Document:

Exhibit

HOULIHAN LOKEY, INC.
 DIRECTOR COMPENSATION PROGRAM
(Revised as of May 4, 2018)

Eligible Directors (as defined below) on the board of directors (the “Board”) of Houlihan Lokey, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Director Compensation Program (this “Program”).  This Program is an amendment and restatement of the Company’s Director Compensation Program that was adopted by the Board on July 29, 2015 (the “Original Program”).  The changes to the Original Program that are effected by this Program shall take effect on July 1, 2018.  The cash and equity compensation described in this Program shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who (i) is not an employee of the Company or any parent or subsidiary of the Company, (ii) is not designated to serve on the Board by ORIX USA Corporation or its subsidiaries, and (iii) qualifies as “independent” under the rules of the NYSE, including the NYSE rules relating to compensation committee independence, and as a “non-employee director” under Exchange Act Rule 16b-3 (each, a “Eligible Director”), who may be eligible to receive such cash or equity compensation, unless such Eligible Director declines the receipt of such cash or equity compensation by written notice to the Company.

This Program shall remain in effect until it is revised or rescinded by further action of the Board.  This Program may be amended, modified or terminated by the Board at any time in its sole discretion. No Eligible Director shall have any rights hereunder, except with respect to equity awards granted pursuant to Section 2 of this Program.

1.    Cash Compensation.

		
	a.
	Annual Retainers.  Each Eligible Director shall be eligible to receive an annual cash retainer of $62,500 for service on the Board.

		
	b.
	Payment of Retainers.  The annual cash retainers described in Sections 1(a) and 1(b) above shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than thirty days following the end of each calendar quarter.  In the event an Eligible Director does not serve as an Eligible Director for an entire calendar quarter, the retainer paid to such Eligible Director shall be prorated for the portion of such calendar quarter actually served as an Eligible Director.

2.          Equity Compensation.   Eligible Directors shall be granted the equity awards described below.   The awards described below shall be granted under and shall be subject to the terms and provisions of the Company’s Amended and Restated 2016 Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the Company (such plan, as may be amended from time to time, the “Equity Plan”) and may be granted subject to the execution 

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and delivery of award agreements, including attached exhibits, in substantially the forms approved by the Board prior to or in connection with equity grants under the Equity Plan. All applicable terms of the Equity Plan apply to this Program as if fully set forth herein, and all grants of equity awards hereby are subject in all respects to the terms of the Equity Plan.  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Company’s Amended and Restated 2016 Incentive Award Plan.

		
	a.
	Annual Common Stock Awards.   An Eligible Director who is serving on the Board as of May 15 of each calendar year automatically shall be granted, on such May 15, an Award of Common Stock covering a number of shares of Class A common stock equal to $87,500, divided by the Fair Market Value of a share of Class A common stock on the applicable grant date, rounded to the nearest whole share and subject to adjustment as provided in the Equity Plan.  These awards shall be referred to herein as the “Annual Awards.” With respect to the first Annual Award granted to an Eligible Director following the date on which he or she becomes an Eligible Director (the “Eligible Director Date”), such award shall be pro-rated based on the period of time served as an Eligible Director from (and including) the Eligible Director Date through the May 15 grant date of such Annual Award. Each Annual Award shall be vested in full on the applicable grant date.

		
	b.
	Committee Chair Award.  Each Eligible Director who serves as a Chair of a Committee of the Board as of May 15 of each calendar year automatically shall be eligible to be awarded, at the discretion of the Compensation Committee, on such May 15, an Award of Common Stock covering a number of shares of Class A common stock equal to $30,000, divided by the Fair Market Value of a share of Class A common stock on the applicable grant date, rounded to the nearest whole share and subject to adjustment as provided in the Equity Plan.  These awards shall be referred to herein as the “Committee Chair Awards.” With respect to the first Committee Chair Award granted to a Committee Chair following the date on which he or she becomes a Committee Chair (the “Eligible Chair Date”), such award shall be pro-rated based on the period of time served as a Committee Chair from (and including) the Eligible Chair Date through the May 15 grant date of such Committee Chair Award. Each Committee Chair Award shall be vested in full on the applicable grant date.

		
	c.
	New Director Award.   The Compensation Committee of the Board shall have the authority, in its sole and absolute discretion, to make an Award of Common Stock to each Eligible Director who joins the Board on or after July 1, 2018 covering a number of shares of Class A common stock equal to $100,000, divided by the Fair Market Value of a share of Class A common stock on the applicable grant date, rounded to the nearest whole share and subject to adjustment as provided in the Equity Plan.

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Exhibit 10.1

 

SECOND AMENDMENT TO AMENDED AND RESTATED 

MASTER REPURCHASE AGREEMENT

 

THIS SECOND AMENDMENT TO AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT (this “Amendment”), dated as of August 9, 2018, is made and entered into between and among HomeAmerican Mortgage Corporation, a Colorado corporation (the “Seller”), and U.S. Bank National Association, as administrative agent and representative of itself as a Buyer and the other Buyers (in such capacity, the “Agent”) and as a Buyer (in such capacity, “U.S. Bank”).

 

RECITALS:

 

A.     The Seller, U.S. Bank, and the Agent are parties to an Amended and Restated Master Repurchase Agreement dated as of September 16, 2016 (as amended by that certain First Amendment to Amended and Restated Master Repurchase Agreement dated as of August 10, 2017, and as further amended, restated or otherwise modified from time to time, the “Repurchase Agreement”).

 

B.     The Seller and the Agent now desire to amend certain provisions of the Repurchase Agreement as set forth herein.

 

AGREEMENT:

 

In consideration of the premises herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.     Definitions. Capitalized terms used and not otherwise defined in this Amendment have the meanings specified in the Repurchase Agreement.

 

Section 2.     Amendments.

 

2.1.     The following definitions set forth in Section 1.2 of the Repurchase Agreement are added or amended and restated, as applicable, to read in their entireties as follows:

 

“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

 

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

 

“LIBOR Margin” means 2.125%.

 

“Termination Date” means the earlier of (a) August 8, 2019, or (b) the date when the Buyers’ Commitments are terminated pursuant to this Agreement, by order of any Governmental Authority or by operation of law.

 

 

 

 

2.2.     Times for Advances, Payments and Margin Call. The Repurchase Agreement is amended as follows:

 

a.     Section 3.1(c) is amended by replacing the references to “1:30 p.m.” with “2:00 p.m.”

 

b.     Section 3.4(c) is amended by replacing the reference to “1:00 p.m.” with “2:00 p.m.”

 

c.     Section 6.2 is amended by replacing the references to “11:00 a.m.” with “12:00 p.m.”

 

d.     Section 12.2 is amended by replacing the references to “1:00 p.m.” with “2:00 p.m.”

 

e.     Section 24.5 is amended by replacing the reference to “1:00 p.m.” with “2:00 p.m.”

 

2.3.     Full Disclosure. Section 15.2(r) of the Repurchase Agreement is amended and restated to read in its entirety as follows:

 

(r)     Full Disclosure. Each material fact or condition relating to the Repurchase Documents and the Central Elements has been disclosed in writing to the Agent. All information previously furnished by the Seller and its Subsidiaries to the Agent in connection with the Repurchase Documents was and all information furnished in the future by the Seller and its Subsidiaries to the Agent or the Buyers will be true and accurate in all material respects or based on reasonable estimates on the date the information is stated or certified. To the best knowledge of the Seller, neither the financial statements referred to in Section 15.2(f) , nor any Request/Confirmation, officer’s certificate or any other report or statement delivered by the Seller and its Subsidiaries to the Agent in connection with this Agreement, contains any untrue statement of material fact. The information included in the most recently delivered Beneficial Ownership Certification is true and correct in all respects.

 

2.4.     Beneficial Ownership Reporting. Section 16.5 of the Repurchase Agreement is amended by adding a new clause (i) thereto, to read as follows:

 

(i) (i) Upon request of the Buyer, a Beneficial Ownership Certification, and (ii) any change in the information provided in the Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified in parts (c) or (d) of such certification.

 

2.5.     Exhibits and Schedules. Schedule AI to the Repurchase Agreement is amended and restated to read in its entirety as set forth on Schedule AI hereto.

 

Section 3.     Conditions Precedent and Effectiveness. This Amendment shall be effective as of the date first above written, upon the occurrence of the following events:

 

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3.1.     delivery to the Agent of this Amendment duly executed by the Seller in a quantity sufficient that the Agent and the Seller may each have a fully executed original;

 

3.2.     delivery to the Agent of a certificate by the Secretary or Assistant Secretary of the Seller (i) certifying that the resolutions adopted by the Seller’s board of directors on September 12, 2016, remain in full force and effect, authorizing the Seller to enter into this Amendment, (ii) certifying that there has been no amendment to the Articles of Incorporation of the Seller since true and accurate copies of the same were delivered to the Agent as of November 12, 2008, (iii) certifying that there has been no amendment to the By-Laws of Seller since true and accurate copies of the same were delivered to the Agent as of November 12, 2008, and (iv) a certification as to the incumbency, names, titles, and signatures of the officers of the Seller authorized to execute this Amendment and the other instruments executed by the Seller in connection with this Amendment; and

 

3.3.     delivery to the Agent of such other documents as it may reasonably request.

 

Section 4.     Miscellaneous.

 

4.1.     Ratifications. The terms and provisions of this Amendment shall modify and supersede all inconsistent terms and provisions of the Repurchase Agreement and the other Repurchase Documents, and, except as expressly modified and superseded by this Amendment, the terms and provisions of the Repurchase Agreement and each other Repurchase Document are ratified and confirmed and shall continue in full force and effect.

 

4.2.     Seller Representations and Warranties. The Seller hereby represents and warrants that (a) the representations and warranties in Article 15 of the Repurchase Agreement and in the other Repurchase Documents are true and correct in all material respects with the same force and effect on and as of the date hereof as though made as of the date hereof, and (b) after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

4.3.     Survival. The representations and warranties made by the Seller in this Amendment shall survive the execution and delivery of this Amendment.

 

4.4.     Reference to Repurchase Agreement. Each of the Repurchase Documents, including the Repurchase Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Repurchase Agreement as amended hereby, is hereby amended so that any reference in such Repurchase Document to the Repurchase Agreement refers to the Repurchase Agreement as amended and modified hereby.

 

4.5.     Applicable Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

 

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4.6.     Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of the Agent, the Buyers, the Seller, and their respective successors and assigns, except that the Seller may not assign or transfer any of its rights or obligations hereunder without the prior written consent of the Agent.

 

4.7.     Counterparts. This Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument.

 

4.8.     Headings. The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

 

4.9.     ENTIRE AGREEMENT. THIS AMENDMENT AND THE OTHER REPURCHASE DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO OR THERETO.

 

 

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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In witness whereof the parties have caused this Amendment to be executed as of the date first written above.

 

 

SELLER AND SERVICER:

 

HOMEAMERICAN MORTGAGE CORPORATION, as Seller and Servicer

By: /s/ L. Ludwell Jones IV          

Name: L. Ludwell Jones IV

Title: Vice President and Treasurer

 

 

 

 

AGENT AND BUYER:

 

U.S. BANK NATIONAL ASSOCIATION,

as Agent and Buyer

By: /s/ Edwin D. Jenkins               

Name: Edwin D. Jenkins

Title: Senior Vice President

 

Signature Page 

Second Amendment

 

 

SCHEDULE AI

TO Master Repurchase Agreement

 

APPROVED INVESTORS

 

	
			Investor

				
			S&P CP 

			Rating

				
			Moody’s CP 

			Rating

				
			Related Parent 

			Company

				
			Product Eligibility

			
	
			Caliber Home Loans

				
			N/A

				
			N/A

				 	
			Conforming

			
	
			Colorado Housing and Finance Authority

				
			N/A

				
			N/A

				 	
			Conforming

			
	
			Federal Home Loan Mortgage Corp. (Freddie Mac)

				
			N/A

				
			N/A

				 	
			Conforming

			
	
			Flagstar Bank

				
			N/A

				
			N/A

				 	
			Conforming

			
	
			Federal National Mortgage Assoc. (FNMA)

				
			N/A

				
			N/A

				 	
			Conforming

			
	
			Government National Mortgage Assoc. (GNMA)

				
			N/A

				
			N/A

				 	
			Conforming

			
	
			Planet Home Lending, LLC f/k/a HomeBridge Financial Services

				
			N/A

				
			N/A

				 	
			Conforming

			
	
			JPMorgan Chase Bank

				
			A-1

				
			P-1

				
			JPMorgan Chase & Co.

				
			Conforming/non-conforming

			
	
			PennyMac Loan Services, LLC

				
			N/A

				
			N/A

				
			PennyMac Corp.

				
			Conforming/non-conforming

			
	
			Redwood Residential Acquisition Corporation

				
			N/A

				
			N/A

				
			Redwood Trust, Inc.

				
			Conforming/non-conforming

			
	
			SunTrust Mortgage, Inc.

				
			A-2

				
			P-2

				
			Suntrust Banks, Inc.

				
			Conforming/non-conforming

			
	
			U.S. Bank Home Mortgage

				
			A-1

				
			P-1

				
			U.S. Bank National Association

				
			Conforming/non-conforming

			
	
			Wells Fargo Bank, N.A.

				
			A-1

				
			P-1

				
			Wells Fargo & Co.

				
			Conforming/non-conforming

			

 

 

 

AI-1

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