Exhibit 10.3
Cira Center, 2929 Arch Street, 17th Floor, Pennsylvania 19104
Phone: 215.701.9555 Fax: 215.701.8281
March 23, 2007
Cohen & Company Financial Management, LLC
2929 Arch Street, Suite 1703
Philadelphia, PA 19104
Re: | Kleros Preferred Funding VI Fee |
Ladies and Gentlemen:
We refer to the Warehouse Risk Sharing Agreement (the “Risk Sharing Agreement”) dated as of February 7, 2007, between Merrill Lynch and Alesco Holdings, Ltd. (“Holdings”), a subsidiary of Alesco Financial Inc. (“AFN”) pursuant to which Holdings deposited collateral security to support the purchase of a diversified portfolio of securities. The Risk Sharing Agreement modified the terms of a Warehouse Agreement (the “Warehouse Agreement”) between Merrill Lynch and Strategos Capital Management, LLC (the “Asset Manager”) dated as of September 28, 2006. Capitalized terms used but not defined herein shall have the meanings given to them in the Warehouse Agreement
In consideration of the benefits that the Asset Manager and its affiliates received in connection with the closing of Kleros Preferred Funding VI, which were in part attributable to Holdings’ deposit of collateral security in connection with the Warehouse Agreement, the Asset Manager agrees to pay a one-time capital commitment fee of $1.2 million to Holdings within forty-five (45) days after the date of this letter agreement.
If the foregoing is acceptable, kindly execute this letter agreement in the place indicated below.
Sincerely, |
ALESCO FINANCIAL INC. |
/s/ James J. McEntee, III |
Name: James J. McEntee, III |
Title: President and CEO |
ALESCO HOLDINGS, LTD. |
/s/ John J. Longino |
Name: John J. Longino |
Title: CFO and Treasurer |
ACCEPTED AND AGREED |
This 23rd day of April, 2007 |
STRATEGOS CAPITAL MANAGEMENT, LLC |
/s/ Alex Cigiolle |
Name: Alex Cigiolle |
Title: Managing Director |
COHEN & COMPANY |
/s/ Christopher Ricciardi |
Name: Christopher Ricciardi |
Title: CEO and President |