Document:

Newcastle
Investment Corp. 10-Q

 

Exhibit 10.33

 

EXECUTION COPY

 

SALE AND COOPERATION
AGREEMENT

SALE AND COOPERATION
AGREEMENT, dated as of September 7, 2012 (this “Agreement”), among Newcastle Investment Corp. (the “Seller”),
a corporation organized under the laws of the State of Maryland, Barclays Bank PLC, a public limited company registered in England
and Wales (the “Purchaser”), and ED LIMITED, an exempted company incorporated in the Cayman Islands with limited
liability (“EDL”).

WHEREAS, Newcastle
CDO X, Limited, an exempted company with limited liability organized and existing under the laws of the Cayman Islands, as issuer
(in such capacity, the “Issuer”), Newcastle CDO X LLC, a limited liability company formed under the laws of
the State of Delaware, as co-issuer (in such capacity, the “Co-Issuer”), and U.S. Bank National Association
(successor to Bank of America, N.A. (successor by merger to LaSalle Bank National Association)) (“U.S. Bank”),
as trustee (in such capacity, the “Trustee”), are parties to that certain Indenture, dated as of July 20, 2007
(the “Indenture”);

WHEREAS, the Issuer
and U.S. Bank, as paying agent, transfer agent and registrar with respect to the Preferred Shares issued by the Issuer (in such
capacities, the “PS Paying Agent”, “PS Transfer Agent” and “Share Registrar”,
respectively), are parties to that certain Preferred Share Paying and Transfer Agency Agreement, dated as of July 20, 2007 (the
“PS Paying and Transfer Agency Agreement”);

  

WHEREAS, the Seller acts
as collateral manager (in such capacity, the “Collateral Manager”) under the Indenture pursuant to that certain
Collateral Management Agreement, dated as of July 20, 2007 (the “CMA”), between the Issuer and the Collateral
Manager;

WHEREAS, the Seller
owns (a) 62,500 Preferred Shares (the “Preferred Shares”) and (through its indirect wholly-owned subsidiary
Newcastle CDO X Holdings LLC (“Holdings”)) 1,000 Ordinary Shares (the “Ordinary Shares”)
of the Issuer issued on the terms and provisions set forth in the Issuer’s Amended and Restated Memorandum and Articles of
Association, certain resolutions of the directors of the Issuer approving the issue of the Preferred Shares and the Ordinary Shares
as memorialized in the board minutes relating thereto and (in the case of the Preferred Shares) in the PS Paying and Transfer Agency
Agreement; (b) 100% of the membership interests in the Co-Issuer issued on the terms and provisions set forth in the Co-Issuer’s
Limited Liability Company Agreement (the “Membership Interest” and together with the Ordinary Shares and the
Preferred Shares, the “EDL Securities”) and (c) the following securities issued under the Indenture: (i) $30,000,000
Aggregate Outstanding Amount of the Class A-3 Floating Rate Notes Due 2052, (ii) $32,250,000 Aggregate Outstanding Amount of the
Class C Deferrable Floating Rate Notes Due 2052, (iii) $13,500,000 Aggregate Outstanding Amount of the Class E Deferrable Floating
Rate Notes Due 2052, and (iv) $14,000,000 Aggregate Outstanding Amount of the Class F Deferrable Fixed Rate Notes Due 2052 (the
“Class F Notes”, and together with the Preferred Shares, the Ordinary Shares and the Membership Interest, the
“Non-DTC Securities”) (the securities described in clause (c), collectively, the “Barclays Securities”)
(the securities and interests described in clauses (a) through (c), collectively, the “Newcastle-Owned Securities”);

 

    	

    	 

    

WHEREAS, pursuant
to Section 12.1(d) of the Indenture, EDL wishes to deliver the Preferred Shares and the Purchaser and/or its Affiliates wish to
deliver the Notes, in each case to the Trustee and/or the Note Registrar for cancellation, in exchange for the transfer to EDL
of a specified amount of cash and the transfer to the Purchaser and/or its Affiliates of the Collateral Debt Securities (other
than the Retained Securities (as defined below)) and Equity Securities (if any) and (subject to retention by the Trustee of an
amount necessary to pay certain expenses) any remaining cash then held by or on behalf of the Issuer (the “12.1(d) Liquidation”);
and

WHEREAS, following
the acquisition by the Purchaser of the entire Aggregate Outstanding Amount of the Class A-2 Notes from a third party (the “Class
A-2 Acquisition”), subject to the terms of this Agreement and in order to fully realize its objectives, the Purchaser
wishes to purchase from the Seller the Barclays Securities, and EDL wishes to purchase from the Seller the EDL Securities, and
the Seller wishes to sell to (x) the Purchaser 100% of the Barclays Securities and (y) to EDL 100% of the EDL Securities; and

WHEREAS, the Seller
wishes to acquire the Collateral Debt Securities set forth on Schedule A hereto (the “Retained Securities”).

NOW, THEREFORE, in
exchange for the covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

Section 1.               
Definitions. Capitalized terms not defined herein shall have the meanings ascribed to such terms in the Indenture.

(a)               
“Trade Date” means one (1) Business Day following the Purchaser’s delivery to the Seller of written
notice confirming the consummation by the Purchaser of the Class A-2 Acquisition and its and EDL’s desire to consummate the
transactions contemplated herein (the “Trigger Notice”); provided, for the avoidance of doubt, that if
the Purchaser fails to deliver the Trigger Notice on or before September 14, 2012 (or such later date as is mutually agreed to
in writing by Seller, the Purchaser and EDL), then the transactions described in Section 2(b) shall not occur.

(b)              
“Settlement Date” means (i) the date that is three (3) Business Days after the Trade Date; (ii) such
other date determined in the sole discretion of the Seller and notified to the Purchaser and EDL by the Seller, provided
that such date is no later than the sixth (6th) Business Day after the Trade Date; or (iii) in the event that any of the Retained
Securities cannot be settled, through no fault of the Seller, on or prior to the sixth (6th) Business Day after the Trade Date,
then the next Business Day, as mutually determined by the parties, on which the settlement of all of the Retained Securities is
reasonably practicable.

Section 2.               
Purchase and Sale of the Retained Securities and the Newcastle-Owned Securities.

(a)               
On the Trade Date, the Seller, in its capacity as Collateral Manager, shall cause the Issuer to sell, and the Seller (or
an Affiliate thereof) shall purchase for settlement on

 

    	2

    	 

    

the
Settlement Date, the Retained Securities for a purchase price equal to (x) the aggregate outstanding principal balance of the
Retained Securities as of the Settlement Date multiplied by (y) 49.37% (the “Retained Securities Purchase Price”).
The Seller shall pay the Retained Securities Purchase Price to the Issuer on the Settlement Date against delivery of the Retained
Securities by the Issuer to, or at the direction of, the Seller on the Settlement Date.

(B)               
On the Trade Date, the Seller hereby agrees (subject to the last sentence of this Section 2(b)) to sell, transfer, assign,
deliver and convey (or, in the case of the Ordinary Shares, cause Holdings to sell, transfer, assign, deliver and convey) to the
Purchaser (or its designated Affiliate(s) (in the case of the Barclays Securities) and EDL (in the case of the EDL Securities),
and the Purchaser (in the case of the Barclays Securities) and EDL (in the case of the EDL Securities) agree to purchase, for settlement
on the Settlement Date, all of the Seller’s (or, in the case of the Ordinary Shares, Holdings’s) right, title and interest
in, to and under the Barclays Securities and the EDL Securities, as applicable (such that immediately following such sale, transfer,
delivery and assignment the Purchaser and/or its designated Affiliates shall be the Holders of 100% of the Barclays Securities
and EDL shall be the Holder of 100% of the EDL Securities), in exchange for payment (i) by the Purchaser (or its designated Affiliate(s))
of an aggregate amount in respect of the Barclays Securities equal to $130,000,000 (the “Barclays Securities Purchase
Price”) and (ii) by EDL of an aggregate amount in respect of the EDL Securities equal to $1,000 (the “EDL Securities
Purchase Price”). The Purchaser shall pay the Barclays Securities Purchase Price and EDL shall pay the EDL Securities
Purchase Price, in each case on the Settlement Date against delivery by the Seller (x) to the Purchaser or one or more of its Affiliates
of the Barclays Securities and (y) to EDL of the EDL Securities, as applicable, in each case on the Settlement Date; provided
in each case that such delivery shall be made after receipt by the Seller of all Retained Securities in accordance with Section
2(a). The Seller and the Purchaser agree that the portion of the Barclays Securities Purchase Price equal to $5,000,000 represents
a transaction advisory fee paid by the Purchaser to the Seller. In the event that either the Purchaser or EDL does not purchase
the Barclays Securities or the EDL Securities, as applicable, the Seller shall not have any obligation to sell any Newcastle-Owned
Securities pursuant to this Section 2(b).

(c)              
The Purchaser and EDL shall, on or as soon as reasonably practicable after the Settlement Date, cause the 12.1(d) Liquidation
to occur.

(d)               
On or as soon as reasonably practicable after the Settlement Date, (i) the Purchaser and EDL shall cause the Issuer to enter
into an agreement with each Hedge Counterparty pursuant to which the Issuer and such Hedge Counterparty will agree to terminate
each Hedge Agreement (each, a “Hedge Termination Agreement”) and (ii) the Purchaser shall deliver a copy of
each Hedge Termination Agreement to the Seller. Prior to the transfer by the Trustee (on behalf of the Issuer) to the Purchaser
or any of its Affiliates of any Collateral Debt Securities or Equity Securities in connection with the 12.1(d) Liquidation (the
date of such transfer, the “Liquidation Date”), the Purchaser shall pay to the Trustee (on behalf of the Issuer)
an amount sufficient to enable the Trustee to pay (on behalf of the Issuer) any termination payment (howsoever described) owed
by the Issuer to any Hedge Counterparty pursuant to each Hedge Termination Agreement. The parties hereto (x) acknowledge that pursuant
to the Hedge Termination Agreements, the Trustee shall (on behalf of the Issuer), within three (3) Business Days following the
Liquidation Date, pay any termination payment (howsoever described) owed

    	3

    	 

    
 

by
the Issuer to any Hedge Counterparty and (y) agree that the Purchaser shall deliver to the Seller reasonably satisfactory confirmation
of any such payment.

                                (e)              
The Purchaser shall indemnify and hold harmless the Seller, FIG LLC (the Seller’s “Manager”),
and any Affiliate, employee, director or officer of the Seller or its Manager (each, an “Indemnified Party”)
from and against any claims, losses, damages, penalties, fines, forfeitures, judgments, costs and expenses (including reasonable
legal fees and expenses) (collectively “Claims”) incurred by such Indemnified Party relating to or arising
out of any dispute relating to the termination of any Hedge Agreement or the calculation, payment or non-payment of any termination
payment (howsoever described) thereunder.

(f)              
All transactions contemplated by this Section 2 (other than the purchase and sale of the Non-DTC Securities) shall, to the
extent possible, be effected through the book-entry systems of DTC.

Section 3.               
Consent and Cooperation. (a) In connection with the transactions contemplated hereunder, the Seller, in its capacity
as Collateral Manager, hereby agrees:

(i) to take
the following actions upon direction from the Purchaser or, as applicable, from EDL, at any time after the Trade Date:

(x) to
consent to the termination of one or more Transaction Documents, provided that no such consent shall be effective until
the receipt of the Retained Securities and no termination shall occur until after the occurrence of the 12.1(d) Liquidation (other
than the termination of each Hedge Agreement, which may be terminated earlier in accordance with Section 2(d));

(y) to
provide (to the extent in the possession of the Seller) to the Purchaser any underlying documents, offering documents and investor
reports relating to the Collateral Debt Securities (other than the Retained Securities) and Equity Securities; and

(ii) to take
the following actions upon direction from the Purchaser or, as applicable, from EDL, at any time after the Settlement Date: to
execute any and all reasonably necessary supplementary documents, and to take all additional steps or actions which may be reasonably
necessary or appropriate in order to give full force and effect to the 12.1(d) Liquidation and the transactions contemplated by
Section 2 hereof.

The Purchaser
and EDL agree that any costs or expenses associated with the actions contemplated pursuant to this Section 3(a) shall be paid by
the Purchaser.

(b)              
The Seller hereby (i) represents and warrants to the Purchaser that the Issuer is an entity over which it has the authority
to direct investment decisions and is the Holder of $22,000,000 Aggregate Outstanding Amount of the Class D Notes and (ii) agrees
that it shall not, and shall not permit the Issuer to, (x) sell or dispose of the Class D Notes (or any voting rights or other
interest therein) without the prior written consent of the Purchaser or (y) exercise any voting or other rights in respect of the
Class D Notes other than with the prior written consent of the Purchaser (such consent not to be unreasonably withheld, conditioned
or delayed).

 

    	4

    	 

    

(c)               
The Seller hereby agrees that from the Settlement Date until such time as the Non-DTC Securities are registered in the name
of the Purchaser or one or more of its Affiliates (in the case of Non-DTC Securities that are also Barclays Securities) or EDL
(in the case of Non-DTC Securities that are also EDL Securities), (i) to the extent the Seller actually receives any amounts in
its capacity as registered holder of such Non-DTC Securities, it shall promptly notify the Purchaser (in the case of Non-DTC Securities
that are also Barclays Securities) or EDL (in the case of Non-DTC Securities that are also EDL Securities) of the same and deliver
such amounts to or at the direction of the Purchaser (in the case of Non-DTC Securities that are also Barclays Securities) or EDL
(in the case of Non-DTC Securities that are also EDL Securities); and (ii) it shall exercise any voting or other rights in respect
of the Non-DTC Securities only at the written direction of the Purchaser (in the case of Non-DTC Securities that are also Barclays
Securities) or EDL (in the case of Non-DTC Securities that are also EDL Securities) (such consent not to be unreasonably withheld,
conditioned or delayed).

Section 4.               
Representations and Warranties. Each of the Purchaser, EDL and the Seller hereby represents and warrants that: (a)
it has been duly formed and is validly existing in good standing under the laws of the jurisdiction of its formation and has requisite
power and authority to enter into and perform its obligations under this Agreement and to perform its obligations hereunder; (b)
this Agreement has been duly authorized, executed and delivered by it and is a valid and binding agreement, enforceable in accordance
with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles; (c) its execution,
delivery, and performance of this Agreement will not result in a breach of any provision of (i) its organizational documents, (ii)
any statute, law, writ, order, rule, or regulation of any governmental authority applicable to it, (iii) any judgment, injunction,
decree or determination applicable to it, or (iv) any contract, indenture, mortgage, loan agreement, note, lease, or other instrument
by which it may be bound or to which any of its assets are subject; and (d) (i) it (or, solely with respect to the sale of the
Ordinary Shares, Holdings) is a sophisticated seller or purchaser, as applicable, with respect to the sale and purchase of the
Newcastle-Owned Securities which it is purchasing or selling in accordance with the terms of this Agreement and (ii) it has independently
and without reliance upon the other party, and based on such information as it deemed appropriate, made its own analysis and decision
to enter into this Agreement. Each party acknowledges that the other party has not given it any investment advice, credit information,
or opinion on whether the sale and purchase of Newcastle-Owned Securities are prudent. The Seller hereby further represents and
warrants that it or, in the case of the Ordinary Shares, Holdings, (x) owns all right, title and interest to the Newcastle-Owned
Securities, having good and marketable title thereto, free and clear of any lien or other encumbrance; and (y) has the full right
and lawful power and authority to transfer, assign, deliver and convey ownership of the Barclays Securities to the Purchaser (and/or
its designated Affiliate(s)) and the EDL Securities to EDL, in each case free and clear of all liens and encumbrances. The Purchaser
represents and warrants that it is a Qualified Institutional Buyer and a Qualified Purchaser and that it shall comply with the
restrictions on transfer of the Barclays Securities set forth in the Indenture. EDL represents and warrants that it is a non-U.S.
Person (as defined in Regulation S) and that it shall comply with the restrictions on transfer of the EDL Securities set forth
in the PS Paying and Transfer Agency Agreement.

 

    	5

    	 

    

Section 5.               
Confidentiality. Each party agrees not to divulge or communicate to any person or entity, in whole or in part, any
information regarding or concerning this Agreement or the matters set forth herein (“Confidential Information”)
without the prior written consent of the other party; provided, however, that each party may disclose Confidential
Information (a) to its Affiliates, members, officers, directors, employees or agents, (b) to its legal counsel or other professional
advisors (it being understood, in the case of clauses (a) and (b) of this Section 5, that (i) the persons to whom such disclosure
is made will be informed of the confidential nature of such Confidential Information and will agree to keep such Confidential Information
confidential pursuant to the terms of this Section 5 and (ii) the applicable disclosing party shall be liable for any breach of
this Section 5 by such persons), (c) where required by law or regulation or where required or requested by any court of competent
jurisdiction or any competent judicial, governmental, supervisory or regulatory body or (d) where such Confidential Information
was or becomes generally available publicly other than through a breach by such party of this Section 5.

In the event
the Seller intends to file this Agreement (or any summary hereof) with any regulatory or similar body pursuant to clause (c) above,
the Seller hereby covenants and agrees to provide the Purchaser a draft of such filing no less than three (3) days prior to the
date such filing is to be made. The Seller shall consider, in a commercially reasonable manner, any revisions to such filing reasonably
requested by the Purchaser, provided that the final decision regarding the contents of the filing shall be made by
the Seller.

Section 6.               
GOVERNING LAW; Jurisdiction; Waiver of Jury Trial. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR
DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT (WHETHER IN CONTRACT, TORT OR OTHERWISE) SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ANY CHOICE OF LAW RULES THAT WOULD RESULT IN THE APPLICATION
OF THE LAW OF ANY OTHER JURISDICTION. With respect to any suit, action, or other proceeding relating to this Agreement (each,
a “Proceeding”), each party irrevocably (a) submits
to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough
of Manhattan in New York City, and (b) waives any objection which it may have at any time to the laying of venue of any Proceedings
brought in any such court, waives any claim that such Proceedings have been brought in an inconvenient forum and further waives
the right to object, with respect to such Proceedings, that such court does not have jurisdiction over such party. Nothing in this
Agreement precludes a party from bringing Proceedings in any other jurisdiction nor will the bringing of Proceedings in any one
or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction. Each party hereby irrevocably waives any
and all right to trial by jury in any Proceedings.

Section 7.               
Miscellaneous. Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned,
delegated, waived or modified by either party hereto without the prior written consent of the other party hereto. Neither this
Agreement nor the performance by either party hereunder shall be construed to create a joint venture or partnership between the
parties. In the event any one or more of the provisions in this Agreement is held invalid, illegal, or unenforceable in any respect
under the law of any jurisdiction, the validity, legality, and enforceability of the remaining provisions under the law of such
jurisdiction, and

 

    	6

    	 

    

the
validity, legality, and enforceability of such and any other provisions under the law of any other jurisdiction, shall not in
any way be affected or impaired thereby. Each of the parties acknowledges and agrees that the other party would be damaged irreparably
in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are
breached, and agrees that the other party shall be entitled to an injunction or injunctions to prevent breaches of the provisions
of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any
court of the United States or any state thereof having jurisdiction over the parties and the matter, in addition to any other
remedy to which they may be entitled, at law or in equity. This Agreement constitutes the entire agreement of the parties to this
Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with
respect to the subject matter hereof. This Agreement may be executed in two or more counterparts, each one of which shall be deemed
an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed
counterpart of a signature page of this Agreement in Portable Document Format (PDF) (or analogous electronic scan) or by facsimile
transmission shall be effective as delivery of a manually executed original counterpart of this Agreement.

Section 8.               
Notices. Any notice or other communication in respect of this Agreement may be given to (i) the Seller at Newcastle
Investment Corp., 1345 Avenue of the Americas, New York, NY 10105, Attention: Brian Sigman, Facsimile: (212) 798-6060, Email: bsigman@fortress.com,
(ii) the Purchaser at Barclays Bank PLC, 745 Seventh Avenue, New York, New York 10019, Attention: Jaime Aldama and Ben Turrell,
Facsimile: (212) 548-9088, (646) 758-2751, Email: jaime.aldama@barclays.com, ben.turrell@barclays.com, and (iii) EDL at ED LIMITED,
Walker House, 87 Mary Street, George Town, Grand Cayman KY1-9002, Cayman Islands, Attention: Richard Ruffer, Facsimile: (345) 945-4757,
Email: richard.ruffer@intertrustgroup.com, in each case in any manner described below, and shall be deemed effective as indicated:

      (i)               
if in writing and delivered in person or by courier, on the date it is delivered; 

               (ii)               
if sent by facsimile transmission, on the date it is received by a responsible employee of the recipient in legible form
(it being agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated
by the sender’s facsimile machine);

              (iii)               
if sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), on the date
it is delivered; or

              (iv)               
if sent by e-mail, on the date it is delivered, unless the date of that delivery (or attempted delivery) or that receipt,
as applicable, is not a Business Day or that communication is delivered (or attempted) or received, as applicable, after the close
of business on a Business Day, in which case that communication will be deemed given and effective on the first following day
that is a Business Day.

 

    	7

    	 

    

Section 9.           
Termination of Newcastle CDO X Transaction. As soon as reasonably practicable after the occurrence of the Section
12.1(d) Liquidation, and subject to the Purchaser’s and EDL’s obligations under Section 2(d), the Purchaser and EDL
shall use commercially reasonable efforts to cause the termination of the Transaction Documents. The Seller agrees to cooperate
in a commercially reasonable manner with the Purchaser and EDL in connection therewith.

Section 10.           
Tax Analysis. The Seller currently treats each of the Issuer and the Co-Issuer as disregarded entities of the Seller
for U.S. federal income tax purposes, and thus the transactions contemplated hereby are intended to be treated as a sale by the
Seller of the assets (other than the Retained Securities) owned by the Issuer and Co-Issuer. The Purchaser and EDL are purchasing
all of the outstanding interests in the Issuer and Co-Issuer (as applicable) not already owned by the Purchaser or EDL. Each of
the Purchaser and EDL acknowledges that it is analyzing the tax consequences of the transactions and not relying on the Seller
for any tax analysis and thus the Seller shall not be responsible for any tax liability of the Purchaser or EDL resulting from
this Agreement.

Section 11.           
Termination of Agreement. If the Purchaser fails to deliver the Trigger Notice on or before September 14, 2012 (or
such later date as is mutually agreed to in writing by Seller, the Purchaser and EDL), this agreement and all rights and obligations
of the parties hereunder (including, without limitation, the obligations of the Seller pursuant to Section 2 and Section 3 hereof)
shall automatically terminate and shall cease to be of any further force or effect, other than the rights and obligations of the
Seller, the Purchaser and EDL pursuant to Section 5, which rights and obligations shall survive termination of this agreement.

Section 12.           
Release. Each of the Purchaser, EDL and each of their respective Affiliates forever releases the Seller, its
Manager and its Affiliates, and their respective officers, directors, employees and agents from any and all Claims that it
may have by reason of any matter arising prior to the date of this Agreement and relating to any actions taken or not taken by
the Seller in connection with the CMA, the Indenture or the other Transaction Documents.

[SIGNATURE PAGES
FOLLOW]

 

    	8

    	 

    

IN WITNESS WHEREOF,
each of the undersigned has caused this Agreement to be duly executed and delivered to the other as of the date first above written. 

	 	 

NEWCASTLE
INVESTMENT CORP.

By:   /s/
Brian Sigman                                                 

Name: Brian Sigman

Title: Chief Financial Officer

 

BARCLAYS
BANK PLC

 

By:/s/
Jamie Aldama                                                   

Name: Jamie Aldama

Title: Managing Director

 

ED
LIMITED

 

By:/s/ Richard Ruffer                                                 

Name: Richard Ruffer

Title: Director

	

[SALE
AND COOPERATION AGREEMENT]

    	

    	 

    

SCHEDULE A

RETAINED SECURITIES

The Retained Securities Purchase Price is equal to (x) the aggregate
outstanding principal balance of the Retained Securities as of the Settlement Date multiplied by (y) 49.37%.

  

	CUSIP	Name	
        Original Principal Balance

        (USD)
	Approximate Current Outstanding Principal Balance as of the date hereof (USD)
	BL0117699	Gatehouse Media Add-On T/L	$10,250,000	
        $10,092,500

	BL0101370	Gatehouse Media T/L DD	$19,000,000	
        $18,708,049

	65106AAA1	NCMT 2004-1 A	$452,834,909	     $32,764,021
	65106AAB9	NCMT 2004-1 M1	$9,760,000	       $3,914,078
	65106AAC7	NCMT 2004-1 M2	$6,463,000	       $2,591,873
	65106AAD5	NCMT 2004-1 M3	$3,878,000	       $1,555,204
	65106AAQ6	NCMT 2006-1 M3	$4,000,000	       $4,000,000
	65106CNU9	NEWCA 2005-6A IM LT	$59,652,011	
        $26,960,250

	 Total	 	$565,837,920	
        $100,585,975CLWR 09.30.2012 EX 10.1

Exhibit 10.1
CONFIDENTIAL TREATMENT REQUESTED UNDER
17 C.F.R. SECTIONS 200.80(b)(4), 200.83 AND 230.24b-2.
[*****] INDICATES OMITTED MATERIAL THAT IS THE
SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST
FILED SEPARATELY WITH THE COMMISSION.
THE OMITTED MATERIAL HAS BEEN FILED
SEPARATELY WITH THE COMMISSION.

August 2012 Clearwire / Sprint Amendment to the 4G MVNO Agreement
This August 2012 Clearwire / Sprint Amendment to the 4G MVNO Agreement (this “Amendment”), is dated as of the date the last Party signs this Amendment (the “August 2012 Amendment Effective Date”) and is entered into between Clearwire Communications LLC, a Delaware limited liability company (“Clearwire”), and Sprint Spectrum L.P., a Delaware limited liability partnership, d/b/a Sprint (“Sprint”).
BACKGROUND
A.Clearwire, Comcast MVNO II, LLC, LLC, TWC Wireless, LLC, BHN Spectrum Investments, and Sprint are parties to that certain 4G MVNO Agreement dated as of November 28, 2008 (the “4G MVNO Agreement”).

B.Section 17.15 of the 4G MVNO Agreement provides that Clearwire and Sprint may, from time to time, amend the terms of the 4G MVNO Agreement applicable as between Clearwire and Sprint.

C.In accordance with Section 17.15 of the 4G MVNO Agreement, Clearwire and Sprint wish to amend the terms of the 4G MVNO Agreement applicable between Clearwire and Sprint as provided hereunder.

NOW, THEREFORE, the 4G MVNO Agreement as between Clearwire and Sprint is amended as follows:
OPERATIVE TERMS

		
	1.
	Section 8.10 (LTE Obligations) of the 4G MVNO Agreement is deleted in its entirety and replaced with the following: 

		
	8.10
	LTE Obligations 

(a)    Sprint and Clearwire will collaborate on the LTE network design, operations, devices and economics in an effort to meet mutually agreed upon requirements based upon a TDD-LTE standard.  This will include collaboration on site selection and timing of site builds in developing a network build plan. The resulting network build plan will include mutually agreed upon locations for LTE macro-cell sites that cover designated Sprint high usage area “hotspots” (the “Hotspot Sites”).  With respect to RAN and core network equipment that is deployed as part of Clearwire's TDD-LTE network, Clearwire will include in its vendor agreements a process whereby the vendors, upon request, must meet the requirements for a “trusted delivery” model and other security requirements listed in Schedule 8.10(a) (“Trusted Delivery Process”). Upon Sprint's commercially reasonable request, Clearwire will implement the Trusted Delivery Process with respect to vendors identified by Sprint, it being agreed that if Sprint requests with respect to a vendor with which it has implemented the same or similar process such request will be deemed commercially reasonable. Clearwire will not be required to implement the Trusted Delivery Process for vendors that do not provide RAN or core network equipment to Clearwire, or who do provide RAN or core network equipment but such equipment is not deployed in Clearwire's TDD-LTE network.  Clearwire will provide Sprint with a quarterly report listing each vendor providing RAN and core network equipment for Clearwire's TDD-LTE network effective as of the date of each such report.  Upon Sprint's commercially reasonable request Clearwire will provide an Officer's certification that the quarterly report is accurate as of the date generated.  Sprint and Clearwire will collaborate on LTE design options that would allow for seamless hand-offs and service layer control that meet Sprint's customer experience requirements.

Confidential Information - Subject to Nondisclosure Obligations
1

(b)    [***]

(c)    The initial LTE release will be LTE Release 9 compliant and Clearwire will make commercially reasonable efforts to remain compliant with future LTE releases, including Release 10, to provide service parity with Sprint's LTE network design and operations, as well as a competitive LTE service offering for North America.  Clearwire will make reasonable efforts to stay current with their suppliers and with the US LTE industry on LTE releases.  Sprint is intending to offer advanced services across this LTE network, such as Push to talk, VoLTE, eCSFB, video, or other latency sensitive applications.  If any of the current Sprint Network Vision vendors are used, Clearwire should request from the supplier the same features sets,  acceptance criteria, and SLAs   as those required by Sprint consistent with Network Vision.  If other vendors are used, Schedule 8.10(c) includes the minimum LTE features that Clearwire's vendors will need to support and release at timeframes no later than 6 months after the features become available in the US LTE market.
 
(d)    Backhaul between the Clearwire LTE base station and the Sprint Demarcation Point will be over privately owned or dedicated leased network facilities.  This also applies to any facility carrying signaling, control or administrative traffic that could expose Sprint traffic to security threats if carried on a public internet connection. 
  
(e)    The Clearwire Network will include LTE Services in compliance with this Section 8.10 in at least [***] Hotspot Sites that are On Air by [***], in at least [***] Hotspot Sites that are On Air by [***], and in at least [***] Hotspot Sites that are On Air by [***].  If the Clearwire Network does not include and maintain LTE Services in compliance with this Section 8.10 in at least (i) [***] Hotspot Sites that are On Air by and after [***], (ii) [***] Hotspot Sites that are On Air by and after [***]; and (iii) [***] Hotspot Sites that are On Air by and after [***], then any and all unused Wireless Broadband Services Prepayment described in Section 8.10(h) below will be refunded to Sprint and no further Wireless Broadband Services Prepayments will be due under Section 8.10(h).  If Clearwire is required to shut down any [***]under Applicable Law or under order from Governmental Authority, Clearwire shall have a commercially reasonable period, not to exceed [***], in which to [***], provided that each such alternate [***].  Clearwire may elect to utilize certain [***] owned and/or operated by Sprint for which Clearwire is paying to Sprint the [***] under a written agreement between the parties [***] in order to meet Clearwire's [***] achievement obligations under this Section 8.10(e).  For each [***] chosen by Clearwire for use as a [***], Clearwire will identify such [***] in writing to Sprint and if use of such [***] is approved by Sprint, it shall count toward Clearwire's [***]obligations under this Section 8.10(e) effective as of the date such [***]. To the extent that the [***] of any such [***] approved by Sprint is delayed [***] beyond the mutually agreed upon [***] for such [***] and also beyond all permissible extensions to the [***] as provided under [***], then such [***] shall be deemed to be [***]  

(f)    [***]

(g)    Sprint will use commercially reasonable efforts to provide reasonable support to Clearwire regarding [***] standards for [***], but Clearwire acknowledges and understands the Sprint priorities regarding [***] and [***]. 

(h)    Subject to Section 2.2.8(b)(iv) of Schedule 7.1, and subject to Clearwire complying with all of its obligations under Sections 8.10(a)-(e), Sprint will provide to Clearwire Wireless Broadband Services Prepayments up to a maximum combined total of [***] for Sprint's use of LTE Services, if any of the following events occur under the described conditions:

(i)    [***].  If, prior to any Wireless Broadband Services Prepayments pursuant to subsection 8.10(h)(iii) immediately below, Clearwire receives [***], then Sprint will provide to Clearwire Prepayments for LTE Services [***] less (A) any Wireless Broadband Services Prepayments provided by Sprint under Section 8.10(h)(ii), and (B) any amounts that Sprint has paid to Clearwire solely for LTE Services under Section 3.1.1 of Schedule 7.1, and Sprint will pay such Wireless Broadband Services Prepayments for LTE Services within 30 days [***].

(ii)    [***].  If, prior to any Wireless Broadband Services Prepayments pursuant to subsection 8.10(h)(iii) immediately below, Clearwire receives [***], then Sprint will provide to Clearwire additional Wireless Broadband Services Prepayments for LTE Services [***] less (A) any Wireless 

Confidential Information - Subject to Nondisclosure Obligations
2

Broadband Services Prepayments provided by Sprint under Section 8.10(h)(i), and (B) any amounts that Sprint has paid to Clearwire solely for LTE Services under Section 3.1.1 of Schedule 7.1, and Sprint will pay such Wireless Broadband Services Prepayments for LTE Services by January 31st of the calendar year in which the Other Reseller take-or-pay for LTE services is applicable (or within 30 days after the take-or-pay is contractually committed if for less than a full calendar year).  Clearwire agrees that if Sprint pays any Wireless Broadband Services Prepayment under this Section 8.10(h)(ii) and Clearwire does not [***], Clearwire will refund to Sprint the unused amount, if any, of such Wireless Broadband Services Prepayment that is equal to the amount of [***] , provided however that Clearwire shall not be required make any refunds to Sprint if Clearwire, after using commercially reasonable efforts is unable [***].

(iii)    Prepayments Upon Build Thresholds. Sprint will make Wireless Broadband Services Prepayments associated with Clearwire's LTE network build activities as described in this subsection 8.10(h)(iii).

(A)    If Clearwire has satisfied the terms of the first sentence of Section 8.10(e), Sprint will pay Clearwire the Wireless Broadband Services Prepayment in the applicable amount from the table below:

[***]    

(j)    Network Performance Service Level Metrics:  Clearwire will maintain network performance based on Monthly Service Level Metrics.  These metrics will be consistent with the level of performance defined on Schedule 8.10(i).  Clearwire agrees to maintain the network to meet these service levels and invest in the network to maintain this performance as needed. Sprint and Clearwire will review performance on a monthly basis based on an agreed to scorecard.

[***]

Clearwire agrees that Sprint may disclose to the government, select enterprise customers and necessary third party partners who have a “need to know” information regarding Clearwire's LTE Network design and equipment, the suppliers of technology for the Clearwire LTE Network and Sprint's use of the Clearwire LTE Network, provided that such disclosures are made subject to non-disclosure agreements that are at least as restrictive as the non-disclosure provisions set forth in this Agreement, it being understood that the information may be released to the government without a non-disclosure agreement.  In any case, Sprint will provide details of the disclosures made and with whom the materials were discussed within [***] of the discussion.

		
	2.
	Contingent Nature of Amendment. This Amendment is contingent upon the Parties executing all of the following documents within 48 hours of the other Party: (1) Sprint / Clearwire Settlement and Release Agreement; (2) First Amendment to the Amended and Restated Enhanced In-Building Coverage Deployment Agreement; and (3) Commitment Agreement.

		
	3.
	All other terms and conditions in the 4G MVNO Agreement, not amended above, shall remain in full force and effect.  Except as expressly provided in this Amendment, nothing herein shall operate as, or be deemed to constitute, a waiver of any rights or benefits by any party to the 4G MVNO Agreement, and each party retains all of its rights under the 4G MVNO Agreement.

		
	4.
	This Amendment may be executed and delivered (including by facsimile or electronic transmission) in any number of counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute a single instrument.    

[SIGNATURES APPEAR ON NEXT PAGE]

Confidential Information - Subject to Nondisclosure Obligations
3

IN WITNESS WHEREOF, each party hereto has caused this Amendment to be executed by its authorized representative as of the day and year written below.

CLEARWIRE COMMUNICATIONS LLC

By:     /s/ Erik E. Prusch

Name:     Erik E. Prusch

Title:     Chief Executive Officer

Date:     8/28/2012

SPRINT SPECTRUM L.P.

By:     /s/ Todd A. Rowley

Name:     Todd A. Rowley

Title:     Vice President, Business Development

Date:     8/28/2012

Confidential Information - Subject to Nondisclosure Obligations
4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]