Document:

Exhibit 10.3

 

Execution Copy

 

JOINDER AGREEMENT

 

This JOINDER AGREEMENT, dated June 28, 2013 (this “Joinder Agreement”) is delivered by 2012-B PROPERTY HOLDINGS LLC (“2012-B Property Holdings”), Desert Chill LLC (“Desert Chill”), Polar Cactus LLC (“Polar Cactus”), Polar Cactus II LLC (“Polar Cactus II”), Polar Cactus III LLC (“Polar Cactus III”), Resi II LLC (“Resi II”) and Arctic Citrus LLC (“Arctic Citrus” and together with 2012-B Property Holdings, Desert Chill, Polar Cactus, Polar Cactus II, Polar Cactus III and Resi II, the “New Borrowers”) to Bank of America, National Association, as agent for each Lender (the “Agent”), pursuant to that certain Revolving Credit Agreement, dated as of May 10, 2013 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Silver Bay Operating Partnership L.P., as the Master Property Manager, SB Financing Trust Owner LLC, as representative for all of the Borrowers (in such capacity, the “Borrower Representative”), the borrowers party thereto from time to time (the “Borrowers”), U.S. Bank National Association, as Calculation Agent and as Paying Agent, Bank of America, National Association as Joint Lead Arranger, as a Lender and as agent for each Lender, JPMorgan Chase Bank, National Association, as Joint Lead Arranger and a Lender and each Lender party thereto from time to time (the “Lender”); the terms defined therein and not otherwise defined herein being used herein as defined in the Credit Agreement).

 

Section 1.                                          Pursuant to Section 2.2(f) of the Credit Agreement, the New Borrowers hereby:

 

(1)                                 agree that this Joinder Agreement may be attached to the Credit Agreement and that by the execution and delivery hereof, the New Borrowers hereby each accept the duties and responsibilities of a Borrower under the Credit Agreement and the other Loan Documents, and agree to assume the duties and be bound by each of the obligations of a Borrower and are each hereby made a party to, and a Borrower under, the Credit Agreement and the other Loan Documents.

 

(2)                                 make each of the representations and warranties made by the Borrowers under the Credit Agreement and each other Loan Document, as if each such representation or warranty was set forth herein, mutatis mutandis.

 

(3)                                 make each of the covenants and agreements made by the Borrowers under the Credit Agreement and each other Loan Document, as if each such covenant was set forth herein, mutatis mutandis.

 

(4)                                 certify that no event has occurred or is continuing as of the date hereof, or will result from the transactions contemplated hereby, that would constitute an Event of Default or a Default;

 

(5)                                 (a) agree that each of the undersigned will comply with all the terms and conditions of the Credit Agreement as they were each an original signatory thereto and (b) agree to provide to each Lender such all such documents, instruments, agreements, and certificates required by such Lender in connection with each New Borrower’s execution of this Joinder Agreement.

 

 

Section 2.                                          Effective as of the date hereof, the Agent, on behalf of each Lender, hereby consents to this Joinder Agreement and the New Borrowers each becoming a “Borrower” under the Loan Documents.

 

Section 3.                                          This Joinder Agreement shall become effective on the first date on which the New Borrowers shall have delivered to the Agent the following documents and instruments, all of which shall be in form and substance acceptable to the Agent:

 

(a)                                 This Joinder Agreement, duly executed by an authorized officer of each New Borrower and each of the Guarantors.

 

(b)                                 An amendment to the Account Control Agreement, duly executed by an authorized officer of each New Borrower and each of the other parties thereto, pursuant to which each New Borrower becomes a party thereto.

 

(c)                                  An amendment to the Deposit Account Control Agreement relating to the Loan Account, duly executed by an authorized officer of each New Borrower and each of the other parties thereto, pursuant to which each New Borrower becomes a party thereto.

 

(d)                                 Original executed copies of the favorable written opinions of Orrick, Herrington & Sutcliffe LLP and/or Richards, Layton & Finger, P.A., counsel for the New Borrowers, as to such matters as the Agent may reasonably request, dated as of the date hereof and otherwise in form and substance reasonably satisfactory to the Agent (and the New Borrowers hereby instruct such counsel to deliver such opinions to the Agent).

 

(e)                                  A certificate of the secretary, assistant secretary or senior officer of each New Borrower certifying as to the incumbency and genuineness of the signature of each officer of such New Borrower executing this Joinder Agreement and certifying that attached thereto is a true, correct and complete copy of (A) the certificate of formation or comparable Governing Documents, if any, of such New Borrower and all amendments thereto, certified as of a recent date by the appropriate Governmental Authority in such New Borrower’s jurisdiction of organization, (B) the Governing Documents of such New Borrower as in effect on the date of such certifications, (C) resolutions duly adopted by the board of directors or comparable governing body the Borrower Representative authorizing, as applicable, the transactions contemplated hereunder and the execution, delivery and performance of this Joinder Agreement, the Credit Agreement and the other Loan Documents, and (D) certificates as of a recent date of the good standing or active status, as applicable, of such New Borrower under the laws of its jurisdiction of organization and short-form certificates as of a recent date of the good standing of such New Borrower under the laws of each other jurisdiction where such New Borrower is qualified to do business and where a failure to be so qualified could reasonably be expected to have a Material Adverse Effect.

 

(f)                                   Each New Borrower shall be a limited liability company and shall have provided to the Agent the executed and delivered Governing Document of such New Borrower, in form and substance satisfactory to the Agent, which shall provide that such New Borrower is subject to the SPE Requirements.

 

 

(g)                                  Any documents (including, without limitation, financing statements) required to be filed, registered or recorded in order to create, in favor of the Agent, for the benefit of the Secured Parties, a perfected, first-priority security interest in the Collateral related to each New Borrower, subject to no Liens other than those created hereunder, shall have been properly prepared and executed for filing (including the applicable county(ies) if the Agent determines such filings are necessary in its sole discretion), registration or recording in each office in each jurisdiction in which such filings, registrations and recordations are required to perfect such first-priority security interest.

 

(h)                                 The Pledged Security related to each New Borrower and such instruments of assignment acceptable to the Agent duly executed in blank by the Trust Guarantor as are required to effect the transfer each Pledged Security.

 

(i)                                     Evidence in form and substance satisfactory to Agent that it has a first priority perfected security interest in the Pledged Security related to each New Borrower in accordance with the terms of the Loan Documents subject to no other Liens.

 

(j)                                    All other documents, certificates, resolutions, instruments and agreements as the Agent deems reasonably necessary in connection with this Joinder Agreement and by the other Loan Documents, including without limitation, each of the documents, certificates and opinions described in Article 3 of the Credit Agreement, in each case to the extent not previously executed and/or delivered by the New Borrowers.

 

Section 4.                                          Each of the undersigned agrees from time to time, upon request of the Agent, to take such additional actions and to execute and deliver such additional documents and instruments as the Agent may reasonably request to effect the transactions contemplated by, and to carry out the intent of, this Joinder Agreement.  Neither this Joinder Agreement nor any term hereof may be changed, waived, discharged or terminated, except by an instrument in writing signed by the Agent.  Any notice or other communication herein required or permitted to be given shall be given in pursuant to Section 13.5 of the Credit Agreement, and all for purposes thereof, the notice address of the undersigned shall be the address as set forth on the signature page hereof.  In case any provision in or obligation under this Joinder Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

Section 5.                                          THIS JOINDER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THEREOF.

 

[remainder of page intentionally blank]

 

 

IN WITNESS WHEREOF, the undersigned have caused this Joinder Agreement to be duly executed and delivered by its duly authorized officer as of the date above first written.

 

 

	
 
    	
2012-B PROPERTY HOLDINGS LLC,
    
	
 
    	
POLAR CACTUS LLC,
    
	
 
    	
POLAR CACTUS II LLC,
    
	
 
    	
POLAR CACTUS III LLC,
    
	
 
    	
ARCTIC CITRUS LLC,
    
	
 
    	
DESERT CHILL LLC, and
    
	
 
    	
RESI II LLC,
    
	
 
    	
each a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: SB FINANCING TRUST OWNER LLC, a
    
	
 
    	
Delaware limited liability company,
    
	
 
    	
Manager
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christine Battist
    
	
 
    	
 
    	
Name: Christine Battist
    
	
 
    	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
 
    
	
 
    	
 
    	
c/o SB Financing Trust Owner LLC
    
	
 
    	
 
    	
601 Carlson Parkway, Suite 250, Room C-1
    
	
 
    	
 
    	
Minnetonka, MN 55305
    
	
 
    	
 
    	
Attention: Legal Department
    
	
 
    	
 
    	
legal@silverbaymgmt.com
    

 

 

	
ACKNOWLEDGED AND ACCEPTED,
    	
 
    
	
as of the date above first written:
    	
 
    
	
 
    	
 
    
	
BANK OF AMERICA, NATIONAL   ASSOCIATION,
    	
 
    
	
as the Agent
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   J. Craig Weakley
    	
 
    
	
Name:
    	
J.   Craig Weakley
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

[Signatures continue]

 

[Signature Page to Joinder]

 

 

	
SB FINANCING TRUST OWNER LLC,
    	
 
    
	
a Delaware limited liability company,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Christine Battist
    	
 
    
	
 
    	
Christine Battist,
    	
 
    
	
 
    	
Chief Financial Officer
    	
 
    
	
 
    	
 
    
	
SB FINANCING TRUST,
    	
 
    
	
a Delaware Statutory Trust,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    
	
By:
    	
SB Financing Trust Owner LLC,
    	
 
    
	
 
    	
a Delaware limited liability company,
    	
 
    
	
 
    	
its Administrator
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christine Battist
    	
 
    
	
 
    	
Christine Battist,
    	
 
    
	
 
    	
Chief Financial Officer
    	
 
    
	
 
    	
 
    
	
SILVER BAY OPERATING   PARTNERSHIP L.P.,
    	
 
    
	
a Delaware limited partnership,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    
	
By:
    	
Silver Bay Management LLC,
    	
 
    
	
 
    	
a Delaware limited liability company,
    	
 
    
	
 
    	
its general partner
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Silver Bay Realty Trust Corp.,
    	
 
    
	
 
    	
a Maryland corporation
    	
 
    
	
 
    	
its sole member
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christine Battist
    	
 
    
	
 
    	
Christine Battist,
    	
 
    
	
 
    	
Chief Financial Officer
    	
 
    
	
 
    	
 
    
	
SILVER BAY REALTY TRUST CORP.,
    	
 
    
	
a Maryland corporation,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Christine Battist
    	
 
    
	
 
    	
Christine Battist,
    	
 
    
	
 
    	
Chief Financial Officer
    	
 
    

 

[End of Signatures]

 

[Signature Page to Joinder]Exhibit 10.6

 

SILVER BAY REALTY TRUST CORP.

 

AMENDED AND RESTATED DIRECTOR COMPENSATION POLICY

 

Effective as of May 22, 2013 the independent directors of Silver Bay Really Trust Corp, a Maryland corporation (the “Company”), shall receive the following compensation for their service as a member of the Board of Directors (the “Board”) of the Company:

 

Director Fees

 

We will pay director fees only to those members of our Board, who are independent under the listing standards of the New York Stock Exchange.  In addition, directors who are affiliated with Pine River Capital Management LLC and its affiliates, or Provident Real Estate Advisors LLC and its affiliates, will not be entitled to director fees.

 

Our goal is to provide compensation for our independent directors in a manner that enables us to attract and retain outstanding director candidates and reflects the substantial time commitment necessary to oversee the Company’s affairs.  We also seek to align the interest of our directors and our stockholders and we have chosen to do so by compensating our directors with a mix of cash and equity-based compensation.  As a result, each independent director will receive an annual fee of $100,000 for board service; each chair of the Audit, Compensation and Nominating and Corporate Governance committees will receive an additional fee of $15,000 and our Lead Independent Director will receive an additional fee of $10,000.  The annual board fee shall be payable half in cash and half in restricted stock and the annual chair fees and Lead Independent  Director fees, shall be payable in cash as set forth below.

 

Cash Fees and Retainers

 

Board Members

 

Each independent director shall be entitled to an annual cash retainer of $50,000 (the “Annual Cash Retainer”), payable quarterly in arrears as set forth below.

 

Committee Chairs and Lead Independent Director

 

In addition to the Annual Cash Retainer, an independent director who serves as Chair of the Company’s Audit, Compensation and Nominating and Corporate Governance Committee or as the Lead Independent Director shall be entitled to an additional annual cash retainer equal to $15,000 (in the case of the Chair of the standing board committees) or $10,000 (in the case of the Lead Independent Director) (collectively, the “Annual Chair/Lead Director Cash Retainers”).  These additional cash retainers shall be payable quarterly in arrears as set forth below.

 

Payment of Cash Retainers

 

The Company shall pay the Annual Cash Retainers and the Annual Chair/Lead Director Cash Retainers on a quarterly basis in arrears, subject to the director’s continued service to the Company as an independent director, Chair of the Audit, Compensation or Nominating and Corporate Governance Committee or Lead Independent Director, as applicable, on the last day of the preceding quarter. Such cash amounts shall be prorated in the case of service for less than the entire quarter.

 

 

Equity Awards and Equity Retainers

 

Initial Award for New Directors

 

On the date a new independent director becomes a member of the Board, each such independent director shall automatically receive an award of restricted stock having a Fair Market Value on the date of grant (as defined in the Company’s 2012 Equity Incentive Plan (the “Plan”)) equal to the difference of (1) $50,000 minus (2) the product of (i) $50,000 multiplied by (ii) a fraction, the numerator of which is the number of days that have elapsed since the last annual meeting of stockholders and the denominator of which is 365 (an “Initial Award”).  The Initial Award shall vest as to all of such shares on the date immediately preceding the date of the next annual meeting of the Company’s stockholders, subject to the director’s continued board service through such vesting date.

 

Annual Equity Retainer for Continuing Board Members

 

Each continuing independent director shall automatically receive an annual equity retainer in the form of an award of restricted stock having a Fair Market Value of $50,000 on the date of grant (an “Annual Equity Retainer”), with the date of such award to be the date of each Company annual meeting of stockholders. The Annual Equity Retainer for such independent directors shall vest as to all of such shares on the earlier of (i) the one year anniversary of the date of grant and (ii) the date immediately preceding the date of the annual meeting of the Company’s stockholders for the year following the year of grant for the award, subject in each case, to the independent director’s continued service to the Company through the vesting date.

 

Provisions Applicable to All Equity Awards

 

The Annual Equity Retainers and the Additional Equity Retainers shall be subject to the terms and conditions of the Plan and the terms of the Restricted Stock Agreements entered into between the Company and each director in connection with such awards.  The number of shares subject to issuance for a restricted stock award is determined based on (x) the dollar amount of the award listed above divided by (y) the Fair Market Value of our common stock on the date of grant.  Furthermore, all vesting for any such awards to Board members shall terminate, and all such awards shall be fully vested, upon a “Change of Control” as defined in the Plan.

 

Additional Compensation for Independent Directors at Time of IPO

 

As additional compensation and in recognition of the additional work involved as independent directors of a newly public company, each independent director at the time of the Company’s initial public offering will receive an additional payment for their first year of board service as follows:  (1) a cash payment of $25,000 which shall be paid on the date of the first annual meeting of stockholders of the Company, subject to the independent director’s continued service to the Company through the date of such meeting, and (2) an additional award of restricted stock having a Fair Market Value of $25,000 on the date of the first annual meeting of stockholders of the Company, which shares shall vest immediately.

 

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