Document:

stwd_Ex_10_6

		

			Exhibit 10.6

		

		

			 

		

		
			SECOND AMENDMENT TO GUARANTEE AGREEMENT
		

		
			 
		

		
			THIS SECOND AMENDMENT TO GUARANTEE AGREEMENT, dated as of March 15, 2019 (this “Amendment”), between STARWOOD PROPERTY TRUST INC., a corporation organized under the laws of the State of Maryland (“Guarantor”), and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a national bank association organized under the laws of the United States (“Buyer”). Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the Guarantee (as defined below).
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			WHEREAS, Buyer, Starwood Property Mortgage Sub-14, L.L.C. (“Seller 14”), Starwood Property Mortgage Sub-14-A, L.L.C. (“Seller 14-A”), Starwood Mortgage Funding VI LLC (“Funding VI Seller”) and SPT CA Fundings 2, LLC (“SPT CA Seller”, together with Seller 14, Seller 14-A and Funding VI Seller, collectively, “Seller”) are parties to that certain Uncommitted Master Repurchase Agreement, dated as of December 10, 2015, as amended by: (i) that certain First Amendment to Uncommitted Master Repurchase Agreement, dated as of March 31, 2016, (ii) that certain Second Amendment to Uncommitted Master Repurchase Agreement, dated as of April 25, 2016, (iii) that certain Third Amendment to Uncommitted Master Repurchase Agreement and Amendment of Fee Letter, dated as of April 20, 2018, (iv) that certain Fourth Amendment to Uncommitted Master Repurchase Agreement, dated as of May 1, 2018, and (v) that certain Fifth Amendment to Uncommitted Master Repurchase Agreement, dated as of January 10, 2019 (as amended, modified and/or restated from time to time, the “Repurchase Agreement”), and the other Transaction Documents (as defined therein);
		

		
			 
		

		
			WHEREAS, Guarantor indirectly owns one hundred percent (100%) of the Capital Stock of Seller;
		

		
			 
		

		
			WHEREAS, in connection with the Repurchase Agreement, Guarantor made that certain Guarantee, dated as of December 10, 2015, for the benefit of Buyer, as amended by that certain First Amendment to Guarantee Agreement, dated as of September 15, 2017, (as amended or modified prior to the date hereof, the “Existing Guarantee”; and, as amended by this Amendment, and as same may be hereafter further amended, modified and/or restated, the “Guarantee”), for the benefit of Buyer; and
		

		
			 
		

		
			WHEREAS, Guarantor and Buyer desire to make certain amendments and modifications to the Existing Guarantee.
		

		
			 
		

		
			NOW THEREFORE, in consideration of the foregoing recitals, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
		

		
			 
		

		
			ARTICLE I. 
		

		
			 
		

		
			AMENDMENT
		

		
			 
		

		
			Sections 9(c) and 9(d) of the Existing Guarantee are hereby deleted in their entirety and replaced with the following:
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

		
			 
		

		
			“(c)            Guarantor shall not permit the ratio of its Total Indebtedness to Total Assets at any time to be greater than 0.80 to 1.00;
		

		
			 
		

		
			(d)             Guarantor shall not permit the ratio of Guarantor’s EBITDA for any fiscal quarter to Guarantor’s Interest Expense for such fiscal quarter to be less than 1.40 to 1.00;”.
		

		
			 
		

		
			ARTICLE II.
		

		
			 
		

		
			REPRESENTATIONS
		

		
			 
		

		
			Guarantor represents and warrants to Buyer, as of the date of this Amendment, as follows:
		

		
			 
		

		
			(i)        all representations and warranties made by it in Section 8 of the Existing Guarantee are true and correct in all material respects;
		

		
			 
		

		
			(ii)       it is duly authorized to execute and deliver this Amendment and has taken all necessary action to authorize such execution, delivery and performance;
		

		
			 
		

		
			(iii)      the person signing this Amendment on its behalf is duly authorized to do so on its behalf;
		

		
			 
		

		
			(iv)      the execution, delivery and performance of this Amendment will not violate any Requirement of Law applicable to it or its organizational documents or any agreement by which it is bound or by which any of its assets are affected; and
		

		
			 
		

		
			(v)        this Amendment has been duly executed and delivered by it.
		

		
			 
		

		
			ARTICLE III.
		

		
			 
		

		
			FEES AND EXPENSES
		

		
			 
		

		
			Guarantor shall promptly pay all of Buyer’s reasonable out-of-pocket costs and expenses, including reasonable attorney’s fees and expenses incurred in connection with the preparation, negotiation, execution and delivery of this Amendment.
		

		
			 
		

		
			ARTICLE IV. 
		

		
			 
		

		
			GOVERNING LAW
		

		
			 
		

		
			THIS AMENDMENT (AND ANY CLAIM OR CONTROVERSY HEREUNDER) SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES  HEREUNDER  SHALL  BE  DETERMINED  IN  ACCORDANCE  WITH  SUCH
		

		
			 
		

		
			
		

		
			

		 

		

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			LAWS WITHOUT REGARD TO THE CONFLICT OF LAWS DOCTRINE APPLIED IN SUCH STATE (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).
		

		
			 
		

		
			ARTICLE V. 
		

		
			 
		

		
			MISCELLANEOUS
		

		
			 
		

		
			(a)        Except as expressly amended or modified hereby, the Guarantee and the other Transaction Documents shall each be and shall remain in full force and effect in accordance with their terms.
		

		
			 
		

		
			(b)        This Amendment may be executed in counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. The parties intend that faxed signatures and electronically imaged signatures (such as PDF files) shall constitute original signatures and are binding on all parties.
		

		
			 
		

		
			(c)        The headings in this Amendment are for convenience of reference only and shall not affect the interpretation or construction of this Amendment.
		

		
			 
		

		
			(d)        This Amendment may not be amended or otherwise modified, waived or supplemented except as provided in the Guarantee.
		

		
			 
		

		
			(e)        This Amendment contains a final and complete integration of all prior expressions by the parties with respect to the subject matter hereof and shall constitute the entire agreement among the parties with respect to such subject matter, superseding all prior oral or written understandings.
		

		
			 
		

		
			[SIGNATURES FOLLOW]
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered as of the date first above written.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						GUARANTOR:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						STARWOOD PROPERTY TRUST INC., a 

				
	
					
						 

					
					
						 

					
					
						Maryland corporation

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Andrew J. Sossen

				
	
					
						 

					
					
						 

					
					
						Name: Andrew J. Sossen

				
	
					
						 

					
					
						 

					
					
						Title:   Authorized Signatory

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BUYER:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						JPMORGAN CHASE BANK, A NATIONAL 

				
	
					
						 

					
					
						 

					
					
						ASSOCIATION, a national banking

				
	
					
						 

					
					
						 

					
					
						association

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Thomas N. Cassino

				
	
					
						 

					
					
						 

					
					
						Name: Thomas N. Cassino

				
	
					
						 

					
					
						 

					
					
						Title:   Executive Director

				

		
			 
		

		
			 
		

		 

		

			Signature Page to Second Amendment to Guarantee Agreementstwd_Ex_10_7

		

			Exhibit 10.7

		

		

			EXECUTION VERSION

		

		
			JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
		

		
			383 Madison Avenue
		

		
			New York, New York 10179
		

		
			 
		

		
			September 17, 2019
		

		
			Starwood Property Trust, Inc.
		

		
			591 West Putnam Avenue
		

		
			Greenwich, Connecticut 06830
		

		
			Re:       Guarantee Agreement, dated as of December 10, 2015, made by Starwood Property Trust, Inc., a Maryland corporation (“Guarantor”) for the benefit of JPMorgan Chase Bank, National Association, a national banking association (“Buyer”), as amended by that certain First Amendment to Guarantee Agreement, dated as of September 15, 2017, and as amended by that certain Second Amendment to Guarantee Agreement, dated as of March 15, 2019
		

		
			Ladies and Gentlemen:
		

		
			Notwithstanding anything to the contrary contained in the Guarantee, Guarantor and Buyer agree that, if (a) Guarantor has entered into amendments of its liquidity covenants with each of the other repurchase buyers under all repurchase facilities that currently (or as of the Liquidity Covenant Modification Effective Date (as defined below)) have liquidity covenants more favorable to such repurchase buyers than the Requested Liquidity Covenant (as defined below) (such repurchase facilities, the “Other Facilities”) to which Guarantor is a party on or before September __, 2020, and (b) in all of such amendments to the Other Facilities, Guarantor’s liquidity covenant has been modified to be less restrictive to Guarantor than the liquidity covenant expressly set forth in Section 9(a) of the Guarantee, then Guarantor will give Buyer prompt notice thereof and, upon the earlier of (such earlier date, the “Liquidity Covenant Modification Effective Date”) (i) September __, 2020 and (ii) the date upon which Guarantor has entered into such amendments of its liquidity covenants with respect to each of its Other Facilities, Section 9(a) of the Guarantee shall be deemed to be automatically modified to conform to the most restrictive of such less restrictive liquidity covenants of the Other Facilities (as amended) (such covenant, the “MFN Liquidity Covenant”); provided that, notwithstanding the foregoing, in no event shall the foregoing cause, and the foregoing shall not cause, the liquidity covenant in Section 9(a) of the Guarantee to be any less restrictive than a liquidity covenant requiring that Guarantor not permit at any time (x) its Liquidity (as defined in the Guarantee on the date hereof) to be less than $150,000,000 or (y) its Cash Liquidity (as defined in the Guarantee on the date hereof) to be less than $50,000,000 (such covenant as described in the preceding clauses (x) and (y), the “Requested Liquidity Covenant”), and in the event that the MFN Liquidity Covenant is less restrictive than the Requested Liquidity Covenant, then on the Liquidity Covenant Modification Effective Date, Section 9(a) of the Guarantee, with no further action required on the part of either Guarantor or Buyer, shall automatically be modified, mutatis mutandis, to conform to the Requested Liquidity
		

		
			
		

		
			

		 

		

		
			 
		

		
			Covenant.  Guarantor and Buyer each agree, at the request of the other, to execute and deliver any related amendments to the Guarantee to document the modifications contemplated by this paragraph, provided that the execution of any such amendments shall not be a precondition to the effectiveness thereof, but shall merely be for the convenience of Buyer and Guarantor.  For the avoidance of doubt, if, on September 17, 2020, Guarantor shall not have entered into amendments with each of the other repurchase buyers under all of the Other Facilities to modify the Guarantor’s liquidity covenants under such Other Facilities to be less restrictive to Guarantor than the liquidity covenant set forth in Section 9(a) of the Guarantee, then this paragraph shall be of no further force and effect, and the liquidity covenant set forth in Section 9(a) of the Guarantee shall remain unmodified.
		

		
			Capitalized terms not otherwise defined herein shall have the respective meanings set forth in the Uncommitted Master Repurchase Agreement, dated as of December 10, 2015, by and among Starwood Property Mortgage Sub-14, L.L.C. (“Seller 14”), Starwood Property Mortgage Sub-14-A, L.L.C. (“Seller 14-A”), Starwood Mortgage Funding VI LLC (“Funding VI Seller”) and SPT CA Fundings 2, LLC (“SPT CA Seller”, together with Seller 14, Seller 14-A and Funding VI Seller, collectively, “Seller”), and JPMorgan Chase Bank, National Association (“Buyer”) (as the same has been and may be from time to time amended, modified and/or restated from time to time, the “Repurchase Agreement”).
		

		
			Guarantor hereby agrees to keep the existence and the contents of this letter agreement strictly confidential and to not disclose the same without the prior written consent of Buyer, except (i) to the Affiliates of Guarantor or their respective directors, officers, employees, agents, advisors, attorneys and other representatives who are informed of the confidential nature of such information and instructed to keep it confidential, (ii) to Sellers’ and Guarantor’s direct or indirect investors, (iii) to the extent requested by any regulatory authority or required by Requirements of Law (including SEC rules, regulations and guidelines), (iv) to the extent required by GAAP to be included in the financial statements of Guarantor, Sellers or Affiliates thereof, (v) to the extent required to exercise any rights or remedies under the Transaction Documents, Purchased Assets, Purchased Asset Documents or Underlying Mortgaged Properties, (vi) to the extent required to consummate and administer a Transaction, (vii) to the extent required in connection with any litigation between any Buyer and Guarantor in connection with any Transaction Document or (viii) to the extent it is or becomes generally available to the public (other than if caused by the disclosure by Guarantor or any of their respective Affiliates).
		

		
			If any term, covenant or condition of this letter agreement is held to be invalid, illegal or unenforceable in any respect, this letter agreement shall be construed without such provision.
		

		
			This letter agreement may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original.  This letter agreement may be executed in several counterparts, each of which shall be deemed an original instrument and all of which together shall constitute a single letter agreement.  The failure of any party hereto to execute this letter agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.
		

		
			
		

		
			

		 

		

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			This letter agreement and the obligations arising hereunder shall be governed by, and construed in accordance with, the laws of the State of New York.
		

		
			[NO FURTHER TEXT ON THIS PAGE]
		

		
			 
		

		
			
		

		
			

		 

		

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			IN WITNESS WHEREOF, the undersigned have executed this letter agreement as of the date and year first written above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BUYER:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						JPMORGAN CHASE BANK, NATIONAL

				
	
					
						 

					
					
						ASSOCIATION, a national banking association

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						  /s/ Anthony Shaskus

				
	
					
						 

					
					
						 

					
					
						Name: Anthony Shaskus

				
	
					
						 

					
					
						 

					
					
						Title: Vice President

				

		
			 
		

		
			 
		

		
			

		 

		

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						GUARANTOR:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						STARWOOD PROPERTY TRUST, INC.

					
					
						 

				
	
					
						a Maryland corporation

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						_ /s/ Andrew Sossen____________ 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						Andrew Sossen

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

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