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Exhibit 10.26    
    

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED PROVISIONS OF THIS AGREEMENT AND, WHERE APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK (****) TO DENOTE WHERE
OMISSIONS HAVE BEEN MADE. THE CONFIDENTIAL PORTION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 
 

EXCLUSIVE SERVICES AGREEMENT    
    

        This Exclusive Services Agreement (this "Agreement"), effective as of January 1, 2006, is entered into by
and between IMPAC Funding Corporation, a California corporation ("Impac"), and Real Estate Disposition Corporation
("REDC"), a California corporation. 

 
 

RECITALS    
    

        WHEREAS, REDC is a home auction marketing company. 

        WHEREAS,
Impac is in the business of acquisition and origination of residential mortgage loans. 

        WHEREAS,
during 2007 Impac provided certain services to REDC as outlined in a separate Services Agreement (the "2007 Services Agreement"), and such services included assisting **** in
obtaining **** and **** as **** of ****. 

        WHEREAS,
the parties desire to enter into this new Agreement to set forth the terms of compensation Impac shall receive from REDC for continued services, as set forth herein, and revenue
that will continue to be earned by REDC for services performed under the 2007 Services Agreement. 

        NOW,
THEREFORE, in consideration of the foregoing and the mutual promises, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged and accepted, the parties to this Agreement hereby agree as follows: 

 
 

ARTICLE I    
    

1.    CERTAIN DEFINITIONS  

        1.1    "Affiliate" means with respect to any Person, (a) any other Person directly or indirectly
controlled by, controlling or under direct or indirect common control with the Person in question, or (b) any other Person who owns, directly or indirectly, fifteen percent (15%) or more of the
voting rights attributable to the ownership interest of the other Person or of any other Person which controls, is controlled by or is under common control with such Person. 

        1.2    "Code" means the Internal Revenue Code of 1986, as amended, or any corresponding provision or provisions of prior or
succeeding law. Any reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of future law. 

        1.3    "Fiscal Year" means the period ending December 31 of each year, or such other period as the REDC may designate as
the Fiscal Year of REDC, consistent with the requirements of the Code. 

        1.4    "GAAP" means generally accepted accounting principles, consistently applied. 

        1.5    "Gross Profit" means REDC's gross profit, as set forth on their financial statement (****), which is equal to **** equal
to **** from the **** from the ****. 

        1.6    "Person" means any individual, corporation, partnership, limited liability company, association, trust or other entity or
organization. 

        1.7    "Subsidiary" means any Affiliate of REDC which is directly or indirectly, through one or more intermediaries, controlled
by REDC. 

 
 
 

ARTICLE II    
    

2.    IMPAC SERVICES  

        2.1    Services Generally.    Impac shall provide the following services to REDC on an
exclusive basis in connection with REDC's auction business (the "Services"). The parties agree that the providing of such Services is a material term of
this Agreement. 

        (a)   Business
development advice as it pertains to potential additional clients for REDC—namely establishing contacts with other mortgage banks/lenders and
servicers that could provide REO assets for REDC's auctions—as well as reasonable client relations assistance for existing and new clients; and 

        (b)   Consulting
services as it relates to the mortgage industry and lending environment in connection with REDC's auctions, which is a key component to REDC's auction model. 

        (c)   In
the event Impac provides services to REDC beyond those set forth in (a) and (b) above, then REDC may owe additional compensation (beyond what is set
forth in this Agreement) to Impac as agreed to by the parties. 

 
 

ARTICLE III    
    

3.    SERVICE FEES PAYABLE  

        3.1    Payments Generally.    REDC shall pay a fee in cash to Impac equal to **** and ****.
Although the fee is based upon final, annual figures, REDC shall make estimated quarterly payments, based upon quarterly financials, to Impac. Such quarterly payments for fiscal year quarters ending
in March, June and September shall be made no later then May 15, August 15 and November 15, respectively, and the final payment for any fiscal year shall be made no later than
March 15 of the year following such fiscal year, within thirty (30) days following the second fiscal quarter of the first year of the term of this Agreement and within ninety
(90) days following each fiscal year during the entire term of this Agreement, the parties will meet to discuss any modifications to this Agreement that may be required due to a change in the
Services being provided hereunder. To the extent no changes are necessary, or cannot be reasonably agreed to by the parties, then the existing terms of this Agreement shall continue. 

        3.2    Change-in-Control Agreement Termination Fee.    In the event that substantially all of
the assets or stock of REDC are sold, transferred or otherwise disposed of by REDC (other than in the ordinary course of business) to any Person (the "Purchaser
Transferee"), or if REDC should engage in any merger transaction or leveraged recapitalization, or any similar transaction (all of the foregoing, a
"Sale Transaction"), REDC shall, both upon acceptance of the Sale Transaction and again on the date of the consummation of such Sale Transaction,
deliver written notice of such Sale Transaction to Impac and pay on the date of consummation to Impac a change-in-control agreement termination fee in cash equal to ****
including, but not limited to, **** legal fees and investment banking advisor fees) **** in such Sale Transaction. In the event the fee set forth in Section 3.1 above has been reduced from
****, as described to Section 3.3 below, then the **** fee set forth above shall be reduced ****. In connection with such Sale Transaction, the payment of funds to REDC or REDC shareholders
outside of the purchase price (i.e. for consulting services, non-compete agreements or through employment arrangements) shall not be included in the calculation of the purchase
price unless such funds are excess of the amounts consistent with the services, benefits or duties to be provided by REDC or its shareholders. Upon such termination, neither party shall have any
further obligation to the other, other than that REDC shall pay to Impac fees under Section 3.1 above through the termination date. 

        3.3    Termination Fee in Certain Cases.    If, at any time, Impac should voluntarily or involuntarily enter into a
bankruptcy proceeding then REDC shall have the right to terminate this Agreement upon 

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the
delivery to Impac of a notice to that effect and payment of a termination fee in cash equal to (a) **** for the **** plus (b) any fees due to Impac through the termination date under
Section 3.1 above. Additionally, if at any time after the effective date of this Agreement, **** and **** shall be **** following the **** shall have the right to **** upon the **** notice to
that effect **** and such **** shall take effect **** notice of such ****. 

        3.4    Termination for Non-Performance of Services.    In the event Impac fails to provide the Services
during the term of this Agreement, REDC shall provide written notice to Impac of such default, and should Impac fail to cure such default within thirty (30) days of receipt of such notice, then
this Agreement shall terminate upon the end of such thirty (30) day notice/cure period. Upon such termination, neither party shall have any further obligation to the other, other than that REDC
shall pay to Impac fees under Section 3.1 above through the termination date. 

        3.5    Expiration.    The initial term of this Agreement shall expire on December 31, 2010. Impac shall have
the right to renew this Agreement for an additional three (3) years provided they give written notice to REDC requesting such renewal no later than September 30, 2010. Notwithstanding
Impac's renewal right, nothing contained in this Agreement shall obligate REDC to maintain continuous business operations during the term of this Agreement 

        3.6    Payment Instructions.    All payments to lmpac pursuant to this Agreement shall be made via wire transfer
pursuant to instructions provided by Impac from time to time in writing. 

 
 

ARTICLE IV    
    

4.    REPRESENTATIONS AND WARRANTIES OF REDC  

        REDC hereby represents and warrants to Impac that as of the date hereof: 

        4.1    Organization, Good Standing and Qualification.    REDC is a corporation duly organized, validly existing and in
good standing under the laws of the State of California and has all requisite corporate power and authority to carry on its business as currently conducted, REDC is duly qualified to transact business
and is in good standing in each jurisdiction in which the failure so to qualify would have a material adverse effect on its business, properties, prospects or condition (financial or otherwise). 

        4.2    Authorization and Compliance. 

        (a)   All
corporate action on the part of REDC, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement and the
performance of all obligations of REDC hereunder has been taken, and this Agreement, when executed and delivered by REDC, shall constitute valid and legally binding obligations of REDC, enforceable in
accordance with its respective terms except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of general application affecting
enforcement of creditors' rights generally, and as limited by laws relating to the availability of a specific performance, injunctive relief, or other equitable remedies. 

        (b)   Neither
the execution and delivery of this Agreement nor the performance by REDC or its Affiliates of their obligations under this Agreement will: (i) with or
without the giving of notice or the passage of time, or both violate, or be in conflict with, or constitute a default under, or cause or permit the termination or the acceleration of the maturity of,
any debt or obligation of REDC or its Affiliates; (ii) require notice to or the consent of any party to any agreement or commitment, including, without limitation, any lease or license to which
REDC or its Affiliate is a party, or by which it or its properties is bound or subject; or (iii) result in the creation or imposition of any security interest, lien, or other encumbrance upon
any property or assets of 

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REDC
or its Affiliates under any agreement or commitment to which it is a party, or by which it or its properties is bound or subject. 

        4.3    Lodging and Healthcare.    REDC and its Subsidiaries have not, directly or indirectly, operated or managed any
lodging or health care facility, or provided to any other person (under franchise, license, or otherwise) rights to any brand name under which any lodging or heal care facility is operated. 

 
 

ARTICLE V    
    

5.    REPRESENTATIONS AND WARRANTIES OF IMPAC  

        Impac hereby represents and warrants to REDC that as of the date hereof: 

        5.1    Authorization.    Impac has full power and authority to enter into this Agreement. This Agreement, when
executed and delivered by Impac, shall constitute valid and legally binding obligations of Impac, enforceable in accordance with its respective terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors' rights generally, and as limited by laws relating to the
availability of a specific performance, injunctive relief; or other equitable remedies. 

 
 

ARTICLE VI    
    

6.    OPERATIONS  

        6.1    Records and Reports.    REDC shall cause to be kept, at the principal place of business
of REDC, or at such other location, as REDC shall reasonably deem appropriate, full and proper ledgers, other books of account, and records of all receipts and disbursements, other financial
activities, and the internal affairs of REDC for at least the current and past four fiscal years. 

        6.2    Delivery of Financial Statements and Other Documents.    Within thirty (30) days following each fiscal
quarter, REDC shall provide to Impac a copy of REDC's income statement for such quarter. Additionally, with each fee payment as set forth in Section 3.1, REDC shall deliver to Impac a statement
of operations for each relevant period in reasonable detail and prepared in accordance with GAAP. 

        6.3    Inspection.    REDC shall permit Impac, at Impac's expense, to visit and inspect REDC's properties, to examine
its books of account and records and to discuss REDC affairs, finances and accounts with its officers, all at such reasonable times as may be requested by Impac. 

 
 

ARTICLE VII    
    

7.    MISCELLANEOUS  

        7.1    Liability of Impac.    Impac shall not be personally liable in any manner whatsoever
for any debt, liability or other obligation of REDC, whether such debt, liability or other obligation arises in contract, tort, or otherwise. 

        7.2    Survival of Warranties.    Unless otherwise set forth to this Agreement, the representations and warranties of
REDC and Impac contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement for a period of one (1) year, provided, however, that such
representations and warranties are only made as of the date of such execution and delivery. The operational requirements set forth in ARTICLE V shall survive indefinitely. 

        7.3    Transfer; Successors and Assigns.    The terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties as are permitted by the Agreements. Nothing in this Agreement, express or implied, is intended to confer upon any 

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party
other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement. Notwithstanding the above, and given the unique nature of the Services to be provided by lmpac, Impac shall not be allowed to assign any of its obligations or rights under
this Agreement to another party without the prior written consent of REDC. Any such assignment without REDC's consent shall automatically terminate this Agreement. Upon such termination, neither party
shall have any further obligation to the other, other than that REDC shall pay to Impac fees under Section 3.1 above through the termination date. 

        7.4    Governing Law.    This Agreement and all acts and transactions pursuant hereto and the rights and obligations
of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to its principles of conflicts of law or choice of law. 

        7.5    Counterparts.    This Agreement may be executed in any number of counterparts and signatures may be delivered
by facsimile, each of which may be executed by less than all parties, each of which shall be
enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument. 

        7.6    Titles and Subtitles.    The titles and subtitles used in this Agreement are used for convenience only and are
not to be considered in construing or interpreting this Agreement. 

        7.7    Notices.    Any notice required or permitted by this Agreement shall be in writing and shall be deemed
sufficient upon delivery when delivered personally or by overnight courier or sent by telegram or fax or forty-eight (48) hours after being deposited in the U.S. mail, as certified or
registered mail, with postage prepaid, addressed to the party to be notified at such party's address as set forth on the signature page herein, or as subsequently modified by written notice, and if to
Impac, with a copy to William J. Cemius, Latham & Watkins LLP, 650 Town Center Drive, 2nd Floor, Costs Mesa, California 92626. 

        7.8    Fees and Expenses.    REDC and Impac shall bear their own expenses and legal fees incurred on their behalf with
respect to this Agreement and the transactions contemplated hereby. 

        7.9    Attorney's Fees.    If any action at law or in equity (including arbitration) is necessary to enforce or
interpret the terms of any of the Agreements, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such
party may be entitled. 

        7.10    Amendments and Waivers.    Any term of this Agreement may be amended or waived (either generally or in a
particular instance and either retroactively or prospectively) only with the written consent of each of REDC and Impac. Any amendment or waiver effected in accordance with this Section 6.11
shall be binding upon Impac and REDC. 

        7.11    Severability.    If one or more provisions of this Agreement are held to be unenforceable under applicable
law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be
enforceable in accordance with its terms. 

        7.12    Delays or Omissions; Remedies Cumulative.    No delay or omission to exercise any right, power or remedy
accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or
non-defaulting party nor shall it be construed to be a waiver of any such breach or default or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver 

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of
any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of
any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the
extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 

        7.13    Entire Agreement.    This Agreement and the Schedules and Exhibits hereto constitute the entire agreement
among the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing among any of the parties hereto are
expressly canceled. 

        7.14    Confidentiality.    REDC and Impac agree that, except with the prior written permission of the applicable
party, it shall at all times keep confidential and not divulge, furnish or make accessible to anyone any confidential information, knowledge or data concerning or relating to the business or financial
affairs of the other parties to which such party has been or shall become privy by reason of this Agreement, discussions or negotiations relating to this Agreement or the performance of its
obligations hereunder. The provisions of this Section 6.15 shall be in addition to, and not in substitution for, the provisions of any separate nondisclosure agreement executed by the parties
hereto with respect to the transactions contemplated hereby. 

        7.15    Tax Advice.    Each party hereto acknowledges and agrees that it has not received and is not relying upon tax
advice from any other party hereto, and that he, she or it has consulted and will continue to consult his, her, or its own tax advisors. 

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[Signature Pages Follow]

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        The
parties have executed this Agreement as of the date first written above. 

	 	 	REAL ESTATE DISPOSITION CORPORATION:
	    	 	 	 
	 	 	By:	/s/  JEFFREY FRIEDEN      

	    	 	 	 
	 	 	Name:	Jeffrey Frieden

	 	 	 	(Print)
	    	 	 	 
	 	 	Title:	CEO/President

	    	 	 	 
	 	 	Address:	One Mauchly

Irvine, CA 92618
	    	 	 	 
	    	 	 	 
	 	 	IMPAC FUNDING CORPORATION:
	    	 	 	 
	 	 	By:	/s/  WILLIAM ASHMORE      

	    	 	 	 
	 	 	Name:	William Ashmore

	 	 	 	(Print)
	    	 	 	 
	 	 	Title:	President

	    	 	 	 
	 	 	Address:	19500 Jamboree

Irvine, CA 92612

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QuickLinks

Exhibit 10.26

EXCLUSIVE SERVICES AGREEMENT

RECITALS

ARTICLE I

ARTICLE II

ARTICLE III

ARTICLE IV

ARTICLE V

ARTICLE VI

ARTICLE VIIQuickLinks
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Exhibit 10.27    
    

 
  EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYM ENT AGREEMENT is effective as of October 1st , 2007 ("Effective Date"), by and between Impac Mortgage
Holdings, Inc., a Maryland corporation ("Employer"), and Todd Taylor, an individual ("Employee"). 

 
 

RECITALS    
    

        WHEREAS, Employee is knowledgeable of the business of Employer; 

        WHEREAS,
Employer believes that Employee is an integral part of its management and currently is and will become more knowledgeable of the Business of employer and any affiliates or
related entities of Employer; 

        WHEREAS,
Employer proposes to employ Employee as the Senior Vice President, Chief Accounting Officer ("C.A.O"), Impac Mortgage Holdings, Inc.; 

        WHEREAS,
Employee may possess extensive confidential information concerning the Business, including confidential attorney-client communications; and 

        WHEREAS,
Employee is willing to be employed by Employer and provide services to Employer and any affiliates or related entities of Employer (as more fully described in  Exhibit A attached hereto) in his role
as CAO for the consolidated entities under the terms and conditions herein stated. 

 
 

AGREEMENT    
    

        NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, it is hereby agreed
by and between the parties hereto as follows: 

1.     Employment, Services and Duties.  

        1.1   Employer
hereby employs Employee and Employee hereby accepts such employment full-time (subject to those exceptions, if any, set forth below) as Senior Vice
President, Chief Accounting Officer ("CAO") of Employer to perform the duties and functions set forth in Exhibit A attached hereto and to perform
such other duties or functions as are reasonably required or as may be prescribed from time to time or as otherwise agreed. Employee shall render his services by and subject to the instructions and
under the direction of the Chief Financial Officer ("CFO") and/or such persons as the Board may reasonably designate. 

        1.2   Employee
acknowledges and agrees that Employee may be required by Employer to devote a portion of his working time to perform functions for Employer's affiliates,
subsidiaries or related entities and that such services are to be performed pursuant to and consistent with Employee's duties and obligations under this Agreement. 

        1.3   Employee
will at all times faithfully, industriously and to the best of his ability, experience and talents perform all of the duties required of him pursuant to the
terms of this Agreement. Employee will devote his full business energies and abilities and all of his business time to the performance of his duties hereunder and will not, without Employer's prior
written consent, render to others any service of any kind (whether or not for compensation) that would interfere with the full performance of Employee's duties hereunder, and in no event will engage
in any activities that compete with the Business or that could create a reasonably foreseeable conflict of interest or the appearance of a reasonably foreseeable conflict of interest; provided that
nothing contained in this Section 1.3 shall preclude Employee from engaging in or managing Employee's outside investments. 

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2.     Term and Termination.  

        2.1   The
term of this Agreement shall be through October 1st, 2009, unless extended by the mutual written agreement of Employer and Employee. 

        2.2   Employee's
employment shall terminate prior to the expiration of the term set forth in Section 2.1 upon the happening of any of the following events: 

        (a)   Voluntary
termination by Employee other than for Good Reason (as defined below); provided that Employee shall be required to provide Employer with at least
30 days prior written notice of such voluntary termination; 

        (b)   Death
of Employee; 

        (c)   Employer
may terminate Employee under this Agreement for "Cause" if any of the following occurs (any determination of "Cause" as used in this Agreement shall be made
only by an affirmative majority vote of the Board of Directors (not including Employee in the deliberations or vote on the same, if a director) of Employer), "Cause" shall mean: 

        (i)    Employee
is convicted of (or pleads nolo contendere to) (A) a crime of dishonesty or breach of trust, including such a crime involving either the property of
Employer (or any affiliate or related entity of Employer) or the property entrusted to Employer (or any affiliate or related entity of Employer) by its clients, including fraud, or embezzlement or
other misappropriation of funds belonging to Employer (or any affiliate or related entity of Employer) or any of their respective clients, or (B) a felony leading to incarceration of more than
90 days or the payment of a penalty or fine of $100,000 or more; 

        (ii)   Employee
materially and substantially fails to perform Employee's job duties properly assigned to Employee after being provided 30 days prior written
notification by Employer setting forth those duties that are not being performed by Employee; provided that Employee shall have a reasonable time to
correct any such failures to the extent that such failures are correctable and Employer may not terminate Employee for "Cause" on the basis on any such failure that is cured within a reasonable time. 

        (iii)  Employee
has engaged in willful misconduct or gross negligence in connection with his service to Employer (or any affiliate or related entity of Employer) that has
caused or is causing material harm to Employer (or any affiliate or related entity of Employer); or 

        (iv)  Employee's
material breach of any of the terms of this Agreement or any other obligation that Employee owes to Employer (or any affiliate or related entity of
Employer), including a material breach of trust or fiduciary duty or a material breach of any proprietary rights and inventions or confidentiality agreement between Employer and Employee (or between
Employee and any affiliate or related entity of Employer)(as such agreements may be adopted or amended from time to time by Employer and Employee). 

        (d)   By
mutual agreement between Employer and Employee; 

        (e)   The
date when Employee is declared legally incompetent under the laws of the State of California, or if Employee has a mental or physical condition that can reasonably
be expected to prevent Employee from carrying out his essential duties and obligations under this Agreement for a period of greater than six months (any such condition an "Incapacitating Condition"),
notwithstanding Employer's reasonable accommodations (to the extent required by law); 

        (f)    Employer
may terminate Employee under this Agreement at will (and without Cause) upon written notice at any time. Unless otherwise provided in such notice, such
termination shall be effective immediately upon providing written notice to Employee; or 

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        (g)   Employee
may terminate his employment under this Agreement for Good Reason upon providing Employer at least 30 days prior written notice of such termination
stating the basis on which Employee has determined that he has Good Reason to terminate his employment; provided that Employer shall have a reasonable time after receiving such notice to cure any
event that would constitute Good Reason for Employee to terminate his employment (provided such event is curable) and Employee may not terminate his employment for Good Reason on the basis of any such
event that is cured within a reasonable time. "Good Reason" shall mean: 

        (i)    the
assignment to Employee of duties materially inconsistent with, or a substantial reduction or alteration in, the authority, duties or responsibilities of Employee as
set forth in this Agreement or Exhibit A, without Employee's prior written consent; 

        (ii)   a
material breach by Employer of this Agreement, including a reduction by Employer of Employee's Base Salary, without Employee's prior written consent; 

        Good
Reason does not include the expiration of the term of this Agreement on October 1, 2009. 

        2.3   Except
as set forth in Section 4, in the event that Employee's employment is terminated pursuant to Section 2.2(a), 2.2(b), 2.2(c), 2.2(d) or 2.2(e)
herein, neither Employer nor Employee shall have any remaining duties or obligations under this Agreement, except that Employer shall pay to Employee, or his legal representatives, on the date of
termination of employment (the "Termination Date") or, with respect to reimbursement for expenses, as promptly as practical after the Termination Date, the following: 

        (a)   Such
compensation as is due pursuant to Section 3.1 (a) prorated through the Termination Date; 

        (b)   Any
expense reimbursements due and owing to Employee for reasonable and necessary business and entertainment expenses of Employer incurred by Employee prior to the
Termination Date; and 

        (c)   The
dollar value of all accrued and unused paid time off, including vacation time, that Employee is entitled to through the Termination Date 

        2.4   Except
as set forth in Section 4, in the event that Employee's employment is terminated pursuant to Section 2.2(f) or 2.2(g), neither Employer nor Employee
shall have any remaining duties or obligations under this Agreement, except that Employer shall pay to Employee, or his representatives, (i) the amounts set forth in Section 2.3 at the
times set forth in Section 2.3 and (ii) the following (provided that payments for health insurance coverage shall be made to an insurance provider), subject to Employee signing and
delivering to Employer the Waiver and Release Agreement required pursuant to Section 2.6: 

        (a)   An
additional 12 month's worth of Base Salary to be paid proportionally over the 12 month period of time after Employee signs and delivers to Employer the
Waiver and Release Agreement required pursuant to Section 2.6; and 

        (b)   Premiums
for continuation of Employee's health insurance benefit; under Employer's group health insurance plan, for the 12 month period succeeding the Termination
Date (with such health insurance coverage to be at a level and quality equivalent to the health insurance coverage provided by Employer to Employee immediately prior to the Termination Date,
"Equivalent Coverage"). Employer agrees to transmit following the Termination Date a request (and to join in such request) from Employee to Employer's then group health insurance carrier seeking
approval to maintain Employee's coverage for such period under Employer's group plan as though Employee were still employed and without reference to COBRA; provided that i) Employer makes no
representation concerning any future health insurance carrier's willingness to consent to such additional coverage; ii) Employer undertakes no obligation to secure such consent. In the event 

3

 

that
such consent is not forthcoming, then Employee's continuation coverage shall be subject to COBRA. Employer shall pay such premiums only so long as (during said 12 month period) Employee
remains eligible for such Equivalent Coverage; 

        (c)   The
payments set forth in Sections 2.4 (a) and (b) above are referred to herein collectively as the "Severance Payments" and each as a "Severance
Payment." 

        2.5   Employee
understands and agrees that he shall be exclusively liable for the payment of all taxes that are due, if any, as a result of his actual or constructive receipt
of the Severance Payments provided for in this Agreement, including, but not limited to, any taxes and/or penalties resulting from a determination that any portion of the Severance Payments are
taxable as deferred compensation pursuant to Internal Revenue Code §409A and implementing regulations. Employee agrees fully to indemnify and hold Company harmless for payment of
Employee's tax obligations or related penalties as may be required by any federal, state or local taxing authority, at any time, as a result of the actual or constructive receipt of the compensation
provided for in this Agreement. 

        2.6   As
a condition precedent of Employee or his estate receiving any Severance Payment from Employer, whether in a lump sum payment or a string of payments or in the form of
payment of benefits, Employee or his estate shall, in consideration for payment of such amount or benefit, sign and deliver to Employer (against the execution and delivery of the same by the other
parties thereto) the form of Waiver and Release Agreement attached hereto as Exhibit B. Such Waiver and Release Agreement will not be construed
to include any release of any indemnification rights Employee may have against Employer pursuant to Employer's Articles of Incorporation or bylaws, any indemnification agreement or California Labor
Code Section 2800. 

        2.7   This
Agreement shall not be terminated by Employer merging with or otherwise being acquired by another entity, whether or not Employer is the surviving entity, or by
Employer transferring of all or substantially all of its assets (any such event, an "Acquisition"). 

        2.8   In
the event of any Acquisition, the surviving entity or transferee, as the case may be, shall be bound by and shall have the benefits of this Agreement. 

3.     Compensation.  

        3.1   As
the total consideration for Employee's services rendered hereunder, Employee shall be entitled to the following during the period that Employee is employed hereunder: 

        (a)   A
base salary of $242,891.22 per year ("Base Salary"), payable in equal installments bi-weekly on those days when Employer normally pays its employees. 

        (b)   An
Incentive Bonus in an amount up to 20% of annual base salary paid quarterly based on mutually agreed Management By Objectives being achieved. The bonus will be
prorated if all MBOs are not attained, but not eligible if at least 50% of the MBOs are obtained. The Quarterly Incentive Bonus will be paid, if earned, within thirty (30) days of each calendar
year quarter end. 

        (c)   Employee
will receive an automobile allowance of $500.00 per month. 

        (d)   Stock
Options in Employer will be granted and may be exercised in accordance with company guidelines. Currently, stock awards are done each year in July. 

        (e)   Employee
shall accrue vacation time during the period he is employed hereunder at the rate of 6.15 hours per bi-weekly pay period beginning upon
completion of 90 days of employment with Employer. Vacation accrual shall be subject to any vacation benefit accrual cap established by Employer (i.e., once the cap has been reached,
further accrual shall cease until Employee uses some or all of her accrued time to fall below the accrual cap). Employee shall be eligible to take 

4

 

paid
vacation after six (6) months of employment. Thereafter, the timing of Employee's vacation shall be governed by Employer's usual policies applicable to all employees; 

        (f)    Employee
is entitled to participate in any policies or plans regarding benefits of employment, including pension, profit sharing, group health, disability insurance and
other employee welfare benefit plans now existing or hereafter established to the extent that Employee is eligible under the terms of such plans. Despite the foregoing, Employee is entitled to
participate in any such plan or program only if the executive officers of Employer generally are eligible to participate in such plan or program. Employer may, in its sole discretion and from time to
time, establish additional senior management benefit programs as it deems them appropriate. Employee understands that any such plans may be modified or eliminated in Employer's sole discretion in
accordance with applicable law; and 

        (g)   Such
other benefits as the Board of Directors of Employer, in its sole discretion, may from time to time provide. 

        3.2   During
the period that Employee is employed hereunder, Employer shall reimburse Employee, under the company's expense reimbursement policy, for reasonable and necessary
business and entertainment expenses incurred by Employee on behalf of Employer in connection with the performance of Employee's duties hereunder. 

        3.3   Employer
will pay cost of living increase, at the time of the Employee's annual review. 

        3.4   Employer
shall have the right to deduct from the compensation due to Employee hereunder any and all sums required for social security and withholding taxes and for any
other federal, state, or local tax or charge which may be in effect or hereafter enacted or required as a charge on the compensation of Employee. 

        3.5   Employer
shall maintain Directors and Officers insurance, and such coverage shall be substantially similar to coverage provided by Employer's affiliates and related
entities. 

4.     Non-Competition.  

        4.1   At
all times during Employee's employment hereunder, and, if Employee's employment is terminated pursuant to Section 2.2(f) or 2.2(g) during the 12 month
period of time after such termination (the "Post-Termination Payment Period") and in consideration for any and all payments and benefits provided to Employee pursuant to this Agreement
during the Post-Termination Payment Period, Employee shall not, directly or indirectly, engage or participate in, prepare or set up, assist or have any interest in any person, partnership,
corporation, limited liability company, firm, association, or other business organization, entity or enterprise (whether as an employee, officer, director, member, agent, security holder, creditor,
consultant or otherwise) that engages in any activity in those geographic areas where Employer conducts the Business, which activity is the same as, similar to, or directly competitive with any
activity engaged in by Employer (REIT, mortgage banking and wholesale lending operations for sub prime and Alt-A residential loans or such other business as Employer may engage in).
Notwithstanding the foregoing, Employee may elect at any point during the Post-Termination Payment Period to forego any future remaining payments or benefits payable under
Section 2.4, in which case the limitations set forth in this Section 4.1 shall terminate at the time of such election. 

        4.2   Nothing
contained in Section 4 shall be deemed to preclude Employee from purchasing or owning, directly or beneficially, as a passive investment, less than five
percent of any class of publicly traded securities of any entity so long as Employee does not actively participate in or control, directly or indirectly, any investment or other decisions with respect
to such entity. 

5

 

  5.     No Compensation from Related Entities.  

        Without prior written approval from Employer's Board of Directors, Employee shall not directly or indirectly receive compensation from any company with whom
Employer or any of its affiliates (as "affiliate" is defined in Rule 405 promulgated under the Securities Act of 1933) has any financial, business or affiliated relationship. 

6.     Confidentiality; Non-Solicitation and Proprietary Rights.  

        Concurrently with signing this Agreement, Employee and Employer will sign a Proprietary Rights and Inventions Agreement in the form attached hereto as  Exhibit C (the "Proprietary Rights and Inventions Agreement"). 

7.     Copies of Agreement.  

        Employee authorizes Employer to send a copy of the Proprietary Rights and Inventions Agreement to any and all future employers which Employee may have, and to any
and all persons, firms, and corporations, with whom Employee may become affiliated in a business or commercial enterprise, and to inform any and all such employers, persons, firms or corporations that
Employer intends to exercise its legal rights should Employee breach the terms of the Proprietary Rights and Inventions Agreement or should another party induce a breach of that agreement on
Employee's part. 

8.     Severable Provisions.  

        The provisions of this Agreement are severable and if any one or more provisions is determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions, and any partially unenforceable provisions to the extent enforceable, shall nevertheless be binding and enforceable. 

9.     Arbitration.  

        To the fullest extent allowed by law, any controversy, claim or dispute between Employee and Employer (or any of its stockholders, directors, officers, employees,
affiliates, agents, successors or assigns) relating to or arising out of Employee's employment or the cessation of that employment will be submitted to final and binding arbitration in Orange County,
California for determination in accordance with the American Arbitration Association's ("AAA") National Rules for the Resolution of Employment Disputes, as the exclusive remedy for such controversy,
claim or dispute. In any such arbitration, the parties may conduct discovery to the same extent as would be permitted in a court of law. The arbitrator shall issue a written decision, and shall have
full authority to award all remedies which would be available in court. The arbitrator shall be required to determine all issues in accordance with existing case law and the statutory laws of the
State of California. Employer shall pay the arbitrator's fees and any AAA administrative expenses. In the event Employee files a claim to collect unpaid payments or benefits payable under
Section 2.4, the prevailing party shall be awarded reasonable attorneys' fees and costs. Any judgment upon the award rendered by, the arbitrator(s) may be entered in any court having
jurisdiction thereof. Possible disputes covered by the above include unpaid wages, breach of contract, torts, violation of public policy, discrimination, harassment, or any other employment-related
claims under laws including Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act, the Age Discrimination in Employment Act, the California Fair Employment and Housing Act,
the California Labor Code, and any other federal or state constitutional provisions, statutes or laws relating to an employee's relationship with his employer. However, claims for workers'
compensation benefits and unemployment insurance (or any other claims where mandatory arbitration is prohibited by law) are not covered by this arbitration agreement, and such claims may be presented
to the appropriate court or government agency. BY AGREEING TO THIS MUTUAL AND BINDING ARBITRATION PROVISION, BOTH EMPLOYEE AND EMPLOYER GIVE UP ALL 

6

 

RIGHTS
TO TRIAL BY JURY. This arbitration policy is to be construed as broadly as is permissible under relevant law. EMPLOYER AND EMPLOYEE HAVE READ THIS SECTION 9 AND IRREVOCABLY AGREE TO
ARBITRATE ANY DISPUTE IDENTIFIED ABOVE. 

	

 	
 	

/s/ rjj
 Employer's Initials	
 	

/s/ trt
 Employee's Initials	
 	

 

10.   Injunctive Relief.  

        The parties hereto agree that any breach or threatened breach of Section 5 of this Agreement or the Proprietary Rights and Inventions Agreement will cause
substantial and irreparable damage to Employer in an amount and of a character difficult to ascertain. Accordingly, to prevent any such breach or threatened breach, and in addition to any other relief
to which Employer may otherwise be entitled, Employer will be entitled to immediate temporary, preliminary and permanent injunctive relief through appropriate legal proceedings in any arbitration,
without proof of actual damages that have been incurred or may be incurred by Employer with respect to such breach or threatened breach. Employee expressly agrees that Employer will not be required to
post any bond or other security as a condition to obtaining any injunctive relief pursuant to this Section 11, and Employee expressly waives any right to the contrary. Employee agrees that this
Section 11 is without prejudice to the rights of the parties to compel arbitration pursuant to Section 10. 

11.   Entire Agreement.  

        This Agreement and the Exhibits attached hereto contain the entire agreement of the parties relating to the subject matter hereof, and the parties hereto have
made no agreements, representations or warranties relating to the subject matter of this Agreement that are not set forth otherwise herein or the Exhibits attached hereto. This Agreement and its
attachments supersede any and all prior agreements, written or oral, with Employer relating to Employee's employment with Employer and any other subject matter of this Agreement. Any such prior
agreements are hereby terminated and of no further effect and Employee, by the execution hereof, agrees that any compensation provided for under any such prior agreement is specifically superseded and
replaced by the provision of this Agreement; subject to the following (i) this Agreement is not intended to supersede, cancel or replace any stock option or dividend equivalent right payments
that Employee may have or otherwise be entitled to
receive. The parties hereto agree that in no event shall an oral modification of this Agreement be enforceable or valid. 

12.   Governing Law.  

        This Agreement is and shall be governed and construed in accordance with the laws of the State of California, regardless of any laws on choice of law or conflicts
of law of any jurisdiction. 

13.   Notice.  

        All notices hereunder must be in writing and shall be sufficiently given for all purposes hereunder if properly addressed and delivered personally by documented
overnight delivery service, by certified or registered mail, return receipt requested, or by facsimile or other electronic transmission service at the address or facsimile number, as the case may be,
set forth below. Any notice given personally or by documented overnight delivery service is effective upon receipt. Any notice given by registered mail is effective upon receipt; to the extent such
receipt is confirmed by return receipt. Any notice given by facsimile transmission is effective upon receipt, to the extent that receipt is confirmed, either verbally or in writing by the recipient.
Any notice which is refused, unclaimed or undeliverable because of an 

7

 

act
or omission of the party to be notified, if such notice was correctly addressed to the party to be notified, shall be deemed communicated as of the first date that said notice was refused,
unclaimed or deemed undeliverable by the postal authorities, or overnight delivery service. 

	If to Employer:	Impac Mortgage Holdings, Inc.

19500 Jamboree Road, Building 2

Irvine, California 92612

Telephone: (949) 475-3600

Facsimile: (949) 475-3969

Attention: Ronald Morrison, Esq., General Counsel
	 	 
	If to Employee:	Todd Taylor

14.   Amendments and Waivers.  

        This Agreement may not be amended, modified, superseded, canceled, or any terms waived, except by written instrument signed by both parties, or in the case of
waiver, by the party to be charged. 

15.   Successor and Assigns.  

        This Agreement is not assignable by Employee, nor by Employer except to an affiliated or successor entity. This Agreement is binding on the parties' heirs,
executors, administrators, other legal representatives, successors, and, to the extent assignable, their assigns. 

16.   Representations.  

        The person executing this Agreement on behalf of Employer hereby represents and warrants on behalf of himself and Employer that he is authorized to represent and
bind Employer. Employee specifically represents and warrants to Employer that he is not now under any contractual or quasi-contractual
obligations that is inconsistent or in conflict with this Agreement or that would prevent, limit or impair Employee's performance of his obligations under this Agreement, (b) he has had the
opportunity to be represented by legal counsel of his choosing in preparing, negotiating, executing and delivering this Agreement; and (c) fully understands the terms and provisions of this
Agreement. 

17.   Counterparts; Facsimile Signatures.  

        This Agreement may be executed in any number of counterparts, each of which shall be deemed an original for all purposes. This Agreement may be executed by a
party's signature transmitted by facsimile ("fax"), and copies of this Agreement executed and delivered by means of faxed signatures shall have the same force and effect as copies hereof executed and
delivered with original signatures. All parties hereto may rely upon faxed signatures as if such signatures were originals. Any party executing and delivering this Agreement by fax shall promptly
thereafter deliver a counterpart signature page of this Agreement containing said party's original signature. All parties hereto agree that a faxed signature page may be introduced into evidence in
any proceeding arising out of or related to this Agreement as if it were an original signature page. 

18.   Rules of Construction.  

        This Agreement has been negotiated by the parties and is to be interpreted according to its fair meaning as if the parties had prepared it together and not
strictly for or against any party. References in this Agreement to "Sections" refer to Sections of this Agreement, unless the context expressly indicates otherwise. References to "provisions" of this
Agreement refer to the terms, conditions, restrictions and promises contained in this Agreement. References in this Agreement to laws and 

8

 

regulations
refer to such laws and regulations as in effect on this date and to the corresponding provisions, if any, of any successor law or regulation. At each place in this Agreement where the
context so requires, the masculine, feminine or neuter gender includes the others and the singular or plural number includes the other. Forms of the verb "including" mean "including without
limitation" unless the context expressly indicates otherwise. "Or" is inclusive and includes "and" unless the context expressly indicates otherwise. The introductory headings at the beginning of
Sections of this Agreement are solely for the convenience of the parties and do not affect any provision of this Agreement. 

        IN
WITNESS WHEREOF, this Agreement is executed as of the day and year first above written. 

	 	 	"EMPLOYER"
	

    	
 	

Impac Mortgage Holdings, Inc., a Maryland corporation
	    	 	 	 	 
	 	 	By:	/s/  RICHARD J. JOHNSON      

	 	 	 	Name:	Richard J. Johnson

	 	 	 	Title:	Executive Vice President, COO

	

    	
 	

"EMPLOYEE"
	 	 	 	 	 
	 	 	By:	/s/  TODD R. TAYLOR      

	 	 	 	Name:	Todd R. Taylor

	 	 	 	Title:	Senior Vice President, CAO

9

 

 

 
 

EXHIBIT A
  
    JOB DESCRIPTION AND RELATED ENTITIES    
    

Senior Vice President, Chief Accounting Officer ("CAO"), Impac Mortgage Holdings, Inc.

        Oversee
the accounting and financial reporting of the Organization in support of policies, goals and objectives established by the Board of Directors of Employer, and the CEO, President
and CFO of Impac Mortgage Holdings, Inc. For purposes of this Exhibit A, "Organization" means Employer and any affiliates or related entities of Employer for whom Employee is requested
to provide services pursuant to the Employment Agreement by and between Employer and Employee dated as of October 1, 2007 (the "Agreement"). 

        Provide
senior financial accounting oversight for the Organization and assume responsibility for its development, growth and success. Participate in financial management of Employer,
either directly or through supervision of others. 

        Manage
and supervise accounting and financial reporting staff members that report to the CAO. 

        Major
Responsibilities include: 

	•
	Regularly
report to the CEO, President and CFO of Impac Mortgage Holdings, Inc. ("IMH") and the Board of Directors of IMH on the monthly and quarterly financial
performance of the Company. Prepare books and records in accordance with Generally Accepted Accounting Principals ("GAAP"). Review and explain budget variances. Review financial records and make
recommendations
on financial performance objectives of the Company. Review critical accounting policies and critical transactions to ensure that the Company is employing the correct accounting treatment for
complicated transactions;

	•
	Responsible
for reviewing the Company's liquidity and credit facilities to ensure that the Company maintains sufficient liquidity and credit facilities to manage the growth
of loan acquisitions and originations.;

	•
	Responsible
for managing and overseeing the daily operations of the Company's internal audit department and their efforts to keep the Company SOX 404 compliant.

	•
	Responsible
for developing and maintaining Budgets and Monthly forecasts of earnings and budget variances that include the calculation of taxable income.; and

	•
	Member
of Employer's Executive Committee, Asset/Liability Committee ("ALCO"), Disclosure Committee, IWLG Credit Committee, HR committee . 

10

 

        Employee
acknowledges, understands and agrees that Employee will be requested by Employer to devote some or all of Employee's time and effort during the term of employment pursuant to
the Agreement (and consistent with the above job descriptions) to the businesses of Employer's affiliates or related entities pursuant to certain agreements between and among Employer and such
affiliates or related entities. Such affiliates and related entities include, but are not limited to, the following: Impac Mortgage Holdings, Inc., Impac Commercial Capital Corporation., Impac
Warehouse Lending Group, Inc., IMH Assets Corp., Impac Lending Group, Impac Secured Assets Corp., Impac Mortgage Acceptance Corp., and Impac Foundation. 

        Employee
further understands and acknowledges that, pursuant to the Agreement, Employee may be directed by Employer to provide services consistent with the above job descriptions to
additional real estate investment trusts or other entities which Employer establishes or with which Employer affiliates
or becomes related and for which there exists an agreement with Employer or any of the above entities to provide such services. 

        Employee
understands and acknowledges that Employee's obligations under the Agreement, including Employee's duties under Section 4 thereof and the Proprietary Rights and
Inventions Agreement entered into pursuant to Section 6 thereof, shall apply and extend to Employee's knowledge of the business of Employer's affiliates or related entities and any trade secret
or other confidential or proprietary information relating to same. 

11

 

 

 
 

EXHIBIT B
  
    WAIVER AND RELEASE AGREEMENT    
    

        For full and valuable consideration, including, but not limited to, severance payments made and to be made by Impac Mortgage Holdings, Inc. and any
affiliate or related entity of Impac Mortgage Holdings, Inc. (collectively, "Employer") to Todd Taylor ("Employee") pursuant to the Employment Agreement between Employer and Employee dated as
of October 1, 2007 (the "Employment Agreement"), Employee, on the one part, and Employer on the other part, hereby enter into this Waiver and Release Agreement ("Waiver"), and each agrees to
waive and release the other and, as the case may be, the other's stockholders, directors, officers, employees, affiliates, agents, successors and assigns, if any, from all known and unknown claims,
agreements or complaints related to or arising under Employee's employment with Employer, including, but not limited to, any claim arising out of Employee's termination, any express or implied
agreement between Employee and Employer (other than each party's respective rights and obligations under Sections 2.3, 2.4 and 4.1 of the Employment Agreement, and the Proprietary Rights and
Inventions Agreement), and any other federal or state constitutional provisions, statutes or laws relating to an employee's relationship with his employer, including, but not limited to, Title VII of
the Civil Rights Act of 1964, the Employee Retirement Income Security Act, the Age Discrimination in Employment Act, the Americans With Disabilities Act, the California Fair Employment and Housing
Act, and the California Labor Code. 

        This
Waiver shall not include a waiver of any of the following: (i) any right to defense and/or indemnification that Employee may have under California Labor Code
section 2802, or under any defense and indemnification policy or agreement; (ii) any claim for breach of any pension, 401k, deferred compensation or stock option plan of Employer; or
(iii) any claim that Employee may have against any officer, director, employee, or agent of Employer or Guarantor for defamation or intentional interference with prospective employment or
business advantage or (iv) any rights Employee may have as a shareholder of Employer. 

        This
Waiver includes a waiver of any rights the parties may have under Section 1542 of the California Civil Code, which states: 

        "A
general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by his must have
materially affected his settlement with the debtor." 

        Employee's
Waiver is conditioned upon Employer and Guarantor's performance of all of their severance obligations pursuant to Sections 2.3 and 2.4 of the Employment Agreement. In
the event that Employer materially breaches its severance obligations under the Employment Agreement, then Employee shall be entitled to pursue any claims as though this Waiver did not exist, and the
statute of limitations for any such claims shall be deemed to have been tolled during the period from the date of Employee's termination through the date Employer breached it obligations. 

        Employer's
Waiver is conditioned upon Employee's performance of all of his obligations pursuant to Section 4.1 of the Employment Agreement. In the event that Employee materially
breaches his non-compete obligations under the Employment Agreement, then Employer shall be entitled to pursue any claims as though this Waiver did not exist, and the statute of
limitations for any such claims shall be deemed to have been tolled during the period from the date of Employee's termination through the date Employee breached his obligations. The parties to this
Waiver each acknowledge that each may hereafter discover facts different from or in addition to those now known or believed to be true with respect to the claims, suits, rights, actions, complaints,
agreements, contracts, causes of action, and liabilities of any nature whatsoever that are the subject of the above release, and the parties expressly agree that this Waiver shall be and remain
effective in all respects regardless of such additional or different facts. 

1

 

        Employee
is advised as follows: (i) Employee should consult an attorney regarding this Waiver before executing it; (ii) Employee has 21 days in which to consider
this Waiver and whether Employee will enter into it; (iii) this Waiver does not waive rights or claims that may arise after it is executed; and (iv) at anytime within seven days after
executing this Waiver, Employee may revoke this Waiver. This Waiver shall not become effective or enforceable until the seven day revocation period set forth herein has passed. 

        Capitalized
terms not otherwise defined herein shall have the meanings set forth in the Employment Agreement. 

	Dated:	    
	 	 	 
	 	 	 	By:	/s/  TODD R. TAYLOR      

	 	 	 	 	Todd R. Taylor

	 	 	 	 	Senior Vice President, CAO

	 	 	 	 	 
	

Dated:	

    
	
 	

IMPAC MORTGAGE HOLDINGS, INC.
	 	 	 	 	 
	 	 	 	By:	/s/  RICHARD J. JOHNSON      

	 	 	 	Print Name:	Richard J. Johnson

	 	 	 	Title:	Executive Vice President, COO

2

 

 

 
 

EXHIBIT C
  
    PROPRIETARY RIGHTS AND INVENTIONS AGREEMENT    
    

        In consideration of my employment by Impac Mortgage Holdings, Inc., a Maryland corporation (the "Company"), and the compensation I receive from the
Company, I agree to certain restrictions placed by the Company on my use and development of information and technology, as more fully set out below. 

        1.    Proprietary Information.    I understand that the Company possesses and will possess Proprietary Information
which is important to its business. For purposes of this Agreement, "Proprietary Information" is information that was or will be developed, created, or discovered by or on behalf of the Company or any
of its affiliates or related entities, or which became or will become known by, or was or is conveyed to the Company, which has commercial value in the Company's business or the business of any of the
Company's affiliates or related entities, unless (i) the information is or becomes publicly known through lawful means; (ii) the information was rightfully in my possession or part of my
general knowledge prior to my employment by the Company as specifically identified and disclosed by me in Exhibit A attached hereto; or (iii) the information is disclosed to me without
confidential or proprietary restriction by a third party who rightfully possesses the information (without confidential or proprietary restriction) and who did not learn of it directly from the
Company or any of its affiliates or related entities. 

        Proprietary
Information includes information (whether conveyed orally or in writing) relating to (i) client/customer lists, vendor lists or other lists or compilations containing
client, customer or vendor information; (ii) information about investment techniques or strategies, investment research or analysis, business techniques or strategies, processes, costs,
profits, markets, marketing plans, forecasts, sales or commissions; (iii) plans for new investment techniques and strategies; (iv) the compensation, performance and terms of employment
of other employees; (v) all other information that has been or will be given to me in confidence by the Company (or any affiliate or related entity of the Company); (vi) software in
various stages of development, and any designs, drawings, schematics, specifications, techniques, models, data, source code, algorithms, object code, documentation, diagrams, flow charts, research
development, processes and procedures relating to any software; (vii) any documents, books, papers, drawings, schematics, models, sketches, computer programs, databases or other data, including
electronic data recorded or retrieved by any means, that contain any Proprietary Information; and (viii) any information described above which the Company or any of its affiliates or related
entities obtains from another party and which the Company or any of its affiliates or related entities treats as proprietary or designates as Proprietary Information. 

        2.    Company Materials.    I understand that the Company and its affiliates and related entities possess or will
possess "Company Materials" which are important to their respective businesses. For purposes of this Agreement, "Company Materials" are documents or other media or tangible items that contain or
embody Proprietary Information or any other information concerning the business, operations or plans of the Company or any of its affiliates or related entities, whether such documents have been
prepared by me or by others. "Company Materials" include charts, graphs, notebooks, customer lists, computer software, media or printouts, sound recordings and other printed, typewritten or
handwritten documents, as well as financial models and the like. 

        3.    Intellectual Property.

        3.1   All
Proprietary Information and all right, title and interest in and to any patents, patent rights, copyrights, trademark rights, mask work rights, trade secret rights,
and all other intellectual and industrial property and proprietary rights that currently exist or may exist in the future anywhere in the world (collectively "Rights") in connection therewith shall be
the sole property of the Company or its affiliates or related entities, as the case may be. I hereby assign to the Company any Rights I may have or acquire in such Proprietary Information. At all
times, both 

1

 

during
my employment with the Company and after its termination, I will keep in confidence and trust and will not use or disclose any Proprietary Information or anything relating to it without the
prior written consent of an officer of the Company except as may be necessary and appropriate in the ordinary course of performing my duties to the Company or as may be required by law or legal
procedure. The disclosure restrictions of this Agreement shall not apply to any information that I can document is generally known to the public through no fault of mine. Nothing contained herein will
prohibit me from disclosing to anyone the amount my wages. 

        3.2   All
Company Materials shall be the sole property of the Company. I agree that during my employment with the Company, I will not remove any Company Materials from the
business premises of the Company or deliver any Company Materials to any person or entity outside the Company, except as I am required to do in connection with performing the duties of my employment.
I further agree that, immediately upon the termination of my employment by me or by the Company for any reason, or for no reason, or during my employment if so requested by the Company, I will return
all Company Materials, apparatus, equipment and other physical property, and any reproduction of such property, excepting only (i) my personal copies of records relating to my compensation;
(ii) my personal copies of contact information and materials I had before I became an employee and (ii) my copy of this Agreement. 

        3.3   I
agree that all "Inventions" (which term includes patentable or non-patentable inventions, original works of authorship, derivative works, trade secrets,
trademarks, copyrights, service marks, discoveries, patents, technology, algorithms, computer software, application programming interfaces, protocols, formulas, compositions, ideas, designs,
processes, techniques, know-how, data and all improvements, rights and claims related to the foregoing), which
I make, conceive, reduce to practice or develop (in whole or in part, either alone or jointly with others) during my employment, shall be the sole property of the Company to the maximum extent
permitted by Section 2870 of the California Labor Code. I hereby assign, without further consideration, all such Inventions to the Company (free and clear of all liens and encumbrances), and
the Company shall be the sole owner of all Rights in connection therewith. No assignment in this Agreement shall extend to Inventions, the assignment of which is prohibited by Labor Code
Section 2870, which states: 

Any
provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or his rights in an invention to his or his employer shall not apply to an
invention that the employee developed entirely on his or his own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either: 

	1.
	Relate
at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer.

	2.
	Result
from any work performed by the employee for the employer. 

        I
acknowledge that all original works of authorship which are made by me (in whole or in part, either alone or jointly with others) within the scope of my employment and which are
protect able by copyright are "works made for hire," as defined in the United States Copyright Act (17 USCA, Section 101). 1 will not disclose Inventions covered by this Section 3.3 to
any person outside the Company, unless I am requested to do so by management personnel of the Company. 

        3.4   I
agree to disclose promptly to the Company all Inventions and relevant records, which records will remain the sole property of the Company. I further agree that all
information and records pertaining to any idea, process, trademark, service mark, invention, technology, computer program, original work or authorship, design, formula, discovery, patent, or copyright
that I do not believe to be an Invention, but is conceived, developed, or reduced to practice by me (in whole or 

2

 

in
part, either alone or jointly with others) during my employment, shall be promptly disclosed to the Company (such disclosure to be received in confidence). I will also disclose to the Company all
Inventions conceived, reduced to practice, used, sold, exploited or developed by me (in whole or in part, either alone or jointly with others) within one (1) year of the termination of my
employment with the Company ("Presumed Inventions"); such disclosures shall be received by the Company in confidence, to the extent they are not assigned to the Company in Section 3.3, and do
not extend such assignment. Because of the difficulty of establishing when any Presumed Invention is first conceived or developed by me, or whether it results from access to Proprietary Information or
the Company's equipment, facilities, and data, I agree that all Presumed Inventions and all Rights associated therewith shall be presumed to be Inventions subject to assignment under
Section 3.3. I can rebut this presumption if I prove that a Presumed Invention is not an Invention subject to assignment under Section 3.3. 

        3.5   I
agree to perform, during and after my employment, all acts deemed necessary or desirable by the Company to permit and assist it, at the Company's expense, in
evidencing, perfecting, obtaining, maintaining, defending and enforcing Rights or my assignment with respect to such Inventions in any and all countries. Should the Company be unable to secure my
signature on any document necessary to apply for, prosecute, obtain, enforce or defend any Rights relating to any assigned Invention, whether due to my mental or physical incapacity or any other
cause, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents, as my agents and attorneys-in-fact, with full power of substitution,
to act for and in my behalf and instead of me, to execute and file any documents and to do all other lawfully permitted acts to further the above purposes with the same legal force and effect as if
executed by me. 

        3.6   Any
assignment of copyright hereunder (and any ownership of a copyright as a work made for hire) includes all rights of paternity, integrity, disclosure and withdrawal
and any other rights that may be known as or referred to as "moral rights" (collectively "Moral Rights"). To the extent such Moral Rights cannot be assigned under applicable law and to the extent the
following is allowed by the laws in the various countries where Moral Rights exist, I hereby waive such Moral Rights and consent to any action of the Company that would violate such Moral Rights in
the absence of such waiver and consent. I will confirm any such waivers and consents from time to time as requested by the Company. 

        3.7   Attached
hereto as Exhibit 1 is a complete list of all existing Inventions to which I claim personal ownership of as of the date of this Agreement and that I
desire to specifically clarify are not subject to this Agreement, and I acknowledge and agree that such list is complete. If no such list is attached to this Agreement, I represent that I have no such
Inventions at the time of signing this Agreement. 

        3.8   I
understand that nothing in this Agreement is intended to expand the scope of protection provided me by Sections 2870 through 2872 of the California Labor Code. 

        4.    Prior Actions and Knowledge.    I represent and warrant that from the time of my first contact or communication
with the Company, I have held in strict confidence all Proprietary Information and have not (i) disclosed any Proprietary Information or delivered any Company Materials to anyone outside of the
Company or any affiliate or related entity of the Company, or (ii) used, copied, published, or summarized any Proprietary Information or removed any Company Materials from the business premises
of the Company, except to the extent necessary to carry out my responsibilities as an employee of the Company. 

        5.    Non-Solicitation of Employees.    I agree that for a period of twelve months following the
termination of my employment with the Company, I will not, on behalf of myself or any other person or entity, solicit the services of any person who was employed by the Company or any affiliate or
related entity of the Company on the date of my termination of employment. 

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        6.    No Conflict with Obligations to Third Parties.    I represent that my performance of all the terms of this
Agreement will not breach any agreement to keep in confidence proprietary or confidential information acquired by me in confidence or in trust prior to my employment with the Company. I have not
entered into, and I agree I will not enter into, any agreement either written or oral in conflict herewith or in conflict with my employment with the Company. 

        7.    Remedies.    I recognize that nothing in this Agreement is intended to limit any remedy of the Company under the
California Uniform Trade Secrets Act. I recognize that my violation of this Agreement could cause the Company irreparable harm, the amount of which may be extremely difficult to estimate, making any
remedy at law or in damages inadequate. Therefore, I agree that the Company shall have the right to apply to any court of competent jurisdiction for an order restraining any breach or threatened
breach of this Agreement and for any other relief the Company deems appropriate. This right shall be in addition to any other remedy available to the Company. 

        8.    Survival.    I agree that my obligations under Sections 3.1 through 3.6, 5 and 6 shall continue in effect
after termination of my employment, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary on my part, and that the Company is entitled to
communicate my obligations under this Agreement to any future employer or potential employer of mine. 

        9.    Controlling Law.    This Agreement is and shall be governed and construed in accordance with the laws of the
State of California, regardless of any laws on choice of law or conflicts of law of any jurisdiction. 

        10.    Severable Provisions.    The provisions of this Agreement are severable and if any one or more provisions is
determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions, and any partially unenforceable provisions to the extent enforceable, shall nevertheless be binding
and enforceable. 

        11.    Successors and Assigns.    This Agreement shall be effective as of the date I execute this Agreement and shall
be binding upon me, my heirs, executors, assigns, and administrators and shall inure to the benefit of the Company, its subsidiaries, successors and assigns. 

        12.    Counterparts; Facsimile Signatures.    This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original for all purposes. This Agreement may be executed by a party's signature transmitted by facsimile ("fax"), and copies of this Agreement executed and delivered by means
of faxed signatures shall have the same force and effect as copies hereof executed and delivered with original signatures. All parties hereto may rely upon faxed signatures as if such signatures were
originals. Any party executing and delivering this Agreement by fax shall promptly thereafter deliver a counterpart signature page of this Agreement containing said party's original signature. All
parties hereto agree that a faxed signature page may be introduced into evidence in any proceeding arising out of or related to this Agreement as if it were an original signature page. 

        13.    Rules of Construction.    This Agreement has been negotiated by the parties and is to be interpreted according
to its fair meaning as if the parties had prepared it together and not strictly for or against any party. References in this Agreement to "Sections" refer to Sections of this Agreement, unless the
context expressly indicates otherwise. References to "provisions" of this Agreement refer to the terms, conditions, restrictions and promises contained in this Agreement. References in this Agreement
to laws and regulations refer to such laws and regulations as in effect on this date and to the corresponding provisions, if any, of any successor law or regulation. At each place in this Agreement
where the context so requires, the masculine, feminine or neuter gender includes the others and the singular or plural number includes the other. Forms of the verb "including" mean "including without
limitation" unless the context expressly indicates otherwise. "Or" is inclusive and includes "and" unless the context expressly indicates otherwise. The introductory headings at the beginning of
Sections of this Agreement are solely for the convenience of the parties and do not affect any provision of this Agreement. 

        14.    Amendments and Waivers.    This Agreement may not be amended, modified, superseded, canceled, or any terms
waived, except by written instrument signed by both parties, or in the case of waiver, by the party to be charged. 

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        I
HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO
INDUCE ME TO SIGN THIS AGREEMENT OTHER THAN THE PROMISES AND REPRESENTATIONS EXPRESSLY STATED IN THIS AGREEMENT AND IN THE EMPLOYMENT AGREEMENT ENTERED INTO BETWEEN ME AND THE COMPANY CONCURRENTLY
HEREWITH. I HAVE COMPLETELY NOTED ON EXHIBIT 1 TO THIS AGREEMENT ANY PROPRIETARY INFORMATION AND INVENTIONS THAT I DESIRE TO EXCLUDE FROM THIS AGREEMENT. 

	Dated as of:	 	/s/  TODD R. TAYLOR      
 Todd R. Taylor
	

Accepted and Agreed to:
	

IMPAC MORTGAGE HOLDINGS, INC.,

a Maryland corporation
	

By:	

/s/  RICHARD J. JOHNSON      
	
 	

 
	

Name:	

Richard J. Johnson
	
 	

 
	

Title:	

Executive Vice President, COO
	
 	

 

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EXHIBIT 1
  
    EMPLOYEE'S DISCLOSURE    
    

Gentlemen: 

        1.    Except
for the information and ideas listed below that rightfully became part of my general knowledge prior to my first contact or communication with the Company or any
of its affiliates or related entities, I represent that I am not in the possession of and have no knowledge of any information that can be considered the Proprietary Information of Impac Mortgage
Holdings, Inc., a Maryland corporation (the "Company"), other than information disclosed by Company or any of its affiliates or related entities during my employment negotiations or my prior
employment with the Company or any of its affiliates or related entities, which I understand and agree is the Proprietary Information of Company or its affiliates or related entities, as the case may
be. 

	

	

        2.    Except
for the complete list of Inventions set forth below, I represent that I (in whole or in part, either alone or jointly with others) have not made, conceived,
developed or first reduced to practice any Inventions relevant to the subject matter of my employment with the Company prior to my employment with the Company or any of its affiliates or related
entities. 

	    
	 	No Inventions	 	 
	

    
	
 	

See below:	
 	

 
	

 	
 	

	

    
	
 	

Additional sheets attached

	 

	

 	

 Todd Taylor

1

 

 

 
 

AMENDMENT NO. 1 TO
  EMPLOYMENT AGREEMENT    
    

        THIS AMENDMENT NO. 1 TO THE EMPLOYMENT AGREEMENT is made effective as of February12, 2008 ("Effective Date"), by and between Impac Mortgage Holdings, Inc.,
a Maryland corporation ("Employer"), and Todd R. Taylor, an individual ("Employee") with reference to the following facts: 

 
 

RECITALS    
    

        WHEREAS, Employer and Employee entered into that certain Employment Agreement (the "Employment Agreement") dated as of October 1, 2007; 

        WHEREAS,
Employer has requested and Employee has agreed to assume additional duties and responsibilities as Employer's Interim Chief Financial Officer; 

        WHEREAS,
Employee and Employer desire to amend the Employment Agreement; 

 
 

AMENDMENT    
    

        NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, it is hereby agreed
by and between the parties hereto as follows: 

        Terms
not defined herein shall have the respective meanings as set forth in the Employment Agreement. 

Amendment No. 1  

        Section 1.1 shall be deleted in its entirety and replaced with the following: 

        1.1   Employer
hereby employs Employee and Employee hereby accepts such employment full-time (subject to those exceptions, if any, set forth below) on an interim
basis as Chief Financial Officer ("CFO") of Employer to perform the duties and functions associated with the position of Chief Financial Officer, including but not limited to the Job Duties set forth
in Exhibit "A," and to perform such other duties or functions as are reasonably required or as may be prescribed from time to time or as otherwise agreed. Employee shall render his services by and
subject to the instructions and under the direction of the Chief Executive Officer and/or such persons as the Board may reasonably designate. At the sole discretion of the Board, Employee may be
reassigned to the title and duties previously held by Employee as Chief Accounting Officer ("CAO"). 

Amendment No. 2  

        Section 3.1 (a) and (b) shall be deleted in their entirety and replaced with the following: 

        (a)   A
base salary of $280,000.00 per year ("Base Salary"), payable in equal installments semi-monthly on those days when Employer normally pays its employees. 

        (b)   An
Incentive Bonus in an amount up to 50% of annual base salary paid quarterly based on mutually agreed Management By Objectives being achieved. The bonus will be
prorated if all MBOs are not attained, but not eligible if at least 50% of the MBOs are not obtained. The Quarterly Incentive Bonus will be paid, if earned, within thirty (30) days of each
calendar year quarter end. 

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        IN
WITNESS WHEREOF, this Amendment No. 1 is executed as of the day and year first above written. 

	 	 	"EMPLOYER"
	

 	
 	

Impac Mortgage Holdings, Inc., a Maryland corporation
	

 	
 	

By:	

/s/  RON MORRISON      

	 	 	 	Ron Morrison

General Counsel
	

 	
 	

"EMPLOYEE"
	

 	
 	

By:	

/s/  TODD R. TAYLOR      

	 	 	 	Todd R. Taylor

Interim Chief Financial Officer

2

 
 
 

Exhibit A
  
    Job Description    
    

Responsible
for planning, coordinating and directing the financial affairs, including the accounting, treasury, financial planning, reporting, compliance, analysis, and tax functions. Provide
management and the Board with meaningful and timely information regarding Employer's financial performance. Monitor compliance with all applicable laws, rules, and regulations related to financial
information and financial performance of Employer, including tax compliance, and implement and oversee programs designed to ensure such compliance. Implement and maintain programs designed to ensure
proper management of Employer's liquidity position and that proper cost effective funding is available to meet Employer's objectives. Recommend and implement asset/liability and tax strategies to
improve financial performance. Direct a financial planning process for both next year budgeting and strategic planning purposes. Provide appropriate financial analysis of investment, merger and
acquisition alternatives and capital raising efforts and alternatives. Act as liaison with the internal and external auditors. Manage the staff of exempt and non-exempt employees. Perform
supervisory duties to include: hiring, corrective action, performance appraisals, salary reviews, counseling, work scheduling, training, and budgeting. Review and approve credit applications and
extensions of additional credit. Oversee and approve IT projects and allocation of resources and approval of all IT related capital expenditures. 

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QuickLinks

Exhibit 10.27

EMPLOYMENT AGREEMENT

RECITALS

AGREEMENT

EXHIBIT A JOB DESCRIPTION AND RELATED ENTITIES

EXHIBIT B WAIVER AND RELEASE AGREEMENT

EXHIBIT C PROPRIETARY RIGHTS AND INVENTIONS AGREEMENT

EXHIBIT 1 EMPLOYEE'S DISCLOSURE

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

RECITALS

AMENDMENT

Exhibit A Job Description

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