Document:

Exhibit 10.64

 

EMPLOYMENT CONTRACT

 

This Employment Contract dated effective the 1st
day of April 2022, (the “Effective Date”) is by and between Karen McNemar, the Company’s Chief Operations Officer and
Interim Chief Financial Officer (hereinafter referred to as the “Employee”), and IIOT-OXYS, Inc., a Nevada corporation (hereinafter
referred to as the “Company” or the “Employer”).

 

BACKGROUND:

 

		A.	The Employer is of the opinion that the Employee has the necessary qualifications, significant experience
and abilities to assist and benefit the Employer in its business.

 

		B.	The Employer desires to employ the Employee and the Employee has agreed to accept and enter such employment
upon the terms and conditions set out in this Agreement.

 

IN CONSIDERATION OF the matters
described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration
is hereby acknowledged, the parties to this Agreement agree as follows:

 

Commencement
Date and Term

		1.	Effective as of April 1, 2022, the Employee hereby agrees to serve as the Company’s
Chief Operations Officer (“COO”) and Interim Chief Financial Officer (“CFO”). The Agreement shall remain until
the Agreement is terminated, as provided herein.

 

Job
Description

		2.	The Employee shall provide such services and have such duties, authorities,
and responsibilities as are consistent with her position as COO and CFO and as the Chief Executive Officer (CEO) may designate from time
to time while the Employee serves as the COO and CFO of the Company (the “Services”). The Employee will report directly to
the CEO.

 

		3.	The Employer may make changes to the job title or duties of the Employee where the changes would be considered
reasonable for a similar position in the industry or business of the Employer. The Employee's job title or duties may be changed by agreement
and with the approval of both the Employee and the Employer or after a notice period required under law.

 

		4.	The Employee agrees to abide by the Employer's rules, regulations, policies, and practices, including
those concerning work schedules, vacation, and sick leave, as they may from time to time be adopted or modified.

 

Employee Compensation

		5.	Compensation paid to the Employee for the services rendered by the Employee as required by this Agreement
(the "Compensation") will include an annual salary of $100,000. When the Company reaches $1 MM in cumulative sales over a 12
month period, the annual salary will increase to $150,000, commencing the following month. When the Company reaches $5 MM in cumulative
sales over a 12 month period, the annual salary will increase to $200,000, commencing the following month. All salary may accrue.

 

		6.	This Compensation will be payable two (2) times per month, on approximately the 15th and 30th
of every month while this Agreement is in force. The Employer is entitled to deduct from the Employee's Compensation, or from any other
compensation in whatever form, any applicable deductions and remittances as required by law.

 

 

 

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		7.	Beginning on the Effective Date, the Employee shall be eligible to participate in the Company’s
Stock Incentive Plan (or any subsequent equity compensation plan adopted and approved by the Company’s Board of Directors) through
the award of an aggregate of 7,000,000 shares of the Company’s Common Stock (the “Shares”) which shall vest as
follows:

 

		(i)	1,500,000 Shares on the first anniversary of the Effective Date;
		(ii)	2,500,000 Shares on the second anniversary of the Effective Date; and
		(iii)	3,000,000 Shares on the third anniversary of the Effective Date.

 

If the Agreement is terminated by either
Party pursuant to the terms of the Agreement, all unvested Shares which have been earned shall vest on a pro-rata basis as of the effective
date of the termination of the Agreement and all unearned, unvested Shares shall be terminated. Shares are only earned if the Agreement
is in effect and no Shares shall be earned after the effective date of the termination of the Agreement.

 

		8.	Unless unvested Shares have earlier terminated pursuant this Agreement, vesting of all unvested Shares
shall be accelerated so that all unvested Shares shall become one hundred percent (100%) vested in the Employee upon a Change of Control.
For purposes of this Agreement, the term Change of Control shall mean (i) the sale of all or substantially all of the assets of the Company,
(ii) the sale of more than fifty percent (50%) of the outstanding common stock of the Company in a non-public sale, (iii) the dissolution
or liquidation of the Company, or (iv) any merger, share exchange, consolidation or other reorganization or business combination of the
Company if immediately after such transaction either (A) persons who were directors of the Company immediately prior to such transaction
do not constitute at least a majority of the directors of the surviving entity, or (B) persons who hold a majority of the voting capital
stock of the surviving entity are not persons who held a majority of the voting capital stock of the Company immediately prior to such
transaction.

 

		9.	In addition to the acceleration of vesting in the event of a Change of Control, unless unvested Shares
have earlier terminated pursuant this Agreement, vesting of all unvested Shares shall be accelerated so that all unvested Shares shall
become one hundred percent (100%) vested in the Employee upon the listing of the Company's Common Stock on a senior exchange.

 

		10.	The Employee understands and agrees that any additional remuneration paid to the Employee in the form
of bonuses or other similar incentive remuneration will rest in the sole discretion of the Employer and that the Employee will not earn
or accrue any right to incentive remuneration by reason of the Employee's employment.

 

		11.	At any time, the Employee shall have the right to convert any accrued and unpaid Compensation into shares
of Common Stock of the Company (the “Conversion Shares”). The conversion price shall equal ninety percent (90%) multiplied
by the Market Price (as defined herein) (representing a discount rate of 10%) (the “Conversion Price”). “Market
Price” means the average of the Trading Prices (as defined below) for the shares of Common Stock of the Company during the thirty
(30) day period ending on the latest complete trading day prior to the Conversion Date. “Trading Price” and “Trading
Prices” means, for any security as of any date, the closing trade price of the Company’s Common Stock on the OTC Pink, OTCQB
or applicable trading market as reported by a reliable reporting service (“Reporting Service”) designated by the Employee
or, if the OTC Pink is not the principal trading market for such security, the trading price of such security on the principal securities
exchange or trading market where such security is listed or traded or, if no trading price of such security is available in any of the
foregoing manners, the average of the trading prices of any market makers for such security that are listed in the “pink sheets”
by the National Quotation Bureau, Inc. “Conversion Date” shall mean the date of receipt by the Company of the completed and
executed Notice of Conversion, the form of which is attached hereto as Exhibit A.

 

		12.	The Employer will reimburse the Employee for all reasonable expenses, in accordance with the Employer's
lawful policy FI-001 including but not limited to, any travel and entertainment expenses incurred by the Employee in connection with the
business of the Employer. Expenses will be paid within a reasonable time after submission of acceptable supporting documentation.

 

 

 

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Place of Work

		13.	The Employee's primary place of work shall be remote.

 

Time of Work

		14.	The Employee shall work additional hours and/or hours outside of the Employee's forty (40) hours per week
("Normal Hours of Work”), as deemed necessary, to meet the business needs of the Employer.

 

Employee Benefits

		15.	The Employee shall be entitled to only those additional benefits that are currently available as described
in the lawful provisions of the Employer's employment policy documents or as required by law.

 

		16.	Employer discretionary benefits are subject to change, without compensation, upon the Employer providing
the Employee with sixty (60) days written notice of that change and providing that any change to those benefits is taken generally with
respect to other employees and does not single out the Employee.

 

		17.	Employer shall reimburse the Employee $800 monthly to apply toward the cost of Health Insurance. An expense
report must be submitted monthly by the employee to be reimbursed.

 

Paid Time Off

		18.	The Employee shall be entitled to twenty-five days of paid time off (“PTO”) each year during
the term of this Agreement, or as entitled by law, whichever is greater.

 

		19.	The times and dates for any PTO will be determined by mutual written agreement between the Employer and
the Employee.

 

		20.	Upon termination of employment, unless terminated for Cause or unless the
Employee fails to comply with notice requirements, the Employer will compensate the Employee for any accrued but unused PTO. For purposes
of this Agreement, “Cause” shall mean For the purposes of this Agreement,
(1) Employee’s failure to substantially perform her duties or any other material breach of this Agreement by Employee (other than
a failure or breach resulting from her incapacity due to physical or mental illness, injury or similar incapacity), which failure or breach
is not cured after the passage of a reasonable period of time to cure contained in a written demand from the Board that specifically describes
such failure or breach; (2) Employee’s participation in activities that are competitive with Employer’s business, which participation
is not cured after the passage of a reasonable period of time to cure contained in a written demand from Board that specifically describes
such conduct; (3) Employee’s conviction of a felony; or (4) Employee’s violation of her duty to maintain confidentiality as
required herein.

 

Conflict of Interest

		21.	During the term of the Agreement, it is understood and agreed that any business
opportunity relating to or similar to the Employer's actual or reasonably anticipated business opportunities (with the exception of personal
investments in less than 5% of the equity of a business, investments in established family businesses, real estate, angel investments
in early stage private companies who are not in competition with the Company, or investments in stocks and bonds traded on public stock
exchanges) coming to the attention of the Employee, is an opportunity belonging to the Employer. Therefore, the Employee will advise the
Employer of the opportunity and cannot pursue the opportunity, directly or indirectly, without the written consent of the Employer.

 

		22.	During the term of the Agreement, the Employee will not, directly, or indirectly, engage or participate
in any other business activities that the Employer, in its reasonable discretion, determines to be in conflict with the best interests
of the Employer without the written consent of the Employer.

 

 

 

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Non-Solicitation

		23.	The Employee understands and agrees that any attempt on the part of the Employee to induce other employees
or contractors to leave the Employer's employ, or any effort by the Employee to interfere with the Employer's relationship with its other
employees and contractors would be harmful and damaging to the Employer. The Employee agrees that during the term of the Agreement and
for a period of two (2) years after the end of that term, the Employee will not in any way, directly or indirectly:

 

		a.	Induce or attempt to induce any employee or contractor of the Employer to quit employment or retainer
with the Employer;

 

		b.	Otherwise interfere with or disrupt the Employer's relationship with its employees and contractors;

 

		c.	Discuss employment opportunities or provide information about competitive employment to any of the Employer's
employees or contractors; or

 

		d.	Solicit, entice, or hire away any employee or contractor of the Employer for the purpose of an employment
opportunity that is in competition with the Employer.

 

		24.	This non-solicitation obligation as described in this section will be limited to employees or contractors
who were employees or contractors of the Employer during the term of the Agreement.

 

		25.	During the term of the Agreement, and for two (2) years thereafter, the Employee will not divert or attempt
to divert from the Employer any business the Employer had enjoyed, solicited, or attempted to solicit, from its customers, prior to termination
or expiration, as the case may be, of the Employee's employment with the Employer.

 

Confidential Information

		26.	The Employee acknowledges that, in any position the Employee may hold, in and as a result of the Employee's
employment by the Employer, the Employee will, or may, be making use of, acquiring or adding to information which is confidential to the
Employer (the "Confidential Information") and the Confidential Information is the exclusive property of the Employer.

 

		27.	The Confidential Information will include all data and information relating to the business and management
of the Employer, including but not limited to, proprietary and trade secret technology and accounting records to which access is obtained
by the Employee, including Work Product, Computer Software, Other Proprietary Data, Business Operations, Marketing and Development Operations,
and Customer Information.

 

		28.	The Confidential Information will also include any information that has been disclosed by a third party
to the Employer and is governed by a non-disclosure agreement entered into between that third party and the Employer.

 

		29.	The Confidential Information will not include information that:

 

		a.	Is generally known in the industry of the Employer;

 

		b.	Is now or subsequently becomes generally available to the public through no wrongful act of the Employee;

 

		c.	Was rightfully in the possession of the Employee prior to the disclosure to the Employee by the Employer;

 

		d.	Is independently created by the Employee without direct or indirect use of the Confidential Information;
or

 

		e.	The Employee rightfully obtains from a third party who has the right to transfer or disclose it.

 

 

 

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		30.	The Confidential Information will also not include anything developed or produced by the Employee during
the term of the Agreement, including but not limited to, any intellectual property, process, design, development, creation, research,
invention, know-how, trade name, trademark or copyright that:

 

		a.	Was developed without the use of equipment, supplies, facility or Confidential Information of the Employer;

 

		b.	Was developed entirely on the Employee's own time;

 

		c.	Does not result from any work performed by the Employee for the Employer; and

 

		d.	Does not relate to any actual or reasonably anticipated business opportunity of the Employer.

 

Duties and Obligations Concerning Confidential
Information

		31.	The Employee agrees that a material term of the Employee's contract with the Employer is to keep all Confidential
Information absolutely confidential and protect its release from the public. The Employee agrees not to divulge, reveal, report or use,
for any purpose, any of the Confidential Information which the Employee has obtained or which was disclosed to the Employee by the Employer
as a result of the Employee's employment by the Employer. The Employee agrees that if there is any question as to such disclosure then
the Employee will seek out senior management of the Employer prior to making any disclosure of the Employer's information that may be
covered by this Agreement.

 

		32.	The Employee agrees and acknowledges that the Confidential Information is of a proprietary and confidential
nature and that any disclosure of the Confidential Information to a third party in breach of this Agreement cannot be reasonably or adequately
compensated for in money damages, would cause irreparable injury to Employer, would gravely affect the effective and successful conduct
of the Employer's business and goodwill, and would be a material breach of this Agreement.

 

		33.	The obligations to ensure and protect the confidentiality of the Confidential Information imposed on the
Employee in this Agreement and any obligations to provide notice under this Agreement will survive the expiration or termination, as the
case may be, of this Agreement and will continue for two (2) years from the date of such expiration or termination, except in the case
of any Confidential Information which is a trade secret in which case those obligations will last indefinitely.

 

		34.	The Employee may disclose any of the Confidential Information:

 

		a.	To a third party where Employer has consented in writing to such disclosure; or

 

		b.	To the extent required by law or by the request or requirement of any judicial, legislative, administrative,
or other governmental body after providing reasonable prior notice to the Employer.

 

		35.	If the Employee loses or makes unauthorized disclosure of any of the Confidential Information, the Employee
will immediately notify the Employer and take all reasonable steps necessary to retrieve the lost or improperly disclosed Confidential
Information.

 

 

 

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Ownership and Title to Confidential Information

		36.	The Employee acknowledges and agrees that all rights, title, and interest in any Confidential Information
will remain the exclusive property of the Employer. Accordingly, the Employee specifically agrees and acknowledges that the Employee will
have no interest in the Confidential Information, including, without limitation, no interest in know-how, copyright, trademarks or trade
names, notwithstanding the fact that the Employee may have created or contributed to the creation of the Confidential Information.

 

		37.	The Employee waives any moral rights that the Employee may have with respect to the Confidential Information.

 

		38.	The Employee agrees to immediately disclose to the Employer all Confidential Information developed in
whole or in part by the Employee during the Employee's term of employment with the Employer and to assign to the Employer any right, title
or interest the Employee may have in the Confidential Information. The Employee agrees to execute any instruments and to do all other
things reasonably requested by the Employer, both during and after the Employee's employment with the Employer, in order to vest more
fully in the Employer all ownership rights in those items transferred by the Employee to the Employer.

 

Ownership of Intellectual Property

		39.	All intellectual property and related material (the "Intellectual Property") that is
developed or produced under this Agreement will be the property of the Employer.

 

		40.	Title, copyright, intellectual property rights and distribution rights of the Intellectual Property remain
exclusively with the Employer.

 

Return of Confidential Information

		41.	The Employee agrees that, upon request of the Employer or upon termination or expiration, as the case
may be, of this employment, the Employee will turn over to the Employer all Confidential Information belonging to the Employer, including
but not limited to, all documents, plans, specifications, disks, or other computer media, as well as any duplicates or backups made of
that Confidential Information in whatever form or media, in the possession or control of the Employee that:

 

		a.	May contain or be derived from ideas, concepts, creations, or trade secrets and other proprietary and
Confidential Information as defined in this Agreement; or

 

		b.	Is connected with or derived from the Employee's employment with the Employer.

 

Contract Binding Authority

		42.	Notwithstanding any other term or condition expressed or implied in this Agreement to the contrary, the
Employee will not have the authority to enter into any contracts or commitments for or on the behalf of the Employer without first obtaining
the express written consent of the Employer.

 

Termination of Employment

		43.	Where there is any violation of the Code of Ethics, the Employer may terminate the Employee's employment
without notice, as permitted by law.

 

		44.	The Employee and the Employer agree that reasonable and sufficient written notice of termination of employment
by the Employer is the greater of two (2) weeks or any minimum notice required by law. As an alternative, if the Employee co-operates
with the training and development of a replacement, then sufficient notice is given if it is sufficient notice to allow the Employer to
find and train the replacement.

 

		45.	The Termination Date specified by either the Employee or the Employer may expire on any day of the month
and upon the Termination Date the Employer will forthwith pay to the Employee any outstanding portion of the compensation including any
accrued PTO and banked time, if any, calculated to the Termination Date.

 

		46.	Once notice has been given by either party for any reason, the Employee and the Employer agree to execute
their duties and obligations under this Agreement diligently and in good faith through to the end of the notice period. The Employer may
not make any changes to compensation or any other term or condition of this Agreement between the time termination notice is given through
to the end of the notice period.

 

 

 

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Remedies

	 	47.	In the event of a breach or threatened breach by the Employee of any of the provisions of this Agreement,
the Employee agrees that the Employer is entitled to a permanent injunction, in addition to and not in limitation of any other rights
and remedies available to the Employer at law or in equity, in order to prevent or restrain any such breach by the Employee or by the
Employee' partners, agents, representatives, servants, employees, and/or any and all persons directly or indirectly acting for or with
the Employee.

 

Severability

		48.	The Employer and the Employee acknowledge that this Agreement is reasonable, valid and enforceable. However,
if any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable,
it is the parties' intent that such provision be changed in scope by the court only to the extent deemed necessary by that court to render
the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or
invalidated as a result.

 

Notices

		49.	Any notices, deliveries, requests, demands or other communications required here will be deemed to be
completed when hand-delivered, delivered by agent, or seven (7) days after being placed in the post, postage prepaid, to the parties at
the following addresses or as the parties may later designate in writing. An electronic communication (“Electronic Notice”)
shall be deemed written notice for purposes of this section if sent to the electronic mail address specified by the receiving party under
separate cover. Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt
by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic
form (“Nonelectronic Notice”) which shall be sent to the requesting party within ten (10) days of receipt of the written request
for Nonelectronic Notice.

 

	 	 	Employer:	IIOT-OXYS, Inc.
	 	 	Address:	705 Cambridge Street, Cambridge, MA 02141
	 	 	Email:	contact@oxyscorp.com
	 	 	 	 
	 	 	Employer:	Karen McNemar

	 	 	Address:	65 Mansfield Road, Milford, CT 06461

	 	 	Email:	kmcnemar@hotmail.com

 

Modification of Agreement

		50.	Any amendment or modification of this Agreement or additional obligation assumed by either party in connection
with this Agreement will only be binding if evidenced in writing signed by each party or an authorized representative of each party.

 

Governing Law and Disputes

		51.	This Agreement shall be governed by and construed in accordance with the laws of the State of Massachusetts
without reference to its conflicts of laws principles. Any disputes arising from or related to the subject matter of this Agreement shall
be heard in a court of appropriate jurisdiction of the Company’s principal office and the parties hereby consent to the personal
jurisdiction and venue of these courts. If any provisions of this Agreement or its applications is held to be invalid, illegal, or unenforceable
in any respect, the validity, legality or enforceability of any other provisions and applications herein shall not in any way be affected
or impaired.

 

 

 

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Definitions

		52.	For the purpose of this Agreement the following definitions will apply:

 

		c.	'Work Product' means work product information, including but not limited to, work product resulting from
or related to work or projects performed or to be performed for the Employer or for clients of the Employer, of any type or form in any
stage of actual or anticipated research and development.

 

		d.	'Computer Software' means computer software resulting from or related to work or projects performed or
to be performed for the Employer or for clients of the Employer, of any type or form in any stage of actual or anticipated research and
development, including but not limited to, programs and program modules, routines and subroutines, processes, algorithms, design concepts,
design specifications (design notes, annotations, documentation, flowcharts, coding sheets, and the like), source code, object code and
load modules, programming, program patches and system designs.

 

		e.	'Other Proprietary Data' means information relating to the Employer's proprietary rights prior to any
public disclosure of such information, including but not limited to, the nature of the proprietary rights, production data, technical
and engineering data, test data and test results, the status and details of research and development of products and services, and information
regarding acquiring, protecting, enforcing and licensing proprietary rights (including patents, copyrights and trade secrets).

 

		f.	'Business Operations' means operational information, including but not limited to, internal personnel
and financial information, vendor names and other vendor information (including vendor characteristics, services and agreements), purchasing
and internal cost information, internal services and operational manuals, and the manner and methods of conducting the Employer's business.

 

		g.	'Marketing and Development Operations' means marketing and development information, including but not
limited to, marketing and development plans, price and cost data, price and fee amounts, pricing and billing policies, quoting procedures,
marketing techniques and methods of obtaining business, forecasts and forecast assumptions and volumes, and future plans and potential
strategies of the Employer which have been or are being considered.

 

		h.	'Customer Information' means customer information, including but not limited to, names of customers and
their representatives, contracts and their contents and parties, customer services, data provided by customers and the type, quantity
and specifications of products and services purchased, leased, licensed, or received by customers of the Employer.

 

		i.	'Termination Date' means the date specified in this Agreement or in a subsequent notice by either the
Employee or the Employer to be the last day of employment under this Agreement. The parties acknowledge that various provisions of this
Agreement will survive the Termination Date.

 

Employee Representations

		53.	The Shares are being acquired for the Employee’s own account, for investment, and not with the view
to, or for, division or resale in connection with any distribution or public offering thereof within the meaning of the Securities Act
of 1933, as amended (the “Securities Act”), or the securities or blue-sky laws of any state.

 

		54.	The Employee understands that the Shares, upon vesting, will be issued as registered securities under
the Securities Act and without registration under any state securities or blue-sky acts or laws. The Employee understands that the Shares
may not be sold, transferred, pledged, or otherwise disposed of in the absence of an effective registration statement covering the Shares
under the Securities Act, and applicable state securities laws, or unless, in the opinion of counsel satisfactory to the Employer prepared
at the expense of the Employee, and exemptions from such registration and state securities laws are available. Furthermore, the Employee
is aware of the restrictions which may be imposed by the Employer or the federal or state securities laws on the distribution of the securities,
including, but not limited to, restrictive legends on the stock certificates representing the Shares, required holding periods, and stop
transfer orders.

 

		55.	The Employee is either (i) an “Accredited Investor”, as the term is defined in Rule 501(a)
of the Securities Act, or (ii) is sophisticated in financial matters and is able to evaluate the risks and benefits of the investment
in the Shares.

 

 

 

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General Provisions

		56.	Time is of the essence in this Agreement.

 

		57.	Headings are inserted for the convenience of the parties only and are not to be considered when interpreting
this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine
and vice versa.

 

		58.	No failure or delay by either party to this Agreement in exercising any power, right or privilege provided
in this Agreement will operate as a waiver, nor will any single or partial exercise of such rights, powers or privileges preclude any
further exercise of them or the exercise of any other right, power or privilege provided in this Agreement.

 

		59.	This Agreement will inure to the benefit of and be binding upon the respective heirs, executors, administrators,
successors and assigns, as the case may be, of the Employer and the Employee.

 

		60.	This Agreement may be executed in counterparts. Facsimile or electronic signatures are binding and are
considered to be original signatures.

 

		61.	If, at the time of execution of this Agreement, there is a pre-existing employment agreement still in
effect between the parties to this Agreement, then in consideration of and as a condition of the parties entering into this Agreement
and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged, this Agreement will supersede any
and all pre-existing employment agreements between the Employer and the Employee. Any duties, obligations, and liabilities still in effect
from any pre-existing employment agreement are void and no longer enforceable after execution of this Agreement.

 

		62.	This Agreement constitutes the entire agreement between the parties and there are no further items or
provisions, either oral or written. The parties to this Agreement stipulate that neither of them has made any representations with respect
to the subject matter of this Agreement except such representations as are specifically set forth in this Agreement.

 

 

IN WITNESS WHEREOF, the parties have
duly affixed their signatures under hand and seal on this

 

2nd day of June, 2022.

 

EMPLOYER:

 

	/s/ Clifford L. Emmons	6/2/2022
	 	 
	Clifford L. Emmons	Date
	 	 
	CEO, IIOT-OXYS, Inc.	 
	 	 
	/s/ Karen McNemar	6/2/2022
	 	 
	Karen McNemar	Date
	 	 
	An Individual	 

 

 

 

 

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EXHIBIT A

 

NOTICE OF CONVERSION

 

IIOT-OXYS, Inc.

 

Re: Conversion of Accrued
and Unpaid Monthly Fees

 

 

The undersigned hereby irrevocably
exercises the option to convert $____________________ into shares of common stock of IIOT-OXYS, Inc., in accordance with the terms of
this Agreement, and directs that the shares issuable and deliverable upon the conversion be issued in the name of and delivered to the
undersigned unless a different name has been indicated below. If shares are to be issued in the name of a person other than the undersigned,
the undersigned will pay any transfer taxes payable with respect thereto.

 

	Date: ______________	 	 
	 	(Signature)	 

 

	COMPLETE FOR REGISTRATION OF SHARES	 	 
	 	 	 
	 	 	 
	 	 	 
	(Printed Name)	 	(Social
Security or other identifying number)
	 	 	 
	 	 	 
	 	 	 
	(Street Address)	 	 
	 	 	 
	 	 	 
	 	 	 
	(City, State, and ZIP Code)	 	 
	 	 	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

    	 	10Document

EXHIBIT 10.3

AMENDMENT NO. 2 TO 
MASTER REPURCHASE AGREEMENT 
    AMENDMENT NO. 2 TO MASTER REPURCHASE AGREEMENT, dated as of March 9, 2022 (this “Amendment”), between RMTG LENDER LLC, a Delaware limited liability company (“Seller”) and UBS AG, BY AND THROUGH ITS NEW YORK BRANCH OFFICE AT 1285 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK, a Delaware corporation (“Buyer”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Repurchase Agreement (as defined below) or in the Pricing Letter (as defined in the Repurchase Agreement), as applicable.
RECITALS
WHEREAS, Seller and Buyer are parties to that certain Master Repurchase Agreement, dated as of February 18, 2021 (as amended by Amendment No. 1 to Pricing Letter, Limited Guaranty, Fee Side Letter and Repurchase Agreement, dated as of October 18, 2021, between and among Seller, Buyer and Seven Hills Realty Trust (f/k/a RMR Mortgage Trust), the “Repurchase Agreement”);
WHEREAS, Seller and Buyer have agreed, subject to the terms and conditions hereof, that the Repurchase Agreement shall be amended as set forth in this Amendment.
NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer each agree as follows:

Section a.Amendments to Repurchase Agreement.

 (a)  Section 2 is hereby amended by inserting the following new definitions in the correct alphabetical order:
“Alternate Rate” shall mean, with respect to each Pricing Rate Period, the per annum rate of interest of the Alternate Rate Index determined as of the applicable Pricing Rate Determination Date, plus the Applicable Spread.
“Alternate Rate Index” shall mean the first alternative set forth in the order below that can be determined by Buyer as of the Benchmark Replacement Date: 
1.The sum of (A) Compounded SOFR and (B) the Alternate Rate Spread Adjustment;
2.The sum of: (A) the alternate rate of interest that has been selected or recommended by the Federal Reserve as the replacement for the then-current Benchmark and (B) the Alternate Rate Spread Adjustment; 
3.The sum of: (A) the ISDA Fallback Rate and (B) the Alternate Rate Spread Adjustment; or 
4.The sum of: (A) the alternate rate of interest that has been selected by Buyer as the replacement for the then-current Benchmark giving due 

EXHIBIT 10.3

consideration to any evolving or then-prevailing market convention for determining a rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated securitizations at such time and (B) the Alternate Rate Spread Adjustment,
provided that, in the case of clause (1) above, such rate, or the underlying rates component thereof, is or are displayed on a screen or other information service that publishes such rate or rates from time to time as selected by Buyer in its reasonable discretion. In no event shall the Alternate Rate Index be less than the Benchmark Floor.
“Alternate Rate Index Conforming Changes” shall mean, with respect to any conversion of a Transaction to an Alternate Rate Transaction, any technical, administrative or operational changes (including changes to the definition of “Pricing Rate Period”, “Remittance Date”, “Pricing Rate Determination Date”, “Business Day” and/or “U.S. Government Securities Business Day”, timing and frequency of determining rates and making payments of interest and preceding and succeeding business day conventions and other administrative matters) that Buyer decides may be appropriate to reflect the adoption and implementation of such Alternate Rate Index and to permit the administration thereof by Buyer in a manner substantially consistent with market practice (or, if Buyer decides that adoption of any portion of such market practice is not administratively feasible or if Buyer or its designee determines that no market practice for use of the Alternate Rate Index exists, in such other manner as Buyer determines is reasonably necessary); provided, however, that no such conforming changes will be made by Buyer and applied to Seller unless Buyer is imposing changes similar in substance on its similarly situated customers domiciled in the United States under repurchase facilities under which Buyer has a comparable contractual right, which repurchase facilities finance commercial real estate mortgage loans similar to the affected Purchased Loans.
“Alternate Rate Spread Adjustment” shall mean the first alternative set forth in the order below that can be determined by Buyer as of the Benchmark Replacement Date:  
1.the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero) that has been selected, endorsed or recommended by the Federal Reserve for the applicable Unadjusted Alternate Rate Index; or if the applicable Unadjusted Alternate Rate Index is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment, or 
2.the spread adjustment (which may be a positive or negative value or zero) that has been selected by Buyer giving due consideration to any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then current Benchmark with the applicable Unadjusted Alternate Rate Index for U.S. dollar denominated securitization transactions at such time,
provided that, in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such Alternate Rate Spread Adjustment from time to time as selected by Buyer in its reasonable discretion.

“Alternate Rate Transaction” shall mean any Transaction at such time as Price Differential thereon accretes at a rate based upon the Alternate Rate.    
“Applicable Spread” shall mean, with respect to a Transaction involving a Purchased Asset:
    -2-

EXHIBIT 10.3

(i)with respect to any Purchased Asset and any Pricing Rate Period, so long as no Event of Default shall have occurred and be continuing, the incremental per annum rate (expressed as a number of “basis points”, each basis point being equivalent to 1/100 of 1%) as determined by Buyer in its sole discretion within the range set forth in Schedule I attached to the Fee Letter, or such other rate as may be agreed upon between Seller and Buyer and, in each case, as set forth in the related Confirmation for such Purchased Asset; and
(ii)after the occurrence and during the continuance of an Event of Default, the applicable incremental per annum rate described in clause (i) of this definition, plus 500 basis points (5.0%).
“Benchmark” shall mean (i) initially, the Term SOFR Reference Rate with a tenor of one month and (ii), on and after the conversion to an Alternate Rate Index pursuant to Article 3 hereof, the Alternate Rate Index determined in accordance with the terms hereto.
“Benchmark Floor” shall mean, with respect to any Transaction, the greater of (a) zero and (b) such other amount, if any, as may be specified in the Confirmation related to such Transaction.
“Benchmark Replacement Date” shall mean:
(1)in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the relevant Benchmark permanently or indefinitely ceases to provide such Benchmark, or
(2)in the case of clause (3) of the definition of “Benchmark Transition Event,” the first date on which the Benchmark has been determined and announced by the regulatory supervisor for the administrator of the Benchmark to be non-representative; provided, that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (3) even if the Benchmark continues to be provided on such date; or
(3)in the case of clause (4) of the definition of “Benchmark Transition Event”, such date of determination by Buyer; or
(4)in the case of clause (5) of the definition of “Benchmark Transition Event”, the date of the Benchmark Unavailability Determination.
“Benchmark Transition Event” shall mean the occurrence of one or more of the following events with respect to the then current Benchmark:
(1)a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that the administrator has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;
(2)a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the 
    -3-

EXHIBIT 10.3

administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; 
(3)a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is not, or as of a specified future date will not be representative; 
(4)the determination by Buyer in its sole good faith discretion that use if the Benchmark by Buyer is prohibited or restricted by or in accordance with any Requirement of Law;
(5)a Benchmark Unavailability Period has occurred or exists with respect to such Benchmark, and Buyer determines in its sole and absolute discretion that such Benchmark shall no longer be used as the Benchmark under this Agreement (a “Benchmark Unavailability Determination”).
“Benchmark Unavailability Period” shall mean each (if any) Pricing Rate Period for which Buyer determines (which determination shall be conclusive and binding absent manifest error) that adequate and reasonable means do not exist for ascertaining the Pricing Rate for the applicable Pricing Rate Period (including, if the Benchmark is Term SOFR or Compounded SOFR, that Term SOFR or Compounded SOFR, as applicable, cannot be determined in accordance with the definition thereof).
“Compounded SOFR” shall mean the compounded average of SOFR for approximately a one-month period, with the rate, or methodology for this rate, and conventions for this rate (which, for example, may be calculated in advance or in arrears with a lookback and/or suspension period as a mechanism to determine the interest amount payable prior to the end of each Pricing Rate Period) being established by Buyer in accordance with:
1.the rate, or methodology for the rate, and conventions for the rate selected or recommended by the Federal Reserve for determining compounded SOFR; provided, that 
2.if, and to the extent that, Buyer determines that Compounded SOFR cannot be so determined in accordance with clause (1) above, then Compounded SOFR will mean the rate, or methodology for the rate, and conventions for the rate that have been selected by Buyer giving due consideration to any industry-accepted market practice for similar U.S. dollar denominated master repurchase or credit facilities at such time (as a result of amendment or as originally executed);
provided, further, that if Buyer decides that any such rate, methodology or convention determined in accordance with clause (1) or clause (2) is not administratively feasible for Buyer, then Compounded SOFR will be deemed unable to be determined for purposes of the definition of “Alternate Rate Index.”

“Early Opt-in Effective Date” shall mean with respect to any Early Opt-in Election, the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to Seller.
    -4-

EXHIBIT 10.3

“Early Opt-in Election” shall mean the election by Buyer (at any time after the date hereof, in its sole and absolute discretion) to trigger a fallback from the then-current Benchmark and the provision by Buyer of written notice of such election to Seller.
“Federal Reserve” shall mean the Board of Governors of the Federal Reserve System and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System and/or the Federal Reserve Bank of New York or any successor thereto.
“Federal Reserve Bank of New York’s Website” shall mean the website of the Federal Reserve Bank of New York at https://www.newyorkfed.org, or any successor source.
“ISDA Definitions” shall mean the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.
“ISDA Fallback Adjustment” shall mean the spread adjustment, (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the then-current Benchmark.
“ISDA Fallback Rate” shall mean the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the then-current Benchmark, excluding the applicable ISDA Fallback Adjustment.
“One-Month LIBOR Pricing Rate” shall mean, with respect to each Pricing Rate Period, the per annum rate equal to (i) the greater of One-Month LIBOR and the applicable Benchmark Floor plus (ii) the Applicable Spread.
“One-Month LIBOR Transaction” shall mean, with respect to any Pricing Rate Period, any Transaction with respect to which the Pricing Rate is determined for such Pricing Rate Period with reference to One-Month LIBOR. 
“One-Month LIBOR Transition Date” shall mean a date that shall occur with respect to specified One-Month LIBOR Transactions upon the earliest to occur of the following: 
(a) with respect to all One-Month LIBOR Transactions, the date that One-Month LIBOR has either (i) permanently or indefinitely ceased to     be provided by the administrator of One-Month LIBOR; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide One-Month LIBOR or (ii) been announced by the regulatory supervisor of the administrator of One-Month LIBOR pursuant to public statement or publication of information to be no longer representative;
(b) for any Transaction with respect to which Seller is required to fund any Future Funding Obligation to the applicable Mortgagor in respect of the related Purchased Asset and Buyer participates in such funding under the Agreement, the “One-Month LIBOR Transition Date” for such Transaction shall mean the first date after the Second Amendment Date as of which Buyer has agreed to so fund any additional Purchase Price on such Purchased Asset in respect of such Future Funding Obligations;
    -5-

EXHIBIT 10.3

(c) for all Transactions, the first date after the Second Amendment Date on which the Termination Date has been extended pursuant to Section 3(f) hereto;
(d) the Early Opt-in Effective Date; and
(e) such other date as Buyer and Seller may mutually agree.
“Periodic Term SOFR Determination Day” shall mean the day that is two (2) U.S. Government Securities Business Days prior to the first day of an applicable Pricing Rate Period.
“Rate Conversion Effective Date” shall mean the date on which a One-Month LIBOR Transaction is converted to a Term SOFR Transaction or a Term SOFR Transaction is converted to an Alternate Rate Transaction.
“Second Amendment Date” shall mean March 9, 2022.
“SOFR” shall mean a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.
“SOFR Administrator” shall mean the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).
“SOFR Administrator’s Website” shall mean the Federal Reserve Bank of New York’s Website for the secured overnight financing rate identified as such by the SOFR Administrator from time to time. 
“Term SOFR” shall mean, with respect to each Pricing Rate Period, the Term SOFR Reference Rate for a one-month tenor on the relevant Periodic Term SOFR Determination Day; provided, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day, the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day; provided, further, Term SOFR for any Transaction shall in no event be less than the Benchmark Floor applicable to such Transaction.
“Term SOFR Adjustment” shall mean 0.11448% per annum.
“Term SOFR Administrator” shall mean CME Group Benchmark Administration Limited (CBA), or a successor administrator of the Term SOFR Reference Rate selected by Buyer in its reasonable discretion.  
“Term SOFR Pricing Rate” shall mean, with respect to each Pricing Rate Period, the per annum rate of interest equal to the sum of (i) Term SOFR and (ii) the Pricing Spread.
“Term SOFR Reference Rate” shall mean the forward-looking term rate based on SOFR.
“Term SOFR Transaction” shall mean a Transaction bearing interest at Term SOFR.
    -6-

EXHIBIT 10.3

“Unadjusted Alternate Rate Index” shall mean the Alternate Rate Index excluding the Alternate Rate Spread Adjustment.
“U.S. Government Securities Business Day” shall mean any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association, or any successor thereto, recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States Government securities.

(b) Section 6 of the Repurchase Agreement is hereby amended as follows:

(i)    Section 6(d) is hereby deleted in its entirety and replaced with the following:
    “[Reserved.]”
(ii) The following is inserted as a new sub-section (f) following sub-section (e) thereunder:
“(f)      Use of SOFR and legacy One-Month LIBOR Transactions.
Notwithstanding the foregoing or anything to the contrary contained herein:
(i) for each Transaction:
        (A)    for which the Purchase Date is on or after January 1, 2022, such Transaction shall be a Term SOFR Transaction and shall bear interest at an annual rate equal to the Term SOFR Pricing Rate applicable to such Transaction;
        (B)     for which the Purchase Date is prior to January 1, 2022 and is a One-Month LIBOR Transaction, each such One-Month LIBOR Transaction shall, after the One-Month LIBOR Transition Date occurs with respect to such Transaction, be converted to bear interest at an annual rate equal to the sum of (i) the Term SOFR Pricing Rate applicable to such Transaction utilizing the Pricing Spread in place as of the One-Month LIBOR Transition Date, plus (ii) the Term SOFR Adjustment.  
(2)Notwithstanding anything to the contrary herein or in any other Transaction Document, with respect to any One-Month LIBOR Transaction, if the One-Month LIBOR Transition Date has occurred prior to the Pricing Rate Determination Date in respect of any setting of One-Month LIBOR for any Pricing Rate Period of such One-Month LIBOR Transaction, then each One-Month LIBOR Transaction hereunder shall be permanently converted to being a Term SOFR Transaction as of the first day of such Pricing Rate Period without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document; provided, that except as otherwise expressly specified in any Confirmation (or amended and restated Confirmation) entered into by Buyer and Seller following the First Amendment Effective Date, from and after the Rate Conversion Effective Date, the Applicable Spread (as in effect immediately prior to the effectiveness of such Rate Conversion) for each such LIBOR Transaction converted to a Term SOFR Transaction shall be increased 
    -7-

EXHIBIT 10.3

by an amount equal to the Term SOFR Adjustment without any amendment to, or further action or consent of any other party to, this Agreement or any other Repurchase Document.
(3)In the event that Buyer shall have determined in its sole good faith discretion (which determination shall be conclusive and binding upon Seller absent manifest error) that with respect to any Transaction, one or more Benchmark Transition Events shall have occurred, then Buyer shall determine the corresponding Benchmark Replacement Date and Buyer shall, at any time after the Benchmark Replacement Date, have the sole and exclusive right at its election, to be exercised in its sole but good faith discretion, to convert any Transaction from a Term SOFR Transaction to an Alternate Rate Transaction based on the applicable Benchmark Replacement selected by Buyer, or if any Transaction had previously been converted to an Alternate Rate Transaction based upon a Benchmark Replacement, to an Alternate Rate Transaction based on the applicable alternative Benchmark Replacement selected by Buyer; provided in each case that such conversion shall be subject to satisfaction of the following conditions: (i) at the time of conversion, such applicable Benchmark Replacement is a floating rate index that is then commonly used by Buyer and/or other market participants as an alternative to then-current Benchmark as determined by Buyer in its sole but good faith discretion, and (ii) such applicable Benchmark Replacement is administratively and commercially reasonable for Buyer to implement, as determined by Buyer in its sole but good faith discretion.  In the event the foregoing conditions shall be satisfied and the applicable Transaction is converted to an Alternate Rate Transaction as provided above, the Transaction shall bear interest at the applicable Alternate Pricing Rate, effective as of the first day of the next succeeding Pricing Rate Period which is at least five (5) Business Days after notice has been provided to Seller hereunder.  Buyer will promptly notify Seller of the conversion of any Transaction to an Alternate Rate Transaction.  Notwithstanding any provision of this Agreement to the contrary, in no event shall Seller have the right to convert (x) a Term SOFR Transaction to an Alternate Rate Transaction or (y) an Alternate Rate Transaction accruing interest at a rate based upon the then-current Benchmark Replacement, to an alternative Alternate Rate Transaction accruing interest at a rate based upon any alternative Benchmark Replacement.
(4)In connection with the use or administration of any Benchmark Replacement, as applicable, Buyer shall have the right to make Alternate Rate Index Conforming Changes from time to time as Buyer determines in its sole but good faith discretion (and in the case of Benchmark Replacement, as necessary in connection with such Rate Conversion and/or the implementation thereof), and notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Alternate Rate Index Conforming Changes as provided in the definition thereof will become effective without any further action or consent of Seller. Buyer will promptly notify Seller of (i) the effectiveness of any such Alternate Rate Index Conforming Changes, (ii) the implementation of any Benchmark Replacement, and (iii) the effectiveness of any Alternate Rate Index Conforming Changes. Any such determination, decision or election that 
    -8-

EXHIBIT 10.3

may be made by Buyer, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its sole discretion and without consent from Seller or any other party to this Agreement or any other Transaction Document. 
(5)Seller hereby agrees to promptly pay to Buyer, upon demand, any additional amounts necessary to compensate Buyer for any actual out of pocket costs (not to include any lost profit or opportunity) incurred by Buyer in making any conversion in accordance with this Agreement, including without limitation, any interest or fees payable by Buyer to Buyers of funds obtained by it in order to make or maintain any Transaction hereunder.  If any such conversion of a Transaction occurs on a day which is not the last day of the then current Pricing Rate Period with respect to such Transaction, Seller shall pay to Buyer such amounts, if any, as may be required pursuant to the terms hereof.
Section a.Conditions Precedent.  This Amendment shall become effective on the date on which this Amendment is executed and delivered by a duly authorized officer of each of the Seller, Guarantor and Buyer.
Section b.Seller’s Representations and Warranties.  On and as of the date first above written, Seller hereby represents and warrants to Buyer that (a) Seller has taken all necessary action to authorize the execution, delivery and performance of this Amendment and (b) this Amendment has been duly executed and delivered by or on behalf of Seller and constitutes the legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles.
Section c.Acknowledgments of Guarantor.  In connection with this Amendment, Guarantor hereby acknowledges (a) the execution and delivery of this Amendment by Seller and agrees that Guarantor continues to be bound by the Guarantee Agreement to the extent of the Obligations (as defined therein), as such obligations may be increased and otherwise modified in connection with the terms of this Amendment, and (b) that, as of the date hereof, Buyer is in compliance with its undertakings and obligations under the Repurchase Agreement and each of the other Transaction Documents.
Section d.Limited Effect.  Except as expressly amended and modified by this Amendment, the Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms; provided, however, that upon the Second Amendment Effective Date, all references in the Repurchase Agreement to the “Transaction Documents” shall be deemed to include, in any event, this Amendment.  Each reference to Repurchase Agreement in any of the Transaction Documents shall be deemed to be a reference to the Repurchase Agreement as amended hereby.
Section e.Counterparts.  This Amendment may be executed in counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment in Portable Document Format (.PDF) or by facsimile transmission shall be effective as delivery of a manually executed original counterpart thereof.
    -9-

EXHIBIT 10.3

Section f.Costs and Expenses.  Seller shall pay Buyer’s reasonable actual out of pocket costs and expenses, including reasonable fees and expenses of accountants, attorneys and advisors, incurred in connection with the preparation, negotiation, execution and consummation of this Amendment.  
Section g.No Novation, Effect of Agreement.  Guarantor, Seller and Buyer have entered into this Amendment solely to amend the terms of the Repurchase Agreement and do not intend this Amendment or the transactions contemplated hereby to be, and this Amendment and the transactions contemplated hereby shall not be construed to be, a novation of any of the obligations owing by Seller or Guarantor (the “Repurchase Parties”) under or in connection with the Repurchase Agreement or any of the other document executed in connection therewith to which any Repurchase Party is a party (the “Repurchase Documents”).  It is the intention of each of the parties hereto that (i) the perfection and priority of all security interests securing the payment of the obligations of the Repurchase Parties under the Repurchase Agreement and the other Repurchase Documents are preserved, (ii) the liens and security interests granted under the Repurchase Agreement continue in full force and effect, and (iii) any reference to the Repurchase Agreement in any such Repurchase Document shall be deemed to also reference this Amendment.
Section h.Consent to Jurisdiction; Waiver of Jury Trial.
(a)    Each party irrevocably and unconditionally (i) submits to the non-exclusive jurisdiction of any United States Federal or New York State court sitting in Manhattan, and any appellate court from any such court, solely for the purpose of any suit, action or proceeding brought to enforce its obligations under this Amendment or relating in any way to this Amendment or any Transaction under the Repurchase Agreement and (ii) waives, to the fullest extent each may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding and irrevocably consent to the service of any summons and complaint and any other process by the mailing of copies of such process to them at their respective address specified in the Repurchase Agreement.  The parties hereby agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Section 10 shall affect the right of Buyer to serve legal process in any other manner permitted by law or affect the right of Buyer to bring any action or proceeding against Seller or its property in the courts of other jurisdictions.
(i)EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY INSTRUMENT OR DOCUMENT DELIVERED HEREUNDER OR THEREUNDER.
Section i.GOVERNING LAW.  THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AMENDMENT, THE RELATIONSHIP OF THE PARTIES TO THIS AMENDMENT, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES TO THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAW RULES THEREOF.  THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AMENDMENT.
[SIGNATURES FOLLOW]
    -10-

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.
BUYER:
UBS AG, BY AND THROUGH ITS NEW YORK BRANCH OFFICE AT 1285 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK, a Delaware corporation
By:     /s/ Andrew Lisa_____________________
  Name: Andrew Lisa
  Title:  Director
By:     /s/ Michael Zoccoli___________________
  Name: Michael Zoccoli
  Title:  Executive Director

Amendment No. 2 to Master Repurchase Agreement 

SELLER:
RMTG LENDER LLC, a Delaware limited liability company
By: /s/ G. Douglas Lanois________________
 Name:  G. Douglas Lanois
 Title:  Chief Financial Officer

Amendment No. 2 to Master Repurchase Agreement

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