Document:

Amendment to Credit Agreement

 EXHIBIT 10.1 
  
 

 
  
 12/05 AMENDMENT TO CREDIT
AGREEMENT 
 effective as of December 22, 2005 
  
 amending the 
 8/05 AMENDED AND RESTATED SENIOR SECURED 
 CREDIT AGREEMENT 
 dated as of August 1, 2005 
 by and among 
  
 HOMEBANC CORP. 
 and 
 HOMEBANC MORTGAGE CORPORATION 
  
 and 
  
 JPMORGAN CHASE BANK, N.A. 
 as Administrative Agent, Collateral Agent and a Lender, 
  
 and 
  
 the other Lender(s) parties
hereto 
  
 KEYBANK NATIONAL ASSOCIATION 
 as Syndication Agent 
  
 COMMERZBANK, A.G., NEW YORK BRANCH and GRAND CAYMAN BRANCH, 
 U.S. BANK
NATIONAL ASSOCIATION, 
 BNP PARIBAS 
 and 
 UNITED OVERSEAS BANK LIMITED, NEW YORK AGENCY 
 as Documentation Agents 
  
 J.P. MORGAN SECURITIES INC. 
 Sole
Bookrunner 
 and Lead Arranger 
  
 $500,000,000 Senior Secured Revolving Credit 
  
 

 

 Index of Defined Terms 
  

			
	 	  	Page

	 12/05 Amendment
	  	1
	 12/05 Amendment Effective Date
	  	1
	 2006 Capital Program
	  	2
	 8/05 Credit Agreement
	  	1
	 Adjusted Tangible Net Worth
	  	2
	 Agent
	  	1
	 Amendment
	  	1
	 Capital Trust Entity
	  	2
	 Companies
	  	1
	 Company
	  	1
	 Current Credit Agreement
	  	1
	 HC
	  	1
	 HMC
	  	1
	 JPMorgan
	  	1
	 Lenders
	  	1
	 Qualified Subordinated Debt
	  	4
	 Qualified Trust Preferred Securities
	  	2

 Table of Contents 
  

					
	 	 	 	  	Page

	 1
	 	DEFINITIONS	  	2
	 7
	 	COLLATERAL	  	4
	 8
	 	CONDITIONS PRECEDENT	  	5
	 9
	 	REPRESENTATIONS	  	5
	 11
	 	NEGATIVE COVENANTS	  	5
	 12
	 	DEFAULTS AND REMEDIES	  	6
	 16
	 	MISCELLANEOUS	  	7

  

 i 

 12/05 AMENDMENT TO CREDIT AGREEMENT 
  
 Preamble 
  
 This 12/05 Amendment to Credit Agreement (the “12/05 Amendment“ or, within itself only, this “Amendment“)
effective as of December 22, 2005 (the “12/05 Amendment Effective Date“) amending (for the second time) the 8/05 Amended and Restated Senior Secured Credit Agreement (the “8/05 Credit Agreement“
and as it may be supplemented, amended or restated, the “Current Credit Agreement“), executed as of August 1, 2005, among: 
  
 (i) HOMEBANC CORP., a Georgia corporation (“HC“), its wholly-owned subsidiary, HOMEBANC MORTGAGE CORPORATION, a Delaware
corporation (“HMC“; HC and HMC being sometimes referred to individually as a “Company“ and together as the “Companies“), each having its principal office at 2002 Summit
Boulevard, Suite 100, Atlanta, Georgia 30319; 
  
 (ii) JPMORGAN
CHASE BANK, N.A. (“JPMorgan“), a national banking association, acting herein as a Lender and agent and representative of the other Lenders (in that capacity JPMorgan is called the “Agent“); and

  
 (iii) such other Lenders as may from time to time be party to
this Agreement (together with JPMorgan as a lender, the “Lenders“). 
  
 Each of the parties hereto recites and provides as follows: 
  
 Recitals 
  
 The Companies
have asked the Lenders and the Agent to (i) allow HC or HMC to issue Qualified Trust Preferred Securities in an amount not to exceed $150,000,000, (ii) amend the Total Recourse Liabilities to Adjusted Tangible Net Worth Ratio to 8:1, and
(iii) clarify that proposed 2006 Capital Program does not trigger the change in the Total Liabilities to Adjusted Tangible Net Worth ratio until the increase in capital exceeds $50,000,000 in the aggregate prior to May 31, 2006, and the
Lenders and the Agent have agreed to do so on the terms and subject to the conditions of this Amendment. 
  
 All capitalized terms used in the 8/05 Credit Agreement and used but not defined differently in this Amendment have the same meanings here as there.

  
 The Sections of this Amendment are numbered to correspond with
the numbers of the Sections of the 8/05 Credit Agreement amended hereby and are accordingly often nonsequential. 
  
 If there is any conflict or inconsistency between (i) these recitals and the following agreements; (ii) any of the terms or provisions of any of
the other Facilities Papers and this Amendment; or (iii) any provision of this Amendment and any later supplement, amendment, restatement or replacement of it then in each case the latter shall govern and control. 

 Agreements 
  

In consideration of the premises, the mutual agreements stated below and other good and valuable consideration paid by each party to each other party
to this Amendment, the receipt and sufficiency of which each hereby acknowledges, the parties hereby agree as follows. 
  
 1 DEFINITIONS 
  
 1.1. Defined Terms. Effective from and after the 12/05 Amendment Effective Date: 
  
 A. The following new definitions are added to Section 1.2 of the Current Credit Agreement, in
alphabetical order (except where otherwise specified). 
  
 “12/05 Amendment” means the 12/05 Amendment to Credit Agreement effective as of December 22, 2005, amending this Agreement. 
  
 “12/05 Amendment Effective Date” means December 22, 2005, the effective date of
the 12/05 Amendment. 
  
 “2006 Capital
Program” means HC’s efforts to increase capital through the public sale or sales of additional equity during the 2006 calendar year. 
  
 “Capital Trust Entity” means HMB Capital Trust I and any other unconsolidated subsidiary of HC or HMC created
solely for the purpose of the issuance of trust preferred securities and whose common equity interests are solely held by HC or HMC, as applicable. 
  
 “Qualified Trust Preferred Securities” means trust preferred securities, including all junior subordinated
debentures and guaranties related to the issuance of such trust preferred securities, issued by a Capital Trust Entity, provided such issued securities, debentures and guaranties qualify as Qualified Subordinated Debt. 
  
 B. The following definition is amended to read as follows: 
  
 “Adjusted Tangible Net Worth“ means,
on any day: 
  
 A. for HC: 
  
 (a) the excess of the total assets over Total Liabilities of
HC on that day — including assets and liabilities of its wholly-owned subsidiaries — each being determined in accordance with GAAP consistent with the accounting principles applied in the preparation of the Financial Statements referred to
in Section 9.4; 
  
 less         (b) the value, if any, in excess of the lesser of (i) sixty-seven and one half percent (67.5%) of the Appraised Value of such capitalized 
  

 2 

 mortgage loan servicing rights or (ii) one percent (1%) of the aggregate principal balances of
the portfolio of Serviced Loans in respect of such capitalized mortgage loan servicing rights included in the Financial Statements referred to in Section 9.4 for capitalized mortgage loan servicing rights; 
  
 less        
(c) aggregate investments in nonconsolidated Subsidiaries and Affiliates included in the Financial Statements referred to in Section 9.4, other than any common equity interests issued by a Capital Trust Entity and held by
HC or HMC; 
  
 less         (d) net total advances to nonconsolidated Subsidiaries and Affiliates outstanding; 
  
 less         (e) goodwill and all other assets not supported by or representative of a
tangible asset, which intangible assets would be deemed by HUD to be unacceptable for the purpose of calculating adjusted net worth in accordance with HUD requirements in effect as of such day; 
  
 less        
(f) all accumulated other comprehensive income; 
  
 plus         (g) the amount of (negative) accumulated other comprehensive income that exceeds (negative) Ten Million Dollars ($10,000,000); 
  
 plus        
(h) Qualified Subordinated Debt; and 
  
 B. for HMC: 
  
 (i) the excess of
HMC’s total assets over Total Liabilities on that day — including assets and liabilities of its wholly-owned subsidiaries — each being determined in accordance with GAAP consistent with the accounting principles applied in the
preparation of the Financial Statements referred to in Section 9.4; 
  
 less         (ii) the value included in the Financial Statements referred to in
Section 9.4 for capitalized mortgage loan servicing rights; 
  
 less         (iii) aggregate investments in nonconsolidated Subsidiaries and
Affiliates included in the Financial Statements referred to in Section 9.4; 
  
 less         (iv) net total advances to nonconsolidated Subsidiaries and Affiliates
outstanding; 
  
 less         (v) goodwill and all other assets not supported by or representative of a tangible asset, which intangible assets would be deemed by HUD to be unacceptable for the purpose of
calculating adjusted net worth in accordance with HUD requirements in effect as of such day; 
  

 3 

 less         (vi) all accumulated
other comprehensive income; 
  
 plus         (vii) a value for the capitalized mortgage loan servicing rights excluded in clause (ii) above that is an amount equal to the lesser of (i) sixty-seven
and one-half percent (67.5%) of the value of such capitalized mortgage loan servicing rights as determined by the most recent appraisal thereof approved by the Agent and (ii) one percent (1%) of the unpaid principal balance of the
portfolio of Serviced Loans in respect of such capitalized mortgage loan servicing rights; and 
  
 plus         (viii) the amount of (negative) accumulated other comprehensive income
that exceeds (negative) Five Million Dollars ($5,000,000). 
  
 “Qualified Subordinated Debt“ means Debt (including all junior subordinated debentures and guaranties related to the issuance of trust preferred securities by any Capital Trust Entity) of the
Companies to any Person (i) the papers evidencing, securing, governing or otherwise related to which Debt impose covenants and conditions on the debtor under them that are no more restrictive or onerous than the covenants and conditions imposed
on the Companies by this Agreement, (ii) that is subordinated to the Obligations pursuant to a currently effective and irrevocable Subordination Agreement approved by the Agent and (iii) the principal of which is not due and payable until
ninety (90) days or more after the Maturity Date; provided, that inter-company Debt incurred pursuant to Section 11.4(f)(v) hereof shall be deemed not to be Qualified Subordinated Debt for all purposes hereunder. 

 
 C. Exhibit 12/05-E attached to this Amendment is hereby
substituted for Exhibit E to the 8/05 Credit Agreement. 
  
 7 COLLATERAL 
  
 The provisions of
Section 7.1 of the 8/05 Credit Agreement are not otherwise amended hereby. Cumulative of such existing provisions, as security for the payment of the Loan and for the payment and performance of all of the Obligations, each Company
hereby GRANTS to the Agent (as agent and representative of the Lenders) a first priority security interest in all of such Company’s present and future estate, right, title and interest in and to the Collateral, in addition to and cumulative of
the security interest in the Collateral granted to the Agent in the 8/05 Credit Agreement, and the parties hereby declare and confirm that all such security interests were and are granted to and held by the Agent (as agent and representative of the
Lenders.) 
  

 4 

 8 CONDITIONS PRECEDENT 
  
 Section 8 of the 8/05 Credit Agreement is further amended by adding the following new
Section 8.4 to the end of Section 8, viz.: 
  
 8.4 Borrowings After the 12/05 Amendment Effective Date. In addition to the conditions precedent stated in Sections 8.1,
8.2 and 8.3 above, the obligations of the Lenders to fund and the Agent to disburse any Advances under this Agreement after the 12/05 Amendment Effective Date are subject to the condition precedent that the Agent shall have
received: 
  
 (a) the 12/05 Amendment, duly
executed by each Company, the Agent and the Required Lenders; 
  
 (b) a certificate of each Company’s corporate secretary (i) as to the incumbency of the officers of such Company executing the 12/05 Amendment and all other Facilities Papers executed or to be executed by or
on behalf of such Company in connection with the 12/05 Amendment, (ii) as to the authenticity of their signatures (specimens of their signatures shall be included in such certificate or set forth on an exhibit attached to it, and the Agent and
the Lenders shall be entitled to rely on that certificate until such Company has furnished a new certificate to the Agent) and (iii) that there have been no amendments to the Company’s certificate of incorporation or bylaws since
September 30, 2005; and 
  
 (c) such other
documents, if any, as shall be specified by the Agent. 
  
 9
REPRESENTATIONS 
  
 Each Company hereby republishes its
warranties and representations made in the 8/05 Credit Agreement effective (except as to those specified to relate only to a specific date) as of the 12/05 Amendment Effective Date. 
  
 11 NEGATIVE COVENANTS 
  
 Sections 11.4(b), (c) and (f) are amended to henceforth read as follows: 
  
 11.4(b) HC’s Total Recourse Liabilities to Adjusted
Tangible Net Worth Ratio. Permit the ratio of: 
  
 (x) the Total Recourse Liabilities of HC and its Subsidiaries, on a consolidated basis; 
  
 to (y) the Adjusted Tangible Net Worth of HC and its Subsidiaries, on a consolidated basis; 
  
 to exceed 8.00:1.00 as of the end of any calendar month or any of HC’s
fiscal quarters or fiscal years. 
  

 5 

 11.4(c) HC’s Total Liabilities to Adjusted Tangible Net Worth Ratio. Permit
the ratio of: 
  
 (x) the Total Liabilities of HC
and its Subsidiaries minus Qualified Subordinated Debt, on a consolidated basis; 
  
 to (y) the Adjusted Tangible Net Worth of HC and its Subsidiaries, on a consolidated basis; 
  
 as of the end of any calendar month or any of HC’s fiscal quarters or
fiscal years to exceed as follows: 
  

			
	 On and after this Date

	  	the maximum
ratio is

	Effective Date	  	20.00:1.00
	November 30, 2005	  	25.00:1.00
	 The earlier of (i) the time the 2006 Capital Program exceeds $50,000,000 in the aggregate or (ii) May 31, 2006
	  	20.00:1.00

  
 11.4(f) Debt Limitation. Incur any Debt for borrowed money or for the deferred purchase price of property or services other than (i) Debt to the Lenders under this Agreement, (ii) Debt under warehousing, repurchase or other
mortgage-related asset agreements to finance the Companies’ inventory of Mortgage Loans and other mortgage-related assets, (iii) accounts payable incurred in the ordinary course of business with standard payment terms, (iv) Debt of up
to Twenty Million Dollars ($20,000,000) incurred in the ordinary course of business (for purposes of this provision, junior subordinated debt to support trust common securities issued by HC or HMC concurrently and in connection with the issuance of
junior subordinate debentures issued by HC or HMC shall be deemed debt incurred in the ordinary course of business); (v) Debt of one Company owed to the other Company, so long as such inter-company Debt is subordinated, in form acceptable to
the Agent, to the Debt under this Facility and (vi) Debt of up to One Hundred Fifty Million Dollars ($150,000,000) issued by HC or HMC to support the issuance of Qualified Trust Preferred Securities and related common securities by any and all
Capital Trust Entities. 
  
 12 DEFAULTS AND REMEDIES

  
 Section 12.1(b) is
amended to henceforth read as follows: 
  
 (b)
Failure of the Companies or any of their Subsidiaries to pay any other Debt when due, or any default in the payment when due of any principal or interest on any other Debt or in the payment when due of any contingent 
  

 6 

 obligation; or breach or default with respect to any other material term of any other debt or of any
promissory note, bond, loan agreement, reimbursement agreement, mortgage, indenture or other agreement relating thereto, if the effect of any such failure, default or breach referred to in this Section 12.1(b), is to cause, or to
permit the holder or holders of such obligation (or a trustee on behalf of such holder or holders) with or without notice, the passage of time or both, to cause debt of the Companies or any of their Subsidiaries in the aggregate amount of One
Million Dollars ($1,000,000) or more to become or be declared due before its stated maturity. 
  
 16 MISCELLANEOUS 
  
 Section 16.11 is amended to read as follows: 
  
 16.11 Notice Pursuant to Tex. Bus. & Comm. Code §26.02. THE 8/05 CREDIT AGREEMENT, AS AMENDED BY THE 9/05
AMENDMENT, THE 12/05 AMENDMENT AND THE OTHER FACILITIES PAPERS TOGETHER CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
  
 (The remainder of this page is intentionally blank; signature pages follow.) 
  

 7 

 EXECUTED as of the 12/05 Amendment Effective Date. 
  

			
	 HOMEBANC CORP.

		
	 By:
	 	 /s/ James L. Krakau

	 Name:
	 	 James L. Krakau

	 Title:
	 	 Senior Vice President

	
	 HOMEBANC MORTGAGE CORPORATION

		
	 By:
	 	 /s/ James L. Krakau

	 Name:
	 	 James L. Krakau

	 Title:
	 	 Senior Vice President

  
 Unnumbered
counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp.,
HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 

			
	JPMORGAN CHASE BANK, N.A.
	as the Agent and as a Lender
		
	By:	 	 /s/ Michael W. Nicholson

	Name:	 	Michael W. Nicholson
	Title:	 	Senior Vice President

  
  
 Unnumbered counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 

			
	 COMMERZBANK AKTIENGESELLSCHAFT

	 NEW YORK AND GRAND CAYMAN BRANCHES
 as a Lender

		
	 By:
	 	 /s/ Gerard A. Araw

	 Name:
	 	 Gerard A. Araw

	 Title:
	 	 Assistant Treasurer

		
	 By:
	 	 /s/ Michael P. McCarthy

	 Name:
	 	 Michael P. McCarthy

	 Title:
	 	 Vice President

  
 Unnumbered
counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp.,
HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 
  
  

			
	KEYBANK NATIONAL ASSOCIATION,
	as a Lender
		
	By:	 	 /s/ Paul E. Henson

	Name:	 	Paul E. Henson
	Title:	 	Executive Vice President

  
 Unnumbered
counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp.,
HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 

			
	U.S. BANK NATIONAL ASSOCIATION,
	as a Lender
		
	By:	 	 /s/ William J. Umscheid

	Name:	 	William J. Umscheid
	Title:	 	Vice President

  
 Unnumbered
counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp.,
HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 

			
	BNP PARIBAS,
	as a Lender
		
	By:	 	 /s/ Barry K. Chung

	Name:	 	Barry K. Chung
	Title:	 	Vice President

  
 Unnumbered
counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp.,
HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 

			
	UNITED OVERSEAS BANK LIMITED
	 NEW YORK AGENCY,
 as a
Lender

		
	By:	 	 /s/ Wong, Kwong Yew

	Name:	 	Wong, Kwong Yew
	Title:	 	FVP & General Manager
		
	By:	 	 /s/ Philip Cheong

	Name:	 	Philip Cheong
	Title:	 	VP & Deputy General Manager

  
 Unnumbered
counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp.,
HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 

			
	FIRST COMMERCIAL BANK,
	 NEW YORK AGENCY,
 as a
Lender

		
	By:	 	 /s/ Bruce M.J.Ju

	Name:	 	Bruce M.J.Ju
	Title:	 	VP & GM

  
 Unnumbered
counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp.,
HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 

			
	 BANK HAPOALIM B.M.,

	 as a Lender

		
	 By:
	 	 /s/ James P. Surless

	 Name:
	 	 James P. Surless

	 Title:
	 	 Vice President

		
	 By:
	 	 /s/ Charles McLaughlin

	 Name:
	 	 Charles McLaughlin

	 Title:
	 	 Senior Vice President

  
 Exhibits 
  

			
	Exhibit 12/05-E	 	 -             Form of Officer’s Certificate

  
 Unnumbered
counterpart signature page to 12/05 Amendment to 8/05 Amended and Restated 
 Senior Secured Credit Agreement among HomeBanc Corp.,
HomeBanc Mortgage Corporation, 
 JPMorgan Chase Bank, et al. 

 EXHIBIT 12/05-E 
 TO 8/05 CREDIT AGREEMENT 
  
 Form of Officer’s Certificate with computations 
 to show compliance or non-compliance with 
 certain financial covenants 
  
 OFFICER’S CERTIFICATE 
  

			
	 AGENT:
	 	JPMORGAN CHASE BANK, N.A.
		
	 COMPANY:
	 	HOMEBANC CORPORATION (“HC”)
	
	 SUBJECT PERIOD:                        ended
            , 200    

		
	 DATE:
	 	                       ,
200    

  
 This certificate is
delivered to the Agent under the 8/05 Amended and Restated Senior Secured Credit Agreement dated as of August 1, 2005 (as supplemented, amended or restated from time to time, the “Current Credit Agreement”), among HC,
its Subsidiary, HomeBanc Mortgage Corporation, the Agent and the financial institutions now or hereafter parties thereto (the “Lenders”). Unless they are otherwise defined in this request, terms defined in the Current Credit
Agreement have the same meanings here as there. 
  
 The
undersigned officer of HC certifies to the Agent and the Lenders that on the date of this certificate that: 
  
 1. The undersigned is an incumbent officer of HC, holding the title stated below the undersigned’s signature below. 
  
 2. HC’s financial statements that are attached to this certificate were
prepared in accordance with GAAP (except that interim — i.e., other than annual — financial statements exclude notes to financial statements and statements of changes to stockholders’ equity and are subject to year-end
adjustments) and (subject to the aforesaid proviso as to interim financial statements) present fairly the financial position and results of operations of HC and its Subsidiaries, on a consolidated basis, as of
                         and for the (check, as applicable)  ̈ month  ̈ one,  ̈ two or  ̈ three quarter(s) of HC’s fiscal year, as the case may be,
ending on the last day of that period (the “Subject Period”). 
  
 3. The undersigned officer of HC supervised a review of the activities of HC and its Subsidiaries during the Subject Period in respect of the following matters and has determined the following: (a) to undersigned
officer’s best knowledge, except to the extent that (i) a 

 representation or warranty speaks to a specific date or (ii) the facts on which a representation or warranty is
based have changed by transactions or conditions contemplated or expressly permitted by the Facilities Papers, the representations and warranties of the Companies in Section 9 of the Current Credit Agreement are true and correct
in all material respects, other than for the changes, if any, described on the attached Annex A; (b) the Companies have complied with all of their obligations under the Facilities Papers, other than for the
deviations, if any, described on the attached Annex A; (c) no Event of Default has occurred that has not been declared by the Agent in writing to have been cured or waived, and no Default has occurred that has not been cured
before it became an Event of Default, other than those Events of Default and/or Defaults, if any, described on the attached Annex A (d) compliance by HC with certain financial covenants in Section 11 of
the Current Credit Agreement is accurately calculated on the attached Annex A. 
  

			
	 HOMEBANC CORP.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 ANNEX A TO OFFICER’S CERTIFICATE 
  
 1. Describe deviations from compliance with obligations, if any — clause 3(b) of attached Officer’s
Certificate — if none, so state: 
  
 2. Describe Defaults or
Events of Default, if any — clause 3(c) of attached Officer’s Certificate — if none, so state: 
  
 3. Calculate compliance with covenants in Section 11 — clause 3(d) of attached Officer’s Certificate:

  
 (a) Section 11.4(a). HC’s Adjusted
Tangible Net Worth as of              is $                     (the minimum
under Section 11.4(a) is $225,000,000 plus 85% of the net proceeds realized by HC from equity offerings after its initial public offering.) 
  

(b) Section 11.4(b). HC’s Total Recourse Liabilities to Adjusted Tangible Net Worth ratio as of
                 is             :1.00 (the limit under Section 11.4(b) is
8.0:1:00.) 
  
 (c) Section 11.4(c). HC’s
Total Liabilities minus Qualified Subordinated Debt to Adjusted Tangible Net Worth ratio as of                      is
            :1.00 (the limit under Section 11.4(c) is as follows:) 
  

			
	 On and after this Date

	  	 the maximum
 ratio is

	 Effective Date
	  	20.00:1.00
	 November 30, 2005
	  	25.00:1.00
	 The earlier of (i) the time the 2006 Capital Program exceeds $50,000,000 in the aggregate or (ii) May 31, 2006
	  	20.00:1.00

 (d) Section 11.4(d). HC’s Liquidity is
$                    . (The minimum under Section 11.4(d) is $35,000,000.) 
  
 (e) Section 11.4(e). HMC’s Adjusted Tangible Net
Worth as of                  is $                    
(the minimum under Section 11.4(e) is $10,000,000.) 
  
 (f) Section 11.4(f). HC and its Subsidiaries have not incurred any Debt other than (i) Debt to the Lenders under the Current Credit Agreement, (ii) Debt under warehousing, repurchase or other mortgage-related
asset agreements to finance the Companies’ inventory of Mortgage Loans and other mortgage-related assets, (iii) accounts payable incurred in the ordinary course of business with standard payment terms, (iv) Debt of up to Twenty
Million Dollars ($20,000,000) incurred in the ordinary course of business (for purposes of this provision, junior subordinated debt to support trust common securities issued by HC or HMC concurrently and in connection with the issuance of junior
subordinate debentures issued by HC or HMC shall be deemed debt incurred in the ordinary course of business), (v) Debt of one Company owed to the other Company, so long as such inter-company Debt is subordinated, in form acceptable to the
Agent, to the Debt under this Facility and (vi) Debt of up to One Hundred Fifty Million Dollars ($150,000,000) issued by HC or HMC to support the issuance of Qualified Trust Preferred Securities by any and all Capital Trust Entities.

  
 (g) Section 11.4(g). HC has not declared or
paid any dividend or made any distribution directly or indirectly to its shareholders when, or after the payment of which, (i) any Default or Event of Default described in Sections 12.1(a), 12.1(b), or non-payment of any fee
described in 12.1(c) exists or (ii) when any Default or Event of Default other than those described in Sections 12.1(a), 12.1(b), or non-payment of any fee described in 12.1(c) exists, except to the
extent necessary to avoid the loss of HC’s federal tax status as a real estate investment trust. 
  
 (h) Section 11.4(h). The Companies have not directly or indirectly made any advance to (or declined or deferred any payment due from)
any stockholder where at the time of or immediately after such action (x) the Companies’ Adjusted Tangible Net Worth was or would be less than the minimum specified in clause (d) above or (y) any Default or Event of
Default existed or would exist[, except for the aggregate sum of $                     advanced by HMC to HC which was necessary to enable HC
to fund payment of a dividend the nonpayment of which would result in the loss of HC’s federal tax status as a real estate investment trust]. 
  
 (a) Section 11.4(i). The percentage of the aggregate principal balances of all of the Companies’ Serviced Loans that are In
Default as of                  is                 % (the maximum permitted
under Section 11.4(i) is 5%.)Amendment No. 7 dated December 22, 2005

 EXHIBIT 10.2 
  
 EXECUTION VERSION 
  
 AMENDMENT NO. 7 
 TO MASTER REPURCHASE
AGREEMENT 
  
 Amendment No. 7, dated as of
December 22, 2005 (this “Amendment”), by and among JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (the “Buyer”), ABETTERWAYHOME FINANCE, LLC (“Finance” and a “Seller”) and HOMEBANC
FUNDING CORP. (“Funding” and together with Finance, the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Sellers are parties to that certain Master Repurchase Agreement, dated as of March 8, 2004, Amendment No. 1 and Joinder dated as of June 7, 2004, Amendment No. 2, dated as of June 24, 2004,
Amendment No. 3, dated as of July 12, 2004, Amendment No. 4, dated as of October 12, 2004 and Amendment No. 5, dated as of December 27, 2004 and Amendment No. 6, dated as of July 13, 2005 (the
“Existing Repurchase Agreement”; as amended by this Amendment, the “Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Repurchase
Agreement. 
  
 The Buyer and the Sellers have agreed, subject to
the terms and conditions of this Amendment, that the Existing Repurchase Agreement be amended to terminate Finance as a Seller and to reflect certain agreed upon revisions to the terms of the Existing Repurchase Agreement. 
  
 Accordingly, the Buyer and the Sellers hereby agree, in consideration of the
mutual promises and mutual obligations set forth herein, that the Existing Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1. Termination of Finance as a Seller. As of the date hereof, Finance shall no longer be a Seller under the Repurchase Agreement. Buyer
hereby releases Finance from all of its obligations under the Existing Repurchase Agreement. Funding shall assume those obligations of Finance which by their terms otherwise survive the termination of the Repurchase Agreement and continue to bind
Funding. All references to “Seller” under the Repurchase Agreement shall be deemed to exclude Finance. 
  
 SECTION 2. Definitions. 
  
 2.1 Section 2 of the Existing Repurchase Agreement is hereby amended by adding the following definition in its proper alphabetical order: 

 
 “Second Lien Mortgage Loan” shall mean a prime credit,
closed-end, second lien Mortgage Loan where the second lien on the related Mortgaged Property is contemplated and incurred simultaneously with the first lien on the related Mortgaged Property with a minimum FICO score of 650.” 

 2.2 Section 2 of the Existing Repurchase Agreement is hereby amended by deleting the definitions of
“Asset Value”, “Mortgage” and “Mortgage Loan” and replacing them with the following language: 
  
 ““Asset Value” shall mean (a) with respect to each Purchased Mortgage Loan, other than a Second Lien Mortgage Loan,
(i) prior to the closing date for the Structured Asset Mortgage Investments II, Trust, Mortgage-Backed Pass-Through Certificates, the lesser of (A) 99% multiplied by the Market Value of such Mortgage Loan and (B) the outstanding
principal balance of such Mortgage Loan (ii) on or after the closing date for the Structured Asset Mortgage Investments II, Trust, Mortgage-Backed Pass-Through Certificates, the lesser of (A) 99% multiplied by the Market Value of such
Mortgage Loan and (B) 99% multiplied by the outstanding principal balance of such Mortgage Loan (b) with respect to each Second Lien Mortgage Loan, the lesser of (i) 95% multiplied by the Market Value of such Mortgage Loan and
(ii) the outstanding principal balance of such Mortgage Loan and (c) any other percentage agreed to by Buyer and Seller in the related Confirmation. Without limiting the generality of the foregoing, the Seller acknowledges that the Asset
Value of a Purchased Mortgage Loan may be reduced to zero by Buyer if: 
  
 (a) such Purchased Mortgage Loan ceases to be an Eligible Mortgage Loan; 
  
 (b) the Purchased Mortgage Loan has been released from the possession of the Custodian under the Custodial Agreement (other than Mortgage Loans shipped for sale or securitization under an appropriate Bailee Letter)
for a period in excess of 10 calendar days; 
  
 (c) the Purchased
Mortgage Loan has been subject to a Transaction for a period of greater than 120 days; 
  
 (d) such Purchased Mortgage Loan is a Delinquent Mortgage Loan; 
  
 (e) such Purchased Mortgage Loan is a High Cost Mortgage Loan; 
  
 (f) a First Payment Default occurs with respect to such Purchased Mortgage Loan; 
  
 (g) the Buyer has determined that the Purchased Mortgage Loan is not eligible for securitization in a transaction consistent
with the prevailing securitization industry; 
  
 (h) when such
Purchased Mortgage Loan is added to all other Purchased Mortgage Loans, the weighted average FICO score of all Second Lien Mortgage Loans that are Purchased Mortgage Loans is less than 720; 
  
 (i) when the Purchase Price for such Purchased Mortgage Loan is added to
other Purchased Mortgage Loans, the aggregate Purchase Price of all Alt-A Mortgage Loans that are Purchased Mortgage Loans exceeds $150 million; 
  
 (j) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all Alt-A
Mortgage Loans that have a FICO score of less than 640 exceeds 10% of all Purchased Mortgage Loans that are Alt-A Mortgage Loans; 
  

 -2- 

 (k) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans,
the weighted average FICO score of all Alt-A Mortgage Loans is less than 690; 
  
 (l) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans, the weighted average LTV of all Alt-A Mortgage Loans is greater than 80%; 
  
 (m) when the Purchase Price for such Purchased Mortgage Loan is added to
other Purchased Mortgage Loans, the aggregate Purchase Price of all Alt-A Mortgage Loans that are two-to-four family residential mortgage loans, cash-out refinanced loans and mortgage loans secured by investor properties that are not Full
Documentation Mortgage Loans combined exceeds 10% of all Purchased Mortgage Loans that are Alt-A Mortgage Loans; or 
  
 (n) when the Purchase Price for such Purchased Mortgage Loans is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all Second Lien
Mortgage Loans that are Purchased Mortgage Loans exceeds 5% of the Maximum Purchase Price.” 
  
 ““Mortgage” shall mean each mortgage, assignment of rents, security agreement and fixture filing, or deed of trust, assignment of
rents, security agreement and fixture filing, deed to secure debt, assignment of rents, security agreement and fixture filing, or similar instrument creating and evidencing a first lien or second lien on real property and other property and rights
incidental thereto.” 
  
 ““Mortgage
Loan” shall mean any first lien or second lien, one-to-four-family residential mortgage loan evidenced by a Mortgage Note and secured by a Mortgage, which Mortgage Loan is subject to a Transaction hereunder, which in no event shall include
any mortgage loan which (a) is subject to Section 226.32 of Regulation Z or any similar state law (relating to high interest rate credit/lending transactions), (b) includes any single premium credit life or accident and health
insurance or disability insurance, or (c) is a High Cost Mortgage Loan.” 
  
 SECTION 3. Schedule 1. The Existing Repurchase Agreement is hereby amended by: 
  
 3.1 deleting clauses (i), (n) and (r) of Schedule 1 in their entirety and replacing them with clauses (i), (n) and (r) on Exhibit A
hereto. 
  
 3.2 adding clause (kkk) to Schedule 1 with clause
(kkk) on Exhibit A hereto. 
  
 SECTION 4. Conditions
Precedent. This Amendment shall become effective on the date hereof (the “Amendment Effective Date”) subject to the satisfaction of the following conditions precedent: 
  
 4.1 Delivered Documents. On the Amendment Effective Date, the Buyer
shall have received the following documents, each of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered by duly authorized officers of the Buyer, Finance and Funding; 
  
  

 -3- 

 (b) Amendment No. 2 to Custodial Agreement, executed and delivered by duly
authorized officers of the Buyer, Finance, Funding and Custodian; 
  
 (c) Amendment No. 2 to Electronic Tracking Agreement, executed and delivered by duly authorized officers of the Buyer, Finance, Funding, MERS and the Electronic Agent; 
  
 (d) Amendment No. 2 to the Account Agreement, executed
and delivered by duly authorized officers of the Buyer, Finance, Funding and the Bank; 
  
 (e) Amendment No. 2 to the Cash Account Control Agreement, executed and delivered by duly authorized officers of the Buyer, Finance,
Funding and the Bank; 
  
 (f) Amendment
No. 3 to the Purchase, Warranties and Servicing Agreement, executed and delivered by duly authorized officers of the Buyer, the Purchasers, and the Companies; 
  
 (g) the termination letter to the Contribution Agreement, executed and delivered by duly authorized officers
of Finance and Funding; 
  
 (h) Uniform
Commercial Code terminations on Form UCC-3 with respect to Finance as debtor; and 
  
 (i) such other documents as the Buyer or counsel to the Buyer may reasonably request. 
  
 SECTION 5. Representations and Warranties. Finance and Funding each
hereby represents and warrants to the Buyer that it is in compliance with all the terms and provisions set forth in the Existing Repurchase Agreement on its part to be observed or performed, and that no Event of Default has occurred or is
continuing, and each hereby confirms and reaffirms the representations and warranties contained in Section 11 of the Existing Repurchase Agreement. 
  
 SECTION 6. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Repurchase Agreement shall continue to be, and
shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 7. Fees. Funding agrees to pay as and when billed by the Buyer all of the reasonable fees, disbursements and expenses of counsel to the Buyer in connection with the development, preparation and execution of, this Amendment or
any other documents prepared in connection herewith and receipt of payment thereof shall be a condition precedent to the Buyer entering into any Transaction pursuant hereto. 
  
 SECTION 8. Confidentiality. The parties hereto acknowledge that this Amendment, the Existing Repurchase Agreement,
and all drafts thereof, documents relating thereto and transactions contemplated thereby are confidential in nature and the Sellers agree 

  

 -4- 

 
that, unless otherwise directed by a court of competent jurisdiction, they shall limit the distribution of such documents and the discussion of such
transactions to such of its officers, employees, attorneys, accountants and agents as is required in order to fulfill its obligations under such documents and with respect to such transactions. 
  
 SECTION 9. GOVERNING LAW. THIS AMENDMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 SECTION 10. Counterparts. This Amendment may be executed in one or more counterparts and by different parties hereto
on separate counterparts, each of which, when so executed, shall constitute one and the same agreement. 
  
 SECTION 11. Conflicts. The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the
Existing Repurchase Agreement, the provisions of this Amendment shall control. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 -5- 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written. 
  

			
	 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
 as Buyer

		
	 By:
	 	 /s/ Jonathan P. Davis

	 Name:
	 	 Jonathan P. Davis

	 Title:
	 	 Vice President

	
	 ABETTERWAYHOME FINANCE, LLC
 as
Seller

		
	 By:
	 	 /s/ James L. Krakau

	 Name:
	 	 James L. Krakau

	 Title:
	 	 Senior Vice President

	
	 HOMEBANC FUNDING CORP.,
 as
Seller

		
	 By:
	 	 /s/ James L. Krakau

	 Name:
	 	 James L. Krakau

	 Title:
	 	 Senior Vice President

 EXHIBIT A TO AMENDMENT NO. 7 TO MASTER REPURCHASE AGREEMENT 
  
 “(i) Valid First Lien or Second Lien. The
Mortgage is a valid, subsisting, enforceable and perfected (a) with respect to each first lien Mortgage Loan, first priority lien and first priority security interest, or (b) with respect to each Second Lien Mortgage Loan, second priority
lien and second priority security interest, in each case, on the real property included in the Mortgaged Property, including all buildings on the Mortgaged Property and all installations and mechanical, electrical, plumbing, heating and air
conditioning systems located in or annexed to such buildings, and all additions, alterations and replacements made at any time with respect to the foregoing. The lien of the Mortgage is subject only to: 
  
 (i) the lien of current real property taxes and assessments
not yet due and payable; 
  
 (ii) covenants,
conditions and restrictions, rights of way, easements and other matters of the public record as of the date of recording acceptable to prudent mortgage lending institutions generally and specifically referred to in Buyer’s title insurance
policy delivered to the originator of the Mortgage Loan and (a) referred to or otherwise considered in the appraisal made for the originator of the Mortgage Loan or (b) which do not adversely affect the Appraised Value of the Mortgaged
Property set forth in such appraisal; 
  
 (iii)
other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property;
and 
  
 (iv) with respect to each Mortgage Loan which is a Second
Lien Mortgage Loan, a first lien on the Mortgaged Property. 
  
 Any security agreement, chattel mortgage or equivalent document related to and delivered in connection with the Mortgage Loan establishes and creates a valid, subsisting and enforceable (a) with respect to each first lien Mortgage
Loan, first priority lien and first priority security interest, or (b) with respect to each Second Lien Mortgage Loan, second priority lien and second priority security interest, in each case, on the property described therein and Seller has
full right to pledge and assign the same to Buyer. The Mortgaged Property was not, as of the date of origination of the Mortgage Loan, subject to a mortgage, deed of trust, deed to secure debt or other security instrument creating a lien subordinate
to the lien of the Mortgage;” 
  
 “(n) Title
Insurance. The Mortgage Loan is covered by either (i) an attorney’s opinion of title and abstract of title, the form and substance of which is acceptable to prudent mortgage lending institutions making mortgage loans in the area
wherein the Mortgaged Property is located or (ii) an ALTA lender’s title insurance policy or other generally acceptable form of 

 
policy or insurance acceptable to Fannie Mae or Freddie Mac and each such title insurance policy is issued by a title insurer acceptable to Fannie Mae or
Freddie Mac and qualified to do business in the jurisdiction where the Mortgaged Property is located, insuring Seller, its successors and assigns, as to the first priority lien or second priority lien, as applicable, of the Mortgage, as applicable
in the original principal amount of the Mortgage Loan (or to the extent a Mortgage Note provides for negative amortization, the maximum amount of negative amortization in accordance with the Mortgage), subject only to the exceptions contained in
clauses (a), (b) and (c), and in the case of adjustable rate Mortgage Loans, against any loss by reason of the invalidity or unenforceability of the lien resulting from the provisions of the Mortgage providing for adjustment to the Mortgage
Interest Rate and Monthly Payment. Where required by state law or regulation, the Mortgagor has been given the opportunity to choose the carrier of the required mortgage title insurance. Additionally, such lender’s title insurance policy
affirmatively insures ingress and egress and against encroachments by or upon the Mortgaged Property or any interest therein. The title policy does not contain any special exceptions (other than the standard exclusions) for zoning and uses and has
been marked to delete the standard survey exception or to replace the standard survey exception with a specific survey reading. Seller, its successors and assigns, are the sole insureds of such lender’s title insurance policy, and such
lender’s title insurance policy is valid and remains in full force and effect and will be in force and effect upon the consummation of the transactions contemplated by this Repurchase Agreement. No claims have been made under such lender’s
title insurance policy, and no prior holder or servicer of the related Mortgage, including Seller, has done, by act or omission, anything which would impair the coverage of such lender’s title insurance policy, including, without limitation, no
unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by
Seller;” 
  
 “(r) Origination. The Mortgage Loan
was originated by or in conjunction with a mortgagee approved by the Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or similar banking institution which is supervised and examined by a federal or state authority. Principal payments on the Mortgage Loan commenced no more than 60 days after funds were disbursed in connection with the
Mortgage Loan. The Mortgage Interest Rate is adjusted, with respect to adjustable rate Mortgage Loans, on each Interest Rate Adjustment Date to equal the Index plus the Gross Margin (rounded up or down to the nearest .125%), subject to the Mortgage
Interest Rate Cap. The Mortgage Note is payable on the first day of each month in equal monthly installments of principal and interest, which installments of interest, with respect to adjustable rate Mortgage Loans, are subject to change due to the
adjustments to the Mortgage Interest Rate on each Interest Rate Adjustment Date, with interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated maturity date, over an original term of not more than
(i) 30 years from commencement of amortization with respect to Mortgage Loans other than other than Second Lien Mortgage Loans and (ii) 20 years from commencement of amortization with respect to Second Lien Mortgage Loans. The Due Date of
the first payment under the Mortgage Note is no more than 60 days from the date of the Mortgage Note;” 
  
 “(kkk) Second Lien Balance. No Second Lien Mortgage Loan has an outstanding principal balance in excess of $350,000. 
  

 -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}]]