Crescit Eundo Finance I, LLC
Exhibit
(k)(4)
FORM OF AGREEMENT
Crescit
Eundo Finance I, LLC
$41,864,306.83
8.10%
Fixed Rate Note, Series 2009-A
February
____, 2010
Rochdale
Structured Claims Fixed Income Fund, LLC
c/o
Rochdale Investment Management, LLC
000
Xxxxxxxxx Xxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Ladies
and Gentlemen:
Crescit
Eundo Finance I, LLC, a Delaware limited liability company (the “Issuer”) proposes to
issue and sell to Rochdale Structured Claims Fixed Income Fund, LLC, a Delaware
limited liability company (the “Purchaser”), an 8.10%
Fixed Rate Note, Series 2009-A (the “Note”) in the
principal amount of $41,864,306.83 under the terms and conditions herein
contained. Capitalized terms used herein that are not otherwise
defined shall have the meanings ascribed thereto in the Structured Settlement
Sale and Purchase Agreement between Issuer and Purchaser or in the other Related
Documents (as such term is defined in the Structured Settlement Sale and
Purchase Agreement), as applicable.
The
Issuer agrees to sell and deliver to the Purchaser who, upon the basis of the
representations and warranties of the Issuer set forth in this Note Purchase
Agreement (the “Agreement”), and
subject to the terms and conditions set forth herein, may purchase from the
Issuer the Note in reliance on an exemption from registration under Section 4(2)
of the Securities Act of 1933, as amended (the “Securities
Act”). This Agreement shall not obligate the Purchaser to
purchase the Note or the Issuer to issue the Note, but shall govern the purchase
of the Note on the Closing Date.
The
Issuer intends to sell and deliver the Note to the Purchaser upon the basis of
the representations and warranties of the Issuer and the Purchaser as set forth
in this Agreement and subject
to the terms and conditions of this Agreement. Issuer understands and
agrees that the Purchaser intends to offer for sale (“Offering”) to certain
eligible investors units of interest to be issued by the Purchaser and that the
Offering is to be conducted in the manner described in the Offering Materials,
as that term is defined in Section 4, below. Issuer acknowledges and
agrees that it is the intention of the Purchaser that substantially all of the
proceeds of the Offering will
be used
by the Purchaser to purchase the Note from Issuer and that such purchase will
close, and such Offering will terminate, as of the Closing Date.
NOW,
THEREFORE, in consideration of the foregoing premises and intending to be
legally bound hereby, the Purchaser and the Issuer agree as
follows:
Section
1. Purchase
of the Note. The purchase price of the Note shall be
$41,864,306.83.
Section
2. Closing. The
Issuer and the Purchaser agree that:
(a) A
closing (the “Closing”) for the
sale of the Note will be held beginning at 9:00 a.m., Atlanta, Georgia time, on
or about February _____, 2010, at the offices of Xxxxxx Xxxxxx Xxxxxxx, LLP, or
at such other time, on such other date and at such other place as shall have
been mutually agreed upon by the Issuer and the Purchaser; and
(b) Payment
for the Note, in an amount equal to $41,864,306.83, shall be made by wire
transfer of immediately available funds to the Issuer on the Closing
Date.
Section
3. Representations, Warranties
and Covenants of the Issuer. The Issuer represents and warrants to the
Purchaser, and covenants and agrees with the Purchaser, that:
(a) The
Issuer is a limited liability company duly formed, validly existing and in good
standing under the laws of the State of Delaware;
(b) The
Issuer and its Affiliates that are parties to the Related Documents (hereinafter
collectively referred to as the “Peachtree
Affiliates”) each have full power and authority to execute, deliver and
perform their respective obligations under this Agreement and each of the other
Related Documents (as applicable);
(c) The
execution, delivery and performance by the Issuer and each Peachtree Affiliate
of the Related Documents to which they are a party and the consummation by the
Issuer and each Peachtree Affiliate (as applicable) of the transactions
contemplated thereby (i) do not and will not violate the certificate of
formation or limited liability company agreement of the Issuer or the similar
charter documents of any Peachtree Affiliate or any order, injunction, ruling or
decree by which the Issuer or any Peachtree Affiliate is bound, (ii) do not and
will not constitute a breach of or a default under any agreement, indenture,
mortgage, lease, note, instrument or arrangement to which the Issuer or any
Peachtree Affiliate is a party or by which the Issuer or any Peachtree Affiliate
or any of their respective property is bound, and (iii) do not and will not
contravene or constitute a violation of any law, statute, ordinance, rule or
regulation to which the Issuer or any Peachtree Affiliate or any of their
respective property is subject;
(d) All
representations and warranties of the Issuer and any Peachtree Affiliate
contained in each of the Related Documents (to the extent limited therein) will
be true and correct as of the Closing Date and are hereby incorporated by
reference as if each such representation and warranty were specifically made
herein; and
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(e) Assuming
the accuracy of the representations and warranties, and no breach of the
agreements and covenants, of the Purchaser contained herein, the offer and sale
of the Note to the Purchaser will be exempt from the registration requirements
of the Securities Act by reason of Section 4(2) of the Securities
Act.
Section
4. Covenants of the Issuer in
Connection with the Offer and Sale of the Note. In further
consideration of the Purchaser’s agreements herein contained, the Issuer
covenants with the Purchaser as follows:
(a) If,
during the period from the date hereof through the Closing Date any event known
to the Issuer or any Peachtree Affiliate shall occur as a result of which it is
necessary, in the judgment of the Issuer or any Peachtree Affiliate or counsel
to the Issuer or any such Peachtree Affiliate, to amend or supplement the Form
N-2 filed by the Purchaser with the Securities and Exchange Commission or any of
the literature or offering materials to be used in connection with the Offering
(copies of all such materials other than the Form N-2 are attached hereto as
Exhibit “A”)
(such other documents and the Form N-2, as amended on or before February ____,
2010 (the “Form
N-2”), are hereinafter collectively referred to as the “Offering Materials”)
in order to correct any untrue statement of material fact or to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it is necessary,
in the judgment of the Issuer or counsel to the Issuer, to amend or supplement
the Offering Materials to comply with any law, Issuer shall promptly notify
Purchaser of such event; and
(b) On
or prior to the Closing Date, to take all actions reasonably necessary to
satisfy, or cause others to satisfy, the conditions to the Purchaser’s
obligations set forth in Section 6 of this Agreement.
Section
5. Representations, Warranties,
Covenants and Agreements of the Purchaser. The Purchaser
hereby represents and warrants to the Issuer, and covenants and agrees with the
Issuer, as follows:
(a) As
of the date hereof, the Purchaser is purchasing the Note for its own account and
not with a present view towards the sale or distribution thereof, except
pursuant to sales registered or exempt under the Securities Act of 1933 (the
“Securities Act”), provided, however, that by making this representation, the
Purchaser reserves the right to dispose of the Note at any time in accordance
with the Act.
(b) Purchaser
has had a reasonable opportunity to ask questions of and receive answers from
the Issuer concerning the Note and the Issuer and to obtain any additional
information, documents or instruments that it has deemed necessary or
appropriate in making its investment decision. All such questions
have been answered to the full satisfaction of Purchaser.
(c) Purchaser
acknowledges that the Note was offered to Purchaser solely by private contacts
and not by means of any form of general solicitation, advertisement or sales
literature;
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(d) Purchaser
acknowledges that the purchase of the Note from the Issuer is an illiquid
investment for which no public or secondary market currently exists and,
accordingly, Purchaser may not be able to readily liquidate Purchaser’s
investment in such Note.
(e) Purchaser
(i) has adequate means of providing for its current needs and possible
contingencies, (ii) has no need for liquidity in this investment, (iii) is able
to bear the economic risks of this investment for an indefinite period, and (iv)
can afford a complete loss of such investment;
(f) Purchaser,
together with its officers and advisors, has such knowledge and experience in
financial and business matters to enable Purchaser to utilize the information
made available to it in connection with the organization of the Issuer, its
business, and the terms, conditions, and risks associated with the Note, to
evaluate the merits and risks of the prospective investment, and to make an
informed investment decision with respect thereto;
(g) The
Offering has been and will be conducted in conformity with the following
representations:
(i) The
Purchaser and its Affiliates and agents have not and will not solicit any offer
to buy or offer to sell any securities in the Offering by means of any form of
general solicitation or general advertising, including, but not limited to, the
following:
(1) any
advertisement, circular, article, notice or letter or other communication
published in any newspaper, magazine or similar medium or broadcast over
television, radio or the internet; and
(2) any
seminar or meeting whose attendees have been invited by any general solicitation
or general advertising;
(ii) The
Purchaser, its Affiliates and agents have not distributed and will not
distribute, publish or disseminate any materials in connection with the Offering
other than the Offering Materials in the forms attached hereto in Exhibit “A” or
forming a part of the Form N-2. The Purchaser and its agents have not
made and will not make any representations to potential investors not contained
in such Offering Materials unless approved in writing in advance by the
Issuer. The foregoing requirement for written approval by the Issuer
extends to the use and distribution of any electronic documents or
presentations, audio or web broadcasts, slide shows, roadshows or other
marketing material presented in any manner;
(iii) As
of the Closing Date and as of any date on which offers or sales have been or
will be made in connection with the Offering, Offering Materials did not, and
will not, include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided that this representation and warranty shall not apply to
any
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statements
in or omissions from any such document based upon (and in conformity with)
information relating directly to the Issuer furnished to the Purchaser or any
Affiliate or subsidiary thereof in writing by or on behalf of the
Issuer;
(iv) The
Purchaser has not and will not solicit any offer to buy from or offer to sell to
any person any securities in connection with the Offering unless the Purchaser
shall reasonably believe that at such time such person, and each other person
for whom such person is acting, are “accredited investors,” as that term is
defined by Rule 501(a) of Regulation D under the Securities Act, and such belief
shall be based upon the pre-existence of a substantive relationship adequate to
form the basis of such a belief, either on the part of Purchaser or properly
authorized placement agents pursuant to selling agreements with the Purchaser’s
principal distributor (or their respective agents);
(v) The
Purchaser shall not use the internet to market the Offering except in accordance
with relevant SEC guidance, including the use of password protection to prevent
the inappropriate dissemination of marketing materials;
(vi) The
Purchaser will institute adequate controls to provide reasonable assurance that
the Offering Materials will not be disseminated beyond the intended group of
solicitees, including the numbering of offering circulars, the maintenance of
appropriate records of the individuals to whom such circulars have been
distributed; and similar measures customary in connection with private
offerings;
(vii) The
Purchaser and Issuer will agree upon an appropriate limit on the number of
printed copies of the Offering Materials distributed and the number and
character of offerees to whom offers of any kind are directed so as to ensure
that the limited nature of the Offering will be preserved;
(viii) The
Purchaser or its agents shall create such records as shall be consistent with
the documentation of the manner in which the Offering was conducted, including,
as applicable, establishing the qualifications of offerees and the pre-existing
relationships based upon which such offerees were selected as referenced in
subparagraph (iv) above;
(ix) The
Purchaser has not given and will not give any information or make any material
representation in connection with the Offering not contained in the written
Offering Materials which have been previously approved by the Issuer as provided
in Section 5(g)(ii) above;
(x) The
Purchaser has solicited and will solicit purchasers of securities in connection
with the Offering only in the jurisdictions in which the Purchaser has been
advised by its counsel that such solicitation can be made without violating the
securities or “Blue Sky” laws of such jurisdictions, and then only in compliance
with such laws;
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(xi) The
Purchaser will not offer, sell or deliver any securities in connection with the
Offering in any jurisdiction outside the United States without the express,
written, advance consent of the Issuer;
(xii) The
Purchaser shall ensure that the Purchaser and any agents used to market the
Offering are registered as broker-dealers under U.S. law or are entitled to an
exemption from such regulation, and that such persons are registered to conduct
such activities under any comparable laws of any jurisdiction in which the
Offering is conducted or that they are exempt therefrom.
(h) Purchaser
is an “investment company” registered under the Investment Company Act of 1940,
as amended, and, as of the Closing Date, Purchaser will be in compliance with
the provisions thereof and the regulations thereunder in all material
respects;
(i) Neither
the Purchaser nor any agent acting on its behalf, has offered the Note or the
securities offered and sold in connection with the Offering by any form of
general solicitation or general advertising within the meaning of Rule 502(c)
under the Securities Act or has taken or will take any other action which would
subject the offer, issuance, sale or delivery of the Note or the securities
offered and sold in connection with the Offering to the provisions of Section 5
of the Securities Act or to the registration provisions of any state securities
laws of any applicable jurisdiction;
(j) If,
during the period from the date hereof through the Closing Date any event known
to the Purchaser shall occur as a result of which it is necessary, in the
judgment of the Purchaser or counsel to the Purchaser, to amend or supplement
the Offering Materials in order to correct any untrue statement of material fact
or to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or
if it is necessary, in the judgment of the Purchaser or counsel to the
Purchaser, to amend or supplement the Offering Materials to comply with any law,
the Purchaser shall promptly prepare and furnish, at the expense of the
Purchaser, to the Issuer and to each prospective investor or an investor to whom
a copy of any of the Offering Materials was previously delivered and not
returned, either amendments or supplements (in form and substance reasonably
satisfactory to the Issuer and their counsel) so that the Offering Materials as
so amended or supplemented will not contain an untrue statement of material fact
or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, or so that the Offering Materials will comply with such law;
provided, however, that prior to the Closing Date and for a period of six (6)
months thereafter, the Purchaser will not at any time amend or supplement the
Offering Materials prior to (i) furnishing the Issuer with a copy of the
proposed form of the amendment or supplement, (ii) giving the Issuer and its
counsel a reasonable opportunity to review the same and (iii) receiving the
prior written consent of the Issuer and its counsel, which shall not be
unreasonably withheld;
(k) The
Purchaser has not taken and will not take, or permit or cause any of its
Affiliates to take, any action whatsoever which would have the effect of
requiring the
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registration,
under the Securities Act or any state securities law, of the offering or sale of
the Note or the offer and sale of the securities offered and sold in connection
with the Offering contemplated by this Agreement within six (6) months after the
Closing Date (directly or through any trust) and within such six (6) month
period shall not commence any such offering or any offering of securities of the
same class or type as, or that would otherwise be integrated with the offering
of, the Note or the securities offered and sold in connection with the Offering
without the prior written consent of the Issuer, which the Issuer shall not
unreasonably withhold;
(l) Purchaser
is not engaged in the business of extending credit for the purpose of purchasing
or carrying Margin Stock. “Margin Stock” has the
meaning specified in Regulation U of the Board of Governors of the Federal
Reserve System and any successor regulations thereto, as in effect from time to
time;
(m) Purchaser
acknowledges and agrees that the Note shall contain a legend stating in
substance that:
(i) the
Note has not been registered under the Securities Act or any state securities
laws, and that any resale, pledge or other transfer of such Note may be made
only (1) pursuant to an effective registration statement under the Securities
Act or (2) in reliance on another exemption from the registration requirements
of the Securities Act, in each case only in accordance with any applicable
securities laws of any state of the United States or other applicable
jurisdiction. Purchaser acknowledges that Issuer will not cause or
permit this portion of the legend to be removed from the face of the Note, nor
will Issuer register any transfer of the Note, except after receipt of an
opinion of counsel reasonably acceptable to the Issuer stating that any such
transfer complies with the Securities Act and the applicable securities laws of
any state or other jurisdiction;
(ii) the
Note may not be transferred by Purchaser or any subsequent holder or holders
except upon registration of the transfer upon the books of the Issuer following
due presentation and surrender of the Note to the Issuer, to be accompanied by a
form of assignment to be provided in the Note; and
(iii) The
Note may be transferred only in total and not in one or more subdivisions or
fractions, unless reissued in multiple replacement promissory notes by the
Issuer.
(n) The
Purchaser is a limited liability company duly formed, validly existing and in
good standing under the laws of the State of Delaware, and has the power and
authority to execute, deliver and perform its obligations under this
Agreement;
(o) Upon
notice from the Issuer prior to the completion of the Offering that the Offering
Materials are required to be amended or supplemented, the Purchaser shall
immediately cease use of the Offering Materials until it has prepared such
amendment or supplement and thereafter will make use of the Offering Materials
only as so amended or supplemented, and deliver a copy of such amendment or
supplement to each prospective
7
investor
to whom a copy of the Offering Materials had previously been delivered (and who
has not returned such copy);
(p) The
Purchaser shall promptly notify the Issuer (a) when any event shall have
occurred as a result of which any of the Purchaser’s representations or
warranties herein would not be true and (b) of the Purchaser’s receipt of any
notification with respect to the modification, rescission, withdrawal or
suspension of the qualification or registration of the securities to be offered
or sold in the Offering, or of an exemption from such registration or
qualification, in any jurisdiction; and shall use its reasonable efforts to
prevent the issuance of any such modification, rescission, withdrawal or
suspension and, if any such modification, rescission, withdrawal or suspension
is issued and the Issuer so requests, the Purchaser shall obtain the lifting
thereof as promptly as possible;
(q) The
Purchaser has complied and will comply in all material respects with all
applicable state and federal securities laws in connection with the offer and
sale of the securities pursuant to the Offering and the performance of the
Purchaser’s obligations hereunder; provided, however, that nothing
in the foregoing clause shall be construed as an assumption by the Purchaser of
any obligation of the Issuer or any of their officers, directors, shareholders
or employees to comply with such securities laws or any liability for their
failure to comply with such securities laws in connection with the sale of the
Note to Purchaser or otherwise; and
(r) The
Purchaser acknowledges and agrees that it shall be responsible for the prompt
payment of fifty percent (50.0%) of the cost of the verification process charged
to Crescit Eundo Trust (for and with respect to the Trust and/or its Rochdale
Structured Claims Income Fund series) (the “Trust”) and/or
Settlement Funding, LLC by Xxxxx Fargo Bank, N.A. (the “Custodian”) in
connection with the verification and custody of the Receivables files pursuant
to the Custodian and Verification Agreement dated as of even date hereof and
executed among the Custodian, Settlement Funding, LLC and the
Trust.
Section
6. Conditions to the
Purchaser’s Obligations. This Agreement shall not obligate the
Purchaser to purchase the Note, but shall govern the purchase of the Note by the
Purchaser on the Closing Date. Notwithstanding the foregoing, it is
understood that the purchase by the Purchaser of the Note on the Closing Date is
subject to the accuracy of the representations and warranties herein made on the
part of the Issuer, to the accuracy of the statements of the officers of the
Issuer made pursuant to the provisions hereof, to the performance by the Issuer
of its obligations hereunder and to the following conditions:
(a) Subsequent
to the execution and delivery of this Agreement, there shall not have occurred
any material (i) change, or any development involving a prospective change, in
or affecting (A) particularly the business or properties of the Issuer, or (B)
the Receivables, which in the good faith judgment of the Purchaser, has
materially impaired or will in the immediate future, materially impair the
investment quality of the Note; (ii) any domestic or international event or act
or occurrence which has materially disrupted, or in the good faith judgment of
the Purchaser, will in the immediate future, materially disrupt, securities
markets; (iii) any suspension or limitation of trading in
securities
8
generally
on the New York or American Stock Exchanges, or any setting of minimum or
maximum prices or maximum ranges for trading of securities shall have been
required on the New York or American Stock Exchanges by the New York or American
Stock Exchanges or by order of the Commission or any other governmental
authority having jurisdiction; (iv) any declaration of a banking moratorium by
Federal or state authorities or of any banking moratorium in foreign exchange
trading by major international banks or persons; (v) any outbreak or escalation
of major hostilities in which the United States is involved or any declaration
of war by Congress; or (vi) any change in the market for securities in general
or in political, financial or economic conditions in general if, in the good
faith judgment of the Purchaser, the effect of any such change makes it
impractical or inadvisable to proceed with completion of the purchase of and
payment for the Note;
(b) On
the Closing Date, each of the Related Documents, including the Note, shall have
been duly authorized, executed and delivered by the parties thereto, shall be in
full force and effect and no default shall exist thereunder, and the Purchaser
shall have received a fully executed copy thereof or, with respect to the Note,
a conformed copy thereof;
(c) The
Purchaser shall have received from Xxxxxx Xxxxxx Xxxxxxx LLP and Xxxxxxxx,
Xxxxxx & Finger, P.A., special counsel for the Issuer, corporate and UCC
opinions (respectively) dated the Closing Date, addressed to the Purchaser, in
form and substance satisfactory to the Purchaser and its counsel;
(d) The
Purchaser shall have received from Xxxxxx Xxxxxx Xxxxxxx LLP, special federal
tax counsel for the Issuer, an opinion dated the Closing Date, addressed to the
Purchaser to the effect that the Note will be treated as debt;
(e) At
the Closing Date, the Purchaser shall have received, in form and substance
satisfactory to the Purchaser and its counsel, a certificate, dated the Closing
Date, of the President, Chief Executive Officer or any Vice President or other
officer of the Issuer in which each such officer shall state that: (i) with
respect to the Issuer and each Peachtree Affiliate, the representations and
warranties of the Issuer and each Peachtree Affiliate in this Agreement and in
each Related Document (as applicable) are true and correct on and as of the
Closing Date, except to the extent any such representation or warranty was
expressly made as of any other date, in which case such representation and
warranty was true and correct as of such other date; (ii) the Issuer and each
Peachtree Affiliate has complied with all agreements and satisfied all
conditions on its part required to be performed or satisfied hereunder and under
each of the other Related Documents to which it is a party at or prior to the
Closing Date; (iii) the representations and warranties of the Issuer and each
Peachtree Affiliate in each of the Related Documents to which it is a party are
true and correct as of the dates specified therein; and (iv) no event shall have
occurred, and no condition shall exist that would constitute an event of default
under any of the Related Documents, either with or without notice or lapse of
time, or both;
(f) On
or prior to the Closing Date, Settlement Funding, LLC shall have had estoppel
and release letters and related UCC-3 termination statements, assignments,
9
partial
releases and/or amendment statements (for each appropriate jurisdiction), to
release all security interests or similar rights of any Person in the
Receivables, including, without limitation, the security interests in the
related collateral, if any, securing the Receivables and any proceeds of such
security interests or the Receivables executed by each such Person;
(g) The
Purchaser shall have received evidence satisfactory to it that, on or before the
Closing Date, UCC-1 financing statements have been or are being filed in the
office of the Secretary of the State of Georgia and in the office of the
Secretary of the State of Delaware reflecting the sale of the interest of
Settlement Funding, LLC in the Receivables to the Crescit Eundo Trust (for and
with respect to its Rochdale Structured Claims Fixed Income Fund series), and
the pledge of the SUBI Certificate by the Issuer to the Purchaser;
(h) All
proceedings in connection with the transactions contemplated by this Agreement
and each of the other Related Documents and all documents incident hereto or
thereto shall be satisfactory in form and substance to the Purchaser, and the
Purchaser shall have received such information, certificates, opinions and
documents as the Purchaser may request; and
(i) No
order suspending the sale of the securities to be offered and sold in the
Offering in any jurisdiction shall have been issued and no proceedings shall
have been instituted or threatened for that purpose.
The
Purchaser may, in its sole discretion, waive compliance with any of the
conditions contained in this Section 6 and any condition so waived shall be
deemed to have been satisfied. If any of the foregoing conditions is
not satisfied or waived on or before the Closing Date, the Purchaser shall
(except as otherwise specifically provided herein) be released and discharged
from its obligations under or pursuant to this Agreement and any offers (and
acceptances thereof) of the Note.
Section
7. Conditions to the Issuer’s
Obligations. This Agreement shall not obligate the Issuer to
sell the Note, but shall govern the issuance of the Note by the Issuer on the
Closing Date. Notwithstanding the foregoing, it is understood that
the issuance by the Issuer of the Note on the Closing Date is subject to the
accuracy of the representations and warranties herein made on the part of the
Purchaser, to the accuracy of the statements of the officers of the Purchaser
made pursuant to the provisions hereof, to the performance by the Purchaser of
its obligations hereunder and to the following conditions:
(a) On
the Closing Date, each of the Related Documents shall have been duly authorized,
executed and delivered by the parties thereto, shall be in full force and effect
and no default shall exist thereunder, and the Issuer shall have received a
fully executed copy thereof;
(b) The
Issuer shall have received from Xxxxxxxxxx XxXxxxxxx Xxxxxx & Xxxxxx LLP,
special counsel for the Purchaser and from Xxxx Xxxxxxxxxxx, Esq., Senior
Executive Vice President and General Counsel of Rochdale and the Purchaser,
opinions
10
dated the
Closing Date, addressed to the Issuer, in form and substance satisfactory to the
Issuer and its counsel;
(c) At
the Closing Date, the Issuer shall have received, in form and substance
satisfactory to the Issuer and its counsel, a certificate, dated the Closing
Date, of the President, Chief Executive Officer or any Vice President or other
officer of the Purchaser in which each such officer shall state that: (i) with
respect to the Purchaser only, the representations and warranties of the
Purchaser in this Agreement are true and correct on and as of the Closing Date,
except to the extent any such representation or warranty was expressly made as
of any other date, in which case such representation and warranty was true and
correct as of such other date; and (ii) the Purchaser has complied with all
agreements and satisfied all conditions on its part required to be performed or
satisfied hereunder ;
(d) All
proceedings in connection with the transactions contemplated by this Agreement
and each of the other Related Documents and all documents incident hereto or
thereto shall be satisfactory in form and substance to the Issuer, and the
Issuer shall have received such information, certificates, opinions and
documents as the Issuer may request; and
(e) No
order suspending the sale of the Note or the securities in connection with the
Offering in any jurisdiction shall have been issued and no proceedings shall
have been instituted or threatened for that purpose.
The
Issuer may, in its sole discretion, waive compliance with any of the conditions
contained in this Section 7 and any condition so waived shall be deemed to
have been satisfied. If any of the foregoing conditions is not
satisfied or waived on or before the Closing Date, the Issuer shall (except as
otherwise specifically provided herein) be released and discharged from its
obligations under or pursuant to this Agreement.
Section
8. Indemnification and
Contribution.
(a) Purchaser
and Rochdale Investment Management LLC (“Rochdale”), which
shall, as of the Closing Date and pursuant to the terms of agreements between
the Purchaser and Rochdale, provide investment management, administrative and
related services to the Purchaser, jointly and severally, agree to indemnify and
hold harmless the Issuer and Peach Holdings, LLC, their respective partners,
directors, officers, employees and agents, and each person, if any, who controls
the Issuer within the meaning of Section 15 of the Securities Act or
Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from
and against any and all losses, claims, damages and liabilities, joint or
several, or actions in respect thereof, caused by or arising out
of:
(i) Claims
that the Offering or any actions taken or not taken by Purchaser, its investment
adviser or its agents, violated any federal or state securities law, including
without limitation, that any untrue statement or alleged untrue statement of a
material fact is contained in any Offering Material, as well as in any
non-written statements or presentations used to market the
Offering,
11
including
oral and electronic presentations, or that any such materials
contain any omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, except insofar as
such losses, claims, damages or liabilities are caused by or arise out of any
such untrue statement or omission based upon (and in conformity with)
information furnished by the Issuer in writing to the Purchaser expressly for
use therein; or result from any statement or description of any Related Contract
or Related Documents included in materials provided to the Purchaser or Rochdale
by the Issuer or any Affiliate of the Issuer, which statement or description is
in conformity with materials so provided, regardless of whether such document
was provided to Purchaser expressly for use in such materials (unless the
Purchaser was expressly instructed by the Issuer or any Affiliate of the Issuer
to exclude any such document from any Offering Material); and
(ii) Any
breach of any covenant, warranty or representation of Purchaser set forth in
this Agreement.
(b) Issuer
and Peach Holdings, LLC (“Peach”) shall jointly
and severally indemnify and hold harmless Purchaser and Rochdale, and their
respective partners, directors, officers, employees and agents, and each person,
if any, who controls Purchaser within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities, joint or several, or actions in respect
thereof, caused by or arising out of:
(i) any
untrue statement or alleged untrue statement of a material fact in the Offering
Materials or caused by or arising out of any omission or alleged omission to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading but only insofar as such losses, claims, damages or liabilities
are caused by or arise out of any such untrue statement or omission based upon
(and in conformity with) information furnished by the Issuer in writing to the
Purchaser expressly for use therein or result from any statement or description
of any Related Contract or Related Documents included in materials provided to
the Purchaser or Rochdale by the Issuer or any Affiliate of the Issuer, which
statement or description is in conformity with materials so provided, regardless
of whether such document was provided to Purchaser expressly for use in such
materials (unless the Purchaser was expressly instructed by the Issuer or any
Affiliate of the Issuer to exclude any such document from any Offering
Material); and
(ii) Any
breach of any covenant, warranty or representation of the Issuer or any
Peachtree Affiliate set forth in this Agreement, provided, however, that
Peach’s indemnification hereunder shall not be construed as a guaranty of
payment by Peach of the Issuer’s payment obligations under the
Note.
(c) In
case any proceeding (including, without limitation, any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to the preceding paragraph, such person
(hereinafter called the
12
“indemnified party”)
shall promptly notify the person against whom such indemnity may be sought
(hereinafter called the “indemnifying party”)
in writing and the indemnifying party, upon request of the indemnified party,
shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may
designate in such proceeding and shall pay the reasonable fees and disbursements
of such counsel related to such proceeding. In any such proceeding,
any indemnified party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such indemnified
party unless the indemnifying party and the indemnified party shall have
mutually agreed to the retention of such counsel or the representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the
indemnifying party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the reasonable fees and
expenses of more than one separate firm (in addition to any local counsel) for
all such indemnified parties, and all such fees and expenses shall be reimbursed
as they are incurred. The indemnifying party shall not be liable for
any settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party from and against
any loss or liability by reason of such settlement or judgment. No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened proceeding in respect
of which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party, unless such settlement
includes an unconditional release of such indemnified party from all liability
arising out of such proceeding.
(d) If
the indemnification provided for in paragraph (a) of this Section 8 is
unavailable to an indemnified party in respect of any losses, claims, damages or
liabilities referred to therein, then each indemnifying party under such
paragraph, in lieu of indemnifying such indemnified party thereunder, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (i) in such proportion as is
appropriate to reflect the relative benefits received by the Issuer on the one
hand, and the Purchaser on the other, from the offering and sale of the Note or
the offering of securities in connection with the Offering, as contemplated by
Section 1 or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in cause (i) above but also the relative
fault of the Issuer on the one hand, and of the Purchaser on the other, in
connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Issuer on the one hand, and
of the Purchaser on the other, shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Issuer on the one hand, or
by the Purchaser on the other, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.
(e) The
Issuer and the Purchaser agree that it would not be just and equitable if
contribution pursuant to this Section 8 were determined by pro rata
allocation or by any
13
other
method of allocation which does not take account of the equitable considerations
referred to in paragraph (c) of this Section 8. The amount paid
or payable by an indemnified party as a result of the losses, claims, damages or
liabilities referred to in paragraph (c) of this Section 8 shall be deemed
to include, subject to the limitations set forth above, any reasonable legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. No person guilty
of fraudulent misrepresentation shall be entitled to contribution from any
person who was not also guilty of such fraudulent
misrepresentation.
(f) The
indemnifying party also agrees not to assert any claim against any indemnified
party on any theory of liability, for special, indirect, consequential or
punitive damages arising out of or otherwise relating to, including, without
limitation, (i) the Related Documents, the Note, or any of the transactions
contemplated hereby or thereby, (ii) the Purchaser’s agreement to purchase the
Note or (iii) any use or intended use of the proceeds of the Note or the sale by
the Purchaser of the securities in connection with the
Offering .
(g) THE
RIGHTS OF AN INDEMNIFIED PARTY TO BE INDEMNIFIED AND HELD HARMLESS, OR TO
RECEIVE CONTRIBUTION, UNDER THE CIRCUMSTANCES CONTEMPLATED IN THIS
SECTION 8 SHALL NOT BE NEGATED BY THE REASON OF THE FACT THAT SUCH
INDEMNIFIED PARTY MAY HAVE BEEN NEGLIGENT IN ANY RESPECT AND TO ANY DEGREE UNDER
THE CIRCUMSTANCES OR MAY BE SUBJECT TO STRICT LIABILITY UNDER APPLICABLE
LAW.
Section
9. Miscellaneous.
(a) This
Agreement shall become effective as of the date set forth above and, except as
otherwise provided herein, shall continue in effect until the Closing Date, or
such other date as may be mutually agreed upon by the Purchaser and the
Issuer.
(b) The
indemnity and contribution agreements contained in Section 8, the
covenants, representations and warranties contained in Sections 3 and 5, and the
provisions of this Section 9 shall remain operative and in full force and
effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of the Purchaser or the Issuer or any person
controlling the Purchaser or the Issuer and (iii) payment for and delivery of
the Note.
(c) This
Agreement shall be subject to termination in the Purchaser’s absolute
discretion, by notice given to the Issuer, if (i) after the execution and
delivery of this Agreement and prior to the Closing Date (A) trading generally
shall have been suspended or materially limited on the New York Stock Exchange,
or (B) a general moratorium on commercial
banking activities in New York shall have been declared by the relevant
authorities, or (C) there shall have occurred any outbreak or escalation of
hostilities or any calamity or crisis that, in the Purchaser’s reasonable
judgment, materially and adversely affects financial markets, or (D) there shall
have occurred any change in financial markets that, in the Purchaser’s
reasonable judgment, is material and adverse,
14
and (ii)
in the case of any of the events specified in clauses (i)(A) through (D), such
event singly or together with any other such event makes it, in the Purchaser’s
reasonable judgment, impracticable to market the Note on the terms and in the
manner contemplated herein.
(d) All
communications hereunder, except as herein otherwise specifically provided,
shall be in writing and, if to the Purchaser or Rochdale, shall be mailed,
delivered or telecopied and confirmed to the Purchaser or Rochdale at the
following address:
Rochdale
Structured Claims Fixed Income Fund, LLC
c/o
Rochdale Investment Management, LLC
000
Xxxxxxxxx Xxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Attention:
Xxxx Xxxxxxxxxxx, Senior Executive Vice President & General
Counsel
Telecopy
No.: (000)000-0000
if to the
Issuer or Peach, shall be mailed or delivered or telecopied and confirmed to the
Issuer or Peach at the following address:
Crescit
Eundo Finance I, LLC
0000
Xxxxxxx Xxxxxxxxx, 0xx
Xxxxx
Xxxxxxx
Xxxxx, XX 00000-0000
Attention: Xxxxx
Xxxxxxxx, Chief Executive Officer
and Xxxxx Xxxxxxx, Senior Vice
President
Telecopy: (000)
000-0000
(e) THIS
AGREEMENT AND ALL MATTERS ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
DELAWARE WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.
(f) ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN
THE COURTS OF THE STATE OF DELAWARE OR OF THE UNITED STATES FOR THE DISTRICT OF
DELAWARE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES
HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN
15
RESPECT
OF THIS AGREEMENT, ANY OTHER RELATED DOCUMENT OR ANY DOCUMENT RELATED
HERETO.
(g) EACH
OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY DELAWARE
LAW. EACH OF THE PARTIES HERETO WAIVES ITS RIGHT TO A TRIAL BY JURY
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR
OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR
OTHERWISE. EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR
CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A
JURY. WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO
FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY
OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER
PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
TO THIS AGREEMENT.
(h) This
Agreement may be executed in counterparts, each of which shall be an original
and all of which together shall together constitute but one and the same
instrument.
(i) This
Agreement shall inure to the benefit of and be binding upon the Purchaser, the
Issuer, Peach and Rochdale and, to the extent provided herein, the officers and
directors of the Issuer and each person who controls the Issuer or the
Purchaser, and their respective successors and assigns.
(j) This
Agreement may be amended or modified only with the prior written consent of the
parties hereto.
(k) Notwithstanding
anything herein to the contrary, to the extent not inconsistent with applicable
securities laws, each party hereto (and each of their employees, representatives
or other agents) may disclose to any and all Persons, without limitation of any
kind, the tax treatment and tax structure of the transaction (as defined in
Section 1.6011-4 of the Treasury Regulations) and all materials of any kind
(including opinions or other tax analyses) to the extent relating to such tax
treatment and tax structure.
(l) The
Issuer agrees to provide prompt written notice to the Purchaser and Rochdale in
the event that any Peachtree Affiliate ceases to be an Affiliate of the
Issuer.
16
Crescit Eundo
Finance I, LLC
|
|
By:
|
|
Name:
|
|
Title:
|
17
Accepted
and agreed to
on
the date first above written:
|
Rochdale Structured
Claims Fixed Income Fund, LLC,
as
the Purchaser
|
By:
|
Name:
Title:
|
ROCHDALE
INVESTMENT MANAGEMENT LLC
|
By:
|
Name:
Title:
|
PEACH
HOLDINGS, LLC
|
By:
|
Name:
Title:
|
18
Exhibit
“A”
Final Forms of Subscription
Documents and Final N-2 and Amendments
(See
Attached)
19