Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED MEZZANINE LOAN AND SECURITY AGREEMENT 

THIS AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED MEZZANINE LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of
July 7, 2022, is by and among OP SPE Borrower Parent, LLC, a Delaware limited liability company (“Parent Borrower”), OP SPE PHX1, LLC, a Delaware limited liability company (“OP SPE PHX1”), OP SPE TPA1, LLC, a
Delaware limited liability company (“OP SPE TPA1”, and together with Parent Borrower and OP SPE PHX1, each, a “Borrower” and, collectively, the “Borrowers”), and LL Private Lending Fund II, L.P., a Delaware limited
partnership, as lender (the “Lender”). Capitalized terms used herein and not otherwise defined herein shall have the meaning given to such terms in the Loan Agreement (defined below). 

WHEREAS, reference is made to that certain Amended and Restated Mezzanine Loan and Security Agreement, dated as of December 16, 2021 (as
amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), by and among the Borrowers and the Lender; and 

WHEREAS, the Borrowers have requested, and the Lender has agreed, to amend the Loan Agreement on the terms and conditions set forth herein.

 NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

Section 1. Amendments to the Loan Agreement. Upon satisfaction of the conditions precedent set forth in Section 2
below, the Borrowers and the Lender hereby agree that the Loan Agreement (including the exhibits and schedules thereto) is hereby amended by incorporating the changes shown on the marked copy of the Loan Agreement attached hereto as Exhibit A
(it being understood that language which appears “struck out” or “struck out”, as applicable, has been deleted and language which appears as “double-underlined” or “double-underlined”, as applicable, has been added). 

Section 2. Conditions Precedent. The effectiveness of this Amendment is subject to receipt by the Lender of the following, each in
form and substance reasonably acceptable to the Lender: 
 (a) (i) a duly executed counterpart of this Amendment from the parties hereto
and (ii) a fully executed amendment to the Pricing Side Letter executed by the Borrowers and the Lender; and 
 (b) evidence that the
accrued fees and expenses of (i) the Lender due and payable under the Facility Documents (if any); and (ii) counsel to the Lender in connection with this Amendment and the transactions contemplated hereby, in each case to the extent
invoiced prior to the date hereof, have been paid by the Borrowers in immediately available funds. 

 Section 3. Representations and Warranties. Each Borrower hereby represents and
warrants to the Lender on and as of the date hereof that: 
 (a) such Borrower’s representations and warranties set forth in the
Facility Documents to which such Borrower is a party are true and correct in all material respects as of the date hereof (except to the extent such representations and warranties expressly relate to any earlier date, in which case such
representations and warranties shall be true and correct in all material respects as of such earlier date); 
 (b) no Default or Event of
Default has occurred and is continuing under the Facility Documents, and no “Default” or “Event of Default” under the Senior Loan Agreement has occurred and is continuing thereunder; 

(c) such Borrower has all necessary power and authority to execute and deliver this Amendment and carry out the terms of this Amendment and the
Loan Agreement as amended hereby; 
 (d) all Governmental Authorizations and Private Authorizations required in connection with the due
execution, delivery and performance by such Borrower of this Amendment and the Loan Agreement as amended hereby have been obtained; 
 (e)
such Borrower has duly authorized the execution, delivery and performance of this Amendment and this Amendment has been duly executed and delivered by such Borrower; and 

(f) this Amendment constitutes the legal, valid and binding obligation of such Borrower, enforceable against such Borrower, in accordance with
its respective terms, except as such enforceability may be limited by Insolvency Laws and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity). 

Section 4. Reaffirmation; Effect on the Loan Agreement and the other Facility Documents. 

(a) Except as expressly set forth herein, nothing contained herein shall be deemed to constitute a waiver of compliance with any term or
condition contained in the Loan Agreement or any of the other Facility Documents or constitute a course of conduct or dealing among the parties. Except as expressly set forth herein, the Lender reserves all rights, privileges and remedies under the
Facility Documents. The amendments, consents and waivers contained herein do not and shall not create any obligation of the Lender to consider or agree to any further amendment or any waiver or consent and, in the event the Lender subsequently
agrees to consider any further amendments or any waiver or consent, neither the amendments, consents or waivers contained herein nor any other conduct of the Lender shall be of any force or effect on the Lender’s consideration or decision with
respect to any such requested waiver, consent or amendment and the Lender shall not have any further obligation whatsoever to consider or agree to further waiver or consent or any amendment or other agreement. Except as expressly set forth herein,
the Loan Agreement and all other Facility Documents are hereby ratified and re-affirmed by each Borrower in all respects and shall remain unmodified and in full force and effect. This Amendment shall constitute a Facility Document. 

  
 2 

 (b) The relationship of the Lender, on the one hand, and the Borrowers, on the other hand,
has been and shall continue to be, at all times, that of creditor and debtor and not as joint venturers or partners. Nothing contained in this Amendment, any instrument, document or agreement delivered in connection herewith or in the Loan Agreement
or any of the other Facility Documents shall be deemed or construed to create a fiduciary relationship between or among the parties. 

Section 5. No Novation. This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of the
Loan Agreement or any other Facility Document or an accord and satisfaction in regard thereto. 
 Section 6. Headings. The
captions and headings appearing herein are included solely for convenience of reference and are not intended to affect the interpretation of any provision of this Amendment. 

Section 7. Successors and Assigns. The provisions of this Amendment shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns; provided that no Borrower may assign or transfer any of its respective rights or obligations under this Amendment without the prior written consent of the Lender. 

Section 8. Entire Agreement; Severability. The parties hereto hereby agree that this Amendment constitutes the entire agreement
concerning the subject matter hereof and supersedes any and all written and/or oral prior agreements, negotiations, correspondence, understandings and communications. Each provision and agreement herein shall be treated as separate and independent
from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement. 

Section 9. Incorporation of Loan Agreement. The provisions contained in Section 8.05 (Execution in Counterparts),
Section 8.07 (Governing Law) and Section 8.12 (Submission to Jurisdiction; Waivers; Etc.) of the Loan Agreement are incorporated herein by this reference, mutatis mutandis. 

[Signature Pages Follow] 

  
 3 

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the
date first written above. 
  

			
	 OP SPE BORROWER PARENT, LLC,

as Parent Borrower

		
	By:	 	 /s/ Michael S. Burnett

	Name: Michael S. Burnett
	Title: Chief Financial Officer
		
	By:	 	 /s/ Benjamin Aronovitch

	Name: Benjamin Aronovitch
	Title: Chief Legal Officer
	
	 OP SPE PHX1, LLC,
 as a
Borrower

		
	By:	 	 /s/ Michael S. Burnett

	Name: Michael S. Burnett
	Title: Chief Financial Officer
		
	By:	 	 /s/ Benjamin Aronovitch

	Name: Benjamin Aronovitch
	Title: Chief Legal Officer
	
	 OP SPE TPA1, LLC,
 as a
Borrower

		
	By:	 	 /s/ Michael S. Burnett

	Name: Michael S. Burnett
	Title: Chief Financial Officer
		
	By:	 	 /s/ Benjamin Aronovitch

	Name: Benjamin Aronovitch
	Title: Chief Legal Officer

 SIGNATURE PAGE 

AMENDMENT NO. 1 TO AMENDED AND RESTATED
MEZZANINE LOAN AND SECURITY AGREEMENT 

 
			
	 LL PRIVATE LENDING FUND II, L.P.,

as the Lender

	
	By: LLPLF II GP, LLC, its General Partner
		
	By:	 	 /s/ Paul A. Frick

	Name: Paul A. Frick
	Title: Vice President

 SIGNATURE PAGE 

AMENDMENT NO. 1 TO AMENDED AND RESTATED
MEZZANINE LOAN AND SECURITY AGREEMENT 

 EXHIBIT A 

Marked Loan Agreement 
 See
attached. 

  
 Exhibit A-1 

Exhibit A to Amendment
No. 1 to Second A&R Loan Agreement 
 Execution
Version 

Conformed Copy including
 

Amendment
No. 1 dated as of July 7, 2022 
 SECOND AMENDED AND RESTATED 

MEZZANINE LOAN AND SECURITY AGREEMENT 

AMONG 
 OP SPE BORROWER PARENT,
LLC, 
 as Parent Borrower, 
 OP
SPE PHX1, LLC, 
 as a Borrower, 

OP SPE TPA1, LLC, 
 as a Borrower,

 and 
 LL PRIVATE LENDING FUND
II, L.P., 
 as the Lender 

Dated as of December 16, 2021 

and as amended
as of July 7, 2022 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I
	 		  			
	 DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS
	  	 	2	 
			
	 Section 1.01
	 	Definitions	  	 	2	 
	 Section 1.02
	 	Rules of Construction	  	 	17	 
	 Section 1.03
	 	Computation of Time Periods	  	 	17	 
			
	 ARTICLE II
	 		  			
	 ADVANCES
	 		  	 	17	 
			
	 Section 2.01
	 	Revolving Credit Facility	  	 	17	 
	 Section 2.02
	 	Making of Advances	  	 	18	 
	 Section 2.03
	 	Evidence of Indebtedness	  	 	18	 
	 Section 2.04
	 	Payment of Principal and Interest	  	 	18	 
	 Section 2.05
	 	Prepayment of Advances	  	 	19	 
	 Section 2.06
	 	Changes of Commitment	  	 	20	 
	 Section 2.07
	 	Maximum Lawful Rate	  	 	20	 
	 Section 2.08
	 	Rescission or Return of Payment	  	 	20	 
	 Section 2.09
	 	Post-Default Interest	  	 	20	 
	 Section 2.10
	 	Payments Generally	  	 	21	 
	 Section 2.11
	 	Commitment Fee	  	 	21	 
	 Section 2.12
	 	Unused Facility Fee	  	 	21	 
	 Section 2.13
	 	Voluntary Prepayment Fee	  	 	21	 
	 Section 2.14
	 	Extension of the Availability Period	  	 	21	 
			
	 ARTICLE III
	 		  			
	 CONDITIONS PRECEDENT
	  	 	22	 
			
	 Section 3.01
	 	Conditions Precedent to Effectiveness	  	 	22	 
	 Section 3.02
	 	Conditions Precedent to Each Borrowing	  	 	2223	 
	 Section 3.03
	 	Conditions Precedent to Each Borrowing on and after the Amendment and Restatement Effective Date	  	 	23	 
			
	 ARTICLE IV
	 		  			
	 REPRESENTATIONS AND WARRANTIES
	  	 	2324	 
			
	 Section 4.01
	 	Representations and Warranties of the Borrowers	  	 	2324	 
			
	 ARTICLE V
	 		  			
	 COVENANTS
	  	 	2829	 
			
	 Section 5.01
	 	Affirmative Covenants of Each Borrower	  	 	2829	 

							
	 Section 5.02
	 	Negative Covenants of Each Borrower	  	 	33	 
			
	 ARTICLE VI
	 		  			
	 EVENTS OF DEFAULT
	  	 	37	 
			
	 Section 6.01
	 	Events of Default	  	 	37	 
		
	 ARTICLE VII
	  			
	 PLEDGE OF COLLATERAL; RIGHTS OF THE LENDER
	  	 	39	 
			
	 Section 7.01
	 	Grant of Security	  	 	39	 
	 Section 7.02
	 	Release of Security Interest	  	 	39	 
	 Section 7.03
	 	Rights and Remedies	  	 	39	 
	 Section 7.04
	 	Remedies Cumulative	  	 	40	 
	 Section 7.05
	 	Protection of Collateral	  	 	40	 
		
	 ARTICLE VIII
	  			
	 MISCELLANEOUS
	 		  	 	41	 
			
	 Section 8.01
	 	No Waiver; Modifications in Writing	  	 	41	 
	 Section 8.02
	 	Notices, Etc.	  	 	42	 
	 Section 8.03
	 	Taxes	  	 	42	 
	 Section 8.04
	 	Costs and Expenses; Indemnification	  	 	46	 
	 Section 8.05
	 	Execution in Counterparts	  	 	47	 
	 Section 8.06
	 	Assignability	  	 	47	 
	 Section 8.07
	 	Governing Law	  	 	49	 
	 Section 8.08
	 	Severability of Provisions	  	 	49	 
	 Section 8.09
	 	Confidentiality	  	 	4950	 
	 Section 8.10
	 	Merger	  	 	50	 
	 Section 8.11
	 	Survival	  	 	50	 
	 Section 8.12
	 	Submission to Jurisdiction; Waivers; Etc.	  	 	51	 
	 Section 8.13
	 	Waiver of Jury Trial	  	 	51	 
	 Section 8.14
	 	PATRIOT Act Notice	  	 	51	 
	 Section 8.15
	 	Legal Holidays	  	 	51	 
	 Section 8.16
	 	Non Petition	  	 	5152	 
	 Section 8.17
	 	Waiver of Setoff	  	 	5152	 
	 Section 8.18
	 	Recourse Against Certain Parties	  	 	5152	 
	 Section 8.19
	 	Intercreditor Agreement	  	 	52	 
	 Section 8.20
	 	Amendment and Restatement	  	 	53	 

			
	 EXHIBITS AND SCHEDULES

		
	EXHIBIT A	  	Form of Promissory Note
		
	EXHIBIT B	  	Form of Notice of Borrowing
		
	EXHIBIT C	  	Insurance Requirements
		
	SCHEDULE 1	  	Notice Information

 AMENDED AND RESTATED MEZZANINE LOAN AND SECURITY AGREEMENT 

This Second Amended and Restated Mezzanine Loan and Security Agreement, dated as of December 16, 2021, is by and among OP SPE
Borrower Parent, LLC, a Delaware limited liability company (“Parent Borrower”), and OP SPE PHX1, LLC, a Delaware limited liability company, and OP SPE TPA1, LLC, a Delaware limited liability company (each, a
“Borrower” and, collectively with Parent Borrower, the “Borrowers”), on the one hand, and LL Private Lending Fund II, L.P., a Delaware limited partnership, as lender (the “Lender”), on the other
hand. 
 RECITALS 

WHEREAS, the Borrowers are in the business of, among other things, buying and selling certain Properties, as further specified herein; 

WHEREAS, Borrowers and the Lender entered into an Amended and Restated Mezzanine Loan and Security Agreement, dated as of
March 31, 2021 (such agreement, as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Loan and Security Agreement”);  

WHEREAS, the Borrowers are party to a certain Amended and Restated Master Loan and Security Agreement, dated as of February 25,
2021 (such agreement, as amended, restated, modified and/or supplemented, the “Senior Loan Agreement”), with Citibank, N.A., as the lender (the “Senior Lender”), and Wells Fargo Bank, N.A., as calculation agent and
paying agent; 
 WHEREAS, the Borrowers have requested that the Senior Lender make certain loans to them from time to time, the
proceeds of which will be used to provide interim funding for the acquisition of certain Properties and for other corporate purposes on the terms and subject to the conditions set forth in the Senior Facility Documents; 

WHEREAS, pursuant to the Existing Loan and Security Agreement, the Lender has made and will make certain loans to the Borrowers from time to
time, the proceeds of which, together with the proceeds received by the Borrowers from borrowings from the Senior Lender under the Senior Loan Agreement, are used to provide interim funding for the acquisition of certain Properties and for other
corporate purposes; and 
 WHEREAS, Borrower and the Lender wish to amend and restate the Existing Loan and Security Agreement as provided
herein. 
 NOW THEREFORE, in consideration of the premises and of the mutual covenants herein contained, and intending to be legally bound,
the parties hereto agree as follows: 

  
 1 

 ARTICLE I 

DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS 

Section 1.01 Definitions. As used in this Agreement (including in the introduction and recitals above), the following terms shall
have the meanings indicated: 
 “Advance” has the meaning assigned to such term in Section 2.01. 

“Advance Percentage” has the meaning ascribed to such term in the Pricing Side Letter. 

“Affiliate” means, in respect of a referenced Person, another Person Controlling, Controlled by or under common Control with
such referenced Person. 
 “Agreement” means this Amended and Restated Mezzanine Loan and Security Agreement, as
further amended, restated or otherwise modified from time to time. 
 “Amendment and Restatement Effective Date”
means December 16, 2021. 
 “Applicable Law” means any Law of any Governmental Authority, including all federal
and state banking or securities laws, to which the Person in question is subject or by which it or any of its assets or properties are bound. 

“Asset Management Rights” means all right, title and interest of each Borrower in and to any and all of the following (if
any): (a) rights to manage and make all decisions with respect to the Eligible Properties, (b) rights to make protective advances and receive reimbursement therefor, (c) rights to receive a management fee for managing the Eligible
Properties, (d) late fees, penalties or similar payments with respect to the Eligible Properties, (e) agreements and documents creating or evidencing any such rights to manage, documents, files and records relating to the servicing of the
Eligible Properties, and rights of any Person thereunder, (f) escrow, reserve and similar amounts with respect to the Eligible Properties, (g) rights to appoint, designate and retain any other managers, sub-managers, agents, custodians,
trustees and liquidators with respect to the Eligible Properties, and (h) accounts and other rights to payment related to the Eligible Properties. 

“Assignment and Acceptance” means an Assignment and Acceptance entered into by the Lender, a Permitted Assignee and, if
applicable, the Borrowers. 
 “Availability Period” means the period from and including the Closing Date to and
including the earliest of: (a) the date of any voluntary termination of this Agreement by the Borrower, (b) the termination of the Availability Period pursuant to Section 6.01, and (c) the “Maturity Date”
(as defined in the Senior Loan Agreement) pursuant to the terms of the Senior Loan Agreement. The Availability Period may be extended pursuant to
Section 2.1
12.14. 

“Bankruptcy Code” means the United States Bankruptcy Code, Title 11, United States Code §§101 et seq. 

“Borrowers” has the meaning assigned to such term in the introduction to this Agreement. 

  
 2 

 “Borrowing” has the meaning assigned to such term in Section 2.01.

 “Borrowing Date” means the date of a Borrowing. 

“Business Day” means any day of the year except: a Saturday, Sunday or other day on which commercial banks in New York, New
York and San Francisco, California are authorized or required by law to close. 
 “Capital Lease Obligations” shall mean,
for any Person, all obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) Property to the extent such obligations are required to be classified and accounted for as a capital lease
on a balance sheet of such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP. 

“Cash” means Dollars immediately available on the day in question. 

“Cash Equivalents” means (a) securities with maturities of 90 days or less from the date of acquisition issued or fully
guaranteed or insured by the United States Government or any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of 90 days or less from the date of acquisition and overnight bank deposits of any commercial
bank having capital and surplus in excess of $500,000,000, (c) repurchase obligations of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than seven days with respect to securities
issued or fully guaranteed or insured by the United States Government, (d) commercial paper of a domestic issuer rated at least A-1 or the equivalent thereof by S&P or P-1 or the equivalent thereof by Moody’s and in either case
maturing within 90 days after the day of acquisition, (e) securities with maturities of 90 days or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are
rated at least A by S&P or A by Moody’s, (f) securities with maturities of 90 days or less from the date of acquisition backed by standby letters of credit issued by any commercial bank satisfying the requirements of clause (b) of
this definition, or (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition. 

“Change in Law” means (a) the adoption or taking effect of any law, rule or regulation after the Closing Date,
(b) any change in any law, rule or regulation or in the interpretation or-application thereof by any Governmental Authority after the Closing Date or (c) the making or issuance of any request, guideline or directive (whether or not having
the force of law) by any Governmental Authority made or issued after the Closing Date; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules,
guidelines, requirements or directives thereunder or issued in connection therewith or in implementation thereof and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the
Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law” hereunder
regardless of the date of effectiveness. 

  
 3 

 “Closing Date” means March 16, 2020. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Collateral” has the meaning assigned to such term in Section 7.01. 

“Commitment” has the meaning ascribed to such term in the Pricing Side Letter. 

“Commitment Fee” has the meaning ascribed to such term in the Pricing Side Letter. 

“Commitment Fee Percentage” has the meaning ascribed to such term in the Pricing Side Letter. 

“Commitment Termination Date” means the last day of the Availability Period, provided that if the Commitment Termination Date
would otherwise not be a Business Day, then the Commitment Termination Date shall be the immediately succeeding Business Day. 

“Committed Amount” has the meaning ascribed to such term in the Pricing Side Letter. 

“Constituent Documents” means, in respect of any Person, the certificate or articles of formation or organization, the
limited liability company agreement, operating agreement, partnership agreement, joint venture agreement, trust agreement or other applicable agreement of formation or organization (or equivalent or comparable constituent documents) and other
organizational documents and by laws and any certificate of incorporation, certificate of formation, certificate of limited partnership, certificate of trust and other agreement, similar instrument filed or made in connection with its formation or
organization, in each case, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Contractual Obligation” means, with respect to any Person, any provision of any securities issued by such Person or any
indenture, mortgage, deed of trust, contract, undertaking, agreement, instrument or other document to which such Person is a party or by which it or any of its property is bound or is subject. 

“Contributed Property” means any Property owned by a Borrower. 

“Control” means the direct or indirect possession of the power to direct or cause the direction of the management or policies
of a Person, whether through ownership, by contract, arrangement or understanding, or otherwise; provided, however that “Control” does not include the contractual right to appoint less than a majority of the directors or managers to the
board of a Person or to appoint advisors to the board, board committees or management committees of a Person. “Controlled” and “Controlling” have the meaning correlative thereto. 

  
 4 

 “Default” means any event which, with the passage of time, the giving of
notice, or both, would (if not cured or otherwise remedied during the applicable cure period) constitute an Event of Default. 

“Dollars” and “$” mean lawful money of the United States of America. 

“Eligible Properties” has the meaning assigned to such term in the Senior Loan Agreement. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated and rulings
issued thereunder. 
 “ERISA Event” means (a) any “reportable event,” as defined in Section 4043
of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the thirty (30) day notice requirement is waived); (b) the failure with respect to any Plan to satisfy the “minimum funding
standard” (as defined in Section 412 of the Code or Section 302 of ERISA); (c) the filing pursuant to Section 412(c) of the Code or Section 302 of ERISA of an application for a waiver of the minimum funding standard
with respect to any Plan; (d) a determination that any Plan is, or is expected to be, in “at risk” status (as defined in Section 430 of the Code or Section 303 of ERISA); (e) the incurrence by any Borrower or any member
of its ERISA Group of any material liability under Title IV of ERISA with respect to the termination of any Plan; (f) (i) the receipt by any Borrower or any member of its ERISA Group from the PBGC of a notice of determination that the PBGC
intends to seek termination of any Plan or to have a trustee appointed for any Plan under Section 4041(c) of ERISA, or (ii) the filing by any Borrower or any member of its ERISA Group of a notice of intent to terminate any Plan;
(g) the incurrence by any Borrower or any member of its ERISA Group of any material liability (i) with respect to a Plan pursuant to Sections 4063 and 4064 of ERISA, (ii) with respect to a facility closing pursuant to
Section 4062(e) of ERISA, or (iii) with respect to the withdrawal or partial withdrawal from any Multiemployer Plan; (h) the receipt by any Borrower or any member of its ERISA Group of any notice concerning the imposition of
Withdrawal Liability that could or a determination that a Multiemployer Plan is, or is expected to be, in endangered status or critical status, within the meaning of Section 432 of the Code or Section 305 of ERISA or is or is expected to
be insolvent, within the meaning of Title IV of ERISA; or (i) the failure of any Borrower or any member of its ERISA Group to make any required contribution to a Multiemployer Plan. 

“ERISA Group” means each controlled group of corporations or trades or businesses (whether or not incorporated) under common
control that is treated as a single employer under Section 414(b) or (c) or, for purposes of ERISA Section 302 or Code Section 412, (m) or (o) of the Code with the Borrower. 

“Event of Default” means the occurrence of any of the events, acts or circumstances set forth in Section 6.01.

  
 5 

 “Excluded Taxes” means any of the following Taxes imposed on or with
respect to the Lender or required to be withheld or deducted from a payment to the Lender: (a) Taxes imposed on or measured by the Lender’s net income (however denominated), franchise Taxes imposed on the Lender, and branch profits Taxes
imposed on the Lender, in each case, (i) by the jurisdiction (or any political subdivision thereof) under the laws of which the Lender is organized or in which its principal office is located or, in which its applicable lending office is
located or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of the Lender pursuant to a law in effect on the date on which (i) the Lender becomes a party hereto
or (ii) the Lender changes its lending office, except in each case to the extent that, pursuant to Section 8.03(a), amounts with respect to such Taxes were payable either to the Lender’s assignor immediately before the Lender
became a party hereto or to the Lender immediately before it changed its lending office, (c) Taxes attributable to the Lender’s failure to comply with Section 8.03(f), and (d) any Taxes imposed under FATCA. 

“Existing Loan and Security Agreement” has the definition set forth in the recitals to this Agreement. 

“Facility Documents” means this Agreement, Promissory Note, Pricing Side Letter, Guaranty, Pledge Agreement and any other
security agreements and other instruments entered into or delivered by or on behalf of the Borrowers pursuant to Section 5.01(k) (Further Assurances) to create, perfect or otherwise evidence the Lender’s security interest in the
Collateral. 
 “FATCA” means Sections 1471 through 1474 of the Code, as in effect on the date of this Agreement (or any
amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1)
of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code. 

“FATCA Withholding Tax” means any withholding or deduction required pursuant to FATCA. 

“Final Maturity Date” means the date falling six (6) months after the “Maturity Date” (as defined in the
Senior Loan Agreement); provided that, in no event shall the Final Maturity Date occur on the date that is on or after the fifth (5th) anniversary of the Closing Date. 

“Final Payment Date” means the date on which the aggregate outstanding principal amount of the Advances have been repaid in
full and all interest and fees and all other Obligations (other than contingent indemnification and reimbursement obligations which are unknown, unmatured and/or for which no claim giving rise thereto has been asserted) have been paid in full, and
the Borrowers shall have no further right to request any additional Advances. 
 “First Amendment Effective
Date” means July 7, 2022. 

  
 6 

 “Fundamental Amendment” means any amendment, modification, waiver or
supplement of or to this Agreement that would (a) increase or extend the term of the Commitment or the Availability Period or change the Final Maturity Date, (b) extend the date fixed for the payment of principal of or interest on any
Advance or any fee hereunder, (c) reduce the amount of any such payment of principal, (d) reduce the rate at which interest is payable thereon or any fee is payable hereunder, (e) release any material portion of the Collateral, except
in connection with dispositions permitted hereunder, (f) alter the terms of Section 8.01, or (g) modify the definition of the terms “Event of Default” or “Fundamental Amendment.” 

“GAAP” means generally accepted accounting principles in effect from time to time in the United States. 

“Governmental Authority” means, with respect to any Person, any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any body or entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any court or
arbitrator having jurisdiction over such Person. 
 “Governmental Authorizations” means all franchises, permits,
licenses, approvals, consents and other authorizations of all Governmental Authorities. 
 “Governmental Filings”
means all filings, including franchise and similar tax filings, and the payment of all fees, assessments, interests and penalties associated with such filings with all Governmental Authorities. 

“Guarantee” shall mean, as to any Person, any obligation of such Person directly or indirectly guaranteeing any Indebtedness
of any other Person or in any manner providing for the payment of any Indebtedness of any other Person or otherwise protecting the holder of such Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to keep-well, to
purchase assets, goods, securities or services, or to take-or-pay or otherwise), provided that the term “Guarantee” shall not include (i) endorsements for collection or deposit in the ordinary course of business, or
(ii) obligations to make servicing advances for delinquent taxes and insurance, or other obligations in respect of a Property, to the extent required by the Lender or the Senior Lender. The amount of any Guarantee of a Person shall be deemed to
be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such
Person in good faith. The terms “Guarantee” and “Guaranteed” used as verbs shall have correlative meanings. 

“Guarantor” means ParentOfferpad Solutions Inc., a Delaware corporation, in its capacity as
guarantor under the Guaranty. 
 “Guaranty” means that certain Amended and Restated Limited Guaranty and Recourse Indemnity Agreement, dated as of the First Amendment and Restatement Effective Date, made by the Guarantor for the benefit of the Lender, as may be amended, restated,
supplemented or otherwise modified from time to time. 

  
 7 

 “Indebtedness” means, for any Person: (a) obligations created, issued
or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from
such Person); (b) obligations of such Person to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary
course of business so long as such trade accounts payable are payable within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; (c) indebtedness of others secured by a Lien on the
Property of such Person, whether or not the respective indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar instruments issued or accepted
by banks and other financial institutions for the account of such Person; (e) Capital Lease Obligations of such Person; (f) obligations of such Person under repurchase agreements or like arrangements; (g) indebtedness of others
Guaranteed by such Person; (h) all obligations of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; (i) indebtedness of general partnerships of which such Person is a general partner; and
(j) any other indebtedness of such Person by a note, bond, debenture or similar instrument. 
 “Indemnified Party” has
the meaning assigned to such term in Section 8.04(b). 
 “Indemnified Taxes” means (a) Taxes, other than
Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrowers under any Facility Document and (b) to the extent not otherwise described in clause (a), Other Taxes. 

“Independent Director” or “Independent Manager” means, with respect to any Offerpad Entity, an individual
who has prior experience as an independent director, independent manager or independent member with at least three (3) years of employment experience and who is provided by Amacar Group, CT Corporation, Corporation Service Company, Global
Securitization Services, National Registered Agents, Inc., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation or, if none of those companies is then providing professional Independent Directors/Independent Managers,
another nationally recognized company approved by the Lender in the exercise of its reasonable discretion, in each case that is not an Affiliate of any Offerpad Entity and that provides professional Independent Director/Independent Manager and other
corporate services in the ordinary course of its business, and which individual is duly appointed as a member of the board of directors or board of managers of such corporation or limited liability company and is not, has never been, and will not
while serving as Independent Director or Independent Manager be: (a) a member, partner, equity holder, manager, director, officer or employee of any Offerpad Entity, any of their respective equity holders or Affiliates (other than as an
Independent Director or Independent Manager of any Offerpad Entity or Affiliate thereof or any of their respective single-purpose entity equity holders (provided that such Independent Director or Independent Manager is employed by a company that
routinely provides professional Independent Directors or Independent Managers)); (b) a creditor, supplier or service provider (including provider of professional services) to any Offerpad Entity, any single-purpose entity equity holder, or any
of their respective equity holders or Affiliates (other than a nationally-recognized company that routinely provides professional Independent Directors or Independent Managers and other corporate services to any Offerpad Entity, any single-purpose
entity equity holder, or any of their respective equity holders or Affiliates in the ordinary course of business); (c) a family member of any such member, partner, equity holder, manager, director, officer, employee, creditor, supplier or
service provider; or (d) a Person that controls (whether directly, indirectly or 

  
 8 

 
otherwise) any of the individuals described in the preceding clauses (a), (b) or (c). An individual who otherwise satisfies the preceding definition other than clause (a) by reason of
being the Independent Director or Independent Manager of a “special purpose entity” affiliated with any Offerpad Entity shall not be disqualified from serving as an Independent Director or Independent Manager of a Borrower or the Parent if
the fees that such individual earns from serving in such role in any given year constitute in the aggregate less than 5% of such individual’s annual income for that year. 

“Independent Director Event” shall mean with respect to the Independent Director or Independent Manager (as applicable) for
any Borrower or Pledgor, (i) any act or omission by such Independent Director that constitutes willful disregard of its duties under the applicable Governing Documents, (ii) such Independent Director engaging in or being charged with, or
being convicted of, fraud or other acts constituting a crime under any law applicable to such Independent Director, or (iii) such Independent Director no longer meeting the definition of Independent Director. 

“Insolvency Action” means “Insolvency Action” (as defined in the Senior Loan Agreement). 

“Insolvency Event” means, with respect to a specified Person, (a) the filing of a decree or order for relief by a court
having jurisdiction in the premises in respect of such Person or any substantial part of its property in an involuntary case under the Bankruptcy Code or any other applicable Insolvency Law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property, or ordering the winding up or liquidation of such Person’s affairs, and such decree or order shall remain
unstayed and in effect for a period of sixty (60) days; or (b) the commencement by such Person of a voluntary case under any applicable Insolvency Law now or hereafter in effect, or the consent by such Person to the entry of an order for
relief in an involuntary case under any such law, or the consent by such Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any
substantial part of its property, or the making by such Person of any general assignment for the benefit of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person in
furtherance of any of the foregoing. 
 “Insolvency Laws” means the Bankruptcy Code and all other applicable
liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments, or similar debtor relief laws from time to time in effect affecting the rights of creditors generally. 

“Insolvency Proceeding” means any case, action or proceeding before any court or Governmental Authority relating to an
Insolvency Event. 
 “Interest Rate” has the meaning ascribed to such term in the Pricing Side Letter. 

  
 9 

 “Intercreditor Agreement” means that certain Intercreditor and Standstill
Agreement dated the date hereof between the Senior Lender, as senior creditor, and the Lender, as junior creditor, as such may be amended, restated, modified and/or supplemented from time to time. 

“Investment Company Act” means the Investment Company Act of 1940, as amended, and the rules and regulations promulgated
thereunder. 
 “Knowledge” means (a) as to any natural Person, the actual awareness of the fact, event or
circumstance at issue or receipt of notification by proper delivery of such fact, event or circumstance, after due inquiry, and (b) as to any Person that is not a natural Person, the actual awareness of the fact, event or circumstance at issue
by a Responsible Officer of such Person or receipt, by a Responsible Officer of such Person, of notification by proper delivery of such fact, event or circumstance, after due inquiry. 

“Law” means any action, code, consent decree, constitution, decree, directive, enactment, finding, guideline, law,
injunction, interpretation, judgment, order, ordinance, policy statement, proclamation, promulgation, regulation, requirement, rule, rule of law, treaty, rule of public policy, settlement agreement, statute, or writ, of any Governmental Authority,
or any particular section, part or provision thereof. 
 “Lender” has the meaning assigned to such term in the
introduction to this Agreement. 
 “Liabilities” means all liabilities, obligations, losses, claims, damages,
penalties, actions, judgments, suits, costs, expenses (including reasonable and documented out of pocket attorneys’ fees and expenses) and disbursements of any kind or nature whatsoever. 

“Lien” means any deed of trust, mortgage, lien, pledge, charge, security interest or encumbrance of any kind (including any
agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing;
provided that the leasehold interests of tenants in respect of rental properties and possessory interests of occupants pursuant to an extended stay program shall not constitute Liens for purposes of this Agreement. 

“Liquidity” means, with respect to any Person, the sum of (a) its unrestricted Cash, plus (b) its unrestricted Cash
Equivalents. 
 “Margin Stock” has the meaning assigned to such term in Regulation U. 

“Material Adverse Effect” shall mean a material adverse effect on (a) the property, taken as a whole, business,
operations, financial condition or prospects of any Borrower, (b) the ability of any Borrower to perform its obligations under any of the LoanFacility Documents to which it is a party, (c) the validity or
enforceability of any of the
LoanFacility
 Documents, (d) the rights and remedies of the Lender under any of the LoanFacility Documents, (e) the timely repayment of the principal and
interest of all Advances or payment of other amounts payable in connection therewith or (f) the Collateral. 

  
 10 

“Maximum
 Credit” has the meaning ascribed to such term in the Pricing Side Letter. 

“Minimum Liquidity Amount” has the meaning ascribed to such term in the Pricing Side Letter. 

“Minimum Tangible Net Worth Amount” has the meaning ascribed to such term in the Pricing Side Letter. 

“Multiemployer Plan” means an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA that is
sponsored by any Borrower or a member of its ERISA Group or to which any Borrower or a member of its ERISA Group is obligated to make contributions or has any liability. 

“Net Worth” means, with respect to any Person, the excess of total assets of such Person, over total liabilities of such
Person, determined in accordance with GAAP. 
 “Non-U.S. Lender” has the meaning assigned to such term in Section
8.03(f). 
 “Notice of Borrowing” has the meaning assigned to such term in Section 2.02. 

“Notice of Prepayment” has the meaning assigned to such term in Section 2.05. 

“Obligations” means all financial indebtedness, whether absolute or fixed, at any time or from time to time owing by the
Borrowers to the Lender under or in connection with this Agreement or any other Facility Document, including all amounts payable by the Borrowers in respect of the Advances, with interest thereon, and all other amounts payable hereunder or
thereunder by the Borrower. 
 “OFAC” means the U.S. Office of Foreign Assets Control. 

“Offerpad Entities” means the Parent and each Borrower. 

“Other Connection Taxes” means, in the case of the Lender, any Taxes imposed as a result of a present or former connection
between the Lender and the jurisdiction imposing such Tax (other than a connection arising from the Lender having executed, delivered, become a party to, performed obligations under, received payments under, received or perfected a security interest
under, engaged in any other transaction pursuant to or enforced this Agreement or any other Facility Document). 
 “Other
Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the
receipt or perfection of a security interest under, or otherwise with respect to any Facility Document, except any such Taxes that are imposed with respect to an assignment (other than an assignment made pursuant to Section 8.03(g)). 

“Parent” means Offerpad, Inc., a Delaware corporation. 

  
 11 

 “Parent Borrower” has the meaning assigned to such term in the introduction
to this Agreement. 
 “Participant” means any bank or other Person to whom participation is sold as permitted by
Section 8.06(c). 
 “Participant Register” has the meaning assigned to such term in
Section 8.06(c)(ii). “PATRIOT Act” has the meaning assigned to such term in Section 8.14. 

“Payment Date” means the twentieth Business Day of each calendar month (or, if such day is not a Business Day, then the
following Business Day), commencing March 20, 2020. 
 “PBGC” means the Pension Benefit Guaranty Corporation,
or any successor agency or entity performing substantially the same functions. 
 “Permitted Assignee” means any
financial or other institution (other than the Borrowers or any Affiliate thereof) which has been approved in writing by the Senior Lender at all times prior to the Senior Facility Release Date. 

“Permitted Liens” means (a) Liens created in favor of the Lender hereunder or under the other Facility Documents,
(b) Liens created in favor of the Senior Lender under the Senior Facility Documents, (c) Liens imposed by homeowners associations, (d) Liens imposed by any Governmental Authority, operation of law or any homeowners association for
taxes, assessments or charges not yet delinquent or which are being contested in good faith and by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of any Borrower in accordance with, and to the extent
required by, GAAP, (e) applicable zoning, building and land use laws, ordinances, rules and regulations, (f) materialmen’s, mechanic’s, carriers’, workmen’s, repairmen’s and similar Liens, in each case, arising in
the ordinary course of business securing obligations that are not yet delinquent, (g) all non-monetary liens, encumbrances, easements and other matters of record, (h) any matters set forth in any of the owner’s title insurance policy
for the applicable Property, (i) rights of tenants under an extended stay arrangement, (j) Liens arising under any solar leases or power purchase agreements with respect to solar panels secured solely by such solar panels or equipment, and
(k) easements, restrictive covenants and other encumbrances which do not in any case materially detract from the value of the Property subject thereto or interfere in any material respect with the business conducted on such Property.

 “Person” means an individual or a corporation (including a business trust), partnership, trust, incorporated or
unincorporated association, joint stock company, limited liability company, government (or an agency or political subdivision thereof) or other entity of any kind. 

“Plan” means an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Code that is sponsored by any Borrower or a member of its ERISA Group or to which any Borrower or a member of its ERISA Group is obligated to make contributions or has any
liability. 

  
 12 

 “Pledge Agreement” means, collectively, that certain Pledge and Security
Agreement, dated as of the Closing Date, made by Pledgor for the benefit of the Lender and that certain Pledge and Security Agreement, dated as of the Closing Date, made by Parent Borrower, as each may be amended, restated, supplemented or otherwise
modified from time to time. 
 “Pledged Interest Control Date” has the meaning assigned to such term in Section
4.01(m)(iv). 
 “Pledged Membership Interests” means the “Pledged Equity” (as defined in the
Senior Loan Agreement). 
 “Pledgor” means OP SPE Holdco, LLC. 

“Post-Default Rate” has the meaning ascribed to such term in the Pricing Side Letter. 

“Pricing Side Letter” means that certain Amended and Restated Pricing Side Letter, dated as of the Amendment and Restatement
Effective Date, by and among the Borrowers and the Lender, as may be amended, restated, supplemented or otherwise modified from time to time. 

“Private Authorizations” means all approvals, consents and other authorizations of all Persons (other than Governmental
Authorities). 
 “Proceeds” has, with reference to any asset or property, the meaning assigned to it under
Section 9 102(a)(64) of the UCC and, in any event, shall include any and all amounts from time to time paid or payable under or in connection with such asset or property. 

“Prohibited Transaction” means a transaction described in Section 406(a) of ERISA, that is not exempted by a statutory
or administrative or individual exemption pursuant to Section 408 of ERISA. 
 “Promissory Note” means that
certain Second Amended and Restated Note, dated as of the ClosingFirst Amendment
Effective Date, in the principal amount of $65,000,00097,500,000, made by the Borrowers and in favor of the Lender
substantially in the form attached hereto as Exhibit A, as may be amended, restated, supplemented or otherwise modified from time to time. 

“Property” means residential real property, together with all buildings, fixtures and improvements thereon and all other
rights, benefits and proceeds arising from and in connection with such property, together with the related records, the related Asset Management Rights, any related takeout commitment, and all instruments, chattel paper and general intangibles
comprising or relating to any or all of the foregoing 
 “QIB” has the meaning assigned to such term in
Section 8.06(e). 
 “Qualified Purchaser” has the meaning assigned to such term in Section 8.06(e).

 “Regulation T,” “Regulation U” and “Regulation X” mean Regulation T, U and X,
respectively, of the Board of Governors of the Federal Reserve System, as in effect from time to time. 

  
 13 

 “Requested Amount” has the meaning assigned to such term in Section
2.02. 
 “Requirement of Law” shall mean as to any Person, the certificate of incorporation and bylaws or other
organizational or governing documents of such Person, all governmental licenses and authorizations and any law, treaty, rule or regulation or interpretation thereof or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Responsible Officer” means (a) in the case of a corporation, partnership or limited liability company (other than the
Offerpad Entities) that, pursuant to its Constituent Documents, has officers, any chief executive officer, chief financial officer, chief operating officer, chief administrative officer, president, senior vice president, vice president, assistant
vice president, treasurer, director or manager, and, in any case where two Responsible Officers are acting on behalf of such entity, the second such Responsible Officer may be a secretary or assistant secretary, (b) in the case of a limited
partnership (other than the Offerpad Entities), the Responsible Officer of the general partner, acting on behalf of such general partner in its capacity as general partner, (c) in the case of a limited liability company (other than the Offerpad
Entities), any Responsible Officer of the sole member or managing member, acting on behalf of the sole member or managing member in its capacity as sole member or managing member, (d) in the case of a trust, the Responsible Officer of the
trustee, acting on behalf of such trustee in its capacity as trustee, (e) in the case of the Offerpad Entities, the respective
president, vice president and/or chief executive officer, chief
financial officer, director, controller or secretary of the
Offerpad Entity and (f) in the case of the Lender, an officer of the Lender responsible for the administration of this Agreement. Each Borrower may designate other and additional Responsible Officers from time to time by notice to the
Lender. 
 “Sanctioned Country” means, at any time, a country or territory that is, or whose government is,
the subject or target of any Sanctions. 
 “Sanctioned Person” means, at any time, (a) any Person listed in any
Sanctions related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any EU member state, (b) any Person located, organized or resident in a Sanctioned Country
or (c) any Person controlled by any such Person. 
 “Sanctions” means economic or financial sanctions or trade
embargoes administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union or Her Majesty’s
Treasury of the United Kingdom. 
 “Securities Act” means the Securities Act of 1933 and the rules and regulations
promulgated thereunder, all as from time to time in effect. 
 “Security Entitlement” has the meaning specified in
Section 8 102(a)(17) of the UCC. “Senior Advance” means a borrowing by the Borrowers under the Senior Loan Agreement. 

  
 14 

 “Senior Advance Amount” means, with respect to each Senior Advance, the
principal amount extended by the Senior Lender pursuant to such Senior Advance. 
 “Senior Advance Date” means, with
respect to each Senior Advance, the “Funding Date” (as defined in the Senior Loan Agreement) for such Senior Advance. 

“Senior Facility Documents” means the Senior Loan Agreement, each other “Loan Document” (as defined in the Senior
Loan Agreement) and all other documents, instruments and agreements now or hereafter executed or delivered by or on behalf of the Borrowers or any guarantor in connection with the Senior Loan Agreement, as any of the same may be modified, amended,
restated, replaced, supplemented, extended, split, severed or consolidated from time to time. 
 “Senior Facility Funding
Request” means, with respect to each Senior Advance, the “Notice of Borrowing and Pledge” (as defined in the Senior Loan Agreement) delivered by the Borrowers to the Lender and the “Diligence Agent” (as defined in the
Senior Loan Agreement) in connection with such Senior Advance pursuant to the Senior Loan Agreement. 
 “Senior Facility
Release Date” means, with respect to the Collateral, the date on which the Senior Lender has fully and completely released all of its right, title and interest in, to and under all of the Collateral pursuant to a written security release
executed by the Senior Lender. 
 “Senior Lenders” has the meaning assigned to such term in the recitals to this
Agreement. 
 “Senior Loan Agreement” has the meaning assigned to such term in the recitals to this Agreement.

 “Solvent” means, as to any Person at any point in time, having a state of affairs such that all of the following
conditions are met at such time: (a) the fair value of the assets and property of such Person and its consolidated Subsidiaries is greater than the amount of such Person’s and its consolidated Subsidiaries’ liabilities (including
disputed, contingent and unliquidated liabilities) as such value is established and liabilities evaluated for purposes of Section 91(32) of the Bankruptcy Code, (b) the present fair saleable value of the assets and property of such Person
and its consolidated Subsidiaries in an orderly liquidation of such Person is not less than the amount that will be required to pay the probable liability of such Person and its consolidated Subsidiaries on its debts as they become absolute and
matured, (c) such Person and its consolidated Subsidiaries is able to realize upon its assets and property and pay its and their debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the
normal course of business, (d) such Person and its consolidated Subsidiaries do not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s and its consolidated Subsidiaries’ ability to pay as
such debts and liabilities mature, and (e) such Person and its consolidated Subsidiaries are not engaged in a business or a transaction, and are not about to engage in a business or a transaction, for which such Person’s and its
consolidated Subsidiaries’ assets and property would constitute unreasonably small capital. 

  
 15 

 “SPAC Transaction” means the merger, acquisition, contribution, equity
purchase or similar reorganization transaction or series of transactions, in which (i) a subsidiary of a special purpose acquisition company merges into the Parent, and (ii) the name of the Parent becomes “Offerpad Holdings LLC”,
substantially in accordance with the terms made available and presented to the public on or about the date hereof. 

“Subsidiaries” means, as to any Person, a corporation, partnership, limited liability company or other entity of which shares
of stock of each class or other interests having ordinary voting power (other than stock or other interests having such power only by reason of the happening of a contingency) to elect a majority of board of directions or other managers of such
entity are at the time owned, or management of which is otherwise controlled: (a) by such Person, (b) by one or more Subsidiaries of such Person, or (c) by such Person and one or more Subsidiaries of such Person. 

“Tangible Net Worth” means, with respect to any Person as of any date of determination, the consolidated Net Worth of such
Person and its Subsidiaries, less the consolidated net book value of all assets of such Person and its Subsidiaries (to the extent reflected as an asset in the balance sheet of such Person or any Subsidiary at such date) which will be treated as
intangibles under GAAP, including, without limitation, such items as deferred financing expenses, net leasehold improvements, good will, trademarks, trade names, service marks, copyrights, patents, licenses and unamortized debt discount and expense;
provided, that residual securities issued by such Person or its Subsidiaries shall not be treated as intangibles for purposes of this definition. 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding),
assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“UCC” means the New York Uniform Commercial Code; provided that if, by reason of any mandatory provisions of law, the
perfection, the effect of perfection or non-perfection or priority of the security interests granted to the Lender pursuant to this Agreement are governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States of America
other than the State of New York, then “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of such perfection, effect of perfection or non-perfection or priority. 

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the
Code. 
 “U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 8.03(f)(iii).

 “Unused Facility Fee” has the meaning ascribed to such term in the Pricing Side Letter. 

“Unused Facility Fee Percentage” has the meaning ascribed to such term in the Pricing Side Letter. 

“Voluntary Prepayment Amount” has the meaning assigned to such term in Section 2.13. 

  
 16 

 “Voluntary Prepayment Fee” has the meaning ascribed to such term in the
Pricing Side Letter. 
 “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 

Section 1.02 Rules of Construction. Unless otherwise defined or specified herein, all accounting terms shall be construed herein,
all accounting determinations hereunder shall be made, all financial statements required to be delivered hereunder shall be prepared and all financial records shall be maintained in accordance with GAAP. When used in this Agreement, unless a
contrary intention appears: (i) a term has the meaning assigned to it; (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; (iii) “or” is not exclusive;
(iv) “including” means including without limitation; (v) words in the singular include the plural and words in the plural include the singular; (vi) any agreement, instrument or statute defined or referred to herein or in
any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments
thereto and instruments incorporated therein; (vii) references to a Person are also to its successors and permitted assigns; (viii) the words “hereof’, “herein” and “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision hereof; (ix) references contained herein to Section, Schedule and Exhibit, as applicable, are references to Sections, Schedules and Exhibits in
this Agreement unless otherwise specified; (x) references to “writing” include printing, typing, lithography, electronic copies of documents, electronic mail and other means of reproducing words in a visible form; and (xi) the
term “proceeds” and each other capitalized term herein utilized in defining the categories of Collateral that is defined in Article 1, 8 or 9 of the applicable UCC shall have the meaning set forth in such UCC. 

Section 1.03 Computation of Time Periods. Unless otherwise stated in the applicable Facility Document, in the computation of a
period of time from a specified date to a later specified date, the word “from” means “from and including”, the word “through” means “to and including” and the words “to” and “until” both
mean “to but excluding.” Periods of days referred to in any Facility Document shall be counted in calendar days unless Business Days are expressly prescribed. Unless otherwise indicated herein, all references to time of day refer to
Eastern standard time or Eastern daylight savings time, as in effect in New York City on such day. 
 ARTICLE II 

ADVANCES 

Section 2.01 Revolving Credit Facility. On the terms and subject to the conditions hereinafter set forth, including Article III,
the Lender agrees to make loans to the Borrowers (each, an “Advance”) from time to time on the same date as any Senior Advance Date, in an aggregate principal amount at any one time outstanding up to but not exceeding the
then-applicable Advance Percentage of the Senior Advance Amount extended on such Senior Advance Date. Each such borrowing of an Advance on any single day is referred to herein as a “Borrowing.” Within such limits and subject to the
other terms and conditions of this Agreement, the Borrowers may borrow (and re borrow) Advances under this Section 2.01 and prepay Advances under Section 2.05. 

  
 17 

 Section 2.02 Making of Advances. If the Borrowers desire to make a Borrowing
under this Agreement, they shall give the Lender a written notice (each, a “Notice of Borrowing”) for such Borrowing (which notice shall be irrevocable and effective upon receipt) not later than 2:00 p.m. ET at least twoone
(21) Business
DaysDay
 prior to the day of the requested Borrowing (or such lesser period of time as the Lender may agree). Each Notice of Borrowing shall be substantially in the form of Exhibit B hereto, dated the
date the request for the related Borrowing is being made, shall attach the related Senior Facility Funding Request, and shall otherwise be appropriately completed. The proposed Borrowing Date specified in each Notice of Borrowing shall be a Business
Day falling on or prior to the Commitment Termination Date, and the amount of the Borrowing requested in such Notice of Borrowing (the “Requested Amount”) shall be the then-applicable Advance Percentage of the related Senior Advance
Amount (or, if less, the remaining unfunded
CommitmentMaximum
 Credit hereunder). The Lender shall, with respect to the
Committed Amount and may, with respect to the Uncommitted Amount, not later than 4:00 p.m. ET on each Borrowing Date in respect of an Advance, make the applicable Requested Amount available to the
Borrowers by disbursing such funds in Dollars to an account designated in writing by the Borrowers in the Notice of
Borrowing. The Lender shall have the obligation, subject to the terms and conditions of the Facility Documents,
to make Advances up to the Committed Amount and shall have no obligation to make Advances with respect to the Uncommitted Amount, which Advances may be made in the sole discretion of Lender. All Advances hereunder shall be first deemed committed up
to the Committed Amount and then the remainder, if any, shall be deemed uncommitted up to the Uncommitted Amount. 

Section 2.03 Evidence of Indebtedness. The Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrowers to it and resulting from the Advances made by the Lender to the Borrowers, from time to time, including the amounts of principal and interest thereon and paid to it, from time to time hereunder; provided
that the failure of the Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrowers to repay the Advances in accordance with the terms of this Agreement. 

Section 2.04 Payment of Principal and Interest. The Borrowers shall pay principal and interest on the Advances as follows:

 (a) 100% of the then outstanding principal amount of each Advance, together with all accrued and unpaid interest thereon, shall be
payable on the Final Maturity Date. 
 (b) Interest shall accrue at a rate equal to the Interest Rate on the unpaid principal amount of each
Advance from the date of such Advance until such principal amount is paid in full. 

  
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 (c) Accrued interest shall be payable in immediately available funds in arrears on each
Payment Date. Accrued interest related to any Advances being prepaid pursuant to Section 2.05 shall also be payable in arrears on each Payment Date in accordance with the terms of the preceding sentence in connection with any such
prepayment; provided that (x) with respect to any prepayment in full of the Advances outstanding, accrued interest on such amount through the date of prepayment may be payable on such date or as otherwise agreed to between the Lender and the
Borrowers and (y) with respect to any partial prepayment of the Advances outstanding, accrued interest on such amount through the date of prepayment shall be payable on the Payment Date following such prepayment (or on such date of prepayment
if requested in writing by the Lender). 
 (d) Subject in all cases to Section 2.04(f), the obligation of the Borrowers to pay
the Obligations, including the obligation of the Borrowers to pay the Lender the outstanding principal amount of the Advances and accrued interest thereon, shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance
with the terms hereof (including Section 2.10), under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which the Borrowers or any other Person may have or have had against the Lender or any
other Person. 
 (e) As a condition to the payment of principal of and interest on any Advance without the imposition of withholding tax, the
Borrowers or the Lender may require certification acceptable to it to enable the Borrowers and the Lender to determine their duties and liabilities with respect to any taxes or other charges that they may be required to deduct or withhold from
payments in respect of such Advance under any present or future law or regulation of the United States and any other applicable jurisdiction, or any present or future law or regulation of any political subdivision thereof or taxing authority therein
or to comply with any reporting or other requirements under any such law or regulation. 
 (f) Notwithstanding any other provision of this
Agreement, the obligations of the Borrowers under this Agreement are limited recourse obligations of the Borrowers. No recourse shall be had against any officer, director, employee, shareholder, beneficiary, Affiliate, member, manager, agent,
partner, principal or incorporator of the Borrowers or their respective successors or assigns for any amounts payable under this Agreement. It is understood that the foregoing provisions of this clause (f) shall not (i) prevent recourse to
the Borrowers or the Collateral for the sums due or to become due under any security, instrument or agreement which is part of the Collateral or (ii) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by this
Agreement. It is further understood that the foregoing provisions of this clause (f) shall not limit the right of any Person to name any Borrower as a party defendant in any proceeding or in the exercise of any other remedy under this
Agreement, so long as no judgment in the nature of a deficiency judgment or seeking personal liability shall be asked for or (if obtained) enforced against such Borrower. 

Section 2.05 Prepayment of Advances.  

(a) Optional Prepayments. Subject to the terms of the Intercreditor Agreement and Section 2.13, the Borrowers may, from time
to time on any Business Day, voluntarily prepay Advances in whole or in part; provided that the Borrowers shall have delivered to the Lender written notice of such prepayment (such notice, a “Notice of Prepayment”) not later than
2:00 p.m. ET
twoone
(21) Business
DaysDay
 prior to the date of such prepayment. Each such Notice of Prepayment shall be irrevocable and effective upon 

  
 19 

 
receipt and shall be dated the date such notice is being given, signed by a Responsible Officer of the Borrowers and otherwise appropriately completed. Each prepayment of any Advance by the
Borrowers pursuant to this Section 2.05(a) shall in each case be in a principal amount of at least $250,000 or, if less, the entire outstanding principal amount of the Advances of the Borrowers. If a Notice of Prepayment is given by the
Borrowers, the Borrowers shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. 

(b) Mandatory Prepayments. On any date on which the Borrowers are required to make a prepayment under the Senior Loan Agreement, the
Borrowers shall, on the date of such prepayment, make a prepayment of the outstanding Advances in an amount equal to the then-applicable Advance Percentage of the amount prepaid by the Borrowers under the Senior Loan Agreement. Notwithstanding the
preceding sentence to the contrary, a mandatory prepayment pursuant to this Section 2.05(b) shall only be required to the extent there are funds available to the Borrowers and the application of proceeds toward the prepayment of the
Advances hereunder is permitted by the terms of the Intercreditor Agreement. 
 (c) Additional Prepayment Provisions. Each prepayment
pursuant to this Section 2.05 shall be subject to Sections 2.04(c), 2.10 and 2.13. 
 Section 2.06
Changes of Commitment. The Commitment shall be automatically reduced to zero at 5:00 p.m. ET on the Commitment Termination Date. 

Section 2.07 Maximum Lawful Rate. It is the intention of the parties hereto that the interest on the Advances shall not exceed the
maximum rate permissible under Applicable Law. Accordingly, anything herein to the contrary notwithstanding, in the event any interest is charged to, collected from or received from or on behalf of the Borrowers by the Lender pursuant hereto or
thereto in excess of such maximum lawful rate, then the excess of such payment over that maximum shall be applied first to the payment of amounts then due and owing by the Borrowers to the Lender under this Agreement (other than in respect of
principal of and interest on the Advances) and then to the reduction of the outstanding principal amount of the Advances of the Borrowers. 

Section 2.08 Rescission or Return of Payment. The Borrowers agree that, if at any time (including after the occurrence of the
Final Maturity Date) all or any part of any payment theretofore made by it to the Lender or any designee of the Lender is or must be rescinded or returned for any reason whatsoever (including the insolvency, bankruptcy or reorganization of the
Borrowers or any of their Affiliates), the obligation of the Borrowers to make such payment to the Lender shall, for the purposes of this Agreement, to the extent that such payment is or must be rescinded or returned, be deemed to have continued in
existence and this Agreement and any other applicable Facility Document shall continue to be effective or be reinstated, as the case may be, as to such obligations, all as though such payment had not been made. 

Section 2.09 Post-Default Interest. The Borrowers shall pay interest on all Obligations that are not paid when due for the period
from the due date thereof until the date the same is paid in full at the Post-Default Rate. Interest payable at the Post-Default Rate shall be payable on each Payment Date and shall be paid and discharged in cash. 

  
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 Section 2.10 Payments Generally. All amounts owing and payable to the Lender or
any Indemnified Party, in respect of the Advances and other Obligations, including the principal thereof, interest, fees, indemnities, expenses or other amounts payable under this Agreement or any other Facility Document, shall be paid by the
Borrowers to the applicable recipient in Dollars, in immediately available funds. All payments shall be without counterclaim, setoff, deduction, defense, abatement, suspension or deferment. The Lender shall provide wire instructions to the Borrowers
in respect of payments in cash. Payments in cash must be received by the Lender on or prior to 2:00 p.m. on a Business Day, provided that payments in cash received after 2:00 p.m. on a Business Day will be deemed to have been paid on the next
following Business Day. Except as otherwise expressly provided herein, all computations of interest, fees and other Obligations shall be made on the basis of a year of three-hundred sixty (360) days for the actual number of days elapsed in
computing interest on any Advance, the date of the making of the Advance shall be included and the date of payment shall be excluded, provided that if an Advance is repaid on the same day on which it is made, one (1) day’s interest shall
be paid on such Advance. All computations made by the Lender under this Agreement or any other Facility Document shall be conclusive, absent manifest error. 

Section 2.11 Commitment Fee. For each calendar quarter during the Availability Period beginning on January 1, 2022, the
Borrowers shall pay to the Lender a non-refundable Commitment Fee. The Commitment Fee shall be calculated as of the beginning of each calendar quarter, and fully earned as of the beginning of each such calendar quarter, for and with respect to
Advances made available hereunder during such calendar quarter. Each fully earned Commitment Fee shall be due and payable on a quarterly basis on the first (1st) Business Day of each calendar
quarter, and any unpaid portion thereof shall be immediately due and payable upon any acceleration of the Obligations hereunder or upon the Final Maturity Date. 

Section 2.12 Unused Facility Fee. For each calendar quarter during the Availability Period beginning on January 1, 2022, the
Borrowers shall pay to the Lender an Unused Facility Fee. Each Unused Facility Fee shall be payable in arrears within fifteen (15) Business Days following the end of the applicable calendar quarter, and any unpaid portion thereof shall be
immediately due and payable upon any acceleration of the Obligations hereunder or upon the Final Maturity Date. 
 Section 2.13
Voluntary Prepayment Fee. If, at any time after January 1, 2022 and prior to the Final Maturity Date, the Borrowers make a voluntary prepayment on any Advance pursuant to Section 2.05(a) (the amount of any such prepayment(s),
the “Voluntary Prepayment Amount”), the Borrowers shall pay to the Lender a Voluntary Prepayment Fee with respect to such Voluntary Prepayment Amount. Each Voluntary Prepayment Fee shall be payable within fifteen (15) Business
Days following the applicable prepayment(s), and any unpaid portion thereof shall be immediately due and payable upon any acceleration of the Obligations hereunder or upon the Final Maturity Date. 

Section 2.14 Extension of the Availability Period. The Lender and the Borrowers may agree to extend the Availability Period at any
time in their respective sole discretion. As part of any extension of the Availability Period the Final Maturity Date shall also be extended by an equal period of time unless otherwise mutually agreed to by the Lender and the Borrowers. 

  
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 ARTICLE III 

CONDITIONS PRECEDENT 

Section 3.01 Conditions Precedent to Effectiveness. The effectiveness of this Agreement shall be subject to the conditions
precedent that the Lender shall have received, reviewed and approved on or before the Closing Date the following, each in form and substance reasonably satisfactory to the Lender: 

(a) each of the Facility Documents required to be delivered on the Closing Date and the Intercreditor Agreement duly executed and delivered by
the parties thereto, which shall each be in full force and effect; 
 (b) true and complete copies of the Senior Facility Documents, as in
effect on the Closing Date; 
 (c) true and complete copies of the Constituent Documents of each Borrower, Guarantor and Pledgor as in effect
on the Closing Date; 
 (d) a certificate of a Responsible Officer of each Borrower, Guarantor and Pledgor certifying (i) as to such
entity’s Constituent Documents, (ii) as to such entity’s resolutions or other action of such entity’s board of directors or members approving this Agreement and the other Facility Documents to which such entity is a party and the
transactions contemplated hereby and thereby, (iii) a good standing certificate issued by the secretary of state of such entity’s state of formation, and (iv) as to the incumbency and specimen signature of each of such entity’s
Responsible Officers authorized to execute the Facility Documents to which such entity is a party; 
 (e) a certificate of a Responsible
Officer of such Borrower certifying (i) that such Borrower’s representations and warranties set forth in the Facility Documents to which such Borrower is a party are true and correct in all material respects as of the Closing Date (except
to the extent such representations and warranties expressly relate to any earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date), and (ii) that no Default or
Event of Default has occurred and is continuing hereunder and no “Default” or “Event of Default” under the Senior Loan Agreement has occurred and is continuing thereunder; 

(f) (i) proper financing statements (or the equivalent thereof in any applicable foreign jurisdiction, as applicable), to be duly filed
substantially concurrently with the Closing Date, under the UCC with the Delaware Secretary of State and any other applicable filing office in any applicable jurisdiction that the Lender deems necessary or desirable in order to perfect the
Lender’s interests in the Collateral contemplated by this Agreement and (ii) all other actions as the Lender shall have requested to perfect the security interests created hereunder shall have been taken; 

(g) the “Termination Date” under the Senior Loan Agreement shall not have occurred, and the Senior Loan Agreement shall be in
full force and effect; 

  
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 (h) a favorable written opinion of DLA Piper LLP (US), special counsel for the Borrowers,
(A) dated the Closing Date, (B) addressed to the Lender and (C) covering such matters relating to the Facility Documents as the Lender shall reasonably request; and 

(i) completion of such know your customer, background and other checks on the Borrowers as the Lender shall have reasonably requested. 

Section 3.02 Conditions Precedent to Each Borrowing. The obligation of the Lender to make each Advance to be made by it (including
the initial Advance) on each Borrowing Date shall be subject to the fulfillment of the following conditions: 
 (a) the Lender shall have
received a Notice of Borrowing with respect to such Advance (including the related Senior Facility Funding Request, all duly completed) delivered in accordance with Section 2.02; 

(b) each of the representations and warranties of the Borrowers contained in the Facility Documents shall be true and correct in all material
respects as of such Borrowing Date (except to the extent such representations and warranties expressly relate to any earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such
earlier date as if made on such date); 
 (c) no Default or Event of Default shall have occurred and be continuing at the time of the making
of such Advance or shall result upon the making of such Advance; 
 (d) the Availability Period shall not have terminated; 

(e) the Borrowers shall have paid all of the Lender’s reasonable and documented out-of-pocket fees, costs and expenses, including
reasonable and documented out-of-pocket attorneys’ fees, costs and expenses of counsel (including, without limitation, those of Cogent Legal Services LLC), if any, incurred in connection with such Borrowing; and 

(f) the related Senior Advance Amount shall have been funded by the Senior Lender. 

Section 3.03 Conditions Precedent to Each Borrowing on and after the Amendment and Restatement Effective Date. The obligation of
the Lender to make each Advance to be made by it on each Borrowing Date on and after the Amendment and Restatement Effective Date shall be subject to the fulfillment of the following conditions: 

(a) receipt by the Lender of duly executed copy or facsimile, whether in portable document format (pdf) or otherwise, of signatures to each of
the Facility Documents dated as of the Amendment and Restatement Effective Date; provided, however, that original signatures to such Facility Documents shall be delivered to the Lender as soon as reasonably practicable; and 

(b) duly executed copy or facsimile, whether in portable document format (pdf) or otherwise, of a certificate with respect to each Borrower and
each Guarantor evidencing that the execution and delivery of the Facility Documents dated as of the Amendment and Restatement Effective Date to which it is a party, and all transactions related thereto have been duly authorized. 

  
 23 

 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

Section 4.01 Representations and Warranties of the Borrowers. Each Borrower represents and warrants to the Lender on and as of the
Closing Date, the Amendment and Restatement Effective Date and each Borrowing Date, as follows: 
 (a) Organization and Good
Standing. Such Borrower is a Delaware limited liability company, duly organized, validly existing, and in good standing under the laws of the jurisdiction of its formation, and has full power, authority and legal right to own or lease its
properties and conduct its business as such business is presently conducted and had at all relevant times on and after the Closing Date, and now has, all necessary power, authority and legal right to acquire, own and pledge the Collateral. 

(b) Due Qualification and Good Standing. Such Borrower is qualified to do business as a Delaware limited liability company, is in good
standing, and has obtained all licenses and approvals as required under the laws of all jurisdictions in which the ownership or lease of its property and or the conduct of its business (including the performance of its obligations under this
Agreement, the other Facility Documents to which it is a party and its Constituent Documents) requires such qualification. standing, license or approval, except to the extent that the failure to so qualify, maintain such standing or be so licensed
or approved would not have a Material Adverse Effect. 
 (c) Power and Authority; Due Authorization. Such Borrower (i) has all
necessary power and authority and legal right to (A) execute and deliver this Agreement and the other Facility Documents to which it is a party, (B) carry out the terms of the Facility Documents to which it is a party, (C) grant Liens
on the Collateral, and (D) receive Advances on the terms and conditions provided herein, and (ii) has duly authorized by all necessary limited liability company action the execution, delivery and performance of this Agreement and the other
Facility Documents to which it is a party and the Lien on the Collateral on the terms and conditions herein provided. This Agreement and each other Facility Document to which such Borrower is a party have been duly executed and delivered by such
Borrower. 
 (d) No Violation. The execution and delivery of this Agreement and each Facility Document to which such Borrower is a
party, the Borrowings, the pledge of the Collateral hereunder, the performance by such Borrower of the transactions contemplated hereby and thereby and the fulfillment of the terms hereof and thereof will not conflict with or result in any breach of
any of the terms and provisions of, and will not constitute (with or without notice or lapse of time or both) a default under, such Borrower’s Constituent Documents or any material Contractual Obligation of such Borrower and will not conflict
with or violate, in any material respect, any Applicable Law. Such Borrower is not party to any agreement or instrument or subject to any corporate restriction that has resulted or could reasonably be expected to result in a Material Adverse Effect.

  
 24 

 (e) No Proceedings. There are no proceedings against such Borrower or, to the
knowledge of such Borrower, against the Parent or any of its Subsidiaries, before any Governmental Authority (i) asserting the invalidity of this Agreement or any Facility Document to which such Borrower is a party, (ii) seeking to prevent
the consummation of any of the transactions contemplated by this Agreement or any Facility Document to which such Borrower is a party or (iii) seeking any determination or ruling that could reasonably be expected to have a Material Adverse
Effect. 
 (f) All Consents Required. All Governmental Authorizations and Private Authorizations required in connection with the due
execution, delivery and performance by such Borrower of this Agreement and any Facility Document to which such Borrower is a party, have been obtained. 

(g) Agreements Enforceable. This Agreement and each Facility Document to which such Borrower is a party constitute the legal, valid and
binding obligation of such Borrower, enforceable against such Borrower in accordance with their respective terms, except as such enforceability may be limited by Insolvency Laws and except as such enforceability may be limited by general principles
of equity (whether considered in a suit at law or in equity). 
 (h) Solvency. Such Borrower is not the subject of any Insolvency
Proceeding or Insolvency Event. After giving effect to the transactions contemplated under this Agreement and each Facility Document to which such Borrower is a party, such Borrower will be Solvent. 

(i) Senior Facility Documents. True, correct and complete copies of the material Senior Facility Documents in effect as of the date
hereof have been delivered to the Lender. 
 (j) Taxes. Such Borrower has timely filed or caused to be timely filed all federal income
tax returns and all other material Tax returns required to be filed by it. Such Borrower has paid all federal and state Taxes and all assessments made against it or any of its property (other than any amount of Tax the validity of which is being
contested in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided on the books of such Borrower). 

(k) Government Regulations. Such Borrower is not engaged in the business of extending credit for the purpose of “purchasing”
or “carrying” any Margin Stock. Such Borrower owns no Margin Stock, and no portion of the proceeds of any Advance hereunder will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose
of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause any portion of such proceeds to be considered a “purpose credit” within the meaning of
Regulation T, U or X of the Federal Reserve Board. Such Borrower will not take or permit to be taken any action that might cause any Facility Document to violate any regulation of the Federal Reserve Board. 

  
 25 

 (l) No Liens. The Collateral is owned by the applicable Borrower free and clear of
any Lien (except for Permitted Liens as provided herein), claim or encumbrance of any Person, and the Lender, has a valid and, upon the taking of all of the actions required hereunder for perfection, including but not limited to the requirements
under Section 4.01(m) hereof, second priority security interest at all times prior to the Senior Facility Release Date, and first priority security interest following the Senior Facility Release Date, in each case in the Collateral then
existing or thereafter arising, free and clear of any Liens, except for Permitted Liens; provided, however, that such security interest shall be a first priority security interest at all times on and after the Senior Facility Release Date. No
effective financing statement or other instrument similar in effect covering any Collateral is on file in any recording office except such as may be filed in favor of the Lender relating to this Agreement or the Senior Lender. Such Borrower is not
aware of the filing of any judgment, ERISA or material tax lien filings against such Borrower, except for Permitted Liens. 
 (m) Security
Interest. This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in favor of the Lender in the Collateral, which is enforceable in accordance with Applicable Law, and upon the taking of all actions
required hereunder for perfection, including but not limited to the requirements under this Section 4.01(m), will be prior to all other Liens except Permitted Liens and will be enforceable as such against creditors of and purchasers from
such Borrower. Substantially concurrently with the Closing Date, all filings (including, without limitation, such UCC filings) as are necessary in any jurisdiction to perfect the interest of the Lender in the Collateral have been or will be made and
are or will be effective. 
 (i) This Agreement constitutes a “security agreement” within the meaning of Section 9 102(a)(73)
of the UCC as in effect from time to time in the State of New York. 
 (ii) The Collateral is comprised of “general intangibles,”
“deposit accounts,” “investment property” and “proceeds” (each as defined in the applicable UCC) and such other categories of collateral under the applicable UCC as to which such Borrower has complied with its
obligations under this Section 4.01(m) (Security Interest). 
 (iii) All Collateral is owned by such Borrower, free and clear of
any adverse claim, judgment or Lien other than Permitted Liens. 
 (iv) At such time following the Senior Facility Release Date that any
Pledged Membership Interests are no longer held by the Senior Lender (the “Pledged Interest Control Date”), such Borrower has taken all action required on its part for control (as defined in Section 8-106 of the UCC) to have
been obtained by the Lender over the Pledged Membership Interests. As of and after the Pledged Interest Control Date, no person other than the Lender will have control or possession of all or any part of the Pledged Membership Interests. Without
limiting the foregoing, all certificates, agreements or instruments representing or evidencing the Pledged Membership Interests in existence on the date hereof have been delivered to the Lender on the Pledged Interest Control Date in suitable form
for transfer by delivery or accompanied by duly executed instruments of transfer or assignment in blank. As of and after the Pledged Interest Control Date, no financing statement or other similar instrument in effect covering any of the Collateral
or any interest therein is on file in any recording office except such as may be filed in connection with any Lien arising solely as the result of any action taken by the Lender (or any assignee thereof). No consent of any other Person and no
authorization, approval, or other action 

  
 26 

 
by, and no notice to or filing with, any Governmental Authority is required (x) for the pledge by such Borrower of the Collateral pursuant to this Agreement, (y) for the perfection or
maintenance of the security interest created hereby (including the second priority nature of such security interest prior to the Senior Facility Release Date and first priority security nature thereafter subject to Permitted Liens) or (z) for
the exercise by the Lender of the rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement. 

(n) Reports Accurate. All information, documents, books, records or reports furnished or to be furnished by or on behalf of such
Borrower to the Lender in connection with this Agreement or any other Facility Document are true, complete and accurate in all material respects to the best knowledge of the Person at the time of delivery thereof 

(o) Location of Offices. Such Borrower’s location (within the meaning of Article 9 of the UCC) is Delaware. Such Borrower’s
principal place of business and chief executive office and the office where such Borrower keeps all its records is located at the address of such Borrower referred to in Schedule 1 hereof (or at such other locations as to which the notice and other
requirements specified in Section 5.02(g) (Change of Name or Jurisdiction of Borrower; Records) shall have been satisfied). Such Borrower has not changed its name, whether by amendment of its certificate of formation, by reorganization
or otherwise, or its jurisdiction of organization within the period commencing on the date of formation of such Borrower and ending on the Closing Date. 

(p) Tradenames. Such Borrower has no trade names, fictitious names, assumed names or “doing business as” names or other names
under which it has done or is doing business. 
 (q) Separate Entity. Such Borrower is operated as an entity with assets and
liabilities distinct from those of each Offerpad Entity and any Affiliates thereof (other than such Borrower), and such Borrower hereby acknowledges that the Lender is entering into the transactions contemplated by this Agreement in reliance upon
such Borrower’s identity as a separate legal entity from the other Offerpad Entities and from each such other Affiliate of the other Offerpad Entities, other than for tax purposes. Such Borrower is and since the date of its formation has at all
times been in compliance with Section 5.01(g) (Separate Existence). 
 (r) Investment Company Act. Such Borrower is not,
and after giving effect to the transactions contemplated hereby, will not be, required to register as, an “investment company” within the meaning of the Investment Company Act. 

(s) ERISA. Such Borrower is in material compliance with ERISA with respect to its Plans and has not incurred and does not expect to
incur any liabilities (except for premium payments arising in the ordinary course of business) payable to the PBGC under ERISA with respect to its Plans. 

(t) Plan Assets. The assets of such Borrower are not treated as “plan assets” for purposes of Section 3(42) of ERISA, and
the Collateral is not deemed to be “plan assets” for purposes of Section 3(42) of ERISA. Such Borrower has not taken, or omitted to take, any action which would result in any of the Collateral being treated as “plan assets”
for purposes of Section 3(42) of ERISA or the occurrence of any Prohibited Transaction in connection with the transactions contemplated hereunder. 

  
 27 

 (u) Accuracy of Representations and Warranties. Each representation or warranty by
such Borrower contained herein or in any report, financial statement, exhibit, schedule, certificate or other document furnished by such Borrower pursuant hereto, in connection herewith or in connection with the negotiation hereof is true and
correct in all material respects (except for such representations and warranties as are qualified by materiality, a Material Adverse Effect, knowledge or any similar qualifier, which representations shall be true and correct in all respects). 

(v) USA Patriot Act. Neither such Borrower nor any of such Borrower’s Affiliates is (w) a Sanctioned Person, (x) a Person
that resides or has a place of business in a country or territory named on such lists or which is designated as a “Non-Cooperative Jurisdiction” by the Financial Action Task Force on Money Laundering, or whose subscription funds are
transferred from or through such a jurisdiction, (y) a “Foreign Shell Bank” within the meaning of the Patriot Act, i.e., a foreign bank that does not have a physical presence in any country and that is not affiliated with a bank that
has a physical presence and an acceptable level of regulation and supervision, or (z) a person or entity that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of the Treasury under
Section 311 or 312 of the Patriot Act as warranting special measures due to money laundering concerns. 
 (w) No Material Adverse
Effect. No event, development or circumstance that has had or would reasonably be expected to have a Material Adverse Effect has occurred since October 26, 2016. 

(x) Compliance with Law. Such Borrower has complied in all material respects with all Applicable Laws to which it may be subject, and no
item of Collateral contravenes any Applicable Law in any material respect. 
 (y) Tax Status. For U.S. federal income tax purposes,
such Borrower is (i) disregarded as an entity separate from its owner and (ii) has not made an election under U.S. Treasury Regulation Section 301.7701 3 and is not otherwise treated as an association taxable as a corporation. 

(z) Investments. Such Borrower does not own or hold, directly or indirectly, any capital stock or equity security of, or any equity
interest in, any Person (other than, in the case of the Parent Borrower, the other Borrowers). 
 (aa) Business. Since its formation,
such Borrower has conducted no business other than holding equity interests in the other Borrowers (only in the case of the Parent Borrower), the borrowing of funds under this Agreement and the Senior Loan Agreement, entering into the Facility
Documents and the Senior Loan Documents to which it is a party, performing its duties and obligations and exercising its rights and privileges thereunder, granting Liens on Collateral under the Facility Documents and the Senior Loan Documents, and
such other activities as are incidental to the foregoing. 

  
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 ARTICLE V 

COVENANTS 

Section 5.01 Affirmative Covenants of Each Borrower. Each Borrower hereby covenants and agrees that, until the Final Payment
Date: 
 (a) Compliance with Laws; Authorizations. Such Borrower shall (i) comply in all material respects with all
Applicable Laws and all Contractual Obligations and (ii) obtain, maintain and keep in full force and effect all Governmental Authorizations, Private Authorizations and Governmental Filings which are necessary to properly carry out its business
and the transactions contemplated to be performed by it under the Facility Documents to which it is a party and its Constituent Documents. 

(b) Preservation of Existence. Such Borrower shall preserve and maintain its existence, rights, franchises and privileges in the
jurisdiction of its formation, and qualify and remain qualified in good standing in each jurisdiction where the failure to maintain such existence, rights, franchises, privileges and qualification has had, or would reasonably be expected to have, a
Material Adverse Effect. 
 (c) Performance and Compliance with Collateral. Such Borrower shall, at its expense, timely and fully
perform and comply with all provisions, covenants and other promises (if any) required to be observed by it under agreements related to the Collateral. 

(d) Keeping of Records and Books of Account. Such Borrower shall keep proper books of record and account in which full, true and correct
entries in conformity with GAAP as consistently applied and all requirements of law are made of all dealings and transactions in relation to its business and activities. Such Borrower shall permit any representatives designated by the Lender to
visit, on any Business Day during normal business hours, and inspect the financial records and the properties of such Borrower upon reasonable prior notice. 

(e) Collateral. With respect to each item of Collateral acquired by such Borrower, such Borrower shall (i) take all actions
necessary to perfect, protect and more fully evidence such Borrower’s ownership of or security interest in such Collateral, including, without limitation, (A) filing and maintaining, effective financing statements (Form UCC 1) naming such
Borrower as debtor and the Lender as secured party in all necessary or appropriate filing offices, and filing continuation statements, amendments or assignments with respect thereto in such filing offices, and (B) executing or causing to be
executed such other instruments or notices as may be necessary or appropriate, and (ii) take all additional action that the Lender may reasonably request to perfect, protect and more fully evidence the respective interests of the parties to
this Agreement in the Collateral. 
 (f) Separate Existence. Such Borrower shall be in compliance with the special purpose entity
requirements set forth in Section 5.02(1) (Special Purpose Entity). 

  
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 (g) Taxes. Such Borrower shall (i) timely file or cause to be timely filed all
federal and material state tax returns required to be filed by it, (ii) timely pay all federal and material state taxes that become due and payable and all assessments made against it or any of its property (other than any amount of tax or
assessment the validity of which is being contested in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided on the books of such Borrower) and (iii) satisfy or contest any tax lien
that is filed or any claim asserted against its property due to any tax, except where the failure to do so would not, individually or in the aggregate, have a Material Adverse Effect. 

(h) Use of Proceeds. Such Borrower will use the proceeds of each Advance made hereunder, together with the proceeds received by such
Borrower from borrowings from the Senior Lender under the Senior Loan Agreement, for the purpose of financing the acquisition of, holding, renovating and maintaining the Eligible Properties identified to the Lender in writing on each “Property
Schedule” delivered pursuant to the Senior Loan Agreement, as such Property Schedule may be amended from time to time, and for other general corporate purposes not inconsistent with the terms of this Agreement. 

(i) Reporting. Such Borrower will furnish to the Lender: 

(i) As soon as available, but in any event no later than one hundred twenty (120) days after the end of each fiscal year, consolidated
financial statements of the
ParentGuarantor
 as of the end of such fiscal year, audited by an independent certified public accountants reasonably acceptable to the Lender and certified, without any qualifications (including any (x) “going
concern” or like qualification or exception, (y) qualification or exception as to the scope of such audit or (z) qualification which relates to the treatment or classification of any item and which, as a condition to the removal of
such qualification, would require an adjustment to such item) (other than, with respect to any report delivered within one year prior to the Final Maturity Date, any explanatory paragraph or note made due to such Final Maturity Date occurring within
one year after such report and other than, with respect to any report delivered within one year prior to the Maturity Date (as defined in the Senior Loan Agreement), any explanatory paragraph or note made due to such Maturity Date (as defined in the
Senior Loan Agreement) occurring within one year after such report), by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, and statement of cash flow and,
if prepared, such accountants’ letter to management, in each case, as at the end of such year and the related statements of income and retained earnings for such year, setting forth in each case in comparative form the figures for the previous
year or predecessor period, as applicable); 
 (ii) As soon as available, but in any event not later than sixty (60) days after
the end of each fiscal quarter of each fiscal year of the
ParentGuarantor
, the unaudited balance sheets of the ParentGuarantor as at the end of such quarter and the related unaudited
statements of income and retained earnings of the
ParentGuarantor
 for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the figures for the previous year (or predecessor period, as
applicable), certified by a Responsible Officer as being fairly stated in all material respects (subject to normal year-end audit adjustments); 

(iii) All such financial statements shall be complete and correct in all material respects and shall be prepared in reasonable detail and in
accordance with GAAP applied consistently throughout the periods reflected therein and with prior periods (except as approved by such accountants or officer, as the case may be, and disclosed therein); 

  
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 (iv) Borrowing Base Certificate. Such Borrower shall deliver to the Lender a copy of
each Final Report (as defined under the Senior Loan Agreement) at the same time such Final Report is delivered to the Senior Lender; 
 (v)
Significant Events. As soon as possible and in any event within three (3) Business Days after a Responsible Officer obtains Knowledge of the occurrence of a Default or Event of Default, a written statement, signed by a Responsible
Officer, setting forth the details of such event and the action that such Borrower proposes to take with respect thereto; 
 (vi)
Breaches of Representations and Warranties. Promptly upon such Borrower obtaining Knowledge that any representation or warranty set forth in Section 4.01 was incorrect in any material respect at the time it was given or deemed to
have been given and at the same time deliver to the Lender a written notice setting forth in reasonable detail the nature of such facts and circumstances. In particular, but without limiting the foregoing, such Borrower shall notify the Lender in
the manner set forth in the preceding sentence before any Borrowing Date of any facts or circumstances within the Knowledge of such Borrower which would render any of the said representations and warranties untrue in any material respect at the date
when such representations and warranties were made or deemed to have been made; 
 (vii) Other Information. Promptly upon request,
such other information, documents, records or reports or the condition or operations, financial or otherwise, of such Borrower as the Lender may from time to time reasonably request in order to protect the interests of the Lender under or as
contemplated by this Agreement. Without duplication of anything provided to the Lender hereunder, such Borrower shall provide to the Lender any information, documents, records or reports or the condition or operations, financial or otherwise that is
provided to the Senior Lender substantially contemporaneously when such is provided to the Senior Lender; 
 (viii) Material Adverse
Effect. Promptly upon such Borrower obtaining Knowledge of a Material Adverse Effect, including, without limitation, the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or
affecting such Borrower or any portion of the Collateral that, if adversely determined, would reasonably be expected to result in a Material Adverse Effect; 

(ix) Facility Document Reporting. Promptly, but in no event later than three (3) Business Days after its receipt thereof, copies
of any and all default notices or reports delivered under any Facility Document; 
 (x) [Reserved]; 

(xi) ERISA. Promptly after receiving notice of any ERISA Event, a copy of such notice and copies of any communications with all
Governmental Authorities or any Multiemployer Plan with respect to such ERISA Event; 

  
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 (xii) Corporate Changes. At least thirty (30) days prior written notice of any
change in the name, jurisdiction of organization, corporate structure, tax characterization or location of records of such Borrower, provided that such Borrower agrees not to effect or permit any such change referred unless it has delivered to the
Lender all Uniform Commercial Code financing statements and amendments thereto as the Lender shall request and has taken all other actions deemed reasonably necessary by the Lender to continue its perfected status in the Collateral with the same or
better priority; 
 (xiii) Anti-money laundering. Upon request, all information reasonably available to such Borrower and reasonably
required by the Lender to carry out its obligations under applicable anti money laundering laws and the Lender’s anti-money laundering policies and procedures. 

(j) Maintenance of Properties; Insurance. Such Borrower shall maintain and preserve all of its properties which are necessary or useful
in the proper conduct of its business in good working order and condition, ordinary wear and tear excepted, and comply in all material respects at all times with the provisions of all material leases to which it is a party as lessee, so as to
prevent any loss or forfeiture thereof or thereunder. Such Borrower shall cause each Property to be covered by insurance in accordance with the Insurance Requirements set forth on Exhibit C. The Lender shall not be liable for any Insurance
Premiums thereon or subject to any assessments under any insurance policy. 
 (k) Further Assurances. Such Borrower shall execute any
and all further documents, financing statements, agreements and instruments, and take all further action (including filing UCC and other financing statements, agreements or instruments) that may be required under Applicable Law and that the Lender
may reasonably request in order to effectuate the transactions contemplated by the Facility Documents and in order to grant, preserve, protect and perfect the validity and second priority at all times prior to the Senior Facility Release Date and
first priority thereafter (subject to Permitted Liens) of the security interests and Liens created or intended to be created hereby. Such Borrower shall deliver or cause to be delivered to the Lender all such instruments and documents (including
legal opinions and lien searches) as it shall reasonably request to evidence compliance with this Section 5.01(k). Such Borrower agrees to provide such evidence as the Lender shall reasonably request as to the perfection and priority
status of each such security interest and Lien. 
 (l) Obligations. Such Borrower shall pay its Indebtedness and other obligations
promptly and in accordance in all material respects with their terms and pay and discharge promptly when due all lawful claims for labor, materials and supplies or otherwise that, if unpaid, might give rise to a Lien upon the Collateral or any part
thereof. 
 (m) Tax Matters. Such Borrower shall (and the Lender hereby agrees to) treat the Advances as debt for U.S. federal, state
and local income and franchise tax purposes and will take no contrary position, unless otherwise required pursuant to a closing agreement with the U.S. Internal Revenue Service or other applicable Governmental Authority or a non-appealable judgment
of a court of competent jurisdiction. 

  
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 (n) Financial Covenants. The ParentGuarantor shall, at all times, maintain consolidated: 
 (i) Tangible Net Worth in an amount not less than
the Minimum Tangible Net Worth Amount; and 
 (ii) Liquidity in an amount not less than the Minimum Liquidity Amount. 

Section 5.02 Negative Covenants of Each Borrower. Each Borrower covenants and agrees that, until the Final Payment Date: 

(a) Activities of Borrower. Without the prior written consent of the Lender, such Borrower shall not engage in any business or activity
of any kind, or enter into any transaction or indenture, mortgage, instrument, agreement, contract, or other undertaking, which is not incidental to the transactions contemplated and authorized by this Agreement, any other Facility Document or the
Senior Facility Documents; provided that Borrowers shall be permitted to acquire and hold single-family residential real estate for rental purposes, without the prior written consent of the Lender. 

(b) Indebtedness. Such Borrower shall not create, incur, assume or suffer to exist any Indebtedness, except (i) obligations
incurred under this Agreement, any other Facility Document or any Senior Facility Document, (ii) liabilities incident to the maintenance of its existence in good standing and (iii) indebtedness in respect of endorsement of instruments or
other payment items for deposit or collection in the ordinary course of business. 
 (c) [Reserved]. 

(d) Security Interests. Except as contemplated by the Facility Documents, such Borrower shall not sell, pledge, assign or transfer to
any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Collateral, whether now existing or hereafter transferred hereunder, or any interest therein, other than Permitted Liens. Such Borrower will promptly notify the
Lender of the existence of any Lien on any Collateral, and such Borrower shall defend the right, title and interest of the Lender in, to and under the Collateral against all claims of third parties; provided, however, that nothing in this
Section 5.02(d) shall prevent or be deemed to prohibit such Borrower from suffering to exist Permitted Liens upon any Collateral. 

(e) Merger; Sales. Other than in connection with the SPAC Transaction, such Borrower shall not enter into any transaction of merger or
consolidation, or, to the fullest extent permitted by law, liquidate or dissolve itself (or suffer any liquidation or dissolution), or acquire or be acquired by any Person, or convey, sell, loan or otherwise dispose of all or substantially all of
its property or business, except as provided for in this Agreement. 
 (f) Distributions. Subject to the conditions set forth in the
Senior Facility Documents, Borrowers may make quarterly distributions in amounts equal to the Tax liabilities of its direct owners (or the ultimate owner(s) of a direct owner if such direct owner is a pass-through entity) attributable to items of
income or gain incurred or realized by the applicable Borrower. 

  
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 (g) Change of Name or Jurisdiction of Borrower; Records. Such Borrower shall not
change its name or jurisdiction of organization other than in accordance with Section 5.01(i)(xii) hereof. 
 (h) ERISA
Matters. Such Borrower shall not (a) engage or permit any member of the Borrower’s ERISA Group to engage in any prohibited transaction for which an exemption is not available or has not previously been obtained from the United States
Department of Labor, (b) permit to exist any accumulated funding deficiency, as defined in Section 302(a) of ERISA and Section 412(a) of the Code, or funding deficiency with respect to any Plan other than a Multiemployer Plan,
(c) fail to make any payments to a Multiemployer Plan that such Borrower or any member of its ERISA Group may be required to make under the agreement relating to such Multiemployer Plan or any law pertaining thereto could reasonably be expected
to result in a Material Adverse Effect, (d) terminate any Plan so as to result in any liability could reasonably be expected to result in a Material Adverse Effect, or (e) permit to exist any occurrence of any reportable event described in
Title IV of ERISA. 
 (i) Change in the Facility Documents. Such Borrower will not amend, modify, waive or terminate any terms or
conditions of any of the Facility Documents to which it is a party (or with respect to which it has consent rights) in a manner adverse to the interests of the Lender without the prior written consent of the Lender. 

(j) Senior Facility Documents. No Senior Facility Document may be amended, modified or supplemented without the prior consent of the
Lender except in accordance with the Intercreditor Agreement. 
 (k) No Assignments. Such Borrower will not assign or delegate, grant
any interest in or permit any Lien (other than Permitted Liens) to exist upon any of its rights, obligations or duties under this Agreement. 

(l) Special Purpose Entity. 

(i) Covenants Applicable to each Borrower. Each Borrower shall (a) own no assets, and shall not engage in any business, other than
the assets and transactions specifically contemplated by this Agreement and any other Facility Document, (b) not incur any Indebtedness or other obligation, secured or unsecured, direct or indirect, absolute or contingent (including
guaranteeing any obligation) without the Lender’s prior written consent, other than (i) with respect to the Property Documents (as defined in the Senior Loan Agreement) and the Retained Interests (as defined in the Senior Loan Agreement),
and (ii) as otherwise permitted under this Agreement, (c) not make any loans or advances to any Affiliate or third party and shall not acquire obligations or securities of its Affiliates, in each case other than in connection with the
acquisition of Eligible Properties and the sale of assets under the Facility Documents, (d) pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) only from its own assets, provided, however, that no
Person shall be required to make any direct or indirect additional capital contribution to such Borrower, (e) comply with the 

  
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provisions of its Constituent Documents, (f) do all things necessary to observe organizational formalities and to preserve its existence, and shall not amend, modify, waive provisions of or
otherwise change its Constituent Documents except with the prior written consent of the Lender, (g) maintain all of its books, records, financial statements and bank accounts separate from those of its Affiliates (except that Borrowers may
maintain joint bank accounts and financial records and statements with one another) and any financial statements may be consolidated with other entities to the extent consolidation is required under GAAP or as a matter of Requirements of Law;
provided, that (i) appropriate notation shall be made on such consolidated financial statements to indicate the separateness of a Borrower from such Affiliate and to indicate that such Borrower’s assets and credit are not available to
satisfy the debts and other obligations of such Affiliate or any other Person and (ii) such assets shall also be listed on such Borrower’s own separate balance sheet, and file its own tax returns (except to the extent consolidation is
required or permitted under Requirements of Law or separate tax returns are not required because Borrowers, as single-member limited liability companies, have chosen to be disregarded as separate entities for applicable tax purposes), (h) be,
and at all times shall hold itself out to the public as, a legal entity separate and distinct from any other entity (including any Affiliate), shall correct any known misunderstanding regarding its status as a separate entity, shall conduct business
in its own name, and shall not identify itself or any of its Affiliates as a division of the other, (i) maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its
contemplated business operations and shall remain Solvent, provided, however, that no Person shall be required to make any direct or indirect additional capital contribution to such Borrower, (j) not engage in or suffer any Change of Control
(as defined in the Senior Loan Agreement) or, to the fullest extent permitted by law, any dissolution, winding up, liquidation, consolidation or merger in whole or in part or convey or transfer all or substantially all of its properties and assets
to any Person (except as contemplated herein), (k) not commingle its funds or other assets with those of any Affiliate or any other Person (except as contemplated herein with respect to any other Borrower) and shall maintain its properties and
assets in such a manner that it would not be costly or difficult to identify, segregate or ascertain its properties and assets from those of any Affiliate or any other Person, (1) except as contemplated herein with respect to each other
Borrower, maintain its properties, assets and accounts separate from those of any Affiliate or any other Person, (m) except as expressly contemplated herein with respect to any other Borrower, not hold itself out to be responsible for the debts
or obligations of any other Person, (n) not, without the prior unanimous written consent of all of its board of directors including the Independent Director, take any Insolvency Action, (o) (i) have at all times one Independent
Director appointed by such Borrower and (ii) provide the Lender with up-to-date contact information for each such Independent Director and a copy of the agreement pursuant to which such Independent Director consents to and serves as an
“Independent Director” for such Borrower, (p) the Constituent Documents for such Borrower shall provide (i) that no Independent Director of such Borrower may be removed or replaced except as a result of an Independent Director
Event or as otherwise consented to by the Lender in writing and Borrower must provide the Lender with not less than three (3) Business Days’ prior written notice of (x) any such proposed removal of an Independent Director, together
with a statement as to the reasons for such removal, and (y) the identity of the proposed replacement Independent Director, together with a certification that such replacement satisfies the requirements set forth in the organizational documents
for an Independent Director and (ii) that (x) any Independent Director of such Borrower shall not have any fiduciary duty to 

  
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anyone including the holders of the equity interests in such Borrower and any Affiliates of such Borrower except such Borrower and the creditors of such Borrower with respect to taking of, or
otherwise voting on, any Insolvency Action, (y) to the fullest extent permitted by Requirements of Law, and notwithstanding any duty otherwise existing at law or in equity, the Independent Director shall consider only the interests of such
Borrower, including the constituent members of such Borrower (the “Borrower Constituent Members”) in acting or otherwise voting on the matters provided for herein, which such fiduciary duties to Borrower Constituent Members and such
Borrower (including such Borrower’s creditors), in each case, shall be deemed to apply solely to the extent of their respective economic interests in such Borrower exclusive of (A) all other interests (including, without limitation, all
other interests of Borrower Constituent Members), (B) the interests of other Affiliates of Borrower Constituent Members and such Borrower and (C) the interests of any group of Affiliates of which Borrower Constituent Members or such
Borrower is a part and (z) other than as provided above, the Independent Director shall have fiduciary duties of loyalty and care similar to that of a director of a business corporation organized under the General Corporate Law of the State of
Delaware; provided, that the foregoing shall not eliminate the implied contractual covenant of good faith and fair dealing, (q) not enter into any transaction with an Affiliate of such Borrower except those expressly contemplated under this
Agreement in favor of the Lender and on commercially reasonable terms substantially similar to those available to unaffiliated parties in an arm’s-length transaction, (r) maintain a sufficient number of employees in light of contemplated
business operations, (s) use separate stationery, invoices and checks bearing its own name, (t) allocate fairly and reasonably any overhead for shared office space and for services performed by an employee of an affiliate, and (u) not
pledge its assets to secure the obligations of any other Person or take any action or permit any action to be taken to encumber any Contributed Property except, in each case, pursuant to the Facility Documents. 

(ii) Covenants Applicable to each Borrower and Pledgor. Borrowers shall and shall cause Pledgor to comply with the following additional
provisions: 
 (1) For each Person that is a multi-member limited liability company, it shall have one member or shall be managed by a
manager that is a Special Purpose Entity, which is a corporation or a single-member Delaware limited liability company, with one Independent Director; and 

(2) For each Person that is a single-member limited liability company, it (i) shall be organized in a jurisdiction acceptable to the
Lender (provided that Delaware and Nevada are deemed to be acceptable jurisdictions), (ii) shall have one Independent Director or Independent Manager serving as manager of such company, (iii) shall not take any Insolvency Action and shall
not cause or permit the members or managers of such entity to take any Insolvency Action, either with respect to itself or any of its Subsidiaries unless all of its Independent Directors or Independent Managers then serving as managers of the
company shall have consented in writing to such action, and (iv) shall have either (A) a member which owns no economic interest in the company, has signed the company’s limited liability company agreement and has no obligation to make
capital contributions to the company, or (B) one natural person or one entity that is not a member of the company, that has signed its limited liability company agreement and that, under the terms of such limited liability company agreement
becomes a member of the company immediately prior to the resignation or dissolution of the last remaining member of the company. 

  
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 ARTICLE VI 

EVENTS OF DEFAULT 

Section 6.01 Events of Default. “Event of Default,” wherever used herein, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body): 
 (a) any Borrower shall fail to (i) pay any interest, fees or other amounts due under this Agreement or any other
Facility Document, and such failure shall continue for more than two (2) Business Days after the due date thereof; or (ii) repay all Advances and other Obligations to $0 on the Final Maturity Date; or 

(b) any default or termination event, after expiration of applicable notice and cure periods, if any, shall occur under any of the Senior
Facility Documents, but only to the extent such default or termination event has resulted in the obligations under the Senior Facility Documents becoming due prior to their scheduled maturity; or 

(c) if the Borrowers and/or the Senior Lender shall modify, amend or change any of the terms or conditions or any of the Senior Facility
Documents except as is permitted under the terms of the Intercreditor Agreement; or 
 (d) a default in any material respect in the
performance, or breach in any material respect, of any covenant, obligation or agreement of any Borrower(s) contained in Sections 5.01(b) (Preservation of Existence), 5.01(f) (Separate Existence). 5.01(h) (Use of Proceeds), or
5.02 (Negative Covenants of the Borrower) and such default or breach remains uncured (to the extent such default or breach may be cured) for a period of five (5) Business Days after the earlier of (x) written notice to the Borrowers
(which may be by e mail) by the Lender, and (y) the acquisition of actual knowledge thereof by a Responsible Officer of one of the Borrowers; or 

(e) except as otherwise provided in this Section 6.01, (i) the default by any Borrower in any material respect in the
performance, or breach in any material respect of any of its respective covenants or agreements, under this Agreement or the other Facility Documents to which it is a party, and, in each case, the continuation of such default, breach or failure for
a period of thirty (30) days after the earlier of (x) written notice to the Borrowers (which may be by e mail) by the Lender, and (y) the acquisition of actual knowledge thereof by a Responsible Officer of one of the Borrowers; or

  
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 (f) any representation or warranty of any Borrower made or deemed made in this Agreement or
any other Facility Document or any amendment or modification hereof or thereof, or in any Notice of Borrowing, or any other report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any
other Facility Document or any amendment or modification hereof or thereof, shall prove to be incorrect in any material respect as of the time when the same shall have been made or deemed to have been made and such breach, if susceptible to a cure,
shall continue unremedied for a period of thirty (30) days after date on which written notice of such failure requiring the same to be remedied shall have been given to such Borrower by the Lender; or 

(g) the institution by or against any Borrower or any Offerpad Entity of any proceedings under the Bankruptcy Code, or any other law in which
any Borrower or any Offerpad Entity is alleged to be insolvent or unable to pay its debts as they mature, or the making by any Borrower or any Offerpad Entity of an assignment for the benefit of creditors or the granting by any Borrower or any
Offerpad Entity of a trust mortgage for the benefit of creditors and, in any such case, such proceeding shall continue undismissed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing shall be entered; or

 (h) Parent Borrower ceases to have an ownership interest in, any material portion of the Collateral (subject to Permitted Liens) or the
Lender shall fail for any reason to have a valid security interest, subject and subordinate to the Senior Lender’s security interest, in any material portion of the Collateral; or 

(i) (1) any Facility Document shall (except in accordance with its terms), in whole or in part, terminate, cease to be effective or cease
to be the legally valid, binding and enforceable obligation of any Offerpad Entity, or (2) any Offerpad Entity shall, directly or indirectly, contest in any manner such effectiveness, validity, binding nature or enforceability or any Lien
purported to be created thereunder. 
 Subject to the following sentence, upon the occurrence of any Event of Default, in addition to all
rights and remedies specified in this Agreement and the other Facility Documents, including Article VII, and the rights and remedies of a secured party under Applicable Law, including the UCC, the Lender may, by notice to the Borrowers,
(1) terminate the Availability Period, (2) terminate the Commitment, and (3) declare the principal of and the accrued interest on the Advances and all other Obligations whatsoever payable by the Borrowers hereunder immediately due and
payable without presentment, demand, protest or other formalities of any kind, all of which are hereby waived by the Borrowers, in each case, without any further action by any party. Upon the occurrence of an Event of Default as a result of an
Insolvency Event of any Offerpad Entity, the principal of and the accrued interest on the Advances and all other Obligations whatsoever payable by the Borrowers hereunder shall automatically become immediately due and payable without presentment,
demand, protest or other formalities of any kind, all of which are hereby waived by each Borrower. 

  
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 ARTICLE VII 

PLEDGE OF COLLATERAL; RIGHTS OF THE LENDER 

Section 7.01 Grant of Security. Each Borrower hereby grants, pledges, transfers and collaterally assigns to the Lender as
collateral security for all Obligations, a continuing security interest in, and a Lien upon, all of such Borrower’s right, title and interest in, to and under, the following, in each case whether tangible or intangible, wheresoever
located, and whether now owned by such Borrower or hereafter acquired and whether now existing or hereafter coming into existence (collectively, the “Collateral”): all assets of the Borrowers but only to the extent that the Senior
Lender has a lien on such assets as of the Closing Date; provided that “Collateral” shall exclude all interests in Properties, other than Permitted Second Liens, as such term is defined in the Senior Loan Agreement. For the avoidance of
doubt, with regard to any Contributed Property, the Lender will not acquire a Lien on such Contributed Property until and unless a mortgage has been duly and validly recorded in the appropriate jurisdiction in favor of the Senior Lender to evidence
and perfect the Senior Lender’s first priority Lien on such Contributed Property. 
 Section 7.02 Release of Security
Interest. On the Final Payment Date, the Lender, shall, at the expense of the Borrowers, promptly execute, deliver and file or authorize for filing such instruments as the Borrowers shall reasonably request in order to reassign, release or
terminate the Lender’s security interest in and Lien on the Collateral. Any and all actions under this Article VII in respect of the Collateral shall be without any recourse to, or representation or warranty by the Lender and shall be at the
sole cost and expense of the Borrowers. 
 Section 7.03 Rights and Remedies. The Lender shall have all of the rights and
remedies of a secured party under the UCC and other Applicable Law. Upon the occurrence and during the continuance of an Event of Default, the Lender or its designee may, subject to the terms of the Intercreditor Agreement, (a) instruct the
Borrowers to deliver any or all of the Collateral, and any other document relating to the Collateral to the Lender or its designees and otherwise give all instructions for the Borrowers regarding the Collateral, (b) sell or otherwise dispose of
the Collateral in a commercially reasonable manner, all without judicial process or proceedings, (c) take control of the Proceeds of any such Collateral, (d) exercise any consensual or voting rights in respect of the Collateral,
(e) release, make extensions, discharges, exchanges or substitutions for, or sun-ender all or any part of the Collateral, (f) enforce the Borrowers’ rights and remedies with respect
to the Collateral, (g) institute and prosecute legal and equitable proceedings to enforce collection of, or realize upon, any of the Collateral, (h) require that the Borrowers immediately take all actions necessary to cause the liquidation
of the Collateral, (i) redeem any asset of the Borrowers to pay amounts due and payable in respect of the Obligations, (j) make copies of all books, records and documents relating to the Collateral and (k) endorse the name of any of
the Borrowers upon any items of payment relating to the Collateral or upon any proof of claim in bankruptcy against an account debtor. 

Each Borrower hereby agrees that, upon the occurrence and during the continuance of an Event of Default, at the request of the Lender, it
shall execute all documents and agreements which are necessary or appropriate to have the Collateral to be assigned to the Lender or its designee. For purposes of taking the actions described in clauses (a) through (k) of this
Section 7.03, each Borrower hereby irrevocably appoints the Lender as its attorney in fact (which appointment being coupled with an interest and is irrevocable while any of the Obligations remain unpaid), with power of substitution, in
the name of the Lender or in the name of such Borrower or otherwise, for the use and benefit of the Lender, but at the cost and expense of such Borrower and, except as expressly required by Applicable Law, without notice to such Borrower. 

  
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 The Lender agrees that unless an Event of Default shall have occurred and be continuing,
each Borrower may, to the extent such Borrower has such right as a holder of the Pledged Membership Interests, vote and give consents, ratifications and waivers with respect thereto, except to the extent that, any such vote, consent, ratification or
waiver could detract from the value thereof as Collateral or which could be inconsistent with or result in any violation of any provision of this Agreement, and from time to time, upon request from such Borrower, the Lender shall deliver to such
Borrower suitable proxies so that such Borrower may cast such votes, consents, ratifications and waivers. 
 The Lender agrees that such
Borrower may, unless an Event of Default shall have occurred and be continuing, receive and retain all cash dividends and other distributions with respect to the Pledged Membership Interests. 

Section 7.04 Remedies Cumulative. Each right, power, and remedy of the Lender, as provided for in this Agreement or in the other
Facility Documents or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power, or remedy provided for in this Agreement or in the other Facility
Documents or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by the Lender of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later
exercise by such Persons of any or all such other rights, powers, or remedies. 
 Section 7.05 Protection of Collateral.
Upon the Lender’s reasonable request, the Borrowers shall from time to time execute and deliver all such supplements and amendments hereto and file or authorize the filing of all such UCC 1 financing statements and continuation statements
and the equivalent thereof in any applicable foreign jurisdiction, if applicable, instruments of further assurance and other instruments, and shall take such other action as may be necessary or advisable to secure the rights and remedies of the
Lender hereunder (including, without limitation, following the Senior Facility Release Date, with respect to all Collateral over which control may be obtained within the meaning of Section 8-106 and 9-104 of the UCC, the Borrowers take all
actions as may be requested from time to time by the Lender so that control of such Collateral is obtained and at all times held by the Lender) and to: 

(a) grant security more effectively on all or any portion of the Collateral; 

(b) maintain, preserve and perfect any grant of security made or to be made by this Agreement including the second priority nature of the Lien
granted hereunder while at all times prior to the Senior Facility Release Date and first priority security interests thereafter or carry out more effectively the purposes hereof; 

(c) perfect, publish notice of or protect the validity of any grant made or to be made by this Agreement (including any and all actions
necessary as a result of changes in Law); 
 (d) enforce any of the Collateral or other instruments or property included in the Collateral;

  
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 (e) preserve and defend title to the Collateral and the rights therein of the Lender in the
Collateral against the claims of all third parties other than the Senior Lender; and 
 (f) pay or cause to be paid any and all taxes levied
or assessed upon all or any part of the Collateral. 
 Each Borrower hereby authorizes the Lender to prepare and file financing statements
with respect to the security interests granted hereby, continuation statements with respect thereto, and any amendments to such financing statements that may be necessary to continue to perfect the Lender’s interest in the Collateral. Each
Borrower agrees that such Borrower shall not file a termination statement with respect to any financing statement filed by the Lender in connection with any security interest granted under this Agreement if the Lender reasonably objects to the
filing of such termination statement, due to the continuing existence of any outstanding Obligations. Such financing statements may describe the Collateral in the same manner as described herein or may contain an indication or description of
Collateral that describes such property in any other manner as the Lender may determine in its sole discretion is necessary, advisable or prudent to ensure the perfection of the security interest in the Collateral granted herein, including, without
limitation, describing such property as “all assets, whether now owned or hereafter acquired” or “all personal property, whether now owned or hereafter acquired”; provided that in each case at all times prior to the Senior
Facility Release Date, such description shall include language that explicitly excludes interests in Properties, other than Permitted Second Liens, as such term is defined in the Senior Loan Agreement. 

ARTICLE VIII 

MISCELLANEOUS 

Section 8.01 No Waiver; Modifications in Writing. No failure or delay on the part of the Lender exercising any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver of any
provision of this Agreement or any other Facility Document, and any consent to any departure by any party to this Agreement or any other Facility Document from the terms of any provision of this Agreement or such other Facility Document, shall be
effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Borrowers in any case shall entitle the Borrowers to any other or further notice or demand in similar or other circumstances. No
amendment, modification, supplement or waiver of this Agreement shall be effective unless signed by the Borrowers and the Lender; provided, however, any such amendment executed prior to the Senior Facility Release Date shall require Borrowers to
obtain the consent of the Senior Lender prior to any such amendment, which consent shall be deemed given so long as it does not have a material effect on (i) any of the collateral of the Senior Lender, (ii) any rights of the Senior Lender
or obligations of Borrowers or (iii) any administrative, reporting or accounting requirements, in each case, under the Senior Facility Documents. 

  
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 Section 8.02 Notices, Etc. Except where telephonic instructions are authorized
herein to be given, all notices, demands, instructions and other communications required or permitted to be given to or made upon any party hereto shall be in writing and shall be personally delivered or sent by registered, certified or express
mail, postage prepaid, or by prepaid courier service, or by facsimile transmission or electronic mail with confirmation of receipt (if the recipient has provided a fax or an email address in Schedule 1), and shall be deemed to be given for purposes
of this Agreement on the day that such writing is received by the intended recipient thereof in accordance with the provisions of this Section 8.02. Unless otherwise specified in a notice sent or delivered in accordance with the
foregoing provisions of this Section 8.02, notices, demands, instructions and other communications in writing shall be given to or made upon the respective parties hereto at their respective addresses (or to their respective facsimile
numbers or email addresses) indicated in Schedule 1, and, in the case of telephonic instructions or notices, by calling the telephone number or numbers indicated for such party in Schedule 1. 

Section 8.03 Taxes.  

(a) Any and all payments by the Borrowers to or for the account of the Lender under any Facility Document shall be made free and clear of and
without deduction or withholding for any and all present or future Taxes with respect thereto, unless required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of the Borrowers) requires the deduction or
withholding of any Tax from any such payment by the Borrowers, then the Borrowers shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance
in all material respects with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrowers shall be increased as may be necessary so that after such deduction or withholding has been made (including such deductions
and withholdings applicable to additional sums payable under this Section 8.03) the applicable recipient receives an amount equal to the sum it would have received had no deductions or withholding of Indemnified Taxes been made.

 (b) The Borrowers agree to timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the
Lender timely reimburse it for the payment of, any Other Taxes. 
 (c) The Borrowers agree to indemnify the Lender, within ten (10) days
after demand therefor, for (i) the full amount of Indemnified Taxes (including any Indemnified Taxes imposed or asserted on amounts payable under this Section 8.03) payable or paid by the Lender or required to be withheld or
deducted from a payment to the Lender and (ii) any reasonable expenses arising from Indemnified Taxes or with respect thereto, in each case whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrowers by the Lender, shall be conclusive absent manifest error. 

(d) As soon as practicable after the date of any payment of Taxes by the Borrowers to a Governmental Authority pursuant to this
Section 8.03, the Borrowers will furnish to the Lender the original or a certified copy of a receipt issued by the relevant Governmental Authority evidencing payment thereof (or other evidence of payment as may be reasonably satisfactory
to the Lender). 

  
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 (e) If any party determines, in its sole discretion, exercised in good faith, that it has
received a refund of any Taxes as to which it has been indemnified pursuant to this Section 8.03 (including by the payment of additional amounts pursuant to this Section 8.03), it shall pay to the indemnifying party an amount
equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out of pocket expenses (including Taxes) of such indemnified party and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this
clause (e) (plus any penalties, interest, or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the
contrary in this clause (e), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this clause (e) the payment of which would place the indemnified party in a less favorable net after-Tax
position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld, or otherwise imposed and the indemnification payments or additional amounts with respect to
such Tax had never been paid. This paragraph shall entitle the Borrowers to request certification from an indemnified party as to whether it has received or expects to receive any such refund but shall not be construed to require any indemnified
party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person. 

(f) (i) If, at any time, the Lender is entitled to an exemption from or reduction of withholding Tax with respect to payments made under
any Facility Document, it shall deliver to the Borrowers, at the time or times reasonably requested by the Borrowers, such properly completed and executed documentation reasonably requested by the Borrowers as will permit such payments to be made
without withholding or at a reduced rate of withholding. In addition, the Lender, if reasonably requested by the Borrowers, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrowers as will enable
the Borrowers to determine whether or not the Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such
documentation (other than such documentation set forth in Sections 14.03(g)(ii), (iii), (v) and (vi) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would
subject the Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of the Lender. 

  
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 (ii) Without limiting the generality of Section 8.03(f)(i), to the extent the
Lender is a U.S. Person, the Lender shall, on or prior to the date on which it becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrowers), deliver to the Borrowers (in such number of copies
as shall be requested by the recipient), executed originals of U.S. Internal Revenue Service Form W-9 or any successor form, certifying that the Lender is entitled to an exemption from U.S. backup withholding tax. 

(iii) Without limiting the generality of Section 8.03(f)(i), to the extent the Lender is not a U.S. Person (a “Non-U.S.
Lender”), it shall, to the extent it is legally entitled to do so, deliver to the Borrowers (in such number of copies as shall be requested by the recipient), on or prior to the date on which such Non-U.S. Lender becomes a Lender under this
Agreement (and from time-to time thereafter upon the reasonable request of the Borrowers), whichever of the following is applicable: 
 (A)
in the case of a Non-U.S. Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Facility Document, executed originals of U.S. Internal Revenue Service Form
W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Facility Document, U.S.
Internal Revenue Service Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty; 

(B) executed originals of U.S. Internal Revenue Service Form W-8ECI; 

(C) in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code,
(x) a certificate reasonably satisfactory to the Borrowers to the effect that such Non-U.S. Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of any
Borrower within the meaning of Section 871(h)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed
originals of U.S. Internal Revenue Service Form W-8BEN-E; or 
 (D) to the extent a Non-U.S. Lender is not the beneficial owner, executed
copies of U.S. Internal Revenue Service Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate reasonably satisfactory to the Borrowers, IRS Form W-9, and/or other certification documents from each
beneficial owner, as applicable; provided that if the Non-U.S. Lender is a partnership and one or more direct or indirect partners of such Non-U.S. Lender are claiming the portfolio interest exemption, such Non-U.S. Lender may provide a U.S. Tax
Compliance Certificate reasonably satisfactory to the Borrowers, together with executed originals of U.S. Internal Revenue Service Form W-8BEN-E, on behalf of each such direct and indirect partner. 

  
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 (iv) Each Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to
the Borrowers (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the
Borrowers), executed originals of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable
Law to permit the Borrowers to determine the withholding or deduction required to be made. 
 (v) If a payment made to the Lender under any
Facility Document would be subject to FATCA Withholding Tax if the Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), the
Lender shall deliver to the Borrowers at the time or times prescribed by law and at such time or times reasonably requested by the Borrowers such documentation prescribed by Applicable Law and such documentation as is reasonably requested by the
Borrowers as may be necessary for the Borrowers to comply with their obligations thereunder and to determine that the Lender has complied with its obligations thereunder or to determine the amount to deduct and withhold from such payment. Solely for
purposes of this Section 8.03(f)(v), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 

(vi) The Lender agrees that, from time to time after the Closing Date, it shall deliver the forms described above, as applicable, as promptly
as practicable after (a) receipt of a reasonable written request therefor from the Borrowers or (b) when a lapse in time or change in circumstance renders a previously provided form or certificate obsolete or inaccurate. Notwithstanding
any other provision of this Section 8.03, the Lender shall not be required to deliver any form after the Closing Date pursuant to this Section 8.03(f) that it is not legally able to deliver. 

(g) If the Lender requires the Borrowers to pay any Indemnified Taxes or additional amount to the Lender or any Governmental Authority for the
account of the Lender pursuant to this Section 8.03. then the Lender shall (at the request of the Borrowers) use reasonable efforts to designate a different lending office for funding or booking its Advances hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or affiliates, if the Lender determines, in its discretion that such designation or assignment (i) would eliminate or reduce amounts payable pursuant to this
Section 8.03 in the future and (ii) would not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to the Lender. The Borrowers hereby agree to pay all reasonable and documented
out-of-pocket costs and expenses incurred by the Lender in connection with any such designation or assignment. 
 (h) Nothing in this
Section 8.03 shall be construed to require the Lender to make available its Tax returns (or, subject to Section 8.03(f), any other information relating to its Taxes that it deems confidential) to the Borrowers or any other
Person. 
 (i) Without prejudice to the survival of any other agreement of the Borrowers hereunder, the agreements and obligations of the
Borrowers and the Lender contained in this Section 8.03 shall survive any assignment of rights by, or the replacement of the Lender, and the termination of this Agreement. 

  
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 (j) For purposes of this Section, the term “Applicable Law” includes FATCA.

 Section 8.04 Costs and Expenses; Indemnification. 

(a) Each Borrower agrees, on a joint and several basis, to promptly pay on demand all reasonable and documented out of pocket costs and
expenses of the Lender in connection with the preparation, review, negotiation, reproduction, execution and delivery of this Agreement and the other Facility Documents, including the reasonable and documented fees and disbursements of counsel for
the Lender (including, without limitation, those of Cogent Legal Services LLC), reasonable and documented out-of-pocket costs and expenses of creating, perfecting, releasing or enforcing the Lender’s security interests in the Collateral,
including filing and recording fees, expenses, search fees, UCC filing fees and the equivalent thereof in any foreign jurisdiction, if applicable, and all other related fees and expenses in connection therewith; and in connection with the
administration and any modification or amendment of this Agreement or any other Facility Document and advising the Lender as to their respective rights, remedies and responsibilities. Each Borrower agrees, on a joint and several basis, to promptly
pay on demand all reasonable and documented out-of-pocket costs and expenses of the Lender in connection with the enforcement of this Agreement or any other Facility Document, including all reasonable and documented out-of-pocket costs and expenses
incurred by the Lender in connection with the preservation, collection, foreclosure or enforcement of the Collateral subject to the Facility Documents or any interest, right, power or remedy of the Lender or in connection with the collection or
enforcement of any of the Obligations or the proof, protection, administration or resolution of any claim based upon the Obligations in any insolvency proceeding, including all reasonable and documented out of pocket fees and disbursements of
attorneys, accountants, auditors, consultants, appraisers and other professionals engaged by the Lender. Without prejudice to its rights hereunder, the expenses and the compensation for the services of the Lender are intended to constitute expenses
of administration under any applicable bankruptcy law. For the avoidance of doubt, this Section 8.04(a) shall not apply to Taxes, which shall be covered by Section 8.03. 

(b) Each Borrower agrees, on a joint and several basis, to indemnify and hold harmless the Lender, and each of its Affiliates and the
respective officers, directors, employees, agents, managers of, and any Person controlling any of, the foregoing (each, an “Indemnified Party”) from and against any and all Liabilities that may be incurred by or asserted or awarded
against any Indemnified Party, in each case arising out of or in connection with or by reason of the execution, delivery, enforcement, performance, administration of or otherwise arising out of or incurred in connection with this Agreement, any
other Facility Document or any transaction contemplated hereby or thereby (and regardless of whether or not any such transactions are consummated), including any such Liability that is incurred or arises out of or in connection with, or by reason of
any one or more of the following: (i) in connection with any enforcement (including any action, claim or suit brought) by the Indemnified Party of any indemnification or other obligation of any Borrower, any other party to the Facility
Documents or any other Person and a defense of any claim, investigation, litigation or proceeding arising out of, related to or in 

  
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connection with this Agreement, any other Facility Document or any of the transactions contemplated hereby or thereby; (ii) any breach of any covenant by any Borrower contained in any
Facility Document; (iii) any representation or warranty made or deemed made by any Borrower contained in any Facility Document or in any certificate, statement or report delivered in connection therewith is false or incorrect; (iv) any
failure by any Borrower to comply with any Applicable Law or Contractual Obligation binding upon it; (v) any failure to vest, or delay in vesting, in the Lender a valid security interest in all of the Collateral, free and clear of all Liens
(other than Permitted Liens); (vi) any action or omission, not expressly authorized by the Facility Documents, by any Borrower or any Affiliate of any Borrower which has the effect of impairing the validity or enforceability of the Collateral
or the rights of the Lender with respect thereto; (vii) the failure to file, or any delay in filing, financing statements, continuation statements or the equivalent thereof in any foreign jurisdiction or other similar instruments or documents
under the UCC of any applicable jurisdiction or other Applicable Law with respect to any Collateral, whether at the time of any Advance or at any subsequent time; and (viii) any Default or Event of Default; provided, that no Indemnified Party
shall be entitled to the payment of any such Liabilities resulting from its or its affiliates’ gross negligence, or willful misconduct. 

Section 8.05 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties
hereto on separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement. Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart
hereof. The parties agree that this Agreement, the Facility Documents, any other documents to be
delivered pursuant to this Agreement, the Facility Documents and any notices hereunder or thereunder may be transmitted between them by e-mail and/or by facsimile. The parties intend that with respect to this Agreement, the Facility Documents, any
amendments hereto or thereto, any subsequent certifications and any other documentation delivered by a Borrower in connection with this Agreement and the Facility Documents, electronically imaged signatures such as .pdf files and signatures executed
using third party electronic signature capture service providers, which comply with the Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act or any other similar state law based on the
Uniform Electronic Transactions Act, shall constitute original signatures and are binding on all parties. The original documents shall be promptly delivered, if requested. 

Section 8.06 Assignability.  

(a) The Lender may assign to an assignee all or a portion of its rights and obligations under this Agreement (including all or a portion of its
outstanding Advances or interests therein owned by it, together with ratable portions of its Commitment and Uncommitted
Amount) to a Permitted Assignee. The parties to each such assignment shall execute and deliver to the Borrowers an Assignment and Acceptance and the applicable tax forms required by
Section 8.03(f). The Lender, acting solely for this purpose as a non-fiduciary agent of Borrowers, shall maintain a register on which it enters the name and address of each Lender assignee, and the principal amounts (and stated interest)
of each Lender assignee’s interest in the rights and obligations under this Loan Agreement and
related
LoanFacility
 Documents (the “Register”). 

  
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No assignment shall be effective unless recorded in the Register. Subject to notification to the Borrowers of an assignment and compliance with the terms of the Intercreditor Agreement, the
assignee shall be a party hereto and, to the extent of the interest assigned, have the rights and obligations of the existing Lender under this Agreement, and the existing Lender shall, to the extent of the interest assigned, be released from its
obligations under this Agreement. The Borrowers hereby agree to execute any amendment and/or any other document that may be necessary to effectuate such an assignment, including an amendment to this Agreement to provide for multiple lenders and an
administrative agent to act on behalf of such lenders. Any assignment or transfer by the Lender of rights or obligations under this Agreement that does not comply with this Section 8.06(a) shall be treated for purposes of this Agreement
as a sale by the Lender of a participation in such rights and obligations in accordance with 8.06(c). 
 (b) The Borrowers may not assign
their rights or obligations hereunder or any interest herein without the prior written consent of the Lender. 
 (c) (i) The Lender may,
without the consent of the Borrowers, sell participations to Participants that are Permitted Assignees in all or a portion of the Lender’s rights and obligations under this Agreement, provided that (A) the Lender’s obligations under
this Agreement shall remain unchanged, (B) the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (C) the Borrowers shall continue to deal solely and directly with the Lender in
connection with the Lender’s rights and obligations under this Agreement, and (D) each Participant shall have agreed to be bound by this Section 8.06(c), Section 8.06(e) and Section 8.16. Any agreement pursuant
to which the Lender sells such a participation shall provide that the Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement, provided that such agreement
may provide that the Lender will not, without the consent of the Participant, agree to any Fundamental Amendment that affects such Participant. Section 8.03 (subject to the requirements and limitations therein, including the requirements
under Section 8.03(f) (it being understood that the documentation required under Section 8.03(f) shall be delivered to the participating Lender)) shall apply to each Participant as if it were a Lender and had acquired its
interest by assignment pursuant to clause (a) of this Section 8.06; provided that no Participant shall be entitled to any amount under Section 8.03 which is greater than the amount the related Lender would have been
entitled to under any such Sections or provisions if the applicable participation had not occurred. 

  
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 (i) In the event that the Lender sells participations in any portion of its rights and
obligations hereunder, the Lender, as nonfiduciary agent for the Borrowers, shall maintain a register on which it enters the name and address of all participants in the Advances held by it and the principal amount (and stated interest thereon) of
the portion of the Advance and any other obligations under the Facility Documents which is the subject of the participation (the “Participant Register”). An Advance may be participated in whole or in part only by registration of
such participation on the Participant Register. Any participation of such Advance may be effected only by the registration of such participation on the Participant Register. The Participant Register shall be available for inspection by the Borrowers
to the extent necessary for the Borrowers to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in a Participant Register shall be
conclusive absent manifest error, and the Lender shall treat each Person whose name is recorded in such Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. 

(d) Notwithstanding any other provision in this Agreement, (i) the Lender may at any time create a security interest in, or pledge, all or
any portion of its rights under this Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce such pledge or
security interest in any manner permitted under Applicable Laws and this Section 8.06 shall not apply to any such pledge or grant of a security interest. No creation or grant of a security interest, pledge or collateral assignment
pursuant to the preceding sentence shall release the Lender from any of its obligations hereunder or substitute any pledgee or assignee for the Lender as a party hereto. 

(e) Notwithstanding anything to the contrary set forth herein or in any other Facility Document, the Lender, each Permitted Assignee which
becomes a Lender and each Participant, must at all times be a “qualified purchaser” as defined in the Investment Company Act (a “Qualified Purchaser”) and a “qualified institutional buyer” as defined in Rule 144A
under the Securities Act (a “QIB”). The Lender and each Permitted Assignee which becomes a Lender represents to the Borrower, (i) on the date that it becomes a party to this Agreement (whether by being a signatory hereto or by
entering into an Assignment and Acceptance) and (ii) on each date on which it makes an Advance hereunder, that it is a Qualified Purchaser and a QIB. The Lender and each Permitted Assignee which becomes a Lender further agree that they shall
not assign, or grant any participations in, any of their respective Advances
or, Commitment or Uncommitted Amount to any Person unless such Person is a Qualified
Purchaser and a QIB. 
 Section 8.07 Governing Law. This agreement and the rights and obligations of the parties under
this Agreement and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this agreement or any other Facility Document (except, as to any other Facility Document, as
expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by and construed in accordance with the law of the State of New York. 

Section 8.08 Severability of Provisions. Any provision of this Agreement or any other Facility Document which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction. 

  
 49 

 Section 8.09 Confidentiality. The Lender agrees to keep confidential all
non-public information provided to it by the Borrowers with respect to the Borrowers, their Affiliates, the Collateral or any other information furnished to the Lender pursuant to this Agreement or any other Facility Document (collectively, the
“Borrower Information”), provided that nothing herein shall prevent the Lender from disclosing any Borrower Information (a) in connection with this Agreement and the other Facility Documents and not for any other purpose,
(x) to any other Person who becomes a party hereto, or (y) any of its Affiliates, employees, directors, agents, attorneys, accountants and other professional advisors (collectively, the “Lender Representatives”), it
being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Borrower Information and instructed to keep such Borrower Information confidential, (b) subject to an agreement to comply with
the provisions of this Section (or other provisions at least as restrictive as this Section), (i) to use the Borrower Information only in connection with this Agreement and the other Facility Documents and not for any other purpose, to any
actual or bona fide prospective permitted assignees and Participants in the Lender’s interests under or in connection with this Agreement and (ii) as reasonably required by any direct or indirect contractual counterparties or professional
advisors thereto, to any swap or derivative transaction relating to any Borrower and its obligations, (c) to the extent required or requested by any regulatory authority purporting to have jurisdiction over the Lender or any of its Affiliates
(with prior notice to the Borrowers to the extent lawful), (d) in response to any order of any court or other Governmental Authority or as may otherwise be required to be disclosed pursuant to any Applicable Law, (e) that is a matter of
general public knowledge or that has heretofore been made available to the public by any Person other than the Lender or any Lender Representative, or (f) in connection with the exercise of any remedy hereunder or under any other Facility
Document. In addition, the Lender may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Lender in connection with
the administration and management of this Agreement and the other Facility Documents. 
 Section 8.10 Merger. This Agreement and
the other Facility Documents taken as a whole incorporate the entire agreement between the parties hereto and thereto concerning the subject matter hereof and thereof and this Agreement and such other Facility Documents supersede any prior
agreements among the parties relating to the subject matter thereof. 
 Section 8.11 Survival. All representations and
warranties made hereunder, in the other Facility Documents and in any certificate delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery of this Agreement and the making of the Advances
hereunder. The agreements in Sections 2.04(f), 2.08, 8.03, 8.04, 8.09, 8.14, 8.16 and this Section 8.11 shall survive the termination or assignment of this Agreement in whole or in part, the payment in full of the principal of and
interest on the Advances. 

  
 50 

 Section 8.12 Submission to Jurisdiction; Waivers; Etc. Each party hereto hereby
irrevocably and unconditionally: 
 (a) submits for itself and its property in any legal action or proceeding relating to this
Agreement or the other Facility Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York in the Borough of Manhattan,
the courts of the United States of America for the Southern District of New York, and the appellate courts of any of them; 
 (b) consents
that any such action or proceeding may be brought in any court described in Section 8.12(a) and waives to the fullest extent permitted by Applicable Law any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to such party at its address set forth in Section 8.02 or at such other address as may be permitted thereunder; 

(d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law; and 

(e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding against
the Lender arising out of or relating to this Agreement or any other Facility Document any special, exemplary, punitive or consequential damages. 

Section 8.13 Waiver of Jury Trial. Each of the parties hereto hereby irrevocably and unconditionally waives trial by jury in any
legal action or proceeding relating to this Agreement or any other Facility Document or for any counterclaim herein or therein or relating hereto or thereto. 

Section 8.14 PATRIOT Act Notice. The Lender hereby notifies the Borrowers that, pursuant to the requirements of the USA PATRIOT
Act (Title III of Pub. L. 107 56 (signed into law on October 26, 2001)) (the “PATRIOT Act”), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the names and
addresses of the Borrowers and other information that will allow the Lender to identify the Borrowers in accordance with the PATRIOT Act. The Borrowers shall provide, to the extent commercially reasonable, such information and take such actions as
are reasonably requested by the Lender in order to assist the Lender in maintaining compliance with the PATRIOT Act. 

Section 8.15 Legal Holidays. In the event that the date of prepayment of Advances or the Final Maturity Date shall not be a
Business Day, then notwithstanding any other provision of this Agreement or any other Facility Document, payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the
nominal date of any such date of prepayment or Final Maturity Date, as the case may be, and interest shall accrue on such payment for the period from and after any such nominal date to but excluding such next succeeding Business Day. 

  
 51 

 Section 8.16 Non Petition. Each party hereto (other than the Borrowers) hereby
agree not to institute against, or join, cooperate with or encourage any other Person in instituting against, any Borrower any bankruptcy, reorganization, receivership, arrangement, insolvency, moratorium or liquidation proceeding or other
proceeding under federal or state bankruptcy or similar laws until at least one year and one day, or, if longer, the applicable preference period then in effect plus one day, after the payment in full of all outstanding Obligations and the
termination of all Commitments. 
 Section 8.17 Waiver of Setoff. Each Borrower hereby waives any right of setoff it may have or
to which it may be entitled under this Agreement or under any Applicable Law from time to time against the Lender or its assets. 

Section 8.18 Recourse Against Certain Parties. No recourse under or with respect to any obligation, covenant or agreement of any
party hereto as contained in this Agreement or any other agreement, instrument or document entered into by it pursuant hereto or in connection herewith shall be had against any incorporator, affiliate, stockholder, officer, employee or director of
any party hereto, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that the agreements of each party hereto contained in this Agreement and
all of the other agreements, instruments and documents entered into by it pursuant hereto or in connection herewith are, in each case, solely the corporate obligations of such party hereto, and that no personal liability whatsoever shall attach to
or be incurred by any incorporator, stockholder, affiliate, officer, employee or director of such party under or by reason of any of the obligations, covenants or agreements of such party hereto contained in this Agreement or in any other such
instruments, documents or agreements, or that are implied therefrom, and that any and all personal liability of each incorporator, stockholder, affiliate, officer, employee of such party, or any of them, for breaches by any party hereto of any such
obligations, covenants or agreements, which liability may arise either at common law or at equity, by statute or constitution, or otherwise, is hereby expressly waived as a condition of and in consideration for the execution of this Agreement.
Notwithstanding the foregoing, the Lender shall not be deemed to have waived any legal rights which they may have and, to the extent of such rights, shall have recourse against any incorporator, affiliate, stockholder, officer, employee or director
of the Borrowers to the extent of any loss, cost or expense incurred in whole or in part from any such Person’s (i) willful misconduct, fraud, theft, misappropriation of funds or criminal acts, (ii) intentional interference with the
Lender’s Lien on the Collateral or rights with respect thereto, (iii) disposition of Collateral in violation of the terms of this Agreement, (iv) action in furtherance of an Insolvency Event with respect to any Borrower,
(v) action in furtherance of the consolidation of the Borrower’s assets with the assets of any other Person or (vi) action in furtherance of the dissolution or liquidation of any Borrower. 

Section 8.19 Intercreditor Agreement. The Lender acknowledges that the exercise of its rights under this Agreement and the other
Facility Documents are subject to the terms of the Intercreditor Agreement. 

  
 52 

 Section 8.20 Amendment and Restatement. This Agreement amends and restates the
Original Loan Agreement. This Agreement is not intended to constitute a novation of the Original Loan Agreement. Upon the effectiveness of this Agreement, each reference to the Original Loan Agreement in any other document, instrument or agreement
executed and/or delivered in connection therewith shall mean and be a reference to this Agreement. 
 [Signature Pages to Follow] 

  
 53 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written. 
  

			
	OP SPE BORROWER PARENT, LLC,
	as Parent Borrower
		
	By:	 	  

	Name:	 	Michael S. Burnett
	Title:	 	Chief Financial Officer
		
	By:	 	  

	Name:	 	Benjamin Aronovitch
	Title:	 	Chief Legal Officer
	
	 OP SPE PHX1, LLC,
 as a
Borrower

		
	By:	 	  

	Name:	 	Michael S. Burnett
	Title:	 	Chief Financial Officer
		
	By:	 	  

	Name:	 	Benjamin Aronovitch
	Title:	 	Chief Legal Officer
	
	 OP SPE TPA1, LLC,
 as a
Borrower

		
	By:	 	  

	Name:	 	Michael S. Burnett
	Title:	 	Chief Financial Officer
		
	By:	 	  

	Name:	 	Benjamin Aronovitch
	Title:	 	Chief Legal Officer

  
 [Signature Page to
Amended and Restated Mezzanine Loan and Security Agreement] 

 
			
	LL PRIVATE LENDING FUND II, L.P.,
	as the Lender
	By:	 	LLPLF II GP, LLC, its General Partner
		
	By:	 	  

	 Name: Paul A. Frick
 Title: Vice
President

  
 [Signature Page to
Amended and Restated Mezzanine Loan and Security Agreement] 

 EXHIBIT A 

Form of Promissory Note 

 THIS
PROMISSORY NOTE AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY AND ANY SECURITY INTERESTS OR OTHER LIENS SECURING SUCH
OBLIGATIONS ARE SUBJECT TO THE INTERCREDITOR AND STANDSTILL AGREEMENT DATED AS OF MARCH 16, 2020 (AS THE SAME MAY BE AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME) BY AND AMONG THE MEZZANINE LENDER FROM TIME TO TIME PARTY
THERETO AND CITIBANK, N.A., AS THE SENIOR LENDER. 

SECOND AMENDED AND
RESTATED PROMISSORY NOTE 
 $65,000,000.0097,500,000.00 

December 16July 7, 20212022 
 Philadelphia, Pennsylvania 

FOR VALUE RECEIVED, OP SPE BORROWER PARENT, LLC, a Delaware limited liability company, OP SPE PHX1, LLC, a Delaware limited liability company,
and OP SPE TPA1, LLC, a Delaware limited liability company (each a “Borrower” and collectively, the “Borrowers”), each hereby promises to pay, jointly and severally with each other Borrower, to the order of LL
Private Lending Fund II, L.P. (the “Lender”), at the principal office of the Lender at 2400 Market Street, Suite 302, Philadelphia, PA 19103, in lawful money of the United States, and in immediately available funds, the principal
sum of
$65,000,000.0097,500,000.00
 (or such lesser amount as shall equal the aggregate unpaid principal amount of the Advances made by the Lender to Borrowers under the Loan Agreement (as defined below)), on the dates and in the
principal amounts provided in the Loan Agreement, and to pay interest on the unpaid principal amount of each such Advance, at such office, in like money and funds, for the period commencing on the date of such Advance until such Advance shall be
paid in full, at the rates per annum and on the dates provided in the Loan Agreement. 
 The date, amount and interest rate of each
Advance made by the Lender to Borrowers, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this Second
Amended and Restated
Promissory Note (this “Note”), endorsed by the Lender on the schedule
attached hereto or any continuation thereof; provided, that the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of Borrowers to make a payment when due of any amount owing under the Loan Agreement
or hereunder in respect of the Advances made by the Lender. 
 This Note is the Promissory Note referred to in the Second Amended and Restated Mezzanine Loan and Security Agreement, dated
as of
MarchDecember
 16,
20202021
 (as amended, restated supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”), among Borrowers and the Lender. Terms used but not defined in this Note have
the respective meanings assigned to them in the Loan Agreement. 
 Upon the occurrence of one or more Events of Default (other than
those referred to in Section 6.01(g)) under the Loan Agreement, the Lender may immediately declare the principal amount of the Advances then outstanding under this Note to be immediately due and payable, together with all interest
thereon and reasonable fees and out-of-pocket expenses accruing under the Loan Agreement; provided that upon the occurrence of an Event of Default referred to in such Section 6.01(g), such amounts shall immediately and automatically
become due and payable without any further action by any Person. Upon such declaration or such automatic 

 acceleration, the balance then outstanding on this Note shall become immediately due and payable, without
presentment, demand, protest or other formalities of any kind, all of which are hereby expressly waived by Borrowers, and the Lender may thereupon exercise any remedies available to it at law and pursuant to the Facility Documents, including, but
not limited to, the liquidation of the Collateral on a servicing released basis, free and clear of any obligation, cost or expense. 

Borrowers, jointly and severally, agree to pay all the Lender’s costs of collection and enforcement (including reasonable attorneys’
fees and disbursements of the Lender’s counsel (including, without limitation, those of Cogent Legal Services, LLC)) in respect of this Note when incurred, including, without limitation, reasonable attorneys’ fees through appellate
proceedings. 
 Notwithstanding the pledge of the Collateral, Borrowers hereby acknowledge, admit and agree that Borrowers’ obligations
under this Note are recourse obligations of Borrowers to which Borrowers pledge their full faith and credit. 
 Each Borrower
(a) waives diligence, presentment, protest and demand and also notice of protest, demand, dishonor and non-payments of this Note, (b) expressly agrees that this Note, or any payment hereunder, may be extended from time to time, and consent
to the acceptance of further Collateral, the release of any Collateral for this Note, the release of any party primarily or secondarily liable hereon, and (c) expressly agrees that it will not be necessary for the Lender, in order to enforce
payment of this Note, to first institute or exhaust the Lender’s remedies against Borrowers or any other party liable hereon or against any Collateral for this Note. 

The liabilities of Borrower and any endorser or guarantor of this Note are joint and several; provided, however, the release by the Lender of
Borrower or any one or more endorsers or guarantors shall not release any other person obligated on account of this Note. Any and all present and future debts of
any Borrower to any endorser or guarantor of this Note are
subordinated to the full payment and performance of all present and future debts and obligations of such
Borrower to the Lender. Each reference in this Note to any
Borrower, any endorser, and any guarantor, is to such person individually and also to all such persons jointly. No person obligated on account of this Note may seek contribution from any other
person also obligated, unless and until all liabilities, obligations and indebtedness to the Lender of the person from whom contribution is sought have been satisfied in full. The release or compromise by the Lender of any collateral shall not
release any person obligated on account of this Note. 
 Upon any endorsement, assignment or other transfer of this Note by the
Lender or by operation of law, any reference herein to the Lender shall be deemed to include and apply to such registered endorsee, assignee or other transferee or successor then becoming holder of this Note. Reference is made to the Loan Agreement
for provisions concerning optional and mandatory prepayments, Collateral, acceleration and other material terms affecting this Note. 

 Any enforcement action relating to this Note may be brought by motion for summary judgment
in lieu of a complaint pursuant to Section 3213 of the New York Civil Practice Law and Rules. Each Borrower hereby submits to New York jurisdiction with respect to any action brought with respect to this Note and waives any right with respect
to the doctrine of forum non conveniens with respect to such transactions. 
 This Note and the rights and obligations of the parties under
this Note and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Note or any other Facility Document (except, as to any other Facility Document, as expressly
set forth therein) and the transactions contemplated hereby and thereby shall be governed by and construed in accordance with the law of the State of New York. Each Borrower agrees that any action or proceeding brought to enforce or arising out of
this Note may be commenced in the courts of the State of New York in the Borough of Manhattan, the courts of the United States of America for the Southern District of New York, and the appellate courts of any of them. 

This Note is an amendment and restatement of that certain
First Amended and Restated Promissory Note, dated as of MarchDecember 16,
20202021
, made by the Borrowers in favor of LL Private Lending Fund II, L.P. in the aggregate principal amount of
Twenty-fiveSixty-Five
 Million Dollars ($25,000,00065,000,000) (the “Prior Note”). This Note is given in
substitution for, but not in payment of, such Prior Note, and does not and shall not be deemed to constitute a novation thereof. The execution and delivery of this Note does not and shall not be deemed to impair or modify the priority of any
security document executed in connection with the Prior Note. Upon the execution of this Note, the indebtedness evidenced by the Prior Note shall no longer be evidenced by the Prior Note and the Prior Note shall be of no further force and effect
upon the execution of this Note; provided, however, that all outstanding indebtedness, including, without limitation, principal and interest under the Prior Note as of the date of this Note, is hereby deemed indebtedness evidenced by
this Note and is incorporated herein by this reference. 
 [Signature page follows] 

 IN WITNESS WHEREOF, the undersigned, by its duly authorized representative, has signed and
delivered this Note as of the date first written above. 
  

			
	OP SPE BORROWER PARENT, LLC
		
	By:	 	  

	Name:	 	Michael S. Burnett
	Title:	 	Chief Financial Officer
	
	OP SPE PHX1, LLC
		
	By:	 	  

	Name:	 	Michael S. Burnett
	Title:	 	Chief Financial Officer
	
	OP SPE TPA1, LLC
		
	By:	 	  

	Name:	 	Michael S. Burnett
	Title:	 	Chief Financial Officer

 EXHIBIT B 

Form of Notice of Borrowing 
 To: LL
Private Lending Fund II, L.P. 
 Ladies and Gentlemen: 
  

	 	1.	 Reference is made to that certain Second Amended and Restated Mezzanine Loan and Security Agreement, dated as
of December 16, 2021 (as amended, restated or otherwise modified from time to time, the “Loan Agreement”; all capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Loan
Agreement), among you, OP SPE Borrower Parent, LLC, a Delaware limited liability company (“Parent Borrower”), and OP SPE PHX1, LLC, a Delaware limited liability company and OP SPE TPA1, LLC, a Delaware limited liability
company (each, a “Borrower” and, collectively with Parent Borrower, the “Borrowers”). 

  

	 	2.	 The Borrowers identified on the tab labeled “Borrowers” hereby request funding in Advance amounts set
forth thereon, on the date set forth as the “Borrowing Date” on such tab (which date is a Business Day) (the “Borrowing Date”) in accordance with the Advance requirements and procedures under the Loan Agreement, and the
tab labeled “Summary” sets forth the information relating to such Advance as required by Section 3.02 of the Loan Agreement. 

  

	 	3.	 Please remit funds to the account numbers set forth on the tab labeled “Borrowers”.

  

	 	4.	 The borrowing requested herein complies with Section 3.02 of the Loan Agreement. 

 

	 	5.	 The undersigned Parent Borrower, on behalf of itself and the other Borrowers, hereby certifies that the
following statements are true on the date hereof, and will be true on the proposed Borrowing Date with the same effect as though such statements had been made on and as of the Borrowing Date: 

 

	 	a.	 All prior Advances made to each of the undersigned when added to the amount of the Advance(s) requested herein
does not equal or exceed $25.0 million97,500,000. 

 

	 	b.	 All representations and warranties made by the undersigned Borrowers contained in the Facility Documents true
and correct in all material respects as of such Borrowing Date (except to the extent such representations and warranties expressly relate to any earlier date, in which case such representations and warranties shall be true and correct in all
material respects as of such earlier date as if made on such date). 

  

	 	c.	 All material covenants contained in Article 5 of the Loan Agreement and in any other document, instrument or
certificate delivered to the Lender under the Loan Agreement are true accurate and complete in all material respects. 

	 	d.	 No Default or Event of Default has occurred and is continuing at the time of the making of such Advance or
shall result upon the making of such Advance. 

  

	 	e.	 The Availability Period has not terminated. 

 

	 	f.	 The Borrowers have paid all of the Lender’s reasonable and documented out-of-pocket fees, costs and
expenses, including reasonable and documented out-of-pocket attorneys’ fees, costs and expenses of counsel (including, without limitation, those of Cogent Legal Service LLC), if any, incurred in connection with such Borrowing invoiced at least
three (3) Business Days prior to such Borrowing. 

  

	 	g.	 The related Senior Advance Amount has been funded by the Senior Lender. 

 

			
	Very truly yours,
	
	 OP SPE BORROWER PARENT, LLC,

as Parent Borrower

		
	By:	 	  

		 	Name:
		 	Title:

 EXHIBIT C 

Insurance Requirements 

(a) Each Borrower shall obtain and maintain, or cause to be maintained, insurance for such Borrower and its Properties providing at least the
following coverages: 
 (i) comprehensive “all risk” or special causes of loss form insurance, as is available in the insurance
market as of the Closing Date, including, but not limited to, loss caused by any type of windstorm (including hail) on the Contributed Properties (A) in an amount equal to one hundred percent (100%) of the “Full Replacement
Cost”, which for purposes of this Agreement shall mean actual replacement value of the Contributed Properties; (B) containing an agreed amount endorsement with respect to the improvements and personal property at any Contributed Property
waiving all co-insurance provisions or to be written on a no co-insurance form and (C) providing for no deductible in excess of $25,000 (it being understood that, so long as no Default or Event of Default has occurred and is continuing
(1) Borrowers may utilize a $3,000,000 aggregate deductible stop loss subject to a $25,000 per occurrence deductible and a $25,000 maintenance deductible following the exhaustion of the aggregate, (2) the aggregate stop loss does not
contain any losses arising from named windstorm, earthquake or flood, (3) the perils of named windstorm or flood shall be permitted to have a deductible of five percent (5%) of the total insurable value of the applicable Contributed
Property (with a minimum deductible of $250,000 per occurrence for any and all locations), (4) the peril of earth movement including but not limited to earthquake shall be permitted to have a deductible of ten percent (10%) of the total
insurable value of the applicable Contributed Property (with a minimum deductible of $250,000 per occurrence for any and all locations) and (5) the peril of “other wind and hail” shall be permitted to have a deductible of three
percent (3%) of the total insurable value of the applicable Contributed Property (with a minimum deductible of $250,000 per occurrence for any and all locations)). In addition, Borrowers shall obtain (x) if any portion of a Contributed
Property is currently or at any time in the future located in a federally designated “special flood hazard area”, flood hazard insurance in an amount equal to the maximum amount of such insurance available under the National Flood
Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended, plus excess amounts as the Lender shall require, (y) named storm insurance in an amount equal to
$10,000,000, subject to increases based upon a storm risk analysis on a 100 year Probable Maximum Loss (PML) or Scenario Expected Limit (SEL) (such analysis to be secured by the applicable Borrower utilizing a third-party engineering firm qualified
to perform such storm risk analysis using the most current RMS software, or its equivalent, to include consideration of storm surge, if applicable and loss amplification, at the expense of the applicable Borrower at least two times per year or more
frequently as may reasonably be requested by the Lender and shared with the Lender presented by the Contributed Properties located in areas prone to named storm activity); and (z) earthquake insurance in an amount equal to $5,000,000, subject
to increases based upon a seismic risk analysis on a 100 year event Probable Maximum Loss (PML) or Scenario Expected Limit (SEL) (such analysis to be secured by the applicable Borrower utilizing a third-party engineering firm qualified to perform
such seismic risk analysis using the most current RMS software, or its equivalent, to include consideration of loss amplification, at the expense of the applicable Borrower at least two times per year or more frequently as may reasonably be
requested by the Lender and shared with the Lender presented by the Contributed Properties located in areas prone to seismic activity); provided that the insurance pursuant to subclauses (x), (y) and (z) hereof shall be on terms consistent
with the comprehensive all risk insurance policy required under this Exhibit C; 

 (ii) at all times during which structural construction, repairs or renovation are being made
with respect to any Property, and only if each of the property coverage form and the liability insurance coverage form does not otherwise apply, (A) owner’s contingent or protective liability insurance, otherwise known as Owner
Contractor’s Protective Liability (or its equivalent), covering claims not covered by or under the terms or provisions of the below mentioned commercial general liability insurance policy and (B) the insurance provided for in this
Exhibit C(a) written in a so-called builder’s risk completed value form including coverage for all insurable hard and soft costs of construction (x) on a non-reporting basis, (y) against all risks insured against pursuant to
clauses (a)(i), (iii), (iv) and (viii) hereof, and (z) including permission to occupy such Property and (C) with an agreed amount endorsement waiving co-insurance provisions; 

(iii) commercial general liability insurance against claims for personal injury, bodily injury, death or property damage occurring upon, in or
about any Property, such insurance (A) to be on the so-called “occurrence” form with a combined limit of not less than One Million and No/100 Dollars ($1,000,000.00) per occurrence; Two Million and No/100 Dollars ($2,000,000.00) in
the aggregate “per location” and overall $20,000,000.00 in the aggregate; (B) to continue at not less than the aforesaid limit until required to be changed by the Lender in writing by reason of changed economic conditions making such
protection inadequate and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent contractors; (4) blanket contractual
liability for all insured contracts and (5) contractual liability covering the indemnities contained in any mortgage to the extent the same is available; 

(iv) umbrella and excess liability insurance in an amount not less than Ten Million and No/100 Dollars ($10,000,000.00) per occurrence and in
the aggregate on terms consistent with the commercial general liability insurance policy required under clause (a)(iii) hereof, and including employer liability and automobile liability, if required; and 

(v) upon sixty (60) days’ written notice, such other reasonable insurance, and in such reasonable amounts as the Lender from time to
time may reasonably request against such other insurable hazards which at the time are commonly insured against for property similar to the Contributed Properties located in or around the region in which Contributed Properties are located. 

(b) All insurance provided for in this Exhibit C hereof, shall be obtained under valid and enforceable policies (collectively, the
“Policies” or in the singular, the “Policy”) and shall be subject to the approval (not to be unreasonably withheld) of the Lender as to insurance companies, which approval shall be deemed given for any Policies issued by
financially sound and responsible insurance companies authorized to do business in the State, unless otherwise approved in writing by the Lender, and having a rating of “A-:VII” or better with an outlook of “Positive” or
“Stable” in the current Best’s Insurance Reports or a claims paying ability rating of “A-” or better by S&P or another Rating Agency selected by the Lender, provided, however,

 
that if the Borrowers elect to have their insurance coverage provided by a syndicate of insurers, then, if such syndicate consists of five (5) or more members, (A) at least sixty
percent (60%) of the insurance coverage (or seventy-five percent (75%) if such syndicate consists of four (4) or fewer members) and one hundred (100%) of the first layer of such insurance coverage shall be provided by insurance
companies having a claims paying ability rating of “A-” or better by S&P and (B) the remaining forty percent (40%) of the insurance coverage (or the remaining twenty-five percent (25%) if such syndicate consists of four
(4) or fewer members) shall be provided by insurance companies having a claims paying ability rating of “BBB” or better by S&P. Borrowers shall deliver to the Lender (1) within ten (10) days prior to the expiration dates
of the Policies theretofore furnished to the Lender, certificates of insurance evidencing the Policies accompanied by evidence reasonably satisfactory to the Lender of payment of the premiums due thereunder (the “Insurance Premiums”) and
(2) within five (5) Business Days of the Lender’s request, any other documentation evidencing the Policies (including without limitation certified copies of the Policies) as may be reasonably requested by the Lender from time to time.

 (c) Any blanket insurance Policy shall provide the same protection as would a separate Policy insuring only each Property in compliance
with the provisions of this Exhibit C. 
 (d) All Policies of insurance provided for or contemplated by this Exhibit C shall
name Borrowers as an additional named insured and, in the case of liability coverages, shall name the Lender as the additional insured on a form acceptable to the Lender, as its interests may appear, and all property insurance Policies described in
this Exhibit C shall name the Lender as a mortgagee and lender loss payee and shall contain a so called New York standard noncontributing mortgagee clause in favor of the Lender, providing that the loss thereunder shall be payable to the
Lender. 
 (e) Each Policy provided for or contemplated by this Exhibit C shall contain, in each case to the extent available, clauses
or endorsements to the effect that: 
 (i) no act or negligence of any Borrower, or anyone acting for any Borrower, or of any tenant or other
occupant, or failure to comply with the provisions of any Policy, which might otherwise result in a forfeiture of the insurance or any part thereof, or exercise of the Lender’s rights or remedies hereunder or any other Facility Document, shall
in any way affect the validity or enforceability of the insurance insofar as the Lender is concerned; 
 (ii) such Policy shall not be
materially changed (other than to increase the coverage provided thereby) or canceled without at least thirty (30) days written notice to the Lender and any other party named therein as an additional insured; and 

(iii) the issuer thereof shall give written notice to Borrower if such Policy has not been renewed thirty (30) days prior to its
expiration. 
 (f) Borrowers shall deliver to the Lender, within ten (10) days of the Lender’s request, certificates of insurance,
in a form acceptable to the Lender, setting forth the particulars as to all Policies required hereunder, that all premiums due thereon have been paid and that the same are in full force and effect. Not later than five (5) days prior to the
expiration date of each of the Policies required hereunder Borrowers shall deliver to the Lender a certificate of 

 
insurance, evidencing renewal of coverage as required herein or binders of all such renewal Policies, if available; provided that if the forgoing are not available as of such date, then Borrowers
shall deliver to the Lender not later than ten (10) days prior to the expiration date of each of the Policies required hereunder, evidence reasonably satisfactory to the Lender that the coverages required herein shall have been timely renewed,
and shall promptly deliver to the Lender such certificates and/or binders once they are available; provided, however, the certificates and or binders shall be delivered not later than the expiration of the current Policies. Within thirty
(30) days of written request by the Lender, Borrowers shall provide full and complete copies of all Policies required hereunder. The Lender shall not be deemed by reason of the custody of any Policies, certificates or binders or copies thereof
to have knowledge of the contents thereof. If any Borrower fails to maintain any Policy as required pursuant to this Exhibit C, the Lender may, at its option and with five (5) days’ prior written notice to Borrowers, obtain such
Policy using such carriers and agencies as the Lender shall elect from year to year (until such Borrower shall have obtained such Policy in accordance with this Exhibit C) and pay the premiums therefor, and Borrowers shall reimburse the
Lender on demand for any premium so paid, with interest thereon at the interest rate described in Section 2.04(13) from the time such premiums are paid by the Lender until the same are reimbursed by Borrowers, and the amount so owing to
the Lender shall constitute a portion of the Obligations. 
 (g) In the event of foreclosure of any mortgage or other transfer of title to
any Contributed Property in extinguishment in whole or in part of any Advance, all right, title and interest of Borrowers in and to the Policies then in force concerning such Contributed Property and all proceeds payable thereunder with respect to
such Contributed Property shall thereupon vest in the purchaser of such foreclosure or the Lender or other transferee in the event of such other transfer of title. 

(h) If a Contributed Property is damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”), the applicable
Borrower shall either (i) retain any insurance proceeds with respect thereto and promptly commence and diligently prosecute the completion of the restoration of such Contributed Property as nearly as possible to the condition the Property was
in immediately prior to such Casualty or (ii) prepay the Advances (in an amount equal to the outstanding principal amount of the Advance in respect of such Contributed Property, and any interest, fees or other Obligations related thereto, of
the related Contributed Property) on the Payment Date following notice from the related Borrower that such Borrower has elected not to restore such Property. The applicable Borrower shall give prompt written notice of any such Casualty resulting in
either (i) a Contributed Property being destroyed in whole or (ii) damage to one or more Contributed Properties in an amount equal to or greater than $250,000 in any single occurrence (fire, named windstorm, etc.). Borrowers shall pay all
costs of such restoration whether or not such costs are covered by insurance. The Lender may, but shall not be obligated to, make proof of loss if not made promptly by Borrowers. 

 SCHEDULE 1 

Notice Information 
 If to any Borrower, at the
following address: 
 c/o OfferPad, LLC 

2150 E. Germann Rd., Suite 1 

Chandler, AZ 85286 

Attention: Benjamin Aronovich (Chief Legal Officer) 

Email: benjamin.aronovitch@offerpad.com 

with a copy (which shall not constitute notice) to: 

DLA Piperc/o Sidley Austin LLP (US) 

1999
 Avenue of the Stars, 17th Floor  
 Los Angeles, California 90067 

51 John F. Kennedy Parkway 

Suite 120 

Short Hills, NJ 07078 
 Attn:
Kira Mineroff Stephen
Blevit 
 Tel.: (212) 335-4932 

Email:
kira.mineroff@us.dlapiper sblevit@sidley
.com 
 If to the Lender, at the following address: 

LL Private Lending Fund II, L.P. 

Attn: Paul Frick and Scott Powers 

2400 Market Street, Suite 302 

Philadelphia, PA 19103 

Email: Paul.Frick@llfunds.com Scott.Powers@llfunds.com 

with a copy (which shall not constitute notice) to: 

John E. Royer, Jr., Esq. 

Marc E. Hirschfield, Esq. 

Royer Cooper Cohen Braunfeld LLC 

101 West Elm Street 

Suite 400 

Conshohocken, PA 19428 

Email: jroyer@rccblaw.com 

mhirschfield@rccblaw.comsharepurchaseagreement

Exhibit 4(a)  EXECUTION COPY            SHARE PURCHASE AGREEMENT    AMONG    MITSUBISHI UFJ FINANCIAL GROUP, INC.,    MUFG AMERICAS HOLDINGS CORPORATION    and    U.S. BANCORP    September 21, 2021        

 

  TABLE OF CONTENTS  -i-    Page  ARTICLE 1  DEFINITIONS  Section 1.1 Definitions.............................................................................................................1  Section 1.2 Interpretation and Construction ..........................................................................19  ARTICLE 2  THE TRANSACTION  Section 2.1 Purchase and Sale ...............................................................................................21  Section 2.2 The Closing; Closing Deliverables; Post-Closing Cash Consideration ..............21  Section 2.3 Purchase Price Adjustment .................................................................................22  Section 2.4 Certain Adjustments............................................................................................25  Section 2.5 Tax Treatment .....................................................................................................25  Section 2.6 Withholding ........................................................................................................25  Section 2.7 Nonassignability of Excluded Assets and Liabilities ..........................................25  Section 2.8 Bank Merger .......................................................................................................26  Section 2.9 Lock-up Agreement ............................................................................................27  ARTICLE 3  REPRESENTATIONS AND WARRANTIES OF SELLERS  Section 3.1 Organization, Standing and Authority ................................................................27  Section 3.2 Capital Structure .................................................................................................28  Section 3.3 Subsidiary Equity Holdings ................................................................................29  Section 3.4 Corporate Authorization and Binding Effect ......................................................29  Section 3.5 Regulatory Filings; No Defaults .........................................................................29  Section 3.6 Financial Statements; No Material Adverse Effect ............................................30  Section 3.7 Material Contracts ...............................................................................................32  Section 3.8 Property ...............................................................................................................34  Section 3.9 Compliance with Laws .......................................................................................34  Section 3.10 Derivative Instruments ........................................................................................35  Section 3.11 Litigation .............................................................................................................36  Section 3.12 No Brokers ..........................................................................................................36  Section 3.13 Employee Benefit Plans ......................................................................................36  Section 3.14 Labor Matters ......................................................................................................38  Section 3.15 Taxes ...................................................................................................................39  Section 3.16 Insurance .............................................................................................................41  Section 3.17 Intellectual Property ............................................................................................41  Section 3.18 Privacy and Cybersecurity ..................................................................................42  Section 3.19 Extensions of Credit ............................................................................................43  Section 3.20 Certain Loan Matters ..........................................................................................44  

 

  TABLE OF CONTENTS  -ii-    Section 3.21 Trust and Other Fiduciary Businesses ................................................................44  Section 3.22 Compliance with Environmental Laws ...............................................................44  Section 3.23 Use of Assets.......................................................................................................45  Section 3.24 Escheat and Unclaimed Property ........................................................................46  Section 3.25 No Other Representations or Warranties ............................................................46  ARTICLE 4  REPRESENTATIONS AND WARRANTIES OF PURCHASER  Section 4.1 Organization, Standing and Authority ................................................................46  Section 4.2 Capital Structure .................................................................................................47  Section 4.3 Corporate Authorization and Binding Effect ......................................................48  Section 4.4 Regulatory Filings; No Defaults .........................................................................48  Section 4.5 Purchaser SEC Reports; Financial Statements; No Material Adverse  Effect ...................................................................................................................48  Section 4.6 Compliance with Laws .......................................................................................50  Section 4.7 Litigation .............................................................................................................50  Section 4.8 No Brokers ..........................................................................................................50  Section 4.9 Availability of Funds ..........................................................................................50  Section 4.10 Investment ...........................................................................................................51  Section 4.11 Offering of Securities ..........................................................................................51  Section 4.12 No Other Representations or Warranties ............................................................51  ARTICLE 5  COVENANTS  Section 5.1 Access and Reports .............................................................................................51  Section 5.2 Conduct of the Business......................................................................................53  Section 5.3 Efforts; Regulatory Filings and Other Actions ...................................................58  Section 5.4 Notice of Changes ...............................................................................................60  Section 5.5 Confidentiality ....................................................................................................61  Section 5.6 Publicity ..............................................................................................................62  Section 5.7 Non-Compete; Non-Solicitation .........................................................................62  Section 5.8 Employee Non-Solicitation .................................................................................64  Section 5.9 Taxes ...................................................................................................................64  Section 5.10 Employee Matters ...............................................................................................70  Section 5.11 Intellectual Property ............................................................................................76  Section 5.12 Intercompany Items ............................................................................................79  Section 5.13 Insurance .............................................................................................................79  Section 5.14 Excluded Assets and Liabilities Transfer ...........................................................79  Section 5.15 Special Dividend Transaction .............................................................................79  Section 5.16 Excess Capital .....................................................................................................80  Section 5.17 Release ................................................................................................................80  Section 5.18 Further Assurances..............................................................................................81  Section 5.19 Removal; Resignations .......................................................................................81  

 

  TABLE OF CONTENTS  -iii-    Section 5.20 D&O Indemnification and Insurance ..................................................................81  Section 5.21 Other Offers ........................................................................................................82  Section 5.22 Other Transaction Documents ............................................................................82  Section 5.23 Treatment of Bank Indebtedness ........................................................................82  Section 5.24 Updated Financial Information ...........................................................................83  Section 5.25 Certain Commercial Arrangements ....................................................................84  Section 5.26 Transition ............................................................................................................84  Section 5.27 Additional Covenant ...........................................................................................85  ARTICLE 6  CONDITIONS TO CLOSING  Section 6.1 Conditions to the Obligations of Purchaser and Sellers......................................85  Section 6.2 Conditions to the Obligations of Purchaser ........................................................85  Section 6.3 Conditions to the Obligations of Sellers .............................................................86  ARTICLE 7  TERMINATION  Section 7.1 Termination .........................................................................................................87  Section 7.2 Effect of Termination ..........................................................................................87  ARTICLE 8  GENERAL PROVISIONS  Section 8.1 Survival of Representations and Warranties; Indemnification ...........................88  Section 8.2 Amendment; Waiver ...........................................................................................93  Section 8.3 Entire Agreement ................................................................................................93  Section 8.4 Assignment .........................................................................................................93  Section 8.5 Specific Performance ..........................................................................................93  Section 8.6 Counterparts ........................................................................................................93  Section 8.7 Notices ................................................................................................................93  Section 8.8 Provisions Separable ...........................................................................................95  Section 8.9 Parties in Interest.................................................................................................95  Section 8.10 Expenses .............................................................................................................95  Section 8.11 Deadlines.............................................................................................................96  Section 8.12 Waiver of Jury Trial ............................................................................................96  Section 8.13 Governing Law; Consent to Jurisdiction ............................................................96    SCHEDULES    Schedule 1 Business Employees   Schedule 2 Example Balance Sheet and TBV   

 

  TABLE OF CONTENTS  -iv-    Schedule 3 Requisite Regulatory Approvals  Schedule 4 Excluded Assets and Liabilities     ANNEXES    Annex A Form of Excluded Assets and Liabilities Purchase and Assumption Agreement  Annex B Form of Transitional Services Agreement  Annex C Form of Reverse Transitional Services Agreement  Annex D Form of Registration Rights Agreement        

 

      SHARE PURCHASE AGREEMENT  SHARE PURCHASE AGREEMENT, dated as of September 21, 2021, by and  among Mitsubishi UFJ Financial Group, Inc., a joint stock company (kabushiki kaisha)  organized under the laws of Japan (“Seller Holdco”), MUFG Americas Holdings Corporation, a  corporation organized under the laws of the state of Delaware and a wholly owned (directly and  indirectly) Subsidiary of Seller Holdco (“Seller” and, collectively with Seller Holdco, “Sellers”)  and U.S. Bancorp, a corporation organized under the laws of Delaware (“Purchaser”).  RECITALS  WHEREAS, Seller is a financial holding company conducting certain business  operations through its commercial banking subsidiary MUFG Union Bank, N.A., a national  banking association (the “Bank”);  WHEREAS, Seller owns all the issued and outstanding shares of Common Stock  of the Bank (the “Shares”);  WHEREAS, subject to the terms and conditions set forth herein, Seller desires to  sell, convey, assign and deliver (“Transfer”) to Purchaser, and Purchaser desires to purchase and  accept (“Purchase”) from Seller, all the Shares; and  WHEREAS, prior to the Closing (as defined herein), Sellers and the Bank will  effectuate the Excluded Assets and Liabilities Transfer;  NOW, THEREFORE, in consideration of the premises and the mutual  representations, warranties, covenants and undertakings contained herein, and for other good and  valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties  hereto agree as follows:  ARTICLE 1  DEFINITIONS  Section 1.1 Definitions.  In this Agreement, the following definitions and other  terms shall apply:  “Acquisition Proposal” has the meaning set forth in Section 5.21.  “Action” means any civil, criminal, regulatory or administrative action, cause of  action, suit, demand, claim, case, litigation, arbitration, inquiry, hearing, dispute, investigation or  other proceeding.  “ADRs” has the meaning set forth in Section 5.10(h).  “Adviser Subsidiary” has the meaning set forth in Section 5.3(f).  “Advisory Client” has the meaning set forth in Section 5.3(f).  

 

  -2-    “Advisory Contract” has the meaning set forth in Section 5.3(f).  “Affiliate” means, with respect to any specified Person, any other Person directly  or indirectly controlling, controlled by or under common control with such specified Person.  “Agreement” means this Agreement, as it may be amended and supplemented  from time to time in accordance with Section 8.2, including the Sellers’ Disclosure Schedule and  all Annexes hereto.  “AML Laws” means (i) the USA Patriot Act of 2001, (ii) the U.S. Money  Laundering Control Act of 1986, (iii) the Bank Secrecy Act, (iv) any other anti-money  laundering Laws to which the Bank or any Transferred Subsidiary is subject or (v) any other  regulation or guidance related to any of the foregoing.  “Anticorruption Laws” means the U.S. Foreign Corrupt Practices Act of 1977 and  all other U.S. federal, state or local and foreign anti-corruption and anti-bribery Laws applicable  to the Bank or any Transferred Subsidiary.  “Bank” has the meaning set forth in the Recitals.  “Bank 401(k) Plan” has the meaning set forth in Section 5.10(g).  “Bank Call Report” means each Consolidated Report of Condition and Income  publicly filed by the Bank.  “Bank ERISA Affiliate” means any trade or business, whether or not  incorporated, all of which together with Bank would be deemed (at the relevant time) a “single  employer” within the meaning of Section 4001 of ERISA.  “Bank Marks” means the Marks owned by the Bank and the Transferred  Subsidiaries immediately after Closing, after giving effect to the transfers contemplated by  Section 5.11(a).  “Bank Merger” has the meaning set forth in Section 2.8.  “Bank Merger Agreement” has the meaning set forth in Section 2.8.  “Bank Qualified Plans” has the meaning set forth in Section 3.13(c).  “Bank Tax Return” has the meaning set forth in Section 5.9(b).  “Bankruptcy and Equity Exception” has the meaning set forth in Section 3.4.  “Basket” has the meaning set forth in Section 8.1(b).  “Benefit Plan” means each employee benefit plan (as defined in Section 3(3) of  ERISA), whether or not subject to ERISA, and each equity, bonus or incentive, deferred  compensation, retiree medical or life insurance, supplemental retirement, severance, termination,  change in control, retention, employment, welfare, insurance, medical, fringe or other benefit  

 

  -3-    plan, program, agreement, contract, policy, arrangement or remuneration of any kind (each,  an “Employee Plan”) with respect to which the Bank or any Transferred Subsidiary is a party or  has any current or future obligation or liability that are maintained, contributed to or sponsored  by the Bank or any Transferred Subsidiary for the benefit of any Business Employee, excluding,  in each case, any Multiemployer Plan.  “BHC Act” means the Bank Holding Company Act of 1956.  “Bonus Plan” has the meaning set forth in Section 5.10(d).  “Business Day” means any day excluding Saturday, Sunday and any day on  which banking institutions located in (i) New York, New York, (ii) Tokyo, Japan, or  (iii) Minneapolis, Minnesota, are authorized or required by applicable Law or other  governmental action to be closed.  “Business Employee” means each current employee, officer, director or natural  person who is an independent contractor of the Bank or any Transferred Subsidiary and is set  forth on Schedule 1.  Schedule 1 sets forth an initial list of Business Employees, which shall be  updated following the date hereof in accordance with Section 5.10(e).  “Cap” has the meaning set forth in Section 8.1(b).  “Carveout Financial Statements” has the meaning set forth in Section 5.24(b).  “Cash Consideration” means an amount in U.S. dollars in cash equal to (a) the  Purchase Price minus (b) the Stock Consideration Value.  “CECL” means Current Expected Credit Losses, a credit loss accounting standard  that was issued by the Financial Accounting Standards Boards on June 16, 2016, pursuant to  Accounting Standards Update (ASU) No. 2016, Topic 326.  “Claim Notice” has the meaning set forth in Section 8.1(d).  “Closing” has the meaning set forth in Section 2.2(a).  “Closing Balance Sheet” means a balance sheet of the Bank as of the close of  business on the day immediately preceding the Closing Date, using the same methodologies,  assumptions, accounting policies, principles, practices and categories used in the preparation of  the balance sheet shown in Schedule 2 (including, for the avoidance of doubt, with such balance  sheet being calculated (a) on a “going concern” basis, (b) not taking into account any changes in  the assets or liabilities of the Bank as a result of purchase accounting or any other accounting  adjustments in each case arising as a consequence, in and of themselves, of the Stock Sale, (c)  taking into account any changes in the assets or liabilities of the Bank as a result of any  accounting adjustments in each case arising as a consequence, in and of themselves, of the  Excluded Assets and Liabilities Transfer.)  For the avoidance of doubt, the Closing Balance  Sheet will reflect the effect of the Excluded Assets and Liabilities Transfer and the effect of the  Special Dividend Transaction.  

 

  -4-    “Closing Date” means the date on which the Closing occurs.  “Closing Date Cash Consideration” means an amount in U.S. dollars in cash equal  to $5,500,000,000.  “Closing TBV” means the amount in dollars equal to the TBV, as of the close of  business on the day immediately preceding the Closing Date, as calculated from the Closing  Balance Sheet.  “Code” means the Internal Revenue Code of 1986.  “Collective Bargaining Agreement” has the meaning set forth in Section 3.14(a).   “Combined Tax Return” has the meaning set forth in Section 5.9(b).  “Common Stock” has the meaning set forth in Section 3.2(a).  “Competing Banking Business” has the meaning set forth in Section 5.7(a).  “Confidential Information” has the meaning set forth in Section 5.1(b).  “Confidentiality Agreements” means, collectively, (a) the confidentiality  agreement, dated October 18, 2020, between Seller Holdco and Purchaser, as amended on June  21, 2021 and (b) the confidentiality agreement, dated September 10, 2021, between Purchaser  and Seller Holdco.  “Constituent Documents” means the charter documents, bylaws or similar  organizational documents of a corporation and comparable organizational documents of any  other entity.  “Contagion Event” means the outbreak or continued presence of contagious  disease, epidemic or pandemic (including SARS-CoV-2 or COVID-19, or any evolutions or  mutations of thereof, or any other viruses (including influenza)), and the governmental responses  thereto.  “Contagion Event Measures” means any quarantine, “shelter in place”, “stay at  home”, workforce reduction, social distancing, shut down, closure, sequester or other directives,  guidelines or recommendations promulgated by any Governmental Authority, including the  Centers for Disease Control and Prevention and the World Health Organization, in each case, in  connection with or in response to a Contagion Event.  “Continuing Employee” has the meaning set forth in Section 5.10(a).  “Continuing Employee Retirement Plan” has the meaning set forth in Section  5.10(f).   

 

  -5-    “Contract” means, with respect to any Person, any agreement, indenture, debt  instrument, contract, lease or other binding commitment to which such Person is a party or by  which such Person is bound or to which such Person’s properties is subject.  “Controlled Affiliate” means, with respect to any Person, any other Person  directly or indirectly controlled by such specified Person; provided that, with respect to Seller,  any joint ventures between Morgan Stanley or its Affiliates, on the one hand, and Seller Holdco  or its Affiliates, on the other hand, shall not be deemed to be a Controlled Affiliate of Seller, nor,  for the avoidance of doubt, should Morgan Stanley be deemed an Affiliate of Seller.  “Controlling Party” has the meaning set forth in Section 5.9(g)(iv).  “Covered Continuing Employee” means each employee, officer, director or  natural person who is an independent contractor of the commercial banking or real estate  industries businesses of the Bank or any Transferred Subsidiary (other than the Excluded  Employees) and is set forth on Schedule 1 who continues to remain employed with the Bank and  the Transferred Subsidiaries immediately following the Effective Time.  “Dataroom” means the electronic data room established by Sellers for the  Transactions at https://services.intralinks.com (a) as populated at 12:01 a.m. New York time on  the day immediately preceding the date hereof and (b) such other documents that may be  included therein following such time as agreed to by Sellers and Purchaser.  “Deposit Insurance Fund” means the Deposit Insurance Fund administered by the  FDIC.  “Derivative Contract” has the meaning set forth in Section 3.10.  “Disclosing Party” has the meaning set forth in Section 5.5.  “EBITDA” means earnings before interest, taxes, depreciation and amortization.  “EDGAR” means the Electronic Data Gathering, Analysis, and Retrieval system  of the SEC.  “Effective Federal Funds Rate” means, for any day, the rate per annum (rounded  upwards, if necessary, to the nearest 1/100th of 1%) equal to the average of the rates on  overnight federal funds transactions with members of the Federal Reserve System arranged by  federal funds brokers on such day, as published by the Federal Reserve Bank of New York on  the Business Day next succeeding such day; provided that, if such day is not a Business Day or  the Effective Federal Funds Rate is not so published for any day, the Effective Federal Funds  Rate for such day shall be such rate on such transactions on the next Business Day as so  published on the next succeeding Business Day.  “Effective Time” means 12:01 a.m., New York time, or another time that is  agreed to in writing by the parties hereto, on the Closing Date.  

 

  -6-    “Environmental Laws” means all Laws that: (w) regulate air, water, soil and solid  waste management, including the generation, release, containment, storage, handling,  transportation, disposition or management of any Hazardous Substance; (x) regulate or prescribe  requirements for air, water or soil quality; (y) are intended to protect public health from exposure  to any hazardous or toxic substance or to protect the environment; or (z) establish liability for the  investigation, removal or cleanup of, or damage caused by, any Hazardous Substance.  “ERISA” means the Employee Retirement Income Security Act of 1974.  “Estimated Closing Balance Sheet” means a balance sheet of the Bank as of the  close of business on the Estimated Closing Balance Sheet Date, using the same methodologies,  assumptions, accounting policies, principles, practices and categories used in the preparation of  the balance sheet shown in Schedule 2 (including, for the avoidance of doubt, with such balance  sheet being calculated (a) on a “going concern” basis, (b) not taking into account any changes in  the assets or liabilities of the Bank as a result of purchase accounting or any other accounting  adjustments in each case arising as a consequence, in and of themselves, of the Stock Sale, and  (c) taking into account any changes in the assets or liabilities of the Bank as a result of any  accounting adjustments in each case arising as a consequence, in and of themselves, of the  Excluded Assets and Liabilities Transfer).  The Estimated Closing Balance Sheet will reflect the  estimated effect of the Excluded Assets and Liabilities Transfer and the estimated effect of the  Special Dividend Transaction (to the extent either such transaction has not yet occurred by the  date of the Estimated Closing Balance Sheet) or the effect of such transactions (to the extent they  have occurred prior to the date of the Estimated Closing Balance Sheet).  “Estimated Closing Balance Sheet Date” means the last day of the second (2nd)  month immediately preceding the month in which the Closing Date occurs.   “Estimated Closing TBV” means the amount in dollars equal to the TBV, as of  the Estimated Closing Balance Sheet Date, as calculated from the Estimated Closing Balance  Sheet.  “Estimated Purchase Price” means (a) the Estimated Closing TBV plus (b) the  Premium minus (c) the Excess Capital Amount, if any.   “Excess Capital” means the amount (if any) by which the Estimated Closing  TBV exceeds the Target Closing TBV.  “Excess Capital Amount” has the meaning set forth in Section 5.16.  “Exchange Act” means the Securities Exchange Act of 1934.  “Excluded Assets and Liabilities” has the meaning set forth in Section 5.14(a).  “Excluded Assets and Liabilities Transfer” has the meaning set forth in Section  5.14(a).  “Excluded Customer” means any customer that is (a) a private equity or other  fund sponsor and its individual funds and portfolio companies or (b) a Japanese Corporate  

 

  -7-    Customer, in each case that is identified on the list of Excluded Customers to be delivered by  Sellers to Purchaser pursuant to Section 5.7(b).   “Excluded Employee” means each current or former employee, officer, director,  or natural person independent contractor of Seller and its Affiliates, including the Bank or of any  Transferred Subsidiary, who is not a Business Employee.  “Excluded Subsidiaries” means Intrepid Investment Bankers LLC and Union  Bank of California Leasing, Inc.  “Excluded Taxes” means (a) any Taxes imposed on Seller (including any Taxes  required to be withheld from the payment of the Purchase Price) or any of its Affiliates (other  than the Bank and the Transferred Subsidiaries) for any taxable period, (b) any Taxes imposed  on the Bank, any Transferred Subsidiary or any Excluded Subsidiary for any Seller Tax Period,  determined, with respect to any Straddle Period, in accordance with Section 5.9(a)(iii), (c) any  Taxes attributable to or arising from (i) the Excluded Assets and Liabilities Transfer or (ii) any  action taken pursuant to Section 5.12, (d) any Taxes attributable to or arising from any breach by  Seller of its representations or warranties in Section 3.15 (without giving effect to any limitations  as to materiality or “Material Adverse Effect” set forth therein) or its covenants in this  Agreement, (e) any liability for Taxes of any Person (other than the Bank or any Transferred  Subsidiary) for which the Bank or any Transferred Subsidiary is liable as a result of having been  a member of an affiliated, consolidated, combined, unitary or similar group prior to the Closing  and any liability for the payment of any Tax as a transferee or successor, by contract or otherwise  (in each case, as a result of a transaction or contract entered into prior to the Closing), (f) any  Transfer Taxes for which Seller is responsible pursuant to Section 5.9(d), (g) any payroll, social  security, unemployment or similar Taxes deferred by the Bank or the Transferred Subsidiaries  pursuant to, or in connection with, the CARES Act, IRS Notice 2020-65, or any other state,  federal or local law, notice or executive order providing similar relief in connection with  COVID-19, and (h) reasonable costs and expenses (including attorneys’ and other advisors’ fees)  related to any item described in clauses (a) through (g); provided that, notwithstanding anything  to the contrary herein, any (x) Taxes attributable to a Purchaser Tax Period are not Excluded  Taxes (except for (1) Taxes described in clause (a) of this definition and (2) any breach by Seller  of its representations or warranties in Section 3.15(f), 3.15(g), or 3.15(l)) and (y) no Taxes shall  be considered Excluded Taxes to the extent any current liability for such Taxes is reflected in the  Closing TBV, such Taxes have been taken into account for purposes of adjusting the Purchase  Price pursuant to Section 2.3, or payment has been made pursuant to Section 5.9(e).  “Extension of Credit” has the meaning set forth in Section 3.19(a).  “FDIC” means the Federal Deposit Insurance Corporation.  “FDIC Approval” has the meaning set forth in Schedule 3.  “Federal Reserve” means the Board of Governors of the Federal Reserve System.  “Federal Reserve Approval” has the meaning set forth in Schedule 3.  “FFIEC” means the Federal Financial Institution Examination Council.  

 

  -8-    “Financial Statements” has the meaning set forth in Section 3.6(a).  “Forfeited Seller Award” has the meaning set forth in Section 5.10(h).  “GAAP” means generally accepted accounting principles in the United States.  “Government Order” means any administrative decision or award, decree,  injunction, judgment, order, quasi-judicial decision or award, ruling or writ of any arbitrator,  mediator, tribunal, administrative agency or Governmental Authority.  “Government Shutdown” means any shutdown or material limiting of certain U.S.  or foreign federal, state or local government services.  “Governmental Authority” means any Japanese, other non-U.S., or U.S. federal,  state, county, city or local legislative, administrative, self-regulatory or regulatory authority,  agency, court, tribunal or judicial or arbitral body or other governmental or quasi-governmental  entity with competent jurisdiction, including any supranational body.  “Hazardous Substance” means: (i) those substances defined in or regulated under  the Hazardous Materials Transportation Act, the Resource Conservation and Recovery Act, the  Comprehensive Environmental Response, Compensation and Liability Act, the Clean Water Act,  the Safe Drinking Water Act, the Atomic Energy Act, the Federal Insecticide, Fungicide, and  Rodenticide Act and the Clean Air Act, and their state counterparts, as each may be amended  from time to time, and all regulations thereunder; (ii) petroleum and petroleum products,  including crude oil and any fractions thereof; (iii) natural gas, synthetic gas, and any mixtures  thereof; (iv) polychlorinated biphenyls, asbestos and radon; and (v) any substance, material or  waste regulated by any Governmental Authority pursuant to any Environmental Law.  “Highmark Registrations” means the Australian Reg. No. 786669 for  “HIGHMARK”, the European Community Reg. No. 1087329 for “HIGHMARK”, the  Switzerland Reg. No. 1690/1999 for “HIGHMARK”, and the United Kingdom Reg. No.  2190083 for “HIGHMARK”.   “Indemnified Party” has the meaning set forth in Section 8.1(d).  “Indemnifying Party” has the meaning set forth in Section 8.1(d).  “Intellectual Property” means any intellectual property rights, including any of the  following, whether or not Registered, and all rights therein, arising in the U.S. or any other  jurisdiction throughout the world:  (i) trademarks, service marks, Internet domain names, logos,  brand names, common law trademark rights, trade dress and trade names and other indicia of  origin, registrations and applications for registration of the foregoing, and the goodwill  associated therewith and symbolized thereby (collectively, “Marks”), (ii)  patents and patent  applications and all divisions, continuations, continuations-in-part, reissues, reexaminations, and  any extensions thereof, (iii) rights in confidential and proprietary information, including trade  secrets and know-how and (iv) copyrights (including rights in works of authorship including all  computer software (in object code and source code)), registrations and applications for  registration of the foregoing, and all renewals, extensions, reversions and restorations thereof.  

 

  -9-    “Intercompany Payables” means all account, note or loan payables and all  advances (cash or otherwise) or any other extensions of credit that are payable by Seller or any  of its Affiliates (other than the Bank or the Transferred Subsidiaries) to the Bank or the  Transferred Subsidiaries.  “Intercompany Receivables” means all account, note or loan payables and all  advances (cash or otherwise) or any other extensions of credit that are receivable by Seller or any  of its Affiliates (other than the Bank or the Transferred Subsidiaries) from the Bank or the  Transferred Subsidiaries.  “IRS” means the Internal Revenue Service.  “IT Assets” means any and all computers, software, firmware, middleware,  servers, workstations, routers, hubs, switches, data communications lines and all other  information technology equipment, and all associated documentation (excluding any public  networks).  “Japanese Corporate Business” means any business of Sellers and their Controlled  Affiliates servicing the needs of any Japanese Corporate Customer or of any Person that is  directly or indirectly controlled by any Japanese Corporate Customer.   “Japanese Corporate Customer” means any corporation, company, partnership,  association, trust, unincorporated organization or any other form of business operations  (including branches or other establishment) incorporated or formed in Japan.   “JFSA” means the Japanese Financial Services Agency.  “JFSA Approval” has the meaning set forth in Schedule 3.  “Knowledge” means, as of any date, with respect to Sellers, the actual knowledge  as of such date of any of the officers of the Sellers or the Bank listed on Section 1.1(a) of Sellers’  Disclosure Schedule.  “Law” means any foreign, federal, state or local law (including common law),  statute, code, ordinance, rule, regulation, order, award, writ, decree, directive or injunction  issued, promulgated or entered into by or with any Governmental Authority.  “Lien” means any charge, mortgage, pledge, security interest, restriction, claim,  lien or other similar encumbrance.  “Loan Data File” has the meaning set forth in Section 3.19(d).  “Lock-up Period” has the meaning set forth in Section 2.9.  “Losses” means any damages, losses, payments, judgments, out-of-pocket costs  and expenses (including reasonable and documented legal fees), liabilities, obligations, Taxes,  interests, awards and penalties, including as a result of Actions.  

 

  -10-    “Marks” has the meaning set forth in the definition of “Intellectual Property”.  “Material Adverse Effect” means any change, effect, event or occurrence that,  individually or in the aggregate, (i) has been or would reasonably be expected to be materially  adverse to the business, financial condition, or the results of operations of the Bank and its  Transferred Subsidiaries, taken as a whole, or (ii) prevents or materially impairs the  consummation of the Transactions; provided that none of the following (or the results thereof),  either alone or in combination, shall constitute or contribute to a Material Adverse Effect under  clause (i): (a) any change in GAAP or regulatory accounting requirements, or any adoption,  proposal, implementation or change in Law (including any Law in respect of Taxes, and Laws  newly enacted for, relating to or arising out of efforts to implement Contagion Event Measures  and address the spread of any Contagion Event) or any interpretation thereof by any  Governmental Authority; (b) changes, events, conditions or trends in economic, business, credit  or financial conditions generally affecting the banking and financial sector specifically, and  changes in the capital or credit markets, including any downgrades in the credit markets, or  adverse credit events resulting in deterioration in the credit markets generally (including any  such change resulting from or arising out of a Contagion Event); (c) any change in global or  national political conditions (including as result of the outbreak of war, acts of terrorism or a  Contagion Event); (d) changes as the result of other international, national, or regional calamity  or global health conditions, including any Contagion Event (and the related Contagion Event  Measures), any Government Shutdown, any declaration of martial law or similar directive,  guidance, policy or guidance or other action by any Governmental Authority; (e) any change  generally affecting the U.S. financial services industry and not specifically relating to the Bank  and its Transferred Subsidiaries; (f) any change resulting from or arising out of hurricanes,  earthquakes, floods, or other natural disasters; (g) the execution, announcement or performance  of this Agreement or consummation of the Transactions (it being understood and agreed that this  clause (g) shall not apply with respect to any representation or warranty that is intended to  address the consequences of the execution, announcement or performance of this Agreement or  consummation of the Transactions); (h) the failure, in and of itself, of the Bank to meet any  internal projections, forecasts or estimates of performance, revenues or earnings (it being  understood and agreed that this clause (h) shall not preclude Purchaser from asserting that any  facts or occurrences giving rise to or contributing to such failure that are not otherwise excluded  from the definition of Material Adverse Effect should be deemed to constitute, or be taken into  account in determining whether there has been a Material Adverse Effect); (i) any actions (or the  effects of any action) taken (or omitted to be taken) upon the written request or instruction of, or  with the written consent of, Purchaser or one of its Affiliates; or (j) any action (or the effects of  any action) taken (or omitted to be taken) by the Sellers or any of their respective Subsidiaries as  expressly required pursuant to this Agreement, except in the case of each of clauses (a) through  and including (f), to the extent that any such event, circumstance, development, change,  occurrence or effect has a disproportionate adverse effect on the Bank and its Transferred  Subsidiaries, taken as a whole, relative to the adverse effect such event, circumstance,  development, change, occurrence or effect has on other companies operating in the industries in  which the Bank or any Transferred Subsidiary materially engages; it being agreed, for purposes  of this Agreement, that the COVID-19 pandemic has not, as of the date of this Agreement, had  such a disproportionate adverse effect on the Bank and its Transferred Subsidiaries, taken as a  whole.  

 

  -11-    “Material Contract” has the meaning set forth in Section 3.7(a).  “Maximum Closing TBV” means $11,250,000,000.  “Multiemployer Plan” means each “multiemployer plan” within the meaning of  Section 4001(a)(3) of ERISA.  “Multiple Employer Plan” has the meaning set forth in Section 3.13(d).  “New Plans” has the meaning set forth in Section 5.10(b).  “Non-Compete Term” shall have the meaning set forth in Section 5.7(a).  “Non-Controlling Party” has the meaning set forth in Section 5.9(g)(iv).  “NYSE” means the New York Stock Exchange.  “OCC” means the Office of the Comptroller of the Currency.  “OCC Approval” has the meaning set forth in Schedule 3.  “Outside Date” means September 30, 2022, as such date may be adjusted in  accordance with Section 7.1(c).  “P&A Agreement” has the meaning set forth in Section 5.14(a).  “PBGC” has the meaning set forth in Section 3.13(e).  “Permits” has the meaning set forth in Section 3.9(a)(i).  “Permitted Liens” means, with respect to the Bank and the Transferred  Subsidiaries, (a) mechanics’, materialmen’s, warehousemen’s, carriers’, workers’, landlord’s or  repairmen’s liens or other similar common law or statutory Liens arising or incurred in the  ordinary course of business and, in each case, with respect to which adequate reserves have been  established, to the extent required by, and in such case in accordance with, GAAP and/or  requirements under applicable Law (including applicable regulatory accounting principles) and  set forth in the Bank Call Reports filed prior to the date hereof; (b) liens for Taxes, assessments  and other governmental charges not yet due and payable or being contested in good faith by  appropriate proceedings and for which adequate reserves have been established, to the extent  required by, and in such case in accordance with, GAAP and/or requirements under applicable  Law (including applicable regulatory accounting principles) and set forth in the Bank Call  Reports filed prior to the date hereof, (c) licenses and other similar rights under Intellectual  Property; (d) exceptions (including easements, covenants, rights of way, restrictions or other  similar charges), gaps or other imperfections or defects or irregularities in the chain of title or  other Liens that are readily apparent from the records of the applicable Governmental Authority  registries and which were incurred in the ordinary course of business that do not, in any case,  materially detract from the value or the use of the property subject thereto; (e) Liens against real  estate that would be shown by a current title policy, title report or other similar report or listing  

 

  -12-    or implied by law and which were incurred in the ordinary course of business that do not, in any  case, materially detract from the value or the use of the property subject thereto; (f) pledges  incurred or deposits made in connection with workman’s compensation, unemployment  insurance and other similar types of social security programs or to secure the performance of  tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts,  performance and return of money bonds and obligations, in each case in the ordinary course of  business; (g) limitations on the transfer of securities arising under Securities Laws that do not  materially detract from the value or the use of such securities; (h) Liens reflected on or  specifically reserved against or otherwise disclosed in the consolidated balance sheets included  in the Bank Call Reports filed prior to the date hereof; (i) any Liens that will be terminated at or  prior to Closing in accordance with this Agreement; and (j) Liens that are not material to the  Bank and the Transferred Subsidiaries, taken as a whole.  “Person” means any individual, bank, savings association, corporation,  partnership, limited liability company, association, joint stock company, business trust or  unincorporated organization.  “Personal Information” means all information that can be used to identify an  individual person or household.  “Pre-Closing Portion” has the meaning set forth in Section 5.10(d)(ii).  “Premium” means $1,750,000,000.  “Privacy Laws” means all applicable Laws relating to the privacy and data  security of Personal Information, including with respect to the receipt, collection, compilation,  use, storage, processing, sharing, safeguarding, security, disposal, destruction, disclosure or  transfer of Personal Information.  “Purchase” has the meaning set forth in the Recitals.  “Purchase Price” means (a) the Closing TBV plus (b) the Premium minus (c) the  Excess Capital Amount, if any.  “Purchaser” has the meaning set forth in the Preamble.  “Purchaser 401(k) Plan” has the meaning set forth in Section 5.10(g).  “Purchaser Bank” means U.S. Bank National Association, a national banking  association and a wholly owned Subsidiary of Purchaser.  “Purchaser Capital Stock” has the meaning set forth in Section 4.2.  “Purchaser Common Stock” has the meaning set forth in Section 4.2.  “Purchaser Financial Statements” has the meaning set forth in Section 4.5(a).  “Purchaser Indemnified Party” has the meaning set forth in Section 8.1(b).  

 

  -13-    “Purchaser Indemnified Taxes” means any Taxes imposed on the Bank or the  Transferred Subsidiaries for any Purchaser Tax Period, other than any Excluded Taxes.  “Purchaser Material Adverse Effect” means any change, effect, event or  occurrence that, individually or in the aggregate, (i) has been or would reasonably be expected to  be materially adverse to the business, financial condition, or the results of operations of the  Purchaser and its Subsidiaries, taken as a whole, or (ii) prevents or materially impairs the  consummation of the Transactions; provided that none of the following (or the results thereof),  either alone or in combination, shall constitute or contribute to a Purchaser Material Adverse  Effect under clause (i): (a) any change in GAAP or regulatory accounting requirements, or any  adoption, proposal, implementation or change in Law (including any Law in respect of Taxes,  and Laws newly enacted for, relating to or arising out of efforts to implement Contagion Event  Measures and address the spread of any Contagion Event) or any interpretation thereof by any  Governmental Authority; (b) changes, events, conditions or trends in economic, business, credit  or financial conditions generally affecting the banking and financial sector specifically, and  changes in the capital or credit markets, including any downgrades in the credit markets, or  adverse credit events resulting in deterioration in the credit markets generally (including any  such change resulting from or arising out of a Contagion Event); (c) any change in global or  national political conditions (including as result of the outbreak of war, acts of terrorism or a  Contagion Event); (d) changes as the result of other international, national, or regional calamity  or global health conditions, including any Contagion Event (and the related Contagion Event  Measures), any Government Shutdown, any declaration of martial law or similar directive,  guidance, policy or guidance or other action by any Governmental Authority; (e) any change  generally affecting the U.S. financial services industry and not specifically relating to the  Purchaser or its Subsidiaries; (f) any change resulting from or arising out of hurricanes,  earthquakes, floods, or other natural disasters; (g) the execution, announcement or performance  of this Agreement or consummation of the Transactions (it being understood and agreed that this  clause (g) shall not apply with respect to any representation or warranty that is intended to  address the consequences of the execution, announcement or performance of this Agreement or  consummation of the Transactions); (h) the failure, in and of itself, of the Purchaser to meet any  internal or public projections, forecasts or estimates of performance, revenues or earnings (it  being understood and agreed that this clause (h) shall not preclude Seller from asserting that any  facts or occurrences giving rise to or contributing to such failure that are not otherwise excluded  from the definition of Material Adverse Effect should be deemed to constitute, or be taken into  account in determining whether there has been a Material Adverse Effect); (i) any actions (or the  effects of any action) taken (or omitted to be taken) upon the written request or instruction of, or  with the written consent of, Seller or one of its Affiliates; or (j) any action (or the effects of any  action) taken (or omitted to be taken) by the Purchaser or any of its Subsidiaries as expressly  required pursuant to this Agreement, except in the case of each of clauses (a) through and  including (f), to the extent that any such event, circumstance, development, change, occurrence  or effect has a disproportionate adverse effect on the Purchaser and its Subsidiaries, taken as a  whole, relative to the adverse effect such event, circumstance, development, change, occurrence  or effect has on other companies operating in the industries in which the Purchaser or any of its  Subsidiaries materially engages; it being agreed, for purposes of this Agreement, that the  COVID-19 pandemic has not, as of the date of this Agreement, had such a disproportionate  adverse effect on the Purchaser and its Subsidiaries, taken as a whole.  

 

  -14-    “Purchaser Preferred Stock” has the meaning set forth in Section 4.2.  “Purchaser SEC Reports” means the forms, statements, certifications, reports and  documents publicly filed with or furnished to the SEC by the Purchaser, pursuant to the  Exchange Act or the Securities Act, including any amendments thereto and those that may be  filed or furnished subsequent to the date of this Agreement (excluding, in each case, any  disclosures set forth in any risk factor section or in any other section to the extent they are  forward-looking statements or cautionary, predictive or forward-looking in nature).  “Purchaser Tax Period” means any taxable period beginning after the Closing  Date and, with respect to a Straddle Period, the portion of such taxable period beginning after the  Closing Date.  “Purchaser Tax Return” has the meaning set forth in Section 5.9(b).  “Purchaser’s Fundamental Warranties” means those representations and  warranties set forth in Section 4.1 (Organization, Standing and Authority), Section 4.2 (Capital  Structure), Section 4.3 (Corporate Authorization and Binding Effect), Section 4.4 (Regulatory  Filings; No Defaults), Section 4.9 (Availability of Funds) and Section 4.10 (Investment) and,  solely for purposes of Section 8.1, Section 4.8 (No Brokers).  “Real Property” has the meaning set forth in Section 3.8(b).  “Receiving Party” has the meaning set forth in Section 5.5.  “Registered” means issued by, registered with, renewed by or the subject of a  pending application before any Governmental Authority or internet domain name registrar.  “Registration Rights Agreement” has the meaning set forth in Section 5.22.  “Related Party Contracts” means any Contract by the Bank or any Transferred  Subsidiary with either Seller or any of its Affiliates (other than the Bank or any Transferred  Subsidiary).  “Release” means any release, spill, emission, leaking, pumping, injection, deposit,  disposal, discharge, dispersal or leaching of any Hazardous Substance into the environment.  “Replacement Award” has the meaning set forth in Section 5.10(h).  “Reports” has the meaning set forth in Section 3.9(a)(iv).  “Representatives” means, with respect to any Person, such Person’s, or such  Person’s Subsidiaries’, directors, officers, employees, accountants, investment bankers, agents,  attorneys and other advisors or representatives (including the employees or attorneys thereof).  “Requisite Regulatory Approvals” has the meaning set forth in Section 5.3(a).  

 

  -15-    “Restricted Banking Business” means any FDIC-insured branch-based or other  retail banking, consumer lending or similar business (including any of the business/small  business banking, wealth management and mass affluent/mass market businesses currently  conducted by the Bank and the Transferred Subsidiaries); provided that, for the avoidance of  doubt, “Restricted Banking Business” shall not include any Japanese Corporate Business.  “Restricted Customer” means any customer of the commercial banking, real  estate industries, business/small business banking, wealth management and consumer lending  businesses currently conducted by the Bank and its Subsidiaries and in each case who shall be  identified on the list of Restricted Customer to be delivered by Sellers to Purchaser prior to the  Closing Date pursuant to Section 5.7(b) (for the avoidance of doubt, an Excluded Customer shall  not constitute a “Restricted Customer” and shall not be listed on the list of Restricted  Customers).   “Restricted Territory” means the United States.  “Retained Shared IP” means all Intellectual Property (excluding all Marks and  Shared Software) owned by the Sellers or any of their Affiliates immediately following the  Closing that is used in or necessary for the conduct of the Bank’s and the Transferred  Subsidiaries’ respective businesses as of the Closing Date.  “Reverse Transitional Services Agreement” has the meaning set forth in Section  5.22.  “Rights” means, with respect to any Person, securities or obligations convertible  into or exercisable or exchangeable for, or giving any Person any right to subscribe for or  acquire, or any warrants, options, restricted shares, performance shares, restricted share units,  performance share units, phantom equity, calls or commitments relating to, or any stock or  equity appreciation right or other equity or equity-based awards or other instrument the value of  which is determined in whole or in part by reference to the market price, book or other value of,  shares of capital stock, units or other equity interests of such Person or any of such Person’s  Subsidiaries.  “Sanctions” shall mean economic or financial sanctions or trade embargoes  imposed, administered or enforced from time to time by U.S. Governmental Authorities  (including, but not limited to, the U.S. Office of Foreign Assets Control, the U.S. Department of  State and the U.S. Department of Commerce), the United Nations Security Council, the E.U. or  other applicable Governmental Authority.  “SEC” means the Securities and Exchange Commission.  “Securities Act” means the Securities Act of 1933.  “Securities Laws” means the Securities Act, the Exchange Act and any applicable  securities Laws of any state.  “Seller” has the meaning set forth in the Preamble.  

 

  -16-    “Seller Bank” means MUFG Bank, Ltd.  “Seller Benefit Plan” means each Employee Plan with respect to which the Sellers  or any of their respective Subsidiaries (other than the Bank or the Transferred Subsidiaries)  maintains, or sponsors, in each case, for the benefit of any Business Employee, excluding, in  each case, any Multiemployer Plan.  “Seller Holdco” has the meaning set forth in the Preamble.  “Seller Indemnified Party” has the meaning set forth in Section 8.1(c).  “Seller Marks” has the meaning set forth in Section 5.11(a).  “Seller Tax Period” means any taxable period ending on or before the Closing  Date and, with respect to a Straddle Period, the portion of such taxable period ending on and  including the Closing Date.  “Seller Tax Return” has the meaning set forth in Section 5.9(b).  “Sellers’ Disclosure Schedule” has the meaning set forth in ARTICLE 3.  “Sellers’ Fundamental Warranties” means, with respect to the representations and  warranties set forth in Section 3.1 (Organization, Standing and Authority), Section 3.2 (Capital  Structure) (other than the last sentence of Section 3.2(a)), Section 3.3 (Subsidiary Equity  Holdings) and Section 3.4 (Corporate Authorization and Binding Effect) and, solely for purposes  of Section 8.1, Section 3.12 (No Brokers).  “Shared Software” means all software, firmware and middleware (in each case, in  object code and source code) owned by the Bank or any of the Transferred Subsidiaries and used  in the businesses of the Seller and its Affiliates (other than the Bank and the Transferred  Subsidiaries, but including (i) the businesses conducted by the Bank and the Subsidiaries  described in Schedule 4 attached hereto, and (ii) the Excluded Assets and Liabilities).  “Shares” has the meaning set forth in the Recitals.  “Special Dividend Amount” means an amount equal to the maximum amount  approved by the OCC for the declaration and payment of a dividend by the Bank or any other  return of, or reduction in, the Bank’s capital in connection with the consummation of the  Transactions; provided that (a) the Special Dividend Transaction shall not result in the Estimated  Closing TBV being more than the Maximum Closing TBV and (b) if the Special Dividend  Transaction would result in the Estimated Closing TBV being less than the Target Closing TBV,  then the Special Dividend Amount shall be reduced to an amount so that the Special Dividend  Transaction would result in the Estimated Closing TBV being equal to the Target Closing TBV.  “Special Dividend Approval” has the meaning set forth in Schedule 3.  “Special Dividend Transaction” has the meaning set forth in Section 5.15.  

 

  -17-    “Stock Consideration” means 44,374,155 shares of Purchaser Common Stock,  free and clear of any Lien (other than restrictions on transfer which arise under applicable  Securities Laws, this Agreement or the other Transaction Documents).  “Stock Consideration Value” means $2,500,000,000.  “Stock Sale” has the meaning set forth in Section 2.1.  “Straddle Period” means a taxable period that begins on or before the Closing  Date and ends after the Closing Date.  “Subsidiary” means, with respect to any Person, any corporation, company  (including any limited liability company), association, partnership, joint venture or other  business entity of which a majority of the total voting power of the voting stock is at the time  owned or controlled, directly or indirectly.  “Subsidiary Shares” has the meaning set forth in Section 3.3.  “Target Closing TBV” means $6,250,000,000.  “Tax” and “Taxes” mean all federal, state, local and foreign taxes, however  denominated (including income, gross receipts, windfall profits, severance, property, production,  sales, use, license, excise, franchise, employment or withholding taxes), together with any  interest, penalties and additions imposed by any Taxing Authority with respect to taxes.  “Tax Proceeding” means any inquiry, claim, audit, action, suit, proceeding,  examination, contest, litigation or investigation by any Governmental Authority in respect of  Taxes.  “Tax Returns” means all federal, state, local and foreign returns, declarations,  claims for refund and information reports, statements, schedules or attachments thereto filed or  required to be filed with respect to any Tax, and any amendment thereof.  “Taxing Authority” means any Governmental Authority having or purporting to  exercise jurisdiction with respect to any Tax.   “TBV” means, as of any specified date, the tangible book value of the Bank  calculated from the corresponding balance sheet of the Bank as of such specified date.  For  purposes of this definition, the tangible book value of the Bank will be calculated using the same  methodologies, assumptions, accounting policies, principles, practices and categories used in  calculating the tangible book value of the Bank as set forth in Schedule 2. Notwithstanding  anything to the contrary, TBV shall not include any Tax refunds, Tax attributes relating to net  operating loss carryforwards or Tax credits (and, for the avoidance of doubt, any reserves related  thereto and any corresponding items which are derivative of such items, such as adjustments to  deferred Tax assets due to federal benefits associated with state items).  “Third Party” has the meaning set forth in Section 8.1(d).  

 

  -18-    “Third Party Claim” has the meaning set forth in Section 8.1(e).  “Third Party Consents” shall mean all material consents, approvals, waivers,  registrations, permits, authorizations, notices or filings required to be obtained by Seller or its  Affiliates, or to be given by Seller or its Affiliates to, or made by Seller or its Affiliates with, any  third party other than a Governmental Authority, in connection with the execution, delivery and  performance by Sellers of the Transaction Documents and the consummation of the  Transactions, including to permit the continuation of any Material Contracts with the Bank or the  Transferred Subsidiaries following the Closing.  “Transaction Documents” means this Agreement, the P&A Agreement, the  Transitional Services Agreement, Reverse Transitional Services Agreement, and the Registration  Rights Agreement.  “Transaction Expenses” means, without duplication, (a) to the extent incurred  prior to the Closing Date in connection with the negotiation, execution or delivery of this  Agreement or any other Transaction Documents or consummation of the Transactions, the out- of-pocket fees and expenses incurred by, or on behalf of, and paid or to be paid, directly by the  Bank or the Transferred Subsidiaries, including to any Person that any of the Bank or the  Transferred Subsidiaries prior to the Closing agrees to pay or reimburse, or is otherwise legally  obligated to pay or reimburse in connection with the foregoing, including (i) all fees and  expenses of counsel, advisors, consultants, investment bankers, accountants, auditors and any  other experts and (ii) all brokers’, finders’ or similar fees and (b) all transaction-related bonuses,  stay bonuses, sale bonuses, change in control payments, retention bonuses, severance or  termination payments or any similar payments paid or payable by the Bank or the Transferred  Subsidiaries in connection with or resulting from the Transactions ((x) excluding any such  severance payments or similar obligations or benefits (A) accrued or payable before the Closing  as a result of any requests by Purchaser or its Affiliates or (B) that become accrued or payable  following the Closing but (y) notwithstanding the foregoing clause (x), Transaction Expenses  shall include any obligations or benefits under the arrangements set forth under the heading  “Transaction Expenses” in Section 1.1 of Sellers’ Disclosure Schedule to the extent the  applicable individual is a Business Employee), together with all employer-side employment  Taxes or similar obligations (without regard to any ability to defer any such Taxes) paid or  payable with respect to any of the foregoing amounts in this clause (b).  For the avoidance of  doubt, all fees and expenses of Seller and its Affiliates (other than the Bank or the Transferred  Subsidiaries) will be borne separately by Seller pursuant to Section 8.10 hereof and shall not  under any circumstances constitute Transaction Expenses.  “Transactions” means the transactions contemplated by and provided for in this  Agreement and the other Transaction Documents (including the Excluded Assets and Liabilities  Transfer, the Special Dividend Transaction, the Stock Sale and the Bank Merger).  “Transfer” has the meaning set forth in the Recitals.  “Transfer Taxes” means all U.S. federal, state and local sales, use, value added,  transfer (including real property transfer), stamp, documentary, filing, recordation and other  similar taxes and fees that may be imposed or assessed on the Transfer and Purchase of the  

 

  -19-    Shares pursuant to this Agreement, together with any interest, additions or penalties with respect  thereto and any interest in respect of such additions or penalties. For the avoidance of doubt,  Transfer Taxes shall not include any Taxes (i) measured, in whole or in part, by reference to  income or gain, or (ii) imposed by any jurisdiction in which Seller is organized or resident for  Tax purposes.  “Transferred Shared IP” means all Intellectual Property (excluding any Mark)  owned by the Bank or any Transferred Subsidiary immediately following the Closing that is used  in or necessary for the conduct of the business of the Sellers or its Affiliates (other than the Bank  or any Transferred Subsidiary) as of the Closing Date.  “Transferred Subsidiary” means each Subsidiary of the Bank set forth on Section  3.1(a) of the Sellers’ Disclosure Schedule.  “Transition Period” means the period beginning on the Closing Date and ending  twelve (12) months thereafter, as may be extended by the mutual written agreement of the  Parties.  “Transition Plan” has the meaning set forth in Section 5.26.  “Transition Representative” has the meaning set forth in Section 5.26.  “Transitional Services Agreement” has the meaning set forth in Section 5.22.  “Treasury Regulations” means the regulations promulgated under the Code by the  U.S. Department of Treasury.  “WARN” means the Worker Adjustment and Retraining Notification Act and any  comparable foreign, state or local law.  Section 1.2 Interpretation and Construction.  (a) Unless the context otherwise requires, references herein to:  (i) specific Articles, Sections, Exhibits or Schedules refer,  respectively, to Articles, Sections, Exhibits or Schedules of this Agreement;  (ii) any statute or regulation refer to such statute or regulation as  amended, modified, supplemented or replaced from time to time (and, in the case of  statutes, include any rules and regulations promulgated under the statute) and references  to any Section of any statute or regulation include any successor to such Section;  (iii) any Contract (including this Agreement) or Constituent Document  refer to the Contract or Constituent Document as amended, modified, supplemented or  replaced from time to time;  (iv) the term “ordinary course of business”, with respect to any party,  means ordinary course of business taking into account the commercially reasonable  

 

  -20-    actions taken by such party and its Affiliates in response to the Contagion Event and  Contagion Event Measures;  (v) any Governmental Authority include any successor to such  Governmental Authority;  (vi) the words “hereof,” “herein,” and “hereunder” and words of  similar import, when used in this Agreement, refer to this Agreement as a whole and not  to any particular provision of this Agreement;  (vii) the terms “Dollars” and “$” mean the lawful currency of the  United States;  (viii) the words “include,” “includes,” or “including” shall be deemed to  be followed by the words “without limitation”;  (ix) the term “made available” means any document or other  information that was (i) provided by one party or its representatives to the other party and  its representatives prior to the execution and delivery of this Agreement, (ii) included in  the virtual data room of a party prior to the execution and delivery of this Agreement,  (iii) filed or furnished by a party with the SEC and publicly available on EDGAR prior to  the execution and delivery of this Agreement, or (iv) filed by the Bank and publicly  available on the FFIEC Central Data Repository’s Public Data Distribution website prior  to the execution and delivery of this Agreement;  (x) the word “control” means “control” for purposes of the BHC Act  and the Federal Reserve’s regulations and formal written guidance thereunder; and the  terms “controlling” and “controlled” have correlative meanings to the foregoing; and  (xi) the word “day” means a calendar day.  (b) The table of contents and headings contained in this Agreement are for  reference purposes only and do not limit or otherwise affect any of the provisions of this  Agreement.  (c) The parties to this Agreement have participated jointly in the negotiation  and drafting of this Agreement.  In the event of an ambiguity or a question of intent or  interpretation, this Agreement shall be construed as if drafted jointly by the parties, and no  presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the  authorship of any provision of this Agreement.  (d) No representation, warranty, covenant or other agreement or provision  contained in this Agreement shall be deemed to contemplate or require the disclosure of  “confidential supervisory information,” as such term is defined in the regulations of any  applicable Governmental Authority.  

 

  -21-    (e) Notwithstanding anything to the contrary contained herein, no covenant or  other provision hereof shall be construed as enabling Purchaser to exercise control over the Bank  or the Transferred Subsidiaries prior to the Closing.   ARTICLE 2  THE TRANSACTION  Section 2.1 Purchase and Sale.  On the terms and subject to the conditions set  forth herein, at the Closing, (a) Seller shall Transfer, or cause to be Transferred, to Purchaser and  Purchaser shall Purchase from Seller, free and clear of any Liens (other than restrictions on  transfer which arise under applicable Securities Laws), the Shares (the “Stock Sale”) and  (b) Purchaser shall, in consideration of the Stock Sale, pay to Seller (or any Affiliate of Seller  designated by Seller in writing) the Purchase Price in the manner and in the form set forth herein.  Section 2.2 The Closing; Closing Deliverables.  (a) The closing of the Stock Sale (the “Closing”) shall occur at the offices of  Sullivan & Cromwell LLP, 125 Broad Street, New York, New York 10004 at 10:00 a.m., New  York City time, or remotely via electronic exchange of documents and signatures on (i) the first  (1st) day of the month immediately following the month in which each of the conditions set forth  in ARTICLE 6 (other than those conditions that by their nature are to be satisfied at the Closing  but subject to the fulfillment or waiver of those conditions) have been satisfied or waived in  accordance with this Agreement, or (ii) at such other time and place as the parties hereto may  mutually agree.  The Closing shall be deemed effective as of the Effective Time.  (b) At the Closing, Purchaser shall deliver to Seller the following:  (i) the Closing Date Cash Consideration, by wire transfer of  immediately available funds, to one or more accounts which have been designated by  Seller in writing at least three (3) Business Days prior to the Closing Date;   (ii) stock certificates, or if (at Purchaser’s election) the applicable  shares are uncertificated, other appropriate evidence of ownership reasonably acceptable  to Seller, representing a number of duly authorized and validly issued shares of Purchaser  Common Stock equal to the Stock Consideration, in each case registered in the name of  Seller, unless Seller designates some or all of such shares be registered in one or more  names of one or more Affiliates of Seller by written notice no later than ten (10) Business  Days prior to the Closing Date;  (iii) a written opinion of counsel with respect to the validity and due  authorization of the shares of Purchaser Common Stock comprising the Stock  Consideration and other customary matters with respect to the due incorporation and  valid existence of Purchaser and such shares being legally issued, fully paid and non- assessable;  (iv) duly executed counterparts of the Transitional Services Agreement,  Reverse Transitional Services Agreement, and Registration Rights Agreement;  

 

  -22-    (v) the certificate to be delivered pursuant to Section 6.3(d); and  (vi) all such other documents, Contracts, certificates, instruments and  records as may be reasonably necessary to consummate or effectuate the Transactions.  (c) At the Closing, Seller shall deliver, or cause to be delivered, to Purchaser  the following:  (i) subject to the receipt by Seller or its designated Affiliates of the  Closing Date Cash Consideration and Stock Consideration in accordance with Section  2.2(b), a receipt confirming that Seller or its designated Affiliate(s) has received payment  of the Closing Date Cash Consideration and the Stock Consideration;  (ii) certificates or, if uncertificated, other evidence of ownership,  representing the Shares, registered in the name of Purchaser;  (iii) a certificate of an authorized officer of Seller certifying the  completion of the Excluded Assets and Liabilities Transfer and the Special Dividend  Transaction;  (iv) a duly executed IRS Form W-9 or “certificate of non-foreign  status” of Seller, issued in accordance with Treasury Regulations Section 1.1445-2(b)(2);  (v) duly executed counterparts of the Transitional Services Agreement,  Reverse Transitional Services Agreement, and Registration Rights Agreement;  (vi) the certificate to be delivered pursuant to Section 6.2(d); and  (vii) all such other documents, Contracts, certificates, instruments and  records as may be reasonably necessary to consummate or effectuate the Transactions.  Section 2.3 Purchase Price Adjustment.  (a) Not fewer than five (5) Business Days prior to the Closing Date, Seller  shall deliver to Purchaser (1) the Estimated Closing Balance Sheet and (2) Seller’s resulting  calculation of the Estimated Closing TBV, in each case accompanied by reasonably detailed  calculations thereof.  Prior to the Closing, Seller shall cooperate in good faith to answer  questions and provide reasonable supporting documentation that may be reasonably requested by  Purchaser in connection with its review of the Estimated Closing Balance Sheet; provided, that,  if Seller and Purchaser are unable to agree as to any item set forth on the Estimated Closing  Balance Sheet prior to the Closing, the amounts set forth in the Estimated Closing Balance Sheet  provided by Seller (as modified to include any changes agreed to by Seller and Purchaser prior to  the Closing) shall be binding for purposes of this Section 2.3(a).  Following the Closing, any  disputes relating to the Estimated Closing Balance Sheet, and the calculation of the Estimated  Closing TBV set forth therein, shall be resolved in accordance with the remainder of this Section  2.3.  

 

  -23-    (b) As soon as practicable, but in no event (i) more than the later of (x) ninety  (90) days following the Closing Date and (y) ninety (90) days following the receipt by the Bank  of the Excluded Assets and Liabilities Closing Balance Sheet under the P&A Agreement from  Seller Bank, and (ii) no earlier than the receipt by the Bank of the Excluded Assets and  Liabilities Closing Balance Sheet under the P&A Agreement from Seller Bank, Purchaser shall  prepare and deliver to Seller (1) the Closing Balance Sheet and (2) Purchaser’s resulting  calculation of the Closing TBV, in each case accompanied by reasonably detailed calculations  thereof, detailed explanations of any changes or deviations from the Estimated Closing Balance  Sheet and a reconciliation of any changes in the amount of the Closing TBV from the amount of  the Estimated Closing TBV.  Purchaser’s Closing Balance Sheet and Purchaser’s resulting  calculation of the Closing TBV shall be consistent with the Bank’s determination of the  Excluded Assets and Liabilities Closing Balance Sheet pursuant to the P&A Agreement, unless  there is an unresolved disagreement with respect thereto that is submitted to a nationally  recognized independent accounting firm selected in accordance with the terms of the P&A  Agreement, in which case the disagreement shall be resolved under the P&A Agreement through  a process that parallels the process outlined in Section 2.3(c) of this Agreement and shall be  resolved prior to the Closing Balance Sheet (and the corresponding calculation of Closing TBV)  shall become final and binding on the parties.  In connection with Seller’s review of the  foregoing, Purchaser shall, and shall cause its Affiliates to, afford Seller and its accountants and  attorneys reasonable access to all work papers and documentation used in connection with, and  to any of Purchaser’s employees and accountants involved in, the preparation of the items  described in (1) and (2) above (subject to execution of customary access letters).  (c) Except as otherwise expressly provided herein, the determination of the  Closing Balance Sheet (and the corresponding calculation of Closing TBV) will be final and  binding on the parties, unless, within ninety (90) days after receipt by Seller of the Closing  Balance Sheet, Seller shall notify Purchaser in writing of its disagreement with any amount  included therein or omitted therefrom.  The parties shall negotiate in good faith to resolve any  such disputed items during the fifteen (15) Business Day period following the receipt by  Purchaser of notice of such disagreement, and disputed items that are resolved by written  agreement of the parties in such time period shall be final and binding upon the parties, and the  Closing Balance Sheet shall be updated accordingly.  If the parties are unable to resolve all  disputed items within such fifteen (15) Business Day period, the remaining disputed items will  be determined by a nationally recognized independent accounting firm selected by mutual  agreement of Seller and Purchaser (which shall be the same accounting firm, if any, selected  pursuant to the P&A Agreement); provided, however, that in the event the fees of such  accounting firm as estimated by such accounting firm would exceed fifty percent (50%) of the  net amount of all remaining disputed items, the parties agree that such accounting firm will not  be engaged by either party and that fifty percent (50%) of such net amount in dispute will be  apportioned to each of Seller and Purchaser.  Such accounting firm will make its determination  based solely on written submissions to the accounting firm by the parties and their respective  Representatives or any oral presentation (or additional written materials) requested by the  accounting firm but, in any event, not by independent review.  Within ten (10) Business Days of  the submission of any disputed items to the accounting firm, Purchaser and Seller shall  concurrently deliver supporting documentation (in writing) to the accounting firm (with a copy  to the other party).  The parties agree that all communications with or to the accounting firm will  include the other party and that there will be no ex parte communications with the accounting  

 

  -24-    firm (including with the personnel of the accounting firm assigned to resolve such disputes) with  respect to any dispute.  The parties shall instruct the accounting firm to render a written decision  resolving such disputes within fifteen (15) Business Days after such written submissions (or, if  later, the date of any oral presentations requested by the accounting firm), resolving only those  issues in dispute specifically submitted to the accounting firm.  In resolving any disputed item,  the accounting firm:  (1) will be bound by the applicable provisions set forth in this Agreement,  including the applicable definitions, (2) will limit its review to the disputed items submitted to  the accounting firm in the written submissions of the parties and shall not investigate matters  independently and (3) will not assign a value greater than the greatest value, or lower than the  lowest value, for such individual item claimed by any party.  The fees and disbursements of the  accounting firm will be allocated between Purchaser and Seller in the same proportion that the  aggregate amount of such remaining disputed items so submitted to the accounting firm that is  unsuccessfully disputed by each such party (as finally determined by the accounting firm) bears  to the total amount of such remaining disputed items so submitted.  By way of illustration, if  Purchaser’s calculations would have resulted in a $1,000,000 net payment to Purchaser, and  Seller’s calculations would have resulted in a $1,000,000 net payment to Seller and the  accounting firm’s final determination pursuant to this Section 2.3(c) results in an aggregate net  payment of $500,000 to Seller, then Purchaser and Seller shall pay 75% and 25%, respectively,  of the fees and disbursements of the accounting firm.  The parties agree that the resolution of  disputes with respect to the calculations and amounts set forth in the Closing Balance Sheet (and  the corresponding calculation of Closing TBV) (x) will be governed, solely and exclusively, by  the procedures set forth in this Section 2.3(c) and (y) will be conclusive and binding on the  parties when rendered by the accounting firm, except, in each case, in the case of fraud,  intentional misconduct or manifest error.  (d) If the Closing TBV (as mutually agreed by Seller and Purchaser or finally  determined by the accounting firm pursuant to Section 2.3(c)) exceeds the Estimated Closing  TBV, then Purchaser shall make an adjustment payment to Seller in an amount equal to such  excess.  If the Closing TBV (as mutually agreed by Seller and Purchaser or finally determined by  the accounting firm pursuant to Section 2.3(c)) is less than the Estimated Closing TBV, then  Seller shall make an adjustment payment to Purchaser in an amount equal to such difference.   Any payment pursuant to this Section 2.3(d) will be made together with interest on the amount of  such payment at the Effective Federal Funds Rate calculated on the basis of a 360-day year for  the actual number of days elapsed, accrued from the Closing Date until, but not including, the  date of payment.  Within ten (10) days following such mutual agreement or final determination  of the Closing TBV, any payment payable pursuant to this Section 2.3(d) will be paid in  immediately available funds in cash to a bank account or accounts designated by Purchaser or  Seller, as the case may be, at least two (2) Business Days prior to the expiration of such ten (10)  day period.  Any payments made pursuant to this Section 2.3(d) will be treated for all Tax  purposes as adjustments to the Purchase Price.  (e) For the avoidance of doubt, neither Purchaser and its Affiliates (on the one  hand) nor Sellers and their Affiliates (on the other hand) shall be entitled to recover more than  once with respect to the same amount under this Section 2.3 and the P&A Agreement (i.e., no  double-counting).  

 

  -25-    Section 2.4 Certain Adjustments.  If, at any time or times between the date of  this Agreement and the Closing, the Purchaser Common Stock shall have been changed into a  different class of shares, then the class of securities comprising the Stock Consideration shall be  appropriately adjusted to the extent necessary to preserve the economic effect of the Stock  Consideration as contemplated by this Agreement prior to such event; provided, however, that  nothing in this Section 2.4 shall be construed as permitting Purchaser to take any action or enter  into any transaction otherwise prohibited by this Agreement.  Section 2.5 Tax Treatment.  Purchaser and Sellers acknowledge and agree that  the Stock Sale shall be treated for U.S. federal income tax purposes as a taxable purchase and  sale of the Shares, and neither Purchaser nor Sellers shall take any position on any Tax Return,  or take any other reporting position, inconsistent with such treatment, unless otherwise required  by any change in applicable Law or in the interpretation or application thereof.   Section 2.6 Withholding.  Purchaser shall be entitled to deduct and withhold  from any amounts otherwise payable pursuant to this Agreement, such amounts as it is required  to deduct or withhold with respect to the making of such payment under the Code or any  provision of any U.S. federal, state, local or foreign Tax Law.  If Purchaser determines that it is  required to deduct or withhold any amount from any payment to be made pursuant to this  Agreement, Purchaser shall provide notice to Sellers of Purchaser’s intent to deduct or withhold  such amount and the basis for such deduction or withholding at least thirty (30) days before any  such deduction or withholding is made to the extent reasonably practicable, or shall otherwise  provide such notice as promptly as reasonably practicable, and Purchaser shall reasonably  cooperate with Sellers in order to eliminate or to reduce any such deduction or withholding,  including providing a reasonable opportunity for Sellers to provide forms or other evidence that  would mitigate, reduce or eliminate such deduction or withholding.  To the extent that amounts  are so deducted and withheld, such deducted and withheld amounts shall be treated for all  purposes of this Agreement as having been paid to the Person in respect of which such deduction  and withholding was made.  Section 2.7 Nonassignability of Excluded Assets and Liabilities.  To the extent  that the sale, assignment, sublease, transfer, conveyance or delivery or attempted sale, sublease,  assignment, transfer, conveyance or delivery to Seller or any Affiliate thereof (other than the  Bank or the Transferred Subsidiaries) of any asset or liability of the Bank or the Transferred  Subsidiaries that would be part of the Excluded Assets and Liabilities or any claim or right or  any benefit arising thereunder or resulting therefrom would require any third party  authorizations, approvals, consents or waivers (in each case, other than a Requisite Regulatory  Approval), and such authorizations, approvals, consents or waivers shall not have been obtained  prior to the Closing, then the Closing shall proceed without the sale, assignment, sublease,  transfer, conveyance or delivery of such asset or liability to Seller or any Affiliate thereof (other  than the Bank or the Transferred Subsidiaries) immediately prior to the Closing.  In the event  that Closing proceeds without the sale, assignment, sublease, transfer, conveyance or delivery of  any such asset or liability to Seller or any Affiliate thereof (other than the Bank or the  Transferred Subsidiaries) immediately prior to the Closing, then (i) the assets or liabilities with  respect to any such asset or liability shall be regarded as Excluded Assets and Liabilities  (including for purposes of the calculations required under Section 2.3 and the obligations of  Seller Holdco under Section 8.1) (except, for the avoidance of doubt, the Bank and its Affiliates  

 

  -26-    shall have access to the books and records related to any such asset or liability until such asset or  liability is transferred to Seller or any Affiliate thereof) and (ii) following the Closing, the parties  shall use their reasonable best efforts, and cooperate with each other, to obtain promptly such  authorizations, approvals, consents or waivers; provided, however, that none of Sellers or  Purchaser or any of their respective Affiliates shall be required to pay any consideration therefor  other than filing, recordation or similar fees which shall be borne by Seller.  Pending such  authorization, approval, consent or waiver, the parties shall cooperate with each other in any  mutually agreeable, reasonable and lawful arrangements designed to provide to Seller or its  Affiliates, as applicable, the benefits of use of such asset or liability and to Purchaser or its  Subsidiaries, as applicable, the benefits, including any indemnities, that they would have  obtained had the asset or liability been conveyed to Seller or its Affiliates at the Closing;  provided that Purchaser and its Subsidiaries shall not be required to extend or renew any  Contract regarding such asset or liability; provided further Purchaser may cause the Bank to  terminate any Contract regarding such asset or liability that contains material restrictive  covenants that would otherwise be assumed by Purchaser Bank by operation of the Bank Merger,  after consultation with Seller, within five (5) Business Days prior to effecting the Bank Merger   and Seller shall bear the costs of any early termination fees resulting from any such termination.   Once authorization, approval, consent or waiver for the sale, assignment, sublease, transfer,  conveyance or delivery of any such asset or liability not sold, assigned, subleased, transferred,  conveyed or delivered immediately prior to the Closing is obtained, Purchaser shall or shall  cause its Subsidiaries to, assign, transfer, convey and deliver any such asset or liability to Seller  or its Affiliate for no additional consideration.  To the extent that any such asset or liability  cannot be transferred from the Bank or the Transferred Subsidiaries to Seller or any Affiliate  thereof (other than the Bank or the Transferred Subsidiaries) immediately prior to the Closing or  the full benefits of use of any such asset or the full burden of any liability cannot be provided to  Seller or its Affiliate following the Closing pursuant to this Section 2.7, then Purchaser and  Seller shall enter into such arrangements (including subleasing, sublicensing or subcontracting)  to provide to the other party the economic (taking into account Tax costs and benefits) and  operational equivalent, in each case, to the extent permitted, of obtaining such authorization,  approval, consent or waiver and the performance by Seller or its Affiliates of the obligations  thereunder.  Purchaser or its Subsidiaries shall hold in trust for and pay to Seller or its Affiliates  promptly upon receipt thereof, all income, proceeds and other monies received by Purchaser or  any of its Subsidiaries in connection with its use of any asset (net of any Taxes and any other  costs imposed upon Purchaser or any of its Subsidiaries) in connection with the arrangements  under this Section 2.7.  Seller and its Affiliates shall promptly reimburse or indemnify Purchaser  and any of its Subsidiaries for any costs imposed upon Purchaser or any of its Subsidiaries in  connection with the arrangements under this Section 2.7. Within sixty (60) days of the date of  this Agreement, Seller shall deliver to Purchaser a list of all consents, approvals, waivers,  registrations, permits, authorizations, notices or filings required to be obtained by Seller or its  Affiliates (including the Bank and its Subsidiaries), or to be given by Seller or its Affiliates to, or  made by Seller or its Affiliates with, any third party in connection with the Excluded Assets and  Liabilities Transfer, and Seller shall, and shall cause the Bank and the Transferred Subsidiaries  to, use reasonable best efforts to obtain all such consents, approvals, waivers, registrations,  permits, authorizations, notices or filings.   Section 2.8 Bank Merger.  Following the Effective Time, the Bank will merge  with and into Purchaser Bank (the “Bank Merger”), with Purchaser Bank as the surviving entity  

 

  -27-    in the Bank Merger and, following the Bank Merger, the separate corporate existence of the  Bank shall cease.  The parties agree that the Bank Merger shall become effective at such time  following the Effective Time as Purchaser shall specify.  The Bank Merger shall be implemented  pursuant to an agreement and plan of merger in a customary form to be specified by Purchaser  and approved by Seller (the “Bank Merger Agreement”), such approval not to be unreasonably  withheld, conditioned or delayed.  Prior to the Effective Time, (a) (i) Seller shall cause the Bank  to approve the Bank Merger Agreement, (ii) Seller, as the sole shareholder of the Bank, shall  approve the Bank Merger Agreement, and (iii) Seller shall cause the Bank Merger Agreement to  be duly executed by the Bank and delivered to Purchaser, (b) (i) Purchaser shall cause the  Purchaser Bank to approve the Bank Merger Agreement, (ii) Purchaser, as the sole shareholder  of the Purchaser Bank, shall approve the Bank Merger Agreement, and (iii) Purchaser shall cause  the Purchaser Bank to duly execute and deliver the Bank Merger Agreement to Seller, and (c)  Seller shall cause the Bank, and Purchaser shall cause the Purchaser Bank, to execute such  certificates or articles of merger and such other documents and certificates as are necessary to  effectuate the Bank Merger.    Section 2.9 Lock-up Agreement.  During the period commencing on the  Closing Date and ending on the date that is six (6) months following the Closing Date  (the “Lock-up Period”), Seller and its Affiliates shall not, directly or indirectly, offer, sell,  contract to sell, transfer (by operation of law or otherwise), pledge, grant any option to purchase,  make any short sale or otherwise dispose of any shares of Purchaser Common Stock (or interest  therein, through hedging or other derivative transaction or otherwise) received as part of the  Stock Consideration (including any securities subsequently received in a stock dividend, stock  split, recapitalization, recombination or other similar transaction in respect of such Stock  Consideration).  ARTICLE 3  REPRESENTATIONS AND WARRANTIES OF SELLERS  Except as set forth in the disclosure schedule delivered to Purchaser by the Sellers  concurrently with the execution and delivery of this Agreement (the “Sellers’ Disclosure  Schedule”) (it being agreed that (i) no such item is required to be set forth as an exception to a  representation or warranty if its absence would not result in the related representation or  warranty being deemed untrue or incorrect, (ii) the mere inclusion of an item in the Sellers’  Disclosure Schedule as an exception to a representation or warranty shall not be deemed an  admission by Sellers that such item represents a material exception or fact, event or circumstance  or that such item would reasonably be expected to have a Material Adverse Effect, and (iii) any  disclosure of any item in any section or subsection of the Sellers’ Disclosure Schedule shall be  deemed disclosure with respect to any other section specifically referenced or cross-referenced or  any other section or subsection to which the relevance of such item is reasonably apparent on the  face of the disclosure (notwithstanding the absence of a specific cross-reference)), the Sellers  hereby represent and warrant to Purchaser, as of the date hereof (or as of such other date as may  be expressly provided in any representation or warranty) and as of the Closing Date, as follows:  Section 3.1 Organization, Standing and Authority.  

 

  -28-    (a) Each of Seller Holdco, Seller and the Bank is duly organized, validly  existing and in good standing under the Laws of its jurisdiction of organization.  Seller has made  an effective election to be treated as a financial holding company under the BHC Act.  The Bank  has all corporate (or similar) power and authority to own, lease and operate its properties and to  carry on its business as now conducted.  The Bank is duly qualified to do business and, where  such concept is recognized under applicable law, is in good standing in each jurisdiction where  the character of the property owned or leased by it or the nature of its activities makes such  qualification necessary, except where failure to be so qualified would not, individually or in the  aggregate, reasonably be expected to have a Material Adverse Effect.  The Bank is the only  subsidiary (within the meaning of the BHC Act) of Seller that is a U.S. depository institution,  and the deposit accounts of the Bank are insured by the FDIC through the Deposit Insurance  Fund to the fullest extent permitted by law, and all premiums and assessments required to be  paid in connection therewith have been paid when due, and no proceedings for the termination of  such insurance are pending or threatened.  The Bank has, and at all times during the past three  (3) years has had, a Community Reinvestment Act rating no lower than “Satisfactory.”  (b) Section 3.1(a) of the Sellers’ Disclosure Schedule contains a complete and  accurate list of all the Transferred Subsidiaries, and such Transferred Subsidiaries’ jurisdiction of  organization.  Except as would not, individually or in the aggregate, reasonably be expected to be  have a Material Adverse Effect, each Transferred Subsidiary (i) has been duly organized, is  validly existing and, where such concept is recognized under applicable law, is in good standing  under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority to  own, lease and operate its properties and to carry on its business as now conducted, and (iii) is  duly qualified to do business and, where such concept is recognized under applicable law, is in  good standing in each jurisdiction where the character of the property owned or leased by it or  the nature of its activities makes such qualification necessary.  (c) Complete and accurate copies of the Constituent Documents of the Bank  and the Transferred Subsidiaries, each as in effect as of the date of this Agreement, have been  made available to Purchaser.  Section 3.2 Capital Structure.  (a) The authorized capital stock of the Bank consists of 45,000,000 shares of  common stock, par value $15 per share (the “Common Stock”), of which 40,305,115 shares are  issued and outstanding and none are held in treasury as of the date of this Agreement.  All the  issued and outstanding shares of Common Stock have been duly authorized and are validly  issued, fully paid and non-assessable.  There are no outstanding or authorized Rights that would  require the Bank to issue, sell or otherwise cause to become outstanding any of its Common  Stock, or to make a cash payment based on the value of any of its Common Stock.  The Bank  does not have any commitment to authorize, issue or sell any shares of Common Stock or other  equity interests, and there are no shares of Common Stock authorized or reserved for issuance.   None of the Bank’s issued and outstanding shares of Common Stock have been issued in  violation of any preemptive rights.  No bonds, debentures, notes or other indebtedness having the  right to vote on any matters on which the holders of Common Stock may vote have been issued  by the Bank and are outstanding.  As of the date hereof, other than its ownership interests in the  equity securities of the Transferred Subsidiaries, the Excluded Subsidiaries and the Persons set  

 

  -29-    forth on Section 3.2(a) of the Sellers’ Disclosure Schedule, the Bank does not directly or  indirectly “own” or “control” (as such terms are used within the meaning of the BHC Act and its  implementing regulations) any equity securities of any other Person.  (b) Seller has good and marketable title to all the Shares, free and clear of any  and all Liens (other than restrictions on transfer which arise under applicable Securities Laws).   Seller is not a party to any shareholders’ agreement, voting trust, proxy or other agreement or  understanding with respect to the voting of any capital stock of the Bank.  At the Closing, no  restrictions applicable to the payment of dividends or other distributions by the Bank shall exist,  except pursuant to corporate or banking laws of and regulations of general applicability.  Section 3.3 Subsidiary Equity Holdings.  Section 3.3 of the Sellers’ Disclosure  Schedule contains a complete and accurate list of the type and number of authorized and  outstanding equity interests of each of the Transferred Subsidiaries (the “Subsidiary Shares”).   The Bank owns beneficially and of record all Subsidiary Shares and has good and marketable  title to the Subsidiary Shares, free and clear of any and all Liens (other than restrictions on  transfer which arise under applicable Securities Laws).  There are no outstanding or authorized  Rights that would require any of the Transferred Subsidiaries to issue, sell or otherwise cause to  become outstanding any of its equity interests, or to make a cash payment based on the value of  any of its equity interests.  None of the Transferred Subsidiaries has any commitment to  authorize, issue or sell any equity interests, and there are no shares of capital stock of the  Transferred Subsidiaries authorized or reserved for issuance.  None of the Transferred  Subsidiaries’ issued and outstanding equity interests has been issued in violation of any  preemptive rights.  No bonds, debentures, notes or other indebtedness having the right to vote on  any matters on which the holders of equity interests may vote have been issued by any of the  Transferred Subsidiaries and are outstanding.  Section 3.4 Corporate Authorization and Binding Effect.  The execution,  delivery and performance by Sellers of this Agreement have been duly and validly authorized by  all necessary corporate action of Sellers prior to the date of this Agreement, and the execution,  delivery and performance by Sellers (or any of their Affiliates that may be a party to any  Transaction Document) of the Transaction Documents other than this Agreement will be duly  and validly authorized by all necessary corporate action of Sellers (and, if applicable, any such  Affiliate) prior to their respective execution, delivery and performance thereof.  This Agreement  is a valid and legally binding obligation of Sellers, and the other Transaction Documents to  which Sellers (and, if applicable, any such Affiliate) will be a party at Closing will be duly  executed and delivered by Sellers (and, if applicable, any such Affiliate), and assuming due  authorization, execution, and delivery of the Transaction Documents by the other parties thereto,  at Closing will constitute legal, valid and binding agreements of Sellers (and, if applicable, any  such Affiliate), enforceable against such Sellers (and, if applicable, any such Affiliate) in  accordance with their respective terms (except as enforceability may be limited by applicable  bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar Laws of  general applicability relating to or affecting creditors’ rights or by general equity principles  (the “Bankruptcy and Equity Exception”)).  Section 3.5 Regulatory Filings; No Defaults.  

 

  -30-    (a) No consents or approvals of, or filings or registrations with, any  Governmental Authority or other third party are required to be made or obtained by Sellers, the  Bank or any of the Transferred Subsidiaries in connection with the execution, delivery or  performance by Sellers (or any of their Affiliates that may be a party to any Transaction  Document) of the Transaction Documents to which they are a party, or to effect the Transactions,  except for (i) the filing of the applications, filings or notices to or with the Governmental  Authorities listed in Schedule 3, as applicable to the Sellers or the Bank, and approval of or non- objection to such applications, filings and notices; (ii) the Third Party Consents listed in Section  3.5(a) of the Sellers’ Disclosure Schedule; (iii) applications, filings or notices pursuant to the  securities or blue sky laws of the various states with respect to the Stock Sale; and (iv) such other  non-Governmental Authority third party consents, approvals, filings or registrations the failure of  which to be obtained would not, individually or in the aggregate, reasonably be expected to have  a Material Adverse Effect.  (b) Subject to the receipt of the approvals and consents referred to in  Schedule 3, and the Third Party Consents listed in Section 3.5(a) of the Sellers’ Disclosure  Schedule, the execution, delivery and performance by each of Sellers of the Transaction  Documents to which it is a party and the consummation by it of the Transactions do not (i)  conflict with, contravene, constitute a violation or breach of or default under or give rise to (or  give rise after the giving of notice, the passage of time or both) a right of termination,  cancellation, payment of any penalty or other amount, or acceleration of any obligation of such  party or to a loss of any benefits to which such party is entitled under any provision of (A) Seller  Holdco’s, Seller’s, the Bank’s, or any of the Transferred Subsidiaries’ Constituent Documents;  (B) assuming compliance with the requirements referred to in Section 3.5(a), any applicable Law  binding upon Sellers, the Bank, or any of the Transferred Subsidiaries, other than violations that  would not, individually or in the aggregate, reasonably be expected to have a Material Adverse  Effect, or (C) assuming compliance with the requirements referred to in Section 3.5(a), any  Material Contract to which the Bank or any Transferred Subsidiary is a party or any license,  franchise, permit or similar authorization held by Seller Holdco, Seller, the Bank or any of the  Transferred Subsidiaries, in each case other than violations, breaches, defaults, rights or loss  which would not, individually or in the aggregate, reasonably be expected to have a Material  Adverse Effect; or (ii) result in the creation or imposition of any Lien on any assets of the Bank  or any Transferred Subsidiary, other than any Lien that would not, individually or in the  aggregate, reasonably be expected to have a Material Adverse Effect.  (c) As of the date hereof, Sellers have no knowledge of any reason, with  respect to themselves, that the Requisite Regulatory Approvals will not be obtained in the  ordinary course and without material delay.  Section 3.6 Financial Statements; No Material Adverse Effect.  (a) Sellers have previously made available to Purchaser all Bank Call Reports  required to be filed by the Bank with respect to the periods ended December 31, 2019,  December 31, 2020, and June 30, 2021 (the financial statements contained in such Bank Call  Reports, collectively, the “Financial Statements”).  The Financial Statements (i) have been  derived from the books and records of the Bank and its Subsidiaries, (ii) have been prepared in  conformity with GAAP and/or requirements under applicable Law (including applicable  

 

  -31-    regulatory accounting principles) applied on a consistent basis (except as may be indicated in the  notes thereto) and (iii) fairly present in all material respects the consolidated financial position of  the Bank and its Subsidiaries, as of the dates thereof, and their respective results of operations  and cash flows for the periods then ended (except as may be indicated in the notes thereto and  are subject to normal year-end audit adjustments). The carveout financial statements made  available in Section 1.3 of the Dataroom (i) have been derived from the books and records of the  Bank and the Transferred Subsidiaries, (ii) have been prepared in conformity with requirements  under applicable Law (including applicable regulatory accounting principles) applied on a  consistent basis (except as may be indicated in the notes thereto) and (iii) fairly present in all  material respects the consolidated financial position of the Bank and the Transferred Subsidiaries  (after giving effect to the Excluded Assets and Liabilities Transfer), as of the dates thereof, and  their respective results of operations for the periods then ended (except as may be indicated in  the notes thereto and are subject to normal year-end audit adjustments). The balance sheet as of  June 30, 2021 contained in such carveout financial statements does not include any Excluded  Assets and Liabilities and reflects all assets and liabilities of the Bank and the Transferred  Subsidiaries (after giving effect to the Excluded Assets and Liabilities Transfer) required to be  set forth on such balance sheet.  (b) Except (i) as reflected or reserved against in the Financial Statements (or  disclosed in the notes thereto, if applicable), as adjusted to reflect the Excluded Assets and  Liabilities Transfer, (ii) for Permitted Liens, (iii) for liabilities incurred in the ordinary course of  business since June 30, 2021, or (iv) for liabilities that would not, individually or in the  aggregate, reasonably be expected to have a Material Adverse Effect, there are no liabilities of  the Bank and the Transferred Subsidiaries of any sort whatsoever of a character required under  GAAP and/or requirements under applicable Law (including applicable regulatory accounting  principles) to be reflected or reserved against on a consolidated balance sheet or disclosed in the  notes to a consolidated balance sheet of the Bank prepared in accordance with GAAP and/or  requirements under applicable Law (including applicable regulatory accounting principles).  (c) The Bank and its Subsidiaries have been subject to since January 1, 2019,  and continue to be subject to, a system of internal controls over financial reporting (as defined in  Rule 13a-15 under the Exchange Act) established and maintained by Seller.  Such internal  controls are designed to provide reasonable assurance regarding the reliability of the Seller’s  financial reporting and the preparation of the Seller’s consolidated financial statements for  external purposes in accordance with GAAP.  Seller has disclosed, based on its most recent  evaluation of its internal accounting controls by its chief executive officer and chief financial  officer prior to the date hereof, to Seller’s auditors and audit committee (i) all significant  deficiencies and material weaknesses in the design or operation of internal controls which would  adversely affect the ability of the Bank or the Transferred Subsidiaries to record, process,  summarize and report financial information for inclusion in the applicable combined financial  statements and (ii) any fraud, whether or not material, that involves management or other  employees who have a significant role in Seller’s internal controls over financial reporting  relating to the Bank or the Transferred Subsidiaries.  Since January 1, 2019, to the Knowledge of  Sellers, no material complaints from any source regarding accounting, internal accounting  controls or auditing matters have been received by Sellers or the Bank and no material written  complaints from employees of Sellers or the Bank regarding questionable accounting or auditing  

 

  -32-    matters relating to the Bank and the Transferred Subsidiaries have been received by Sellers or  the Bank.  (d) The allowances for loan losses and for credit losses contained in the  Financial Statements were and will be established in accordance with the practices and  experiences of the Bank and the Transferred Subsidiaries, and were and will be adequate under  and in accordance with the requirements of GAAP and/or requirements under applicable Law  (including applicable regulatory accounting principles) to provide for possible losses on loans  (including accrued interest receivable) and credit commitments (including stand-by letters of  credit) outstanding as of the date of such balance sheet.  The Bank adopted and fully  implemented CECL effective as of January 1, 2020, other than for regulatory capital purposes.  (e) Since June 30, 2021, no event, occurrence or development has occurred or  circumstance arisen that, individually or in the aggregate, would reasonably be expected to have  a Material Adverse Effect.  (f) Since June 30, 2021 through the date hereof, except with respect to the  Transactions or changes resulting from or related to the Contagion Event or the Contagion Event  Measures, the business of the Bank and the Transferred Subsidiaries was conducted, in all  material respects, in the ordinary course of business.  Section 3.7 Material Contracts.  (a) Section 3.7(a) of the Sellers’ Disclosure Schedule contains, as of the date  of this Agreement, a list of each of the following types of Contracts (other than (A) any Benefit  Plan, and (B) any Contract that is included in the Excluded Assets and Liabilities) to which Bank  or any Transferred Subsidiary is a party (each, a “Material Contract”):  (i) any lease of real property that provides for annual payments of  $3,000,000 or more by the Bank or the Transferred Subsidiaries and that is not terminable  without material payment by the Bank or the Transferred Subsidiaries upon notice of 180  days or less;  (ii) any material partnership or joint venture Contract with any third  party, in each case other than in connection with low-income housing tax credit  investments in the ordinary course of business;  (iii) any Contract relating to the acquisition or disposition of any  business or operations (whether by merger, sale of stock, sale of assets or otherwise)  under which the Bank or any Transferred Subsidiary has or may have a material  obligation or liability, in each case other than sales of portfolios of loans and mortgages  in the ordinary course of business;  (iv) (A) any Contract for the borrowing of money or the deferred  purchase price of property (in either case, whether incurred, assumed, guaranteed or  secured by any asset) or (B) any Contract by which the Bank or any Transferred  Subsidiary lends money or provides guarantees, in the case of each of clauses (A) and  (B), (x) in the principal amount of $10,000,000 or more, (y) other than Related Party  

 

  -33-    Contracts, and (z) other than in the ordinary course of business (it being understood and  agreed that “in the ordinary course of business” for purposes of this clause (iii) shall  include the creation of deposit liabilities, issuances of letters of credit, purchases of  federal funds, borrowings from any Federal Home Loan Bank, sales of certificates of  deposit, issuances of commercial papers, entry into repurchase agreements and  satisfaction of legal requirements in the exercise of trust powers, in each case, in the  ordinary course of business);  (v) other than (A) leases of real property, (B) Extensions of Credit or  (C) Derivative Contracts (in the case of each of clauses (A), (B) and (C), entered into in  the ordinary course of business), any Contract that creates future payment obligations on  the Bank and the Transferred Subsidiaries in excess of $15,000,000 per annum and which  by its terms does not terminate or is not terminable without penalty upon notice of  180 days or less;  (vi) any Contract providing for the sale by the Bank or any Transferred  Subsidiary of goods or services (other than any Extension of Credit, provision of credit  services or other arrangements in the ordinary course of business) providing for payments  to the Bank or such Transferred Subsidiary in excess of $15,000,000 per annum;  (vii) any Contract pursuant to which the Bank or any Transferred  Subsidiary (x) grants either directly or through Sellers or another Affiliate any license or  covenant not to sue under any material Intellectual Property owned by the Bank or any  Transferred Subsidiary to an unaffiliated third party, or (y) receives either directly or  through Sellers or another Affiliate any license or covenant not to sue from an  unaffiliated third party under any Intellectual Property that is material to the businesses of  the Bank or any Transferred Subsidiary, excluding, for the purposes of clauses (x) and  (y), (A) any non-exclusive licenses to customers or for software or databases that are  commercially available and (B) any Contract entered into with employees or independent  contractors on Sellers’ or any of their Affiliates’ standard forms that have been made  available to Purchaser;  (viii) any Contract that provides for an increased payment or benefit, or  accelerated vesting, upon the execution of this Agreement or the Closing or in connection  with the Transactions, where such increase of payment or benefit or acceleration of  vesting would, either individually or in the aggregate, reasonably be expected to be  material to the Bank and its Transferred Subsidiaries, taken as a whole;  (ix) (A) any material exclusive dealing Contract, or (B) any Contract  that (x) contains non-competition or non-solicitation covenants that materially limit the  freedom of the Bank or its Affiliates (including, after the Closing, the Purchaser and its  Subsidiaries) to compete in any line of business or with any Person or in any area or  operate at any location, or (y) purports to materially limit or restrict the ability of the  Bank or its Affiliates (including, after the Closing, the Purchaser and its Subsidiaries) to  solicit clients or employees or any category of Persons, other than non-solicit  arrangements in the ordinary course of business;  

 

  -34-    (x) any Related Party Contract;   (xi) any Collective Bargaining Agreement; and  (xii) any Contract that grants any right of first refusal, right of first offer  or similar right with respect to any material assets, rights or property of the Bank and the  Transferred Subsidiaries, taken as a whole.  (b) Each of the Material Contracts is valid and binding on the Bank or the  Transferred Subsidiaries, as the case may be and, to the Knowledge of the Sellers, each other  party thereto, and is in full force and effect, except for failures to be valid and binding or in full  force and effect as would not, individually or in the aggregate, reasonably be expected to have a  Material Adverse Effect.  There is no default under any such Contracts by the Bank or the  Transferred Subsidiaries and, to the Knowledge of Sellers, no event has occurred that with the  lapse of time or the giving of notice or both would constitute a default thereunder by the Bank or  the Transferred Subsidiaries, in each case except as would not, individually or in the aggregate,  reasonably be expected to be material to the Bank and the Transferred Subsidiaries, taken as a  whole.  Sellers have made available to Purchaser a true, correct and complete copy of each  Material Contract.  Section 3.8 Property.  (a) Section 3.8(a) of the Sellers’ Disclosure Schedule contains a complete and  accurate list of all real property owned, leased or licensed by the Bank or any Transferred  Subsidiary, or otherwise occupied by any of them, as of the date hereof.  (b) Except in any such case as would not, individually or in the aggregate,  reasonably be expected to have a Material Adverse Effect, the Bank and the Transferred  Subsidiaries, as applicable, (i) have good and marketable fee title to all real property owned by  them (other than “other real estate owned”) free and clear of all Liens, except Permitted Liens,  and have a legal, valid and enforceable leasehold interest in all real property leased or licensed  by them (such owned and leased real property, the “Real Property”), (ii) there are no outstanding  options, rights of first offer or refusal or other pre-emptive rights or purchase rights with respect  to any such Real Property, and (iii) there has been no rent deferred under any lease of Real  Property due to the COVID-19 pandemic or otherwise that is currently unpaid or outstanding.  (c) Other than (a) properties for which the Bank or any Transferred  Subsidiary is landlord or sublessor or (b) properties the Bank or any Transferred Subsidiary owns  as satisfaction on a debt previously contracted, to the Knowledge of Sellers, there are no Persons  in possession of any portion of any of the real property owned or leased by the Bank or any  Transferred Subsidiary, and no Person other than the Bank or a Transferred Subsidiary has the  right to use or occupy for any purpose any portion of any of the real property owned or leased by  the Bank or a Transferred Subsidiary, except, in any such case, as would not, individually or in  the aggregate, reasonably be expected to have a Material Adverse Effect.  Section 3.9 Compliance with Laws.  

 

  -35-    (a) Except as has not had, and would not, individually or in the aggregate, be  reasonably be expected to have, a Material Adverse Effect, each of the Bank and the Transferred  Subsidiaries:  (i) has all permits, licenses, authorizations, orders and approvals of,  and has made all filings, applications and registrations with, all Governmental Authorities  that are required in order to permit it to own or lease its properties and to conduct its  businesses as conducted as of the date of this Agreement (collectively, “Permits”) and all  such Permits are in full force and effect and are current and no suspension or cancellation  of any of them is, to the Knowledge of Sellers, threatened;  (ii) is and has been since January 1, 2019, in compliance with all Laws  applicable to the conduct of its businesses and the ownership and use of its assets and no  event has occurred or circumstance exists that (with or without notice or lapse of time)  has resulted or would reasonably be expected to result in a violation of any AML Laws,  Anticorruption Laws or Sanctions, the False Claims Act (31 U.S.C. 3729 et seq.) or other  applicable Laws;  (iii) is not and has not been since January 1, 2019, a party to or  otherwise subject to any consent decree, memorandum of understanding, written  commitment or other supervisory agreement with, or ordered to pay any civil money  penalty by, the OCC, the Federal Reserve or the FDIC or any other Governmental  Authority, and nor has the Bank or any Transferred Subsidiary been advised as of the  date hereof by any such Governmental Authority that it is contemplating issuing or  requesting any of the foregoing, whether related to AML Laws, Anticorruption Laws,  Sanctions or otherwise; and  (iv) since January 1, 2019, has timely filed all reports, registrations and  statements, together with any amendments required to be made with respect thereto, that  were required to be filed under any applicable Law, with any applicable Governmental  Authority (collectively, the “Reports”).  As of their respective dates (and without giving  effect to any amendments or modifications filed after the date of this Agreement with  respect to reports and documents filed before the date of this Agreement), the Reports  complied with the applicable Laws and Government Orders enforced or promulgated by  the Governmental Authority with which they were filed.  (b) As of the date hereof, the Bank is “well-capitalized” (as such term is  defined in the relevant regulation of the Bank’s primary bank regulator).    Section 3.10 Derivative Instruments.  Except as would not, individually or in the  aggregate, reasonably be expected to have a Material Adverse Effect, all swaps, caps, floors,  option agreements, futures and forward contracts and other similar derivative transactions (each,  a “Derivative Contract”), whether entered into for the Bank’s own account, or for the account of  one or more of the Transferred Subsidiaries or their respective customers, were entered into (i) in  accordance with prudent business practices and all applicable laws, rules, regulations and  regulatory policies and (ii) with counterparties believed to be financially responsible at the time;  

 

  -36-    and each Derivative Contract constitutes the valid and legally binding obligation of the Bank or  one of the Transferred Subsidiaries, as the case may be, enforceable in accordance with its terms  (except as enforceability may be limited by the Bankruptcy and Equity Exception), and are in  full force and effect.  Except as would not, individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect, neither the Bank nor any of the Transferred  Subsidiaries, nor to the Knowledge of Sellers, any other party thereto, is in breach of any of its  obligations under any Derivative Contract.  Section 3.11 Litigation.  Except as (i) set forth in Section 3.11 of the Sellers’  Disclosure Schedule or (ii) would not, individually or in the aggregate, reasonably be expected to  be material to the Bank and the Transferred Subsidiaries, taken as a whole, (A) there is no, and  since January 1, 2019, has not been any, Action before any Governmental Authority pending  against the Bank or any Transferred Subsidiary (or Seller or any of its Affiliates, solely to the  extent applicable to the business of the Bank and the Transferred Subsidiaries), and, to the  Knowledge of Sellers, no such Action has been threatened, and (B) to the Knowledge of Sellers,  no such Action has been threatened or commenced that is reasonably likely to impair the ability  of the Sellers or their Affiliates to perform its obligations under the Transaction Documents or  otherwise impede or delay the consummation of the Transactions.  Section 3.12 No Brokers.  Except for any fees that may be due and owing to  Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and BofA Securities Japan Co., Ltd. or any  of their respective Affiliates, which will be paid by Sellers or one of their Affiliates (other than  the Bank or the Transferred Subsidiaries), there is no investment banker, broker, finder or other  intermediary that has been retained by or is authorized to act on behalf of Sellers, the Bank or the  Transferred Subsidiaries who might be entitled to any fee or commission from Sellers, the Bank  or the Transferred Subsidiaries in connection with the Transactions.  Section 3.13 Employee Benefit Plans.  (a) Except as would not reasonably be expected to be material to the Bank  and the Transferred Subsidiaries, taken as a whole, each Benefit Plan has been established,  operated and administered in accordance with its terms and the requirements of all applicable  laws, including ERISA and the Code.  (b) Section 3.13(b) of the Sellers’ Disclosure Schedule sets forth a complete  and accurate list of each material Benefit Plan and each material Seller Benefit Plan.  Sellers  have made available to Purchaser complete and accurate copies of each material Benefit Plan (or,  in the case of any Benefit Plan that is unwritten or Seller Benefit Plan, a description thereof) and  the following related documents, to the extent applicable: (i) all summary plan descriptions,  amendments, modifications or material supplements, (ii) the most recent annual report (Form  5500) filed with the IRS, (iii) the most recently received IRS determination letter, (iv) the most  recently prepared actuarial report or financial statement and (v) all material filings and non- routine correspondence with a Governmental Authority since January 1, 2020.  (c) The IRS has issued a favorable determination letter or opinion with  respect to each Benefit Plan that is intended to be qualified under Section 401(a) of the Code  (the “Bank Qualified Plans”) and the related trust, which letter or opinion has not been revoked  

 

  -37-    (nor has revocation been threatened), and, to the Knowledge of Sellers, there are no existing  circumstances and no events have occurred that would adversely affect the qualified status of any  Bank Qualified Plan or the related trust.  (d) None of the Bank and the Transferred Subsidiaries nor any Bank ERISA  Affiliate has, at any time during the last six (6) years, contributed to or been obligated to  contribute to (i) a Multiemployer Plan or (ii) a plan that has two (2) or more contributing  sponsors at least two (2) of whom are not under common control, within the meaning of Section  4063 of ERISA (a “Multiple Employer Plan”), and none of the Bank and the Transferred  Subsidiaries nor any Bank ERISA Affiliate has incurred or would incur any liability that has not  been satisfied in full to a Multiemployer Plan or Multiple Employer Plan as a result of a  complete or partial withdrawal (as those terms are defined in Part I of Subtitle E of Title IV of  ERISA) from a Multiemployer Plan or Multiple Employer Plan.    (e) Except as would not reasonably be expected to be material to the Bank  and the Transferred Subsidiaries, taken as a whole, with respect to each Benefit Plan that is  subject to Section 302 or Title IV of ERISA or Section 412, 430 or 4971 of the Code:  (i) the  minimum funding standard under Section 302 of ERISA and Sections 412 and 430 of the Code  has been satisfied and no waiver of any minimum funding standard or any extension of any  amortization period has been requested or granted, (ii) no such plan is in “at-risk” status for  purposes of Section 430 of the Code, (iii) the present value of accrued benefits under such  Benefit Plan, based upon the actuarial assumptions used for funding purposes in the most recent  actuarial report prepared by such Benefit Plan’s actuary with respect to such Benefit Plan, did  not, as of its latest valuation date, exceed the then current fair market value of the assets of such  Benefit Plan allocable to such accrued benefits, (iv) no reportable event within the meaning of  Section 4043(c) of ERISA for which the 30-day notice requirement has not been waived has  occurred, (v) all premiums to the Pension Benefit Guaranty Corporation (the “PBGC”) have been  timely paid in full, (vi) no liability (other than for premiums to the PBGC) under Title IV of  ERISA has been or would be expected to be incurred by the Bank or any Transferred Subsidiary,  and (vii) the PBGC has not instituted proceedings to terminate any such Benefit Plan.  (f) Except as would not reasonably be expected to be material to the Bank  and the Transferred Subsidiaries, taken as a whole, no Benefit Plan provides for any post- employment or post-retirement health or medical or life insurance benefits for retired, former or  current employees or beneficiaries or dependents thereof, except as required by Section 4980B of  the Code.  (g) Except as would not reasonably be expected to be material to the Bank  and the Transferred Subsidiaries, taken as a whole, all contributions required to be made to any  Benefit Plan by applicable law or by any plan document or other contractual undertaking, and all  premiums due or payable with respect to insurance policies funding any Benefit Plan, have been  timely made or paid in full or, to the extent not required to be made or paid on or before the date  hereof, have been fully reflected on the books and records of the Bank.  (h) Except as set forth in Section 3.13(h) of the Sellers’ Disclosure Schedule,  there are no pending or threatened claims (other than claims for benefits in the ordinary course),  lawsuits or arbitrations which have been asserted or instituted, against the Benefit Plans, any  

 

  -38-    fiduciaries thereof with respect to their duties to the Benefit Plans or the assets of any of the  trusts under any of the Benefit Plans that would result in any liability of the Bank or any  Transferred Subsidiary in an amount that would reasonably be expected to be material to the  Bank and the Transferred Subsidiaries, taken as a whole.  (i) Neither the execution and delivery of this Agreement nor the  consummation of Transactions will (either alone or in conjunction with any other event): (i)  result in any payment or benefit becoming due to any Business Employee, (ii) increase any  payments or benefits payable to any Business Employee under any Benefit Plan or otherwise  result in the acceleration of vesting, exercisability, funding or delivery of, or increase in the  amount or value of such payments or benefits, or (iii) result in any limitation on the right of the  Bank or any Transferred Subsidiary or, after the Closing, Purchaser or its Affiliates, to amend,  merge, terminate, transfer or receive a reversion of assets from any Benefit Plan or related trust  on or after the Effective Time.  Without limiting the generality of the foregoing, no amount paid  or payable (whether in cash, in property, or in the form of benefits) by the Bank or any  Transferred Subsidiary in connection with the Transactions (either solely as a result thereof or as  a result of such Transactions in conjunction with any other event) will be an “excess parachute  payment” within the meaning of Section 280G of the Code.  (j) No Benefit Plan provides for the gross-up or reimbursement of Taxes  under Section 409A or 4999 of the Code, or otherwise.  (k) No Benefit Plan is maintained for the benefit of any employees or other  services providers of the Bank or any Transferred Subsidiary who primarily reside or work  outside of the United States.  Section 3.14 Labor Matters.  (a) Except as would not, either individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect, there are no pending or, to the Knowledge of  Sellers, threatened labor grievances or unfair labor practice claims or charges against the Bank or  any Transferred Subsidiary, or any strikes or other labor disputes against the Bank or any  Transferred Subsidiary.  Neither the Bank nor any Transferred Subsidiary is party to or bound by  any collective bargaining or similar agreement with any union, or other labor organization, or  work rules or practices agreed to with any union, labor organization or employee association  (“Collective Bargaining Agreement”) applicable to the Business Employees or which otherwise  may create any obligation or liability for or be binding upon Purchaser or any of its Affiliates  (including the Bank and the Transferred Subsidiaries, after the Closing), and there are no  pending or, to the Knowledge of Sellers, threatened organizing efforts by any union or other  group seeking to represent any current or former Business Employees.  (b) The Bank and the Transferred Subsidiaries are and have been in  compliance in all respects with all applicable Laws in effect as of the date hereof respecting  employment and employment practices, terms and conditions of employment, the termination of  employment, collective bargaining, employee and independent contractor classification,  disability, immigration, health and safety, wages, hours and benefits, the provision of meal and  rest breaks, non-discrimination in employment, the prevention or harassment and retaliation, and  

 

  -39-    workers’ compensation, except in each case as would not reasonably be expected to be material  to the Bank and the Transferred Subsidiaries, taken as a whole.  (c) Since January 1, 2019, (i) no allegations of sexual harassment or other  sexual misconduct have been made against (A) an executive officer of the Bank or any  Transferred Subsidiary, (B) a member of the board of directors of the Bank or any Transferred  Subsidiary, or (C) an employee of the Bank or any Transferred Subsidiary with the title of  Managing Director or above, (ii) there have been no Actions pending or, to the Knowledge of  Sellers, threatened related to any allegations of sexual harassment or other sexual misconduct by  (A) an executive officer of the Bank or any Transferred Subsidiary, (B) a member of the board of  directors of the Bank or any Transferred Subsidiary, or (C) an employee of the Bank or any  Transferred Subsidiary with the title of Managing Director or above, and (iii) neither the Bank  nor any Transferred Subsidiary has entered into any settlement agreements related to allegations  of sexual harassment or other sexual misconduct by (A) an executive officer of the Bank or any  Transferred Subsidiary, (B) a member of the board of directors of the Bank or any Transferred  Subsidiary, or (C) an employee of the Bank or any Transferred Subsidiary with the title of  Managing Director or above, except in each case, as would not reasonably be expected to be  material to the Bank or the Transferred Subsidiaries, taken as a whole.  (d) Except as would not, either individually or in the aggregate, reasonably be  expected to be material to the Bank and the Transferred Subsidiaries, taken as a whole, neither  the Bank nor any Transferred Subsidiary has taken any action that would reasonably be expected  to cause Purchaser and its Affiliates (including the Bank and the Transferred Subsidiaries, in  each case following the Closing) to have any liability or other obligation following the Closing  Date under WARN.   Section 3.15 Taxes.  Except as would not reasonably be expected to be material  to the Bank and the Transferred Subsidiaries, taken as a whole:  (a) (i) All Tax Returns related to the Bank and the Transferred Subsidiaries  that are required to be filed have been timely filed or will be timely filed on or before the Closing  Date, taking into account any applicable extensions, and all such Tax Returns are or will be true,  correct and complete, (ii) all Taxes required to be paid with respect to the Bank and the  Transferred Subsidiaries (whether or not shown on any Tax Return) have been timely paid in  full, and (iii) all deficiencies asserted in writing or assessments made in writing by the relevant  Taxing Authority in connection with any of the Tax Returns referred to in clause (i) have been or  will be (x) timely paid in full or (y) contested in good faith.  (b) The Bank and the Transferred Subsidiaries have complied with all  applicable information reporting, collection, deducting and withholding requirements with  respect to Taxes and, to the extent required by applicable Law, any collected, deducted or  withheld Taxes have been paid to the relevant Taxing Authority.  (c) Other than Permitted Liens, there are no Liens on the Bank’s or any  Transferred Subsidiaries’ assets that arose in connection with any failure (or alleged failure) to  pay any Tax.  

 

  -40-    (d) No jurisdiction in which the Bank or any Transferred Subsidiary does not  file a Tax Return has asserted in writing a claim that (i) the Bank or any Transferred Subsidiary  may be subject to taxation by it and (ii) Taxes related to the Bank or any Transferred Subsidiary  are due or that Tax Returns of such type in such jurisdiction related to the Bank or any  Transferred Subsidiary are required to be filed.   (e) No closing agreements, private letter rulings, technical advice memoranda  or similar agreements or rulings have been entered into with or issued by any Taxing Authority  with respect to the Bank or the Transferred Subsidiaries that would bind the Bank in any taxable  period (or portion thereof) after the Closing. Neither the Bank nor any Transferred Subsidiaries  have executed any power of attorney with respect to Tax that remains in effect.  (f) During the time owned, directly or indirectly, neither the Bank nor any  Transferred Subsidiary (i) has been a member of an affiliated, consolidated, combined, unitary or  similar Tax group for purposes of filing any Tax Return, other than, for purposes of filing  consolidated U.S. federal income tax returns, a group of which either Seller or the Bank or such  Transferred Subsidiary was the common parent, (ii) is a party to or has any obligation under any  Tax sharing, Tax indemnification, or Tax allocation agreement or similar contract or  arrangement, other than any such agreement that only includes the Seller and its Affiliates or any  such agreement the primary purpose of which was unrelated to tax, or (iii) has any liability for  Taxes of any Person (other than the Bank or any Transferred Subsidiary) under Treasury  Regulations Section 1.1502-6 (or any similar provision of state, local or foreign law), as a  transferee or successor, by contract or otherwise, other than a group which only includes the  Seller and its Affiliates.  (g) Neither the Bank nor any Transferred Subsidiary will be required to  include any item of income in, or exclude any item of deduction from, taxable income for any  taxable period (or portion thereof) beginning after the Closing Date, as a result of (i) any change  in accounting method made before the Closing under Section 481(c) of the Code (or any similar  provision of state, local or foreign Law), (ii) “closing agreement” described in Section 7121 of  the Code (or any similar provision of state, local or foreign Law) entered into prior to the  Closing, (iii) installment sale or open transaction disposition or intercompany transaction made  on or prior to the Closing, (iv) prepaid amount received on or prior to the Closing, (v) any  intercompany transactions or any excess loss account described in Treasury Regulations under  Section 1502 of the Code (or any corresponding or similar provision of state or local Law)  existing on or prior to the Closing, or (vi) the deferral of any Tax obligations pursuant to the  Coronavirus Aid, Relief, and Economic Security Act or similar statutory relief, in each case, as a  result of any action or transaction occurring prior to the Closing.  (h) Neither the Bank nor any Transferred Subsidiary has constituted either a  “distributing corporation” or a “controlled corporation” (within the meaning of Section  355(a)(1)(A) of the Code) in a distribution of stock qualifying for tax-free treatment under  Section 355 of the Code within the three-year period immediately preceding the date of this  Agreement.  

 

  -41-    (i) Neither the Bank nor any Transferred Subsidiary has participated in any  “listed transaction” within the meaning of Section 6707A(c)(2) of the Code and Treasury  Regulations Section 1.6011-4(b)(2).  (j) There are no pending or threatened in writing audits, suits, claims,  assessments, examinations, investigations, or other proceedings in respect of Taxes of the Bank  or any Transferred Subsidiary.  (k) No Transferred Subsidiary of the Bank is characterized as a “foreign”  corporation for U.S. federal income tax purposes.  Neither the Bank nor any Transferred  Subsidiary has in effect an election pursuant to Section 965(h) of the Code.  (l) Neither the Bank nor any Transferred Subsidiary has deferred any payroll  or employment Taxes, or claimed any benefit or relief pursuant to the CARES Act.  (m) This Section 3.15 (together with the applicable provisions of Section 3.13)  contains the sole and exclusive representations made by the Bank and the Transferred  Subsidiaries relating to Taxes and Tax Returns regarding the Bank and the Transferred  Subsidiaries.  Section 3.16 Insurance.  The Bank and the Transferred Subsidiaries are insured  against such risks and in such amounts as are adequate and as the management of the Bank  reasonably has determined to be prudent in accordance with reasonable market practices.  Except  as disclosed in Section 3.16 of the Sellers’ Disclosure Schedule, each such material insurance  policy is in the name of the Bank and/or one of the Transferred Subsidiaries and is in full force  and effect, all premiums due and payable thereon have been paid, and none of the Bank or any  Transferred Subsidiary has received written notice to the effect that any of them is in material  default under any such insurance policy, and all claims thereunder have been filed in a timely  fashion.  There is no material claim pending under any of such policies with respect to the Bank  or any Transferred Subsidiary as to which coverage has been denied or disputed by the  underwriters of such policies.  Section 3.17 Intellectual Property.  (a) Section 3.17(a) of Sellers’ Disclosure Schedule sets forth a complete and  accurate list of all Intellectual Property owned by the Bank or any Transferred Subsidiary that is  Registered, indicating, for each item, as applicable, the registration or application number and  the applicable filing jurisdiction.  The Bank or one of the Transferred Subsidiaries is the sole and  exclusive owner of such Registered Intellectual Property, free and clear of all Liens (other than  Permitted Liens), and all rights in such Registered Intellectual Property are subsisting and  unexpired, and to the Knowledge of Sellers, valid and enforceable.   (b) (i) The operation of the businesses of the Bank and the Transferred  Subsidiaries as currently conducted do not infringe or misappropriate the Intellectual Property of  any third party, (ii) no Person has asserted in a writing received by Sellers or their Affiliates, the  Bank or any of the Transferred Subsidiaries since January 1, 2019, that the Bank or any  Transferred Subsidiary has infringed or misappropriated the Intellectual Property of any third  party and; (iii) to the Knowledge of Sellers, since January 1, 2019, no third party has infringed or  

 

  -42-    misappropriated any Intellectual Property owned by the Bank or the Transferred Subsidiaries, in  each case (i) through (iii), except as would not, individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect.  (c) Sellers and their Affiliates have taken commercially reasonable measures  to protect the confidentiality of all material trade secrets that are included in the Intellectual  Property owned by the Bank or the Transferred Subsidiaries, and, to the Knowledge of Sellers,  such trade secrets have not been disclosed by the Bank or any Transferred Subsidiary to any  Person except pursuant to appropriate nondisclosure agreements.  (d) Except as would not, individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect, (i) the Bank and the Transferred Subsidiaries own or  have a license or other right to use all Intellectual Property that is used in their respective  businesses; and (ii) no material proprietary software of the Bank or the Transferred Subsidiaries  (x) has had any material source code placed in escrow for the benefit of a third party or (y) that  incorporates or is derived from software licensed under any “open source” license that requires  the licensing or availability of source code upon its distribution or availability to a third party,  has been distributed or made available to a third party (other than vendors and contractors  providing services on behalf of the Bank or the Transferred Subsidiaries).  (e) Notwithstanding anything to the contrary set forth herein, this Section 3.17  contains all representations and warranties provided by Sellers with respect to matters related to  Intellectual Property, except for applicable portions of Section 3.7(a)(vii) and Section 3.11).  Section 3.18 Privacy and Cybersecurity.  (a) Except as would not, individually or in the aggregate, reasonably be  expected to be material to the Bank and the Transferred Subsidiaries, taken as a whole, (i) the  Bank and the Transferred Subsidiaries are in compliance with all applicable Privacy Laws, the  Payment Card Industry Data Security Standard and with all public-facing privacy policies that  cover the Bank and the Transferred Subsidiaries; (ii)  since January 1, 2019, there has been no  unauthorized access, use, modification, disclosure or other misuse of the Personal Information or  other information in respect of customers (including borrowers, depositors, clients and  counterparties) of the Bank and the Transferred Subsidiaries in the possession or under the  control of the Bank or the Transferred Subsidiaries, or other Persons performing services on  behalf of the Bank or the Transferred Subsidiaries (with respect to the business of the Bank and  the Transferred Subsidiaries), in each case, other than incidents that were resolved without cost,  liability or the duty to notify any Person.  (b) Except as would not, individually or in the aggregate, reasonably be  expected to be material to the Bank and the Transferred Subsidiaries, taken as a whole, (i) the  Bank and the Transferred Subsidiaries own or have a license, service agreement or other right to  use all IT Assets that are used in their respective businesses, (ii) the Bank and the Transferred  Subsidiaries have implemented commercially reasonable IT Asset and data security, relevant  data backup and business continuity procedures with respect to all IT Assets used in the  businesses of the Bank and the Transferred Subsidiaries (and all information, including Personal  Information, processed thereby), (iii) the IT Assets owned or controlled by the Bank or the  

 

  -43-    Transferred Subsidiaries are in good working order and operate and perform in accordance with  their applicable specifications and as required in connection with the operation of the business of  the Bank and the Transferred Subsidiaries as currently conducted, (iv) such IT Assets are free of  defects, vulnerabilities, viruses, malware and other corruptants and (v) since January 1, 2019,  there has been no material unauthorized use, access, interruption, modification or corruption of  the IT Assets used by the Bank or the Transferred Subsidiaries (or any information or  transactions stored or contained therein or transmitted thereby, including any information in  respect of customers (including borrowers, depositors, clients and counterparties) of the Bank  and the Transferred Subsidiaries).  Section 3.19 Extensions of Credit.  (a) Except as would not, individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect, each loan, revolving credit facility, letter of credit or  other extension of credit (including guarantees) or commitment to extend credit (each, an  “Extension of Credit”) in which the Bank or any Transferred Subsidiary is a creditor (i) complies  with all applicable Laws, (ii) has been made, entered into or acquired by the Bank or any  Transferred Subsidiary in accordance with board of director-approved loan policies, management  policies and procedures or customary industry standards, as applicable, (iii) is evidenced by  original promissory notes or other evidences of indebtedness, which, together with all security  agreements and guarantees, are valid and legally binding obligations of the Bank or one of the  Transferred Subsidiaries and the counterparty or counterparties thereto, are enforceable in  accordance with their terms (except as enforcement may be limited by the Bankruptcy and  Equity Exception) and (iv) is in full force and effect.  (b) Section 3.19(b) of Sellers’ Disclosure Schedule sets forth a complete and  accurate list of all Extensions of Credit that, as of June 30, 2021, were classified by the Bank as  “Special Mention,” “Substandard,” “Doubtful,” “Loss,” “Classified,” “Criticized,” “Watch” or  words of similar import.  Complete and accurate copies of the currently effective lending policies  and practices of the Bank and the Transferred Subsidiaries have been made available to the  Purchaser.  (c) Except as would not, individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect, (i) each outstanding Extension of Credit in which  the Bank or any Transferred Subsidiary is a creditor has been solicited and originated and is  administered and, if serviced by the Bank, serviced, and the relevant files are being maintained,  in accordance with the relevant loan documents, the Bank’s or, if applicable, the Transferred  Subsidiaries’, underwriting standards and with all requirements of applicable Laws (including  those of the Small Business Administration) and applicable requirements of any government- sponsored enterprise program; and (ii) each of the Bank and the Transferred Subsidiaries has  properly fulfilled its contractual responsibilities and duties in any Extension of Credit in which it  acts as the lead lender or servicer and has complied with its duties as required under applicable  Law.  (d) The Sellers have previously delivered to the Purchaser spreadsheets  containing information regarding certain categories of loans made by the Bank and the  Transferred Subsidiaries as of June 30, 2021 (the “Loan Data File”) and the information  

 

  -44-    contained in the Loan Data File was complete and accurate in all material respects as of such  date.  (e) Except as would not reasonably be expected to be material to the Bank  and the Transferred Subsidiaries, taken as a whole, since January 1, 2020 through the date  hereof, there has been (i) no written demand made to the Bank or the Transferred Subsidiaries  for the repurchase of any Extensions of Credit due to the alleged breach of any representation,  warranty or covenant with respect to such Extensions of Credit or due to alleged fraud relating  thereto, or (ii) other than on account of an obligor’s insolvency or claimed insolvency, no claim  by an obligor of any Extension of Credit asserting that the obligor is entitled to damages  associated with the conduct of the Bank or any Transferred Subsidiary in connection with such  Extension of Credit; provided, that in each case of clauses (i) and (ii), such Extension of Credit  shall not include Excluded Assets and Liabilities.  Section 3.20 Certain Loan Matters.  (a) Section 3.20(a) of the Sellers’ Disclosure Schedule contains a complete  and accurate list of all Extensions of Credit as of June 30, 2021, by the Bank and the Transferred  Subsidiaries to any directors, executive officers and principal shareholders (as such terms are  defined in Regulation O of the Federal Reserve (12 C.F.R. Part 215)) of the Bank or any  Transferred Subsidiary, and each such Extension of Credit is and was made in compliance in all  material respects with all applicable Laws.  (b) Except as disclosed in Section 3.20(b) of the Sellers’ Disclosure Schedule,  there are no Extensions of Credit by the Bank or any Transferred Subsidiary to any employee,  officer, director or other Affiliate of the Bank or any Transferred Subsidiary on which the  borrower is paying a rate other than that reflected in the note or the relevant credit agreement or  on that the borrower is paying a rate that was below market at the time the Extensions of Credit  were made.  Section 3.21 Trust and Other Fiduciary Businesses.  The Bank has all requisite  power and authority to exercise fiduciary powers under applicable Law necessary to conduct its  business.  Since January 1, 2019, each of the Bank and the Transferred Subsidiaries has properly  administered in all material respects all accounts for which it acts as a fiduciary, including  accounts for which it serves as trustee, agent, custodian, personal representative, guardian,  conservator or investment advisor, in accordance with the terms of the governing documents and  applicable Laws.  Except as would not, individually or in the aggregate, reasonably be expected  to be material to the Bank and the Transferred Subsidiaries, taken as a whole, neither the Bank  nor any Transferred Subsidiary nor, to the Knowledge of Sellers, any of their current or former  directors, officers or employees, has committed any breach of trust or fiduciary duty with respect  to any such fiduciary account.  Section 3.22 Compliance with Environmental Laws.  (a) Except as would not, individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect, since January 1, 2019, the Bank and the Transferred  Subsidiaries have been in compliance with all applicable Environmental Laws.  

 

  -45-    (b) There is no Action pending or, to the Knowledge of the Sellers,  threatened, in which the Bank or any Transferred Subsidiary has been or, with respect to  threatened Actions would reasonably be expected to be, named as a defendant or which seek to  impose, or would reasonably be expected to result in the imposition, on the Bank or any  Transferred Subsidiary any liabilities or obligations in each case (i) for alleged material  noncompliance with any Environmental Law or (ii) relating to any material Release into the  environment of any Hazardous Substance, occurring at or on a site owned, leased or operated by  the Bank or any Transferred Subsidiary, or, to the Knowledge of the Sellers, relating to any  material Release into the environment of any Hazardous Substance, occurring at or on a site not  owned, leased or operated by the Bank or any Transferred Subsidiary, and, to Seller’s  Knowledge, there is no reasonable basis for, or circumstances that are reasonably likely to give  rise to, any such proceeding, investigation or remediation by any Governmental Authority or  other Person.  (c) To the Knowledge of Sellers, there has not been any material Release of  any Hazardous Substance by the Bank or any Transferred Subsidiary at any location, or any  material Release of any Hazardous Substance by any Person in, on, under or affecting any  property currently or formerly owned, leased or operated by the Bank or any Transferred  Subsidiary that requires remediation by the Bank or any Transferred Subsidiary or otherwise  would reasonably be expected to result in the imposition on the Bank or any Transferred  Subsidiary (or any of their respective assets or properties) of any material liability or obligation  under any Environmental Law.  (d) Neither the Bank nor any Transferred Subsidiary (i) is a party to any  Government Order imposing any material liability or obligation under any Environmental Law  or (ii) since January 1, 2019, has received any written notice, demand letter, executive or  administrative order, directive or request for information from any Governmental Authority or  any third party indicating that it may be in violation of, or liable under, any Environmental Law.  Section 3.23 Use of Assets.  Taking into account (a) the services contemplated  by the Transitional Services Agreement, (b) any actions (or the effects of any action) taken (or  omitted to be taken) upon the written request or instruction of, or with the written consent of,  Purchaser or one of its Affiliates, and (c) any actions otherwise expressly required by this  Agreement and other Transaction Documents, and subject to obtaining any Third Party Consents,  immediately after the consummation of the Transactions, the Bank and the Transferred  Subsidiaries will own or have the right to use, all assets, liabilities, rights and properties  sufficient to conduct their respective businesses (other than any businesses that currently are or  will be included in the Excluded Assets and Liabilities), in all material respects in the same  manner and on the same terms as currently conducted by the Bank and the Transferred  Subsidiaries; provided, however, that nothing in this Section 3.23 shall be deemed to constitute a  representation or warranty as to the adequacy of amounts of cash or working capital of the Bank  and the Transferred Subsidiaries (or the availability of the same) or the adequacy of employees  of the Bank and the Transferred Subsidiaries (or the availability of the same). None of the Sellers  or their Affiliates (other than the Bank and the Transferred Subsidiaries) owns any material  assets, liabilities, rights and properties necessary for the conduct of the Bank or the Transferred  Subsidiaries in their respective businesses as currently conducted.  

 

  -46-    Section 3.24 Escheat and Unclaimed Property. Except as would not reasonably  be expected to be material to the Bank and the Transferred Subsidiaries, taken as a whole, neither  the Bank nor any Transferred Subsidiary has any outstanding obligation in respect of escheat or  unclaimed property Laws.  Section 3.25 No Other Representations or Warranties.  (a) Except for the representations and warranties contained in this Agreement  (including any certificate or other instrument delivered in connection therewith), neither Sellers  nor any other Person makes any other express or implied representation or warranty on behalf of  Sellers relating to Sellers, the Bank or their respective Affiliates, and Purchaser acknowledges  the same.  (b) PURCHASER ACKNOWLEDGES AND AGREES THAT, EXCEPT IN  THE CASE OF FRAUD, SELLERS, THE BANK AND THEIR AFFILIATES WILL NOT  HAVE OR BE SUBJECT TO ANY LIABILITY OR OBLIGATION TO PURCHASER OR  ANY OF ITS AFFILIATES OR ANY OTHER PERSON RESULTING FROM THE MAKING  AVAILABLE OR FAILING TO MAKE AVAILABLE TO PURCHASER OR ANY OF ITS  AFFILIATES, OR ANY USE BY PURCHASER OR ANY OF ITS AFFILIATES OF, ANY  INFORMATION, INCLUDING ANY INFORMATION, DOCUMENTS, PROJECTIONS,  FORECASTS OR OTHER MATERIAL MADE AVAILABLE TO PURCHASER OR ANY OF  ITS AFFILIATES IN CERTAIN “DATAROOMS” OR MANAGEMENT PRESENTATIONS  IN EXPECTATION OF THE TRANSACTIONS, EXCEPT TO THE EXTENT ANY SUCH  INFORMATION IS INCLUDED IN A REPRESENTATION AND WARRANTY  CONTAINED IN THIS AGREEMENT (INCLUDING ANY CERTIFICATES OR OTHER  INSTRUMENTS DELIVERED IN CONNECTION THEREWITH).  ARTICLE 4  REPRESENTATIONS AND WARRANTIES OF PURCHASER  Except as set forth in the Purchaser SEC Reports filed with or furnished to the  SEC by Purchaser after December 31, 2018 and prior to the date hereof, the Purchaser hereby  represents and warrants to Sellers, as of the date hereof (or as of such other date as may be  expressly provided in any representation or warranty) and as of the Closing Date, as follows:  Section 4.1 Organization, Standing and Authority.  (a) Purchaser is duly organized, validly existing and in good standing under  the Laws of its jurisdiction of organization.  Purchaser has made an effective election to be  treated as a financial holding company under the BHC Act.  Purchaser has all corporate power  and authority to own, lease and operate its properties and to carry on its business as now  conducted and is duly qualified to do business and, where such concept is recognized under  applicable law, is in good standing in each jurisdiction where the character of the property owned  or leased by it or the nature of its activities makes such qualification necessary, except where  failure to be so qualified would not, individually or in the aggregate, reasonably be expected to  have a Purchaser Material Adverse Effect.  

 

  -47-    (b) Except as would not, individually or in the aggregate, reasonably be  expected to have a Purchaser Material Adverse Effect, Purchaser Bank (i) has been duly  organized, is validly existing and, where such concept is recognized under applicable law, is in  good standing under the laws of the jurisdiction of its organization, (ii) has all requisite power  and authority to own, lease and operate its properties and to carry on its business as now  conducted, and (iii) is duly qualified to do business and, where such concept is recognized under  applicable law, is in good standing in each jurisdiction where the character of the property owned  or leased by it or the nature of its activities makes such qualification necessary.  The Purchaser  Bank is the only subsidiary (within the meaning of the BHC Act) of the Purchaser that is a U.S.  insured depository institution, and the deposit accounts of the Purchaser Bank are insured by the  FDIC through the Deposit Insurance Fund to the fullest extent permitted by law, and all  premiums and assessments required to be paid in connection therewith have been paid when due,  and no proceedings for the termination of such insurance are pending or threatened.  The  Purchaser Bank has, and at all times during the past three (3) years has had, a Community  Reinvestment Act rating no lower than “Satisfactory.”  (c) Complete and accurate copies of the Constituent Documents of Purchaser,  each as in effect as of the date of this Agreement, have been made available to Sellers.  Section 4.2 Capital Structure.  The authorized capital stock of Purchaser  consists of (i) 4,000,000,000 shares of common stock, par value $0.01 per share (the “Purchaser  Common Stock”), of which 1,482,648,646 shares were issued and outstanding and 643,077,096  were held in treasury as of September 16, 2021, and (ii) 50,000,000 shares of preferred stock, par  value $1.00 per share (the “Purchaser Preferred Stock,” and, together with the Purchaser  Common Stock, the “Purchaser Capital Stock”), of which 239,510 shares were issued and  outstanding and none were held in treasury as of September 16, 2021. All the issued and  outstanding shares of Purchaser Capital Stock have been duly authorized and are validly issued,  fully paid and non-assessable.  All the issued and outstanding shares of Purchaser Common  Stock representing the Stock Consideration, upon their due issuance and delivery as  contemplated by this Agreement, will be validly issued, fully paid and non-assessable.  As of  September 16, 2021, except pursuant to the U.S. Bancorp 2001 Stock Incentive Plan, the U.S.  Bancorp Amended and Restated 2007 Stock Incentive Plan, the U.S. Bancorp 2015 Stock  Incentive Plan, the U.S. Bancorp Executive Employees Deferred Compensation Plan, the U.S.  Bank Executive Employees Deferred Compensation Plan (2005 Statement), the U.S. Bancorp  Outside Directors Deferred Compensation Plan, and the U.S. Bank Outside Directors Deferred  Compensation Plan (2005 Statement) (x) there are no outstanding or authorized Rights that  would require Purchaser to issue, sell or otherwise cause to become outstanding any of its  Purchaser Capital Stock, or to make a cash payment based on the value of any of its Purchaser  Capital Stock, and (y) Purchaser does not have any commitment to authorize, issue or sell any  shares of Purchaser Capital Stock or other equity interests.  As of September 16, 2021,  37,023,437 shares of Purchaser Common Stock were reserved for issuance.  None of Purchaser’s  issued and outstanding shares of Purchaser Capital Stock have been issued in violation of any  preemptive rights.  No bonds, debentures, notes or other indebtedness having the right to vote on  any matters on which the holders of Purchaser Capital Stock may vote have been issued by  Purchaser and are outstanding.  

 

  -48-    Section 4.3 Corporate Authorization and Binding Effect.  The execution,  delivery and performance by Purchaser (or any of its Affiliates that may be a party to any  Transaction Document) of the Transaction Documents and the Transactions have been duly and  validly authorized by all necessary corporate action of Purchaser (and, if applicable, any such  Affiliate) prior to the date of this Agreement.  This Agreement is a valid and legally binding  obligation of Purchaser, and the other Transaction Documents to which Purchaser (and, if  applicable, any such Affiliate) will be a party at Closing will be duly executed and delivered by  Purchaser (and, if applicable, any such Affiliate), and assuming due authorization, execution, and  delivery of the Transaction Documents by the other parties thereto, at Closing will constitute,  legal, valid and binding agreements of Purchaser (and, if applicable, any such Affiliate),  enforceable against Purchaser (and, if applicable, any such Affiliate) in accordance with their  respective terms (except as enforceability may be limited by the Bankruptcy and Equity  Exception).  Section 4.4 Regulatory Filings; No Defaults.  (a) No consents or approvals of, or filings or registrations with, any  Governmental Authority or other third party are required to be made or obtained by the  Purchaser or any of its Affiliates in connection with the execution, delivery or performance by  Purchaser (or any of its Affiliates that may be a party to any Transaction Document) of the  Transaction Documents to which they are a party, or to effect the Transactions, except for (i) the  filing of the applications, filings or notices to or with the Governmental Authorities listed in  Schedule 3, as applicable to the Purchaser or its Affiliates, and approval of or non-objection to  such applications, filings and notices; and (ii) such other consents, approvals, filings or  registrations the failure of which to be obtained would not, individually or in the aggregate,  reasonably be expected to have a Purchaser Material Adverse Effect.  (b) Subject to the receipt of the approvals and consents referred to in  Schedule 3, the execution, delivery and performance by Purchaser of the Transaction Documents  to which it is a party and the consummation by it of the Transactions do not conflict with,  contravene, constitute a violation or breach of or default under or give rise to (or give rise after  the giving of notice, the passage of time or both) a right of termination, cancellation or  acceleration of any obligation of Purchaser or to a loss of any benefits to which Purchaser is  entitled under any provision of (i) Purchaser’s Constituent Documents or (ii) assuming  compliance with the requirements referred to in Section 4.4(a), any applicable Law binding upon  Purchaser or any of its Subsidiaries, other than violations which would not, individually or in the  aggregate, reasonably be expected to have a Purchaser Material Adverse Effect.  (c) As of the date hereof, Purchaser has no knowledge of any reason, with  respect to itself, that the Requisite Regulatory Approvals will not be obtained in the ordinary  course and without material delay.  Section 4.5 Purchaser SEC Reports; Financial Statements; No Material  Adverse Effect.  (a) Purchaser has filed or furnished, as applicable, on a timely basis, all  Purchaser SEC Reports required to be filed or furnished by it with the SEC pursuant to the  

 

  -49-    Exchange Act or the Securities Act since January 1, 2019 (the audited financial statements  contained (or incorporated by reference) in such Purchaser SEC Reports for the fiscal years  ended December 31, 2019 and December 31, 2020, and the unaudited financial statements  contained (or incorporated by reference) in such Purchaser SEC Reports for the six (6)-month  period ended June 30, 2021, collectively, the “Purchaser Financial Statements”).  Each of the  Purchaser SEC Reports, at the time of its filing or being furnished complied or, if not yet filed or  furnished, will comply in all material respects with the applicable requirements of the Securities  Act and the Exchange Act, and any rules and regulations promulgated thereunder applicable to  the Purchaser SEC Reports.  As of their respective dates (or, if amended prior to the date of this  Agreement, as of the date of such amendment), the Purchaser SEC Reports did not, and any  Purchaser SEC Reports filed with or furnished to the SEC subsequent to the date of this  Agreement will not, contain any untrue statement of a material fact or omit to state a material  fact required to be stated therein or necessary to make the statements made therein, in light of the  circumstances in which they were made, not misleading.  (b) The Purchaser Financial Statements (i) have been derived from the books  and records of Purchaser and its Subsidiaries, (ii) have been prepared in conformity with GAAP  applied on a consistent basis (except as may be indicated in the notes thereto) and (iii) fairly  present in all material respects the consolidated financial position of Purchaser, as of the dates  thereof and their respective results of operations and cash flows for the periods then ended  (except that the unaudited statements may not contain footnotes and are subject to normal year- end audit adjustments).  (c) Except (i) as reflected or reserved against in the Purchaser Financial  Statements (or disclosed in the notes thereto, if applicable), (ii) for Permitted Liens, (iii) for  liabilities incurred in the ordinary course of business since June 30, 2021, or (iv) for liabilities  that would not, individually or in the aggregate, reasonably be expected to have a Purchaser  Material Adverse Effect, there are no liabilities of Purchaser of a character required under GAAP  to be reflected or reserved against on a balance sheet or disclosed in the notes to an audited  consolidated balance sheet of Purchaser prepared in accordance with GAAP.  (d) Purchaser and its Subsidiaries have established and maintained since  January 1, 2019, and continue to maintain, a system of internal controls over financial reporting  (as defined in Rule 13a-15 under the Exchange Act).  Such internal controls are designed to  provide reasonable assurance regarding the reliability of Purchaser’s financial reporting and the  preparation of Purchaser’s consolidated financial statements for external purposes in accordance  with GAAP.  Purchaser has disclosed, based on its most recent evaluation of its internal  accounting controls by its chief executive officer and chief financial officer prior to the date  hereof, to Purchaser’s auditors and audit committee (i) all significant deficiencies and material  weaknesses in the design or operation of internal controls which would adversely affect  Purchaser’s ability to record, process, summarize and report financial information for inclusion  in the applicable combined financial statements and (ii) any fraud, whether or not material, that  involves management or other employees who have a significant role in Purchaser’s internal  controls over financial reporting.  Since January 1, 2019, to the knowledge of Purchaser, no  material complaints from any source regarding accounting, internal accounting controls or  auditing matters have been received by Purchaser and no material written complaints from  

 

  -50-    Purchaser employees regarding questionable accounting or auditing matters have been received  by Purchaser.  (e) The allowances for loan losses and for credit losses contained in the  Purchaser Financial Statements were and will be established in accordance with the practices and  experiences of Purchaser and its Subsidiaries, and were and will be adequate under and in  accordance with the requirements of GAAP, and the applicable Governmental Authorities to  provide for possible losses on loans (including accrued interest receivable) and credit  commitments (including stand-by letters of credit) outstanding as of the date of such balance  sheet.  Purchaser adopted and fully implemented CECL effective as of January 1, 2020, other  than for regulatory capital purposes.  (f) Since June 30, 2021, no event, occurrence or development has occurred or  circumstance arisen that, individually or in the aggregate, would reasonably be expected to have  a Purchaser Material Adverse Effect.  (g) Since June 30, 2021, except with respect to the Transactions or changes  resulting from or related to the Contagion Event or the Contagion Event Measures, through the  date hereof, the business of Purchaser and its Subsidiaries was conducted, in all material  respects, in the ordinary course of business.  Section 4.6 Compliance with Laws.  (a) As of the date hereof, Purchaser is compliant in all material respects with  all Laws applicable to the conduct of its businesses that could reasonably be expected to prevent  or materially delay receipt of the Requisite Regulatory Approvals.  (b) As of the date hereof, the Purchaser Bank is “well-capitalized” (as such  term is defined in the relevant regulation of the Bank’s primary bank regulator).  Section 4.7 Litigation.  Except as (i) disclosed in the Purchaser SEC Reports,  and (ii) would not, individually or in the aggregate, reasonably be expected to have a Purchaser  Material Adverse Effect, (A) there is no, and since January 1, 2020, has not been any, Action  before any Governmental Authority against Purchaser or its Affiliates, and, to Purchaser’s  knowledge, no such Action has been threatened, and (B) to Purchaser’s knowledge, no such  Action has been threatened or commenced, that is reasonably likely to impair the ability of  Purchaser to perform its obligations under the Transaction Documents or otherwise impede or  delay the consummation of Transactions.  Section 4.8 No Brokers.  Except for any fees which may be due and owing to  Goldman Sachs & Co. LLC, which will be paid by Purchaser, there is no investment banker,  broker, finder or other intermediary that has been retained by or is authorized to act on behalf of  Purchaser or its Affiliates who might be entitled to any fee or commission from Purchaser or its  Affiliates in connection with the Transactions.  Section 4.9 Availability of Funds.  As of the date of this Agreement, Purchaser  has sufficient funds, and will at the Closing have immediately available funds in cash, to pay  when due all amounts payable by it hereunder.  Purchaser acknowledges that the obligations of  

 

  -51-    Purchaser under this Agreement are not contingent upon or subject to any conditions regarding  Purchaser’s, its Affiliates’ or any other Person’s ability to obtain financing for the consummation  of the transaction contemplated by this Agreement.  Section 4.10 Investment.  Purchaser is acquiring the Shares for its own account  as an investment without the present intent to sell, transfer or otherwise distribute the same to  any other Person.  Purchaser has made, independently and without reliance on Sellers (except to  the extent that Purchaser has relied on the representations and warranties of Sellers in this  Agreement), its own analysis of the Shares for the purpose of acquiring the Shares.  Purchaser  acknowledges that the Shares are not registered pursuant to any Securities Laws and that none of  the Shares may be transferred, except pursuant to a registration statement or an applicable  exemption under the Securities Act.  Purchaser is an “accredited investor” as defined under Rule  501 promulgated under the Securities Act.  Section 4.11 Offering of Securities.  Neither Purchaser nor any Person acting on  its behalf has taken any action (including any offering of any securities of Purchaser under  circumstances which would require the integration of such offering with the issuance of shares of  Purchaser Common Stock pursuant to this Agreement under the Securities Act) that could  reasonably subject the offering, issuance or sale of any of the shares of Purchaser Common Stock  to Sellers pursuant to this Agreement to the registration requirements of the Securities Act.  Section 4.12 No Other Representations or Warranties.  Except for the  representations and warranties contained in this Agreement (including any certificate or other  instrument delivered in connection therewith), neither Purchaser nor any other Person makes any  other express or implied representation or warranty on behalf of Purchaser relating to Purchaser  or its Affiliates, and Sellers acknowledge the same.  ARTICLE 5  COVENANTS  Section 5.1 Access and Reports.  (a) To the extent permitted by applicable Law and as may be reasonable in  light of Contagion Event Measures, from the date hereof until the earlier of the Closing Date or  the termination of this Agreement, Sellers shall, and shall cause their Affiliates to, provide to  Purchaser and to Purchaser’s Representatives reasonable access upon reasonable prior notice and  request, during the Bank’s normal business hours, to the officers, employees, properties, books,  contracts and records of the Bank and the Transferred Subsidiaries.  Purchaser shall, and shall  cause its Representatives to, conduct its inspections and investigations under this Section 5.1 in a  manner that will not unreasonably interfere with the conduct of the business of Seller and its  Affiliates (including the Bank or the Transferred Subsidiaries).  Notwithstanding the foregoing,  none of the Sellers, the Bank or any of the Transferred Subsidiaries shall be required to disclose  any information where disclosure (A) would reasonably be expected to result in the loss of any  legal privilege or contravene any Law (including those related to confidential supervisory  information), (B) would reasonably be expected to result in the disclosure of any trade secrets or  competitively sensitive information of Seller or its Affiliates or of a third party to whom Seller  and its Affiliates have confidentiality obligations or (C) would reasonably be expected to result  

 

  -52-    in Purchaser gaining access to any information relating to the Excluded Assets and Liabilities  (other than expressly contemplated by the Transaction Documents); provided that the parties  shall use commercially reasonable efforts to make other arrangements (including redacting  information or making substitute disclosure arrangements) that would enable such access or  furnishing of information to Purchaser to occur without contravening any of the foregoing  clauses (A), (B) and (C).  All information received pursuant to this Section 5.1 shall be governed  by the terms of Section 5.5.  (b) Following the Closing, to the extent permitted by applicable Law, Sellers  may retain copies of books and records of the Bank and the Transferred Subsidiaries and, with  respect to any books and records for which Sellers do not retain copies, the Purchaser agrees to  provide (or cause its Affiliates to provide) the Sellers with reasonable access to such books and  records and other documents that the Purchaser acquires pursuant to this Agreement and, to the  extent permitted by applicable Law and as may be reasonable in light of Contagion Event  Measures, reasonable access upon reasonable prior notice and request, during normal business  hours, to its assets, properties and employees, in each case, to the extent that such access is  reasonably required by Sellers or any of their Affiliates to (x) defend, prosecute, appeal or  cooperate with any judicial, arbitral or regulatory proceeding, audit or investigation to which  Sellers or any of their Affiliates is a party and which relates to the Bank or any Transferred  Subsidiary or otherwise to the business and affairs thereof prior to the Closing, (y) prepare  financial statements or regulatory filings of Sellers in respect of periods ending on or prior to the  Closing Date, or (z) comply with the terms of this Agreement, any other Transaction Document,  any applicable Law or request of any Governmental Authority; provided that all books, records,  information and materials of the Bank and the Transferred Subsidiaries, including customer lists  (collectively, and together with any reports, analyses, compilations, memoranda, notes and any  other writings that contain, reflect or are based upon such information, “Confidential  Information”), shall be subject to the confidentiality provisions of Section 5.5 and no  Confidential Information may be made available to Sellers’ Representatives or to any of Sellers’  Affiliates or their respective Representatives unless such Person agrees to maintain the  confidentiality of the Confidential Information pursuant to Section 5.5 (and, in any event, Sellers  shall be liable for any failure of such Affiliates or Representatives to act in accordance with  Section 5.5); provided, further, that neither the Purchaser nor any of its Affiliates shall be  required to provide such access to the extent that doing so (A) would reasonably be expected to  result in the loss of any legal privilege, contravene any Law or fiduciary obligations (including  those related to confidential supervisory information), or (B) would reasonably be expected to  result in the disclosure of any trade secrets or competitively sensitive information of Purchaser or  its Affiliates or of a third party to whom Purchaser or its Affiliates have confidentiality  obligations; provided that the parties shall use commercially reasonable efforts to make other  arrangements (including redacting information or making substitute disclosure arrangements)  that would enable such access or furnishing of information to the Sellers to occur without  contravening such privilege or applicable Law.  The Purchaser agrees to (or to cause its relevant  Affiliates (including the Bank after the Closing) to) retain and preserve all books and records and  all other documents that it or they acquire pursuant to this Agreement, in compliance with all  applicable Law.  (c) At or prior to the Closing, to the extent that any books and records of the  Bank and the Transferred Subsidiaries are in the possession of Sellers or any of their Affiliates  

 

  -53-    (other than the Bank and the Transferred Subsidiaries) and not also in the possession of the Bank  or the Transferred Subsidiaries, Sellers shall, and shall cause their Affiliates to, use reasonable  best efforts to effect the physical and/or electronic transfer of such books and records to the Bank  (in each case, at Sellers’ cost and expense); provided that if any such books and records are not  transferred to the Bank on or prior to the Closing, Sellers and their Affiliates shall continue to  use reasonable best efforts to transfer such books and records to the Bank following the Closing;  and provided, further, that to the extent any such books and records contain material regarding  the Excluded Assets and Liabilities or does not pertain or relate to the assets, liabilities,  properties, business, conduct, personnel and/or operations of the Bank or the Transferred  Subsidiaries, such material may be redacted from such books and records.  Section 5.2 Conduct of the Business.  (a) Except as (i) set forth in Section 5.2(a) of the Sellers’ Disclosure Schedule  or (ii) as is necessary and commercially reasonable in response to a Contagion Event or  Contagion Event Measures, subject to Sellers providing Purchaser with advance notice and  obtaining Purchaser’s prior written consent in respect of any such action (unless it is not  reasonably practicable under the circumstances to provide such prior notice and obtain prior  consent, in which case Sellers shall provide notice to Purchaser as soon as reasonably  practicable), from the date hereof until the earlier of the Closing Date or the termination of this  Agreement, the Sellers shall cause the Bank and the Transferred Subsidiaries to (1) carry on their  businesses in the ordinary course of business in all material respects; (2) use commercially  reasonable efforts to preserve their present business organizations and relationships; and (3) use  commercially reasonable efforts to preserve the rights, franchises, goodwill and relations of their  customers, clients and others with whom business relationships exist; provided, that this Section  5.2(a) shall not apply to the Excluded Assets and Liabilities.  (b) Except as set forth in Section 5.2(b) of the Sellers’ Disclosure Schedule or  to the extent required to effect the Excluded Assets and Liabilities Transfer, from the date hereof  until the earlier of the Closing Date or the termination of this Agreement, except as (A)  otherwise expressly required by this Agreement, (B) consented to in writing in advance by  Purchaser (which consent shall not be unreasonably conditioned, withheld or delayed), or (C)  required by applicable Law, Sellers shall cause the Bank and the Transferred Subsidiaries not to:  (i) amend the Bank’s or any Transferred Subsidiaries’ Constituent  Documents or permit any waiver or grant any consent under their respective Constituent  Documents;  (ii) (A) merge or consolidate with any other Person, (B) acquire  (including by merger, consolidation, or acquisition of stock or assets) any interest in any  other Person or any division thereof or any assets, securities or property, other than  (x) acquisitions of securities under the Bank’s or an applicable Transferred Subsidiary’s  investment portfolio consistent with the Bank’s or an applicable Transferred Subsidiary’s  investment policy in effect as of the date hereof, (y) as may be deemed necessary or  advisable by it in the exercise of its rights in connection with an Extension of Credit, or  (z) acquisitions in the ordinary course of business, or (C) adopt a plan of complete or  partial liquidation, dissolution, recapitalization, restructuring or other reorganization;  

 

  -54-    (iii) issue, transfer, award, grant or otherwise permit to become  outstanding, or dispose of or encumber or pledge, or authorize or propose the creation of,  any additional Shares or Rights or any additional shares of capital stock of the Bank, or  any Transferred Subsidiary, or any Rights relating to the same, or for which the Bank or  any Transferred Subsidiary would have any liability;   (iv) (A) directly or indirectly adjust, split, combine or reclassify,  subdivide or otherwise amend the terms of, purchase or otherwise acquire, any shares of  its stock or debt securities or any Rights related to the same, (B) declare or pay any  noncash dividend or make any other noncash distribution in respect of any of the Bank’s  capital stock, or (C) declare or pay any cash dividend or make any other cash distribution  in respect of any of the Bank’s capital stock after the Estimated Closing Balance Sheet  Date (other than the Special Dividend Transaction);  (v) pay, discharge, settle or compromise any Action or threatened  Action, other than any payment, discharge, settlement or compromise in the ordinary  course of business that (A) does not create negative precedent for other pending or  potential proceedings, actions or claims, (B) does not involve monetary damages or other  settlement that would exceed $5,000,000 individually or $20,000,000 in the aggregate in  excess of reserves as they existed on June 30, 2021, (C) does not involve injunctive relief  or any other non-monetary relief (other than other non-monetary relief in the ordinary  course of business), or (D) relates to the Excluded Assets and Liabilities;  (vi) (A) make any new Extension of Credit (x) in an amount in excess  of $50,000,000 to a single borrower or group of related borrowers, (y) where the  borrower’s senior funded debt to EBITDA ratio is more than 5.0 or the loan to value ratio  is in excess of supervisory limits, in each case as computed by the Bank in the ordinary  course of business, and (z) where the borrower’s interest coverage ratio, as computed by  the Bank in the ordinary course of business, is less than 1.1 or (B) make any renewed  Extension of Credit that is classified as “special mention” or “criticized” or words of  similar imports by the Bank in the ordinary course of business (for the avoidance of  doubt, it being understood that the restrictions under this Section 5.2(b)(vi) shall not  apply to any Extension of Credit that currently is or that will be included in the Excluded  Assets and Liabilities); provided that, promptly following the date hereof the parties shall  agree on a process for seeking any approvals required as a result of the foregoing  covenant; provided, further, that, at a minimum such process shall include an obligation  on the part of Purchaser to consent or provide written notice of objection to any such new  or renewed Extension of Credit in writing within two (2) Business Days from the date the  applicable Transferred Subsidiary provides Purchaser with written notice of such new  Extension of Credit together with the related credit approval memo and other materials  used by the applicable Transferred Subsidiary for internal approval purposes (and any  failure to so respond shall be deemed to be consent to the applicable new or renewed  Extension of Credit);   (vii) other than (x) in the ordinary course of business (it being  understood and agreed that “in the ordinary course of business” for purposes of this  clause (vii) shall include the creation of deposit liabilities, issuances of letters of credit,  

 

  -55-    purchases of federal funds, borrowings from any Federal Home Loan Bank, sales of  certificates of deposit, issuances of commercial papers, entry into repurchase agreements  and satisfaction of legal requirements in the exercise of trust powers, in each case, on  terms and in amounts consistent with past practice) or (y) for any Excluded Assets and  Liabilities, (A) subject any material asset of the Bank or of any Transferred Subsidiary to  a Lien or permit, allow or suffer to exist any Lien in respect thereof, other than Permitted  Liens; or (B) incur any liability for borrowed money (or guarantee any indebtedness for  borrowed money), issue any debt securities, assume, guarantee, endorse or otherwise as  an accommodation become responsible for the obligations of any other Person (other than  a Transferred Subsidiary);  (viii) dispose of any material assets (without limiting Section 5.2(b)(xii),  other than Intellectual Property) to any person other than a Transferred Subsidiary,  including existing branches of the Bank, except in the ordinary course of business or  pursuant to Contracts in force as of the date of this Agreement;  (ix) other than as required by the terms of any Benefit Plan existing as  of the date hereof, (A) increase the compensation or benefits of any Business Employee,  other than the payment of incentive compensation for completed performance periods  based upon corporate performance, the performance of such employee and, if applicable,  such employee’s business, in each case determined in accordance with the terms of the  applicable Benefit Plan and in the ordinary course of business consistent with past  practice, (B) enter into any change-in-control, retention, employment, severance,  termination or other similar agreement or arrangement with any Business Employee, or  increase or commit to increase the change-in-control, severance or termination pay or  benefits payable to any Business Employee, (C) pay or award, or commit to pay or  award, any bonuses or incentive compensation to any Business Employee other than  incentive compensation payments contemplated by clause (A) above, (D) enter into,  establish, adopt, terminate or amend any Benefit Plan or any plan, program, arrangement,  practice or agreement that would be a Benefit Plan if it were in existence on the date  hereof, except for de minimis administrative amendments that would not increase the  benefits provided thereunder or the cost thereof to the Bank and the Transferred  Subsidiaries, (E) take any action to amend or waive any performance or vesting criteria  or accelerate vesting, exercisability or funding under any Benefit Plan, with respect to  any Business Employee, (F) hire any Business Employee, other than as permitted under  Section 5.10(e), (G) terminate the employment of any Business Employee with the title  of Managing Director or above, other than for cause or pay any severance, termination  pay or benefits to any employee without obtaining an effective comprehensive general  release of claims against the Bank and the Transferred Subsidiaries, (H) transfer the  employment of any Business Employee to Sellers or any of their Affiliates (other than the  Bank or any Transferred Subsidiary), or transfer the employment of any employee,  officer, director, or natural person independent contractor of Sellers or any of their  Affiliates (other than the Bank or any Transferred Subsidiary) to the Bank or its Affiliates  (other than as permitted under Section 5.10(e)), (I) grant to any Business Employee any  right to reimbursement, indemnification, or payment for any Taxes incurred under  Section 409A or 4999 of the Code, or (J) recognize any union, labor organization or  

 

  -56-    employee association as the representative of any Business Employees, or enter into,  establish or adopt any Collective Bargaining Agreement;  (x) other than the capital expenditures (A) pre-approved by Purchaser  in writing or capital expenditures necessary for safety and soundness purposes or  (B) made with respect to the businesses that currently are or will be included in the  Excluded Assets and Liabilities (to the extent all payment obligations thereunder are  taken into account in the Estimated Closing TBV and Closing TBV), undertake or  authorize any capital expenditures not contemplated by the budget set forth on in Section  5.2(b)(x) of the Sellers’ Disclosure Schedule that are, in the aggregate, in excess of  $30,000,000 per annum;  (xi) change any method of financial accounting or accounting practice  or policy, except as may be required from time to time by GAAP and/or requirements  under applicable Law (including applicable regulatory accounting principles) (without  regard to any optional early adoption date);  (xii) except for non-exclusive license in the ordinary course of business  and expiration of Intellectual Property at the end of its natural term, sell, assign, transfer,  dispose of, abandon, allow to expire or license any material Intellectual Property owned  by the Bank or any Transferred Subsidiary;  (xiii) (A) make, change or revoke any material Tax election, (B) change  any material method of Tax accounting, (C) change any material Taxable year or period,  (D) enter into any material closing agreement with respect to Taxes, (E) file any material  amended Tax Return, (F) settle or compromise any material Tax claim or assessment, or  (G) surrender any material claim for a refund of Taxes, in each case except to the extent  such action (1) solely relates to the Seller’s consolidated, combined, affiliated or unitary  Tax returns and (2) would not reasonably be expected to have the effect of materially  increasing the Tax liability of Purchaser for any period ending after the Closing Date;  (xiv) make application for the opening, relocation or closing of any, or  open, relocate or close any, branch or automated banking facility of the Bank, other than  those pending as of the date of this Agreement and set forth in Section 5.2(b)(xiv) of the  Sellers’ Disclosure Schedule, or permit the revocation or surrender by the Bank or any  Transferred Subsidiary of its certificate of authority to maintain any such facility, except  as may be required by any Governmental Authority;  (xv) enter into any material new line of business or change in any  material respect its lending, underwriting, risk and asset liability management and other  banking, operating, and servicing policies, except (A) as required by applicable Law, (B)  as otherwise may be requested by a Governmental Authority, (C) as necessary for safety  and soundness purposes, or (D) as solely related to the Excluded Assets and Liabilities;  (xvi) except (A) in the ordinary course of business or (B) as solely  related to the Excluded Assets and Liabilities, (x) amend, modify or change any  investment practices of the Bank or any Transferred Subsidiary or (y) make any change  

 

  -57-    in any material respect to the investment portfolio of the Bank or any Transferred  Subsidiary in terms of duration, credit, quality or type of interests, except as required by  applicable Law;  (xvii) except in the ordinary course of business, (A) materially amend,  waive, modify or consent to the termination of any Material Contract, (B) enter into any  Contract that would have been a Material Contract if in effect as of the date hereof, or (C)  enter into any Contract with any Affiliate or engage in any transaction with any Affiliate  (other than solely by and among the Bank and the Transferred Subsidiaries);   (xviii) knowingly take any action (including a business acquisition, sale  or other strategic transaction) that, or fail to take any action if such failure, would  reasonably be expected to prevent, materially impede or materially delay the  consummation of the Transactions, or impair the Sellers’ ability to perform their  obligations under this Agreement or consummate the Transactions;  (xix) make any change that, to the Sellers’ Knowledge, will have an  ongoing material adverse effect on the operation or security of any IT Assets owned or  controlled by the Bank or any Transferred Subsidiary, except as required by applicable  Law;   (xx) knowingly take any action that is intended or reasonably likely to  result in any of the conditions set forth in ARTICLE 6 not being satisfied; or  (xxi) authorize, announce an intention, or enter into any agreement or  commitment with respect to any of the foregoing.  (c) During the period through the Closing Date or earlier termination of this  Agreement, except as (A) otherwise expressly contemplated by the Transaction Documents,  (B) consented to in writing in advance by Seller Holdco (which consent shall not be  unreasonably withheld, conditioned or delayed), or (C) required by applicable Law, Purchaser  shall not, and shall cause its Subsidiaries not to:  (i) amend the Constituent Documents of Purchaser or any Subsidiary  in a manner that would impair Purchaser’s ability to perform its obligations under the  Transaction Documents or consummate the Transactions on a timely basis;  (ii) adjust, split, combine or reclassify any capital stock of Purchaser  or make, declare or pay any extraordinary dividend on any capital stock of Purchaser, in  each case unless the Stock Consideration is equitably adjusted (which may be effected  upon notice by Purchaser to Sellers) to provide Sellers the same economic effect as  contemplated by this Agreement prior to such event;  (iii) knowingly take any action (including a business acquisition, sale  or other strategic transaction) that, or fail to take any action if such failure, would  reasonably be expected to prevent, materially impede or materially delay the  consummation of the Transactions Agreement, or impair Purchaser’s ability to perform  

 

  -58-    its obligations under this Agreement or consummate the transactions contemplated  hereby;  (iv) knowingly take any action that is intended or reasonably likely to  result in any of the conditions set forth in ARTICLE 6 not being satisfied; or  (v) authorize, announce an intention, or enter into any formal or  informal agreement or commitment with respect to any of the foregoing.  Section 5.3 Efforts; Regulatory Filings and Other Actions.   (a) During the period from the date hereof continuing through the Closing,  Sellers and the Purchaser and their respective Subsidiaries shall cooperate and use their  reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all  things necessary, proper or advisable to consummate and make effective as promptly as  practicable the Transactions and to cooperate with the other party in connection with the  foregoing, including, to prepare as promptly as practicable all documentation, to make all filings  and to obtain all consents, approvals, waivers, Permits and other authorizations of all  Governmental Authorities (and the expiration or termination of all statutory waiting periods in  respect thereof) required to consummate the Transactions, including those described in  Schedule 3 attached hereto (the “Requisite Regulatory Approvals”), and shall make all necessary  filings in respect thereof as promptly as practicable (and in any event (x) with respect to the  Federal Reserve Approval and the OCC Approval, within fifteen (15) days of the date of this  Agreement, subject to the timely receipt from Sellers of all necessary financial information, (y)  with respect to the FDIC Approval and the Special Dividend Approval, within fifteen (15) days  of Purchaser’s agreement to a final form of the P&A Agreement that is substantially complete so  as to enable a filing to occur and (z) with respect to the JFSA Approval, within 90 days of  Purchaser’s agreement to a final form of the P&A Agreement that is substantially complete so as  to enable a filing to occur).  In furtherance of the foregoing, the Purchaser and Sellers shall, and  shall cause their respective Affiliates to, use their reasonable best efforts to avoid the entry of, or  to have vacated, lifted, reversed or overturned any decree, judgment, injunction or other order,  whether temporary, preliminary or permanent that would restrain, prevent or delay the Closing;  provided, however, that notwithstanding any other provision of this Agreement that may be to  the contrary, Purchaser and Sellers, respectively, shall not be required to take any action, or  commit to take any action, or agree to any condition or restriction, that would, individually or in  the aggregate, reasonably be expected to result in (A) a Purchaser Material Adverse Effect, in the  case of Purchaser, or (B) a material adverse effect on Sellers and their Affiliates, taken as a  whole, in the case of Sellers (in the case of each of clause (A) and clause (B), measured on a pro  forma basis giving effect to the Transactions).  (b) Each party shall, subject to applicable Law, (i) permit counsel for the other  party a reasonable opportunity to review in advance any proposed filing, application,  correspondence or other written communication to any Governmental Authority in connection  with the Transactions (except where such communication (x) is made to a Governmental  Authority other than in respect of a Requisite Regulatory Approval, and (y) relates to the  businesses that currently are or will be included in the Excluded Assets and Liabilities Transfer  and the transfer of which in connection with the Excluded Assets and Liabilities Transfer is not  

 

  -59-    subject to a Requisite Regulatory Approval), (ii) consider in good faith the views of the other  party or its counsel with respect to any such filing, application, correspondence or other written  communication, and (iii) provide counsel for the other party with copies of all filings,  applications or other written submissions made by such party, and all material correspondence  between such party (and its advisors) with any Governmental Authority and any other  information supplied by such party and such party’s Affiliates to a Governmental Authority or  received from such a Governmental Authority in connection with the Transactions (except where  such communication (x) is made to a Governmental Authority other than in respect of a  Requisite Regulatory Approval, and (y) relates to the businesses that currently are or will be  included in the Excluded Assets and Liabilities Transfer and the transfer of which in connection  with the Excluded Assets and Liabilities Transfer is not subject to a Requisite Regulatory  Approval), in each case in such a manner as may be reasonable under the circumstances during a  Contagion Event; provided, however, that materials may be excluded or redacted as necessary  (A) to comply with applicable Law, or (B) to address reasonable privilege or confidentiality  concerns.  Each party agrees that it will use reasonable best efforts to (1) keep the other party  apprised of the status of matters relating to all applications and notices to Governmental  Authorities related to the Transactions and developments related thereto, and (2) give the other  party reasonable advance notice of, and except as may be impermissible due to the anticipated  discussion of a party’s confidential supervisory information, allow the other party to participate  in, any substantive meetings or discussions held with any Governmental Authority (other than  routine or local supervisory team meetings or discussions) concerning such applications or  notices to Governmental Authorities related to the Transactions (and give due consideration in  good faith to any reasonable request of the other party with respect to any such participation);  provided that such participation is not objected to by such Governmental Authority.  The parties  covenant and agree not to extend any waiting period associated with any Requisite Regulatory  Approval or enter into any agreement with any Governmental Authority not to consummate the  Transactions, except with the prior written consent of the other party hereto.  (c) The parties further covenant and agree that (i) with respect to any  threatened or pending preliminary or permanent Government Order that would adversely affect  the ability of the parties hereto to consummate the Transactions, to use their respective  reasonable best efforts to prevent the entry, enactment or promulgation thereof, as the case may  be, and (ii) in the event that any Action is commenced after the date hereof challenging any of  the parties’ rights to consummate the Transactions, the parties shall use their reasonable best  efforts, and take all reasonable actions necessary and appropriate, to contest such Action.  (d) Each party represents, warrants and agrees that any information furnished  by it for inclusion in any regulatory application will to its Knowledge be true and complete in all  material respects as of the date so furnished.  (e) Sellers shall, and shall cause their Affiliates (including the Bank and the  Transferred Subsidiaries) to, use reasonable best efforts to obtain all Third Party Consents as  soon as practicable; provided; that, without Purchaser’s consent, the Bank and the Transferred  Subsidiaries shall not offer or grant any accommodation (financial or otherwise) to any third  party in connection therewith unless Sellers fully bear all such obligations (whether by being  taken into account in the Closing Balance Sheet or being treated as a Transaction Expense).  

 

  -60-    (f) As promptly as practicable following the date of this Agreement, Seller  shall cause each Transferred Subsidiary that is registered as an investment adviser (each, an  “Adviser Subsidiary”) with the SEC under the Investment Advisers Act of 1940, as amended, to    send a notice to each Advisory Client informing such Advisory Client of the transactions  contemplated by this Agreement and use their respective reasonable best efforts to seek the  consent of each such Advisory Client, in accordance with the requirements of its Advisory  Contract and applicable Law, to the “assignment” (as defined in the Investment Advisers Act of  1940, as amended) of such Advisory Contract resulting from the change in ownership of the  Adviser Subsidiaries upon the consummation of the transactions contemplated hereby (it being  understood that, except to the extent the applicable Advisory Contract or Law requires consent to  such assignment to be obtained in writing, the implied or “negative” consent of the applicable  Advisory Client to such assignment shall be deemed sufficient).  For purposes of the foregoing,  “Advisory Client” means any Person to which an Adviser Subsidiary provides investment  advisory services pursuant to an Advisory Contract; and “Advisory Contract” means any  agreement between an Adviser Subsidiary and any Person pursuant to which an Adviser  Subsidiary agrees to provide investment advisory services to such Person.  (g) The Sellers shall provide Purchaser with a reasonable opportunity to  review and comment upon any notice or consent letter and other material correspondence sent to  third parties to obtain the Third Party Consents or the consents of the Advisory Clients  contemplated by Section 5.3(e) or Section 5.3(f), respectively, prior to the distribution of such  correspondence and shall consider in good faith reasonable comments made by Purchaser with  respect thereto.    Section 5.4 Notice of Changes.  To the extent permitted by applicable Law,  each party hereto shall keep the other party apprised of the status of matters relating to the  consummation of the Transactions, including promptly furnishing the other with copies of any  material notices or other communications received by such party or, to the Knowledge of such  party, its Representatives from any third party or any Governmental Authority with respect to the  consummation of the Transactions.  Each party shall give prompt notice to the other party of any  development or combination of developments that, individually or in the aggregate, is reasonably  likely to (i) cause it to fail to comply with or satisfy in any material respect any covenant,  condition or agreement under this Agreement or (ii) prevent, materially delay or materially  impair its ability to consummate the Transactions; provided, however, that no such notification  shall affect the representations, warranties, covenants or agreements of the parties, the conditions  to the obligations of the parties under this Agreement or any remedies for any breach of the  representations, warranties, covenants or agreements herein.  Each party shall give prompt notice  to the other party of any fact, event or circumstance known to it that is reasonably likely,  individually or taken together with all other facts, events and circumstances known to it, (x) with  respect to Sellers, the Bank or any Transferred Subsidiary, (A) to result in any Material Adverse  Effect, (B) to result in a breach of any of Sellers’ representations or warranties herein either on  such date or on the Closing Date or any of their covenants hereunder; (C) to result in the failure  of the satisfaction of the conditions to Closing or make the satisfaction of any of the foregoing  impossible or unlikely; or (D) to prevent, materially delay or materially impair the ability of  Sellers, the Bank or any Transferred Subsidiary to consummate the Transactions;  and (y) with  respect to Purchaser, (A) to result in any Purchaser Material Adverse Effect, (B) to result in a  breach of any of Purchaser’s representations or warranties herein either on such date or on the  

 

  -61-    Closing Date or any of its covenants hereunder; (C) to result in the failure of the satisfaction of  the conditions to Closing or make the satisfaction of any of the foregoing impossible or unlikely;  or (D) to prevent, materially delay or materially impair the ability of Purchaser to consummate  the Transactions.  Section 5.5 Confidentiality.  Each of Sellers and Purchaser acknowledges that  the information provided to it, its Affiliates or their Representatives (the “Receiving Party”) by  the other party, such party’s Affiliates or their Representatives (the “Disclosing Party”) prior to  the Effective Time in connection with this Agreement is subject to the Confidentiality  Agreements.  As of the Effective Time, the Confidentiality Agreements shall terminate.   Following the Effective Time, all confidential information relating to the Disclosing Party and its  Affiliates which was provided or conveyed to or obtained by Receiving Party in accordance with  the applicable Confidentiality Agreement and any other information that the Disclosing Party  furnished or furnish to the Receiving Party, or that the Bank and the Transferred Subsidiaries  have maintained after the Closing or that the Sellers or any of their Affiliates retains or receives  pursuant to Section 5.1, including any technical, scientific, trade secret or other proprietary  information of a Disclosing Party (including the Bank and the Transferred Subsidiaries) with  which the Receiving Party came or comes into contact in the course of the negotiation and  consummation of the Transactions or retains or receives pursuant to Section 5.1, whether before  or after the date of the applicable Confidentiality Agreement, together with any reports, analyses,  compilations, memoranda, notes and any other writings prepared by a Disclosing Party that  contain, reflect or are based upon such information, shall be and continue to be kept confidential  by the Receiving Party for a period of two (2) years following the Closing Date, except  (i) pursuant to a Government Order, as required in any Action, or as otherwise required by  applicable Law or administrative process (in which case the Receiving Party shall provide the  Disclosing Party prompt notice thereof to the extent legally permissible and practical and shall  cooperate with the Disclosing Party so that the Disclosing Party may seek a protective order or  other appropriate remedy); (ii) for information that is or becomes generally available to the  public other than as a result of a breach of this Section 5.5 or the applicable Confidentiality  Agreement; and (iii) to the extent that such information is or has become known to the Person  receiving such information on a non-confidential basis from a source who to the Knowledge of  such Receiving Party is not breaching any contractual, legal or fiduciary obligation or applicable  Law by making such disclosure (in the case of information relating to the Bank or the  Transferred Subsidiaries, this clause (iii) shall apply only to the extent that Sellers come to know  such information after the Closing Date), and such Receiving Party shall not use, and shall cause  its Affiliates not to use, the information described in this Section 5.5 in connection with the  conduct of its or its Affiliates’ businesses or for any other purpose, except as required for  financial or tax reporting or by applicable Law or as necessary to enforce the Receiving Party’s  or the Bank’s and the Transferred Subsidiaries’ (following the Closing) rights and remedies  under this Agreement or the other Transaction Documents; provided, however, that following the  Closing, the Purchaser shall be deemed to be the Disclosing Party, and Sellers shall be deemed to  be the Receiving Party, for purposes of all information of or relating to the Bank and the  Transferred Subsidiaries (except to the extent such information relates to the Excluded Assets  and Liabilities), and, accordingly, after the Effective Time, Purchaser shall not be subject to any  of the confidentiality restrictions set forth in this Section 5.5 with respect to such information of  or relating to the Bank and the Transferred Subsidiaries.  

 

  -62-    Section 5.6 Publicity.  During the period from the date of this Agreement  continuing through the Closing, Purchaser and Sellers shall, and shall cause their respective  Affiliates to, consult with each other before issuing any press release or public statement or  making any other public disclosure (including any broad-based employee communication)  related to this Agreement and the Transactions and shall not issue any such press release or  public statement or make any other such public disclosure without the prior written consent of  Purchaser or Sellers, as the case may be, which shall not be unreasonably withheld, delayed or  conditioned; provided that nothing in this Section 5.6 shall be deemed to prohibit Purchaser or  Sellers or any of their respective Affiliates from making any disclosure necessary in order to  satisfy its disclosure obligations imposed by applicable Law or any stock exchange or self- regulatory organization so long as it makes a good faith attempt to provide the other party with  prior notice of any such disclosure and address any comments or concerns raised by the other  party in good faith.   Section 5.7 Non-Compete; Non-Solicitation.  (a) During the period beginning on the Closing Date and ending on the second  (2nd) anniversary thereof (the “Non-Compete Term”), Sellers and their Controlled Affiliates shall  not, directly or indirectly, own an equity interest in, or manage, operate or control, any Person  engaged in or otherwise engage in the Restricted Banking Business in the Restricted Territory  (a “Competing Banking Business”).  (b) Sellers have delivered to Purchaser a list of the Restricted Customers and a  list of the Excluded Customers, in each case, prior to the date of this Agreement.  Such lists shall  be updated by Sellers and delivered to Purchaser within two (2) Business Days prior to the  Closing Date to reflect the then-current lists of Restricted Customers and Excluded Customers;  provided that such lists shall be delivered in preliminary form to Purchaser for review at least  twenty (20) Business Days prior to the Closing Date.  During the Non-Compete Term, Sellers  and their Controlled Affiliates shall not, directly or indirectly, solicit any Restricted Customers  for financial products or services in the Restricted Territory.   (c) For the avoidance of doubt, notwithstanding the foregoing, nothing in this  Section 5.7 shall prohibit or in any way limit the following:  (i) the provision of services or products by any Person other than  Sellers or any of their Controlled Affiliates;  (ii) the provision of services or products by Sellers or any of their  Affiliates, directly or through trading platforms, to (A) the Excluded Customers or  (B) any other customers of Sellers or any of their Affiliates (other than the Restricted  Customers) that have a bona fide non-U.S. banking relationship with Sellers or any of  their Affiliates, which may involve the provision of products or services that are  incidental to the non-U.S. banking relationship through branches or offices of Sellers or  any depository institution Affiliate of Sellers (which, for the avoidance of doubt, may  have branches or offices in the Restricted Territory);  

 

  -63-    (iii) Sellers or any of their Affiliates from acquiring, owning or holding  any of the outstanding securities of an entity, whether or not in the United States;  provided that (x) Sellers or any of their Affiliates shall not be presumed to control such  entity under the BHC Act and the Federal Reserve’s regulations and guidance thereunder  and (y) with respect to any entity that is a “bank” or “bank holding company” as defined  in the BHC Act (other than any entity in which Sellers or any of their Affiliates have an  investment as of the date of this Agreement which is, as of the date hereof, or which  becomes, after the date hereof, a bank or bank holding company, as so defined), Sellers  or any of their Affiliates shall not acquire, own or hold, five percent (5%) or more of the  outstanding securities of such entity;   (iv) Sellers or any of their Affiliates from acquiring, owning, holding  or exercising rights of ownership with respect to a security solely in a fiduciary, custodial  or agency capacity or otherwise for the benefit of or on behalf of clients or other  unaffiliated beneficiaries;  (v) Sellers or any of their Affiliates from, directly or indirectly,  acquiring (whether by merger, consolidation or otherwise) a Person that operates or  engages in a Competing Banking Business in the Restricted Territory if such Competing  Banking Business represents no more than ten percent (10%) of such Person’s business  (measured, for purposes of this clause (v), based on the percentage of total assets of the  Competing Banking Business in the Restricted Territory relative to the overall  consolidated total assets of the Person acquired as of the end of the most recent fiscal  quarter prior to the date of entering into the agreement providing for the applicable  acquisition); or  (vi) Sellers and their Affiliates from undertaking general advertising or  marketing campaigns not targeting Restricted Customers.  (d) Following the Closing, Sellers shall not, and Sellers shall cause their  Controlled Affiliates not to, use any customer lists of the Bank or any Transferred Subsidiary in  connection with the operation of their businesses.  (e) For the avoidance of doubt, this Section 5.7 (other than subsection (d))  shall not apply to any Controlled Affiliate if the Sellers cease to control, directly or indirectly,  such Affiliate.  (f) If any provision contained in this Section 5.7 shall for any reason be held  invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability  shall not affect any other provisions of this Section 5.7, but this Section 5.7 shall be construed as  if such invalid, illegal or unenforceable provision had never been contained herein.  It is the  intention of the parties that, if any of the restrictions or covenants contained in this Section 5.7  are held to cover a geographic area or to be for a length of time which is not permitted by  applicable Law, or in any way construed to be too broad or to any extent invalid, such provision  shall not be construed to be null, void and of no effect, but to the extent such provision would be  valid or enforceable under applicable Law, the parties shall construe and interpret or reform this  Section 5.7 to provide for a covenant having the maximum enforceable geographical area, time  

 

  -64-    period and other provisions (not greater than those contained herein) as shall be valid and  enforceable under such applicable Law.  (g) Nothing in this Agreement shall require any party or any of its Affiliates  to terminate any instruments, accounts or agreements of or with any customer or client in effect  as of the date hereof, or prohibit or otherwise limit any of them from either accepting or making  deposits and withdrawals to and from such accounts or performing their respective binding  obligations in effect on the date hereof and as of the Closing Date under such instruments or  agreements.  Section 5.8 Employee Non-Solicitation.    (a) Neither Sellers nor any of their Controlled Affiliates shall, directly or  indirectly, solicit for employment or employ (i) any Covered Continuing Employee during the  period beginning on the Closing Date and ending on the date that is two (2) years after the  Closing Date and (ii) any Continuing Employee who is not a Covered Continuing Employee  during the period beginning on the Closing Date and ending on the date that is one (1) year after  the Closing Date; provided, however, that nothing herein shall be deemed to prohibit any of  Sellers or their Controlled Affiliates (or any of their Controlled Affiliates) from conducting any  general solicitation or general recruitment effort conducted by a third party and not targeted at  any such Continuing Employees or prohibit the solicitation or employment of any Continuing  Employee that was terminated by Purchaser or any of its Affiliates (including, after Closing, the  Bank and the Transferred Subsidiaries). From the date of this Agreement through the Closing  Date, neither Sellers nor any of their Controlled Affiliates shall, directly or indirectly, solicit for  employment or employ at Sellers or any of their Controlled Affiliates (other than the Bank and  the Transferred Subsidiaries) any Business Employee; provided, however, that nothing herein  shall be deemed to prohibit any of Sellers or their Controlled Affiliates (or any of their  Controlled Affiliates) from conducting any general solicitation or general recruitment effort  conducted by a third party and not targeted at any such Business Employees.  (b) During the period beginning on the Closing Date and ending on the date  that is twelve (12) months after the Closing Date, neither Purchaser nor any of its Controlled  Affiliates (including, after Closing, the Bank and the Transferred Subsidiaries) shall, directly or  indirectly, solicit for employment any employee of Sellers or any of their Controlled Affiliates  (including the Excluded Employees) of whom Purchaser or any of its Controlled Affiliates was  made aware, or with whom Purchaser or any of its Controlled Affiliates came into contact, in  connection with the Transactions; provided, however, that nothing herein shall be deemed to  prohibit any of Purchaser or any of its Controlled Affiliates from conducting any general  solicitation or general recruitment effort conducted by a third party and not specifically targeted  at any such employee of Sellers or their Controlled Affiliates (including the Excluded  Employees) or prohibit the solicitation or employment of any such employee that was terminated  by Sellers or any of their Affiliates.  Section 5.9 Taxes.  (a) Indemnification.  From and after the Closing,  

 

  -65-    (i) Seller and its Affiliates (other than the Bank and the Transferred  Subsidiaries) shall pay or cause to be paid and hereby agree to indemnify and hold the  Purchaser Indemnified Parties harmless from and against (1) any Excluded Taxes, (2) any  reduction in the balance of the net deferred Tax asset that was included in TBV, which  shall be determined by comparing the balance of the net deferred Tax asset actually  included in TBV with a determination of the hypothetical balance of such net deferred  Tax asset immediately following the filing of any Tax Returns relating to the Seller Tax  Period (and the Seller portion of any Straddle Period), (3) any reduction in the net  deferred Tax asset which was included in TBV by reason of any Tax Proceeding; and (4)  any incremental Taxes incurred by Purchaser or any of its Affiliates due to the  disallowance in any Tax Proceeding of the net deferred Tax asset included in TBV.  (ii) Purchaser shall pay or cause to be paid and hereby agrees to  indemnify and hold Seller and its Affiliates harmless from and against any Purchaser  Indemnified Taxes.  Seller shall be entitled to any refunds of Taxes (whether in the form  of cash received or a credit against Taxes otherwise payable) received by the Bank or any  Transferred Subsidiary in respect of the Seller Tax Period, except to the extent the  entitlement to such refund (A) was reflected as an asset in the Closing TBV or (B) arises  as a result of a carryback to any Seller Tax Period of any net operating loss, capital loss  or other Tax attribute arising in a Purchaser Tax Period (or, in the event of a Straddle  Period, the netting of such Tax attributes arising in a Purchaser Tax Period against  income or gain arising in a Seller Tax Period).  (iii) In the case of any Taxes that are payable for a Straddle Period, the  portion of such Tax that relates to the portion of such taxable period ending on the  Closing Date shall (A) in the case of any Taxes not based on net income or on receipts,  be deemed to be the amount of such Tax for the entire Straddle Period multiplied by a  fraction the numerator of which is the number of days in the Straddle Period ending on  the Closing Date and the denominator of which is the number of days in the entire  Straddle Period and (B) in the case of any Taxes based on net income or on receipts (e.g.,  sales and use Taxes), be deemed equal to the amount which would be payable if the  relevant taxable period ended on the Closing Date. To the extent any item of income,  gain, loss, deduction or credit of the Bank or any Transferred Subsidiary is attributable to  an interest in an entity or arrangement classified as a partnership or other “flow-through”  entity for Tax purposes, such entity or arrangement shall be treated for purposes of this  Agreement as if its taxable year ended on the Closing Date and any such items of income,  gain, loss, deduction or credit of each such entity through the Closing Date shall be  considered to be attributable to the portion of the taxable period ending on the Closing  Date.  Notwithstanding the foregoing, the amount of items of depreciation and low  income housing tax credits allocated to the portion of a Straddle Period prior to the  Closing Date shall be the total amount of such items arising in such Straddle Period  multiplied by a fraction, the numerator of which shall be the number of days prior to the  Closing Date in the taxable year and the denominator of which shall be the total number  of days in the taxable year that includes the Closing Date.  For purposes of this Section  5.9(a)(iii), any Taxes arising out of the ordinary course of business on the Closing Date  but after the Effective Time shall be deemed to take place on the first day following the  Closing Date.    

 

  -66-    (iv) For the avoidance of doubt, no Person shall be entitled to recover  more than once with respect to the same amount (i.e. no double-counting).  (b) Tax Returns.  Seller shall, at its own expense, be responsible for preparing  and filing (i) all Tax Returns of the Bank and the Transferred Subsidiaries (including, for this  purpose, the Excluded Subsidiaries) for all periods ending on or prior to the Closing Date that are  required to be filed on or prior to the Closing Date (taking into account any applicable  extensions) (“Bank Tax Returns”) and (ii) all Tax Returns that include the Bank or any  Transferred Subsidiary, on the one hand, and Seller or any of its Affiliates other than the Bank  and the Transferred Subsidiaries or the Excluded Subsidiaries, on the other hand (“Combined  Tax Returns” and, together with the Bank Tax Returns, “Seller Tax Returns”). All Seller Tax  Returns shall be prepared on a basis consistent with the past practices of Seller or its applicable  Affiliate except to the extent (i) failure to do so would not adversely affect Purchaser or any of  its Affiliates (including the Bank and the Transferred Subsidiaries) or (ii) otherwise required by a  change in Law.  Seller shall deliver, or cause to be delivered, to Purchaser each Seller Tax  Return (other than any Combined Tax Returns) at least thirty (30) calendar days prior to the due  date thereof (taking into account any extensions thereof) and shall reflect on the filed return any  reasonable comments received from Purchaser in writing within twenty (20) calendar days  following the date such Tax Returns are delivered by Seller to Purchaser.  Seller shall file or  cause to be filed all Seller Tax Returns and shall pay or cause to be paid any Taxes shown as due  on such Seller Tax Returns.  Purchaser shall prepare and file all Tax Returns of the Bank and the  Transferred Subsidiaries that are not Seller Tax Returns (“Purchaser Tax Returns”) for periods  ending on or prior to the Closing Date that are required to be filed after the Closing Date (taking  into account any applicable extensions) and pay or cause to be paid any Taxes shown as due on  such Tax Returns (subject to Purchaser’s right to indemnification for Excluded Taxes). Purchaser  Tax Returns for any Seller Tax Period or Straddle Period shall be prepared in a manner  consistent with the past practices of the relevant entity except to the extent (i) failure to do so  would not adversely affect Seller or any of its Affiliates (including the Bank and the Transferred  Subsidiaries), (ii) otherwise required by a change in Law, or (iii) Purchaser reasonably  determines that a material position reflected on such Tax Return is not more likely than not to  succeed, provided, that Purchaser shall provide Seller at least twenty (20) days to provide a  written tax opinion, in form and substance reasonably acceptable to Seller, of a nationally  recognized law firm or accounting firm experienced in Tax matters, concluding that for such  position is more likely than not to succeed, and Purchaser agrees notwithstanding the provisions  of Section 5.9(c) to file such Tax Return in a manner consistent with such written tax opinion.  No later than two (2) Business Days prior to the due date (taking into account extensions) for  Purchaser filing any Tax Return pursuant to this Section 5.9(b), Seller shall, or shall cause its  Affiliates to, pay to Purchaser an amount equal to any Excluded Taxes shown as due and payable  with respect to such Tax Return.  (c) Seller Review of Tax Returns.  With respect to any Purchaser Tax Return  reflecting more than a de minimis amount of Excluded Taxes, Purchaser shall provide Seller with  copies of such Tax Return promptly after Purchaser has prepared such Tax Return but in no  event later than thirty (30) calendar days prior to the due date (taking into account extensions) for  filing such Tax Return, provided, that in the case of any Tax Return required to be filed on a  monthly basis, Purchaser shall provide Seller with copies of such Tax Return reasonably in  advance of the due date therefor.  If Seller disputes any items shown on any such Tax Return  

 

  -67-    affecting Excluded Taxes, Seller shall notify Purchaser within twenty (20) calendar days after  receiving such Tax Return.  Purchaser and Seller shall negotiate in good faith and use  commercially reasonable efforts to resolve any disputed items prior to the due date (taking into  account extensions) for filing such Tax Return. In the event that Purchaser and Seller are unable  to resolve any disputed items prior to the due date for filing such Tax Return, (i) Purchaser shall  be permitted to file such Tax Return reflecting Purchaser’s position with respect to any disputed  items, (ii) as promptly as practicable following the filing of such Tax Return, Seller and  Purchaser shall cause a mutually selected independent accounting firm to resolve such dispute  (the costs and expenses of which shall be borne equally by the parties), and (iii) to the extent  necessary, Purchaser shall file an amended Tax Return to reflect the resolution of such disputed  items by the independent accounting firm.  No later than two (2) Business Days prior to the due  date (taking into account extensions) for Purchaser filing any Tax Return pursuant to this Section  5.9(c), Seller shall, or shall cause its Affiliates to, pay to Purchaser an amount equal to any  Excluded Taxes shown as due and payable with respect to such Tax Return.  (d) Transfer Taxes.  All Transfer Taxes shall be borne and paid fifty percent  (50%) by Purchaser, on the one hand, and fifty percent (50%) by Seller, on the other hand.  The  party responsible under applicable Law for filing the Tax Returns with respect to such Transfer  Taxes shall prepare and timely file such Tax Returns and promptly provide a copy of such Tax  Returns to the other party.  Purchaser and Seller shall, and shall cause their respective Affiliates  to, reasonably cooperate to timely prepare and file any Tax Returns or other filings relating to  such Transfer Taxes, including any claim for exemption or exclusion from the application or  imposition of any Transfer Taxes.  (e) Tax Sharing Agreements.  Effective as of no later than one day prior to the  Closing, any and all Tax sharing or allocation agreements or arrangements to which the Bank or  any Transferred Subsidiary is a party (other than any customary Tax indemnification provisions  contained in commercial Contracts not primarily related to Taxes (such as financing Contracts  with Tax gross-up obligations or leases with Tax escalation provisions)) shall be terminated,  such that none of Purchaser or any of its Affiliates (including, after the Closing, the Bank and the  Transferred Subsidiaries) shall have any further liability thereunder.  The parties to any such  terminated agreement or arrangement shall, immediately prior to such termination, pay all  amounts accrued and owing, if any, thereunder.  (f) Timing of Indemnity Payments.  Except as otherwise provided in Section  5.9(a), Section 5.9(b) or Section 5.9(c), any payment required to be made pursuant to this Section  5.9 shall be made within ten (10) days after Purchaser makes written demand upon Seller (but, in  the case of any payment required to be made to a Taxing Authority, shall not be required to be  made sooner than two (2) Business Days prior to the due date thereof).  (g) Cooperation in Tax Proceedings.  (i) Purchaser and Seller will cooperate fully, as and to the extent  reasonably requested by the other party, in connection with the filing of Tax Returns of,  and any Tax Proceeding relating to the Bank or any Transferred Subsidiary (including,  for this purpose, the Excluded Subsidiaries).  Cooperation includes (A) the retention and  (at the other party’s request) the provision of records and information in such party’s  

 

  -68-    possession that are reasonably relevant to the filing of any such Tax Returns or Tax  Proceeding and (B) making employees available on a mutually convenient basis to  provide additional information and explanation of any material provided under this  Section 5.9(g). Notwithstanding anything to the contrary in this Agreement, and unless  required by applicable Laws, neither Seller nor any of its Affiliates shall be required to  provide any Person with any Tax Return or copy of any Tax Return of a consolidated,  combined, affiliated or unitary group that includes Seller and its Affiliates, except, in  each case, for materials or portions thereof (including associated schedules and work  papers) that relate solely to the Bank and the Transferred Subsidiaries or pro forma Tax  Returns of the Bank and the Transferred Subsidiaries that show information relating  solely to the Bank and the Transferred Subsidiaries.  (ii) Each of Seller and Purchaser agrees (A) to retain all books and  records of the Bank and the Transferred Subsidiaries (including, for this purpose, the  Excluded Subsidiaries) with respect to Tax matters pertinent to the Bank and the  Transferred Subsidiaries (including, for this purpose, the Excluded Subsidiaries) relating  to any taxable period beginning before the Closing Date until the expiration of the statute  of limitations (and any extensions thereof) of the respective taxable periods, (B) to abide  by all record retention agreements entered into with any Governmental Authority and  (C) to give the other party reasonable written notice before transferring, destroying or  discarding any books and records and, if the other party so requests, allow such other  party to take possession of the books and records.  (iii) Purchaser and Seller further agree, and agree to cause their  respective Affiliates, to, upon request, use commercially reasonable efforts to obtain any  certificate or other document from any Governmental Authority or customer of the Bank  or any Transferred Subsidiary or any other Person as may be reasonably necessary to  mitigate, reduce or eliminate any Tax that could be imposed with respect to the  transactions contemplated hereby.  (iv) Without limiting the foregoing provisions of this Section 5.9(g), if  any claim or demand for Taxes that could reasonably be expected to give rise to a claim  for indemnification under Section 5.9(a) is asserted by any Governmental Authority, the  party first receiving notice of such claim or demand shall notify the other party of such  claim or demand promptly; provided, however, that the failure of Purchaser to give such  prompt notice shall not relieve Seller of any of its indemnification obligations, except to  the extent that Seller is actually prejudiced by such failure.  The Controlling Party shall,  at its own expense, control any such Tax Proceeding of or with respect to the Bank or any  Transferred Subsidiary (including, for this purpose, the Excluded Subsidiaries) for any  taxable period ending on or before the Closing Date (other than a Tax Proceeding  described in Section 5.9(g)(v)) for which Seller may be obligated to indemnify Purchaser  under Section 5.9(a); provided that, (A) the Controlling Party shall provide the Non- Controlling Party with a timely and reasonably detailed account of each stage of such Tax  Proceeding, (B) the Controlling Party shall allow the Non-Controlling Party to consult in  good faith at the Non-Controlling Party’s expense on the positions taken in such Tax  Proceeding, (C) the Controlling Party shall defend such Tax Proceeding diligently and in  good faith as if it were the only Person affected by such Tax Proceeding, (D) the Non- 

 

  -69-    Controlling Party and its representatives shall have the right to participate in such Tax  Proceeding, assist in the preparation of any written materials in such Tax Proceeding and  attend any meetings or telephone conversations with the applicable Governmental  Authority, in each case, at the Non-Controlling Party’s expense, and (E) the Controlling  Party shall not settle or compromise any such Tax Proceeding, if such settlement or  compromise would reasonably be expected to increase the liability for Taxes (including  under this Agreement) by more than a de minimis amount or reduce any Tax attributes of  the Non-Controlling Party or any of its Subsidiaries by more than a de minimis amount,  without obtaining the prior written consent of the Non-Controlling Party (which consent  shall not be unreasonably withheld, conditioned or delayed). For purposes of this Section  5.9(g)(iv), the “Controlling Party” with respect to a Tax Proceeding shall mean Purchaser  unless Seller is reasonably expected to bear a greater liability under Section 5.9(a) as a  result of such Tax Proceeding and provides prompt written notice to Purchaser of its  intent to control such Tax Proceeding, and the “Non-Controlling Party” shall mean  whichever of Seller or Purchaser is not the Controlling Party.  Whether or not Seller  chooses to defend or prosecute any claim it is entitled to defend or prosecute hereunder,  all of the parties shall reasonably cooperate in the defense or prosecution thereof.  (v) Notwithstanding anything to the contrary in this Agreement,  (A) Seller shall have the exclusive right to control in all respects, and neither Purchaser  nor any of its Affiliates shall be entitled to participate in, any Tax Proceeding with  respect to (I) any Tax Return of Seller or any of its Subsidiaries (other than the Bank and  the Transferred Subsidiaries) and (II) any Tax Return of an affiliated, consolidated,  combined, unitary or similar group that includes Seller or any of its Subsidiaries (other  than the Bank and the Transferred Subsidiaries) and (B) Purchaser shall have the  exclusive right to control in all respects, and neither Seller nor any of its Affiliates shall  be entitled to participate in, any Tax Proceedings with respect to (I) any Tax Return of  Purchaser or any of its Subsidiaries (other than the Bank and the Transferred  Subsidiaries) and (II) any Tax Return of an affiliated, consolidated, combined, unitary or  similar group that includes Purchaser or any of its Subsidiaries.  (vi) Except as otherwise provided in this Section 5.9(g), Purchaser  shall have the exclusive right to control all Tax Proceedings with respect to the Bank and  the Transferred Subsidiaries, provided that in no event may Purchaser settle or  compromise any Tax Proceeding to the extent such resolution would reasonably be  expected to increase Seller’s liability for Excluded Taxes under Section 5.9(a)  by more  than a de minimis amount without the prior written consent of Seller (which consent shall  not be unreasonably withheld, conditioned or delayed).  (h) Purchase Price Adjustment.  Any amounts paid pursuant to this Section  5.9 or Section 8.1 shall be treated as an adjustment to the Closing Purchase Price for all income  Tax purposes to the extent permitted by applicable Law.  (i) 338 Election. Purchaser and Seller agree to evaluate in good faith whether  to join in making an election under Section 338(h)(10) of the Code (and any corresponding  election under state, local, or foreign law) (a “338 Election”) with respect to Purchaser’s  

 

  -70-    purchase of the stock of the Bank pursuant to this Agreement; provided that nothing in this  Section 5.9(i) shall be construed to require either party to agree to make such an election.  (j) Survival and Coordination.  Anything to the contrary in this Agreement  notwithstanding, (i) indemnification with respect to Taxes and the procedures relating thereto  shall be governed exclusively by this Section 5.9, and the provisions of ARTICLE 8 shall not  apply, and (ii) the covenants and agreements contained in this Section 5.9 and the representations  and warranties set forth in Section 3.15 shall survive until thirty (30) days following the  expiration of the full period of all statutes of limitations (giving effect to any extensions thereof),  provided that any right to indemnification for breach of covenant, agreement, representation or  warranty in respect of which indemnification may be sought under this Section 5.9 shall survive  the time at which it would otherwise terminate pursuant to this Section 5.9(j)  if notice of the  right to indemnification or of the breach or inaccuracy giving rise to such right of  indemnification shall have been given prior to such time.  Section 5.10 Employee Matters.  (a) Purchaser agrees that Purchaser shall provide, or shall cause to be  provided, with respect to each Business Employee who continues to remain employed with the  Bank and the Transferred Subsidiaries following the Effective Time (each, a “Continuing  Employee”), (i) during the period commencing at the Effective Time and ending on the one (1)  year anniversary of the Closing Date, (x) base salary or base wage, as applicable, which is no  less favorable than that provided by the Bank and the Transferred Subsidiaries immediately prior  to the Effective Time to each such Continuing Employee, (y) total compensation opportunities  (other than base salary or base wage, as applicable, which are subject to the foregoing clause  (x)), subject to the achievement of applicable performance metrics, which are no less favorable  in the aggregate than the total compensation opportunities (other than base salary or base wage,  as applicable, which are subject to the foregoing clause (x)), subject to the achievement of  applicable performance metrics, provided by the Bank and the Transferred Subsidiaries  immediately prior to the Effective Time to each such Continuing Employee, and (z) subject to  the applicable Continuing Employee’s execution and non-revocation of a release of claims,  severance benefits that are no less favorable than the severance benefits provided by the Bank  and the Transferred Subsidiaries immediately prior to the Effective Time to each such  Continuing Employee as such benefits are set forth on Section 5.10(a) of the Sellers’ Disclosure  Schedule, and (ii) during the period commencing at the Effective Time and ending on December  31 of the calendar year in which the Effective Time occurs, other benefits (including, but not  limited to, pension, welfare and paid time off benefits) that are substantially comparable in the  aggregate to those provided by the Bank and the Transferred Subsidiaries immediately prior to  the Effective Time to each such Continuing Employee.  (b) To the extent permitted by applicable Law, for purposes of vesting, benefit  accrual, vacation and sick time credit and eligibility to participate under the employee benefit  plans, programs and policies of Purchaser and its Subsidiaries which may provide benefits to any  Continuing Employee after the Effective Time (the “New Plans”) and the Benefit Plans, each  Continuing Employee shall be credited with his or her years of service with Sellers, the Bank and  the Transferred Subsidiaries and their respective predecessors or Affiliates before the Effective  Time, to the same extent as such Continuing Employee was entitled, before the Effective Time,  

 

  -71-    to credit for such service under any similar Benefit Plan in which such Continuing Employee  participated or was eligible to participate immediately prior to the Effective Time; provided that  the foregoing shall not apply (i) to the extent that its application would result in a duplication of  benefits with respect to the same period of service, or (ii) with respect to (A) benefit accrual,  including level of pay credits, under any New Plan that is an employee pension benefit plan, (B)  any New Plan that is a frozen benefit plan or provides grandfathered benefits, (C) any New Plan  that is a retiree medical plan or arrangement or (D) any equity incentive awards granted by  Purchaser.  In addition, and without limiting the generality of the foregoing, Purchaser shall use  commercially reasonable efforts to cause (x) each Continuing Employee to be immediately  eligible to participate, without any waiting time, in any and all New Plans to the extent coverage  under such New Plan is replacing comparable coverage under a Benefit Plan in which such  Continuing Employee participated immediately before the Effective Time, and (y) for purposes  of each New Plan providing medical, dental, pharmaceutical and/or vision benefits to any  Continuing Employee, any evidence of insurability requirements, all pre-existing condition  exclusions and actively-at-work requirements of such New Plan to be waived for such  Continuing Employee and his or her covered dependents, to the extent such conditions were  inapplicable or waived under the comparable Benefit Plan.  Purchaser shall use commercially  reasonable efforts to cause any eligible expenses incurred by any Continuing Employee and his  or her covered dependents during the portion of the plan year of the Benefit Plan ending on the  date such Continuing Employee’s participation in the corresponding New Plan begins to be taken  into account under such New Plan for purposes of satisfying all deductible, coinsurance and  maximum out-of-pocket requirements applicable to such Continuing Employee and his or her  covered dependents for the applicable plan year.  Following the Effective Time, Purchaser and  its Subsidiaries shall honor (or pay) any paid time off accrued by each Business Employee prior  to the Effective Time.  (c) Purchaser hereby acknowledges that a “change in control” or “change of  control” or term or concept of similar import for the Benefit Plans identified in Section 5.10(c) of  the Sellers’ Disclosure Schedule will occur upon the Effective Time.  (d) With respect to any monthly, quarterly, semi-annual, or annual bonus or  commission plan of the Bank or any Transferred Subsidiary set forth on Section 3.13(b) of the  Sellers’ Disclosure Schedule (each, a “Bonus Plan”):  (i) With respect to any performance periods for which the Closing  Date does not occur prior to the end of such performance period, Sellers will provide (or  will cause their applicable Affiliate to provide) each Business Employee who participates  in a Bonus Plan with a bonus or commission (as applicable) award (including, for the  avoidance of doubt, any portion of such award that is required to be deferred pursuant to  the terms of the applicable Bonus Plan), determined based on actual achievement of the  applicable performance goals, as reasonably determined in good faith and consistent with  past practice by Sellers.  Such awards shall be (x) paid at the time that such Bonus Plan  payments are payable to Business Employees or Continuing Employees, as applicable, in  the ordinary course of business consistent with past practice pursuant to the terms of the  applicable Bonus Plan, but no later than the earlier of forty-five (45) days following the  Closing Date and seventy-five (75) days following the end of the applicable performance  period; provided, that, if payment has not occurred prior to the Closing Date, the  

 

  -72-    aggregate amount of such awards (including the aggregate amount of the deferred portion  thereof) shall be accrued on the Estimated Closing Balance Sheet and Closing Balance  Sheet, as applicable, of the Bank or a Transferred Subsidiary, and (y) subject to the  applicable terms of the applicable Bonus Plan, including any requirement regarding  continued employment to receive the bonus or commission (as applicable) thereunder,  and any requirement that a portion of the award be deferred; provided, that if the Closing  Date occurs prior to June 1, 2022, Purchaser (and not the Sellers) shall provide the  deferred portion of the award in respect of the annual performance period ending March  31, 2022 as determined by Sellers in accordance with the foregoing in the form of  Purchaser equity and/or long term cash (as elected by Purchaser in its sole discretion)  with equal value (as reflected in the accrual on the Estimated Closing Balance Sheet and  Closing Balance Sheet, as applicable, of the Bank or a Transferred Subsidiary as  described in the foregoing clause (x)).    (ii) With respect to any performance periods for which the Closing  Date does occur prior to the end of such performance period, Purchaser will provide (or  will cause its applicable Affiliate to provide) each Continuing Employee who participates  in a Bonus Plan with a bonus or commission (as applicable) award (including, for the  avoidance of doubt, any portion of such award that is required to be deferred pursuant to  the terms of the applicable Bonus Plan), determined as the sum of: (A) with respect to the  portion of such performance period elapsed from the first day of such performance period  to the Closing Date, a pro-rated portion of the bonus or commission, as applicable, with  such amount determined based on actual achievement of the applicable performance  goals through the Closing Date, as reasonably determined in good faith and consistent  with past practice by Sellers as soon as practicable following the Closing Date (the “Pre- Closing Portion”); provided, that the aggregate amount of the Pre-Closing Portion,  including the aggregate amount of the deferred portion thereof, shall be accrued on the  Estimated Closing Balance Sheet and Closing Balance Sheet, as applicable, of the Bank  or a Transferred Subsidiary, and (B) with respect to the portion of such performance  period elapsed from the Closing Date through the end of such performance period, a pro- rated portion of the bonus or commission, as applicable, determined by Purchaser or its  applicable Affiliate in accordance with Section 5.10(a)(ii) above.  Such awards shall be  (x) paid at the time that such Bonus Plan payments are payable to Continuing Employees  in the ordinary course of business consistent with past practice pursuant to the terms of  the applicable Bonus Plan and (y) subject to the applicable terms of the applicable Bonus  Plan, including any requirement regarding continued employment to receive the bonus or  commission (as applicable) thereunder, and any requirement that a portion of the award  be deferred; provided, that Purchaser shall make any deferred portion of the award in the  form of Purchaser equity and/or long term cash (as elected by Purchaser in its sole  discretion) with equal value (with respect to the deferred portion of the Pre-Closing  Portion, as reflected in the accrual on the Estimated Closing Balance Sheet and Closing  Balance Sheet, as applicable, of the Bank or a Transferred Subsidiary as described in  clause (A) of the first sentence of this Section 5.10(d)(ii)).  (iii) Sellers and Purchaser shall cooperate in good faith to provide such  information reasonably required to calculate bonuses in accordance with this Section  5.10(d).  

 

  -73-    (e) No later than December 31, 2021, Sellers and the Purchaser shall  cooperate in good faith to mutually agree on the Business Employees to be added to or removed  from Schedule 1 (with the approximate final number as of December 31, 2021 as set forth on  such Schedule 1), which shall thereafter represent the complete list of Business Employees. Any  change to Schedule 1 thereafter (other than the removal of a Business Employee as a result of a  voluntary resignation, due to such Business Employee’s death or disability, or termination for  cause or the hiring of a Business Employee below the level of Director to replace a Business  Employee who resigns or is terminated (with such newly hired Business Employee having  substantially similar terms of employment as the Business Employee being replaced)) may only  be made with mutual agreement between Sellers and the Purchaser.  Sellers shall take all actions  necessary to cause all Excluded Employees to cease employment or services, as applicable, with  the Bank and the Transferred Subsidiaries prior to the Effective Time.  (f) Prior to the Effective Time, Sellers shall take all commercially reasonable  actions necessary (i) to cause all Excluded Employees (and their eligible dependents) to cease  participating in the Benefit Plans (other than the Bank 401(k) Plan) no later than immediately  prior to the Effective Time, (ii) for all of the liabilities and obligations and, where applicable,  assets (including pursuant to any related trusts, except as otherwise set forth in Section  5.10(f)(iv)) under the Benefit Plans set forth on Section 5.10(f)(ii) of the Sellers’ Disclosure  Schedule, other than the liabilities and obligations and, where applicable, assets with respect to  the Continuing Employees, to be assumed by employee benefit plans, programs and policies of  Sellers or their Affiliates (other than the Bank and the Transferred Subsidiaries) no later than  immediately prior to the Effective Time, such that, from and after the Effective Time, the Bank  and the Transferred Subsidiaries and such Benefit Plans shall have no such liabilities or  obligations other than those with respect to the Continuing Employees (and their eligible  dependents), provided, that the portion of the assets that shall be assumed by Sellers or their  Affiliates pursuant to this Section 5.10(f)(ii) shall be determined based on the proportion of the  aggregate liabilities under the applicable Benefit Plan that is assumed by Sellers or their  Affiliates or as otherwise required by law (including, without limitation, under Section 414(l) of  the Code and Section 4044 of ERISA), provided, that, with respect to the MUFG Union Bank,  N.A. Retirement Plan, (x) the liabilities, obligations and assets with respect to the Continuing  Employees shall be transferred to a retirement plan and trust newly established at the Bank or a  Transferred Subsidiary (“Continuing Employee Retirement Plan”) and the liabilities, obligations  and assets with respect to the Excluded Employees (and their eligible dependents) shall remain  with the MUFG Union Bank, N.A. Retirement Plan, and (y) Sellers shall take any and all actions  required to transfer the sponsorship of the MUFG Union Bank, N.A. Retirement Plan and the  MUFG Union Bank, N.A. Retirement Plan Trust to Sellers or their Affiliates (other than the  Bank and the Transferred Subsidiaries) effective immediately prior to and contingent upon the  occurrence of the Effective Time (unless the Sellers and Purchaser agree otherwise in good  faith), (iii) to transfer the sponsorship of the Benefit Plans set forth on Section 5.10(f)(iii) of the  Sellers’ Disclosure Schedule, and any associated trust, to the Bank or a Transferred Subsidiary,  no later than immediately prior to the Effective Time; provided, that Seller (or its applicable  Affiliates, other than the Bank and the Transferred Subsidiaries) shall assume or retain, as  applicable, all liabilities and obligations for all worker’s compensation, short- and long-term  disability, medical, prescription drug, dental, vision, life insurance, accidental death and  dismemberment or other welfare benefit claims incurred by Excluded Employees prior to the  Effective Time that are (and to the extent) covered under the terms of such Benefit Plan;  

 

  -74-    provided, further, that for this purpose, a claim shall be deemed to be incurred (w) in the case of  workers’ compensation and short- and long-term disability benefits (including related health  benefits), at the time of the injury, sickness or other event giving rise to the claim for such  benefits, (x) in the case of medical, prescription drug, dental or vision benefits, at the time that  professional services, equipment or prescription drugs covered by such Benefit Plan are  obtained, (y) in the case of life insurance benefits, upon death, and (z) in the case of accidental  death and dismemberment, at the time of the accident, and notwithstanding the foregoing, in the  case of a hospital stay or similar confinement that begins prior to the Effective Time and ends on  or after the Effective Time, Seller (or its applicable Affiliate, other than the Bank and the  Transferred Subsidiaries) shall be responsible for the cost of all professional services, equipment,  and prescription drugs provided during such hospital stay or similar confinement in accordance  with the terms and conditions of such Benefit Plan, and (iv) to transfer the sponsorship of the  Benefit Plans set forth on Section 5.10(f)(iv) of the Sellers’ Disclosure Schedule to Sellers or  their Affiliates (other than the Bank and the Transferred Subsidiaries) no later than immediately  prior to the Effective Time.  (g) Prior to the Effective Time, Sellers shall take any and all actions required  to transfer the sponsorship of the Bank’s 401(k) Plan and the Bank’s 401(k) Plan Trust (together,  the “Bank 401(k) Plan”) to Sellers or their Affiliates (other than the Bank and the Transferred  Subsidiaries) effective immediately prior to and contingent upon the occurrence of the Effective  Time.  As soon as practicable following the Effective Time, Sellers and their Affiliates shall  make its employer matching contribution to the Bank 401(k) Plan in respect of the Business  Employees, pro-rated to reflect the portion of the plan year completed prior to the Closing.  Prior  to the Effective Time and thereafter (as applicable), the Bank and the Purchaser shall take any  and all actions as may be required, including amendments to the Bank 401(k) Plan and/or the  tax-qualified defined contribution retirement plan designated by Purchaser (the “Purchaser  401(k) Plan”) to permit each Continuing Employee to make rollover contributions of “eligible  rollover distributions” (within the meaning of Section 401(a)(31) of the Code, including of loans)  in the form of cash, notes (in the case of loans) or a combination thereof, in an amount equal to  the full account balance distributed or distributable to such Continuing Employee from the Bank  401(k) Plan to the Purchaser 401(k) Plan.  Each Continuing Employee shall become eligible to  participate in the Purchaser 401(k) Plan on the Closing Date (giving effect to the service  crediting provisions of Section 5.10(b)); it being agreed that it is intended that there shall be no  gap in eligibility for participation in a tax-qualified defined contribution plan (giving effect to the  service crediting provisions of Section 5.10(b)).  (h)  Within thirty (30) days following the Closing Date, Purchaser shall (or  shall cause its applicable Affiliate to) grant each Continuing Employee who held (i) an equity  award in respect of American Depositary Receipts (“ADRs”) representing American Depositary  Shares, representing shares of common stock in Mitsubishi UFJ Financial Group, Inc., granted  pursuant to Seller’s Stock Bonus Plan or (ii) a cash-based long-term incentive award, in each  case, a portion of which is unvested as of immediately prior to the Closing (after giving effect to  any acceleration of vesting that would occur in connection with the Closing) and is forfeited in  connection with the Closing (any such unvested and forfeited portion, a “Forfeited Seller  Award”) a cash- or equity-based (such form as determined by Purchaser in its sole discretion)  incentive award (a “Replacement Award”) in an amount equal to the value of the corresponding  Forfeited Seller Award. The value of the Forfeited Seller Award shall be (x) in the case of a  

 

  -75-    Forfeited Seller Award that was an equity award, calculated by multiplying the number of ADRs  subject to such Forfeited Seller Award (including ADRs underlying dividend equivalents)  multiplied by the closing price of an ADR on the trading day immediately preceding the Closing  Date, and (y) in the case of a Forfeited Seller Award that was a cash award, equal to the cash  amount thereof. Each Replacement Award will vest based on the applicable Continuing  Employee’s continued employment with Purchaser and its Affiliates on the same vesting date(s)  and in accordance with the same terms and conditions (other than the achievement of  performance goals) as applied to the corresponding Forfeited Seller Award and will vest upon a  termination of employment after the Closing Date to the same extent provided in the terms and  conditions of the corresponding Forfeited Seller Award. The aggregate amount of the  Replacement Awards will be included in the calculation of TBV as a liability of the Bank (and,  for purposes of calculation of the Estimated Closing TBV, shall be calculated based on: (A) in  the case of a Forfeited Seller Award that was an equity award, (i) the number of ADRs subject to  the Forfeited Seller Awards assuming, solely for this purpose, that the Closing Date occurred on  the Estimated Closing Balance Sheet Date, and (ii) the closing price of an ADR on the trading  day immediately preceding the Estimated Closing Balance Sheet Date, and (B) in the case of a  Forfeited Seller Award that was a cash award, the cash amount thereof assuming, solely for this  purpose that the Closing Date occurred on the Estimated Closing Balance Sheet Date). Promptly  following the date of this Agreement, Sellers shall provide Purchaser with all information  necessary to implement the commitments to grant Replacement Awards as set forth in this  Section 5.10(h).    (i) The parties agree to cooperate in good faith, including by sharing  information about terminations of employment in a timely manner, to determine whether any  notification may be required under WARN as a result of the transactions contemplated by this  Agreement.  At the Closing, Seller shall provide to Purchaser a complete and accurate list of all  “employment losses” within the business, as that term is defined by WARN, which occurred  within the 90 calendar days preceding the Closing, which list shows the name, date of separation,  reason for separation, and facility or operating union of each employee who suffered an  employment loss in such period.  Purchaser or its applicable Affiliate (including the Bank and  the Transferred Subsidiaries following the Closing) shall be responsible for providing any notice  (or pay in lieu of notice) required pursuant to WARN with respect to a “mass layoff” or “plant  closing” (each as defined by WARN) involving Business Employees that occurs after the  Closing Date.  Seller shall be responsible for providing any such notice (or pay in lieu of notice)  with respect to a “mass layoff” or “plant closing” (each as defined by WARN) occurring prior to  or on the Closing Date, and prior to, on or after the Closing Date with respect to any Excluded  Employees.  (j) The provisions of this Section 5.10 are solely for the benefit of the parties  to this Agreement, and nothing in this Agreement, whether express or implied, is intended to, or  shall, (i) constitute the establishment or adoption of or an amendment to any employee benefit  plan for purposes of ERISA or otherwise be treated as an amendment or modification of any  Benefit Plan, New Plan or other benefit plan, agreement or arrangement, (ii) limit the right of  Sellers, the Bank, Purchaser or their respective Subsidiaries or Affiliates to amend, terminate or  otherwise modify any Benefit Plan, New Plan or other benefit plan, agreement or arrangement  following the Effective Time, (iii) interfere or restrict in any way the rights of Purchaser or any  of its Affiliates to discharge or terminate the services of any Continuing Employee or other  

 

  -76-    Person for any reason whatsoever, with or without cause, or (iv) create any third-party  beneficiary or other right (A) in any Person, including any current or former employee of the  Bank or any Transferred Subsidiary, any participant in any Benefit Plan, New Plan or other  benefit plan, agreement or arrangement (or any dependent or beneficiary thereof) or (B) to  continued employment with Sellers, the Bank, any Transferred Subsidiary or Subsidiary of  Purchaser or any of their respective Affiliates.  Section 5.11 Intellectual Property.  (a) Except as expressly provided in this Section 5.11(a), Purchaser, on behalf  of itself and its Affiliates (which, for the avoidance of doubt, shall include throughout this  Section 5.11(a) the Bank and the Transferred Subsidiaries following the Closing), acknowledges  and agrees that neither Purchaser nor any of its Affiliates is purchasing, acquiring, licensing or  otherwise obtaining any right, title or interest in, (i) any Intellectual Property owned by Sellers or  any of their Affiliates (except for the Intellectual Property owned by the Bank and the  Transferred Subsidiaries as of immediately prior to Closing), (ii) any Mark registered in the  name of either of the Sellers or any of their Affiliates (other than the Bank or any Transferred  Subsidiary), or (iii) the names “Mitsubishi”, “MUFG”, “BTMU”, “Intrepid”, “UFJ”, “MUTB”,  “Diamond”, “BOT” or “Bank of Tokyo” or any Internet domain name, social media handle,  Mark, word or name including, confusingly similar to or embodying any of such names or the  Marks set forth in subsection (ii), or any translations or confusingly similar derivation, variation  or adaptation of any of the foregoing, in each case, whether alone or in combination with any  other words, name or Marks, and whether registered or unregistered, including the Marks set  forth in Section 5.11(a) of the Sellers’ Disclosure Schedule (collectively, the “Seller Marks”),  and that to the extent the Bank or any Transferred Subsidiary has or acquires any such rights,  title or interest, Sellers shall cause the Bank and the Transferred Subsidiaries to assign all such  rights, title and interest to Sellers effective as of the Closing.   (b) Without limiting the foregoing, as promptly as reasonably practicable  following the Closing (and in any event prior to the end of the Transition Period), Purchaser  shall, and shall cause the Bank and the Transferred Subsidiaries to, (i) cease and discontinue all  uses of the Seller Marks and (ii) eliminate from, revise, paint over or otherwise obscure any  Seller Marks on any signage, inventory, and other public-facing materials (including any  publicly distributable documents and other digital or physical public-facing materials bearing a  Seller Mark) that are in the possession or under the control of Purchaser or any of its Affiliates  after the Closing; provided, that notwithstanding the foregoing, effective as of the Closing Date,  Sellers (on behalf of themselves and their Affiliates) hereby grant to the Bank and the  Transferred Subsidiaries, during the Transition Period, a limited, non-exclusive, non- transferable, non-sublicensable (except to service providers in connection with the provision of  services to the Bank and the Transferred Subsidiaries), royalty-free license to use the Seller  Marks in the operation of the businesses of the Bank and the Transferred Subsidiaries as such  Seller Marks were used therein as of immediately prior to the Closing.  The Bank and the  Transferred Subsidiaries shall use and display any Seller Marks licensed pursuant to this Section  5.11(b) only in a form and manner that does not violate applicable Law and that is consistent in  all material respects with the use or display of such Seller Marks in connection with the  businesses of the Bank and the Transferred Subsidiaries immediately prior to the Closing and  solely in association with goods or services of a quality equal to or greater than the quality of the  

 

  -77-    goods and services offered by the businesses of the Bank and the Transferred Subsidiaries prior  to the Closing.  Purchaser acknowledges and agrees that neither the Bank nor any Transferred  Subsidiary shall, after the Closing, use (except for use in accordance with the foregoing license),  adopt, register or apply for registration of any Seller Mark.  Notwithstanding the foregoing,  Purchaser and its Affiliates (including the Bank and the Transferred Subsidiaries) may use the  Seller Marks at all times after Closing (i) as required by applicable Law; (ii) subject to Section  5.6, in a neutral, non-trademark manner to describe the historical relationship between the Bank  and the Transferred Subsidiaries on the one hand, and the Sellers and its Affiliates (other than the  Bank and the Transferred Subsidiaries) on the other hand, which reference is factually accurate;  and (iii) subject to Section 5.6, in historical legal documents and materials that are not visible to  the public, in each case (i) through (iii), provided that Purchaser and its Affiliates shall not  modify or edit the appearance of the Seller Marks in connection with such uses.  (c) As promptly as reasonably practicable following the Closing (and in any  event prior to the end of the Transition Period), Seller shall, and shall cause its Affiliates to,  (i) cease and discontinue all uses of the Bank Marks and (ii) eliminate from, revise, paint over or  otherwise obscure any Bank Marks on any signage, inventory, and other public-facing materials  (including any publicly distributable documents and other digital or physical public-facing  materials bearing a Bank Mark) that are in the possession or under the control of the Sellers or  any of their Affiliates after the Closing; provided, that notwithstanding the foregoing, effective  as of the Closing Date, Purchaser (on behalf of itself and its Affiliates) hereby grants to the  Sellers and their Affiliates, during the Transition Period, a limited, non-exclusive, non- transferable, non-sublicensable (except to service providers in connection with the provision of  services to the Sellers and their Affiliates), royalty-free license to use the Bank Marks in the  operation of the businesses of the Sellers and their Affiliates as such Bank Marks were used  therein as of immediately prior to the Closing.  Prior to Closing, the Sellers shall provide  Purchaser with reasonable details regarding the anticipated use of such Bank Marks during the  Transition Period.  The Sellers and their Affiliates shall use and display any Bank Marks licensed  pursuant to this Section 5.11(c) only in a form and manner that does not violate applicable Law  and that is consistent in all material respects with the use or display of such Bank Marks in  connection with the businesses of the Sellers and their Affiliates immediately prior to the Closing  and solely in association with goods or services of a quality equal to or greater than the quality of  the goods and services offered by the businesses of the Sellers and their Affiliates prior to the  Closing.  Sellers acknowledge and agree that neither the Sellers nor any of their Affiliates shall,  after the Closing, use (except for use in accordance with the foregoing license), adopt, register or  apply for registration of any Bank Mark.  Notwithstanding the foregoing, Sellers and their  Affiliates may use the Bank Marks at all times after Closing (i) as required by applicable Law;  (ii) subject to Section 5.6, in a neutral, non-trademark manner to describe the historical  relationship between the Bank and the Transferred Subsidiaries on the one hand, and the Sellers  and its Affiliates (other than the Bank and the Transferred Subsidiaries) on the other hand, which  reference is factually accurate; and (iii) subject to Section 5.6, in historical legal documents and  materials that are not visible to the public, in each case (i) through (iii), provided that Sellers and  their Affiliates shall not modify or edit the appearance of the Bank Marks in connection with  such uses.  (d) Effective upon the Closing Date, Sellers shall cause the Bank and the  Transferred Subsidiaries to assign to Sellers (or an Affiliate of Sellers designated by Sellers) all  

 

  -78-    (i) Shared Software; and (ii) Intellectual Property (other than Marks and Shared Software) that is  owned by the Bank or any of the Transferred Subsidiaries and primarily used in, or primarily  related to, the businesses of the Seller and its Affiliates (other than the Bank and the Transferred  Subsidiaries, but including (A) the businesses conducted by the Bank and the Subsidiaries  described in Schedule 4 attached hereto, and (B) the Excluded Assets and Liabilities)  (collectively, “Excluded IP”).  (e) Effective upon the Closing Date, Sellers shall cause the Seller to assign to  the Bank all of its right, title and interest in and to (i) the Highmark Registrations on a form  reasonably acceptable to the parties and (ii) all Intellectual Property (other than Marks and  Shared Software) that is owned by Sellers or their Affiliates (other than the Bank or Transferred  Subsidiaries) and exclusively used in, or exclusively related to, the businesses of the Bank and  the Transferred Subsidiaries (other than the (A) the businesses conducted by the Bank and the  Subsidiaries described in Schedule 4 attached hereto, and (B) the Excluded Assets and  Liabilities).  (f) Effective upon the Closing Date, the Sellers, on behalf of themselves and  their Affiliates, hereby grant to Purchaser and its Affiliates a personal, irrevocable, perpetual,  worldwide, fully-paid-up, royalty-free and non-transferable (except as set forth in Section 8.4, to  an Affiliate or in connection with a merger, reorganization or one or more sales of any of the  Banks’ or the Transferred Subsidiaries’ current businesses or lines of business), non- sublicensable (except to service providers in connection with the provision of services to the  Purchaser and its Affiliates), non-exclusive license to use and exercise all rights in Intellectual  Property under the Retained Shared IP to make, have made, sell, offer for sale, import, use and  otherwise exploit, provide, distribute or dispose of (in each case, directly or indirectly) all goods  or services offered or used by the businesses of the Bank and the Transferred Subsidiaries prior  to the Closing, and natural evolutions thereof, and to practice and have practiced any method or  process in connection therewith.  (g) Effective upon the Closing Date, Purchaser, on behalf of itself and its  Affiliates (including the Bank and the Transferred Subsidiaries), hereby grants to the Sellers and  their Affiliates a personal, irrevocable, perpetual, worldwide, fully-paid-up, royalty-free and non- transferable (except as set forth in Section 8.4, to an Affiliate or in connection with a merger,  reorganization or one or more sales of any of the Sellers’ or their Affiliates’ retained businesses  or lines of business), non-sublicensable (except to service providers in connection with the  provision of services to Sellers and their Affiliates), non-exclusive license to use and exercise all  rights in Intellectual Property under the Transferred Shared IP to make, have made, sell, offer for  sale, import, use and otherwise exploit, provide, distribute or dispose of (in each case, directly or  indirectly) all goods or services offered or used by the businesses of the Sellers and its Affiliates  (excluding the Bank and Transferred Subsidiaries) prior to the Closing, and natural evolutions  thereof, and to practice and have practiced any method or process in connection therewith.  (h) To the extent either Party does not have a tangible embodiment of any  Intellectual Property to be owned by it or its Affiliates after Closing or licensed to it or its  Affiliates pursuant to Section 5.11(f) and Section 5.11(g), the other Party shall deliver a copy of  such tangible embodiment, at the first Party’s reasonable expense for licensed Intellectual  

 

  -79-    Property, promptly following a written request from the first Party, provided that the other Party  has a tangible embodiment of such Intellectual Property in its possession or control.  Section 5.12  Intercompany Items.  Except as set forth in Section 5.12 of the  Sellers’ Disclosure Schedule, prior to the Closing, Sellers shall take, or cause to be taken, all  such actions necessary so that (a) all Related Party Contracts are terminated (except as necessary  to effectuate the delivery of services under the Transitional Services Agreement or Reverse  Transitional Services Agreement) and (b) all outstanding Intercompany Receivables or  Intercompany Payables shall have been settled or paid; provided that the parties hereby agree to  work in good faith to agree upon mutually acceptable procedures for the settlement or payment  of (i) such amounts in a tax-efficient manner and (ii) any trailing activities.  Section 5.13 Insurance.  Following the Closing Date, the Bank and the  Transferred Subsidiaries shall no longer be insured under any insurance policy of Sellers or any  of their Affiliates, which are identified in Section 3.16 of the Sellers’ Disclosure Schedule.  Section 5.14 Excluded Assets and Liabilities Transfer.  (a) Prior to the Closing and on the terms and conditions contained in the  Excluded Assets and Liabilities Purchase and Assumption Agreement attached as Annex A  hereto, with any changes or modifications thereto mutually agreed by Sellers and Purchaser (the  “P&A Agreement”), Sellers shall cause Bank and the Transferred Subsidiaries to transfer to  Sellers and their Affiliates (other than the Bank or the Transferred Subsidiaries), as designated  by the Sellers, and Sellers shall, or cause their Affiliates to, purchase and assume the assets and  liabilities described in Schedule 4 (such assets and liabilities, collectively, the “Excluded Assets  and Liabilities” and such transfer or transfers, together with such other transactions described in  the Excluded Assets and Liabilities Purchase and Assumption Agreement, the “Excluded Assets  and Liabilities Transfer”). Purchaser and Seller shall work in good faith to finalize the form of  P&A Agreement (including the schedules thereto) within thirty (30) days of the date of this  Agreement. Subject to the preceding sentence, Seller shall deliver to Purchaser for its review  substantially complete drafts of the schedules to the P&A Agreement within fifteen (15) days of  the date of this Agreement.  (b) Sellers, the Bank and their Affiliates shall undertake the matters  contemplated by this Section 5.14 in a manner that does not, in any way prevent or impair in any  material respect the consummation of the Transactions.  Section 5.15 Special Dividend Transaction.  Immediately prior to the Closing,  and subject to the satisfaction or written waiver of all of the conditions to Closing set forth in  ARTICLE 6 (other than those conditions that by their nature are to be satisfied at the Closing but  subject to the fulfillment or waiver of those conditions; provided that such conditions would be  satisfied if the Closing were to then occur), Bank shall dividend or distribute to Seller, or  repurchase a portion of its Shares from Seller for, the Special Dividend Amount for which the  Special Dividend Approval has been obtained (such transaction, the “Special Dividend  Transaction”).  Sellers shall cause the Bank to use reasonable best efforts to obtain the Special  Dividend Approval for the declaration and payment of a dividend by the Bank that would result  in there not being any Excess Capital; provided that if such dividend is not approved by the  

 

  -80-    OCC, Sellers shall continue to cause the Bank to use reasonable best efforts to obtain approval  for the maximum amount of dividend by the Bank that is reasonably capable of being approved  by the OCC.  In the event there is expected to be any Excess Capital, then Sellers shall cause the  Bank to hold, as of the Closing, cash and cash equivalents that are no less than the Excess  Capital Amount.  Section 5.16 Excess Capital.  If there is any Excess Capital:  (a) On or prior to the fifth anniversary of the Closing Date (or the next  Business Day if such day is not a Business Day), the Purchaser shall deliver to Seller an amount  equal to the Excess Capital (the “Excess Capital Amount”); provided that in no event shall the  Excess Capital Amount exceed $5,000,000,000.  Purchaser shall have the right to deliver all or  any portion of the Excess Capital Amount at any time and from time to time prior to the fifth  anniversary of the Closing Date.  The foregoing shall be an unsecured payment obligation of  Purchaser that is not transferrable or assignable by Seller.   (b) Purchaser shall use its reasonable best efforts to deliver at least  $1,000,000,000 of the Excess Capital Amount (or, if the Excess Capital Amount is less than  $1,000,000,000, all of the Excess Capital Amount) at the time of the conversion of the Bank’s  systems to the Purchaser’s systems (or within three months thereafter).    (c) The payments contemplated by clauses (a) and (b) above shall be made to  one or more accounts which have been designated by Seller in writing at least three (3) Business  Days prior to the payment thereof.   (d) Subject to the receipt by Seller of any Excess Capital Amount, Seller shall  deliver to Purchaser a receipt confirming that Seller has received such amount.   Section 5.17 Release.  At or prior to the Closing, subject to Section 5.12 and the  provisions of the Transitional Services Agreement, Reverse Transitional Services Agreement,  and any other Contract that may be entered into among the parties following the Closing, (a) the  Bank and the Transferred Subsidiaries shall execute releases acquitting, releasing and  discharging Sellers, any of their Affiliates or Representatives (including the directors of the  Bank) from any and all liabilities to the Bank and the Transferred Subsidiaries that exist as of the  Closing Date or that arise in the future from events or occurrences taking place prior to or as of  the Closing Date (provided that the foregoing shall not apply to the extent that any such Person is  a Purchaser Indemnified Party exercising rights under Section 8.1), and (b) Sellers shall execute  releases acquitting, releasing and discharging the Bank and the Transferred Subsidiaries and their  respective Representatives from any and all liabilities to Sellers or its Affiliates (other than the  Bank and the Transferred Subsidiaries) that exist as of the Closing Date or that arise in the future  from events or occurrences taking place prior to or as of the Closing Date and from any  obligations under Contracts to which Sellers or any of their Affiliates (other than the Bank and  the Transferred Subsidiaries) is a party (x) under which the Bank and the Transferred  Subsidiaries are provided with services, property or other assets that are used in the conduct of  their respective businesses, (y) that contain any exclusive dealing or third party referral  arrangements imposed on the Bank or the Transferred Subsidiaries, or any non-competition or  non-solicitation covenants that purport to limit the freedom from and after the Closing of the  

 

  -81-    Bank and the Transferred Subsidiaries to compete in any line of business or with any Person or  in any area, or (z) for which there are any costs or expenses that would be incurred by the Bank  and the Transferred Subsidiaries from and after the Closing in connection with the termination of  such Contracts.  Section 5.18 Further Assurances.  Before, at and after the Closing, consistent  with the terms and conditions hereof, Sellers and Purchaser shall, and shall cause each of their  respective Subsidiaries to, and shall use reasonable best efforts to cause their Affiliates to,  promptly execute, acknowledge and deliver such instruments, certificates and other documents  and take such other action as a party may reasonably require in order to carry out any of the  Transactions.  Following the Closing, the parties shall cooperate with one another to prepare and  file all documents and forms and amendments thereto as may be required by applicable Law with  respect to the Transactions.  Section 5.19 Removal; Resignations. On or prior to the Closing Date, Sellers  will deliver to Purchaser evidence of the removal of, or executed resignations of, each director  and/or officer of the Bank and each Transferred Subsidiary who is an employee of Sellers or any  of their Affiliates (other than solely the Bank or any Transferred Subsidiary) from his or her  position as director and/or officer of the Bank and/or each applicable Transferred Subsidiary,  effective as of the Effective Time.  Section 5.20 D&O Indemnification and Insurance.  (a) Except with respect to any case involving fraud, from and after the  Effective Time, in the event of any threatened or actual Action in the U.S., whether civil,  criminal or administrative, in which any Person who is now, or has been at any time prior to the  date of this Agreement, or who becomes prior to the Effective Time, a director or officer of the  Bank or any Transferred Subsidiary, or who is or was serving at the request of the Bank or any  Transferred Subsidiary as a director or officer or agent of another Person, is, or is threatened to  be,  made a party or witness based in whole or in part on, or arising in whole or in part out of, or  pertaining in whole or in part to, (i) the fact that such Person is serving or did serve in any such  capacity, (ii) this Agreement or the Transactions, whether asserted or arising before or after the  Effective Time, (iii) any liability or obligation of the Bank or any Transferred Subsidiary, or  (iv) any action or failure to take action by any such director, officer or agent in his or her  capacity as such occurring in whole or in part prior to the Effective Time, the Bank shall, and  Purchaser shall cause the Bank to, indemnify, defend and hold harmless, as and to the fullest  extent permitted or required by applicable Law, each such Person against any Losses (including  reimbursement for legal and other fees and expenses incurred in advance of the final disposition  of any such matter or investigation to the fullest extent permitted by applicable Law, provided  that the Person to whom expenses are advanced provides an undertaking to repay such advances  if it is ultimately determined that such Person is not entitled to indemnification), judgments, fines  and amounts paid in settlement in connection with any such threatened or actual Action in the  United States.  Such Persons shall reasonably cooperate with the Purchaser, the Bank and their  Subsidiaries in the defense of any such threatened or actual Action, and none of Purchaser, the  Bank or the Transferred Subsidiaries shall have any liability hereunder in respect of any  compromise or settlement of any Action effected without the prior written consent of Purchaser  (which consent shall not be unreasonably withheld, conditioned or delayed).  

 

  -82-    (b) Without limiting the indemnification and other rights provided in Section  5.20(a), all rights to indemnification and all limitations on Losses existing in favor of the  directors, officers and employees of the Bank and the Transferred Subsidiaries as provided in  their respective Constituent Documents as in effect as of the date of this Agreement or in any  indemnification agreement in existence on the date of this Agreement with the Bank or any  Transferred Subsidiary shall continue in full force and effect to the fullest extent permitted by  Law and shall be honored by the Bank and the Transferred Subsidiaries or their respective  successors as if they were the indemnifying party thereunder, without any amendment thereto.   At Closing, or as soon as practicable after Closing, the Purchaser shall, and shall cause the Bank,  to use its reasonable best efforts to obtain a “tail” insurance policy with respect to directors’ and  officers’ liability insurance that covers for a period of six (6) years from the Effective Time the  individuals serving as directors and officers of the Bank or any Transferred Subsidiary  immediately prior to the Effective Time for acts or omissions occurring prior to the Effective  Time, with coverage and amounts appropriate for the size and scope of the Bank and the  Transferred Subsidiaries in amounts consistent with the coverage existing as of the Closing, with  respect to acts or omissions occurring prior to the Closing that were committed by such officers  and directors in their capacity as such; provided, however, that in no event shall the Purchaser or  the Bank be required to expend for such insurance policy an annual premium amount in excess  of two-hundred fifty percent (250%) of the annual premiums currently paid by the Bank for such  insurance.  Section 5.21 Other Offers.  None of the Sellers, their Affiliates, the Bank or any  Transferred Subsidiary shall, directly or indirectly, through any representative or otherwise,  solicit or entertain offers from, negotiate with or in any manner encourage, discuss, accept or  consider any proposal of any other person relating to the acquisition of the Shares, or  substantially all the assets, of the Bank (an “Acquisition Proposal”) (other than acquisition of  “other real estate owned” property held by the Bank in the ordinary course of its business in  accordance with past practices), or otherwise disclose any non-public information or afford  access to the properties, books or records of the Bank to any person or entity who has indicated  an intention to make or has made an Acquisition Proposal.  Section 5.22 Other Transaction Documents.  On the Closing Date, Purchaser (or  the Purchaser Bank) and Sellers shall cause to be executed and delivered (i) a Transitional  Services Agreement, substantially in the form attached hereto as Annex B (the “Transitional  Services Agreement”), (ii) a Reverse Transitional Services Agreement, substantially in the form  attached hereto as Annex C (the “Reverse Transitional Services Agreement”), and (iii) a  Registration Rights Agreement, substantially in the form attached hereto as Annex D (the  “Registration Rights Agreement”), in each case with any changes or modifications thereto  mutually agreed by Sellers and Purchaser.  Section 5.23 Treatment of Bank Indebtedness.  At and after the effective time of  the Bank Merger, for any debt of the Bank or any Transferred Subsidiary set forth on Section  5.23 of the Sellers’ Disclosure Schedule, Purchaser, Purchaser Bank or another Subsidiary of  Purchaser shall, to the extent permitted thereunder and required thereby, defease, repay or  assume the due and punctual performance and observance of the covenants to be performed by  the Bank under the definitive documents governing such indebtedness, and the due and punctual  payment of the principal of (and premium, if any) and interest on, the notes governed thereby.  In  

 

  -83-    connection therewith, prior to the Effective Time, Purchaser and the Sellers shall, and shall cause  the their respective Subsidiaries to, cooperate and use reasonable best efforts to (a) execute and  deliver any supplemental indentures, officer’s certificates or other documents, and (b) provide  any opinion of counsel to the trustee thereof, in each case, required to make such defeasance,  repayment or assumption effective as of the effective time of the Bank Merger or Closing, as  may be elected by Purchaser in accordance with the definitive documents governing such  indebtedness.  Section 5.24 Updated Financial Information.  (a) From the date of this Agreement until the Closing Date or the termination  of this Agreement pursuant to ARTICLE 7, and subject to Section 5.24(c), Seller will provide to  Purchaser (i) at the same time that it receives such materials from the Bank, copies of all future  monthly managerial financial packages of the type included in Section 1.3 of the Dataroom and  (ii) as promptly as practicable, but in no event later than the thirtieth (30th) day following the end  of the relevant quarter-end month, copies of all future Bank Call Reports.  Each of the quarterly  unaudited consolidated financial statements contained in the Bank Call Reports delivered  pursuant to the foregoing clause (ii) will fairly present in all material respects the consolidated  financial position of the Bank and its Subsidiaries, as of the dates thereof, and their respective  results of operations and cash flows for the periods then ended, in each case, in conformity with  GAAP and/or requirements under applicable Law (including applicable regulatory accounting  principles) applied on a consistent basis (except as may be indicated in the notes thereto).  (b) If requested by Purchaser, and subject to Section 5.24(c), Sellers will  prepare Carveout Financial Statements as promptly as practicable after January 1, 2022.  Sellers  shall keep Purchasers reasonably informed on a current basis regarding the preparation of such  Carveout Financial Statements.  For purposes of this Agreement, “Carveout Financial  Statements” means (a) a consolidated balance sheet for the Bank and the Transferred  Subsidiaries (taking into account the Excluded Assets and Liabilities Transfer) as of  December 31, 2021, and the related consolidated statements of comprehensive income for the  year ended December 31, 2021, and (b) a consolidated balance sheet for Bank and the  Transferred Subsidiaries (taking into account the Excluded Assets and Liabilities Transfer) as of  the end of each fiscal quarter subsequent to December 31, 2021, and the related consolidated  statements of income for the fiscal year-to-date period then ended.  The Carveout Financial  Statements will be prepared on a consistent basis as the carveout financial statements included in  Section 1.3 of the Dataroom. If Purchaser is required to file financial statements related to the  acquired business of the Bank and the Transferred Subsidiaries after the Closing for SEC  reporting purposes (including pursuant to Item 9.01 of Form 8-K), then at the request of  Purchaser, prior to Closing, Sellers shall, and shall cause the Bank and the Transferred  Subsidiaries to, assist the Purchaser with the preparation of the financial statements and financial  information required by the applicable requirements of Regulation S-X promulgated by the SEC,  including by facilitating the audit or review, as required, of such financial statements and  financial information by the Bank’s independent auditors in accordance with applicable Law and  auditing standards; provided that Purchaser shall reimburse Seller for all reasonable, documented  out-of-pocket expenses of the Bank’s independent auditors in connection with such audit or  review.  

 

  -84-    (c) Notwithstanding the foregoing, none of the Sellers, the Bank or any of the  Transferred Subsidiaries shall be required to disclose any information when disclosure (A) could  result in the loss of any legal privilege or contravene any Law (including those related to  confidential supervisory information), (B) could result in the disclosure of any trade secrets or  competitively sensitive information of Seller or its Affiliates or of a third party to whom Seller  and its Affiliates have confidentiality obligations or (C) could result in Purchaser gaining access  to any information solely relating to the Excluded Assets and Liabilities; provided that the parties  shall use commercially reasonable efforts to make other arrangements (including redacting  information or making substitute disclosure arrangements) that would enable such access or  furnishing of information to Purchaser to occur without contravening any of the foregoing  clauses (A), (B) and (C).  All information received pursuant to this Section 5.24 shall be  governed by the terms of Section 5.5.    Section 5.25 Certain Commercial Arrangements.  Sellers and Purchaser agree  that, following the date hereof, they will make good faith efforts towards executing and  delivering, as of the Closing, Contracts that would implement the proposed business  relationships, including (1) financial service arrangements for Japanese corporate and individual  clients to provide services that are similar to such services as provided by Sellers and the Bank  prior to Closing; (2) collaboration in transaction banking services; (3) collaboration in financial  technology business; and (4) other areas as mutually agreed to by the parties, in each case, on  mutually acceptable terms taking into account each party’s risk appetite and expected economic  returns.  Section 5.26 Transition.    (a) Promptly after the date hereof, Seller and Purchaser shall each appoint  three (3) representatives (or another number of representatives as otherwise agreed to by Seller  and Purchaser) as their respective transition representatives (each, a “Transition  Representative”).  Commencing on and following their respective appointment, and in all cases  subject to applicable Law, the Transition Representatives shall be responsible for the  development and implementation of a transition plan describing milestones, responsible parties,  and timelines for the integration and migration planning of the businesses of the Bank and the  Transferred Subsidiaries, on the one hand, and the businesses of the Purchaser and its  Subsidiaries, on the other hand, effective as of the Closing Date or such later date as may be  determined by Purchaser (the “Transition Plan”), including the scope of services to be provided  pursuant to the Transitional Services Agreement and the Reverse Transitional Services  Agreement, respectively, and the process and timeline for identifying such services, which plan  shall be completed prior to the Closing Date.  In all cases subject to applicable Law, the  Transition Representatives and any other appropriate personnel shall meet (in person or virtually)  in accordance with the governance and procedural terms established therefor to discuss the  progress of the development and implementation of the Transition Plan and mutually agree in  good faith on any necessary modifications to the Transition Plan to ensure that the Transition  Plan is implemented in an orderly manner.  (b) The parties shall agree to take such actions set forth on Section 5.26(b) of  the Sellers’ Disclosure Schedule.  

 

  -85-    Section 5.27 Additional Covenant.  Sellers agree to take such actions set forth in  Section 5.27 of Sellers’ Disclosure Schedule.  ARTICLE 6  CONDITIONS TO CLOSING  Section 6.1 Conditions to the Obligations of Purchaser and Sellers.  The  obligations of the parties hereto to effect the Closing are subject to the satisfaction (or waiver)  prior to the Closing of the following conditions:  (a) No Prohibitions.  No Governmental Authority of competent jurisdiction  shall have enacted, issued, promulgated, enforced or entered any Law or Government Order  permanently restraining, enjoining or otherwise prohibiting or making illegal the consummation  of the Transactions;  (b) Required Approvals.  All Requisite Regulatory Approvals set forth in  Schedule 3 hereto shall have been obtained, and any applicable waiting periods relating thereto  shall have expired or been terminated early;   (c) Excluded Assets and Liabilities Transfer.  The Excluded Assets and  Liabilities Transfer shall have been consummated pursuant to this Agreement, subject to Section  2.7 hereof; and  (d) Special Dividend Transaction. The Special Dividend Transaction shall  have been consummated; provided that the Estimated Closing TBV shall not be less than the  Target Closing TBV and shall not be more than the Maximum Closing TBV.  Section 6.2 Conditions to the Obligations of Purchaser.  The obligation of  Purchaser to effect the Closing is subject to the satisfaction (or waiver) prior to the Closing of the  following conditions:  (a) Representations and Warranties.  (i) Each of the Sellers’ Fundamental  Warranties shall be true and correct in all but de minimis respects on and as of the date hereof  and the Closing Date; and (ii) other than the Sellers’ Fundamental Warranties, the  representations and warranties of Sellers contained in ARTICLE 3 of this Agreement (not giving  effect to any “material” or “Material Adverse Effect” or other similar qualifiers) shall be true and  correct as of the Closing Date (except for any such representations and warranties that are made  as of another specific date which shall be required to be so true and correct only as of such date),  except where the failures of such representations and warranties in clause (ii) to be true and  correct as of such dates has not had, individually or in the aggregate, a Material Adverse Effect;  (b) Covenants.  All the covenants and agreements required by this Agreement  to be complied with and performed by either of Sellers, the Bank or any Transferred Subsidiary  on or before the Closing Date shall have been duly complied with and performed in all material  respects;  

 

  -86-    (c) Deliverables.  Purchaser shall have received all certificates, documents,  evidence and agreements required to be delivered to it at the Closing under the Agreement, all in  form and substance reasonably satisfactory to Purchaser;   (d) Officer’s Certificate.  Purchaser shall have received a certificate, signed on  behalf of Sellers by a duly authorized officer of Seller Holdco and dated the Closing Date, (i)  certifying that the conditions set forth in Section 6.2(a) through Section 6.2(c) have been  satisfied; and   (e) Additional Condition.  The condition set forth in Section 6.2(e) of Sellers’  Disclosure Schedule.  Section 6.3 Conditions to the Obligations of Sellers.  The obligation of Sellers  to effect the Closing is subject to the satisfaction (or waiver) prior to the Closing of the following  conditions:  (a) Representations and Warranties.  (i) Each of the Purchaser’s Fundamental  Warranties shall be true and correct in all but de minimis respects on and as of the date hereof  and the Closing Date; and (ii) other than the Purchaser’s Fundamental Warranties, the  representations and warranties of Purchaser contained in ARTICLE 4 of this Agreement (not  giving effect to any “material” or “Purchaser Material Adverse Effect” or other similar  qualifiers) shall be true and correct as of the Closing Date (except for any such representations  and warranties that are made as of another specific date which shall be required to be so true and  correct only as of such date), except where the failures of such representations and warranties in  clause (ii) to be true and correct as of such dates has not had, individually or in the aggregate, a  Purchaser Material Adverse Effect;  (b) Covenants.  All the covenants and other agreements required by this  Agreement to be complied with and performed by Purchaser on or before the Closing Date shall  have been duly complied with and performed in all material respects;  (c) Deliverables.  Sellers shall have received all certificates, documents,  evidence and agreements required to be delivered to it at the Closing pursuant to Section 2.2(c);  (d) Officer’s Certificate.  Sellers shall have received a certificate, signed on  behalf of Purchaser by a duly authorized officer of Purchaser and dated the Closing Date, to the  effect that the conditions set forth in Section 6.3(a) through Section 6.3(c) have been satisfied;  and  (e) Opinion of Counsel.  Sellers shall have received a written opinion of  counsel with respect to the validity and due authorization of the shares of Purchaser Common  Stock comprising the Stock Consideration and other customary matters with respect to the due  incorporation and valid existence of Purchaser and such shares being legally issued, fully paid  and non-assessable; and  (f) NYSE Listing.  The shares of Purchaser Common Stock that shall be  issuable pursuant to this Agreement have been authorized for listing on the NYSE, subject to  official notice of issuance.  

 

  -87-    ARTICLE 7  TERMINATION  Section 7.1 Termination.  This Agreement may be terminated at any time prior  to the Closing Date:  (a) by mutual written consent of Purchaser and Seller Holdco;  (b) by Purchaser or Seller Holdco by giving written notice to the other party if  (i) any Governmental Authority that must grant a Requisite Regulatory Approval has denied  such approval and such denial has become final and non-appealable or (ii) any Governmental  Authority of competent jurisdiction shall have issued a final non-appealable order enjoining or  otherwise prohibiting the consummation of the Transactions;  (c) by Purchaser or Seller Holdco by giving written notice to the other party if  the Closing shall not have occurred on or before the Outside Date, unless the failure of the  Closing to occur by such date arises out of, or results from, a material breach by the party  seeking to terminate this Agreement of any representation, warranty, covenant or agreement of  such party or its Affiliates in this Agreement; provided that, at the option of either party (if such  party would be permitted to terminate this Agreement pursuant to this Section 7.1(c)), the  Outside Date may be extended, by giving written notice to the other party, to December 31, 2022  in the event that the Requisite Regulatory Approvals have not yet been obtained and are  reasonably capable of being obtained during such extension period;  (d) by Purchaser by giving written notice to the Seller Holdco, if Sellers have  breached any of their covenants or agreements or any of its representations or warranties  contained in this Agreement, which breach, individually or in the aggregate, would cause the  conditions set forth in Section 6.2 to not be satisfied, and such breach is not cured within 45 days  following written notice of such breach to Seller Holdco or cannot, by its nature, be cured prior  to the Outside Date; provided that Purchaser is not then in material breach of any representation,  warranty, covenant or other agreement contained in this Agreement; or  (e) by Seller Holdco by giving written notice to the Purchaser, if Purchaser  has breached any of its covenants or agreements or any of its representations or warranties  contained in this Agreement, which breach, individually or in the aggregate, would cause the  conditions set forth in Section 6.2(e) to not be satisfied, and such breach is not cured within 45  days following written notice to Purchaser of such breach or cannot, by its nature, be cured prior  to the Outside Date; provided that Seller Holdco is not then in material breach of any  representation, warranty, covenant or other agreement contained in this Agreement.  Section 7.2 Effect of Termination.  In the event of termination of this  Agreement as provided in Section 7.1, this Agreement shall forthwith become void and have no  effect, and none of Sellers, Purchaser, any of their respective Affiliates or any of the officers,  directors or stockholders of any of them shall have any liability of any nature whatsoever  hereunder, or in connection with the Transactions, except (i) Section 5.5 (Confidentiality) and  ARTICLE 8 (General Provisions) shall survive any termination of this Agreement, and (ii)  termination will not relieve any party from liability for any willful and material breach prior to  

 

  -88-    such termination.  For purposes of this Section 7.2, a willful and material breach means a  material breach that is a consequence of an act undertaken by the breaching party with the actual  knowledge or reasonable expectation that the taking of such act would, or would reasonably be  expected to, cause a breach of this Agreement.  ARTICLE 8  GENERAL PROVISIONS  Section 8.1 Survival of Representations and Warranties; Indemnification.  (a) The representations and warranties of the parties shall survive until the  date that is eighteen (18) months following the Closing Date, provided that the Sellers’  Fundamental Warranties and the Purchaser’s Fundamental Warranties shall survive until the  expiration of the applicable statute of limitations, and provided, further, that survival of the  representations and warranties set forth in Section 3.15 shall be governed by Section 5.9(j).   Except as provided in Section 5.9(j), the covenants and agreements contained in this Agreement  shall survive the Effective Time until fully performed in accordance with their respective terms,  provided that the covenants and agreements contained in this Agreement that by their terms  apply or are to be performed entirely prior to the Effective Time shall only survive until the end  of the period specified in the immediately preceding sentence.  Notwithstanding the preceding  sentences, any breach of representation, warranty, covenant or agreement in respect of which  indemnity may be sought under this Agreement shall survive the time at which it would  otherwise terminate if (and to the extent) prior to such time notice of the breach giving rise to  such right of indemnity shall have been given in accordance with this Section 8.1 to the party  against whom indemnity is sought, in which case such breach shall survive until final resolution  of such claim (or, if earlier, the latest date permitted by applicable Law).  (b) Effective at and after the Closing and subject to the other provisions of  this Section 8.1, Seller Holdco hereby agrees to indemnify Purchaser and its Affiliates (including  the Bank and the Transferred Subsidiaries) and their respective Representatives (collectively,  the “Purchaser Indemnified Parties”) against and agrees to hold each of them harmless from, and  reimburse any Purchaser Indemnified Party for, any and all Losses suffered by a Purchaser  Indemnified Party as a result of or relating to:  (i) any breach or inaccuracy of any Sellers’ Fundamental Warranty or  the certificate delivered at Closing in respect thereof determined without giving effect to  any limitations as to materiality or “Material Adverse Effect” set forth therein;  (ii) any breach or inaccuracy of any representation and warranty made  by Sellers set forth in this Agreement or the certificate delivered at Closing in respect  thereof (other than the Sellers’ Fundamental Warranties and the representations and  warranties set forth in Section 3.15 (which matters are addressed in Section 5.9)) without  giving effect to any limitations as to materiality or “Material Adverse Effect” set forth  therein (other than in Section 3.6(f));  

 

  -89-    (iii) any breach, failure, nonfulfillment or default by Sellers in the  performance of or compliance with any of the covenants or agreements made or to be  performed by Sellers pursuant to this Agreement;  (iv) any Transaction Expenses that were not (A) paid in full at or prior  to the Closing or (B) borne entirely by Sellers or any of its Affiliates (other than the Bank  and the Transferred Subsidiaries);   (v) the Excluded Assets and Liabilities (including the Excluded  Subsidiaries) and the Excluded Employees;   (vi) the matters set forth on Section 8.1(b)(vi) of Sellers’ Disclosure  Schedule; and  (vii) the matters set forth on Section 8.1(b)(vii) of Sellers’ Disclosure  Schedule.  Notwithstanding any other provision to the contrary, Seller Holdco shall not be  required to indemnify or hold harmless any Purchaser Indemnified Party against, or reimburse  any Purchaser Indemnified Party for, any Losses pursuant to Section 8.1(b)(ii) (A) with respect  to any claim (or series of claims arising from similar or related underlying facts, events or  circumstances) unless such claim (or series of claims arising from similar or related underlying  facts, events or circumstances) involves Losses in excess of $200,000 (nor shall any such claim  (or series of claims arising from similar or related underlying facts, events or circumstances) that  does not meet such $200,000 threshold be applied to or considered for purposes of calculating  the aggregate amount of the Purchaser Indemnified Parties’ Losses for which Seller Holdco has  responsibility under Section 8.1(b)(ii)), and (B) until the aggregate amount of the Purchaser  Indemnified Parties’ Losses exceeds $80,000,000 (such amount, the “Basket”), after which  Seller Holdco shall be obligated for all such Losses of the Purchaser Indemnified Parties in  excess of the amount of the Basket, subject to the immediately next sentence.  Notwithstanding any other provision to the contrary, (A) the cumulative aggregate  indemnification obligation of Seller Holdco under Section 8.1(b)(ii) shall not exceed  $800,000,000 (the “Cap”), (B) the cumulative aggregate indemnification obligation of Seller  Holdco under Section 8.1(b)(ii), Section 8.1(b)(vi) and Section 8.1(b)(vii) shall not exceed  $1,200,000,000, and (C) the cumulative aggregate indemnification obligation of Seller Holdco  under Section 8.1(b)(i) and (b)(ii) shall not exceed the Purchase Price (as adjusted hereunder),  other than in respect of Losses arising as a result of fraud.  (c) Effective at and after the Closing and subject to the other provisions of  this Section 8.1, Purchaser hereby indemnifies Seller Holdco and its Affiliates and their  respective Representatives (collectively, the “Seller Indemnified Parties”) against and agrees to  hold each of them harmless from, and reimburse any Seller Indemnified Party for, any and all  Losses suffered by a Seller Indemnified Party as a result of or relating to:  (i) any breach or inaccuracy of any Purchaser’s Fundamental  Warranty or the certificate delivered at Closing in respect thereof determined without  

 

  -90-    giving effect to any limitations as to materiality or “Purchaser Material Adverse Effect”  set forth therein;  (ii) any breach or inaccuracy of any representation and warranty made  by Purchaser set forth in this Agreement or the certificate delivered at Closing in respect  thereof (other than the Purchaser’s Fundamental Warranties) determined without giving  effect to any limitations as to materiality or “Purchaser Material Adverse Effect” set forth  therein; or  (iii) any breach, failure, nonfulfillment or default by Purchaser in the  performance of or compliance with any of the covenants or agreements made or to be  performed by Purchaser pursuant to this Agreement.  Notwithstanding any other provision to the contrary, Purchaser shall not be  required to indemnify or hold harmless any Seller Indemnified Party against, or reimburse any  Seller Indemnified Party for, any Losses pursuant to Section 8.1(c)(ii) (A) with respect to any  claim (or series of related claims arising from similar or related underlying facts, events or  circumstances) unless such claim (or series of related claims arising from similar or related  underlying facts, events or circumstances) involves Losses in excess of $200,000 (nor, subject to  the foregoing, shall any such item that does not meet such $200,000 threshold be applied to or  considered for purposes of calculating the aggregate amount of the Seller Indemnified Parties’  Losses for which Purchaser has responsibility under Section 8.1(c)(ii)), and (B) until the  aggregate amount of the Seller Indemnified Parties’ Losses exceeds the Basket, after which  Purchaser shall be obligated for all such Losses of the Seller Indemnified Parties in excess of the  amount of the Basket, subject to the immediately next sentence.  Notwithstanding any other provision to the contrary, the cumulative aggregate  indemnification obligation of Purchaser under Section 8.1(c)(ii) shall not exceed the Cap, and the  cumulative aggregate indemnification obligation of Purchaser under Section 8.1(c)(i) and (c)(ii)  shall not exceed the Purchase Price (as adjusted hereunder), other than in respect of Losses  arising as a result of fraud.  (d) If a Purchaser Indemnified Party or a Seller Indemnified Party (each, an  “Indemnified Party”) believes that a claim, demand or other circumstance exists that has given or  may reasonably be expected to give rise to a right of indemnification under this Section 8.1, such  Indemnified Party shall assert its claim for indemnification by giving written notice thereof (a  “Claim Notice”) to Seller Holdco (if indemnification is sought from Seller Holdco) or Purchaser  (if indemnification is sought from Purchaser) (in either such case, the “Indemnifying Party”)  (i) if the event or occurrence giving rise to such claim for indemnification is, or relates to, a  claim, suit, action or proceeding brought by a Person not a party to this Agreement or affiliated  with any such party (a “Third Party”), promptly following receipt of notice of such claim, suit,  action or proceeding by such Indemnified Party, or (ii) if the event or occurrence giving rise to  such claim for indemnification is not, or does not relate to, a claim, suit, action or proceeding  brought by a Third Party, promptly after the discovery by the Indemnified Party of the  circumstances giving rise to such claim for indemnity; provided, however, that any failure or  delay in providing such notice shall not release the Indemnifying Party from any of its  obligations under this Section 8.1 except to the extent the Indemnifying Party is prejudiced by  

 

  -91-    such failure or delay.  Each Claim Notice shall describe the claim in reasonable detail including  (i) the legal and factual basis of the claim, (ii) an estimate of the amount of Losses which are, or  are to be, the subject of the claim and (iii) such other information as is reasonably necessary to  enable the Indemnifying Party to assess the merits of the claim (in each case in (i), (ii) and (iii),  to the extent then known or reasonably ascertainable).  (e) If any claim or demand by an Indemnified Party under this Section 8.1  relates to an action or claim filed or made against an Indemnified Party by a Third Party (each,  a “Third Party Claim”), the Indemnifying Party may, at its option, assume and control the  defense of such Third Party Claim (including, subject to the remainder of this Section 8.1(e), any  negotiation relating thereto and the settlement or compromise thereof) at its sole cost and  expense and with its own counsel (which counsel shall be reasonably acceptable to the  Indemnified Party); provided, however, that an Indemnifying Party shall not have the right to  assume and control the defense of any criminal or regulatory action or claim, any claim seeking  material non-monetary remedies or any claim where the portion of the claim for which the  Indemnified Party would not be indemnified is reasonably likely to exceed the portion of the  claim for which it would be indemnified.  The parties shall cooperate in the defense of such  Third Party Claim, and, unless and until the Indemnifying Party shall have so assumed the  defense of such Third Party Claim, the reasonable out-of-pocket costs and expenses (including  reasonable attorneys’ fees) incurred by the Indemnified Party in connection with the defense,  settlement or compromise of such claim or action shall be a Loss subject to indemnification  hereunder to the extent provided herein.  Any Indemnified Party shall have the right to employ  separate counsel in any such Third Party Claim and to participate in the defense thereof, and the  reasonable out-of-pocket costs and expenses incurred by the Indemnified Party’s separate  counsel in connection with the defense, settlement or compromise of such claim or action shall  be a Loss subject to indemnification hereunder provided (i) the Indemnifying Party is not entitled  to assume and control the defense of such Third Party Claim pursuant to this Section 8.1(e) or  shall have failed within forty-five (45) days after receipt of a Claim Notice in respect of such  Third Party Claim to assume the defense of such Third Party Claim or to notify the Indemnified  Party in writing that it will assume the defense of such Third Party Claim; (ii) the employment of  such counsel has been specifically authorized in writing by the Indemnifying Party at the  Indemnifying Party’s expense; (iii) the Indemnified Party’s counsel shall have concluded that  there is or would reasonably be expected to be a conflict of interest or one or more legal defenses  or counterclaims available to such Indemnified Party or to other Indemnified Parties which are  different from or additional to those available to the Indemnifying Party such that it would be  inappropriate or inadvisable in the reasonable judgment of Indemnified Party’s counsel for the  same counsel to represent both the Indemnified Party and the Indemnifying Party; or (iv) the  Indemnifying Party ceases to diligently defend such claims.  (f) No Indemnifying Party shall be liable to indemnify any Indemnified Party  for any compromise or settlement of any action or claim effected without the prior written  consent of the Indemnifying Party, but said consent shall not be unreasonably withheld or  delayed, and if settled with the consent of the Indemnifying Party, or if there be final judgment  for the plaintiff in any such action that the Indemnified Party is required to pay by the court at  the time paid, the Indemnifying Party shall indemnify and hold harmless each Indemnified Party  from and against any Loss by reason of such settlement or judgment, subject to the terms and  conditions of this Section 8.1.  If the Indemnifying Party shall assume the defense of any claim  

 

  -92-    in accordance with the provisions of this Section 8.1, the Indemnifying Party shall obtain the  prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld  or delayed) before entering into any settlement of such claim unless (i) the relief consists solely  of monetary damages to be paid entirely by the Indemnifying Party (or a liability insurer thereof)  (other than the Basket, if any, to be paid by the Indemnified Party), (ii) the settlement includes no  admission or finding of any violation of Law or admission of wrongdoing by the Indemnified  Party, and (iii) the settlement includes a provision whereby the plaintiff or claimant releases the  Indemnified Parties from all liability with respect thereto.  Each Indemnified Party shall make  available to the Indemnifying Party all information reasonably available to such Indemnified  Party relating to such action or claim the provision of which would not, in the reasonable  judgment of the Indemnified Party, violate or jeopardize any applicable attorney-client or other  privilege.  In addition, the parties shall render to each other such assistance as may reasonably be  requested in order to help ensure the proper and adequate defense of any such action or claim.   The party in charge of the defense shall keep the other parties reasonably apprised at all times as  to the status of the defense or any settlement negotiations with respect thereto.  (g) Purchaser and, after the Closing, the Bank shall take and shall cause its  Affiliates to use commercially reasonable efforts to mitigate any Loss for which any of them  could be entitled to indemnification under this Section 8.1 upon becoming aware of any event  which would reasonably be expected to, or does actually, give rise thereto, including incurring  costs to the extent necessary to remedy the breach which gives rise to such Loss (which costs, for  the avoidance of doubt, shall be considered Loss).  (h) The amount which the Indemnifying Party is or may be required to pay to  any Indemnified Party pursuant to this Section 8.1 shall be reduced (retroactively, if necessary)  by any insurance proceeds or other amounts actually recovered by or on behalf of such  Indemnified Party in reduction of the related Loss, net of any deductibles or other expenses  incurred in connection therewith.  If an Indemnified Party shall have received the payment  required by this Agreement from the Indemnifying Party in respect of Loss and shall  subsequently receive insurance proceeds or other amounts in respect of such Loss, then such  Indemnified Party shall promptly repay to the Indemnifying Party a sum equal to the amount of  such net insurance proceeds or other net amounts actually received.  In calculating the amount of  any Loss, there shall be deducted an amount equal to any net Tax benefit actually realized  (including the utilization of a Tax loss or Tax credit carried forward) as a result of such Loss by  the Indemnified Party claiming such Loss in the taxable year in which such Loss occurred  (determined on a “with and without” basis).  (i) With respect to the indemnification obligation set forth in this Section 8.1,  in no event shall (i) the Indemnifying Party have any liability to the Indemnified Party or any of  its Affiliates for any consequential, indirect, speculative, incidental, special or punitive damages,  except to the extent awarded by a court of competent jurisdiction in connection with a Third  Party Claim or is reasonably foreseeable, (ii) the Indemnified Party or any of its Affiliates be  entitled to recover from the Indemnifying Party under this Section 8.1 more than once in respect  of the same Loss; or (iii) the Indemnifying Party be liable for any Loss which is contingent  unless and until such contingent Loss becomes an actual liability and is due and payable.  

 

  -93-    (j) Effective at and after the Closing, the indemnification provided in this  Section 8.1 shall be the exclusive remedy available to any party hereto with respect to any breach  of any representation, warranty, covenant or agreement in this Agreement, or otherwise in  respect of the transactions contemplated by this Agreement or any claims relating to this  Agreement or any certificate delivered pursuant hereto, except (i) in the case of fraud or willful  misconduct, or with respect to matters for which the remedy of specific performance, injunctive  relief or other non-monetary equitable remedies are available in accordance with Section 8.5,  (ii) with respect to Taxes (the indemnification for which shall be governed exclusively by  Section 5.9), (iii) with respect to the failure of Purchaser to pay the Excess Capital Amount in  full within the period provided for in Section 5.16, or (iv) as otherwise expressly provided in this  Agreement.  Section 8.2 Amendment; Waiver.  Any provision of this Agreement may be  amended or waived if, and only if, such amendment or waiver is in writing and signed, in the  case of an amendment, by the parties hereto, or in the case of a waiver, by the party or parties  against whom the waiver is to be effective.  No failure or delay by any party in exercising any  right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or  partial exercise thereof preclude any other or further exercise thereof or the exercise of any other  right, power or privilege.  Section 8.3 Entire Agreement.  The Transaction Documents and the  Confidentiality Agreements represent the entire understanding of the parties hereto with respect  to the subject matter hereof and thereof and supersede any and all other oral or written  agreements heretofore made.  Section 8.4 Assignment.  No party to this Agreement may assign any of its  rights or obligations under this Agreement (whether by operation of law or otherwise) without  the prior written consent of the other parties hereto.  Any attempted or purported assignment in  contravention of this provision shall be null and void.  Section 8.5 Specific Performance.  The parties hereto agree that if any of the  provisions of this Agreement were not to be performed as required by their specific terms or  were to be otherwise breached, including, for the avoidance of doubt, a breach of Section 5.5,  irreparable damage will occur, no adequate remedy at law would exist and damages would be  difficult to determine, and that such parties shall be entitled, without the necessity of posting a  bond or other security, to an injunction or injunctions to prevent breaches, and to specific  performance of the terms, of this Agreement, in addition to any other remedy at law or equity.  Section 8.6 Counterparts.  This Agreement may be executed in two or more  counterparts (including by facsimile, email or other electronic means such as “.pdf” or “.tiff”  files), each of which shall be deemed to constitute an original, but all of which together shall be  deemed to constitute one and the same instrument.  Section 8.7 Notices.  All notices and other communications hereunder shall be  in writing and shall be deemed duly given (a) on the date of delivery if delivered personally,  (b) on the first (1st) Business Day after being sent if delivered utilizing a next-day service by an  internationally recognized overnight courier that issues a receipt or other confirmation of  

 

  -94-    delivery, (c) on the earlier of confirmed receipt or the third (3rd) Business Day following the date  of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid or  (d) when transmitted to the email address set out below, as applicable (provided, that no “error”  message or other notification of non-delivery is generated).  All notices hereunder shall be  delivered to the addresses set forth below, or pursuant to such other instructions as may be  designated in writing by the party to receive such notice.  Whenever notice is given hereunder  under clauses (a), (b) or (c) of this Section 8.7, a copy of such notice shall be sent via email to  the addresses of the recipient parties below.  If to Sellers, to:  Mitsubishi UFJ Financial Group, Inc.  2-7-1, Marunouchi, Chiyoda-ku  Tokyo, Japan 100-8330  Attention: Hiroshi Kawano  Email:  hiroshi_3_kawano@mufg.jp    and    Mitsubishi UFJ Financial Group, Inc.  2-7-1, Marunouchi, Chiyoda-ku  Tokyo, Japan 100-8330  Attention: Morito Emi  Email:  morito_emi@mufg.jp  with a copy to (which shall not constitute notice):  Sullivan & Cromwell LLP  125 Broad Street  New York, New York  10004  Attention: H. Rodgin Cohen    Donald J. Toumey    C. Michelle Chen  Email:  Cohenhr@sullcrom.com    Toumeyd@sullcrom.com    Chenc@sullcrom.com  If to Purchaser, to:  U.S. Bancorp  800 Nicollett Mall  Minneapolis, Minnesota 55402  Attention: Adam C. Graves  Email:  adam.graves@usbank.com  with a copy to (which shall not constitute notice):  

 

  -95-    U.S. Bancorp  800 Nicollett Mall  Minneapolis, Minnesota 55402  Attention: James L. Chosy  Email:  james.chosy@usbank.com  and a copy to (which shall not constitute notice):  Simpson Thacher & Bartlett LLP  425 Lexington Avenue  New York, New York 10017  Attention: Lee Meyerson    Ravi Purushotham  Email:  lmeyerson@stblaw.com    RPurushotham@stblaw.com    Section 8.8 Provisions Separable.  (a) The provisions of this Agreement shall be deemed severable and the  invalidity or unenforceability of any provision shall not affect the validity or enforceability of the  other provisions hereof.  If any provision of this Agreement, or the application thereof to any  Person or entity or any circumstance, is found by a court or other Governmental Authority of  competent jurisdiction to be invalid or unenforceable, (a) a suitable and equitable provision shall  be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and  purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and  the application of such provision to other Persons, entities or circumstances shall not be affected  by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the  validity or enforceability, of such provision, or the application thereof, in any other jurisdiction.  (b) Without limiting generality of the foregoing, the parties acknowledge and  agree that (i) the covenants and agreements set forth in Section 5.7 and Section 5.8 were a  material inducement to the parties to enter into this Agreement and to perform their respective  obligations hereunder, and (ii) if any portion of any provisions in Section 5.7 or Section 5.8 is  held invalid or unenforceable, the remaining provisions of Section 5.7 and Section 5.8  will  remain in full force and effect to the maximum extent permitted by Law.  Section 8.9 Parties in Interest.  This Agreement will be binding upon, inure to  the benefit of and be enforceable by the parties hereto and their respective successors and  permitted assigns.  Except as set forth in Section 5.20, nothing in this Agreement, express or  implied, is intended to confer any rights or remedies under or by reason of this Agreement upon  any Person other than the parties hereto and their successors or permitted assigns.  Section 8.10 Expenses.  Except as otherwise specifically provided in the  Transaction Documents, each party hereto will bear all expenses incurred by it in connection  with this Agreement and the transactions contemplated hereby (it being understood and agreed  

 

  -96-    that all such expenses incurred by or on behalf of the Bank, any Transferred Subsidiary or the  Excluded Subsidiaries shall be the responsibility of the Sellers).  Section 8.11 Deadlines.  If the last day of the time period for the giving of any  notice or the taking of any action required under this Agreement falls on a day that is not a  Business Day, the time period for giving such notice or taking such action shall be extended  through the Business Day immediately following the original expiration date of such action.  Section 8.12 Waiver of Jury Trial.  EACH PARTY HERETO HEREBY  WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM  BROUGHT BY ANY OF THEM AGAINST THE OTHER ARISING OUT OF OR IN ANY  WAY CONNECTED WITH THIS AGREEMENT, OR ANY OTHER AGREEMENTS  EXECUTED IN CONNECTION HEREWITH, OR THE ADMINISTRATION THEREOF OR  ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN.  NO PARTY  TO THIS AGREEMENT SHALL SEEK A JURY TRIAL IN ANY LAWSUIT, PROCEEDING,  COUNTERCLAIM, OR ANY OTHER ACTION PROCEDURE BASED UPON, OR ARISING  OUT OF, THIS AGREEMENT OR ANY RELATED INSTRUMENTS OR THE  RELATIONSHIP BETWEEN THE PARTIES.  NO PARTY WILL SEEK TO CONSOLIDATE  ANY SUCH ACTION, IN WHICH A JURY TRIAL HAS BEEN WAIVED, WITH ANY  OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.   THE PROVISIONS OF THIS SECTION HAVE BEEN FULLY DISCUSSED BY THE  PARTIES HERETO, AND THESE PROVISIONS SHALL BE SUBJECT TO NO  EXCEPTIONS.  NO PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO  ANY OTHER PARTY THAT THE PROVISIONS OF THIS SECTION WILL NOT BE  FULLY ENFORCED IN ALL INSTANCES.  Section 8.13 Governing Law; Consent to Jurisdiction.  This Agreement shall be  governed by, and construed in accordance with, the internal laws of the State of New York  applicable to agreements made and wholly to be performed in such State.  EACH PARTY  HERETO, TO THE EXTENT IT MAY LAWFULLY DO SO, HEREBY SUBMITS TO THE  EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK  LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY AND THE U.S.  DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AS WELL AS TO  THE JURISDICTION OF ALL COURTS FROM WHICH AN APPEAL MAY BE TAKEN OR  OTHER REVIEW SOUGHT FROM THE AFORESAID COURTS, FOR THE PURPOSE OF  ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF SUCH PARTY’S  OBLIGATIONS UNDER OR WITH RESPECT TO THIS AGREEMENT OR ANY OF THE  AGREEMENTS, INSTRUMENTS OR DOCUMENTS CONTEMPLATED HEREBY, AND  EXPRESSLY WAIVES ANY AND ALL OBJECTIONS IT MAY HAVE AS TO VENUE IN  ANY OF SUCH COURTS.  The parties hereby consent to and grant any such court jurisdiction  over the person of such parties and, to the extent permitted by Law, over the subject matter of  such dispute and agree that mailing of process or other papers in connection with any such action  or proceeding in the manner provided in Section 8.7 or in such other manner as may be permitted  by Law shall be valid and sufficient service thereof.  Nothing in this Agreement will affect the  right of any party to this Agreement to serve process in any other manner permitted by Law.  [Remainder of page left intentionally blank]  

 

  [Signature Page to the Share Purchase Agreement]    IN WITNESS WHEREOF, this Agreement has been executed on behalf of each  of the parties hereto as of the date first above written.    MITSUBISHI UFJ FINANCIAL GROUP, INC.  By:     Name:    Title:  MUFG AMERICAS HOLDINGS  CORPORATION  By:     Name:    Title:  U.S. BANCORP    By:     Name:    Title:  

 

      SCHEDULE 3  Requisite Regulatory Approvals  1. U.S. bank regulatory approvals or non-objection notices in respect of the Stock Sale and  the Bank Merger, including from (a) the Federal Reserve (the “Federal Reserve  Approval”) and (b) the OCC (the “OCC Approval”).  2. U.S. and non-U.S. bank regulatory approvals or non-objection notices in respect of the  Excluded Assets and Liabilities Transfer, including from (a) the FDIC (the “FDIC  Approval”), (b) the JFSA (the “JFSA Approval”).  3. U.S. bank regulatory approvals or non-objection notices in respect of the Special  Dividend Transaction, including from the OCC (the “Special Dividend Approval”).  4. U.S. and non-U.S. approvals or non-objections, if and as applicable, with respect to the  Hart-Scott-Rodino Antitrust Improvements Act of 1976 and similar competition laws of  other jurisdictions.  5. The approval or non-objections in respect of a change of control of UnionBanc  Investment Services, LLC, including from the Financial Industry Regulatory Authority,  and any filings required to comply with state and insurance securities authorities, in  respect of UnionBanc Investment Services, LLC, as a result of the change of control  contemplated hereby.  6. The expiration or termination of all statutory waiting periods in respect of the Requisite  Regulatory Approvals or filings described in Paragraphs 1 through 5 above.

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