Document:

Exhibit 10.2

 

FIRST AMENDMENT TO THE

GSO SIDE LETTER 

 

This FIRST
AMENDMENT TO THE GSO SIDE LETTER (this “Amendment”), dated as of October 6, 2017 (the “Amendment
Effective Date”), is by and between GSO Capital Partners LP (“GSO”), CF Corporation
(“CF Corp”), Blackstone Tactical Opportunities Fund II L.P. (the “BTO Fund”) and
Fidelity National Financial, Inc. (“FNF”).

 

WHEREAS, GSO and CF
Corp entered into that certain Side Letter dated as of May 24, 2017 (the “Side Letter”); and

 

WHEREAS, GSO and CF
Corp wish to amend the terms of the preferred stock set forth in the Side Letter and the consent of BTO Fund and FNF is required
to do so pursuant to those certain Investor Agreements entered into by, amongst others, GSO, CF Corp, BTO and FNF dated as of May 24. 2017
(the “Investor Agreements”);

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, GSO and CF Corp hereby amend the Side Letter as follows:

 

ARTICLE
I

AMENDMENT

 

Section 1.1           
Capitalized Terms. Capitalized terms used in this Amendment and not otherwise
defined herein shall have the meanings given to such terms in the Side Letter.

 

Section 1.2           
Amendment. 

 

(a)         
Annex B to the Side Letter is hereby amended by deleting it in its entirety and replacing
it with Exhibit A to this Amendment.

 

(b)         
As there were no net redemptions of CF Corp stock as contemplated by Section 1(a)(y) of
the GSO Commitment Letters, the parties acknowledge and agree that the funding by GSO as contemplated thereunder will not be required
to be made.

 

Section 1.3           
No Other Revisions. Except as expressly amended hereby, the Side Letter is and shall
remain in full force and effect. If and to the extent there are any inconsistencies between the Side Letter and this Amendment,
the terms of this Amendment shall control. This Amendment and the Side Letter together (in each case including all Schedules, Exhibits
and Annexes thereto), contain the entire understanding between the parties (other than the GSO Commitment Letter, the Investor
Agreements, and the fee letter agreement dated May 24, 2017 between CF Corp and GSO) with respect to the subject matter
hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters. The terms and provisions
of Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14 of the Side Agreement are incorporated herein and shall apply mutatis mutandis
to this Amendment.

 

[Remainder of page
intentionally left blank]

 

    	 

    	 

    

 

	 	Sincerely,	 	 
	 	 	 	 
	 	CF CORPORATION	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Douglas Newton	 
	 	 	Name: 	Douglas Newton	 
	 	 	Title: 	Chief Financial Officer	 
	 	 	 	 	 
	 	GSO CAPITAL PARTNERS LP	 
	 	 	 
	 	 	 	 	 
	 	By:	/s/ Marisa Beeney	 
	 	 	Name: 	Marisa Beeney	 
	 	 	Title: 	 Authorized Signatory	 

 

Agreed to and accepted:

 

	BLACKSTONE TACTICAL OPPORTUNITIES FUND II L.P.
	 	 	 	 
	 	 	 	 
	By:	/s/ Menes O. Chee	 
	 	Name: 	Menes O. Chee	 
	 	Title: 	Senior Managing Director	 
	 	 	 	 
	FIDELITY NATIONAL FINANCIAL, INC.	 
	 	 	 	 
	 	 	 	 
	By:	/s/ Michael L. Gravelle	 
	 	Name: 	Michael L. Gravelle	 
	 	Title: 	EVP, General Counsel and

                                           Corporate Secretary
	 

 

  

    	[Signature Page to First Amendment to Side Letter]

    	 

    

 

Exhibit A

GSO Term Sheet

 

	Issuer:	CF Corp, a corporation incorporated in the Cayman Islands
	Investors:	Funds and accounts managed, advised or sub-advised by GSO Capital Partners LP and its affiliates (“GSO”)
	Funded Amount 	$275mm funded
	Security	Preferred equity of CF Corp (“Preferred Equity”)
	Dividend Rate:	
        7.5% payable quarterly in cash for the
        first 10 years. After year 10, the interest rate shall reset quarterly to the greater of 7.5% and an annual interest rate equal
        to the then-current three-month LIBOR (provided, however, that in the event the three-month LIBOR is less than zero, the three-month
        LIBOR shall be deemed to be zero) + 5.5% payable quarterly in arrears.

         

        PIK available at CF Corp’s option.
        For the avoidance of doubt, the change to a floating dividend rate after year 10 will occur irrespective of the holder of the Preferred
        Equity.

         

	Maturity:	Perpetual
	Call Protection:	Non-callable for the first 5 years.  From the start of the 6th year, callable in whole or in part, at par (including PIK and unpaid accrued dividends).
	Remarketing:	
        From the start of the 6th year,
        upon GSO’s request, CF Corp shall as promptly as practicable (subject to customary black-out provisions) re-market GSO’s
        Preferred Equity on its existing terms.

         

        It being understood that to the extent
        market conditions make such re-marketing impracticable, CF Corp may temporarily delay such re-marketing provided that the preferred
        equity is re-marketed within six months of the date of GSO’s initial request.

         

        To the extent it is unlikely that remarketing
        the Preferred Equity on the then existing terms will receive a valuation by a prospective purchaser of par or greater than par,
        CF Corp may, upon GSO’s request, modify the terms of the securities to improve the sale of the securities with the intention
        of preserving rating agency equity credit.

         

        If the proceeds from any sales resulting
        from such remarketing are less than the outstanding balance of the applicable shares (including PIK and unpaid accrued dividends),
        CF Corp will reimburse GSO up to a maximum of 10% of par (including PIK and unpaid accrued dividends) for actual losses incurred
        by GSO upon the sale of its Preferred Equity under the terms of this remarketing mechanism, with such amount payable either in
        cash, CF Corp common stock, or any combination thereof, at CF Corp’s option.

         

        If CF Corp chooses to deliver CF Corp common
        stock to GSO, the number of shares of such stock to be delivered will be determined by dividing (i) the amount of actual losses
        to be paid to GSO by (ii) the higher of (a) an 8% discount to the 30-day VWAP of CF Corp common stock following the remarketing
        period, and (b) $6.00.

         

        For the avoidance of doubt, GSO may elect
        to sell its Preferred Equity holdings on their then-existing terms at any time (subject to transfer restrictions) and on any terms
        of sale at its sole discretion.

         

 

    	 

    	 

    

 

	Covenants:	
        ·  
	Customary
        limitations on debt incurrence and preferred equity issuance, including, but not limited to:

        

        

        

 

		·	No incurrence of debt by CF Corp or any intermediate
holding company between CF Corp and CF Bermuda Holdings; and

   

		·	No issuance or reclassification of equity securities
by CF Corp or any of its subsidiaries, other than to an entity 100.0% of the equity in which is owned directly or indirectly by
CF Corp

   

		·	Compliance with a set of financial covenants, affirmative
covenants and negative covenants that mirror those contained in the credit facility documentation in effect as of the funding
date (including but not limited to maintenance by insurance subsidiaries of an RBC ratio of 300%)

   

		·	Other protections against incurrence, layering, and restricted
payments, including, but not limited to:

   

		·	No payment of cash dividends or other distributions on
any equity securities other than the Preferred Equity, or any purchase, repurchase or redemption thereof (other than pursuant
to equity incentive agreements with employees), unless (i) CF Corp is current on accrued dividends on the Preferred Equity (including
any Preferred Equity issued as PIK; (ii) Fidelity & Guaranty Life Insurance Company, Iowa domiciled insurance subsidiary,
or any successor “primary” insurance subsidiary maintains an AM Best rating of A- or higher; (iii) is in compliance
with the covenants that mirror the credit facility documentation described above; and (iv) any such dividends or distributions,
when aggregated with all other dividends or distributions declared on equity securities, other than on the Preferred Equity, in
any given fiscal year, does not represent an amount greater than 20% of the normalized AOI of CF Corp for the preceding fiscal
year

 

		·	Usual and customary covenants for senior preferred equity
shares, including but not limited to limitations on affiliate transactions and change of control protections and other protections
to be agreed upon

 

    	 

    	 

    

 

	Conversion: 	
        From the start of the 11th year, and provided that
        GSO has first requested CF Corp to remarket the Preferred Equity as described above, GSO may, at its sole discretion, convert its
        holdings of Preferred Equity, in whole or in part, into such number of shares of CF Corp common stock as determined by dividing
        (i) the aggregate par value (including PIK and unpaid accrued dividends) of the Preferred Equity that GSO wishes to convert by
        (ii) the higher of (a) a 5% discount to the 30-day VWAP of CF Corp common stock following the conversion notice, and (b) the then-current
        Floor Price.

         

        The “Floor Price” will be $8.00 per share
        during the 11th year post- funding, $7.00 per share during the 12th year post- funding, and $6.00 during
        the 13th year post- funding and thereafter.

         

        The right to convert on the above terms
        will be a personal right of GSO and will not be a term of the Preferred Equity.

         

	Liquidation Preference:	
        The Preferred Equity will rank senior in
        priority to all other existing and future equity securities or classes of CF Corp equity with respect to distribution rights and
        liquidation preference.

         

        In the event of any liquidation, dissolution,
        insolvency or similar proceeding, all rights of the holders of Preferred Equity to any payments or distributions will be subject
        and subordinate to the prior payment in full of all debts and other liabilities of CF Corp.

         

	Transfer Restrictions:	No transfer (to be defined to include transfers of economic ownership through derivatives, etc.) for 12 months, subject to customary exceptions (affiliate transfers, pledges, etc.)
	Other:	Board observation rights and demand registration rights (exercisable at any time).Exhibit 10.3

GSO
Capital Partners LP

345 Park Avenue

New York, New York 10154

 

October
6, 2017

 

CF Corporation

1701 Village Center Circle

Las Vegas, Nevada 89134

 

 

Ladies and Gentlemen:

 

Reference is made to the First Amendment to
the Side Letter of even date hereof (the “Amendment Letter”) between GSO Capital Partners LP (“GSO”)
and CF Corporation, a Cayman Islands exempted corporation (“CF Corp”) that amends the Side Letter dated as of
May 24, 2017 (the “Side Letter”) between GSO and CF Corp. Each capitalized term used but not defined
in this letter will have the meaning ascribed to it in the Side Letter or the Merger Agreement.

 

1.                 
Fees and Expenses.

 

a.                  
As consideration for entering into the Amendment Letter you agree to pay (or cause to be paid) to GSO (or to one or more Affiliates
designated by GSO), on the Closing, an amount equal to $2,900,000 (the “Amendment Fee”).

 

b.                 
You agree that, once paid, the Amendment Fee or any part thereof payable hereunder shall not be refundable under any circumstances,
except as otherwise agreed in writing. The Amendment Fee shall not be subject to reduction by way of setoff counterclaim and shall
be in addition to any other fees, costs and expenses payable to GSO.

 

2.                 
Other Provisions. The terms and provisions of Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14 of the Side Letter are
incorporated herein and shall apply mutatis mutandis to this letter.

 

[Remainder of page
intentionally left blank]

 

    	 

    	 

    

 

 

	 	Sincerely,	 	 	 
	 	 	 	 	 
	 	GSO CAPITAL PARTNERS LP 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Marisa Beeney	 
	 	 	Name:	Marisa Beeney 	 
	 	 	Title:	Authorized Signatory	 

 

	Agreed to and accepted:	 
	 	 
	CF CORPORATION	 
	 	 	 	 
	By:	/s/ Douglas Newton	 
	 	Name: 	Douglas Newton	 
	 	Title: 	Chief Financial Officer 	 

 

    	[Signature Page to Amendment Fee Letter]

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