Document:

10.13 Form of Indemnification Agreement

EXHIBIT 10.13

FORM OF INDEMNIFICATION
AGREEMENT

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered into as of [•] between NMI Holdings, Inc., a Delaware corporation (the “Company”), and [director name] (“Indemnitee”).

W I T N E S S E T H:

WHEREAS, Indemnitee is a director and/or officer of the Company;

WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other claims being asserted against directors of companies in today's environment;

WHEREAS, the Company's Second Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and Amended and Restated Bylaws (the “Bylaws”) provide that the Company will indemnify its directors and officers and that the Company may advance expenses in connection therewith and Indemnitee may also be entitled to indemnification   pursuant   to   Delaware   General   Corporation   Law   (the   “DGCL”),   and Indemnitee's willingness to serve as a director and/or officer of the Company is based in part on Indemnitee's reliance on such provisions;

WHEREAS,  in  recognition  of  Indemnitee's  need  for  substantial    protection against personal liability in order to enhance  Indemnitee's  continued  service to the Company in an  effective  manner, and  Indemnitee's  reliance on the aforesaid provisions of the Certificate of Incorporation and Bylaws and the DGCL, and to provide Indemnitee with express contractual indemnification (regardless of, among other things, any amendment to or revocation of such provisions or any   change   in the   composition   of the Company's Board of   Directors   (the “Board”)  or any  acquisition  or business combination  transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification of and the advancement of expenses to Indemnitee as set forth in this Agreement and for the continued coverage of Indemnitee under the Company's directors' and officers' liability insurance policies; and

WHEREAS, this Agreement is a supplement to and furtherance of the Certificate of Incorporation, the Bylaws and any resolutions adopted pursuant thereto and any liability insurance, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

NOW, THEREFORE, the parties hereto agree as follows:

1.         Definitions.  As used in this Agreement

(a)       “Beneficially Ownership” shall have the meaning assigned to such term under Rule 13d-3 of the Exchange Act.   “Beneficially Own”, “Beneficial Owner” and other variants thereof shall have correlative meanings.

1

EXHIBIT 10.13

(b)       A “Change in Control” shall mean any of the following events:

(i)       an acquisition of any voting securities of the Company (the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act) immediately after which such Person has Beneficial Ownership of 50% or more of the combined voting power of the Company's then outstanding Voting Securities; provided, however, that in determining whether a Change in Control has occurred, Voting Securities  which  are  acquired  by  any  Person  in  a  Non-Control  Acquisition  (as  hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A “Non- Control Acquisition” shall mean an acquisition by (1) an employee benefit plan (or a trust forming a part thereof) maintained by (x) the Company or (y) any corporation or other Person of which a majority of its voting power or its equity securities or equity interest is owned directly or indirectly by the Company (a “Subsidiary”), (2) the Company or any Subsidiary, or (3) any Person in connection with a Non-Control Transaction (as hereinafter defined);

(ii)       the individuals who, as of the date hereof, are members of the Board (the “Incumbent Board”), cease for any reason to constitute at least two-thirds of the Board; provided, however, that, if the election, or nomination for election by the Company's stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Agreement, be considered a member of the Incumbent Board; provided, further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-12(c) promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or

(iii)      approval by stockholders of the Company of:

(A)           a merger, consolidation or reorganization involving the Company, unless (1) the stockholders of the Company, immediately before such merger, consolidation   or   reorganization,   own,   directly   or   indirectly,   immediately following such merger, consolidation or reorganization, at least 70% of the combined voting power of the outstanding voting securities of the corporation resulting from such merger or consolidation or reorganization (the “Surviving Corporation”)  in  substantially  the  same  proportion  as  their  ownership  of  the Voting  Securities  immediately  before  such  merger,  consolidation  or reorganization, (2) the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such merger, consolidation or reorganization constitute at least two-thirds of the members of the board of directors of the Surviving Corporation and (3) no Person (other than the Company, any Subsidiary, any employee benefit plan (or any trust forming a part thereof) maintained by the Company, the Surviving Corporation or any Subsidiary, or any Person who, immediately prior to such merger, consolidation or reorganization, had Beneficial Ownership of 15% or more of the then outstanding Voting Securities) has Beneficial Ownership of 15% or more of the combined voting power of the Surviving Corporation's then outstanding voting securities (a transaction described in clauses (1) through (3) above shall herein be referred to as a “Non-Control Transaction”);

2

EXHIBIT 10.13

(B)           a complete liquidation or dissolution of the Company; or

(C)           an agreement for the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Subsidiary).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of the outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person; provided that, if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company, and after such share acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional Voting Securities which increase the percentage of the then outstanding Voting Securities beneficially owned by the Subject Person, then a Change in Control shall occur.

(c)       “Company” shall mean NMI Holdings, Inc. and its successors, and shall include, in the case of any merger or consolidation, in addition to the resulting corporation and surviving corporation, any constituent corporation (including any constituent of a constituent) absorbed in such consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees, trustees, fiduciaries or agents, so that, if Indemnitee is or was a director, officer, employee, trustee, fiduciary or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employees, trustee, fiduciary or agent of another corporation, partnership, joint venture, trust employee benefit program or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

(d)       “Enterprise”   shall   mean   the   Company   and   any   other   corporation, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent, trustee or fiduciary.

(e)       “Exchange  Act”  shall  mean  the  Securities  Exchange  Act  of  1934,  as amended.

(f)        “Expenses” shall mean all retainers, court costs, transcript costs, fees of experts,  witness  fees,  private  investigators,  travel  expenses,  duplicating  costs,  printing  and binding costs, telephone charges, postage, fax transmission charges, secretarial services, delivery service fees, reasonable attorneys' fees, and all other disbursements or expenses of the types customarily  incurred  in  connection  with  prosecuting,  defending,  preparing  to  prosecute  or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a action suit  or  proceeding  or  in  connection  with  seeking  indemnification  under  this  Agreement. Expenses also shall include Expenses incurred in connection with any appeal resulting from any action, suit or proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent.

3

EXHIBIT 10.13

(g)       “Losses” shall mean all losses, liabilities, judgments, damages, amounts paid in settlement, fines, penalties, interest, assessments, other charges or, with respect to an employee benefit plan, excise taxes or penalties assessed with respect thereto.

(h)      References to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee, trustee, fiduciary or agent of the Company which imposes or causes duties or obligations to be imposed on, is deemed to impose duties or obligations on, or involves services by, such director, officer, employee, trustee, fiduciary or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to under applicable law.

(i)        “Person” shall mean an individual, entity, partnership, limited liability company, corporation, association, joint stock company, trust, joint venture, unincorporated organization,  and  a  governmental  entity  or  any  department  agency  or  political  subdivision thereof.

(j)        “Independent Counsel” shall mean a law firm, or a member of a law firm, that is experienced in matters of relevant corporation law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other party to the action, suit or proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

2.         Indemnity  of  Indemnitee.    The  Company  shall  indemnify  Indemnitee against all Expenses and Losses actually and reasonably incurred by him by reason of the fact that he is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, in each case to the fullest extent permitted under the DGCL, as the same exists or may hereafter be amended (subject to Section 6(c) hereof).   In furtherance of the foregoing indemnification, and without limiting the generality thereof:

(a)       General Indemnification.  The Company shall indemnify Indemnitee to the extent he is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, arbitration, alternate dispute resolution mechanism, whether civil, criminal, administrative or investigative and whether formal or informal (other than an action by or in the right of the Company) by reason of the fact that he is or was a director, officer, employee, agent trustee or fiduciary of the Company, or is or was serving at the request of the Company as a director, officer, employee, agent, trustee or fiduciary of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, against Expenses and Losses actually and reasonably incurred by him in connection with such action, suit, proceeding,

4

EXHIBIT 10.13

arbitration or alternate dispute resolution mechanism if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.

(b)       Derivative  Actions.   The  Company shall  indemnify  Indemnitee  to the extent he was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee, agent, trustee or fiduciary of the Company, or is or was serving at the request of the Company as a director, officer, employee, agent, trustee or fiduciary of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise against Expenses and Losses actually and reasonably incurred by him in connection with the defense or settlement of such action or suit, provided that no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged to be liable to the Company unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Expenses and Losses which the Court of Chancery or such other court shall deem proper.

(c)       Indemnification in Certain Cases.  To the extent that Indemnitee has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in paragraphs (a) and (b) of this Section 2, or in defense of any claim, issue or matter therein, he shall be indemnified against Expenses actually and reasonably incurred by him in connection therewith.   If Indemnitee is not wholly successful in such action, suit or proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such action, suit or proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter and any claim, issue or matter related to any claim, issue, or matter on which Indemnitee was successful.  For purposes of this Section 2 and without limitation, the termination of any claim, issue or matter in such a action, suit or proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

3.         Procedure.

(a)       Any indemnification under paragraphs (a) and (b) of Section 2 of this Agreement (unless ordered by a court) shall be made by the Company only as authorized in the specific case upon a determination that indemnification of Indemnitee is proper in the circumstances because he has met the applicable standard of conduct set forth in such sections. Such determination shall be made in the specific case:   (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Board as to whether and to what extent the Indemnitee would be permitted to be indemnified under applicable law, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred, (A) by the Board by a majority vote of a quorum consisting of directors who were not parties to such

5

EXHIBIT 10.13

action, suit or proceeding, (B) by a committee of disinterested directors designated by a majority vote of the disinterested directors, even though less than a quorum or (C) if such a quorum is not obtainable, or, even if obtainable a quorum of disinterested directors so directs, by Independent Counsel in a written opinion to the Board. A copy of which shall be delivered to Indemnitee; and if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within 10 days after such determination,.

(b)       If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 3(a) of this Agreement, the Independent Counsel shall be selected as provided in this Section 3(b).  If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected.  If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected.  In either event, Indemnitee or the Company, as the case may be, may, within 10 days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.   If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.  If, within 20 days after submission by Indemnitee of a request for indemnification pursuant to Section 11(a) of this Agreement, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Court or by such other person as the court shall designate, and the person with respect  to  whom  all  objections  are  so  resolved  or  the  person  so  appointed  shall  act  as Independent Counsel under Section 3(a) of this Agreement.   Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 11(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

(c)      The Company agrees to pay the reasonable fees and expenses of the Independent Counsel incurred in connection with the actions contemplated by Section 3(a) and Section 3(b) of this Agreement and to fully indemnify such counsel against any and all Expenses and Losses arising out of or relating to this Agreement or its engagement pursuant hereto.

4.         Indemnification for Expenses of a Witness.  To the extent that Indemnitee is, by reason of the fact that he is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee, trustee, fiduciary or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, a witness, or is made (or asked to) respond to discovery requests, in any proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

6

EXHIBIT 10.13

5.         Advancement of Expenses.   The Company shall advance all Expenses incurred in defending a civil or criminal action, suit or proceeding that may be subject to indemnification hereunder within 20 days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time along with documentation reasonably evidencing such Expenses, whether prior to or after final disposition of such proceeding.  The Company shall be required to advance all such Expenses, whether or not a determination shall have been made in accordance with Sections 3(a) of this Agreement, that indemnification of Indemnitee is proper in the circumstances, and the Company's obligation to advance such Expenses in accordance with this Section 5 shall terminate only upon the final determination  of  a  court  of  competent  jurisdiction  that  Indemnitee  is  not  entitled  to  be indemnified against such Expenses.   Any request for advancement of Expenses by Indemnitee shall include or be preceded or accompanied by a written undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately be determined by a court of competent jurisdiction that Indemnitee is not entitled to be indemnified against such Expenses. Any advances and undertakings to repay any amounts advanced pursuant to this Section 4 shall be unsecured and interest free.

6.         Non-Exclusivity; Survival of Rights; Insurance; Primacy of Indemnification; Subrogation.

(a)       The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders, a resolution of directors or otherwise, of the Company.

(b)       It is the intention of the parities that no existing or future contractual arrangement between the Company and any other director or officer thereof with respect to indemnification for such individual in his capacity as a director, officer, employee or agent of the Company or any other corporation, partnership, joint venture, trust or other enterprise to which he provided services at the request of the Company should be construed to give such person any rights to indemnification that are prior or superior to the rights granted to Indemnitee hereunder. To the extent that it is determined that any such agreement provides such prior or superior rights to  another  former  or  current  director  or  officer  with  respect  to  indemnification  for  such individual in his capacity as a director, officer, employee or agent of the Company or any other corporation, partnership, joint venture, trust or other enterprise to which he provided services at the request of the Company, Indemnitee shall enjoy by this Agreement such rights so afforded to such other officer or director.

(c)       No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his capacity as an officer, director, employee, trustee, fiduciary or other agent of the Company, or in his capacity as a director, officer, employee, trustee, fiduciary or agent of any other corporation, partnership, joint venture, trust, employee  benefit  plan  or  other  enterprise  which  Indemnitee  served  at  the  request  of  the Company prior to such amendment, alteration or repeal.   To the extent that a change in the DGCL, whether by statute or judicial decision, or any change to the Certificate of Incorporation or Bylaws permits greater indemnification than would be afforded under the DGCL, Certificate of Incorporation, Bylaws and this Agreement as of the Effective Date, it is the intent of the

7

EXHIBIT 10.13

parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. To the extent that a change in the DGCL, whether by statute or judicial decision, or any change to the Certificate of Incorporation or Bylaws restricts or diminishes the indemnification rights that would be afforded as of the Effective Date under the DGCL, the Certificate of Incorporation, Bylaws and this Agreement, it is the intent of the parties hereto that such change shall not adversely affect any right or protection hereunder in respect of any, events, circumstances,  acts  or  omissions  occurring  or  existing  prior  to  the  time  of  such  change, including, without limitation, any right to indemnification and/or advancement of Expenses for any threatened, pending or completed action, suit or proceeding, as applicable, commenced after such change with regard to events, circumstances, acts or omissions occurring or existing prior to such change.

(d)       No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

(e)       During the period that Indemnitee serves as an officer or a director of the Company or any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise to which he provides services at the request of the Company and for a period the longer of (i) six years and (i) the maximum period permitted by applicable law or regulation, following the termination of such services or following a Change in Control, the Company shall maintain for the benefit of Indemnitee a directors' and officers' liability insurance policy with a reputable and financially sound insurer that is at least as favorable to Indemnitee as the existing coverage provided by the Company; provided that the Company shall not be required to maintain such a policy to the extent it is prohibited by any changes in law or regulations applicable to the Company.  To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, trustees, fiduciaries and agents of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee, trustee, fiduciary or agent under such policy or policies.

(f)        In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute  all  papers  required  and  take  all  action  necessary  to  secure  such  rights,  including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

(g)       The  Company  shall  not  be  liable  under  this  Agreement  to  make  any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

7.         Duration of Agreement.  This Agreement shall be effective as of April 24, 2012 (the “Effective Date”) and will apply to acts or omission of Indemnitee which occurred prior to such date if Indemnitee was an officer, director, employee, trustee, fiduciary or other

8

EXHIBIT 10.13

agent of the Company, or was serving at the request of the Company as a director, officer, employee, trustee, fiduciary or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, at the time such act or omission occurred.   This Agreement shall continue from the Effective Date and terminate upon the later of (a) 10 years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or as a director, officer, employee, trustee, fiduciary or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which Indemnitee served at the request of the Company or (b) one year after the final termination of a proceeding, including any and all appeals, then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement.

8.         Defense of Claims.   The Company will be entitled to participate in the defense of any claim that may be subject to indemnification hereunder or to assume the defense thereof,  with counsel  reasonably satisfactory to Indemnitee; provided that in the event that (a) the use of counsel chosen by the Company to represent Indemnitee would present such counsel with an actual or potential   conflict,   (b) the named parties in any such claim (including   any impleaded parties) include both the Company and Indemnitee and Indemnitee shall reasonably conclude that there may be one or more legal defenses available to him that are different  from or in addition to those  available to the Company  or (c) any such  representation  by the Company would be precluded under the applicable standards of professional  conduct then prevailing,  then Indemnitee shall be entitled to retain  separate  counsel (but not more than one law firm plus, if applicable, local counsel in respect of any particular claim) at the   Company's expense.   The Company  will not,  without  the prior  written consent of the  Indemnitee,  effect any  settlement of any threatened or pending claim which Indemnitee is or could have been a party unless such settlement does not include an admission of fault of Indemnitee, any non-monetary remedy affecting or obligating Indemnitee or monetary loss for which Indemnitee is not indemnified hereunder but solely involves the payment of money and includes an unconditional release of the Indemnitee from all liability on any matters that are the subject matter of such claim.

9.         Presumptions and Effect of Certain Proceedings.

(a)       In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement and the Company shall have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.  Neither (i) the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor (ii) an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct shall be a defense to the  action  or  create  a  presumption  that  Indemnitee  has  not  met  the  applicable  standard  of conduct.

(b)       If the person, persons or entity empowered or selected under Section 3 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within 60 days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and

9

EXHIBIT 10.13

Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires  such  additional  time  for  the  obtaining  or  evaluating  of  documentation  and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 9(b) shall not apply if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 3(a) of this Agreement.

(c)       The termination of any action, suit or proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not meet any applicable standard of conduct under applicable law (or did or did not hold any particular state of knowledge referred to under applicable law).

(d)       Reliance as Safe Harbor.  For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by  the Enterprise.  The provisions of this Section 9(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

(e)       Actions of Others.  The knowledge and/or actions, or failure to act, of any director, officer, agent, trustee, fiduciary or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

10.       No Duplication of Payments.  The Company shall not be liable under this Agreement to make any payment in connection with any Losses or Expense to the extent the Indemnitee has otherwise actually received payment (under any insurance policy, any provision of the Certificate of Incorporation, Bylaws, or otherwise) of the amounts otherwise indemnifiable hereunder.

11.       Remedies of Indemnitee.

(a)       If (i) a determination is made pursuant to Section 3 of this Agreement that Indemnitee  is  not  entitled  to  indemnification  under  this  Agreement,  (ii)  advancement  of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 3(a) of this Agreement within 30 days after receipt by the Company of the request for indemnification or (iv) payment of indemnification is not made pursuant to Section 2 or Section 4 of this Agreement within 10 days after receipt by the Company of a written request therefor, or, if a determination is required by law, within 10 days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication (or, in the case of clause (i), to

10

EXHIBIT 10.13

seek an adjudication) by the Delaware Court (as hereinafter defined) of his entitlement to such indemnification or advancement of Expenses; provided that nothing contained in this Section 11 shall   be   deemed   to   limit   Indemnitee's   rights   under   Section 9(b)   of   this   Agreement. Alternatively,  Indemnitee,  at  his  option,  may  seek  an  award  in  binding  arbitration  to  be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.   The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration.

(b)       If a determination shall have been made pursuant to Section 3(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 11 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.   In any judicial proceeding or arbitration commenced pursuant to this Section 11, the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

(c)       If a determination shall have been made pursuant to Section 3(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 11, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

(d)       The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 11 that the procedures and presumptions of this Agreement are not valid, binding or enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within 10 days after receipt by the Company of a written request therefore) advance such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement, under the Certificate of Incorporation or Bylaws as in effect, or may be amended, from time to time or under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be.

12.       Binding Agreement; Successors and Assigns.   This Agreement shall be binding upon, inure to the benefit of and be enforceable by Indemnitee and its assigns, spouses, heirs,  executors  and  personal  and  legal  representatives.    The  Company  shall  require  any successor of the Company (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise to all or substantially all of the business or assets of the Company) to assume and agree to perform the Company's obligations under this Agreement in the same manner and to the same extent the Company would be required to perform such obligations if no such succession had taken place.

13.       Security.   To the extent requested by Indemnitee and approved by the Board, the Company may at any time and from time to time provide security to Indemnitee for the Company's obligations hereunder through an irrevocable bank line of credit, funded trust or

11

EXHIBIT 10.13

other collateral.  Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of Indemnitee.

14.       Severability.   The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.  Without limiting the generality   of   the   foregoing,   this   Agreement   is   intended   to   confer   upon   Indemnitee indemnification  rights  to  the  fullest  extent  permitted  by  applicable  laws.  In  the  event  any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict.

15.       Modification and Waiver.   No supplement, modification, termination or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

16.       Notice  By  Indemnitee.     Indemnitee  agrees  promptly  to  notify  the Company in writing upon being served with or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any action, suit, proceeding or matter which may be subject to indemnification covered hereunder.  The failure to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise.

17.       Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent:

(a)       to Indemnitee at the address set forth below Indemnitee signature hereto.

(b)       To the Company at:

NMI Holdings, Inc. c/o FBR & Co.
1001 19th Street North
Arlington, Virginia 22209

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

18.       Counterparts.     This  Agreement  may  be  executed  in  two  or  more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.  This Agreement may also be executed and delivered by facsimile or PDF signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

12

EXHIBIT 10.13

19.       Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

20.       Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for Losses and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such action, suit or proceeding in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such action, suit or proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees, trustees, fiduciaries and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

21.       Enforcement.

(a)       The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

(b)       This  Agreement  constitutes  the  entire  agreement  between  the  parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

(c)       The Company and Indemnitee agree that a monetary remedy for breach of this Agreement may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance Indemnitee shall not be precluded from seeking or obtaining any other relief to which he may be entitled.  The Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by the court, and the Company hereby waives any such requirement of such a bond or undertaking.

22.       Governing Law and Consent to Jurisdiction.   This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United  States  of  America  or  any  court  in  any  other country,  (b)  consent  to  submit  to  the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising 

13

EXHIBIT 10.13

out of or in connection with this Agreement, (c) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court and (d) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

SIGNATURE PAGES FOLLOW

14

EXHIBIT 10.13

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and year first above written.

NMI HOLDINGS, INC.

By:                                                                   
Name: Bradley M. Shuster
Title:

[Signature Page to Indemnification Agreement]

15

EXHIBIT 10.13

INDEMNITEE:

Name:                                                            
   Address:

[Signature Page to Indemnification Agreement]

16Exhibit 10.1

 

EXECUTION VERSION

 

MASTER PURCHASE
AND SALE AGREEMENT

 

 

THIS MASTER PURCHASE AND SALE AGREEMENT
(the “Agreement”) is executed by and between ACCORD FINANCIAL, INC., a Delaware corporation, having a mailing
address at P.O. Box 6704, Greenville, South Carolina, 29606, (hereinafter referred to as "Factor") and OP-TECH Environmental
Services, Inc., a Delaware corporation, located at 1 Adler Drive, East Syracuse, New York 13057,  (hereinafter referred
to as "Seller"). Seller and Factor agree to the following terms and conditions:

 

 

1.    
Purchase and Sale of Accounts Receivable. For the consideration
hereinafter set forth and subject to the terms and conditions contained herein, Seller hereby agrees to sell, transfer, convey,
assign and deliver to Factor as absolute owner thereof, and Factor hereby agrees to purchase and receive from Seller all of Seller's
right, title and interest in and to certain accounts receivable arising from the furnishing of materials or the rendering of labor
by Seller in Seller's ordinary course of business. For all purposes hereof, the term "Accounts Receivable" is intended
to mean and include each account created as a result of the sale of goods and/or services furnished pursuant to and in compliance
with a contract between Seller and its customers, and all accounts as defined under the Uniform Commercial Code of South Carolina
as in effect from time to time. In addition to the Accounts Receivable purchased, Seller shall be deemed to have sold and assigned
all incidental rights with respect thereto, including any guarantees.

 

 

2. Sale Procedure.
Upon Seller’s submission of any Account Receivable to Factor for purchase, Seller shall execute for each such Account Receivable
or group of Accounts Receivable, an Invoice Control Record in the form annexed hereto or as may be modified from time to time by
Factor, which identifies and describes the Accounts Receivable being offered for purchase and the total face amount of such Accounts
Receivable. Each Account Receivable offered for sale to Factor shall be evidenced by an identical duplicate written invoice or
other such equivalent document(s) as Factor may require from time to time, together with supporting documentation, including, but
not limited to, the contract referencing the sale of goods and/or services furnished and any modification(s) or amendment(s) thereto
and any such other documentation which may be requested by Factor. The decision to accept or reject any Account Receivable offered
for sale shall rest within the sole and exclusive discretion of Factor. Upon receiving notice that Factor accepts for purchase
any Account Receivable, Seller shall not vary or seek to modify the terms of the Account Receivable.

 

 

3. Purchase Price
and Payment. In Factor's sole discretion, it may advance the purchase price for Accounts Receivable purchased up to eighty
(80%) percent (hereinafter referred to as “Advance”) of the face amount of the Accounts Receivable, minus the
applicable discount fee and subject to any reserve that Factor, in its sole discretion, may elect to maintain (hereinafter referred
to as “Reserve”). As a general rule, Reserves are released upon the request of the Seller or when the Factor’s
next purchase of Accounts Receivable from Seller is funded, however Factor may increase or decrease the amount of such Reserve
at any time and from time to time if it deems it necessary in order to protect its interests: for example, from contingencies,
disputes, potential breach of warranties, or the like that may exist or which Factor may reasonably anticipate might arise in
the future. Payments received will be credited to specific invoices when credit is given by Factor’s
bank, not to exceed three banking days. The applicable discount fee is calculated based on the discount rate set forth in the
Discount Rate Schedule (attached as an addendum hereto and incorporated herein by reference). Nothing contained herein shall be
construed as to prohibit Factor from conditioning future purchases on Seller's agreeing to modification(s) of the Discount Rate
Schedule. It is the intention of the parties hereto that the transactions contemplated hereby shall constitute a purchase of accounts
under the Uniform Commercial Code of South Carolina.

 

 

4. Notice
of Assignment.  Upon Seller’s execution of this Agreement, Seller shall notify each customer (hereinafter
referred to as “Account Debtor”) of the contemplated sale by insuring that each invoice bears the following
language, conspicuously placed, which language may be modified or amended at Factor’s request from time to
time:

 

This invoice has been assigned, sold and is payable only
to Accord Financial, Inc. In the event of any dispute as to quantity, quality or otherwise, notification must be given to Accord
Financial, Inc., in writing, within five (5) days of receipt of goods or rendition of services.

 

Seller agrees to use its best efforts to assist Factor in
procuring the Account Debtor's acknowledgment and acceptance if so requested by Factor. Factor's inability, for whatever reason,
to receive Account Debtor's acknowledgment and acceptance may result in the rejection of the Accounts Receivable submitted for
purchase or revocation of a conditional approval to purchase Accounts Receivable without any obligation or liability on the part
of Factor.

 

5. Security. In order to secure the payment of all indebtedness and obligations of Seller to Factor, whether
presently existing or hereafter arising, Seller hereby grants to Factor a security interest in and lien upon all of Seller’s
right, title and interest in all assets including but not limited to the following: (a) any and all Reserves and all payments
(if any) due or to become due to Seller from the Reserves as well as all monies on deposit, holdbacks and credits, (b) all Accounts,
as defined hereinbelow, and general intangibles whether now existing or hereafter acquired or arising, all interest of Seller
arising in goods, the sale of which gave rise to any account, (c) all documents, chattel paper, instruments and general intangibles
relating to the foregoing, (d) all books and records pertaining to all of the foregoing, including but not limited to computer
programs, data and lists, (e) all inventory of Seller and (f) all proceeds of the foregoing (collectively the “Collateral”).
Seller agrees to comply with all appropriate laws in order to perfect Factor’s security interest in and to the Collateral,
to execute any financing statements, continuations thereof, amendments thereto or additional documents as Factor may require.
The occurrence of any Event of Default shall entitle Factor to all of the default rights and remedies (without limiting the other
rights and remedies exercisable by Factor either prior or subsequent to an Event of Default) as available to a secured party under
the Uniform Commercial Code in effect in any applicable jurisdiction. Account(s) is intended to include “accounts”
as defined in the Uniform Commercial Code of South Carolina, as in effect from time to time, and to mean a right to payment of
a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed,
assigned, or otherwise disposed of, (ii) for services rendered or to be rendered, The terms “general intangibles”,
“goods”, “equipment”, and “proceeds” shall have the meaning given thereto in the Uniform Commercial
Code of South Carolina. Factor shall have the rights and remedies provided in this Agreement and in accordance with applicable
law. The security interest and lien granted in this paragraph shall remain in full force and effect until all the Accounts Receivable
purchased hereunder are paid in full and all obligations owed Factor are satisfied. The rights assigned do not constitute any
obligation being assumed by Factor. Seller agrees to execute and deliver, without delay, any document or take any action requested
by Factor to protect Factor’s interest in the purchased Accounts Receivable or to perfect the assignment thereof. Seller
hereby agrees that until all Accounts Receivable have been paid in full to Factor, Seller shall not permit any liens on any of
the Collateral, except those in favor of Factor, nor will Seller sell or transfer any of the Collateral to any third party, except
that Seller may enter into Purchase Money Security Interest financing with prior written notice to Factor.

 

 

6. Seller's Representations. As
an inducement for Factor to purchase Accounts Receivable from Seller, Seller hereby represents, warrants and covenants to Factor
that, and furthermore, acknowledges that, each such representation, warranty and covenant shall be made at any and every time any
Account Receivable is offered to Factor for sale that:

 

 

(a)  
If Seller is a legal entity, it is duly organized and existing under
the laws of Delaware and is duly qualified, properly licensed, and in good standing in such state and every other state
in which it is doing business, and the execution, delivery and performance of this Agreement are within its corporate powers and
have been duly authorized as evidenced by the Corporate Resolution provided to Factor, and are not in contravention of any law
or the powers of its charter, bylaws, articles of acquisition, partnership agreement, or other incorporation papers, or of any
indenture, agreement or undertaking to which Seller is a party or by which it is bound.

 

(b)  
If Seller is operating under a trade or assumed name, said name has
been filed with the proper authorities and each name has been provided, in writing, to Factor.

 

(c)  
Seller has good, clear and undisputed exclusive title to the Accounts
Receivable offered for sale to Factor hereunder, and such sale will vest absolute ownership to such Accounts Receivable in Factor,
free and clear of any lien, encumbrances, claims or security interest of any kind or nature.

 

(d)  
Each Account Receivable sold and assigned to Factor shall be an Account
Receivable based upon a bona fide sale and the delivery and acceptance of merchandise or performance of services by Seller to an
Account Debtor and shall be an unconditional, valid and enforceable obligation of the Account Debtor, with to the knowledge of
Seller, no claim, offset, allowance, discount, deduction, dispute, contingency or counterclaim, which could reduce the amount of
such Account Receivable, affect the validity thereof, or hinder Factor's ability to collect or receive payment of the full face
amount of said Account Receivable.

 

(e)  
All information furnished by Seller to Factor, including, but not
limited to, past histories of the payment of Account Debtors, and any and all information given to Factor in connection with the
Accounts Receivable, is true, complete and accurate, and contains no material omissions, misstatements or misrepresentations.

 

(f)   
Seller is the sole and absolute owner of any other property in which
Factor is given a security interest and has good right and authority to grant a security interest to Factor in such Collateral
and there is no presently outstanding adverse lien, security interest or encumbrance in or on the Collateral or proceeds and there
is no financing statement covering the Collateral or proceeds on file in any public office except as shown on the exhibit attached
hereto.

 

 

(g)  
All financial records (including, but not limited to, balance sheets,
income statements, federal income tax returns, and Accounts Receivable agings, listing or reports) which may have been or may hereafter
be furnished to Factor by Seller to induce Factor to enter into this Agreement or to purchase Accounts Receivable, shall fairly
and accurately represent the financial conditions and operating results of Seller as of the dates or for the periods stated thereon
subject in the case of non-audited statements to customary year-end and audit adjustments. Such financial records shall be accurate
and correct in all material respects and complete insofar as necessary to give Factor a materially true and accurate knowledge
of the subject matter.

 

(h)  
All Accounts Receivable sold by Seller to Factor shall be properly
reflected on the books of Seller.

 

(i)    
If Seller should change the location of the principal office or the
offices wherein the books and records of Seller are kept, Seller shall notify Factor immediately in writing of such change.

 

 

7. Recourse To Seller.
Under the circumstances set forth herein, Factor may, in its sole discretion, require Seller to take any or all of the actions
provided for below. The provisions of this section are cumulative to and may be exercised concurrently with any other rights, powers
or remedies of Factor.

 

(a) In the event an Account
Debtor objects to the quality of property sold or services performed by Seller, or rejects or fails or refuses to accept or receive
any property or services represented by any Account Receivable purchased by Factor, or if any such property is rerouted or reconsigned,
Factor may require the Seller to promptly repurchase such Account Receivable from Factor (i) by payment to Factor of the amount
represented by Factor to be owing on such Account Receivable or (ii) by providing Factor with another Account Receivable acceptable
to Factor in its sole discretion with a face value equal to or exceeding the face value of the unpaid Account Receivable (the "Replacement
Account") in substitution therefor or (iii) by Factor charging Seller’s Reserve. The method of repayment or replacement
shall be determined by Factor in its sole discretion. If Seller provides Factor with an acceptable Replacement Account, Factor
shall transfer all of its right, title and interest in such unpaid Account Receivable to Seller.

 

(b) In the event an Account Debtor suspends
business, requests a general extension of time within which to pay debts or makes an assignment for the benefit of creditors’,
or if a petition in bankruptcy for liquidation or reorganization under the Bankruptcy Code, or a similar petition under state law,
is filed by or with respect to an Account Debtor, a creditor's committee is appointed with respect to an Account Debtor, or if
an event occurs amounting to a general business failure of an Account Debtor, Factor may require that Seller promptly repurchase
from Factor all Accounts Receivable on which such Account Debtor is obligated (i) by payment to Factor of the amount represented
by Factor to be owing on such Accounts Receivable or (ii) by providing Factor with Replacement Accounts in substitution therefor
or (iii) by Factor charging Seller’s Reserve, and transferring all of its right, title and interest in such unpaid Account
Receivable to Seller.

 

(c) Without limiting the generality of
subsection (a) above, in the event any Account Receivable purchased by Factor has not been paid in full to Factor for any reason
(or no reason) (the "Aged Account") within ninety (90) days, (or at Factor’s sole discretion one hundred
twenty (120) days on certain Accounts Receivable), from the date of the invoice representing the Account Receivable (the
"Maximum Discount Period"), Factor may require that Seller promptly repurchase such Aged Account from Factor (i) by payment
to Factor of the amount represented by Factor to be owing on such Aged Account, or (ii) by providing Factor with a Replacement
Account in substitution therefor or (iii) by Factor charging Seller’s Reserve, and transferring all of its right, title and
interest in such unpaid Account Receivable to Seller.

 

(d) Without limiting the generality
of any other provision of this Section, in the event that Factor in its sole and absolute discretion determines that any Account
Receivable is or has become uncollectable (a "Worthless Account"), Factor may require that Seller promptly repurchase
such Worthless Account from Factor (i) by payment to Factor of the amount represented by Factor to be owing on such Worthless Account,
or (ii) by providing Factor with a Replacement Account in substitution therefor or (iii) by Factor charging Seller’s Reserve,
and transferring all of its right, title and interest in such unpaid Account Receivable to Seller.

 

 

8. Power of Attorney.
In order to carry out the intention of the parties hereto, Seller hereby irrevocably appoints Factor, or any person designated
by Factor, as its attorney in fact, which agency is coupled with an interest and which appointment shall be irrevocable until all
obligations Seller owes Factor are satisfied, with the express authority to (i) sign and endorse on behalf of Seller all checks,
drafts and other forms of payment received by Factor, waiving any notice of presentment and dishonor, whether or not said checks
represent payment on purchased Accounts Receivable, (ii) receive, open and dispose of Seller's mail received at Factor's address,
(iii) strike out Seller's address on any billing or statement sent to an Account Debtor and substitute Factor's address, (iv) in
Seller's name demand, sue for, collect and give releases for any and all monies due on or to become due on purchased Accounts Receivable,
(v) compromise, prosecute, or defend any and all things necessary and proper to carry out this Agreement, specifically including,
but not limited to, executing any documents necessary to perfect or continue the perfection of the security interest granted herein.

 

 

9.    Payments Received by Seller. Should Seller receive
payment of all or any portion of an Account Receivable sold pursuant to this Agreement, Seller shall immediately notify Factor
of the receipt of the payment, hold said payment in trust for Factor separate and apart from Seller's own property and funds,
and shall deliver said payment to Factor without delay in the identical form in which received. Should Seller receive a check
or other instrument of payment representing payment of amounts due to both Factor and Seller, Seller shall surrender said check
or payment instrument to Factor. Should Seller receive a check or other instrument of payment representing payment of amounts
due Factor and fail to surrender to Factor said check or payment instrument within nine (9) business days, Seller shall be deemed
to have committed a material default in this Agreement. In addition to all other damages to which Factor shall be entitled, Factor
shall be entitled, in the event Seller violates its obligations under this paragraph, to charge Seller a misdirected payment fee
equal to ten (10%) percent of the amount of the payment instrument or One Thousand Dollars ($1,000.00) whichever is greater, to
compensate Factor for the additional administrative expenses that are likely to be incurred as a result of a breach. In the event
any merchandise, the sale of which gave rise to an Account Receivable purchased by Factor, is returned to or repossessed by Seller,
such merchandise shall be held by Seller in trust for Factor, separate and apart from Seller's own property and subject to Factor's
sole direction and control.

 

10.Default. The term
"Event of Default" as used in this Agreement shall mean the occurrence of any of the following events:

 

		(a)	The failure of Seller to punctually and properly
observe, keep or perform any covenant, agreement or condition herein required to be observed, kept or performed; or required under
any other agreement or contract that may be executed between Seller and Factor.

 

		(b)	A representation or warranty made by Seller
in this Agreement shall prove to be untrue or incorrect in any material respect as of the date made or any financial statement
or other statement purporting to represent the financial condition of Seller proves to be false or incorrect in any material respect
as of the date made.

 

		(c)	The failure of Seller to, within five (5)
business days, deliver to Factor a remittance received by Seller in payment of a purchased Account Receivable.

 

		(d)	The failure of Seller to pay any indebtedness
owed by Seller to Factor when due whether or not said indebtedness arises hereunder or under some other agreement or contract by
and between Seller and Factor.

 

		(e)	The appointment of a receiver or trustee
for Seller.

 

		(f)	Seller becomes insolvent, is unable to pay
its debts as they mature or makes an assignment for the benefit of creditors.

 

		(g)	Seller is adjudicated a debtor in bankruptcy
or requests, either by way of petition or answer, that Seller be adjudicated a bankrupt or that Seller be allowed or granted any
composition, reassignment, extension, reorganization or other relief under any bankruptcy law or any other law for the relief of
debtors now or hereafter existing.

 

		(h)	An involuntary petition in bankruptcy is
filed by or against Seller.

 

		(i)	A levy(s) or notice(s) of attachment, execution(s),
tax lien(s) or assessment(s) or similar process is issued against Seller or the Collateral.

 

		(j)	The dissolution of Seller.

 

 

		(k)	Until full payment and performance of all
obligations of Seller under the Agreement, Seller fails to notify in writing to Factor within 15 days of any changes of name, dba,
place of business, state of incorporation or corporate status.

 

 

11.Remedies Upon Default.
Upon the occurrence of an Event of Default, Factor may resort to any one or more of the following remedies. The employment of
any particular remedy shall not prevent the concurrent or subsequent employment of any other appropriate remedy or remedies:

 

		(a)	Declare any indebtedness secured hereby immediately
due and payable. 

 

		(b)	Exercise its rights as a secured party and
enforce the security interest granted hereunder pursuant to applicable law, including, but not limited to, the right of Factor
to establish contact with and instruct any and all of Seller's customers to remit payment(s) due or to become due arising from
the sale of merchandise or rendering of services directly to Factor at Factor's address, whether or not said payments relate to
Accounts Receivable purchased by Factor hereunder. Furthermore, Factor shall have the right to establish contact with and instruct
any other party from whom Seller may be entitled to receive monies now due or to become due in the future to remit said monies
to Factor at Factor's address. In the event Factor deems it necessary to seek equitable relief, including, but not limited to,
injunctive or receivership remedies, as a result of Seller's default, Seller waives any requirement that Factor post or otherwise
obtain or procure any bond. Seller also waives any right to attorney's fees or costs in the event any equitable relief awarded
is thereafter, for whatever reason(s), vacated, dissolved or reversed.

 

		(c)	Immediately terminate this Agreement as to
future transactions, without affecting the rights and obligations of the parties occurring with respect to prior transactions.

 

		(d)	Enter the premises of Seller and take possession
of the Collateral and of records pertaining to the Accounts Receivable and the Collateral.

 

		(e)	Grant extensions, compromise claims and settle
Accounts Receivable for less than face value, all without prior notice to or authority of Seller, except as granted herein.

 

		(f)	Exercise all other rights conferred by law
or equity or under this Agreement and resort to any remedy existing at law or in equity for the collection of any indebtedness
secured hereby and for the enforcement of the covenants and agreements contained herein. 

 

 

12.Financial
Statements. Seller agrees to keep proper books of record in accordance with generally accepted accounting principles and
practices, which books shall at all times be open to inspection by Factor upon reasonable prior notice, during normal business
hours. In addition, Seller shall furnish Factor upon request any prior or current income statement, balance sheet, tax return
and report, along with any other supplementary financial information requested. Factor shall have the right, at all times during
normal business hours, upon prior notice, to examine and make extracts from all books and records of Seller.

 

 

13.Reimbursable Expenses.
In the course of performing its functions with respect to the investigation, approval, purchase and collection of Accounts Receivable
purchased from or offered for sale by Seller, Factor may incur routine and/or extraordinary expenses, including, but not limited
to, one-time set up charges, long distance telephone, postage over and above first class mail postage, photocopies, credit research,
credit report preparation, trade credit report preparation, wire transfers, overnight mail delivery, courier delivery, check certification,
UCC search and filing fees, other lien search fees, facsimile transmissions, auditing and legal fees, all of which shall be reimbursed
to Factor by Seller upon demand or deducted from the proceeds payable on a purchased Account Receivable.

 

 

14.Account Debtor
Claims. Seller shall notify Factor of the assertion of any claim, including any defenses, dispute or offset by an Account
Debtor with respect to an Account Receivable purchased by and assigned to Factor or the merchandise or service relating thereto
within twenty-four (24) hours after receiving such information, and subject to Factor's approval Seller may at its own expense,
settle all such claims. Factor may, in its sole discretion, opt to settle any Account Debtor claim directly with the Account Debtor
involved, at the Seller's expense, upon such terms as Factor may deem advisable at which time Seller shall cease any communications
with the respective Account Debtor. In the event of any Account Debtor claim or breach by Seller of any representation hereunder
as to an Account Receivable purchased by and assigned to Factor, Seller shall pay the unpaid balance of said Account Receivable
in accordance with the provision of paragraph 7 above. In the event Factor exercises its right to settle and compromise Account
Debtor claims, Seller hereby specifically agrees to the terms, conditions and provisions of any and all settlements, compromises
and other agreements, oral or written, entered into by Factor and Factor shall be deemed authorized to execute all releases, settlements
or compromise agreements, and receive, for and in Seller's name, all money and property that Factor may receive in such settlement,
release or compromise of Account Debtor claims. The foregoing is discretionary upon the part of Factor and Seller shall have no
right to demand or require Factor's exercise of the aforesaid rights. Notwithstanding delivery of such notice, Factor’s
failure to agree shall not otherwise adversely affect any right(s) of Factor or Seller’s waiver(s) herein.

 

 

15.Attorney's
Fees. In the event that Factor retains counsel for the purpose of enforcing any rights inuring to Factor arising out of
the relationship between Seller and Factor and this Agreement, Seller agrees to pay all reasonable attorney’s fees, courts
costs and expenses incurred by Factor or its counsel at all trial and/or appellate levels. Seller also acknowledges that Factor
may charge and/or set off against Seller's Reserve all such fees and costs as they are incurred. Notwithstanding the existence
of any law, statute, rule, or procedure in any jurisdiction which may provide Seller with a right to attorney’s fees or
costs, Seller hereby waives any and all rights to hereafter seek attorney’s fees or costs thereunder and Seller agrees that
Factor exclusively shall be entitled to indemnification and recovery of any and all attorney’s fees or costs in respect
to any litigation based hereon, arising out of, or related hereto, whether under, or in connection with, this and/or any agreement
executed in conjunction herewith, or any course of conduct, course of dealing, statements (whether verbal or written) or actions
of either party except to the extent Factor is found to have acted with gross negligence or willful misconduct.

 

 

16.Notice.
Except for routine day to day business communications, any notice or communication required hereunder shall be in writing and
given by personal delivery or delivery service or sent by regular, registered, or certified mail, postage prepaid to the addressee
at the address shown below or at the most current address that the party has from time to time designated in writing.

 

 

17.Term.
This Agreement shall be effective from the date hereof and shall continue in full force and effect for a period of 1 year and
shall be deemed renewed from year to year thereafter unless terminated by Seller by delivery of written notice of termination
to Factor, by registered or certified mail, not less than thirty (30) days prior to the last date of the then current term or
as provided in the Addendum hereto. Factor shall be entitled to terminate this Agreement at any time by giving thirty (30) days
prior written notice. In addition, Factor shall have the right for any reason or no reason to terminate this Agreement at any
time without prior written or oral notice upon the occurrence of an Event of Default. Upon the effective date of termination,
all of Seller’s obligations, whether incurred under this Agreement or any amendment or supplement thereto or otherwise,
shall become immediately due and payable without notice or demand. Notwithstanding any termination, until all of Seller’s
obligations of every nature whatsoever shall have been fully paid and satisfied, Factor shall retain Factor's security interest
in and title to all existing and future Accounts Receivable and other Collateral held by Factor hereunder. Until final termination
following the notice thereof, Seller shall continue to offer all Accounts Receivable to Factor and Factor shall be under no obligation
to make any further Advances or purchase any Account Receivable with respect thereto. In addition, any termination of this Agreement
shall not serve to release any security interest granted herein until all Accounts Receivable purchased hereunder and all indebtedness
of Seller to Factor have been paid in full nor shall such termination affect any of the obligations incurred by the parties hereto.

 

 

18.Indemnification.
Seller agrees to promptly and immediately upon demand indemnify, defend and save Factor harmless from and against any and all
liability, claims, suits, demands, damages, judgments, costs, interest and expenses (including, but not limited to attorney’s
fees and costs) to which Factor may be subject or suffer by reason of any liability or claim arising or resulting from Seller’s
acts or omission to do any act except to the extent due to Factor’s gross negligence or willful misconduct. This paragraph
18 shall survive termination of this Agreement.

 

 

19.Binding on
Future Parties. The terms and provisions of this Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, executors, administrators, personal representatives, successors and assigns.

 

 

20.No Waiver.
Failure by Factor to exercise any of Factor's rights or remedies hereunder shall not be deemed to be a waiver by Factor of such
or any other rights or remedies, nor in any manner impair the subsequent exercise of the same or any other rights or remedies,
and any waiver by Factor of any default hereunder shall not constitute a waiver of any subsequent default.

 

 

21.Severability.
Each and every provision, condition, covenant and representation contained in this Agreement is and shall be construed to be a
separate and independent covenant and agreement. In the event any term or provision of this Agreement shall to any extent be declared
illegal, contrary to law, invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and this Agreement
shall continue in full force and effect as though such term or provision had not been incorporated herein.

 

 

22.Miscellaneous.

 

(a)This Agreement is deemed
made and shall be governed, interpreted and construed in accordance with the laws of the State of South Carolina.

 

(b)  
Factor’s books and records shall be admissible in evidence without
objection as conclusive evidence of the status of the Accounts Receivable between Factor and Seller. Each statement, report, or
accounting rendered or issued by Factor to Seller shall be deemed conclusively accurate and binding on Seller unless within fifteen
(15) days after the date of issuance Seller notifies Factor to the contrary by registered or certified mail, setting forth with
specificity each reason why Seller believes such statement, report, or accounting or any portion thereof is inaccurate, what Seller
believes to be correct amount(s) therefor, and supplies detailed, written support for its objection(s). 

 

(c)    
Seller may not assign this Agreement or any of Seller’s rights
hereunder to any person without Factor’s prior written consent and this Agreement shall be deemed to be one of financial
accommodation and not assumable by any debtor, trustee or debtor-in-possession in any bankruptcy proceeding without Factor’s
express written consent and may be suspended in the event a petition in bankruptcy is filed by or against Seller. 

 

(d) Each of the parties
to this Agreement expressly submits and consents to the exclusive jurisdiction of the state and federal courts of the State of
South Carolina or, at Factor's sole and exclusive discretion, the courts of the state in which Seller resides, and agrees that
if suit be filed in South Carolina, venue shall lie exclusively in the County of Greenville, South Carolina with respect to any
controversy arising under, out of, or relating to, this Agreement, any amendment or supplement thereto or to any transactions in
connection therewith whether asserted by way of claim, counterclaim, crossclaim or otherwise.

 

(e) Seller expressly authorizes
Factor to access the systems of and/or communicate with any shipping or trucking company in order to obtain or verify tracking,
shipment or delivery status of any merchandise regarding an Account Receivable.

 

(f) Seller acknowledges that
there is no, and it will not seek or attempt to establish any, fiduciary relationship between Factor and Seller, and Seller waives
any right to assert, now or in the future, the existence or creation of any fiduciary or joint venture relationship between Factor
and Seller in any action or proceeding (whether by way of claim, counterclaim, crossclaim or otherwise) for damages.

 

(g) No failure or delay
by Factor in exercising any of Factor’s powers or rights hereunder, or under any present or future supplement hereto or under
any other agreement between Factor and Seller shall operate as a waiver thereof; nor shall any single or partial exercise of any
such power or right preclude other or further exercise thereof or the exercise of any other right or power. Factor’s rights,
remedies and benefits hereunder are cumulative and not exclusive of any rights, remedies or benefits which Factor may have. No
waiver by Factor of any provision hereunder shall be deemed to extend to any other provision hereunder.

 

(h) This Agreement together
with any Addendum attached hereto, is a complete and final agreement, reflects Seller’s and Factor’s mutual understanding,
supersedes any prior agreement or understanding between the parties, and may not be modified or amended orally. The parties acknowledge
that, but for the promises and representations expressly contained in this Agreement, no other promise or representation of any
kind has been made to induce either to execute this Agreement. Furthermore, Seller and Factor acknowledge that if any such promise
or representation has been made, neither has relied, nor shall either be entitled to rely, upon any such promise or representation
in deciding to enter into this Agreement.

 

(i) In the event Seller’s
principals, officers or directors form a new entity, whether a corporation, partnership, limited liability company or otherwise,
similar to that of Seller during the term of this Agreement or merge into any other entity (regardless of whether Seller is the
surviving entity), such entity shall be deemed to have expressly assumed the obligations due Factor by Seller under this Agreement.
Upon the formation of any such entity, Factor shall be deemed to have been granted an irrevocable power of attorney with authority
to execute, on behalf of the newly formed successor business, a new UCC-1 or UCC-3 financing statement and have it filed with the
appropriate secretary of state or UCC filing office. Factor shall be held-harmless and be relieved of any liability by Seller and
such new entity as a result of Factor’s filing any UCC financing statement or the resulting perfection of a lien in any of
the successor entity’s assets. In addition, Factor shall have the right to notify the successor entity’s account debtors
of Factor’s lien rights, its right to collect all Accounts, and to notify any new lender who has perfected a lien in such
successor entity’s assets.

 

(j) Seller and Factor
hereby irrevocably waive any right either may have to a trial by jury in respect of any litigation directly or indirectly at any
time arising out of, under or in connection with this Agreement or any transaction contemplated hereby or associated herewith.
Each of Seller and Factor, irrevocably waives, to the maximum extent not prohibited by law, any right it may have to claim or recover
in any such litigation any special, exemplary, punitive or consequential damages, or damages other than, or in addition to, actual
damages. Seller certifies that no party hereto nor any representative or agent or counsel for any party hereto has represented,
expressly or otherwise, or implied that such party would not, in the event of litigation, seek to enforce the foregoing waivers.
Seller acknowledges that Factor has been induced to enter into this Agreement and the transactions contemplated hereby, in part,
as a result of the mutual waivers and certifications contained in this paragraph. 

 

    	 

    	 

    

23.Paragraph
Headings. The paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit
the scope of meaning of the paragraphs hereof.

 

 

 

 

__________________________________

OP-TECH Environmental Services, Inc.

 

 

By:  /s/ Michael McCall

(Signature)

 

Michael McCall

(Printed Name)

 

Title: Treasurer

 

 

Executed this 30th day of May, 2013.

 

This counterpart constitutes an original counterpart for purposes
of perfection of a security interest.

 

 

 

 

 

STATE OF New York, COUNTY OF Onondaga

 

The foregoing instrument
was acknowledged before me this 30th day of May, 2013, by Michael McCall, Treasurer of OP-TECH Environmental Services,
Inc., on behalf of the Corporation. He is personally known to me or who provided Driver’s License as identification.

 

/s/ Necole
Bower

Notary Public

 

Necole Bower

Notary Public, State of New York

Qual in Onon. Co. No. 01BO6207051

Commission Expires June 8, 2013

 

ACCORD FINANCIAL, INC.

 

By:
/s/ Matthew Panosian

 

Title: SVP

 

Executed this 30 day of May, 2013.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]