Document:

ex10-10.htm

 

[***] Represents information which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

 

Prototype Agreement

 

 

This prototype agreement and related Schedules (the “Agreement”) is entered into effective as of February 6, 2012 ("Effective Date") by and between Flux Power, Inc. (“Flux”), with a principal place of business located at 2240 Auto Park Way Escondido, CA 92029, and NACCO Materials Handling Group, Inc. (“NMHG”), with a principal place of business located at 4000 N.E. Blue Lake Road Fairview OR 97024, hereinafter referred together as (“Parties”).

 

 

RECITALS

WHEREAS, Flux develops and supplies energy storage systems and products to the market;

WHEREAS, NMHG develops and supplies electric forklift trucks and similar applications to the marketplace;

WHEREAS, NMHG wishes to engage Flux to develop a custom version of Flux’s energy storage system that can drop-in to NMHG’s electric forklift trucks;

WHEREAS, NMHG wishes to engage Flux to develop interfaces between NMHG’s truck control and battery charger management hardware and software and Flux’s energy storage system and products; and

WHERES, NMHG and Flux wish to memorialize a framework for the deliverables to be provided and negotiate an agreement to govern distinct components of their overall relationship.

NOW THEREFORE, for good and valuable consideration the sufficiency of which is hereby acknowledged, the parties agree to the following:

 

ARTICLE 1.0 DEFINITIONS

 

	
1.1  

	
“Background Technology” of a Party means all Intellectual Property that (a) is (i) owned or licensed by such Party and (ii) is in existence in electronic or written form on or prior to the effective date or (b) is developed, acquired, or licensed by such Party after the effective date and relates to the Business of NMHG or Flux ESS respectively.

 

	
1.2  

	
The “Business of NMHG” shall mean the business of designing, engineering, manufacturing and selling materials handling equipment and components thereof, including but not limited to lift trucks, warehouse lift trucks, counterbalanced lift trucks and large capacity cargo and container handling lift trucks.

 

	
1.3  

	
“NMHG Products” means the materials handling equipment and components thereof (including a battery charger, Software Interface and not including Flux ESS or Flux’s Background Technology), and further including but not limited to lift trucks, warehouse lift trucks, counterbalanced lift trucks and large capacity cargo and container handling lift trucks.

 

 

Page 1 of 21                                                         Confidential                      10/5/2012

  

  

  

 

	
1.4  

	
“Battery Pack Design” means the specific external package design specified in the Deliverables for the use in NMHG Products or related interconnects between Flux’s ESS and NMHG’s Products to the extent they are developed under this Agreement but does not include the Intellectual Property, technology or design of Flux’s ESS or Flux’s Background Technology.

 

	
1.5  

	
 “Deliverables” means any physical deliverables specifically purchased by NMHG in an applicable Schedule, Battery Pack Design and Software Interface that Flux will deliver to NMHG during or at the completion of the performance of each Schedule. Deliverables shall be provided to NMHG in accordance with each Schedule and shall conform to the specifications set forth therein;

 

	
1.6  

	
 “Flux ESS” means Flux’s energy storage systems, technology, know-how and related Intellectual Property and solutions to power vehicles, prototypes, products and solutions including but not limited to lithium-ion battery cells, battery balancing boards, battery control module, battery interconnects, power distribution unit, DC/DC converter, software, firmware, enclosures and any additional products directly related to Flux’s Background Technology and specifically does not include NMHG’s Background Technology;

 

	
1.7  

	
“Intellectual Property” means all algorithms, apparatus, circuit designs and assemblies, databases and data collections, designs, diagrams, documentation, drawings, flow charts, formulae, ideas and inventions (whether or not patentable or reduced to practice), know-how, materials, marketing and development plans, marks (including brand names, product names, logos, and slogans), methods, models, network configurations and architectures, procedures, processes, protocols, schematics, software code (in any form including source code and executable or object code), specifications, subroutines, techniques, tools, uniform resource identifiers, user interfaces, web sites, works of authorship, and other forms of technology and intellectual property.

 

	
1.8  

	
“Intellectual Property Rights” means worldwide common law and statutory rights associated with (i) patents and patent applications; (ii) works of authorship, including mask work rights, copyrights, copyright applications, copyright registrations and "moral" rights; (iii) the protection of trade and industrial secrets and confidential information; (iv) other proprietary rights relating to intangible intellectual property (specifically including trademarks, trade names and service marks); (v) analogous rights to those set forth above; and (vi) divisions, continuations, renewals, reissuances and extensions of the foregoing (as applicable) now existing or hereafter filed, issued or acquired.

 

	
1.9  

	
“PCR” means a mutual written agreement by Parties’ management of a change of Deliverables using Flux’s project change request form.

 

1.10  “NMHG’s Control Unit” means any software, firmware or hardware that controls the operation of NMHG’s Products

 

1.11  “Schedule” means the exhibits to this agreement that further define the Deliverables;

 

	
1.12  

	
“Software Interface” means the software program that specifically developed under this Agreement that provides a logical interface and communication between Flux’s ESS and NMHG’s Control Unit and does not mean any, hardware, software or firmware of Flux’s ESS or Background Technology.

 

 

ARTICLE 2.0 PERFORMANCE OF SERVICES

 

	
2.1  

	
Flux agrees to provide Deliverables for NMHG pursuant to the terms and conditions set forth in this Agreement and each fully executed Schedule that references this Agreement. At a minimum, Schedules shall include details of the Deliverables, estimated dates the Deliverables should be made available and estimated costs to NMHG of providing such Deliverables.

 

 

Page 2 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

	
2.2  

	
Flux agrees to use best efforts to provide the Deliverables associated in each Schedule.  Unless agreed upon in a Schedule Flux shall not be penalized for late Deliverables.  In the event Deliverables are not met or in the event Deliverables are late the Parties agree to negotiate a cure period in good faith.

 

	
2.3  

	
When applicable NMHG shall use best efforts to assist Flux in providing Deliverables, which may include but is not limited to access to NMHG’s facilities, personnel, and NMHG Products.

 

	
2.4  

	
Parties agree that due to various reasons and often outside of the control of Parties the scope, types and schedule of the Deliverables may change.  Changes requested by NMHG shall be made using PCR and are subject to additional fees and costs.

 

 

ARTICLE 3.0 COSTS, INVOICING AND PAYMENTS

	
3.1

	
Upon pre-approval, which shall not be unreasonably denied, NMHG agrees to reimburse Flux for any out-of-pocket expenses incurred in the event travel is required.

	
3.2

	
NMHG shall pay Flux the fees set forth in an applicable Schedule in accordance with the Schedule’s payment terms therein. In the case of fees due not specifically identified in an applicable Schedule (i.e. travel expenses) Flux shall provide a true and correct invoice to NMHG and NMHG agrees that all fees shall be paid within thirty (30) days from the date of such invoice.

 

 

 

ARTICLE 4.0 CONFIDENTIALITY & INTELLECTUAL PROPERTY

 

	
4.1

	
Each Party shall have and retain exclusive ownership of its Background Technology, including any Intellectual Property Rights therein. All Intellectual Property discovered, created or developed under, or in connection with, this Agreement that directly relates to Flux’s ESS and Flux’s Background Technology shall be and remain the sole property of Flux and its assigns. All Intellectual Property discovered, created or developed under, or in connection with, this Agreement that directly relates to NMHG Background Technology or the NMHG Products shall be and remain the sole property of NMHG and its assigns. To the extent that the Deliverables include a Software Interface and a Battery Pack Design, Flux hereby grants to NMHG the irrevocable, perpetual, fully paid, non-exclusive, worldwide, right and license to use, execute, sell, reproduce, display, perform, distribute copies of, and prepare derivative works of the Software Interface and Battery Pack Design.

 

This Agreement shall in no way limit Flux’s right to market, sell and obtain Intellectual Property protection for Flux’s ESS or the Flux Background Technology and Flux reserves the right to assert any claims based upon any resulting legal protection of such Intellectual Property Rights.  Nothing in this Agreement or any Schedule shall be deemed to be a transfer or license by NMHG to Flux of any NMHG Background Technology.

 

	
4.2

	
Except as provided in this Agreement, neither party may use, reproduce, distribute or disclose Confidential Information it receives from the other party under this Agreement, without the prior written authorization of the disclosing party. Each party must hold in confidence Confidential Information received from the other party and must protect the confidentiality thereof with the same degree of care that it exercises with respect to its own information of like importance, but in no event less than reasonable care, for a period of (2) years from the date of receipt of the Confidential Information).  “Confidential Information” shall mean information which if disclosed (i) in tangible form, is clearly marked as "confidential" or  "proprietary" at the time of disclosure, or (ii) in intangible form (such as orally or visually), the disclosing party identifies as "confidential" or "proprietary" at the time of disclosure to the receiving party within thirty (30) days of disclosure.  Notwithstanding the foregoing marking requirements, the parties agree that technical information regarding prototypes, Flux’s ESS and either party’s Background Technology shall always be deemed and considered Confidential Information.

 

 

Page 3 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

	
4.3

	
During the term of this Agreement and for a period of two (2) years thereafter, neither party shall without the prior written consent of the other party, directly solicit any of the other party’s employees for employment; provided, however, that the foregoing restriction shall not apply to a general solicitation for application for employment made through advertising, web sites or other mediums not involving the direct targeted solicitation of a specific person.

 

 

ARTICLE 5.0 General

 

	
5.1

	
Either party may terminate this Agreement and/or related Schedule for convenience with a sixty (60) day written notice.  In the event of termination Flux shall use reasonable efforts to scale down any work on this Agreement or related Schedule and provide an itemized invoice of all work performed and expenses incurred up to the date of termination and NMHG agrees to pay said invoice within thirty (30) days.

 

 

	
5.2

	
With respect to disputes, the parties agree that in the event of any dispute or difference arising out of or relating to this Agreement, except for breach in NMHG’s lack of payment, the parties hereto shall use their best endeavors to settle such disputes or differences.  To this effect, they shall consult and negotiate with each other, in good faith and understanding of their mutual interest, to reach a just and equitable solution within a period of thirty (30) days, and then the disputes or differences shall be finally settled by arbitration administered by the American Arbitration Association.  This Agreement and all matters arising thereunder shall be governed by the laws of the state of California applicable therein without giving effect to the rules respecting conflict of law.

 

 

	
5.3

	
A party is not liable under this Agreement for non-performance caused by events or conditions beyond that party's control, if the party makes reasonable efforts to perform.

 

 

	
5.4

	
LIMITATION OF LIABILITY

 

EXCEPT AS EXPRESSLY SET FORTH ABOVE, NO OTHER WARRANTIES ARE EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND FLUX EXPRESSLY DISCLAIMS ALL WARRANTIES NOT EXPRESSLY STATED HEREIN.  THE WORK PERFORMED UNDER THIS AGREEMENT IS FOR THE PRODUCTION OF PROTOTYPE UNITS

 

IN NO EVENT SHALL FLUX BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, LOSS OF BUSINESS, REVENUE, PROFITS, GOODWILL, USE, DATA OR OTHER ECONOMIC ADVANTAGE) ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER IN BREACH OF CONTRACT, BREACH OF WARRANTY OR IN TORT, INCLUDING NEGLIGENCE, AND EVEN IF THAT PARTY HAS BEEN ADVISED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.

 

 

Page 4 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

	
5.5

	
Flux may assign or delegate portions or the entirety of the Deliverables to 3rd parties, subcontractors, contract manufacturers and consultants.

 

	
5.6

	
Except for agreements relating to confidentiality, this Agreement constitutes the entire agreement between NMGH and Flux with respect to the subject matter hereof and shall bind Parties and their perspective parents, subsidiaries and affiliates.  Furthermore this Agreement supersedes all prior agreements, understandings and proposals, whether written or oral. This Agreement may not be amended or modified except by a writing signed by both parties. No oral statement of any person will, in any manner or degree, modify or otherwise effect the terms and provisions of this Agreement.  Except for terms relating to Intellectual Property Rights, the terms and conditions of a related Schedule shall control if and when there is a conflict with any of the terms or conditions of this Agreement.

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their duly authorized representatives and have made effective as of the Effective Date.

 

	
Flux Power, Inc.

 

	
NACCO Materials Handling Group, Inc.

 

	
By:   /s/ Craig Miller                      

 

	
By:  /s/ Rajiv K. Prasad           

	
Name:  Craig Miller                      

 

	
Name:Rajiv K. Prasa             

	
Title: VP, Director of Legal Affairs

 

	
Title:VP Global Product Development

	
Date:    2-20-2012

	
Date:    Feb 22, 2012

	  	  

////

 

 

Page 5 of 21                                                         Confidential                      10/5/2012

 

  

  

  

Exhibit A

Schedule No. 1

To

Prototype Agreement

 

This Schedule No. 1 (“Schedule”) to the Prototype Agreement (the “Agreement”) entered into effective as of February 6, 2012 by and between Flux Power, Inc. (“Flux”), and NACCO Materials Handling Group, Inc. is entered into and effective by the parties hereto as of Feb 22, 2012 (“Schedule 1 Effective Date”).  This Schedule is subject to the terms and conditions of the Agreement.

 

 

(Remainder of page intentionally left blank)

 

 

 

 

Page 6 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

 

LiFePO4 Energy Storage System

 

 

 

Prepared For NACCO Materials Handling Group

 

 

CONFIDENTIAL

 

 

Version                                       1.00

Version Date                              2/20/12

 

 

 

Page 7 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

	
Introduction

 

 

	
Purpose and Scope

 

This Schedule defines Deliverables to be provided by Flux for NMHG in accordance with the following project scope.

The Parties agree to the following business objectives and goals, with contingencies are as follows:

	
1.  

	
In the event the parties wish to go forward with the manufacture and distribution of Flux ESS for NMHG Products such will require:

	
a)  

	
A successful performance demonstration which means meeting or exceeding existing lead acid battery performance under a full rage of NMHG Products in various working environments. This is to be demonstrated through the testing of Flux ESS for NMHG Products prototypes.  The Parties understand that the requirement defined herein are designed to describe attributes only and may not fully represent all of NMHG’s customer expectations; and

	
b)  

	
Viable economic performance, to include initial Flux ESS product costs and total operational costs.  Saving must be compelling enough to entice current NMHG customers that use lead-acid batteries to change to the Flux ESS for NMHG Products.  The January 2012 economic performance point requires a cost less than or equal to $[***] per W-hr for the Flux ESS based on the volume of [***] packs per year at a consistent cell specification.  NMHG shall either confirm or update the economic performance point on a 6-month schedule.

	
c)  

	
Mutual approval of an NMHG Master Supply Agreement (“MSA”), which both parties agree to negotiate in good faith.

	
d)  

	 

	
e)  

	
Upon moving forward with manufacture and distribution of Flux ESS for NMHG Products, NMHG will:

	
f)  

	
offer validated Flux ESS for exclusive non lead-acid energy source sale throughout NMHG’s global dealer distribution network thorough June 2016; and

	
g)  

	
Provide product introduction / order readiness to NMHG dealers NLT December, 2012

 

	
Reference Material

 

	
[1] 

	
SOW Jan 2012.doc, NMHG, Ref: NA, Version: NA, Dated: NA

 

	
[2] 

	
Scope_Draft_01192012, Flux Power, Ref: NA, Version: NA, Dated: NA

 

	
[3] 

	
Non-Disclosure Agreement, Flux Power, Ref: NA, Version: NA, Dated December 1, 2011

 

 

The foregoing reference materials are provided for general informational purposes only, and the reference materials shall not be construed to be a requirement for any Flux Deliverable unless specifically identified as a requirement in the acceptance test plan or set forth herein.

 

 

Page 8 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

	
Acronyms

 

	
Term

	
Definition

	
ARO

	
After Receipt of Order.

	
BCM

	
Battery Control Module

	
BMSM

	
Battery Management System Module

	
CAN

	
Controller Area Network

	
Flux ESS

	
Flux’s Energy Storage System

	
NMHG

	
NACCO Material Handling Group

	  	  

 

	
Deliverables Description

 

 

	
Project Background

 

NMHG intends to evaluate and test Flux’s ESS to determine whether it would adequate for integration into NMHG Products.  Deliverables shall be designed to retrofit some of NMHG Product for testing and validation.

 

As a part of Deliverables Flux will provide a solution using Flux ESS and current intellectual property and technology to provide a prototype energy storage systems that meets NMHG specifications and drawings to integrate into their existing NMHG Products. As a part of the Schedule, Flux will build at a minimum of three (3) complete working prototypes of Flux’s ESS for NMHG Products.

 

NMHG Project Description

 

NMHG’s objective is to evaluate and test functional prototype Flux ESS’s to work with NMHG Products and support their series/parallel power strategy using Flux’s ESS.

 

NMHG’s goal is to have the first Flux ESS prototypes available for installation and testing by _April 9th 7 weeks post Schedule Effective Date, as defined in 1.1.2 M.2.  To achieve this goal, Parties must lock down NMHG ESS specifications by the Schedule Effective Date. February 20th.

 

	
Flux Power Services Project Description

 

Flux will work with NMHG and third parties to provide and unit test the prototype of Flux ESS.

 

	
Contact Information

 

The following is an initial list of contacts for this Project.

	
Name

	
Title

	
Phone

	
Email

	
Ed Munar

	
VP Business Development

	
877-505-3589

	
ed@fluxpwr.com

	
Alex Smith

	
Senior Applications Engineer

	
877-505-3589 ext 107

	
alex@fluxpwr.com

	
Brian Gallagher

	
Project Manager

	
877-505-3589

	
brian@fluxpwr.com

	
Laurence Dunn

	
Chief Engineer

	
503-721-6244

	
laurence.dunn@nmhg.com

	
Mark Stonick

	
Global Strategic Technology Procurement

	
503-721-6149

	
mark.stonick@nmhg.com

	
Roger Penfound

	
Project Manager

	
503-721-6884

	
roger.penfound@nmhg.com

 

 

 

Page 9 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

	
Location of Work Facilities

 

During the course of this Schedule, Flux development resources will be located at selected Flux and NMHG facilities. The location of the resource will be based on optimal delivery of Deliverables. The following is a list of proposed work locations.

 

	
NMHG Facilities

 

	
NACCO Material Handling Group, Inc.

	
Address

	
4000 N.E. Blue Lake Road

	
City

	
Fairview

	
State/Province

	
OR

	
Country

	
USA

	
Postal Code

	
97024-8710

	
Telephone

	
503-721-6205

	
Fax

	
503-721-6200

 

	
Flux Power Facilities

 

	
Flux Power, Inc.

	
Address

	
2240 Auto Park Way

	
City

	
Escondido

	
State/Province

	
CA

	
Country

	
USA

	
Postal Code

	
92029

	
Telephone

	
877-505-3589 (FLUX)

	
Fax

	
760-741-3535

 

 

Page 10 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

	
Statement of Work

 

 

	
System Overview

 

Flux Power will provide prototype Flux ESS for NMHG Products to meet the functions and requirements specified below.

 

	
Energy Storage System (ESS)

 

Flux’s ESS includes but is not limited to lithium-ion battery cells, battery balancing boards, battery control module, battery interconnects, power distribution unit, DC/DC converter (POC) and an enclosure.  The prototype provided to the NMHG will contain each of these major sub-assemblies and they are described below:

 

	
1.  

	
Lithium Battery Cells – [***] battery cells with cell voltage ranges from [***] minimum, [***] nominal and [***] maximum.

 

	
2.  

	
Battery Balancing Boards – Monitors voltage and temperature measurements up to 4 battery cells and performs charge balancing.

 

	
3.  

	
Battery Control Module – Centralize controller for managing and monitoring the ESS’s batteries and controls the charging and system level interfaces.

 

	
4.  

	
Battery Interconnects - Buss bars and wiring.

 

	
5.  

	
Power Distribution Unit – Contactors, fusing, interlocks and battery protection.

 

	
6.  

	
DC/DC Converter – Provides regulated 12V power source by bucking down the ESS’s high voltage from the batteries. (POC)

 

	
7.  

	
Enclosure – Battery box with fastening/attachments and lid.

 

The first prototype Flux ESS design will be a nominal [***] lithium-ion battery [***] utilizing [***] cells arrayed in [***] separate [***] cell groups with independent positive and negative connections brought out to recommended connectors from NMHG.  The Flux ESS will allow either parallel or series connections of the [***] groups of [***] cells such that the NMHG can either be discharged or charged in series or parallel configuration.

The figure below will be assembled in a battery enclosure case designed by NMHG with suggested modifications from Flux.

[***]

Figure 1 – NMHG Enclosure Design

 

	
Work Packages

 

The Deliverables will consist of the following work packages:

 

	
High Level Design

 

Flux will complete a high level design of the Flux ESS for use in NMHG Product prior to the start of detailed hardware design tasks. Specific tasks to be completed by Flux in this High Level Design work package include, but are not limited to:

 

Page 11 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

· Select major critical components and develop high-level hardware block diagram.

 

· Identify long lead or otherwise at-risk components.

 

· Develop preliminary Bill of Materials (BOM).

 

· Prepare a Hardware Design Document.

 

· Review Hardware Design Document with MNHG.

 

This work will be carried out at Flux Power’s Escondido office.

 

	
Mechanical Design Package

 

Flux will design the detailed drawings and assemblies to implement the features of the Flux’s ESS into NMHG Products enclosure and mounting structure. Specific tasks to be completed by Flux in this mechanical design work package include, but are not limited to:

 

	
·  

	
Develop detailed mechanical 2D and 3D drawings into CAD package.

 

	
·  

	
Create detailed Bills of Materials.

 

	
·  

	
Review detailed mechanical designs with NMHG and peers.

 

The work will be carried out at Flux’s Escondido office.

 

	
Electrical / Wiring Design Package

 

Flux will design the detailed electronics wiring and interfaces to implement the features of the Flux ESS into NMHG Products power and communications distribution. Specific tasks to be completed by Flux in the Electrical / Wiring work package include, but are not limited to:

 

	
·  

	
Develop detailed wiring design and enter the design into 2D wiring schematics.

 

	
·  

	
Create detailed Bills of Materials.

 

	
·  

	
Review detailed electronics design with NMHG and peers.

 

The work will be carried out at Flux Power’s Escondido office.

 

	
Hardware Prototyping Support

 

Flux will procure engineering prototype components and fabrication and assembly services for the NMHG Product.  Specific tasks to be completed by Flux in this hardware prototyping work package include, but are not limited to:

 

	
·  

	
Flux will procure components to build engineering prototype electronics and wiring assemblies.

 

	
·  

	
Flux will procure engineering prototype mechanical assemblies for the enclosure from a local quick turn fabrication source or local source provided by NMHG.

 

	
·  

	
Flux will inventory and assembly prototype Flux ESS units and perform functional checkouts.

 

	
·  

	
Flux will provide technician support for troubleshooting and test assistance.

 

This work will be carried out at Flux Power’s Escondido office.

 

	
Engineering Prototype Verification

 

Flux will conduct design verification tasks on engineering prototype Flux ESS units. Specific tasks to be completed by Flux in this engineering verification work package include, but are not limited to:

 

	
·  

	
Assemble and perform functional checkout of Flux ESS units.

 

 

Page 12 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

	
·  

	
Support software/hardware integration and testing.

 

	
·  

	
Test hardware features against design requirements.

 

	
·  

	
Verify fit of prototype of components in Flux ESS enclosure for installation into NMHG Products.

 

This work will be carried out at both Flux’s Escondido office and NMHG’s Fairview office.

 

	
Software development

 

Flux will develop BCM software to provide both internal and external links to interface with prototype Flux ESS units for NMHG Product and demonstrate correct operation.  Flux will perform the following software development tasks:

 

	
·  

	
Establish communication protocols and provide diagnostics.

 

	
·  

	
Unit test all software modules interfacing with BCM.

 

	
·  

	
Update code as issues and defects are uncovered during prototype testing.

 

 

 

	
Acceptance Test

 

Flux Power will develop and document a Test Plan and Acceptance Test Procedure and perform integration testing using the software, prototype electronics and enclosure. Specific tasks to be completed by Flux in this work package include:

 

	
·  

	
Prepare Acceptance Test Plan.

 

	
·  

	
Prepare Acceptance Test Procedure.

 

	
·  

	
Perform Software integration testing.

 

	
·  

	
Perform Functional testing.

 

	
·  

	
Perform Final acceptance testing.

 

 

The work will be carried out at Flux’s Escondido office.  Flux shall use best efforts to design to meet specifications defined herein and provide a test plan identified above but will not be providing testing under this Schedule including but not limited to environmental and life testing.

 

 

Page 13 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

	
Requirements

 

 

	
General Requirements

 

 

	
R.1  

	
Flux ESS shall be operational in a temperature range of [***] deg C to [***] deg C

 

	
R.2  

	
Flux ESS shall be have a storage temperature range of [***] deg C to [***] deg C

 

	
R.3  

	
Flux ESS shall be designed with best design engineering practices to protect from electrical short circuits with the following devices:

 

	
·  

	
Fuses/circuit breakers/contactors/PTC devices and used where appropriate

 

	
·  

	
Surge and preventative protection from key off load during high discharge currents.

 

	
R.4  

	
Flux ESS prototype units shall be designed with best design engineering practices to comply with the following standards:

 

	
·  

	
Thermal Shock: SAE J1455

 

	
·  

	
Humidity: SAE J1455

 

	
·  

	
Salt Spray: SAE J1455

 

	
·  

	
Dust and Moisture (NMHG is responsible for overall case sealing): IEC IP 66 or 68

 

	
·  

	
Emissions: EN 12895

 

	
·  

	
Susceptibility:  EN 12895 [***]

 

	
·  

	
ESD: SAE J1455

 

	
·  

	
Vibration: SAE J1211

 

 

Page 14 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

ESS Requirements

 

 

	
R.5  

	
Flux ESS prototype unit’s case will be powder coated black.

 

	
R.6  

	
Flux ESS prototype units will have the supplied drawings to fabricate a battery case.

 

	
R.7  

	
Flux ESS prototype unit’s BCM will support [***] protocol.

 

	
R.8  

	
Flux ESS prototype unit’s BCM will have a communication’s rate of [***]kbs.

 

	
R.9  

	
Flux ESS prototype unit’s BCM [***]

 

	
R.10  

	
Flux ESS prototype unit’s BCM [***]

 

	
R.11  

	
Flux ESS prototype unit’s communication wiring will be twisted pair and in compliant with SAE J1939.

 

	
R.12  

	
Flux ESS prototype units will utilize battery cables with a minimum size of 4/0

 

	
R.13  

	
Flux ESS prototype units will provide discharge currents up to [***] amps for [***] second durations.

 

	
R.14  

	
Flux ESS prototype unit’s communications connector will be a [***] device as defined in Figure 1.

 

	
R.15  

	
Flux ESS prototype unit’s internal wiring will use [***]

 

	
R.16  

	
Flux ESS prototype unit’s batteries will be capable of minimum charge rate of [***]

 

	
Assumptions

 

The following list shows some of the most important assumptions used in preparing the schedule and estimates for this project. If an Assumption is proved to be false, a cost and/or schedule impact may occur and will be managed as a project change

	
Ref.

	
Assumption

	
 

A.1 

 

	
NMHG will assume responsibility of securing [***]

	
 

A.2 

 

	
NMHG will assume responsibility [***]

	
 

A.3 

 

	
Flux will source lithium-ion battery cells and select preferred source.

	
 

A.4 

 

	
Flux will design and implement battery cell mounting and fastening schemes into Flux ESS prototype units.

 

	
Flux Power Standard Product

 

There will be Flux products and intellectual property used within this statement of work.  The products include but are not limited to Flux ESS, battery control modules (BCM) and battery management system modules (BMSM).

 

 

 

Page 15 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

	
Deliverables

 

 

	
Flux Deliverables

 

The following Deliverables shall be deemed deliverables Flux shall provide to NMHG’s in accordance with the terms of the Schedule.

 

	
Documentation Deliverables

 

Flux will provide a license to use for internal use purpose only but not create derivative works of the following documentation deliverables as a result of the Schedule.

	
Ref.

	
Description

	
Type

	
Format

	
Media

	
Mechanical Hardware Design

	
D.1

	
Top Level Block Diagram

	
—

	
PDF or Visio

	
FTP/email

	
D.2

	
CAD Solid Models

	
—

	
.IGS

	
FTP/email

	
D.3

	
Bill(s) of Materials

	
—

	
MS Excel

	
FTP/email

	
D.4

	
2D Build Prints

	
—

	
PDF

	
FTP/email

	
D.5

	
Assembly Instructions

	
—

	
PDF

	
FTP/email

	
D.6

	
Engineering Change Orders

	
—

	
PDF or MS Word

	
FTP/email

	
Electrical / Wiring Design

	
D.7

	
Electrical wiring schematics

	
—

	
Visio

	
FTP/email

	
D.8

	
Installation Instructions

	
—

	
Text

	
FTP/email

	
D.9

	
Power and Communication Interface Document

	  	
MS Word

	
FTP/email

	
D.10

	
Software Build Release Notes

	
—

	
Text

	
FTP/email

	
Acceptance Test Plan

	
D.11

	
Test Plan Document

	
—

	
MS Word or TRACE

	
FTP/email

	
D.12

	
Acceptance Test Procedure

	
—

	
PDF or TRACE

	
FTP/email

 

 

Page 16 of 21                                                         Confidential                      10/5/2012

 

 

  

  

  

 

 

	
Prototype Hardware Deliverables

 

Flux Power will provide the following prototype Deliverables as a result of the Schedule.

	
Ref.

	
Prototype Description

	
Qty Built

	
Qty to NMHG

	
Qty to Flux Power

	
D.13

	
Flux ESS prototype units for NMHG Products

	
3

	
3

	
0

 

 

Page 17 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

	
  

	
Project Management

 

 

	
  

	
Planning and Reporting

 

As part of the Services under this Agreement, Flux will assign a project manager to ensure effective management of the development activities carried out by Flux.

The Project Manager will:

 

	
1.  

	
Provide the necessary project management support to the project to ensure effective management of the Flux development activities.

 

	
2.  

	
Participate in Flux and NMHG project management meetings.

 

	
3.  

	
Act as the focal point for all issues and problem reports. These problem reports can be informal (via email) but will be used to report and act upon any issue/problem requiring investigation or changes.

 

	
4.  

	
Identify, assess, and prepare contingency or mitigation plans for project risks to reduce or eliminate negative impacts to schedule, cost, and technical execution of the project.

 

	
5.  

	
Provide NMHG with the following reports/plans on a mutually agreed schedule: Status report – includes an executive summary, project progress for reporting period, issues summary, action item summary, project task plans, milestones, deliverables summary, PCR summary.

 

	
a.  

	
Risk report – Risks are tracked and managed throughout the project. Risk detail and summary reports can be exported as an excel file or PDF.

 

	
b.  

	
Issue Report– Issues are tracked and managed through Trace and can be accessed on line. Issue detail and summary reports can be exported as an excel file or PDF.

 

	
c.  

	
Action Items Report – Action items are tracked and managed through Trace and can be accessed on line. Action items detail and summary reports can be exported as an excel file or PDF.

 

	
d.  

	
Schedule Report – Project schedule is tracked using Microsoft Project and schedule report is issued as a PDF file.

 

	
e.  

	
PCR (as required).

 

Project plans will take into account NMHG’s timescale requirements, the availability of Flux staff, and will be agreed upon with NMHG before the Project proceeds.  All Deliverables and reports shall be considered Confidential.

 

	
Estimated Major Events of Project

 

The following estimated schedule will apply to the Deliverables:

 

 

 

 

Page 18 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

 

 

	
Ref.

	
Project Major Events

	
Estimated Completion

	
Elapsed Time

	
 

M.1 

 

	
Project Start

	
Receipt of Order*

	
0 Week

	
 

M.2 

 

	
Flux ESS prototype requirements frozen

	
2 Weeks after M.1

	
2 Weeks

	
 

M.3 

 

	
NMHG approves design Flux ESS units mechanical enclosures and design review  complete

	
2 Weeks after M.1

	
2 Weeks

	
 

M.4 

 

	
NMHG approves design Flux ESS units electrical and wiring and design review complete

	
2 Weeks after M.1

	
2 Weeks

	
 

M.5 

 

	
Flux ESS design document review completed and design released

	
1 Week after M.2

	
3 Weeks

	
 

M.6 

 

	
Flux ESS materials and parts ordered

	
1 Week after M.5

	
4 Weeks

	
 

M.7 

 

	
Flux ESS material request date (MRD)

	
3 Weeks after M.6

	
7 Weeks

	
 

M.8 

 

	
Flux ESS prototypes assembled and tested

	
2 Weeks after M.7

	
9 Weeks

	
 

M.9 

 

	
Flux ESS prototypes shipped to NMHG

	
1 Week after M.8

	
10 Weeks

The Project schedule is based on dependencies. Failure to complete tasks and responsibilities as indicated or NMHG failure to deliver prerequisites as required could result in schedule slips and additional charges to NMHG.

* Flux shall begin staffing the Schedule and Project after the Receipt of Order (ARO) as evidenced by (1) receipt of NMHG’s Purchase Order, (2) receipt of signed Agreement, and (3) receipt of signed Schedule.

 

 

Page 19 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

 

	
Schedule Fees and Payment Terms

 

 

	
Fixed Price

 

All fees contained in this Schedule are based on fixed priced numbers and are estimates made purely for budgeting purposes and may change upon Flux discretion.

 

	
Estimated Professional Services Fees

 

Based on the foregoing, the following are estimated fees for Professional Services. Flux Power reserves the right to use third party and additional engineering resources if required for the Project.

	
Type of Engineering Resource

	
Estimated Hours

	
Standard Hourly Rate

	  	
Fees

	
Project Manager

	
[***]

	
[***]

	
$

	
[***]

	
Senior Mechanical Engineer

	
[***]

	
[***]

	
$

	
[***]

	
Mechanical CAD Designer

	
[***]

	
[***]

	
$

	
[***]

	
Senior Electrical Engineer

	
[***]

	
[***]

	
$

	
[***]

	
Embedded Engineer

	
[***]

	
[***]

	
$

	
[***]

	
Systems Integration Engineer

	
[***]

	
[***]

	
$

	
[***]

	
Total Engineering Estimate

	
$

	
64,000

 

	
Estimated Prototype and Materials Fees

 

The following are the Prototyping product costs:

	
Type of Prototyping Charge

	
Estimated Hours

	  	
Estimated Fees

	
Components

	
$

	
[***]

	
Assembly

	
$

	
[***]

	
Other

	
$

	
[***]

	
Total Prototype and Materials Fee Per Unit

	
$

	
18,320

 

	
Travel Costs

 

Any travel required of Flux Power Personnel will be approved by NMHG. NMHG will reimburse Flux Power for actual, reasonable travel, living expenses and per diem. Flux Power will provide NMHG with detailed expense reports for such travel.

 

	
Start Payment and Invoicing

 

An initial payment (“Start Payment”) shall be due upon execution of this Schedule, which amount shall be equal to forty percent (40%) of the total estimated fees as summarized herein. Work will begin when the NMHG purchase order is received and as such deliverables may be delayed without penalty to Flux.  Flux shall invoice NMHG immediately upon purchase order receipt and as defined in the Payment Schedule below.  NMHG shall pay said invoices within one (1) week of receipt.

 

 

Page 20 of 21                                                         Confidential                      10/5/2012

 

  

  

  

 

	
Summary of Total Costs

 

The estimated total fees for the Project are summarized below. Due to the nature of development work for this Project, it is not possible to accurately reflect a minimum or maximum amount of fees.

	
Fee Category

	  	
Total

	
Professional Services ($64,000 with a 20% discount)

	
$

	
51,200

	
Prototype and Materials Services (Estimated Fees for 3 units at $18,320)

	
$

	
54,960

	
Project Total

	
$

	
106,160

	
The start payment for the Project is

	
$

	
42,464

 

 

Payment Schedule

 

	
Date (Milestone)

	
Amount %

	
Start of Project

	
40% of total

	
M.5 - ESS design document review completed and design released

	
30% of total

	
M.9 - ESS prototypes shipped to customer

	
Remainder of total balance due

 

IN WITNESS WHEREOF, the parties have caused this Schedule to be signed by their duly authorized representatives and have made effective as of the Schedule 1 Effective Date.

 

	
Flux Power, Inc.

 

	
NACCO Materials Handling Group, Inc.

 

	
By:/s/ Craig Miller

 

	
By: /s/ Rajiv K. Prasad

	
Name:Craig Miller

 

	
Name: Rajiv K. Prasad

	
Title:VP, Director of Legal Affairs

 

	
Title: VP Global Product Development

	
Date:  2-20-2-12

	
Date:  Feb 22, 2012

Page 21 of 21                                                         Confidential                      10/5/2012Exhibit 10.1

 

SERVICES AGREEMENT

 

This services agreement (this “Agreement”), dated
as of October 1, 2012, between Ocwen Mortgage Servicing, Inc., a corporation organized under the laws of the United States Virgin
Islands (“Ocwen,” or together with its subsidiaries, the “Ocwen Group”), and Altisource Solutions S.à
r.l., a private limited liability company organized under the laws of the Grand Duchy of Luxembourg (“Altisource,”
or together with its Affiliates, the “Altisource Group”).

 

RECITALS

 

WHEREAS, Ocwen desires to receive, and Altisource is willing
to provide, or cause to be provided, certain services, in each case subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements,
provisions and covenants contained in this Agreement, the parties agree as follows:

 

1.     Definitions. For the
purposes of this Agreement, the following terms shall have the following meanings:

 

“Affiliate” or “Affiliates”
means with respect to any Person: (a) any directly or indirectly wholly owned subsidiary of such Person; (b) any Person that directly
or indirectly owns 100% of the voting stock of such Person; or (c) a Person that controls, is controlled by, or is under common
control with such Person. As used herein, “control” of any entity means the possession, directly or indirectly, through
one or more intermediaries, of the power to direct or cause the direction of the management or policies of such entity, whether
through ownership of voting securities or other interests, by contract, or otherwise. Furthermore, with respect to any Person that
is partially owned by such Person and does not otherwise constitute an Affiliate (a “Partially Owned Person”), such
Partially Owned Person shall be considered an Affiliate of such Person for purposes of this Agreement if such Person can, after
making a good faith effort to do so, legally bind such Partially Owned Person to this Agreement. 

 

“Agreement” means this Agreement, including
the Schedules hereto, any Services Letter, any Fee Letter, and any SOW entered into pursuant to Section 2(b).

 

“Altisource Business” means the knowledge
process outsourcing business, consisting of the mortgage servicing business, the financial servicing business, and the technology
products business.

 

“Applicable Services” means business process
outsourcing services of the type provided in the ordinary course of business of the Providing Party as of the date of this Agreement.

 

“Customer Party” means a party in its
capacity of receiving a Service hereunder, including Ocwen.

 

“Fee Letter” has the meaning set forth
in Section 4(a).

 

“Fixed Price Project” means any Service
designated as such on Schedule I, in the Services Letter, or the applicable SOW.

 

“Group” means, collectively, either party’s
Subsidiaries and Affiliates.

 

“Governmental Authority” shall mean any
federal, state, local, foreign, or international court, government, department, commission, board, bureau, agency, official, or
other legislative, judicial, regulatory, administrative, or governmental authority.

 

    	Page 1 of 17

    	 

    
 

“Information” means information, whether
or not patentable or copyrightable, in written, oral, electronic, or other tangible or intangible forms, stored in any medium,
including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques,
designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks,
diskettes, tapes, algorithms, computer programs or other software, marketing plans, customer names, communications by or to attorneys
(including attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction
(including attorney work product), and other technical, financial, employee or business information or data.

 

“Intellectual Property” means all domestic
and foreign patents, copyrights, trade names, domain names, trademarks, service marks, registrations and applications for any of
the foregoing, databases, mask works, Confidential Information, inventions (whether or not patentable or patented), processes,
know-how, procedures, computer applications, programs and other software, including operating software, network software, firmware,
middleware, design software, design tools, systems documentation, manuals, and instructions, other proprietary information, and
licenses from third parties granting the right to use any of the foregoing.

 

“Ocwen Business” means (a) the business
and operations of Ocwen and its Subsidiaries and other Affiliates immediately after the Effective Date and (b) except as otherwise
expressly provided herein, any terminated, divested, or discontinued businesses or operations of Ocwen and its Subsidiaries and
other Affiliates.

 

“Person” means an individual, a general
or limited partnership, a corporation, a trust, a joint venture, an unincorporated organization, a limited liability entity, any
other entity, and any Governmental Authority.

 

“Providing Party” means a party in its
capacity of providing a Service hereunder, including Altisource.

 

“Services” means the services set forth
on Schedule I, as further described in the Services Letter, and/or in any SOW, as the context requires.

 

“SOW” means a statement of work entered
into between the parties on an as-needed basis to describe a particular service that is not covered specifically in a schedule
hereto or in the Services Letter, but has been agreed to be provided pursuant to the terms of this Agreement except as otherwise
may be set forth in such SOW.

 

“Subsidiary” or “Subsidiaries”
of any Person means any corporation or other organization whether incorporated or unincorporated of which at least a majority of
the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board of directors
or others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or
controlled by such Person or by any one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries; provided,
however, that any Person that is not wholly owned by any other Person shall not be a Subsidiary of such other Person unless such
other Person controls, or has the right, power, or ability to control that Person.

 

2.     Provision of Services.

 

(a)   Generally. Subject to the terms
and conditions of this Agreement, Altisource shall provide, or cause to be provided, to Ocwen and the Ocwen Group, the services
set forth on Schedule I, in each case (i) as further described in a letter between the Providing Party and the Customer Party dated
as of the date hereof (the “Services Letter”) and (ii) for the periods commencing on the date hereof through the respective
period specified on Schedule I (the “Service Period”), unless such period is earlier terminated in accordance with
Section 5.

 

    	Page 2 of 17

    	 

    

 

(b)   Statements of Work. In addition
to the services set forth on Schedule I, from time to time during the term of this Agreement the parties shall have the right to
enter into SOWs to set forth the terms of any related or additional services to be performed hereunder. Any SOW shall be agreed
to by each party, shall be in writing, and shall contain, to the extent applicable: (i) the identity of each of the Providing
Party and the Customer Party; (ii) a description of the Services to be performed thereunder; (iii) the applicable Performance Standard,
as defined in Section 3 below, for the provision of such Service, if different from the Performance Standard; (iv) a description
of the penalties of nonperformance and the incentives for performance in accordance with the applicable Performance Standard; (v)
a description of the Customer Party’s criteria for evaluating the acceptance of deliverables; (vi) the amount, schedule,
and method of compensation for provision of such Service; and (vii) the Customer Party’s standard operating procedures for
receipt of services similar to such Service, including operations, compliance requirements, and related training schedules. Any
SOW may contain: (i) a description of the renewal option for such SOW; (ii) information technology support requirements
of the Customer Party with respect to such Service; (iii) training and support commitments with respect to such Service; (iv) the
number of full-time employees required for such Service; and (v) any other terms the parties desire. For the avoidance of doubt,
the terms and conditions of this Agreement shall apply to any SOW.

 

(c)   The Services shall be performed on Business
Days during hours that constitute regular business hours for each of Ocwen and Altisource, unless otherwise agreed or as provided
on Schedule I, in the Services Letter, or an applicable SOW. No Customer Party, nor any member of its respective Group, shall resell,
subcontract, license, sublicense, or otherwise transfer any of the Services to any Person whatsoever or permit use of any of the
Services by any Person other than by the Customer Party and its Affiliates directly in connection with the conduct of the Customer
Party’s respective business in the ordinary course of business.

 

(d)   Notwithstanding anything to the contrary
in this Section 2 (but subject to the following), the Providing Party shall have the exclusive right to select, employ, pay, supervise,
administer, direct, and discharge any of its employees who will perform Services. The Providing Party shall be responsible for
paying such employees’ compensation and providing to such employees any benefits. With respect to each Service, the Providing
Party shall use commercially reasonable efforts to have qualified individuals participate in the provision of such Service; provided,
however, that: (i) the Providing Party shall not be obligated to have any individual participate in the provision of any Service
if the Providing Party determines that such participation would adversely affect the Providing Party or its Affiliates; and (ii)
none of the Providing Party or its Affiliates shall be required to continue to employ any particular individual during the applicable
Service Period.

 

3.     Standard of Performance.
The Providing Party shall use commercially reasonable efforts to provide, or cause to be provided, to the Customer Party and its
Group, each Service with such quality standards, service level requirements, specifications, and acceptance criteria identified
in the Services Letter or the respective SOW (including any “Critical Performance Standards,” as identified in any
therein) (the “Performance Standard”), unless otherwise specified in this Agreement. Notwithstanding the foregoing,
no Providing Party shall have any obligation hereunder to provide to any Customer Party any improvements, upgrades, updates, substitutions,
modifications, or enhancements to any of the Services unless otherwise specified in the Services Letter or applicable SOW. The
Customer Party acknowledges and agrees that the Providing Party may be providing services similar to the Services provided hereunder
and/or services that involve the same resources as those used to provide the Services to it and its Affiliates’ business
units and other third parties.

 

 4.     Fees for Services.

 

(a)   As compensation for a particular Service,
the Customer Party agrees to pay to the Providing Party, for each of the first two (2) successive years during which such Service
is provided (the “Initial Fee Period”), the respective amount set forth in (i) the Services Letter (or, if applicable,
in a separate fee letter to be delivered by the Providing Party to the Customer Party dated as of the date hereof (the “Fee
Letter”)) or (ii) with respect to any Service performed pursuant to an SOW, in such SOW. The parties intend that any such
fees reflect the market rate for comparable services. In the event the Services provided are increased or decreased during the
Service Period, the fees associated therewith shall be increased or decreased, as applicable, on a pro rata basis.

 

    	Page 3 of 17

    	 

    
 

(b)   The fees for the Services other than
Fixed Price Projects shall be adjusted in each year subsequent to the Initial Fee Period as negotiated between the parties in good
faith based on prevailing market conditions and inflation.

 

(c)   The Customer Party shall not be obligated
to pay fees for (i) new Services, other than Additional Services or Services requested pursuant to a SOW that the Providing Party
performs without the authorization of the Customer Party or of any member of its Group or (ii) Services not provided due to a Force
Majeure Event (as defined below).

 

(d)   The parties will adhere to the business
practices regarding invoicing and payment in place at the time of execution of this Agreement for all Services initially provided
by the Providing Party for a maximum period of one year from the date of this Agreement. After one year, or in the case of any
SOW and unless otherwise specified in the applicable SOW, the Providing Party shall submit statements of account to the Customer
Party (including any Sales Tax, as defined in Section 16) on a monthly basis with respect to all amounts payable by the Customer
Party to the Providing Party hereunder (the “Invoiced Amount”), setting out the Services provided (by reference to
the particular SOW, if applicable), and the amount billed in United States Dollars to the Customer Party as a result of providing
such Services. The Customer Party shall pay the Invoiced Amount to the Providing Party by wire transfer of immediately available
funds to an account or accounts specified by the Providing Party, or in such other manner as specified by the Providing Party in
writing, or otherwise reasonably agreed to by the Parties, within thirty (30) days of the date of delivery to the Customer Party
of the applicable statement of account; provided, that, in the event of any dispute as to an Invoiced Amount, the Customer Party
shall pay the undisputed portion, if any, of such Invoiced Amount in accordance with the foregoing, and shall pay the remaining
amount, if any, promptly upon resolution of such dispute.

 

(e)   The Providing Party shall maintain books
and records adequate for the provision of the Services. At its own expense, the Customer Party may request an audit of the books
and records of the Providing Party to determine performance in accordance with Section 4(d). If such audit reveals an underpayment
of fees, the Customer Party shall promptly pay the underpayment amount in accordance with the terms of this Agreement. If such
audit reveals an overpayment of fees, the Providing Party shall promptly refund the overpayment amount in accordance with Section
4(d).

 

(f)   The Providing Party may, in its discretion
and without any liability, suspend any performance under this Agreement upon failure of the Customer Party to timely make any payments
required under this Agreement beyond the applicable cure date specified in Section 6(b)(1) of this Agreement.

 

(g)   In the event that the Customer Party
does not make any payment required under the provisions of this Agreement (including, for the avoidance of doubt, the Services
Letter and/or the Fee Letter) to the Providing Party when due in accordance with the terms hereof, the Providing Party may, at
its option, charge the Customer Party interest on the unpaid amount at the rate of 2% per annum above the prime rate charged by
JPMorgan Chase Bank, N.A. (or its successor). In addition, the Customer Party shall reimburse the Providing Party for all costs
of collection of overdue amounts, including any reasonable attorneys’ fees.

 

(h)   In the event that: (i) Providing Party
agrees to provide services that are the same or substantially similar to the Services and Additional Services provided hereunder
to a third party (“Relevant Services”), (ii) such Relevant Services are delivered and priced in a manner substantially
similar to the delivery and pricing structure provided for by this Agreement, the Services Letter, and the Fee Letter, if any,
and are of a similar volume, (iii) the fees to be received by Providing Party from each of Customer Party and such third party
are reasonably expected to exceed $1,000,000 per year, (iv) the fee rates in the aggregate to be charged by the Providing Party
for any particular Relevant Service (a “Reduced Cost Service”) are less than the fee rates in the aggregate for the
corresponding Service or Additional Service charged under this Agreement, the Services Letter, and the Fee Letter, if any, and
(v) after giving good faith consideration to any higher fee rates charged by Providing Party for any other Relevant Services other
than the Reduced Cost Service being provided to such third party, the aggregate economic benefit received by Providing Party for
providing all such Relevant Services is less than the aggregate economic benefit received by Providing Party for providing the
Services and Additional Services, then within thirty (30) Business Days of entering into a binding agreement to provide the Relevant
Services to such third party, Providing Party shall offer to provide to Customer Party the Service and/or Additional Service corresponding
to the Reduced Cost Service at the same rate as Providing Party provides the Reduced Cost Service to such third party. The fees
provided for under this Agreement, the Services Letter, and the Fee Letter, if any, shall be reduced to an amount equal to the
fees charged for the Reduced Cost Service effective as of the later of (x) the first day of the immediately succeeding calendar
quarter after the date on which Providing Party notifies Customer Party of the Reduced Cost Service or (y) thirty days after the
date on which Providing Party notifies Customer Party of the Reduced Cost Service. For purposes of clarification only, this Section
4(h) shall not apply to situations where Providing Party agrees to provide test or trial services to a third party.

 

    	Page 4 of 17

    	 

    
 

5.     Term.

 

(a)   Initial Term. This Agreement
shall commence on October 1, 2012 (the “Effective Date”) and shall continue in full force and effect, subject to Section
5(b), until August 31, 2020 (the “Initial Term”), or the earlier date upon which this Agreement has been otherwise
terminated in accordance with the terms hereof.

 

(b)   Renewal Term. This Agreement
may be renewed for successive two (2) year terms (each, a “Renewal Term”) by mutual written agreement of the parties
hereto, executed not less than six (6) months prior to the expiration of the Initial Term or any Renewal Term, as applicable.

 

(c)   In the event either party decides that
it does not wish to renew this Agreement or any particular Service or SOW before the expiration of the Initial Term or any Renewal
Term, as applicable, such party shall so notify the other party at least nine (9) months before the completion of the Initial Term
or Renewal Term, as applicable.

 

 6.     Termination.

 

(a)   Termination by Customer Party.
During the term of this Agreement, the Customer Party may terminate this Agreement (or, with respect to all items except items
(2) and (7) below, the particular Service or SOW only):

 

(1)   if the Customer Party is prohibited by law from receiving
such Services from the Providing Party;

 

(2)   in the event of a material breach of any covenant or
representation and warranty contained herein or otherwise directly relating to or affecting the Services to be provided hereunder
of the Providing Party that cannot be or has not been cured by the thirtieth (30th) day from the Customer Party’s
giving of written notice of such breach to the Providing Party, which notice shall be given within forty-five (45) days of the
later of the occurrence of such breach or Customer Party’s discovery of such breach;

 

(3)   if the Providing Party fails to comply with all applicable
regulations to which the Providing Party is subject directly relating to or affecting the Services to be performed hereunder, which
failure cannot be or has not been cured by the thirtieth (30th) day from the Customer Party’s giving of written
notice of such failure to the Providing Party, which such notice shall be given within forty-five (45) days of the later of the
occurrence of such failure or Customer Party’s discovery of such failure;

 

(4)   if the Providing Party or any member of its Group providing
Services hereunder is cited by a Governmental Authority for materially violating any law governing the performance of a Service,
which violation cannot be or has not been cured by the thirtieth (30th) day from the Customer Party’s giving of
written notice of such citation to the Providing Party, which such notice shall be given within forty-five (45) days of the later
of the occurrence of such citation or Customer Party’s discovery of such citation;

 

    	Page 5 of 17

    	 

    

 

(5)   if the Providing Party fails to meet any Critical Performance
Standard for a period of two consecutive months or three nonconsecutive months in any rolling twelve (12)-month period, which failure
cannot be or has not been cured by the thirtieth (30th) day from the Customer Party’s giving of written notice
of such failure to the Providing Party, which such notice shall be given within forty-five (45) days of the later of the occurrence
of such failure or Customer Party’s discovery of such failure;

 

(6)   if the Providing Party fails to meet any Performance
Standard for a period of two consecutive months or four nonconsecutive months in any rolling twelve (12)-month period, which failure
cannot be or has not been cured by the thirtieth (30th) day from the Customer Party’s giving of written notice
of such failure to the Providing Party, which such notice shall be given within forty-five (45) days of the later of the occurrence
of such failure or Customer Party’s discovery of such failure;

 

(7)   if the Providing Party (A) becomes insolvent, (B) files
a petition in bankruptcy or insolvency, is adjudicated bankrupt or insolvent or files any petition or answer seeking reorganization,
readjustment, or arrangement of its business under any law relating to bankruptcy or insolvency, or if a receiver, trustee, or
liquidator is appointed for any of the property of the other party and within sixty (60) days thereof such party fails to secure
a dismissal thereof, or (C) makes any assignment for the benefit of creditors, which bankruptcy, insolvency, or assignment cannot
be or has not been cured by the thirtieth (30th) day from the Customer Party’s giving of written notice of such
event to the Providing Party, which such notice shall be given within forty-five (45) days of the later of the occurrence of such
event or Customer Party’s discovery of such event, and

 

(8)   in the event of any material infringement of such Customer
Party’s Intellectual Property(as defined in the Intellectual Property Agreement between Ocwen and Altisource, dated October
1, 2012, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms
thereof (the “Intellectual Property Agreement”)), including Intellectual Property developed hereunder pursuant to Section
10 below, by the Providing Party, which infringement cannot be or has not been cured by the thirtieth (30th) day from
the Customer Party’s giving of written notice of such event to the Providing Party, which such notice shall be given within
forty-five (45) days of the later of occurrence of such event or Customer Party’s discovery of such event.

 

For the avoidance of doubt, with respect to all items except
item (1) above, if the Providing Party has cured the underlying event or circumstance giving rise to written notice of the same,
within the time period specified above, the Customer Party may not terminate this Agreement or the applicable Service or SOW; provided,
however, that the Customer Party may, if it so states in the written notice required to be provided to the Providing Party pursuant
to the above, cause the Providing Party to suspend the Service performed under this Agreement or the applicable SOW until the Providing
Party has cured such breach, failure, insolvency, bankruptcy, or assignment, as the case may be. Furthermore, if the Providing
Party is unable to effect a cure of the event or circumstance occurring under this Section 6(a) within the time period specified,
despite a good faith effort to effect such cure, the Customer Party shall allow the Providing Party such additional time as is
reasonably required to effect such cure without termination of this Agreement or the applicable Service or SOW, but in no event
shall such additional time exceed ninety (90) days unless otherwise agreed by the parties.

 

(b)   Termination by Providing Party.
During the term of this Agreement, the Providing Party may terminate this Agreement or the particular Service or SOW only:

 

(1)   if the Customer Party fails to make
any payment for any portion of Services the payment of which is not being disputed in good faith by the Customer Party, which payment
remains unmade by the ninetieth (90th) day from the Providing Party’s giving of written notice of such failure
to the Customer Party;

 

    	Page 6 of 17

    	 

    

 

(2)   if the Customer Party, or any member
of its Group providing Services hereunder, or the Providing Party receives an order from a Governmental Authority prohibiting the
performance of the Services;

 

(3)   if the Providing Party or any member
of its Group providing Services hereunder is notified by a Governmental Authority, due to the actions of the Customer Party, for
materially violating any law governing the performance of a Service, which violation cannot be or has not been cured by the Customer
Party by the sixtieth (60th) day from the receipt of notice of such violation;

 

(4)   if the Customer Party or any member
of its Group (A) becomes insolvent, (B) files a petition in bankruptcy or insolvency, is adjudicated bankrupt or insolvent or files
any petition or answer seeking reorganization, readjustment, or arrangement of its business under any law relating to bankruptcy
or insolvency, or if a receiver, trustee, or liquidator is appointed for any of the property of the other party and within sixty
(60) days thereof such party fails to secure a dismissal thereof, or (C) makes any assignment for the benefit of creditors;

 

(5)   in the event of any material infringement
of such Providing Party’s Intellectual Property, (as defined in the Intellectual Property Agreement between Ocwen and Altisource,
dated October 1, 2012, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance
with the terms thereof (the “Intellectual Property Agreement”)) including Intellectual Property developed hereunder
pursuant to Section 10 below, by the Customer Party or any member of its Group; and

 

(6)   in the event of a material breach
of any covenant or representation and warranty contained herein or otherwise directly relating to or affecting the Services to
be provided hereunder of the Customer Party or any member of its Group that cannot be or has not been cured by the sixtieth (60th)
day from the Providing Party’s giving of written notice of such breach to the Customer Party.

 

For the avoidance of doubt, with respect to items (3) and
(6) above, if the Customer Party has cured the underlying event or circumstance giving rise to written notice of the same, within
the time period specified above, the Providing Party may not terminate this Agreement or the applicable Service or SOW; provided,
however, that the Providing Party may, if it so states in the written notice required to be provided to the Customer Party pursuant
to the above, suspend the Service performed hereunder or under the applicable SOW until the Customer Party has cured such violation
or breach, as the case may be. Furthermore, if the Customer Party is unable to effect a cure of the event or circumstance occurring
under this Section 6(b) within the time period specified, despite a good faith effort to effect such cure, Providing Party shall
allow Customer Party such additional time as reasonably required to effect such cure without termination of this Agreement or the
applicable Service or SOW, but in no event shall such additional time exceed 90 days unless otherwise agreed by the parties.

 

(c)   Termination
for Convenience. Any Service or SOW may be terminated in whole or in part by the Customer Party with not less than ninety (90)
days’ written notice of such termination to the Providing Party in the event the Customer Party and the members of its Group
discontinue the line of business receiving such Services. In the event the Customer Party terminates such Service or SOW in accordance
with this Section 6(c), unless otherwise set forth herein or in the applicable SOW, such party shall be responsible for payment
of the following costs and expenses that are directly related to or resulting from the early termination of such Service or SOW:
(i) costs and expenses relating to the re-employment or termination of a Providing Party’s employee who had been previously
engaged in providing the Services governed by the terminated Service or SOW; (ii) costs and expenses relating to existing contracts
with third parties that had been entered into by the Providing Party or any member of its Group solely for the provision of Services
under such terminated Service or SOW; and (iii) costs and expenses relating to facilities, hardware, and equipment (including depreciation)
used solely for the purpose of providing such Services or SOW.

 

(d)   Wind-Down
Period. During the period six (6) months prior to the date of termination of this Agreement, the Providing Party shall have
no obligation to (i) expand the scope of its Services under this Agreement or any SOW, (ii) perform any new or additional Services
under this Agreement or any SOW, or (iii) invest in hardware, software, or equipment for performance of a Service or SOW.

 

    	Page 7 of 17

    	 

    

 

(e)   Post-Termination
Services. Upon termination of this Agreement, any SOW, or any Services, for any reason whatsoever, the Customer Party or any
member of its Group may elect to purchase post-termination services from the Providing Party for a period of two hundred and seventy
(270) days from the date on which this Agreement terminates on the current terms hereunder or in place under the applicable SOW(s).

 

(f)   Effects
of Termination.

 

(1)   Upon the early termination of any Service pursuant to
this Section 6, or upon the expiration of the applicable Service Period, following the effective time of the termination, the Providing
Party shall no longer be obligated to provide such Service; provided that the Customer Party shall be obligated to reimburse the
Providing Party for any reasonable out-of-pocket expenses or costs attributable to such termination unless otherwise provided herein
or in the applicable SOW(s).

 

(2)   No termination, cancelation, or expiration
of this Agreement shall prejudice the right of either party hereto to recover any payment due at the time of termination, cancelation,
or expiration (or any payment accruing as a result thereof), nor shall it prejudice any cause of action or claim of either party
hereto accrued or to accrue by reason of any breach or default by the other party hereto.

 

(3)   Notwithstanding any provision herein
to the contrary, Sections 4, 9, and 12 through 22 of this Agreement shall survive the termination of this Agreement.

 

 7.     Change Order Procedures;
Temporary Emergency Changes.

 

(a)   The parties hereto may change the nature
and scope of Services provided hereunder or under any SOW by mutual agreement. The party seeking the change shall submit a request
containing: (i) the identity of the party requesting such change; (ii) the reason(s) for the change; (iii) a description of the
requested change; and (iv) a timetable for the implementation of the change. The non-requesting Party shall have thirty (30) Business
Days to consider the suggested change and either approve or decline such change. For the avoidance of doubt, no change to any Service
or SOW will become part of the Performance Standard for such Service or SOW without the Providing Party’s prior approval.

 

(b)   The parties hereto agree to cooperate
in good faith to determine and implement additional procedures for change orders as needed.

 

(c)   Notwithstanding the foregoing, in the
event the Providing Party is unable to contact the Customer Party’s designated contact for a specific Service or SOW after
reasonable effort, the Providing Party may make temporary changes to any SOW or Services, which the Providing Party shall document
and report to the Customer Party the next Business Day. Such changes shall become permanent only if the Providing Party subsequently
follows the procedures in Section 7(a) hereof for permanent change order procedures. The Customer Party shall not be obligated
to pay for any changed Services performed without its prior approval.

 

(d)   The Customer Party may, in an emergency,
request additional Services to be performed as promptly as practicable, and the Providing Party shall use its reasonable best efforts
to perform such Services as promptly as practicable. While the Providing Party will continue to provide services in line with the
request from the Customer Party, in the event that the Providing Party plans to incur materially additional costs in providing
this service, the Providing Party may submit a financial proposal to make the Providing Party financially whole. In such a case,
the Customer Party and Providing Party may agree for the one-time increase in payment for the emergency. Such emergency request
shall last no longer than thirty (30) Business Days, and the Providing Party shall have no obligation to continue performing such
Services unless the Customer Party follows the procedures in Section 7(a) hereof for permanent change order procedures.

 

    	Page 8 of 17

    	 

    

 

8.     Right of First Opportunity.

 

(a)   If the Customer Party or any member
of its Group elects to receive any Additional Service (as defined below), it shall first request a proposal for the provision of
such Additional Service from the Providing Party. The Providing Party shall have thirty (30) Business Days (the “Exclusive
Tender Period”) to respond to such request for Additional Service and to provide a proposed SOW to the Customer Party. During
the Exclusive Tender Period, the Customer Party shall not solicit proposals or negotiate with any other third party with respect
to such request for Additional Service. Upon receipt of the Providing Party’s proposal for the Additional Service, the Customer
Party shall consider such proposal and shall negotiate with the Providing Party in good faith with respect to the possible provision
by the Providing Party of such Additional Services.

 

(b)   If, at the end of the Exclusive Tender
Period, the Providing Party and the Customer Party do not agree on the proposed SOW, the Customer Party may solicit proposals from
third parties with respect to the Additional Service; provided, however, that the Customer Party shall not disclose any information
received from the Providing Party, whether verbal or written, in the proposed SOW or during the Exclusive Tender Period negotiations,
and such information shall be subject to the terms of Section 12 (Confidentiality) hereof.

 

(c)   As an alternative to the procedures
set forth in Sections 8(a) and 8(b), Customer Party may solicit proposals or negotiate with third parties with respect to an Additional
Service (such third parties referred to as “Third Party Additional Service Providers”) during the Exclusive Tender
Period so long as:

 

(1)   at least fifteen Business Days prior
to engaging any Third Party Additional Service Provider, Customer Party shall disclose to Providing Party a description of the
Additional Services to be provided by such Third Party Additional Service Provider and all fees, costs, and other expenses to be
charged by such Third Party Additional Service Provider (such description referred to as a “Third Party Additional Service
Offer”);

 

(2)   within ten (10) Business Days of
receipt of any Third Party Additional Service Offer, Providing Party shall have the right to make an offer (a “Matching Offer”)
to provide the same or substantially the same Additional Services as set forth in the Third Party Additional Service Offer; and

 

(3)   if the fees set forth in the Matching
Offer do not exceed the fees set forth in the Third Party Additional Services Offer, Customer Party may not accept the Third Party
Additional Services Offer. Conversely, if the fees set forth in the Matching Offer exceed the fees set forth in the Third Party
Additional Services Offer, Customer Party may accept the Third Party Additional Services Offer.

 

(d)   For purposes of
this Agreement, “Additional Service” means a service that: (i) is reasonably similar to the Services provided hereunder
or under any SOW; (ii) could reasonably be performed in facilities located in India, the United States, Canada, Uruguay, the United
States Virgin Islands, or other facilities similar to the Providing Party’s facilities in these locations; (iii) reasonably
would be expected to involve a purchase volume greater than two hundred thousand dollars ($200,000) on an annual basis; and (iv)
is not an Applicable Service.

 

(e)   For the avoidance of doubt, the Providing
Party shall not be restricted from providing services to a third party that are similar or identical to the Services.

 

    	Page 9 of 17

    	 

    

 

 9.     Miscellaneous.

 

(a)   This Agreement may be executed in one
or more counterparts, including by facsimile, all of which shall be considered one and the same agreement, and shall become effective
when one or more counterparts have been signed by each party hereto and delivered to the other parties hereto.

 

(b)   This Agreement, the schedules hereto,
the Services Letter, and any Fee Letter, contain the entire agreement between the parties with respect to the subject matter hereof,
supersede all previous agreements, negotiations, discussions, writings, understandings, commitments, and conversations with respect
to such subject matter, and there are no agreements or understandings between the parties with respect to the subject matter hereof
other than those set forth or referred to in this Agreement.

 

(c)   Ocwen represents on behalf of itself
and each member of the Ocwen Group, and Altisource represents on behalf of itself and each member of the Altisource Group, as follows:

 

(1)   each such Person has the requisite corporate or other
power and authority and has taken all corporate or other action necessary in order to execute, deliver, and perform this Agreement
and to consummate the transactions contemplated hereby; and

 

(2)   this Agreement has been duly executed and delivered and
constitutes, or will constitute, a valid and binding agreement enforceable in accordance with the terms hereof.

 

 (d)   This Agreement shall be governed
by and construed and interpreted in accordance with the internal laws of the State of New York applicable to contracts made and
to be performed wholly in such state and irrespective of the choice of law principles of the State of New York, as to all matters.

 

(e)   Except for the indemnification rights
under this Agreement (i) the provisions of this Agreement are solely for the benefit of the parties hereto and are not intended
to confer upon any Person except the parties hereto any rights or remedies hereunder and (ii) there are no third party beneficiaries
of this Agreement, and this Agreement shall not provide any third person with any remedy, claim, liability, reimbursement, cause
of action, or other right in excess of those existing without reference to this Agreement.

 

(f)   All notices or other communications
under this Agreement shall be in writing and shall be deemed to be duly given when (i) delivered in person, (ii) sent by facsimile
(except that, if not sent during normal business hours for the recipient, then at the opening of business on the next Business
Day for the recipient) to the facsimile numbers set forth below, or (iii) deposited in the United States mail or private express
mail, postage prepaid, addressed as follows:

 

If to Ocwen, to:

 

Ocwen Mortgage Servicing, Inc.

402 Strand Street

Frederiksted, Virgin Islands 00840-3531

Attn:Corporate Secretary

Facsimile number: _________

 

If to Altisource, to:

 

Altisource Solutions S.à
r.l.

291 route d’Arlon

L-1150 Luxembourg

Attn: Corporate Secretary

Facsimile number: 352-2744-9499

With a copy to: contractmanagement@altisource.com

 

    	Page 10 of 17

    	 

    
 

Either Party may, by notice to the other party, change the
address to which such notices are to be given.

 

(g)   If any provision
of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction
to be invalid, void, or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or
circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in
full force and effect and shall in no way be affected, impaired, or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party. Upon any
such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable provision
to effect the original intent of the parties.

 

(h)   The article, section, and paragraph
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

(i)   Waiver by any Party hereto of any default
by any other party hereto of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent
or other default.

 

(j)   In the event of any actual or threatened
default in, or breach of, any of the terms, conditions, or provisions of this Agreement, the party or parties that are to be hereby
aggrieved shall have the right to seek specific performance and injunctive or other equitable relief of its rights under this Agreement,
in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.
The other party or parties shall not oppose the granting of such relief. The parties to this Agreement agree that the remedies
at law for any breach or threatened breach hereof, including monetary damages, are inadequate compensation for any loss and that
any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing
or posting of any bond with such remedy are waived.

 

(k)   No provisions
of this Agreement shall be deemed waived, amended, supplemented, or modified by any Party hereto, unless such waiver,
amendment, supplement, or modification is in writing and signed by the authorized representative of the party against whom it
is sought to enforce such waiver, amendment, supplement, or modification.

 

(l)   Words in the
singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other
genders as the context requires. The terms “hereof,” “herein,“ and “herewith,” and words
of similar import, unless otherwise stated, shall be construed to refer to this Agreement as a whole (including all schedules
hereto) and not to any particular provision of this Agreement. Article, Section, Exhibit, Schedule, and Appendix references
are to the articles, sections, exhibits, schedules, and appendices of or to this Agreement unless otherwise specified. Any
reference herein to this Agreement, unless otherwise stated, shall be construed to refer to this Agreement as amended,
supplemented, or otherwise modified from time to time, as permitted by Section 9(k). The word “including,” and
words of similar import, when used in this Agreement shall mean “including, without limitation,” unless the
context otherwise requires or unless otherwise specified. The word “or” shall not be exclusive. There shall be no
presumption of interpreting this Agreement or any provision hereof against the draftsperson of this Agreement or any such
provision.

 

(m)   Any action or proceeding arising out
of or relating to this Agreement shall be brought in the courts of the State of New York located in the County of New York or in
the United States District Court for the Southern District of New York (if any Party to such action or proceeding has or can acquire
jurisdiction), and each of the parties hereto (i) irrevocably submits to the exclusive jurisdiction of each such court in any such
action or proceeding, (ii) waives any objection it may now or hereafter have to venue or to convenience of forum, (iii) agrees
that all claims in respect of the action or proceeding shall be heard and determined only in any such court, and (iv) agrees not
to bring any action or proceeding arising out of or relating to this Agreement in any other court. The parties to this Agreement
agree that any of them may file a copy of this paragraph with any court as written evidence of the knowing, voluntary, and bargained
agreement between the parties hereto to irrevocably waive any objections to venue or to convenience of forum. Process in any action
or proceeding referred to in the first sentence of this Section 9(m) may be served on any Party to this Agreement anywhere in the
world.

 

    	Page 11 of 17

    	 

    
 

10.     Intellectual Property.
The Providing Party or a member of its Group shall retain all rights to all technology and Intellectual Property owned or licensed
by the Providing Party or a member of its Group prior to the provision of Services hereunder or developed by the Providing Party
and any member of its Group during the course of and in association with the provision of Services under this Agreement by the
Providing Party and any member of its Group, including all derivative works. The Customer Party and any member of its Group shall
retain all rights to all Intellectual Property owned or licensed by the Customer Party or a member of its Group prior to the provision
of Services hereunder or developed by the Customer Party or a member of its Group during the course of and in association with
the provision of Services by the Providing Party under this Agreement, including all derivative works. To the extent any technology
or Intellectual Property is jointly developed by the Providing Party or a member of its Group on the one hand and the Customer
Party or a member of its Group on the other, it shall be deemed Ocwen IP if it relates to the Ocwen Business, or Altisource Licensed
Intellectual Property if it relates to the Altisource Business, as these terms are defined in the Intellectual Property Agreement.
Any intellectual property not already part of the Altisource IP, the Altisource Licensed Intellectual Property, or the Ocwen IP,
as those terms are defined in the Intellectual Property Agreement, shall become Altisource Licensed Intellectual Property if owned
by Altisource, or Ocwen IP if owned by Ocwen. All intellectual property that is involved in the provision of Services hereunder,
therefore, shall be subject to the terms and conditions of the Intellectual Property Agreement.

 

 11.     Cooperation; Access;
Steering Committee.

 

(a)     The
Customer Party shall, and shall cause its Group to, permit the Providing Party and its employees and representatives access,
on Business Days during hours that constitute regular business hours for the Customer Party and upon reasonable prior request,
to the premises of the Customer Party and its Group and such data, books, records, and personnel designated by the Customer
Party and its Group as involved in receiving or overseeing the Services as the Providing Party may reasonably request for the
purposes of providing the Services. The Providing Party shall provide the Customer Party, upon reasonable prior written
notice, such documentation relating to the provision of the Services as the Customer Party may reasonably request for the
purposes of confirming any Invoiced Amount pursuant to this Agreement. Any documentation so provided to the Providing Party
pursuant to this Section 11 will be subject to the confidentiality obligations set forth in Section 12 of this Agreement.

 

    	Page 12 of 17

    	 

    

 

(b)     Each
party hereto shall designate a relationship manager (each, a “Relationship Executive”) to report and discuss
issues with respect to the provision of the Services and successor relationship executives in the event that a designated
Relationship Executive is not available to perform such role hereunder. The initial Relationship Executive designated by
Ocwen shall be William C. Erbey and the initial Relationship Executive designated by Altisource shall be William B. Shepro.
Either party may replace its Relationship Executive at any time by providing written notice thereof to the other party
hereto.

 

12.     Confidentiality.

 

(a)     Subject to Section 12(b),
each of Ocwen and Altisource, on behalf of itself and each other member of its Group, agrees to hold, and to cause its directors,
officers, employees, agents, accountants, counsel and other advisors, and representatives to hold, in strict confidence, with at
least the same degree of care that applies to confidential and proprietary Information of Ocwen pursuant to policies in effect
as of the Effective Date, all Information concerning the other Group that is either in its possession (including Information in
its possession prior to the Effective Date) or furnished by the other Group or its directors, officers, employees, agents, accountants,
counsel and other advisors, and representatives at any time pursuant to this Agreement, and shall not use any such Information
other than for such purposes as shall be expressly permitted hereunder, except to the extent that such Information has been (i)
in the public domain through no fault of such party or any other member of such party’s Group or any of their respective
directors, officers, employees, agents, accountants, counsel and other advisors, and representatives, (ii) later lawfully acquired
from other sources by such party (or any other member of such party’s Group), which sources are not known by such party to
be themselves bound by a confidentiality obligation, or (iii) independently generated without reference to any proprietary or confidential
Information of any member of the other Group.

 

(b)     Each party agrees
not to release or disclose, or permit to be released or disclosed, any such Information (excluding Information described in clauses
(i), (ii) and (iii) of Section 12(a)) to any other Person, except its directors, officers, employees, agents, accountants, counsel
and other advisors, and representatives who need to know such Information (who shall be advised of their obligations hereunder
with respect to such Information), except in compliance with Section 12(c). Without limiting the foregoing, when any Information
is no longer needed for the purposes contemplated by this Agreement, each party will promptly, after request of the other party,
either return the Information to the other party in a tangible form (including all copies thereof and all notes, extracts or summaries
based thereon) or certify to the other party that any Information not returned in a tangible form (including any such Information
that exists in an electronic form) has been destroyed (and such copies thereof and such notes, extracts, or summaries based thereon).

 

(c)     In
the event that either party or any other member of its Group either determines on the advice of its counsel that it is
required to disclose any Information pursuant to applicable law or receives any demand under lawful process or from any
Governmental Authority to disclose or provide Information of the other party (or any other member of the other party’s
Group) that is subject to the confidentiality provisions hereof, such party shall, to the extent permitted by law, notify the
other party prior to disclosing or providing such Information and shall cooperate, at the expense of the requesting Party, in
seeking any reasonable protective arrangements requested by such other party. Subject to the foregoing, the Person that
received such request may thereafter disclose or provide Information to the extent required by such law (as so advised by
counsel) or by lawful process or such Governmental Authority.

 

 13.     Dispute Resolution.

 

(a)     It is the intent of the
parties to use reasonable best efforts to resolve expeditiously any dispute, controversy, or claim between or among them with respect
to the matters covered hereby that may arise from time to time on a mutually acceptable negotiated basis. In furtherance of the
foregoing, a party hereto involved in a dispute, controversy, or claim may deliver a notice (an “Escalation Notice”)
demanding an in-person meeting involving representatives of the parties hereto at a senior level of management (or, if the parties
agree, of the appropriate strategic business unit or division within such entity). A copy of any such Escalation Notice shall be
given to the General Counsel, or like officer or official, of the party hereto involved in the dispute, controversy, or claim (which
copy shall state that it is an Escalation Notice pursuant to this Agreement). Any agenda, location, or procedures for such discussions
or negotiations between the parties may be established by the parties from time to time; provided, however, that the parties shall
use reasonable best efforts to meet within thirty (30) days of the Escalation Notice.

 

    	Page 13 of 17

    	 

    

 

14.     Warranties; Limitation
of Liability; Indemnity.

 

 (a)     Other than the
statements expressly made by the Providing Party in this Agreement or in any SOW, the Providing Party makes no representation or
warranty, express or implied, with respect to the Services and, except as provided in Section 14(b) hereof, the Customer Party
hereby waives, releases, and renounces all other representations, warranties, obligations, and liabilities of the Providing Party,
and any other rights, claims, and remedies of the Customer Party against the Providing Party, express or implied, arising by law
or otherwise, with respect to any nonconformance, durability, error, omission, or defect in any of the Services, including: (i)
any implied warranty of merchantability, fitness for a particular purpose, or non-infringement; (ii) any implied warranty arising
from course of performance, course of dealing, or usage of trade; and (iii) any obligation, liability, right, claim, or remedy
in tort, whether or not arising from the negligence of the Providing Party.

 

(b)     None
of the Providing Party or any of its Affiliates or any of its or their respective officers, directors, employees, agents,
attorneys-in-fact, contractors, or other representatives shall be liable for any action taken or omitted to be taken by the
Providing Party or such person under or in connection with this Agreement, except that the Providing Party shall be liable
for direct damages or losses incurred by the Customer Party or the Customer Party’s Group arising out of the gross
negligence or willful misconduct of the Providing Party or any of its Affiliates or any of its or their respective officers,
directors, employees, agents, attorneys-in-fact, contractors, or other representatives in the performance or nonperformance
of the Services or Ancillary Services.

 

(c)     In no event shall: (i) the
amount of damages or losses for which the Providing Party and the Customer Party may be liable under this Agreement exceed the
fees due to the Providing Party for the most recent six (6) month period under the applicable Service or SOW(s); provided that
if Services have been performed for less than six (6)months, then the damages or losses will be limited to the value of the actual
Services performed during such period; or (ii) the aggregate amount of all such damages or losses for which the Providing Party
may be liable under this Agreement exceed one million dollars ($1,000,000); provided that no such cap shall apply to liability
for damages or losses arising from or relating to breaches of Section 12 (Confidentiality), infringement of Intellectual Property,
or fraud or criminal acts. Except as provided in Section 14(b) hereof, none of the Providing Party or any of its Affiliates or
any of its or their respective officers, directors, employees, agents, attorneys-in-fact, contractors, or other representatives
shall be liable for any action taken or omitted to be taken by, or the negligence, gross negligence, or willful misconduct of,
any third party.

 

(d)     Notwithstanding anything
to the contrary herein, none of the Providing Party or any of its Affiliates or any of its or their respective officers, directors,
employees, agents, attorneys-in-fact, contractors, or other representatives shall be liable for damages or losses incurred by the
Customer Party or any of the Customer Party’s Affiliates for any action taken or omitted to be taken by the Providing Party
or such other person under or in connection with this Agreement to the extent such action or omission arises from actions taken
or omitted to be taken by, or the negligence, gross negligence, or willful misconduct of, the Customer Party or any of the Customer
Party’s Affiliates.

 

(e)     Without limiting Section
14(b) hereof, no Party hereto or any of its Affiliates or any of its or their respective officers, directors, employees, agents,
attorneys-in-fact, contractors, or other representatives shall in any event have any obligation or liability to the other party
hereto or any such other person whether arising in contract (including warranty), tort (including active, passive, or imputed negligence)
or otherwise for consequential, incidental, indirect, special, or punitive damages, whether foreseeable or not, arising out of
the performance of the Services or this Agreement, including any loss of revenue or profits, even if a Party hereto has been notified
about the possibility of such damages; provided, however, that the provisions of this Section 14(e) shall not limit the indemnification
obligations hereunder of either party hereto with respect to any liability that the other party hereto may have to any third party
not affiliated with any member of the Providing Party’s Group or the Customer Party’s Group for any incidental, consequential,
indirect, special, or punitive damages.

 

(f)    The
Customer Party shall indemnify and hold the Providing Party and its Affiliates and any of its or their respective officers, directors,
employees, agents, attorneys-in-fact, contractors, or other representatives harmless from and against any and all damages, claims,
or losses that the Providing Party or any such other person may at any time suffer or incur, or become subject to, as a result
of or in connection with this Agreement or the Services provided hereunder, except those damages, claims, or losses incurred by
the Providing Party or such other person arising out of the gross negligence or willful misconduct by the Providing Party or such
other person.

 

    	Page 14 of 17

    	 

    
 

15.     Additional Agreements.
The Providing Party shall:

 

(a)   maintain data backup and document storage
and retrieval systems adequate for the provision of the Services;

 

(b)   maintain a business continuity plan
adequate for the provision of the Services and shall provide a copy of such plan upon the Customer Party’s request; and

 

(c)   provide the Services under this Agreement
and any SOW in compliance with (i) all obligations and applicable laws, including, but not limited to, privacy and data protection
laws, labor and overtime laws, tax laws, the U.S. Foreign Corrupt Practices Act, and environmental protection laws, and (ii) all
requirements from any Governmental Authority to maintain necessary licenses and permits.

 

16.     Taxes. Unless otherwise
provided herein or in an applicable SOW, each party hereto shall be responsible for the cost of any sales, use, privilege, and
other transfer or similar taxes imposed on that Party as a result of the transactions contemplated hereby. Any amounts payable
under this Agreement are exclusive of any goods and services taxes, value added taxes, sales taxes, or similar taxes (“Sales
Taxes”) now or hereinafter imposed on the performance or delivery of Services, and an amount equal to such taxes so chargeable
shall, subject to receipt of a valid receipt or invoice as required below in this Section 16, be paid by the Customer Party to
the Providing Party in addition to the amounts otherwise payable under this Agreement. In each case where an amount in respect
of Sales Tax is payable by the Customer Party in respect of a Service provided by the Providing Party, the Providing Party shall
furnish in a timely manner a valid Sales Tax receipt or invoice to the Customer Party in the form and manner required by applicable
law to allow the Customer Party to recover such tax to the extent allowable under such law.

 

17.     Public Announcements.
No Party to this Agreement shall make, or cause to be made, any press release or public announcement or otherwise communicate with
any news media in respect of this Agreement or the transactions contemplated by this Agreement without the prior written consent
of the other party hereto unless otherwise required by law, in which case the party making the press release, public announcement,
or communication shall give the other party reasonable opportunity to review and comment on such and the parties shall cooperate
as to the timing and contents of any such press release, public announcement, or communication.

 

18.     Assignment. This
Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and permitted
assigns. No Party hereto may assign either this Agreement or any of its rights, interests or obligations hereunder without the
prior written approval of the other party hereto; provided, however, that either party may assign this Agreement without the consent
of the other party to any third party that acquires, by any means, including by merger or consolidation, all or substantially all
the consolidated assets of such party. Any purported assignment in violation of this Section 18 shall be void and shall constitute
a material breach of this Agreement.

 

19.     Relationship of the Parties.
The parties hereto are independent contractors and none of the parties hereto is an employee, partner, or joint venturer of the
other. Under no circumstances shall any of the employees of a Party hereto be deemed to be employees of the other party hereto
for any purpose. Except as expressly provided herein, none of the parties hereto shall have the right to bind the others to any
agreement with a third party or to represent itself as a partner or joint venturer of the other by reason of this Agreement.

 

20.     Force Majeure. Neither
party hereto shall be in default of this Agreement by reason of its delay in the performance of, or failure to perform, any of
its obligations hereunder if such delay or failure is caused by strikes, acts of God, acts of a public enemy, acts of terrorism,
riots, or other events that arise from circumstances beyond the reasonable control of that Party (each, a “Force Majeure
Event”). During the pendency of such Force Majeure Event, each of the parties hereto shall take all reasonable steps to fulfill
its obligations hereunder by other means and, in any event, shall, upon termination of such intervening event, promptly resume
its obligations under this Agreement.

 

    	Page 15 of 17

    	 

    

 

21.     Non-Solicitation.
The Customer Party acknowledges that the value to the Providing Party of its business and the transactions contemplated by this
Agreement would be substantially diminished if such Customer Party or any of its Affiliates were to solicit the employment of or
hire any employee of the Providing Party or any member of its Group performing Services, or who has performed Services, hereunder.
Accordingly, the Customer Party agrees that neither it nor any of its Affiliates shall, directly or indirectly, and without the
prior consent of the other party, solicit the employment of, or hire, employ, or retain, or otherwise encourage or cause to leave
employment with the Providing Party, or cause any other Person to hire, employ, or retain, or otherwise encourage or cause to leave
employment with the Providing Party or any of its Affiliates, any Person who is or was employed by the Providing Party or any of
its Affiliates with respect to the provision of Services at any time within twelve (12) months preceding the time of such solicitation
or hiring, employment, retention, or encouragement.

 

22.     Waiver of Jury Trial.
EACH PARTY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY, WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE
A JUDGE SITTING WITHOUT A JURY.

 

Signatures on Following Page

 

    	Page 16 of 17

    	 

    

 

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

 

		OCWEN MORTGAGE SERVICING, INC.
	 	 	 
	 	By:	/s/ John V. Britti
	 	 	John V. Britti 
	 		Title: Executive Vice President, Chief Financial Officer
and Treasurer 
	 	 	 
	 	ALTISOURCE SOLUTIONS S.À R.L.	 
	 	 	 
	 	By:	/s/ William B. Shepro
	 	 	William B. Shepro 
	 	 	Manager 

  

    	Page 17 of 17

    	 

    

 

SCHEDULE I

 

SERVICES

 

	Service	Service Period
	Valuation Services	Through August 31, 2020
	Property Preservation and Inspection	Through August 31, 2020
	REO Sales	Through August 31, 2020
	Trustee Services	Through August 31, 2020
	Title Services	Through August 31, 2020
	Due Diligence Services	Through August 31, 2020
	Mortgage Charge off Collection	Through August 31, 2020
	Mortgage Fulfillment and Underwriting Services	Through August 31, 2020

 

    	Page 1 of 1

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