Document:

Exhibit 10.1

                           WAIVER OF RIGHTS AGREEMENT

     This  Waiver of Rights Agreement (the "AGREEMENT") is made and entered into
                                            ---------
as  of  September  13,  2006  (the "EFFECTIVE DATE"), by and between XA, INC., a
                                    --------------
Nevada  corporation  ("XA")  and  ALPHA  CAPITAL AKTIENGESELLSCHAFT, STONESTREET
LIMITED PARTNERSHIP, WHALEHAVEN FUNDS LIMITED, GREENWICH GROWTH FUND LIMITED and
GENESIS  MICROCAP  INC.  (the  "PURCHASERS"),  each  individually  a "PARTY" and
                                ----------                            -----
collectively  the  "PARTIES."
                    -------

                              W I T N E S S E T H:

     WHEREAS,  pursuant  to  a  Subscription  Agreement  entered  into  with the
Purchasers  on  June  30,  2004  (the  "SUBSCRIPTION  AGREEMENT"),  XA  sold the
                                        -----------------------
Purchasers  an aggregate of $2,500,000 in two tranches of Convertible Promissory
Notes  (the  "NOTES"  or the "PURCHASER NOTES"), with an aggregate of $1,250,000
              -----           ---------------
sold  on  June  30, 2004, which amount has been paid in full to date (the "FIRST
                                                                           -----
TRANCHE")  and  an aggregate of $1,250,000 sold on September 13, 2004, which has
-------
since been reduced to $1,012,500 (not including any accrued and unpaid interest,
the  "SECOND  TRANCHE"),  due  to  the conversion of a portion of the Notes into
      ---------------
shares  of  XA's  common  stock which amount is due and payable on September 13,
2006  as  well  as  5,000,000 Class A Warrants to purchase shares of XA's common
stock  (the  "PURCHASER  WARRANTS");
              -------------------

     WHEREAS,  the  Purchasers and XA previously entered into a Waiver of Rights
Agreement  on  July  17,  2006,  effective as of June 30, 2006, and extended via
email  on  August  3,  2006,  to  August  9,  2006, to waive XA's default of the
repayment  of the First Tranche and certain Reset Provisions which may have come
into  effect  in  connection  with  the sale of $1,250,000 in 11% Senior Secured
Convertible  Promissory  Notes  and  warrants to various third party purchasers,
which  funding  closed  August  8,  2006  (the  "PRIOR  WAIVER");
                                                 -------------

     WHEREAS,  XA  plans to raise additional capital to repay the Second Tranche
(the  "FUNDING") subsequent to the Parties entry into this Agreement in the form
       -------
of  Senior  Secured  Promissory  Notes  (the  "FUNDING NOTES") and certain other
                                               -------------
Warrants  (the  "FUNDING WARRANTS"), pursuant to a Securities Purchase Agreement
                 ----------------
to  be  entered into between XA and certain third parties on or around September
12,  2006  (the  "PURCHASE  AGREEMENT,"  and together with the Funding Warrants,
                  -------------------
Funding  Notes  and  any  and all other agreements and documents entered into in
connection  with the Funding, the "FUNDING DOCUMENTS"), which XA plans to use to
                                   -----------------
repay  the  amount  owed  pursuant  to  the  Second  Tranche.

     NOW,  THEREFORE,  in  consideration  for the promises and pledges contained
below  and other good and valuable consideration, which consideration XA and the
Purchasers  acknowledge  receipt  of, and the premises and the mutual covenants,
agreements,  and  considerations  herein  contained, the Parties hereto agree as
follows:

1.   PAYMENT  BY  XA  OF  THE  SECOND  TRANCHE.
     -----------------------------------------

     XA  agrees  to  repay  the  Purchasers $500,000 of the amount due under the
     Second  Tranche  on or before September 22, 2006 (the "PARTIAL PAYMENT" and
                                                            ---------------
     the  "PARTIAL  PAYMENT  DATE")  and  agrees  to pay the Purchasers the full

<PAGE>

     remaining  amount  due under the Second Tranche (less the Partial Payment),
     including  any  accrued  and  unpaid interest on the Second Tranche through
     such  payment  date,  on  or  before  October  16, 2006 (the "FINAL PAYMENT
                                                                   -------------
     DATE").
     ----

     The  Purchasers  agree  that  they  will  receive  valid consideration (not
     previously  provided  to  the  Purchasers)  from  XA  as  a  result of XA's
     agreement  to pay the Purchasers the Partial Payment and the Final Payment.

2.   EXTENSION  OF  THE  DUE  DATE  OF  THE  SECOND  TRANCHE.
     -------------------------------------------------------

     In  connection  with  XA's  agreement  to pay the Partial Payment and Final
     Payment  on  or  before  the  Partial  Payment Date and Final Payment Date,
     respectively, the Purchasers agree that the original due date of the Second
     Tranche,  September  13,  2006,  shall be extended to September 22, 2006 in
     connection  with the payment of the $500,000 Partial Payment and to October
     16,  2006  in  connection  with  the  payment  of  the  Final  Payment (the
     "EXTENSION").  The Purchasers further agree that XA shall not be in default
      ---------
     of  the  repayment  of  the Second Tranche as long as XA makes the required
     Partial Payment on or before the Partial Payment Date and the Final Payment
     on  or  before  the  Final  Payment  Date.

     XA  agrees  that  it  will  receive  valid  consideration  due  to  the
     Extension  provided  by  the  Purchasers.

3.   PURCHASERS'  WAIVER  OF  THE  RESET  AND ANTI-DILUTION RIGHTS OF THE NOTES,
     ---------------------------------------------------------------------------
     PURCHASER  WARRANTS  AND  SUBSCRIPTION  AGREEMENT.
     -------------------------------------------------

     In  connection  with  XA's  entry  into  the  Funding  and  the  Funding
     Documents,  and the timely making of the Partial Payment on or prior to the
     Partial Payment Date and the Final Payment on or prior to the Final Payment
     Date  (as  provided  in  Section  1,  above),  the  Purchasers  agree  to:

     a)   Waive the  Favored  Nations  Provision,  Section  12(c)  of  the
          Subscription Agreement; Section 3.4 of the Purchaser Warrants; Section
          2.1(c)D  of  the  Purchaser  Notes;  as  well  as  any  other  reset,
          anti-dilution  or  re-pricing  rights  in connection (collectively the
          "RESET  PROVISIONS")  with:
           -----------------

          i)   the Funding  and  the  Funding  Documents;  and

          ii)  certain  other  securities  issuable  by  XA  included  and
               detailed  in  the  Funding  Documents, including certain warrants
               issuable  to  consultants  in  connection  with  finders fees and
               consulting  fees  pursuant  to  the  Funding,  including  but not
               limited  to  the  issuance  of  up to 250,000 shares of XA common
               stock  for  professional  services, and the issuance of 1,000,000
               warrants  to  purchase shares of XA's common stock at an exercise
               price  of  $0.30  per  share;

<PAGE>

     b)   Waive the  Redemption  provisions  of  the  Subscription  Agreement
          (Section  7.7) and the Purchaser Notes (Section 4.8), and to allow the
          prepayment  of  the  outstanding  balance of the Second Tranche at any
          time  prior  to  September  13,  2006,  without  penalty;  and

     c)     the  Extension  provided  by  Section  2,  above.

     Collectively  a),  b)  and  c)  above  are  referred  to  as  the  "FUNDING
                                                                         -------
     WAIVER."
     ------

     PROVIDED,  HOWEVER,  that  in  the  event  that  XA  fails  to  make  the
     ------------------
     required Payment of the Partial Payment on or prior to Partial Payment Date
     and/or  fails  to  make the required Final Payment on or prior to the Final
     Payment  Date:

     a)   The  Funding  Waiver  shall  be  automatically  revoked;  and

     b)   All of  the  Purchasers'  rights  and  remedies under the Subscription
          Agreement,  the  September 2004 Purchaser Notes and Purchaser Warrants
          will  automatically  be  restored,  other  than  those  rights  waived
          pursuant  to  the  December  29,  2004,  Waiver  Agreement between the
          Parties.

4.   XA'S PAYMENT  OF  THE  FIRST  TRANCHE  AND  INTEREST ON THE SECOND TRANCHE.
     --------------------------------------------------------------------------

     The  Purchasers  agree  that  from  the  original  due  date  of  the First
     Tranche,  June  30,  2006,  up  to and including the Effective Date of this
     Agreement,  XA  has  not  been  in  default  of either the Purchaser Notes,
     Subscription  Agreement  or Purchaser Warrants and/or if XA has been deemed
     to  be in default of such agreements, that such default has previously been
     waived  by  the  Purchasers.

     Furthermore,  the  Purchasers  agree  that  XA has Timely made all required
     payments  of  principal  under the First Tranche, which current outstanding
     balance  is  $0  as  of the date of this Agreement, and has Timely made all
     required  payments  of  interest  under the Second Tranche of the Purchaser
     Notes,  which  Second  Tranche does not have another required payment until
     September  13,  2006, which date has been extended by the Extension, and as
     such,  XA is not in default of any provision of the Subscription Agreement,
     Purchaser  Notes  and  Purchaser Warrants as of the date of this Agreement.

     For  the  purposes  of  this  section,  the term "TIMELY" shall mean either
                                                       ------
     within  the  time  periods specified in the original Subscription Agreement
     and/or  Purchaser  Notes  or  in  the  time  periods specified in the Prior
     Waiver,  whichever  is  later.

<PAGE>

5.   MISCELLANEOUS.
     -------------

     (a)  Assignment.  All  of  the  terms,  provisions  and  conditions of this
          ----------
          Agreement  shall be binding upon and shall inure to the benefit of and
          be  enforceable  by the Parties hereto and their respective successors
          and  permitted  assigns.

     (b)  Applicable  Law.  This  Agreement  shall  be  construed  in accordance
          ---------------
          with  and governed by the laws of the State of New York, excluding any
          provision of this Agreement which would require the use of the laws of
          any  other  jurisdiction.

     (c)  Entire   Agreement,  Amendments   and   Waivers.   This   Agreement
          -----------------------------------------------
          constitutes  the  entire agreement of the Parties hereto and expressly
          supersedes   all  prior   and   contemporaneous   understandings   and
          commitments,  whether  written  or  oral,  with respect to the subject
          matter  hereof. No variations, modifications, changes or extensions of
          this  Agreement  or  any  other terms hereof shall be binding upon any
          Party  hereto  unless  set  forth  in a document duly executed by such
          Party  or  an  authorized  agent  or  such  Party.

     (d)  Waiver.  No  failure  on  the  part  of  any  Party  to  enforce  any
          -------
          provisions  of  this  Agreement  will  act as a waiver of the right to
          enforce  that  provision.

     (e)  Section  Headings.  Section  headings  are  for  convenience  only and
          -----------------
          shall  not  define  or  limit  the  provisions  of  this  Agreement.

     (f)  Effect  of  Facsimile  and  Photocopied  Signatures.  This  Agreement
          ----------------------------------------------------
          may be executed in several counterparts, each of which is an original.
          It  shall  not  be  necessary in making proof of this Agreement or any
          counterpart  hereof  to  produce  or  account  for  any  of  the other
          counterparts.  A  copy of this Agreement signed by one Party and faxed
          to  another  Party shall be deemed to have been executed and delivered
          by  the  signing  Party  as  though  an  original. A photocopy of this
          Agreement  shall  be  effective  as  an  original  for  all  purposes.

     [Remainder of page left intentionally blank.  Signature page follows.]

<PAGE>

     This  Agreement  has been executed by the Parties on the date first written
above,  with  an  Effective  Date  as  provided  above.

XA, INC.

/s/ Joseph Wagner
-----------------------
JOSEPH WAGNER
CHIEF EXECUTIVE OFFICER

                                   PURCHASERS:
                                   -----------

ALPHA CAPITAL AKTIENGESELLSCHAFT      STONESTREET LIMITED PARTNERSHIP
--------------------------------      -------------------------------

BY: /s/ Konrad Ackerman               BY: /s/ Libby Leonard
   ----------------------------           ---------------------------
ITS:                                  ITS: Cheif Operating Officer
    ---------------------------           ---------------------------
PRINTED NAME: Konrad Ackerman         PRINTED NAME: Libby Leonard
             ------------------                    ------------------

WHALEHAVEN FUNDS LIMITED             GREENWICH GROWTH FUND LIMITED
------------------------             -----------------------------

BY: /s/ Evan Schemanauer              BY: /s/ Derek Wood
   --------------------------            ---------------------------
ITS: CFO                              ITS: Director
    -------------------------             --------------------------
PRINTED NAME: Evan Schemanauer        PRINTED NAME: Derek Wood
              ----------------                     -----------------

GENESIS MICROCAP INC.

BY: /s/ Larry Gibbons
   ---------------------------
ITS:
    --------------------------
PRINTED NAME: Larry Gibbons
             -----------------

<PAGE>EXHIBIT 10.1

 

 

 

9/06 AMENDMENT TO CREDIT AGREEMENT

effective as of September 13, 2006

 

amending the

8/05 AMENDED AND RESTATED SENIOR SECURED CREDIT AGREEMENT

dated as of August 1, 2005

by and among

 

HOMEBANC CORP.

and

HOMEBANC MORTGAGE CORPORATION

 

and

 

JPMORGAN CHASE BANK, N.A.

as Administrative Agent, Collateral Agent and a Lender,

 

and

 

the other Lender(s) parties hereto

 

KEYBANK NATIONAL ASSOCIATION

as Syndication Agent

 

COMMERZBANK, A.G., NEW YORK BRANCH and GRAND CAYMAN BRANCH,

U.S. BANK NATIONAL ASSOCIATION,

BNP PARIBAS

and

UNITED OVERSEAS BANK LIMITED, NEW YORK AGENCY

as Documentation Agents

 

J.P. MORGAN SECURITIES INC.

Sole Bookrunner

and Lead Arranger

 

$500,000,000 Senior Secured Revolving Credit

 

 

 

 

Index of Defined Terms

Page

 

 

 

	
            8/05 Credit Agreement
 	
            1
 
	
            9/06 Amendment
 	
            1
 
	
            9/06 Amendment Effective Date
 	
            1
 
	
            Agent
 	
            1
 
	
            Amendment
 	
            1
 
	
            Companies
 	
            1
 
	
            Company
 	
            1
 
	
            Current Credit Agreement
 	
            1
 
	
            HC
 	
            1
 
	
            HMC
 	
            1
 
	
            JPMorgan
 	
            1
 
	
            Lenders
 	
            1
 
	
            Qualified Trust Preferred Securities
 	
            2
 

 

 

Table of Contents

Page

 

 

 

 

	
            1
 	
            DEFINITIONS
 	
            2
 
	
            7
 	
            COLLATERAL
 	
            3
 
	
            8
 	
            CONDITIONS PRECEDENT
 	
            3
 
	
            9
 	
            REPRESENTATIONS
 	
            3
 
	
            11
 	
            NEGATIVE COVENANTS
 	
            4
 
	
            16
 	
            MISCELLANEOUS
 	
            4
 

 

 

i

 

 

 

9/06 AMENDMENT TO CREDIT AGREEMENT

 

Preamble

 

This 9/06 Amendment to Credit Agreement (the “9/06 Amendment” or, within itself only, this “Amendment”) effective as of September 13, 2006 (the “9/06 Amendment Effective Date”) amending (for the fifth time) the 8/05 Amended and Restated Senior Secured Credit Agreement (the “8/05 Credit Agreement” and as it may be supplemented, amended or restated, the “Current Credit Agreement”), executed as of August 1, 2005, among:

 

(i)  HOMEBANC CORP., a Georgia corporation (“HC”), its wholly-owned subsidiary, HOMEBANC MORTGAGE CORPORATION, a Delaware corporation (“HMC” HC and HMC being sometimes referred to individually as a “Company” and together as the “Companies”), each having its principal office at 2002 Summit Boulevard, Suite 100, Atlanta, Georgia  30319;

 

(ii)  JPMORGAN CHASE BANK, N.A. (“JPMorgan”), a national banking association, acting herein as a Lender and agent and representative of the other Lenders (in that capacity JPMorgan is called the “Agent”); and

 

(iii)  such other Lenders as may from time to time be party to this Agreement (together with JPMorgan as a lender, the “Lenders”).

 HOUSTON: 007002.04171: 1115231v4

 

Each of the parties hereto recites and provides as follows:

 

Recitals

 

The Companies have asked the Lenders and the Agent to amend the Debt limitation covenant of the 8/05 Credit Agreement, as heretofore amended, to (i) increase to $200 million the limitation on Qualified Trust Preferred Securities that HC or HMC are permitted to issue and (ii) permit the Companies to issue up to an aggregate $200 million of convertible Debt so long as all of such convertible Debt is subordinated, in form acceptable to the Agent, to the Debt under this Facility, and the Lenders and the Agent have agreed to do so on the terms and subject to the conditions of this Amendment and provided that the Companies’ agreements with the Lenders and the Agent that are set forth in the December 15, 2005 letter agreement between the Companies and the Agent are expanded and set forth in this Amendment.

 

All capitalized terms used in the 8/05 Credit Agreement and used but not defined differently in this Amendment have the same meanings here as there.

 

The Sections of this Amendment are numbered to correspond with the numbers of the Sections of the 8/05 Credit Agreement amended hereby and are accordingly often nonsequential.

 

If there is any conflict or inconsistency between (i) these recitals and the following agreements; (ii) any of the terms or provisions of any of the other Facilities Papers and this Amendment; or (iii) any provision of this Amendment and any later supplement, amendment, restatement or replacement of it then in each case the latter shall govern and control.

 

 

 

 

Agreements

 

In consideration of the premises, the mutual agreements stated below and other good and valuable consideration paid by each party to each other party to this Amendment, the receipt and sufficiency of which each hereby acknowledges, the parties hereby agree as follows.

 

1      DEFINITIONS

	
             
  	
            1.1.
 	
            Defined Terms.  Effective from and after the 9/06 Amendment Effective Date:
 

A.           The following new definitions are added to Section 1.2 of the Current Credit Agreement, in alphabetical order (except where otherwise specified).

 

“9/06 Amendment” means the 9/06 Amendment to Credit Agreement effective as of September 13, 2006, amending this Agreement.

 

“9/06 Amendment Effective Date” means September 13, 2006, the effective date of the 9/06 Amendment.

 

	
             
 	
            B.
 	
            The following definition is amended in its entirety to henceforth read as follows:
 

 

“Qualified Trust Preferred Securities” means trust preferred securities, including all junior subordinated debentures and guaranties related to the issuance of such trust preferred securities, issued by a Capital Trust Entity, provided such issued securities, debentures and guaranties qualify as Qualified Subordinated Debt and whose indentures, if issued after June 28, 2005, contain substantially the following provision (with the Article and section number references adjusted as necessary to reference appropriate Sections of the indenture):

 

Notice to Senior Indebtedness Holders’ Agent.  JPMorgan Chase Bank, N.A. (“Chase”), acting in its capacity as agent and representative of the present and future holders of the Senior Indebtedness (in that capacity, Chase is herein referred to as the “Agent”) under the 12/05 Amendment to the Amended and Restated Senior Secured Credit Agreement among the Company, Chase and certain lenders, as it may be supplemented, amended, restated or replaced from time to time, has consented to this Indenture conditioned on inclusion of the provisions of this Section 15.7 and the other provisions of this Article XV. Upon the occurrence of any default under Section 5.1(a) [the Company’s defaults in the payment of any interest on any Debenture, including any Additional
Interest] or Section 5.1(c) [defaults in performance, or breaches, of any of the Company’s  covenants or agreements in the indenture or in the terms of the debentures (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in such Section of such indenture  specifically dealt with)], the Trustee shall use commercially reasonable efforts to promptly give to the Agent, by registered or certified mail, a written notice specifying such default or breach; provided  that the Trustee shall not, and shall not be deemed to, be liable to the Agent, and of such lenders or any other Person (other than for the willful misconduct or gross negligence of the Trustee) if the Trustee fails for any reason to give such written notice. Such notice shall be given to the Agent addressed to the Agent at 707 Travis, 6th Floor North, Houston, Texas 77002, or to such successor agent and/or such other address as shall have been specified in a written notice actually received by the Trustee at least ten (10) Business Days in advance of the giving of such written notice by the Trustee. No failure of the Trustee to give any notice under this Section 15.7 shall constitute a default under Section 5.1 or otherwise under the 12/05 Amended and Restated Senior Credit Agreement.

 

C.           Exhibit 9/06-E attached to this Amendment is hereby substituted for Exhibit 12/05-E to the 12/05 Amendment (which was substituted by the 12/05 Amendment for Exhibit E to the 8/05 Credit Agreement.)  

 

 

2

 

 

 

7            COLLATERAL

 

The provisions of Section 7.1 of the 8/05 Credit Agreement are not otherwise amended hereby.  Cumulative of such existing provisions, as security for the payment of the Loan and for the payment and performance of all of the Obligations, each Company hereby GRANTS to the Agent (as agent and representative of the Lenders) a first priority security interest in all of such Company’s present and future estate, right, title and interest in and to the Collateral, in addition to and cumulative of the security interest in the Collateral granted to the Agent in the 8/05 Credit Agreement and in the previous amendments to the 8/05 Credit Agreement, and the parties hereby declare and confirm that all such security interests were and are granted to and held by the Agent (as agent and representative of the Lenders.)

 

8      CONDITIONS PRECEDENT

 

Section 8 of the 8/05 Credit Agreement is further amended by adding the following new Section 8.6 to the end of Section 8, viz.:

 

8.6          Borrowings After the 9/06 Amendment Effective Date.  In addition to the conditions precedent stated in Sections 8.1, 8.2, 8.3, 8.4 and 8.5 above, the obligations of the Lenders to fund and the Agent to disburse any Advances under this Agreement after the 9/06 Amendment Effective Date are subject to the condition precedent that the Agent shall have received:

 

(a)          the 9/06 Amendment, duly executed by each Company, the Agent and the Required Lenders; 

 

(b)          a certificate of each Company’s corporate secretary (i) as to the incumbency of the officers of such Company executing the 9/06 Amendment and all other Facilities Papers executed or to be executed by or on behalf of such Company in connection with the 9/06 Amendment, (ii) as to the authenticity of their signatures (specimens of their signatures shall be included in such certificate or set forth on an exhibit attached to it, and the Agent and the Lenders shall be entitled to rely on that certificate until such Company has furnished a new certificate to the Agent) and (iii) that there have been no amendments to the Company’s certificate of incorporation or bylaws since September 30, 2005; and

 

	
             
  	
            (c)
 	
            such other documents, if any, as shall be specified by the Agent.
 

9      REPRESENTATIONS

 

Each Company hereby republishes its warranties and representations made in the 8/05 Credit Agreement effective (except as to those specified to relate only to a specific date) as of the 9/06 Amendment Effective Date.

 

10  AFFIRMATIVE COVENANTS

 

A new Section 10.21 is hereby added to the end of Section 10, as follows:

 

3

 

 

 

10.21  Notice of Defaults under Indentures.  The Companies will give written notice to the Agent promptly, and in no event later than ten (10) days, after the occurrence of (i) any “Event of Default”, (ii) any principal payment default, (iii) any interest or premium payment default or (iii) any performance default or breach of any covenant other than default in the payment of principal, interest or premium, under the trust indenture related to (x) the Qualified Trust Preferred Securities issued by any Capital Trust Entity or (y) any issue of HC Debt convertible into HC common stock.

 

11    NEGATIVE COVENANTS

 

	
             
 	
            Section 11.4 (f) is amended to henceforth read as follows:
 

 

11.4(f)  Debt Limitation.  Incur any Debt for borrowed money or for the deferred purchase price of property or services other than (i) Debt to the Lenders under this Agreement; (ii) Debt under warehousing, repurchase or other mortgage-related asset agreements to finance the Companies’ inventory of Mortgage Loans and other mortgage-related assets; (iii) accounts payable incurred in the ordinary course of business with standard payment terms; (iv) Debt of up to Twenty Million Dollars ($20,000,000) incurred in the ordinary course of business (for purposes of this provision, junior subordinated debt to support trust common securities issued by HC or HMC concurrently and in connection with the issuance of junior subordinate debentures issued by HC or HMC shall be deemed debt incurred in the
ordinary course of business); (v) Debt of one Company owed to the other Company, so long as such inter-company Debt is subordinated, in form acceptable to the Agent, to the Debt under this Facility; (vi) Debt of up to Two Hundred Million Dollars ($200,000,000) issued by HC or HMC to support the issuance of Qualified Trust Preferred Securities and related common securities by any and all Capital Trust Entities and (vii) Debt securities issued by HC convertible into common stock, of up to Two Hundred Million Dollars ($200,000,000), so long as such convertible Debt is unsecured and does not mature until ninety (90) days or more after the Maturity Date, and its indenture contains subordination provisions approved by the Agent subordinating such convertible Debt in right of payment to the Loan and imposes covenants and conditions that are no more restrictive or onerous than HC’s covenants and conditions under this Agreement.

16    MISCELLANEOUS

 

Section 16.11 is amended to read as follows:

 

16.11   Notice Pursuant to Tex. Bus. & Comm. Code §26.02.  THE 8/05 CREDIT AGREEMENT, AS AMENDED BY THE 9/05 AMENDMENT, THE 9/06 AMENDMENT AND THE OTHER FACILITIES PAPERS TOGETHER CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, 

 

4

 

 

CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

5

 

 

 

EXECUTED as of the 9/06 Amendment Effective Date.

 

HOMEBANC CORP.

 

By: /s/ JAMES L. KRAKAU                                      

Name:  James L. Krakau                                          
    

Title:    Senior Vice President                                      

 

HOMEBANC MORTGAGE CORPORATION

 

By: /s/ JAMES L. KRAKAU                                      

Name:  James L. Krakau                                          
    

Title:    Senior Vice President                                      

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

JPMORGAN CHASE BANK, N.A.

as the Agent and as a Lender

 

 

By: /s/ THANH ROETTELE                                      

Name:  THANH ROETTELE                                      

Title:    VICE PRESIDENT                                        

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

COMMERZBANK AKTIENGESELLSCHAFT

NEW YORK AND GRAND CAYMAN BRANCHES

	
             
 	
            as a Lender
 

 

 

By: /s/ GERARD A. ARAW                                      

Name:  Gerard A. Araw                                          
    

Title:    Assistant Treasurer                                          

 

 

By: /s/ MICHAEL P. McCARTHY                            

Name:  Michael P. McCarthy                                      

Title:    Vice President                                          
      

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

KEYBANK NATIONAL ASSOCIATION, 

as a Lender

 

 

By: /s/ PAUL HENSON                                          
    

Name:  Paul Henson                                          
          

Title:    Executive Vice President                                

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

U.S. BANK NATIONAL ASSOCIATION, 

as a Lender

 

 

By: /s/ WILLIAM J. UMSCHEID                              

Name:  WILLIAM J. UMSCHEID                              

Title:    Vice President                                          
      

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

BNP PARIBAS, 

as a Lender

 

 

By: /s/ LAURENT VANDERZYPPE                        

Name:  LAURENT VANDERZYPPE                        

Title:    Managing Director                                          

 

 

By: /s/ MARGUERITE L. LETON                            

Name:  MARGUERITE L. LETON                            

Title:    Vice President                                          
      

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

UNITED OVERSEAS BANK LIMITED

NEW YORK AGENCY, 

as a Lender

 

 

By: /s/ GEORGE LIM                                          
      

Name: George Lim

Title: FVP & General Manager

 

 

By: /s/ MARIO SHENG                                          
    

Name: Mario Sheng

Title: AVP

 

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

FIRST COMMERCIAL BANK, 

NEW YORK AGENCY,

as a Lender

 

 

By: /s/ BRUCE M..J. JU                                          
    

Name:  Bruce M. J. Ju                                          
        

Title:    SVP & General Manager                                

 

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

BANK HAPOALIM B.M.,

as a Lender

 

 

By: /s/ JAMES P. SURLESS                                      

Name:  JAMES P. SURLESS                                      

Title:    VICE PRESIDENT                                        

 

 

By: /s/ CHARLES McLAUGHLIN                            

Name:  CHARLES McLAUGHLIN                            

Title:    Senior Vice President                                      

Exhibits

 

	
            Exhibit 9/06-E
 	
            -
 	
            Form of Officer’s Certificate
 

 

Unnumbered counterpart signature page to 9/06 Amendment to 8/05 Amended and Restated Senior Secured Credit Agreement among HomeBanc Corp., HomeBanc Mortgage Corporation, JPMorgan Chase Bank, et al.

 

 

 

EXHIBIT 9/06-E

TO 8/05 CREDIT AGREEMENT

 

Form of Officer’s Certificate with computations

to show compliance or non-compliance with

certain financial covenants

 

OFFICER’S CERTIFICATE

 

 

	
            AGENT:
 	
            JPMORGAN CHASE BANK, N.A.
 

 

	
            COMPANY:
 	
            HOMEBANC CORPORATION (“HC”)
 

 

	
            SUBJECT PERIOD:
 	
                                       ended                         , 200    
 

 

	
            DATE:
 	
                                                  , 200    
 

 

 

This certificate is delivered to the Agent under the 8/05 Amended and Restated Senior Secured Credit Agreement dated as of August 1, 2005 (as supplemented, amended or restated from time to time, the “Current Credit Agreement”), among HC, its Subsidiary, HomeBanc Mortgage Corporation, the Agent and the financial institutions now or hereafter parties thereto (the “Lenders”).  Unless they are otherwise defined in this request, terms defined in the Current Credit Agreement have the same meanings here as there.

 

The undersigned officer of HC certifies to the Agent and the Lenders that on the date of this certificate that:

 

1.            The undersigned is an incumbent officer of HC, holding the title stated below the undersigned’s signature below.

 

2.            HC’s financial statements that are attached to this certificate were prepared in accordance with GAAP (except that interim — i.e., other than annual — financial statements exclude notes to financial statements and statements of changes to stockholders’ equity and are subject to year-end adjustments) and (subject to the aforesaid proviso as to interim financial statements) present fairly the financial position and results of operations of HC and its Subsidiaries, on a consolidated basis, as of                                 and for the (check, as applicable) o  month o one, o two or o three quarter(s) of HC’s fiscal year, as the case may be, ending on the last day of that period (the “Subject Period”).

 

3.            The undersigned officer of HC supervised a review of the activities of HC and its Subsidiaries during the Subject Period in respect of the following matters and has determined the following:  (a) to undersigned officer’s best knowledge, except to the extent that (i) a 

 

 

representation or warranty speaks to a specific date or (ii) the facts on which a representation or warranty is based have changed by transactions or conditions contemplated or expressly permitted by the Facilities Papers, the representations and warranties of the Companies in Section 9 of the Current Credit Agreement are true and correct in all material respects, other than for the changes, if any, described on the attached Annex A; (b) the Companies have complied with all of their obligations under the Facilities Papers, other than for the deviations, if any, described on the attached Annex A; (c) no Event of Default has occurred that has not been
declared by the Agent in writing to have been cured or waived, and no Default has occurred that has not been cured before it became an Event of Default, other than those Events of Default and/or Defaults, if any, described on the attached Annex A (d) compliance by HC with certain financial covenants in Section 11 of the Current Credit Agreement is accurately calculated on the attached Annex A.

 

HOMEBANC CORP.

 

By:                                          
                                      

Name:                                          
                                

Title:                                          
                                  

 

 

 

 

ANNEX A TO OFFICER’S CERTIFICATE

 

1.            Describe deviations from compliance with obligations, if any  —  clause 3(b) of attached Officer’s Certificate  —  if none, so state:

 

 

 

 

 

2.            Describe Defaults or Events of Default, if any  —  clause 3(c) of attached Officer’s Certificate  —  if none, so state:

 

 

 

 

 

3.            Calculate compliance with covenants in Section 11  —  clause 3(d) of attached Officer’s Certificate:

 

(a)          Section 11.4(a).  HC’s Adjusted Tangible Net Worth as of ________ is $__________________ (the minimum under Section 11.4(a) is $225,000,000 plus 85% of the net proceeds realized by HC from equity offerings after its initial public offering.)

 

(b)          Section 11.4(b).  HC’s Total Recourse Liabilities to Adjusted Tangible Net Worth ratio as of ___________ is _____:1.00 (the limit under Section 11.4(b) is 8.0:1:00.)

 

(c)          Section 11.4(c).  HC’s Total Liabilities minus Qualified Subordinated Debt to Adjusted Tangible Net Worth ratio as of ___________ is ______:1.00 (the limit under Section 11.4(c) is as follows:)

 

	
            On and after this Date
 	
            the maximum ratio is
 
	
            Effective Date
 	
            20.00:1.00
 
	
            November 30, 2005
 	
            25.00:1.00
 

 

(d)          Section 11.4(d).  HC’s Liquidity is $______________.  (The minimum under Section 11.4(d) is $35,000,000.)

 

 

 

 

(e)          Section 11.4(e).  HMC’s Adjusted Tangible Net Worth as of ________ is $__________________ (the minimum under Section 11.4(e) is $10,000,000.)

 

(f)           Section 11.4(f).  HC and its Subsidiaries have not incurred any Debt other than (i) Debt to the Lenders under the Current Credit Agreement; (ii) Debt under warehousing, repurchase or other mortgage-related asset agreements to finance the Companies’ inventory of Mortgage Loans and other mortgage-related assets; (iii) accounts payable incurred in the ordinary course of business with standard payment terms; (iv) Debt of up to Twenty Million Dollars ($20,000,000) incurred in the ordinary course of business (for purposes of this provision, junior subordinated debt to support trust common securities issued by HC or HMC concurrently and in connection with the issuance of junior subordinate debentures issued by HC or HMC shall be deemed debt incurred
in the ordinary course of business); (v) Debt of one Company owed to the other Company, so long as such inter-company Debt is subordinated, in form acceptable to the Agent, to the Debt under this Facility; (vi) Debt of up to Two Hundred Million Dollars ($200,000,000) issued by HC or HMC to support the issuance of Qualified Trust Preferred Securities and related common securities by any and all Capital Trust Entities and (vii) Debt securities issued by HC convertible into common stock, of up to Two Hundred Million Dollars ($200,000,000), subordinated, in form acceptable to the Agent, to the Debt under the Current Credit Agreement.

 

(g)          Section 11.4(g).  HC has not declared or paid any dividend or made any distribution directly or indirectly to its shareholders when, or after the payment of which, (i) any Default or Event of Default described in Sections 12.1(a), 12.1(b), or non-payment of any fee described in 12.1(c) exists or (ii) when any Default or Event of Default other than those described in Sections 12.1(a), 12.1(b), or non-payment of any fee described in 12.1(c) exists, except to the extent necessary to avoid the loss of HC’s federal tax status as a real estate
investment trust.

 

(h)          Section 11.4(h).  The Companies have not directly or indirectly made any advance to (or declined or deferred any payment due from) any stockholder where at the time of or immediately after such action (x) the Companies’ Adjusted Tangible Net Worth was or would be less than the minimum specified in clause (d) above or (y) any Default or Event of Default existed or would exist[, except for the aggregate sum of $_____________ advanced by HMC to HC which was necessary to enable HC to fund payment of a dividend the nonpayment of which would result in the loss of HC’s federal tax status as a real estate investment trust].

 

(a)          Section 11.4(i).  The percentage of the aggregate principal balances of all of the Companies’ Serviced Loans that are In Default as of __________________ is __________% (the maximum permitted under Section 11.4(i) is 5%.)

	
             
  	
            (b)

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