Document:

exv10w52

EXHIBIT
10.52

     

      

FORM OF

SEVENTH MODIFICATION AGREEMENT

(Loan Agreement)

     This Seventh Modification Agreement
(the “Modification Agreement”), dated as of                , for reference purposes only, is made by and between GREENHILL & CO., INC., a Delaware
corporation (“Borrower”), and FIRST REPUBLIC BANK, a Division of Bank of America, N.A.
(“Lender”), with reference to the following facts:

     A. Lender has previously entered into a Loan Agreement (“Loan Agreement”) dated as of January
31, 2006, pursuant to which Lender has provided to Borrower a revolving line of credit loan
(“Loan”) in the current principal amount of Ninety Million and 00/100 Dollars ($90,000,000.00).

     B. The Loan Agreement was amended pursuant to the terms of:

          1. that certain First Modification Agreement dated as of August 1, 2006;

          2. that certain Second Modification Agreement dated as of March 14, 2007;

          3. that certain Third Modification Agreement dated as of May 2, 2007;

          4. that certain Fourth Modification Agreement dated December 13, 2007;

          5. that certain Fifth Modification Agreement dated December 18, 2008; and

          6. that certain Sixth Modification Agreement dated December 22, 2009.

     C. In connection with the Loan Agreement, Borrower has executed one original note and four
amended and restated notes as set forth below, the most current note is referred to as the
“Existing Note”. The Existing Note supersedes and replaces the prior notes set forth below.

          1. that certain Promissory Note dated January 31, 2006 executed by Borrower payable to Lender
in the original principal sum of $20,000,000.00.

          2. that certain Amended and Restated Promissory Note dated March 14, 2007 executed by Borrower
payable to Lender in the original principal sum of $50,000,000.00.

          3. that certain Amended and Restated Promissory Note dated May 2, 2007 executed by
Borrower payable to Lender in the original principal sum of $75,000,000.00.

          4. that certain Amended and Restated Promissory Note dated December 13, 2007 executed by
Borrower payable to Lender in the original principal sum of $90,000,000.00.

          5. that certain Amended and Restated Promissory Note dated December 18, 2008 executed by
Borrower payable to Lender in the original principal sum of $90,000,000.00.

     D. The Loan Agreement and the Existing Note are secured by the terms of:

          1. a Third-Party Security Agreement dated May 2, 2007, executed by Greenhill
Capital Partners, LLC which was later replaced by an Amended and Restated Third-Party Security

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Agreement dated as of December 22, 2009, executed by Greenhill Capital Partners, LLC (“Greenhill
Capital Security Agreement”);

          2. a Third-Party Security Agreement dated December 13, 2007, executed by Greenhill Venture
Partners, LLC which was later replaced by an Amended and Restated Third-Party Security Agreement
dated December 22, 2009, executed by Greenhill Venture Partners LLC (“Greenhill Ventures Security
Agreement”); and

          3. a Third-Party Security Agreement dated December 22, 2009, executed by Greenhill Capital
Partners II LLC (“Greenhill Capital II Security Agreement”). (The Greenhill Capital Security
Agreement, the Greenhill Ventures Security Agreement and the Greenhill Capital II Security
Agreement are collectively referred to as the “Security Agreements.”)

     E. The Loan Agreement, the Existing Note and the Security Agreements are referred to
collectively as the “Existing Loan Documents.” The Existing Note and any Amended and Restated Note
to be executed and delivered as provided below are referred to collectively as the “Note.” The
Existing Loan Documents and all documents to be executed and delivered as provided below,
including the Note, are referred to collectively as the “Loan Documents.” Capitalized terms which
are not defined herein shall have the meanings provided in the Loan Agreement or the other Loan
Documents or, if not defined therein, in the California Commercial Code.

     NOW THEREFORE, for valuable consideration the receipt and adequacy of which is hereby
acknowledged, Lender and Borrower agree as follows.

     1. Adoption of Recitals. The recitals set forth above are adopted as a part of the
agreement of the parties, and the facts set forth therein are acknowledged and agreed to be true,
accurate and complete.

     2. Acknowledgment of Loan Documents. Borrower hereby acknowledges and agrees that as
of the date of this Modification Agreement the Loan Agreement as
modified and all other Existing
Loan Documents remain in full force and effect.

     3. UCC Lien. Borrower hereby acknowledges and agrees that pursuant to the terms of
the
Security Agreements, all Obligations owed to Lender under the Loan Agreement and the Existing Note
are secured by the assets referred to therein (“Collateral”) ; and Borrower has not granted and is
not aware of any other lien on such Collateral other than the lien of Lender.

     4. Additional Collateral for Loan. Concurrently with the execution and delivery of
this Modification Agreement, Borrower shall execute and deliver to Lender a Security Agreement
(“Supplemental Security Agreement”) to secure the Obligations owed to Lender under the Loan
Agreement and the Note. The Security Agreement will be in the form and substance acceptable to
Lender and will grant Lender a first priority lien on the assets described therein which will
include, among other things, distributions received from Greenhill & Co., LLC, a Delaware limited
liability company.

     5. Modification of Loan Documents.

          5.1 Extension of Maturity Date of Loan. The Maturity Date of the Loan is extended to
April 30, 2011.

          5.2 First Change in Loan Amount and Promissory Note.

               (a) Concurrently with the execution and delivery of this Modification Agreement, the maximum
principal amount of the Loan shall be reduced from NINETY MILLION AND NO/100THS DOLLARS
($90,000,000.00) to SEVENTY-FIVE MILLION AND NO/100THS DOLLARS ($75,000,000.00).

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               (b) Concurrently with the execution and delivery of this Modification Agreement, Borrower
shall execute and deliver to Lender a Fifth Amended and Restated Promissory Note which will be in
form and substance acceptable to Lender (“Fifth Amended and Restated Note”) hereto. The Existing
Note shall be cancelled.

               (c) Concurrently with the execution and delivery of this Modification Agreement, or prior
thereto, Borrower shall: (i) pay all outstanding and accrued interest which is then due on the
Existing Note; and (ii) reduce the outstanding principal balance of the Existing Note to an amount
not to exceed SEVENTY-FIVE MILLION AND NO/100THS DOLLARS ($75,000,000.00).

          5.3 Second Change in Loan Amount and Promissory Note.

               (a) Effective December 31, 2010, the maximum principal amount of the Loan shall be
automatically reduced from SEVENTY-FIVE MILLION AND NO/100THS DOLLARS ($75,000,000.00) to SIXTY
MILLION AND NO/100THS DOLLARS ($60,000,000.00).

               (b) Not later than December 31, 2010, Borrower shall: (i) pay all outstanding and accrued
interest which is then due on the Fifth Amended and Restated Note; and (ii) pay all outstanding
principal in excess of the sum SIXTY MILLION AND NO/100THS DOLLARS ($60,000,000.00).

          5.4 Reporting Covenants. The Reporting Covenants set forth in Sections 7.1 through
7.4 of Exhibit A of the Loan Agreement and all amendments thereto will remain in full
force and effect.

          5.5 Financial Covenants. The following Financial Covenants shall replace in their
entirety the Financial Covenants set forth in the Loan Agreement and all amendments thereto,
including without limitation, Sections 7.5 through 7.8 and Sections 8.1 and 8.2 of Exhibit
A of the Loan Agreement.

               (a) Minimum Tangible Net Worth. Borrower shall maintain a Tangible Net Worth of
not less than ONE HUNDRED FIFTY MILLION AND NO/100THS DOLLARS
($150,000,000.00), which shall be verified quarterly as of the last day of the fiscal quarter. For
purposes of this Financial Covenant, “Tangible Net Worth” shall mean the excess of total assets
over total liabilities, determined in accordance with United States generally accepted accounting
principles, with the following adjustments: (A) there shall be excluded from assets (i) notes,
accounts receivable and other obligations owing to the Borrower from its officers or other
Affiliates; and (ii) all assets which would be classified as intangible assets under generally
accepted accounting principles, including goodwill, licenses, patents, trademarks, trade names,
copyrights, capitalized software and organizational costs, licenses and franchises; and (B) there
shall be excluded from liabilities all indebtedness which is subordinated to the Obligations under
a subordination agreement in form specified by Lender or by language in the instrument evidencing
the indebtedness which is acceptable to Lender in its discretion.

               (b) Total Liabilities to Tangible Net Worth. Borrower shall maintain a ratio of
“Total Liabilities”, as reflected on Borrower’s consolidated statements of Financial Condition
(“Total Liabilities”), to Tangible Net Worth of 2.0:1 measured quarterly as of the last day of the
fiscal quarter.

               (c) Liquidity. Borrower shall maintain minimum Liquidity of $30,000,000 measured at
the time of each Advance under the Loan Agreement. For purposes of this Financial Covenant,
“Liquidity” shall include the following: “Liquid Assets” of Borrower: (i) unencumbered cash and
certificates of deposit; (ii) treasury bills and other obligations of the federal government; and
(iii) readily marketable securities (including commercial paper, but excluding restricted stock
and stock subject to the provisions of Rule 144 of the Securities and Exchange Commission) (unless
such stock can be sold without regard to the “volume limitations” under Rule 144).

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               (d) Debt Service Coverage Ratio. Borrower shall maintain a Debt Service Coverage
Ratio of not less than 1.25 to 1 which shall be measured quarterly as of the last day of the
fiscal quarter on a 4-quarter rolling basis. For purposes of this Section, the term “Debt Service
Coverage Ratio” is defined as a ratio of EBITDA to the Maximum Principal Amount of the Note
(subject to such reductions as are provided for therein). “EBITDA” shall mean “Net Income Before
Interest, Taxes, Depreciation and Amortization.” EBITDA shall exclude the amortization of any
non-cash expense related to Restricted Stock Units granted to employees. The ratio is effective
beginning with the 4-quarter period ending December 31, 2009.

               (e) 15-Days Out of Debt. Borrower will demonstrate to Lender through an Officer’s
certification that during each six (6) month period following April 30, 2010, Borrower shall have
sufficient liquidity to accomplish a 15-consecutive-calendar-day out of debt period (such period
to be designated by Borrower). Such certification will be delivered to Lender semi-annually on
October 31 and April 30 in respect to each preceding six-month period.

               (f) No Additional Indebtedness. Borrower (a) without the prior written approval of
Lender, shall not directly or indirectly make, create, incur, assume, or permit to exist any
guaranty of any kind of any indebtedness or other obligation of any other person during the term
of this Agreement or the Loan Agreement, excluding any guaranties by Borrower as of the date of
this Agreement that are reflected in the financial statements referred to in this Agreement and
agreed to by Lender; and (b) without the prior written approval of Lender, shall not directly or
indirectly incur indebtedness for borrowed money during the term of this Agreement, excluding: (i)
debts owing by Borrower as of the date of this Agreement that are reflected in the financial
statements referred to in this Agreement and agreed to by Lender; (ii) other borrowings from the
Lender; (iii) indebtedness secured by purchase money mortgages or liens which encumber only the
property being purchased and (iv) inter-company debt.

               (g) Borrowing Base.

                    (i) Until July 1, 2010, to the extent that the outstanding principal
balance of the Loan following any requested Advance would be in excess of $55.0 Million, Borrower
may obtain the requested Advance, if (in addition to the other requirements for an Advance) such
excess principal balance does not exceed the Formula Amount.

                    (ii) From and after July 1, 2010, to the extent that the outstanding
principal balance of the Loan following any requested Advance would be in excess of $45.0 Million,
Borrower may obtain the requested Advance, if (in addition to the other requirements for an
Advance) such excess principal balance does not exceed the Formula Amount. The Formula Amount
shall be determined as of the close of business two (2) Business Days prior to the date on which a
request for an Advance shall be made.

                    (iii) The “Formula Amount” shall mean 100% x incremental Liquid Assets in excess of $30.0
million + 80% x Eligible A/R + 20% x market value of the common stock of Iridium Communications
Inc. (“Iridium Stock”) owned by Borrower (no pledge necessary) + 20% x market value of Iridium
Stock owned by any subsidiaries of Borrower to the extent that Lender has a lien on such stock to
secure the obligations under the Loan Agreement.

                    (iv) “Eligible A/R” shall mean all accounts receivable of Borrower and all subsidiaries (on a
consolidated basis) excluding: (A) all accounts receivable (“A/R”) in excess of sixty (60) days
past due; (B) all A/R from a particular account debtor if 25% or more of the aggregate A/R from
such account debtor are in excess of 60 days past due; and (C) all A/R which Lender in its sole
discretion deems ineligible. If a particular delinquent A/R results from a bankruptcy
restructuring assignment where the Borrower’s fees are subject to any court ordered holdbacks such
A/R will be removed for all purposes of calculating the twenty-five percent cross-aging discussed
above.

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          5.6 Conditions for Advances. Borrower may obtain Advances under the Loan Agreement,
if, in addition to the foregoing requirements:

               (a) Borrower complies with the Liquidity requirement in Section 5.5(c).

               (b) Borrower complies will all other requirements for obtaining an Advance specified in the
Loan Agreement as amended.

               (c) No Event of Default has occurred and is continuing, and

               (d) The aggregate outstanding principal balance on the Loan does not exceed the maximum
principal amounts specified in Sections 5.2 and 5.3 as and when applicable.

          5.7 Deposit Accounts. At all times, the following entities shall maintain deposit
accounts with Lender into which will be deposited all proceeds of Lender’s Collateral subject to
the provisions of the related Security Agreements: Greenhill Capital Partners, LLC; Greenhill
Venture Partners LLC; Greenhill & Co, LLC.

          5.8 Letter of Credit Sublimit. Whatever maximum principal amount is applicable to the
Loan as set forth above in Sections 5.2 or 5.3, such amount shall continue to include the existing
sublimit for a standby letter of credit in the sum of Four Hundred Seventy-Five Thousand,
Forty-Four and 80/100 Dollars ($475,044.80) as set forth in Sections 9 and 10 of the Loan
Agreement..

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

          6.1 Authority. This Modification Agreement and each other document delivered to
Lender in connection with this Modification Agreement have been duly authorized, and upon
execution and delivery will constitute legal, valid and binding agreements and obligations of such
party enforceable in accordance with their respective terms, except, in each case, as enforcement
thereof may be limited by bankruptcy, insolvency or other laws relating to or affecting
enforcement of creditors’ rights or by general equity principles.

          6.2 Financial Information. All financial and other information that has been or will
be supplied to Lender is sufficiently complete to give Lender accurate knowledge of such party’s
financial condition as of the time of the delivery of same to Lender and is a true statement of
such party’s financial condition and reflects any and all material contingent liabilities as of
the time of the delivery of same to Lender.

          6.3 No Defaults. There currently exist no fact or occurrence which would constitute
an Event of Default under the Loan Agreement.

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

          6.5 Lawsuits. There is no lawsuit, tax claim or adjustment or other dispute pending,
or, to the knowledge of such party, threatened against such party, his, her or its property, his,
her or its business or the Collateral as to which there is a significant probability of an adverse
decision that, after taking into account any insurance coverage for such matter, reasonably would
be expected to have a material adverse effect on the business or the financial condition of
Borrower, the Collateral or Lender’s right and remedies under this Modification Agreement.

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

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     8. Conditions Precedent. The following are conditions precedent to Lender’s
obligations
under this Modification Agreement:

          8.1 Receipt by Lender of the executed originals of: (i) this Modification Agreement; (ii) the
Supplemental Security Agreement; (iii) the Fifth Amended and Restated Note; (iv) a Reaffirmation
Agreement to be executed by Greenhill Capital Partners, LLC consenting to the transaction provided
for herein in form and substance acceptable to Lender; (v) a Reaffirmation Agreement to be executed
by Greenhill Venture Partners, LLC consenting to the transaction provided for herein in form and
substance acceptable to Lender; and (v) a Reaffirmation Agreement to be executed by Greenhill
Capital Partners II, LLC consenting to the transaction provided for herein in form and substance
acceptable to Lender.

          8.2 The creation of the Deposit Accounts referred to in Section 5.7.

          8.3 Reimbursement to Lender by Borrower of Lender’s costs and expenses incurred in connection
with this Modification Agreement and the transactions contemplated hereby, including, without
limitation, the fees set forth in Section 9 below, whether such services are furnished by Lender’s
employees or agents or by independent contractors.

          8.4 The representations and warranties contained in this Modification Agreement and the other
Loan Documents are true and correct.

          8.5 All payments due and owing to Lender under the Loan Documents have been paid current as
of the effective date of this Modification Agreement.

          8.6 Any UCC, tax lien, litigation, judgment and other searches, fictitious business name
statement filings, insurance certificates, notices or other similar documents which Lender may
reasonably require and in such form as Lender may reasonably require, in order to reflect Lender’s
first priority security interest in the Collateral and in order to fully consummate all of the
transactions contemplated hereunder

          8.7 Such other documents as Lender may require under any other section of this Amendment.

     9. Fees. Borrower shall pay to Lender upon the execution of this Modification or
upon
Lender’s request the following:

          9.1 Commitment Fee. A Commitment Fee of $250,000.00. Said amount shall be owed whether
or not the maximum loan amount is advanced for whatever reason; and said amount shall be deemed
fully earned upon execution of this Modification Agreement regardless whether the Loan is later
accelerated upon the occurrence of an Event of Default. Said amount is calculated as follows: (i)
$75,000.00 for the period 12/31/09 to 4/30/10; (ii) $125,000.00 for the period 5/1/10 through
12/31/10; (iii) $50,000.00 for the period 1/1/11 through 4/30/11.

          9.2 Expenses and Attorneys Fees. All of Lender’s costs, charges and expenses paid or
incurred by Lender in connection with the preparation of this Modification Agreement and the
transactions contemplated hereby, including all reasonable attorneys fees and costs and all filing
fees.

          9.3 Method of Payment. Such amounts may be debited by Lender from any account
maintained in the name of Borrower.

     10. Events of Default and Remedies.

          10.1 Events. The occurrence and continuance of any of the following events shall
constitute an Event of Default hereunder at the option of Lender:

               (a) Failure to make any payment provided for under this Modification Agreement.

               (b) Failure to take any action or comply with any condition provided for under this
Modification Agreement.

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               (c) The occurrence and continuance of an Event of Default under the (i) Loan Agreement as
modified or any related documents, (ii) this Modification Agreement, (iii) the Note, or (iv) any
documents executed in connection herewith.

          10.2 Remedies. Upon the occurrence of an Event of Default, Lender may declare an
Event of Default under the Loan Agreement and/or any other Loan Document and exercise the remedies
under the Loan Agreement, the Note and any other Loan Document, including (without limitation) the
imposition of default interest under the Note).

     11. Indemnification. Borrower hereby agrees to indemnify and hold Lender and its
officers, directors, agents, employees, representatives, shareholders, affiliates, participating
lenders, successors and assigns harmless from and against any and all claims, demands, damages,
liabilities, actions, causes of action, suits, costs and expenses, including attorneys’ fees and
costs, directly or indirectly arising out of or relating to the transactions contemplated by this
Modification Agreement.

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

     13. Waiver and Release.

          13.1 In further consideration of Borrower and Lender entering into this Modification
Agreement, Borrower and Pledgors and Borrower’s and Pledgors’ past and present employees and agents
(collectively referred to as the “Releasing Parties”) hereby waive and release any and all claims,
rights and defenses, causes of action, damages, debts and offsets of any nature whatsoever whether
heretofore or now existing (known or unknown, liquidated or unliquidated, whether based in tort,
contract, or other legal or equitable theory) which each of them now has (or might have) against
Lender, all of its past and present officers, directors, employees, agents, attorneys or
representatives (“Released Claims”). This waiver and release includes, but is not limited to,
claims, defenses, offsets and causes of action arising from or in any way related to any of the
Loan Documents and any promissory notes executed in connection and all modifications, supplements
and extensions thereto, all the advances thereunder and Lender’s actions in connection therewith.

          13.2 The Releasing Parties each understand (a) that it is possible that unknown losses or
claims may exist, or (b) that past known losses have been underestimated; nevertheless each of the
Releasing Parties is taking this risk into account in determining the consideration it is to
receive for this release through this Modification Agreement. Consequently, each of the Releasing
Parties expressly waives all rights and benefits conferred by Section 1542 of the California Civil
Code which provides as follows:

“A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the
debtor.”

          13.3 Each person signing below on behalf of Borrower or Pledgor hereunder acknowledges that
he or she has read each of the provisions of this Release. Each such person fully understands that
this Release has important legal consequences, and each such person realizes that they are
releasing any and all Released Claims that Borrower or any such guarantor may have as of the
Release Date. Borrower and each guarantor hereunder hereby acknowledge that each of them has had
an opportunity to obtain a lawyer’s advice concerning the legal consequences of each of the
provisions of this Release.

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

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     15. Miscellaneous.

          15.1 Controlling Provisions. To the extent that there is any inconsistency or conflict
between the terms, conditions and provisions of the Loan Documents, this Modification Agreement and
any document executed in connection herewith, the terms, conditions and provisions of this
Modification Agreement will prevail.

          15.2 Modifications of Agreement. This Modification Agreement may be modified only by
a written agreement signed by Lender and the other party who is affected by such modification.

          15.3 Entire Agreement. This Modification Agreement shall be included within the
meaning of the term “Loan Documents” under the Loan Agreement. This Modification Agreement and the
other Loan Documents contain the entire agreement and understanding among the parties concerning
the matters covered by this Modification Agreement and the other Loan Documents and supersede all
prior and contemporaneous agreements, statements, understandings, terms, conditions, negotiations,
representations and warranties, whether written or oral, made by Lender and any of the other
parties to this Modification Agreement concerning the matters covered by this Modification
Agreement and the other Loan Documents.

          15.4
Severability. In the event that any provision, or portions thereof, of this
Modification Agreement is held to be unenforceable or invalid by any court of competent
jurisdiction, the validity and enforceability of the remaining provisions, or portions thereof,
shall not be affected thereby.

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

          15.6 No Waiver. No waiver by Lender of any of its rights or remedies in connection
with the Loan shall be effective unless such waiver is in writing and signed by Lender. No waiver
of any breach or default shall be deemed a waiver of any breach or default thereafter occurring.

          15.7 Rights Cumulative. Lender’s rights and remedies under this Modification
Agreement are cumulative with and in addition to any and all other legal and equitable rights and
remedies which Lender may have in connection with the Loan.

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

          15.9 Counterparts. This Modification Agreement may be executed in counterparts, each
of which shall constitute an original, and all of which together shall constitute one and the same
agreement.

          15.10 Successors and Assigns. This Modification Agreement shall bind and inure to the
benefit of the parties hereto and their respective successors and assigns. Lender may assign its
rights under this Modification Agreement; however, any party to this Modification Agreement may
not assign this Modification Agreement or any rights and duties or obligations of them hereunder
without the prior written consent of Lender.

          15.11 Controlling Law. This Modification Agreement and any instrument or agreement
executed in connection with this Modification Agreement shall be governed by and construed under
the laws of the State of California.

          15.12 Attorneys’ Fees. Lender shall be entitled to recover all costs and expenses,
including attorneys’ fees and costs, incurred by Lender in enforcing any of the terms of this
Modification

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Agreement or the other Loan Documents, from any party against whom this Modification Agreement is
sought to be enforced whether or not any legal proceedings are instituted by Lender. Without
limiting the generality of the immediately preceding sentence, upon Lender’s demand, Lender shall
be reimbursed for all costs and expenses, including attorneys’ fees and costs, which are incurred
by Lender in connection with any action by Lender for relief from the automatic stay arising under
Bankruptcy Code Section 362(a), 11 U.S.C. §362(a).

          15.13 Authorization. Borrower hereby authorizes Lender to file any appropriate
financing statements to reflect any and all modifications to the Loan Documents set forth in this
Modification Agreement and to perfect any liens grated in connection herewith.

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

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

[SIGNATURE PAGE FOLLOWS]

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	BORROWER:	 	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	GREENHILL & CO., INC.,

a Delaware corporation	 	 	 	FIRST REPUBLIC BANK,

a Division of Bank of America, N.A.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PLEDGORS:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	The undersigned Pledgors hereby agree
to the terms of, and are bound by,
Section 13 of this Agreement.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Greenhill Capital Partners, LLC,

a Delaware limited liability company	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Greenhill Venture Partners, LLC,

a Delaware limited liability company	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Greenhill Capital Partners II LLC,

a Delaware limited liability company	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

- 10 -exv10w53

Exhibit 10.53

     

      

FORM OF SECURITY AGREEMENT

LLC Distributions

     This SECURITY AGREEMENT (LLC Distributions) (the “Agreement”), dated as of           , is
executed by and between GREENHILL & CO., INC., a Delaware corporation (“Borrower”), and FIRST
REPUBLIC BANK, a Division of Bank of America, N.A. (“Lender”).

     Lender has entered into a Loan Agreement dated as of January 31, 2006, with Borrower pursuant
to which Lender provided a loan to, or for the benefit of, Borrower. Such Loan Agreement is being
extended and amended concurrently herewith pursuant to the terms of that certain Seventh
Modification Agreement dated as of the date hereof (“Seventh Modification Agreement”). This
Agreement is being provided in connection with the Loan Agreement and the Seventh Modification
Agreement to secure Borrower’s obligations thereunder.

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

ARTICLE I

DEFINITIONS

     For purposes of this Agreement, capitalized terms not otherwise defined in this Agreement
shall have the meanings provided below or in the Commercial Code or in the Loan Agreement.

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

     1.2 Attorneys’ Fees — is defined in Section 9.5.

     1.3 Bankruptcy Code — means the U.S. Bankruptcy Code as now enacted or hereafter
amended.

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

     1.5 Borrower’s Books — means all of Borrower’s books and records including, but not
limited to: minute books; ledgers, and records indicating, summarizing or evidencing Borrower’s
assets, liabilities, the Collateral, the Secured Obligations, and all information relating thereto;
records indicating, summarizing or evidencing Borrower’s business operations or

LOAN NO. 93-408969-4/AFS#0210053059

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financial
condition; and all computer programs, disc or tape files, printouts, runs, and other computer
prepared information and the equipment containing such information.

     1.6 Business Day — means any day other than a day on which commercial banks are
authorized or required by law to close in the State of California.

     1.7 Capital Account — means any account or credit maintained or owed directly or
indirectly by the Company to or for Borrower or in Borrower’s name: (i) on account of capital
contributions of Borrower to or for the Company; and/or (ii) which represents Borrower’s equity
interest in the Company; and/or (iii) which represents the value of Borrower’s LLC Interest.

     1.8 Capital Calls — means all demands made, or to be made, upon Borrower for: (i) the
advance of funds to be made by Borrower to fund the capital of the Company; or (ii) on account of,
or in connection with, the LLC Interest.

     1.9 Capital Contributions — means all payments and/or contributions made by Borrower
to the Company pursuant to any Capital Calls.

     1.10 Commercial Code — means the Uniform Commercial Code, as now enacted or hereafter
amended, applicable in the State of California.

     1.11 Company — means Greenhill & Co. LLC, a Delaware limited liability company.

     1.12 Distributions — mean all amounts and rights to payment, payments and
distributions, amounts and cash owed to, paid to, or held for, or available to Borrower or in
Borrower’s name (in whichever form they exist, whether as Instruments, Chattel Paper, Accounts,
General Intangibles, Financial Assets or otherwise) arising from, or on account of: (i) the LLC
Interest, and (ii) all Capital Accounts, including without limitation, all Interim Distributions
and all Liquidation Distributions.

     1.13 Exhibit — means any Exhibit attached hereto and incorporated herein.

     1.14 Governmental Authorities — means: (i) the United States; (ii) the state, county,
city or other political subdivision in which any of the Collateral is located; (iii) all other
governmental or quasi-governmental authorities, boards, bureaus, agencies, commissions,
departments, administrative tribunals, instrumentalities and authorities; and (iv) all judicial
authorities and public utilities having or exercising jurisdiction over Borrower, Borrower, any
Guarantor or the Collateral. The term “Governmental Authority” means anyone of the Governmental
Authorities.

     1.15 Governmental Permits — means all permits, approvals, licenses and authorizations
now or hereafter issued by any Governmental Authorities for or in connection with the conduct of
Borrower’s business or the ownership or use by Borrower of the Collateral, or its other assets or
its properties.

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     1.16 Governmental Requirements — means all existing and future laws, ordinances,
rules, regulations, orders or requirements of all Governmental Authorities applicable to Borrower,
any Guarantor, the Collateral or any of Borrower’s or any Guarantor’s other assets or properties.

     1.17 Guarantor — means, collectively, the Person or Persons, if any, now or hereafter
guaranteeing payment of the credit or payment or performance of the Secured Obligations (or
pledging collateral therefor).

     1.18 Guaranty — means every guaranty agreement of any kind (including third-party
pledge agreements) now or hereafter executed by any Guarantor, and all extensions, renewals,
modifications and replacement thereof.

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

     1.20 Interim Distribution — means any Distributions made in the ordinary course of
business of the subject entity and not in connection with a Liquidation Distribution.

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

     1.22 Lender — means FIRST REPUBLIC BANK, a Division of Bank of America, NA

     1.23 Lender Expenses — means all costs and expenses incurred by Lender in connection
with: (i) this Agreement or other Loan Document; (ii) the transactions contemplated hereby or
thereby; (iii) the enforcement of any rights hereunder or thereunder; (iv) the recordation or
filing of any documents; (v) Lender’s Attorneys’ Fees; (vi) the creation, perfection or enforcement
of the lien on any item of Collateral; and (vii) any expenses incurred in any proceedings in the
U.S. Bankruptcy Courts in connection with any of the foregoing.

     1.24 Liquidation Distribution — shall mean all Distributions that are liquidating
dividends or final return on capital to Borrower or repayment of equity in connection with the
liquidation, dissolution or termination of the Company.

     1.25 LLC Agreement — means the Operating Agreement or other formation agreement listed
on Exhibit B.

     1.26 LLC Interest — means the membership interest of Borrower in the Company.

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     1.27 Loan Agreement — means that certain Loan Agreement dated as of January 31, 2006
between Borrower and Lender and all extensions, renewals, modifications and replacements thereof,
including without limitation, that certain Seventh Modification Agreement dated as of the date
hereof.

     1.28 Loan Document — means this Agreement, the Loan Agreement and any other documents
now or hereafter executed by Borrower or Guarantor or any other Person and delivered to Lender at
Lender’s request in connection with the credit extended to Borrower and all extensions, renewals,
modifications or replacements thereof and any Note executed in connection therewith.

     1.29 Note — means: (i) the Sixth Amended and Restated Note dated as of the date
hereof in the original principal sum of $75,000,000 executed and delivered pursuant to the Seventh
Modification Agreement; (ii) any predecessor promissory note and any other promissory note executed
in connection with the Loan Agreement; and (iii) any additional note or notes now or hereafter
executed by Borrower in favor of Lender which specifically recite that they arise out of the Loan
Documents, and all extensions, renewals, modifications and replacement thereof.

     1.30 Permitted Liens — means any and all of the following: (i) liens for taxes, fees,
assessments or other governmental charges or levies, either not delinquent or being contested in
good faith by appropriate proceedings; and (ii) any other liens and encumbrances agreed to in
writing by Lender.

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

     1.32 Secured Obligations — means all debts, obligations and liabilities of Borrower to
Lender under or in connection with this Agreement, the Loan Agreement, any Note, and any of the
other Loan Documents, regardless whether such Secured Obligations are currently existing or
hereafter created, whether liquidated or unliquidated, including Attorneys’ Fees. Notwithstanding
anything to the contrary contained in the Loan Documents, the term “Secured Obligations” shall not
include any debts that are or may hereafter constitute “consumer credit” which is subject to the
disclosure requirements of the federal Truth-In Lending Act (15 U.S.C. Section 1601, et
seq.) or any similar state law in effect from time to time, unless Lender and Borrower
shall otherwise agree in a separate written agreement.

ARTICLE II

SECURITY INTEREST

     2.1 Security Interest. Borrower hereby grants to Lender a continuing valid, first
priority security interest in all present and future Collateral, described in Exhibit B,
now owned or hereafter acquired to secure repayment and performance of the Secured Obligations.

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     2.2 Security Documents. Lender may file all financing statements and confirmation
statements and other documents as necessary to perfect and maintain perfected Lender’s security
interest. Borrower shall execute and deliver to Lender all documents which Lender may reasonably
request: (i) to perfect, and maintain perfected, Lender’s security interests in the Collateral or,
(ii) to maintain or recognize the priority and enforceability of the Lender’s lien on the
Collateral, and (iii) to implement the terms of this Agreement. If requested by Lender, Borrower
will have such documents executed by relevant third parties and delivered to Lender. In this regard
if the Account is maintained with a financial institution other than Lender, Borrower will execute
such Control Agreement as Lender may require to perfect its lien on such Account.

     2.3 Assignment of Rights to Payment.

     (a) Borrower hereby assigns, transfers and sets over to Lender and its successors: (i) all of
its rights to collect and receive Distributions from the Company subject to the limitations set
forth in Exhibit A.

     (b) All payments on Distributions are to be sent by wire transfer to the account specified in
Exhibit A (“Account”). Borrower shall take such steps as are requested by Lender for the
payment of all future Distributions into such Account Funds deposited into the Account shall be
released or applied as provided in Exhibit A.

ARTICLE III

DISTRIBUTIONS AND DIVIDENDS

     3.1 Distributions. Whether or not an Event of Default has occurred, all Distributions
will be deposited into the Account.

     3.2 Delivery. Borrower shall promptly deliver to Lender all instruments or chattel
paper which constitute Collateral, duly endorsed and assigned.

     3.3 Funds Held in Trust. To the extent that Borrower receives any payment which is to
be paid to Lender, such payment is to be held in trust for Lender and shall be segregated from
Borrower’s other funds and shall be immediately paid to Lender in the form as received (with any
necessary endorsements).

     3.4 Funds Held by Lender. All funds received by Lender may, in the discretion of
Lender, be held by Lender as additional Collateral and disbursed or applied to the Secured
Obligations as provided in Exhibit A.

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Until the Secured Obligations are satisfied in full, Borrower makes the following
representations and warranties:

     4.1 Borrower. Borrower’s full and correct name and address are indicated in
Exhibit A. If Borrower is an entity, Borrower: (i) is duly organized, validly existing and
in good standing under the laws of the state specified in Exhibit A; (ii) is qualified to
do business and is in good standing in each jurisdiction in which the ownership of its assets or
the conduct of its business requires qualification as a foreign entity; and (iii) conducts business
under the trade name(s), if any, specified in Exhibit A, and no other trade name(s).

     4.2 Authority. This Agreement has been duly authorized, and upon execution and
delivery will constitute the legal, valid and binding agreement and obligation of Borrower,
enforceable in accordance with its terms.

     4.3 No Conflicts. The execution, delivery and performance by Borrower of this
Agreement and the grant of the lien herein do not: (i) violate any Governmental Requirements
applicable to Borrower; (ii) constitute a breach of any provision of the organizational papers of
Borrower; or (iii) constitute an event of default under any agreement of Borrower.

     4.4 Lawsuits; Compliance; Taxes. There is no material lawsuit, tax claim or adjustment
or other dispute pending or threatened against Borrower or the Collateral. Borrower is in
compliance with all Governmental Requirements and has satisfied, prior to delinquency, all taxes
due or payable by Borrower or assessed against the Collateral.

     4.5 Adequate Consideration. Borrower is receiving reasonably equivalent consideration
for entering into this Agreement.

     4.6 Solvency. Borrower is now and shall be at all times hereafter solvent and able to
pay Borrower’s debts (including trade debts) as they mature.

     4.7 Title to Assets. Borrower: (i) has and at all times will have full legal and
equitable title to the LLC Interest free of all liens and interests, except Permitted Liens; and
(ii) has the right to grant security interests in the Collateral. No authorization or approval or
notice is required to grant the lien on the Collateral or for the delivery of this Agreement,
except for such authorizations, or notices which have been obtained or given prior hereto.

     4.8 LLC Interest. Borrower is not in default of any duty or obligation required in
connection with the LLC Interest. All amounts and all Capital Calls owed in connection therewith
have been fully paid.

     4.9 No Offsets or Defenses. All Distributions, Capital Accounts and other amounts owed
to Borrower in connection with the LLC Interest are subject to no defense or set off other than
those expressly specified in the LLC Agreement.

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     4.10 Company. The Company has been duly organized and is in good standing under the
laws of the State of its formation. The Company is financially solvent. The Company is not an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.

     4.11 LLC Agreement. The LLC Agreement identified in Exhibit B, a true and
complete copy of which has been provided to Lender, has been duly authorized, executed and
delivered by the parties thereto, has not been amended or supplemented, except as expressly
disclosed to Lender, and is in full force and effect and binding on all parties thereto in
accordance with its terms.

     4.12 Non-Consumer. No item of Collateral is held primarily for personal, family or
household purposes or secures a loan which is obtained primarily for personal, family or household
purposes.

     4.13 Liquidity. Upon execution of this Agreement, Borrower will remain liquid, the
total value of its assets will exceed its liabilities (contingent and non-contingent); and it will
be able to pay its debts as they come due.

     4.14 Continuing and Cumulative Warranties. The warranties and representations set
forth in this Section shall be true and correct in all material respects at the time of execution
of this Agreement and shall constitute continuing representations and warranties as long as any of
the Secured Obligations remain unpaid or unperformed. The warranties and representations shall be
cumulative and in addition to any other warranties and representations which Borrower shall give to
Lender, now or hereafter.

ARTICLE V

COVENANTS

     Borrower agrees, until the Secured Obligations are satisfied in full:

     5.1 Transfer or Release of Assets. Borrower shall not transfer, sell, abandon, or
release the LLC Interest, any Capital Account, any amounts owed to Borrower in connection with the
LLC Interest or any Capital Account, or any other item of Collateral.

     5.2 Lien Free. Borrower shall keep the Collateral free of all liens and interests,
except Permitted Liens. However except as expressly agreed in writing Lender’s lien shall be senior
to all Permitted Liens.

     5.3 LLC Interest. Borrower will not do any of the following without the prior written
consent of Lender: (i) withdraw capital or borrow from the Company or receive any Distributions
except as expressly permitted under the “Distributions” Section above or in Exhibit A; (ii)
vote or agree to dissolve the Company; (iii) vote or agree to make any material amendments to the
LLC Agreement; (iv) waive, or suspend any right to collect, any Distributions or
take any action
which would adversely affect Borrower’s right to any Distributions or

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Borrower’s right to collect
any Distributions; or (v) waive any material default under or breach of the LLC Agreement. Borrower
will: (i) perform and observe all provisions of the LLC Agreement applicable to Borrower; (ii)
maintain and enforce the LLC Agreement; and (iii) satisfy all Capital Calls now or hereafter
received by Borrower.

     5.4 Records. As regards any Collateral, Borrower shall: (i) maintain a standard and
modern system of accounting in accordance with generally accepted accounting principles, or such
other accounting principles as agreed to by Lender, consistently applied; and (ii) not modify or
change Borrower’s method of accounting except to the extent required by any applicable new statute
or regulation. Borrower’s Books shall be accurate and complete. On Lender’s request, Borrower shall
deliver to Lender copies of Borrower’s Books.

     5.5 Inspection. Borrower shall permit Lender and any of Lender’s representatives, on
demand, during business hours, to have access to and to examine and copy Borrower’s Books
pertaining to the Collateral. Borrower shall deliver to Lender such reports and information
concerning the Collateral as Lender may reasonably request.

     5.6 Taxes. Borrower shall pay all taxes relating to the Collateral when due.

     5.7 Compliance with Applicable Laws. Borrower shall comply with and keep in effect all
Governmental Permits relating to it and the Collateral. Borrower shall comply with and shall cause
the Collateral to comply with: (i) all Governmental Requirements; (ii) all requirements and orders
of all judicial authorities which have jurisdiction over it or the Collateral; and (iii) all
covenants, conditions, restrictions and other documents relating to Borrower or the Collateral.

     5.8 Notifications. Borrower shall promptly notify Lender of any material decline in
value of, or loss of, or diminution in value of, any Collateral.

     5.9 Expenses. Borrower agrees to reimburse Lender for any and all Lender Expenses, and
hereby authorizes and approves all advances and payments by Lender for items constituting Lender
Expenses.

     5.10 Existence. If Borrower is an entity: (i) Borrower will maintain its existence in
good standing under the law of the state of its organization; (ii) will maintain its qualification
as a foreign entity in each jurisdiction in which the nature of its business requires such
qualification; and (iii) will not merge with any other entity without the consent of Lender except
for acquisitions or mergers which result in Borrower retaining 51% or more of the equity interest
of the resulting entity and control of the management of such entity.

     5.11 Further Assurances. Upon Lender’s request, Borrower, at Borrower’s expense,
shall: (i) execute and deliver such further documents and notices satisfactory to Lender; (ii)
take any action requested by Lender to carry out the intent of this Agreement and the other Loan
Documents; and (iii) provide such reports and information available to Borrower concerning the
business, financial condition and business of Borrower.

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ARTICLE VI

EVENTS OF DEFAULT

     The occurrence of any one or more of the following events shall constitute an “Event of
Default” under this Agreement, at the option of Lender:

     6.1 Breach. There is a breach of any provision of this Agreement or discovery that any
material representations or warranty provided to Lender by, or on behalf of Borrower, was
materially inaccurate at the time given.

     6.2 Lien Priority. Lender shall cease to have a valid and perfected first priority
lien on any of the Collateral subject only to such Permitted Liens, except for any lien that the
Lender has agreed in writing will be senior to Lender’s lien.

     6.3 Material Impairment. There is a material impairment of the value of the
Collateral.

     6.4 LLC Interest. Borrower breaches any material provision of the LLC Agreement or
fails to make any Capital Contributions; or the LLC Interest is terminated or action is commenced
to terminate the LLC Interest.

     6.5 Seizure of Collateral. Any portion of the Collateral is subject to attachment,
seizure or is otherwise levied upon or comes into possession of any Judicial Officer or Assignee.

     6.6 Insolvency or Attachment. If Borrower: (i) fails to pay its debts as they become
due; (ii) commences dissolution or termination of its business; (iii) is the subject of any
voluntary or involuntary Insolvency Proceeding; (iv) is the subject of any involuntary lien; or (v)
is the subject of any receivership or similar proceeding.

     6.7 Event of Default Under Loan Documents. There is an Event of Default under any of
the other Loan Documents.

ARTICLE VII

LENDER’S RIGHTS AND REMEDIES; WAIVER

     7.1 Remedies. Subject to the limitations of certain rights of Lender to foreclose on
the Account only upon the occurrence of a Monetary Event of Default as provided in Exhibit
A, if an Event of Default occurs and is not cured by Borrower or waived by Lender, Lender shall
have all rights and remedies of a secured party under the Commercial Code and as otherwise provided
at law or in equity. Lender shall provide such notices as are required under the Commercial Code.
Lender may dispose of any item of Collateral in a manner permitted by the Commercial Code. All
proceeds from the Collateral shall be applied or disbursed as permitted under the Commercial Code.

     7.2 Rights to Payment. Without limiting the foregoing, but subject to the limitations
of certain rights of Lender to foreclose on the Account only upon the occurrence of a Monetary

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Event of Default as provided in Exhibit A upon the occurrence of an Event of Default,
Lender may: (i) make demand and collect all amounts owed to Borrower in connection with the LLC
Interest, the LLC Agreement, or any Capital Account; (ii) as regards the foregoing amounts, settle
or adjust disputes and claims directly with the Borrowers and compromise any obligations on terms
and in any order which the Lender considers advisable.

     7.3 Waivers. Borrower waives: (i) all rights, remedies and benefits under California
Civil Code Sections 1479 and 2822(a); and (ii) all rights to require marshalling of assets or liens
or all rights to require Lender to exercise any other right or power or to pursue any other remedy
which Lender may have.

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

     7.5 Liability for Deficiency. If Borrower has executed a Guaranty, Borrower shall
remain liable for any deficiency remaining on the Secured Obligations after disposition of all or
any of the Collateral and Lender’s application of the proceeds thereof to the Secured Obligations.

     7.6 Actions. Borrower authorizes Lender, without notice or demand and without
affecting its liability hereunder, and without consent of Borrower, to: (i) take and hold
additional security for the payment of the Secured Obligations with the consent of the party
providing such security; and (ii) accept additional co-guarantors for the payment of the Secured
Obligations.

     7.7 Power of Attorney. Borrower irrevocably appoints Lender, with full power of
substitution, as its attorney-in-fact, coupled with an interest, with full power, in Lender’s own
name or in the name of Borrower: (i) at any time to sign, record and file all documents referred
to in this Agreement; and (ii) after an Event of Default: (a) to endorse any checks, notes and
other instruments or documents evidencing the Collateral, or proceeds thereof; (b) to discharge
claims, demands, liens, or taxes affecting any of the Collateral; (c) to settle, and give releases
of, any insurance claim that relates to any of the Collateral, obtain payment of claim, and make
all determinations with respect to any such policy of insurance, and endorse Borrower’s name on any
proceeds of such policies of insurance; or (d) to instruct any Person having control of any books
or records relating to the Collateral to give Lender full rights of access thereto. Lender shall
have the right to exercise the power of attorney granted in this Section directly or to delegate
all or part of such power. Lender shall not be obligated to act on behalf of Borrower as
attorney-in-fact.

ARTICLE VIII

WAIVERS

     8.1 Waivers. (i) Borrower waives all presentments, demands for performance, notices of
nonperformance, protests, notices of protest, notices of dishonor, notices of default or demand,

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notices of acceptance of and reliance on this Agreement and notices of the creation, or incurring
of new or additional indebtedness, notices of renewal, extension or modification of the
indebtedness, notices of any information about Borrower at any time learned by Lender and all other
notices to which Borrower might otherwise be entitled; (ii) Borrower waives any right to require
Lender to: (a) proceed against Borrower; (b) proceed against or exhaust any security held from any
Person or marshalling of assets or liens; (c) proceed against any other Guarantor; or (d) pursue
any other remedy available to Lender; (iii) Borrower waives any defense arising by reason of any
disability or other defense of Borrower or by reason of the cessation from any cause whatsoever of
the liability of Borrower; (iv) Borrower waives the benefit of any statute of limitations affecting
its liability hereunder or the enforcement hereof; (v) Borrower waives all rights and defenses
arising from Lender’s election of remedies. Borrower acknowledges that the waivers provided herein
are made with Borrower’s full knowledge of the significance of such waivers, and that Lender is
relying on such waivers.

ARTICLE IX

MISCELLANEOUS

     9.1 Notices. Any notice, demand or request required hereunder shall be given in
writing (at the addresses set forth in Exhibit A) by any of the following means: (i)
personal service; (ii) electronic communication, whether by telex, telegram or telecopying or other
form of electronic communication; (iii) overnight courier; or (iv) registered or certified, first
class U.S. mail, return receipt requested, or to such other addresses as Lender or Borrower may
specify from time to time in writing.

     (a) Any notice, demand or request sent pursuant to either subsection (i) or (ii), above, shall
be deemed received upon such personal service or upon dispatch by electronic means.

     (b) Any notice, demand or request sent pursuant to subsection (iii), above, shall be deemed
received on the Business Day immediately following deposit with the overnight courier, and, if sent
pursuant to subsection (iv), above, shall be deemed received forty-eight (48) hours following
deposit into the U.S. mail.

     9.2 Choice of Law. This Agreement shall be determined under, governed by and construed
in accordance with California law. The parties agree that all actions or proceedings arising in
connection with this Agreement shall be litigated only in the state courts located in the County of
San Francisco, State of California, or the federal courts located in the Northern District of
California. Borrower waives any right Borrower may have to assert the doctrine of forum non
conveniens or to object to such venue and hereby consents to any court-ordered relief.

     9.3 Successors and Assigns; Assignment. This Agreement shall be binding and deemed
effective when executed by Borrower and accepted and executed by Lender. This Agreement shall be
binding on Lender’s and Borrower’s successors and assigns. Borrower agrees that it may not assign
this Agreement without Lender’s prior written consent. Lender may assign, in whole or in part, all
of its right, title and interest in and to this Agreement at any time without the consent of
Borrower. In connection with any assignment, Lender may disclose all

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documents and information that
Lender has or may hereafter have relating to Borrower. No consent to an assignment by Lender shall
release Borrower or any Guarantor from their obligations to Lender.

     9.4 Severability; Waivers. Each provision of this Agreement shall be severable from
every other provision of this Agreement for the purpose of determining the legal enforceability of
any provision. No waiver by the Lender of any of its rights or remedies in connection with this
Agreement shall be effective unless such waiver is in writing and Signed by the Lender. No act or
omission by Lender to exercise a right as to any event shall be construed as continuing, or as a
waiver or release of, any subsequent right, remedy or recourse as to a subsequent event.

     9.5 Attorneys’ Fees. On demand Borrower shall reimburse Lender for all costs and
expenses, including, without limitation, reasonable attorneys’ fees, costs and disbursements (and
fees and disbursements of Lender’s in-house counsel) (collectively “Attorneys’ Fees”) expended or
incurred by Lender in any way in connection with the amendment and/or enforcement of this Agreement
and Lender’s rights hereunder and to the Collateral whether or not suit is brought. Attorneys’ Fees
shall include, without limitation, attorneys’ fees and costs incurred in any State, Federal or
Bankruptcy Court, and in any Insolvency Proceeding of any kind in any way related to this
Agreement, the Note, or any item of Collateral and/or Lender’s lien thereon.

     9.6 Headings. Article and section headings are for reference only and shall not affect
the interpretation or meaning of any provisions of this Agreement.

     9.7 Integration; Amendment. No modification or amendment to this Agreement, or
novation of the obligations under this Agreement, shall be effective unless in writing, executed by
Lender and the other relevant parties. Except for currently existing obligations of Borrower to
Lender, all prior agreements, understandings, representations, warranties, and negotiations between
the parties, whether oral or written, if any, which relate to the substance of this Agreement, are
merged into this Agreement. Borrower hereby waives the right to assert any agreement, promise, fact
or any parol (oral) evidence which is contrary to the terms or representations specified in this
Agreement.

     9.8 Joint and Several Liability. Should more than one Person sign this Agreement as
Borrower, the obligations of each Signatory shall be joint and several.

     9.9 Counterparts; Electronic Signatures. This Agreement may be executed in
counterparts, each of which when so executed shall be deemed an original, but all such counterparts
shall constitute but one and the same agreement. A signed copy of this Agreement transmitted by a
party to another party via facsimile or an emailed “pdf’ version shall be binding on the signatory
thereto.

     9.10 WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, LENDER AND BORROWER
HEREBY VOLUNTARILY, UNCONDITIONALLY AND IRREVOCABLY WAIVE TRIAL BY JURY IN ANY LITIGATION OR
PROCEEDING IN A STATE OR FEDERAL COURT WITH RESPECT TO, IN CONNECTION WITH, OR

12

 

ARISING OUT OF THIS
AGREEMENT OR THE OTHER CREDIT DOCUMENTS OR THE SECURED OBLIGATIONS, OR ANY INSTRUMENT OR DOCUMENT
DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING
WITHOUT LIMITATION, CLAIMS RELATING TO THE APPLICATION OR THE VALIDITY, PROTECTION, INTERPRETATION,
COLLECTION OR ENFORCEMENT THEREOF, OR ANY OTHER CLAIM OR DISPUTE HOWSOEVER ARISING (INCLUDING TORT
AND CLAIMS FOR BREACH OF DUTY), BETWEEN LENDER AND BORROWER.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE TO FOLLOW]

13

 

     This Agreement is executed as of the date stated at the top of the first page.

	 	 	 	 	 
	 	BORROWER:

GREENHILL & CO., INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Accepted:

LENDER:

FIRST REPUBLIC BANK, a Division

of Bank of America, N.A.

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

14

 

EXHIBIT A

TO

SECURITY AGREEMENT

LLC Distributions

This Exhibit A is an integral part of the Agreement between Lender and Borrower, and the
following terms are incorporated in and made a part of the Agreement to which this Exhibit
A is attached:

	1.	 	Borrower: Borrower represents that his/her/its name, address and state of
incorporation or formation (if Borrower is a registered entity) is as follows:

	 	1.1	 	Name: Greenhill & Co., Inc.
	 
	 	1.2	 	Trade Names or DBAs (if any): N/A
	 
	 	1.3	 	Type of Entity and State of Formation or Incorporation: Corporation, Delaware
	 
	 	1.4	 	Address for Notices: 300 Park Avenue, New York, New York 10022
	 
	 	1.5	 	Tax Identification Number or Social Security Number: 51-05000737

			
	2.     Lender’s Notice Address:	 	FIRST REPUBLIC BANK

111 Pine Street

San Francisco, CA 94111

Attn: Commercial Loan Operations

	3.	 	Disposition of Distributions:

	 	3.1	 	Liquidation Distributions. Whether or not a Monetary Event of Default
has occurred, all Liquidation Distributions whether held in the Account or not, will be
applied to the Secured Obligations.
	 
	 	3.2	 	Interim Distributions. Absent a Monetary Event of Default which is
continuing, all Interim Distributions may be released from the Account to Borrower or
disbursed by Borrower to pay tax obligations of Greenhill Capital Partners, LLC;
Greenhill Capital Partners II, LLC and of Greenhill & Co. LLC; and for other general
corporate purposes.
	 
	 	3.3	 	Monetary Event of Default. If a Monetary Event of Default has occurred
and is continuing, all Distributions will be paid to Lender and whether held in the
Account or not, all Distributions and their proceeds will be applied to the Secured
Obligations.

Exhibit A

 

	 	3.4	 	Monetary Event of Default. The term “Monetary Event of Default” shall
mean any failure to make a timely monetary payment to, or at the request of Lender,
provided for under the Loan Agreement or the Note or any Loan Document (whether or not
notice of such missed payment is required under the Loan Agreement).

	4.	 	Additional Covenants: N/A

Exhibit A

 

EXHIBIT B

TO

SECURITY AGREEMENT

LLC Distributions

DESCRIPTION OF COLLATERAL

The Collateral (“Collateral”) consists of all of the right, title and interest of Borrower in and
to the following assets whether currently existing or hereafter arising:

(a) all Capital Accounts which are held for, or in the name of, Borrower by or with the Company;

(b) all Distributions and other rights to payment arising from or on account of the LLC Interest;

(c) all Accounts, General Intangibles, Instruments, and Chattel Paper related to or arising in
connection with any of the foregoing assets;

(d) all proceeds of any of the foregoing, including without limitation, all Accounts, Deposit
Accounts, including, with out limitation, the Deposit Account specified below (“Deposit Account”),
Chattel Paper, Instruments and General Intangibles arising from or on account of any of the
foregoing and any deposit accounts which contain the proceeds of any of the foregoing; and

(e) all Borrower’s books and records, which relate to any of the foregoing.

Certain Definitions:

“Borrower” — means Greenhill & Co., Inc, a Delaware corporation.

“Capital Account” — means any account or credit maintained or owed directly or indirectly by the
Company to or for Borrower or in Borrower’s name: (i) on account of capital contributions of
Borrower to or for the Company; and/or (ii) which represents Borrower’s equity interest in the
Company, and/or (iii) which represents the value of Borrower’s LLC Interest.

“Company” — means Greenhill & Co. LLC, a Delaware limited liability company.

“Deposit Account” — means Account No. ___maintained by Secured Party in the name of Borrower.

“Distributions” — mean all amounts and rights to payment, payments and distributions owed to, paid
to, or held for, or available to Borrower or in Borrower’s name (in whichever form they exist,
whether as Instruments, Chattel Paper, Accounts, General Intangibles, Financial Assets or
otherwise) arising from, or on account of: (i) the LLC Interest, and (ii) all Capital Accounts,
including, without limitation, all Interim Distributions and all Liquidation Distributions.

Exhibit B

 

“Interim Distribution” — means any Distributions made in the ordinary course of business of the
subject entity and not in connection with a Liquidation Distribution.

“Liquidation Distribution” — means all Distributions that are liquidating dividends or final return
on capital to Borrower or repayment of equity in connection with the liquidation, dissolution or
termination of the Company.

“LLC Agreement” — means the following agreement(s) Amended and Restated Operating Agreement of
Greenhill & Co, LLC dated May 3, 2004, and all amendments thereto.

“LLC Interest” — means the membership interest of Borrower in the Company as provided in the LLC
Agreement.

Unless otherwise defined herein, the terms used herein shall have the meaning provided in the
Uniform Commercial Code, as now enacted or hereafter amended, applicable in the State of
California.

Exhibit B

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