Document:

exv10w2

 

EXHIBIT 10.2

SERVICES AGREEMENT

     This Services Agreement (this “Agreement”), dated as of February 22, 2008 (the
“Effective Date”), is by and between American Processing Company, LLC, a Michigan limited
liability company (the “Service Provider”), Wilford & Geske, a Minnesota professional
corporation (the “Firm”), and, solely for purposes of making the commitments set forth in
Article VIII (Restrictive Covenants), Lawrence A. Wilford and James A. Geske (each a
“Restricted Party,” and collectively, the “Restricted Parties”). The Firm and the
Service Provider are hereinafter collectively referred to as the “Parties”. Unless
otherwise indicated, capitalized terms used but not otherwise defined herein have the meanings set
forth in Section 1.1 below.

RECITALS

     A. The Firm is a general service law firm engaged in the Practice of Law, including, without
limitation, providing foreclosure, bankruptcy, eviction and related legal services to its Clients
out of the Firm’s principal office located in Woodbury, Minnesota. Prior to the date hereof, in
addition to the Practice of Law, the Firm provided certain non-legal services to its Clients,
including the Mortgage Default Support Services.

     B. Immediately prior to, and in connection with the transactions contemplated by this
Agreement, the Firm has sold to the Service Provider substantially all of the assets (the
“Purchased Assets”) used by the Firm in the business of providing Mortgage Default Support
Services and the Service Provider has assumed certain liabilities of the Firm associated therewith
(the “Assumed Liabilities”) pursuant to that certain Asset Purchase Agreement, executed
concurrently with this Agreement (the “Purchase Agreement”), by and among the Firm, the
Service Provider and the Restricted Parties.

     C. The Firm now desires, subject to the terms and conditions described herein, to engage the
Service Provider to provide Mortgage Default Support Services to the Firm for the benefit of its
Clients; provided, however, that the performance of any Legal Services in
connection with the business of the Firm shall continue to be performed by the Firm.

     D. Each Restricted Party has agreed to become a party to this Agreement for the limited
purpose of agreeing to certain covenants applicable to him as set forth in Article VIII
(Restrictive Covenants).

AGREEMENTS

     In consideration of the foregoing, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I

DEFINITIONS

     1.1 Definition of Certain Terms. The terms defined in this Section 1.1,
whenever used in this Agreement (including in the schedules and exhibits), shall have the
respective meanings indicated below for all purposes of this Agreement:

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

 

     “Affiliate” as applied to any Person, means any other Person, directly or indirectly,
controlling, controlled by, or under common control with, that Person. The term “control”
(including, with correlative meanings, the terms “controlling, “controlled by” and” under common
control with”), as applied to any Persons, includes the possession, directly or indirectly, of ten
percent (10%) or more of the voting power (or in the case of a Person which is not a corporation,
ten percent (10%) or more of the ownership interest, beneficial or otherwise) of such Person or the
power otherwise to direct or cause the direction of the management and policies of that Person,
whether through voting, by contract or otherwise.

     “Agencies” shall mean, individually or collectively, Fannie Mae, Freddie Mac, FHA, VA
and GNMA and any other governmental agencies or quasi-governmental agencies that are residential
mortgage lenders or residential mortgage loan servicing companies that are or become Clients of the
Firm.

     “Agreement” has the meaning set forth in the Preamble of this Agreement.

     “Amended Fee Schedule Date” means January 1, 2009 and each anniversary thereof.

     “Amended Fee Schedule” has the meaning set forth in Section 3.1(c) of this
Agreement.

     “Applicable Law(s)” means any statute, law, ordinance, regulation, requirement, order
or rule of any federal, state, local government or other governmental agency or body or of any
other type of regulatory body, or any governmental or administrative interpretation of any thereof,
including, but not limited to, any and all federal, state and local laws governing the legal
profession generally, including, but not limited to, the State of Minnesota’s Rules of Professional
Conduct, the Fair Debt Collection Practices Act and the Graham-Leach-Bliley Act.

     “Assumed Liabilities” has the meaning set forth in the Recitals of this Agreement.

     “BLS” has the meaning set forth in Section 3.1(b) of this Agreement

     “Breaching Party” has the meaning set forth in Section 9.3 of this Agreement.

     “Business” means the business of providing Mortgage Default Support Services.

     “Business Day” means a day of the year on which banks are not required or authorized
by law to close in Minneapolis, Minnesota.

     “Change” and “Changes” have the meaning set forth in Article X of this
Agreement.

     “Claim” has the meaning set forth in Section 12.6 of this Agreement.

     “Clients” shall mean residential mortgage lenders or residential mortgage loan
servicing companies that have engaged the Firm, or may engage the Firm in the future, as well as
any other Person who receives Legal Services from the Firm.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT; [***] DENOTES OMISSIONS.

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     “Computer System” shall have the meaning set forth for such term in the Purchase
Agreement, together will all enhancements and additions thereto and replacements for any component
parts thereof.

     “CPI” has the meaning set forth in Section 3.1(b) of this Agreement.

     “CPI Percentage” has the meaning set forth in Section 3.1(b) of this
Agreement.

     “Effective Date” has the meaning set forth in the Preamble to this Agreement.

     “Employee Expenses” means any and all employee costs of the Service Provider
Workforce, including, but not limited to, personnel salaries, overtime, bonuses, commissions,
fringe benefits, accrued vacations, sick leave time, profit sharing, pension, and any insurance
benefits.

     “Encumbrances” means any liens, hypothecations, mortgages, charges, security
interests, pledges and other encumbrances and claims of any nature.

     “Engagement Letter” means any engagement letter, contract, agreement or other
arrangement between the Firm and a Client.

     “Extended Term” has the meaning set forth in Section 9.2 of this Agreement.

     “Fannie Mae” shall mean the Federal National Mortgage Association.

     “Fee Schedule” has the meaning set forth in Section 3.1(a) of this Agreement.

     “Firm Confidential Information” has the meaning set forth in Section 7.2(a) of
this Agreement.

     “Firm Damages” has the meaning set forth in Section 12.4 of this Agreement.

     “Firm” has the meaning set forth in the Preamble of this Agreement.

     “First Invoice” has the meaning set forth in Section 3.2(a) of this Agreement.

     “FHA” shall mean the Federal Housing Administration.

     “Force Majeure Condition” shall mean any condition or event beyond the control of the
Party affected thereby, including, but not limited to, fire, explosion, or other casualty, act of
God, war or civil disturbance, acts of public enemies, embargo, the performance or non-performance
of third parties, acts of city, state, local or federal governments in their sovereign, regulatory,
or contractual capacity, labor difficulties and strikes.

     “Freddie Mac” shall mean the Federal Home Loan Mortgage Corporation.

     “GAAP” means United States generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT; [***] DENOTES OMISSIONS.

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Standards Board (or any successor authority) that are applicable as the date of determination,
consistently applied in accordance with past practices.

     “Governmental Body” means any:

          (a) foreign, federal, state, county, municipal, city, town village, district, or other
jurisdiction or government of any nature;

          (b) governmental or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or other entity and any court or other tribunal); or

          (c) body exercising, or entitled or purporting to exercise, any administrative, executive,
judicial, legislative, police, regulatory, or taxing authority or power of any nature.

     “GNMA” shall mean the Government National Mortgage Association.

     “Indemnified Party” has the meaning set forth in Section 12.6 of this
Agreement.

     “Indemnifying Party” has the meaning set forth in Section 12.6 of this
Agreement.

     “Initial Term” has the meaning set forth in Section 9.1 of this Agreement.

     “Initial Year” has the meaning set forth in Section 3.1(b) of this Agreement.

     “Insolvent” means a party who makes an assignment for the benefit of its creditors, or
voluntarily commences proceedings in bankruptcy, reorganization or liquidation under the United
States Bankruptcy Code, 11 U.S.C. §§ 101, et seq., as amended, or under any other
state, federal or Applicable Law for the relief of debtors (or an action under any such laws is
commenced against such party and is not discharged within 60 days); or (c) has a receiver, trustee
or custodian appointed to operate its business who is not discharged within 60 days of his, her or
its appointment.

     “Investors” shall mean Fannie Mae, Freddie Mac and the Private Investors,
collectively.

     “Invoice” means any Monthly Invoice or the First Invoice.

     “Legal Services” means the practice of law, including counseling or assisting others
in matters that require the use of legal discretion and profound legal knowledge, the giving of
advice or the rendering of any service requiring the use of legal skill or knowledge or any other
such service, the provision of which by an individual whom is not a licensed attorney, would
constitute the unauthorized practice of law in the State of Minnesota.

     “Malpractice Insurance Policies” has the meaning set forth in Section 4.6 of
this Agreement.

     “Material Breach” means any breach of this Agreement by one Party that:

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT; [***] DENOTES OMISSIONS.

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     (a) significantly deprives the Non-breaching Party of the material benefits afforded to
it under this Agreement;

     (b) causes the Non-breaching Party to suffer losses or damages that cannot be properly
redressed by the payment of money; or

     (c) constitutes gross negligence or willful misconduct on the part of the Breaching
Party.

     “Measuring Month” has the meaning set forth in Section 3.1(b) of this
Agreement.

     “Monetary Default Event” has the meaning set forth in Section 9.3 of this
Agreement.

     “Monthly Invoice” has the meaning set forth in Section 3.2(a) of this
Agreement.

     “Mortgage Default Support Services” means the mortgage default support and processing
services summarized on Exhibit A, which are undertaken in connection with residential
mortgage defaults including, but not limited to, the processing and support of foreclosures,
foreclosure sales, evictions, torrens action, reduced redemption and bankruptcy filings, but
excluding in each instance any Legal Services; provided, however, the Mortgage
Default Support Services shall not include the direct provision by Service Provider of any service
of process, auction services, title services, and posting and newspaper publication services.

     “New Fee Amount” has the meaning set forth in Section 3.1(b) of this
Agreement.

     “Non-breaching Party” has the meaning set forth in Section 9.3 of this
Agreement.

     “Objection Notice” has the meaning set forth in Section 3.1(c) of this
Agreement.

     “Office Products” has the meaning set forth in Section 4.4 of this Agreement.

     “Parties” has the meaning set forth in the Preamble of this Agreement.

     “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof.

     “Practice of Law” means any activities that constitute providing Legal Services.

     “Prevailing Party” has the meaning set forth in Section 12.2 of this
Agreement.

     “Private Investors” shall mean individual private investors who make or invest in
residential mortgage loans.

     “Purchase Agreement” has the meaning set forth in the Recitals to this Agreement.

     “Purchased Assets” has the meaning set forth in the Recitals of this Agreement.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT; [***] DENOTES OMISSIONS.

5

 

     “Reasonable Attorneys’ Fees” shall mean those attorney’s fees actually incurred in
obtaining specific performance, injunctive relief or a judgment in favor of the Prevailing Party.

     “Restricted Period” has the meaning set forth in Section 8.1(a) of this
Agreement.

     “Restrictive Covenants” has the meaning set forth in Section 8.1 of this
Agreement.

     “Second Invoice” has the meaning set forth in Section 3.2(a) of this
Agreement.

     “Service Provider Confidential Information” has the meaning set forth in Section
7.1(a) of this Agreement.

     “Service Provider Intellectual Property” has the meaning set forth in Section
7.6 of this Agreement.

     “Service Provider Workforce” has the meaning set forth in Section 5.1 of this
Agreement.

     “Service Provider” has the meaning set forth in the Preamble of this Agreement.

     “Standard Operating Procedures” or “SOPs” means the operating procedures
agreed to by the Parties regarding the provision of Mortgage Default Support Services by the
Service Provider to the Firm.

     “Termination Date” means the effective date of the termination of this Agreement in
accordance with Sections 9.3, 9.4 or 9.5.

     “Territory” has the meaning set forth in Section 8.1(a) of this Agreement.

     “Transition” has the meaning set forth in Section 6.2.

     “Transition Plan” has the meaning set forth in Section 6.2.

     “Veritas Software” means that certain case management software program owned by the
Service Provider and used in the provision of Mortgage Default Support Services whether or not such
program is referred to by the name “Veritas”.

     “Work Product” shall mean all work product developed by the Firm, or any of its
employees or approved subcontractors including Service Provider, for the Firm’s Clients (tangible,
recorded or otherwise, and without regard to the form of recordation or state of completion),
whether or not the services being performed are complete and specifically includes all work product
of the Service Provider in providing the Mortgage Default Support Services, other solely than such
materials relating to the Service Provider’s internal administration (its employees, equipment,
software and other systems).

     “Work-in-Process” shall mean at any time shall mean the files for which some portion
of mortgage default processing and support services have been performed by the Firm prior to the
Effective Date.

     “VA” shall mean the Department of Veterans Affairs.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
 ACT; [***] DENOTES OMISSIONS.

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     1.2 Additional Terms. The terms “hereof,” “herein” and “hereunder” and terms of
similar import are references to this Agreement as a whole and not to any particular provision of
this Agreement. The term “including” as used in this Agreement is used to list items by way of
example and shall not be deemed to constitute a limitation of any term or provision contained
herein. As used in this Agreement, the singular or plural number shall be deemed to include the
other whenever the context so requires. Section, paragraph, clause, Exhibit and Schedule
references contained in this Agreement are references to sections, paragraphs, clauses, Exhibits
and Schedules in or to this Agreement, unless otherwise specified.

ARTICLE II

SERVICES TO BE PROVIDED BY THE SERVICE PROVIDER

     2.1 Mortgage Default Support Services. The Firm hereby engages the Service Provider,
and the Service Provider hereby agrees, to perform the Mortgage Default Support Services that the
Firm has determined or established as necessary and essential for the benefit of, and on behalf of,
its Clients, including, but not limited to, those set forth on Exhibit A.

     2.2 Supervision of Service Provider Personnel. The Parties intend that all employees
of the Service Provider who are providing Mortgage Default Support Services pursuant to this
Agreement, shall, to the extent required by Applicable Law, work under the direct or indirect
supervision of an attorney employed by the Firm solely with respect to any Legal Services. Such
supervising attorney shall have the ultimate authority as to all Legal Services regarding each
file, matter, or case for which the Service Provider is performing the Mortgage Default Support
Services. Notwithstanding the foregoing, Service Provider shall be solely responsible for the
supervision of its employees as to employment-related matters.

     2.3 Standard Operating Procedures. The Standard Operating Procedures shall be
initially formulated in compliance with all Applicable Laws. Until the parties agree otherwise,
the Standard Operating Procedures shall be those utilized by the Firm in providing such services
with respect to its Client files prior to the Effective Time, which such SOPs shall be communicated
by the Firm to the Service Provider. The Standard Operating Procedures shall be amended from time
to time by the Parties, in accordance with changes in Applicable Law, or for the reasonable
accommodation of reasonable requests by the Firm, based upon the changing requirements of its
Clients, Investors or Agencies, any such amendment to be made upon the mutual agreement of the
Parties.

     2.4 Exclusivity. During the term of this Agreement (including any extensions or
renewals thereof), none of the Service Provider or any of its Affiliates shall directly or
indirectly provide Mortgage Default Support Services to any other Person with respect to Legal
Services related to real estate located in the State of Minnesota. The foregoing shall apply to
all Persons performing Legal Services related to real estate located in Minnesota whether or not
such Person is actually located in the State of Minnesota or simply providing Legal Services in
Minnesota. For clarity, during the term of this Agreement (including any extensions or renewals
thereof), the foregoing shall prohibit the Service Provider and its Affiliates from directly or
indirectly licensing the Veritas Software to any other Person with respect to Legal Services
related to real estate located in the State of Minnesota. Notwithstanding the foregoing, Service
Provider shall, with the prior written consent of the Firm (which consent will not be unreasonably
withheld or

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
 ACT; [***] DENOTES OMISSIONS.

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delayed), be entitled to provide Mortgage Default Support Services to any Person who has sold
to the Service Provider substantially all of the assets used by such Person in the business of
providing Mortgage Default Support Services. The parties acknowledge that it would be reasonable
for the Firm to withhold its consent if the provision of Mortgage Default Support Services by the
Service Provider could reasonably be expected to lead to the material erosion of the Firm’s market
share or reduce or eliminate a material competitive advantage of the Firm.

     2.5 Employees. The Firm shall have the right to request that any employee of Service
Provider that is providing Mortgage Default Support Services to the Firm hereunder be removed from
providing such services and the Parties shall cooperate in good faith to accommodate any such
request as soon as reasonably practicable. The Parties shall cooperate in good faith as to the
staffing by Service Provider of the personnel providing Mortgage Default Support Services to the
Firm, including, without limitation, the removal, replacement or other change in such personnel.

ARTICLE III

COMPENSATION AND REIMBURSEMENT

     3.1 Fees and Reimbursement.

     (a) Initial Fee Schedule. Subject to the terms and conditions of this Section 3.1, in
consideration for the performance of the Mortgage Default Support Services hereunder, the Service
Provider will be compensated on a per file fee basis for each file on which the Firm utilizes the
Service Provider for Services in accordance with the following fee schedule (the “Fee
Schedule”):

	 	 	 
	Type of File	 	Per File Fee
	Foreclosure

	 	$[***]
	Bankruptcy

	 	$[***]
	Eviction

	 	$[***]
	Reduced Redemption

	 	$[***] (for files opened prior to January 1, 2008)
	 

	 	$[***] (for files opened on or after January 1, 2008)
	Torrens Action

	 	$[***]
	Other

	 	$[***]

The Fee Schedule set forth above shall be in effect for a period starting on the Effective Date and
ending on March 31, 2009. For the avoidance of doubt, the Parties acknowledge that the per file fee
for each file will not be less than or exceed the specified per file fee in effect for that
particular type of file at the time the Firm directs the Service Provider to perform Mortgage
Default Support Services for a particular file, without regard to the amount of Mortgage Default
Support Services required with respect to such file.

     (b) Amended Fee Schedule.

          (i) The parties acknowledge and agree that, for each of the calendar years 2009, 2010, 2011
2012 and 2013 (each an “Initial Year”), on April 1st of each Initial Year, each
per file fee set forth on the Fee Schedule shall be increased to equal that amount (the “New
Fee 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
 ACT; [***] DENOTES OMISSIONS.

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Amount”) equal to the product of (x) the per file fee in effect during the immediately
preceding Initial Year and (y) the CPI Percentage. In no event shall the New Fee Amount for any
per file fee be less than the per file fee for the immediately preceding year. For each Initial
Year, the New Fee Amount for each fee per file shall be submitted to the Firm in writing by Service
Provider on a date that is no later than thirty (30) days after the publication of the Consumer
Price Index — All Urban Consumers, U.S. City Average by the BLS (as defined below) for the
applicable Measuring Month (as defined below). The Firm acknowledges that it shall have no right to
contest the New Fee Amounts for any Initial Year. For purposes of this Agreement, for any Initial
Year, the “CPI Percentage” shall equal the product of (x) 100% and (y) a fraction, the
numerator of which is the Consumer Price Index — All Urban Consumers, U.S. City Average (the
“CPI”) compiled and published by the Bureau of Labor Statistics and the Department of Labor
(the “BLS”) for the United States of America for the month of February immediately
preceding April 1st of such Initial Year (the “Measuring Month”) and the
denominator of which is the CPI for the month twelve (12) months prior to such Measuring Month. In
the event that the CPI Percentage is less than 100% for any Initial Year, the Parties agree that
there shall be no increase or decrease to the per file fee in effect for such Initial Year;
provided, however, if, for a given Initial Year, the CPI percentage is calculated
to be less than 100%, the CPI Percentage for the next Initial Year shall be computed using the
Measuring Month twenty-four (24) months prior to such Measuring Month as the denominator. For
purposes of example only, to determine the CPI Percentage for the adjustment to be made on April 1,
2009 the CPI Percentage would equal the product of (x) 100% and (y) a fraction, the numerator of
which would equal the Consumer Price Index — All Urban Consumers, U.S. City Average published by
the BLS for the month of February 2009 and the denominator of which would be the Consumer Price
Index — All Urban Consumers, U.S. City Average published by the BLS for the month of February
2008. In addition, for purposes of example only, if the CPI Percentage is calculated to be less
than 100% in 2009, then the CPI Percentage for the adjustment to be made on April 1, 2010 would be
equal the product of (x) 100% and (y) a fraction, the numerator of which would equal the Consumer
Price Index — All Urban Consumers, U.S. City Average published by the BLS for the month of
February 2010 and the denominator of which would be the Consumer Price Index — All Urban
Consumers, U.S. City Average published by the BLS for the month of February 2008.

     (c) For each year during the term of this Agreement after the Initial Years, on or before the
forty-fifth (45th) day prior to an Amended Fee Schedule Date, the Service Provider may propose to
the Firm an amended Fee Schedule (an “Amended Fee Schedule”) that will be in effect for the
one-year period commencing with the applicable Amended Fee Schedule Date. On or before the
fifteenth (15th) day after receiving the proposed Amended Fee Schedule, the Firm may deliver to the
Service Provider a notice of objection to the proposed Amended Fee Schedule (an “Objection
Notice”). If no such Objection Notice is timely delivered by the Firm to the Service Provider,
then that Amended Fee Schedule shall be binding on the Parties for the one-year period commencing
on the applicable Amended Fee Schedule Date. If the Firm does timely deliver to the Service
Provider an Objection Notice, the Firm and the Service Provider shall thereafter negotiate with
each other in good faith to agree upon an Amended Fee Schedule. If the Firm and the Service
Provider are unable to agree upon an Amended Fee Schedule within thirty (30) days after an
Objection Notice has been given, then the existing Fee Schedule shall remain in effect and the
Service Provider shall thereafter have the option of terminating this Agreement in its sole
discretion in accordance with Section 9.4 hereof.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
 ACT; [***] DENOTES OMISSIONS.

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     (d) Client Related Third Party Expenses. Notwithstanding anything to the contrary herein, the
Firm agrees that it will pay all Client related third party expenses incurred by the Service
Provider as a part of the performance of the Mortgage Default Support Services hereunder,
including, but not limited to, fees paid for (i) publication and posting of legal notices; (ii)
title insurance; (iii) filing of deeds and other legal documents; (iv) sheriff services; (v)
packaging services; and (vi) court costs.

     3.2 Invoice and Payments.

     (a) Invoice. Within fifteen (15) days following the end of each calendar month during the
term of this Agreement, and any extensions or renewals thereof, the Service Provider shall submit
an invoice to the Firm (each a “Monthly Invoice”) indicating (i) the number and types of
files referred by the Firm to the Service Provider for processing during the preceding month and
(ii) the total amount due to the Service Provider for such files referred during the preceding
month. The first such Monthly Invoice shall be delivered on February 27, 2008 (the “First
Invoice”) and for this Invoice only, the amount will equal the product of: (A) [***]; (B) the
number of Foreclosure, Bankruptcy, Eviction, Proceeding Subsequent and Reduced Redemption files
referred to the Firm prior to the Effective Date but after the date that is [***] days, [***] days,
[***] days, [***] days and [***] days, respectively, prior to the Effective Date; and (C) the
applicable per file fee identified in the Fee Schedule. For purposes of calculating the First
Invoice, the parties hereby agree that the First Invoice shall estimate the following number of
Foreclosure, Bankruptcy, Eviction, Proceeding Subsequent and Reduced Redemption files as having
been referred to the Firm prior to the Effective Date but after the dates specified for each file
type set out in the immediately preceding sentence, as follows: [***] files, [***] files, [***]
files, [***] files, and [***] files, respectively. The amounts set forth in the immediately
preceding sentence shall be reflected in the First Invoice; provided, however,
within ninety (90) days after the Effective Date, the Parties shall together agree on the actual
file counts involved. To the extent the Parties determine that the actual file count is different
than the amounts set forth above, the Service Provider shall include an adjustment for such
difference in the first Monthly Invoice for which such information is available. The second
Monthly Invoice shall be delivered on or before March 15, 2008 (the “Second Invoice”) and
for this Invoice only, the amount will equal the product of: (Y) the files created by the Firm for
the period subsequent to the Effective Date through and including February 29, 2008 and (Z) the per
file fee identified in the Fee Schedule.

     (b) Objection. The Firm shall have the right to dispute, in good faith, any Invoice, in part
or in total. The Firm will promptly notify the Service Provider of any dispute regarding any
Invoice, and the Parties agree to use their best efforts to promptly resolve any such dispute. If
the Parties are unable to reach a resolution, then the Parties will choose a mutually acceptable
independent accounting firm to resolve such dispute. The decision of the independent accounting
firm shall be final as to all matters relating to such dispute, and the Parties shall split all
costs associated with the engagement of the independent accounting firm equally. When attempting to
resolve any such dispute, the Parties agree to allow the other Party and the independent accounting
firm access to all information relevant to such issue(s) in dispute, unless such access would
violate any other provision of this Agreement, the attorney client privilege or any client secrets.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
 ACT; [***] DENOTES OMISSIONS.

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     (c) Payment. The Firm shall pay each Invoice within fifteen (15) days after receipt thereof;
provided, however, that the Firm is under no obligation to make any payments for any amounts in any
Invoice that is subject to a dispute as provided in Section 3.2(b) above, until ten (10)
days after such dispute is resolved.

     3.3 Reasonable Value. The Firm and the Service Provider acknowledge and agree that
the Fee Schedule has been, and any Amended Fee Schedule shall be, negotiated at arm’s-length and
represents the reasonable value of the Mortgage Default Support Services furnished by the Service
Provider pursuant to this Agreement, considering the nature and volume of the services required.
Payment of the fees pursuant to Section 3.2 hereof is not intended to be and shall not be
interpreted or applied as permitting the Service Provider to share in the Firm’s fees for Legal
Services performed by the Firm on behalf of its Clients.

ARTICLE IV

AFFIRMATIVE COVENANTS OF THE FIRM

     4.1 Exclusive Use of the Service Provider for Mortgage Default Support Services.
During the term of this Agreement and any extensions or renewals thereof, the Firm shall engage
only the Service Provider to provide Mortgage Default Support Services (or services similar to the
Mortgage Default Support Services) for the Firm or on behalf of a Client, and shall not retain,
hire, employ, use or engage any other Person to provide such services.

     4.2 Notification to and Consents from Clients. In accordance with Applicable Law and
any Engagement Letter, the Firm shall notify and, where required by the terms or conditions of any
Engagement Letter, obtain the consent of its existing Clients and any new Clients of the Firm’s
intention to use the Service Provider to provide Mortgage Default Support Services.

     4.3 Supervision of Service Provider Employees. The Firm agrees to cause its
attorneys to provide supervision (as to Legal Services only) of the employees of the Service
Provider that are providing Mortgage Default Support Services in compliance with Applicable Law.

     4.4 Support of the Service Provider. The Firm shall permit employees of the Service
Provider to have access to, and the authorized use of, all software and assets owned or licensed by
the Firm needed by the Service Provider to operate the Business and to adequately and efficiently
provide the Mortgage Default Support Services to the Firm and its Clients; provided,
however, nothing in this Section 4.4 shall be deemed to create any affirmative
obligation on the Firm’s part to purchase or acquire any such software or assets; provided,
further, in connection with the acquisition or use by the Service Provider of any such
software or asset, the Parties shall work together in good faith to determine the Service
Provider’s allocable share, if any, of such expense. Notwithstanding the foregoing, to the extent
the Firm fails to provide the Service Provider with the authorized use of all software and assets
owned or licensed by the Firm reasonably needed by the Service Provider to operate the Business and
to adequately and efficiently provide the Mortgage Default Support Services, the Service Provider
shall not be required to provide Mortgage Default Support Services with respect to any file that
requires such authorized use or access. Except as otherwise agreed to by the Parties in writing,
all office furniture, office equipment (including, but not limited to, telephones, computers and
copiers),

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

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office supplies and all other normal and customary office products associated with or required
to perform the Mortgage Default Support Services contemplated by this Agreement (collectively, the
“Office Products”) shall be the responsibility of the Service Provider. The Firm shall
have no responsibility for any Employee Expenses. The Firm shall provide to the Service Provider
in a timely manner file count reports in a form consistent with, and using the same methodology as,
the file count reports generated by the Firm for its own account prior to the date of this
Agreement.

     4.5 Compliance With Law; Adherence to Professional Standards.

     (a) Professional Ethical Requirements. From and after the Effective Date, the Firm shall
fully inform the Service Provider of all professional ethical responsibilities relating to the
Practice of Law (and any changes thereto), as the same may be applicable to any Mortgage Default
Support Services to be performed by the Service Provider under this Agreement. The Parties will
cooperate to protect and maintain the confidences and secrets of Clients to the full extent
required by any professional ethics rules applicable to the Practice of Law, however, each Party
shall be responsible for any breaches by its employees of his/her obligation to protect and
maintain the confidences and secrets of any Clients.

     (b) Compliance with Applicable Laws. The Firm shall perform Legal Services diligently,
conscientiously and in a manner consistent with professional and ethical standards and in
compliance with all Applicable Laws, including laws and professional ethical rules and requirements
applying to the legal profession, and requirements of the Agencies. It is expressly acknowledged
by the Parties that all Legal Services provided by the Firm shall be performed solely by licensed
attorneys or under the direct supervision and control of licensed attorneys. Each of the attorneys
working for the Firm shall be licensed to practice law in the State of Minnesota, and any other
state or federal district in which such attorney renders Legal Services. The Firm shall require
that all attorneys who are licensed and in good standing as lawyers with the applicable licensing
authorities in one or more states and who perform the Practice of Law who are employees of the Firm
comply with Applicable Laws, including, but not limited to, all applicable ethical standards and
rules of professional responsibility relating to the Practice of Law.

     4.6 Maintenance of Malpractice Insurance. During the term of this Agreement and any
extensions or renewals thereof, and except as otherwise provided herein, the Firm shall maintain
legal malpractice insurance policies (the “Malpractice Insurance Policies”) in at least the
same amount as provided for by the Firm’s current Malpractice Insurance Policies issued by an
insurance carrier with an A.M. Best rating of “A” or better. The Firm represents and warrants that
the Malpractice Insurance Policies, as described on Exhibit B hereto, are in full force and
effect and the Firm is not in default under any of them and no claim for coverage thereunder has
been denied under any such current Malpractice Insurance Policies with respect to any matter. At
the request of the Service Provider from time to time, the Firm shall furnish the Service Provider
with a copy of the certificate of insurance evidencing the coverage under such Malpractice
Insurance Policies and the Firm agrees that no such Malpractice Insurance Policies may be cancelled
or the amount of coverage under such Malpractice Insurance Policies reduced without thirty (30)
days prior written notice to the Service Provider.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

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     4.7 Email. Subject to the terms of this Agreement, the Firm hereby agrees that it
shall permit each employee of the Service Provider that provides Mortgage Default Support Services
to the Firm during the term of this Agreement and any extension thereof to use the email domain
name “wilfordgeske.com”, or such other domain name in use by the Firm for the provision of such
services; provided, however, such use shall in no way make any such employee of the
Service Provider be deemed an “employee” of the Firm. Service Provider hereby agrees that none of
its employees that utilize such email address shall be permitted to provide Mortgage Default
Support Services to any other customers of Service Provider so long as such employees utilize the
Firm’s email system under the Firm’s domain name.

ARTICLE V

AFFIRMATIVE COVENANTS OF THE SERVICE PROVIDER

     5.1 Hiring and Maintenance of Service Provider Workforce; Compensation. The Service
Provider shall employ or otherwise retain and be responsible for selecting, hiring, training and
supervising all personnel necessary or appropriate for the proper operation of the Service Provider
and the provision of Mortgage Default Support Services to the Firm (the “Service Provider
Workforce”). All employee and employment benefit matters shall be the responsibility of the
Service Provider, including, but not limited to, the number, nature, type, quality and compensation
of the Service Provider Work Force and all administrative or governmental filings regarding
employment. The Service Provider shall have sole responsibility for the Employee Expenses.

     5.2 Office Products. The Service Provider shall provide all Office Products to its
employees in connection with its obligations under this Agreement, and shall have sole
responsibility for the maintenance and insurance of such personalty except as otherwise agreed
pursuant to Section 4.4 above.

     5.3 Performance of Mortgage Default Support Services. Service Provider shall perform
the Mortgage Default Support Services in a manner consistent with the historical practices of the
Firm and the SOPs. The Service Provider shall use commercially reasonable efforts to maintain
such level of personnel as is necessary to perform the Mortgage Default Support Services in a
manner consistent with the historical practices of the Firm and the SOPs.

     5.4 Prohibition Against Providing Legal Services. The Parties acknowledge that the
Service Provider is not authorized or qualified to engage in any activity which under Applicable
Laws may only be performed by licensed attorneys and that nothing herein shall be construed as
permitting or authorizing the Service Provider to provide Legal Services to Clients.
Notwithstanding anything to the contrary in this Agreement, to the extent any act or service
required of the Service Provider is construed or deemed to constitute the provision of Legal
Services, the Service Provider is released from any obligation to provide, and the Firm shall be
deemed not to have requested the Service Provider to provide, such act or service.

     5.5 Independence. The Firm will be the exclusive provider of Legal Services to
Clients under this Agreement and the Firm shall have complete and absolute control over the methods
by which the Practice of Law is conducted by the Firm. All matters involving the internal
management, control, or finances of the Firm shall remain the sole responsibility of the

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
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Firm and its shareholders, and the Service Provider shall have no authority whatsoever over
the Firm as it relates to its Practice of Law.

     5.6 Compliance with Applicable Laws. The Service Provider shall at all times
diligently and conscientiously perform the Mortgage Default Support Services in compliance in all
material respects with all Applicable Laws, including, without limitation, workers compensation,
Tax laws, workers health, welfare and safety laws, overtime laws and all other Applicable Laws
relating to the provision of the Mortgage Default Support Services by the Service Provider to the
Firm.

     5.7 Insurance. Service Provider, at its sole cost and expense, will maintain
appropriate insurance with Commercial General Liability Broad Form Coverage, including Contractual
Liability, Protective Liability, Professional Errors and Omissions, and Personal Injury/Property
Damage Coverage, in a combined single limit of not less than $1,000,000, covering the Purchased
Assets, all of the Service Provider’s activities on the Leased Real Property (as defined in the
Purchase Agreement) and the provision of Mortgage Default Support Services to the Firm pursuant to
the provisions of this Agreement. A Certificate of Insurance indicating such coverage will be
delivered to the Firm upon request. The Certificate will (a) indicate that the policy will not
change or terminate without at least thirty (30) days prior written notice to the Firm and (b) name
the Firm as an additional named insured.

     5.8 Confidentiality. The Service Provider shall cause each of its employees that
provide the Mortgage Default Support Services to the Firm to sign an agreement whereby such
employee shall agree to keep confidential the Firm’s and its Client’s confidential information.
Upon request, the Service Provider shall provide a copy of such agreement to the Firm.

     5.9 Computer System. The Computer System (and, upon the transition to the Veritas
Software in accordance with Section 6.2 below, the software required to perform the
Mortgage Default Support Services) are being provided by the Service Provider. During the term of
this Agreement, the Service Provider shall provide the Firm with reasonable access to and the use
of the Computer System to the extent needed by the Firm in connection with Legal Services (without
infringing the intellectual property rights of any Person) and will not unreasonably limit,
terminate or otherwise interfere with any access to or use by the Firm, of the Computer System.
Notwithstanding the foregoing, the Firm acknowledges and agrees that (i) nothing in this
Section 5.9 shall be deemed to grant any ownership interest in the Veritas Software or any
other software owned or licensed by the Service Provider to the Firm, (ii) any and all use or
access to the Veritas Software or any other software owned by the Service Provider during the Term
of this Agreement and any Extended Term thereof shall immediately cease upon any termination of
this Agreement and (iii) nothing in this Section 5.9 shall be deemed to create any
affirmative obligation on the Service Provider’s part to purchase or acquire any software or
assets, or to make any modification thereto.

ARTICLE VI

CERTAIN COVENANTS OF BOTH PARTIES

     6.1 Records. The Parties shall maintain accurate books and records regarding the
provision of Mortgage Default Support Services to the Firm by the Service Provider, in

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
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compliance with all Applicable Laws, and shall retain such records for not less than five (5)
years or for such longer period as may be required under Applicable Law, including any securities
laws applicable to Service Provider or its Affiliates.

     6.2 Transition to Veritas. The Service Provider shall use its commercially reasonable
efforts to adapt the Veritas Software for use by the Firm and utilize the Veritas Software for the
benefit of the Firm and its Clients. The Firm shall use its commercially reasonable efforts to
cooperate with the Service Provider in the adaptation of the Veritas Software for use by the Firm
after the Effective Date. The Service Provider shall not initiate the transition (the
“Transition”) of any Mortgage Default Support Services from the Computer System unless and
until the Service Provider has demonstrated to the Firm’s reasonable satisfaction that transition
of new Client files to the Veritas Software and the Veritas System will not negatively impact the
Firm’s provision of Legal Services to its Clients, including, without limitation, the quality,
timeliness and accuracy thereof, in accordance with a testing, acceptance and transition plan (the
“Transition Plan”) agreed to by and between the Firm and the Service Provider.

     6.3 No Use of Party or Client Name. Except as otherwise provided herein, neither
Party. without prior written consent of the other Party, will use, in any advertising or
promotional material or promotional media, the other Party’s name or logo or the name or logo of
any Affiliate of the other Party, or otherwise identify the other Party or any Client.

ARTICLE VII

CONFIDENTIALITY; INTELLECTUAL PROPERTY

     7.1 Protection of the Service Provider’s Confidential Information.

     (a) Confidential Information. All confidential information, proprietary information and
rights, and trade secrets of the Service Provider (the “Service Provider Confidential
Information”), shall be safeguarded and treated as confidential by the Firm. Service Provider
Confidential Information includes, but is not limited to, records, files, electronic records,
documents, bulletins, publications, manuals, financial data and information, marketing plans and
proposals, accounting control procedures and any information relating to and concerning the
identity of customers, prospects, suppliers, employees and manner of operations of the Service
Provider. Service Provider Confidential Information shall also include specifications, software
code (including, but not limited to, the Veritas Software program owned by the Service Provider),
design, materials, documentation, flow charts, diagrams, schematics, data, databases, and business
and production methods and techniques of the Service Provider and all other confidential
information, proprietary information and rights, and trade secrets of the Service Provider.

     (b) Nondisclosure of Confidential Information. The Firm recognizes and acknowledges that the
Service Provider Confidential Information is valuable, special and unique and that the protection
of Service Provider Confidential Information is critical to the Service Provider and its ability to
maintain its competitive advantage over its competitors. In furtherance thereof, the Firm shall
use Service Provider Confidential Information solely in conjunction with this Agreement. Without
the express written consent of the Service Provider, the Firm shall not

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
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at any time disclose Service Provider Confidential Information to any Person except in
furtherance of this Agreement.

     (c) Disclosure under Court Order. Notwithstanding the foregoing restrictions, the Firm may
use and disclose any Service Provider Confidential Information to the extent required by an order
of any court or other governmental authority, but only after the Service Provider has been so
notified and has had the opportunity, if possible, to obtain reasonable protection for such
information in connection with such disclosure. The Firm shall cooperate fully with the Service
Provider at the Service Provider’s expense in connection with obtaining any protective order or
other appropriate remedy.

     7.2 Protection of Firm Confidential Information.

     (a) Confidential Information. All confidential information, proprietary information and
rights and trade secrets of the Firm (“Firm Confidential Information”), shall be
safeguarded and treated as confidential by the Service Provider. Firm Confidential Information
includes, but is not limited to any records, files, electronic records, documents, bulletins,
publications, manuals, financial data and information, marketing plans and proposals, accounting
control procedures, information relating to Clients, customers, prospects, suppliers, employees and
manner of operations of the Firm, and any information of or pertaining to a Client that is
confidential or privileged pursuant to any contract, statute, regulation, rule, code or legal
precedent. Firm Confidential Information shall also include specifications, software code, design,
materials, documentation, flow charts, diagrams, schematics, data, databases and business and
production methods and techniques of the Firm and all other confidential information, proprietary
information and rights and trade secrets of the Firm.

     (b) Nondisclosure of Confidential Information. The Service Provider recognizes and
acknowledges that Firm Confidential Information is valuable, special and unique and that the
protection of Firm Confidential Information is critical to the Firm. In furtherance thereof, the
Service Provider shall use Firm Confidential Information solely in conjunction with this Agreement.
Without the express written consent of the Firm, the Service Provider shall not at any time
disclose Firm Confidential Information to any Person except in furtherance of this Agreement.

     (c) Disclosure under Court Order. Notwithstanding the foregoing restrictions, the Service
Provider may use and disclose any Firm Confidential Information to the extent required by an order
of any court or other governmental authority, but only after the Firm has been so notified and has
had the opportunity, if possible, to obtain reasonable protection for such information in
connection with such disclosure. The Service Provider shall cooperate fully with the Firm in
connection with obtaining any protective order or other appropriate remedy.

     7.3 Confidentiality of Third Party Information.

     (a) Confidentiality of Third Party Confidential Information. The Parties recognize that each
Party has received and in the future may receive confidential or proprietary information of Clients
and other third parties and such information is subject to a duty on the part of the recipient to
maintain the confidentiality of such information and to use it only for certain limited

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

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purposes. The Parties agree at all times during the term of this Agreement and thereafter, to
hold in strictest confidence, and not to use, except in connection with the Firm’s performance of
Legal Services, or the performance of Mortgage Default Support Services by the Service Provider and
not to disclose to any Person, or to use it except as necessary in the Firm’s performance of Legal
Services, or the performance of Mortgage Default Support Services by the Service Provider,
consistent with their respective agreements with, or obligations under Applicable Law to, such
Clients or other third parties.

     (b) Covenant Against Disclosure. Each Party agrees to use commercially reasonable efforts to
safeguard the confidential material and to prevent the unauthorized, negligent or inadvertent use
or disclosure thereof.

     7.4 Exceptions to Definition of Confidential Information. Unless the Client has
requested the information be held in confidence and the Firm has a reasonable belief that the
disclosure would not be embarrassing or detrimental to the Client, the obligations of the Parties
to treat any information as proprietary and confidential under this Article VII shall not apply to
information which (i) is publicly available, (ii) is developed by the Service Provider or the Firm
outside the scope of this Agreement or any agreement with a Client, or (iii) is obtained from third
parties that is not bound, to the knowledge of the receiving party, by an obligation of
confidentiality.

     7.5 Remedies. The Parties acknowledge that disclosure of any confidential material
could give rise to irreparable injury to the Parties and that such injury may be inadequately
compensable in damages. Accordingly, the Firm or the Service Provider, as applicable, may seek
injunctive relief against the breach or threatened breach of the undertakings set forth in
Sections 7.1, 7.2 and 7.3. This relief shall not be exclusive of, and
shall be in addition to, any other remedies available at law or equity.

     7.6 Ownership of Intellectual Property. The Firm acknowledges and agrees that the
Service Provider owns the worldwide right, title, and interest in and to any and all of the Service
Provider’s inventions, original works of authorship, findings, conclusions, ideas, data, databases,
flowcharts, scripts, discoveries, developments, concepts, improvements, techniques, processes and
know-how, whether or not patentable or registrable under copyright or similar laws, created or
developed or licensed or purchased by Service Provider prior to the date of this Agreement, which
relate to the provision of Mortgage Default Support Services including all patent rights,
copyrights, trademarks, know-how and trade secrets, or other intellectual property rights related
thereto and all modifications, improvements or changes thereto (the “Service Provider Intellectual
Property”). Notwithstanding the foregoing, the Parties acknowledge and agree that the Service
Provider Intellectual Property shall not include any confidential information, proprietary
information and rights and trade secrets which were Excluded Assets under the Purchase Agreement
and nothing in this Section 7.6 shall prohibit the Firm’s ability to use any such Excluded Assets
in the Practice of Law.

     7.7 License of the Service Provider Intellectual Property. During the term of this
Agreement, the Service Provider hereby grants the Firm a nonexclusive, worldwide, and royalty-free
license to use the Service Provider Intellectual Property for the benefit of Clients, subject to
the following terms, conditions, and restrictions:

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

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     (a) The license granted pursuant to this Section 7.7 authorizes only the Firm and its
authorized employees and any agents or contractors to use the Service Provider Intellectual
Property.

     (b) No part or portion of the Service Provider Intellectual Property may be sublicensed,
copied, reproduced or duplicated by any means, or translated into machine language by the Firm,
without the prior express written permission of the Service Provider, except that the Firm may make
those copies of the Service Provider Intellectual Property necessary for non-productive back-up
purposes only.

     (c) The Firm’s right to use the Service Provider Intellectual Property under the terms of this
Agreement shall commence on the Effective Date and shall continue until the termination of this
Agreement.

     7.8 Disclosure. Notwithstanding anything in this Agreement which may imply the
contrary, the Service Provider and its Affiliates may (i) disclose the existence of this Agreement
and the terms and conditions hereof and/or (ii) file a copy of this Agreement, to the extent
reasonably determined to be required by applicable law, including, but not limited to, any
applicable securities laws.

ARTICLE VIII

RESTRICTIVE COVENANTS

     8.1 Restrictive Covenants of the Firm. As additional consideration for the Service
Provider entering into this Agreement with the Firm and as additional consideration for the Service
Provider to purchase the Purchased Assets and to assume the Assumed Liabilities from the Firm
pursuant to the Purchase Agreement, the Firm and the Restricted Parties covenant with the Service
Provider as follows (with such covenants being collectively referred to below as the
“Restrictive Covenants”):

     (a) Non-Compete. During the term of this Agreement (including any extensions or renewals
thereof), and for a period of two (2) years following termination of this Agreement (the
“Restricted Period”), none of the Firm, any Restricted Party or any of their respective
Affiliates shall directly or indirectly, without the prior written consent of the Service Provider,
purchase, join, control, invest in, organize, start or form, or contract with, any business or
Person that will provide Mortgage Default Support Services anywhere in the States of Minnesota,
Illinois, Indiana, Kentucky, Michigan and Wisconsin (the “Territory”). In addition, during
the Restricted Period, the Firm shall be prohibited from effecting a merger or consolidation of the
Firm with or into any other entity which is effected with a principal purpose of acquiring Mortgage
Default Support Services capabilities for the Firm. Notwithstanding the foregoing, nothing
contained in this Section 8.1(a) shall restrict in any way, the Firm’s or any Restricted
Party’s ability to itself provide or perform Legal Services or Mortgage Default Support Services to
Clients of the Firm or such Restricted Party.

     (b) Non-Solicitation. During the Restricted Period, without the prior written consent of the
Service Provider, none of the Firm, any Restricted Party, or any of their respective Affiliates
shall, direct or indirectly, whether alone or in connection with any other Person, hire,

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

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recruit or employ, or solicit or otherwise seek to hire, recruit, or employ, any employee or
independent contractor of the Service Provider (i) who is then employed or engaged by the Service
Provider or (ii) who was employed or engaged by the Service Provider within the six (6) month
period prior to such contact.

     (c) Restrictive Covenants of the Service Provider. During the term of this Agreement
(including any extensions or renewals thereof), and for a period of one (1) year following
termination of this Agreement, neither the Service Provider ors its Affiliates shall, directly or
indirectly, whether alone or in connection with any other Person, hire, recruit or employ, or
solicit or otherwise seek to hire, recruit, or employ, any employee of the Firm (i) who is then
employed or engaged by the Firm or (ii) who was employed or engaged by the Firm within the six (6)
month period prior to such contact.

     8.2 Blue-Pencil. If any court of competent jurisdiction or any other Governmental
Body (as defined in the Purchase Agreement) shall at any time deem the term of any particular
restrictive covenant contained in Section 8.1 or 8.2 too lengthy or the Territory
too extensive, the other provisions of this Article 8 shall nevertheless stand, and the
Restricted Period and/or the Territory shall be reduced to such duration or size as such court or
Governmental Body shall determine to be permissible.

     8.3 Remedies. Each Party acknowledges that any breach of any of the restrictive
covenants could give rise to irreparable injury to the other Party and that such injury may be
inadequately compensable in damages. Accordingly, the Parties agree that any Party may obtain
injunctive relief against the breach or threatened breach of the undertakings set forth in
Sections 8.1 or 8.2 by the other Party without the posting of any bond or other
security. This relief shall not be exclusive of, and shall be in addition to, any other remedies
available at law or equity.

ARTICLE IX

TERM AND TERMINATION

     9.1 Initial Term. The initial term of this Agreement shall be for a period of fifteen
(15) years, commencing as of the date hereof and ending at midnight on the fifteenth anniversary of
the date hereof (the “Initial Term”).

     9.2 Automatic Ten Year Extensions. This Agreement shall be automatically extended for
up to two (2) separate and successive ten (10) year periods (with each such successive ten (10)
year period being referred to herein as an “Extended Term”) unless, and only if at least
one (1) year prior to the expiration of the Initial Term or, if applicable, at least one (1) year
prior to the expiration of the Extended Term then in effect, either party shall give the other
written notice of its intention not to extend the Initial Term or, if applicable, the Extended Term
then in effect.

     9.3 Termination for Breach. Upon any Party hereto (the “Non-breaching Party”)
becoming aware of a Material Breach of this Agreement by any other Party (the “Breaching
Party”), the Non-breaching Party shall provide to the Breaching Party a written notice
describing such Material Breach. The Breaching Party shall have a sixty (60) day period within
which to cure such breach. If the Breaching Party has not cured such Material Breach within such
period, the Non-breaching Party may terminate this Agreement upon 180 days notice. Nothing in this

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

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Section 9.3 shall prejudice or otherwise restrict the Non-breaching Party in the
exercise of any of its other remedies under this Agreement or Applicable Law. Notwithstanding the
foregoing, if the Service Provider is the Non-Breaching Party and desires to terminate this
Agreement pursuant to this Section 9.3 upon a Monetary Default Event (as hereinafter
defined) by the Firm, then the Service Provider may immediately terminate this Agreement upon
written notice to the Firm. For purposes of this Agreement, a “Monetary Default Event”
shall be deemed to have occurred if, at any time during the term of this Agreement, the Firm fails
to pay any amount owed to Service Provider pursuant to this Agreement, that is undisputed between
the parties, and is outstanding for a period in excess of ninety (90) days.

     9.4 Termination for Failure to Agree Upon an Amended Fee Schedule. The Service
Provider may terminate this Agreement upon 180 days written notice to the Firm any time after the
parties hereto have failed to agree upon an Amended Fee Schedule.

     9.5 Termination for Insolvency. In the event a Party shall become Insolvent, the
other Party hereto may immediately terminate this Agreement upon written notice to the Insolvent
party.

     9.6 Provisions Applicable Upon Any Termination of this Agreement.

     (a) Payment of Fees. Notwithstanding any contrary provision contained in this Agreement, upon
the expiration of the Initial Term or any Extended Term of this Agreement, or upon any earlier
termination of this Agreement pursuant to any of the termination provisions contained in this
Agreement, the Service Provider shall continue to collect and receive all compensation,
reimbursement, and payment due for all Mortgage Default Support Services provided prior to the
effective date of the expiration or the termination of this Agreement.

     (b) Service Provider Proprietary Information. Upon any termination of this Agreement, the
Firm shall immediately discontinue the use of and shall promptly return all Service Provider
Confidential Information that has been made available to the Firm by reason of participation herein
and shall return all such property, together with any copies thereof in its possession, to the
Service Provider.

     (c) Firm Proprietary Information. Upon any termination of this Agreement, the Service
Provider shall immediately discontinue the use of and shall promptly return all Firm Confidential
Information and all Client Third Party Confidential Information that has been made available to the
Service Provider by reason of participation herein and shall return all such property, together
with any copies thereof in its possession, to the Firm.

     (d) Access to Records. The Firm shall provide to the Service Provider access, at reasonable
times and upon reasonable request, to records relating to the Legal Services provided in connection
with any Mortgage Default Support Services the Service Provider performed for the Firm, for a
period ending one year after the later of (i) expiration of the applicable statute of limitations
for any claim which may be asserted against the Service Provider arising from the activities
pursuant to this Agreement, or (ii) conclusion of all matters relating to such claim.

     (e) Return of Work Product. Upon termination of this Agreement, or upon any Client’s earlier
request, the Firm will require, and the Service Provider will cooperate with the

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

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Firm in ensuring, that all Work Product and Work-in-Process, or any lesser part designated by
the Firm or any Client in writing, shall be returned by the Service Provider to the Firm or such
Client (it being understood and agreed that the Service Provider shall have no obligation to return
its internal work product (not the work product developed for Clients) arising out of its clerical,
technical, administrative and other non-legal services performed by it pursuant to the terms
hereof, such as employment records relating to Service Provider’s employees).

     9.7 Post-Termination Services.

     (a) Continued Services. Upon the termination of this Agreement in accordance with
Sections 9.3, 9.4 or 9.5 (the effective date of such termination being
referred to herein as the ”Termination Date”), the Service Provider shall continue
to provide Mortgage Default Support Services to the Firm with respect to the Client matters and
files on which it is then working. The Service Provider shall provide such Mortgage Default
Support Services pursuant to this Section 9.7 until the earlier of (i) one year from the
Termination Date and (ii) the date that the Firm is able to engage a third party other than the
Service Provider to provide such Mortgage Default Support Services.

     (b) Payment for Continued Services. The Service Provider shall receive payment for the
provision of Mortgage Default Support Services pursuant to this Section 9.7 at the same
rate as that paid by the Firm immediately prior to the Termination Date for so long as the Service
Provider is providing Mortgage Default Support Services pursuant to Section 9.7(a).

     (c) Release of Restrictive Covenants. Upon the termination of this Agreement (and such
termination is not contested) for any reason other than by the Service Provider under Section
9.3 in connection with a Material Breach by the Firm, the Firm and the Restricted Parties shall
be released from any further obligations with respect to the Restrictive Covenants set forth in
Article VIII of this Agreement. Upon the termination of this Agreement (and such termination is
not contested) for any reason other than by the Firm under Section 9.3 in connection with a
Material Breach by the Service Provider, any exclusivity obligation of the Service Provider
pursuant to Section 2.4, as well as the restrictive covenants set forth in Section
8.1(c), shall immediately terminate.

ARTICLE X

CHANGES

     10.1 Changes. In the event (a) any Applicable Laws or any interpretations thereof, or
any requirements of Clients, Agencies or Investors at any time during the term of this Agreement
are modified, implemented, threatened to be implemented, or determined to prohibit, restrict or in
any way materially change the method of providing or paying for Mortgage Default Support Services
as described in or contemplated by this Agreement, or (b) the manner of providing Mortgage Default
Support Services, including the nature of the relationship or services involved in foreclosures
that are the subject of the Mortgage Default Support Services, is required to change in any
material respect to meet market demands for services of the type rendered by the Firm, which
change, in either case has or could reasonably be expected to have a material adverse effect on the
ability of either the Firm or the Service Provider to engage in commercial activity consistent with
and in furtherance of its business plans (all of the foregoing being

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER
RULE 24b-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

21

 

hereinafter collectively referred to as “Changes,” and individually, a
“Change”), then the parties to this Agreement shall negotiate in good faith to amend this
Agreement as necessary to provide for procurement of services and payment hereunder, while at the
same time preserving the economic expectations of the Parties as set forth herein, to the fullest
extent reasonably possible. To the extent any act or service required of the Service Provider in
this Agreement should be construed or deemed, by any Applicable Law, governmental authority, agency
or court to constitute the provision of Legal Services, the performance of said act or service by
the Service Provider shall be deemed waived and forever unenforceable and the provisions of this
Section 10.1 shall be applicable. Neither party shall claim or assert illegality as a
defense to the enforcement of this Agreement or any provision hereof; instead, any such purported
illegality shall be resolved pursuant to the terms of this Section 10.1.

ARTICLE XI

INDEPENDENT RELATIONSHIP

     11.1 Independent Contractor Status. Each of the Parties acknowledges that each is an
independent contractor and not an agent, employee or representative of the other. This Agreement
shall not create any partnership or joint venture between the parties.

     11.2 No Referral Arrangements. The Parties hereby acknowledge and agree that no
benefits to the Service Provider hereunder require or are in any way contingent upon the
recommendation, referral or any other arrangement by the Service Provider for the provision of any
Legal Services or other service offered by the Firm.

     11.3 No Restriction on the Service Provider Expansion. The Service Provider may from
time to time (i) be engaged by the Firm and any other Person to perform services which are not
included in or related to the Mortgage Default Support Services, or (ii) invest in or engage in
businesses wholly unrelated to the Mortgage Default Support Services; provided,
however, the Service Provider shall not provide any Legal Services. Nothing in this
Agreement shall be construed to preclude the Service Provider from providing services the same as
or similar to those provided under this Agreement to other customers of the Service Provider during
the term of this Agreement.

     11.4 Referrals From Others than the Firm. Except as otherwise provided in this
Agreement, the Service Provider may from time to time (i) be engaged by other Persons to perform
Mortgage Default Support Services; (ii) enter into agreements similar to this Agreement with other
Persons; and (iii) enter into co-engagements with other law firms which will provide Legal Services
for the Service Provider customers, in all cases without the necessity of obtaining approval from
the Firm.

ARTICLE XII

INDEMNIFICATION; LIMITATIONS OF LIABILITY

     12.1 No Consequential Damages. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SIMILAR DAMAGES EVEN IF THE LIKELIHOOD OF SUCH
DAMAGES IS KNOWN TO SUCH PARTY (EXCEPT WITH RESPECT TO DAMAGES ARISING FROM FRAUD OR

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER
RULE 24b-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

22

 

ANY WILLFUL OR INTENTIONAL BREACH OF THIS AGREEMENT BY ANY PARTY AS DETERMINED BY A
NON-APPEALABLE ORDER OF ANY COURT OF COMPETENT JURISDICTION OR ANY OTHER GOVERNMENTAL BODY).

     12.2 Costs of Enforcement. If either Party files suit in any court against the other
Party to enforce the terms of this Agreement against the other Party or to obtain performance by
the other Party hereunder, the Prevailing Party will be entitled to recover all reasonable costs,
including Reasonable Attorneys’ Fees, from the other Party as part of any judgment in such suit.
The term “Prevailing Party” shall mean the Party in whose favor final judgment after appeal
(if any) is rendered with respect to the claims asserted in the complaint.

     12.3 Force Majeure. No Party hereto shall be liable for delay or default in
performing hereunder (other than a delay or default in payment of any monies due to the other
Party) if such performance is delayed or prevented by a Force Majeure Condition.

     12.4 Indemnification of the Firm by the Service Provider. Subject to the limitations
of Sections 12.1 and 12.7, the Service Provider shall indemnify, defend and hold
harmless the Firm and its respective officers, directors, employees, members, and equityholders
from and against any claims, damages, losses, liabilities, costs and expenses, including reasonable
attorney’s fees (collectively, the “Firm Damages”) incurred in connection with the (i)
failure of the Service Provider to perform the Mortgage Default Support Services in accordance with
this Agreement, including from the negligence of the Service Provider, administrative errors and
omissions, or otherwise, including any Firm Damages incurred by the Firm arising out of or in any
way related to the Service Provider’s obligations under Article V above and (ii) any breach
of this Agreement by the Service Provider; provided, however, that the Service
Provider will not be liable for indemnification hereunder to the extent that the claim, damage,
loss, liability, or expense results primarily from the willful misconduct or negligence of the
Firm; and provided, further, that the maximum obligations for Firm Damages under
this Section 12.4 shall be limited to Five Hundred Thousand Dollars ($500,000) per action
or omission that gives rise to any such indemnification claim and an aggregate cap totaling Five
Million Dollars ($5,000,000) during the Initial Term and any Extended Term; provided,
however, that any such aggregate cap shall not apply to any intentional or willful breach
by the Service Provider of its obligations under this Agreement (as determined by a non-appealable
order of any court of competent jurisdiction or other Governmental Body). Such right of
indemnification under this Section 12.4 will survive the termination of this Agreement.

     12.5 Indemnification of the Service Provider by the Firm. Subject to the limitations
of Sections 12.1 and 12.7, the Firm acknowledges that the Firm is responsible for
the supervision, as may be required by Applicable Law, of the employees of the Service Provider
providing Mortgage Default Support Services to the Firm on behalf of the Clients pursuant to this
Agreement. The Firm shall indemnify, defend and hold the Service Provider and its respective
officers, directors, employees, members, and partners harmless from and against any claims,
damages, losses, liabilities, costs and expenses, including reasonable attorney’s fees which may be
imposed upon, incurred by or asserted against the Service Provider or such other indemnified
Persons in any manner relating to or arising out of (i) the provision of Mortgage Default Support
Services by the Service Provider to the Firm pursuant to this Agreement in connection with the
failure of an attorney employed by the Firm to reasonably or properly supervise the employees of

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER
RULE 24b-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

23

 

the Service Provider (consistent with the SOPs established by the Parties from time to time)
or as a result of complying with such supervising attorney’s direction or supervision, (ii) any
breach of, or default under, any Engagement Letter by the Firm, or (iii) any breach of this
Agreement by the Firm; provided, however, that the Firm will not be liable for
indemnification hereunder to the extent that the claim, damage, loss, liability, or expense results
primarily from the willful misconduct or negligence of the Service Provider. Such right of
indemnification under this Section 12.5 will survive the termination of this Agreement, and
shall be limited to Five Hundred Thousand Dollars ($500,000) per action or omission that gives rise
to any such indemnification claim and an aggregate cap totaling Five Million Dollars ($5,000,000)
during the Initial Term and any Extended Term, provided, however, that any such
aggregate cap shall not apply to any intentional or willful breach by the Firm of its obligations
under this Agreement (as determined by a non-appealable order of any court of competent
jurisdiction or other Governmental Body) .

     12.6 Indemnification Procedures. Promptly upon becoming aware of any matter which is
subject to the provisions of Sections 12.4 or 12.5 (a “Claim”), any party
seeking indemnification (an “Indemnified Party”) must give notice of the Claim to the other
Party (the “Indemnifying Party”), accompanied by a copy of any written documentation
regarding the Claim received by the Indemnified Party. The Indemnified Party shall also provide
reasonable cooperation and information to assist the Indemnifying Party in the defense or
settlement of any Claim. If the Indemnified Party fails to notify the Indemnifying Party of the
Claim promptly or to provide reasonable cooperation and information to defend or settle the Claim,
the Indemnifying Party shall not be required to indemnify the Indemnified Party to the extent that
such failure prejudices the Indemnifying Party’s ability to defend or settle the Claim. The
Indemnifying Party, at its sole option, may take whatever action it deems reasonable and
appropriate in the handling, defense, or settlement of any Claim, subject to the terms of any
applicable insurance policy. The Indemnifying Party will notify the Indemnified Party in writing of
any proposed settlement of a Claim, and shall not settle any Claim without the prior written
consent, which such consent shall not be unreasonably withheld, of the Indemnified Party unless
such settlement includes an unconditional release of all liability of the Indemnified Party with
respect thereto. The Indemnified Party shall not settle any Claim without the prior written
consent of the Indemnifying Party.

     12.7 Limitation on Indemnification. No claim for indemnification by an Indemnified
Party pursuant to Sections 12.4 or 12.5 shall be payable unless and until the
aggregate amount of all Damages incurred by the Indemnified Party under Sections 12.4 or
12.5 exceeds Twenty-Five Thousand Dollars ($25,000.00), after which the Indemnified Party
may seek indemnification for the full amount of such claims.

     12.8 Sole and Exclusive Remedy. Except with respect to actions for specific
performance or injunctive relief, notwithstanding anything to the contrary in this Agreement and
except with respect to any willful or intentional breach of this Agreement (as determined by a
non-appealable order of any court of competent jurisdiction or other Governmental Body) , the
Parties agree that the indemnification set forth in this Article XII shall be the sole and
exclusive remedy for breaches of the representations, warranties, covenants and agreements
described in this Agreement.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2
OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

24

 

ARTICLE XIII

MISCELLANEOUS

     13.1 No Other Agreement. The terms and conditions set forth in this Agreement are
those adopted by the Parties after extensive study and discussion and supersede all other
agreements, contracts, statements, courses of conduct, and expressions of intent which may have
previously existed between the Parties with respect to the provision of Mortgage Default Support
Services by the Service Provider to the Firm. This Agreement, including the appendices, Schedules
and Exhibits attached hereto and made a part hereof for all purposes, represents the entire
agreement between the Parties with respect to the subject matter herein.

     13.2 Notices. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Agreement shall be in writing and shall be deemed to
have been duly given if (a) delivered personally; (b) sent by registered or certified mail, return
receipt requested, postage prepaid; or (c) sent by next-day or overnight courier or delivery to the
applicable address set forth below, as set forth below or, in each case, at such other address as
may be specified in writing to the other Party:

	 	 	 
	If to the Service Provider:

	 	If to Firm:
	 
	 	 
	American Processing Company, LLC

	 	Wilford & Geske
	c/o Dolan Media Company

	 	Attention: Lawrence A. Wilford and James A Geske
	Attn : James P. Dolan

	 	7650 Currell Boulevard, Suite 300
	1200 Baker Building

	 	Woodbury, Minnesota 55125
	706 Second Avenue South

	 	Fax: (651) 209-3339
	Minneapolis, Minnesota 55402

Fax: (612) 317-9434
Email: jim.dolan@dolanmedia.com

	 	Email: lwilford@wilfordgeske.com;

 jgeske@wilfordgeske.com
	 
	 	 
	
	 	 
	 
	 	 
	with a copy to:

	 	with a copy to:
	 
	 	 
	Katten Muchin Rosenman LLP

	 	Thomas J. Shroyer, Esq./ Arthur W. Dickinson,
	Attn: Walter S. Weinberg

	 	 Esq.
	525 West Monroe Street

	 	90 South Seventh Street, Suite 4800
	Chicago, Illinois 60661-3693

	 	Minneapolis, MN 55402
	Fax: (312) 577-8771

	 	Fax: (612) 877-5999
	Email: walter.weinberg@kattenlaw.com

	 	Email: shroyert@moss-barnett.com;
	 

	 	dickinsona@moss-barnett.com

     All such notices, requests, demands, waivers and other communications shall be deemed to have
been received (x) if by personal delivery, on the date after such delivery, (y) if by certified or
registered mail, on the third business day after the mailing thereof or (z) if by next-day or
overnight courier or delivery, on the date of such delivery.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF
THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

25

 

     13.3 Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Minnesota without giving effect to its conflict of laws principles.

     13.4 Captions. The captions used in this Agreement are for convenience of reference
only and do not constitute a part of this Agreement and will not be deemed to limit, characterize
or in any way affect the meaning or interpretation of any provision of this Agreement, and all
provisions of this Agreement will be enforced and construed as if no caption had been used in this
Agreement.

     13.5 Severability. If any covenant, agreement, provision or term of this Agreement is
held to be invalid for any reason whatsoever, then such covenant, agreement, provision or term will
be deemed severable from the remaining covenants, agreements, provisions and terms of this
Agreement and will in no way affect the validity or enforceability of any other provision of this
Agreement.

     13.6 Due Authorization. Each Party warrants that the terms of this Agreement and its
execution, delivery and performance have been duly authorized and approved by all necessary action
of such Party.

     13.7 Counterparts. The Parties may execute this Agreement in separate counterparts,
each of which shall be deemed an original and all of which together will constitute one and the
same instrument. To the extent signed and delivered by means of a facsimile machine or other
electronic transmission (including transmission in portable document format by electronic mail),
this Agreement shall be treated in all manners and respects and for all purposes as an original and
shall have the same binding legal effect as if it were the original signed version thereof
delivered in person. None of the undersigned shall raise the use of a facsimile machine or other
electronic transmission to deliver a signature or the fact that such signature was transmitted or
communicated through the use of a facsimile machine or other electronic transmission as a defense
to the enforceability of this Agreement and each of the undersigned forever waives any such
defense.

     13.8 Amendments; Waivers. No amendment, modification or discharge of this Agreement,
and no waiver hereunder, shall be valid or binding unless set forth in writing and duly executed by
the Party against whom enforcement of the amendment, modification, discharge or waiver is sought.
Any such waiver shall constitute a waiver only with respect to the specific matter described in
such writing and shall in no way impair the rights of the Party granting such waiver in any other
respect or at any other time. Neither the waiver by either of the Parties of a breach of or a
default under any of the provisions of this Agreement, nor the failure by either of the Parties, on
one or more occasions, to enforce any of the provisions of this Agreement or to exercise any right
or privilege hereunder, shall be construed as a waiver of any other breach or default of a similar
nature, or as a waiver of any of such provisions, rights or privileges hereunder.

     13.9 No Third Party Beneficiaries Nothing in this Agreement shall confer any rights
upon any Person (except for Persons entitled to indemnification hereunder) other than the Parties
and their respective successors and permitted assigns.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

26

 

     13.10 Assignment. This Agreement shall be binding upon and inure to the benefit of the
Firm and Service Provider and their respective successors and assigns; provided no such assignment
shall relieve the assignor of its duties under this Agreement. Without limiting the foregoing, the
Parties agree that neither this Agreement, nor any duties or obligations under this Agreement,
shall be assigned or transferred by either party without the prior consent of the other.

     13.11 No Strict Construction; Interpretation. The language used in this Agreement
will be deemed to be the language chosen by the Parties to express their mutual intent and no rule
of strict construction will be applied against any Person.

     13.12 Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the Parties and their respective successors and permitted assigns.

     13.13 Specific Performance. In addition to any other remedies available to a Party
pursuant to this Agreement, each of the Parties specifically agrees that each of the other Parties
are entitled to seek specific performance against such Party to compel a Party to comply with its
covenants, obligations and agreements set forth in this Agreement without the posting of any bond
or other security.

The remainder of this page is intentionally left blank.

Signature page follows this page

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT; [***] DENOTES OMISSIONS.

27

 

     IN WITNESS WHEREOF, the undersigned hereby execute this Services Agreement as of the date
first above written.

	 	 	 	 	 	 	 
	 	 	AMERICAN PROCESSING COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Its:
	 	DOLAN APC LLC

Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott J. Pollei	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Scott J. Pollei	 	 
	 

	 	Title:
	 	 Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	WILFORD & GESKE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Wilford	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Lawrence A. Wilford	 	 
	 

	 	Its:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	The undersigned hereby execute this Services	 	 
	 	 	Agreement solely for purposes of making the	 	 
	 	 	commitments set forth in Article VIII (Restrictive	 	 
	 	 	Covenants).	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Lawrence A. Wilford	 	 
	 	 	 	 	 
	 	 	Lawrence A. Wilford, individually	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ James A. Geske	 	 
	 	 	 	 	 
	 	 	James A. Geske, individually	 	 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT; [***] DENOTES OMISSIONS.

28

 

Exhibit A

Summary of Services

The Firm daily receives new files from its Clients, indicating, among other things, the name of the
debtor, the collateral to be foreclosed and other related information relating to the Client’s
debtor and the proposed Legal Services to be performed by the Firm.

The Firm will then request Services from Service Provider with respect to each file, depending upon
the type of file.

The Services for any particular file may include, without limitation,

a. entering each debtor’s information into the Computer System pending the transition to the
Service Provider’s Veritas Software running on Service Provider’s computer system (the
“Veritas System”), at which time, the debtor’s information shall be entered on the
Service Provider’s computer system;

b. generating draft letters, communications, proofs of claim, notices, reports and pleadings
appropriately related to the file on forms approved in advance by attorneys of the Firm;

c. obtaining appropriate title searches and other such reports from third-party providers as
appropriate relating to the file;

d. obtaining and scheduling service of process, posting and newspaper publication services
from third-party providers as appropriate relating to the file;

e. scheduling court hearings and other appropriate proceedings relating to the file;

f. obtaining and scheduling auction services and other appropriate matters relating to the
file;

g. preparing drafts of communications to Clients from the Firm relating to the file; and

h. providing invoicing services to the Firm with respect to services provided to Clients, in
accordance with the Firm’s current and historical practice; and

i. providing accounts receivable management and collections (not including any Legal
Services with respect thereto), and, upon the request of the Firm, providing financial
accounting services to the Firm; and

j. providing the Computer System and other software and computer systems (including
implementation of the Veritas Software computer software package): (a) necessary for the
Services Provider to provide the Mortgage Default Support Services to the Firm; and (b) and
as necessary for the Firm to provide Legal Services to its Clients.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT; [***] DENOTES OMISSIONS.

29

 

Exhibit B

Description of Malpractice Insurance Policies

Minnesota Lawyers Mutual, Lawyers Professional Liability Policy, Policy No. 23828 02

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

30exv10w3

 

EXHIBIT 10.3

AMENDMENT NO. 3

to the

AMENDED AND RESTATED OPERATING AGREEMENT

of

AMERICAN PROCESSING COMPANY, LLC

     THIS AMENDMENT NO. 3 (this “Amendment”) to that certain Amended and Restated Operating
Agreement, dated as of March 14, 2006, as amended by that certain Amendment No. 1 to the Amended
and Restated Operating Agreement, dated as of January 9, 2007 and that certain Amendment No. 2 to
the Amended and Restated Operating Agreement, dated as of November 30, 2007 (the “Operating
Agreement”), of American Processing Company, LLC, a Michigan limited liability company (the
“Company”), is made and entered into to be effective for all purposes as of February 21, 2008, by
and among the Company, the Manager and the Members listed on the signature page hereto.
Capitalized terms used but not otherwise defined herein shall have meanings specified in the
Operating Agreement.

RECITALS

     A. On February 1, 2008, Trott & Trott transferred all of its 95,000 Common Units to APC
Investments, LLC, a Michigan limited liability company (“APCI”), and, upon the consummation of such
transfer (the “Trott Transfer”), APCI became a Substituted Member of the Company.

     B. On January 21, 2008, the Manager sent a Call Notice to each Member (the “W&G Notice”)
whereby the Manager requested that each Member contribute to the capital of the Company its pro
rata share of an amount equal to $13,000,000, which such amount was being raised in connection with
the purchase by the Company of the mortgage default processing assets of Wilford & Geske, a
Minnesota professional association.

     C. APCI and Dolan have elected to make capital contributions to the Company in connection with
the W&G Notice and Dolan has agreed to make an additional contribution to the Company in the amount
equal to Feiwell & Hannoy’s Optional Capital Contribution Amount set forth in the W&G Notice.

     D. Pursuant to Section 10.4 of the Operating Agreement, the Manager and a
Supermajority-in-Interest of the Members have agreed to amend the terms of the Operating Agreement
as provided in this Amendment in order to reflect (1) the Trott Transfer and the admission of APCI
as a Substituted Member and (2) the additional Common Units issued to APCI and Dolan in connection
with the additional capital contributions made by such Members and described above.

AGREEMENT

1. AMENDMENT

     1.1 The definition of “Trott & Trott” in Article I of the Operating Agreement is hereby
amended and restated in its entirety as follows:

1

 

     “Trott & Trott” means APC Investments, LLC, a Michigan limited liability company.

     1.2 Exhibit A of the Operating Agreement is hereby replaced with Exhibit A
attached hereto.

2. REFERENCE TO AND EFFECT ON THE OPERATING AGREEMENT

     2.1 Each reference in the Operating Agreement to “this Agreement”, “hereunder”, “hereof”,
"herein”, or words of like import shall mean and be a reference to the Operating Agreement as
amended hereby.

     2.2 Except as specifically amended above, the Operating Agreement shall remain in full force
and effect and is hereby ratified and confirmed.

3. MISCELLANEOUS

     3.1 This Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute one and the same instrument. In
accordance with the Operating Agreement, this Amendment shall be effective upon execution by the
Company, the Manger and a Supermajority-in-Interest of the Members. This Amendment, to the extent
signed and delivered by means of a facsimile machine or other electronic transmission (including
transmission in portable document format by electronic mail), shall be treated in all manner and
respects and for all purposes as an original agreement and shall be considered to have the same
binding legal effect as if it were the original signed version thereof delivered in person. At the
request of any party hereto, each other party hereto shall re-execute original forms hereof and
deliver them to all other parties, except that the failure of any party to comply with such a
request shall not render this Amendment invalid or unenforceable. No party hereto shall raise the
use of a facsimile machine or other electronic transmission to deliver a signature, or the fact
that any signature was transmitted or communicated through the use of a facsimile machine or other
electronic transmission, as a defense to the formation or enforceability of a contract and each
such party forever waives any such defense.

     3.2 Section headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other purpose.

     3.3 Each party shall do and perform, or cause to be done and performed, all such further acts
and things, and shall execute and deliver all such other agreements, certificates, instruments and
documents, as the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Amendment and the consummation of the transactions contemplated
hereby.

     3.4 The language used in this Amendment will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict construction will be applied against
any party.

2

 

     3.5 If and to the extent there are any inconsistencies between the Operating Agreement and
this Amendment, the terms of this Amendment shall control.

[Remainder of Page Intentionally Left Blank.

Signature Pages Follow.]

3

 

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	AMERICAN PROCESSING COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	DOLAN APC LLC	 	 
	 

	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott J. Pollei	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Scott J. Pollei	 	 
	 	 	Its: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MANAGER:	 	 
	 
	 	 	 	 	 	 
	 	 	DOLAN APC LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott J. Pollei	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Scott J. Pollei	 	 
	 	 	Its: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MEMBERS:	 	 
	 
	 	 	 	 	 	 
	 	 	DOLAN APC LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott J. Pollei	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Scott J. Pollei	 	 
	 	 	Its: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	APC INVESTMENTS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David A. Trott	 	 
	 

	 	 	 	 	 	 
	 	 	Name: David A. Trott	 	 
	 	 	Its: Manager	 	 

 

 

EXHIBIT A

List of Members, Capital Contributions, Capital Accounts

Common Units and Participating Percentages

	 	 	 	 	 	 	 	 	 
	Name, Address, Phone and Fax of Member	 	Common Units	 	Participating Percentage
	Dolan APC, LLC
	 	 	 	 	 	 	 	 
	c/o Dolan Media Company
	 	 	 	 	 	 	 	 
	1200 Baker Building
	 	 	 	 	 	 	 	 
	706 Second Avenue South
	 	 	 	 	 	 	 	 
	Minneapolis, Minnesota 55402
	 	 	 	 	 	 	 	 
	Phone: (612) 317-9425
	 	 	 	 	 	 	 	 
	Fax: (612) 317-9434
	 	 	 	 	 	 	 	 
	Attention: James P. Dolan
	 	 	1,027,823	 	 	 	88.890	%
	 
	 	 	 	 	 	 	 	 
	APC Investments, LLC
	 	 	 	 	 	 	 	 
	31440 Northwestern Highway
	 	 	 	 	 	 	 	 
	Suite 200
	 	 	 	 	 	 	 	 
	Farmington Hills, MI 48334
	 	 	 	 	 	 	 	 
	Phone: (248) 642-2515
	 	 	 	 	 	 	 	 
	Fax: (248) 642-3628
	 	 	 	 	 	 	 	 
	Attention: David A. Trott
	 	 	104,905	 	 	 	9.073	%
	 
	 	 	 	 	 	 	 	 
	Feiwell & Hannoy Professional
	 	 	 	 	 	 	 	 
	Corporation
	 	 	 	 	 	 	 	 
	251 North Illinois Street,
	 	 	 	 	 	 	 	 
	Suite 1700
	 	 	 	 	 	 	 	 
	Indianapolis, Indiana 46204
	 	 	 	 	 	 	 	 
	Phone: (317) 237-2727
	 	 	 	 	 	 	 	 
	Fax: (317) 237-2722
	 	 	 	 	 	 	 	 
	Attention: Douglas Hannoy and
	 	 	 	 	 	 	 	 
	Michael Feiwell
	 	 	23,560	 	 	 	2.038	%
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	TOTAL:
	 	 	1,156,288	 	 	 	100.000	%

5

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