Document:

Exhibit 10.23

 

EscrowTech

 

Technology Escrow Agreement

 

	
Date of Agreement:
    	
March 7, 2008
    	
Escrow No. 12327 TD-SB
    
	
 
    	
 
    	
 
    
	
EscrowTech:
    	
EscrowTech International, Inc.
    	
Tel.:  (801) 852-8202
    
	
 
    	
C7 Data Center Building
    	
Fax:  (801) 852-8203
    
	
 
    	
333 South 520 West - Suite 230
    	
 
    
	
 
    	
Lindon, UT 84042
    	
 
    
	
 
    	
 
    	
 
    
	
Owner:
    	
Cyoptics, Inc.
    	
Tel.:  484-397-2705
    
	
 
    	
9999   Hamilton Boulevard
    	
Fax:  484-397-2014
    
	
 
    	
Breinigsville,   Pennsylvania 18031
    	
Contact: Ed J. Coringrato
    
	
 
    	
 
    	
e-mail:
    
	
 
    	
 
    	
ccoringrato@cyoptics.com
    
	
 
    	
 
    	
 
    
	
Beneficiary;
    	
Finisar Corporation
    	
Tel.:  (408) 542-3853
    
	
 
    	
1389   Moffett Park Drive
    	
Fax:  (408)541-6138
    
	
 
    	
Sunnyvale,   California 94089
    	
Contact: Gabe   Kralik
    
	
 
    	
 
    	
e-mail:
    
	
 
    	
 
    	
gabe.kralik@finisar.com
    

 

1. Establishment of the Escrow.  By this Agreement, Owner establishes an escrow of Deposit Materials (the “Escrow”) for the Beneficiary.

 

2. Deposit Materials.  “Deposit Materials” are the materials and other subject matter which Owner deposits with EscrowTech for the Escrow. At a minimum, Owner is responsible for depositing with EscrowTech the Deposit Materials identified in Exhibit A. Owner shall deposit the “Deposit Materials” (including “Updates”) into the Escrow by delivering them to EscrowTech. Owner warrants that it has the right to provide the Deposit Materials to EscrowTech for the purposes of this Agreement and shall indemnify EscrowTech against, and hold it harmless from, any claim to the contrary by a third party.

 

3.  Encryption and Reproduction. Owner warrants that no Deposit Materials will be encrypted or password protected and that all Deposit Materials will be in a readable and useable form (for purposes of the Permitted Use - see Section 12) and will be readily reproducible by EscrowTech for copying as needed under this Agreement (see, e.g., Section

 

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11). Exception: If Deposit Materials are transmitted electronically to EscrowTech via FTP or other electronic transmission method accepted by EscrowTech, then such Deposit Materials may be in an encrypted format that is acceptable to EscrowTech and that can be decrypted by EscrowTech and stored in an unencrypted format on physical media (e.g., a CD ROM). It is Owner’s responsibility to provide any decryption tools/keys, passwords, and information needed for decryption. It is not EscrowTech’s responsibility to discover if any of the Deposit Materials are encrypted or password protected or to provide de-encryption tools/keys, passwords or information needed for decryption.

 

4.           Updates. Owner shall update the Escrow by delivering to EscrowTech Updated Deposit Materials (“Updates”) as described in Exhibit A. Updates shall be part of the “Deposit Materials.”

 

5.           Deposit Procedure.  Deposit Materials shall be delivered by Owner to EscrowTech in accordance with EscrowTech’s then-current deposit procedures. Duplicate copies (i.e., two sets) of all Deposit Materials in reliable storage media should be delivered by Owner, but EscrowTech is not responsible if Owner fails to comply with this.

 

(a)          Deposit Inventory Form.  Owner will submit with the Deposit Materials a completed Deposit Inventory Form. Such Deposit Inventory Form shall be a representation by Owner to Beneficiary and EscrowTech that the Deposit Materials conform to the descriptions and identifications in the Deposit Inventory Form.

 

(b)         Confirmation.  To confirm receipt of the Deposit Materials, EscrowTech will mail or otherwise deliver a copy of the Deposit Inventory Form to Owner and Beneficiary.

 

(c)          Deficiency.  If Beneficiary believes that the Deposit Materials, as identified in the Deposit Inventory Form, are deficient (e.g., incomplete or inadequate) or if there is some other problem, then Beneficiary shall notify Owner and resolve the matter with Owner. It is Owner’s responsibility to deposit all required Deposit Materials.

 

(d)         Verification. EscrowTech is not responsible for verifying the completeness, accuracy, suitability, state, format, safety, quality, reproducibility, or content of the Deposit Materials. However, at the request of Beneficiary, EscrowTech may conduct technical verifications of Deposit Materials for Beneficiary in accordance with a Technical Verification Addendum. Beneficiary must pay EscrowTech’s then-current fees plus expenses for the technical verifications.

 

6.           Replacement of Obsolete Deposit Materials. Owner and Beneficiary may jointly identify for EscrowTech any Deposit Materials which become obsolete, outdated or redundant and instruct EscrowTech to destroy or return the identified Deposit Materials. Such identification shall be made in writing and must be consistent with the labeling and identification used by Owner when the Deposit Materials were deposited with EscrowTech or be otherwise understandable to EscrowTech. The “Deposit Materials” shall cease to include any destroyed or returned Deposit Materials.

 

7.           Primary Agreement. Owner and Beneficiary have entered into one or more agreements identified in Exhibit A which relate to the Deposit Materials. Such agreement(s) is (are) referred to herein as the “Primary Agreement.” This Technology Escrow Agreement is intended by the Parties to be “supplementary” to the Primary Agreement within the meaning of Section 365(n) of the U.S. Bankruptcy Code (11 U.S.C. 365(n)). If this Agreement and/or the Primary Agreement is (are) rejected by Owner as a debtor in possession or a trustee or by any other person or entity under the U.S. Bankruptcy Code, then Beneficiary may elect to retain its rights as provided in Section 365(n). The Parties intend that no bankruptcy or bankruptcy proceeding, petition, law or regulation (and no other proceeding, petition, law or regulation of a similar nature in any state or foreign jurisdiction) will impede, delay or prevent the release of Deposit Materials to Beneficiary in accordance with the provisions of this Agreement, and Owner hereby conveys and

 

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licenses to EscrowTech such rights (including intellectual property rights) as are necessary to allow EscrowTech to lawfully make such release and perform this Agreement. This license is granted as of the date of this Agreement and shall predate any bankruptcy petition subsequent to such date.

 

8.           Embodiment of Intellectual Property. The Deposit Materials arc an “embodiment” of “intellectual property” as those terms are used in Section 365(n) of the U.S. Bankruptcy Code (11 U.S.C, 365(n)). The tangible Deposit Materials and any copies thereof made by EscrowTech in accordance with this Agreement are owned by EscrowTech, but such ownership docs not include ownership of any copyrights or other intellectual property in or to the Deposit Materials.

 

9.           Release of Deposit Materials - Request of Beneficiary. Beneficiary shall be entitled to receive the Deposit Materials if the Release Condition described in Exhibit B occurs. The following release procedure shall apply;

 

(a)          Notice to EscrowTech. Beneficiary shall give written notice to EscrowTech informing EscrowTech that the Release Condition has occurred, and shall request EscrowTech in writing to release the Deposit Materials to Beneficiary.

 

(b)         Notice to Owner. EscrowTech shall then promptly send written notice to Owner of Beneficiary’s notice and request for release. Such notice will be sent by a “next day” or “overnight” or “priority” or “express” commercial delivery service (e.g., Federal Express, UPS or U.S. Express Mail, etc.) or will he delivered personally.

 

(c)          Release and Waiting Period. Unless there is a timely dispute or objection as provided in Section 9 (d) below, EscrowTech shall release the Deposit Materials to Beneficiary promptly after expiration of the Waiting Period. The “Waiting Period” shall be two weeks, beginning on the date that the notice is sent by EscrowTech to Owner.

 

(d)         Dispute. If Owner disputes Beneficiary’s right to the Deposit Materials or otherwise objects to their release, then Owner must give written notice of such dispute or objection to EscrowTech prior to the conclusion of the Waiting Period. If EscrowTech receives such timely notice of dispute or objection, then EscrowTech will not release the Deposit Materials to Beneficiary until the dispute or objection is resolved by Owner and Beneficiary in accordance with Section 17 or by court order. Such resolution will determine whether or not Beneficiary is entitled to receive the Deposit Materials from EscrowTech. EscrowTech has no obligation to determine whether or not Beneficiary is entitled to the Deposit Materials.

 

(e)          Partial Release. If Owner believes that Beneficiary is entitled to a release of only a portion of the Deposit Materials, it is the responsibility of Owner to indicate this in a written notice to EscrowTech and to dearly identify in such notice the portion of the Deposit Materials that should be released to Beneficiary and what should not be released. This notice must be given promptly and must be received by EscrowTech within the above Waiting Period. If Beneficiary believes that it is entitled to more than said portion of the Deposit Materials, then this dispute shall be resolved in accordance with Section 17.

 

10.         Release of Deposit Materials - Owner’s Instruction. Upon receipt of notice and instruction from Owner and the receipt of the Release Fee, EscrowTech shall release the Deposit Materials to Beneficiary.

 

11.         Copies. Any Deposit Materials released to Beneficiary under this Agreement may be in the form of a copy of the Deposit Materials. EscrowTech may copy the Deposit Materials for the purposes of this Agreement. Such copies shall be considered Deposit Materials for the purposes of this Agreement.

 

12.         Use of Released Deposit Materials. Deposit Materials released to Beneficiary under this Agreement may only be used by Beneficiary as permitted in Exhibit B (“Permitted Use”). Owner hereby licenses Beneficiary to practice the Permitted Use. Although Beneficiary is not entitled to receive any Deposit Materials until after a release under

 

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this Agreement, this Permitted Use license is granted as of the date of this Agreement and shall predate any bankruptcy petition subsequent to such date. If this Agreement and/or the Primary Agreement are/is rejected by Owner as a debtor in possession or by a trustee or by any other person or entity under the U.S. Bankruptcy Code, then Beneficiary may elect to retain this Permitted Use license as part of the rights it may retain in accordance with Section 365(n) of the U.S. Bankruptcy Code. This shall not negate, prejudice or limit any other rights which Beneficiary may have.

 

13.         Fees. EscrowTech shall receive the following fees and payments;

 

(a)          Annual Fee. Beginning on the date of this Agreement and on each anniversary thereafter until termination of the Escrow, the Annual Fee shall he paid to EscrowTech in accordance with the Fee Schedule (Exhibit C). The Annual Fee is payable at the beginning of the contract year to which it is applicable.

 

(b)         Excess Update Fee. Four Updates to the Escrow per contract year are included at no extra charge. If more than four Updates are made in a contract year, the Excess Update Fee shall he paid to EscrowTech for each extra Update in accordance with the Fee Schedule (Exhibit C).

 

(c)          Release Fees. If Beneficiary requests a release of the Deposit Materials under Section 9, Beneficiary shall pay the Release Fee (Exhibit C) to EscrowTech prior to the release. If the Deposit Materials are released at the instruction of Owner under Section 10, Owner shall pay the Release Fee to EscrowTech prior to the release.

 

(d)         Excess Storage Charges. If the storage requirement for the Deposit Materials exceeds two cubic feet, then the Excess Storage Charge shall be paid to EscrowTech in accordance with the Fee Schedule (Exhibit C).

 

(e)          Increases. The fees set forth in Exhibit C are fixed for three years. Thereafter, fees are subject to reasonable increase by EscrowTech upon advance written notice. EscrowTech‘s then-current fees shall be payable.

 

(f)          Costs. Beneficiary shall pay EscrowTech for reasonable out of pocket costs incurred by EscrowTech in releasing, copying and delivering the Deposit Materials to Beneficiary if the release is requested by Beneficiary. Owner shall be responsible for such costs if the release is requested by Owner. Owner and Beneficiary shall pay EscrowTech for all other costs reasonably incurred by EscrowTech in connection with this Agreement or the Escrow. Costs are not included in the above fees and are payable in addition to the above fees.

 

14.         Termination of Escrow by Beneficiary. The Escrow and Beneficiary’s rights under this Agreement will terminate if any of the following occurs;

 

(a)          Beneficiary gives written notice of Escrow termination to EscrowTech.

 

(b)         The Primary Agreement terminates. In the event of such termination, Beneficiary and Owner will give prompt written notice thereof to EscrowTech. If such notice is given by Owner, but not the Beneficiary, then EscrowTech may send notice thereof to Beneficiary and if EscrowTech does not receive a written objection from Beneficiary within three weeks after the date of EscrowTech’s notice, then EscrowTech may terminate the Escrow.

 

(c)          Beneficiary breaches this Agreement and does not cure such breach within 30 days of written notice of such breach, and EscrowTech gives notice of termination.

 

(d)         The Escrow terminates.

 

EscrowTech will have no obligation or liability to Beneficiary after termination of the Escrow.

 

15.         Termination of Escrow by Owner or EscrowTech. Subject to Section 16, this Escrow may be terminated by either Owner or EscrowTech upon 90 days advance written notice of termination to the other Parties. Termination will not be effective until the end of the 90 day period (and any extension pursuant to Section 16). If a Release Condition occurs and EscrowTech is given written notice thereof under Section 9 (a) prior to the date of termination, then the Escrow will not terminate

 

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without the written consent of Beneficiary. Upon termination of the Escrow the following shall apply:

 

(a)          EscrowTech shall either return the Deposit Materials to Owner or destroy the Deposit Materials, whichever Owner requests. If destruction is requested, EscrowTech will certify in writing to Owner that such destruction has occurred.

 

(b)         EscrowTech shall have no obligation or liability to Owner or Beneficiary after termination.

 

(c)          Termination of the Escrow shall not affect any rights or licenses granted to EscrowTech or Beneficiary with respect to Deposit Materials released to (or which should be released to) Beneficiary because of a Release Condition occurring prior to the date of termination.

 

16.         Establishment of Substitute Escrow. During the 90 day period under Section 15, Owner shall establish a substitute escrow with a third party escrow agent for the benefit of Beneficiary. The substitute escrow must be approved by Beneficiary, but such approval will not be unreasonably withheld or delayed. If necessary, this matter shall be resolved in accordance with Section 17. If more than 90 days is needed to establish the substitute escrow and if EscrowTech receives written notice from Owner or Beneficiary of such need prior to the end of such 90 days, then the 90 day period under Section 15 shall be extended as reasonably necessary and the Escrow shall not terminate until EscrowTech receives written notice from Owner that the substitute escrow has been established and approved.

 

17.         Dispute Resolution. In the event of any dispute between the Parties relating to this Agreement or the Escrow, they shall first seek to settle the dispute by mutual agreement. If they have not reached a settlement within one week, then any disputing Party may thereafter submit the dispute to arbitration, and if so submitted, such dispute shall be finally settled by arbitration conducted in accordance with the commercial arbitration rules of the American Arbitration Association or its successor. The disputing Parties shall attempt to mutually agree upon a neutral arbitrator. If the disputing Parties cannot reach such agreement, they shall request the American Arbitration Association or its successor to designate a neutral arbitrator. Any arbitration involving EscrowTech as a party shall be conducted in Salt Lake City, Utah, Any arbitration to which EscrowTech is not a party shall be conducted in Owner’s city as indicated at the beginning of this Agreement. The institution of any arbitration proceeding hereunder shall not relieve any Party of its obligation to make payments under this Agreement. The decision by the arbitrator shall be binding and conclusive upon the Parties, their successors, assigns and trustees and they shall comply with such decision in good faith, and each Party hereby submits itself to the jurisdiction of the courts of the place where the arbitration is held, but only for the entry of judgment or for the enforcement of the decision of the arbitrator hereunder: Judgment upon the award may be entered in any court having jurisdiction.

 

18.         Protection of Deposit Materials. EscrowTech shall keep the Deposit Materials delivered to it in secure storage and shall keep the contents thereof confidential. If any of the Deposit Materials are damaged, destroyed or lost by fire, theft, accident, or other mishap or cause, Owner shall promptly submit to EscrowTech such Updates and replacements as are necessary to replace the damaged, destroyed or lost Deposit Materials. There shall be no Excess Update Fees charged for such Updates or replacements.

 

19.         Indemnification. In the event that EscrowTech takes any action or inaction at the request or demand of Owner or Beneficiary, then the Owner or Beneficiary making such request or demand shall indemnify and hold harmless EscrowTech and its directors, officers, employees, shareholders, and representatives from and against any and all liabilities, claims, judgments, damages, losses and expenses, including attorneys’ fees, arising out of or relating to such action or inaction.

 

20.         Depository Only. EscrowTech acts hereunder as a depository only and is not

 

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responsible or liable for she completeness, accuracy, suitability, state, format, safety, quality, content, sufficiency, correctness, genuineness or validity of the Deposit Materials or any document submitted to EscrowTech or the execution of the same or the identity, authority, or rights of any person executing or depositing the same. EscrowTech is not responsible for any loss of Deposit Materials due to defective, outdated, or unreliable storage media (e.g., CD ROMs, magnetic tape, disks, etc.) or for the degradation of storage media.

 

21.         Uncertainty. Notwithstanding anything in this Agreement to the contrary, if EscrowTech is uncertain as to any duly, obligation, demand, or right, EscrowTech may hold the Deposit Materials and refrain from taking any action and wait for a final resolution under Section 17 or a court order.

 

22.         Reliance.  EscrowTech shall not incur any liability in acting upon any notice, request, waiver, consent, receipt or other paper or document believed by EscrowTech to be genuine and to be signed by the proper party or parties, or in acting upon any resolution under Section 17 or any court order.

 

23.         Extraordinary Services.  In addition to the Fees and Charges for the usual services of EscrowTech under this Agreement (see Section 13 and Exhibit C), EscrowTech shall be entitled to additional reasonable compensation should EscrowTech be requested or required to perform any additional or extraordinary service; and EscrowTech shall be reimbursed for any out-of-pocket expenses (including, without limitation, travel expenses and fees of counsel) reasonably incurred in connection with such additional or extraordinary services. Extraordinary services include, but arc not limited to, any involvement of EscrowTech, at the request or demand of Owner or Beneficiary, in any meeting, mediation, arbitration or litigation between Owner and Beneficiary.

 

24.         Disclaimer.  ESCROWTECH MAKES NO WARRANTY NOT EXPRESSLY SET FORTH HEREIN. ANY IMPLIED WARRANTIES ARE DISCLAIMED AND EXCLUDED BY ESCROWTECH.

 

25.         Limitation on Liability.  FOR ANY AND ALL CLAIMS AND CAUSES OF ACTION (INCLUDING WITHOUT LIMITATION BREACH OF CONTRACT, TORT, MALPRACTICE, ETC), ESCROWTECH’S AGGREGATE LIABILITY TO OWNER AND BENEFICIARY SHALL NOT EXCEED THE TOTAL FEES PAID TO ESCROWTECH UNDER THIS AGREEMENT. IN NO EVENT SHALL ESCROWTECH BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL. EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES OR LOSS OF PROFITS, REVENUES OR BUSINESS, EVEN IF ADVISED OF THE POSSIBILITY THEREOF.

 

26.         Interpretation.  The wording used in this Agreement is the wording chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against or in favor of any Party. Section headings are for convenience only, and do not limit or affect the provisions of this Agreement or their interpretation. No prior, contemporaneous, or subsequent purchase order that contains conflicting or additional terms or conditions will be binding on parties even if such purchase order is acknowledged or accepted.

 

27.         Entire Agreement.  This Agreement constitutes the entire agreement of the Parties relating to the Escrow. This Agreement sets forth all the duties and obligations of EscrowTech with respect to any and all matters relating to this Agreement, the Escrow or the Deposit Materials. EscrowTech has no implied duties or obligations.

 

28.         Force Majeure.  Except for obligations to make payment, no Party shall be liable for any failure to perform arising from causes beyond its control, including, but not limited to, fire, storm, flood, earthquake, explosion, accident, theft, terrorism, acts of public enemies, war, insurrection, sabotage, illness, labor disputes or shortages, product shortages, failure or delays in transportation, inability to secure materials, parts or equipment, acts of God, or acts of any governmental authority or agency thereof.

 

29.         Governing Law.  This Agreement is made and entered into in the state of Utah. This Agreement, the Escrow and the relationship of EscrowTech with Owner and Beneficiary shall be governed and construed under and in accordance with the laws of the state of Utah

 

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without regard to conflict of laws principles. Furthermore, in the event of any litigation or arbitration between EscrowTech and Owner or between EscrowTech and Beneficiary, such litigation or arbitration shall be conducted exclusively in Salt Lake City, Utah and the Parties hereby agree and submit to such jurisdiction and venue.

 

30.         Notices. All notices under this Agreement shall be in writing and shall be delivered to the address indicated for the intended Party at the beginning of this Agreement, or to such substitute address as any Party may designate for itself by proper notice to the other Parties. It is the responsibility of each Party to keep the other Parties informed of its then-current address and telephone and fax numbers.

 

31.         Modification. This Agreement may only be modified, amended or rescinded by a writing signed by all affected Parties.

 

32.         Assignment.  This Agreement may be assigned by a Party to a successor who acquires substantially all of such Party’s business assets relevant to the subject matter of this Agreement. The assigning Party must give notice thereof to the other affected Parties and must deliver to such other affected Parties a copy of the successor’s written agreement to accept this Agreement and to assume the assigning Party’s position under this Agreement.

 

33.         Special Instructions.  Special Instructions, if any, are given in Exhibit B and shall apply,

 

34.         Execution.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. The persons signing below represent that they are duly authorized to execute this Agreement for and on behalf of the Party for whom they are signing.

 

Agreed to and accepted by:

 

	
Cyoptics,   Inc.
    	
(“Owner”)
    	
 
    	
EscrowTech   International, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By   (signature):
    	
/s/   Ed J. Coringrato
    	
 
    	
By   (signature):
    	
/s/   Jorge Sagastume
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name   (print):
    	
Ed   J. Coringrato
    	
 
    	
Name   (print):
    	
Jorge   Sagastume
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
President
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finisar   Corp.
    	
(“Beneficiary”)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By   (signature):
    	
/s/   S. K. Workman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name   (print):
    	
S.   K. Workman
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
CFO
    	
 
    	
 
    	
 
    

 

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EXHIBIT A

 

1.                                      PRIMARY AGREEMENT

 

Owner and Beneficiary have entered into one or more other agreements identified below:

 

License Agreement dated April 29, 2005

 

Such agreement(s) (including addendums or amendments thereto, if any) is (are) referred to in the Escrow Agreement as the “Primary Agreement.”

 

2.                                      DEPOSIT MATERIALS

 

Owner shall deliver to EscrowTech the following “Deposit Materials” to be held in the Escrow:

 

(a)           Materials described in Section 3.1(a) of the Primary Agreement which are complete as of the date hereof shall be delivered to Escrow Agent concurrent with the establishment of the Escrow.

 

(b)           Materials described in Section 3.1(a) of the Primary Agreement which are not complete as of the date hereof shall be delivered to Escrow Agent pursuant to the terms of that section.

 

(c)           Materials described in Section 3.1(b) of the Primary Agreement shall be delivered to Escrow Agent pursuant to the terms of that section.

 

3.                                      UPDATES

 

Owner shall update the Escrow by delivering to EscrowTech the new version of, update to, or replacement for the Deposit Materials (“Updated Deposit Materials” or “Updates”) as follows: on or before the last day of the calendar quarter in which they are completed . Owner shall keep the Deposit Materials current with the Primary Agreement.  However, Owner shall not be obligated to provide Updates more frequently than four (4) times per contract year, except as may be required under Section 3.1(b) of the Primary Agreement.

 

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EXHIBIT B

 

RELEASE CONDITION

 

The “Release Condition” shall be deemed to have occurred in the event of any of the following;

 

1.                                       Beneficiary becomes entitled to a release of the Deposit Materials pursuant to the terms of the Primary Agreement.

 

PERMITTED USE

 

The following apply to Deposit Materials released to Beneficiary in accordance with this Software Escrow Agreement:

 

1.                                       Beneficiary may only use the Deposit Materials pursuant to the terms of the Primary Agreement.

 

SPECIAL CONDITIONS

 

As described in the Primary Agreement, including, but not limited to the following;

 

3.1.          Section 3.6    Inspection of Escrow Contents. The escrow agreement shall provide for a representative of Finisar to examine the Deliverables contained in the escrow from time to time, at Finisar’s expense and upon reasonable advance notice to CyOptics, to determine whether they are complete and up-to-date. The person performing such examination, who shall be identified to CyOptics in advance of the examination, shall be required to hold all information obtained pursuant to the examination in confidence and not to disclose such information to any person without CyOptic’s prior written consent, provided that the examiner may disclose the nature of any shortcomings in the escrowed Deliverables to Finisar.

 

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EXHIBIT C

 

Fee Schedule(1)

 

	
Basic Fees:
    	
 
    	
Amount:
    	
 
    	
Payable by:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Annual   Fee
    	
 
    	
$795   per year
    	
 
    	
Beneficiary
    	
 
    

 

	
Other Fees (if ever applicable):
    	
 
    	
Amount:
    	
 
    	
Payable by:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Excess   Update Fee(2) 
    (for excess Updates only)
    	
 
    	
$95   each
    	
 
    	
Beneficiary
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Release   Fee 
    (only if release occurs)
    	
 
    	
$100   per release
    	
 
    	
See   Section 13 (c)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Excess   Storage Charge 
    (only if more than 2 cubic feet of space required)
    	
 
    	
$70   per extra cubic foot per year
    	
 
    	
Beneficiary
    	
 
    

 

There are no set up fees.

 

(1) These Fees arc fixed for the first three years of the Escrow Agreement. Thereafter, all Fees arc subject to reasonable increase by EscrowTech upon written notice.

 

(2) Four Updates per contract year are included at no charge. The Excess Update Fee is for Updates in excess of four per contract year. Unused Updates are not credited to and may not be used in subsequent years.

 

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Exhibit D

 

Satisfaction Guarantee

 

If this is Owner’s first escrow with EscrowTech, then:

 

During the first year of this Agreement, if Owner is dissatisfied for any reason with EscrowTech’s services, then Owner may terminate the Escrow (in accordance with Sections 15 and 16) and receive a full refund of all escrow fees paid by Owner to EscrowTech during the first year for this Escrow. To be eligible for the refund, Owner must terminate the Escrow prior to the end of the first year of this Agreement and must tell EscrowTech why Owner is not satisfied (so that EscrowTech will know how to improve its services). This refund does not include verification fees or out-of-pocket expenses.

 

If this is Beneficiary’s first escrow with EscrowTech, then:

 

During the first year of this Agreement, if Beneficiary is dissatisfied for any reason with EscrowTech’s services, then Beneficiary may terminate the Escrow (in accordance with Section 14) and receive a full refund of all escrow fees paid by Beneficiary to EscrowTech during the first year for this Escrow. To be eligible for the refund, Beneficiary must terminate the Escrow prior to the end of the first year of this Agreement and must tell EscrowTech why Beneficiary is not satisfied (so that EscrowTech will know how to improve its services). This refund does not include verification fees or out-of-pocket expenses.

 

11Exhibit 10.13

 

EXECUTION VERSION

 

AMENDMENT NUMBER ONE

to the

Master Repurchase Agreement

Dated as of November 2, 2010

among

PENNYMAC CORP.

PENNYMAC MORTGAGE INVESTMENT TRUST HOLDINGS I, LLC

and

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

This AMENDMENT NUMBER ONE is made this 18th day of August, 2011, by and among PENNYMAC CORP., a Delaware corporation, PENNYMAC MORTGAGE INVESTMENT TRUST HOLDINGS I, LLC, a Delaware limited liability company (each a “Seller” and collectively the “Sellers”) and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Buyer”), to the Master Repurchase Agreement, dated as of November 2, 2010, by and among Sellers and Buyer (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”).

 

WHEREAS, Sellers have requested that Buyer amend the Agreement to modify the pricing terms, income distributions, covenants and certain other provisions thereunder; and

 

WHEREAS, Sellers and Buyer have agreed to amend the Agreement as set forth herein.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the mutual covenants herein contained, the parties hereto hereby agree as follows:

 

SECTION 1.           Amendment. Effective as of August 18, 2011 (the “Amendment Effective Date”), the Agreement is hereby amended as follows:

 

(a)           The Table of Contents of the Agreement is hereby modified by adding “Schedule 7 Schedule of Reports” on page “iv” therein.

 

(b)           Article 2 of the Agreement is hereby amended by adding the following definitions (in the appropriate alphabetical order) thereto:

 

“Amendment Effective Date”: August 18, 2011.

 

“Ancillary Income”:   All income derived from the Mortgage Loans (other than payments or other collections in respect of principal, interest, Escrow Payments and prepayment penalties attributable to the Mortgage Loans) including, but not limited to, all interest received on funds deposited in the Custodial Account (as defined in the Servicing Agreement) or any Escrow Account (as defined in the Servicing Agreement and subject to applicable law), assumption fees, reconveyance fees, subordination fees, speedpay fees, mortgage pay on the web fees, automatic clearing house fees, demand statement fees, modification fees, if any, fees received with respect to checks on bank drafts returned by the related bank for insufficient funds, assumption fees and other

 

 

similar types of fees arising from or in connection with any Mortgage Loan to the extent not otherwise payable to the Mortgagor under applicable law or pursuant to the terms of the related Mortgage Note. In no event shall the Servicer be entitled to any prepayment penalties.

 

“Buyout Amount”:  Any amount paid by a Seller to (i) remove an Underlying Mortgage Loan from the pool of mortgage loans supporting a Purchased REMIC Certificate in accordance with the related REMIC Declaration Agreement on a Conversion Date, and (ii) convert such Underlying Mortgage Loan into an Eligible Mortgage Loan, provided the related Mortgage Loan remains at all times subject to the terms of a Transaction hereunder.

 

“Collection and Reporting Period”:  For any Purchased Asset the first day of each calendar month through and including the last day of such calendar month.

 

“Reconciliation Date”:  (i) each Remittance Date, (ii) the date which is two (2) weeks following such Remittance Date and (iii) with respect to a foreclosed Purchased Mortgage Loan or Underlying Mortgage Loan that has not been repurchased by Sellers, any date on which the Purchase Price of such foreclosed Purchased Mortgage Loan or Underlying Mortgage Loan when added to the aggregate outstanding Purchase Price of all other foreclosed Purchased Mortgage Loans and Underlying Mortgage Loans that have not been repurchased by Sellers, exceeds $3,000,000.

 

(c)           Article 2 of the Agreement is hereby amended by deleting the definitions of “Carryover Amount”, “Direct Pass-Through Expenses”, “Estimate of Guarantor Net Income”, “Foreclosed Mortgage Loan” “Management Fees” and “Sale and Disposition of Purchased Assets” therein in their respective entirety.

 

(d)           Article 2 of the Agreement is hereby amended by deleting the definitions of “Applicable Percentage”, “Conversion Date”, “Early Repurchase Schedule”, “Margin Deficit”, “Removed Mortgage Loan” and “Turbo Trigger Event” therein in their respective entirety and replacing each of them (as applicable) with the following:

 

“Applicable Percentage”:  For each Purchased Asset, the applicable percentage (up to the Maximum Applicable Percentage) determined by Buyer in its sole discretion for such Purchased Asset on the Purchase Date thereof and set forth in the applicable Confirmation.  For the avoidance of doubt any Purchased Asset which is a Mortgage Loan shall have an Applicable Percentage of zero upon completion of any related foreclosure sale or other liquidation of the related Mortgage Loan.

 

“Conversion Date”: With respect to any Purchased REMIC Certificate, the date on which Buyer releases its rights, title and interest in a Removed Mortgage Loan and such Removed Mortgage Loan becomes subject to a Transaction as a Purchased Mortgage Loan pursuant to Section 3.01(g)(i) hereof.

 

 

“Early Repurchase Schedule”: With respect to any Early Repurchase on the schedule set forth Exhibit F attached hereto.

 

“Margin Deficit”:  Either a REO Margin Deficit or Mortgage Loan/REMIC Margin Deficit.

 

“Removed Mortgage Loans”: Any Underlying Mortgage Loan which, upon payment of the related Buyout Amount, is removed from the pool of mortgage loans supporting a Purchased REMIC Certificate in accordance with the related REMIC Declaration Agreement on a Conversion Date and held by PMC.

 

“Turbo Trigger Event”:  At any time that: (i) the Aggregate Purchase Price falls below $12,500,000; or (ii) a loss of REMIC status occurs with respect to any related REMIC Certificate.

 

(e)           Article 2 of the Agreement is hereby amended by modifying the definition of “Eligible Mortgage Loan” by deleting each of clauses (v) and (ix) therein in their respective entirety and replacing each of them with “[Reserved]”.

 

(f)            Article 2 of the Agreement is hereby amended by modifying the definition of “Eligible REO Property” by:

 

(i)            deleting clause (b) therein and replacing it with the following:

 

“(b)        as to which (i) the related REO Deed has been recorded by the applicable recording office in the name of PC REO and evidence of recording thereon (acceptable to Buyer) has been delivered to Buyer or its designee, or (ii) the related REO Deed has been sent for recordation in the name of PC REO to the applicable recording office and Buyer has received (y) an email transmittal from Seller acknowledging that the related REO Deed has been sent for recordation in the name of PC REO to the applicable recording office and (z) a receipt, electronic transmittal or other written evidence provided by Sellers’ vendor acknowledging that such REO Deed has been sent for recordation in the name of PC REO and listing the recording office to which such REO Deed was submitted”

 

(ii)           replacing the word “and” appearing at the end of clause (x) and clause (xi) with the following;

 

“(xi)         With respect to REO Property for which the REO Deed has been submitted for recordation in the name of PC REO and a recorded REO Deed has not yet been returned, the state in which the REO Property is located is a race/notice or a notice jurisdiction identified on Schedule 8 hereto (as such Schedule may be updated by Buyer from time to time) with respect to the recordation of real property deeds; and

 

(xii)          Any other eligibility criteria as mutually agreed to by the Buyer and Sellers.”

 

(g)           Article 2 of the Agreement is hereby amended further by modifying the definition of “Eligible REO Property” by deleting clause (x) therein in its entirety and replacing it with “[Reserved]; and”.

 

 

(h)           Article 2 of the Agreement is hereby amended by modifying the definition of “Income” by deleting clause (f) therein in its entirety and replacing it with the following:

 

“(f) with respect to Purchased REMIC Certificates and Purchased REO Entity Interests, each of the foregoing amounts collected with respect to the related Underlying Assets; provided, that (x) Ancillary Income, (y) any Buyout Amounts on deposit in the Participation Account or Waterfall Account and (z) amounts that under the applicable Asset Documents are required to be deposited into and held in escrow or reserve to be used for a specific purpose, such as taxes and insurance, shall not be included in the term “Income”; unless and until with respect to clause (z) only, (i) an event of default exists under such Asset Documents, (ii) the holder of the related Purchased Asset or Underlying Asset has exercised or is entitled to exercise rights and remedies with respect to such amounts, (iii) such amounts are no longer required to be held for such purpose under such Asset Documents, or (iv) such amounts may be applied to all or a portion of the outstanding indebtedness under such Asset Documents.”

 

(i)            Article 2 of the Agreement is hereby amended by modifying the definition of “Market Value” by deleting the last sentence of the first paragraph therein and replacing it with the following:

 

“Notwithstanding anything else in this definition, the Market Value shall be deemed to be zero with respect to each Purchased Asset or Underlying Asset for which such valuation is not provided and/or with respect to which:”

 

(j)            Article 2 of the Agreement is hereby amended further by modifying the definition of “Market Value” by (1) deleting “or” at end of clause (i) therein; (2) replacing the period with “; or” at the end of clause (j) therein; and (3) adding new clause (k) as follows:

 

“(k) as of any Reconciliation Date, the Purchased Mortgage Loan or Underlying Mortgage Loan has been foreclosed and has not been repurchased by Sellers.”

 

(k)           Article 2 of the Agreement is hereby amended by modifying the definition of “Purchase Price” by deleting clause (ii) therein and replacing it with following:

 

“(ii)         any Principal Payments remitted to the Waterfall Account and which were applied to the Purchase Price of such Purchased Asset by Buyer pursuant to Section 5.02(b)(I) and clause fifth of Section 5.02(b)(II) and (c), and”

 

(l)            Section 3.01(g)(i) of the Agreement is hereby amended by deleting the last sentence therein in its entirety and replacing it with the following:

 

“Notwithstanding anything contained herein to the contrary, each Conversion Date hereunder shall occur prior to the date of the completion of the related foreclosure sale with respect to each related Removed Mortgage Loan.”

 

 

(m)          Section 3.01(g)(ii) of the Agreement is hereby amended by deleting the section in its entirety and replacing it with “[Reserved]”.

 

(n)           Section 3.04 is hereby amended by deleting the definition of “Early Repurchase Date” in its entirety and replacing it with the following:

 

“Sellers may terminate any Transaction with respect to any or all Purchased Assets subject to an Early Repurchase and repurchase such Purchased Assets on any date prior to the Repurchase Date”

 

(o)           Section 3.04 of the Agreement is hereby amended by deleting subparagraph (iii) of the second paragraph thereof in its entirety and replacing it with “(iii) either (1) any Underlying Mortgage Loan is not an Eligible Mortgage Loan at any time after the date the REMIC Certificates were issued, as determined by Buyer or (2) evidence acceptable to Buyer that any related REO Deed has been recorded (or submitted for recording, as applicable) in the name of the PC REO in the appropriate recording office has not been delivered to Buyer, Buyer may assign a Market Value of zero to such Underlying Mortgage Loan, or”.

 

(p)           Section 3.06(c) of the Agreement is hereby amended by deleting the references therein to “Closing Date” and replacing each of them with “Amendment Effective Date”.

 

(q)           Section 4.01(a) of the Agreement is hereby amended by deleting the section its entirety and replacing it with the following:

 

If on any date the Market Value of all Purchased Mortgage Loans and Purchased REMIC Certificates (taking into account the Market Value of the Underlying Mortgage Loans) is less than the product of (A) Buyer’s Margin Percentage times (B) the aggregate outstanding Purchase Price for such Purchased Assets as of such date, a margin deficit shall exist (a “Mortgage Loan/REMIC Margin Deficit”).  If on any date the Market Value of all Purchased REO Entity Interests (taking into account the Market Value of the related REO Properties) is less than the product of (A) Buyer’s Margin Percentage times (B) the aggregate outstanding Purchase Price for such Purchased Assets as of such date, a margin deficit shall exist (an “REO Margin Deficit”).  If on any date that a Mortgage Loan/REMIC Margin Deficit exists, Buyer may provide a Margin Call Notice to Sellers notifying Sellers of such Margin Deficit (a “Margin Call”) and such Margin Call Notice shall require Sellers, upon Buyer’s direction to either (i) transfer cash to Buyer, (ii) transfer to Buyer or its designee (including Custodian) for no additional consideration additional Eligible Assets (“Additional Purchased Assets”), or (iii) choose (at Buyer’s discretion) any combination of the foregoing, so that, after giving effect to such transfers and payments, the aggregate outstanding Purchase Price for all Purchased Mortgage Loans and Purchased REMIC Certificates does not exceed the product of (A) the aggregate Market Value thereof times (B) the Applicable Purchase Price Percentage.  If on any date that an REO Margin Deficit exists, Buyer may make a Margin Call and Sellers may, but shall have no obligation to, (i) transfer cash to Buyer, (ii) transfer to Buyer or its designee (including Custodian) for no additional consideration Additional Purchased Assets, or (iii) choose (at Buyer’s discretion) any

 

 

combination of the foregoing, so that, after giving effect to such transfers, repurchases and payments, the aggregate outstanding Purchase Price for all Purchased REO Entity Interests does not exceed the product of (A) the aggregate Market Value thereof times (B) the Applicable Purchase Price Percentage.  Buyer shall apply the funds received in satisfaction of a Margin Deficit to the Repurchase Obligations in such manner as Buyer determines; provided that any funds received from Sellers to satisfy an REO Margin Deficit shall be applied to satisfy such REO Margin Deficit and any funds received from Sellers to satisfy a Mortgage Loan/REMIC Margin Deficit shall be applied to satisfy such Mortgage Loan/REMIC Margin Deficit.  For the avoidance of doubt a Margin Call may be made with respect to a single Purchased Asset or multiple Purchased Assets.

 

(r)            Section 5.02 of the Agreement is hereby amended by deleting the reference therein to “Pricing Period” and replacing it with “Collection and Reporting Period”.

 

(s)           Section 5.02(a) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“(a)         All Income received prior to the occurrence of a Turbo Trigger Event shall be applied as follows:

 

I.              With respect to Income on deposit in the Waterfall Account with respect to the Purchased REO Entity Interests:

 

first, to pay to Buyer an amount equal to the Price Differential accrued with respect to all Purchased REO Entity Interests as of such Remittance Date;

 

second, to pay to Buyer an amount sufficient to eliminate any outstanding REO Margin Deficit;

 

third, to deposit any amounts necessary to maintain the Required Amount with respect to the Purchased REO Entity Interests in the REO Property Interest Reserve Account;

 

fourth, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and Indemnified Amounts then due and payable from Sellers and other applicable Persons to Buyer under the Repurchase Documents and allocable to the Purchased REO Entity Interests; and

 

fifth, any remaining amounts to the Waterfall Account.

 

II.            With respect to Income on deposit in the Waterfall Account with respect to the Purchased Mortgage Loans and Purchased REMIC Certificates and any amounts referred to in clause fifth of (a)(I) above:

 

“first, to pay to Buyer an amount equal to the Price Differential accrued with respect to all Purchased REMIC Certificates and Purchased Mortgage Loans as of such Remittance Date and any outstanding Facility Fees;

 

 

second, to pay to Buyer an amount sufficient to eliminate any outstanding Mortgage Loan/REMIC Margin Deficit with respect to the Purchased REMIC Certificates and the Purchased Mortgage Loans (without limiting Sellers’ obligation to satisfy a Mortgage Loan/REMIC Margin Deficit in a timely manner as required by Section 4.01);

 

third, to deposit any amounts necessary to maintain the Required Amount with respect to the Purchased Mortgage Loans and Purchased REMIC Certificates in the Mortgage Loan Interest Reserve Account;

 

fourth, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and Indemnified Amounts then due and payable from Sellers and other applicable Persons to Buyer under the Repurchase Documents and allocable to the Purchased REMIC Certificates and the Purchased Mortgage Loans; and

 

fifth, any remaining amounts to Sellers.”

 

(t)            Section 5.02(b) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“(b)  All Income received during the occurrence of a Turbo Trigger Event with respect to Purchased Assets shall be applied as follows:

 

I.              With respect to Income on deposit in the Waterfall Account with respect to the Purchased REO Entity Interests to be paid to Buyer to reduce the aggregate outstanding Purchase Price of such Purchased Assets to zero and any remaining amounts to be paid in accordance with section (II) below.

 

II.            With respect to Income on deposit in the Waterfall Account with respect to the Purchased Mortgage Loans and Purchased REMIC Certificates and any amounts referred to in clause sixth of (a)(I) above:

 

first, to pay to Buyer an amount equal to the Price Differential accrued with respect to all Purchased REMIC Certificates and Purchased Mortgage Loans as of such Remittance Date;

 

second, to pay to Buyer an amount sufficient to eliminate any outstanding Mortgage Loan/REMIC Margin Deficit with respect to the Purchased REMIC Certificates and the Purchased Mortgage Loans (without limiting Sellers’ obligation to satisfy a Mortgage Loan/REMIC Margin Deficit in a timely manner as required by Section 4.01);

 

third, to deposit any amounts necessary to maintain the Required Amount with respect to the Purchased Mortgage Loans and Purchased REMIC Certificates in the Mortgage Loan Interest Reserve Account;

 

 

fourth, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and Indemnified Amounts then due and payable from Sellers and other applicable Persons to Buyer under the Repurchase Documents and allocable to the Purchased Mortgage Loans and Purchased REMIC Certificates;

 

fifth, to pay to Buyer, the amount needed to reduce the aggregate outstanding Purchase Price for the Purchased REMIC Certificates and Purchased Mortgage Loans to zero; and

 

sixth, any remaining amounts to Sellers.”

 

(u)           Section 5.02(d) of the Agreement is hereby amended by deleting the reference to “second of Section 5.02(a)(II)” therein and replacing it with “first of Section 5.02(a)(II)”.

 

(v)           Section 6.02(c) of the Agreement is hereby amended by deleting the reference to “(including, without limitation any Foreclosed Mortgage Loans)” therein.

 

(w)          Section 8.09(g) of the Agreement is hereby amended by adding new section (vi) therein as follows:

 

“(vi)        servicing reports identifying the aggregate outstanding servicing advances (including without limitation Protective Servicing Advances) made by Seller or Servicer with respect to the Purchased Assets or Underlying Assets.”

 

(x)            Section 8.09(g)(iii) of the Agreement is hereby amended by deleting the section in its entirety and replacing it with the following:

 

“(iii) servicing reports for the prior Collection and Reporting Period, including identification of any modifications to any Purchased Assets or Underlying Assets;”

 

(y)           Section 8.09(g)(iv) of the Agreement is hereby amended by deleting the reference therein to “prior month” and replacing it with “prior Collection and Reporting Period”.

 

(z)            Section 8.09(i) of the Agreement is hereby amended by deleting the section its entirety and replacing it with the following:

 

“(i) (x) daily/weekly/monthly reports as set forth on Schedule 7 attached hereto and (y) “view access” to Sellers’ REO Property management systems, to Buyer as required and mutually agreed upon prior to the Purchase Date of the first Transaction following the Amendment Effective Date;”

 

(aa)         Section 8.12 of the Agreement is hereby amended by deleting the section its entirety and replacing it with the following:

 

 

“8.12       Trailing Fees and Expenses for Recordation of REO Deed. In the event that PMC or PC REO shall incur any trailing fees and/or expenses from time to time in connection with the recordation of any REO Deed, PMC or PC REO, as the case may be, shall promptly satisfy such payment obligation.”

 

(bb)         Section 11.04(a) of the Agreement is hereby amended by deleting the last sentence therein in its entirety and replacing it with the following:

 

“Each such REO Deed shall be duly executed, be in recordable form in accordance with applicable law and shall have been recorded (or submitted for recording, as applicable) in the recordation office of the jurisdiction in which the REO Property is located.”

 

(cc)         Section 11.04(b) of the Agreement is hereby amended by deleting the section in its entirety and replacing it with the following:

 

“PMC shall cause PC REO, with respect to any REO Property owned by it or transferred to it, to deliver a correct and complete REO Property File (including a certified copy of the file-stamped REO Deed or, in the case where the REO Deed has been submitted to the applicable recording office for recordation but not yet returned, a receipt or other written acknowledgment (acceptable to Buyer) from the clerk evidencing the receipt of such REO Deed) to Buyer or its designee as a condition precedent to any Transaction involving such REO Property.    Each copy of an REO Deed delivered to the Buyer or its designee as part of an REO Property File (including intervening deeds) shall be a true, correct and complete copy of the original REO Deed, the original REO Deed shall be acceptable to Buyer in all respects and shall have been recorded in the name of PC REO in the appropriate recording office.  Each title commitment, ‘date-down’ or trustee’s sale guarantee delivered to the Buyer or its designee as part of an REO Property File shall be a true, correct and complete copy of the original document.”

 

(dd)         Section 18.01 of the Agreement is hereby amended by deleting the section in its entirety and replacing it with the following:

 

“This Agreement and any claim, controversy or dispute arising under or related to or in connection with this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties will be governed by the laws of the State of New York without regard to any conflicts of law principles other than Sections 5-1401 and 5-1402 of the New York General Obligations Law.”

 

(ee)         Schedule 1-B to the Agreement is hereby amended by adding the following new paragraph at the end thereof:

 

“(u)         Recordation of REO Deed. All conditions to the recordation of the related REO Deed have been satisfied by PMC and PC REO, including without limitation payment of all transfer taxes, fees and expenses incurred in connection with such recordation as a requirement for such recordation and with the transfer of the REO Property to PC REO, extinguishment of all liens on the REO Property and

 

 

satisfactory submission of all required forms to the applicable recording office, as may be required by applicable law.”

 

(ff)           The Agreement is hereby amended by adding new Schedules 7 and 8 in the form attached hereto as Exhibit A, directly after the end of Schedule 6 to Agreement.

 

SECTION 2.           Defined Terms.  Any terms capitalized but not otherwise defined herein should have the respective meanings set forth in the Agreement.

 

SECTION 3.           Limited Effect.  Except as amended hereby, the Agreement shall continue in full force and effect in accordance with its terms.  Reference to this Amendment Number One need not be made in the Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Agreement, any reference in any of such items to the Agreement being sufficient to refer to the Agreement as amended hereby.

 

SECTION 4.           Representations.  In order to induce Buyer to execute and deliver this Amendment Number One, Sellers hereby represent to Buyer that as of the date hereof, Sellers are in full compliance with all of the terms and conditions of the Agreement, including without limitation, all of the representations and warranties and all of the affirmative and negative covenants, and no Default or Event of Default has occurred and is continuing under the Agreement.

 

SECTION 5.           Fees and Expenses. Sellers agree to pay to Buyer all reasonable fees and out of pocket expenses incurred by Buyer in connection with this Amendment Number One (including all reasonable fees and out of pocket costs and expenses of Buyer’s legal counsel incurred in connection with this Amendment Number One) pursuant to Section 13.02 of the Agreement.

 

SECTION 6.           Governing Law. This Amendment Number One and any claim, controversy or dispute arising under or related to or in connection with this Amendment Number One, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties will be governed by the laws of the State of New York without regard to any conflicts of law principles other than Sections 5-1401 and 5-1402 of the New York General Obligations Law.

 

SECTION 7.           Counterparts.  This Amendment Number One may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute but one and the same agreement.  This Amendment Number One, to the extent signed and delivered by facsimile or other electronic means, shall be treated in all manner and respects as an original agreement and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  No signatory to this Amendment Number One shall raise the use of a facsimile machine or other electronic means to deliver a signature or the fact that any signature or agreement was transmitted or communicated through the use of a facsimile machine or other electronic means as a defense to the formation or enforceability of a contract and each such Person forever waives any such defense.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, Sellers and Buyer have caused this Amendment Number One to be executed and delivered by their duly authorized officers as of the Amendment Effective Date.

 

WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Buyer

 

 

	
By:
    	
/s/ Goetz Rokahr
    	
 
    
	
Its:
    	
Goetz   Rokahr
    	
 
    
	
Title:   
    	
Vice   President
    	
 
    

 

[Additional Signature Pages Follow]

 

Signature Pages to Amendment Number One to Master Repurchase Agreement (WF-PennyMac)

 

 

	
PENNYMAC CORP., as a Seller
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ David M. Walker
    	
 
    
	
Its:
    	
David M. Walker
    	
 
    
	
Title:
    	
Chief Credit Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PENNYMAC MORTGAGE   INVESTMENT
    	
 
    
	
TRUST HOLDINGS I, LLC,   as a Seller
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ David M. Walker
    	
 
    
	
Its:
    	
David M. Walker
    	
 
    
	
Title:
    	
Chief Credit Officer
    	
 
    

 

Signature Pages to Amendment Number One to Master Repurchase Agreement (WF-PennyMac)

 

 

EXHIBIT A

 

Schedule 7

Reports

 

Daily Reports

·         Wells NPL Cashbook

 

Weekly Reports

·         REO Report

·         Wells REMIC Buyout Report

 

Monthly Reports

·         Full Loan Activity Report (LAR)

·         Wells NPL Repo Servicing Pricing File

 

Signature Pages to Amendment Number One to Master Repurchase Agreement (WF-PennyMac)

 

 

Schedule 8

 

Schedule of Race-Notice and Notice Jurisdictions

 

Alabama

 

Alaska

 

Arizona

 

Arkansas

 

California

 

Colorado

 

Connecticut

 

District of Columbia

 

Florida

 

Georgia

 

Hawaii

 

Idaho

 

Illinois

 

Indiana

 

Iowa

 

Kansas

 

Kentucky

 

Maine

 

Maryland

 

Massachusetts

 

Michigan

 

Minnesota

 

Mississippi

 

Signature Pages to Amendment Number One to Master Repurchase Agreement (WF-PennyMac)

 

 

Missouri

 

Montana

 

Nebraska

 

Nevada

 

New Hampshire

 

New Jersey

 

New Mexico

 

New York

 

North Dakota

 

Oklahoma

 

Oregon

 

Rhode Island

 

South Carolina

 

South Dakota

 

Tennessee

 

Texas

 

Utah

 

Vermont

 

Virginia

 

Washington

 

West Virginia

 

Wisconsin

 

Wyoming

 

Signature Pages to Amendment Number One to Master Repurchase Agreement (WF-PennyMac)

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