This SECURITY AGREEMENT (LLC Distributions) (the Agreement), dated as of
executed by and between GREENHILL
& CO., INC., a Delaware
corporation (Borrower), and FIRST
, a Division of Bank of America, N.A. (Lender).
Lender has entered into a Loan Agreement dated as of January 31, 2006, with Borrower pursuant
to which Lender provided a loan to, or for the benefit of, Borrower. Such Loan Agreement is being
extended and amended concurrently herewith pursuant to the terms of that certain Seventh
Modification Agreement dated as of the date hereof (Seventh Modification Agreement). This
Agreement is being provided in connection with the Loan Agreement and the Seventh Modification
Agreement to secure Borrowers obligations thereunder.
THEREFORE, for valuable consideration, the receipt and adequacy of which are acknowledged,
Borrower and Lender agree as follows:
For purposes of this Agreement, capitalized terms not otherwise defined in this Agreement
shall have the meanings provided below or in the Commercial Code or in the Loan Agreement.
1.1 Agreement means this Security Agreement, any concurrent or subsequent rider to
this Security Agreement and any extensions, supplements, amendments or modifications to this
Security Agreement and/or to any such rider.
1.2 Attorneys Fees is defined in Section 9.5.
1.3 Bankruptcy Code means the U.S. Bankruptcy Code as now enacted or hereafter
1.5 Borrowers Books means all of Borrowers books and records including, but not
limited to: minute books; ledgers, and records indicating, summarizing or evidencing Borrowers
assets, liabilities, the Collateral, the Secured Obligations, and all information relating thereto;
records indicating, summarizing or evidencing Borrowers business operations or
LOAN NO. 93-408969-4/AFS#0210053059
condition; and all computer programs, disc or tape files, printouts, runs, and other computer
prepared information and the equipment containing such information.
1.6 Business Day
means any day other than a day on which commercial banks are
authorized or required by law to close in the State of California
1.7 Capital Account means any account or credit maintained or owed directly or
indirectly by the Company to or for Borrower or in Borrowers name: (i) on account of capital
contributions of Borrower to or for the Company; and/or (ii) which represents Borrowers equity
interest in the Company; and/or (iii) which represents the value of Borrowers LLC Interest.
1.8 Capital Calls means all demands made, or to be made, upon Borrower for: (i) the
advance of funds to be made by Borrower to fund the capital of the Company; or (ii) on account of,
or in connection with, the LLC Interest.
1.9 Capital Contributions means all payments and/or contributions made by Borrower
to the Company pursuant to any Capital Calls.
1.10 Commercial Code
means the Uniform Commercial Code, as now enacted or hereafter
amended, applicable in the State of California
1.12 Distributions mean all amounts and rights to payment, payments and
distributions, amounts and cash owed to, paid to, or held for, or available to Borrower or in
Borrowers name (in whichever form they exist, whether as Instruments, Chattel Paper, Accounts,
General Intangibles, Financial Assets or otherwise) arising from, or on account of: (i) the LLC
Interest, and (ii) all Capital Accounts, including without limitation, all Interim Distributions
and all Liquidation Distributions.
1.13 Exhibit means any Exhibit attached hereto and incorporated herein.
1.14 Governmental Authorities means: (i) the United States; (ii) the state, county,
city or other political subdivision in which any of the Collateral is located; (iii) all other
governmental or quasi-governmental authorities, boards, bureaus, agencies, commissions,
departments, administrative tribunals, instrumentalities and authorities; and (iv) all judicial
authorities and public utilities having or exercising jurisdiction over Borrower, Borrower, any
Guarantor or the Collateral. The term Governmental Authority means anyone of the Governmental
1.15 Governmental Permits means all permits, approvals, licenses and authorizations
now or hereafter issued by any Governmental Authorities for or in connection with the conduct of
Borrowers business or the ownership or use by Borrower of the Collateral, or its other assets or
1.16 Governmental Requirements means all existing and future laws, ordinances,
rules, regulations, orders or requirements of all Governmental Authorities applicable to Borrower,
any Guarantor, the Collateral or any of Borrowers or any Guarantors other assets or properties.
1.17 Guarantor means, collectively, the Person or Persons, if any, now or hereafter
guaranteeing payment of the credit or payment or performance of the Secured Obligations (or
pledging collateral therefor).
1.18 Guaranty means every guaranty agreement of any kind (including third-party
pledge agreements) now or hereafter executed by any Guarantor, and all extensions, renewals,
modifications and replacement thereof.
1.19 Insolvency Proceeding means any proceeding commenced by or against any person
or entity, including Borrower, under any provision of the United States Bankruptcy Code, as
amended, or under any other bankruptcy or insolvency law, including, but not limited to,
assignments for the benefit of creditors, formal or informal moratoriums, compositions or
extensions with some or all creditors.
1.20 Interim Distribution means any Distributions made in the ordinary course of
business of the subject entity and not in connection with a Liquidation Distribution.
1.21 Judicial Officer or Assignee means any trustee, receiver, controller,
custodian, assignee for the benefit of creditors or any other person or entity having powers or
duties like or similar to the powers and duties of a trustee, receiver, controller, or assignee for
the benefit of creditors.
1.22 Lender means FIRST REPUBLIC BANK, a Division of Bank of America, NA
1.23 Lender Expenses means all costs and expenses incurred by Lender in connection
with: (i) this Agreement or other Loan Document; (ii) the transactions contemplated hereby or
thereby; (iii) the enforcement of any rights hereunder or thereunder; (iv) the recordation or
filing of any documents; (v) Lenders Attorneys Fees; (vi) the creation, perfection or enforcement
of the lien on any item of Collateral; and (vii) any expenses incurred in any proceedings in the
U.S. Bankruptcy Courts in connection with any of the foregoing.
1.24 Liquidation Distribution shall mean all Distributions that are liquidating
dividends or final return on capital to Borrower or repayment of equity in connection with the
liquidation, dissolution or termination of the Company.
1.25 LLC Agreement means the Operating Agreement or other formation agreement listed
on Exhibit B.
1.26 LLC Interest means the membership interest of Borrower in the Company.
1.27 Loan Agreement means that certain Loan Agreement dated as of January 31, 2006
between Borrower and Lender and all extensions, renewals, modifications and replacements thereof,
including without limitation, that certain Seventh Modification Agreement dated as of the date
1.28 Loan Document means this Agreement, the Loan Agreement and any other documents
now or hereafter executed by Borrower or Guarantor or any other Person and delivered to Lender at
Lenders request in connection with the credit extended to Borrower and all extensions, renewals,
modifications or replacements thereof and any Note executed in connection therewith.
1.29 Note means: (i) the Sixth Amended and Restated Note dated as of the date
hereof in the original principal sum of $75,000,000 executed and delivered pursuant to the Seventh
Modification Agreement; (ii) any predecessor promissory note and any other promissory note executed
in connection with the Loan Agreement; and (iii) any additional note or notes now or hereafter
executed by Borrower in favor of Lender which specifically recite that they arise out of the Loan
Documents, and all extensions, renewals, modifications and replacement thereof.
1.30 Permitted Liens means any and all of the following: (i) liens for taxes, fees,
assessments or other governmental charges or levies, either not delinquent or being contested in
good faith by appropriate proceedings; and (ii) any other liens and encumbrances agreed to in
writing by Lender.
1.31 Person means any natural person or any entity, including any corporation,
partnership, joint venture, trust, limited liability company, unincorporated organization or
trustee, or Governmental Authority.
1.32 Secured Obligations means all debts, obligations and liabilities of Borrower to
Lender under or in connection with this Agreement, the Loan Agreement, any Note, and any of the
other Loan Documents, regardless whether such Secured Obligations are currently existing or
hereafter created, whether liquidated or unliquidated, including Attorneys Fees. Notwithstanding
anything to the contrary contained in the Loan Documents, the term Secured Obligations shall not
include any debts that are or may hereafter constitute consumer credit which is subject to the
disclosure requirements of the federal Truth-In Lending Act (15 U.S.C. Section 1601, et
seq.) or any similar state law in effect from time to time, unless Lender and Borrower
shall otherwise agree in a separate written agreement.
2.1 Security Interest. Borrower hereby grants to Lender a continuing valid, first
priority security interest in all present and future Collateral, described in Exhibit B,
now owned or hereafter acquired to secure repayment and performance of the Secured Obligations.
2.2 Security Documents. Lender may file all financing statements and confirmation
statements and other documents as necessary to perfect and maintain perfected Lenders security
interest. Borrower shall execute and deliver to Lender all documents which Lender may reasonably
request: (i) to perfect, and maintain perfected, Lenders security interests in the Collateral or,
(ii) to maintain or recognize the priority and enforceability of the Lenders lien on the
Collateral, and (iii) to implement the terms of this Agreement. If requested by Lender, Borrower
will have such documents executed by relevant third parties and delivered to Lender. In this regard
if the Account is maintained with a financial institution other than Lender, Borrower will execute
such Control Agreement as Lender may require to perfect its lien on such Account.
2.3 Assignment of Rights to Payment.
(a) Borrower hereby assigns, transfers and sets over to Lender and its successors: (i) all of
its rights to collect and receive Distributions from the Company subject to the limitations set
forth in Exhibit A.
(b) All payments on Distributions are to be sent by wire transfer to the account specified in
Exhibit A (Account). Borrower shall take such steps as are requested by Lender for the
payment of all future Distributions into such Account Funds deposited into the Account shall be
released or applied as provided in Exhibit A.
DISTRIBUTIONS AND DIVIDENDS
3.1 Distributions. Whether or not an Event of Default has occurred, all Distributions
will be deposited into the Account.
3.2 Delivery. Borrower shall promptly deliver to Lender all instruments or chattel
paper which constitute Collateral, duly endorsed and assigned.
3.3 Funds Held in Trust. To the extent that Borrower receives any payment which is to
be paid to Lender, such payment is to be held in trust for Lender and shall be segregated from
Borrowers other funds and shall be immediately paid to Lender in the form as received (with any
3.4 Funds Held by Lender. All funds received by Lender may, in the discretion of
Lender, be held by Lender as additional Collateral and disbursed or applied to the Secured
Obligations as provided in Exhibit A.
REPRESENTATIONS AND WARRANTIES
Until the Secured Obligations are satisfied in full, Borrower makes the following
representations and warranties:
4.1 Borrower. Borrowers full and correct name and address are indicated in
Exhibit A. If Borrower is an entity, Borrower: (i) is duly organized, validly existing and
in good standing under the laws of the state specified in Exhibit A; (ii) is qualified to
do business and is in good standing in each jurisdiction in which the ownership of its assets or
the conduct of its business requires qualification as a foreign entity; and (iii) conducts business
under the trade name(s), if any, specified in Exhibit A, and no other trade name(s).
4.2 Authority. This Agreement has been duly authorized, and upon execution and
delivery will constitute the legal, valid and binding agreement and obligation of Borrower,
enforceable in accordance with its terms.
4.3 No Conflicts. The execution, delivery and performance by Borrower of this
Agreement and the grant of the lien herein do not: (i) violate any Governmental Requirements
applicable to Borrower; (ii) constitute a breach of any provision of the organizational papers of
Borrower; or (iii) constitute an event of default under any agreement of Borrower.
4.4 Lawsuits; Compliance; Taxes. There is no material lawsuit, tax claim or adjustment
or other dispute pending or threatened against Borrower or the Collateral. Borrower is in
compliance with all Governmental Requirements and has satisfied, prior to delinquency, all taxes
due or payable by Borrower or assessed against the Collateral.
4.5 Adequate Consideration. Borrower is receiving reasonably equivalent consideration
for entering into this Agreement.
4.6 Solvency. Borrower is now and shall be at all times hereafter solvent and able to
pay Borrowers debts (including trade debts) as they mature.
4.7 Title to Assets. Borrower: (i) has and at all times will have full legal and
equitable title to the LLC Interest free of all liens and interests, except Permitted Liens; and
(ii) has the right to grant security interests in the Collateral. No authorization or approval or
notice is required to grant the lien on the Collateral or for the delivery of this Agreement,
except for such authorizations, or notices which have been obtained or given prior hereto.
4.8 LLC Interest. Borrower is not in default of any duty or obligation required in
connection with the LLC Interest. All amounts and all Capital Calls owed in connection therewith
have been fully paid.
4.9 No Offsets or Defenses. All Distributions, Capital Accounts and other amounts owed
to Borrower in connection with the LLC Interest are subject to no defense or set off other than
those expressly specified in the LLC Agreement.
4.10 Company. The Company has been duly organized and is in good standing under the
laws of the State of its formation. The Company is financially solvent. The Company is not an
investment company within the meaning of the Investment Company Act of 1940, as amended.
4.11 LLC Agreement. The LLC Agreement identified in Exhibit B, a true and
complete copy of which has been provided to Lender, has been duly authorized, executed and
delivered by the parties thereto, has not been amended or supplemented, except as expressly
disclosed to Lender, and is in full force and effect and binding on all parties thereto in
accordance with its terms.
4.12 Non-Consumer. No item of Collateral is held primarily for personal, family or
household purposes or secures a loan which is obtained primarily for personal, family or household
4.13 Liquidity. Upon execution of this Agreement, Borrower will remain liquid, the
total value of its assets will exceed its liabilities (contingent and non-contingent); and it will
be able to pay its debts as they come due.
4.14 Continuing and Cumulative Warranties. The warranties and representations set
forth in this Section shall be true and correct in all material respects at the time of execution
of this Agreement and shall constitute continuing representations and warranties as long as any of
the Secured Obligations remain unpaid or unperformed. The warranties and representations shall be
cumulative and in addition to any other warranties and representations which Borrower shall give to
Lender, now or hereafter.
Borrower agrees, until the Secured Obligations are satisfied in full:
5.1 Transfer or Release of Assets. Borrower shall not transfer, sell, abandon, or
release the LLC Interest, any Capital Account, any amounts owed to Borrower in connection with the
LLC Interest or any Capital Account, or any other item of Collateral.
5.2 Lien Free. Borrower shall keep the Collateral free of all liens and interests,
except Permitted Liens. However except as expressly agreed in writing Lenders lien shall be senior
to all Permitted Liens.
5.3 LLC Interest. Borrower will not do any of the following without the prior written
consent of Lender: (i) withdraw capital or borrow from the Company or receive any Distributions
except as expressly permitted under the Distributions Section above or in Exhibit A; (ii)
vote or agree to dissolve the Company; (iii) vote or agree to make any material amendments to the
LLC Agreement; (iv) waive, or suspend any right to collect, any Distributions or
take any action
which would adversely affect Borrowers right to any Distributions or
Borrowers right to collect
any Distributions; or (v) waive any material default under or breach of the LLC Agreement. Borrower
will: (i) perform and observe all provisions of the LLC Agreement applicable to Borrower; (ii)
maintain and enforce the LLC Agreement; and (iii) satisfy all Capital Calls now or hereafter
received by Borrower.
5.4 Records. As regards any Collateral, Borrower shall: (i) maintain a standard and
modern system of accounting in accordance with generally accepted accounting principles, or such
other accounting principles as agreed to by Lender, consistently applied; and (ii) not modify or
change Borrowers method of accounting except to the extent required by any applicable new statute
or regulation. Borrowers Books shall be accurate and complete. On Lenders request, Borrower shall
deliver to Lender copies of Borrowers Books.
5.5 Inspection. Borrower shall permit Lender and any of Lenders representatives, on
demand, during business hours, to have access to and to examine and copy Borrowers Books
pertaining to the Collateral. Borrower shall deliver to Lender such reports and information
concerning the Collateral as Lender may reasonably request.
5.6 Taxes. Borrower shall pay all taxes relating to the Collateral when due.
5.7 Compliance with Applicable Laws. Borrower shall comply with and keep in effect all
Governmental Permits relating to it and the Collateral. Borrower shall comply with and shall cause
the Collateral to comply with: (i) all Governmental Requirements; (ii) all requirements and orders
of all judicial authorities which have jurisdiction over it or the Collateral; and (iii) all
covenants, conditions, restrictions and other documents relating to Borrower or the Collateral.
5.8 Notifications. Borrower shall promptly notify Lender of any material decline in
value of, or loss of, or diminution in value of, any Collateral.
5.9 Expenses. Borrower agrees to reimburse Lender for any and all Lender Expenses, and
hereby authorizes and approves all advances and payments by Lender for items constituting Lender
5.10 Existence. If Borrower is an entity: (i) Borrower will maintain its existence in
good standing under the law of the state of its organization; (ii) will maintain its qualification
as a foreign entity in each jurisdiction in which the nature of its business requires such
qualification; and (iii) will not merge with any other entity without the consent of Lender except
for acquisitions or mergers which result in Borrower retaining 51% or more of the equity interest
of the resulting entity and control of the management of such entity.
5.11 Further Assurances. Upon Lenders request, Borrower, at Borrowers expense,
shall: (i) execute and deliver such further documents and notices satisfactory to Lender; (ii)
take any action requested by Lender to carry out the intent of this Agreement and the other Loan
Documents; and (iii) provide such reports and information available to Borrower concerning the
business, financial condition and business of Borrower.
EVENTS OF DEFAULT
The occurrence of any one or more of the following events shall constitute an Event of
Default under this Agreement, at the option of Lender:
6.1 Breach. There is a breach of any provision of this Agreement or discovery that any
material representations or warranty provided to Lender by, or on behalf of Borrower, was
materially inaccurate at the time given.
6.2 Lien Priority. Lender shall cease to have a valid and perfected first priority
lien on any of the Collateral subject only to such Permitted Liens, except for any lien that the
Lender has agreed in writing will be senior to Lenders lien.
6.3 Material Impairment. There is a material impairment of the value of the
6.4 LLC Interest. Borrower breaches any material provision of the LLC Agreement or
fails to make any Capital Contributions; or the LLC Interest is terminated or action is commenced
to terminate the LLC Interest.
6.5 Seizure of Collateral. Any portion of the Collateral is subject to attachment,
seizure or is otherwise levied upon or comes into possession of any Judicial Officer or Assignee.
6.6 Insolvency or Attachment. If Borrower: (i) fails to pay its debts as they become
due; (ii) commences dissolution or termination of its business; (iii) is the subject of any
voluntary or involuntary Insolvency Proceeding; (iv) is the subject of any involuntary lien; or (v)
is the subject of any receivership or similar proceeding.
6.7 Event of Default Under Loan Documents. There is an Event of Default under any of
the other Loan Documents.
LENDERS RIGHTS AND REMEDIES; WAIVER
7.1 Remedies. Subject to the limitations of certain rights of Lender to foreclose on
the Account only upon the occurrence of a Monetary Event of Default as provided in Exhibit
A, if an Event of Default occurs and is not cured by Borrower or waived by Lender, Lender shall
have all rights and remedies of a secured party under the Commercial Code and as otherwise provided
at law or in equity. Lender shall provide such notices as are required under the Commercial Code.
Lender may dispose of any item of Collateral in a manner permitted by the Commercial Code. All
proceeds from the Collateral shall be applied or disbursed as permitted under the Commercial Code.
7.2 Rights to Payment. Without limiting the foregoing, but subject to the limitations
of certain rights of Lender to foreclose on the Account only upon the occurrence of a Monetary
Event of Default as provided in Exhibit A upon the occurrence of an Event of Default,
Lender may: (i) make demand and collect all amounts owed to Borrower in connection with the LLC
Interest, the LLC Agreement, or any Capital Account; (ii) as regards the foregoing amounts, settle
or adjust disputes and claims directly with the Borrowers and compromise any obligations on terms
and in any order which the Lender considers advisable.
. Borrower waives: (i) all rights, remedies and benefits under California
Civil Code Sections 1479 and 2822(a); and (ii) all rights to require marshalling of assets or liens
or all rights to require Lender to exercise any other right or power or to pursue any other remedy
which Lender may have.
7.4 Judicial Action. If Lender, at its option, seeks to take possession of any or all
of the Collateral by court process, Borrower irrevocably and unconditionally agrees that a receiver
may be appointed by a court for such purpose without regard to the adequacy of the security for the
Secured Obligations and such receiver may, at Lenders option, collect or dispose of all or part of
7.5 Liability for Deficiency. If Borrower has executed a Guaranty, Borrower shall
remain liable for any deficiency remaining on the Secured Obligations after disposition of all or
any of the Collateral and Lenders application of the proceeds thereof to the Secured Obligations.
7.6 Actions. Borrower authorizes Lender, without notice or demand and without
affecting its liability hereunder, and without consent of Borrower, to: (i) take and hold
additional security for the payment of the Secured Obligations with the consent of the party
providing such security; and (ii) accept additional co-guarantors for the payment of the Secured
7.7 Power of Attorney. Borrower irrevocably appoints Lender, with full power of
substitution, as its attorney-in-fact, coupled with an interest, with full power, in Lenders own
name or in the name of Borrower: (i) at any time to sign, record and file all documents referred
to in this Agreement; and (ii) after an Event of Default: (a) to endorse any checks, notes and
other instruments or documents evidencing the Collateral, or proceeds thereof; (b) to discharge
claims, demands, liens, or taxes affecting any of the Collateral; (c) to settle, and give releases
of, any insurance claim that relates to any of the Collateral, obtain payment of claim, and make
all determinations with respect to any such policy of insurance, and endorse Borrowers name on any
proceeds of such policies of insurance; or (d) to instruct any Person having control of any books
or records relating to the Collateral to give Lender full rights of access thereto. Lender shall
have the right to exercise the power of attorney granted in this Section directly or to delegate
all or part of such power. Lender shall not be obligated to act on behalf of Borrower as
8.1 Waivers. (i) Borrower waives all presentments, demands for performance, notices of
nonperformance, protests, notices of protest, notices of dishonor, notices of default or demand,
notices of acceptance of and reliance on this Agreement and notices of the creation, or incurring
of new or additional indebtedness, notices of renewal, extension or modification of the
indebtedness, notices of any information about Borrower at any time learned by Lender and all other
notices to which Borrower might otherwise be entitled; (ii) Borrower waives any right to require
Lender to: (a) proceed against Borrower; (b) proceed against or exhaust any security held from any
Person or marshalling of assets or liens; (c) proceed against any other Guarantor; or (d) pursue
any other remedy available to Lender; (iii) Borrower waives any defense arising by reason of any
disability or other defense of Borrower or by reason of the cessation from any cause whatsoever of
the liability of Borrower; (iv) Borrower waives the benefit of any statute of limitations affecting
its liability hereunder or the enforcement hereof; (v) Borrower waives all rights and defenses
arising from Lenders election of remedies. Borrower acknowledges that the waivers provided herein
are made with Borrowers full knowledge of the significance of such waivers, and that Lender is
relying on such waivers.
9.1 Notices. Any notice, demand or request required hereunder shall be given in
writing (at the addresses set forth in Exhibit A) by any of the following means: (i)
personal service; (ii) electronic communication, whether by telex, telegram or telecopying or other
form of electronic communication; (iii) overnight courier; or (iv) registered or certified, first
class U.S. mail, return receipt requested, or to such other addresses as Lender or Borrower may
specify from time to time in writing.
(a) Any notice, demand or request sent pursuant to either subsection (i) or (ii), above, shall
be deemed received upon such personal service or upon dispatch by electronic means.
(b) Any notice, demand or request sent pursuant to subsection (iii), above, shall be deemed
received on the Business Day immediately following deposit with the overnight courier, and, if sent
pursuant to subsection (iv), above, shall be deemed received forty-eight (48) hours following
deposit into the U.S. mail.
9.2 Choice of Law
. This Agreement shall be determined under, governed by and construed
in accordance with California
law. The parties agree that all actions or proceedings arising in
connection with this Agreement shall be litigated only in the state courts located in the County of
San Francisco, State of California
, or the federal courts located in the Northern District of
. Borrower waives any right Borrower may have to assert the doctrine of forum non
or to object to such venue and hereby consents to any court-ordered relief.
9.3 Successors and Assigns; Assignment. This Agreement shall be binding and deemed
effective when executed by Borrower and accepted and executed by Lender. This Agreement shall be
binding on Lenders and Borrowers successors and assigns. Borrower agrees that it may not assign
this Agreement without Lenders prior written consent. Lender may assign, in whole or in part, all
of its right, title and interest in and to this Agreement at any time without the consent of
Borrower. In connection with any assignment, Lender may disclose all
documents and information that
Lender has or may hereafter have relating to Borrower. No consent to an assignment by Lender shall
release Borrower or any Guarantor from their obligations to Lender.
9.4 Severability; Waivers. Each provision of this Agreement shall be severable from
every other provision of this Agreement for the purpose of determining the legal enforceability of
any provision. No waiver by the Lender of any of its rights or remedies in connection with this
Agreement shall be effective unless such waiver is in writing and Signed by the Lender. No act or
omission by Lender to exercise a right as to any event shall be construed as continuing, or as a
waiver or release of, any subsequent right, remedy or recourse as to a subsequent event.
9.5 Attorneys Fees. On demand Borrower shall reimburse Lender for all costs and
expenses, including, without limitation, reasonable attorneys fees, costs and disbursements (and
fees and disbursements of Lenders in-house counsel) (collectively Attorneys Fees) expended or
incurred by Lender in any way in connection with the amendment and/or enforcement of this Agreement
and Lenders rights hereunder and to the Collateral whether or not suit is brought. Attorneys Fees
shall include, without limitation, attorneys fees and costs incurred in any State, Federal or
Bankruptcy Court, and in any Insolvency Proceeding of any kind in any way related to this
Agreement, the Note, or any item of Collateral and/or Lenders lien thereon.
9.6 Headings. Article and section headings are for reference only and shall not affect
the interpretation or meaning of any provisions of this Agreement.
9.7 Integration; Amendment. No modification or amendment to this Agreement, or
novation of the obligations under this Agreement, shall be effective unless in writing, executed by
Lender and the other relevant parties. Except for currently existing obligations of Borrower to
Lender, all prior agreements, understandings, representations, warranties, and negotiations between
the parties, whether oral or written, if any, which relate to the substance of this Agreement, are
merged into this Agreement. Borrower hereby waives the right to assert any agreement, promise, fact
or any parol (oral) evidence which is contrary to the terms or representations specified in this
9.8 Joint and Several Liability. Should more than one Person sign this Agreement as
Borrower, the obligations of each Signatory shall be joint and several.
9.9 Counterparts; Electronic Signatures. This Agreement may be executed in
counterparts, each of which when so executed shall be deemed an original, but all such counterparts
shall constitute but one and the same agreement. A signed copy of this Agreement transmitted by a
party to another party via facsimile or an emailed pdf version shall be binding on the signatory
9.10 WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, LENDER AND BORROWER
HEREBY VOLUNTARILY, UNCONDITIONALLY AND IRREVOCABLY WAIVE TRIAL BY JURY IN ANY LITIGATION OR
PROCEEDING IN A STATE OR FEDERAL COURT WITH RESPECT TO, IN CONNECTION WITH, OR
ARISING OUT OF THIS
AGREEMENT OR THE OTHER CREDIT DOCUMENTS OR THE SECURED OBLIGATIONS, OR ANY INSTRUMENT OR DOCUMENT
DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING
WITHOUT LIMITATION, CLAIMS RELATING TO THE APPLICATION OR THE VALIDITY, PROTECTION, INTERPRETATION,
COLLECTION OR ENFORCEMENT THEREOF, OR ANY OTHER CLAIM OR DISPUTE HOWSOEVER ARISING (INCLUDING TORT
AND CLAIMS FOR BREACH OF DUTY), BETWEEN LENDER AND BORROWER.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGE TO FOLLOW]
This Agreement is executed as of the date stated at the top of the first page.
FIRST REPUBLIC BANK, a Division
of Bank of America, N.A.
This Exhibit A is an integral part of the Agreement between Lender and Borrower, and the
following terms are incorporated in and made a part of the Agreement to which this Exhibit
A is attached:
||Borrower: Borrower represents that his/her/its name, address and state of
incorporation or formation (if Borrower is a registered entity) is as follows:
||Name: Greenhill & Co., Inc.
||Trade Names or DBAs (if any): N/A
||Type of Entity and State of Formation or Incorporation: Corporation, Delaware
||Address for Notices: 300 Park Avenue, New York, New York 10022
||Tax Identification Number or Social Security Number: 51-05000737
|2. Lenders Notice Address:
||FIRST REPUBLIC BANK
111 Pine Street
San Francisco, CA 94111
Attn: Commercial Loan Operations
||Disposition of Distributions:
||Liquidation Distributions. Whether or not a Monetary Event of Default
has occurred, all Liquidation Distributions whether held in the Account or not, will be
applied to the Secured Obligations.
||Interim Distributions. Absent a Monetary Event of Default which is
continuing, all Interim Distributions may be released from the Account to Borrower or
disbursed by Borrower to pay tax obligations of Greenhill Capital Partners, LLC;
Greenhill Capital Partners II, LLC and of Greenhill & Co. LLC; and for other general
||Monetary Event of Default. If a Monetary Event of Default has occurred
and is continuing, all Distributions will be paid to Lender and whether held in the
Account or not, all Distributions and their proceeds will be applied to the Secured
||Monetary Event of Default. The term Monetary Event of Default shall
mean any failure to make a timely monetary payment to, or at the request of Lender,
provided for under the Loan Agreement or the Note or any Loan Document (whether or not
notice of such missed payment is required under the Loan Agreement).
||Additional Covenants: N/A
DESCRIPTION OF COLLATERAL
The Collateral (Collateral) consists of all of the right, title and interest of Borrower in and
to the following assets whether currently existing or hereafter arising:
(a) all Capital Accounts which are held for, or in the name of, Borrower by or with the Company;
(b) all Distributions and other rights to payment arising from or on account of the LLC Interest;
(c) all Accounts, General Intangibles, Instruments, and Chattel Paper related to or arising in
connection with any of the foregoing assets;
(d) all proceeds of any of the foregoing, including without limitation, all Accounts, Deposit
Accounts, including, with out limitation, the Deposit Account specified below (Deposit Account),
Chattel Paper, Instruments and General Intangibles arising from or on account of any of the
foregoing and any deposit accounts which contain the proceeds of any of the foregoing; and
(e) all Borrowers books and records, which relate to any of the foregoing.
Capital Account means any account or credit maintained or owed directly or indirectly by the
Company to or for Borrower or in Borrowers name: (i) on account of capital contributions of
Borrower to or for the Company; and/or (ii) which represents Borrowers equity interest in the
Company, and/or (iii) which represents the value of Borrowers LLC Interest.
Deposit Account means Account No. ___maintained by Secured Party in the name of Borrower.
Distributions mean all amounts and rights to payment, payments and distributions owed to, paid
to, or held for, or available to Borrower or in Borrowers name (in whichever form they exist,
whether as Instruments, Chattel Paper, Accounts, General Intangibles, Financial Assets or
otherwise) arising from, or on account of: (i) the LLC Interest, and (ii) all Capital Accounts,
including, without limitation, all Interim Distributions and all Liquidation Distributions.
Interim Distribution means any Distributions made in the ordinary course of business of the
subject entity and not in connection with a Liquidation Distribution.
Liquidation Distribution means all Distributions that are liquidating dividends or final return
on capital to Borrower or repayment of equity in connection with the liquidation, dissolution or
termination of the Company.
LLC Agreement means the following agreement(s) Amended and Restated Operating Agreement of
Greenhill & Co, LLC dated May 3, 2004, and all amendments thereto.
LLC Interest means the membership interest of Borrower in the Company as provided in the LLC
Unless otherwise defined herein, the terms used herein shall have the meaning provided in the
Uniform Commercial Code, as now enacted or hereafter amended, applicable in the State of