Document:

ex10-1.htm

Exhibit 10.1

 

 

 

 

 

January 20, 2015

Mr. Mitchell S. Klipper

122 Fifth Avenue

New York, NY 10011

Re:  Retirement and Advisory Agreement

Dear Mr. Klipper:

This Retirement and Advisory Agreement (the “Advisory Agreement”) is intended to amend the employment agreement between you and Barnes & Noble, Inc. (the “Company”), dated as of March 17, 2010 (the “Employment Agreement”), and to set forth our mutual understanding regarding your retirement as Chief Executive Officer – Barnes & Noble Retail Group and transition to Special Advisor to the Company.  Any matters referred to in your Employment Agreement that are not expressly addressed in this Advisory Agreement shall continue to be governed by the terms of your Employment Agreement, which remains in full force and effect except as modified hereby.  Any capitalized terms that are not otherwise defined herein shall have the meanings assigned thereto in your Employment Agreement.

Accordingly, we are pleased to agree as follows:

1.  Term.  For purposes of this letter agreement, (A) the “Remaining Term” shall mean the period beginning on the date hereof and expiring on May 2, 2015 and (B) the “Advisory Term” shall mean the period beginning on May 3, 2015 and expiring on May 3, 2019; provided that the Remaining Term and the Advisory Term shall terminate on such earlier date on which your employment is terminated by the Company or you for any reason or no reason.  Your employment shall terminate upon your death and may be terminated by the Company upon written notice to you following your Disability.  Your employment may also be terminated by the Company immediately for Cause or following two weeks written notice to you for any other reason.  Your employment may also be terminated by you immediately following written notice to the Company of your intention to resign.

2.  Duties.  You shall remain in your current position of Chief Executive Officer – Barnes & Noble Retail Group through the expiration of the Remaining Term, during which period you shall continue to perform those duties (a) set forth in Section 1 of your Employment Agreement and (b) required for the transition of your current duties and responsibilities to the next Chief Executive Officer – Barnes & Noble Retail Group or such other officer or officers of the Company who shall be assigned such duties and responsibilities.  During the Advisory Term, you shall transition to and assume the responsibilities of a Special Advisor to the Company, and in such capacity you shall perform such duties and have such responsibilities (i) as are reasonably requested by either of the Executive Chairman or Chief Executive Officer of the Company, solely with respect to matters relating to your skills, experience and expertise regarding real estate operations, and (ii) pertaining to the transition of your current duties and responsibilities to the next Chief Executive Officer – Barnes & Noble Retail Group or such other officer or officers of the Company who shall be assigned such duties and responsibilities.

 

 

  

  

  

 

3.  Compensation.

a.  Salary.  During the Remaining Term, your current annual base salary as of the date hereof shall remain in effect and be paid in accordance with Section 3.1 of your Employment Agreement.  During the Advisory Term, your annual base salary shall be U.S. $400,000.00, payable in accordance with the Company’s payroll schedule to executive officers of the Company.  Section 3.1 of your Employment Agreement shall cease to apply as of the commencement of the Advisory Term.

b.  Bonus.  Your annual bonus for the Company’s 2015 fiscal year shall be determined as set forth in Section 3.2 of your Employment Agreement based on your annual target bonus amount as of the date hereof.  During the Advisory Term, you shall not be eligible to receive an annual bonus, and Section 3.2 of your Employment Agreement shall cease to apply effective as of the commencement of the Advisory Term, except that you shall remain eligible to receive an annual bonus for fiscal year 2015 in accordance therewith.

c.  Benefits.  From the date hereof through the termination of the Advisory Term, you shall continue to be entitled to the benefits set forth in Sections 3.3, 3.4, 3.6 and 3.7 of your Employment Agreement.

d.  Equity Awards.  All outstanding unvested equity awards that you hold as of the date hereof shall vest upon the execution and delivery of this Advisory Agreement by the parties hereto, and Section 3.5 of your Employment Agreement shall cease to apply effective as of the execution and delivery of this Advisory Agreement by the parties hereto.

e.  Severance.  During the Remaining Term, you shall continue to be eligible for the Severance Amount, but Section 3.8 of the Employment Agreement shall cease to apply effective as of the commencement of the Advisory Term.  Notwithstanding any other provision of this Advisory Agreement, in the event that, during the Advisory Term, your employment is terminated by the Company without Cause or you voluntarily terminate your employment for Good Reason, you shall be entitled to (i) the annual base salary you would have received had you remained employed through May 3, 2019 (the “Advisory Severance Amount”) and (ii) continued participation in the benefits set forth in Sections 3.3 and 3.7 of your Employment Agreement (or at the Company’s discretion,

 

 

  

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participation in equivalent benefits obtained by the Company for you that shall be as close as reasonably possible to those benefits that you receive as of the date of termination) through May 3, 2019 (the “Advisory Severance Benefits”), in each case less all applicable withholding and other applicable taxes and deductions; provided that (x) you execute and deliver to the Company, and do not revoke, a Release and (y) you have not materially breached as of the date of such termination any provisions of your Employment Agreement or this Advisory Agreement and do not materially breach such provisions at any time during the Relevant Period (as defined below).  The Company’s obligation to make such payment and to provide such benefits shall be cancelled upon the occurrence of any such material breach and, in the event such payment has already been made or benefits have been provided, you shall repay to the Company such payment and the value of such benefits within 30 days after demand therefor; provided, however, such repayment shall not be required if the Company shall have materially breached your Employment Agreement or this Advisory Agreement prior to the time of your breach.  The Advisory Severance Amount shall be paid in cash in a single lump sum on the later of (1) the first day of the month following the month in which such termination occurs and (2) the date the Revocation Period (as defined in the Release) has expired, and the Advisory Severance Benefits shall commence on the date your employment terminates.  Notwithstanding anything in this paragraph to the contrary, if a Release is not executed and delivered to the Company within 60 days of such termination of employment (or if such Release is revoked in accordance with its terms), the Advisory Severance Amount shall not be paid and the Advisory Severance Benefits shall terminate.  For the avoidance of doubt, (A) you expressly agree that the change in your authority, duties or responsibilities in connection with your transition to Special Advisor shall not constitute “Good Reason” for purposes of this Advisory Agreement and (B) upon the expiration of the Advisory Term, or upon the termination of your employment for Cause or due to the expiration of this Advisory Agreement or by your death or Disability, or by your voluntary termination of your employment hereunder for any reason other than Good Reason, you shall be entitled only to the payment of such installments of your annual base salary that have been earned through the date of such expiration and/or termination and, other than in connection with the expiration of the Advisory Term, the Company shall provide you and your dependents continued participation in the Company’s health and medical benefits (or at the Company’s discretion, participation in equivalent benefits obtained by the Company for you and your dependents that shall be as close as reasonably possible to those benefits that you and your dependents receive as of the date of termination) through May 3, 2019.

 

f.  Change of Control Payments.  During the Remaining Term, you shall continue to be eligible for the Change of Control payments set forth in Section 3.9 of the Employment Agreement, but Section 3.9 of the Employment Agreement shall cease to apply effective as of the commencement of the Advisory Term.  For the avoidance of doubt, in the event that at any time after the expiration of the Remaining Term there is a Change of Control, you shall not be entitled to any enhanced severance payments or benefits as a result of or in connection with such Change of Control.

4.  Indemnification and Hold Harmless.  The Company shall indemnify, defend and hold you harmless from any and all claims, suits, demands, settlement, judgments, arbitration awards and the like (collectively “Claims”) against or pertaining to you (unless your conduct out of which such Claim arises constitutes willful misconduct or gross negligence) which arise based on the facts and circumstances, in part or in whole, from any facts or circumstances which occurred on or before the expiration or termination of this Advisory Agreement, and which have or will be filed before, on or after the expiration or termination of this Advisory Agreement, based on any facts and circumstances taken by you in the course of your duties hereunder.

 

 

  

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5.  Miscellaneous.

a.  Entire Agreement.  This Advisory Agreement and the Employment Agreement constitute the entire agreement between you and the Company with respect to the terms and conditions of your employment by the Company and supersedes all prior agreements, understanding and arrangements, oral or written, between you and the Company with respect to the subject matter hereof and thereof.  You acknowledge and agree that this Advisory Agreement constitutes a modification of your rights under the Employment Agreement and any other agreement between you and the Company providing for compensation, benefits and severance payments or benefits or any other plan, program, policy or arrangement providing for such benefits.  Notwithstanding the foregoing, all other terms of the Employment Agreement (including Sections 4, 5 and 6 thereof) and any such other agreement that have not been modified by this Advisory Agreement shall remain in full force and effect; provided that the term “Relevant Period” shall mean the term of your employment under this Advisory Agreement (whether during the Remaining Term or the Advisory Term) and a period of two years following the termination of such employment for any reason.

b.  Incorporation by Reference.  Except as set forth in Section 5(a) above, Section 6 of the Employment Agreement shall apply to this Advisory Agreement as if this Advisory Agreement were the Employment Agreement.

[Signatures Are On The Following Page]

 

 

 

 

 

 

 

 

 

  

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If the foregoing accurately reflects our agreement, kindly sign and return to us the enclosed duplicate copy of this letter.

 

	 	Very truly yours, 	 
	 	 	 	 
	 	BARNES & NOBLE, INC. 	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Michael P. Huseby	 
	 	 	Name:  Michael P. Huseby	 
	 	 	Title:    Chief Executive Officer	 
	 	 	Date:    January 20, 2015 	 

 

 

 

	Accepted and Agreed to: 	 	 
	 	 	 	 
	 	 	 	 
	By: 	/s/ Mitchell S. Klipper 	 	 
	 	Name:   Mitchell S. Klipper	 	 
	 	Title:     Chief Executive Officer of Barnes &	 	 
	 	      Noble Retail Group	 	 
	 	Date:    January 20, 2015 	 	 

 

 

 

 

 

 

 

 

 

[Signatures Page to Employment Agreement]Exhibit 10.1

 

RETIREMENT
Agreement

This Retirement
Agreement (this “Agreement”) is entered by and between William C. Erbey (“Executive”), Ocwen
Financial Corporation, a Florida corporation (“Ocwen”), and Ocwen Mortgage Servicing, Inc., a corporation organized
under the laws of the United States Virgin Islands and a subsidiary of Ocwen (“OMS,” and together with Executive
and Ocwen, the “Parties”) on this 16th day of January, 2015 (the “Effective Date”).

WHEREAS,
Executive is currently the Executive Chairman of Ocwen and is employed by OMS;

WHEREAS,
Executive was a founder of Ocwen and has served Ocwen and its predecessors for more than 30 years;

WHEREAS,
the Parties desire to enter into this Agreement on the terms and conditions set forth below to, among other items set forth below,
provide for Executive’s retirement effective January 16, 2015 (the “Retirement Date”) and the transition
of Executive’s position.

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

1.              
Retirement. Executive hereby
irrevocably resigns as Ocwen’s Executive Chairman, as an employee of OMS, and as an officer, employee, director, member,
manager and in any other position Executive serves with Ocwen and each of its Affiliates (as such term is defined below) effective
on the Retirement Date. Executive also hereby irrevocably resigns, effective on the Retirement Date, as a trustee, member of any
administrative committee, and in any other capacity under or with respect to any benefit plan sponsored or maintained by Ocwen
or any of its Affiliates. Executive also hereby irrevocably agrees to take all actions necessary to resign, not later than on
the Retirement Date and in accordance with that certain Consent Order Pursuant to New York Banking Law § 44 dated December
19, 2014 to which Ocwen and The New York State Department of Financial Services are parties (the “Consent Order”),
from his position as Chairman and as a member of the board of directors of each of the following entities: Altisource Portfolio
Solutions, S.A., Altisource Residential Corporation, Altisource Asset Management Corporation, and Home Loan Servicing Solutions
Ltd (collectively, the “Related Companies”). Executive further agrees that he will have no directorial, management,
oversight, consulting, or any other role at Ocwen or any Related Company, or at any of Ocwen’s or any of the Related Companies’
affiliates or subsidiaries as of the Retirement Date that would violate paragraph 57 of the Consent Order.

(a)               
Executive agrees that he has been paid all compensation and benefits due from Ocwen and each of its Affiliates (including,
but not limited to, salary, bonus, incentive, share of promote, and other wages), except as otherwise expressly provided in this
Agreement. Executive agrees that all payments due to Executive from Ocwen or any of its Affiliates after the Retirement Date (other
than payments Executive may be entitled to as a stockholder of Ocwen) shall be determined under this Agreement.

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(b)              
Executive’s current base salary and current participation in Ocwen’s health and welfare benefit plans will
continue through Executive’s Retirement Date. On or promptly after the Retirement Date, OMS will pay Executive his accrued
and unpaid base salary, and accrued and unused vacation pay (totaling 168 hours), through the Retirement Date. Executive will
not be eligible for any additional equity or incentive-based compensation, except as expressly provided below in this Section
1. Executive’s vested benefits (if any) under the 401(k) retirement plan maintained by Ocwen or OMS, as the case may be,
in which Executive participates will be paid in accordance with the terms and conditions of such plan.

(c)               
OMS will consider Executive for an annual bonus for fiscal 2014, determined and paid as though Executive’s employment
by OMS had continued through the payment date of such bonus and determined by OMS in a manner consistent with its determination
of bonuses for 2014 for its other senior executives.

(d)              
Executive currently holds stock options granted by Ocwen to purchase, in the aggregate, 3,572,626 shares of Ocwen common
stock (collectively, the “Stock Options”). The current number of shares subject to, per share exercise price
and expiration date of, the Stock Options are as follows:

	Current No.	Current Exercise	Year	 
	of Shares	Price/Sh.	of Grant	Expiration Date
	 	 	 	 
	69,805	$5.80844	2006	March 8, 2016
	102,821	$7.15812	2007	May 10, 2017
	2,400,000	$4.82028	2008	July 14, 2018
	1,000,000	$24.38	2012	August 21, 2022

 

The
Stock Options granted before 2012 will be fully vested and exercisable on the Retirement Date. 750,000 of the Stock Options granted
in 2012 will be fully vested and exercisable on the Retirement Date, and the remaining 250,000 will become vested and exercisable
on their scheduled vesting dates (125,000 on August 21, 2015 and 125,000 on August 21, 2016) as though Executive’s employment
had not terminated. Once a Stock Option is vested and exercisable, Executive will have the full applicable term of the Stock Option
(ending on the applicable Expiration Date noted above, and in each case subject to Ocwen’s ability to terminate or settle
such Stock Option before the applicable Expiration Date in connection with a change in control or similar event pursuant to the
applicable stock option agreement and Ocwen’s 2007 Equity Incentive Plan) to exercise such Stock Option. All of the other
terms and conditions of the Stock Options, as set forth in the applicable stock option agreement evidencing such Stock Option
and as set forth in Ocwen’s 2007 Equity Incentive Plan, as amended from time to time, continue in effect.

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(e)               
Executive currently owns 100 shares of OMS Class A Preferred Stock (the “Preferred Stock”). OMS will
declare a 2015 dividend of $725,000 (representing $7,250 per share of Preferred Stock) in the first quarter of 2015 which will
be paid in the ordinary course as though Executive’s employment by OMS had continued through the applicable dividend payment
date, except to the extent such dividend is prohibited by applicable law (any such dividend paid on the Preferred Stock in 2015,
the “2015 Dividend”). OMS agrees that it will not redeem such Preferred Stock until the date the 2015 Dividend
is paid on such Preferred Stock (after giving effect to such dividend payment). On a redemption of the Preferred Stock by OMS,
OMS will pay Executive $1.00 per share of Preferred Stock so redeemed, and Executive will have no other right with respect thereto
or in respect thereof. Executive agrees to reasonably cooperate with OMS, and to execute such other documents that OMS may reasonably
request to transfer the Preferred Stock to OMS, with respect to any such redemption of the Preferred Stock. All of the other terms
and conditions of the OMS 2013 Preferred Stock Plan, as amended from time to time, continue in effect.

(f)                
OMS will pay Executive, on or within ten (10) business days following January 31, 2015, a cash severance payment equal
to SEVEN HUNDRED AND TWENTY FIVE THOUSAND DOLLARS ($725,000.00), subject to applicable withholdings and deductions (the “Lump
Sum Severance Payment”).

(g)               
OMS will pay Executive, on or within ten (10) business days following January 31, 2015, a cash payment in lieu of any relocation
benefits equal to FOUR HUNDRED AND SEVENTY FIVE THOUSAND DOLLARS ($475,000.00), subject to applicable withholdings and deductions
(the “Lump Sum Relocation Payment”).

(h)               
Executive will submit to OMS, not later than January 31, 2015, any business expenses Executive has incurred on or before
the Retirement Date in performing his duties for Ocwen and any of its Affiliates that have not yet been reimbursed for reimbursement
in accordance with (and subject to) OMS’s usual expense reimbursement policies.

(i)                 Following the Retirement Date and except as otherwise provided in Section 1(j) below, Executive will no longer be eligible
to participate in the benefit plans and programs of Ocwen or any of its Affiliates, provided that this Agreement does not impact
any of Executive’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985 or similar state law (“COBRA”).

(j)                
Ocwen and OMS agree to provide continued coverage to Executive (and his eligible spouse) under a medical plan
maintained by them (or one of them, as the case may be) to the same extent and on the same terms as though Executive continued
to be an executive officer of Ocwen or OMS and in accordance with the terms and conditions of the applicable plan(s) as in effect
from time to time (“Continued Medical Coverage”); provided that (i) such obligation shall end on the earlier
of (A) the later of the date when Executive dies or Executive’s wife dies or (B) when Ocwen and OMS cease to offer such
coverage to the other former executives (and their dependents) to whom continued post-retirement medical coverage is currently
provided (other than as a result of such persons’ deaths), (ii) any applicable insurer(s) for such plans consent to such
continued coverage (it being understood that Ocwen and OMS will use their reasonable best efforts to obtain such consent), (iii)
such coverage can be provided in accordance with all laws, rules and regulations applicable to Ocwen and its Affiliates and such
plan(s), (iv) such coverage does not result in any material negative tax or other regulatory consequences for Ocwen or any of
its Affiliates, any such plan(s), or any other participants in any such plan(s), (v) such coverage does not result in any added
cost to Ocwen or any of its Affiliates (beyond the cost that would be incurred for covering one additional active employee of
Ocwen or OMS, and his or her eligible spouse, in such plan(s)), and (vi) Executive pays the standard costs that apply to an active
employee for such coverage.

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(k)               
Executive is not eligible for severance benefits under any severance plan, policy or arrangement of, or agreement with,
Ocwen or any of its Affiliates.

(l)                 Executive agrees that he holds no equity or derivative equity interest in, has no right with respect to any such interest
in, has no right to any promote or other incentive in or with respect to, and otherwise has no investment or right to make any
investment in or with respect to Ocwen or any of its Affiliates or any of their respective investments, except for his then-existing
ownership of Ocwen common stock, his Stock Options as referenced above, and his Preferred Stock as referenced above.

(m)              
Executive waives any right or claim to reinstatement as an employee of Ocwen or any of its Affiliates after the Retirement
Date.

(n)               
In the event it is determined in a final and unappealable order or judgment by a court of competent jurisdiction that Executive,
while employed by, or an officer or director of, Ocwen or any of its Affiliates, engaged in a felony (other than a traffic violation)
or breached his duty of loyalty (other than unintentionally) to Ocwen or any of its Affiliates, Executive agrees to promptly repay
to OMS, upon demand by Ocwen’s Board of Directors, the Lump Sum Severance Payment, the Lump Sum Relocation Payment and any
2015 Dividend (in each case net of applicable taxes and any tax withholding). In addition, in the event of any such determination,
and notwithstanding anything above to the contrary in this Section 1 or in Section 7 below, Ocwen may terminate any then-outstanding
Stock Options, may terminate any Continued Medical Coverage, and shall have no obligation thereafter under Section 7. The foregoing
provisions of this paragraph do not limit any other right or remedy available to Ocwen or any of its Affiliates in the circumstances.

As used
in this Agreement: (i) the term “Affiliate” means a person that directly or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, Ocwen (including, without limitation, OMS); (ii)
the term “control,” including the correlative terms “controlling,” “controlled by” and “under
common control with,” means the possession, directly or indirectly, of the power to direct or cause the direction of management
or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise)
of a person; and (iii) the term “person” shall be construed broadly and includes, without limitation, an individual,
a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. For the avoidance
of doubt, none of the Related Companies is an Affiliate of Ocwen.

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2.              
General Release by Executive.
Executive on his own behalf and on behalf of his descendants, dependents, heirs, executors, administrators, assigns and successors,
and each of them, hereby acknowledges full and complete satisfaction of and releases and discharges and covenants not to sue Ocwen
or any of its Affiliates, past and present, and each of them, as well as its and their assignees, successors, directors, officers,
stockholders, partners, representatives, attorneys, agents or employees, past or present, or any of them (individually and collectively,
“Releasees”), from and with respect to any and all claims, agreements, obligations, demands and causes of action,
known or unknown, suspected or unsuspected, arising out of or in any way connected with Executive’s employment with Ocwen
or any of its Affiliates or the termination thereof, including without limiting the generality of the foregoing, any claim for
severance pay, profit sharing, bonus or similar benefit, pension, retirement, life insurance, health or medical insurance or any
other fringe benefit, or disability, or any other employment-related claims, agreements, obligations, demands and causes of action,
known or unknown, suspected or unsuspected resulting from any act or omission by or on the part of Releasees committed or omitted
prior to the Effective Date, including, without limiting the generality of the foregoing, any claim under Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act, the Family and Medical Leave Act, or any other employment-related federal,
state or local law, regulation, ordinance, constitution or common law (collectively, the “Released Claims”);
provided, however, that the foregoing release and covenant does not apply to any obligation of Ocwen or any of its Affiliates
to Executive pursuant to any of the following: (1) any right to indemnification and advancement of expenses that Executive may
have pursuant to applicable law and the bylaws, charter or similar governing document of Ocwen or any of its Affiliates with respect
to any loss, damages or expenses (including but not limited to attorneys’ fees to the extent otherwise provided) that Executive
may in the future incur with respect to his service as an employee, officer or director of Ocwen or any of its Affiliates (“Indemnification
Right”); (2) with respect to any rights that Executive may have to insurance coverage for such losses, damages or expenses
under any directors and officers liability insurance policy of Ocwen or any of its Affiliates; (3) any rights to continued medical
and dental coverage that Executive may have under COBRA; or (4) any claim arising under this Agreement (or under any agreements
or arrangement expressly preserved by this Agreement as to a payment, benefit or right expressly preserved by this Agreement).
In addition, for the avoidance of doubt, this release does not cover any claims, agreements, obligations, demands and causes of
action arising out of or in any way connected with Executive’s rights as a stockholder of Ocwen or any Released Claim that
cannot be so released as a matter of applicable law. Notwithstanding anything to the contrary herein, nothing in this Agreement
prohibits Executive from filing a charge with or participating in an investigation conducted by any state or federal government
agencies. Executive does waive, however, the right to receive any monetary or other recovery, should any agency or any other person
pursue any claims on Executive’s behalf arising out of any Released Claim. Executive acknowledges and agrees that he has
received any and all leave and other benefits that he has been and is entitled to pursuant to the Family and Medical Leave Act
of 1993.

3.              
Waiver of Unknown Claims. It
is the intention of Executive in executing this Agreement that the same shall be effective as a bar to each and every Released
Claim hereinabove specified. Executive acknowledges that he may hereafter discover claims or facts in addition to or different
from those which Executive now knows or believes to exist with respect to Executive’s employment with Ocwen or any of its
Affiliates or the termination thereof and which, if known or suspected at the time of executing this Agreement, may have materially
affected this settlement. Nevertheless, Executive hereby waives any right, claim or cause of action that might arise as a result
of such different or additional claims or facts.

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4.              
ADEA Waiver. Executive expressly
acknowledges and agrees that by entering into this Agreement, he is waiving any and all rights or claims that he may have arising
under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), which have arisen on or before
the Effective Date. Executive further expressly acknowledges and agrees that:

(a)                In
return for this Agreement, he will receive consideration beyond that which he was already entitled to receive before executing
this Agreement;

(b)                He
is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement;

(c)                He
was given a copy of this Agreement on January 16, 2015, and informed that he had twenty-one (21) days within which to consider
this Agreement and that if he wished to execute this Agreement prior to the expiration of such 21-day period, he should execute
the Acknowledgement and Waiver attached hereto as Exhibit A;

(d)                Nothing
in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of
this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically
authorized by federal law; and

(e)                He
was informed that he had seven (7) days following the date of execution of this Agreement in which to revoke this Agreement, and
this Agreement will become null and void if Executive elects revocation during that time. Any revocation must be in writing and
must be received by Ocwen during the seven-day revocation period. In the event that Executive exercises this revocation right,
neither Ocwen nor Executive will have any obligation under this Agreement. Any notice of revocation should be sent by Executive
in writing to Ocwen to the address set forth below so that it is received within the seven-day period following execution of this
Agreement by Executive.

Ocwen Financial
Corporation

1000 Abernathy Road NE, Suite 210 

Atlanta,
Georgia 30328

Attention:
General Counsel

 

with a
copy to:

 

O’Melveny
& Myers LLP

610 Newport
Center Drive, 17th Floor

Newport Beach, California 92660

Attn:
Jeffrey W. Walbridge, Esq.

5.              
No Transferred Claims. Executive
warrants and represents that he has not heretofore assigned or transferred to any person not a party to this Agreement any Released
Claim or any part or portion thereof.

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6.              
Office; Return of Property. Executive
agrees that, on or before the Retirement Date, he will vacate his office provided by Ocwen in St. Croix, U.S. Virgin Islands,
and that, on or before January 31, 2015, he will return to Ocwen any and all property of Ocwen or any of its Affiliates that he
was provided or otherwise has in his possession (except that company cars may continue to be used by Executive until he is able
to procure replacements, which will occur as soon as practicable and in all events not later than February 28, 2015). If Executive
later discovers that any such property is in his possession, Executive agrees that he will promptly return it to Ocwen. If any
personal property of Executive remains in Ocwen’s office in St. Croix, U.S. Virgin Islands, after the Retirement Date, Ocwen
will promptly return such property to Executive (with Executive to reimburse Ocwen for any material costs in doing so).

7.              
Registration Rights.

(a)               
So long as Ocwen is eligible to use a registration statement on SEC Form S-3, at Executive’s request, Ocwen
will use its commercially reasonable efforts to file as soon as practicable after its receipt of Executive’s request a registration
statement on Form S-3 (or supplements or amendments as necessary) registering the resale of up to all of Executive’s shares
of Ocwen common stock then owned by Executive (but no shares acquired by Executive after the Effective Date other than pursuant
to the exercise of Stock Options), and will file prospectus supplements thereunder relating to up to two offerings of common stock
by Executive. Any such request by Executive must be in writing to Ocwen and may not be made before August 1, 2015. Ocwen’s
obligations pursuant to the preceding provisions of this paragraph shall end on August 1, 2019. Ocwen will use its commercially
reasonable efforts to maintain the effectiveness of any such registration statement(s) for so long as Executive holds shares registered
thereunder, but in no event will Ocwen have any such obligation after the second anniversary of the initial effectiveness of the
registration statement.

(b)              
Ocwen shall have the right to delay the filing of any registration statement under this Section 7 or suspend its use for
a period or periods not to exceed 90 days in any 12-month period; provided that the time periods specified in Section 7(a) will
be extended by the amount of time that such delay or suspension is in effect. Executive must provide duly completed and executed
questionnaires, powers of attorney and other documents reasonably required by Ocwen in order for Ocwen to include Executive as
a selling stockholder in any such registration statement. Ocwen will pay all SEC fees and other expenses in connection with the
preparation and filing of the registration statement, but Ocwen shall have no obligation to pay (and Executive will be responsible
for) Executive’s expenses relating to any offering or sale of shares of common stock by Executive under the registration
statement, including Executive’s brokerage commissions, underwriting commissions and transfer taxes. Ocwen shall have no
obligation to participate in any underwritten offering or provide legal opinions (other than any legal opinions required to be
attached as an exhibit to the registration statement and which Ocwen is reasonably able to provide), comfort letters or indemnification
agreements with respect to any sale under the registration statement.

(c)               
The registration rights granted to Executive under paragraphs (a) and (b) may not be assigned or transferred.

    	7

    	 

    

8.              
Protective Covenants.

(a)               
Confidential Information; Inventions.

                     i.                       
Executive shall not disclose or use at any time, either during the period of his employment with Ocwen and its Affiliates
or at any time thereafter, any Confidential Information (as defined below) of which Executive is or becomes aware, whether or
not such information is developed by him. Executive will take all reasonably appropriate steps to safeguard Confidential Information
in his possession and to protect it against disclosure, misuse, espionage, loss and theft. Notwithstanding the foregoing, Executive
may disclose Confidential Information as required by applicable law (including, but not limited to, truthfully responding to a
lawful and valid subpoena or other legal process) or pursuant to any investigation by a regulatory authority with jurisdiction
over Ocwen or OMS, but, to the extent legally permitted, shall give Ocwen the earliest possible notice thereof, shall, as much
in advance of the return date as possible, make available to Ocwen and its counsel the documents and other information sought,
and shall assist Ocwen and such counsel in resisting or otherwise responding to such process in accordance with Section 8(e) below.

                    ii.                       
As used in this Agreement, the term “Confidential Information” means confidential information obtained
by Executive while employed by Ocwen or OMS or their predecessors concerning their business affairs. Confidential Information
will not include any information that (A) has been published (other than a disclosure by Executive in breach of this Agreement)
in a form generally available to the public prior to the date Executive proposes to disclose or use such information, (B) has
been made available to Executive on a non-confidential basis, if the source of the information was not reasonably known to Executive
to be bound by a duty of confidentiality after due inquiry or (C) that is independently developed by Executive without reference
to any Confidential Information of which Executive was aware during his employment by Ocwen or any of its Affiliates.

(b)              
Restriction on Competition. Executive agrees that if Executive were to become employed by, or substantially
involved in, the business of a competitor of Ocwen or any of its Affiliates during the twenty-four (24) month period following
the Retirement Date, it would be very difficult for Executive not to rely on or use Ocwen’s and its Affiliates’ trade
secrets and confidential information. Thus, to avoid the inevitable disclosure of Ocwen’s and its Affiliates’ trade
secrets and confidential information, and to protect such trade secrets and confidential information and Ocwen’s and its
Affiliates’ relationships and goodwill with customers, for a period of twenty-four (24) months after the Retirement Date,
Executive will not directly or indirectly through any other person engage in, enter the employ of, render any services to, have
any ownership interest in, nor participate in the operation, management or control of, any Competing Business. For purposes of
this Agreement, the phrase “directly or indirectly through any other person engage in” shall include, without limitation,
any direct or indirect ownership or profit participation interest in such enterprise and shall include any direct or indirect
participation in such enterprise as an employee, consultant, director or officer. For purposes of this Agreement, “Competing
Business” means a person anywhere in the continental United States and elsewhere in the world where Ocwen and its Affiliates
engage in business, or reasonably anticipate engaging in business, on the Effective Date (the “Restricted Area”)
that at any time during Executive’s employment by Ocwen or any of its Affiliates has competed, or at any time during the
twenty-four (24) month period following the Retirement Date competes, with Ocwen or any of its Affiliates in any business related
to mortgage servicing. Nothing herein shall prohibit Executive from (A) maintaining or increasing his ownership interest,
as a shareholder in any Related Company (unless the Related Company engages in mortgage servicing), (B) maintaining a passive
ownership interest, as a shareholder, in any corporation (including any Related Company) at the level in effect as of the Effective
Date, or (C) becoming a passive owner of not more than 2% of the outstanding stock of any class of a corporation which is publicly
traded, so long as Executive has no active participation in the business of such corporation.

    	8

    	 

    

(c)               
Non-Solicitation of Employees and Consultants. For a period of twenty-four (24) months after the Retirement
Date, Executive will not directly or indirectly through any other person solicit, induce or encourage, or attempt to solicit,
induce or encourage, any employee or independent contractor of Ocwen or any of its Affiliates to leave the employ or service,
as applicable, of Ocwen or such Affiliate, or become employed or engaged by any third party, or in any way interfere with the
relationship between Ocwen or any such Affiliate, on the one hand, and any employee or independent contractor thereof, on the
other hand; provided that this Section 8(c) will not be violated by (A) general advertising or solicitation not targeted at any
employee or independent contractor of Ocwen or any of its Affiliates, (B) Executive serving as a reference, upon request, for
any such employee or independent contractor or (C) any such employee or independent contractor initiating the applicable relationship
with Executive. For the avoidance of doubt, nothing in this paragraph shall in any way restrict the business or operations of
the Related Companies by virtue of Executive’s passive ownership interest in the Related Companies.

(d)              
Non-Interference with Customers. For a period of twenty-four (24) months after the Retirement Date, Executive
will not, directly or indirectly through any other person, use any of Ocwen’s or any of its Affiliates’ trade secrets
to influence or attempt to influence customers, vendors, suppliers, licensors, lessors, joint venturers, associates, consultants,
agents, or partners of Ocwen’s or any of its Affiliates to divert their business away from Ocwen or such Affiliate, and
Executive will not otherwise use Ocwen’s or any of its Affiliates’ trade secrets to interfere with, disrupt or attempt
to disrupt the business relationships, contractual or otherwise, between Ocwen or any of its Affiliates, on the one hand, and
any of its or their customers, suppliers, vendors, lessors, licensors, joint venturers, associates, officers, employees, consultants,
managers, partners, members or investors, on the other hand; provided that this Section 8(d) will not be violated by (A) general
advertising or solicitation not targeted at any customers, vendors, suppliers, licensors, lessors, joint venturers, associates,
consultants, agents, or partners of Ocwen or any of its Affiliates or (B) any such persons initiating the applicable relationship
with Executive. For the avoidance of doubt, nothing in this paragraph shall in any way restrict the business or operations of
the Related Companies by virtue of Executive’s passive ownership interest in the Related Companies.

    	9

    	 

    

(e)               
Cooperation. Following the Retirement Date and upon the receipt of reasonable notice from Ocwen, Executive
shall reasonably cooperate with Ocwen and its Affiliates in connection with: (a) any internal or governmental investigation or
administrative, regulatory, arbitral or judicial proceeding involving Ocwen and any Affiliates with respect to matters relating
to Executive’s employment with, or service as a member of the board of directors of, Ocwen or any of its Affiliates (collectively,
“Litigation”); (b) any audit of the financial statements of Ocwen or any Affiliate with respect to the period
of time when Executive was employed by or provided services to Ocwen or any Affiliate (“Audit”); and (c) providing
such other occasional advice, assistance and consultation as Ocwen may reasonably request from time to time on matters with which
Executive was familiar and/or about which Executive acquired knowledge, expertise and/or experience during the time that Executive
was employed by Ocwen and its Affiliates to help ensure a smooth transition of his position; provided that such cooperation does
not unreasonably interfere with Executive’s then-current professional or personal commitments. Executive acknowledges that
such cooperation may include, but shall not be limited to, Executive making himself available to Ocwen or any Affiliate (or their
respective attorneys or auditors) upon reasonable notice for: (i) interviews, factual investigations, and providing declarations
or affidavits that provide truthful information in connection with any Litigation or Audit; (ii) appearing at the request of Ocwen
or any Affiliate to give testimony without requiring service of a subpoena or other legal process; (iii) volunteering to Ocwen
or any Affiliate pertinent information related to any Litigation or Audit; and (iv) turning over to Ocwen or any Affiliate any
documents relevant to any Litigation or Audit that are or may come into Executive’s possession. Notwithstanding anything
to the contrary, Executive will have no obligation to act against his own legal or financial interests or to forgo any constitutional
rights (including, but not limited to, in connection with any regulatory investigation), and this Section 8(e) will not affect
his Indemnification Rights. Ocwen and OMS agree to reimburse Executive for his actual and reasonable expenses in performing any
services pursuant to this Section 8(e) that are requested by Ocwen or OMS, provided that Executive promptly submits such expenses
for reimbursement along with reasonable and customary supporting documentation for the same. Any such reimbursement shall be paid
promptly after receipt by Ocwen or OMS of such materials from Executive, and in all events not later than the end of the calendar
year following the calendar year in which Executive incurred the related expenses.

(f)                
Understanding of Covenants. Executive acknowledges that, in the course of his employment with Ocwen and/or
its Affiliates and their predecessors, he has become familiar with Ocwen’s and its Affiliates’ and their predecessors’
trade secrets and with other confidential and proprietary information concerning Ocwen, its Affiliates and their respective predecessors.
Executive agrees that the foregoing covenants set forth in this Section 8 (together, the “Restrictive Covenants”)
are reasonable and necessary to protect Ocwen’s and its Affiliates’ trade secrets and other confidential and proprietary
information, good will, stable workforce, and customer relations.

    	10

    	 

    

Without
limiting the generality of Executive’s agreement in the preceding paragraph, Executive (i) represents that he is familiar
with and has carefully considered the Restrictive Covenants, (ii) represents that he is fully aware of his obligations hereunder,
(iii) agrees to the reasonableness of the length of time, scope and geographic coverage, as applicable, of the Restrictive Covenants,
(iv) agrees that Ocwen and its Affiliates currently conduct business throughout the Restricted Area, and (v) agrees that the Restrictive
Covenants will continue in effect for the applicable periods set forth above in this Section 8 regardless of whether Executive
is then entitled to receive benefits from Ocwen or any of its Affiliates. Executive understands that the Restrictive Covenants
may limit his ability to earn a livelihood in a business similar to the business of Ocwen and any of its Affiliates, but he nevertheless
believes that he has received and will receive sufficient consideration and other benefits as an employee of Ocwen and any of
its Affiliates and as otherwise provided hereunder to clearly justify such restrictions which, in any event (given his education,
skills and ability), Executive does not believe would prevent him from otherwise earning a living. Executive agrees that the Restrictive
Covenants do not confer a benefit upon Ocwen disproportionate to the detriment of Executive.

(g)               
Enforcement. Executive agrees that Executive’s services are unique. Executive agrees that a breach
by the Executive of any of the covenants in this Section 8 would cause immediate and irreparable harm to Ocwen that would be difficult
or impossible to measure, and that damages to Ocwen for any such injury would therefore be an inadequate remedy for any such breach.
Therefore, Executive agrees that in the event of any breach or threatened breach of any provision of this Section 8, Ocwen shall
be entitled, in addition to and without limitation upon all other remedies Ocwen may have under this Agreement, at law or otherwise,
to obtain specific performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order
to enforce or prevent any violations of the provisions of this Section 8, or require Executive to account for and pay over to
Ocwen all compensation, profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions
constituting a breach of this Section 8 if and when final judgment of a court of competent jurisdiction or arbitrator, as applicable,
is so entered against Executive, Ocwen or OMS, as applicable. Executive further agrees that the applicable period of time he is
subject to any covenant in this Section 8 that is of limited duration following the Retirement Date, as determined pursuant to
the foregoing provisions of this Section 8, such period of time shall be extended by the same amount of time that he is in breach
of such covenant.

(h)               
The protective covenants in this Section 8 may not be assigned or transferred by Ocwen or OMS.

    	11

    	 

    

9.              
Miscellaneous.

(a)               
Successors.

                     i.                This
Agreement is personal to Ocwen, OMS and Executive and shall not be assignable.

                    ii.                The
benefits and obligations of Ocwen and OMS under this Agreement shall, however, be binding upon and inure to the benefit of any
person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly
acquires ownership of Ocwen or OMS, as the case may be, or all or substantially all of the business or assets of Ocwen or OMS,
as the case may be.

(b)              
Waiver. Neither the failure nor any delay on the part of a Party to exercise any right, remedy, power or
privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy,
power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy,
power or privilege with respect to any other occurrence. No waiver shall be binding unless in writing and signed by the Party
asserted to have granted such waiver.

(c)               
Modification. This Agreement may not be amended or modified other than by a written agreement executed by
Executive and by an officer (other than Executive) of each of Ocwen and OMS.

(d)              
Complete Agreement. This Agreement constitutes and contains the entire agreement and final understanding
concerning Executive’s relationship with Ocwen and its Affiliates and the other subject matters addressed herein and supersedes
and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject
matters hereof. Any representation, promise or agreement not specifically included in this Agreement shall not be binding upon
or enforceable against any Party. Executive is not relying on any representation of Ocwen, OMS or any of the Releasees except
as expressly set forth in this Agreement. Ocwen and OMS are not relying on any representation of Executive except as expressly
set forth in this Agreement. This Agreement constitutes an integrated agreement. The agreements that evidence the Stock Options
and Preferred Stock, as amended hereby, are outside the scope of the foregoing integration provision. The Indemnification Rights
are also outside the scope of the foregoing integration provision.

(e)               
Severability. If any provision of this Agreement or the application thereof is held invalid, the invalidity
shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or
applications and to this end the provisions of this Agreement are declared to be severable.

    	12

    	 

    

(f)                
Governing Law. This Agreement shall be deemed to have been executed and delivered within the State of Florida,
and the rights and obligations of the Parties hereunder shall be construed and enforced in accordance with, and governed by, the
laws of the State of Florida without regard to principles of conflict of laws.

(g)               
Arbitration.

                    i.                        
Process. Any non-time barred, legally cognizable dispute, claim or controversy between Executive, on the
one hand, and Ocwen, any of its Affiliates or any other Releasee, on the other hand, including, but not limited to, any state
or federal statutory, regulatory, constitutional or common law claims, in any way arising out of, related to, or connected with
this Agreement or the subject matter thereof, its enforcement or interpretation, or because of an alleged breach, default, or
misrepresentation in connection with any of its provisions (other than with respect to a claim by the Company or OMS pursuant
to or to enforce Section 1(n)) (the “Arbitrated Disputes”), shall be resolved, consistent with the Federal
Arbitration Act, through final and binding arbitration in Palm Beach County, Florida, or any other venue to which the Parties
agree, before a sole arbitrator (the “Arbitrator”) selected and agreed upon by the Parties from the American
Arbitration Association, or its successor (“AAA”), and shall be conducted consistent with AAA’s then-current
Commercial Arbitration Rules and Procedures (which may be found and reviewed at https://www.adr.org/aaa/ShowProperty?nodeId=/UCM/ADRSTG_004103)
(the “AAA Rules”) as the exclusive forum for the resolution of such dispute; provided, however, that (1) provisional
injunctive relief may, but need not, be sought by either Party to this Agreement in a court of law while arbitration proceedings
are pending, and any provisional injunctive relief granted by such court shall remain effective until the matter is finally determined
by the Arbitrator, and (2) this Section 9(g) does not limit the rights of any Party pursuant to Section 8(g). The Arbitrator shall
have full and exclusive power and authority to address and decide any and all issues of or related to arbitrability of this Agreement.
The Arbitrator shall administer and conduct any arbitration in accordance with Florida law, including the Florida Rules of Civil
Procedure, and the Arbitrator shall apply substantive and procedural Florida law to any dispute or claim, without reference to
rules of conflict of law. Final resolution of any dispute through arbitration may include any remedy or relief which the Arbitrator
deems just and equitable, including any and all remedies provided by applicable state or federal statutes. At the conclusion of
the arbitration, the Arbitrator shall issue a written decision that sets forth the essential findings and conclusions upon which
the Arbitrator’s award or decision is based. Any award or relief granted by the Arbitrator hereunder shall be final and
binding on the Parties hereto and may be enforced by any court of competent jurisdiction. The Arbitrator shall determine the allocation
of associated fees and costs in accordance with applicable law, and any dispute as to the reasonableness of costs and expenses
shall be determined by the Arbitrator.

    	13

    	 

    

                                                     ii.                       
Confidentiality of Arbitration. Except as may be necessary to enter judgment upon the award or to the extent
required by applicable law, all claims, defenses and proceedings (including, without limiting the generality of the foregoing,
the existence of the controversy and the fact that there is an arbitration proceeding) shall be treated in a confidential manner
by the Arbitrator, the Parties and their counsel, and each of their agents, and employees and all others acting on behalf of or
in concert with them. Without limiting the generality of the foregoing, no one shall divulge to any third party or person not
directly involved in the arbitration the contents of the pleadings, papers, orders, hearings, trials, or awards in the arbitration,
except as may be necessary to enter judgment upon an award as required by applicable law. Any court proceedings relating to the
arbitration hereunder, including, without limiting the generality of the foregoing, to prevent or compel arbitration or to confirm,
correct, vacate or otherwise enforce an arbitration award, shall be filed under seal with the court, to the extent permitted by
law.

                                                     iii.                      
Voluntary Nature of Agreement. The Parties acknowledge and agree that they are hereby waiving any rights
to trial by jury in any action, proceeding or counterclaim brought by either of the Parties against the other in connection with
any matter whatsoever arising out of or in any way connected with this Agreement. Executive represents and warrants that Executive
has been provided reasonable time and opportunity to consult with legal counsel regarding the meaning and effect of this arbitration
provision and of this Agreement, and that Executive understands and agrees that, by virtue of this arbitration provision, Executive
is waiving Executive’s right to file or pursue court-based litigation against Ocwen, any of its Affiliates or any Releasee
with respect to any and all Arbitrated Disputes and, in addition, specifically is waiving Executive’s right to jury trial,
and that Executive does so knowingly and voluntarily with a full understanding of the consequences of Executive’s agreement.
For the avoidance of doubt, Executive is not waiving any rights to file or pursue court-based litigation against Ocwen, any of
its Affiliates or any Releasee with respect to any claims, disputes or controversies in any way arising out of, related to, or
connected with his rights as a stockholder of Ocwen.

(h)               
Cooperation in Drafting. Each Party has cooperated in the drafting, negotiation and preparation of this Agreement.
Hence, in any construction to be made of this Agreement, the same shall not be construed against any Party on the basis of that
Party being the drafter of such language.

(i)                 
Counterparts. This Agreement may be executed in counterparts, and each counterpart, when executed, shall
have the efficacy of a signed original. Photographic copies of such signed counterparts may be used in lieu of the originals for
any purpose.

(j)                
Advice of Counsel. Each Party recognizes that this is a legally binding contract and acknowledges and agrees
that they have had the opportunity to consult with legal counsel of their choice. Executive specifically agrees and acknowledges
that he has read and understands this Agreement, is entering into it freely and voluntarily, and has had ample opportunity to
consult counsel of his own choice (if and to the extent he felt it appropriate to do so).

    	14

    	 

    

(k)              
No Wrongdoing. This Agreement does not constitute an adjudication or finding on the merits and it is not,
and shall not be construed as, an admission or acknowledgement by any Party of any violation of any policy, procedure, state or
federal law or regulation, or any unlawful or improper act or conduct, all of which is expressly denied. Moreover, neither this
Agreement nor anything in this Agreement shall be construed to be, or shall be, admissible in any proceeding as evidence of or
an admission by any Party of any violation of any policy, procedure, state or federal law or regulation, or any unlawful or improper
act or conduct. This Agreement may be introduced, however, in any proceeding to enforce this Agreement.

(l)                 
Supplementary Documents. The Parties agree to cooperate fully in good faith and to execute any and all supplementary
documents and to take all additional actions that may be necessary or appropriate to give full force to the basic terms and intent
of this Agreement and which are not inconsistent with its terms.

(m)             
Headings; Construction. The section and paragraph headings and titles contained in this Agreement are inserted
for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation
of this Agreement. Where the context requires, the singular shall include the plural, the plural shall include the singular, and
any gender shall include all other genders and the neutral. Where specific language is used to clarify by example a general statement
contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the
general statement to which it relates.

(n)               
409A.  It is the Parties’ intention that payments and benefits under this Agreement be exempt from
or in compliance with Section 409A of the Internal Revenue Code of 1986, as amended, and accordingly, this Agreement will be interpreted,
administered and construed consistent with such intent. Each payment under this Agreement will be treated as a separate payment
of compensation for purposes of Section 409A. To the extent subject to Section 409A, all reimbursements and in-kind
benefits provided under this Agreement will be made or provided in accordance with the requirements of Section 409A, including,
where applicable, the requirement that (1) any reimbursement is for expenses incurred during Executive’s lifetime (or during
a shorter period of time specified in this Agreement or as otherwise contemplated by Section 1(j)), (2) the amount of expenses
eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement,
or in-kind benefits to be provided, in any other calendar year, (3) the reimbursement of an eligible expense will be made no later
than the last day of the calendar year following the year in which the expense is incurred and (4) the right to reimbursement
or in-kind benefits is not subject to liquidation or exchange for another benefit.

(o)              
Taxes.  Ocwen and OMS have the right to deduct from any amount otherwise payable to Executive (or his personal
representative or any other person entitled to receive such payment) the amount of any taxes that Ocwen or any of its Affiliates
may be required to withhold with respect to such payment. Except for amounts withheld by Ocwen or OMS, Executive shall be solely
responsible for any taxes due as a result of any payments or benefits provided for in this Agreement. To the extent any tax withholding
is required with respect to a payment or benefit contemplated by this Agreement and Ocwen or OMS cannot reduce a cash amount otherwise
due to Executive at that same time by the amount of the required tax withholding, Executive agrees to make arrangements reasonably
acceptable to Ocwen and OMS to provide them, in cash and not later than the time the tax withholding is due to be remitted to
the applicable taxing authority, with the amounts that they are required to withhold with respect to such payment or benefit.

[Remainder
of Page Intentionally Left Blank]

    	15

    	 

    

I
have read the foregoing Retirement Agreement and I accept and agree to the provisions it contains and hereby execute it voluntarily
with full understanding of its consequences.

	 	EXECUTED this 16th day of January 2015.	 	 	 
	 	 	 	 	 
	 	 	“Executive”
	 	 	 
	 	 	/s/ William C. Erbey
	 	 	William C. Erbey
	 	 	 
	 	EXECUTED this 16th day of January 2015.	 	 
	 	 	 	 
	 	 	“Ocwen”
	 	 	 
	 	 	Ocwen Financial Corporation
	 	 	a Florida corporation
	 	 	 	 
	 	 	/s/ Michael J. Stanton
	 	 	By:	Michael J. Stanton
	 	 	Its:	Senior Vice President
	 	 	 
	 	EXECUTED this 16th day of January 2015.	 	 
	 	 	 	 
	 	 	“OMS”
	 	 	 
	 	 	Ocwen Mortgage Servicing, Inc.
	 	 	a corporation organized under the laws of the United States Virgin Islands
	 	 	 	 
	 	 	/s/ Timothy M. Hayes
	 	 	By:	Timothy M. Hayes
	 	 	Its:	Executive Vice President 

    	16

    	 

    

EXHIBIT A

ACKNOWLEDGMENT
AND WAIVER

I,
William C. Erbey, hereby acknowledge that I was given 21 days to consider the foregoing Retirement Agreement and voluntarily chose
to sign the Retirement Agreement prior to the expiration of the 21-day period.

 

I
declare under penalty of perjury under the laws of the State of Florida that the foregoing is true and correct.

 

	 	EXECUTED this 16th day of January 2015.	 	 
	 	 	 
	 	 	/s/
    William C. Erbey
	 	 	William C. Erbey

    	A-1

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