Document:

Exhibit 10.37

 

FIRST AMENDMENT TO THIRD AMENDED
AND RESTATED

WAREHOUSING CREDIT AND SECURITY AGREEMENT

 

This First Amendment to Third Amended and
Restated Warehousing Credit and Security Agreement (this “Amendment”), is
entered into effective as of the 28th day of April, 2003, by and among SIRVA
MORTGAGE, INC., an Ohio corporation f/k/a Cooperative Mortgage Services, Inc.
(“Company”), WASHINGTON MUTUAL BANK, FA, a federal association, successor by
merger to BANK UNITED, in its capacity as one of the Lenders and Agent for the
Lenders (“Agent”) and the lenders (“Lenders”) party to the Warehouse Agreement,
as defined below.

 

Section 1.                                            Recitals. Company, Agent, and Lenders have entered into that certain Third
Amended and Restated Warehousing Credit and Security Agreement dated September
30, 2002, (the “Warehouse Agreement”) for the purposes and consideration
therein expressed, pursuant to which Lenders have agreed to make loans to
Company as therein provided. Company, Agent, and Lenders desire to amend the
Warehouse Agreement to make certain modifications as more particularly set
forth herein. Therefore, Company, Agent, and Lenders hereby agree as follows,
intending to be legally bound:

 

Section
2.                                             Definitions and References. Unless the context otherwise requires or
unless otherwise expressly defined herein, the terms in the Warehouse Agreement
shall have the same meanings whenever used in this Amendment.

 

Section 3.                                            Amendments. The Warehouse Agreement is hereby amended, as follows:

 

(a)                                  The following definition in Section 1.1 of
the Warehouse Agreement is hereby amended as follows:

 

“Commitment” means the commitment of the Lenders to make
Advances hereunder in an aggregate principal amount at any time outstanding
that shall not exceed FIFTY-SIX MILLION AND NO/100 DOLLARS ($56,000,000.00)
(“Aggregate Commitment Amount”), provided, however, that (a) on July 30, 2003,
the Aggregate Commitment Amount shall be reduced to TWENTY-EIGHT MILLION AND
NO/100 DOLLARS ($28,000,000.00) and (b) no Lender’s portion of such Advances
may ever exceed its Commitment Amount. 
The Commitment shall be composed of two tranches with the first tranche
(“Tranche A Commitment”) being in the amount of $28,000,000.00 and having a
Termination Date occurring on July 30, 2003 and the second tranche (“Tranche B
Commitment”) being in the amount of $28,000,000.00 and having a Termination
Date occurring on July 31, 2004. In addition to the foregoing, (x) the
Aggregate Commiment Amount shall increase from its original amount of
$56,000,000.00 to $71,000,000.00 for the period commencing on April 28, 2003
through and including June 28, 2003 and then decrease to $56,000,000.00 from
June 29, 2003 until the Termination Date and (b) the Tranche A Commitment of
Washington Mutual Bank, FA shall increase from its original amount of
$17,500,000.00 to $32,500,000.00 for the period commencing on April 28, 2003
through and including June 28, 2003 and then decrease to $17,500,000.00 from
June 29, 2003 until the Termination Date.

 

 

(b)                                 Exhibit “O”  to the Warehouse Agreement is deleted in its
entirety and Exhibit
“O” to this
Amendment is given in substitution and replacement thereof.

 

Section 4.                                            Representations and Release of Claims.   
Except as otherwise specified herein, the terms and provisions hereof
shall in no manner impair, limit, restrict or otherwise affect the Obligations
of Company as evidenced by the Loan Documents. 
Company hereby acknowledges, agrees, and represents that (i) Company is
indebted to Lenders pursuant to the terms of the Notes; (ii) the liens,
security interests and assignments created and evidenced by the Loan Documents
are, respectively, first, prior, valid and subsisting liens, security interests
and assignments against the Collateral and secure all indebtedness and
obligations of Company to Lenders under the Notes, the Warehouse Agreement, all
other Loan Documents, as modified herein;
(iii) all of the representations and warranties contained in the Warehouse
Agreement and all instruments
and documents executed pursuant thereto or contemplated thereby are true and
correct in all material respects on and as of this date; (iv) there are no
claims or offsets against, or defenses
or counterclaims to, the terms or provisions of the Loan Documents, and the
other obligations created or
evidenced by the Loan Documents; (v) Company has no claims, offsets, defenses or counterclaims arising from any of
the Agent’s or Lenders’ acts or omissions with respect to the Loan Documents, or the Agent’s or Lenders’ performance
under the Loan Documents; (vi)
the representations and warranties contained in the Loan Documents are trueand correct representations and
warranties of Company, as of the date hereof; and (vii) Company is not in default and no event has occurred
which, with the passage of time, giving of notice, or both, would constitute a default by Company
of Company’s obligations under the terms and provisions of the Loan Documents. 
In consideration of the
modification of Loan Documents,  all
as herein provided, and the other benefits received by Company hereunder,
Company  hereby
RELEASES, RELINQUISHES and forever DISCHARGES Agent, each Lender,  their respective predecessors,
successors, assigns, shareholders, principals, parents,  subsidiaries, agents, officers,
directors, employees, attorneys and representatives  (collectively, the “Lender
Released Parties”), of and from any and all claims, demands,  actions and causes of action of
any and every kind or character, whether known or  unknown, present or future, which
Company has, or may have against Lender Released  Parties, arising out of or with
respect to any and all transactions relating to the Warehouse  Agreement, the Notes, and the
other Loan Documents occurring prior to the date hereof,  including any other loss, expense
and/or detriment, of any kind or character, growing out  of or in any way connected with
or in any way resulting from the acts, actions or omissions  of the Lender Released Parties,
and including any loss, cost or damage in connection with  any breach of fiduciary duty,
breach of any duty of fair dealing, breach of competence,  breach of funding commitment,
undue influence, duress, economic coercion, conflict of  interest, negligence, bad faith,
malpractice, violations of the Racketeer Influence and  Corrupt Organizations Act,
intentional or negligent infliction of emotional or mental  distress, tortious interference
with corporate governance or prospective business  advantage, tortious interference
with contractual relations, breach of contract, deceptive  trade practices, libel, slander,
conspiracy, the charging, contracting for, taking, reserving,  collecting or receiving of
interest in excess of the highest lawful rate applicable to the Loan  Documents (i.e., usury), any
violations of federal or state law, any violations of federal or  state banking rules, laws or
regulations, including, but not limited to, any violations of  Regulation B, Equal Credit
Opportunity, bank tying act claims, any violation of the Texas  Free Enterprise Antitrust Act or
any violation of federal antitrust acts.

 

2

 

Section 5.                                            Severability. In the event any one or more provisions
contained in the Warehouse Agreement or this Amendment should be held to be
invalid, illegal or unenforceable in any respect, the validity, enforceability and
legality of the remaining provisions contained herein and therein shall not be
affected in any way or impaired thereby and shall be enforceable in accordance
with their respective terms.

 

Section 6.                                            Fees and Expenses. In consideration of Lenders’ agreement to
enter into this Amendment, Company shall pay to the Agent on behalf of the
Lenders (to be shared in their respective Commitment Percentages) an amendment
fee in the amount of $3,000.00, which fee shall be due and payable upon the
execution and delivery of this Amendment. Company agrees to pay all
out-of-pocket costs and expenses (including reasonable attorney’s fees and
expenses) of the Agent and the Lenders in connection with the preparation,
operation, administration and enforcement of this Amendment.

 

Section 7.                                            Ratification of Agreements. (a) Except as amended hereby, Company
ratifies and confirms that the Warehouse Agreement and all other Loan Documents
are and remain in full force and effect in accordance with their respective
terms and that all Collateral is unimpaired by this Amendment and secures the
payment and performance of all indebtedness and obligations of Company under
the Notes, the Warehouse Agreement, and all other Loan Documents, as modified
hereby. Company shall execute and deliver a new Note to each Lender in the
amount of its new Commitment Amount.

 

(b)                               The undersigned officer of the Company
executing this Amendment represents and warrants that he has full power and
authority to execute and deliver this Amendment on behalf of the Company this
Amendment, that such execution and delivery has been duly authorized by all
necessary corporate action of Company, and represents and warrants that the
resolutions and affidavits previously delivered to Agent, in connection with
the execution and delivery of the Warehouse Agreement, are and remain in full
force and effect and have not been altered, amended or repealed in anywise.

 

(c)                                Any reference to the Warehouse Agreement in
any Loan Document shall be deemed to be references to the Warehouse Agreement
as amended hereby.  Any reference in
this Amendment and the other Loan Documents to the Notes shall be deemed to be
references to the new Notes executed and delivered by the Company in connection
herewith.

 

Section 8.                                            Authority. The undersigned officer of the Company executing this Amendment
represents and warrants that he has full power and authority to execute and
deliver this Amendment on behalf of the Company this Amendment, that such
execution and delivery has been duly authorized by all necessary corporate
action of Company, and represents and warrants that the resolutions and
affidavits previously delivered to Agent, in connection with the execution and
delivery of the Warehouse Agreement, are and remain in full force and effect
and have not been altered, amended or repealed in anywise.

 

Section 9.                                            No Waiver. Company agrees that no Event of Default and no Default has been
waived or remedied by the execution of this Amendment by Agent and Lenders, and
any such Default or Event of Default heretofore arising and currently
continuing shall continue after the execution and delivery hereof.

 

3

 

Section 10.                                      Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of Texas and, to the extent
applicable, by federal law.

 

Section 11.                                      Counterparts and Gender. This Amendment may be executed in any
number of counterparts and all of such counterparts taken together shall be
deemed to constitute one and the same instrument. Each gender used herein shall
include and apply to all genders, including the neuter.

 

Section 12.                                      NO ORAL AGREEMENTS. THIS AMENDMENT, THE WAREHOUSE
AGREEMENT, THE NOTES, AND THE OTHER LOAN DOCUMENTS, AS MODIFIED AND AMENDED
HEREBY, REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES.

 

THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

 

[Signature Pages Follow]

 

4

 

EXECUTED
this 16th day of June, 2003.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SIRVA MORTGAGE, INC.,

  
	
   

  	
  an Ohio corporation f/k/a

  
	
   

  	
  COOPERATIVE MORTGAGE SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul
  Klemme

  	
   

  
	
   

  	
  PAUL KLEMME,
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  SIRVA MORTGAGE, INC

  
	
   

  	
  Attn: Attn: Paul Klemme, President

  
	
   

  	
  6070 Parkland Boulevard

  
	
   

  	
  Mayfield Heights, Ohio 44124

  
	
   

  	
  Fax No.: (440) 646-1835

  

 

5

 

	
   

  	
  WASHINGTON MUTUAL BANK,
  F.A., successor

  
	
   

  	
  by merger to BANK UNITED,
  as Agent and a

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Ben
  Culver

  	
   

  
	
   

  	
  Name:

  	
  BEN CULVER

  	
   

  
	
   

  	
  Title:

  	
  VP

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  Attn: Michael D. McAuley,
  Managing Director

  
	
   

  	
  Mortgage Banker Finance

  
	
   

  	
  3200 Southwest Freeway,
  Suite 1922

  
	
   

  	
  Houston, Texas 77027

  
	
   

  	
  Facsimile: (713) 543-4292

  
						

 

6

 

	
   

  	
  NATIONAL CITY BANK OF KENTUCKY, as

  
	
   

  	
  Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Jo
  Reiss

  	
   

  
	
   

  	
  Name:

  	
  Mary Jo Reiss

  	
   

  
	
   

  	
  Title:

  	
    Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK OF
  KENTUCKY

  
	
   

  	
  Attn: Mary Jo Reiss, Vice
  President,

  
	
   

  	
  Mortgage Banking

  
	
   

  	
  421 West Market Street

  
	
   

  	
  Louisville, Kentucky 40202

  
	
   

  	
  Fax: (502) 581.4154

  
						

 

7

 

EXHIBIT “O”

 

LENDERS, AGGREGATE COMMITMENT
AMOUNT,

AND COMMITMENT AMOUNT

 

	
   

  	
   

  	
  COMMITMENT AMOUNT

  	
   

  
	
  NAME OF LENDER

  	
   

  	
  Prior to

  July 30, 2003

  	
   

  	
  On and After

  July 31, 2003

  	
   

  
	
  Washington Mutual Bank,
  FA

  3200 Southwest Freeway, Suite 1922

  Houston, Texas 77027

  	
   

  	
  Tranche A Commitment:

  	
   

  	
  $17,500,000.00; provided,
  however, for the period commencing on April 28, 2003 through and
  including June 28, 2003, the Commitment Amount shall not exceed
  $32,500,000.00

  	
   

  	
  -0-

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tranche
  B Commitment:

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National City Bank of
  Kentucky

  101 South Fifth Street, T06K

  Louisville, Kentucky 40202

  	
   

  	
  Tranche A Commitment:

  

  Tranche B Commitment:

  	
   

  	
  $

  

  $

  	
  10,500,000.00

  

  10,500,000.00

  	
   

  	
  

  

  $

  	
  -0-

  

  10,500,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aggregate
  Commitment Amount

  	
   

  	
  $56,000,000.00;
  provided, however, for the period commencing on April 28, 2003 through and
  including June 28, 2003, the total Commitment Amount shall not exceed
  $71,000,000.00

  	
   

  	
  $

  	
  28,000,000.00

  	
   

  

 

1Exhibit 10.38

 

SECOND AMENDMENT TO THIRD AMENDED
AND RESTATED

WAREHOUSING CREDIT AND SECURITY AGREEMENT

 

This
Second Amendment to Third Amended and Restated Warehousing Credit and Security
Agreement (this “Amendment”), is entered into effective as of the 29th day of
June, 2003, by and among SIRVA MORTGAGE, INC., an Ohio corporation f/k/a
Cooperative Mortgage Services, Inc. (“Company”), WASHINGTON MUTUAL BANK, FA, a
federal association, successor by merger to BANK UNITED, in its capacity as one
of the Lenders and Agent for the Lenders (“Agent”) and the lenders (“Lenders”)
party to the Warehouse Agreement, as defined below.

 

Section
1.                                            Recitals.  Company, Agent, and Lenders
have entered into that certain Third Amended and Restated Warehousing Credit
and Security Agreement dated September 30, 2002, (the “Warehouse Agreement”)
for the purposes and consideration therein expressed, pursuant to which Lenders
have agreed to make loans to Company as therein provided. Company, Agent, and
Lenders desire to amend the Warehouse Agreement to make certain modifications
as more particularly set forth herein. Therefore, Company, Agent, and Lenders
hereby agree as follows, intending to be legally bound:

 

Section
2.                                             Definitions and References. 
Unless the context otherwise requires or unless otherwise expressly
defined herein, the terms in the Warehouse Agreement shall have the same
meanings whenever used in this Amendment.

 

Section
3.                                            Amendments.  The Warehouse Agreement is
hereby amended, as follows:

 

(a)                                  The following definition in Section 1.1 of
the Warehouse Agreement is hereby amended as follows:

 

“Commitment” means the commitment of the Lenders to make
Advances hereunder in an aggregate principal amount at any time outstanding
that shall not exceed SEVENTY-FIVE MILLION AND NO/100 DOLLARS ($75,000,000.00)
(“Aggregate Commitment Amount”), provided, however, that (a) on July 31, 2003,
the Aggregate Commitment Amount shall be reduced to TWENTY-EIGHT MILLION AND
NO/100 DOLLARS ($28,000,000.00) and (b) no Lender’s portion of such Advances
may ever exceed its Commitment Amount. 
The Commitment shall be composed of two tranches with the first tranche
(“Tranche A Commitment”) being in the amount of $47,000,000.00 and having a
Termination Date occurring on the close of business on July 30, 2003 and the
second tranche (“Tranche B Commitment”) being in the amount of $28,000,000.00
and having a Termination Date occurring on July 31, 2004.

 

“Loan Documents” means this Agreement, the Notes, the Swing Line
Note, and each other document, instrument or agreement executed by the Company
or any other Person in connection herewith or therewith, as any of the same may
be amended, restated, renewed or replaced from time to time.

 

“Obligations” means any and all indebtedness, obligations, and
liabilities of the Company to each Lender, the Agent, and the Swing Line Lender
(whether now

 

 

existing
or hereafter arising, voluntary or involuntary, whether or not jointly owed
with others, direct or indirect, absolute or contingent, liquidated or
unliquidated, and whether or not from time to time decreased or extinguished
and later increased, created or incurred), arising out of or related to the
Loan Documents, or any of them, and any renewals, extensions, modifications,
enlargements, reinstatements or rearrangements thereof.

 

“Swing Line” means the short term revolving credit facility
provided for in Section 2.10 under which the Company may borrow from Washington
Mutual to bridge the Company’s daily borrowing requirements under the
Commitment.

 

“Swing Line Advances” means a disbursement by the Swing Line
Lender under the Swing Line.

 

“Swing Line Advance Due Date” means, with respect to each Swing
Line Advance, the second (2nd) Business Day following the Business Day when
Washington Mutual funds such Swing Line Advance.

 

“Swing Line Limit” means, for any day, the least of (x) Ten
Million Dollars ($10,000,000.00) or (y) the amount of the Commitment for that
day minus the sum of all Advances outstanding on that day.

 

“Swing Line Lender” means Washington Mutual.

 

“Swing Line Note” means the promissory note delivered by Company
to Swing Line Lender pursuant to Section 2.13 of this Agreement in the form of
Exhibit “R” attached hereto and all renewals, extensions, and modifications
thereof and all substitutions therefor.

 

(b)           Exhibit “O” to the Warehouse Agreement is deleted in its
entirety and Exhibit
“O” to this Amendment is
given in substitution and replacement thereof.

 

(c)           Section 2.2 (d) of the Warehouse Agreement is
deleted in its entirety, and the following is substituted in lieu thereof:

 

“(d)                           Each Advance Request shall constitute a
request for both (l) a Swing Line Advance to be funded by Swing Line Lender and
an Advance to be made by Lenders to refinance that Swing Line Advance on its
Swing Line Due Date and (2) the Advance requested by the text of the Advance
Request to be funded by the Lenders. The Swing Line Lender may elect, in its
sole discretion, to fund such Advance Request as a Swing Line Advance. If the
Swing Line Lender elects not to fund such Advance Request as a Swing Line
Advance, the Agent shall promptly, and in any case not later than 1:00 p.m. on
the date an Advance is to be made, notify each Lender of its receipt of an
Advance Request, the matters specified therein, and of such Lender’s Commitment
Percentage of the requested Advance. If all conditions precedent to such
Advance have been met, each Lender shall remit its Commitment Percentage of any
Advance requested in an Advance Request to Agent’s principal office in Houston,
Texas, by wire

 

2

 

transfer according to
Agent’s wire instructions, in funds that are available for immediate use by
Agent by 4:00 p.m. on the date such Advance is to be made.”

 

(d)                                 Section 2.7 (a) and (b) of the Warehouse
Agreement is deleted in its entirety, and the following is substituted in lieu
thereof:

 

“(a)                            Payments.  Except as otherwise
specifically provided herein, all payments hereunder shall be made to the Agent
on behalf of the Lenders and the Swing Line Lender, as applicable, not later
than the close of business (Houston, Texas time) on the date when due unless
such date is a non-Business Day, in which case, such payment shall be due not
later than 2:00 p.m. (Houston, Texas time) on the first Business Day thereafter,
and shall be made in lawful money of the United States of America in
immediately available funds.  Any such
payment made after 2:00 p.m. (Houston, Texas time) shall be deemed to be
received on the next Business Day and, if applicable, interest thereon shall
continue to accrue until such next Business Day. No Lender directly invoices
Company for - and only Agent invoices Company for – interest under the Loan
Documents.

 

(b)                                 Distributions. 
When received under Section 2.7(a) above, Agent shall distribute each
payment to each Lender ratably in accordance with its Commitment Percentage or
Swing Line Lender, as applicable, reasonably promptly after receipt but by no
later than 4:00 p.m. on the Business Day the payment is deemed to be received
by Agent under Section 2.7(a) above. If Agent fails to distribute any payment
to any Lender or the Swing Line Lender as required by this Section 2.7(b), then
Agent shall pay to that Lender or the Swing Line Lender, as applicable, on
demand interest on that payment, from the date due under this clause until
paid, at any annual interest rate equal from day to day to the Federal Funds
Rate.”

 

(e)                                  The following Section 2.13  Swing Line.  is hereby added to the end of Article 2 of the Warehouse
Agreement for all purposes:

 

“2.13                     Swing Line.  On the terms and subject to
the conditions set forth herein, the Swing Line Lender agrees, from time to
time during the period from the date hereof to but not including the
Termination Date, to fund revolving credit Swing Line Advances to the Company
in principal amounts which do not on any day exceed in the aggregate when
combined with all other Swing Line Advances outstanding on that day the Swing
Line Limit for the purpose of initially funding requested Advances under the
Commitment. A Swing Line Advance shall bear interest, from the date of such
Swing Line Advance until paid in full, at the interest rates applicable to an
Advance if such Swing Line Advance had been initially funded by the Lenders as
an Advance under the Commitment.  Interest
on such Swing Line Advances shall be due and payable to the Swing Line Lender
on the same dates and in the same manner as interest on Advances is due and
payable under Section 2.4 of this Agreement. Swing Line Advances shall be
evidenced by the Swing Line Note. Each Lender absolutely and unconditionally
agrees to fund such Lender’s Commitment Percentage of each Swing Line Advance,
regardless of any Default or Event of Default or other condition which would
otherwise excuse such Lender from funding its Commitment Percentage of such
Swing Line

 

3

 

Advance,
provided that (A) no Lender shall be required to make Advances to repay Swing
Line Advances which would cause such Lender’s portion of all Advances then
outstanding to exceed such Lender’s Commitment Amount, in each case at the time
the Lender funds its Commitment Percentage of such Swing Line Advances; and (B)
a Lender shall not be obligated to make Advances to repay Swing Line Advances
unless the Swing Line Lender believed in good faith that all conditions to
making the subject Swing Line Advance were satisfied at the time such Swing
Line Advance was made. Upon an Event of Default and the acceleration of the
Obligations, each Lender (including Wamu) shall fund such Lender’s Commitment
Percentage of all outstanding Swing Line Advances.  Agent shall notify each Lender no later than 11:00 a.m. of the
Swing Line Advance Due Date of an Advance Request funded by a Swing Line
Advance and of such Lender’s Commitment Percentage in the Advance to refinance
such Swing Line Advance.  Each Lender’s
Commitment Percentage of Swing Line Advance shall be remitted to the Agent on
behalf of Swing Line Lender in immediately available funds by wire transfer
according to Agent’s wire instructions by 4:00 p.m. on (i) the date of Agent’s
notice to refinance such Swing Line Advance, if such notice is made prior to
11:00 a.m. on such date or (ii) otherwise, the first Business Day following
such notice.  Agent shall promptly apply
such Lender’s Advances to the Swing Line Advances outstanding and remit the
same promptly to the Swing Line Lender. Upon any such delivery and application,
the amount so refunded shall cease to be a Swing Line Advance, and shall become
an Advance made by the applicable Lender to the Company. If a Lender fails to
make its Commitment Percentage of that Swing Line Advance available to Agent on
its due date (whether because of that Lender’s default, because that Lender is
not open for business on that Business Day, or otherwise) then Agent may
recover that amount on demand (i) from that Lender, together with interest at
the Federal Funds Rate, during the period from the due date to the date Agent
recovers that amount from that Lender - which payment is deemed to be that
Lender’s Commitment Percentage of that Advance or (ii) if that Lender fails to
pay that amount upon demand, then from Company together with interest at an
annual interest rate equal to the rate applicable to the requested Advance
during the period from the due date to the date Agent recovers that amount from
Company.

 

(f)                                    Section 7.6 
Adjusted Tangible Net Worth of the Warehouse Agreement is deleted
in its entirety, and the following is substituted in lieu thereof:

 

“7.6                           Adjusted Tangible Net Worth Permit the sum of the Adjusted Tangible Net
Worth of Company (and its Subsidiaries, on a consolidated basis) to be less
than an amount equal to the sum of THREE MILLION SIX HUNDRED THOUSAND AND
NO/100 DOLLARS ($3,600,000.00) plus fifty percent of the Company’s net income
for each calendar month on a cumulative basis (in no event shall the foregoing
amount be reduced by any net loss of the Company realized at any time),
computed as of the end of each calendar month.

 

(g)                                 Section 8.3     Application
of Proceeds.  of the Warehouse
Agreement is deleted in its entirety, and the following is substituted in lieu
thereof:

 

4

 

“8.3                           Application of Proceeds.  The
proceeds of any sale, disposition or other enforcement of the security interest
in all or any part of the Collateral shall be applied by the Agent as follows:

 

First, to the payment of the costs and expenses of such sale or
enforcement, including reasonable compensation to the Agent’s agents and
counsel, and all expenses, liabilities and advances made or incurred by or on
behalf of the Agent in connection therewith;

 

Second, to the payment of all amounts due and payable on the Swing Line
Note;

 

Third, to the payment of all amounts due (other than principal and interest)
under the Notes or this Agreement - payable ratably to Lenders in the
proportion that each Lender’s share of those amounts bears to the total of
those amounts for all Lenders;

 

Fourth, to the payment of interest accrued and unpaid on the Notes -
payable ratably to each Lender in accordance with its Commitment Percentage;

 

Fifth, to the payment of the outstanding principal balance of the Notes
- payable ratably to each Lender in accordance with its Commitment Percentage;

 

Sixth, to the payment of all other Obligations - payable ratably to
Lenders in the proportion that each Lender’s share of those amounts bears to
the total of those amounts for all Lenders; and

 

Finally, to the payment to the Company, or to its successors or
assigns, or as a court of competent jurisdiction may direct, of any surplus
then remaining from such proceeds.

 

If the proceeds of any such sale, disposition or other enforcement are
insufficient to cover the costs and expenses of such sale, as aforesaid, and
the payment in full of all Obligations of the Company, the Company shall remain
liable for any deficiency.

 

(h)                                 Exhibit “R” to this Amendment is added as Exhibit  “R” to the
Warehouse Agreement.

 

Section
4.                                            Representations and Release of Claims. Except as otherwise specified herein, the
terms and provisions hereof shall in no manner impair, limit, restrict or
otherwise affect the Obligations of Company as evidenced by the Loan Documents.
Company hereby acknowledges, agrees, and represents that (i) Company is
indebted to Lenders pursuant to the terms of the Notes; (ii) the liens,
security interests and assignments created and evidenced by the Loan Documents
are, respectively, first, prior, valid and subsisting liens, security interests
and assignments against the Collateral and secure all indebtedness and
obligations of Company to Lenders under the Notes, the Warehouse Agreement, all
other Loan Documents, as modified

 

5

 

herein; (iii) all of the
representations and warranties contained in the Warehouse Agreement and  all instruments and documents executed
pursuant thereto or contemplated thereby are true and correct in all material respects on and as of
this date; (iv) there are no claims or offsets against, or defenses or counterclaims to, the terms or
provisions of the Loan Documents, and the other obligations created or evidenced by the Loan Documents; (v) Company has
no claims, offsets, defenses or
counterclaims arising from any of the Agent’s or Lenders’ acts or omissions
with respect to the Loan
Documents, or the Agent’s or Lenders’ performance under the Loan Documents; (vi) the representations and
warranties contained in the Loan Documents are true and correct representations and warranties of
Company, as of the date hereof; and (vii) Company is not in default and no event has occurred
which, with the passage of time, giving of notice, or both, would constitute a default by Company
of Company’s obligations under the terms and provisions of the Loan Documents. In consideration of the modification of Loan Documents,  all as herein provided, and the
other benefits received by Company hereunder, Company  hereby RELEASES, RELINQUISHES and
forever DISCHARGES Agent, each Lender,  their respective predecessors, successors, assigns, shareholders,
principals, parents,  subsidiaries,
agents, officers, directors, employees, attorneys and representatives  (collectively, the “Lender
Released Parties”), of and from any and all claims, demands,  actions and causes of action of
any and every kind or character, whether known or  unknown, present or future, which
Company has, or may have against Lender Released  Parties, arising out of or with
respect to any and all transactions relating to the Warehouse  Agreement, the Notes, and the
other Loan Documents occurring prior to the date hereof,  including any other loss, expense
and/or detriment, of any kind or character, growing out  of or in any way connected with
or in any way resulting from the acts, actions or omissions  of the Lender Released Parties,
and including any loss, cost or damage in connection with  any breach of fiduciary duty,
breach of any duty of fair dealing, breach of competence,  breach of funding commitment,
undue influence, duress, economic coercion, conflict of  interest, negligence, bad faith,
malpractice, violations of the Racketeer Influence and  Corrupt Organizations Act,
intentional or negligent infliction of emotional or mental  distress, tortious interference
with corporate governance or prospective business  advantage, tortious interference
with contractual relations, breach of contract, deceptive  trade practices, libel, slander,
conspiracy, the charging, contracting for, taking, reserving,  collecting or receiving of
interest in excess of the highest lawful rate applicable to the Loan  Documents (i.e., usury), any
violations of federal or state law, any violations of federal or  state banking rules, laws or
regulations, including, but not limited to, any violations of  Regulation B, Equal Credit
Opportunity, bank tying act claims, any violation of the Texas  Free Enterprise Antitrust Act or
any violation of federal antitrust acts.

 

Section
5.                                            Severability. In the event any one or more provisions
contained in the Warehouse Agreement or this Amendment should be held to be
invalid, illegal or unenforceable in any respect, the validity, enforceability
and legality of the remaining provisions contained herein and therein shall not
be affected in any way or impaired thereby and shall be enforceable in
accordance with their respective terms.

 

6

 

Section
6.                                            Fees and Expenses.  In
consideration of Lenders’ agreement to enter into this Amendment, Company shall
pay to the Agent on behalf of the Lenders (to be shared in their respective
Commitment Percentages) an amendment fee in the amount of $3,000.00, which fee
shall be due and payable upon the execution and delivery of this Amendment.
Company agrees to pay all out-of-pocket costs and expenses (including
reasonable attorney’s fees and expenses) of the Agent and the Lenders in
connection with the preparation, operation, administration and enforcement of
this Amendment.

 

Section
7.                                            Ratification of Agreements.  (a)
Except as amended hereby, Company ratifies and confirms that the Warehouse
Agreement and all other Loan Documents are and remain in full force and effect
in accordance with their respective terms and that all Collateral is unimpaired
by this Amendment and secures the payment and performance of all indebtedness
and obligations of Company under the Notes, the Warehouse Agreement, and all
other Loan Documents, as modified hereby. Company shall execute and deliver a
new Note to each Lender in the amount of its new Commitment Amount.

 

(b)          The undersigned officer of the Company
executing this Amendment represents and warrants that he has full power and
authority to execute and deliver this Amendment on behalf of the Company this
Amendment, that such execution and delivery has been duly authorized by all
necessary corporate action of Company, and represents and warrants that the
resolutions and affidavits previously delivered to Agent, in connection with
the execution and delivery of the Warehouse Agreement, are and remain in full
force and effect and have not been altered, amended or repealed in anywise.

 

(c)          Any reference to the Warehouse Agreement in
any Loan Document shall be deemed to be references to the Warehouse Agreement
as amended hereby.  Any reference in
this Amendment and the other Loan Documents to the Notes shall be deemed to be
references to the new Notes executed and delivered by the Company in connection
herewith.

 

Section
8.                                            Authority.   The undersigned officer of the Company executing this
Amendment represents and warrants that he has full power and authority to
execute and deliver this Amendment on behalf of the Company this Amendment,
that such execution and delivery has been duly authorized by all necessary
corporate action of Company, and represents and warrants that the resolutions
and affidavits previously delivered to Agent, in connection with the execution
and delivery of the Warehouse Agreement, are and remain in full force and
effect and have not been altered, amended or repealed in anywise.

 

Section
9.                                            No Waiver.  Company agrees that no Event
of Default and no Default has been waived or remedied by the execution of this
Amendment by Agent and Lenders, and any such Default or Event of Default
heretofore arising and currently continuing shall continue after the execution
and delivery hereof.

 

Section
10.                                      Governing Law. 
This Amendment shall be governed by and construed in accordance with the
laws of the State of Texas and, to the extent applicable, by federal law.

 

Section
11.                                      Counterparts and Gender. 
This Amendment may be executed in any number of counterparts and all of
such counterparts taken together shall be deemed to constitute

 

7

 

one
and the same instrument.   Each gender
used herein shall include and apply to all genders, including the neuter.

 

Section
12.                                      NO ORAL AGREEMENTS.  THIS AMENDMENT, THE WAREHOUSE AGREEMENT, THE NOTES, AND THE OTHER
LOAN DOCUMENTS, AS MODIFIED AND AMENDED HEREBY, REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[Signature Pages Follow]

 

8

 

EXECUTED this        
day of June, 2003 to be effective as of the date first written above.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SIRVA MORTGAGE, INC.,

  
	
   

  	
  an Ohio corporation f/k/a

  
	
   

  	
  COOPERATIVE MORTGAGE SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul
  Klemme

  	
   

  
	
   

  	
  PAUL KLEMME,
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  SIRVA MORTGAGE, INC

  
	
   

  	
  Attn: Attn: Paul Klemme, President

  
	
   

  	
  6070 Parkland Boulevard

  
	
   

  	
  Mayfield Heights, Ohio 44124

  
	
   

  	
  Fax No.: (440) 646-1835

  

 

9

 

	
   

  	
  WASHINGTON MUTUAL BANK,
  F.A., successor

  
	
   

  	
  by merger to BANK UNITED,
  as Agent and a

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Ben R.
  Culver

  	
   

  
	
   

  	
  Name:

  	
   BEN CULVER

  	
   

  
	
   

  	
  Title:

  	
  VP

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  Attn: Michael D. McAuley,
  Managing Director

  
	
   

  	
  Mortgage Banker Finance

  
	
   

  	
  3200 Southwest Freeway,
  Suite 1922

  
	
   

  	
  Houston, Texas 77027

  
	
   

  	
  Facsimile: (713) 543-4292

  
						

 

10

 

	
   

  	
  NATIONAL CITY BANK OF
  KENTUCKY, as

  
	
   

  	
  Documentation Agent and a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Best

  	
   

  
	
   

  	
  Name:

  	
  Paul Best

  	
   

  
	
   

  	
  Title:

  	
     Senior Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK OF
  KENTUCKY

  
	
   

  	
  Attn: Mary Jo Reiss, Vice
  President,

  
	
   

  	
  Mortgage Banking

  
	
   

  	
  421 West Market Street

  
	
   

  	
  Louisville, Kentucky 40202

  
	
   

  	
  Fax: (502) 581.4154

  
						

 

11

 

EXHIBIT “O”

 

LENDERS, AGGREGATE COMMITMENT AMOUNT,

AND COMMITMENT AMOUNT

 

	
   

  	
   

  	
  COMMITMENT AMOUNT

  	
   

  
	
  NAME OF
  LENDER

  	
   

  	
  Prior to and on

  July 30, 2003

  	
   

  	
  On and After

  July 31, 2003

  	
   

  
	
  Washington Mutual Bank, FA

  3200 Southwest Freeway, Suite 1922

  Houston, Texas 77027

  	
   

  	
  Tranche A Commitment:

  	
   

  	
  $

  	
  32,500,000.00

  	
   

  	
  -0

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tranche B Commitment:

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National City Bank of Kentucky

  101 South Fifth Street, T06K

  Louisville, Kentucky 40202

  	
   

  	
  Tranche A Commitment: 

  	
   

  	
  $

  	
  14,500,000.00 

  	
   

  	
  -0

  	
  -

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tranche B Commitment:

  	
   

  	
  $

  	
  10,500,000.00

  	
   

  	
  $

  	
  10,500,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aggregate Commitment Amount

  	
   

  	
  $

  	
  75,000,000.00

  	
   

  	
  $

  	
  28,000,000.00

  	
   

  

 

O-1

 

EXHIBIT “R”

 

SWING LINE NOTE

 

	
  $10,000,000.00

  	
   

  	
  Houston, Texas

  	
   

  	
  June 29, 2003

  

 

 

FOR VALUE RECEIVED, the
undersigned, SIRVA MORTGAGE, INC. an Ohio corporation f/k/a COOPERATIVE
MORTGAGE SERVICES, INC. (herein called the “Borrower”), hereby promises to pay
to the order of WASHINGTON MUTUAL BANK, FA, a federal association (the “Lender”
or, together with its successors and assigns, the “Holder”) whose principal
place of business is 3200 Southwest Freeway, Suite 1922, Houston, Texas 77027,
or at such other place as the Holder may designate from time to time, the
principal sum of TEN MILLION AND NO/100 DOLLARS ($10,000,000.00) or so much
thereof as may be outstanding from time to time pursuant to the Third Amended
and Restated Warehousing Credit and Security Agreement (the “Agreement’) dated
September 30, 2002 among the Borrower and Washington Mutual Bank, FA, in its
capacity as one of the lenders and as Agent for the lenders party thereto
(including the Lender), as the same may be amended, supplemented, or restated
from time to time, and to pay interest on said principal sum or such part
thereof as shall remain unpaid from time to time, from the date of each Advance
until repaid in full, and all other fees and charges due under the Agreement,
at the rate and at the times set forth in the Agreement. All payments hereunder
shall be made in lawful money of the United States and in immediately available
funds. Capitalized terms used herein, unless otherwise defined herein, shall
have the meanings given them in the Agreement.

 

This Note is issued and
delivered under the Agreement and is the Swing Line Note as defined therein and
is entitled to the benefits thereof. Reference is hereby made to the Agreement
(which is incorporated herein by reference as fully and with the same effect as
if set forth herein at length) for a description of the Collateral, a statement
of the covenants and agreements, a statement of the rights and remedies and
securities afforded thereby and other matters contained therein.

 

The entire unpaid
principal balance of this Note plus all accrued and unpaid interest shall be
due and payable in full on the Termination Date.

 

This Note may be prepaid
in whole or in part at any time without premium or penalty.

 

Should this Note be
placed in the hands of attorneys for collection, the Borrower agrees to pay, in
addition to principal and interest, fees and charges due under the Agreement,
and all costs of collecting this Note, including reasonable attorneys’ fees and
expenses.

 

This Note shall be
construed and enforced in accordance with the laws of the State of Texas,
without reference to its principles of conflicts of law, and applicable federal
laws of the United States of America.

 

This Note is secured by
all security agreements, collateral assignments, deeds of trust and lien
instruments executed by the Borrower in favor of the Agent for the benefit of
the Lenders, or executed by any other Person as security for this Note,
including any executed prior to, simultaneously with, or after the date of this
Note.

 

The Borrower and any and
each co-maker, guarantor, accommodation party, endorser or other Person liable
for the payment or collection of this Note expressly waive notice, presentment,
demand for payment, protest, notice of protest and non-payment or dishonor,
notice of acceleration, notice of intent to accelerate, notice of intent to
demand, bringing of suit, and diligence in taking any action to collect amounts
called for hereunder and in the handling of Collateral at any time existing as
security in connection herewith, and shall be directly and primarily liable for
the payment of all sums owing and to be owing hereon, regardless of and without
any notice, diligence, act or omission as or with respect to the collection of
any amount called for hereunder or in connection with any Lien at any time had
or existing as security for any amount called for hereunder.

 

It is the intention of
the parties hereto to conform strictly to usury laws applicable to the Lender.
Accordingly, if the transactions contemplated hereby would be usurious under
applicable law (including the laws of the United States of America and the
State of Texas), then, in that event, notwithstanding anything to the contrary
herein or in the Agreement or in any other Loan Document or agreement entered
into in connection with or as

 

 

security for this Note, it is agreed as follows: (i)
the aggregate of all consideration which constitutes interest under law
applicable to the Lender that is contracted for, taken, reserved, charged, or
received herein or under the Agreement or under any of the other aforesaid Loan
Documents or agreements or otherwise in connection herewith shall under no
circumstances exceed the maximum amount allowed by such applicable law, and any
excess shall be credited by the Lender on the principal amount of the
Obligations (or, if the principal amount of the Obligations shall have been
paid in full, refunded by the Lender to the Borrower, as required); and (ii) in
the event that the maturity of this Note is accelerated by reason of an
election of the Lender resulting from any Event of Default under the Agreement
or otherwise, or in the event of any required or permitted prepayment, then
such consideration that constitutes interest under law applicable to the Lender
may never include more than the maximum amount allowed by such applicable law,
and excess interest, if any, provided for in the Agreement or otherwise shall
be canceled automatically as of the date of such acceleration or prepayment
and, if theretofore paid, shall be credited by the Lender on the principal
amount of the Obligations (or, if the principal amount of the Obligations shall
have been paid in full, refunded by the Lender to the Borrower, as required).
Without limiting the foregoing, all calculations of the rate of interest taken,
reserved, contracted for, charged, received or provided for under this Note or
any of the Loan Documents which are made for the purpose of determining whether
the interest rate exceeds the Maximum Rate shall be made, to the extent allowed
by law, by amortizing, prorating, allocating and spreading in equal parts
during the period of the full stated term of the loan evidenced hereby, all interest
at any time taken, reserved, contracted for, charged, received, or provided for
under this Note of any of the Loan Documents. To the extent that Section 303 of
the Texas Finance Code is relevant for purposes of determining the Maximum
Rate, the Lender hereby elects to determine the applicable rate ceiling under
such statute by the weekly rate ceiling from time to time in effect, subject to
the Lender’s right subsequently to change such method in accordance with
applicable law.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  SIRVA MORTGAGE, INC.,

  
	
   

  	
  an Ohio corporation f/k/a

  
	
   

  	
  COOPERATIVE MORTGAGE SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]