SEC Contract Filing

Filing Date: 2020-05-05

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>d901989dex103.htm
<DESCRIPTION>EX-10.3
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<TITLE>EX-10.3</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.3 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B><I>Execution Version </I></B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>TERMINATION AND SETTLEMENT AGREEMENT </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">TERMINATION AND SETTLEMENT AGREEMENT, dated as of May&nbsp;4, 2020 (this &#147;<U>Agreement</U>&#148;), among Front Yard Residential
Corporation, a Maryland corporation (the &#147;<U>Company</U>&#148;), BAF Holdings, LLC, a Delaware limited liability company (&#147;<U>Parent</U>&#148;), BAF Sub, LLC, a Maryland limited liability company and a direct wholly owned Subsidiary of
Parent (&#147;<U>Merger Sub</U>&#148;), and Amherst Single Family Residential Partners VI, LP (&#147;<U>Purchaser</U>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS,
Parent, Merger Sub and the Company entered into an Agreement and Plan of Merger, dated as of February&nbsp;17, 2020 (the &#147;<U>Merger Agreement</U>&#148;), pursuant to which the Company was to be merged with and into Merger Sub on the terms and
subject to the conditions set forth in the Merger Agreement (the &#147;<U>Merger</U>&#148;); and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Company, on the one hand,
and Parent and Merger Sub, on the other hand, have agreed that the Merger Agreement is to be terminated and the Merger abandoned pursuant to Section&nbsp;8.1 of the Merger Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained in this Agreement, the receipt
and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows: </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">ARTICLE I </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">DEFINITIONS </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;1.1.
<U>Definitions</U>. Unless otherwise specifically defined in this Agreement, each capitalized term used but not defined in this Agreement shall have the meaning assigned to such term in the Merger Agreement. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">ARTICLE II </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">SETTLEMENT </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;2.1. <U>Settlement</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Simultaneously with the execution and delivery of this Agreement and in consideration of the agreements made herein, Purchaser and the
Company each shall execute and deliver to each other that certain Investment Agreement, dated of even date herewith (the &#147;<U>Investment Agreement</U>&#148;), pursuant to which Purchaser shall purchase, and the Company shall sell, 4,400,000
shares of common stock, par value $0.01 per share, of the Company (the &#147;<U>Shares</U>&#148; and each, a &#147;<U>Share</U>&#148;) for a purchase price of $12.50 per Share. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) Simultaneously with the execution and delivery of this Agreement and in consideration of the agreements made herein, Amherst SFRP VI REIT,
LLC and the Company each shall execute and deliver to each other that certain <FONT STYLE="white-space:nowrap">Non-Negotiable</FONT> Promissory Note, dated of even date herewith (the &#147;<U>Promissory Note</U>&#148;), pursuant to which on the
terms set forth therein, </P>
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Amherst SFRP VI REIT, LLC shall provide a committed credit facility of Twenty Million Dollars ($20,000,000) to the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) Promptly following the execution of this Agreement, and in no event later than the close of business on May 5, 2020, Parent shall pay, or
cause to be paid, Twenty-Five Million Dollars ($25,000,000) in cash to the Company (the &#147;<U>Settlement Payment</U>&#148;); <U>provided</U>, that Purchaser specifically guarantees the obligation of Parent to pay the Settlement Payment. The
Settlement Payment shall be paid by wire transfer in immediately available U.S. federal funds, to the account designated by the Company in writing on <U>Exhibit A</U> hereto. The Settlement Payment shall not be repayable or refundable under any
circumstances, including the termination or expiration of the Investment Agreement. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">ARTICLE III </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt;