Document:

EXHIBIT 10.5.5

 

CUSTODY AMENDMENT

FOR

SECOND CHARTER REINSURANCE COMPANY

MORTGAGE PARTNERSHIP FINANCE®

INVESTMENT AND SERVICES AGREEMENT

[Affiliated Third Party Custodian]

 

THIS CUSTODY AMENDMENT
(this “Custody Amendment”) for SECOND CHARTER REINSURANCE COMPANY to
INVESTMENT AND SERVICES AGREEMENT is made as of the 31st day of December, 2001,
between the FEDERAL HOME LOAN BANK OF CHICAGO (the “MPF® Provider”)
and the FEDERAL HOME LOAN BANK OF BOSTON (the “Boston Bank”).

 

RECITALS:

 

WHEREAS, the Boston Bank and
the MPF Provider have previously entered into that certain MORTGAGE PARTNERSHIP
FINANCE Investment and Services Agreement dated as of April 20, 2000,
amended by First and Second Amendments dated September 7, 2000 and May 18,
2001, and a Custody Amendment dated November 14, 2001 (together, the “I&S
Agreement”) pursuant to which the parties agreed, among other things, to
make the MORTGAGE PARTNERSHIP FINANCE (“MPF”) Program available to
members of the Boston Bank; and

 

WHEREAS, the MPF Provider
is the Custodian for the Boston Bank under the terms of the I&S Agreement
and has engaged a vendor to perform its duties thereunder, which vendor is
named as the MPF Program Custodian (“MPF Custodian”) in the Guides; and

 

WHEREAS, Second Charter
Reinsurance Company (the “Subject PFI”), a member of the Boston Bank and
a participating financial institution in the MPF Program, has requested the
Boston Bank to permit Treasury Bank, N.A. (the “Custodian”) to serve as
custodian for the Collateral Files for those Mortgages (the “Collateral
Files”) which the Subject PFI will deliver to or service for the Boston
Bank (the “Subject Mortgages”) pursuant to the terms of the MPF
Participating Financial Institution Agreement dated July 27, 2000 between
the Subject PFI and the Boston Bank, as amended (the “Subject PFI Agreement”),
and the Boston Bank is willing to grant such permission (the “Consent”)
if approved by the MPF Provider; and

 

WHEREAS, the MPF Provider
is (i) willing to approve the Subject PFI’s request, and (ii) willing
to engage the Custodian as a vendor pursuant to a Custody Agreement (the “Custody
Agreement”) to perform the MPF Provider’s obligations as Custodian for the
Collateral Files, subject to the terms and conditions of this Custody
Amendment. Any capitalized terms used but not defined in this Custody Amendment
shall have the meaning assigned to them in the I&S Agreement or the Subject
PFI Agreement, as applicable.

 

NOW THEREFORE,  in consideration of the foregoing recitals
and the covenants contained herein, the parties here agree as follows:

 

1.                                       The MPF Provider shall approve the
Subject PFI’s request for Treasury Bank, N.A. to serve as Custodian for the
Collateral Files provided that the Boston Bank and the Subject PFI amend the
Subject PFI Agreement to provide that a breach by the Custodian of the Custody
Agreement shall constitute a breach by the Subject PFI of the Subject PFI
Agreement, and that the obligations of the Custodian under the Custody
Agreement shall be secured in the same manner as all PFI obligations arising
under the Subject PFI Agreement.

 

2.                                       If
the Boston Bank determines for any reason that the Custodian should not
continue to serve as an approved MPF custodian, the Boston Bank may request
that the Custodian’s custodial duties be terminated, but in any event will
provide the MPF Provider with relevant information.  The MPF Provider will terminate the Custody
Agreement upon review of such information. 
In the event the Custody Agreement is terminated by the MPF Provider
solely because of the request of the Boston Bank, the Boston Bank will
reimburse the MPF Provider for any actual out-of-pocket costs which the MPF
Provider may incur as a result of such termination for which the MPF Provider
is not made whole by the Custodian.

 

3.                                       The
Boston Bank agrees that, should a custody default as determined by the MPF
Provider occur with respect to the Subject Mortgages due to a breach of the
Custodian’s obligations under the Custody Agreement, the Boston Bank shall
first enforce the terms of the Subject PFI Agreement with respect to such
breach of the Custody Agreement. The Boston Bank shall pursue such enforcement
efforts in the same manner and with the same diligence

 

 

as it would exercise for
any obligation of the Subject PFI to the Boston Bank.  Although the Boston Bank is not required to
exhaust all available remedies, its enforcement effort should include the most
appropriate of the full range of remedies available under the Subject PFI
Agreement which include, without limitation, realizing upon collateral pledged
by the Subject PFI. The Boston Bank shall look to the MPF Provider for
indemnification with respect to a default by the Custodian, and the MPF
Provider shall remain liable under the I&S Agreement (as amended by this
Custody Agreement) for such indemnification, only after the Boston Bank is
unable, with reasonable diligence, to be made whole by the Subject PFI under
the terms of the Subject PFI Agreement and the Subject PFI’s Advances Agreement
referenced therein.

 

4.                                       If
the Custody Agreement is terminated or the Custodian is removed for any reason,
upon the transfer of all Collateral Files to a successor custodian to the MPF
Provider’s satisfaction, (i) the terms and conditions set forth this
Custody Amendment, including the enforcement of the Subject PFI Agreement upon
a custody default as provided in Paragraph 3 hereof, shall automatically
terminate and shall cease to apply to any party hereto or to any custody
defaults by any successor custodian; and (ii) the indemnification
provisions of the I&S Agreement shall continue to be in full force and
effect and unamended as if this Custody Amendment had never been executed by
the parties.

 

5.                                       The
MPF Provider agrees that it will not object to the review and inspection by the
Boston Bank of the Collateral Files and the Custodian’s custodial files or
custodial operations with respect to the Mortgages.

 

6.                                       Except
for the terms of this Custody Amendment, the I&S Agreement remains
unmodified and in full force and effect.

 

IN WITNESS WHEREOF, the
parties have caused this Custody Amendment to be executed by their duly
authorized officers as of the date first above written.

 

	
  FEDERAL HOME LOAN BANK

  OF CHICAGO

  	
  FEDERAL HOME LOAN BANK

  OF BOSTON

  
	
   

  	
   

  
	
  By:

  	
  /s/ Thomas D. Sheehan

  	
   

  	
  By:

  	
  /s/ Paul T. Pouliot

  	
   

  
	
   

  	
  Thomas D. Sheehan

  	
   

  
	
   

  	
  Senior Vice President

  	
  Name:

  	
  Paul T. Pouliot

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  First Vice President

  	
   

  
									

 

“MORTGAGE PARTNERSHIP
FINANCE” and “MPF” are registered trademarks of the Federal Home Loan Bank of
Chicago.

 

2Exhibit 4.17

 

VOID AFTER 5:00 P.M., EASTERN
TIME,

ON               
(3 years from date of funding)

 

 

THIS WARRANT AND THE SHARES OF COMMON STOCK
UNDERLYING THIS WARRANT (COLLECTIVELY, THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER SUCH ACT OR IN A TRANSACTION THAT, IN THE OPINION OF COUNSEL
TO THE ISSUER, QUALIFIES AS AN EXEMPT TRANSACTION UNDER SUCH ACT AND THE RULES
AND REGULATIONS PROMULGATED THEREUNDER.

 

DIVERSIFIED CORPORATE RESOURCES,
INC.

 

COMMON STOCK PURCHASE WARRANT

 

	
  No.

  	
  Warrant Shares

  

 

DIVERSIFIED
CORPORATE RESOURCES, INC., a Texas corporation (the “Company”), hereby certifies that                
(the “Initial Holder”), is entitled, subject
to the terms set forth below, to purchase from the Company,         
shares (the “Warrant Shares”) of fully paid and
non-assessable Common Stock of the Company, par value $.01 per share, at a
purchase price of $      ($.02 above the closing price
on day of funding)  per Warrant Share,
subject to adjustment from time to time pursuant to Section 3 hereof (the “Purchase Price”). The term “Common Stock” means, unless the
context otherwise requires, the Company’s Common Stock, par value $.01 per
share, or other securities or property at the time deliverable upon the
exercise of this Warrant.

 

1.             Exercise.

 

1.1           Timing of Exercise. This
Warrant shall be exercisable in whole or in part from time to time commencing as
of the date hereof and expiring at 5:00 P.M., Central time, on           
(the “Expiration Date”), and may not be
exercised thereafter.

 

1.2           Manner of Exercise. The
purchase rights evidenced by this Warrant shall be exercised by the Initial
Holder or any person permitted by Section 6.1 herein (collectively, the “Holder”), by surrendering this Warrant, with the Notice of
Exercise in the form of Exhibit A hereto duly executed by the Holder, to
the Company at its principal office (or such other office as may be designated
by the Company to the Holder), accompanied by payment (in cash, by wire
transfer or by certified or official bank check or checks) of the Purchase
Price.

 

1.3           Partial Exercise. This Warrant
may be exercised for less than the full number of Warrant Shares, in which case
the number of shares of Common Stock receivable upon the exercise of this
Warrant as a whole, and the sum payable upon the exercise of this Warrant as a
whole, shall be proportionately reduced. Upon any such partial exercise, the
Company at its expense will forthwith issue to the Holder a new Warrant or
Warrants of like tenor calling for the number of Warrant Shares as to which
rights have not been exercised, such Warrant or Warrants to be issued in the
name of the Holder.

 

2.             Delivery of Stock Certificates
Upon Exercise. As soon as practicable after the exercise of this Warrant,
and in any event within ten (10) days thereafter, the Company, at its expense,
will cause to be issued in the name of and delivered to the Holder a certificate
or certificates for the number of fully paid and non-assessable shares of
Common Stock to which the Holder shall be entitled upon such exercise. Any
shares of Common Stock as to which this Warrant is exercised shall be deemed
issued on and as of the date of such exercise, and the Holder shall thereupon
be deemed to be the owner of record of such shares.

 

3.             Adjustments to Warrant.

 

3.1           Change in Capitalization. In
case of any stock split, stock dividend or similar transaction which increases
or decreases the number of outstanding shares of Common Stock, appropriate
adjustment shall be made by

 

 

the Board of Directors of
the Company to the number of Warrant Shares, and the Purchase Price per Warrant
Share, of Common Stock which may be purchased under this Warrant.

 

3.2           Consolidation, Merger and Sale of
Assets. In the case of a merger, sale of assets or similar transaction
which results in a replacement of the Company’s shares of Common Stock with
stock of another corporation, the corporation formed by such consolidation or
the corporation into which the Company shall have been merged or the
corporation which shall have acquired such assets, as the case may be, shall
execute and deliver to the Holder a certificate stating that the Holder shall
have the right thereafter to exercise this Warrant in exchange for the kind and
amount of shares of stock or other securities or property receivable upon such
consolidation, merger, sale or transfer by a holder of the number of shares of
Common Stock into which this Warrant might have been converted immediately
prior to such consolidation, merger, sale or transfer, subject to adjustment as
provided hereinabove, provided that the consideration to the stockholders of
the Company on such transactions consists in whole or in part of securities of
the other corporation. The provisions of this Section shall similarly apply to
successive consolidations, mergers, sales or transfers.

 

3.3           Exchanges and Distributions With
Respect to Common Stock. If the Company shall exchange for its Common Stock
or distribute with respect to its Common Stock other securities issued by it,
the Company shall give notice thereof to the Holder, and the Holder shall have
the right thereafter (until the expiration of this Warrant) to exercise this Warrant
for the kind and amount of shares of stock and other securities retained or
received by a holder of the number of shares of Common Stock of the Company
into which this Warrant might have been converted immediately prior to such
exchange or distribution, subject to adjustment as provided hereinabove.

 

3.4           Officer’s Certificate.
Whenever the Purchase Price per Warrant Share or the number of shares of Common
Stock subject to this Warrant is adjusted, the Company shall promptly mail to
the Holder of this Warrant a notice of adjustment, which notice shall include a
brief statement of the facts requiring the adjustment and the manner of
computing it and shall be certified by the chief financial officer of the
Company. The determination of the adjustment shall be made by the Company in
its sole discretion and shall be final and binding upon the Holder.

 

4.             Shares to Be Fully Paid;
Reservation of Capital Stock Issuable Upon Exercise of Warrants. The
Company covenants and agrees that any shares of Common Stock issued hereunder
will, upon issuance, be fully paid and non-assessable and free from all taxes,
liens and charges with respect to the issuance thereof. The Company shall at
all times reserve and keep available out of its authorized but unissued capital
stock, solely for the issuance and delivery upon the exercise of this Warrant,
such number of its duly authorized shares of Common Stock as from time to time
shall be issuable upon the exercise of this Warrant.

 

5.             Fractional Shares. The
Company shall not issue fractions of shares of Common Stock upon exercise of
this Warrant or scrip in lieu thereof. If any fraction of a share of Common
Stock would, except for the provisions of this Section 5, be issuable upon exercise of this
Warrant, then the number of shares of Common Stock to be issued shall be
rounded down to the nearest whole share.

 

6.             Transfer Restrictions

 

6.1           Transfer.
A Holder, including the Initial Holder or any subsequent Holder, may transfer
this Warrant only by delivering to the Company the Assignment Form in the form
of Exhibit B hereto.

 

6.2           Securities Laws. The Holder of
this Warrant, by accepting delivery of the same, hereby:

 

(a)           represents
and warrants that the Holder is an “accredited investor”, as such term is
defined by Rule 501(a), promulgated under the Securities Act of 1933, as
amended;

 

(b)           acknowledges
neither this Warrant, nor any shares of Common Stock issued to Holder pursuant
to the exercise of this Warrant, has been registered under the Securities Act
of 1933, as amended (the “Securities Act”),
at the time issuance;

 

(c)           represents
and warrants that this Warrant is being acquired by Holder for investment and
not with a view to the sale or other distribution thereof within the meaning of
the Securities Act, and Holder has no present intention of selling or otherwise
disposing of all or any portion of this Warrant or the rights granted hereby.

 

2

 

(d)           acknowledges
that this Warrant and any Warrant Shares issued hereby constitute “restricted
securities” under the Securities Act, and accordingly may not be offered, sold,
or otherwise transferred unless and until registered under the Securities Act
or, in the opinion of counsel or by other evidence in form and substance
reasonably satisfactory to the Company, such offer, sale, or transfer, is in
compliance therewith;

 

(e)           agrees
that, upon the exercise of this Warrant, it shall make the customary
representations and warranties as may be requested by counsel to the Company in
order for the Company to properly rely upon Section 4(2) of the Securities Act
regarding exemption from registration thereunder, and, in connection with such
exemption, that any certificates representing shares of Common Stock issued
pursuant to this Warrant would reflect an appropriate legend regarding
restrictions upon transferability; and

 

(f)            agrees
to indemnify the Company, and hold it harmless from and against, any and all
losses, expenses (including attorneys’ fee), costs and damages arising form or
relating to any violation of applicable state securities or “blue sky” laws in
connection with the issuance, sale, delivery or exercise of this Warrant and
the issuance, sale and delivery of shares of Common Stock upon any exercise of
this Warrant.

 

7.             Replacement of Warrant.  Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of
an indemnity agreement, and if requested by the Board of Directors, a bond in
an amount reasonably satisfactory to it, or (in the case of mutilation) upon
surrender and cancellation hereof, the Company will issue in lieu thereof a new
Warrant of like tenor.

 

8.             Rights as a Warrant Holder.  The Holder shall not, by virtue hereof, be
entitled to any rights of a stockholder in the Company, either at law or equity
except with respect to certificates representing Warrant Shares issued upon
exercise of this Warrant. The rights of the Holder are limited to those expressed
in this Warrant and are not enforceable against the Company except to the
extent set forth herein. Prior to due presentment for transfer of this Warrant,
the Company may deem and treat the Holder as the absolute owner of this Warrant
for purposes of any exercise hereof and for all other purposes and such right
of the Company shall not be affected by any notice to the contrary.

 

9.             Subdivision of Rights.  This Warrant (as well as any new warrant
issued pursuant to the provisions of this Section) is exchangeable upon the
surrender hereof by the Holder at the principal office of the Company for any
number of new warrants of like tenor and date representing in the aggregate the
right to subscribe for and purchase the Warrant Shares.

 

10.           Sending of Notices.  All notices and other communications with
respect to this Warrant shall be in writing and sent by express mail or courier
service or by personal delivery, if to the Holder, to the address set forth at
the end of this Warrant, and if to the Company, to 10670 N. Central Expressway –
Suite 600, Dallas, TX 75232, or to such other address as either party hereto
may duly give to the other.

 

11.           Headings. The headings in this
Warrant are for purposes of reference only and shall not limit or otherwise
affect the meaning of the terms hereof.

 

12.           Change, Waiver, Discharge or
Termination. This Warrant sets forth the entire agreement between the
Company and the Holder with respect to the matters herein. Neither this Warrant
nor any term hereof may be changed, waived, discharged or terminated orally,
but only by an instrument in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought. The
Company shall not amend any other Warrant issued as part of this Series to make
terms thereunder more favorable to the Holder thereof without offering the same
amended terms to the Holder hereof.

 

13.           Governing Law. This Warrant
shall be governed by, and construed in accordance with, the laws of the State
of Texas.  Venue for any action arising
hereunder shall be proper exclusively in Dallas County, Texas.

 

[Remainder of page
intentionally left blank.]

 

3

 

	
  Initial Holder:

  	
  The Company:

  
	
   

  	
   

  
	
   

  	
  DIVERSIFIED CORPORATE RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date of Issuance:

  	
   

  	
   

  
											

 

4

 

EXHIBIT A

 

NOTICE OF  EXERCISE

 

(To be executed by a Holder desiring to exercise the right to purchase
Warrant Shares pursuant to a Warrant.)

 

The undersigned Holder of a Warrant hereby:

 

(a)           Irrevocably elects to exercise the
Warrant to the extent of purchasing         
Warrant Shares;

 

(b)           Tenders herewith payment of the
Exercise Price for those Warrant Shares in full in the form of a wire transfer,
a certified or bank draft in the amount of $      ;

 

(c)           Requests that a certificate for such
Warrant Shares be issued in the name of the undersigned, or, if the name and
address of some other person is specified below, in the name of such other
person (the Company shall not be obligated to issue the Warrant Shares in a
name other then the Holder’s if, in the opinion of the Company’s counsel, such
issuance would not comply with the federal or state securities laws or the
terms of this Warrant):

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Name and address of person other than the
  undersigned

  
	
   in whose name Warrant Shares are to be
  registered.)

  

 

(d)           Requests, if the number of Warrant
Shares purchased are not all the Warrant Shares purchasable pursuant to the
unexercised portion of the Warrant, that a new Warrant of like tenor for the
remaining Warrant Shares purchasable pursuant to the Warrant be issued and
delivered to the undersigned at the address stated below.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
  (This signature must conform in all respects to the
  name of the Holder as specified on the face of the Warrant.)

  
	
   

  	
   

  	
   

  
	
  Social Security Number

  	
  Printed Name

  
	
  or Employer ID Number

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Stock Warrant No.:

  	
  Colpitt Line of Credit Note-Moore-9

  	
   

  	
   

  
							

 

5

 

EXHIBIT B

 

ASSIGNMENT FORM

 

FOR  VALUE  RECEIVED,
the undersigned,                                 ,
hereby sells, assigns and transfers unto:

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   (Please type or
  print in block letters)

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

 

the right to purchase                 
shares (the “Warrant Shares”) of Diversified
Corporate Resources, Inc. (the “Company”)
pursuant to the terms and conditions of the Warrant held by the
undersigned.  The undersigned hereby
authorizes and directs the Company (i) to issue and deliver to the above-named
assignee at the above address a new Warrant pursuant to which the rights to
purchase being assigned may be exercised, and (ii) if there are rights to
purchase Warrant Shares remaining pursuant to the undersigned’s Warrant after
the assignment contemplated herein, to issue and deliver to the undersigned at
the address stated below a new Warrant evidencing the right to purchase the
number of Warrant Shares remaining after issuance and delivery of the Warrant
to the above-named assignee. Except for the number of Warrant Shares
purchasable, the new Warrant to be issued and delivered by the Company is to
contain the same terms and conditions as the undersigned’s Warrant. This
Assignment is subject to receipt by the Company of such investment
representations by the assignee, as may be reasonably required under the
Securities Act of 1933, as amended. To complete the assignment contemplated by
this Assignment Form, the undersigned hereby irrevocably constitutes and
appoints                                    
as the undersigned’s attorney-in-fact to transfer the Warrant and the rights
thereunder on the books of the Company with full power of substitution for
these purposes.

 

 

	
  Dated:

  	
   

  	
   

  	
  Signature

  	
   

  
	
   

  	
  (This signature must
  conform in all respects to the name of the Holder as specified on the face of
  the Warrant.)

  
	
   

  	
   

  	
   

  
	
  Social Security Number or

  	
  Printed Name

  
	
  Employer ID Number

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
  Stock Warrant No.:

  	
  Colpitt Line of Credit Note-Moore-9

  	
   

  	
   

  
								

 

6

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