Document:

Exhibit 10.2

 

EXECUTION
VERSION

 

AMENDMENT NO. 6

TO MASTER REPURCHASE AGREEMENT

 

This
Amendment No. 6 to the Master Repurchase Agreement, dated as of ____June_ 21, 2021 (this “Amendment”),
is by and among Angel Oak Mortgage, Inc. (“AOMI Seller” or a “Seller”), Angel Oak Mortgage
Fund TRS (“AOMF Seller” or a “Seller”; and together with AOMI Seller, the “Sellers”),
and Nomura Corporate Funding Americas, LLC (the “Buyer”).

 

RECITALS

 

The Buyer and the Sellers are
parties to that certain Master Repurchase Agreement, dated as of December 6, 2018 (as amended by that certain Amendment No. 1
to the Master Repurchase Agreement, dated as of April 3, 2019, that certain Amendment No. 2 to the Master Repurchase Agreement,
dated as of June 24, 2019, that certain Amendment No. 3 to the Master Repurchase Agreement, dated as of October 29, 2019,
that certain Amendment No. 4 to the Master Repurchase Agreement, dated as of July 21, 2020 and that certain Amendment No. 5
to the Master Repurchase Agreement, dated as of December 4, 2020 the “Existing Repurchase Agreement”; as amended
by this Amendment and as may be further amended, restated, supplemented and otherwise modified from time to time, the “Master
Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the
Existing Repurchase Agreement.

 

The Buyer and the Sellers have
agreed, subject to the terms and conditions of this Amendment, that the Existing Repurchase Agreement be amended to reflect certain agreed
upon changes.

 

Accordingly, the Buyer and
the Sellers hereby agree, in consideration of the mutual promises and mutual obligations set forth herein, that the Existing Repurchase
Agreement is hereby amended as follows:

 

Section 1.   Amendments.
The Existing Repurchase Agreement is hereby amended as follows:

 

1.1.     The
definitions of “Change in Control”, “Financial Statements” and “Holdback Trigger Event”
in Section 2 of the Existing Repurchase Agreement are each hereby amended by deleting the applicable definition in its entirety
and replacing it with the following, each in the appropriate alphabetical order:

 

“Change
in Control” shall mean:

 

(i)      any
transaction or event as a result of which AOMI Seller ceases to directly own one hundred percent (100%) of AOMF Seller;

 

(ii)      the
sale, transfer, or other disposition of all or substantially all of either Seller’s assets (excluding any such action taken in
connection with any Capital Markets Rights transaction);

 

(iii)      Angel
Oak Capital Advisors, LLC ceases to be the primary active manager of any Seller; or

 

    1

     

    

(iv)      the
consummation of a merger or consolidation of any Seller with or into another entity or any other corporate reorganization (in one transaction
or in a series of transactions), if more than fifty-one percent (51%) of the combined voting power of the continuing or surviving entity’s
Capital Stock outstanding immediately after such merger, consolidation or such other reorganization is owned by persons who were not
owners of any Seller immediately prior to such merger, consolidation or other reorganization.

 

“Financial
Statements” shall mean the consolidated financial statements of AOMI Seller prepared in accordance with GAAP for the year or
other period then ended. Such financial statements will be audited, in the case of annual statements, by a nationally recognized independent
certified public accounting firm.

 

Holdback
Trigger Event” shall mean, as of any date of determination, (i) AOMI Seller’s Net Asset Value (as such term
is defined in the Pricing Side Letter) is less than the Holdback Net Asset Value Threshold or (ii) (x) the aggregate Repurchase
Price of the RTL Mortgage Loans or CRE Bridge Mortgage Loans exceeds the Holdback Repurchase Trigger Amount and (y) the aggregate
Holdback Amount is greater than the Holdback UPB Trigger Amount.

 

1.2.      The
definitions of “Guarantor” and “Guaranty” in the Existing Repurchase Agreement are each hereby
deleted in each of their entirety, and all references to such terms shall be inapplicable, but solely to the extent of such terms and
the related obligations of the Guarantor. For the avoidance of doubt, all obligations of each Seller shall remain in full force and effect,
except as specifically amended hereby.

 

1.3.      The
representation and warranty set forth in Section 13(a)(vii) of the Existing Repurchase Agreement is hereby deleted in its entirety
and replaced with the following:

 

(vii)      Financial
Statements. AOMI Seller has heretofore furnished to Buyer a copy of its consolidated balance sheet and the consolidated balance sheets
of its consolidated Subsidiaries for the fiscal year ended December 31, 2020 and the calendar quarter ended March 31, 2021,
and the related consolidated statements of income and retained earnings and of cash flows for AOMI Seller and its consolidated Subsidiaries
for such fiscal year, setting forth in each case in comparative form the figures for the previous year, with the opinion thereon of a
nationally recognized accounting firm. All such financial statements are complete and correct and fairly present, in all material respects,
the consolidated financial condition of AOMI Seller and its Subsidiaries and the consolidated results of their operations as at such
dates and for such monthly periods, all in accordance with GAAP applied on a consistent basis. Since March 31, 2021, there has been
no material adverse change in the consolidated business, operations or financial condition of AOMI Seller and its consolidated Subsidiaries
taken as a whole from that set forth in said financial statements nor is AOMI Seller aware of any state of facts which (without notice
or the lapse of time) would or could result in any such material adverse change or could have a Material Adverse Effect. AOMI Seller
has, on March 31, 2021, no liabilities, direct or indirect, fixed or contingent, matured or unmatured, known or unknown, or liabilities
for taxes, long-term leases or unusual forward or long-term commitments not disclosed by, or reserved against in, said balance sheet
and related statements, and at the present time there are no material unrealized or anticipated losses from any loans, advances or other
commitments of AOMI Seller except as heretofore disclosed to Buyer in writing.

 

    2

     

    

1.4.        The
representation and warranty set forth in Section 13(a)(xvi) of the Existing Repurchase Agreement is hereby deleted in its entirety
and replaced with the following:

 

(xvi)      Litigation.
There are no actions, suits, arbitrations, investigations (including, without limitation, any of the foregoing which are pending or threatened)
or other legal or arbitrable proceedings affecting either Seller or any of their Subsidiaries or affecting any of the Property of any
of them before any federal or state court or before any Governmental Authority that (i) questions or challenges the validity or
enforceability of any of the Facility Documents or any action to be taken in connection with the transactions contemplated hereby, (ii) makes
a claim in an aggregate amount greater than Five Hundred Thousand Dollars ($500,000), (iii) which, individually or in the aggregate,
if not cured or if adversely determined, could be reasonably likely to have a Material Adverse Effect or constitute an Event of Default,
or (iv) relates to any violation of the Home Ownership and Equity Protection Act or any state, city or district high cost home mortgage
or predatory lending law.

 

1.5.        The
covenant set forth in Section 14(d) of the Existing Repurchase Agreement is hereby deleted in its entirety and replaced with
the following:

 

		(d)	Financial
                                            Reporting. Each Seller shall maintain a system of accounting established and administered
                                            in accordance with GAAP, and each Seller shall furnish to Buyer in connection with clauses
                                            (i) - (iv) below, via email to nomuracovenants@nomura.com, in a format reasonably
                                            acceptable to Buyer:

 

(i)      Within
ninety (90) days after the last day of its fiscal year, each Seller’s unaudited balance sheet as of the end of such fiscal year,
in each case presented fairly in accordance with GAAP;

 

(ii)      Within
sixty (60) days after the last day of each of the first three (3) fiscal quarters of each fiscal year of each Seller, each of the
Sellers’ management certified Financial Statements, including a balance sheet, income statement and cash flow statement, each as
of the end of such fiscal quarter and in each case presented fairly in accordance with GAAP;

 

    3

     

    

(iii)      Within
one-hundred and twenty (120) days after the last day of its fiscal year, commencing with the 2021 fiscal year, each of the Sellers’
Financial Statements for such fiscal year, presented fairly in accordance with GAAP, and accompanied, in all cases, by an unqualified
report of a nationally recognized accounting firm;

 

(iv)      (A) Simultaneously
with the furnishing of each of the financial statements to be delivered pursuant to subsection (i)-(iii) above, a certificate of
each Seller in form and substance acceptable to Buyer in its reasonable discretion, and certified by an executive officer of the respective
Seller, and (B) quarterly, or simultaneously with the financial statements to be delivered pursuant to subsection (ii) above,
an officer’s certificate of covenant compliance of each Seller certifying that the related Financial Statements are true and correct
in all material respects;

 

(v)      Within
fifteen (15) days after the end of each calendar month, a monthly servicing report of the related Servicer or Subservicer, in form and
substance reasonably acceptable to Buyer;

 

(vi)      Two
(2) Business Days prior to each Remittance Date, a monthly remittance report of the related Servicer or Subservicer, in form and
substance reasonably acceptable to the Buyer;

 

(vii)      Within
five (5) days after any material amendment, modification or supplement has been entered into with respect to the related Subservicing
Agreement, a fully executed copy thereof, certified by the Seller;

 

(viii)      Within
fifteen (15) days after the end of each calendar month, a monthly report listing Mortgage Loans held for each Seller that are not Purchased
Assets;

 

(ix)      Any
other material agreements, correspondence, documents or other information not included in an Underwriting Package which is related to
either Seller or the Purchased Assets, as soon as possible after the discovery thereof by either Seller;

 

(x)      Promptly,
from time to time, such other information regarding the business affairs, operations and financial condition of each Seller and their
Subsidiaries as Buyer may reasonably request;

 

(xi)      Within
two (2) days after each sale of a Purchased Asset, a copy of the related purchase confirmation (which indicates the Purchased Asset
sold, the date sold, the name of the purchaser and the purchaser price); and

 

(xii)      Access
to the related Servicer’s or Subservicer’s online loan data site containing sale data, data tapes and other reports maintained
by the related Servicer or Subservicer in accordance with the related Servicing Agreement or Subservicing Agreement.

 

(xiii)      Within
fifteen (15) days after the end of each calendar month, a monthly report listing such month’s Delinquency Percentage and Repurchase
Percentage (as each term is defined in the related MSR Purchase Agreement);

 

    4

     

    

1.6.  
      The covenant set forth in Section 14(k) of the Existing
Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

 

(k)      Financial
Condition Covenants. AOMI Seller shall comply with the Financial Condition Covenants set forth in the Pricing Side Letter.

 

1.7.   
     The covenant set forth in Section 14(w) of the Existing
Repurchase Agreement is hereby deleted in its entirety and replaced with the following:

 

(w)      Reserved.

 

1.8.     The
Event of Default set forth in Section 15(s) of the Existing Repurchase Agreement is hereby deleted in its entirety and replaced
with the following:

 

(s)      Financial
Statements. AOMI Seller’s audited annual financial statements or the notes thereto or other opinions or conclusions stated
therein are qualified or limited by reference to the status of any Seller as a “going concern” or a reference of similar
import; or

 

Section 2.   Conditions
Precedent. This Amendment shall become effective as of the date hereof subject to Buyer’s receipt of (i) this Amendment
and (ii) Amendment No. 5 to Pricing Side Letter, dated as of the date hereof, each executed and delivered by Sellers and Buyer
and such other documents as Buyer may reasonably request.

 

Section 3.   Limited
Effect. Except as expressly amended and modified by this Amendment, the Existing Repurchase Agreement shall continue to be, and shall
remain, in full force and effect in accordance with its terms.

 

Section 4.   Counterparts.
This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original
and all of which taken together shall constitute one and the same instrument. Counterparts may be delivered electronically. Facsimile,
documents executed, scanned and transmitted electronically and electronic signatures shall be deemed original signatures for purposes
of this Amendment and all matters related thereto, with such facsimile, scanned and electronic signatures having the same legal effect
as original signatures. The parties agree that this Amendment, any addendum or amendment hereto or any other document necessary for the
consummation of the transaction contemplated by this Amendment may be accepted, executed or agreed to through the use of an electronic
signature in accordance with the Electronic Signatures In Global and National Commerce Act, Title 15, United States Code, Sections 7001
et seq., the Uniform Electronic Transaction Act and any applicable state law. Any document accepted, executed or agreed to in conformity
with such laws will be binding on all parties hereto to the same extent as if it were physically executed and each party hereby consents
to the use of any secure third party electronic signature capture service providers, as long as such service providers use system logs
and audit trails that establish a temporal and process link between the presentation of identity documents and the electronic signing,
together with identifying information that can be used to verify the electronic signature and its attribution to the signer’s identity
and evidence of the signer’s agreement to conduct the transaction electronically and of the signer’s execution of each electronic
signature.

 

    5

     

    

Section 5.   Severability.
Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall
be enforceable notwithstanding the unenforceability of any such other provision or agreement.

 

Section 6.   Governing
Law AND WAIVER OF JURY TRIAL. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF, OTHER THAN SECTION 5-1401 AND 5-1402
OF THE NEW YORK GENERAL OBLIGATIONS LAW, WHICH SHALL GOVERN, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. THE PARTIES HERETO WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT.

 

[SIGNATURE PAGES FOLLOW]

 

    6

     

    

IN WITNESS WHEREOF, the parties
have caused their name to be duly signed to this Amendment by their respective officers thereunto duly authorized, all as of the date
first above written.

 

	 	BUYER :
	 
	 	NOMURA CORPORATE FUNDING AMERICAS, LLC
	 
	 	By:	/s/ Jack Kattan
	 	Name: Jack Kattan
 Title: Managing Director

 

[Amendment 6 to  Master Repurchase Agreement
(Nomura-AO (P2P))]

 

    

     

    

	 	AOMI SELLER:
	 
	 	ANGEL OAK MORTGAGE, INC.
	 
	 	By:	/s/ Brandon Filson
	 	Name: Brandon Filson

Title: Chief Financial Officer
	 
	 	AOMF SELLER:
	 
	 	ANGEL OAK MORTGAGE FUND TRS,
	 
	 	By: Angel Oak Capital Advisors, LLC, not in its individual capacity but solely as the Administrator
	 
	 	By:	/s/ Dory Black
	 	Name: Dory Black

Title: General Counsel

 

[Amendment 6 to  Master Repurchase Agreement
(Nomura-AO (P2P))]Exhibit 10.3

 

AMENDED AND RESTATED VARIABLE TERMS LETTER

(Master Repurchase Agreement)

 

Date: June 21, 2021

 

Angel Oak Mortgage, Inc.

Angel Oak Mortgage Fund TRS

3344 Peachtree Road NE, Suite 1725

Atlanta, GA 30326

 

Re:     Master
Repurchase Agreement

 

Ladies and Gentlemen:

 

This
Amended and Restated Variable Terms Letter amends and restates that certain Variable Terms Letter dated as of March 23, 2021 and
constitutes the Variable Terms Letter referred to in, and is a supplement to, that certain Master Repurchase Agreement (as amended, extended
or otherwise modified, supplemented or replaced from time to time, the "Agreement") dated as of December 21, 2018 by and
among Angel Oak Mortgage, Inc. (“Seller 1”) and Angel Oak Mortgage Fund TRS (“Seller 2” and together
with Seller 1, each individually and collectively referred to herein as the “Seller”) and Banc of California, National Association
("Buyer") and will confirm certain terms and conditions of the purchase and sale arrangements between Seller and Buyer set forth
therein. Capitalized terms are used herein (including in any exhibits and schedules hereto), unless otherwise defined herein, with the
same meanings as in the Agreement.

 

	Seller:	
    Angel Oak Mortgage, Inc.

    Angel Oak Mortgage Fund TRS

	 	 
	Aggregate Purchase Price Limit:	$50,000,000.00 as such amount may be temporarily increased from time to time by Buyer in its sole and absolute discretion
	 	 
	Purchase Contract Date: 	December 21, 2018
	 	 
	Purchase Contract Expiration Date:	March 16, 2022 
	 	 
	
    Guarantor:

     

    Targeted Repurchase Date:
	
    Shall mean Seller 1

     

    For Eligible Non-QM Loans and Eligible Multi Family
    Mortgage Loans: three hundred and sixty four (364) days following the Purchase Date.

     

    For Eligible Commercial Mortgage Loans: one hundred
    and twenty (120) days following the Purchase Date for loans that have not been underwritten and approved by Banc prior to submission for
    funding, and three hundred and sixty four (364) days following the Purchase Date for loans that have been underwritten and approved by
    Banc prior to submission for funding.

     

    The Targeted Repurchase date shall not be advanced
    on any Purchased Mortgage Loans if the facility is not renewed on the Purchase Contract Expiration Date.

     

 

    -1- 

     

    

 

	Pricing Rate:	
    For Eligible Non-QM Loans: Day 1-364, the
greater of 3.50 % or One Month LIBOR Rate1 plus 2.50%; over 364 days, plus the Seasoned Spread.

     

    For Eligible Multi Family Mortgage Loans, Day
    1-364: the greater of 4.00% or One Month LIBOR plus 3.00%; Over 364 days: the Seasoned Spread;

     

    For Eligible Commercial Mortgage Loans, Day 1-364:
    the greater of 4.125% or One Month LIBOR plus 3.125%; Over 364 days: the Seasoned Spread;

     

    After the expiration of the Permissible Wet Mortgage
    Loan Document Delivery Period, the interest rate will increase to the Seasoned Spread until the Mortgage Loan Documents for such Mortgage
    Loan have been received by the Buyer.

     

	Index Cessation:	Please see Exhibit 1 attached hereto which is incorporated herein by reference in its entirety.

                                                      

	
    Seasoned Spread:

    Principal Curtailment Payment:

     

     
	
    One percent (1.00%) over the Pricing Rate

    On the day after the Targeted Repurchase Date
    , an amount equal to one hundred percent (100%) of the remaining unpaid Purchase Price for such Purchased Repo Assets not repurchased.

     

	
    Interest and/or Principal Payments (the “Payment
    Date”):

     

     

    Purchase Request

    Delivery Deadline:
	
    Shall be paid on the twenty third (23rd)
    calendar day of each month; provided, that if such day is not a Business Day, on the next Business Day.

     

    No later than 1:00 p.m. (Pacific Standard
Time) on the proposed Purchase Date for the related Transaction.

 

 

1       One
Month LIBOR rate as published in Bloomberg or, upon cessation, as otherwise determined as set forth in Exhibit 1.

 

    -2- 

     

    

 

	Repurchase Request Deadline:	No later than 4:00 p.m. (Pacific Standard Time) on the Business Day preceding the proposed Repurchase Date.

                                                                  

	
    Payment Deadline:

     

     

    Allocations:

     

     

     

     

     

    Other Applicable Sublimits

     

    Wet Mortgage Loan Limit:

     

    Permissible Wet Mortgage Loan Document Delivery Period:

     
	
    All payments to be received by 2:30 p.m. (Pacific
    Standard Time) on the date such payment is due.

     

    Eligible Non-QM Loans have a sublimit of 100%

     

    Eligible Multi Family Mortgage Loans have a sublimit
    of 50%

     

    Eligible Commercial Mortgage Loans have a sublimit
    of 25%

     

    See Annex I attached hereto.

     

    $17,500,000 or 35% of the Aggregate Purchase Price
    Limit.

     

    With respect to any Wet Mortgage Loan, the third
    (3rd) Business Day after the Purchase Date for such Mortgage Loan.

     

	Maximum Original Principal Amount:	
    As permitted by Approved Seller underwriting guidelines.

     

	Maximum Loan-To-Value Ratio:	
    As permitted by Approved Seller underwriting guidelines.

     

	Minimum FICO Score of Obligor:	As permitted by Approved Seller underwriting guidelines.
	 	 
	Geographic Location of Property:	Nationwide 
	 	 
	Purchase Price:	
    For Eligible Non-QM Loans, the lesser of (i) ninety-seven
    percent (97%) of the original principal amount of the promissory note for the Mortgage Loan or (ii) ninety-seven percent (97%) of
    the amount of the Take-Out Commitment.

     

    For Eligible Multi-Family Loans, the lesser of
    (i) eighty percent (80%) of the original principal amount of the promissory note for the Mortgage Loan, or (ii) $4,000,000.00.

     

    For Eligible Commercial Industrial Loans, Eligible
    Commercial Retail Loans and Eligible Commercial Office Loans, the lesser of (i) seventy-five percent (75%) of the original principal
    amount of the promissory note for the Mortgage Loan, or (ii) $4,000,000.00.

 

    -3- 

     

    

 

	Required Fees	
    Seller hereby agrees to pay Buyer the following
    fees ("Required Fees"):

     

    1.     Non-utilization
    Fee: Commencing on the fourth month after the Purchase Contract Date, and calculated on and as of the first Business Day of the first
    calendar month following delivery of written notice by Buyer to Seller, and payable within 15 Business Days from the last Business Day
    of any calendar month in which the average daily dollar amount of the Purchase Price for Purchased Repo Assets owned by Buyer during such
    calendar month is less than fifty percent (50%) of the average daily Aggregate Purchase Price Limit during such month, a non-usage fee
    calculated as follows: one quarter percent (0.25%) per annum of the amount by which the average daily Aggregate Purchase Price Limit during
    such month exceeds the average daily dollar amount of the Purchase Price for Purchased Repo Assets owned by Buyer during such month.

     

    This Non-utilization fee is waived for
    any month in which Seller and/or its affiliates cumulatively maintain average daily deposits of $3,000,000 or more at Buyer.

     

    2.     Supplemental
    Fees. Such additional supplemental fees as set forth on Annex I attached hereto, such supplemental fees to be payable upon demand by Buyer.

	 	 
	
    Expenses

     

     

    Permitted Distributions
	
    Seller hereby agrees to pay all reasonable third
    party expenses incurred by Buyer, including outside counsel expenses.

     

    Dividend distributions are permissible so long
    as Seller 1 shall be in compliance with all covenants immediately prior to and immediately after such distributions and there shall not
    exist any Event of Default immediately before or after such distribution or repayment.

 

    -4- 

     

    

 

	
    Minimum Required

    Tangible Net Worth of Seller 1

     
	
    $40MM consolidated (with a maximum of $10MM in
    undrawn capital) At any date, $40,000,000.00

    Tangible Net Worth” shall mean with respect to a

    Person at any date, the sum of:

    (a)   The
    total assets set forth on the consolidated balance sheet of such Person, prepared in accordance with GAAP including (1) the sum of:
    (i) the par or stated value of all outstanding common stock, (iii) paid-in capital, and (iv) retained earnings; less (2) the
    sum of: (i) 50% of the value of MSRs, (ii)  goodwill, including any amounts (however designated on such balance sheet) representing
    the cost of acquisitions or Subsidiaries in excess of underlying tangible assets, together with costs allocated to the purchase or origination
    of such Person’s servicing portfolio or any part thereof, (ii) patents, trademarks, copyrights, leasehold improvements not
    recoverable at the expiration of a lease, and deferred charges (including, but not limited to unamortized debt discount and expense, and
    organizational expenses) and (iii) loans to, or investments in, affiliates, officers or employees;

    (b)   Plus
    committed and undrawn capital up to the maximum set forth above;

    Less, the total liabilities of the
    Person.

     

	Minimum Required

Liquidity of Seller 1	$5,000,000.00, unrestricted.
	 	 
	Profitability of Seller 1	
    Seller 1 must attain positive net income, determined in accordance
with GAAP, as of the last day of each calendar quarter, commencing with the quarter ending June 30, 2021, for the prior four (4) consecutive
fiscal quarters then ending, of not less than $1.00.

 

    -5- 

     

    

 

	Maximum Permitted Leverage Ratio of Seller 1	Seller 1 will not at any time permit the ratio of Seller 1’s Total Liabilities to its consolidated Tangible Net Worth to exceed 10.00:1.00.
	 	 
	Change of Control	For purposes of the Repurchase Facility Documents the term "Change of Control" shall mean if Seller 1 together shall cease to own, directly or indirectly, less than fifty percent (50%) of the outstanding capital stock or other equity interests of Seller 2 or if the holder(s) of such outstanding capital stock or other equity interests shall cease to have the power to elect the board of directors of Seller or shall cease to have the power to direct the management of Seller's day to day affairs.
	 	 
	Change of Management	For purposes of the Repurchase Facility Documents the term "Change of Management" shall mean if Brandon Filson shall, for whatever reason, cease to be actively involved in the day to day management of Seller.
	 	 
	
    Loan Conditions / Covenants

    (notwithstanding Repurchase Agreement)
	
    1.     Seller
    1 must provide a signed copy of annual Seller 1 tax returns, to be submitted within 30 days after filing, or in case of extensions (copies
    also to be provided), no later than 6 months after first filing due date or upon the reasonable request by the Buyer.

    2.     Seller
    1 must provide annual CPA audited financial statements within 120 days of fiscal year end.

    3.     Seller
    1 must provide quarterly company prepared financial statements within 45 days of quarter end.

    4.     Seller
    must provide a copy of company prepared monthly funding report within 10 Business Days following Buyer’s request therefor.

    5.     Seller
    must provide a copy of monthly loan statements from Warehouse Lenders within 10 Business Days following Buyer’s request therefor.

    6.     Seller
    1 to provide a Quarterly Compliance Certificate certifying compliance with all covenants and good standing with state and federal regulatory
    agencies.

    

 

    -6- 

     

    

 

	 	7.     Seller
to advise the Buyer of any current or pending litigation or legal action in which the potential financial liability to the Seller exceeds
$500,000.

8.     Seller
to provide notification to the Buyer of any new credit facilities obtained within 30 days of execution of the respective loan documents.

9.     Seller
is to provide Written Notification to the Buyer if there is repurchase or indemnification from any investor or investors which aggregates
to $5,000,000 or more in a calendar year beginning January 1st. Written Notification is to be provided within 15 days of Seller receiving
such notice of recourse.

10.   Cross-default
with respect to any default under the terms, conditions and covenants of any other warehouse credit facility or other indebtedness in
excess of $5,000,000 of the Seller.

11.   All net proceeds shall be routed through a designated control account
maintained at the Buyer whereby such funds shall be used to either pay down outstanding loans or disbursed to the Seller’s deposit
account at the reasonable discretion of the Buyer.

 

	Authorized Representatives	
    See Schedule A.

	 	 
	
    Statement Date

     

    Interim Date
	
    December 31, 2020

     

    

    March 31, 2021 

	 	 
	
    Addresses for Purpose

    of Notice:
	
    Seller:

    Angel Oak Mortgage, Inc.

    Angel Oak Mortgage Fund TRS

    3344 Peachtree Road NE, Suite 1725

    Atlanta, GA 30326

     

    Buyer: Banc of California, N.A.

    Warehouse Lending Division

    3 MacArthur Place

    Santa Ana, CA 92707

    Attention: Zoila Price

 

    -7- 

     

    

 

	
    Chief Place of Business:
	
    3344 Peachtree Road, NE, Suite 1725

    Atlanta, GA 30326

	 	 
	Additional Requirements:	The following additional requirements shall apply:

                                                     N/A

	 	 
	Sellers Jointly and Severally Liable:	Notwithstanding anything herein or in Repurchase Facility Documents to the contrary, Seller 1 and Seller 2 are, jointly and severally, liable with respect to any covenants, Secured Obligations or agreements made by either Seller 1 or Seller 2 pursuant to any Repurchase Facility Documents.   

 

    -8- 

     

    

 

Please indicate your agreement with the terms set forth herein by executing
and returning to Buyer the enclosed copy of this Amended Variable Terms Letter.

 

	 	Very truly yours,
	 	 
	 	Banc of California, National Association, as “Buyer”
	 	 	 
	 	By:	/s/ Zoila Price
	 	Name:	Zoila Price
	 	Title:	EVP, Managing Director, Warehouse Lending

 

ACCEPTED as of this 21st day of June, 2021

 

Angel
Oak Mortgage, Inc. as “Seller”

 

	By:	/s/
Brandon Filson	 
	Name:	Brandon
Filson	 
	Title:	Chief Financial Officer	 

 

Angel
Oak Mortgage Fund TRS as “Seller”

 

	By:	/s/
Ashish Negandhi	 
	Name:	Ashish Negandhi	 
	Title:	Vice President	 

 

	Attachments:	Exhibit 1:	Index Cessation
	 	Annex
I:	Supplemental Fees
	 	Schedule
A:	Authorized Representatives

 

    -9- 

     

    

 

Exhibit 1

 

INDEX CESSATION

 

If at any time Buyer reasonably
believes or reasonably determines that (i) the pre-replacement interest-rate index applicable to the Pricing Rate (such pre-replacement
index or replacement index, the “Index”) has been or will imminently be discontinued for any reason, (ii) the pre-replacement
Index will not adequately and fairly reflect the cost to Buyer of maintaining or funding loans based on the pre-replacement Index, (iii) the
pre-replacement Index is not widely used as a benchmark Index or is no longer an industry-accepted reference rate for similarly situated
loans to the Mortgage Loan, (iv) adequate and fair means do not exist for Buyer to ascertain the pre-replacement Index or the pre-replacement
Index is no longer being published by a reliable source reasonably available to and used by Buyer, (v) regulatory changes (meaning
a change in any applicable law, treaty, rule, regulation or guideline, or the interpretation or administration thereof, by the administrator
of the relevant benchmark or its regulatory supervisor, any governmental authority, central bank or other fiscal, monetary or other authority
having jurisdiction over Buyer or its lending office) make it unlawful or commercially unreasonable for the Buyer to use the pre-replacement
Index as the Index for purposes of determining the interest rate or (vi) the administrator of the pre-replacement Index or a governmental
authority having jurisdiction over Buyer has made a public statement identifying a specific date after which the pre-replacement Index
shall no longer be used for determining interest rates for loans, then Buyer shall use reasonable efforts to select a replacement Index
that Buyer in good faith believes is a practical means of preserving the parties’ intent relative to the economics of the pre-replacement
Index.

 

In the event that Buyer determines
a replacement Index, which determination shall be conclusive, in order to account for the relationship of the replacement Index to the
pre-replacement Index, Buyer shall also determine, which determination shall be conclusive, any change necessary to the percentage points
(“Margin”) to be added or subtracted to the replacement Index necessary to ensure that the replacement method will measure
interest rates in a manner similar to the pre-replacement Index, and for the avoidance of doubt, any such change to the Margin shall not
reduce the interest rate in effect as of the date of such Index replacement.

 

In selecting such replacement
Index and Margin, Buyer may give due consideration to (i) the recommendation of a replacement Index or Margin adjustment, or method
of calculating or determining such replacement Index or Margin by the regulatory entities with jurisdiction over Buyer or a committee
officially endorsed or convened by the regulatory entities, (ii) any evolving or industry-accepted means for determining an Index
and Margin, or method of calculating or determining such Index and Margin, for the replacement of the Index and Margin with the replacement
Index and Margin, (iii) the then prevailing market convention for determining an Index rate of interest for commercial loans that
are comparable to Buyer’s commercial loans at that time, and (iv) a similar rate Index from other sources deemed to be reasonably
reliable by and available to Buyer.

 

To the extent a replacement
Index and Margin are so designated, the replacement Index and Margin shall be applied in a manner consistent with market practice; and,
to the extent such market practice is not administratively feasible for Buyer, such replacement Index and Margin shall be applied in a
manner as otherwise reasonably determined by Buyer.

 

    -10- 

     

    

 

Reasonably promptly after
such determination by Buyer, Buyer may, by notice to Seller, amend the Pricing Rate (without the need for any action or consent by Seller)
(i) to replace the Index with the replacement Index selected, (ii) amend the Margin to be added to the Index, and (iii) state
the date upon which the replacement Index and Margin shall be effective. Upon the operative date, the replacement Index and Margin shall
then be deemed the Index and Margin for all purposes of this Pricing Rate. To the extent practicable, the interest rate based on the replacement
Index plus or subtract the Margin, as it may be adjusted, will be substantially equivalent to the interest rate plus or subtract the Margin
previously in effect as of the date of the replacement of the Index and Margin.

 

Seller understands that Buyer
may make loans to other sellers based on other rates as well. A different replacement Index and Margin may be selected for different types
of loans and transactions. Seller acknowledges that the discontinuation of pre-replacement Index is a future event over which neither
Bank nor Seller has influence but which will necessarily affect such Index and Margin. Seller acknowledges that the interest rate resulting
from replacement Index and Margin will differ from pre-replacement Index and Margin.

 

Seller agrees that Buyer shall
not be liable in any manner for its selection and implementation of a replacement Index and Margin, provided that Buyer makes such selection
in good faith and implementation consistent with market practice, or if not feasible, as reasonably determined by Buyer.

 

The replacement Index and
Margin shall remain in effect from the effective date set forth in such notice until the maturity date, unless such an instance occurs
where the replacement Index is no longer available, then the same process described in this section shall apply.

 

    -11- 

     

    

 

Annex I

 

SCHEDULE OF SUPPLEMENTAL FEES

 

Administrative Costs:

 

All usual and customary cost and expense incurred
by the Buyer, in connection with processing, administering and settling of mortgage loans, currently including, without limitation:

 

		1.	Processing Fee $75.00 on each file.

 

    -12- 

     

    

 

Schedule A

 

AUTHORIZED REPRESENTATIVES

 

The
following individuals are authorized by Seller to request funding from Banc of California, National Association on behalf of Angel
Oak Mortgage, Inc. and Angel Oak Mortgage Fund TRS:

 

 

 

 

 

 

 

 

 

 

The
following individuals are authorized by Angel Oak Mortgage, Inc. to request withdrawals and deposits of monies from Banc of California,
National Association accounts on behalf of Angel Oak Mortgage, Inc. and Angel Oak Mortgage Fund TRS

 

 

 

 

 

 

 

 

 

    -13-

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