Document:

Exhibit 10.2

 

 

October 29, 2010

 

Home
Loan Center, Inc.

163
Technology Drive

Irvine,
California 92618

 

Attention:  Mr. Rian Furey

 

Re:          Master Repurchase Agreement,
dated as of October 30, 2009, between JPMorgan Chase Bank, N.A., as Buyer,
and Home Loan Center, Inc., as Seller and the related Side Letter of even
date therewith

 

Ladies
and Gentlemen:

 

This letter (this “Second Amendment to Side
Letter”) amends, for the second time, the Side Letter dated October 30,
2009 (the “Original Side Letter”) that was executed concurrently with
the captioned Master Repurchase Agreement (as amended by Letter Agreement dated
November 27, 2009, Amendment No. 1 to Master Repurchase Agreement
dated March 11, 2010, Amendment No. 2 to Master Repurchase Agreement
dated March 11, 2010, Amendment No. 3 to Master Repurchase Agreement
dated July 22, 2010, and Amendment No. 4 to Master Repurchase
Agreement dated of even date herewith, collectively, the “Agreement”).  Reference is here made to the Original Side
Letter (as previously amended by that certain Amendment No. 1 to Side
Letter dated March 11, 2010 between Seller and Buyer and as amended
hereby, the “Side Letter”) and the Agreement for all purposes.  Capitalized terms defined in the Side Letter
or the Agreement and used but not defined differently in this Second Amendment
to Side Letter have the same meanings here as in the Side Letter and the
Agreement.

 

The Seller has requested, and the Buyer has agreed,
to increase the Facility Amount and to make certain other changes to the Side
Letter.  The Parties hereby amend the
Side Letter, effective as of the date of this Second Amendment to Side Letter,
as follows:

 

For good and valuable consideration received by each
Party from the other Party, the receipt and sufficiency of which are hereby
acknowledged, Buyer and Seller hereby amend the Side Letter as follows
(paragraphs below are numbered to correspond to the number of the paragraph in
the Original Side Letter and consequently are sometimes numbered
nonsequentially):

 

1.             In paragraph 1
(“Commitment”), “One Hundred Million Dollars ($100,000.00)” is
substituted for “75,000,000.”

 

3.             Pricing Rate.  The first sentence of Paragraph 3 of
the Side letter is amended to read as follows:

 

 

For purposes of the
Agreement and all other Transaction Documents, “Pricing Rate” means for any
Purchased Mortgage Loan as of any date of determination, the following
respective rates or if Buyer shall in Buyer’s sole discretion elect from time
to time to give Seller a notice specifying lower Pricing Rate(s) for a
specified time period, such lower Pricing Rate(s) specified in such notice
for the time period specified in such notice:

 

(a)           for any CL Loan, the per
annum percentage rate equal to the sum of (i) the greater of the Adjusted
LIBOR Rate for such day and two percent (2.00%) and (ii) two and
one-fourth percent (2.25%);

 

(b)           for any CL Jumbo Loan, the
per annum percentage rate equal to the sum of (i) the greater of the
Adjusted LIBOR Rate for such day and two percent (2.00%) and (ii) two and
one-half percent (2.50%); and

 

(c)           for any other Eligible
Mortgage Loan, the per annum percentage rate equal to the sum of (i) the
greater of the Adjusted LIBOR Rate for such day and two percent (2.00%) and (ii) two
and one-fourth percent (2.25%).

 

The definitions of “Adjusted
LIBOR Rate”, “LIBOR Rate” and “Statutory Reserve Rate” set forth in Paragraph 3
of the Side Letter are not hereby amended and continue to be defined as set
forth in Paragraph 3 of the Side Letter.

 

6.             Paragraph 6 (“Non-Usage
Fee”) of the Side Letter is hereby deleted in its entirety and amended to
read:  “6.  Reserved.”

 

Notwithstanding
any other provision of this Second Amendment to Side Letter, the amendment
provided for in Paragraph 1 above shall not become effective until (i) the
Parties have executed and delivered this Second Amendment to Side Letter and
Amendment No. 4 to Master Repurchase Agreement of even date herewith
between Seller and Buyer, (ii) the Guarantors have executed a confirmation
of the Guaranty in form and substance acceptable to Buyer and (iii) the
Seller has increased the balance in the Cash Pledge Account to Eight Hundred
Thousand Dollars ($800,000).  Such
amendment shall become effective automatically upon the last to occur of the
three events described in clauses (i), (ii) and (iii) of the
immediately preceding sentence.

 

The
Parties hereby ratify and confirm the Agreement and, as further amended hereby,
the Side Letter, to be in full force and effect.

 

Please
confirm our mutual agreement as set forth herein and acknowledge receipt of
this First Amendment to Side Letter by executing the enclosed copy of this
letter and returning it to JPMorgan Chase Bank, N.A., 712 Main Street, 9th Floor, Houston, Texas 77002,
Attention: Mr. John Greene (email john.r.greene@jpmchase.com or fax (713)
216-2818).  If you have any questions
concerning this matter, please contact me by email, or by phone at (713)
216-0255.

 

2

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as Buyer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN GREENE

  
	
   

  	
   

  	
  John Greene

  
	
   

  	
   

  	
  Underwriter

  

 

 

CONFIRMED AND ACKNOWLEDGED:

 

HOME
LOAN CENTER, INC.,

as
Seller

 

	
  By:

  	
  /s/ RIAN FUREY

  	
   

  
	
  Name:

  	
  Rian Furey

  	
   

  
	
  Title:

  	
  SVP

  	
   

  

 

3Unassociated Document

    

    AGREEMENT

    

    

    THIS AGREEMENT (the “Agreement”) is
executed as of the 20th day of October, 2010 and is effective as of the 30th day
of September, 2010 (the “Effective Date”) by and between ASHER ENTERPRISES,
INC., a Delaware corporation, having a place of business at 1 Linden Place,
Suite 207, Great Neck, New York 11021 (the “Holder” or “Lender”) and GLOBAL
INVESTOR SERVICES, INC., a Nevada corporation having a principal place of
business at 708 Third Avenue, 6th Floor,
New York, New York 10017 (the “Borrower”).

    

    RECITALS

    

    

    WHEREAS, the Borrower executed a
Convertible Promissory Note in the amount of $50,000.00 dated June 2, 2010 (the
“June Note”) along with a Securities Purchase Agreement dated as of June 2, 2010
(the “June Agreement”) running in favor of the Lender, collectively
memorializing the rights and obligations of the parties with respect to that
Loan (the “June Loan Documents”), the funding of which occurred on June 15,
2010; and

    

    WHEREAS, the Borrower executed a
Convertible Promissory Note in the amount of $35,000.00 dated July 16, 2010 (the
“July Note”) along with a Securities Purchase Agreement dated as of July 16,
2010 (the “July Agreement”) running in favor of the Lender, collectively
memorializing the rights and obligations of the parties with respect to that
Loan (the “July Loan Documents”) the funding of which occurred on July 28, 2010;
and

    

    WHEREAS, the June Note has a maturity
date of March 4, 2011 and the July Note has a maturity date of April 20, 2011;
and

    

    WHEREAS, neither the June Note nor the
July Note (collectively referred to as the “Notes”) permit the Borrower the
right to prepay the Notes in whole or in part; and

    

    WHEREAS, the Borrower is desirous of
prepaying the Notes; and

    

    WHEREAS, the Lender hereby grants to
the Borrower the right to prepay the Notes upon the terms and conditions set
forth herein:

    

    

    NOW, THEREFORE, the parties agree as
follows:

    

    1.           Incorporation of the
Recitals -Transaction Documents. All of the recitals set forth above are
made a part of this Agreement and incorporated herein as if set at length in the
text of this Agreement.  This Agreement and any other documents and/or
instruments in connection therewith, whether executed by the Lender and/or
Borrower, are collectively referred to as the “Transaction
Documents”.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    2.           Right of Prepayment.
The parties acknowledge that neither the June Note nor the July Note affords the
Borrower the right to prepay in whole or in part any sums loaned by the Lender
to the Borrower.  Notwithstanding the foregoing, however, the Borrower
has requested that the Lender grant to the Borrower the opportunity to prepay
both of the aforesaid Notes.  The Lender agrees to grant the Borrower
the right to prepay provided that the Borrower complies with the terms and
conditions set forth in this Agreement.

    

    3.           Prepayment of the June
Note. The Borrower acknowledges that by the Lender permitting the
Borrower the right of prepayment, the Lender will be foregoing a substantial
right to convert the debt to equity as provided for in the June Loan
Documents.  As consideration for the Borrower acquiring this right the
Borrower agrees to prepay 150% of the principal amount of the June Note
(computed to be $75,000.00) together with accrued and unpaid interest on the
initial principal amount as follows:

    

    (a)           The
sum of $37,500.00 simultaneously with the execution of this Agreement together
with accrued and unpaid interest of $1,337.00 aggregating the sum of
$38,837.00;

    

    (b)           The
sum of $18,750.00 together with accrued and unpaid interest based upon the then
remaining initial principal balance of $247.00 aggregating the sum of $18,997.00
to be paid on or before November 15, 2010;

    

    (c)           The
sum of $18,750.00 together with accrued and unpaid interest upon the then
remaining principal amount of $123.00 aggregating the sum of $18,873.00 to be
paid on or before the 15th day of
December, 2010;

    

    (d)           All
payments due under this provision are to be made by wire transfer to the
following account:

    

    Capital
One Bank

    Great
Neck, New York 11021

    Asher
Enterprises, Inc.

    1000
North West Street, Suite 1200

    Wilmington,
Delaware 19801

    ABA #:
021407912

    ACCOUNT
#: 7017037654

    

    4.           Prepayment of the July
Note. The Borrower acknowledges that by the Lender permitting the
Borrower the right to prepay that the Lender will be foregoing a substantial
right to convert the debt to equity as provided for in the July Loan
Documents.  As consideration for the Borrower acquiring this right the
Borrower agrees to prepay 150% of the principal amount of the July Note
(computed to be $52,000.00) together with accrued and unpaid interest on the
initial principal amount as follows:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (a)           The
sum of $26,250.00
simultaneously with the execution of this Agreement together with accrued and
unpaid interest of $606.00 aggregating the sum of $26,856.00;

    

    (b)           The
sum of $13,125.00 together with accrued and unpaid interest based upon the then
remaining initial principal balance of $173.00 aggregating the sum of $13,298.00
to be paid on or before November 15, 2010;

    

    (c)           The
sum of $13,125.00 together with accrued and unpaid interest upon the then
remaining principal amount of $86.00 aggregating the sum of $13,211.00 to be
paid on or before the 15th day of
December, 2010;

    

    (d)           All
payments due under this provision are to be made by wire transfer to the
following account:

    

    Capital
One Bank

    Great
Neck, New York 11021

    Asher
Enterprises, Inc.

    1000
North West Street, Suite 1200

    Wilmington,
Delaware 19801

    ABA #:
021407912

    ACCOUNT
#: 7017037654

    

    5.           Obligation of Lender.
Upon the full and timely compliance with the payment schedules as set forth in
paragraphs 3 and 4 above the Holder will promptly return the original Notes to
the Borrower indicating that the Borrower’s payment obligation under the Notes
have been paid subject only to those provisions which by their terms survive
payment of the Notes.

    

    6.           Event of Default.
Should the Borrower fail to make any payment under paragraphs 3 and 4 above when
due, that failure on the part of the Borrower shall constitute an event of
default and without any further notice the Holder of the Notes will be permitted
to enforce all rights and remedies afforded to it under the June Loan Documents
and the July Loan Documents and the prepayment opportunity afforded to the
Borrower shall be deemed null and void and of no force and effect, with the
exception that the Borrower will continue to remain obligated to the Holder in
the amount  of 150% of each face amount set forth in the Notes
together with applicable interest, costs, fees and disbursements giving the
Borrower credit for any monies paid under this Agreement.

    

    7.           Entire Agreement.
This Agreement and the Transaction Documents constitute the entire understanding
among the parties regarding the subject matter hereof.  This Agreement
and the Transaction Documents supersede all oral negotiations and prior writings
concerning the subject matter hereof.  If there is any conflict
between the terms, conditions and provisions of this Agreement and those of any
other Transaction Document, the terms, conditions and provisions of this
Agreement shall prevail.  This Agreement may not be modified, amended
or terminated except by a written agreement signed by each of the parties
hereto.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    8.           Time is of the
Essence. Time is hereby declared to be of the essence of this Agreement
and of every part hereof.

    

    9.           Survival. The
representations, warranties and covenants herein of the Holder and the Borrower
shall survive the execution and the performance by the parties of their
obligations hereunder and under the other Transaction Documents.

    

    10.         Advice of Counsel.
Asher Enterprises, Inc. acknowledges that it has consulted the law firm of
Naidich Wurman Birnbaum & Maday, LLP, 80 Cuttermill Road, Suite 410, Great
Neck, New York 11021 concerning this Agreement.   Conversely,
Global Investor Services, Inc. acknowledges that it has consulted the law firm
of Stephen M. Fleming PLLC, 49 Front Street,  Suite 206, Rockville
Centre, New York 11540 concerning this Agreement.

    

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

    

    

    
      	
              ASHER
      ENTERPRISES, INC.

            	 
      	
              GLOBAL
      INVESTOR SERVICES, INC.

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/
      Curt Kramer

            	 
      	
              By:

            	
              /s/
      Nicholas S. Maturo

            
	 
      	
              Curt
      Kramer

            	 
      	 
      	
              Nicholas
      S. Maturo

            
	 
      	
              President

            	 
      	 
      	
              Chief
      Executive Officer

            

    

    
      
         

      

      
        4

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