extent of such recovery, but without interest. Parent expressly   consents to the foregoing arrangement and agrees that any holder of a participation so purchased   may exercise any and all rights of banker’s lien, set-off or counterclaim with respect to any and   all monies owing by Parent to that holder with respect thereto as fully as if that holder were owed   the amount of the participation held by that holder. The provisions of this Section 2.13 shall not   be construed to apply to (a) any payment made by Parent pursuant to and in accordance with the   express terms of this Agreement or (b) any payment obtained by any Lender as consideration for   the assignment or sale of a participation in any of its Loans or other Obligations owed to it.          Section 2.14 [Reserved].          Section 2.15 Increased Costs; Capital Adequacy; Liquidity.                (a)   Compensation for Increased Costs. In the event that any Lender shall   determine (which determination shall, absent manifest error, be final and conclusive and binding   upon all parties hereto) that any Change in Law (i) imposes, modifies or holds applicable any   reserve (including any marginal, emergency, supplemental, special or other reserve), special   deposit, compulsory loan, FDIC insurance or similar requirement against assets held by, or   deposits or other liabilities in or for the account of, or advances or loans by, or other credit   extended by, or any other acquisition of funds by, any office of such Lender, (ii) imposes any   other condition (other than with respect to any Tax) on or affecting such Lender (or its applicable   lending office) or its obligations hereunder or the London interbank market or (iii) subjects such   Lender to any incremental Tax (other than a Tax indemnifiable under Section 2.16 or an   Excluded Tax); and the result of any of the foregoing is to increase the cost to such Lender of   agreeing to make, making or maintaining Loans hereunder or to reduce any amount received or   receivable by such Lender (or its applicable lending office) with respect thereto; then, in any   such case, Parent shall promptly pay to such Lender, upon receipt of the statement referred to in   the next sentence, such additional amount or amounts (in the form of an increased rate of, or a   different method of calculating, interest or otherwise as such Lender in its sole discretion shall   determine) as may be necessary to compensate such Lender for any such increased cost or   reduction in amounts received or receivable hereunder. Such Lender shall deliver to Parent (with                                          48    

 

     a copy to the Administrative Agent) a written statement, setting forth in reasonable detail the  basis for calculating the additional amounts owed to such Lender under this Section 2.15(a),  which statement shall be conclusive and binding upon all parties hereto absent demonstrable  error.               (b)   Capital Adequacy or Liquidity Adjustment. In the event that any Lender   shall have determined that the adoption, effectiveness, phase-in or applicability of any Change in   Law regarding capital adequacy, liquidity or compliance by any Lender (or its applicable lending   office) with any Change in Law regarding capital adequacy or liquidity has or would have the   effect of reducing the rate of return on the capital of such Lender or any corporation controlling   such Lender as a consequence of, or with reference to, such Lender’s Loans, or participations   therein or other obligations hereunder with respect to the Loans, to a level below that which such   Lender or such controlling corporation could have achieved but for such adoption, effectiveness,   phase-in, applicability, change or compliance (taking into consideration the policies of such   Lender or such controlling corporation with regard to capital adequacy or liquidity), then from   time to time, within five (5) Business Days after receipt by Parent from such Lender of the   statement referred to in the next sentence, Parent shall pay to such Lender such additional   amount or amounts as shall compensate such Lender or such controlling corporation on an after-  tax basis for such reduction. Such Lender shall deliver to Parent (with a copy to the   Administrative Agent) a written statement, setting forth in reasonable detail the basis for   calculating the additional amounts owed to Lender under this Section 2.15(b), which statement   shall be conclusive and binding upon all parties hereto absent manifest error.                (c)   Delay in Requests. Failure or delay on the part of any Lender to demand   compensation pursuant to this Section 2.15 shall not constitute a waiver of such Lender’s right to   demand such compensation, provided that Parent shall not be required to compensate a Lender   pursuant to this Section 2.15 for any increased costs incurred or reductions suffered if such   Lender fails to provide Parent with notice of such increased costs or reductions within ninety   (90) days of such Lender actually incurring such increased costs (except that, if the Change in   Law giving rise to such increased costs or reductions is retroactive, then the 90 (90) day period   referred to above shall be extended to include the period of retroactive effect thereof).          Section 2.16 Taxes; Withholding, Etc.                 (a)   Payments to Be Free and Clear. All sums payable by or on behalf of any   Loan Party hereunder or under the other Loan Documents shall (except to the extent required by   law) be paid free and clear of, and without any deduction or withholding on account of, any Tax.                (b)   Withholding of Taxes. If any Loan Party, the Administrative Agent or any   other Person is required by law (as determined in the good faith discretion of the applicable   withholding agent) to make any deduction or withholding on account of any Tax from any sum   paid or payable by any Loan Party to the Administrative Agent or any Lender under any of the   Loan Documents: (i) the applicable withholding agent shall be entitled to make such deduction   or withholding and shall pay any such Tax to the relevant Governmental Authority in accordance   with applicable law; (ii) if such Tax is an Indemnified Tax or Other Tax, the sum payable by   such Loan Party in respect of which the relevant deduction, withholding or payment is required   shall be increased to the extent necessary to ensure that, after the making of that deduction,                                          49    

 

     withholding or payment (including, in respect of any additional amounts payable under this  Section 2.16), such Lender (or in a case where the Administrative Agent receives the payments   for its own account, the Administrative Agent) receives a net sum equal to what it would have   received had no such deduction, withholding or payment been required or made; and (iii) within   thirty (30) days after any Loan Party has paid any Tax which any Loan Party is required by   clause (i) above to pay, Parent shall deliver to the Administrative Agent the original or a certified   copy of a receipt issued by the Governmental Authority evidencing such payment, a copy of the   return reporting such payment, or other evidence reasonably satisfactory to Administrative Agent   of such payment.                (c)   Status of Lenders.                    (i)     Each Lender shall, at such times as are reasonably requested by         Parent or the Administrative Agent, provide Parent and the Administrative Agent with         any documentation prescribed by law, or reasonably requested by Parent or the         Administrative Agent, certifying as to any entitlement of such Lender to an exemption         from, or reduction in, withholding tax with respect to any payments to be made to such        Lender under the Loan Documents, or otherwise required by Parent or the Administrative        Agent to determine the extent to which any tax is required to be withheld; provided that a         Lender will not be required to deliver any documentation with respect to any Tax (other         than U.S. federal income or withholding, including backup withholding, taxes) to the         extent such Lender determines, in its reasonable discretion, that delivering such         documentation would be materially prejudicial to such Lender’s legal or commercial         position. Each such Lender shall, whenever a lapse in time or change in circumstances         renders any documentation previously provided by such Lender under this Section         2.16(c) (including pursuant to paragraph (ii) below) expired, obsolete or inaccurate in any         respect, promptly deliver to Parent and the Administrative Agent updated or other         appropriate documentation (including any new documentation reasonably requested by         Parent or the Administrative Agent) or promptly notify Parent and the Administrative         Agent in writing of its legal inability to do so.                   (ii)     Without limiting the generality of the foregoing:                            (1)   Each Lender that is a United States person (as         defined in Section 7701(a)(30) of the Internal Revenue Code) shall deliver to         Parent and the Administrative Agent on or before the date on which it becomes a         party to this Agreement (and from time to time thereafter upon the reasonable         request of Parent or Administrative Agent) two properly completed and duly         signed original copies of Internal Revenue Service Form W-9 (or any successor         form) certifying that such Lender is exempt from U.S. federal backup         withholding.                             (2)   Each Lender that is not a United States person (as         defined in Section 7701(a)(30) of the Internal Revenue Code) shall deliver to         Parent and the Administrative Agent on or before the date on which it becomes a         party to this Agreement (and from time to time thereafter when required by Law                                          50    

 

                 or upon the reasonable request of Parent or the Administrative Agent) whichever   of the following is applicable:                            (A)   two duly completed copies of Internal Revenue         Service Form W-8BEN-E or W-8BEN (or any successor forms) claiming         eligibility for benefits of an income tax treaty to which the United States of         America is a party,                            (B)   two duly completed copies of Internal Revenue         Service Form W-8ECI (or any successor forms),                            (C)   in the case of a Lender claiming the benefits of the         exemption for portfolio interest under Section 881(c) of the Internal Revenue         Code, (I) a certificate, in substantially the form of Exhibit E-1, to the effect that         such Lender is not (x) a “bank” within the meaning of Section 881(c)(3)(A) of the         Internal Revenue Code, (y) a “10 percent shareholder” of Parent within the         meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or (z) a         “controlled foreign corporation” described in Section 881(c)(3)(C) of the Internal         Revenue Code, and that no payments in connection with the Loan Documents are         effectively connected with such Lender’s conduct of a U.S. trade or business (a         “U.S. Tax Compliance Certificate”) and (II) two duly completed copies of        Internal Revenue Service Form W-8BEN-E or W-8BEN (or any successor forms),                            (D)   to the extent a Lender is not the beneficial owner         (for example, where the Lender is a partnership, or a participating Lender that has         transferred its beneficial ownership to a participant), Internal Revenue Service         Form W-8IMY (or any successor forms) of the Lender, accompanied by a Form         W-8ECI, W-8BEN-E or W-8BEN, U.S. Tax Compliance Certificate re Non-Bank         Status substantially in the form of Exhibit E-2 or Exhibit E-3, Form W-9, Form         W-8IMY (or other successor forms) or any other required information from each         beneficial owner, as applicable (provided that, if the Lender is a partnership (and         not a participating Lender) and one or more of the Lender’s direct or indirect         partners are claiming the portfolio interest exemption, the U.S. Tax Compliance         Certificate re Non-Bank Status substantially in the form of Exhibit E-4 may be         provided by such Lender on behalf of such direct or indirect partners), or                            (E)   any other form prescribed by applicable         requirements of U.S. federal income tax law as a basis for claiming exemption         from or a reduction in U.S. federal withholding tax duly completed together with         such supplementary documentation as may be prescribed by applicable         requirements of Law to permit Parent and the Administrative Agent to determine         the withholding or deduction required to be made.            (iii)    If a payment made to a Lender under any Loan Document would  be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to   fail to comply with the applicable reporting requirements of FATCA (including those   contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable),                                    51                

 

           such Lender shall deliver to Parent and the Administrative Agent at the time or times         prescribed by law and at such time or times reasonably requested by Parent or the         Administrative Agent such documentation prescribed by applicable law (including as        prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional         documentation reasonably requested by Parent or the Administrative Agent as may be         necessary for Parent and the Administrative Agent to comply with their FATCA         obligations, to determine whether such Lender has or has not complied with such         Lender’s FATCA obligations and, if necessary, to determine the amount to deduct and         withhold from such payment. Solely for purposes of the immediately preceding sentence,         “FATCA” shall include any amendments made to FATCA after the date of this         Agreement.          Notwithstanding any other provision of this Section 2.16(c), a Lender shall not be   required to deliver any form that such Lender is not legally eligible to deliver.          Each Lender hereby authorizes the Administrative Agent to deliver to the Loan Parties   and to any successor Administrative Agent any documentation provided by such Lender to the   Administrative Agent pursuant to this Section 2.16(c).                (d)   Refunds. If any party becomes aware that it is entitled to claim a refund   from a Governmental Authority in respect of Taxes as to which Parent has paid additional   amounts pursuant to Section 2.16(b) or indemnification payments pursuant to Section 2.16(g), it   shall make reasonable efforts to timely so advise Parent and, if Parent so requests, to seek such   refund at Parent’s expense; provided, however, that no Lender shall be required to take any   action hereunder which, in the sole discretion of such Lender, would cause such Lender or its   applicable lending office to suffer a material economic, legal or regulatory disadvantage. If any   party receives a payment of a refund (including pursuant to a claim for refund made pursuant to   the preceding sentence) in respect of any Tax as to which Parent has paid additional amounts   pursuant to Section 2.16(b) or indemnification payments under Section 2.16(g), it shall within   ninety (90) days from the date of the receipt of such refund pay over the amount of such refund   to Parent, net of all reasonable out-of-pocket expenses of such party (including any Taxes) and   without interest (other than any interest paid by the relevant Governmental Authority with   respect to such refund). Parent agrees to repay any amount paid over to Parent (plus penalties,  interest or other reasonable charges paid by such Lender) to such Lender in the event such  Lender is required to repay such refund to such Governmental Authority. This Section 2.16(d)  shall not be construed to require a Lender to make available its Tax returns (or any other  information relating to its Taxes which it deems confidential) to any Loan Party or any other   Person.                (e)   Contests. If Parent determines that a reasonable basis exists for contesting   a Tax, Parent shall make reasonable efforts to timely advise the relevant Lender and at Parent’s   written request, the relevant Lender shall make reasonable efforts to cooperate with Parent in   challenging such Tax at Parent’s expense; provided, however, that no Lender shall be required to   take any action hereunder which, in the sole discretion of such Lender, would cause such Lender   or its applicable lending office to suffer a material economic, legal or regulatory disadvantage.                                           52    

 

                 (f)   Other Taxes. Without limiting or duplicating the provisions of Sections   2.16(a) or (b), Parent shall timely pay any Other Taxes to the relevant Governmental Authority   in accordance with applicable law.                (g)   Indemnification by Parent. Without limiting or duplicating the provisions   of Sections 2.16(a), (b) or (f), Parent shall, within ten (10) days after written demand therefor,   indemnify and hold harmless the Administrative Agent and each Lender from and against any   Indemnified Taxes or Other Taxes payable by such Administrative Agent or Lender, including  any Indemnified Taxes or Other Taxes imposed on or with respect to any additional amounts or  indemnification payments made under this Section 2.16, and any reasonable expenses related  thereto, whether or not such Indemnified Taxes or Other Taxes are correctly or legally imposed   or asserted by the applicable Governmental Authority. A certificate as to the amount of any such   Tax (along with a written statement setting forth in reasonable detail the basis and calculation of   such amounts) delivered to Parent by a Lender, or by the Administrative Agent on its own behalf   or on behalf of a Lender, shall be conclusive absent manifest error.                (h)   Survival. Each party’s obligations under this Section shall survive the   resignation or replacement of the Administrative Agent or any assignment of rights by, or the   replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or   discharge of all obligations under any Loan Document.                (i)   Allocation; Tax Treatment. The Lenders and Parent acknowledge that   concurrently herewith the Lenders holding Effective Date Term Loan Commitments and Second   Draw Term Loan Commitments are acquiring the Warrants and agree that $27,625,512 of the   issue price paid by the Lenders holding Effective Date Term Loan Commitments under this   Agreement shall be allocated to and treated as consideration for the Warrants delivered to such   Lenders rather than the Effective Date Term Loans, increasing the amount of "original issue   discount" on the Effective Date Term Loans by such amount, and $25,843,221 of the issue price   paid by the Lenders holding Second Draw Term Loan Commitments under this Agreement shall   be allocated to and treated as consideration for the Warrants delivered to such Lenders rather   than the Second Draw Term Loans, increasing the amount of "original issue discount" on the   Second Draw Term Loans by such amount (such allocation, the “Allocation”).  The Lenders,   Parent and the Administrative Agent also agree that the Loans are not treated as “contingent   payment debt instruments” within the meaning of Treasury Regulation Section 1.1275-4 and that   the Loans do not bear any “contingent interest” within the meaning of Section 871(h)(4) of the   Code (the “Tax Treatment”).  The Lenders, Parent and the Administrative Agent shall file or   cause to be filed all federal, state and local tax returns consistent with the Tax Treatment and the   Allocation, unless otherwise required by law.           Section 2.17 Obligation to Mitigate. Each Lender agrees that, as promptly as   practicable after the officer of such Lender responsible for administering its Loans becomes   aware of the occurrence of an event or the existence of a condition that would entitle such   Lender to receive payments under Sections 2.15 or 2.16, it shall, to the extent not inconsistent  with any applicable legal or regulatory restrictions, use reasonable efforts to (a) make, issue,  fund or maintain its Loans through another office of such Lender or (b) take such other measures  as such Lender may deem reasonable, if as a result thereof the circumstances which would cause  the additional amounts which would otherwise be required to be paid to such Lender pursuant to                                          53    

 

     Sections 2.15 or 2.16 would be reduced and if, as determined by such Lender in its sole   discretion, the making, issuing, funding or maintaining of such Loans through such other office   or in accordance with such other measures, as the case may be, would not otherwise adversely   affect such Loans or the interests of such Lender; provided that such Lender shall not be   obligated to utilize such other office or take such other measures pursuant to this Section 2.17   unless Parent agrees to pay all incremental expenses incurred by such Lender as a result of   utilizing such other office or taking such other measures as described above. A certificate as to   the amount of any such expenses payable by Parent pursuant to this Section 2.17 (setting forth in   reasonable detail the basis for requesting such amount) submitted by such Lender to Parent (with   a copy to the Administrative Agent) shall be conclusive absent manifest error.         Section 2.18 [Reserved].           Section 2.19 Removal or Replacement of Lender. Anything contained herein to the   contrary notwithstanding, in the event that: (i) any Lender (an “Increased Cost Lender”) shall  give notice to Parent that such Lender is entitled to receive payments under Sections 2.15 or  2.16, (ii) the circumstances which entitle such Lender to receive such payments shall remain in  effect and (iii) such Lender shall fail to withdraw such notice within five (5) Business Days after  Parent’s request for such withdrawal, then, with respect to each such Increased Cost Lender (the  “Terminated Lender”), Parent may, by giving written notice to the Administrative Agent and  any Terminated Lender of its election to do so, elect to cause such Terminated Lender (and such  Terminated Lender hereby irrevocably agrees) to assign its outstanding Loans in full to one (1)  or more Eligible Assignees (each a “Replacement Lender”) in accordance with the provisions   of Section 10.6 and Parent shall pay the fees, if any, payable thereunder in connection with any   such assignment from an Increased Cost Lender; provided that (1) on the date of such   assignment, the Replacement Lender shall pay to the Terminated Lender an amount equal to the   sum of an amount equal to the principal of, and all accrued interest on, all outstanding Loans of   the Terminated Lender and (2) on the date of such assignment, Parent shall pay any amounts   payable to such Terminated Lender pursuant to Sections 2.15 or 2.16; or otherwise as if it were a   prepayment. Upon the prepayment of all amounts owing to any Terminated Lender, such   Terminated Lender shall no longer constitute a “Lender” for purposes hereof; provided that any   rights of such Terminated Lender to additional amounts and indemnification hereunder shall   survive as to such Terminated Lender. Each Lender agrees that if Parent exercises its option   hereunder to cause an assignment by such Lender as a Terminated Lender, such Lender shall,   promptly after receipt of written notice of such election, execute and deliver all documentation   necessary to effectuate such assignment in accordance with Section 10.6. In the event that a   Lender does not comply with the requirements of the immediately preceding sentence within one   (1) Business Day after receipt of such notice, each Lender hereby authorizes and directs the  Administrative Agent to execute and deliver such documentation as may be required to give   effect to an assignment in accordance with Section 10.6 on behalf of a Terminated Lender and   any such documentation so executed by the Administrative Agent shall be effective for purposes   of documenting an assignment pursuant to Section 10.6          Section 2.20 Incremental Facilities.                (a)   Parent may by written notice to the Administrative Agent elect to request   the establishment of one (1) or more new term loan commitments which may be in the form of a                                          54    

 

   new Series of New Term Loans or an increase to the amount of Initial Term Loans or any then  outstanding Series of New Term Loans (such new term loan commitments or increase the “New  Term Loan Commitments”); provided that, on the Increased Amount Date, after the making of  any New Term Loans, the Initial Term Loans must represent more than 50% of the aggregate  Loans outstanding plus any undrawn New Term Loan Commitments plus any outstanding  Indebtedness incurred under Section 6.1(a)(ii). Each such notice shall specify (i) the date (each,  an “Increased Amount Date”) on which Parent proposes that the New Term Loan  Commitments shall be effective, which shall be a date not less than five (5) Business Days (or  such shorter period as agreed by the Administrative Agent) after the date on which such notice is  delivered to the Administrative Agent and (ii) the identity of each Lender or other Person that is  an Eligible Assignee (each, a “New Term Loan Lender”) to whom Parent proposes any portion  of such New Term Loan Commitments be allocated and the amounts of such allocations;  provided that any Lender approached to provide all or a portion of the New Term Loan  Commitments may elect or decline, in its sole discretion, to provide a New Term Loan  Commitment. Parent may designate any Loan Party as a “Borrower” under the New Term Loan  Commitments. Such New Term Loan Commitments shall become effective as of such Increased  Amount Date; provided that (1) both before and after giving effect to the making of any Series of  New Term Loans or increase in Initial Term Loans, each of the following shall be satisfied: (i)  the condition set forth in Section 3.1(f) (provided that each reference therein to the Effective  Date Term Loans shall be deemed a reference to the New Term Loans and each reference therein  to the Effective Date shall be deemed a reference to the Increased Amount Date), (ii) the  representations and warranties contained herein and in the other Loan Documents shall be true  and correct in all material respects on and as of the Increased Amount Date (except to the extent  such representations and warranties relate to an earlier date, in which case, such representations  and warranties were true and correct in all material respects as of such earlier date) and (iii) no  event shall have occurred and be continuing or would result from the consummation of the  Borrowing of the New Term Loans that would constitute a Default or an Event of Default;  provided that to the extent any such representation or warranty is already qualified by materiality  or material adverse effect, such representation or warranty shall be true and correct in all  respects); (2) the New Term Loan Commitments shall be effected pursuant to one or more  Joinder Agreements executed and delivered by Parent, each applicable New Term Loan Lender  and the Administrative Agent, and each of which shall be recorded in the Register and each New  Term Loan Lender shall be subject to the requirements set forth in Section 2.16(c) and (3) Parent  shall deliver or cause to be delivered any legal opinions or other documents reasonably requested  by the Administrative Agent in connection with any such transaction. Any New Term Loans  made on an Increased Amount Date shall be designated in the applicable Joinder Agreement  either as a separate series, an increase to the Initial Term Loans or an increase to any prior series  of New Term Loans (in each case a “Series”; for purposes of this Section 2.20, the Initial Term  Loans and any increase thereof shall be deemed to be a Series) for all purposes of this  Agreement. Except for purposes of this Section 2.20, any New Term Loans made as an increase  to the Initial Term Loans shall be deemed to be, effective as of the applicable Increased Amount  Date, and after the making of such New Term Loans, Initial Term Loans for all purposes of this  Agreement; provided that for the avoidance of doubt such New Term Loans will remain New  Term Loans and New Term Loan Commitments, as the case may be, for purposes of this Section  2.20.                                          55   

 

                 (b)   On any Increased Amount Date on which any New Term Loan   Commitments of any Series or any increase in Initial Term Loans are effective, subject to the   satisfaction of the foregoing terms and conditions (including, but not limited to, delivery of a   Borrowing Notice pursuant to Section 2.1(b)), (i) each New Term Loan Lender of any Series  shall make a Loan to Parent (a “New Term Loan”) in an amount equal to its New Term Loan   Commitment of such Series and (ii) each New Term Loan Lender of any Series shall become a   Lender hereunder with respect to the New Term Loan Commitment of such Series and the New   Term Loans of such Series made pursuant thereto.                (c)   The Administrative Agent shall notify the Lenders promptly upon receipt   of Parent’s notice of each Increased Amount Date and in respect thereof the Series of New Term   Loan Commitments (or increase in Initial Term Loans) and the New Term Loan Lenders of such   Series.                (d)   The terms and provisions of the New Term Loans and New Term Loan   Commitments of any Series shall be, except as otherwise set forth herein or in the Joinder   Agreement, identical to the Loans. In any event (i) the weighted average life to maturity of all   New Term Loans of any Series shall be no shorter than the weighted average life to maturity of   the Loans, (ii) the applicable New Term Loan Maturity Date of each Series shall be no shorter   than the Initial Term Loan Maturity Date, (iii) the yield applicable to the New Term Loans of   each Series shall be determined by Parent and the applicable new Lenders and shall be set forth   in each applicable Joinder Agreement, (iv) the amortization schedule applicable to any Series of   New Term Loans shall be determined by Parent and the applicable holders of New Term Loans   and (v) any Affiliated Lender or providing New Term Loans and New Term Loan Commitments   shall be subject to the same restrictions set forth in Section 10.6(h) as they would otherwise be   subject to with respect to any purchase by or assignment to such Affiliated Lender of Loans.   Each Joinder Agreement may, without the consent of any other Lenders, effect such amendments   to this Agreement and the other Loan Documents as may be necessary or appropriate, in the   opinion of the Administrative Agent to effect the provision of this Section 2.20.                (e)   The New Term Loans and New Term Loan Commitments established   pursuant to this Section 2.20 shall constitute Loans and Commitments under, and shall be   entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall,   without limiting the foregoing, benefit equally and ratably with the Obligations from the   Subsidiary Guarantors and security interests created by the Security Documents. Each Series of   New Term Loans or New Term Loans incurred as an increase to the Initial Term Loans shall be   entitled to share in mandatory prepayments on a ratable basis with the Initial Term Loans and the   other Series of New Term Loans (unless the holders of the New Term Loans of any Series agree   to take a lesser share of certain prepayments). The Loan Parties shall take any actions reasonably   required by the Administrative Agent to ensure and/or demonstrate that the Lien and security   interests granted by the Security Documents continue to be perfected under the UCC or   otherwise after giving effect to the establishment of any such Class of New Term Loans or any   such New Term Loan Commitments.                                           56    

 

                                      ARTICLE III                                                                       CONDITIONS PRECEDENT          Section 3.1 Conditions Precedent to Effective Date. The obligation of the Lenders to   make Effective Date Term Loans on the Effective Date is subject to the satisfaction, or waiver in   accordance with Section 10.5, of the following conditions:                (a)   Loan Documents. (i) The Administrative Agent shall have received copies   of the following documents, executed and delivered by each Loan Party: (w) this Agreement, (x)   the Security Agreement, (y) the Borrowing Notice and (z) any Notes and (ii) all such documents   shall be in form and substance reasonably satisfactory to the Administrative Agent.                (b)   Organizational Documents; Incumbency. The Administrative Agent shall   have received (i) copies of each Organizational Document executed and delivered by each Loan   Party, and, to the extent applicable, certified as of a recent date by the appropriate governmental  official, each dated the Effective Date or a recent date prior thereto; (ii) signature and   incumbency certificates of the officers of each Loan Party executing the Loan Documents to   which it is a party; (iii) resolutions of the board of directors or similar governing body of each   Loan Party approving and authorizing the execution, delivery and performance of this   Agreement and the other Loan Documents to which it is a party or by which it or its assets may   be bound as of the Effective Date, certified as of the Effective Date by its secretary, an assistant   secretary or other appropriate officer as being in full force and effect without modification or   amendment; and (iv) a good standing certificate from the applicable Governmental Authority of   the jurisdiction of incorporation, organization or formation for each Loan Party, each dated a  recent date prior to the Effective Date.               (c)   Lien Searches. The Administrative Agent shall have received the results of   a recent Lien search with respect to each Loan Party, and such search shall reveal no Liens on   any of the assets of the Loan Parties except for Permitted Liens or Liens discharged prior to the   Effective Date pursuant to documentation reasonably satisfactory to the Administrative Agent.                (d)   Collateral. In order to create in favor of the Collateral Agent, for the   benefit of Secured Parties, a valid, perfected first priority security interest in the Collateral   (subject to Permitted Liens), each Loan Party shall have delivered to the Collateral Agent   evidence reasonably satisfactory to the Administrative Agent that, upon the filing and recording   of instruments delivered on the Effective Date, the Collateral Agent (for the benefit of the   Secured Parties) shall have a valid, perfected first priority security interest in the Collateral   (subject to Permitted Liens and only to the extent perfection can be obtained by such filing or   recording), including such documents duly executed by each Loan Party as the Administrative  Agent may reasonably request with respect to the perfection of its security interests in the  Collateral (including financing statements under the UCC).                (e)   Opinions of Counsel to Loan Parties. The Agents and the Lenders and   their respective counsel shall have received originally executed copies of the written opinion of   Skadden, Arps, Slate, Meagher & Flom LLP, counsel for Loan Parties, as to such other matters   as the Administrative Agent may reasonably request, dated as of the Effective Date and                                          57    

 

     otherwise in form and substance reasonably satisfactory to the Administrative Agent (and each  Loan Party hereby instructs such counsel to deliver such opinions to Agents and Lenders).               (f)   Effective Date Certificate. Parent shall have delivered to the   Administrative Agent an originally executed Effective Date Certificate, together with all   attachments thereto, and which shall include certifications to the effect that:                    (i)    the representations set forth in Article IV and the other Loan         Documents shall be true and correct in all material respects on and as of the Effective         Date (except to the extent such representations and warranties relate to an earlier date, in         which case, such representations and warranties were true and correct in all material         respects as of such earlier date); provided that to the extent any such representation or         warranty is already qualified by materiality or material adverse effect, such representation        or warranty shall be true and correct in all respects; and                   (ii)    no event shall have occurred and be continuing or would result        from the consummation of the Borrowing of the Effective Date Term Loans that would        constitute a Default or an Event of Default.               (g)   KYC Information. The Administrative Agent shall have received a duly   executed Internal Revenue Service Form W-9 (or other applicable tax form) and all   documentation and other information about Parent and the Subsidiary Guarantors as has been   reasonably requested in writing by the Administrative Agent at least three (3) Business Days   prior to the Effective Date and they reasonably determine is required by regulatory authorities   under applicable “know-your-customer” and anti-money laundering rules and regulations,   including the Uniting and Strengthening America by Providing Appropriate Tools Required to   Intercept and Obstruct Terrorism Act (Title III of Pub. L. 107-56 (signed into law October 26,   2001) (as amended, supplemented or modified from time to time, the “PATRIOT Act”).                (h)   Beneficial Ownership Certificate. The Administrative Agent shall have   received a Beneficial Ownership Certification in relation to any Loan Party that qualifies as a   “legal entity customer” under the Beneficial Ownership Regulation, in each case, to the extent  requested in writing at least three (3) Business Days prior to the Effective Date.               (i)   Solvency Certificate. The Administrative Agent shall have received a   Solvency Certificate from Parent.                (j)   Payment at Closing. Parent shall have paid all fees due and payable   thereto or to any Lender on or prior to the Effective Date and, to the extent invoiced at least one   (1) Business Day prior to the Effective Date, any fees and expenses of the Administrative Agent  and the Lenders incurred in connection with the negotiation, preparation and execution of this  Agreement (including fees, charges and disbursements of Sullivan & Cromwell LLP,  Cadwalader, Wickersham & Taft LLP and Norton Rose Fulbright US LLP), in an aggregate  amount not to exceed $1,500,000, which amounts may be offset against the proceeds of the  Effective Date Term Loans hereunder.                                           58    

 

                                      ARTICLE IV                                                                REPRESENTATIONS AND WARRANTIES          In order to induce the Lenders to enter into this Agreement and to make each Loan to be   made thereby, Parent and each other Loan Party represents and warrants to each Lender that, as   of the Effective Date (except to the extent such representations and warranties relate to an earlier   date, in which case, such representations and warranties were true and correct in all material   respects as of such earlier date) and each other date that such representations and warranties are   required to be made, each of the following statements is true and correct:          Section 4.1 Organization and Qualification. Each of the Loan Parties, NewRez and   each Unencumbered Asset Equity Pledge Subsidiary (a) is duly organized, validly existing and,   to the extent applicable, in good standing under the laws of its jurisdiction of organization as   identified on Schedule 4.1, (b) has all requisite power and authority to own and operate its   properties, to carry on its business as now conducted and as proposed to be conducted and (c) is   qualified to do business and, to the extent applicable, in good standing in every jurisdiction   where its assets are located and wherever necessary to carry out its business and operations,   except, with respect to any Subsidiary Guarantor, NewRez or any Unencumbered Asset Equity   Pledge Subsidiary, in jurisdictions where the applicable failure with respect to the foregoing   clauses (a) (but only with respect to the failure to be in good standing), (b) and (c) has not had,   and would not be reasonably expected to have, a Material Adverse Effect.          Section 4.2 Corporate Authorization. The execution, delivery and performance of the   Loan Documents have been duly authorized by all necessary corporate, limited liability   company, partnership or other applicable action on the part of each Loan Party that is a party   thereto, and each Loan Party has all requisite power and authority to enter into the Loan   Documents to which it is a party and to carry out the transactions contemplated thereby.          Section 4.3 Equity Interests and Ownership. The organizational chart attached to   Schedule 4.3 correctly sets forth the ownership interest of each Subsidiary of Parent as of the   Effective Date. Except as set forth on Schedule 4.3, as of the Effective Date, there is no existing   option, warrant, call, right, commitment or other agreement to which any Loan Party (other than   Parent) is a party requiring, and there is no membership interest or other Equity Interests of any   Loan Party (other than Parent) outstanding which upon conversion, exchange or exercise would   require, the issuance by any Loan Party (other than Parent) of any additional membership   interests or other Equity Interests of any Loan Party (other than Parent) or other Securities   convertible into or exchangeable or exercisable for or evidencing the right to subscribe for or   purchase, a membership interest or other Equity Interests of any Loan Party (other than Parent),   and no securities or obligations evidencing any such rights are authorized, issued or outstanding.          Section 4.4 No Conflict. The execution, delivery and performance by the Loan Parties   of the Loan Documents to which they are parties and the consummation of the transactions   contemplated by the Loan Documents do not and shall not (a) violate (i) any provision of any  law, statute, ordinance, rule, regulation, or code (other than those concerning declared  emergencies) applicable to any Loan Party, NewRez or any Unencumbered Asset Equity Pledge  Subsidiary, (ii) any of the Organizational Documents of any Loan Party, NewRez or any                                          59    

 

     Unencumbered Asset Equity Pledge Subsidiary, or (iii) any order, judgment, injunction or decree   of any court or other agency of government (other than those concerning declared emergencies)  binding on any Loan Party, NewRez or any Unencumbered Asset Equity Pledge Subsidiary; (b)  conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a  default under any Contractual Obligation of any Loan Party, NewRez or any Unencumbered  Asset Equity Pledge Subsidiary, except to the extent such conflict, breach or default would not  reasonably be expected to have a Material Adverse Effect; (c) result in or require the creation or  imposition of any Lien upon any of the properties or assets of any Loan Party, NewRez or any  Unencumbered Asset Equity Pledge Subsidiary (other than any Liens created under any of the  Loan Documents in favor of the Collateral Agent on behalf of the Secured Parties); or (d) require  any approval of stockholders, members or partners or any approval or consent of any Person  under any Contractual Obligation of any Loan Party, NewRez or any Unencumbered Asset  Equity Pledge Subsidiary, except for such approvals or consents which have been obtained on or  before the Effective Date and except for any such approvals or consents the failure of which to  obtain shall not have a Material Adverse Effect.         Section 4.5 Governmental Consents. The execution, delivery and performance by the   Loan Parties of the Loan Documents to which they are parties and the consummation of the   transactions contemplated by the Loan Documents do not and shall not require any registration  with, consent or approval of, or notice to, or other action to, with or by, any Governmental  Authority except as otherwise set forth in the Loan Documents and except for filings and  recordings with respect to the Collateral to be made, or otherwise delivered to the Collateral   Agent for filing and/or recordation, as of the Effective Date.          Section 4.6 Binding Obligation. Each Loan Document has been duly executed and   delivered by each Loan Party that is a party to such Loan Document and is the legally valid and   binding obligation of such Loan Party, enforceable against such Loan Party in accordance with   its respective terms, except as may be limited by bankruptcy, insolvency, reorganization,   moratorium or similar laws of general applicability relating to or limiting creditors’ rights or by   equitable principles relating to enforceability (regardless of whether enforcement is sought by   proceedings in equity or at law).          Section 4.7 Financial Statements. The Historical Financial Statements delivered to the   Administrative Agent (it being understood that such financial statements shall be deemed to have   been delivered to the Administrative Agent by Parent’s posting of such information on the SEC   website on the Internet at https://www.sec.gov/edgar/searchedgar/companysearch.html) fairly   present in all material respects on a Consolidated basis the financial position of Parent as at the  dates of such Historical Financial Statements, and the results of the operations and changes of  financial position for the periods then ended (other than customary year-end adjustments for  unaudited financial statements). All such financial statements, including the related schedules  and notes thereto, have been prepared in accordance with GAAP.          Section 4.8 No Material Adverse Change. Since the date of the Historical Financial   Statements, there has been no event or circumstance, either individually or in the aggregate, that   has had or would reasonably be expected to have a Material Adverse Effect.                                           60    

 

           Section 4.9 Tax Returns and Payments. Each of Parent and each of its Subsidiaries has   duly and timely filed or caused to be duly and timely filed all federal, state, local and other Tax   returns required by applicable law to be filed, and has timely paid all federal, state, local and   other Taxes, assessments and governmental charges or levies upon it or its property, income,   profits and assets which are due and payable (including in its capacity as a withholding agent),   whether or not shown on a Tax return, except for (i) those that are being diligently contested in   good faith by appropriate proceedings and for which Parent or the relevant Subsidiary shall have   established on its books adequate reserves or other appropriate provision in accordance with   GAAP and (ii) filings, Taxes and charges as to which the failure to make or pay would not   reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.          Section 4.10 Environmental Matters. None of the Loan Parties nor any of their   respective facilities or operations are subject to any outstanding written order, consent decree or   settlement agreement with any Person relating to any Environmental Law, any Environmental   Claim, or any Hazardous Materials activity that, individually or in the aggregate, would   reasonably be expected to have a Material Adverse Effect. To each Loan Party’s knowledge,   there are and have been no conditions, occurrences, or Hazardous Materials activities which   would reasonably be expected to form the basis of an Environmental Claim against any Loan   Party that, individually or in the aggregate, could reasonably be expected to have a Material   Adverse Effect. Compliance with all current or reasonably foreseeable future requirements   pursuant to or under Environmental Laws could not be reasonably expected to have, individually   or in the aggregate, a Material Adverse Effect. To each Loan Party’s knowledge, no event or   condition has occurred or is occurring with respect to any Loan Party relating to any   Environmental Law, any Release of Hazardous Materials or any Hazardous Materials activity   which individually or in the aggregate has had, or would reasonably be expected to have, a   Material Adverse Effect.           Section 4.11 Governmental Regulation. None of the Loan Parties is an “investment   company” as defined in, or is required to be registered as an “investment company” under, the   Investment Company Act of 1940, as amended.          Section 4.12 Employee Matters. None of the Loan Parties is engaged in any unfair   labor practice that would reasonably be expected to have a Material Adverse Effect. There is (a)   no unfair labor practice complaint pending against Parent or any of its Restricted Subsidiaries, or   to the best knowledge of Parent, threatened against any of them before the National Labor   Relations Board and no grievance or arbitration proceeding arising out of or under any collective   bargaining agreement that is so pending against Parent or any of its Restricted Subsidiaries or, to   the best knowledge of Parent, threatened against any of them, (b) no strike or work stoppage in   existence or, to the best knowledge of Parent, threatened involving Parent or any of its Restricted   Subsidiaries and (c) to the best knowledge of Parent, no union representation question existing  with respect to the employees of Parent or any of its Restricted Subsidiaries and, to the best  knowledge of Parent, no union organization activity that is taking place, except (with respect to  any matter specified in clause (a), (b) or (c) above, either individually or in the aggregate) such  as is not reasonably likely to have a Material Adverse Effect.                                           61    

 

         Section 4.13 ERISA.               (a)   Except as could not reasonably be expected to result in a Material Adverse  Effect, each Employee Benefit Plan is in material compliance with all applicable provisions of  ERISA and the regulations and published interpretations thereunder except for any required  amendments for which the remedial amendment period as defined in Section 401(b) or other  applicable provision of the Internal Revenue Code has not yet expired and except where a failure  to so comply would not reasonably be expected to have a Material Adverse Effect;               (b)   As of the Effective Date, except as would not reasonably be expected to  result in a Material Adverse Effect, no Pension Plan has been terminated, nor is any Pension Plan  in “at-risk” status pursuant to Section 303 of ERISA, nor has any funding waiver from the  Internal Revenue Service been received or requested with respect to any Pension Plan sponsored  by Parent, nor has there been any event requiring any disclosure under Section 4041(c)(3)(C) or  4063(a) of ERISA with respect to any Pension Plan sponsored by Parent; and               (c)   Except where the failure of any of the following representations to be  correct in all material respects would not reasonably be expected to have a Material Adverse  Effect, neither Parent nor any ERISA Affiliate has: (A) engaged in a nonexempt prohibited  transaction described in Section 406 of the ERISA or Section 4975 of the Internal Revenue  Code, (B) incurred any liability to the PBGC which remains outstanding other than the payment  of premiums and there are no premium payments which are due and unpaid, (C) failed to make a  required contribution or payment to a Multiemployer Plan, or (D) failed to make a required  payment under Section 412 of the Internal Revenue Code.         Section 4.14 Margin Stock. No part of the proceeds of any Loan will be used, directly  or indirectly, for any purpose that entails a violation of, or that is inconsistent with, Regulation T,  Regulation U or Regulation X.         Section 4.15 Solvency. As of the Effective Date, both before and after giving effect to  the Effective Date Term Loans to be made on the Effective Date, and the Second Draw Term  Loans to be made on the Second Draw Date, Parent and its Subsidiaries on a consolidated basis  are and will be Solvent.         Section 4.16 Disclosure. The representations and warranties of the Loan Parties  contained in any Loan Document and in the other documents, certificates or written statements  furnished to any Agent or Lender by or on behalf of Parent or any of its Subsidiaries and for use  in connection with the transactions contemplated hereby, taken as a whole, do not contain any  untrue statement of a material fact or omit to state a material fact (known to any Loan Party, in  the case of any document not furnished by or on behalf of any Loan Party) necessary in order to  make the statements contained herein or therein not misleading in any material respect at such  time in light of the circumstances in which the same were made (giving effect to all written  supplements and updates provided thereto prior to the Effective Date). Any projections and pro  forma financial information prepared by Parent and provided to the Lenders are based upon good  faith estimates and assumptions believed by Parent to be reasonable at the time made, it being  recognized by Lenders that such projections as to future events are not to be viewed as facts and                                         62   

 

     that actual results during the period or periods covered by any such projections may differ from  the projected results and such differences may be material.          Section 4.17 Sanctions; PATRIOT Act; Anti-Corruption.                 (a)   No Loan Party is, nor, to the knowledge of any such Loan Party, any   director, officer, employee, agent, affiliate or representative thereof, an individual or entity that   (i) is, or is owned fifty percent or more or controlled by one or more individuals or entities that  are currently the subject or target of any Sanctions, including as a result of being listed on  OFAC’s List of Specially Designated Nationals or HMT’s Consolidated List of Financial  Sanctions Targets (“Sanctioned Person”) or (ii) located, organized or resident in a Designated  Jurisdiction. Each Loan Party and its Subsidiaries (if any) have in the past five years conducted  their businesses in compliance in all material respects with all applicable Sanctions and have  instituted and maintained policies and procedures designed to promote and achieve compliance  with such Sanctions.                (b)   The Loan Parties and their Subsidiaries (if any) are in compliance in all  material respects with all applicable Anti-Bribery and Anti-Corruptions Laws and Anti- Terrorism and Money Laundering Laws.               (c)   The Loan Parties and their Subsidiaries (if any) have in the past five years  conducted their businesses in compliance in all material respects with Anti-Bribery and Anti- Corruption Laws and Anti-Terrorism and Money Laundering Laws and have instituted and  maintain policies and procedures reasonably designed to promote and achieve compliance with  such laws.         Section 4.18 Security Documents. The Security Documents are effective to create in   favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable   security interest in the Collateral described therein and proceeds and products thereof. In the case   of the Pledged Equity Interests (as defined in the Security Agreement), when certificates   representing such Pledged Equity Interests (if any) are delivered to the Collateral Agent, and in   the case of the other Collateral described in the Security Agreement in which a security interest   may be perfected by filing a financing statement under the UCC, when financing statements and   other filings to be specified on the relevant schedule(s) to the Security Agreement in appropriate   form are filed in the offices to be specified on such schedule(s), the Security Agreement shall   constitute a fully perfected first priority Lien on, and security interest in, all right, title and   interest of the Loan Parties in such Collateral and the proceeds thereof, as security for the   Obligations, in each case prior and superior in right to any other Person (except for any   Permitted Liens).           Section 4.19 Adverse Proceedings; Compliance with Law.                 (a)   There are no Adverse Proceedings, individually or in the aggregate, that   would reasonably be expected to have a Material Adverse Effect.                 (b)   None of the Loan Parties (i) is in violation of any applicable laws that,   individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect   or (ii) is subject to or in default with respect to any final judgments, writs, injunctions, decrees,                                         63    

 

   rules or regulations of any court or any federal, state, municipal or other governmental  department, commission, board, bureau, agency or instrumentality, domestic or foreign, that,  individually or in the aggregate, would reasonably be expected to have a Material Adverse  Effect.         Section 4.20 Properties. Each of Parent and its Restricted Subsidiaries has (i) good,  sufficient and legal title to (in the case of fee interests in real property), (ii) valid leasehold  interests in (in the case of leasehold interests in real or personal property), (iii) valid licensed  rights in (in the case of licensed interests in intellectual property) and (iv) good title to (in the  case of all other personal property), all of their respective properties and assets reflected in their  respective financial statements referred to in Section 4.7, in each case except for assets disposed  of since the date of such financial statements in the ordinary course of business and except where  the failure to have such title to, interests in or rights in would not reasonably be expected to have  a Material Adverse Effect. Except as permitted by this Agreement, all such properties and assets  are free and clear of Liens.         Section 4.21 Use of Proceeds.               (a)   Parent will use the proceeds from the Loans as described in Section 2.3.                (b)   No part of the proceeds of the Loans shall be used, directly or knowingly  indirectly, for any payments (a) in furtherance of an offer, payment, promise to pay, or  authorization of the payment or giving of money, or anything else of value, to any Person in  violation of any applicable Anti-Bribery and Anti-Corruption Laws or Anti-Terrorism and  Money Laundering Laws, (b) for the purpose of funding, financing or facilitating any activities,  business or transaction of or with any Sanctioned Person or in any Designated Jurisdiction, in  each case to the extent such activities, businesses or transactions would be prohibited by  applicable Sanctions or (c) in any manner that would result in the violation of any Sanctions  applicable to any party hereto.         Section 4.22 EEA Financial Institution.  No Loan Party is an EEA Financial Institution.         Section 4.23 Beneficial Ownership Certificate.  As of the Effective Date, the  information included in the Beneficial Ownership Certification, if applicable, is true and correct  in all respects.                                    ARTICLE V                                                                    AFFIRMATIVE COVENANTS         Each Loan Party covenants and agrees that, until payment in full of all Obligations (other  than contingent indemnification and cost reimbursement obligations for which no claim has been  made), each Loan Party shall, and shall cause each of its Restricted Subsidiaries to:         Section 5.1 Financial Statements and Other Reports. In the case of Parent deliver to  the Administrative Agent (which shall furnish to each Lender):                                          64   

 

                 (a)   Monthly Financial Statements. Within thirty (30) days after the end of   each month, commencing with the first full month to occur after the Effective Date, the   condensed Consolidated balance sheet of Parent and its Subsidiaries as at the end of such month   and the related condensed Consolidated statements of income of Parent and its Subsidiaries for   such month and for the period from the beginning of the then current Fiscal Year to the end of   such month, setting forth in each case in comparative form the corresponding figures for the   corresponding periods of the previous Fiscal Year, to the extent prepared on a monthly basis, all   in reasonable detail, together with a Financial Officer Certification;                (b)   Quarterly Financial Statements. No later than five (5) Business Days after   the date on which Parent is required, under the Exchange Act, to file its Quarterly Report on   Form 10-Q with the SEC (plus any applicable extensions of such time period) (or, if Parent is no   longer required to file a Quarterly Report on Form 10-Q with the SEC, within sixty (60) days   after the end of each Fiscal Quarter), commencing with the Fiscal Quarter in which the Effective   Date occurs (other than any Fiscal Quarter that is the last Fiscal Quarter of a Fiscal Year), the   condensed Consolidated balance sheets of Parent and its Subsidiaries as at the end of such Fiscal   Quarter and the related condensed Consolidated statements of income, stockholders’ equity and   cash flows of Parent and its Subsidiaries for such Fiscal Quarter and for the period from the   beginning of the then current Fiscal Year to the end of such Fiscal Quarter, setting forth in each   case in comparative form the corresponding figures for the corresponding periods of the previous   Fiscal Year, all in reasonable detail, together with a Financial Officer Certification and a   Narrative Report with respect thereto;                (c)   Annual Financial Statements. No later than five (5) days after the date on   which Parent is required, under the Exchange Act, to file its Annual Report on Form 10-K with   the SEC (plus any applicable extensions of such time period) (or, if Parent is no longer required   to file an Annual Report on Form 10-K with the SEC, within ninety (90) days after the end of the  Fiscal Year), commencing with the Fiscal Year in which the Effective Date occurs, (i) the  Consolidated balance sheets of Parent and its Subsidiaries as at the end of such Fiscal Year and  the related Consolidated statements of income, stockholders’ equity and cash flows of Parent and  its Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the  corresponding figures for the previous Fiscal Year covered by such financial statements, in  reasonable detail, together with a Financial Officer Certification and a Narrative Report with  respect thereto; and (ii) with respect to such Consolidated financial statements a report thereon of  Ernst & Young LLP or other independent certified public accountants of recognized national  standing selected by Parent (which report and/or the accompanying financial statements shall be  unqualified as to going concern and scope of audit (other than a going concern qualification  resulting from an upcoming maturity date under any material Indebtedness occurring within one  year from the time such opinion is delivered), and shall state that such Consolidated financial  statements fairly present, in all material respects, the Consolidated financial position of Parent  and its Subsidiaries as at the dates indicated and the results of their operations and their cash  flows for the periods indicated in conformity with GAAP applied on a basis consistent with prior   years (except as otherwise disclosed in such financial statements) and that the examination by   such accountants in connection with such Consolidated financial statements has been made in   accordance with generally accepted auditing standards);                                           65    

 

                 (d)   Compliance Certificate. Together with each delivery of financial   statements of Parent and its Subsidiaries pursuant to Sections 5.1(a), (b) and (c), a duly executed   and completed Compliance Certificate;                (e)   [Reserved].                 (f)   Notice of Default. Promptly (and in any event within three (3) Business   Days) upon (i) the occurrence of any condition or event that constitutes a Default or an Event of   Default or that notice has been given to any Loan Party with respect thereto; (ii) any officer of   any Loan Party obtaining knowledge that any Person has given any notice to Parent or any of its   Restricted Subsidiaries or taken any other action with respect to any event or condition set forth   in Section 8.1; (iii) the occurrence of any event of default as defined in any agreement, indenture  or other instrument governing Indebtedness of Parent or any Loan Party, whether or not such  Indebtedness is accelerated or such event of default is waived; or (iv) the occurrence of any event  or change that has caused or evidences, either in any case or in the aggregate, a Material Adverse  Effect, Parent shall deliver a certificate of an Authorized Officer specifying the nature and period  of existence of such condition, event or change, or specifying the notice given and action taken  by any such Person and the nature of such claimed Event of Default, Default, default, event or  condition, and what action Parent has taken, is taking and proposes to take with respect thereto;               (g)   Notice of Litigation. Promptly upon any Loan Party obtaining knowledge   of (i) any Adverse Proceeding not previously disclosed in writing by Parent to the Lenders or (ii)  any development in any Adverse Proceeding that, in the case of either clause (i) or (ii), could be  reasonably expected to have a Material Adverse Effect, or seeks to enjoin or otherwise prevent  the consummation of, or to recover any damages or obtain relief as a result of, the transactions  contemplated hereby, or the exercise of rights or performance of obligations under any Loan  Document, a written notice thereof together with such other information as may be reasonably  available to Parent to enable the Lenders and their counsel to evaluate such matters;               (h)   ERISA. Promptly upon any Loan Party becoming aware of the occurrence   of or forthcoming occurrence of any ERISA Event which could reasonably be expected to result   in a Material Adverse Effect, a written notice specifying the nature thereof, and copies of such   documentation related thereto as may be reasonably available to Parent or any of its Wholly-  Owned Subsidiaries that are Restricted Subsidiaries to enable the Lenders and their counsel to   evaluate such matter;                (i)   Electronic Delivery. Documents required to be delivered pursuant to   Sections 5.1(b) or (c) (to the extent any such documents are included in materials otherwise filed   with the SEC) and notices and documents required to be delivered pursuant to Sections 5.1(a),   (f), (g), and (k) (A) may be delivered electronically and if so delivered, shall be deemed to have   been delivered on the date on which (i) Parent posts such documents or notices (which may be   press releases), or provides a link thereto, on Parent’s website on the Internet; or (ii) such   documents or notices (which may be press releases) are filed with or furnished to the SEC for   public availability or posted on Parent’s behalf on an Internet or intranet website, if any, to which   each Lender and the Administrative Agent have access (whether a commercial or third-party   website) and, in the case of each of clauses (i) and (ii), if NRZ is no longer a public company that                                          66    

 

   files or furnishes such information to the SEC for public availability, the Lenders are provided  with notification of such posting;               (j)   Information Regarding Collateral.                    (i)     Prior written notice of any proposed change (A) in any Loan        Party’s legal name, (B) any Loan Party’s form of organization or (C) in any Loan Party’s        jurisdiction of organization, in each case, together with supporting documentation as        reasonably requested by the Collateral Agent.  Parent agrees not to effect or permit any        change referred to in the preceding sentence unless all filings have been made under the        UCC or otherwise that are required in order for the Collateral Agent to continue at all        times following such change to have a valid, legal and perfected security interest in all       the Collateral as contemplated in the Security Documents;                  (ii)    No later than the date financial statements are due pursuant to       Section 5.1(b) or (c) with respect to any Fiscal Quarter, a list of any Permitted Liens       incurred pursuant to clause (x) (to the extent such Lien secures any Indebtedness), (xi) (to        the extent such Lien secures any Indebtedness), (xii), (xiv), (xv) (to the extent such Lien       secures any Refinancing of any Indebtedness secured by a Lien referred to in clause (ix)),       (xxvi), (xxvii), (xxviii), (xxix) or (xxx) thereof during such Fiscal Quarter, and promptly       thereafter any supporting information reasonably requested by the Administrative Agent       or any Lender; and                 (iii)    Parent shall promptly (and in any event within five (5) Business        Days) notify the Administrative Agent upon becoming aware of any Lien (other than a        Permitted Lien) being granted or  established or becoming enforceable over any of the        related Collateral, together with a description thereof;               (k)   Other Information. (A) Promptly upon their becoming available, copies of  (i) all financial statements, reports, notices and proxy statements sent or made available generally  by Parent to its security holders acting in such capacity, (ii) all regular and periodic reports and  all registration statements and prospectuses, if any, filed by any Loan Party with any securities  exchange or with the SEC and (iii) all press releases and other statements made available  generally by any Loan Party to the public concerning material developments in the business of  any Loan Party and (B) such other information and data with respect to the operations, business  affairs and financial condition of Parent and the Restricted Subsidiaries as from time to time may  be reasonably requested by the Administrative Agent or any Lender;               (l)   Financial Covenants.                    (i)     If, during any calendar month, one or more transactions of Parent       and its Subsidiaries, in the aggregate, result in a net realized loss (calculated in       accordance with GAAP) of $500,000,000 or more, within three (3) Business Days of the       occurrence of such loss, Parent will notify Administrative Agent thereof; and                  (ii)     Parent shall, within three (3) Business Days, notify the        Administrative Agent if Cash Liquidity at any time falls below the level required by        Section 6.7(b); and                                        67   

 

                 (m)   External Valuations. Promptly upon receipt by any Loan Party or its   Subsidiaries, copies of all third party valuation reports or other appraisals or valuations, in each   case relating to MSRs.          Section 5.2 Existence. Except as otherwise permitted under Section 6.8 or, other than   with respect to the existence of any Subsidiary Guarantor, NewRez or any Unencumbered Asset   Equity Pledge Subsidiary, where the failure to do so could not reasonably be expected to have a   Material Adverse Effect, at all times preserve and keep in full force and effect its existence and   all rights and franchises, licenses and permits material to its business; provided that no Restricted   Subsidiary shall be required to preserve any such existence and neither Parent nor any of its   Restricted Subsidiaries shall be required to preserve, right or franchise, licenses and permits if   such Person’s board of directors (or similar governing body) shall determine that the   preservation thereof is no longer desirable in the conduct of the business of such Person and that   the loss thereof would not be materially adverse to such Person or to Lenders.          Section 5.3 Payment of Taxes. Pay all Taxes imposed upon it or any of its properties   or assets or in respect of any of its income, businesses or franchises before any penalty or fine   accrues thereon; provided that no such Tax need be paid if (a) the failure to pay such Tax could   not reasonably be expected to have a Material Adverse Effect or (b) it is being contested in good   faith by appropriate proceedings promptly instituted and diligently conducted, so long as   adequate reserve or other appropriate provision, as shall be required in conformity with GAAP   shall have been made therefor.           Section 5.4 Insurance. In the case of Parent, maintain or cause to be maintained, with   financially sound and reputable insurers, such public liability insurance, third party property   damage insurance, business interruption insurance and casualty insurance with respect to   liabilities, losses or damage in respect of the assets, properties and businesses of the Loan Parties   as may customarily be carried or maintained under similar circumstances by Persons of   established reputation engaged in similar businesses, in each case in such amounts (giving effect   to self-insurance), with such deductibles, covering such risks and otherwise on such terms and   conditions as are customary for such Persons.           Section 5.5 Books and Records; Inspections. Maintain proper books of record and   accounts in which full, true and correct entries in conformity in all material respects with GAAP   shall be made of all dealings and transactions in relation to its business and activities. Parent   shall, and shall cause each of its Restricted Subsidiaries to, permit any authorized representatives   designated by any Lender to visit and inspect any of the properties of Parent and any of its   Restricted Subsidiaries, to inspect, copy and take extracts from its and their financial and   accounting records and to discuss its and their affairs, finances and accounts with its and their   officers and independent public accountants, all upon reasonable notice and at such reasonable   times during normal business hours and as often as may reasonably be requested; provided that   (i) all such copies, extracts, records and other information shall remain subject to the provisions  of Section 10.15 and (ii) neither Parent nor any of its Restricted Subsidiaries will be required to  disclose, permit the inspection, examination or making of extracts, or discussion of, any  documents, information or other matter that Parent believes in good faith (A) constitutes trade  secrets or proprietary information, (B) which is subject to a confidentiality agreement not entered  into in contemplation of this provision that prevents representatives of the Lenders to view such                                          68    

 

     information or in respect of which such disclosure is then prohibited by law or (C) is subject to  attorney-client or similar privilege, or constitutes attorney work product. No more than one such  inspection shall be made in any Fiscal Year at Parent’s expense; provided that following and   during the occurrence of an Event of Default, Parent and the Restricted Subsidiaries shall permit   authorized representatives designated by the Lenders to make such additional number of   additional inspections as the Lenders may request at Parent’s expense.          Section 5.6 Conference Calls. Parent shall, within ten (10) Business Days after   delivering to the Administrative Agent any report required by Sections 5.1(a) and (b), hold a   conference call for the Administrative Agent and the Lenders to discuss such reports and the   results of operations for the relevant annual or quarterly reporting period; provided that such call   may be combined with any similar call held for any of Parent’s other lenders or security holders.   If Parent is no longer a public company whose equity securities are registered pursuant to the  Securities Exchange Act of 1934, as amended, it shall deliver a note to the Administrative Agent  no fewer than three (3) Business Days prior to the date of the conference call required to be held  in accordance with this Section 5.6, announcing the time and date of such conference call and  including all information necessary to access the call.         Section 5.7 Compliance with Laws. Comply with the requirements of all applicable   laws, rules, regulations and orders of any Governmental Authority, noncompliance with which   would reasonably be expected to have, individually or in the aggregate, a Material Adverse   Effect.          Section 5.8 Environmental. Promptly take any and all actions necessary to (a) cure any   violation of applicable Environmental Laws by Parent or its Restricted Subsidiaries that would   reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and   (b) make an appropriate response to any Environmental Claim against Parent or any of its  Restricted Subsidiaries and discharge any obligations it may have to any Person thereunder  where failure to do so would reasonably be expected to have, individually or in the aggregate, a  Material Adverse Effect.         Section 5.9 Additional Subsidiary Guarantors.                (a)   In the event (i) any Subsidiary of Parent that is not a Subsidiary Guarantor   incurs Indebtedness (other than Indebtedness incurred pursuant to Section 6.1(c), (i), (j), (k), (l),   (m), (n), (o), (p) and (r)) that is guaranteed by any Loan Party or (ii) any Person other than a   Loan Party acquires any Equity Interests in a Subsidiary Guarantor, then, in each case of (i) and   (ii), such Subsidiary or Person shall be required to become a Subsidiary Guarantor hereunder and   within thirty (30) days after such event (or such longer period as the Administrative Agent may   agree in its reasonable discretion) deliver (i) a Counterpart Agreement executed by such   Subsidiary or other Person, (ii) a Pledge Supplement (as defined in the Security Agreement) to   the Security Agreement or other relevant Security Document, as applicable, executed by such   Subsidiary or other Person, and take all such further actions and execute all such further   documents and instruments as required thereby to secure the Obligations for the benefit of the   Secured Parties, including all actions necessary to cause such Lien to be duly perfected on a first-  priority basis (subject to the Permitted Liens) to the extent required thereby, and (iii) all such                                          69    

 

     documents, instruments, agreements, and certificates as are similar to those described in Sections   3.1(b), (c), (d), (e) and (f) with respect to such Subsidiary or other Person                (b)   At its option, Parent may designate any of its Subsidiaries as a Subsidiary   Guarantor by giving the Administrative Agent irrevocable written notice thereof, and promptly   after such notification (and in any event within thirty (30) days (or such longer period as the  Administrative Agent may agree in its reasonable discretion)), cause such Subsidiary to deliver  to the Administrative Agent (i) a Counterpart Agreement executed by such Subsidiary, (ii) a  Pledge Supplement (as defined in the Security Agreement) to the Security Agreement or other  relevant Security Document, as applicable, executed by such Subsidiary, and take all such further  actions and execute all such further documents and instruments as required thereby to secure the  Obligations for the benefit of the Secured Parties, including all actions necessary to cause such  Lien to be duly perfected on a first-priority basis (subject to the Permitted Liens) to the extent  required thereby, and (iii) all such documents, instruments, agreements, and certificates as are  similar to those described in Sections 3.1(b), (c), (d), (e), (f) and (g) with respect to such   Subsidiary, in each case, in form and substance reasonably acceptable to the Administrative  Agent.         Section 5.10 Further Assurances. At any time or from time to time upon the reasonable   request of the Administrative Agent, at the expense of the Loan Parties, promptly execute,   acknowledge and deliver such further documents and do such other acts and things as the   Administrative Agent or the Collateral Agent may reasonably request in order to effect fully the   purposes of the Loan Documents or of more fully perfecting or renewing the rights of the   Administrative Agent or the Lenders with respect to the Collateral (or with respect to any   additions thereto or replacements or proceeds thereof or with respect to any other property or   assets hereafter acquired by Parent or any Subsidiary of Parent which become part of the   Collateral).  In furtherance of, and not in limitation of the foregoing, each Loan Party (at its own   expense) shall take such actions as the Administrative Agent or the Collateral Agent may   reasonably request from time to time to ensure that the Obligations are guaranteed by the   Subsidiary Guarantors and are secured by the Collateral or that such Loan Party knows are   necessary, to establish, maintain, protect, perfect and continue the perfection of the Liens of the   Collateral Agent for the benefit of the Secured Parties intended to be created by the related   Security Documents and shall furnish timely notice of the necessity of any such action, together   with such instruments, in execution form if applicable, and such other information as may be   required or reasonably requested to enable the Collateral Agent to effect any such action.   Without limiting the generality of the foregoing, Parent shall, at its own expense, file or cause to   be filed or register or cause to be registered such financing statements and continuation   statements in all places necessary or advisable (in the reasonable opinion of the Administrative   Agent or Collateral Agent) to establish, maintain and perfect such security interests created   pursuant to the related Security Documents.           Section 5.11 Maintenance of Properties.  Parent shall keep all material property   necessary in the operation of its business in good working order and condition, ordinary wear   and tear and casualty excepted, except where the failure to do so could not reasonably be   expected to result in a Material Adverse Effect.                                           70    

 

           Section 5.12 AML; Sanctions.  Parent (a) will not conduct, and will not permit any of   its Subsidiaries, directors, officers or employees to conduct, business with or engage in any   transaction with any Sanctioned Person in violation of applicable Sanctions and (b) will maintain   in effect and enforce policies and procedures reasonably designed to promote compliance by   Parent, its Subsidiaries and its and their respective directors, officers, employees and agents with   Anti-Bribery and Anti-Corruption Laws, Anti-Terrorism and Money Laundering Laws and   applicable Sanctions.          Section 5.13 Post-Closing Covenant.                  (a)   Within ninety (90) days of the Effective Date (or such later date as the   Administrative Agent shall agree in its reasonable discretion), Parent shall deliver executed  deposit account control agreements and/or securities account control agreements, in form  reasonably acceptable to the Administrative Agent, for each of the deposit accounts and  securities accounts required to be maintained pursuant to Section 4.2 of the Security Agreement.               (b)   Within thirty (30) days of the Effective Date (or such later date as the  Administrative Agent shall agree in its reasonable discretion), Parent shall, and shall cause its  Subsidiaries to, enter into amendments in respect of any agreements or instruments governing  Indebtedness between Parent or any other Loan Party and any other Subsidiary on terms  reasonably acceptable to the Administrative Agent to provide that no payments shall be made  under such agreements on instruments to any Person other than a Loan Party while any Loans are  outstanding.               (c)   Within fifteen (15) days of the Effective Date (or such later date as the  Administrative Agent shall agree in its reasonable discretion), Parent shall deliver to the  Collateral Agent all certificates, instruments and other documents representing Pledged Equity  Interests (as defined in the Security Agreement) (if any) being pledged pursuant to the Security  Agreement and instruments of transfer for such certificates, instruments and other documents  executed in blank.                                     ARTICLE VI                                                                       NEGATIVE COVENANTS          Each Loan Party covenants and agrees that, until payment in full of all Obligations (other   than contingent indemnification and cost reimbursement obligations for which no claim has been   made), each Loan Party shall not, nor shall it cause or permit any of its Restricted Subsidiaries   to, and solely for purposes of Section 6.2, nor shall it cause or permit any of its Subsidiaries to   (and in all cases with respect to Unencumbered Asset Equity Pledge Subsidiaries, subject to   Section 6.15):          Section 6.1 Indebtedness. Directly or indirectly, create, incur, assume or guaranty,   suffer to exist, or otherwise become or remain directly or indirectly liable with respect to any  Indebtedness, except:               (a)   (i) the Obligations and (ii) subject to Section 2.10(a)(ii), any other  Indebtedness incurred by Parent and the Subsidiary Guarantors secured by a Lien on the                                         71    

 

     Collateral that is pari passu with the Lien on the Collateral securing the Obligations; provided   that such Indebtedness is subject to an intercreditor agreement reasonably acceptable to the  Administrative Agent;               (b)   Indebtedness of any Restricted Subsidiary of Parent owed to Parent or to  any Subsidiary of Parent, or of Parent to any Subsidiary of Parent; provided that any   Indebtedness of any Loan Party to another Loan Party or a Subsidiary (other than [***]) shall   provide on terms reasonably acceptable to the Administrative Agent that no payments shall be  made in respect of such Indebtedness to any Person other than a Loan Party while any Loans are  outstanding;               (c)    (i) Indebtedness of Parent or any of its Restricted Subsidiaries (including  letters of credit) in respect of banker’s acceptances, workers’ compensation claims, surety,  performance, bid, customs, stay, appeal, tax or similar bonds, security deposits, performance or  completion guarantees and payment obligations in connection with self-insurance or similar  obligations provided or obtained by Parent or any Restricted Subsidiary and (ii) Indebtedness of  Parent or any of its Restricted Subsidiaries owed to (including in respect of letters of credit for  the benefit of) any Person in connection with workers’ compensation, early retirement or  termination obligations, pension fund obligations or contributions or similar claims, obligations,   taxes or contributions for social security, wages or unemployment, health, disability or other   employee benefits, or property, casualty or liability insurance provided to Parent or any of its   Restricted Subsidiaries pursuant to reimbursement or indemnification obligations of such Person;                (d)   Indebtedness not otherwise permitted under this Section 6.1 that is secured   on a junior basis with the Liens securing the Obligations, unsecured or subordinated in right of   payment to the payment in full of the Obligations in an aggregate principal amount outstanding   at any time not to exceed $500,000,000 (or, if the MSR Cashflows are not pledged to secure   Indebtedness of Parent or any of its Subsidiaries, $750,000,000, so long as, upon any incurrence   of Indebtedness pursuant to this Section 6.1(d) in excess of $500,000,000 in the aggregate,   Parent applies the Net Cash Proceeds of any such Indebtedness in excess of $500,000,000 to   make a prepayment of the Loans, up to a maximum required prepayment of $50,000,000);   provided that (i) Parent and its Subsidiaries shall be in compliance with the financial covenants   set forth in Section 6.7 on a pro forma basis after giving effect to the incurrence of such   Indebtedness, (ii) such Indebtedness does not mature or have scheduled amortization or   mandatory prepayments prior to the date that is ninety-one (91) days following the latest   applicable Maturity Date at the time such Indebtedness is incurred (other than customary offers   to repurchase upon a change of control, asset sale or casualty event and customary acceleration   rights after an event of default), (iii) such Indebtedness has a Weighted Average Life to Maturity   no shorter than the remaining Weighted Average Life to Maturity of any existing Loans, (iv)   such Indebtedness shall not be incurred or guaranteed by any Person that is not a Loan Party, (v)   in the case of any Indebtedness that is secured on a junior basis with the Obligations, such   Indebtedness is secured only by all or a portion of the Collateral and is subject to an intercreditor   agreement reasonably acceptable to the Administrative Agent and (vi) in the case of any   Indebtedness that is subordinated in right of payment to the payment in full of the Obligations,   such Indebtedness is subject to a subordination agreement reasonably acceptable to the   Administrative Agent;                                          72    

 

                 (e)   guaranties by Parent or any Restricted Subsidiary of Indebtedness   permitted to be incurred pursuant to clauses (c), (i), (j), (k), (l), (m), (n), (o), (p) and (q) of this   Section 6.1 and any Refinancing Indebtedness with respect thereto, and, with respect to Parent or   any Restricted Subsidiary that is not a Subsidiary Guarantor, any other Indebtedness permitted to   be incurred pursuant to this Section 6.1 (other than guaranties of Non-Recourse Indebtedness,   except to the extent such guarantees are Standard Recourse Undertakings or customary   indemnities); provided that if the Indebtedness that is being guarantied is unsecured, the guaranty   shall also be unsecured;                 (f)   Refinancing Indebtedness of Parent or any of its Restricted Subsidiaries;                (g)   Indebtedness incurred or outstanding on the Effective Date and listed on   Schedule 6.1;                (h)   Indebtedness of any Person outstanding on the date of any acquisition of   Investments or other securities or assets from such Person, including through the acquisition of a  Person that becomes a Subsidiary of Parent or is acquired by, or merged or consolidated with or   into, Parent or any Subsidiary of Parent, or that is assumed by Parent or any of its Subsidiaries in   connection with any such acquisition (other than Indebtedness incurred by such Person in   connection with, or in contemplation of, such acquisition, merger or consolidation); provided,   however, that immediately after giving effect to the incurrence of such Indebtedness pursuant to   this clause (h) and, if applicable, the repayment, repurchase, defeasance, redemption,   Refinancing or other discharge of any other Indebtedness in connection with such acquisition,  merger or consolidation, Parent remains in pro forma compliance with the financial covenants set  forth in Section 6.7;               (i)   Indebtedness of Parent or any of its Restricted Subsidiaries under Hedge  Agreements, so long as the entering into of such Hedge Agreements are for bona fide hedging  activities and not for speculative purposes (as determined in good faith by the board of directors  of Parent or senior management of Parent or such other Restricted Subsidiary);               (j)   Indebtedness of Parent or any of its Restricted Subsidiaries arising from  agreements of Parent or any of its Restricted Subsidiaries providing for indemnification,  adjustment of purchase price, earn-outs or similar obligations, in each case incurred or assumed  in connection with an investment in or the acquisition or disposition of any business, Investments  or other securities or assets of Parent or any business, Investments, other securities or assets or  Equity Interests of a Subsidiary of Parent, other than guarantees of Indebtedness incurred by any  Person acquiring all or any portion of such business, Investments, assets or Equity Interests for  the purpose of financing such acquisition;               (k)   Indebtedness incurred by Parent or any of its Restricted Subsidiaries in  connection with (i) insurance premium financing arrangements, (ii) deferred compensation  payable to directors, officers, members of management, employees or consultants of Parent or  any Subsidiary of Parent or of any Manager or any Subsidiary of any Manager, (iii) contingent  obligations arising under indemnity agreements to title insurance companies to cause such title  insurers to issue title insurance policies in the ordinary course of business with respect to real  property of Parent or any Subsidiary of Parent, (iv) unfunded pension fund and other employee                                          73    

 

     benefit plan obligations and liabilities to the extent they are permitted to remain unfunded under   applicable law and (v) obligations, contingent or otherwise, for the payment of money under any   non-compete, consulting or similar arrangements entered into with the seller of a business or any   other similar arrangements providing for the deferred payment of the purchase price for an   Investment or other securities or assets or any other acquisition;                (l)   (i) Indebtedness of Parent or any of its Restricted Subsidiaries owed to   banks and other financial institutions incurred in connection with Cash Management Obligations   and other ordinary banking arrangements to provide treasury services or to manage cash balances   of Parent and its Subsidiaries and (ii) Indebtedness of Parent or any of its Restricted Subsidiaries   arising from the honoring by a bank or other financial institution of a check, draft or similar   instrument drawn against insufficient funds; provided, however, that such Indebtedness is   extinguished within five (5) Business Days of incurrence;                (m)   Indebtedness consisting of promissory notes issued by Parent or any of its   Restricted Subsidiaries to future, present or former directors, officers, employees or consultants   of Parent or any Manager or any of their respective Subsidiaries or their respective assigns,   estates, heirs, family members, spouses, former spouses, domestic partners or former domestic   partners to finance the purchase, redemption or other acquisition, cancellation or retirement of   Equity Interests, or options, warrants, equity appreciation rights or other rights to purchase or   acquire Equity Interests or other equity-based awards, of Parent or any Subsidiary of Parent;                (n)   Permitted Funding Indebtedness;                (o)   Permitted Securitization Indebtedness and Indebtedness under Credit   Enhancement Agreements or arising out of or to fund purchases of all remaining outstanding   asset backed securities of any Securitization Entity for the purpose of relieving Parent or a   Subsidiary of Parent of the administrative expense of servicing such Securitization Entity;                (p)   Indebtedness of Parent or any of its Restricted Subsidiaries evidenced by  Capitalized Lease Obligations and purchase money Indebtedness; provided that in no event shall   (x) the sum of the aggregate principal amount of all Capitalized Lease Obligations and purchase   money Indebtedness permitted by this clause (p) exceed $10,000,000 at any time outstanding and   (y) the amount of Indebtedness secured by such Liens exceed the purchase price of the assets   acquired with the proceeds of such Indebtedness;                 (q)   Indebtedness consisting of Convertible Notes and Permitted Convertible   Note Hedging Agreements; and                (r)   Non-Recourse Indebtedness.           Section 6.2 Liens.  Create, incur, assume or suffer to exist any Lien upon any property   or assets of any kind (real or personal, tangible or intangible) of Parent or any Subsidiary,   whether now owned or hereafter acquired by it, except Permitted Liens.          Section 6.3 No Further Negative Pledges. Except with respect to (a) this Agreement   and the other Loan Documents, (b) assets and property encumbered to secure payment of   Indebtedness that is permitted to be incurred pursuant to Section 6.1 and subject to a Permitted                                          74    

 

     Lien, or other customary restrictions set forth in any Indebtedness that is permitted to be incurred   pursuant to Section 6.1 and subject to a Permitted Lien, (c) assets and property to be sold   pursuant to an executed agreement with respect to a sale of assets, (d) restrictions by reason of   customary provisions restricting assignments, subletting or other transfers contained in leases,   licenses and similar agreements entered into in the ordinary course of business (provided that   such restrictions are limited to the property or assets secured by such Liens or the property or  assets subject to such leases, licenses or similar agreements, as the case may be), (e) restrictions  by reason of customary provisions restricting assignments, subservicing, subcontracting or other  transfers contained in Servicing Agreements (provided that such restrictions are limited to the  individual Servicing Agreement and related agreements or the property and/or assets subject to  such agreements, as the case may be), (f) restrictions that exist pursuant to applicable  requirements of law, (g) restrictions by reason of customary provisions in joint venture  agreements and similar agreements applicable to Joint Ventures permitted under Section 6.6, (h)   restrictions binding on a Subsidiary at the time such Subsidiary becomes a Subsidiary of Parent,   so long as such restrictions were not entered into in contemplation of such Person becoming a   Subsidiary of Parent, (i) restrictions on Cash or other deposits imposed by agreements with   customers and other counterparties entered into in the ordinary course of business and (j)   restrictions by reason of customary provisions restricting liens, assignments, subservicing,   subcontracting or other transfers contained in agreements with any Specified Government Entity   relating to the origination, sale, securitization and servicing of mortgage loans (provided that   such restrictions are limited to the individual agreement and related agreements and/or the   property or assets subject to such agreements, as the case may be), no Loan Party nor any of its   Subsidiaries shall enter into any agreement or suffer to exist any restriction prohibiting the   creation or assumption of any Lien upon any of its properties or assets, whether now owned or   hereafter acquired, to secure the Obligations (other than an agreement of a Securitization Entity   that prohibits such Securitization Entity from creating or assuming any Lien upon its properties   or assets to secure the Obligations).          Section 6.4 Limitations on Prepayment of, and Modifications to, Unsecured or   Subordinated Indebtedness.                 (a)   Directly or indirectly through any manner or means, pay, make or set apart   any sum for any Indebtedness incurred pursuant to Section 6.1(d) except that Parent or any of its   Subsidiaries may (i) redeem or repurchase such Indebtedness if such redemption or repurchase is  completed through the issuance of Equity Interests (other than Disqualified Equity Interests) or  new unsecured Indebtedness, (ii) make regularly scheduled or mandatory repayments or  redemptions of such Indebtedness, and (iii) incur Refinancing Indebtedness with respect to such  Indebtedness; or               (b)   change or amend the terms of any unsecured or subordinated Indebtedness   incurred pursuant to Section 6.1(d) if the effect of such changes or amendments, taken as a   whole, is materially adverse to the interests of the Secured Parties under the Loan Documents.          Section 6.5 Dividends. Directly or indirectly, authorize, declare or pay any Dividends   with respect to a Parent or any Restricted Subsidiary, except:                                           75    

 

                 (a)   any Restricted Subsidiary may pay Dividends to Parent or to any  Restricted Subsidiary;                (b)   any Restricted Subsidiary which is not a Wholly-Owned Subsidiary may  pay Dividends to its shareholders, members or partners generally so long as Parent or a  Restricted Subsidiary which owns the Equity Interests in the Subsidiary paying such Dividends  receives at least its proportionate share thereof (based upon its relative holding of the Equity  Interests in the Subsidiary paying such Dividends and taking into account the relative  preferences, if any, of the various classes of Equity Interests of such Subsidiary);               (c)   Parent or any Restricted Subsidiary may make or pay Dividends on its  Equity Interests solely through the issuance of additional shares of Qualified Equity Interests of   Parent or such Subsidiary (but not in cash), provided that in lieu of issuing additional shares of   Qualified Equity Interests as Dividends, Parent or such Subsidiary may increase the liquidation   preference of the shares of Qualified Equity Interests in respect of which such Dividends have   accrued;                (d)   Parent may make or pay Dividends or consummate any irrevocable   redemption within sixty (60) days after the date of declaration of such Dividend or notice of such   redemption if the Dividend or payment of the redemption price, as the case may be, would have   been permitted on the date of declaration or notice hereunder;                (e)   Parent may make or pay Dividends, either (i) through the application of   net cash proceeds of a substantially concurrent sale for cash (other than to a Subsidiary of Parent)   of shares of Qualified Equity Interests of Parent or (ii) through the application of a substantially   concurrent cash capital contribution (other than by a Subsidiary of Parent) received by Parent   from its equityholders in respect of Qualified Equity Interests; provided that (x) no Event of   Default then exists or would result therefrom or (y) the amount of Dividends paid pursuant to   this clause (e) shall not exceed the net cash proceeds of such sale or amount of cash capital   contribution received, as applicable;                 (f)   Parent may (A) repurchase Equity Interests in connection with the exercise   of stock options or warrants to the extent such Equity Interests represent a portion of the exercise   price of those stock options or warrants and (B) repurchase Equity Interests or options to   purchase Equity Interests in connection with the exercise of stock options to the extent necessary   to pay applicable withholding taxes;                (g)   Parent may make or pay Dividends on preferred stock so long as no   Default then exists or would result therefrom;                 (h)   Parent may authorize, declare, make and pay Permitted REIT   Distributions;                (i)   Parent may authorize, declare, make and pay additional Dividends on its   common stock in any Fiscal Year to the extent that Core Earnings for the prior Fiscal Year   exceed the amount necessary to make Permitted REIT Distributions in the current Fiscal Year, in   an aggregate amount equal to such excess;                                          76    

 

                 (j)   Parent may repurchase, retire or otherwise acquire or retire for value   (i) Equity Interests (or options, warrants or other rights to acquire Equity Interests) of Parent   from any future, current or former officer, director, manager or employee (or any spouses,   successors, executors, administrators, heirs or legatees of any of the foregoing) of Parent, any of   its Subsidiaries or any Manager, or (ii) warrants (including the Warrants) to acquire Equity   Interests of Parent, in an aggregate amount for all such payments not to exceed $15,000,000 in   any calendar year (with unused amounts in any calendar year being permitted to be carried over   to the next succeeding calendar year); and                (k)   Parent or any of its Subsidiaries may make any payment or delivery   pursuant to the terms of (i) any Convertible Notes (including, without limitation, upon   conversion, redemption, required repurchase, an interest payment date or maturity) or (ii) any   Permitted Convertible Note Hedging Agreement or in connection with the early termination   thereof.    Notwithstanding the foregoing, in no event shall Parent or any Subsidiary be permitted to,   directly or indirectly, make any Dividend (i) with the Equity Interests of NewRez or its   Subsidiaries or any Person (other than a Loan Party) that directly or indirectly owns Equity   Interests of NewRez, unless, after giving effect thereto either (A) such Equity Interests remain   owned, directly or indirectly, by a Subsidiary Guarantor or (B) a prepayment is made pursuant to   Section 2.10(d) in an amount equal to the fair market value of such Equity Interests (as   determined in good faith by Parent and certified to the Administrative Agent), or (ii) with the   assets (other than Cash and Cash Equivalents) of NewRez or its Subsidiaries, unless, after giving   effect thereto, either (A) such assets remain owned, directly or indirectly, by a Subsidiary   Guarantor or (B) a prepayment is made pursuant to Section 2.10(d) in an amount equal to the fair   market value of such assets (as determined in good faith by Parent and certified to the   Administrative Agent).          Section 6.6 Investments. Directly or indirectly, make or own any Investment in any   Person, including any Joint Venture, except:                (a)   Investments in Cash and Cash Equivalents;               (b)   [Reserved];               (c)   Investments by Parent or any Restricted Subsidiary existing on the   Effective Date, and Investments consisting of any extension, modification or renewal of any such   Investment; provided that the amount of any such Investment may only be increased pursuant to   this clause (c) to the extent required by the terms of such Investment as in existence on the  Effective Date;               (d)   Investments (i) in any Securities, REO Assets and other Investments  (including debt obligations) received in satisfaction or partial satisfaction thereof from  financially troubled account debtors and (ii) deposits, prepayments and other credits to suppliers  made in the ordinary course of business consistent with the past practices of Parent and its  Subsidiaries;                                           77    

 

               (e)   intercompany loans and other intercompany Investments by and among  Parent and its Subsidiaries that comply with the requirements of this Agreement;              (f)   Permitted Acquisitions;               (g)   Hedge Agreements which constitute Investments so long as the entering  into of such Hedge Agreements are for bona fide hedging activities and not for speculative  purposes (as determined in good faith by the board of directors of Parent or senior management  of Parent or such other Restricted Subsidiary);               (h)   Investments by Parent or any Restricted Subsidiary in Securitization  Entities, Warehouse Facility Trusts and MSR Facility Trusts and Investments in mortgage- related securities or charge-off receivables in the ordinary course of business;               (i)   Investments arising out of purchases of all remaining outstanding asset- backed securities of any Securitization Entity and/or Securitization Assets of any Securitization  Entity for the purpose of relieving Parent or a Subsidiary of Parent of the administrative expense  of servicing such Securitization Entity;               (j)   Investments in MSRs and “excess” MSRs;               (k)   Investments in Residual Interests in connection with any Securitization,  Warehouse Facility or MSR Facility;                (l)   Investments in and making of Servicing Advances, securities backed by  Servicing Advance receivables, residential or commercial mortgage loans, REO Assets and  Securitization Assets (whether or not made in conjunction with the acquisition of MSRs);               (m)   Investments or guarantees of Indebtedness of one or more entities the sole  purpose of which is to originate, acquire, securitize and/or sell loans that are purchased, insured,  guaranteed or securitized by any Specified Government Entity;               (n)   promissory notes and other non-cash consideration, to the extent received  in connection with the sale of any assets or property;               (o)   Investments in Securities and consumer loans;                (p)   [Reserved];               (q)   Parent and its Restricted Subsidiaries may acquire and hold obligations of  their and the Manager’s officers and employees in connection with such officers’ and  employees’ acquisition of shares of Qualified Equity Interests of Parent or any Subsidiary (so  long as no cash is actually advanced by Parent or any Subsidiary in connection with the  acquisition of such obligations);               (r)   Indebtedness permitted by Section 6.1(e), to the extent constituting  Investments;                                         78   

 

                 (s)   Investments by Parent or any Restricted Subsidiary in the form of loans   extended to non-Affiliate borrowers in connection with any loan origination business of Parent   or any Restricted Subsidiary in the ordinary course of business;                (t)   endorsements for collection or deposit in the ordinary course of business;                (u)   to the extent constituting Investments, Dividends permitted pursuant to   Section 6.5;                (v)   other ordinary course origination Joint Ventures with mortgage lenders,   brokers, builders and other customer lending Joint Venture counterparties;                (w)   Investments in Permitted Convertible Note Hedging Agreements;                (x)   any other Investments by Parent and its Restricted Subsidiaries so long as   Tangible Book Value is at least, on a pro forma basis after giving effect to the making of such   Investment, the lesser of (i) $3,250,000,000 and (ii) the amount that is 5.42 times the sum of (A)   the aggregate outstanding principal amount of Indebtedness incurred pursuant to Section   6.1(a)(ii) plus (B) the outstanding principal amount of Loans hereunder; and                (y)   any other Investments if Parent determines in good faith that such  Investments are necessary (A) to maintain Parent’s status or ability to qualify for taxation as a  REIT, (B) to avoid the payment of all entity-level federal, state and local income or excise tax,  (C) so that none of the Loan Parties is an “investment company” as defined in, or is required to  be registered as an “investment company” under, the Investment Company Act of 1940, as  amended, or (D) to otherwise comply in all material respects with all applicable laws and  Governmental Authorizations.   Notwithstanding the foregoing, in no event shall Parent or any Subsidiary be permitted to,  directly or indirectly, make any Investment with the assets of NewRez or its Subsidiaries (other  than to any Subsidiary of NewRez) unless either (A) after giving effect thereto, such assets  remain owned, directly or indirectly, by a Subsidiary Guarantor or (B) a prepayment is made  pursuant to Section 2.10(d) in an amount equal to the fair market value of such assets (as  determined in good faith by Parent and certified to the Administrative Agent).         Section 6.7 Financial Covenants.                (a)   Minimum Tangible Book Value.  Parent will not permit Tangible Book   Value as of the last day of any month for which financial statements of Parent are required to   have been delivered pursuant to Section 5.1(a) to be less than the lesser of (i) $2,500,000,000 and   (ii) the greater of (x) the amount that is 4.17 times the sum of (A) the aggregate outstanding   principal amount of Indebtedness incurred pursuant to Section 6.1(a)(ii) plus (B) the outstanding   principal amount of Loans hereunder and (y) $2,000,000,000, in each case as of such date,   beginning with the month in which the Effective Date occurs.                (b)   Minimum Cash Liquidity.  Parent will not permit Cash Liquidity for any   calendar week (determined on an average basis, taking into account Cash Liquidity at the close   of business on each Business Day of such week) to be less than $125,000,000.                                          79    

 

           Section 6.8 Fundamental Changes. In a single transaction or series of related   transactions, consolidate or merge with or into any Person, or sell, assign, transfer, lease, convey   or otherwise dispose (“Dispose” or “Disposition”) of (x) all or substantially all of the Equity   Interests, property and assets or business of any Loan Party, (y) the Equity Interests or assets   constituting a business unit, line of business or division of Parent and its consolidated   Subsidiaries or (z) with respect to NewRez and its Subsidiaries, any Equity Interests in, or any  material assets of, NewRez or its Subsidiaries to any Person other than Parent or any other Loan  Party, except:               (a)   any Person may consolidate or merge with or into (i) Parent (including a  merger the purpose of which is to reorganize Parent into a new jurisdiction); provided, however,   that Parent shall be the continuing or surviving Person, or (ii) any one or more other Restricted   Subsidiaries; provided, however, that (x) a Restricted Subsidiary shall be the continuing or   surviving Person or (y) in the case of a Restricted Subsidiary that is a Loan Party, the surviving  Person assumes all of the obligations of such Loan Party under this Agreement and the other   Loan Documents, and, in the case of both (i) and (ii), (w) the Secured Parties’ rights in the   Collateral, including, without limitation, the existence, perfection and priority of any Lien   thereon, are not adversely affected in any material respect by such merger or consolidation, (x)   upon the reasonable request of the Administrative Agent after the consummation of such merger   or consolidation referred to in clause (y) above, Parent and each Loan Party expressly reaffirms   its obligations to the Secured Parties under this Agreement and the other Loan Documents, (y) no   Event of Default has occurred and is continuing at the time of such merger or consolidation or   shall occur as a result of such merger or consolidation and (z) such merger or consolidation does   not result in a Change of Control;                (b)   (i) any Restricted Subsidiary that is not a Loan Party may merge or   consolidate with or into any other Restricted Subsidiary that is not a Loan Party; provided that if   NewRez or any of its Subsidiaries are involved in such merger or consolidation, the continuing   or surviving Person shall remain owned, directly or indirectly, by a Subsidiary Guarantor, and  (ii) any Restricted Subsidiary (other than NewRez or its Subsidiaries) may liquidate, wind up,  dissolve or change its legal form if Parent determines in good faith that such action is in the best  interests of Parent and if not materially disadvantageous to the Lenders; provided that if NewRez   or any of its Subsidiaries are involved in such liquidation, winding up or dissolution, the assets of   such Person after giving effect to such liquidation, winding up or dissolution shall remain owned,   directly or indirectly, by a Subsidiary Guarantor or a prepayment shall be made pursuant to   Section 2.10(d) in an amount equal to the fair market value of such assets (as determined in good   faith by Parent and certified to the Administrative Agent);                (c)   any Restricted Subsidiary that is not a Loan Party may merge or   consolidate with any other Person in order to effect an Investment permitted pursuant to Section   6.6; provided, however, that (i) the continuing or surviving Person shall be a Restricted   Subsidiary and (ii) to the extent constituting an Investment, such Investment must be a permitted  Investment in accordance with Section 6.6 (including the last sentence thereof);                (d)   Dispositions between and among Loan Parties;                                            80    

 

                 (e)   any sale, transfer or other Disposition, directly or indirectly, of any Equity   Interests in, or any assets of, NewRez or its Subsidiaries in any transaction or series of related   transactions; provided that, if such sale, transfer or other Disposition is of any Equity Interest in   NewRez or any of its Subsidiaries that hold material assets, or material assets of NewRez or any   of its Subsidiaries, outside of the ordinary course of business (it being understood that sales,   transfers or other Dispositions of mortgages, MSRs, “excess” MSRs, to-be-announced mortgage-  backed securities and Servicing Advances are in the ordinary course of business for NewRez and   its Subsidiaries), either (i) (x) such sale, transfer or other Disposition is for fair market value (as   determined in good faith by Parent), (y) Parent and its Subsidiaries receive consideration at least   90% of which consists of cash or Cash Equivalents (other than in connection with an Investment   permitted by the last paragraph of Section 6.6) and (z) Parent complies with its obligations under   Section 2.10(d), or (ii) after giving effect to such sale, transfer or other Disposition, such Equity  Interests or assets remain owned, directly or indirectly, by a Subsidiary Guarantor; or               (f)   any sale, transfer or other Disposition of all or substantially all of the   Equity Interests, property and assets or business of any other Loan Party or assets constituting a  business unit, line of business or division of Parent and its consolidated Subsidiaries to any  Person other than Parent or any other Loan Party, subject to compliance, if applicable, with the  provisions of Section 2.10(c) and Section 6.7.         Upon the request of Parent, the Administrative Agent or Collateral Agent, as applicable,  shall promptly execute and deliver to Parent any and all documents or instruments necessary to  release any Guaranty or any Lien encumbering any items of Collateral that are subject to a  Disposition pursuant to this Section 6.8 or otherwise permitted by this Agreement.         Section 6.9 Transactions with Affiliates. Directly or indirectly, enter into or permit to   exist any transaction (including the purchase, sale, lease or exchange of any property, the   rendering of any service or the payment of any management, advisory or similar fees) with any   Affiliate of Parent on terms that when taken as a whole are materially less favorable to Parent or   a Restricted Subsidiary, as the case may be, than those that might be obtained in a comparable   arm’s length transaction at the time from a Person that is not an Affiliate; provided that, for the   avoidance of doubt, the foregoing restriction shall not apply to (a) any transaction permitted by   this Article VI between Parent and any one or more Subsidiaries of Parent or among Subsidiaries   of Parent; (b) reasonable and customary fees paid to members of the board of directors (or   similar governing body) of Parent and its Subsidiaries; (c) employment, severance,   compensation, benefit and indemnification arrangements for directors, officers and other   employees of Parent and its Subsidiaries entered into in the ordinary course of business or   approved in good faith by the board of directors of Parent; (d) the payment of fees and expenses   in connection with the consummation of the transactions contemplated by the Loan Documents;   (e) transactions or any series of related transactions involving aggregate payments or   consideration less than $500,000; (f) the payment of management fees and incentive   compensation and other transactions made pursuant to the management agreement with the   Manager as in effect on the Effective Date and with any such amendments or other changes that   are not materially adverse, taken as a whole, to the interests of the Lenders; (g) any agreement   between any Person and an Affiliate of such Person existing at the time such Person is acquired   by or merged into Parent or its Subsidiaries permitted by the terms of this Agreement; provided   that such agreement was not entered into in contemplation of such acquisition or merger, or any                                          81    

 

     amendment thereto; (h) any transaction with an Affiliate, which is approved by a majority of   disinterested members of the board of directors of Parent in good faith and (i) any other  transaction with an Affiliate, subject to the prior consent of the Administrative Agent (such  consent not to be unreasonably withheld, conditioned or delayed).         Section 6.10 Intermediate Entities.  If the Equity Interests of any Subsidiary Guarantor   are owned directly by Parent or any other Subsidiary Guarantor, no Person other than a Loan   Party shall acquire such Equity Interests unless such Person also becomes a Subsidiary   Guarantor under this Agreement.  No Subsidiary Guarantor shall form a new Subsidiary that sits   between it and any other direct Subsidiary or transfer its Equity Interests in a direct Subsidiary to   another Subsidiary of such Subsidiary Guarantor unless such new Subsidiary or transferee   Subsidiary also becomes a Subsidiary Guarantor under this Agreement.          Section 6.11 Conduct of Business.  The Loan Parties and their Restricted Subsidiaries   shall not engage to any material extent (determined on a consolidated basis) in any line of  business other that those lines of business in which the Loan Parties and their Restricted  Subsidiaries are engaged in on the Effective Date other than lines of business that are similar,  ancillary, incidental or complementary to such lines of business or are reasonable extensions  thereof.         Section 6.12 No Change to Organizational Documents. Without the prior written   consent of the Administrative Agent, which consent shall not unreasonably be withheld or   delayed, no Loan Party shall agree to any amendment to or waiver of the terms or provisions of   its Organizational Documents, except for: (a) immaterial amendments or waivers permitted by   such Organizational Documents not requiring the consent of the holders of the Equity Interests in   Parent, or (b) amendments or waivers which would not, either individually or collectively, be   materially adverse to the interests of the Lenders.          Section 6.13 Use of Proceeds.  Neither Parent nor any of its Subsidiaries and, to the   knowledge of Parent, its or their respective directors, officers, employees and agents shall use,   directly or knowingly indirectly, the proceeds of any Loan (a) in furtherance of an offer,   payment, promise to pay, or authorization of the payment or giving of money, or anything else of   value, to any Person in violation of any applicable Anti-Bribery and Anti-Corruption Laws or   Anti-Terrorism and Money Laundering Laws, (b) for the purpose of funding, financing or   facilitating any activities, business or transaction of or with any Sanctioned Person or in any   Designated Jurisdiction, each to the extent such activities, businesses or transactions would be   prohibited by applicable Sanctions or (c) in any manner that would result in the violation of  any   Sanctions applicable to any party hereto.          Section 6.14 Negative Pledge. Neither Parent nor any Loan Party shall, or shall permit   any Subsidiary to, directly or indirectly, create, incur, assume, suffer to exist or otherwise permit   any Lien on (i) the Equity Interests of any Servicing Advance Entity, (ii) any cash that is not   subject to a Lien pursuant to any Permitted Funding Indebtedness or (iii) any Residual Interest,  in each case to secure any Indebtedness (other than the Indebtedness incurred pursuant to Section   6.1(g) or any Indebtedness provided by any Canyon Lender or any of its Affiliates after the  Effective Date, in each case to the extent secured by a Permitted Lien) unless Parent shall, or  shall cause the relevant Subsidiary to, grant, for the benefit of the Secured Parties, a security                                          82    

 

   interest in such Equity Interests that is equal and ratable to the security interests in favor of the  holders of such other Indebtedness (or, in the case of a Lien securing such other Indebtedness  that is expressly subordinated or junior to the Loans, secured by a Lien that is senior in priority  to such Lien).         Section 6.15 Unencumbered Asset Equity Pledge Subsidiaries.  Notwithstanding  anything to this contrary in this Agreement:               (a)   No Unencumbered Asset Equity Pledge Subsidiary shall be permitted to,  directly or indirectly, (i) create, incur, assume or guaranty, suffer to exist, or otherwise become  ore remain directly or indirectly liable with respect to any Indebtedness, or (ii) create, incur,  assume or suffer to exist any Lien upon any of its property or assets of any kind (real or personal,  tangible or intangible), whether now owned or hereafter acquired by it, to secure any  Indebtedness.               (b)   Neither any Unencumbered Asset Equity Pledge Subsidiary nor any direct  or indirect Subsidiary of Parent that owns Equity Interests in an Unencumbered Asset Equity  Pledge Subsidiary shall (i) create, incur, assume or suffer to exist any Lien upon the Equity  Interests of an Unencumbered Asset Equity Pledge Subsidiary, whether now owned or hereafter  acquired by it, to secure any Indebtedness, other than the Liens granted to the Secured Parties  under the Security Documents, or (ii) enter into any agreement or suffer to exist any restriction  prohibiting the creation or assumption of any Lien upon the Equity Interests of an  Unencumbered Asset Equity Pledge Subsidiary to secure the Obligations.                 (c)   No Unencumbered Asset (Long Term) Equity Pledge Subsidiary may  Dispose of any assets (including by making an Investment with such assets or by merger,  consolidation or amalgamation or similar transaction with or into another Person), whether now  owned or hereafter acquired by it, to any Person other than another Unencumbered Asset (Long  Term) Equity Pledge Subsidiary unless a prepayment is made pursuant to Section 2.10(f) in an  amount equal to the fair market value of such assets (as determined in good faith by Parent and  certified to the Administrative Agent) or the proceeds of such sale must be retained or invested  by such Unencumbered Asset (Long Term) Equity Pledge Subsidiary or another Unencumbered  Asset (Long Term) Equity Pledge Subsidiary.  No Loan Party or any Subsidiary of Parent may  Dispose (whether in a single transaction, multiple transactions or a series of related transactions),  directly or indirectly, of any Equity Interests in any Unencumbered Asset Equity Pledge  Subsidiary to any Person other than Parent or any other Loan Party unless the Net Cash Proceeds  are used to make a prepayment pursuant to Section 2.10(f). For the avoidance of doubt, the first  sentence of this clause (c) shall not limit the ability of any Unencumbered Asset (Short Term)  Equity Pledge Subsidiary to Dispose of any assets, whether now owned or hereafter acquired by  it, to any Person.               (d)   Unencumbered Asset Equity Pledge Subsidiaries must be Restricted  Subsidiaries at all times and shall not form any additional Subsidiaries, unless (i) such  Subsidiaries become Restricted Subsidiaries and Unencumbered Asset Equity Pledge  Subsidiaries and (ii) the Equity Interests of any such Subsidiary are pledged to the Collateral  Agent for the benefit of the Secured Parties.                                           83   

 

                 (e)   No Unencumbered Asset (Long Term) Equity Pledge Subsidiary may,   directly or indirectly, authorize, declare or pay any Dividends, except for (i) a Dividend with the   Net Cash Proceeds from a disposition of assets in order for Parent to make a mandatory   prepayment in accordance with Section 2.10(f) and (ii) Dividends to distribute any income   generated by the assets of such Unencumbered Asset (Long Term) Equity Pledge Subsidiary or   any of its Subsidiaries. For the avoidance of doubt, this clause (e) shall not limit the ability of   any Unencumbered Asset (Short Term) Equity Pledge Subsidiary to, directly or indirectly,   authorize, declare or pay any Dividends.                                    ARTICLE VII                                                                              GUARANTY          Section 7.1 Guaranty of the Obligations. Each of the Subsidiary Guarantors jointly   and severally hereby irrevocably and unconditionally guaranty to the Administrative Agent for   the ratable benefit of the Beneficiaries the due and punctual payment in full of all Obligations   when the same shall become due, whether at stated maturity, by required prepayment,  declaration, acceleration, demand or otherwise (including amounts that would become due but  for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C.  § 362(a)) (collectively, the “Guaranteed Obligations”).         Section 7.2 Contribution by Subsidiary Guarantors. All Subsidiary Guarantors desire   to allocate among themselves (collectively, the “Contributing Guarantors”), in a fair and   equitable manner, their obligations arising under this Guaranty. Accordingly, in the event any   payment or distribution is made on any date by a Subsidiary Guarantor (a “Funding   Guarantor”) under this Guaranty such that its Aggregate Payments exceeds its Fair Share as of   such date, such Funding Guarantor shall be entitled to a contribution from each of the other   Contributing Guarantors in an amount sufficient to cause each Contributing Guarantor’s   Aggregate Payments to equal its Fair Share as of such date. “Fair Share” means, with respect to   a Contributing Guarantor as of any date of determination, an amount equal to (a) the ratio of (i)   the Fair Share Contribution Amount with respect to such Contributing Guarantor to (ii) the   aggregate of the Fair Share Contribution Amounts with respect to all Contributing Guarantors   multiplied by (b) the aggregate amount paid or distributed on or before such date by all Funding   Guarantors under this Guaranty in respect of the Guaranteed Obligations. “Fair Share   Contribution Amount” means, with respect to a Contributing Guarantor as of any date of   determination, the maximum aggregate amount of the obligations of such Contributing   Guarantor under this Guaranty that would not render its obligations hereunder or thereunder   subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the   United States Code or any comparable applicable provisions of state law; provided that solely for   purposes of calculating the “Fair Share Contribution Amount” with respect to any Contributing   Guarantor for purposes of this Section 7.2, any assets or liabilities of such Contributing   Guarantor arising by virtue of any rights to subrogation, reimbursement or indemnification or   any rights to or obligations of contribution hereunder shall not be considered as assets or   liabilities of such Contributing Guarantor. “Aggregate Payments” means, with respect to a   Contributing Guarantor as of any date of determination, an amount equal to (1) the aggregate   amount of all payments and distributions made on or before such date by such Contributing   Guarantor in respect of this Guaranty (including in respect of this Section 7.2), minus (2) the                                          84    

 

     aggregate amount of all payments received on or before such date by such Contributing   Guarantor from the other Contributing Guarantors as contributions under this Section 7.2. The   amounts payable as contributions hereunder shall be determined as of the date on which the   related payment or distribution is made by the applicable Funding Guarantor. The allocation   among Contributing Guarantors of their obligations as set forth in this Section 7.2 shall not be   construed in any way to limit the obligations or liability of any Contributing Guarantor   hereunder. Each Subsidiary Guarantor shall remain liable for the full amount guaranteed by such   Subsidiary Guarantor hereunder. Each Subsidiary Guarantor is a third party beneficiary to the   contribution agreement set forth in this Section 7.2.          Section 7.3 Payment by Subsidiary Guarantors. The Subsidiary Guarantors hereby   jointly and severally agree, in furtherance of the foregoing and not in limitation of any other right   which any Beneficiary may have at law or in equity against any Subsidiary Guarantor by virtue   hereof, that upon the failure of Parent to pay any of the Guaranteed Obligations when and as the   same shall become due, whether at stated maturity, by required prepayment, declaration,   acceleration, demand or otherwise (including amounts that would become due but for the  operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C.  § 362(a)), the Subsidiary Guarantors shall upon demand pay, or cause to be paid, in Cash, to the   Administrative Agent for the ratable benefit of Beneficiaries, an amount equal to the sum of the   unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid   interest on such Guaranteed Obligations (including interest which, but for Parent becoming the   subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed   Obligations, whether or not a claim is allowed against Parent for such interest in the related   bankruptcy case) and all other Guaranteed Obligations then owed to Beneficiaries as aforesaid.          Section 7.4 Liability of Subsidiary Guarantors Absolute. Each Subsidiary Guarantor   agrees that its obligations hereunder are irrevocable, absolute, independent and unconditional   and shall not be affected by any circumstance which constitutes a legal or equitable discharge of   a guarantor or surety other than payment in full of the Guaranteed Obligations. In furtherance of   the foregoing and without limiting the generality thereof, each Subsidiary Guarantor agrees as   follows:                (a)   this Guaranty is a guaranty of payment when due and not of collectability;                (b)   the Administrative Agent may enforce this Guaranty upon the occurrence   of an Event of Default notwithstanding the existence of any dispute between Parent and any   Beneficiary with respect to the existence of such Event of Default;                (c)   the obligations of each Subsidiary Guarantor hereunder are independent of   the obligations of Parent and the obligations of any other guarantor (including any other   Subsidiary Guarantor) of the obligations of Parent, and a separate action or actions may be   brought and prosecuted against such Subsidiary Guarantor whether or not any action is brought   against Parent or any of such other guarantors and whether or not Parent is joined in any such   action or actions;                (d)   payment by any Subsidiary Guarantor of a portion, but not all, of the   Guaranteed Obligations shall in no way limit, affect, modify or abridge any Subsidiary                                          85    

 

     Guarantor’s liability for any portion of the Guaranteed Obligations which has not been paid.   Without limiting the generality of the foregoing, if the Administrative Agent is awarded a   judgment in any suit brought to enforce any Subsidiary Guarantor’s covenant to pay a portion of   the Guaranteed Obligations, such judgment shall not be deemed to release such Subsidiary   Guarantor from its covenant to pay the portion of the Guaranteed Obligations that is not the   subject of such suit, and such judgment shall not, except to the extent satisfied by such   Subsidiary Guarantor, limit, affect, modify or abridge any other Subsidiary Guarantor’s liability   hereunder in respect of the Guaranteed Obligations;                (e)   any Beneficiary, upon such terms as it deems appropriate, without notice   or demand and without affecting the validity or enforceability of the guarantee set forth in this   Article VII or giving rise to any reduction, limitation, impairment, discharge or termination of   any Subsidiary Guarantor’s liability hereunder, from time to time may (i) renew, extend,   accelerate, increase the rate of interest on, or otherwise change the time, place, manner or terms   of payment of the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept   or refuse any offer of performance with respect to, or substitutions for, the Guaranteed   Obligations or any agreement relating thereto and/or subordinate the payment of the same to the   payment of any other obligations; (iii) request and accept other guaranties of the Guaranteed   Obligations and take and hold security for the payment hereof or the Guaranteed Obligations;  (iv) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter,  subordinate or modify, with or without consideration, any security for payment of the  Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other   obligation of any Person (including any other Subsidiary Guarantor) with respect to the   Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or for the   benefit of such Beneficiary in respect hereof or the Guaranteed Obligations and direct the order   or manner of sale thereof, or exercise any other right or remedy that such Beneficiary may have   against any such security, in each case as such Beneficiary in its discretion may determine  consistent herewith and any applicable security agreement, including foreclosure on any such  security pursuant to one or more judicial or non-judicial sales, whether or not every aspect of any  such sale is commercially reasonable, and even though such action operates to impair or  extinguish any right of reimbursement or subrogation or other right or remedy of any Subsidiary  Guarantor against Parent or any security for the Guaranteed Obligations; and (vi) exercise any  other rights available to it under the Loan Documents; and               (f)   this Guaranty and the obligations of the Subsidiary Guarantors hereunder  shall be valid and enforceable and shall not be subject to any reduction, limitation, impairment,  discharge or termination for any reason (other than payment in full of the Guaranteed  Obligations), including the occurrence of any of the following, whether or not any Subsidiary  Guarantor shall have had notice or knowledge of any of them: (i) any failure or omission to  assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by  order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or   demand or any right, power or remedy (whether arising under the Loan Documents, at law, in   equity or otherwise) with respect to the Guaranteed Obligations or any agreement relating   thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed   Obligations; (ii) any rescission, waiver, amendment or modification of, or any consent to   departure from, any of the terms or provisions (including provisions relating to events of default)   hereof, any of the other Loan Documents, or of any other guaranty or security for the Guaranteed                                          86    

 

     Obligations, in each case whether or not in accordance with the terms hereof or such Loan   Document or any agreement relating to such other guaranty or security; (iii) the Guaranteed   Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid or   unenforceable in any respect; (iv) the application of payments received from any source (other   than payments received pursuant to the other Loan Documents or from the proceeds of any   security for the Guaranteed Obligations, except to the extent such security also serves as   collateral for indebtedness other than the Guaranteed Obligations) to the payment of  indebtedness other than the Guaranteed Obligations, even though any Beneficiary might have   elected to apply such payment to any part or all of the Guaranteed Obligations; (v) any   Beneficiary’s consent to the change, reorganization or termination of the corporate structure or   existence of Parent or any of their Subsidiaries and to any corresponding restructuring of the   Guaranteed Obligations; (vi) any failure to perfect or continue perfection of a security interest in   any collateral which secures any of the Guaranteed Obligations; (vii) any defenses, set-offs or   counterclaims which Parent may allege or assert against any Beneficiary in respect of the   Guaranteed Obligations, including failure of consideration, breach of warranty, payment, statute   of frauds, statute of limitations, accord and satisfaction and usury; and (viii) any other act or   thing or omission, or delay to do any other act or thing, which may or might in any manner or to   any extent vary the risk of any Subsidiary Guarantor as an obligor in respect of the Guaranteed   Obligations.          Section 7.5 Waivers by Subsidiary Guarantors. Each Subsidiary Guarantor hereby   waives, for the benefit of Beneficiaries: (a) any right to require any Beneficiary, as a condition of   payment or performance by such Subsidiary Guarantor, to (i) proceed against Parent, any other   guarantor (including any other Subsidiary Guarantor) of the Guaranteed Obligations or any other   Person, (ii) proceed against or exhaust any security held from Parent, any such other guarantor or   any other Person, (iii) proceed against or have resort to any balance of any Deposit Account or   credit on the books of any Beneficiary in favor of Parent or any other Person, or (iv) pursue any   other remedy in the power of any Beneficiary whatsoever; (b) any defense arising by reason of   the incapacity, lack of authority or any disability or other defense of Parent or any other   Subsidiary Guarantor including any defense based on or arising out of the lack of validity or the   unenforceability of the Guaranteed Obligations or any agreement or instrument relating thereto   or by reason of the cessation of the liability of Parent or any other Subsidiary Guarantor from   any cause other than payment in full of the Guaranteed Obligations; (c) any defense based upon   any statute or rule of law which provides that the obligation of a surety must be neither larger in   amount nor in other respects more burdensome than that of the principal; (d) any defense based   upon any Beneficiary’s errors or omissions in the administration of the Guaranteed Obligations,   except behavior which amounts to bad faith; (e) (i) any principles or provisions of law, statutory   or otherwise, which are or might be in conflict with the terms hereof and any legal or equitable   discharge of such Subsidiary Guarantor’s obligations hereunder, (ii) the benefit of any statute of   limitations affecting such Subsidiary Guarantor’s liability hereunder or the enforcement hereof,   (iii) any rights to set-offs, recoupments and counterclaims, and (iv) promptness, diligence and   any requirement that any Beneficiary protect, secure, perfect or insure any security interest or   lien or any property subject thereto; (f) notices, demands, presentments, protests, notices of   protest, notices of dishonor and notices of any action or inaction, including acceptance hereof,   notices of default hereunder or any agreement or instrument related thereto, notices of any   renewal, extension or modification of the Guaranteed Obligations or any agreement related   thereto, notices of any extension of credit to Parent and notices of any of the matters referred to                                         87    

 

     in Section 7.4 and any right to consent to any thereof; and (g) any defenses or benefits that may  be derived from or afforded by law which limit the liability of or exonerate guarantors or  sureties, or which may conflict with the terms hereof.         Section 7.6 Subsidiary Guarantors’ Rights of Subrogation, Contribution, Etc.                 (a)   Subject to the waiver described in clause (b) below, to the extent the   Subsidiary Guarantors do not otherwise possess a right of subrogation against Parent at equity,  by statute, under common law or otherwise, the Subsidiary Guarantors and Parent agree that, for  valid consideration given, the Subsidiary Guarantors shall have such a right of subrogation.               (b)   Until the Guaranteed Obligations shall have been indefeasibly paid in full,  each Subsidiary Guarantor hereby waives any claim, right or remedy, direct or indirect, that such  Subsidiary Guarantor now has or may hereafter have against Parent or any other Subsidiary  Guarantor or any of its assets in connection with this Guaranty or the performance by such  Subsidiary Guarantor of its obligations hereunder, in each case whether such claim, right or  remedy arises in equity, under contract, by statute, under common law or otherwise and  including (i) any right of subrogation, reimbursement or indemnification that such Subsidiary  Guarantor now has or may hereafter have against Parent with respect to the Guaranteed  Obligations, (ii) any right to enforce, or to participate in, any claim, right or remedy that any  Beneficiary now has or may hereafter have against Parent, and (iii) any benefit of, and any right  to participate in, any collateral or security now or hereafter held by any Beneficiary. In addition,  until the Guaranteed Obligations shall have been indefeasibly paid in full, each Subsidiary  Guarantor shall withhold exercise of any right of contribution such Subsidiary Guarantor may  have against any other guarantor (including any other Subsidiary Guarantor) of the Guaranteed  Obligations, including any such right of contribution as contemplated by Section 7.2. Each  Subsidiary Guarantor further agrees that, to the extent the waiver or agreement to withhold the  exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth  herein is found by a court of competent jurisdiction to be void or voidable for any reason, any  rights of subrogation, reimbursement or indemnification such Subsidiary Guarantor may have  against Parent or against any collateral or security, and any rights of contribution such Subsidiary  Guarantor may have against any such other guarantor, shall be junior and subordinate to any  rights any Beneficiary may have against Parent, to all right, title and interest any Beneficiary  may have in any such collateral or security, and to any right any Beneficiary may have against  such other guarantor. If any amount shall be paid to any Subsidiary Guarantor on account of any  such subrogation, reimbursement, indemnification or contribution rights at any time when all  Guaranteed Obligations shall not have been finally and indefeasibly paid in full, such amount  shall be held in trust for the Administrative Agent on behalf of Beneficiaries and shall forthwith   be paid over to the Administrative Agent for the benefit of Beneficiaries to be credited and   applied against the Guaranteed Obligations, whether matured or unmatured, in accordance with   the terms hereof.          Section 7.7 Subordination of Other Obligations. Any Indebtedness of Parent or any   Subsidiary Guarantor now or hereafter held by any Subsidiary Guarantor (the “Obligee   Guarantor”) is hereby subordinated in right of payment to the Guaranteed Obligations, and any  such Indebtedness collected or received by the Obligee Guarantor after an Event of Default has   occurred and is continuing shall be held in trust for the Administrative Agent on behalf of                                          88    

 

     Beneficiaries and shall forthwith be paid over to the Administrative Agent for the benefit of   Beneficiaries to be credited and applied against the Guaranteed Obligations but without   affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any   other provision hereof.          Section 7.8 Continuing Guaranty. This Guaranty is a continuing guaranty and shall   remain in effect until all of the Guaranteed Obligations shall have been paid in full. Each   Subsidiary Guarantor hereby irrevocably waives any right to revoke this Guaranty as to future  transactions giving rise to any Guaranteed Obligations.         Section 7.9 Authority of Subsidiary Guarantors or Parent. It is not necessary for any   Beneficiary to inquire into the capacity or powers of any Subsidiary Guarantor or Parent or the   officers, directors or any agents acting or purporting to act on behalf of any of them.          Section 7.10 Financial Condition of Parent. Any Loan may be made to Parent or   continued from time to time without notice to or authorization from any Subsidiary Guarantor  regardless of the financial or other condition of Parent at the time of any such grant or  continuation. No Beneficiary shall have any obligation to disclose or discuss with any Subsidiary  Guarantor its assessment, or any Subsidiary Guarantor’s assessment, of the financial condition of  Parent. Each Subsidiary Guarantor has adequate means to obtain information from Parent on a  continuing basis concerning the financial condition of Parent and its ability to perform its  obligations under the Loan Documents and each Subsidiary Guarantor assumes the responsibility  for being and keeping informed of the financial condition of Parent and of all circumstances  bearing upon the risk of nonpayment of the Guaranteed Obligations. Each Subsidiary Guarantor  hereby waives and relinquishes any duty on the part of any Beneficiary to disclose any matter,  fact or thing relating to the business, operations or conditions of Parent now known or hereafter  known by any Beneficiary.         Section 7.11 Bankruptcy, Etc.                 (a)   So long as any Guaranteed Obligations remain outstanding, no Subsidiary   Guarantor shall, without the prior written consent of the Administrative Agent acting pursuant to   the instructions of the Required Lenders, commence or join with any other Person in  commencing any bankruptcy, reorganization or insolvency case or proceeding of or against   Parent or any other Subsidiary Guarantor. The obligations of the Subsidiary Guarantors   hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated   by any case or proceeding, voluntary or involuntary, involving the bankruptcy, insolvency,   receivership, reorganization, liquidation or arrangement of Parent or any other Subsidiary   Guarantor or by any defense which Parent or any other Subsidiary Guarantor may have by   reason of the order, decree or decision of any court or administrative body resulting from any   such proceeding.                (b)   Each Subsidiary Guarantor acknowledges and agrees that any interest on   any portion of the Guaranteed Obligations which accrues after the commencement of any case or   proceeding referred to in clause (a) above (or, if interest on any portion of the Guaranteed   Obligations ceases to accrue by operation of law by reason of the commencement of such case or   proceeding, such interest as would have accrued on such portion of the Guaranteed Obligations if                                          89    

 

     such case or proceeding had not been commenced) shall be included in the Guaranteed   Obligations because it is the intention of the Subsidiary Guarantors and Beneficiaries that the   Guaranteed Obligations which are guaranteed by the Subsidiary Guarantors pursuant hereto   should be determined without regard to any rule of law or order which may relieve Parent of any   portion of such Guaranteed Obligations. The Subsidiary Guarantors shall permit any trustee in   bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar Person   to pay the Administrative Agent, or allow the claim of the Administrative Agent in respect of,   any such interest accruing after the date on which such case or proceeding is commenced.                (c)   In the event that all or any portion of the Guaranteed Obligations are paid  by Parent or any Subsidiary Guarantor, the obligations of the Subsidiary Guarantors hereunder  shall continue and remain in full force and effect or be reinstated, as the case may be, in the  event that all or any part of such payment(s) are rescinded or recovered directly or indirectly  from any Beneficiary as a preference, fraudulent transfer or otherwise, and any such payments  which are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes  hereunder as if such payments had not been made.         Section 7.12 Discharge of Guaranty Upon Sale of any Subsidiary Guarantor. If all of   the Equity Interests of any Subsidiary Guarantor or any of its successors in interest hereunder  shall be sold or otherwise disposed of (including by merger or consolidation) in a manner  permitted by the terms and conditions hereof, the Guaranty of such Subsidiary Guarantor or such  successor in interest, as the case may be, hereunder shall automatically be discharged and  released without any further action by any Beneficiary or any other Person effective as of the   time of such sale or other disposition.                                    ARTICLE VIII                                                                        EVENTS OF DEFAULT          Section 8.1 Events of Default. If any one or more of the following conditions or events   occur:                (a)   Failure to Make Payments When Due. Failure by Parent to pay (i) when   due any principal of any Loan or any other amount due on the applicable Maturity Date or upon   acceleration of the maturity thereof pursuant to this Section 8.1; or (ii) any interest on any Loan   or any fee or any other amount due hereunder within four (4) Business Days after the date due;   or                (b)   Breach of Representations, Etc. Any representation, warranty, certification   or other statement made or deemed made by any Loan Party in any Loan Document or in any   statement or certificate at any time given by any Loan Party in writing pursuant hereto or thereto   or in connection herewith or therewith shall be false in any material respect as of the date made   or deemed made; or                (c)   Breach of Certain Covenants. Failure of any Loan Party to perform or   comply with any term or condition contained in Section 5.1, 5.2 or 5.13 or in Article VI (subject                                           90    

 

     to, in the case of the financial covenants set forth in Section 6.7, the cure rights contained in  Section 8.2); or               (d)   Other Defaults Under Loan Documents. Any Loan Party shall default in   the performance of or compliance with any term contained herein or any of the other Loan   Documents, other than any such term referred to in any other Section of this Section 8.1, and   such default shall not have been remedied or waived within thirty (30) days after the receipt by   Parent of notice from the Administrative Agent or any Lender of such default; or                (e)   Default in Other Agreements. (i) Failure of any Loan Party to pay when   due any Indebtedness (other than Indebtedness referred to in Section 8.1(a) and Non-Recourse   Indebtedness) in an aggregate principal amount of $25,000,000 or more, beyond the grace   period, if any, provided therefor; (ii) breach or default (1) by any Loan Party with respect to any   other term of Indebtedness (other than Indebtedness referred to in Section 8.1(a) and Non-  Recourse Indebtedness) in an aggregate principal amount of $25,000,000 or more, (2) by   NewRez with respect to any term of Indebtedness (other than Non-Recourse Indebtedness) in an   aggregate principal amount of $50,000,000 or more, (3) by any Issuer of Pledged Equity (each as   defined in the Security Agreement) with respect to any term of Indebtedness (other than Non-  Recourse Indebtedness) in an aggregate principal amount of $25,000,000 or more, or (4) by any   Loan Party with respect to any loan agreement, mortgage, indenture or other agreement relating   to such items of Indebtedness described in the foregoing clauses (1), (2) and (3), in each case   beyond the grace period, if any, provided therefor, if the effect of such breach or default is to  cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such  holder or holders), to cause, that Indebtedness to become or be declared due and payable (or  redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the  case may be; or (iii) breach or default by NRM with respect to Indebtedness arising under any  agreements with Fannie Mae or Freddie Mac if Fannie Mae or Freddie Mac, as applicable, has  notified NRM of its intention to terminate NRM, with cause, as a result of such breach or default,  which is uncurable (after giving effect to all deadline extensions and whatever additional time  that Fannie Mae or Freddie Mac, as applicable, gives in writing beyond the cure period specified  in such agreement, including by way of forbearance); provided, however, that, no Event of   Default shall occur under this clause (e) as a result of any such failure to pay, breach or default   with respect to any such Indebtedness described in this clause (e), if such failure to pay, breach   or default, as applicable, shall have been cured or waived by the holder or holders of such   Indebtedness (or a trustee on behalf of such holder or holders); or                (f)   Involuntary Bankruptcy; Appointment of Receiver, Etc. (i) A court of   competent jurisdiction shall enter a decree or order for relief in respect of Parent or any other   Loan Party in an involuntary case under the Bankruptcy Code or under any other applicable   bankruptcy, insolvency or similar law now or hereafter in effect, which decree or order is not   stayed; or any other similar relief shall be granted under any applicable federal or state law; or   (ii) an involuntary case shall be commenced against Parent or any other Loan Party under the   Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or   hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the   appointment of a receiver, liquidator, sequestrator, trustee, conservator, custodian or other officer   having similar powers over Parent or any other Loan Party, or over all or a substantial part of its   property, shall have been entered; or there shall have occurred the involuntary appointment of an                                          91    

 

     interim receiver, trustee, conservator or other custodian of Parent or any other Loan Party for all  or a substantial part of its property; or a warrant of attachment, execution or similar process shall  have been issued against any substantial part of the property of Parent or any other Loan Party,  and any such event described in this clause (ii) shall continue for sixty (60) consecutive days   without having been dismissed, bonded or discharged; or                (g)   Voluntary Bankruptcy; Appointment of Receiver, Etc. (i) Parent or any   other Loan Party shall have an order for relief entered with respect to it or shall commence a  voluntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency  or similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an  involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such   law, or shall consent to the appointment of or taking possession by a receiver, trustee,   conservator or other custodian for all or a substantial part of its property; or Parent or any other   Loan Party shall make any assignment for the benefit of creditors; or (ii) Parent or any other   Loan Party shall be unable, or shall fail generally, or shall admit in writing its inability, to pay its   debts as such debts become due; or                 (h)   Judgments and Attachments. Any money judgment, writ or warrant of   attachment or similar process involving in the aggregate at any time an amount in excess of  $25,000,000 (to the extent not adequately covered by insurance as to which a solvent and  unaffiliated insurance company has not expressly denied coverage) shall be entered or filed  against Parent or any other Loan Party or any of their respective assets and shall remain   undischarged, unvacated, unbonded or unstayed for a period of forty-five (45) consecutive days;   or                (i)   Employee Benefit Plans. There shall occur one or more ERISA Events   which individually or in the aggregate results in or would reasonably be expected to result in a   Material Adverse Effect on Parent during the term hereof; or                (j)   Change of Control. A Change of Control occurs; or                (k)   Guaranties, Security Documents and other Loan Documents. At any time   after the execution and delivery thereof, (i) the Guaranty for any reason, other than the   satisfaction in full of all Obligations (other than contingent indemnification and cost   reimbursement obligations for which no claim has been made), shall cease to be in full force and   effect (other than in accordance with its terms) or shall be declared to be null and void or any  Subsidiary Guarantor shall repudiate its obligations thereunder, (ii) this Agreement or any  Security Document ceases to be in full force and effect (other than by reason of a release of  Collateral in accordance with the terms hereof or thereof or the satisfaction in full of the  Obligations (other than contingent indemnification and cost reimbursement obligations for which  no claim has been made) in accordance with the terms hereof) or shall be declared null and void,  or the Collateral Agent shall not have or shall cease to have a valid and perfected Lien in any  material portion of the Collateral purported to be covered by the Security Documents with the  priority required by the relevant Security Document or (iii) any Loan Party shall contest the  validity or enforceability of any Loan Document in writing or deny in writing that it has any  further liability under any Loan Document to which it is a party or shall contest the validity or  perfection of any Lien in any Collateral purported to be covered by the Security Documents;                                          92    

 

           THEN, (1) upon the occurrence of any Event of Default described in Section 8.1(f) or   8.1(g), automatically, and (2) upon the occurrence and continuation of any other Event of   Default, at the request of (or with the consent of) the Required Lenders, upon notice to Parent by   the Administrative Agent, (A) each of the following shall immediately become due and payable,   in each case without presentment, demand, protest or other requirements of any kind, all of   which are hereby expressly waived by each Loan Party: (I) the unpaid principal amount of and   accrued interest on the Loans, and (II) all other Obligations; and (B) the Administrative Agent   may cause the Collateral Agent to enforce any and all Liens and security interests created  pursuant to Security Documents.         Section 8.2 Right to Cure.                (a)   Notwithstanding anything to the contrary contained in Section 8.1, in the   event that Parent fails to comply with the requirements of the financial covenant set forth in   Section 6.7(a) for any particular month, then from the date that financial statements of Parent are   required to have been delivered pursuant to Sections 5.1(a) with respect to such month until the   expiration of the thirtieth (30th) day thereafter (the last day of such period being the “Anticipated   Cure Deadline”), Parent or any of its Subsidiaries shall have the right (the “Cure Right”) to sell   or issue common or preferred Equity Interests (other than Disqualified Equity Interests) for cash   or to obtain a cash contribution to its equity (which shall be in the form of common or preferred   equity (other than Disqualified Equity Interests)), and upon the receipt by Parent of such cash (or   the use by Parent of cash on hand equal to such amount) (the “Cure Amount”), pursuant to the   exercise by Parent of such Cure Right, the calculation of Tangible Book Value, as used in the   financial covenant set forth in Section 6.7(a) shall be recalculated giving effect to the following   pro forma adjustments:                    (i)     Stockholders’ equity for such month (and for any subsequent         period that includes such month) shall be increased, solely for the purpose of measuring         either or both of Tangible Book Value for the financial covenant set forth in Section        6.7(a); provided that the receipt by Parent of the Cure Amount pursuant to the Cure Right         shall be deemed to have no other effect on a Consolidated basis under this Agreement        except as set forth in this clause (i);                   (ii)    if, after giving effect to the foregoing recalculations, Parent shall         then be in compliance with the requirements of the financial covenant set forth in Section         6.7(a), Parent shall be deemed to have satisfied the requirements of such financial         covenant as of the relevant date of determination with the same effect as though there had         been no failure to comply therewith at such date, and the applicable breach or default of         such financial covenant that had occurred (and any other Default as a result thereof,         including the failure to meet any condition requiring no Default or Event of Default based         solely on the basis of any actual or purported Event of Default under such financial         covenant) shall be deemed cured for the purposes of this Agreement; and                   (iii)    upon receipt by the Administrative Agent of written notice, on or         prior to the Anticipated Cure Deadline, that Parent intends to exercise the Cure Right in         respect of a month, the Lenders shall not be permitted to accelerate Loans held by them         or to exercise remedies against the Collateral on the basis of a failure to comply with the                                          93    

 

           requirements of such financial covenant, unless such failure is not cured pursuant to the         exercise of the Cure Right on or prior to the Anticipated Cure Deadline.                (b)   Notwithstanding anything herein to the contrary, (i) in each four (4)   consecutive fiscal quarter period there shall be at least two (2) fiscal quarters in respect of which   the Cure Right is not exercised for any month therein, (ii) there can be no more than four (4)   fiscal quarters in respect of which the Cure Right is exercised for any month therein during the   term of the Initial Term Loans and (iii) for purposes of this Section 8.2, the Cure Amount   utilized shall be no greater than the minimum amount required to remedy the applicable failure   to comply with the financial covenant.                (c)   Notwithstanding the foregoing, in no event shall Parent be permitted to   exercise any Cure Right unless a prepayment is made with the required portion of the Cure   Amount pursuant to Section 2.10(e).                                     ARTICLE IX                                                                               AGENTS          Section 9.1 Appointment of Agents. Cortland is hereby appointed the Administrative   Agent and the Collateral Agent hereunder and under the other Loan Documents and each Lender   hereby authorizes Cortland to act as the Administrative Agent and the Collateral Agent in   accordance with the terms hereof and the other Loan Documents. Each Agent hereby agrees to   act in its capacity as such upon the express conditions contained herein and the other Loan   Documents, as applicable. In performing its functions and duties hereunder, each Agent shall act  solely as an agent of Lenders and does not assume and shall not be deemed to have assumed any   obligation towards or relationship of agency or trust with or for Parent or any of its Subsidiaries   (other than with respect to the Register pursuant to Section 2.4(b) and the Participant Register   pursuant to Section 10.6(f)(iii)). Each of the Administrative Agent and the Collateral Agent,   without consent of or notice to any party hereto, may assign any and all of its rights or   obligations hereunder to any of its Affiliates.          Section 9.2  Powers and Duties. Each Lender irrevocably authorizes each Agent to take   such action on such Lender’s behalf and to exercise such powers, rights and remedies hereunder   and under the other Loan Documents as are specifically delegated or granted to such Agent by   the terms hereof and thereof, together with such powers, rights and remedies as are reasonably   incidental thereto. Each Agent shall have only those duties and responsibilities that are expressly   specified herein and the other Loan Documents. Each Agent may exercise such powers, rights   and remedies and perform such duties by or through its agents or employees. No Agent shall   have, by reason hereof or any of the other Loan Documents, a fiduciary relationship in respect of   any Lender; and nothing herein or any of the other Loan Documents, expressed or implied, is   intended to or shall be so construed as to impose upon any Agent any obligations in respect   hereof or any of the other Loan Documents except as expressly set forth herein or therein.                                           94    

 

           Section 9.3 General Immunity.                (a)   No Responsibility for Certain Matters. No Agent shall be responsible to   any Lender for the execution, effectiveness, genuineness, validity, enforceability, collectability   or sufficiency hereof or any other Loan Document, the perfection or priority of any Lien, or for   any representations, warranties, recitals or statements made herein or therein or made in any   written or oral statements or in any financial or other statements, instruments, reports or   certificates or any other documents furnished or made by any Agent to Lenders or by or on   behalf of any Loan Party or to any Lender in connection with the Loan Documents and the   transactions contemplated thereby or for the financial condition or business affairs of any Loan   Party or any other Person liable for the payment of any Obligations, nor shall any Agent be   required to ascertain or inquire as to the performance or observance of any of the terms,   conditions, provisions, covenants or agreements contained in any of the Loan Documents or as to   the use of the proceeds of the Loans or as to the existence or possible existence of any Event of   Default or Default or to make any disclosures with respect to the foregoing. Anything contained   herein to the contrary notwithstanding, the Administrative Agent shall not have any liability   arising from confirmations of the amount of outstanding Loans or the component amounts   thereof.                (b)   Exculpatory Provisions. No Agent nor any of its officers, partners,   directors, employees or agents shall be liable to Lenders for any action taken or omitted by any   Agent under or in connection with any of the Loan Documents except to the extent caused by   such Agent’s gross negligence or willful misconduct, as determined by a final, non-appealable   judgment of a court of competent jurisdiction (for the avoidance of doubt, no action taken or   omitted by any Agent at the instruction of the Required Lenders (or such other Lenders as may   be required to give such instructions under Section 10.5) shall be deemed to constitute gross  negligence or willful misconduct for purposes of this Section 9.3). Each Agent shall be deemed  not to have knowledge of any Default or Event of Default unless and until written notice clearly  marked “notice of default” and describing such Default or Event of Default is given to such   Agent by Parent or a Lender. No Agent shall, except as expressly set forth herein and in the other   Loan Documents, have any duty to disclose, and shall be liable for the failure to disclose, any   information relating to Parent or any of its Affiliates that is communicated to or obtained by the   Person serving as Agent or any of its Affiliates in any capacity. Each Agent shall be entitled to  refrain from any act or the taking of any action (including the failure to take an action) in  connection herewith or any of the other Loan Documents or from the exercise of any power,  discretion or authority vested in it hereunder or thereunder unless and until such Agent shall have  received instructions in respect thereof from the Required Lenders (or such other Lenders as may  be required to give such instructions under Section 10.5) and, upon receipt of such instructions  from the Required Lenders (or such other Lenders, as the case may be), such Agent shall be  entitled to act or (where so instructed) refrain from acting, or to exercise such power, discretion  or authority, in accordance with such instructions and shall not be required to take any action  that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability  or that is contrary to any Loan Document or applicable law. Without prejudice to the generality  of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying,  upon any communication, instrument or document believed by it to be genuine and correct and to  have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall  be protected in relying on opinions and judgments of attorneys (who may be attorneys for Parent                                          95    

 

   and its Subsidiaries), accountants, experts and other professional advisors selected by it; and (ii)  no Lender shall have any right of action whatsoever against any Agent as a result of such Agent  acting or (where so instructed) refraining from acting hereunder or any of the other Loan  Documents in accordance with the instructions of the Required Lenders (or such other Lenders  as may be required to give such instructions under Section 10.5). No provision of this Agreement  or any other Loan Document or any agreement or instrument contemplated hereby or thereby or  the transactions contemplated hereby or thereby shall require the Administrative Agent or the  Collateral Agent to: (1) expend or risk its own funds or provide indemnities in the performance  of any of its duties hereunder or exercise of any of its rights or powers or (ii) otherwise incur any  financial liability in the performance of its duties or the exercise of any of its rights or powers.               (c)   Delegation of Duties. The Administrative Agent may perform any and all  of its duties and exercise its rights and powers under this Agreement or under any other Loan  Document by or through any one (1) or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all of its duties and  exercise its rights and powers by or through their respective Affiliates. The exculpatory,  indemnification and other provisions of this Section 9.3 and of Section 9.6 shall apply to the  Affiliates of the Administrative Agent and shall apply to their respective activities in connection  with the syndication of the credit facilities provided for herein as well as activities of the  Administrative Agent and the Syndication Agent. All of the rights, benefits, and privileges  (including the exculpatory and indemnification provisions) of this Section 9.3 and of Section 9.6  shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and shall apply to  their respective activities as sub-agent as if such sub-agent and Affiliates were named herein.  Notwithstanding anything herein to the contrary, with respect to each sub-agent appointed by the  Administrative Agent, (i) such sub-agent shall be a third party beneficiary under this Agreement  with respect to all such rights, benefits and privileges (including exculpatory rights and rights to  indemnification) and shall have all of the rights and benefits of a third party beneficiary,  including an independent right of action to enforce such rights, benefits and privileges (including  exculpatory rights and rights to indemnification) directly, without the consent or joinder of any  other Person, against any or all of Loan Parties and the Lenders, (ii) such rights, benefits and  privileges (including exculpatory rights and rights to indemnification) shall not be modified or  amended without the consent of such sub-agent, and (iii) such sub-agent shall only have  obligations to the Administrative Agent and not to any Loan Party, Lender or any other Person  and no Loan Party, Lender or any other Person shall have any rights, directly or indirectly, as a  third party beneficiary or otherwise, against such sub-agent.         Section 9.4 Agents Entitled to Act as Lender. The agency hereby created shall in no  way impair or affect any of the rights and powers of, or impose any duties or obligations upon,  any Agent in its individual capacity as a Lender hereunder. With respect to its participation in the  Loans, each Agent shall have the same rights and powers hereunder as any other Lender and may  exercise the same as if it were not performing the duties and functions delegated to it hereunder,  and the term “Lender” shall, unless the context clearly otherwise indicates, include each Agent in  its individual capacity. Any Agent and its Affiliates may accept deposits from, lend money to,  own securities of, and generally engage in any kind of banking, trust, financial advisory or other  business with Parent or any of its Affiliates as if it were not performing the duties specified  herein, and may accept fees and other consideration from Parent for services in connection  herewith and otherwise without having to account for the same to Lenders.                                         96   

 

           Section 9.5 Lenders’ Representations, Warranties and Acknowledgment.                (a)   Each Lender represents and warrants that it has made its own independent   investigation of the financial condition and affairs of Parent and its Subsidiaries in connection   with Loans hereunder and that it has made and shall continue to make its own appraisal of the   creditworthiness of Parent and its Subsidiaries. No Agent shall have any duty or responsibility,   either initially or on a continuing basis, to make any such investigation or any such appraisal on   behalf of Lenders or to provide any Lender with any credit or other information with respect  thereto, whether coming into its possession before the making of the Loans or at any time or  times thereafter, and no Agent shall have any responsibility with respect to the accuracy of or the  completeness of any information provided to Lenders.               (b)   Each Lender, by delivering its signature page to this Agreement or an  Assignment Agreement or a Joinder Agreement and funding its Loan, on the Effective Date, the  Second Draw Date or the Increased Amount Date, as applicable, shall be deemed to have  acknowledged receipt of, and consented to and approved, each Loan Document and each other  document required to be approved by any Agent, the Required Lenders or Lenders, as applicable  on the Effective Date, the Second Draw Date or the Increased Amount Date, as applicable.         Section 9.6 Indemnity. Each Lender, in proportion to its Pro Rata Share, severally   agrees to indemnify and hold harmless each Agent, to the extent that such Agent shall not have   been reimbursed by any Loan Party (and without limiting its obligation to do so), for and against   any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,  expenses (including counsel fees and disbursements) or disbursements of any kind or nature  whatsoever which may be imposed on, incurred by or asserted against such Agent in exercising  its powers, rights and remedies or performing its duties hereunder or under the other Loan  Documents or otherwise in its capacity as such Agent in any way relating to or arising out of this  Agreement or the other Loan Documents; provided that no Lender shall be liable for any portion   of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,  expenses or disbursements resulting from such Agent’s gross negligence or willful misconduct,  as determined by a final, non-appealable judgment of a court of competent jurisdiction. If any   indemnity furnished to any Agent for any purpose shall, in the opinion of such Agent, be  insufficient or become impaired, such Agent may call for additional indemnity and cease, or not   commence, to do the acts indemnified against until such additional indemnity is furnished;   provided that in no event shall this sentence require any Lender to indemnify any Agent against   any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or   disbursement in excess of such Lender’s Pro Rata Share thereof.          Section 9.7 Successor Administrative Agent and Collateral Agent. The Administrative   Agent shall have the right to resign at any time by giving prior written notice thereof to Lenders   and Parent. The Administrative Agent shall have the right to appoint a financial institution to act   as the Administrative Agent and/or the Collateral Agent hereunder, subject to the reasonable   satisfaction of Parent and the Required Lenders, and the Administrative Agent’s resignation shall   become effective on the earlier of (i) the acceptance of such successor Administrative Agent by   Parent and the Required Lenders or (ii) the thirtieth (30th) day after such notice of resignation.   Upon any such notice of resignation, if a successor Administrative Agent has not already been   appointed by the retiring Administrative Agent, the Required Lenders shall have the right, upon                                          97    

 

     five (5) Business Days’ notice to Parent, to appoint a successor Administrative Agent, subject to   the reasonable satisfaction of Parent. If neither the Required Lenders nor the Administrative   Agent have appointed a successor Administrative Agent, the Required Lenders shall be deemed   to have succeeded to and become vested with all the rights, powers, privileges and duties of the   retiring Administrative Agent; provided that until a successor Administrative Agent is so   appointed by the Required Lenders or the Administrative Agent, the Administrative Agent, by   notice to Parent and the Required Lenders, may retain its role as the Collateral Agent under any   Security Document. Upon the acceptance of any appointment as the Administrative Agent   hereunder by a successor Administrative Agent, that successor Administrative Agent shall   thereupon succeed to and become vested with all the rights, powers, privileges and duties of the   retiring Administrative Agent and the retiring Administrative Agent shall promptly (i) transfer to   such successor Administrative Agent all sums, Securities and other items of Collateral held   under the Security Documents, together with all records and other documents necessary or   appropriate in connection with the performance of the duties of the successor Administrative   Agent under the Loan Documents, and (ii) execute and deliver to such successor Administrative  Agent such amendments to financing statements, and take such other actions, as may be  necessary or appropriate in connection with the assignment to such successor Administrative  Agent of the security interests created under the Security Documents, whereupon such retiring  Administrative Agent shall be discharged from its duties and obligations hereunder. Except as  provided above, any resignation of Cortland or its successor as the Administrative Agent  pursuant to this Section 9.7 shall also constitute the resignation of Cortland or its successor as the  Collateral Agent. After any retiring Administrative Agent’s resignation hereunder as  Administrative Agent, the provisions of this Section 9.7 shall inure to its benefit as to any actions  taken or omitted to be taken by it while it was the Administrative Agent hereunder. Any  successor Administrative Agent appointed pursuant to this Section 9.7 shall, upon its acceptance  of such appointment, become the successor Collateral Agent for all purposes hereunder.         Section 9.8 Security Documents and Guaranty.                (a)   Agents under Security Documents and Guaranty. Each Secured Party   hereby further authorizes the Administrative Agent or the Collateral Agent, as applicable, on   behalf of and for the benefit of Secured Parties, to be the agent for and representative of Secured   Parties with respect to the Guaranty, the Collateral and the Security Documents. Without further  written consent or authorization from any Secured Party, the Administrative Agent or the  Collateral Agent, as applicable may execute any documents or instruments necessary to (i) in  connection with a sale or disposition of assets permitted by this Agreement, release any Lien   encumbering any item of Collateral that is the subject of such sale or other disposition of assets   or to which the Required Lenders (or such other Lenders as may be required to give such consent   under Section 10.5) have otherwise consented or (ii) release any Subsidiary Guarantor from the   Guaranty pursuant to Section 7.12 or with respect to which the Required Lenders (or such other   Lenders as may be required to give such consent under Section 10.5) have otherwise consented.   The Agents shall not be responsible for (i) perfecting, maintaining, monitoring, preserving or   protecting the security interest or Lien granted under this Agreement, any other Loan Document   or any agreement or instrument contemplated hereby or thereby, (ii) the filing, re-filing,   recording, re-recording or continuing of any document, financing statement, mortgage,   assignment, notice, instrument of further assurance or other instrument in any public office at                                          98    

 

   any time or times or (iii) providing, maintaining, monitoring or preserving insurance on, or the  payment of taxes with respect to, any of the Collateral.               (b)   Right to Realize on Collateral and Enforce Guaranty. Anything contained  in any of the Loan Documents to the contrary notwithstanding, Parent, the Administrative Agent,  the Collateral Agent and each Secured Party hereby agree that (i) no Secured Party shall have  any right individually to realize upon any of the Collateral or to enforce the Guaranty, it being  understood and agreed that all powers, rights and remedies hereunder may be exercised solely by  the Administrative Agent, on behalf of the Secured Parties in accordance with the terms hereof  and all powers, rights and remedies under the Security Documents may be exercised solely by  the Collateral Agent and (ii) in the event of a foreclosure by the Collateral Agent on any of the  Collateral pursuant to a public or private sale or other disposition, the Collateral Agent or any  Lender may be the purchaser or licensor of any or all of such Collateral at any such sale or other  disposition and the Collateral Agent, as agent for and representative of the Secured Parties (but  not any Lender or Lenders in its or their respective individual capacities unless the Required  Lenders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making  settlement or payment of the purchase price for all or any portion of the Collateral sold at any  such public sale, to use and apply any of the Obligations as a credit on account of the purchase  price for any collateral payable by the Collateral Agent at such sale or other disposition.               (c)   Release of Collateral and Guarantees, Termination of Loan Documents.  Notwithstanding anything to the contrary contained herein or any other Loan Document, when  all Obligations (other than contingent indemnification and cost reimbursement obligations for  which no claim has been made) have been paid in full and all Commitments have terminated or  expired or been cancelled, each of the Administrative Agent and the Collateral Agent shall  (without notice to, or vote or consent of, any Lender) take such actions as shall be necessary or  advisable or reasonably requested by Parent to release its security interest in all Collateral, and to  release all guarantee obligations provided for in any Loan Document. Any such release of  guarantee obligations shall be deemed subject to the provision that such guarantee obligations  shall be reinstated if after such release any portion of any payment in respect of the Obligations  guaranteed thereby shall be rescinded or must otherwise be restored or returned upon the  insolvency, bankruptcy, dissolution, liquidation or reorganization of Parent or any other Loan  Party, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or  trustee or similar officer for, Parent or any other Loan Party or any substantial part of its  property, or otherwise, all as though such payment had not been made. In addition, the Agents  and the Lenders hereby agree that in connection with (i) any sale or transfer not prohibited by  this Agreement or any other Loan Document (including a sale or transfer of a Subsidiary) or (ii)  any Collateral becoming an Excluded Asset (as defined in the Security Agreement), any Lien on  any assets transferred as part of or in connection with any such sale or transfer or on such  Excluded Assets, as the case may be, and granted to or held by the Collateral Agent under any  Loan Document shall be automatically released at the time of consummation of such sale or  transfer or upon such asset becoming an Excluded Asset.               (d)   No Agent shall be required to qualify in any jurisdiction in which it is not  presently qualified to perform its obligations as Agent.                                          99   

 

           Section 9.9 Withholding Taxes. To the extent required by any applicable law, the   Administrative Agent may withhold from any payment to any Lender an amount equivalent to   any applicable withholding Tax. If the Internal Revenue Service or any other Governmental   Authority asserts a claim that the Administrative Agent did not properly withhold Tax from   amounts paid to or for the account of any Lender for any reason (including because the   appropriate form was not delivered or was not properly executed or because such Lender failed   to notify the Administrative Agent of a change in circumstance which rendered the exemption   from, or reduction of, withholding Tax ineffective), such Lender shall indemnify the   Administrative Agent fully for all amounts paid, directly or indirectly, by the Administrative   Agent as Tax or otherwise, including any penalties, additions to Tax or interest and together with   all expenses (including legal expenses, allocated internal costs and out-of-pocket expenses)   incurred, whether or not such Tax was correctly or legally asserted. A certificate as to the amount   of such payment or liability delivered to any Lender by the Administrative Agent shall be   conclusive absent manifest error. The agreements in this Section 9.9 shall survive the resignation   and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement   of, a Lender, the termination of the Agreement and the repayment, satisfaction or discharge of all   other obligations. Each Lender hereby authorizes the Administrative Agent to set off and apply   any and all amounts at any time owing to such Lender under this Agreement or any other Loan   Document against any amount due the Administrative Agent under this Section 9.9.          Section 9.10 Administrative Agent May File Proofs of Claim. In case of the pendency   of any proceeding under the Bankruptcy Code or other applicable law or any other judicial   proceeding relative to Parent, the Administrative Agent (irrespective of whether the principal of   any Loan shall then be due and payable as herein expressed or by declaration or otherwise and   irrespective of whether the Administrative Agent shall have made any demand on Parent) shall   be entitled and empowered, by intervention in such proceeding or otherwise (a) to file and prove  a claim for the whole amount of the principal and interest owing and unpaid in respect of the  Loans and all other Obligations that are owing and unpaid and to file such other documents as  may be necessary or advisable in order to have the claims of the Lenders and the other Secured  Parties (including fees, disbursements and other expenses of counsel) allowed in such judicial  proceeding and (b) to collect and receive any monies or other property payable or deliverable on  any such claims and to distribute the same. Any custodian, receiver, assignee, trustee, liquidator,  sequestrator or other similar official in any such judicial proceeding is hereby authorized by each  Lender and other Secured Party to make such payments to the Administrative Agent. Nothing  contained herein shall be deemed to authorize the Administrative Agent to authorize or consent  to or accept or adopt on behalf of any Lender or other Secured Party any plan of reorganization,  arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or  other Secured Party to authorize the Administrative Agent to vote in respect of the claim of such  Person or in any such proceeding.                                     ARTICLE X                                 MISCELLANEOUS          Section 10.1 Notices.                (a)   Notices Generally. Any notice or other communication herein required or   permitted to be given under the Loan Documents shall be sent to such Person’s address as set                                         100    

 

     forth on Schedule 10.1(a) (with copies to such other Persons as are set forth therein) or in the   other relevant Loan Document, and in the case of any Lender, the address as specified on   Schedule 10.1(a) or otherwise specified to the Administrative Agent in writing. Except as   otherwise set forth in paragraph (b) below, each notice hereunder shall be in writing and may be   personally served or sent by facsimile or United States mail or courier service and shall be   deemed to have been given when delivered in person or by courier service and signed for against  receipt thereof, upon receipt of facsimile, or three (3) Business Days after depositing it in the  United States mail with postage prepaid and properly addressed; provided that no notice to any   Agent shall be effective until received by such Agent.                (b)   Electronic Communications. Notices and other communications to Agents   and Lenders hereunder may be delivered or furnished by electronic communication (including e- mail and Internet or intranet websites). Notices and other communications sent to an e-mail  address shall be deemed received upon the sender’s receipt of an acknowledgement from the   intended recipient (such as by the “return receipt requested” function, as available, return e-mail   or other written acknowledgement); provided that if such notice or other communication is not   sent during the normal business hours of the recipient, such notice or communication shall be   deemed to have been sent at the opening of business on the next Business Day for the recipient,   and notices or communications posted to an Internet or intranet website shall be deemed received   upon the deemed receipt by the intended recipient at its e-mail address as described in this clause   (b) of notification that such notice or communication is available and identifying the website  address therefor.               (c)   Public Lenders. Each Public Lender agrees to cause at least one (1)   individual at or on behalf of such Public Lender to at all times have selected the “Private Side   Information” or similar designation on the content declaration screen of the Platform in order to   enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance   procedures and applicable law, including United States Federal and state securities laws, to make   reference to Borrower Materials that are not made available through the “Public Side   Information” portion of the Platform and that may contain material non-public information with   respect to Parent or its securities for purposes of United States Federal or state securities laws.          Section 10.2 Expenses. Parent agrees to pay, within ten (10) Business Days of receipt   of written request therefor, (a) all the reasonable and documented out-of-pocket costs and   expenses of the Agents and Lenders (subject to clause (b) below) incurred in connection with the   initial negotiation, preparation and execution of the Loan Documents and, with respect to the   Agents, any consents, amendments, waivers or other modifications thereto; (b) the reasonable   and documented out-of-pocket fees, expenses and disbursements of counsel to the Lenders and   counsel to the Agents (in each case limited to (x) a single firm of primary counsel for the   Lenders and (y) a single firm of primary counsel for the Agents, and (x) a single firm of local   counsel for the Lenders and (y) a single firm of local counsel for the Agents in each appropriate   jurisdiction) in connection with the negotiation, preparation and execution of the Loan   Documents and any consents, amendments, waivers or other modifications thereto and, in the   case of the Agents, the administration thereof; (c) all reasonable and documented out-of-pocket   costs and expenses arising in connection with or relating to creating, perfecting, recording,   maintaining and preserving Liens in favor of the Collateral Agent, for the benefit of Secured   Parties; (d) all reasonable and documented out-of-pocket costs and expenses in connection with                                         101    

 

     the custody or preservation of the Collateral; and (e) after the occurrence of an Event of Default,   all reasonable and documented out-of-pocket costs and expenses incurred by any Agent and the   Lenders in enforcing any Obligations of or in collecting any payments due from any Loan Party   hereunder or under the Loan Documents by reason of such Event of Default (including in   connection with the sale, lease or license of, collection from, or other realization upon any of the   Collateral or the enforcement of the Guaranty) or in connection with any refinancing or  restructuring of the credit arrangements provided hereunder in the nature of a “work-out” or  pursuant to any insolvency or bankruptcy cases or proceedings. On the Effective Date, Parent  shall be responsible for the fees, charges and disbursements of counsel Sullivan & Cromwell  LLP, Cadwalader, Wickersham & Taft LLP and Norton Rose Fulbright US LLP, subject to the  limitations set forth in Section 3.1(j).         Section 10.3 Indemnity.                (a)   In addition to the payment of expenses pursuant to Section 10.2, each   Loan Party agrees to defend, indemnify, pay and hold harmless, each Agent and Lender and each   Related Party of the foregoing (each, an “Indemnitee”), from and against any and all   Indemnified Liabilities; provided that no Loan Party shall have any obligation to any Indemnitee   hereunder with respect to any Indemnified Liabilities (i) to the extent such Indemnified  Liabilities resulted from the gross negligence, bad faith or willful misconduct of that Indemnitee  or any of its Related Parties, in each case, as determined by a final, non-appealable judgment of a   court of competent jurisdiction, (ii) arising from the material breach by such Indemnitee or any   of its Related Parties of its obligations under this Agreement or any other Loan Document, as   determined by a final, non-appealable judgment of a court of competent jurisdiction or (iii)   arising from any investigation, litigation or proceeding that does not involve an act or omission   of Indemnitee or any of its Subsidiaries and that is brought by an Indemnitee against any other   Indemnitee, other than claims against any Agent (or an Affiliate thereof) in its capacity or   carrying out its duties as an agent or arranger with respect to the Loans. This Section 10.3 shall   not apply with respect to any Taxes, other than Taxes arising from a non-Tax claim.                (b)   To the extent permitted by applicable law, no Loan Party nor any   Indemnitee shall assert, and each Loan Party and Indemnitee hereby waives, any claim against   any Loan Party or any Indemnitee on any theory of liability, for special, indirect, consequential   or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor   is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in   connection with, as a result of or in any way related to this Agreement or any Loan Document or   any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the   transactions contemplated hereby or thereby, the transmission of information through the   Internet, any Loan or the use of the proceeds thereof or any act or omission or event occurring in   connection therewith; provided that nothing in this clause (b) shall in any way limit the   indemnification obligations of the Loan Parties under clause (a) above.          Section 10.4 Set-Off. In addition to any rights now or hereafter granted under   applicable law and not by way of limitation of any such rights, upon the occurrence and during   the continuance of any Event of Default each Lender is hereby authorized by each Loan Party at   any time or from time to time subject to the consent of the Administrative Agent (such consent   not to be unreasonably withheld, conditioned or delayed), and upon notice to Parent and the                                         102    

 

     Administrative Agent, to set off and to appropriate and to apply any and all deposits (general or  special, including Indebtedness evidenced by certificates of deposit, whether matured or  unmatured, but not including trust accounts) and any other Indebtedness at any time held or  owing by such Lender to or for the credit or the account of any Loan Party against and on   account of the obligations and liabilities of any Loan Party to such Lender hereunder and under   the other Loan Documents. Each Lender agrees to notify Parent and the Administrative Agent   promptly after any such setoff and application; provided that the failure to give such notice shall   not affect the validity of such setoff and application.          Section 10.5 Amendments and Waivers.                (a)   Required Lenders’ Consent. Subject to the additional requirements of   Sections 10.5(b) and 10.5(c) and except as set forth in Section 10.5(e), no amendment,   modification, termination or waiver of any provision of the Loan Documents (other than the   Agent Fee Letter), or consent to any departure by any Loan Party therefrom, shall in any event   be effective without the written concurrence of the Administrative Agent and the Required   Lenders; provided that the Administrative Agent may, with the consent of Parent only, amend,   modify or supplement this Agreement or any other Loan Document to cure any ambiguity,   omission, defect or inconsistency, so long as such amendment, modification or supplement is not   objected to in writing by the Required Lenders to the Administrative Agent within five (5)   Business Days following receipt of notice thereof.                (b)   Affected Lenders’ Consent. Without the written consent of each Lender   that would be directly adversely affected thereby, no amendment, modification, termination, or   consent shall be effective if the effect thereof would:                    (i)     extend the scheduled final maturity of any Loan or Note or         principal amount outstanding, or waive, forgive, reduce or postpone any scheduled         repayment (but not prepayment) of principal;                   (ii)     reduce the rate of interest on any Loan or any fee payable         hereunder; provided that only the consent of the Required Lenders shall be necessary to         amend the Default Rate in Section 2.7 or to waive any obligation of Parent to pay interest         at the Default Rate;                   (iii)    waive or extend the time for payment of any such interest, fees or         premiums;                   (iv)     reduce the principal amount of any Loan;                   (v)     amend, modify, terminate or waive any provision of Section 2.13,         this Section 10.5(b), Section 10.5(c), any provision of the Security Agreement therein         specified to be subject to this Section 10.5(b) or any other provision of this Agreement        that expressly provides that the consent of all Lenders is required;                   (vi)    amend the definition of “Required Lenders” or amend Section        10.5(a) in a manner that has the same effect as an amendment to such definition or the        definition of “Pro Rata Share”; provided that with the consent of the Required Lenders,                                         103    

 

         additional extensions of credit pursuant hereto may be included in the determination of        the “Required Lenders” or “Pro Rata Share” on substantially the same basis as the        Commitments and the Loans are included on the Effective Date; provided, further, that        the consent of the Required Lenders shall not be required in connection with any        incurrence of Term Loans added pursuant to Section 2.20;                 (vii)     release all or substantially all of the Collateral or all or        substantially all of the Subsidiary Guarantors from the Guaranty except as expressly        provided in the Loan Documents;                  (viii)    consent to the assignment or transfer by any Loan Party of any of        its rights and obligations under any Loan Document except as expressly provided in any        Loan Document; or                  (ix)     alter the required application of any repayments or prepayments as        between Classes pursuant to Section 2.11;   provided that, for the avoidance of doubt, all Lenders shall be deemed directly affected thereby  with respect to any amendment described in clauses (v), (vi), (vii) and (viii).              (c)   Other Consents. No amendment, modification, termination or waiver of  any provision of the Loan Documents, or consent to any departure by any Loan Party therefrom,  shall:                   (i)     waive, forgive, reduce or postpone any prepayments without the        consent of Lenders holding Effective Date Term Loan Exposure plus Second Draw Term        Loan Exposure plus New Term Loan Exposure representing more than 75% of the sum of        (A) the aggregate Effective Date Term Loan Exposure of all Lenders, (B) the aggregate        Second Draw Term Loan Exposure of all Lenders and (C) the aggregate New Term Loan        Exposure of all Lenders;                  (ii)     amend, modify, terminate or waive any provision of Article IX as        the same applies to any Agent, or any other provision hereof as the same applies to the        rights or obligations of any Agent, in each case without the consent of such Agent; or                  (iii)    waive, forgive or reduce the Second Draw Term Loan        Commitments, other than as a result of the funding of the Second Draw Term Loans in        full, or the amount of the Loans to be made on the Second Draw Date, or waive any        obligation of Lenders holding Second Draw Term Loan Commitments to fund their        Second Draw Term Loans, so long as the Effective Date has occurred, in each case        without the consent of the Canyon Lenders, and the Canyon Lenders shall be a third party        beneficiary of such funding obligation.  Parent and the Lenders holding Second Draw        Term Loan Commitments acknowledge and agree that the Canyon Lenders shall have the        express right to enforce the obligation of the Lenders holding Second Draw Term Loan        Commitments to fund their Second Draw Term Loans on the Second Draw Date.               (d)   Execution of Amendments, Etc. The Administrative Agent may, but shall  have no obligation to, with the concurrence of any Lender, execute amendments, modifications,                                        104   

 

   waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in  the specific instance and for the specific purpose for which it was given. No notice to or demand  on any Loan Party in any case shall entitle any Loan Party to any other or further notice or  demand in similar or other circumstances. Any amendment, modification, termination, waiver or  consent effected in accordance with this Section 10.5 shall be binding upon each Lender at the  time outstanding, each future Lender and, if signed by a Loan Party, on such Loan Party.               (e)   New Term Loans. Notwithstanding anything to the contrary herein or in  any other Loan Document, this Agreement and the other Loan Documents may be amended with  the written consent of only the Administrative Agent and Parent to the extent necessary in order  to evidence and implement any incurrence of Term Loans pursuant to Section 2.20.               (f)   Affiliated Lenders.                    (i)     Notwithstanding anything in this Section 10.5 or the definition of        “Required Lenders” to the contrary, for purposes of determining whether the Required        Lenders have (x) consented (or not consented) to any amendment, modification, waiver,        consent or other action with respect to any of the terms of any Loan Document or any        departure by any Loan Party therefrom, or subject to Section 10.5(f)(ii), any plan of        reorganization pursuant to the U.S. Bankruptcy Code, (y) otherwise acted on any matter        related to any Loan Document, or (z) directed or required the Administrative Agent or        any Lender to undertake any action (or refrain from taking any action) with respect to or        under any Loan Document, no Affiliated Lender shall have any right to consent (or not        consent), otherwise act or direct or require the Administrative Agent or any Lender to        take (or refrain from taking) any such action, and all Loans held by any Affiliated        Lenders shall be deemed to be not outstanding for all purposes of calculating whether the        Required Lenders or all Lenders have taken any actions, except that no amendment,        modification or waiver of any Loan Document shall, without the consent of the        applicable Affiliated Lender, deprive any Affiliated Lender of its Pro Rata Share of any        payment to which all Lenders are entitled or affect an Affiliated Lender in a manner that        is disproportionate to the effect on any Lender that is not an Affiliated Lender.                  (ii)     Notwithstanding anything in this Agreement or the other Loan        Documents to the contrary, each Affiliated Lender hereby agrees that (and each Affiliated        Lender Assignment Agreement shall provide a confirmation that) if a proceeding under        any bankruptcy, reorganization or insolvency case or proceeding shall be commenced by        or against Parent or any other Loan Party at a time when such Lender is an Affiliated        Lender, such Affiliated Lender irrevocably authorizes and empowers the Administrative        Agent to vote on behalf of such Affiliated Lender with respect to the Loans held by such        Affiliated Lender in a manner such that all Affiliated Lenders will be deemed to vote in        the same proportion as Lenders that are not Affiliated Lenders, unless the Administrative        Agent instructs such Affiliated Lender to vote, in which case such Affiliated Lender shall        vote with respect to the Loans held by it in order to provide that all Affiliated Lenders        will be deemed to vote in the same proportion as Lenders that are not Affiliated Lenders;        provided that such Affiliated Lender shall be entitled to vote in accordance with its sole        discretion (and not in accordance with the direction of the Administrative Agent) in       connection with any plan of reorganization to the extent any such plan of reorganization                                        105   

 

           proposes to treat any Obligations held by such Affiliated Lender in a manner that has a         disproportionate effect on such Affiliated Lender as compared to the proposed treatment         of similar Obligations held by Lenders that are not Affiliated Lenders.                (g)   Debt Fund Affiliates. Notwithstanding anything in this Section 10.5 or the   definition of “Required Lenders” to the contrary, for purposes of determining whether the   Required Lenders have (x) consented (or not consented) to any amendment, modification,   waiver, consent or other action with respect to any of the terms of any Loan Document or any   departure by any Loan Party therefrom, (y) otherwise acted on any matter related to any Loan   Document, or (z) directed or required the Administrative Agent or any Lender to undertake any   action (or refrain from taking any action) with respect to or under any Loan Document, all Loans  held by Debt Fund Affiliates, in the aggregate, may not account for more than 25.0% of the  Loans of consenting Lenders included in determining whether the Required Lenders have  consented to any action pursuant to this Section 10.5, except that no amendment, modification or  waiver of any Loan Document shall, without the consent of the applicable Debt Fund Affiliate,  deprive any Debt Fund Affiliate of its Pro Rata Share of any payment to which all Lenders are  entitled or affect a Debt Fund Affiliate in a manner that is disproportionate to the effect on any  Lender that is not a Debt Fund Affiliate.         Section 10.6 Successors and Assigns; Participations.                (a)   Generally. 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 the  successors and assigns of Lenders. Except as expressly permitted pursuant to Section 6.8 of this  Agreement, no Loan Party’s rights or obligations hereunder nor any interest therein may be  assigned or delegated by any Loan Party without the prior written consent of all Lenders (and  any purported assignment or delegation without such consent shall be null and void) and of the  Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person  (other than the parties hereto, their respective successors and assigns permitted hereby and, to the  extent expressly contemplated hereby, Affiliates of each of the Agents and Lenders) any legal or  equitable right, remedy or claim under or by reason of this Agreement.               (b)   Right to Assign. Subject to Section 2.4(b), each Lender shall have the   right at any time to sell, assign or transfer all or a portion of its rights and obligations under this   Agreement, including all or a portion of its Commitment or Loans owing to it or other   Obligations (provided that pro rata assignments shall not be required and each assignment shall   be of a uniform, and not varying, percentage of all rights and obligations under and in respect of   any applicable Loan and any related Commitments):                    (i)     to any Person other than Excluded Institutions meeting the criteria         of clause (i) of the definition of the term “Eligible Assignee” upon the giving of notice to         Parent and the Administrative Agent; and                   (ii)     to any Person other than Excluded Institutions meeting the criteria         of clause (ii) of the definition of the term “Eligible Assignee” upon giving of notice to         Parent and the Administrative Agent and, so long as no Event of Default has then                                         106    

 

           occurred and is continuing, with the prior written consent of Parent (not to be         unreasonably withheld, delayed or conditioned); provided, that such consent shall be         deemed to have been given if Parent has not responded within ten (10) Business Days         after notice by the Administrative Agent or the respective assigning Lender; provided,         further, that it shall be deemed reasonable for Parent to withhold consent if the proposed         assignee has filed a claim with respect to or has otherwise initiated, or is or has been a         party to or subject to, any Adverse Proceeding, controversy or dispute with respect to any        Contractual Obligation with Parent or any of its Subsidiaries.   provided that each such assignment pursuant to this Section 10.6(b) shall be in an aggregate   amount of not less than $1,000,000 (or such lesser amount as may be agreed to by the  Administrative Agent or as shall constitute the aggregate amount of the Effective Date Term  Loan, the Second Draw Term Loan or the New Term Loans of a Series of the assigning Lender)  with respect to the assignment of Loans; provided, further, that the Related Funds of any   individual Lender may aggregate their Loans for purposes of determining compliance with such   minimum assignment amounts (it being understood and agreed that at the request of any Lender   the Administrative Agent shall be permitted to disclose to such Lender the identity of each   Excluded Institution); provided, further, in the case of any Assignee that, immediately prior to or   upon giving effect to such assignment, is an Affiliated Lender, such assignment shall be subject   to the additional limitations set forth in Section 10.6(h); provided, further, that such assignee, if it   shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire,   a properly completed and duly executed copy of IRS Form W-9 (or other applicable tax form)   and all other documentation and other information required by regulatory authorities under   applicable “know your customer” and anti-money laundering rules and regulations including,   without limitation, the PATRIOT Act.                (c)   Assignment Agreements. Assignments made pursuant to the foregoing   provision shall be effective as of the Assignment Effective Date. In connection with all   assignments there shall be delivered to the Administrative Agent a duly signed Assignment   Agreement and such forms, certificates or other evidence, if any, with respect to United States   federal income tax withholding matters as the assignee under such Assignment Agreement may   be required to deliver pursuant to Section 2.16(c), together with payment to the Administrative   Agent of a registration and processing fee of $3,500 (except that no such registration and   processing fee shall be payable in the case of an Eligible Assignee which is already a Lender or   is an Affiliate or Related Fund of a Lender or a Person under common management with a   Lender).                (d)   Representations and Warranties of Assignee. Each Lender, upon execution   and delivery hereof or upon succeeding to an interest in the Commitments and Loans, as the case   may be, represents and warrants as of the Effective Date or as of the Assignment Effective Date   that (i) it is an Eligible Assignee; (ii) it has experience and expertise in the making of or   investing in commitments or loans such as the applicable Commitments or Loans, as the case   may be; and (iii) it shall make or invest in, as the case may be, its Commitments or Loans for its   own account in the ordinary course and without a view to distribution of such Commitments or   Loans within the meaning of the Securities Act or the Exchange Act or other federal securities   laws (it being understood that, subject to the provisions of this Section 10.6, the disposition of                                         107    

 

   such Commitments or Loans or any interests therein shall at all times remain within its exclusive  control).               (e)   Effect of Assignment. Subject to the terms and conditions of this Section  10.6, as of the Assignment Effective Date (i) the assignee thereunder shall have the rights and  obligations of a “Lender” hereunder to the extent of its interest in the Loans and Commitments as  reflected in the Register and shall thereafter be a party hereto and a “Lender” for all purposes  hereof; (ii) the assigning Lender thereunder shall, to the extent that rights and obligations  hereunder have been assigned to the assignee, relinquish its rights (other than any rights which  survive the termination hereof, including under Section 10.7) and be released from its obligations  hereunder (and, in the case of an assignment covering all or the remaining portion of an  assigning Lender’s rights and obligations hereunder, such Lender shall cease to be a party hereto  on the Assignment Effective Date; provided that anything contained in any of the Loan  Documents to the contrary notwithstanding, such assigning Lender shall continue to be entitled  to the benefit of all indemnities hereunder as specified herein with respect to matters arising out  of the prior involvement of such assigning Lender as a Lender hereunder); (iii) the Commitments  shall be modified to reflect any Commitment of such assignee; and (iv) if any such assignment  occurs after the issuance of any Note hereunder, the assigning Lender shall, upon the  effectiveness of such assignment or as promptly thereafter as practicable, surrender its applicable  Notes to the Administrative Agent for cancellation, and thereupon Parent shall issue and deliver  new Notes, if so requested by the assignee and/or assigning Lender, to such assignee and/or to  such assigning Lender, with appropriate insertions, to reflect the new outstanding Loans of the  assignee and/or the assigning Lender.               (f)   Participations.                   (i)     Each Lender shall have the right at any time to sell one or more        participations to any Person (other than Parent, any of its Subsidiaries or any of its        Affiliates and other than any Excluded Institution) in all or any part of its Commitments,        Loans or in any other Obligation. No consent of the Administrative Agent or Parent shall        be required in connection with any such participation.                   (ii)     The holder of any such participation shall not be entitled to require        such Lender to take or omit to take any action hereunder except with respect to any        amendment, modification or waiver that would (A) extend the final scheduled maturity of        any Loan or Note in which such participant is participating, change the amount or due        dates of scheduled principal repayments or prepayments or premiums or reduce the rate        or extend the time of payment of interest or fees thereon (except in connection with an        amendment to the Default Rate in Section 2.7 or a waiver of any obligation of Parent to        pay interest at the Default Rate) or reduce the principal amount thereof, or increase the        amount of the participant’s participation over the amount thereof then in effect (it being        understood that a waiver of any Default or Event of Default shall not constitute a change        in the terms of such participation, and that an increase in any Commitment or Loan shall        be permitted without the consent of any participant if the participant’s participation is not        increased as a result thereof), (B) consent to the assignment or transfer by any Loan Party        of any of its rights and obligations under this Agreement, (C) amend the definition of        “Required Lenders” (or amend Section 10.5(a) in a manner that has the same effect as an                                        108   

 

         amendment to such definition) or the definition of “Pro Rata Share” or (D) release all or        substantially all of the Subsidiary Guarantors or all or substantially all of the Collateral        under the Security Documents (except as expressly provided in the Loan Documents)        supporting the Loans hereunder in which such participant is participating. All amounts        payable by Parent or any other Loan Party hereunder shall be determined as if such        Lender had not sold such participation, except that, if amounts outstanding under this       Agreement are due and unpaid, or shall have been declared or shall have become due and        payable upon the occurrence of an Event of Default, each participant shall be deemed to        have the right of set off in respect of its participating interest in amounts owing under this        Agreement to the same extent as if the amount of its participating interest were owing        directly to it as a Lender under this Agreement. The rights of any participant only shall be        derivative through the Lender with whom such participant participates and no participant        shall have any rights under this Agreement or the other Loan Documents or any direct        rights as to the other Lenders, any Agent, Parent, the other Loan Parties or otherwise in       respect of the Obligations.                 (iii)    Parent agrees that each participant shall be entitled to the benefits        of Sections 2.15 and 2.16 (subject to the limitations and requirements of Section 2.16(c);        provided that any documentation required under Section 2.16(c) shall be provided solely        to the Lender that sold the participation) to the same extent as if it were a Lender and had        acquired its interest by assignment pursuant to clause (c) of this Section 10.6; provided        that a participant shall agree to be subject to Section 2.16 as though it were a Lender and        shall not be entitled to receive any greater payment under Sections 2.15 or 2.16 than the       applicable Lender would have been entitled to receive with respect to the participation       sold to such participant, except to the extent such entitlement to a greater payment results       from a Change in Law occurring after the participant became a participant; provided,        further, that nothing herein shall require any notice to Parent or any other Person in        connection with the sale of any participation. To the extent permitted by law, each        participant also shall be entitled to the benefits of Section 10.4 as though it were a        Lender; provided that such participant agrees to be subject to Section 2.13 as though it        were a Lender. Each Lender that sells a participating interest in its Commitments, Loans        or in any other Obligation to a participant, shall, as an agent of Parent solely for the        purposes of this Section 10.6(f), maintain a register (a “Participant Register”)        containing the name and principal and interest amounts of the participating interest of        each participant entitled to receive payments in respect of such participating interests;        provided, however, that a Lender shall have no obligation to show its Participant Register        to any Loan Party except to the extent required to demonstrate to the Internal Revenue        Service in connection with a tax audit that the Loans are in “registered form” for U.S.        federal income tax purposes. The entries in a Participant Register shall be conclusive,        absent manifest error, and such Lender shall treat each person whose name is recorded in        the Participant Register as the owner of such participation for all purposes of this        Agreement notwithstanding any notice to the contrary.               (g)   Certain Other Assignments and Participations. In addition to any other  assignment or participation permitted pursuant to this Section 10.6 and subject to the limitations  set forth in Section 10.6(b), respectively, any Lender may assign and/or pledge (without the  consent of Parent or the Administrative Agent) all or any portion of its Loans, the other                                        109   

 

   Obligations owed by or to such Lender, and its Notes, if any, to secure obligations of such  Lender including any Federal Reserve Bank as collateral security pursuant to Regulation A of the  Board of Governors and any operating circular issued by such Federal Reserve Bank or any  central bank having jurisdiction over such Lender; provided that no Lender, as between Parent  and such Lender, shall be relieved of any of its obligations hereunder as a result of any such  assignment and pledge; provided, further, that in no event shall the applicable Federal Reserve  Bank, pledgee or trustee, be considered to be a “Lender” or be entitled to require the assigning  Lender to take or omit to take any action hereunder.               (h)   Affiliated Lenders. Notwithstanding the foregoing, any Lender may at any  time, sell or assign all or a portion of its rights and obligations with respect to Loans under this  Agreement to a Person who is or will become, after such assignment, an Affiliated Lender,  subject to the following limitations:                   (i)     the assigning Lender and the Affiliated Lender purchasing such        Lender’s Loans shall execute and deliver to the Administrative Agent an Affiliated        Lender Assignment Agreement;                  (ii)     Affiliated Lenders will not (x) receive information provided solely        to Lenders by the Administrative Agent or any Lender and will not be permitted to attend        or participate in conference calls or meetings attended solely by the Lenders and the        Administrative Agent, other than the right to receive notices of prepayments and other        administrative notices in respect of its Loans or Commitments required to be delivered to        Lenders pursuant to Article II or (y) challenge the attorney-client privilege of the Lenders        or the Administrative Agent on the basis of any such Affiliated Lender’s status as a        Lender;                  (iii)    each Lender (other than any other Affiliated Lender) that assigns        any Loans to an Affiliated Lender shall deliver to the Administrative Agent and Parent a        customary Big Boy Letter, or other documentation as may be agreed by Parent and the        Administrative Agent;                  (iv)     the aggregate principal amount of Loans held at any one time by        Affiliated Lenders shall not exceed 25% of the original principal amount of all Loans at        such time outstanding (such percentage, the “Affiliated Lender Cap”); provided that to        the extent any assignment to an Affiliated Lender would result in the aggregate principal        amount of all Loans held by Affiliated Lenders exceeding the Affiliated Lender Cap, the        assignment of such excess amount will be void ab initio; and                  (v)     as a condition to each assignment pursuant to this clause (v), the       Administrative Agent and Parent shall have been provided a notice in the form of Exhibit       D-3 to this Agreement (a “Notice of Affiliate Assignment”) in connection with each       assignment to an Affiliated Lender or a Person that upon effectiveness of such       assignment would constitute an Affiliated Lender pursuant to which such Affiliated       Lender shall waive any right to bring any action in connection with such Loans against       the Administrative Agent, in its capacity as such.                                        110   

 

           Each Affiliated Lender agrees to notify the Administrative Agent promptly (and in any   event within ten (10) Business Days) if it acquires any Person who is also a Lender, and each   Lender agrees to notify the Administrative Agent promptly (and in any event within ten (10)   Business Days) if it becomes an Affiliated Lender. Such notice shall contain the type of   information required and be delivered to the same addressee as set forth in Exhibit D-3.          Notwithstanding anything to the contrary contained herein, any Affiliated Lender that has   purchased Loans pursuant to this subsection (h) may, in its sole discretion, contribute, directly or   indirectly, the principal amount of such Loans, plus all accrued and unpaid interest thereon, to   Parent for the purpose of cancelling and extinguishing such Loans. Upon the date of such   contribution, assignment or transfer, (x) the aggregate outstanding principal amount of Loans   shall reflect such cancellation and extinguishing of the Loans then held by Parent and (y) Parent   shall promptly provide notice to the Administrative Agent of such contribution of such Loans,   and the Administrative Agent, upon receipt of such notice, shall reflect the cancellation of the   applicable Loans in the Register.          Section 10.7 Survival of Representations, Warranties and Agreements. All   representations, warranties and agreements made herein shall survive the execution and delivery   hereof and the making of any Loan. Notwithstanding anything herein or implied by law to the   contrary, the agreements of each Loan Party set forth in Sections 2.15, 10.2, 10.3 and 10.4 and   the agreements of Lenders set forth in Sections 2.13, 9.3(b) and 9.6 shall survive the payment of   the Loans, and the termination hereof.          Section 10.8 No Waiver; Remedies Cumulative. No failure or delay on the part of any   Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other  Loan Document shall impair such power, right or privilege or be construed to be a waiver of any  default or acquiescence therein, nor shall any single or partial exercise of any such power, right  or privilege preclude other or further exercise thereof or of any other power, right or privilege.   The rights, powers and remedies given to each Agent and each Lender hereby are cumulative and   shall be in addition to and independent of all rights, powers and remedies existing by virtue of  any statute or rule of law or in any of the other Loan Documents. Any forbearance or failure to  exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any  such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the  further exercise of any such right, power or remedy.         Section 10.9 Marshalling; Payments Set Aside. Neither any Agent nor any Lender shall   be under any obligation to marshal any assets in favor of any Loan Party or any other Person or   against or in payment of any or all of the Obligations. To the extent that any Loan Party makes a   payment or payments to the Administrative Agent or Lenders (or to the Administrative Agent, on   behalf of Lenders), or any Agent or Lenders enforce any security interests or exercise their rights   of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any   part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside   and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law,   any other state or federal law, common law or any equitable cause, then, to the extent of such   recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights  and remedies therefor or related thereto, shall be automatically reinstated and continued in full                                         111    

 

     force and effect as if such payment or payments had not been made or such enforcement or setoff   had not occurred.          Section 10.10 Severability. In case any provision in or obligation hereunder or under any   other Loan Document 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.          Section 10.11 Obligations Several; Independent Nature of Lenders’ Rights. The   obligations of Lenders hereunder are several and no Lender shall be responsible for the  obligations or Commitment of any other Lender hereunder. Nothing contained herein or in any  other Loan Document, and no action taken by Lenders pursuant hereto or thereto, shall be   deemed to constitute Lenders as a partnership, an association, a joint venture or any other kind of   entity. The amounts payable at any time hereunder to each Lender shall be a separate and   independent debt, and, subject to Section 9.8(b), each Lender shall be entitled to protect and   enforce its rights arising out hereof and it shall not be necessary for any other Lender to be joined   as an additional party in any proceeding for such purpose.          Section 10.12 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.          Section 10.13 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 GIVING EFFECT TO ANY LAW, RULE,   PROVISION OR PRINCIPLE OF CONFLICTS OF LAWS THAT WOULD CAUSE THE   LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK TO BE   APPLIED.          Section 10.14 CONSENT TO JURISDICTION. PARENT AND EACH SUBSIDIARY   GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL  NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR  DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR TORT   OR OTHERWISE, AGAINST ANY AGENT, ANY LENDER OR ANY AFFILIATE OF ANY   OF THE FOREGOING, IN ANY WAY RELATING TO THIS AGREEMENT OR ANY   OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR   THERETO, IN A FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK   SITTING IN NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT   OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM   ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND   UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND   SUBJECT TO CLAUSE (E) OF THE FINAL SENTENCE OF THIS SECTION 10.14,   AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR   PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE   COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH   FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL                                         112    

 

     JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE   CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE   JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW (WITHOUT   DEROGATING FROM ANY PARTY’S RIGHT TO APPEAL ANY SUCH JUDGMENT).   NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL   AFFECT ANY RIGHT THAT ANY AGENT OR ANY LENDER MAY OTHERWISE HAVE   TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR   ANY OTHER LOAN DOCUMENT AGAINST PARENT OR ANY OF ITS PROPERTIES IN   THE COURTS OF ANY JURISDICTION. BY EXECUTING AND DELIVERING THIS   AGREEMENT, EACH LOAN PARTY, FOR ITSELF AND IN CONNECTION WITH ITS   PROPERTIES, HEREBY EXPRESSLY AND IRREVOCABLY (A) ACCEPTS GENERALLY   AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH   COURTS (OTHER THAN WITH RESPECT TO ACTIONS BY ANY AGENT IN RESPECT   OF RIGHTS UNDER ANY SECURITY DOCUMENT GOVERNED BY ANY LAWS OTHER   THAN THE LAWS OF THE STATE OF NEW YORK OR WITH RESPECT TO ANY   COLLATERAL SUBJECT THERETO); (B) WAIVES (I) JURISDICTION AND VENUE OF   COURTS IN ANY OTHER JURISDICTION IN WHICH IT MAY BE ENTITLED TO BRING   SUIT BY REASON OF ITS PRESENT OR FUTURE DOMICILE OR OTHERWISE AND   (II) ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF   ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY   REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE   APPLICABLE LOAN PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH   SECTION 10.1; (D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS   SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE LOAN   PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE  CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND  (E) AGREES THAT THE AGENTS AND THE LENDERS RETAIN THE RIGHT TO SERVE  PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING  PROCEEDINGS AGAINST ANY LOAN PARTY IN THE COURTS OF ANY OTHER  JURISDICTION IN CONNECTION WITH THE EXERCISE OF ANY RIGHTS UNDER ANY  SECURITY DOCUMENT OR THE ENFORCEMENT OF ANY JUDGMENT.         Section 10.15 Confidentiality; Platform; Borrower Materials.                 (a)   Each Agent and each Lender shall hold confidential all information   regarding Parent and its Subsidiaries and their businesses and obtained by such Agent or such   Lender in connection with or pursuant to the requirements of this Agreement or any other Loan   Document, it being understood and agreed by Parent that, in any event, the Administrative Agent   may disclose such information to the Lenders and each Agent and each Lender may make (i)   disclosures of such information to employees, directors, agents, advisors, representatives,   Affiliates or Related Funds of such Lender or Agent (it being understood that the Persons to   whom such disclosure is made will be informed of the confidential nature of such information   and to keep such information confidential), (ii) disclosures of such information in connection   with the contemplated assignment, transfer or participation of any Loans or any participations   therein or by any direct or indirect contractual counterparties (or the professional advisors  thereto) to any swap or derivative transaction relating to Parent and its obligations (it being  understood that the Persons to whom such disclosure is made will be informed of the                                         113    

 

     confidential nature of such information and agree to be bound by either the provisions of this   Section 10.15 or other provisions at least as restrictive as this Section 10.15), (iii) disclosure to   any rating agency when required by it; provided that, prior to any disclosure, such rating agency   has undertaken in writing to preserve the confidentiality of any confidential information relating   to the Loan Parties received by it from any Agent or any Lender, (iv) disclosures in connection   with the exercise of any remedies hereunder or under any other Loan Document, (v) disclosures   required or requested by any governmental agency or representative thereof or pursuant to legal   or judicial process or by any regulatory authority having or claiming authority over any Lender   (provided that unless prohibited by applicable law or court order, each Agent and each Lender   shall make commercially reasonable efforts to notify Parent of any such disclosure or request   prior to such disclosure), (vi) disclosures with the consent of Parent and (vii) disclosures of such   information to the extent such information becomes publicly available other than as a result of a   breach of this Section 10.15 or becomes available to the any Agent, any Lender or any of their   respective Affiliates on a non-confidential basis from a source other than Parent or any other   Loan Party. In addition, each Agent and each Lender may disclose the existence of this   Agreement and the information about this Agreement to market data collectors, similar service  providers to the lending industry, and service providers to the Agents and the Lenders in  connection with the administration and management of this Agreement and the other Loan  Documents.               (b)   Parent hereby acknowledges that (i) the Agents will make available to the  Lenders materials and/or information provided by or on behalf of Parent hereunder (collectively,  “Borrower Materials”) by posting the Borrower Materials on Syndtrak or another similar  electronic system (the “Platform”), and (ii) certain of the Lenders may be “public-side” Lenders  (i.e., Lenders that do not wish to receive material non-public information with respect to Parent   or its Subsidiaries or any of their respective securities) (each, a “Public Lender”). Parent hereby   agrees that (x) by marking Borrower Materials “PUBLIC,” Parent shall be deemed to have   authorized the Agents and the Lenders to treat such Borrower Materials as solely containing   information that is either (A) publicly available information or (B) not material (although it may   be sensitive and proprietary) with respect to Parent or the Subsidiaries or any of their respective   securities for purposes of United States Federal securities laws (provided, however, that such   Borrower Materials shall be treated as set forth in Section 10.15(a), to the extent such Borrower   Materials constitute information subject to the terms thereof), (y) all Borrower Materials marked   “PUBLIC” are permitted to be made available through a portion of the Platform designated   “Public Investor”; and (z) the Agents shall be entitled to treat any Borrower Materials that are   not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not   designated “Public Investor”. THE PLATFORM IS PROVIDED “AS IS” AND “AS   AVAILABLE”. THE AGENTS AND THEIR RELATED PARTIES DO NOT WARRANT   THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE   ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR   ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY   OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY   OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-  INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR   OTHER CODE DEFECTS, IS MADE BY THE AGENTS OR ANY OF THEIR RELATED   PARTIES IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.   In no event shall the Agents or their Related Parties have any liability to any Loan Party, any                                        114    

 

     Lender or any other person for losses, claims, damages, liabilities or expenses of any kind   (whether in tort, contract or otherwise) arising out of any Loan Party’s or the Agents’   transmission of Borrower Materials or notices through the Platform, any other electronic   platform or electronic messaging service, or through the Internet, except to the extent such   losses, claims, damages, liabilities or expenses are found in a final non-appealable judgment by a   court of competent jurisdiction to have resulted from the gross negligence or willful misconduct   of the Agents or any of their Related Parties.           Section 10.16 Usury Savings Clause. Notwithstanding any other provision herein, the   aggregate interest rate charged with respect to any of the Obligations, including all charges or   fees in connection therewith deemed in the nature of interest under applicable law, shall not   exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the   preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the   outstanding amount of the Loans made hereunder shall bear interest at the Highest Lawful Rate   until the total amount of interest due hereunder equals the amount of interest which would have   been due hereunder if the stated rates of interest set forth in this Agreement had at all times been   in effect. In addition, if when the Loans made hereunder are repaid in full the total interest due   hereunder (taking into account the increase provided for above) is less than the total amount of   interest which would have been due hereunder if the stated rates of interest set forth in this   Agreement had at all times been in effect, then to the extent permitted by law, Parent shall pay to   the Administrative Agent an amount equal to the difference between the amount of interest paid   and the amount of interest which would have been paid if the Highest Lawful Rate had at all   times been in effect. Notwithstanding the foregoing, it is the intention of Lenders and Parent to   conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges,   or receives any consideration which constitutes interest in excess of the Highest Lawful Rate,   then any such excess shall be cancelled automatically and, if previously paid, shall at such   Lender’s option be applied to the outstanding amount of the Loans made hereunder or be   refunded to Parent.          Section 10.17 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. Delivery of an   executed counterpart of a signature page to this Agreement by facsimile or other electronic  transmission will be effective as delivery of a manually executed counterpart thereof.         Section 10.18 Effectiveness; Entire Agreement; No Third Party Beneficiaries. This   Agreement shall become effective upon the occurrence of the Effective Date. This Agreement   and the other Loan Documents represent the entire agreement of Parent and its Subsidiaries, the   Agents and the Lenders with respect to the subject matter hereof and thereof, and there are no   promises, undertakings, representations or warranties by any Agent or Lender relative to the   subject matter hereof or thereof not expressly set forth or referred to herein or in the other Loan   Documents. Nothing in this Agreement or in the other Loan Documents, express or implied, is   intended to confer upon any Person (other than the parties hereto and thereto, their respective  successors and assigns permitted hereunder and, to the extent expressly contemplated hereby, the  Indemnitees) any rights, remedies, obligations or liabilities under or by reason of this Agreement  or the other Loan Documents.                                         115    

 

           Section 10.19 PATRIOT Act. Each Lender and the Administrative Agent (for itself and   not on behalf of any Lender) hereby notifies each Loan Party that pursuant to the requirements of   the PATRIOT Act, it is required to obtain, verify and record information that identifies each   Loan Party, which information includes the name and address of each Loan Party and other   information that shall allow such Lender or the Administrative Agent, as applicable, to identify   such Loan Party in accordance with the PATRIOT Act.          Section 10.20 Electronic Execution of Loan Documents. The words “execution,”   “signed,” “signature,” and words of like import in this Agreement, any other Loan Document   and any Assignment Agreement shall be deemed to include electronic signatures or electronic  records, each of which shall be of the same legal effect, validity or enforceability as a manually  executed signature or the use of a paper-based recordkeeping system, as the case may be, to the  extent and as provided for in any applicable law, including the Federal Electronic Signatures in  Global and National Commerce Act, the New York State Electronic Signatures and Records Act,  or any other similar state laws based on the Uniform Electronic Transactions Act.         Section 10.21 No Fiduciary Duty. Each Agent, each Lender and their Affiliates   (collectively, solely for purposes of this Section 10.21, the “Lenders”) may have economic   interests that conflict with those of Parent. Parent agrees that nothing in the Loan Documents or   otherwise shall be deemed to create an advisory, fiduciary or agency relationship or fiduciary or   other implied duty between the Lenders and Parent, its stockholders or its affiliates. The Loan   Parties acknowledge and agree that (i) the transactions contemplated by the Loan Documents are   arm’s-length commercial transactions between the Lenders, on the one hand, and Parent, on the   other, (ii) in connection therewith and with the process leading to such transaction each of the   Lenders is acting solely as a principal and not the agent or fiduciary of Parent, its management,   stockholders, creditors or any other person, (iii) no Lender has assumed an advisory or fiduciary   responsibility in favor of Parent with respect to the transactions contemplated hereby or the   process leading thereto (irrespective of whether any Lender or any of its affiliates has advised or   is currently advising Parent on other matters) or any other obligation to Parent except the   obligations expressly set forth in the Loan Documents and (iv) Parent has consulted its own legal   and financial advisors to the extent it deemed appropriate. Parent further acknowledges and   agrees that it is responsible for making its own independent judgment with respect to such   transactions and the process leading thereto. Parent agrees that it shall not claim that any Lender   has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to   Parent, in connection with such transaction or the process leading thereto, and agrees to waive   any claims for breach of any alleged fiduciary duty by any Lender.          Section 10.22 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO   HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY   CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER   ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS BETWEEN THEM   RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE   LENDER/PARENT RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF   THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL   DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE   SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT   CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND                                         116    

 

     STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS   WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS   RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN   ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY  ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO  FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER   WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY   WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL   COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE   MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL   WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.22 AND   EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER WILL APPLY   TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR   MODIFICATIONS HERETO OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY   OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE   HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS   A WRITTEN CONSENT TO A TRIAL BY THE COURT.          Section 10.23 Acknowledgement and Consent to Bail-In of Affected Financial   Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other   agreement, arrangement or understanding among any such parties, each party hereto   acknowledges that any liability of any Affected Financial Institution arising under any Loan  Document, to the extent such liability is unsecured, may be subject to the write-down and  conversion powers of the applicable Resolution Authority and agrees and consents to, and  acknowledges and agrees to be bound by:               (a)   the application of any Write-Down and Conversion Powers by the  applicable Resolution Authority to any such liabilities arising hereunder which may be payable  to it by any party hereto that is an Affected Financial Institution; and               (b)   the effects of any Bail-In Action on any such liability, including, if  applicable:                    (i)    a reduction in full or in part or cancellation of any such liability;                   (ii)    a conversion of all, or a portion of, such liability into shares or        other instruments of ownership in such Affected Financial Institution, its parent        undertaking, or a bridge institution that may be issued to it or otherwise conferred on it,        and that such shares or other instruments of ownership will be accepted by it in lieu of        any rights with respect to any such liability under this Agreement or any other Loan        Document; or                  (iii)    the variation of the terms of such liability in connection with the        exercise of the write-down and conversion powers of the applicable Resolution        Authority.                                          117    

 

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         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly  executed and delivered by their respective officers thereunto duly authorized as of the date first  written above.                                             NEW RESIDENTIAL INVESTMENT                                            CORP., as Parent and the Borrower                                             By:      /s/ Nicola Santoro, Jr,                                                 Name:  Nicola Santoro, Jr.                                               Title:   Chief Financial Officer                                             MSR WAC LLC, as a Subsidiary Guarantor                                             By:      /s/ Nicola Santoro, Jr.                                                 Name:  Nicola Santoro, Jr.                                               Title:   Chief Financial Officer                                             NRZ RESIDENTIAL MORTGAGE LLC, as                                           a Subsidiary Guarantor                                            By:       /s/ Nicola Santoro, Jr.                                                 Name:  Nicola Santoro, Jr.                                               Title:   Chief Financial Officer and                                               Chief Operating Officer                                             NRZ ADVANCES HOLDCO LLC, as a                                            Subsidiary Guarantor                                             By:      /s/ Nicola Santoro, Jr.                                                Name:  Nicola Santoro, Jr.                                               Title:   Chief Financial Officer                                             NRZ CONSUMER 2016-1 LLC, as a                                            Subsidiary Guarantor                                             By:      /s/ Nicola Santoro, Jr.                                                Name:  Nicola Santoro, Jr.                                               Title:   Chief Financial Officer              [Signature Page to Senior Secured Term Loan Facility Agreement]   

 

                                               NRZ COVIUS HOLDINGS 1 LLC, as a                                Subsidiary Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                 NRZ COVIUS HOLDINGS 2 LLC, as a                                Subsidiary Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                 NRZ COVIUS HOLDINGS 3 LLC, as a                                Subsidiary Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                 NRZ MBN ISSUER HOLDINGS LLC, as a                                Subsidiary Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                   NRZ MORTGAGE HOLDINGS LLC, as a                                Subsidiary Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                                     [Signature Page to Senior Secured Term Loan Facility Agreement]                

 

                                              NRZ PRO I LLC, as a Subsidiary Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                 NRZ PRO II LLC, as a Subsidiary                                Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                 NRZ PRO III LLC, as a Subsidiary                                Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                   NRZ RA HOLDINGS LLC, as a Subsidiary                                Guarantor                                 By:      /s/ Nicola Santoro, Jr.                                    Name:  Nicola Santoro, Jr.                                   Title:   Chief Financial Officer                                                    [Signature Page to Senior Secured Term Loan Facility Agreement]                

 

                                              CORTLAND CAPITAL MARKET                                SERVICES LLC, as Administrative Agent                                and Collateral Agent                                 By:      /s/ Emily Ergang Pappas                                    Name:  Emily Ergang Pappas                                   Title:   Head of Legal                                     [Signature Page to Senior Secured Term Loan Facility Agreement]                

 

   CANYON FINANCE (CAYMAN) LIMITED  THE CANYON VALUE REALIZATION MASTER FUND-X, L.P.  CANYON VALUE REALIZATION FUND, L.P.  CBFVEST HOLDINGS LTD.  GRFVEST HOLDINGS LTD.  CANYON IC CREDIT MASTER FUND L.P.  CANYON DISTRESSED OPPORTUNITY MASTER FUND III, L.P.  CANYON NZ-DOF INVESTING, L.P.  CANYON DISTRESSED TX (A) LLC  CANYON DISTRESSED TX (B) LLC  CANYON-EDOF (MASTER) L.P.  EP CANYON LTD.     By: Canyon Capital Advisors LLC,     the Investment Advisor to each of the above-listed funds     By:       /s/ Jonathan M. Kaplan         Name:  Jonathan M. Kaplan        Title:    Authorized Signatory      CANYON BLUE CREDIT INVESTMENT FUND, L.P.   By: Canyon Capital Advisors LLC,     its Co-Investment Advisor      By:       /s/ Jonathan M. Kaplan         Name:  Jonathan M. Kaplan        Title:    Authorized Signatory     By: Canyon Partners Real Estate LLC,     its Co-Investment Advisor      By:       /s/ Jonathan M. Kaplan         Name:  Jonathan M. Kaplan        Title:    Authorized Signatory                         [Signature Page to Senior Secured Term Loan Facility Agreement]

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