Document:

exv10w7

 

Exhibit 10.7

ESCROW AGREEMENT

THIS ESCROW AGREEMENT made and entered into this                                                              , 2006, between                                         , a
                    banking association with principal offices in                     , Ohio (hereinafter called the
“Escrow Agent”), Performance Home Buyers, LLC, an Ohio limited liability company (hereinafter
called the “Company”), Sumner Harrington Ltd., a Minnesota corporation (“SHL”) and
                                        , a national real estate title company organized as a                                         
(“Title”).

WITNESSETH THAT:

WHEREAS, the Company will be conducting a public offering (“Offering”) of up to $25,000,000 of
Senior Secured Renewable Notes (the “Notes”);

WHEREAS, the Company has retained the services of SHL, a registered broker dealer under the
Securities Exchange Act of 1934, as amended, to assist it in the sale of the Notes on a “best
efforts” basis;

WHEREAS, the parties hereto desire to appoint Escrow Agent to hold proceeds from the sale of the
Notes in the Offering and disburse escrowed funds only as provided herein; principally upon written
authorization from Title that: (i) the funds will be used to repay mortgage liens existing on real
estate owned by the Company, and (ii) such funds will be secured by a first lien position on such
Company real estate; and

WHEREAS, all of the parties hereto desire to enter into an agreement with respect to the escrow of
the proceeds thereof.

NOW, THEREFORE, in consideration of the premises and agreements set forth herein, the parties
hereto agree as follows:

	1.	 	Proceeds to be Placed in Escrow. All proceeds received by the Company or SHL from
the sale of the Notes shall be promptly delivered to the Escrow Agent and deposited by the
Escrow Agent into an interest bearing account (the “Deposited Funds”) by noon of the next
business day after receipt by the Company or SHL. During the term of this Escrow Agreement,
the Company and SHL shall cause all checks received by it or others arising from the sale of
Notes to be made payable to “                    Bank-PHB Escrow Account.”

In addition, all proceeds received or to be received by the Company or Title upon release,
satisfaction or payment of any collateral securing the Notes shall be promptly delivered to the
Escrow Agent and deposited by the Escrow Agent upon receipt. Such funds shall be held as
additional Deposited Funds and disbursed only as provided herein.

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2. Investment of Escrow Funds.

	 	(a)	 	During the term of and subject to the remaining provisions of this Escrow Agreement,
Escrow Agent shall invest and reinvest all Escrowed Funds (as defined below) in any one or
more of the following types or classes of investments at the written direction of Company:
(i) United States Treasury Bills (30-days or less in term), (ii) any money market fund or
account of a national brokerage or investment firm which is invested solely in United
States government or government guaranteed securities or obligations secured by the same,
or (iii) money market accounts of or certificates of deposit (30-days or less in term)
issued by any federally insured bank.
	 
	 	(b)	 	Any interest or other amounts earned on the Deposited Funds shall be held as
additional Deposited Funds and disbursed only as provided herein.

3. Disbursement of Funds.

	 	(a)	 	During the term of the Offering and until all of the Notes have been redeemed or
otherwise paid in full, the Escrow Agent shall receive, hold and invest in escrow all
Deposited Funds (including interest thereon and any additional Deposited Funds,
hereinafter collectively referred to as “Escrowed Funds”).
	 
	 	(b)	 	Upon receipt by the Escrow Agent and the Company of written authorization of Title or
its attorneys, Escrow Agent shall release, in accordance with the terms and conditions of
Section 4.8 of the Indenture with respect to the Notes dated                                                              , 2006 (the
“Note Indenture”), Escrowed Funds and distribute such funds as directed by Title. Such
authorization shall include a representation that the terms for release set forth in that
certain Agency Agreement between Title and the trustee under the Offering (initially
Herring Bank) (the “Note Trustee”) and Section 4.8 of the Note Indenture have been
satisfied. The written authorization may bear facsimile signatures, and the Escrow Agent
is hereby authorized to act based upon a written authorization bearing facsimile
signatures of the following officers of Title:                     ,                      and                     .
Each of such officers acting alone or together, are authorized to sign written
authorizations on behalf of Title.
	 
	 	(c)	 	Escrowed Funds may also be released and distributed upon receipt by Escrow Agent of
written authorization of the Company or its attorneys that Escrowed Funds are necessary to
redeem outstanding Notes. The written authorization may bear facsimile signatures, and
Escrow Agent is hereby authorized to act based upon a written authorization bearing
facsimile signatures of the following officers of Company:                     ,                      and
                    . Each of such officers acting alone or together, are authorized to sign
written authorizations on behalf of Company.

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	 	(d)	 	In addition to the above release mechanisms, the Note Trustee and the Company shall
be entitled to direct the release of Escrowed Funds as they mutually determine are
necessary and appropriate.

	4.	 	Sole Dominion and Control of the Escrowed Funds. Notwithstanding the foregoing, (a)
the Note Trustee shall have full dominion and control with regard to the Escrowed Funds, (b)
the Note Trustee shall maintain full title and right to the ownership of the Escrowed Funds
for the benefit of the holders of the Notes, and (c) the Escrow Agent shall comply with the
directions of the Note Trustee regarding the distribution and release of the Escrowed Funds,
regardless of whether such directions are in accordance with the provisions contained in
Section 3 of this Escrow Agreement, provided such directions are in accordance with the terms
of the Indenture governing the Notes and have been communicated in writing to the Company at
least 24 hours prior to notice provided to the Escrow Agent pursuant to the terms of this
paragraph.

	5.	 	Term of Escrow. This Escrow Agreement shall terminate on the first (1st)
business day after redemption or payment in full of all of the Notes. Any Escrowed Funds
remaining in the Escrow Account at such time shall be paid promptly to the Company.

6. Duty and Liability of the Escrow Agent: Indemnification.

	 	(a)	 	The sole duty of the Escrow Agent, other than as herein specified, shall be to
receive said funds and hold them subject to release, in accordance with the written
instructions of Title, the Company or the Note Trustee, and the Escrow Agent shall be
under no duty to determine whether any party hereto is complying with requirements of any
offering document, in tendering proceeds or monies to the Escrow Agent or in properly
releasing any escrowed proceeds. No implied covenants or obligations shall be inferred
from this Agreement against the Escrow Agent, nor shall the Escrow Agent be bound by the
provisions of any agreement beyond the specific terms hereof.
	 
	 	(b)	 	Neither the Escrow Agent nor its officers, directors, employees, agents,
subsidiaries, or affiliates shall be liable hereunder except for the gross negligence or
willful misconduct of any of them, and the Company agrees to indemnify the Escrow Agent
and its officers, directors, employees, agents, subsidiaries, and affiliates for and hold
it harmless against any loss, damage, claim, charge, liability, or expense, including
attorney’s fees, incurred and arising out of or in connection with this Escrow Agreement
or any acts or inactions of the Company, but only if and to the extent the same is not due
to the gross negligence of willful misconduct of the Escrow Agent or any of its officers,
directors, employees, agents, subsidiaries, or affiliates.

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	 	(c)	 	Escrow Agent shall be entitled to rely upon any certification, instruction, notice or
other writing delivered to it by or on behalf of any party hereto without being required
to determine the authenticity or the correctness of any fact stated therein or the
propriety or validity thereof. Escrow Agent may act in reliance upon any instrument
comporting with the provisions of this Escrow Agreement or signature believed by it,
without independent investigation, to be genuine and may assume that any person purporting
to give notice or receipt or advice or make any statement or execute any document in
connection with the provisions hereof has been duly authorized to do so.
	 
	 	(d)	 	Except as set forth in Section 1, the Escrow Agent does not have any interest in the
Deposited Funds or Escrowed Funds, but is serving as escrow holder only and has only
possession thereof.
	 
	 	(e)	 	In the event of any dispute between or conflicting claims by or between any party to
this Agreement and/or any other person or entity with respect to any Deposited Funds or
Escrowed Funds, and for so long as such dispute or conflict shall continue, Escrow Agent
shall not be or become liable in any way to the Company, SHL or Title for its failure or
refusal to comply with such conflicting claims, demands or instructions. The Escrow Agent
shall be entitled to refuse to act until, at its sole option, either such conflicting or
adverse claims or demands shall have been finally determined in a court of competent
jurisdiction or settled by agreement between the conflicting parties as evidenced in a
writing, acceptable to the Escrow Agent in the Escrow Agent’s sole discretion, or the
Escrow Agent shall have received security or an indemnity acceptable to the Escrow Agent
in the Escrow Agent’s sole discretion sufficient to hold the Escrow Agent harmless from
and against any and all losses, liabilities, or expenses which the Escrow Agent may incur
by reason of its acting. The Escrow Agent may, in addition, elect in its sole option to
commence an interpleader action or seek other judicial relief or orders as the Escrow
Agent may deem appropriate.
	 
	 	(f)	 	The Escrow Agent may resign and be discharged from its duties hereunder at any time
by giving notice of such resignation to the Company, SHL and Title specifying a date (not
less than thirty days after the giving of such notice) when such resignation shall take
effect. Promptly after such notice, a successor escrow agent shall be appointed by the
Company, such successor escrow agent to become Escrow Agent hereunder upon the resignation
date specified in such notice. The Escrow Agent shall continue to serve until its
successor accepts the escrow.

	7.	 	Escrow Agent’s Fee. The Escrow Agent shall be entitled to be paid $2,000.00 as
compensation for its services hereunder. The fee agreed upon for services rendered hereunder
in intended as full compensation for the Escrow Agent’s services as contemplated by this
Escrow Agreement; provided, however, that in

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	 	 	the event that the conditions of this Escrow Agreement are not fulfilled, or the Escrow Agent
renders any material service not contemplated in this Escrow Agreement, or there is any
assignment of interest in the subject matter of this Escrow Agreement, or any material
modification hereof, or if any material controversy arises hereunder, or the Escrow Agent is
made a party to or justifiably intervenes in any litigation pertaining to this Escrow
Agreement, or the subject matter hereof, the Escrow Agent shall be reasonably compensated for
such extraordinary services and reimbursed for all cost and expenses, including reasonable
attorney’s fees, occasioned by any delay, controversy, or litigation, and the same may be
recoverable from the Company.

	8.	 	Binding Agreement and Substitution of Certain Parties. The terms and conditions of
this Escrow Agreement shall be binding on the creditors or transferees, or successors in
interest, whether by operation of law or otherwise, of the parties hereto. If, for any
reason, Escrow Agent, Title or SHL be unable or unwilling to continue as Escrow Agent, Title
or selling agent, then the Company may substitute another Escrow Agent, title company or
selling agent upon written notice to the other parties to this Escrow Agreement. Any
apportionment of the fees provided for in Section 7 for the Escrow Agreement will be subject
to agreement of the parties.

	8.	 	Notice. All notices of communications, except as herein otherwise specifically
provided, shall be in writing, and shall be deemed given upon the earlier of delivery thereof
if by hand or upon receipt if sent by mail (registered or certified mail, postage prepaid,
return receipt requested) or on the second business day after deposit if sent by a recognized
overnight delivery service or upon transmission if sent by telecopy or facsimile transmission
(with request of assurance of receipt in manner customary for communication of such type).

	9.	 	Governing Law; Jurisdiction. This Escrow Agreement shall be constructed, performed
and enforced in accordance with, and governed by, the internal laws of the State of Ohio,
without giving effect to the principles of conflicts of laws thereof. Each party hereby
consents to the personal jurisdiction and venue of any court in Ohio, including the United
States District Court for the District of Ohio located in
___ County, Ohio, as a
proper forum.

	10.	 	Severability. In the event that part of this Escrow Agreement is declared by any
court or other judicial or administrative body to be null, void, or unenforceable, said
provision shall survive to the extent it is not so declared, and all of the other provisions
of this Agreement shall remain in full force and effect.

	11.	 	Amendments; Waivers. This Escrow Agreement may be amended or modified, and any of
the terms, covenants, representatives, warranties, or conditions hereof may be waived, only by
a written instrument executed by the parties hereto, or in the case of a waiver, by the party
waiving compliance. Any waiver by any party of any conditions, or of the breach of any
provision, term, covenant,

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	 	 	representation or warranty contained in this Escrow Agreement, in any one or more instances,
shall not be deemed to be nor constructed as further or continuing waiver of any such
condition, or of the breach of any other provision, term, covenant, representation or warranty
of this Escrow Agreement.

	12.	 	Entire Agreement. This Escrow Agreement contains the entire understanding among the
parties hereto with respect to the escrow contemplated hereby and supersedes and replaces all
prior and contemporaneous agreements and understanding, oral and written, with regard to such
escrow.

	13.	 	Section Headings. The section headings in this Escrow Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement.

	14.	 	Counterparts. This Escrow Agreement may be executed in counterparts each of which
shall be deemed an original, but all of which shall constitute the same instrument.

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     IN WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement on the date
first above written.

	 	 	 	 	 	 	 
	PERFORMANCE HOME BUYERS, LLC	 	 	 	 
	 	 	 
	(the “Company”)	 	(the “Escrow Agent”)
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	(Print Name)	 	(Print Name)
	Its:

	 	 	 	Its:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(An Authorized Signatory)
	 
	 	 	 	 	 	 
	SUMNER HARRINGTON LTD. (“SHL”)	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(“Title”)	 	 	 	 
	  	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 
 	 	 	 	 
	Its:
	 	 	 	 	 	 
	 

	 	 
 	 	 	 	 

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FORM OF ESCROW NOTICE

The undersigned certificates that he/she/it are duly authorized to execute and
deliver this Escrow Notice on behalf of                                         .

     Pursuant to Section 3 of the Escrow Agreement (the “Escrow Agreement”), dated , 2006,
between the Company,                             
             Bank (the “Escrow Agent”), Sumner Harrington Ltd. (“SHL”) and
                                        (“Title”),                         
                hereby requests that the Escrow Agent remit, on or prior
to
                                        ,
20                    , in immediately available funds, $             
         from the Escrow Account to :

	 	 	 	 	 	 	 	 	 
	 

	 	Party
	 	 	 	Amount	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	   $
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	IN WITNESS WHEREOF, the undersigned has executed the certificate.
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 	 	(“                    ”)
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	(Print Name)	 	 
	 

	 	 	 	Its:	 	 	 	 
	 	 	 	 	 	 	 	 	 

8exv10w8

 

Exhibit 10.8

AGENCY AGREEMENT

     THIS AGENCY AGREEMENT (this “Agreement”) is dated as of                                                              , 2006, and is by and
between Herring Bank, as Trustee (the “Trustee”),                                         , a                                         corporation,
as agent (the “Agent”) and Performance Home Buyers, LLC, an Ohio limited liability company (“PHB”).

     WHEREAS, Trustee has been appointed as trustee of up to $25,000,000 Senior Secured Notes
(“Notes”) to be issued by PHB;

     WHEREAS, proceeds from the sale of the Notes will be deposited into an escrow account
established with (name of Bank) (“Bank”) and disbursed as provided therein;

     WHEREAS, Trustee desires to appoint Agent, a national title company, as its agent with respect
to the disbursement of funds from the escrow account once Agent has determined or provided for,
among other things, a first mortgage lien on PHB-owned real estate securing the funds in accordance
with Section 4.8 of the Indenture relating to the Notes dated                                                              , 2006 (the “Note
Indenture”); and

     WHEREAS, the parties hereto also desire to provide a process for the delivery of mortgage or
deed of trust releases or satisfactions upon the payment in full of prior Trustee mortgages or
deeds of trust.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

     1. Appointment of Agent. Trustee hereby appoints Agent to be its agent with respect
to: (i) the disbursement of funds from the escrow account established with Bank, and, (ii) the
execution and delivery of releases or satisfactions of previous mortgages or deeds of trust on
PHB-owned land upon payment in full of the underlying obligation. Agent hereby accepts such
appointment and agrees to fulfill its obligations and duties as Agent in accordance with the terms
of this Agreement.

     2. Representations and Warranties of the Parties. Each party to this Agreement
warrants and represents to the other party to this Agreement that:

     (a) such party is duly organized, validly existing and in good standing under the laws
of the jurisdiction under which it is organized;

     (b) the execution, delivery and performance of this Agreement, and the execution and
delivery of all other documents in connection with this Agreement, constitute the legal,
valid and binding obligations of such party and are enforceable against such party

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in accordance with their terms (subject, as to enforceability, to limitations resulting
from bankruptcy, insolvency and other similar laws affecting creditors’ rights generally);
and

     (c) that such party, and each individual executing this Agreement on behalf of such
party, is duly authorized, and has all power and authority necessary to make such execution,
delivery and performance of this Agreement and of all other documents in connection
herewith, without the consent or approval of any other person or regulatory authority or
governmental body, and such execution, delivery and performance does not conflict with,
result in a violation of, or constitute a default under any provision of any articles of
incorporation, certificate of formation, limited liability company agreement or
organization, or bylaws, or any agreement or other instrument binding on such party, or any
law, governmental regulation, court decree or order applicable to such party.

     3. Agent’s Duties – Disbursement of Escrowed Funds.

Within twenty-four (24) hours of a request from PHB, Agent shall issue written authorization
to Bank for immediate release of escrowed funds for the purposes identified by PHB provided
that the terms of Section 4.8 of the Indenture have been complied with. In addition, as a
condition precedent to issuance of such written authorization by Agent to Bank, Agent shall
have received the following:

     (a) the following documents from PHB, duly executed and delivered by the parties
thereto and if necessary in proper recordable form:

     (i) PHB’s Mortgage or Deed of Trust: the mortgage or deed of trust
(and any related security agreement and/or financing statement) executed by PHB, as
Grantor, in favor of Trustee for the benefit of the holders of the Notes, pursuant
to which PHB has granted to Trustee a lien and security interest in and to the PHB
Land to secure, among other things, payment of all the principal amount of the Notes
payable by PHB (each, “Mortgage or Deed of Trust”);

     (ii) Subordination Agreement: any subordination agreement, pursuant to
which other indebtedness of PHB or any other subordinated lien on such PHB Land is
subordinated to the indebtedness of PHB under the Notes;

     (iii) Additional Documents/Contract Assignment: any and all other
documents and instruments executed by the PHB, including any conditional assignment
of any land contract or lease existing on the PHB Land and delivered to Trustee in
connection with the refinancing transaction contemplated by such Mortgage or Deed of
Trust; and

     (iv) UCC Financing Statements: any UCC-1 Financing Statements in
recordable form, serving to perfect a valid lien on the personal property, if any,
granted under such Mortgage or Deed of Trust;

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     (b) the following other documents:

     (i) a mortgagee’s title insurance policy issued by Agent or other acceptable
title insurance company in an amount equal to the face amount of such Mortgage or
Deed of Trust, insuring such Mortgage or Deed of Trust as a first and primary lien
on a good and marketable fee simple title to the PHB Land, subject only to
“Permitted Encumbrances” (as that term is defined in such Mortgage or Deed of Trust)
and, without limiting the generality of the foregoing, insuring such Mortgage or
Deed of Trust against claims for mechanics’ liens, rights of parties in possession
and matters which would be disclosed by a comprehensive survey and including special
assessment searches, judgment searches and all other customary searches, and a
zoning endorsement;

     (ii) written evidence of payment of: (i) all real estate taxes relating to the
PHB Land presently due and payable, and (ii) all levied and pending assessments
relating to PHB Land (or, in lieu thereof, payment in escrow of an amount determined
by the Trustee or Agent); and

     (iii) if required by Agent, a preliminary perimeter land survey of the PHB
Land, prepared at PHB’s expense, certified to Trustee and PHB by a licensed,
registered surveyor acceptable to Agent, and a copy of any plat for PHB Land. The
parties hereto acknowledge and agree that such documents should only be required in
the unusual situation where boundary problems exist with respect to PHB Land at the
time of the contemplated refinancing transaction;

     (c) evidence of payment of all expenses incurred in connection with the refinancing
transaction contemplated by such Mortgage or Deed of Trust and evidence that the ratio of
the value of the PHB Land to the principal amount of such Mortgage or Deed of Trust (the
“Ratio”) shall not be less than 1 to 1; and

     (d) such other documents and instruments as Trustee or Agent may reasonably request.

Agent will record all transactions, receipts and disbursements and furnish a statement of
transactions and a cumulative accounting of the Ratio as of the date of applicable
refinancing transactions on at least a monthly basis and at other times requested by the
Trustee.

For purposes hereof, the term “PHB Land” shall mean the real property owned by PHB which is
legally described on Exhibit A to each Mortgage or Deed of Trust.

     4. Agent’s Duties – Release or Satisfaction of Prior Mortgages or Deeds of Trust.

     Upon request of PHB accompanied by evidence of payment of full of the underlying obligations,
Agent shall deliver or provide for recording a release or satisfaction of any prior Trustee
mortgage or deed of trust with respect to PHB Land. If requested by PHB, such release

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or satisfaction shall be provided simultaneous with payment of the underlying obligation in
accordance with Agent’s practices and procedures.

     5. Notices. Any notice to be given or other document to be delivered by and party to
the others hereunder, may be delivered in person, or to an officer of any party, or may be
deposited in the United States mail, duly certified or registered, return receipt requested, with
postage prepaid, or by Federal Express or a similar overnight delivery service, or by facsimile
machine if concurrently delivered by another permissible method set forth in this Section, and
addressed to the party for whom intended, to the address set forth below its signature below. Any
party hereto may from time to time, by written notice to the others, designate a different address
which shall be substituted for the one specified herein. Unless otherwise specifically provided
for herein, all notices, payments, demands or other communications given hereunder shall be in
writing and shall be deemed to have been duly given and received (i) upon personal delivery, or
(ii) as of the third business day after mailing by United States registered or certified mail,
return receipt requested, postage prepaid, addressed as set forth above, (iii) the immediately
succeeding business day after deposit with Federal Express or a similar overnight delivery system,
or (iv) upon confirmation of receipt if delivered by facsimile machine.

     6. Agent’s Fees and Expenses. Agent will not be paid a fee for its services under
this Agreement. Agent will be reimbursed by PHB for its reasonable out-of-pocket expenses for
performing this Agreement; provided however, that said amount shall not exceed $                      per month.
Title services performed by Agent in connection with the refinancing transactions contemplated
herein or otherwise shall be the subject of a separate agreement and nothing herein shall be
construed to affect the terms and conditions of such agreements, including Agent’s right to receive
fees for such services or reimbursement of costs as provided therein.

     7. Termination of Agreement. This Agreement shall terminate as follows:

     (a) Any party may terminate this Agreement upon at least 10 days’ prior written notice
to each other party.

     (b) This Agreement shall terminate automatically in the event of the bankruptcy of any
party, or any party becoming the subject of an involuntary petition for relief under the
United States Bankruptcy Code or any other similar federal or state law, and shall be
applicable to any and all distributions made by any receiver, debtor-in-possession or other
person acting under the authority of any court.

     (c) This Agreement shall terminate automatically on the first (1st) business
day after redemption or payment in full of all the Notes.

     8. Amendment. This Agreement may not be amended or modified except by a written
agreement signed by the parties in interest at the time of such modification.

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9. Miscellaneous.

          (a) In case any provision is or obligation under this Agreement shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

          (b) This Agreement shall be binding upon the parties hereto and their successors and
assigns for the uses and purposes above set forth and referred to effective immediately upon
execution by the parties hereto.

          (c) This Agreement may be executed in counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall constitute
but one and the same document.

          (d) This Agreement shall be governed by and construed in accordance with the laws of
the State of Ohio, without regard to conflicts of law principles.

(The remainder of this page is intentionally left blank.)

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(Signature Page to Agency Agreement by and between Trustee, Agent and PHB dated                                                              ,

2006)

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the first above written.

	 	 	 	 	 	 	 	 	 	 	 
	AGENT:	 	TRUSTEE:
	 	 	 	 	 	 	HERRING BANK
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Its:
	 	 	 	 	 	Its:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address:	 	Address:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 
	Attention:	 	Attention:
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PERFORMANCE HOME BUYERS, LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Address:

4130 Linden Avenue

Suite 303

Dayton, OH 45432

Attention: Wayne Hawkins

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