Document:

EX-10

EX-10.1 LETTER OF CREDIT ISSUED BY SILICON VALLEY BANK ON BEHALF OF THE REGISTRANT 

Exhibit 10.1 

 

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 

 

DATE: JANUARY 5, 2004 

 

BENEFICIARY: 

JABIL CIRCUIT, INC. 

30 GREAT OAKS BOULEVARD 

SAN JOSE, CALIFORNIA 95119 

 

APPLICANT: 

REDBACK NETWORKS, INC. 

300 HOLGER WAY 

SAN JOSE, CALIFORNIA 95134 

 

	 	 	 
	

AMOUNT:
	

  
	

US$15,700,000.00 (FIFTEEN MILLION SEVEN HUNDRED THOUSAND AND NO/100 U.S. DOLLARS)

	
	

	

EXPIRATION DATE:
	

  
	

JANUARY 5, 2005

	
	

	

LOCATION:
	

  
	

SANTA CLARA, CALIFORNIA

 

LADIES AND GENTLEMEN: 

 

WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 IN YOUR FAVOR FOR ACCOUNT OF REDBACK NETWORKS, INC. IN THE AMOUNT OF US$15,700,000.00 (FIFTEEN MILLION SEVEN HUNDRED THOUSAND AND NO/100 U.S. DOLLARS). THIS LETTER OF CREDIT IS AVAILABLE BY SIGHT PAYMENT WITH US AT OUR OFFICE AT 3003 TASMAN DRIVE, 2ND FLOOR, MAIL SORT HF210, SANTA CLARA, CALIFORNIA 95054, ATTENTION: INTERNATIONAL DIVISION -- STANDBY LETTER OF CREDIT NEGOTIATION DEPARTMENT (THE "BANK'S OFFICE) ONLY AGAINST PRESENTATION OF THE FOLLOWING DOCUMENTS: 

 

	

 
	

1.
	

THE ORIGINAL OF THIS LETTER OF CREDIT AND ALL AMENDMENT (S), IF ANY. 

 

	

 
	

2.
	

YOUR SIGHT DRAFT DRAWN ON US IN THE FORM ATTACHED HERETO AS EXHIBIT "A". 

 

	

 
	

3.
	

A SIGNED AND DATED STATEMENT WORDED AS FOLLOWS: 

 
"THE UNDERSIGNED, AN AUTHORIZED REPRESENTATIVE OF THE JABIL CIRCUIT, INC. ("BENEFICIARY") HEREBY CERTIFIES THAT BENEFICIARY IS ENTITLED TO DRAW THE AMOUNT OF THE ACCOMPANYING DRAFT UNDER SILICON VALLEY BANK IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 UNDER THE TERMS OF THAT CERTAIN LETTER AGREEMENT DATED MARCH 26, 2002 SIGNED BY AND BETWEEN BENEFICIARY AND REDBACK NETWORKS, INC." 

 

PARTIAL DRAWINGS ARE PERMITTED (MORE THAN ONE DRAFT MAY BE DRAWN AND PRESENTED UNDER THIS LETTER OF CREDIT). 

 

THIS LETTER OF CREDIT MUST ACCOMPANY ANY DRAWINGS HEREUNDER FOR ENDORSEMENT OF THE DRAWING AMOUNT AND WILL BE RETURNED TO THE BENEFICIARY UNLESS IT IS FULLY UTILIZED. 

 

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 

 

DATE: JANUARY 5, 2004 

 

THIS LETTER OF CREDIT EXPIRES AT THE BANKS OFFICE ON JANUARY 5, 2005. THE DATE THIS LETTER OF CREDIT EXPIRES, JANUARY 5, 2005, IS THE "FINAL EXPIRY DATE". UPON THE OCCURRENCE OF THE FINAL EXPIRY DATE THIS LETTER OF CREDIT SHALL FULLY AND FINALLY EXPIRE AND NO PRESENTATIONS MADE UNDER THIS LETTER OF CREDIT AFTER SUCH DATE WILL BE HONORED. 

 

DRAFT(S) AND DOCUMENTS MUST INDICATE THE NUMBER AND DATE OF THIS LETTER OF CREDIT. 

 

DOCUMENTS MUST BE DELIVERED TO US DURING REGULAR BUSINESS HOURS ON A BUSINESS DAY OR FORWARDED TO US BY OVERNIGHT DELIVERY SERVICE TO: SILICON VALLEY BANK, 3003 TASMAN DRIVE, 2ND FLOOR, MAIL SORT HF210, SANTA CLARA, CALIFORNIA 95054, ATTENTION: INTERNATIONAL DIVISION -- STANDBY LETTER OF CREDIT NEGOTIATION DEPARTMENT (THE "BANK'S OFFICE). 

 

AS USED HEREIN, THE TERM "BUSINESS DAY" MEANS A DAY ON WHICH WE ARE OPEN AT OUR ABOVE ADDRESS IN SANTA CLARA, CALIFORNIA TO CONDUCT OUR LETTER OF CREDIT BUSINESS. NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN THE UCP (AS HEREINAFTER DEFINED), IF THE EXPIRY DATE OR THE FINAL EXPIRY DATE IS NOT A BUSINESS DAY THEN SUCH DATE SHALL BE AUTOMATICALLY EXTENDED TO THE NEXT SUCCEEDING DATE WHICH IS A BUSINESS DAY. 

 

WE HEREBY ENGAGE WITH YOU THAT DRAFT(S) DRAWN AND/OR DOCUMENTS PRESENTED UNDER AND IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT SHALL BE DULY HONORED UPON PRESENTATION TO SILICON VALLEY BANK, IF PRESENTED ON OR BEFORE THE EXPIRATION DATE OF THIS CREDIT. 

 

THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 500 (THE "UCP"). 

 

	 	 	 	 	 	 	 
	

SILICON VALLEY BANK,

 

 
	

 
	

 
	

 
	

 
	

 
	

 

	

AUTHORIZED SIGNATURE
	

 
	

 
	

 
	

AUTHORIZED SIGNATURE
	

 
	

 

 

 

	 	 	 	 	 
	

 
	

  
	

 
	

  
	

PAGE 2

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 

 

DATE: JANUARY 5, 2004 

 

EXHIBIT "A" 

SIGHT DRAFT/BILL OF EXCHANGE 

 

	 	 	 
	

DATE:                         
	

 
	

REF. NO.                             

	

	

AT SIGHT OF THIS BILL OF EXCHANGE

 

	

	

PAY TO THE ORDER OF                                                                                        US$                                

US DOLLARS                                                                                                                                                    

 

	

	

"DRAWN UNDER SILICON VALLEY BANK, SANTA CLARA, CALIFORNIA, IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER NO. SVBSF             DATED                          , 2004"

 

	
	

	TO:   SILICON VALLEY BANK

         3003 TASMAN DRIVE

         SANTA CLARA, CA 95054

	

 
	

[INSERT NAME OF BENEFICIARY]

 

 

Authorized Signature

 

 

GUIDELINES TO PREPARE THE SIGHT DRAFT OR BILL OF EXCHANGE: 

 

	

1.
	

DATE INSERT ISSUANCE DATE OF DRAFT OR BILL OF EXCHANGE. 

 

	

2.
	

REF. NO. INSERT YOUR REFERENCE NUMBER IF ANY. 

 

	

3.
	

PAY TO THE ORDER OF: INSERT NAME OF BENEFICIARY 

 

	

4.
	

US$ INSERT AMOUNT OF DRAWING IN NUMERALS/FIGURES. 

 

	

5.
	

USDOLLARS INSERT AMOUNT OF DRAWING IN WORDS. 

 

	

6.
	

LETTER OF CREDIT NUMBER INSERT THE LAST DIGITS OF OUR STANDBY L/C NUMBER THAT PERTAINS TO THE DRAWING. 

 

	

7.
	

DATED INSERT THE ISSUANCE DATE OF OUR STANDBY L/C. 

 

	

NOTE:
	

BENEFICIARY SHOULD ENDORSE THE BACK OF THE SIGHT DRAFT OR BILL OF EXCHANGE AS YOU WOULD A CHECK. 

 

IF YOU NEED FURTHER ASSISTANCE IN COMPLETING THIS SIGHT DRAFT OR BILL OF EXCHANGE, PLEASE CALL OUR L/C PAYMENT SECTION AND ASK FOR: ALICE DALUZ AT (408) 654-7120 OR EFRAIN TUVILLA AT (408) 654-6349. 

 

 

	

 
	

  
	

 
	

  
	

PAGE 3

 

OUR STANDBY L/C NO. SVBSF002602

DATE:  MARCH 11, 2004

ADVICE OF AMENDMENT NUMBER:  1

BENEFICIARY:

JABIL CIRCUIT, INC.

30 GREAT OAKS BOULEVARD

SAN JOSE, CALIFORNIA 95119

APPLICIANT:

REDBACK NETWORKS INC.

300 HOLGER WAY

SAN JOSE, CALIFORNIA 95134

LADIES AND GENTLEMEN,

WE HAVE BEEN REQUESTED TO AMEND THE ABOVE REFERENCED LETTER OF CREDIT AS FOLLOWS:

VALUE OF THE LC IS DECREASED BY USD7,700,000.00 TO USD8,000,000.00.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

THIS AMENDMENT IS AN INTERFRAL PART OF THE ORIGINAL LETTER OF CREDIT AND MUST BE ATTACHED THERETO.

PLEASE BE ADVISED THAT THIS LETTER OF CREDIT AMENDMENT IS SUBJECT TO YOUR (BENEFICIARY'S) CONSENT.  PLEASE SIGN THE ATTACHED COPY WHERE APPLICABLE AND RETURN IT TO US AT THE ADDRESS INDICATED BELOW OR USE THE ATTACHED ENVELOPE.

SILICON VALLEY BANK,

__________________________________________________

AUTHORIZED SIGNATUREAUTHORIZED SIGNATURE

ACCEPTED:

JABIL CIRCUITS, INC.

_________________________

AUTHORIZED SIGNATURE

___________________________

(PRINTED NAME AND TITLE)

___________________________

(DATE)

 

OUR STANDBY L/C NO. SVBSF002602 

 

DATE: DECEMBER 31, 2004

 

ADVICE OF AMENDMENT NUMBER:  2

BENEFICIARY: 

JABIL CIRCUIT, INC. 

30 GREAT OAKS BOULEVARD 

SAN JOSE, CALIFORNIA 95119 

 

APPLICANT: 

REDBACK NETWORKS, INC. 

300 HOLGER WAY 

SAN JOSE, CALIFORNIA 95134 

LADIES AND GENTLEMEN,

WE HAVE BEEN REQUESTED TO AMEND THE ABOVE REFERENCED LETTER OF CREDIT AS FOLLOWS:

THE EXPIRATION DATE HAS BEEN EXTENDED FROM JANUARY 5, 2005 TO JUNE 30, 2005.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

THIS AMENDMENT IS AN INTEGRAL PART OF THE ORIGINAL LETTER OF CREDIT AND MUST BE ATTACHED THERETO.

SILICON VALLEY BANK,

__________________________________________________

AUTHORIZED SIGNATUREAUTHORIZED SIGNATUREAmendment No. 5 and Joinder to Master Repurchase Agreement

 Exhibit 10.1 
  
 Execution Copy 
  
 AMENDMENT NO. 5 AND JOINDER 
 TO
MASTER REPURCHASE AGREEMENT 
  
 Amendment No. 5 and Joinder
dated December 31, 2004 (this “Amendment”), among MERRILL LYNCH MORTGAGE CAPITAL INC. (“Buyer”), HOMEBANC MORTGAGE CORPORATION (“Seller”) and HOMEBANC CORP. (“HomeBanc Corp.”).

  
 RECITALS 
  
 The Buyer and the Seller are parties to that certain Master Repurchase
Agreement, dated as of February 27, 2002, as amended by Amendment No. 1, dated as of April 15, 2003, Amendment No. 2, dated as of May 28, 2003, Amendment No. 3, dated as of February 25, 2004 and Amendment No. 4, dated as of June 7, 2004 (the
“Existing Repurchase Agreement”; as amended by this Amendment, the “Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Repurchase
Agreement. 
  
 The Buyer and the Seller have agreed, subject to
the terms and conditions of this Amendment, that the Existing Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Repurchase Agreement. 
  
 The Buyer and the Seller have agreed that the Existing Repurchase Agreement be amended to permit HomeBanc Corp. to become an
additional Seller under the Existing Repurchase Agreement and to enter into Transactions with respect to Mortgage Loans. 
  
 Accordingly, the Buyer and the Seller hereby agree, in consideration of the mutual promises and mutual obligations set forth herein, that the Existing
Repurchase Agreement is hereby amended, as follows: 
  
 SECTION
1. Agreement and Joinder with respect to HomeBanc Corp.. HomeBanc Corp. hereby agrees to all of the provisions of the Existing Repurchase Agreement, and effective on the date hereof, becomes a party to the Repurchase Agreement, as Seller,
with the same effect as if HomeBanc Corp. were an original signatory to the Existing Repurchase Agreement. All references to Seller in the Repurchase Agreement, except those made in the first sentence of Section 11(d) and those made in Sections
11(x) and 12(y), shall be deemed to include HomeBanc Corp.. 
  
 SECTION 2. Definitions. 
  
 2.1 Section 2 of the
Existing Repurchase Agreement is hereby amended by adding the following language at the end of the definition of “Market Value”: 
  
 (p) when the Purchase Price for such Purchased Mortgage Loan is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all Non-Owner
Occupied Mortgage Loans that are Purchased Mortgage Loans exceeds $15,000,000. 

 2.2 Section 2 of the Existing Repurchase Agreement is hereby amended by adding the following definitions
of “Adjusted Tangible Net Worth”, “Cash Equivalents”, “HomeBanc Corp.”, “Liquidity”, “Non-Owner Occupied Mortgage Loan”, “Non-Recourse Indebtedness”, “REIT”, “Total
Liabilities” and “Total Recourse Liabilities”: 
  
 “Adjusted Tangible Net Worth” shall mean shall mean Tangible Net Worth plusm the amount of any intercompany receivables from Seller. 
  

“Cash Equivalents” shall mean (a) securities with maturities of 90 days or less from the date of acquisition issued or fully
guaranteed or insured by the United States Government or any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of 90 days or less from the date of acquisition and overnight bank deposits of Buyer or of any
commercial bank having capital and surplus in excess of $500,000,000, (c) repurchase obligations of Buyer or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than seven days with respect
to securities issued or fully guaranteed or insured by the United States Government, (d) commercial paper of a domestic issuer rated at least A 1 or the equivalent thereof by S&P or P 1 or the equivalent thereof by Moody’s and in either
case maturing within 90 days after the day of acquisition, (e) securities with maturities of 90 days or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are
rated at least A by S&P or A by Moody’s, (f) securities with maturities of 90 days or less from the date of acquisition backed by standby letters of credit issued by Buyer or any commercial bank satisfying the requirements of clause (b) of
this definition or (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition. 
  
 “HomeBanc Corp.” shall mean HomeBanc Corp. 
  
 “Liquidity” means the HomeBanc Corp.’s unencumbered cash and Cash Equivalents plus (x) ninety-five
percent (95%) of the value of performing Mortgage Loans owned by HomeBanc Corp and held for sale or investment that (i) are not subject to a Transaction and have not been pledged to the any other Person; (ii) are not held in a custodial account by
any of HomeBanc Corp’s warehouse lenders; and (iii) which are otherwise unencumbered. 
  
 “Non-Owner Occupied Mortgage Loan” shall mean Mortgage Loan secured by a Mortgaged Property which is not occupied by the related owner. 
  
 “Non-Recourse Indebtedness” shall mean all Indebtedness of Homebanc Corp. and its Subsidiaries that is
non-recourse to such party, including any term securitization. 
  

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 “REIT” shall mean a real estate investment trust, as defined in Section 856 of the Code.

  
 “Total Liabilities” means all liabilities of
Homebanc Corp. and its Subsidiaries, including Non-Recourse Indebtedness, as, in accordance with GAAP, are reflected on Homebanc Corp.’s consolidated balance sheet, and also including all contingent liabilities and obligations (including
recourse servicing, recourse sale and other recourse obligations, and guarantee, indemnity and mortgage loan repurchase obligations.) 
  
 “Total Recourse Liabilities” means Total Liabilities minus Non-Recourse Indebtedness. 
  
 SECTION 3. Representations and Warranties: 
  
 3.1 Section 11(j) of the Existing Repurchase Agreement is hereby amended by
adding the following language at the end thereof: 
  
 HomeBanc
Corp. has not engaged in any material “prohibited transactions” as defined in Section 857(b)(6)(B)(iii) and (C) of the Code. HomeBanc Corp. for its current “tax year” (as defined in the Code) is entitled to a dividends paid
deduction under the requirements of Section 857 of the Code regarding any dividends paid by it with respect to each such year for which it claims a deduction in its Form 1120-REIT filed with the United States Internal Revenue Service for such year.

  
 3.2 Section 11(d) of the Existing Repurchase Agreement is
hereby amended by deleting the first sentence thereof in its entirety and replacing it with the following language: 
  
 HomeBanc Mortgage Corporation is a corporation duly organized, validly existing and in good standing under the laws of Delaware. HomeBanc Corp. is a
corporation duly organized, validly existing and in good standing under the laws of Georgia. 
  
 3.3 Section 11(h) of the Existing Repurchase Agreement is hereby amended by deleting the existing section in its entirety and replacing it with the following language: 
  
 (h) Chief Executive Office/Jurisdiction of Organization. During the
four months immediately preceding July 1, 2001 and on the Effective Date, The HomeBanc Mortgage Corporation’s chief executive office is, and has been, located at 5555 Glen Ridge Connector, Suite 800, Atlanta GA, 30342. HomeBanc Mortgage
Corporation’s jurisdiction of organization is Delaware. During the four months immediately preceding November 30, 2004 and on the Effective Date, HomeBanc Corp.’s chief executive office is, and has been, located at 2002 Summit Blvd, Suite
100, Atlanta GA, 30319. HomeBanc Corp.’s jurisdiction of organization is Georgia. 
  

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 SECTION 4. Covenants: 
  
 4.1 Section 12(b) of the Existing Repurchase Agreement is hereby amended by adding at the end thereof as subsection (iii)
the following language: 
  
 (iii) HomeBanc Corp. shall not engage
in any material “prohibited transactions” as defined in Section 857(b)(6)(B)(iii) and (C) of the Code. HomeBanc Corp. for its current “tax year” (as defined in the Code) is entitled to a dividends paid deduction under the
requirements of Section 857 of the Code regarding any dividends paid by it with respect to each such year for which it claims a deduction in its Form 1120-REIT filed with the United States Internal Revenue Service for such year.” 
  
 4.2 Section 12(d)(iii) of the Existing Repurchase Agreement is hereby amended
by deleting the existing section in its entirety and replacing it with the following language: 
  
 (iii) Within forty-five (45) days after the end of each calendar month, the unaudited balance sheets of the Seller as at the end of such period and the
related unaudited consolidated statements of income and retained earnings and of cash flows for the Seller for such period and the portion of the fiscal year through the end of such period, subject, however, to year end adjustments; 
  
 4.3 Section 12(j) of the Existing Repurchase Agreement is hereby amended by
deleting the existing section and replacing it with the following language: 
  
 (i) Maintenance of Tangible Net Worth. Homebanc Mortgage Corporation shall maintain a Tangible Net Worth of not less than $10,000,000. 
  
 (ii) Maintenance of Adjusted Tangible Net Worth for HomeBanc Corp.. HomeBanc Corp. shall maintain an
Adjusted Tangible Net Worth (on a consolidated basis with its Subsidiaries) on not less than One Hundred Eighty Million Dollars ($180,000,000) plus an amount equal to eighty-five percent (85%) of the net proceeds realized by HomeBanc Corp from
equity offerings after its initial public offering. 
  
 (iii) Total Recourse Liabilities to Adjusted Tangible Net Worth Ratio. HomeBanc Corp. shall not permit the ratio of: (x) the Total Recourse Liabilities of HomeBanc Corp. and its Subsidiaries, on a consolidated basis; to (y) the
Adjusted Tangible Net Worth of HomeBanc Corp. and its Subsidiaries, on a consolidated basis; to exceed 6.00:1.00 as of the end of any calendar month or any of HomeBanc Corp.’s fiscal quarters or fiscal years. 
  
 (iv) Total Liabilities to Adjusted Tangible Net Worth
Ratio. Permit the ratio of: (x) the Total Liabilities of HomeBanc Corp. and its Subsidiaries, on a consolidated basis; to (y) the Adjusted Tangible Net Worth of HomeBanc Corp. and its Subsidiaries, on a consolidated basis, to exceed 20.00:1.00
as of the end of any calendar month or any of HomeBanc Corp.’s fiscal quarters or fiscal years. 
  

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 (v) Liquidity. HomeBanc Corp. shall ensure that, as of the end of each calendar
month, it has Liquidity in an amount not less than $20,000,000. 
  
 SECTION 5. Events of Default. Section 13 of the Existing Repurchase Agreement is hereby amended by adding the following language as subsection (k) and (l): 
  
 (k) The failure of HomeBanc Corp. to at any time continue to be (i) qualified as a real estate investment trust as defined
in Section 856 of the Code and (ii) entitled to a dividend paid deduction under Section 857 of the Code regarding dividends paid by it with respect to each taxable year for which it claims a deduction on its Form 1120 – REIT filed with the
United States Internal Revenue Service for such year, or the entering into by HomeBanc Corp. of any material “prohibited transactions” as defined in Sections 857(b) and 856(c) of the Code. 
  
 (l) The failure of HomeBanc Corp. to satisfy any of the following asset or
income tests: 
  
 a) At the close of each taxable year, at least
75 percent of HomeBanc Corp.’s gross income consists of (i) “rents from real property” within the meaning of Section 856(c)(3)(A) of the Code, (ii) interest on obligations secured by mortgages on real property or on interests in real
property, within the meaning of Section 856(c)(3)(B) of the Code, (iii) gain from the sale or other disposition of real property (including interests in real property and interests in mortgages on real property) which is not property described in
Section 1221(a)(1) of the Code, within the meaning of Section 856(c)(3)(C) of the Code, (iv) dividends or other distributions on, and gain (other than gain from “prohibited transactions” within the meaning of Section 857(b)(6)(B)(iii) of
the Code) from the sale or other disposition of, transferable shares (or transferable certificates of beneficial interest) in other qualifying REITs within the meaning of Section 856(d)(3)(D) of the Code, and (v) amounts described in Sections
856(c)(3)(E) through 856(c)(3)(I) of the Code. 
  
 b) At the
close of each taxable year, at least 95 percent of HomeBanc Corp.’s gross income consists of (i) the items of income described in paragraph 1 hereof (other than those described in Section 856(c)(3)(I) of the Code), (ii) gain realized from the
sale or other disposition of stock or securities which are not property described in Section 1221(a)(1) of the Code, (iii) interest, (iv) dividends, and (v) income derived from payments to HomeBanc Corp. on interest rate swap or cap agreements,
options, futures contracts, forward rate agreements and other similar financial instruments entered into to reduce the interest rate risks with respect to any indebtedness incurred or to be incurred to acquire or carry real estate assets, or gain
from the sale or other disposition of such an investment as described in section 856(c)(5)(G), in each case within the meaning of Section 856(c)(2) of the Code. 
  

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 c) At the close of each quarter of HomeBanc Corp.’s taxable years, at least 75 percent of the value
of HomeBanc Corp.’s total assets (as determined in accordance with Treasury Regulations Section 1.856-2(d)) has consisted of and will consist of real estate assets within the meaning of Sections 856(c)(4) and 856(c)(5)(B) of the Code, cash and
cash items (including receivables which arise in the ordinary course of HomeBanc Corp.’s operations, but not including receivables purchased from another person), and Government Securities; unless (1) the test described in this paragraph (c)
has been satisfied as of the end of the immediately preceding quarter of HomeBanc Corp.’s taxable year, (2) such test is not satisfied as the result of the acquisition of a security or property during the current quarter of HomeBanc
Corp.’s taxable year, (3) HomeBanc Corp. delivers within 10 days of the end of the current quarter of HomeBanc Corp.’s taxable year to Buyer notice that such test is not satisfied, (4) such test is satisfied within the 30 day period as
provided under section 856(c)(4), and (5) an officer of HomeBanc Corp. certifies as to such satisfaction within such 30 day period, and provides documentation, reasonably satisfactory to Buyer evidencing such satisfaction. 
  
 d) At the close of each quarter of each of HomeBanc Corp.’s taxable
years, (i) not more than 25 percent of HomeBanc Corp.’s total asset value will be represented by securities (other than those described in paragraph 3), (ii) not more than 20 percent of HomeBanc Corp.’s total asset value will be
represented by securities of one or more taxable HomeBanc Corp. subsidiaries, and (iii) (A) not more than 5 percent of the value of HomeBanc Corp.’s total assets will be represented by securities of any one issuer (other than Government
Securities and securities of taxable REIT subsidiaries), and (b) HomeBanc Corp. will not hold securities possessing more than 10 percent of the total voting power or value of the outstanding securities of any one issuer (other than Government
Securities, securities of taxable REIT subsidiaries, and securities of a qualified REIT subsidiary within the meaning of Section 856(i) of the Code); unless (1) the tests described in this paragraph (d) have been satisfied as of the end of the
immediately preceding quarter of HomeBanc Corp.’s taxable year, (2) any of the tests described in this paragraph (d) is not satisfied as the result of the acquisition of a security or property during the current quarter of HomeBanc Corp.’s
taxable year, (3) HomeBanc Corp. delivers within 10 days of the end of the current quarter of HomeBanc Corp.’s taxable year to Buyer notice that such test is not satisfied, (4) such test is satisfied within the 30 day period as provided under
section 856(c)(4), and (5) an officer of HomeBanc Corp. certifies as to such satisfaction within such 30 day period, and provides documentation, reasonably satisfactory to Buyer evidencing such satisfaction.” 
  
 SECTION 6. Joint and Several Obligations. Each of Seller and HomeBanc
Corp. (the “Joint Sellers”) shall be jointly and severally liable for the full, complete and punctual performance and satisfaction of all obligations of either Joint Seller under the Repurchase 
  

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 Agreement. Accordingly, each Joint Seller waives any and all notice of creation, renewal, extension or accrual of any of
the Obligations and notice of or proof of reliance by Buyer upon such Joint Seller’s joint and several liability. Each Joint Seller waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon such
Joint Seller with respect to the Obligations. When pursuing its rights and remedies hereunder against either Joint Seller, Buyer may, but shall be under no obligation, to pursue such rights and remedies hereunder against either Joint Seller or any
other Person or against any collateral security for the Obligations or any right of offset with respect thereto, and any failure by Buyer to pursue such other rights or remedies or to collect any payments from such Joint Seller or any such other
Person to realize upon any such collateral security or to exercise any such right of offset, or any release of such Joint Seller or any such other Person or any such collateral security, or right of offset, shall not relieve such Joint Seller of any
liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of Buyer against such Joint Seller. 
  
 SECTION 7. Address for Notices. HomeBanc Corp.’s address for notices is 2002 Summit Blvd, Suite 100, Atlanta,
Georgia 30319, Attention: Treasurer, Telecopier No.: 404-705-7915, Telephone No: 404-459-7720. 
  
 SECTION 8. Conditions Precedent. This Amendment shall become effective as of November 30, 2004 (the “Amendment Effective Date”), subject to the satisfaction of the following conditions
precedent: 
  
 8.1 Delivered Documents. On the date
hereof, the Buyer shall have received the following documents, each of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered by duly authorized officers of the Buyer, the Seller and HomeBanc Corp.; 
  
 (b) Amendment No. 1 and Joinder to the Custodial Agreement,
executed and delivered by duly authorized officers of the Buyer, Seller, HomeBanc Corp. and the Custodian; 
  
 (c) Amendment No. 1 and Joinder to the Collection Account Control Agreement, executed and delivered by duly authorized officers of the
Buyer, Seller, HomeBanc Corp. and Bank; 
  
 (d)
Evidence that all other actions necessary, or in the opinion of Buyer, desirable to perfect and protect Buyer’s interest in the Purchased Mortgage Loans and other Repurchase Assets have been taken, including, without limitation, UCC searches
and duly authorized and filed Uniform Commercial Code financing statements on Form UCC 1 with respect to HomeBanc Corp.; 
  
 (e) A favorable written opinion of counsel to Seller and HomeBanc Corp., dated as of the date hereof (which shall include, without
limitation, creation and perfection of the security interests created herein, corporate and enforceability opinions related to the execution of this Amendment); 
  

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 (f) A good standing certificate and certified copies of the articles of incorporation and
the by-laws (or equivalent documents) of HomeBanc Corp. and of all corporate or other authority for HomeBanc Corp. with respect to the execution, delivery and performance of this Amendment and the Repurchase Agreement and each other document to be
delivered by HomeBanc Corp. from time to time in connection herewith (and the Buyer may conclusively rely on such certificate until it receives notice in writing from HomeBanc Corp. to the contrary); 
  
 (g) such other documents as the Buyer or counsel to the
Buyer may reasonably request. 
  
 SECTION 9. Representations
and Warranties. The Seller and HomeBanc Corp. each hereby represents and warrants to the Buyer that it is in compliance with all the terms and provisions set forth in the Existing Repurchase Agreement on its part to be observed or performed, and
that no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 11 of the Existing Repurchase Agreement. 
  
 SECTION 10. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Repurchase
Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms. 
  
 SECTION 11. Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall
be an original and all of which taken together shall constitute one and the same instrument. 
  
 SECTION 12. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF. 

 
 [SIGNATURE PAGE FOLLOWS] 
  

 -8- 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written. 
  

					
	 Buyer:
	 	 MERRILL LYNCH MORTGAGE CAPITAL INC.,
 as Buyer

			
	 	 	By:	 	 /s/ James Cason

	 	 	Name:	 	 James Cason

	 	 	Title:	 	 Vice President

		
	 Seller:
	 	 HOMEBANC MORTGAGE CORPORATION,
 as Seller

			
	 	 	By:	 	 /s/ James L. Krakau

	 	 	Name:	 	 James L. Krakau

	 	 	Title:	 	 Senior Vice President

		
	 HomeBanc Corp.:
	 	 HOMEBANC CORP.,
 as
Seller

			
	 	 	By:	 	 /s/ James L. Krakau

	 	 	Name:	 	 James L. Krakau

	 	 	Title:	 	 Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]