Document:

Second Amandment and Waiver to Securityholders' Agreement

  
 Exhibit 4.2(c)

  
 SECOND AMENDMENT AND WAIVER TO SECURITYHOLDERS’
AGREEMENT 
  
 SECOND AMENDMENT AND WAIVER TO
SECURITYHOLDERS’ AGREEMENT, dated as of November 24, 2004 (this “Amendment and Waiver”), among (i) CB Richard Ellis Services, Inc., a Delaware corporation (“CBRE”), and CB Richard Ellis Group, Inc., a Delaware
corporation formerly known as CBRE Holding, Inc. (the “Company”), (ii) Blum Strategic Partners, L.P., a Delaware limited partnership formerly known as RCBA Strategic Partners, L.P. (“Strategic I”), Blum Strategic
Partners II, L.P., a Delaware limited partnership (“Strategic II”), and Blum Strategic Partners II GmbH & Co. KG, a German limited partnership (“Strategic II KG,” and together with Strategic I and Strategic II,
the “Blum Funds”), (iii) FS Equity Partners III, L.P., a Delaware limited partnership (“FSEP”), and FS Equity Partners International, L.P., a Delaware limited partnership (“FSEP International,” and
together with FSEP, the “FS Entities”), (iv) DLJ Investment Partners, L.P., a Delaware limited partnership (“DLJIP”), DLJ Investment Partners II, L.P., a Delaware limited partnership (“DLJIP
II”), DLJIP II Holdings, L.P., a Delaware limited partnership (“DLJIP II Holdings”), Stanfield Arbitrage CDO, Ltd., a special purpose limited liability company organized under the laws of the Cayman Islands
(“Stanfield CDO”), Stanfield CLO, Ltd., a special purpose limited liability company organized under the laws of the Cayman Islands (“Stanfield CLO”), Stanfield/RMF Transatlantic CDO, Ltd., a special purpose limited
liability company organized under the laws of the Cayman Islands (“Stanfield/RMF,” and together with Stanfield CDO and Stanfield CLO, the “Stanfield Investors”), and National City Corporation, a Delaware corporation
and successor by merger to Provident Financial Group, Inc., an Ohio corporation (“NCC,” and together with DLJIP, DLJIP II, DLJIP II Holdings, the Stanfield Investors and NCC, the “Note Investors”), (v) California
Public Employees’ Retirement System (“CalPERS”) and Frederic V. Malek (“Malek,” and together with CalPERS, the “Other Non-Management Investors”), and (vi) the individuals identified on the
signature pages hereto as “Management Investors” (together, the “Management Investors,” and together with the Blum Funds, FS Entities, the Note Investors and the Other Non-Management Investors, the
“Investors”). 
  
 RECITALS: 
  
 A. The Company, CBRE and the Investors are parties to a Securityholders’
Agreement, dated as of July 20, 2001 (as amended on April 14, 2004 and as may be further amended from time to time, the “Securityholders’ Agreement”; capitalized terms used herein and not otherwise defined have the meanings
ascribed thereto in the Securityholders’ Agreement) which provides for, among other things, the registration of shares of Common Stock held by the Investors, upon the terms and subject to the conditions set forth therein; 
  
 B. Pursuant to Section 3.1(a) of the Securityholders’ Agreement, on
November 12, 2004, the Company filed a Registration Statement on Form S-1 (No. 333-120445) (as may be amended from time to time, together with any related Registration Statement on Form S-1 filed by the Company pursuant to Rule 462(b) of the
Securities Act, the “Registration Statement”) with the SEC pursuant to the Securities Act, in connection with a potential underwritten public offering of shares of the Class A Common Stock (the “Potential
Offering”), including the offering and sale of shares of the Class A Common Stock by the Selling Investors (as defined below) to the underwriters for the Potential Offering (the “Underwriters”) on a firm commitment basis
(the “Firm Commitment Shares”) and the potential offering and sale of shares 

  

 
of the Class A Common Stock by the Selling Investors in connection with any exercise by the Underwriters of their option to purchase additional shares to
cover over-allotments (the “Over-Allotment Shares”); and 
  
 C. The parties hereto wish to amend and waive certain provisions in the Securityholders’ Agreement in connection with, and to provide for certain matters relating to, the Potential Offering. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, the parties hereto agree as follows: 
  
 Section
1. Request for Registration. Each of the Company and the Investors acknowledge that the filing of the Registration Statement covering the registration of the Firm Commitment Shares and the Over-Allotment Shares shall be deemed to have been
requested by the Blum Funds under Section 3.1 of the Securityholders’ Agreement. 
  
 Section 2. Waiver of Advance Notice. Each of the Investors hereby waives the requirement of the Company set forth in Section 3.1(a) of the Securityholders’ Agreement to notify all Holders of Registrable
Securities in writing within five (5) days of the receipt of the request for registration by the Blum Funds set forth in Section 1 hereto. 
  
 Section 3. Allocation of Shares for Sale in Potential Offering. (a) Notwithstanding anything to the contrary that may be set forth in the
Securityholders’ Agreement (including, without limitation, Section 3.1 thereto), each of the Company and the Investors hereby agrees that the shares of Class A Common Stock to be sold by the Selling Investors in the Potential Offering shall be
allocated as follows: 
  
 (i) The Blum Funds, in
consultation with the representatives of the Underwriters, shall determine the aggregate number of Firm Commitment Shares to be offered in the Potential Offering and the aggregate number of Over-Allotment Shares that the Underwriters will have an
option to purchase to cover over-allotments, if any. The Firm Commitment Shares shall be allocated among the Selling Investors as set forth on Schedule I and the Over-Allotment Shares shall be allocated among the Selling Investors as
set forth on Schedule II. Each of the Selling Investors shall be entitled to sell, and hereby agrees to sell its or his allocation of the Firm Commitment Shares on Schedule I and the Over-Allotment Shares as set forth on
Schedule II. 
  
 (ii) Each of the
Management Investors hereby waives his right set forth in Section 3.1 of the Securityholders’ Agreement to sell shares of Common Stock in the Potential Offering (including, without limitation, the sale of any Firm Commitment Shares and the sale
of any Over-Allotment Shares). 
  
 (iii) For
purposes of this Section 3, “Selling Investors” shall mean the Investors other than the Management Investors. 
  
 (b) Each of the Selling Investors hereby agrees to (i) participate in the Potential Offering in the manner set forth in Section 3(a)
hereto, (ii) execute and deliver to the 

  

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representatives of the Underwriters an underwriting agreement in customary form reasonably satisfactory to such Selling Investor (the “Underwriting
Agreement”) and (iii) execute and deliver such other documentation and instruments as such representatives shall reasonably request from such Selling Investor pursuant to the Underwriting Agreement, including, without limitation, a
customary custody agreement relating to the deposit of the shares of Class A Common Stock to be sold by such Selling Investor in the Potential Offering, a customary power of attorney appointing an attorney-in-fact for such Selling Investor,
customary opinions of counsel, the original stock certificate or certificates representing such shares and one or more stock powers with respect to such shares; provided, however, that this Section 3(b) shall cease to be effective if
the completion of the Potential Offering shall not occur prior to January 31, 2005 or the Registration Statement shall be withdrawn by the Company prior to such date. 
  
 (c) Each of the Company and the Selling Investors acknowledges and agrees that the provisions of this
Section 3 shall constitute the written notice required to be delivered by each of the Selling Investors desiring to include in the Registration Statement any of the Registrable Securities held by it or him pursuant to Section 3.1 of the
Securityholders’ Agreement and that the disposition of shares of Common Stock in the Potential Offering, as described in the Registration Statement, shall be the method of disposition for the Selling Investors. 
  
 (d) Each of the Selling Investors acknowledges and agrees as
follows: 
  
 (i) The Blum Funds shall have sole
authority and discretion with respect to the determination of each of the following matters with respect to the Potential Offering: (i) the total number of Firm Commitment Shares, (ii) the total number of Over-Allotment Shares, (iii) the identities
of the Underwriters, (iv) the initial price to the public of shares of Class A Common Stock and the underwriting discounts and commissions in the Potential Offering, (v) subject to the prior approval of the Company (which, unless Section 3.1(c) (v)
of the Securityholders’ Agreement applies, will not be unreasonably withheld or delayed), the timing of the filing of the Registration Statement and any amendments and exhibits to the Registration Statement, the timing of the filing, printing
and distribution of any preliminary prospectus, definitive prospectus or prospectus supplement and the timing of any road show or other selling efforts, (vi) the method and manner of the disposition of shares of Class A Common Stock in the Potential
Offering and (vii) whether to terminate the Potential Offering and/or withdraw the Registration Statement. 
  
 (ii) The Company shall have sole authority and discretion with respect to the contents of the Registration Statement, including, without
limitation, any prospectus contained therein and any exhibits filed therewith (provided, however, that each of the Selling Investors shall be entitled to review the Registration Statement in advance of it being declared effective and
provide comments with respect to any portions thereof with respect to which such Selling Investor would be required to indemnify the Company or any of the Underwriters pursuant to the Securityholders’ Agreement or the Underwriting Agreement if
such portion contained a material misstatement or omission). 
  

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 (e) Section 3.3 of the Securityholders’ Agreement shall apply to the Potential
Offering, except that, in lieu of the reasonable fees and expenses of a single special counsel for the Selling Investors selected in accordance with Section 3.5 of the Securityholders’ Agreement, the Company will pay for reasonable documented
fees and disbursements of counsel for each of the Selling Investors, not to exceed $20,000 for each group of affiliated Selling Investors. Section 3.5 of the Securityholders’ Agreement shall not apply to the Potential Offering. 
  
 (f) Each of the Stanfield Investors and NCC hereby
acknowledges and agrees that, notwithstanding such Investors’ participation in the Potential Offering pursuant to this Agreement, such Investor’s prior registration rights set forth in Article III of the Securityholders’ Agreement
have terminated prior to the date hereof pursuant to Section 3.7 of the Securityholders Agreement and such Investor shall not be entitled to include any shares of Class A Common Stock held by such Investor or its Affiliates in any future
registration statement filed by the Company under the Securities Act. 
  
 (g) Except as set forth in this Section 3, the provisions of Article III of the Securityholders’ Agreement shall remain unchanged and shall apply to the Potential Offering with respect to each of the Company and
the Investors. 
  
 Section 4. Representations and Warranties of
the Selling Investors. Each of the Selling Investors represents and warrants, severally and not jointly, to the Company and the other Selling Investors as follows: 
  
 (a) The total number of shares of outstanding Common Stock (excluding any shares received by such Selling
Investor as grants pursuant to the Company’s 2004 Stock Incentive Plan) owned by such Selling Investor owned by, or allocated to, such Selling Investor, in each case as of the date hereof, is accurately set forth opposite such Investor’s
name on Schedule III hereto. 
  
 (b) If such Selling Investor is a natural person, such Selling Investor has caused his spouse to execute and deliver to the Company on the date hereof a Consent of Spouse in the form attached hereto as Exhibit A. 

 
 Section 5. Miscellaneous Provisions. 
  
 (a) The parties hereto will sign such further documents,
cause such meetings to be held, resolutions passed, exercise their votes and do and perform and cause to be done such further acts and things as may be reasonably necessary in order to give full effect to this Amendment and Waiver. 
  
 (b) Notwithstanding anything in this Amendment and Waiver to
the contrary, except as expressly set forth herein, the Securityholders’ Agreement shall remain in full force and effect without amendment or modification thereof. 
  

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 (c) This Amendment and Waiver does not create any rights, claims or benefits inuring to
any Person that is not a party hereto nor create or establish any third party beneficiary hereto. 
  
 (d) This Amendment and Waiver will be governed by, and construed in accordance with, the laws of the State of Delaware, applicable to
contracts executed and to be performed entirely within that state. 
  
 (e) This Amendment and Waiver, together with the Securityholders’ Agreement, sets forth the entire understanding of the parties hereto with respect to the subject matter hereof. The Company acknowledges and
agrees that it shall not enter into any side letter or similar agreement with any of the Selling Investors after the date hereof that has the effect of establishing rights or otherwise benefiting such Selling Investor in a manner more favorable in
any material respect to such Selling Investor than the rights and benefits established in favor of the Selling Investors by Section 3 of this Amendment and Waiver unless, in any such case, each of the other Selling Investors is also offered the
opportunity to receive such rights and benefits. 
  
 (f) The section headings contained in this Amendment and Waiver are for reference purposes only and will not affect the meaning or interpretation of this Amendment and Waiver. 
  
 (g) If any provision of this Agreement is declared by any court of competent jurisdiction to be illegal,
void or unenforceable, all other provisions of this Agreement will not be affected and will remain in full force and effect. 
  
 (h) This Amendment and Waiver may be executed in any number of counterparts, each of which will be deemed to be an original and all of
which together will be deemed to be one and the same instrument. This Amendment and Waiver shall become effective as of the date set forth above on the date on which the Company has received counterparts of this Amendment and Waiver from each of the
Investors. 
  
 [remainder of the page intentionally left blank]

  

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 IN WITNESS WHEREOF, each of the undersigned has executed this Amendment and Waiver or caused this
Amendment and Waiver to be executed on its behalf as of the date first written above. 
  

					
	 CB RICHARD ELLIS GROUP, INC.

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	 CB RICHARD ELLIS SERVICES, INC.

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

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	 BLUM STRATEGIC PARTNERS, L.P.

		
	 By:
	 	 Blum Strategic GP, L.L.C., its general partner

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	
	 BLUM STRATEGIC PARTNERS II, L.P.

		
	 By:
	 	 Blum Strategic GP II, L.L.C., its general partner

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	
	 BLUM STRATEGIC PARTNERS II GMBH &
 CO. KG

		
	 By:
	 	 Blum Strategic GP II, L.L.C., its managing
 limited partner

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

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	FS EQUITY PARTNERS III, L.P.
		
	By:	 	 FS Capital Partners, L.P., its general partner

			
	 	 	 By:
	 	 FS Holdings, Inc., its general partner

  

			
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

					
	FS EQUITY PARTNERS INTERNATIONAL, L.P.
		
	By:	 	 FS&Co. International, L.P., its general partner

			
	 	 	 By:
	 	FS International Holdings Limited, its general partner

  

			
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 8 

			
	DLJ INVESTMENT PARTNERS, L.P.
		
	By:	 	DLJ Investment Partners II, Inc., its managing general partner
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	DLJ INVESTMENT PARTNERS II, L.P.
		
	By:	 	DLJ Investment Partners II, Inc., its managing general partner
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	DLJIP II HOLDINGS, L.P.
		
	By:	 	DLJ Investment Partners II, Inc., its general partner
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

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	 NATIONAL CITY CORPORATION

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	STANFIELD ARBITRAGE CDO, LTD.
		
	By:	 	Stanfield Capital Partners LLC, as Collateral Manager
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	STANFIELD CLO, LTD.
		
	By:	 	Stanfield Capital Partners LLC, as Collateral Manager
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	STANFIELD/RMF TRANSATLANTIC CDO, LTD.
		
	By:	 	Stanfield Capital Partners LLC, as Collateral Manager
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

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	 CALIFORNIA PUBLIC EMPLOYEES’
 RETIREMENT SYSTEM

		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	
	 
	Frederic V. Malek

  

			
	 MANAGEMENT INVESTORS:

	
	 
	Raymond E. Wirta
	
	 
	W. Brett White

  

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 Exhibit A

  
 CONSENT OF SPOUSE 
  
 In consideration of the execution of the foregoing Second Amendment and
Waiver of Securityholders’ Agreement among CB Richard Ellis Group, Inc., CB Richard Ellis Services, Inc. and the other parties thereto, I,
                        , the spouse of
                        , do hereby join with my spouse in executing the foregoing Second Amendment and Waiver of
Securityholders’ Agreement and do hereby agree to be bound by all of the terms and provisions thereof. 
  

									
				
	Dated as of November 24, 2004	 	 	 	 	 	 
	 	 	 	 	 	 	 Name:Amendment to Credit Agreement

 Exhibit 10.1(c) 
  
  
 AMENDMENT dated as of November
15, 2004 (this “Amendment”), to (a) the Amended and Restated Credit Agreement dated as of April 23, 2004 (the “Credit Agreement”), among CB RICHARD ELLIS SERVICES, INC., a Delaware corporation (the
“Borrower”), CB RICHARD ELLIS GROUP, INC., a Delaware corporation (“Holdings”), the Lenders (as defined in Article I of the Credit Agreement), and CREDIT SUISSE FIRST BOSTON, as administrative agent (in such
capacity, the “Administrative Agent”) and as collateral agent (in such capacity, the “Collateral Agent”) for the Lenders, and (b) the Guarantee and Collateral Agreement dated as of July 20, 2001, as amended (the
“Collateral Agreement”), among the Borrower, Holdings, the Subsidiary Guarantors (as defined in Article I of the Credit Agreement) and the Collateral Agent for the benefit of the Secured Parties (as defined in Article I of the
Collateral Agreement). 
  
 A. Pursuant to the Credit Agreement,
the Lenders and the Issuing Banks have extended, and have agreed to extend, credit to the Borrower. 
  
 B. The Borrower has requested certain amendments to the Credit Agreement and the Collateral Agreement as set forth herein. 
  
 C. Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Credit Agreement. 
  
 Accordingly, in
consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 
  
 SECTION 1. Amendments to Credit Agreement. (a) Section 1.01 of the
Credit Agreement is hereby amended by inserting in the appropriate alphabetical order therein the following: 
  
 “Amendment Effective Date” shall have the meaning set forth in the November 2004 Amendment. 
  
 “Investors Investment Subsidiary” shall
mean any Subsidiary or joint venture formed by the Borrower solely for the purposes of buying and holding real estate assets in anticipation of selling such assets or transferring such assets to third parties. 
  
 “November 2004 Amendment” shall mean the
Amendment dated as of November 15, 2004, to the Credit Agreement and the Collateral Agreement. 
  
 (b) The definition of the term “Applicable Percentage” set forth in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Applicable Percentage” shall mean, for any
day, subject to Section 2.07, (a) with respect to any Eurodollar Term Loan, 2.00%, (b) with respect to any 

  

 
ABR Term Loan, 1.00%, or (c) with respect to any Eurodollar Incremental Revolving Loan or ABR Incremental Revolving Loan, the applicable percentage set forth
below under the caption “Eurodollar Spread—Incremental Revolving Loans” or “ABR Spread—Incremental Revolving Loans”, respectively, based upon the Leverage Ratio as of the relevant date of determination: 
  

					
	 Leverage Ratio

	  	 Eurodollar Spread—
 Incremental
Revolving Loans

	 	 ABR Spread—
 Incremental
Revolving Loans

			
	 Category 1
 Greater than 2.5 to 1.0
	  	2.50%	 	1.50%
			
	 Category 2
 Greater than 2.0 to 1.0 but less than or equal to 2.5 to 1.0
	  	2.25%	 	1.25%
			
	 Category 3
 Equal to or less than 2.0 to 1.0
	  	2.00%	 	1.00%

  
 Each
change in the Applicable Percentage resulting from a change in the Leverage Ratio shall be effective with respect to all Incremental Revolving Loans and Incremental Letters of Credit outstanding on and after the date of delivery to the
Administrative Agent of the financial statements and certificates required by Section 5.04(a) or (b) and Section 5.04(c), respectively, indicating such change until the date immediately preceding the next date of delivery of such financial
statements and certificates indicating another such change. Notwithstanding the foregoing, (a) at any time during which the Borrower has failed to deliver the financial statements and certificates required by Section 5.04(a) or (b) and Section
5.04(c), respectively, the Leverage Ratio shall be deemed to be in Category 1 for purposes of determining the Applicable Percentage for Incremental Revolving Loans and Incremental Letters of Credit, and (b) at any time after the occurrence and
during the continuance of an Event of Default, the Leverage Ratio shall be deemed to be in Category 1 for purposes of determining the Applicable Percentages. 
  
 (c) Section 1.01 of the Credit Agreement is hereby further amended by deleting the words “Investors 1031 Subsidiary and the Collective Investment
Scheme Subsidiary” in the definition of the term “Asset Sale” and substituting therefor the words “Investors Investment Subsidiaries”. 
  

(d) The definitions of the terms “Collective Investment Scheme Subsidiary” and “Investor 1031 Subsidiary” set forth in Section 1.01
of the Credit Agreement are hereby deleted in their entirety. 
  

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 (e) The definition of the term “Consolidated Interest Expense” set forth in Section 1.01 of the
Credit Agreement is hereby amended by deleting the parenthetical in clause (a)(i) thereof and substituting therefor the following: 
  
 “(including imputed interest expense in respect of Capital Lease Obligations but excluding non-cash interest expense and premiums paid in connection
with any permitted prepayment, redemption or repurchase of Existing Debt)”. 
  
 (f) The definition of the term “Fixed Charge Coverage Ratio” set forth in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Fixed Charge Coverage Ratio” shall mean,
for any period, the ratio of (a) Consolidated EBITDA for such period minus Capital Expenditures and Co-investments (excluding investments by the Investors Investment Subsidiaries) for such period to (b) the sum of Consolidated Interest Expense plus
Restricted Payments in respect of interest on the Holdco Notes made under Section 6.06(a)(ii) by the Borrower during such period. 
  
 (g) The definition of the term “Interest Coverage Ratio” set forth in Section 1.01 of the Credit Agreement is hereby amended by inserting
immediately after the words “Restricted Payments” therein the words “in respect of interest on the Holdco Notes”. 
  
 (h) The definition of the term “Melody Mortgage Warehousing Facility” set forth in Section 1.01 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows: 
  
 “Melody Mortgage Warehousing Facility” shall mean the credit facility provided by Residential Funding Corporation (“RFC”) or any substantially similar facility extended to Melody or any other Mortgage
Banking Subsidiary in connection with any Mortgage Banking Activities, pursuant to which RFC or another lender makes loans to Melody or any other Mortgage Banking Subsidiary, the proceeds of which loans are applied by Melody (or any other Mortgage
Banking Subsidiary) to fund commercial mortgage loans originated and owned by Melody (or any other Mortgage Banking Subsidiary) subject to a commitment (subject to customary exceptions) to purchase such mortgage loans by (a) the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association or any other quasi-federal governmental entity or its seller servicer or (b) any other commercial conduit lender, in each case so long as (i) loans made by RFC or such other lender to
Melody (or any other Mortgage Banking Subsidiary) thereunder are secured by a pledge of commercial mortgage loans made by Melody (or any Mortgage Banking Subsidiary) with the proceeds of such loans, and RFC or such other lender has a perfected first
priority security interest therein, to secure loans made under such credit facility and (ii) in the case of loans to be sold to a commercial conduit lender, the related Indebtedness of the Mortgage Banking Subsidiary does not exceed a term of 120
days or a loan to value of 80%. 
  

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 (i) The definition of the term “Non-Recourse Indebtedness” set forth in Section 1.01 of the
Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Non-Recourse Indebtedness” shall mean Indebtedness of, or Guarantees by, a Co-Investment Subsidiary or an Investors
Investment Subsidiary; provided that (x) such Indebtedness is incurred solely in relation to the permitted investment activities of such Co-Investment Subsidiary or Investors Investment Subsidiary, (y) such Indebtedness is not Guaranteed by,
or otherwise recourse to, Holdings, the Borrower or any Subsidiary other than a Co-Investment Subsidiary or an Investors Investment Subsidiary and (z) the aggregate amount of such Indebtedness of all Co-Investment Subsidiaries and Investors
Investment Subsidiaries that shall qualify as “Non-Recourse Indebtedness” shall not exceed (i) with respect to the Investors Investment Subsidiaries, $155,000,000, and (ii) with respect to all other Co-Investment Subsidiaries $10,000,000
in the aggregate outstanding at any time. 
  
 (j) Section 2.21(a)
of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 (a) In the event (i) any Lender or the Issuing Bank delivers a certificate requesting compensation pursuant to Section 2.14, (ii) any
Lender or the Issuing Bank delivers a notice described in Section 2.15, (iii) the Borrower is required to pay any additional amount to any Lender or the Issuing Bank or any Governmental Authority on account of any Lender or the Issuing Bank pursuant
to Section 2.20 or (iv) any Lender refuses to consent to a proposed amendment, waiver, consent or other modification of this Agreement or any other Loan Document which has been approved by the Required Lenders and which additionally requires the
consent of such Lender for approval pursuant to Section 9.08(b), the Borrower may, at its sole expense and effort, upon notice to such Lender or the Issuing Bank and the Administrative Agent, require such Lender or the Issuing Bank to transfer and
assign, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all of its interests, rights and obligations under this Agreement (or, in the case of clause (iv) above, all its interests, rights and
obligations with respect to the Class of Loans or Commitments that is the subject of the related consent, amendment, waiver or other modification) to an assignee that shall assume such assigned obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (x) such assignment shall not conflict with any law, rule or regulation or order of any court or other Governmental Authority having jurisdiction, (y) the Borrower shall have received the prior
written consent of the Administrative Agent (and, if a Revolving Credit Commitment or an Incremental Revolving Credit Commitment is being assigned, of the Issuing Bank and the Swingline Lender), which consent shall not unreasonably be withheld, and
(z) the Borrower or such assignee shall have paid to the affected Lender or the Issuing Bank in immediately available funds an amount equal to the sum of the principal of and interest accrued to the date of such payment on the outstanding Loans or
L/C Disbursements of such Lender or the Issuing Bank, respectively, plus all Fees and other amounts accrued for the account of such Lender or the Issuing Bank 

  

 4 

 
hereunder (including any amounts under Section 2.14 and Section 2.16), in each case with respect to the Loans or Commitments subject to such assignment;
provided further that, if prior to any such transfer and assignment the circumstances or event that resulted in such Lender’s or the Issuing Bank’s claim for compensation under Section 2.14 or notice under Section 2.15 or the
amounts paid pursuant to Section 2.20, as the case may be, cease to cause such Lender or the Issuing Bank to suffer increased costs or reductions in amounts received or receivable or reduction in return on capital, or cease to have the consequences
specified in Section 2.15, or cease to result in amounts being payable under Section 2.20, as the case may be (including as a result of any action taken by such Lender or the Issuing Bank pursuant to paragraph (b) below), or if such Lender or the
Issuing Bank shall waive its right to claim further compensation under Section 2.14 in respect of such circumstances or event or shall withdraw its notice under Section 2.15 or shall waive its right to further payments under Section 2.20 in respect
of such circumstances or event or shall consent to the proposed amendment, waiver, consent or other modification, as the case may be, then such Lender or the Issuing Bank shall not thereafter be required to make any such transfer and assignment
hereunder. 
  
 (k) Article II of the Credit Agreement is hereby
further amended by adding a new Section 2.26 at the end thereof as follows: 
  
 SECTION 2.26. Term Loan Repricing Protection. In the event that, prior to the first anniversary of the Repricing Effective Date, any Lender holding Term Loans (each a “Term Lender”)
receives a Repricing Prepayment (as defined below), then, at the time thereof, the Borrower shall pay to such Term Lender a prepayment premium equal to 1.0% of the amount of such Repricing Prepayment. As used herein, with respect to any Term Lender,
a “Repricing Prepayment” is the amount of principal of the Term Loans of such Term Lender that is either (a) prepaid by the Borrower pursuant to Section 2.12 substantially concurrently with the incurrence by Holdings or any of its
subsidiaries of new term loans (whether pursuant to Incremental Term Loan Commitments or otherwise) that have interest rate margins lower than the Applicable Percentages then in effect for the Term Loans so prepaid or (b) received by such Term
Lender as a result of the mandatory assignment of such Term Loans in the circumstances described in Section 2.21(a)(iv) following the failure of such Term Lender to consent to an amendment of this Agreement (other than the November 2004 Amendment)
that would have the effect of reducing any of the Applicable Percentages with respect to such Term Loans. 
  
 (l) Section 6.04(g) of the Credit Agreement is hereby amended by (i) deleting “$30,000,000” set forth in clause (iii)(D)(x) thereof and
substituting therefor “$100,000,000” and (ii) deleting “$60,000,000” set forth in clause (iii)(D)(y) thereof and substituting therefor “$200,000,000”. 
  

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 (m) Section 6.04(p) of the Credit Agreement is hereby amended and restated in its entirety to read as
follows: 
  
 (p) investments in, and loans and
advances to, the Investors Investment Subsidiaries not to exceed $65,000,000 in the aggregate outstanding at any time, determined without regard to any write-downs or write-offs or such investments, loans and advances; and 
  
 (n) Section 6.06(b) of the Credit Agreement is hereby amended and restated in
its entirety to read as follows: 
  
 (b)
Notwithstanding paragraph (a), Holdings may make Restricted Payments in respect of the Common Stock, and the Borrower may make Restricted Payments to Holdings to fund such Restricted Payments by Holdings, during any ECF Period commencing on or after
January 1, 2005, in an aggregate amount not to exceed the greater of (i) $26,000,000 and (ii) 25% of Excess Cash Flow for the preceding ECF Period; provided, however, that (x) at the time thereof and after giving effect thereto, no Default or
Event of Default shall have occurred and be continuing and (y) the Borrower would be in Pro Forma Compliance after giving effect thereto. 
  
 (o) Section 6.09(c) of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 (c) Notwithstanding the foregoing, the Borrower may prepay,
redeem, repurchase or otherwise retire Existing Debt, in whole or in part, so long as (i) at the time thereof and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower would be in Pro
Forma Compliance after giving effect thereto. 
  
 SECTION 2.
Amendment to Collateral Agreement. The definition of the term “Excluded Melody Assets” set forth in Section 1.02 of the Collateral Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Excluded Melody Assets” means (a) any of
the “Collateral” (as defined in the First Amended and Restated Warehousing Credit and Security Agreement (Multifamily Mortgage Loans) dated as of February 22, 1999, as amended, restated or modified, between L.J. Melody & Company and
Residential Funding Corporation), (b) any “Participated Mortgage Loans”, “Related Assets” or “Collections” (as such terms are defined in the Master Participation Agreement (Multifamily and Health Care Mortgage Loans)
dated as of June 15, 1999, as amended, restated or modified, between L.J. Melody & Company and Residential Funding Corporation) and (c) any assets of Melody or any Mortgage Banking Subsidiary that are substantially similar in type to the assets
described in clause (a) or (b) and that constitute collateral for any Melody Mortgage Warehousing Facility from time to time. 
  
 SECTION 3. Representations and Warranties. To induce the other parties hereto to enter into this Amendment, Holdings and the Borrower represent and
warrant to each of the Lenders, the Administrative Agent, the Issuing Banks and the Collateral Agent that, after giving effect to this Amendment, (a) the representations and warranties set forth in Article III of the Credit Agreement are true and
correct in all material respects on 

  

 6 

 
and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date; and (b) no Default or Event of
Default has occurred and is continuing. 
  
 SECTION 4.
Effectiveness. (a) This Amendment (other than Sections 1(b) and 1(h) hereof) shall become effective as of the date set forth above on the date (the “Amendment Effective Date”) on which the Administrative Agent shall have
received counterparts of this Amendment that, when taken together, bear the signatures of the Borrower, Holdings, the Subsidiary Guarantors and the Required Lenders. 
  
 (b) Sections 1(b) and 1(j) of this Amendment shall become effective as of the date (the “Repricing Effective
Date”) on which the Amendment Effective Date shall have occurred and the Administrative Agent shall have received counterparts of this Amendment that, when taken together, bear the signatures of each Term Lender (after giving effect to any
prior or concurrent assignment by Term Lenders, whether pursuant to Section 2.21 of the Credit Agreement or otherwise). 
  
 SECTION 5. Effect of Amendment. Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair,
constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the Issuing Banks, the Collateral Agent or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in
any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.
Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan
Document in similar or different circumstances. This Amendment shall apply and be effective only with respect to the provisions of the Credit Agreement and the Collateral Agreement specifically referred to herein. After the date hereof, any
reference to the Credit Agreement or the Collateral Agreement shall mean the Credit Agreement or the Collateral Agreement, as the case may be, as modified hereby. This Amendment shall constitute a “Loan Document” for all purposes of the
Credit Agreement and the other Loan Documents. 
  
 SECTION 6.
Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together
shall constitute but one and the same contract. Delivery of an executed counterpart of a signature page of this Amendment by facsimile transmission shall be as effective as delivery of a manually executed counterpart hereof. 
  
 SECTION 7. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 SECTION 8. Headings. The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof. 
  

 7 

 SECTION 9. Acknowledgment of Guarantors. Each of the Guarantors hereby acknowledges receipt and
notice of, and consents to the terms of, this Amendment. 
  
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