Document:

EXHIBIT 10.6

 

AMENDMENT TO EMPLOYMENT
AGREEMENT

BETWEEN DAVID NORRIS AND
TREE.COM, INC.

 

December 3, 2009

 

This Amendment (“Amendment”) to that certain
Employment Agreement, dated as of June 30, 2008 ( “Agreement”)
 between David Norris (“Executive”) and Tree.com, Inc.
(“Company”), is effective as of December 3,
2009.  All capitalized terms used herein
without definition shall have the meanings given to them in the Agreement.

 

RECITALS

 

WHEREAS, Executive and Company are parties to the Agreement;
and

 

WHEREAS, the parties wish to amend the Agreement as set forth
below.

 

NOW, THEREFORE, in consideration of the mutual promises contained
herein and in the Agreement, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Executive and Company
hereby agree as follows:

 

1.               Term. 
Notwithstanding Section 2 of the Agreement, the Term is hereby
extended through June 30, 2011.

 

2.               Change in Control.  Section 2A(g) of
the Agreement shall be waived in case of a change in control of Company that
results in the dismissal of Executive without cause.  For purposes of this Amendment, a “Change in Control” means

 

(i)            the acquisition, by any means, by any individual
entity or group, within the meaning of Section 13 (d)(3) or 14 (d)(2) of
the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), (a “Person”),
directly or indirectly, of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of equity securities of Tree.com
representing more than 50% of the voting power of the then outstanding equity
securities of Tree.com entitled to vote generally in the election of directors
or managing members (as applicable) of the entity (“Outstanding
Voting Securities”); provided, however,
that for purposes of this subsection (i), the following acquisitions shall not
constitute a Change in Control:  (1) any
acquisition by any employee benefit plan (or trust related to such employee
benefit plan) sponsored or maintained by Tree.com or any corporation controlled
by Tree.com or (2) any acquisition by any Person pursuant to a transaction
which complies with clauses (A) and (B) of subsection (ii) of
this definition; or

 

(ii)           the consummation of a reorganization, merger or
consolidation or sale or other disposition, directly or indirectly or all or
substantially all of the assets of Tree.com or the purchase of assets or stock
or another entity (a “Business Combination”)
in each case, unless immediately following such Business Combination, (A) all
or substantially all of the individuals and entities who were the beneficial
owners of the Outstanding Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the then
outstanding combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, managing members or
other required persons (as applicable) of the entity resulting from such
Business Combination (including, without limitation, an entity

 

 

which as a result of such transaction owns Tree.com or
all or substantially all of the assets of Tree.com either directly or through
one or more subsidiaries) in substantially the same proportion as their
ownership immediately prior to such Business Combination of the outstanding
voting securities, and (B) no Person, any employee benefit plan (or
related trust) of Tree.com or such entity resulting from such Business
Combination) beneficially owns, directly or indirectly, more than a majority of
the combined voting power of the then Outstanding Voting Securities of such
entity except to the extent that such ownership of Tree.com existed prior to
the Business Combination; or

 

(iii)          the approval by the members, stockholders or other
required persons (as applicable) of Tree.com or a complete liquidation or
dissolution of Tree.com.

 

Also, if the Executive resigns within ninety (90) days
following the consummation of any Hostile Change of Control of the Company,
then the Company shall pay the Executive the following:

 

i)                                         Within thirty (30) days following such
resignation, an amount equal to all Other Accrued Obligations (as defined in
the Agreement); and

 

ii)                                      An amount equal to one (1) year’s
Base Salary, payable in equal installments on the Company’s regularly scheduled
paydays over the one (1) year period following the date of such
resignation (the “Severance Period”).

 

iii)                                   For the purposes of this Amendment, a “Hostile Change of Control” means a
transaction or series of transactions that results in any Person acquiring beneficial
ownership of more than fifty percent (50%) of the combined voting power of the Company’s
then Outstanding Voting Securities without the approval of the Company’s Board
of Directors.

 

3.               In the event that Company purchases a
mortgage company and places someone other than Executive in charge of the
combined mortgage company, then such event shall be deemed a termination of
Executive without cause and Executive shall be entitled to receive the
severance benefits provided under Section 1A(d) of the Agreement.

 

4.               Except as otherwise specifically provided
herein, in the event any term or condition of this Amendment shall conflict
with or be inconsistent with any term of the Agreement, this Amendment shall
govern to the extent of such conflict. 
All other terms and conditions of the Agreement shall remain in full
force and effect.  Capitalized terms
herein, not otherwise defined, shall have the meaning as in the Agreement.

 

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

 

	
   

  	
  TREE.COM, INC.

  	
   

  	
  DAVID NORRIS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Claudette Hampton

  	
   

  	
  /s/ David Norris

  
					

 

2EXHIBIT 10.7

 

AMENDMENT
NO. 2 TO THE EMPLOYMENT AGREEMENT

BETWEEN
DAVID NORRIS AND TREE.COM, INC.

 

May 10,
2010

 

This
Amendment No. 2 (“Amendment”) to
that certain Employment Agreement, dated as of June 30, 2008 between David
Norris (“Executive”) and Tree.com, Inc.
(the “Company”), for itself and on behalf of
its subsidiaries, as applicable, as subsequently amended by Amendment No. 1,
dated December 3, 2009 (collectively, the “Agreement”)
is effective as of February 25, 2010. 
All capitalized terms used herein without definition shall have the
meanings given to them in the Agreement.

 

WHEREAS, subject to the terms and conditions set forth
herein, Executive and the Company wish to make certain amendments to the
Agreement to provide Executive with enhanced severance in the event that his
employment terminates under certain circumstances following a change in control
of the Company;

 

WHEREAS, Executive and the Company also wish to make
certain clarifications to the Agreement with respect to severance payments consistent
with recent guidance promulgated by the Internal Revenue Service;

 

WHEREAS, the Compensation Committee of the Board of
Directors of Tree.com has met and previously approved the amendments set forth
herein.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency is hereby acknowledged, the
parties hereby agree as follows:

 

1.             Section 3(b) of
the Agreement is hereby amended by adding the following sentence to the end
thereof:

 

“Notwithstanding the foregoing and anything
to the contrary in this Agreement or any other agreement pursuant to which
Executive has received or shall receive in the future awards of equity from the
Company, Executive shall become immediately 100% vested in such equity awards
upon the occurrence of a “Change in Control” (as such term is defined by
Amendment No. 1 to the Agreement).”

 

2.             Section 8 of the
Agreement is hereby amended by deleting the first sentence and replacing it
with the following:

 

“It is intended that this Agreement comply
with Section 409A of the Internal Revenue Code of 1986, as amended, and
the rules and regulations issued thereunder (“Section 409A”)
and shall be interpreted and operated consistently with that intent.”

 

 

3.             Section 8 of the
Agreement is hereby amended by adding the following sentence to the end
thereof:

 

“For purposes of this Agreement, the terms “termination,” “termination of employment”
and “resignation” (and variations thereof)
shall mean Executive’s “separation from service” within the meaning of Section 1.409A-1(h) of
the Treasury Regulations promulgated under Section 409A, applying the
default terms thereof.”

 

4.             Section 1A (d) of
the Executive Standard Terms and Conditions is hereby deleted and replaced in
its entirety as follows:

 

“(d)         TERMINATION OR BREACH BY THE COMPANY OTHER THAN FOR
DEATH, DISABILITY OR CAUSE; RESIGNATION BY EXECUTIVE FOR GOOD REASON.              Upon (i) termination of
Executive’s employment with the Company prior to the expiration of the Term by
the Company without Cause (other than for death or Disability) or (ii) upon
Executive’s resignation prior to the expiration of the Term for “Good Reason” (as defined herein) (either such termination or
resignation, a “Qualifying Termination”), the
Company shall pay Executive the amounts described in subparagraphs (A) and
(B) below.  The Company shall pay
Executive the amount described in subparagraph (A) within thirty (30) days
following Executive’s Qualifying Termination. 
The Company shall pay Executive the amount described in subparagraph (B) on
the 60th day following Executive’s Qualifying
Termination date (the “Payment Date”);
provided that, payment of the amount described in subparagraph (B) shall
be conditioned on Executive’s execution and non-revocation before the Payment
Date of a general release of the Company and its affiliates in a form
substantially similar to that used for similarly situated executives of the
Company and its affiliates (a “Release of Claims”),
and Executive’s compliance with the restrictive covenants set forth in Section 2A
of these Executive Terms and Conditions.

 

(A)          An amount equal to all “Other
Accrued Obligations” (as defined herein).

 

(B)           An amount equal to Executive’s then-current Base
Salary, payable in installments on the Company’s regularly scheduled paydays
over the one (1) year period following the date of such Qualifying
Termination (the “Salary Continuation
Payments”).

 

Notwithstanding the foregoing, if Executive
obtains other employment or is otherwise compensated for services during the
period in which he is receiving Salary Continuation Payments (the “Severance Period”), the Company’s obligation to make future
payments to Executive under 

 

2

 

subparagraph (B) above shall be offset
against any compensation earned by Executive as a result of employment with or
services provided to a third party. 
Executive agrees to inform the Company promptly of his employment status
and any amounts so earned during the Severance Period.  Executive acknowledges and agrees that the
payments described in subparagraph (B) above constitute good and valuable
consideration for such Release of Claims.

 

For purposes of this Agreement, the term “Good Reason” shall mean (i) a material breach by the
Company of this Agreement prior to the expiration of the Term or (ii) the
purchase of a mortgage company and placement by the Company of a person other
than Executive in charge of the combined mortgage company.”

 

5.             Section 1 of the
Executive Terms and Conditions of the Agreement is hereby amended by adding a
new subsection (f) to the end thereof:

 

“(f)          QUALIFYING TERMINATION WITHIN ONE YEAR FOLLOWING
CHANGE IN CONTROL.  If Executive
experiences a Qualifying Termination within the one-year period following a
Change in Control (as defined by Amendment No. 1 to the Agreement), the
Company shall pay Executive the amount described in subparagraph (i) below
within thirty (30) days following Executive’s Qualifying Termination date.  The Company shall also pay Executive the
amount described in subparagraph (ii) below on the 60th day following the date on which Executive
experiences a Qualifying Termination within a one-year period following a
Change in Control (the “Change in Control Payment
Date”); provided that, payment of the amount described in
subparagraph (ii) shall be conditioned on Executive’s execution and
non-revocation before the Change in Control Payment Date of a Release of
Claims, and Executive’s compliance with the restrictive covenants set forth in Section 2A
of these Executive Terms and Conditions.

 

(i)            An amount equal to all Other Accrued Obligations.

 

(ii)           An amount equal to two times Executive’s
then-current Base Salary, payable in installments on the Company’s regularly
scheduled paydays over the one (1) year period following the date of such
Qualifying Termination.

 

No amounts payable to Executive pursuant to
this paragraph (f) shall be subject to the mitigation or offset provisions
described in paragraph 1A (d) of these Executive Terms and Conditions.”

 

3

 

6.             Section 1 of the
Executive Terms and Conditions of the Agreement is hereby amended by adding a
new subsection (h) to the end thereof

 

“(h)         NON-GOOD REASON RESIGNATION FOLLOWING CHANGE IN
CONTROL.  Notwithstanding anything to
the contrary in Amendment No. 1 to the Agreement, if Executive resigns his
employment within ninety (90) days following the consummation of any “Hostile
Change in Control” (as such term is defined in Amendment No.1 to the
Agreement), then the Company shall pay Executive the following amounts:

 

(i)            An amount equal to the Other Accrued Obligations,
within thirty (30) days following such resignation.

 

(ii)           An amount equal to one (1) year’s Base Salary,
payable in equal installments on the Company’s regularly scheduled paydays over
the one (1) year period following the date of such resignation.  Notwithstanding the foregoing, the Company
shall pay Executive the salary continuation payments described in this
subparagraph (ii) on the 60th day following
the date on which Executive resigns his employment pursuant to this paragraph
1A(h) (the “Resignation Payment Date”);
provided that payment of the such amount shall be conditioned on Executive’s
execution and non-revocation before the Resignation Payment Date of a Release
of Claims; and Executive’s compliance with the restrictive covenants set forth
in Section 2A of these Executive Terms and Conditions.”

 

7.             Paragraph three of Amendment
No. 1 to the Agreement is hereby deleted in its entirety.

 

8.             Except as explicitly set
forth herein, the remaining provisions of the Agreement will remain in full
force and effect.

 

IN WITNESS WHEREOF, the parties have executed
this Amendment No. 2 as of the date first written above.

 

	
  TREE.COM,
  INC.

  	
  DAVID
  NORRIS

  
	
   

  	
   

  
	
  By:

  	
  /s/ Claudette Hampton

  	
   

  	
  /s/ David Norris

  
	
  By:

  	
  Claudette Hampton

  	
   

  	
   

  
	
  Senior Vice
  President — Human Resources

  	
   

  

 

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