Document:

EX-10.2

 Exhibit 10.2 
  

 
 April 18, 2018 
 Ritesh
Chaturbedi 
 Dear Ritesh: 
 It is with great pleasure that we
confirm our offer for you to serve as the Chief Operating Officer of Ditech Holding Corporation (the “Company”). This letter (the “Letter Agreement”) sets forth the basic terms and conditions of your employment.
Your appointment will become effective upon your acceptance of the offer and confirmation by the Board of Directors of the Company (the “Board”) (the “Effective Date”). 

Position/Reporting: You will be employed in the position of Chief Operating Officer of the Company, reporting to the Chief Executive Officer of the
Company (the “CEO”). In your position, you will perform such duties and have such responsibilities associated with your position under the Company’s Bylaws and as assigned to you by the CEO. 

Principal Place of Employment: Your principal place of employment will be at the Company’s headquarters in Fort Washington, Pennsylvania, although
you understand and agree that you may need to travel as necessary from time to time to perform your duties hereunder. You will be entitled to reimbursement of commuting expenses of up to $20,000 (prior to applicable withholdings) through
December 31, 2018, subject to reasonable documentation of such expenses and in accordance with the Company’s policy, as in effect from time to time. 

Sign-On Bonus: You will receive a one-time sign-on bonus in the amount of $150,000 (prior to applicable withholdings), payable in a lump sum cash payment on the first payroll date immediately following the Effective Date (the
“Sign-On Bonus”). In the event that, prior to the first anniversary of the Effective Date, either (i) you voluntarily terminate your employment for any reason, or (ii) your employment is
terminated by the Company for Cause, you will be required to repay to the Company, within sixty (60) days following such termination date, the full amount of your Sign-On Bonus. 

Base Salary: While employed hereunder, you will receive an annual base salary of $450,000 (prior to applicable withholdings), payable at the time and
in the manner consistent with the Company’s standard payroll policies and practices. 
 Annual Incentive Plan: While employed hereunder, you
will be eligible for an annual incentive bonus opportunity under the Company’s annual incentive compensation plan as in effect from time to time (“AIP”). The annual incentive bonus will be based on Company performance and other
objectives established under the AIP by the compensation committee of the Board (the 

  
 

 

 

 
 “Compensation Committee”) and the Board. Each fiscal year, you will be eligible to earn a target bonus of
133% of your annual base salary under the AIP, up to a maximum of 200% of your base salary, depending on satisfaction of the objectives established for the fiscal year, as determined by the Compensation Committee and the Board. For fiscal year 2018,
such target bonus amount shall be pro-rated for the number of days that you are employed during the fiscal year. Annual bonuses are typically paid in the first quarter of the following fiscal year, and you
must be employed as of the date that bonuses are paid in order to be eligible for payment. 
 Equity Incentive Plan: You will be entitled to
participate in the Company’s 2018 Equity Incentive Plan (the “LTIP”) in a manner and at the level determined by the Board. The terms and conditions of any long-term incentive award you receive shall be determined by the Board
in its discretion and shall be set forth in an award agreement issued under the LTIP. For fiscal year 2018, the Compensation Committee will grant to you long-term incentive awards under the LTIP under the terms set forth on Exhibit A. 

Confidentiality, Non-Interference, and Invention Assignment Agreement: You will, as a condition of this offer,
be required to execute the Confidentiality, Non-Interference, and Invention Assignment Agreement attached hereto as Exhibit B (the “Employee Covenants Agreement”). 

Health and Welfare and Retirement Benefits: You shall be entitled to participate in the employee benefit programs provided to the Company’s
senior management employees generally, including, but not limited to, medical, dental, disability, group life, 401(k), and any other benefits as the Company may from time to time and in its sole discretion make available, subject to eligibility
requirements.
 Paid Time Off and Holidays: As a senior management employee, you are eligible for paid time off that does not have a fixed
limitation, subject to business needs. You will be on the honor system to take vacation and paid time off at your discretion, subject to ensuring that your job duties and responsibilities are being met. In addition, you will receive such paid
holidays consistent with the Company’s standard policies. 
 Indemnification: As an officer of the Company, you will entitled to indemnification
consistent with the Company’s Articles of Amendment and Restatement (as amended) and Bylaws (as amended) and applicable law, and will be entitled to coverage under the Company’s D&O insurance policies as in effect from time to time.

 At-Will Employment: You will be employed at will, which means that either you or the Company can elect to
terminate the employment relationship at any time, for any or no reason; provided, however, that you will be required to provide the Company at least two weeks’ prior written notice of your termination of employment.
Notwithstanding the foregoing, the Company may, in its sole 

  
 

 

 

 
 and absolute discretion, by written notice to you, accelerate such date of termination. All base salary, benefits and other
compensation will end upon the termination of your employment except as required by applicable law or as otherwise provided herein. 
 Severance: In
the event of a termination of your employment with the Company by the Company without “Cause” you shall be entitled to a severance benefit equal to twelve (12) months of your base salary on the date of such termination, payable in
equal bi-weekly installments over a period of twelve (12) months in accordance with the Company’s regular payroll practices (the “Severance Payments”). Receipt of the Severance
Payments is conditioned upon (i) your execution and non-revocation of a general release of claims in the form provided by the Company and (ii) your continued compliance with the Employee Covenants
Agreement. The Severance Payments will begin, or be paid, on the first regularly scheduled payroll date following the 60th day after such termination. “Cause” shall mean your (i) your indictment or conviction (including
conviction that results from any plea or plea agreement) in connection with any crime involving moral turpitude or of any felony, (ii) the knowing material theft, or the knowing embezzlement or fraud by you or your involvement, either alone or
in concert with others, in any scheme or conspiracy to knowingly divert assets from the Company or its affiliates, (iii) your material or persistent failure to perform your material duties or to comply with the Company’s policies and
procedures, if such failure, if it can be cured, is not cured within thirty (30) days after the Company sends you written notice specifying the nature of such failure; (iv) any knowing or reckless act of material dishonesty by you in
connection with your employment; (v) the knowing or reckless breach or violation by you of your contractual obligations to the Company or any law, fiduciary duty or material regulation respecting the business of the Company or any of its
affiliates; or (vi) failure to satisfy the conditions set forth in this Letter Agreement; provided, that the Company must provide you thirty (30) days’ prior written notice setting forth in reasonable specificity the
event that constitutes Cause, which written notice, to be effective, must be provided to you within thirty (30) days of the occurrence of such event. During such thirty (30) day notice period, you shall have a cure right, and if not cured
within such period, your termination will be effective upon the ninetieth (90th) day following the date the Company provided written notice to you, unless otherwise agreed between you and the Company. 

Section 409A: The payments and benefits under this Letter Agreement are intended to comply with or be exempt from Section 409A
of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively “Section 409A”), whether pursuant to the short-term deferral exception or otherwise, and,
accordingly, to the maximum extent permitted, this Letter Agreement shall be interpreted to be exempt from Section 409A. For purposes of Section 409A, your right to receive any installment payments pursuant to this Letter Agreement shall
be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Letter Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days
following the date of 

  
 

 

 

 
 termination”), the actual date of payment within the specified period shall be within the sole discretion of the
Company. If you are deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered
nonqualified deferred compensation under Section 409A payable on account of a “separation from service,” such payment or benefit shall be made or provided at the date which is the earlier of (i) the expiration of the six
(6)-month period measured from the date of such “separation from service,” and (ii) the date of your death (the “Delay Period”). Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to
this provision (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed on the first business day following the expiration of the Delay Period to you in a lump sum,
and any remaining payments and benefits due under this Letter Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 

This Letter Agreement replaces any previous oral or written representations with respect to the matters subject to this Letter Agreement. 

This Letter Agreement is to be interpreted and governed by the laws of the Commonwealth of Pennsylvania. 

This Letter Agreement may be signed in counterparts, each of which, along with any facsimile or scanned email versions, will be deemed an original. 

Please indicate your acceptance of the terms of this Letter Agreement by signing below and returning a fully executed copy to me. 

 

	
	 Sincerely,
  

Ditech Holding Corporation

	
	/s/ Elizabeth Monahan
	 By:     Elizabeth Monahan

Title:     Chief HR Officer

 ACKNOWLEDGMENT 
 I hereby
agree to employment on the terms and conditions set forth in this Letter Agreement. 

  
 

 

 

 
  
 Dated:
    4/18/18     
 /s/ Ritesh Chaturbedi         

Ritesh Chaturbedi 

  
 

 

 

 
 EXHIBIT A 

Performance Stock Units 
  

	 	•	 	2018 RSU. For fiscal year 2018, you will be granted a restricted stock unit award (“RSU”) as promptly as practicable following the Effective Date with a targeted value of $500,000 on the date of
grant, as determined by the Board, with vesting to be based such service and performance conditions as determined by the Board that are generally consistent with the LTIP incentive grants made to other senior management of the Company.

  

	 	•	 	2018 PSU. For fiscal year 2018, you will be granted a performance stock unit award (“PSU”) as promptly as practicable following the Effective Date with respect to 8,000 Shares at target
performance level. The number of Shares earned pursuant to the PSU will be determined based on the Company’s average closing stock price for the twenty (20) trading days (the “Average Stock Price”) immediately prior to and
including December 31, 2020 (the “PSU Measurement Date”), in accordance with the terms described below. 

  

	 	•	 	PSU Performance Goals. The number of Shares earned pursuant to the PSU will be determined in accordance with the table below and straight line interpolation will be applied to determine the number of Shares that
become earned upon a stock price increase between the levels listed below: 

  

							
	 Stock

Price
	  	  	  	% of Target
Shares
Earned	 	# Shares
Earned
	 $7.50
	  	Threshold	  	20%	 	1,600
	 $10.00
	  		  	60%	 	4,800
	 $12.50
	  	Target	  	100%	 	8,000
	 $15.00
	  		  	138%	 	11,000
	 $17.50
	  		  	175%	 	14,000
	 $20.00
	  		  	213%	 	17,000
	 $22.50
	  	Max	  	250%	 	20,000

  

	 	•	 	 PSU Vesting and Settlement. Subject to your continued service with the Company, (i) fifty percent
(50%) of the PSUs earned in accordance with the schedule set forth above will become vested and settled upon the determination of the number of PSUs earned by 

  
 A-1 

 
 

 

 

 
  

	 	the Compensation Committee, which shall occur within thirty (30) days following the PSU Measurement Date and (ii) fifty percent (50%) of the PSUs earned will become vested and settled twelve (12) months following the
PSU Measurement Date. Notwithstanding the foregoing, if a Change of Control (as defined in the LTIP, as amended on the Effective Date) occurs prior to the PSU Measurement Date, the number of shares earned will be determined on the date of such
Change of Control based on the price per share paid in connection with the Change of Control. The PSUs earned in connection with a Change of Control will convert into a time-based award for such number of shares earned and become vested on the dates
set forth above, subject to earlier payment upon a Qualifying Termination as described below. 

  

	 	•	 	Qualifying Termination. Upon termination of your employment with the Company by the Company without Cause or (ii) by reason of your death or disability, or (each a “Qualifying Termination”),
the number of Shares earned pursuant to the PSU will either be (a) determined under the schedule above based on the Company’s Average Stock Price immediately prior to the date of such termination or (b) such number of Shares
previously earned in connection with a Change of Control as described above. In the event of such Qualifying Termination with respect to the PSU, you will receive the full amount of the Shares earned above, determined and payable upon the PSU
Measurement Date (or the date of termination, if later). 

  

	 	•	 	Award Agreements. Awards will be subject to the terms and conditions of standard LTIP award agreements to be entered into between the Company and you, taking into account the terms set forth above.

  
 A-2 

 
 

 

 

 
 EXHIBIT B 

CONFIDENTIALITY, NON-INTERFERENCE, AND INVENTION 

ASSIGNMENT AGREEMENT 

This CONFIDENTIALITY, NON-INTERFERENCE, AND INVENTION ASSIGNMENT AGREEMENT (this
“Agreement”) is made and entered into as of this 18th day of April, 2018, by and between Ditech Holding Corporation, a Maryland corporation (the “Company”), on behalf of itself and any subsidiaries and affiliates
thereof (collectively, “the Company”) and Ritesh Chaturbedi (“Executive”). 
 In consideration of the Letter
Agreement, dated as of the date hereof, between the Company and Executive, and Executive’s receipt of the compensation now and hereafter paid to Executive by the Company, the receipt and sufficiency of which are mutually acknowledged, the
Company and Executive agree as follows: 
 Section 1. Confidential Information. 

(a)    Company Information. Executive acknowledges that, during the course of Executive’s employment,
Executive will have access to and will inevitably use confidential and proprietary information of the Company. In recognition of the foregoing, Executive agrees that, at all times during the term of Executive’s employment with the Company and
thereafter, to hold in confidence, and not to use, except for the benefit of the Company, or to disclose to any Person without written authorization of the Company, for any reason or purpose whatsoever, any Confidential Information that Executive
obtains or creates. Executive understands that “Confidential Information” means information in spoken, printed, electronic, or any other form or medium, that is not generally known publicly and that the Company wishes to maintain as
confidential, that has value in or to the business of the Company and that the Company has or will maintain, develop, acquire, create, compile, discover, or own. Executive understands that Confidential Information includes, but is not limited to,
any and all non-public information that relates to the actual or anticipated business and/or products or services, research, or development of the Company, or to the Company’s technical data, trade
secrets, or know-how, including, but not limited to, research, product and service costs and plans, business strategies, or other information regarding the Company’s products or services and markets,
customer lists, customers (including, but not limited to, customers of the Company on whom Executive called or with whom Executive may become acquainted during the term of Executive’s employment), software, developments, inventions, processes,
formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, policies, training manuals and similar materials used by the Company in conducting its business operations, personnel information of any
Person employed by the Company, potential business combinations, and other business information disclosed by the Company either directly or indirectly in writing, orally, or by drawings or inspection of premises, parts, equipment, or other Company
property. Confidential Information also includes other information of any existing or prospective customer or of any other Person that has entrusted information to the Company in confidence. Executive acknowledges that the Company’s
communication systems (such as email and voicemail) are maintained to assist in the conduct of the Company’s business and that such systems and data exchanged or stored thereon are Company property. Notwithstanding the foregoing, Confidential
Information shall not include any of the 

  
 

 

 

 
 foregoing items that have become publicly and widely known through no unauthorized disclosure by Executive or others who
were under confidentiality obligations as to the item or items involved. 
 (b)    Former Employer Information.
Executive represents and warrants that he is not a party to any non-competition agreement or other contractual limitation that would interfere with or hinder Executive’s ability to undertake the
obligations and expectations of employment with the Company. Executive represents that Executive’s performance of all of the terms of this Agreement as an employee of the Company has not breached and will not breach any agreement to keep in
confidence proprietary information, knowledge, or data acquired by Executive in confidence or trust prior to the commencement of Executive’s employment with the Company, and Executive will not disclose to the Company, or induce the Company to
use, any developments, or confidential information or material Executive may have obtained in connection with employment with any prior employer in violation of a confidentiality agreement, nondisclosure agreement, or similar agreement with such
prior employer. 
 (c)    Permitted Disclosure. This Agreement does not limit or interfere with Executive’s
right, without notice to or authorization of the Company, to communicate and cooperate in good faith with any self-regulatory organization or U.S. federal, state, or local governmental or law enforcement branch, agency, commission, or entity
(collectively, a “Governmental Entity”) for the purpose of (i) reporting a possible violation of any U.S. federal, state, or local law or regulation, (ii) participating in any investigation or proceeding that may be
conducted or managed by any Government Entity, including by providing documents or other information, or (iii) filing a charge or complaint with a Government Entity, provided that in each case, such communications, participation, and
disclosures are consistent with applicable law. Additionally, Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal,
state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made
under seal. If Executive files a lawsuit for retaliation by an employer for reporting a suspected violation of law, Executive may disclose the trade secret to the Executive’s attorney and use the trade secret information in the court
proceeding, if Executive files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order. All disclosures permitted under this Section 1(c) are hereinafter referred to as
“Permitted Disclosures.” Notwithstanding the foregoing, under no circumstance will Executive be authorized to disclose any Confidential Information as to which the Company may assert protections from disclosure under the
attorney-client privilege or the attorney work product doctrine, without prior written consent of Company’s General Counsel or other authorized officer designated by the Company. 

Section 2. Developments. 

All inventions, improvements, trade secrets, reports, manuals, computer programs, systems, educational and sales materials or other
publications, and other ideas and materials developed or invented by Executive, including all tangible work product derived therefrom, during the period of Executive’s employment with the Company, either solely or in collaboration with others,
which relate to the actual or anticipated business or research of the Company, which result from or are suggested by any work Executive may do for the Company, or which result from use of the Company’s premises or the

  
 

 

 

 
 Company’s or its customers’ property (collectively, the “Developments”), shall be the sole and
exclusive property of the Company. Executive hereby assigns to the Company Executive’s entire right and interest in any such Developments. Executive agrees to promptly and fully disclose to the Company all Developments. At the request of the
Company, Executive will, during and after the term of this Agreement, without charge to the Company but at the expense of the Company, assist the Company in any reasonable way to vest in the Company title to all such Developments, and to obtain any
related patents, trademarks, or copyrights in all countries throughout the world. Executive will execute and deliver any documents that the Company may reasonably request in connection with such assistance. 

Section 3. Returning Company Documents. 

At the time of the termination of Executive’s employment with the Company for any reason, Executive will promptly deliver to the Company
(and will not keep in Executive’s possession, recreate, copy, or deliver to anyone else) any and all Confidential Information and all other documents, materials, information, and property created or received by Executive in connection with
Executive’s employment or otherwise belonging to the Company. Any property situated on the Company’s premises and owned by the Company (or any other member of the Company), including USB flash drives and other storage media, filing
cabinets, and other work areas, is subject to inspection by the Company at any time with or without notice. 

Section 4. Restrictions on Interfering. 

(a)    Non-Competition. During the Employment Period and the
Post-Termination Restricted Period, Executive shall not, directly or indirectly, individually or on behalf of any Person, whether for compensation or otherwise, engage in any Competitive Activities within the United States of America or any other
jurisdiction in which the Company engages in business or derives a material portion of its revenues, or where the Company has plans to commence business activities. The parties agree that the Company’s competitors as of the date of this
Agreement are the businesses and entities listed on Appendix A, and each of their respective subsidiaries, affiliates, successors and agencies, as applicable. 

(b)    Non-Interference. During the Employment Period and the
Post-Termination Restricted Period, Executive shall not, directly or indirectly, individually or on behalf of any Person, engage in Interfering Activities. 

(c)    Non-Disparagement. During the Employment Period and the
Post-Termination Restricted Period, Executive shall not, directly or indirectly, individually or on behalf of any Person, induce or encourage others to make, publish, or communicate to any Person, any disparaging or defamatory comments regarding the
Company, its businesses, its products or its services, or any of the Company’s current or former directors, officers, or employees. However, nothing in this Section 4(c) shall prevent Executive from making a Permitted Disclosure as defined
in Section 1(c). 
 (d)    Definitions. For purposes of this Agreement: 

  
 

 

 

 
 (i)    “Business Relation” shall mean any current or
prospective client, customer, licensee, supplier or other business relation of the Company, or any such relation that was a client, customer, licensee, supplier or other business relation within the prior six (6)-month period, in each case, with
whom the Executive transacted business or whose identity became known to Executive in connection with Executive’s relationship with, or employment by, the Company. 

(ii)    “Competitive Activities” shall mean any activity in which the Executive uses
Executive’s knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, partner, member, director, stockholder, officer, volunteer, intern, or any other similar
capacity, on behalf of or in association with a business engaged in the same or similar business as the Company, including, without limitation, any business activity related to the residential real estate mortgage servicing or originations business,
and any other business activity that is competitive with the then current or planned business activities of the Company. Competitive Activities does not include purchasing or owning less than one percent (1%) of the publicly traded securities of any
corporation, provided that such ownership represents a passive investment and Executive is not a controlling person of, or a member of a group that controls, such corporation. 

(iii)    “Employment Period” shall mean the period of Executive’s employment with the
Company. 
 (iv)    “Interfering Activities” shall mean, directly or indirectly,
(A) soliciting, encouraging, enticing, causing, or inducing, or in any manner attempting to solicit, encourage, entice, cause, or induce, any Person employed by, or providing consulting services to, the Company to terminate such Person’s
employment or services (or in the case of a consultant, materially reducing such services) with the Company, without the prior written consent of the Company; (B) hiring or engaging any Person who was employed by, or providing consulting
services to, the Company within the six (6)-month period prior to the date of such hiring or engagement; or (C) soliciting, encouraging, calling upon, directing, diverting, influencing, or inducing, or in any manner attempting to solicit,
encourage, call upon, direct, divert, influence, or induce, any Business Relation to cease doing business with or reduce the amount of business conducted with the Company, or in any way interfering with the relationship between any such Business
Relation and the Company; or (D) on behalf of or in association with any Person, accepting business from a Business Relation. 

(v)    “Person” shall mean any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity. 

(vi)    “Post-Termination Restricted Period” shall mean the period commencing on the date
of the termination of the Executive’s employment with the Company for any reason, and ending on the date that is twelve (12) months following such date of termination. 

  
 

 

 

 
 (vii)    “Solicitation” shall mean any direct or
indirect communication of any kind, regardless of who initiates it, that in any way invites, advises, encourages, or requests any Person to take or refrain from taking any action. 

Section 5. Reasonableness of Restrictions. 

Executive acknowledges and recognizes the highly competitive nature of the Company’s business, and agrees that access to Confidential
Information renders Executive special and unique within the Company’s industry, and that Executive will have the opportunity to develop substantial relationships with existing and prospective clients, accounts, customers, consultants,
contractors, investors, and strategic partners of the Company during the course of and as a result of Executive’s employment with the Company. In light of the foregoing, Executive recognizes and acknowledges that the restrictions and
limitations set forth in this Agreement are reasonable and valid in geographic and temporal scope and in all other respects and are essential to protect the value of the business and assets of the Company. Executive further acknowledges that the
restrictions and limitations set forth in this Agreement will not materially interfere with Executive’s ability to earn a living following the termination of Executive’s employment with the Company. 

Section 6. Independence; Severability; Blue Pencil. 

Each of the rights enumerated in this Agreement shall be independent of the others and shall be in addition to and not in lieu of any other
rights and remedies available to the Company at law or in equity. If any of the provisions of this Agreement or any part of any of them is hereafter construed or adjudicated to be invalid or unenforceable in any respect, the same shall not affect
the remainder of this Agreement, which shall be given full effect without regard to the invalid portions. If any of the covenants contained herein are held to be invalid or unenforceable because of the duration of such provisions or the area or
scope covered thereby, the court making such determination shall have the power to reduce the duration, scope, and/or area of such provision to the maximum and/or broadest duration, scope, and/or area permissible by law, and in its reduced form said
provision shall then be enforceable. Such reduction will apply only with respect to the operation of such provision in the particular jurisdiction in which such adjudication is made. 

Section 7. Remedies. 

Executive expressly acknowledges that any breach or threatened breach of any of the terms and/or conditions set forth in this Agreement may
result in substantial, continuing, and irreparable injury to the Company. Therefore, Executive agrees that, in addition to any other remedy that may be available to the Company, the Company has the right to seek temporary, preliminary, and/or or
permanent injunctive relief, specific performance, or other equitable relief from any court of competent jurisdiction in the event of any breach or threatened breach of the terms of this Agreement, without the necessity of showing any actual damages
or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The Company may pursue any remedy available, including declaratory relief, concurrently or consecutively in any order, and
the pursuit of one such remedy at any time will not be deemed an election of remedies or waiver of the right to pursue any other 

  
 

 

 

 
 remedy. In addition, in the event of a breach by the Executive of any provision of this Agreement, the Company shall be
entitled to seek repayment of any severance benefits paid to the Executive pursuant to any severance benefit agreement, plan, or program of the Company. Notwithstanding any other provision to the contrary, the Post-Termination Restricted Period
shall be tolled during any period of violation of any of the covenants in Section 4 of this Agreement. 

Section 8. Cooperation. 

Following any termination of Executive’s employment, Executive will continue to provide reasonable cooperation to the Company and its
counsel in connection with any investigation, administrative proceeding, or litigation relating to any matter that occurred during Executive’s employment in which Executive was involved or of which Executive has knowledge. As a condition of
such cooperation, the Company shall reimburse Executive for reasonable out-of-pocket expenses incurred at the request of the Company with respect to Executive’s
compliance with this Section 8. In the event Executive is subpoenaed by any person or entity (including, but not limited to, any Government Entity) to give testimony or provide documents (in a deposition, court proceeding, or otherwise), that
in any way relates to Executive’s employment by the Company, Executive will give prompt notice of such subpoena to the Company and will make no disclosure until the Company has had a reasonable opportunity to contest the right of the requesting
person or entity to such disclosure. Nothing in this Section 8 shall limit Executive’s right to make Permitted Disclosures as provided in Section 1(c). 

Section 9. General Provisions. 

(a)    GOVERNING LAW; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF PENNSYLVANIA, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAWS, AND TO APPLICABLE FEDERAL LAW. EACH PARTY TO THIS AGREEMENT ALSO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY
SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT. 
 (b)    Entire Agreement. This
Agreement sets forth the entire agreement and understanding between the Company and Executive relating to the subject matter herein and supersedes all prior and contemporaneous negotiations, discussions, correspondence, communications,
understandings, agreements, representations, promises, and any other statements, both written and oral, between the parties relating to the subject matter of this Agreement. No modification or amendment to this Agreement, nor any waiver of any
rights under this Agreement, or consent required by this Agreement, will be effective unless agreed to in a writing signed by the party to be charged. Any subsequent change or changes in Executive’s duties, obligations, rights, or compensation
will not affect the validity or scope of this Agreement. 
 (c)    Successors and Assigns. This Agreement will be
binding upon Executive’s heirs, executors, administrators, and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. This Agreement may be assigned by the Company without Executive’s

  
 

 

 

 
 consent to any subsidiary or affiliate of the Company as well as to any purchaser of all or substantially all of the assets
or business of the Company, whether by purchase, merger, or other similar corporate transaction. Executive’s obligations under this Agreement may not be delegated, and Executive may not assign or otherwise transfer this Agreement or any part
hereof. Any purported assignment by Executive shall be null and void from the initial date of purported assignment. This Agreement is for the sole benefit of the Company and the Executive and their respective successors and permitted assigns and not
for the benefit of, or enforceable by, any third party. 
 (d)    Acknowledgment. Executive acknowledges that he
has had adequate time to consider the terms of this Agreement, has knowingly and voluntarily entered into this Agreement and has been advised by the Company to seek the advice of independent counsel prior to reaching agreement with the Company on
any of the terms of this Agreement. The parties to this Agreement agree that no rule of construction shall apply to this Agreement which construes ambiguous language in favor of or against any party by reason of that party’s role in drafting
this Agreement. 
 (e)    Survival. The provisions of this Agreement shall survive the termination of
Executive’s employment with the Company and/or the assignment of this Agreement by the Company to any successor in interest or other assignee. 

(f)    Section Headings. Section and subsection headings are inserted for convenience only and shall not limit,
expand, or alter the meaning or interpretation of this Agreement. 
 (g)    Counterparts. This Agreement may be
executed in two or more counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same instrument. Delivery of an executed counterparts signature page of this Agreement, by facsimile
or electronic mail in portable document format (.pdf), has the same effect as delivery of an executed original of this Agreement. 

[Signature Page Follows] 

  
 

 

 

 
 The undersigned have executed this Agreement on the date in the preamble hereto. 

 

	
	DITECH HOLDING CORPORATION
	
	/s/ Elizabeth Monahan
	 By: Elizabeth Monahan
 Title: Chief HR
Officer

  

	
	EXECUTIVE
	
	/s/ Ritesh Chaturbedi
	Ritesh Chaturbedi

  
 

 

 

 
 APPENDIX A 

List of Competing Businesses and Entities 
  

	 	•	 	Movement Mortgage, LLC 

  

	 	•	 	Nationstar Mortgage Holdings Inc. 

  

	 	•	 	New Residential Investment Corp. 

  

	 	•	 	Ocwen Financial Corporation 

  

	 	•	 	PennyMac Loan Services, LLC 

  

	 	•	 	Federal National Mortgage Association 

  

	 	•	 	Federal Home Loan Mortgage Association 

  

	 	•	 	Governmental National Mortgage Association 

  

	 	•	 	United States Department of Housing and Urban Development 

  

	 	•	 	Federal Housing Finance Agency 

 The following would be limited to only the residential real
estate mortgage servicing or originations business activities being conducted by such companies, if any: 
  

	 	•	 	Apollo Global Management, LLC 

  

	 	•	 	Fortress Investment Group LLC 

  

	 	•	 	KKR & Co. L.P. 

  

	 	•	 	Stone Point Capital LLC 

  

	 	•	 	The Blackstone Group L.P.EX-4.1

 EXHIBIT 4.1 

THIS SENIOR PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). NO SALE, PLEDGE OR DISPOSITION
MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE ACT. 
 SENIOR PROMISSORY NOTE 
  

			
	 $[•]
	  	[•], [•]
		  	Hayward, California

 For value received, Aradigm Corporation, a California corporation (the “Company”), promises to pay to the
order of [•], an entity formed under the laws of [•] (together with its successors and assigns, the “Holder”, and together with the Company, the “Parties”), the principal sum of [•] dollars
($[•]), together with interest accrued but unpaid hereon, upon the terms of this Senior Promissory Note (this “Note”). 

1. NOTE; SECURITY; RELATED AGREEMENTS. THIS
NOTE IS ISSUED PURSUANT TO THE TERMS OF THAT CERTAIN SENIOR NOTE
PURCHASE AGREEMENT, DATED AS OF APRIL 13, 2018, BY AND AMONG
THE COMPANY AND THE PURCHASERS NAMED ON SCHEDULE A THERETO (AS AMENDED
OR OTHERWISE MODIFIED FROM TIME TO TIME IN ACCORDANCE WITH THE TERMS
THEREOF, THE “NOTE PURCHASE AGREEMENT”). THIS NOTE IS SUBJECT TO AMENDMENT
AND WAIVER AS PROVIDED THEREIN. CAPITALIZED TERMS NOT OTHERWISE DEFINED HEREIN
SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN THE NOTE PURCHASE
AGREEMENT.  
 2. Interest. 

(a) This Note shall bear interest at the rate of 9.0% per year from [•]1 or from the
most recent date to which interest has been paid or provided for to, but excluding, the next scheduled Interest Payment Date (as defined below) until May 1, 2021, unless earlier redeemed pursuant to and in accordance with the provisions hereof.
Accrued interest on this Note shall be computed on the basis of a 360-day year composed of twelve 30-day months and, for partial months, on the basis of actual days
elapsed over a 30-day month. Interest is payable semi-annually in arrears on each May 1 and November 1 (each such date, an “Interest Payment Date”), commencing on [•]2, 2018. Unless the Company elects otherwise, all accrued interest payable subsequent to, and including, the interest payment payable on [•]3,
2018, will be capitalized on the applicable Interest Payment Date by adding such accrued interest to the 
  

	1 	Insert date of the applicable Closing. 

	2 	Insert May 1 if the applicable Closing occurs prior to May 1 or November 1 if the applicable Closing occurs after May 1. 

	3 	 Insert May 1 if the applicable Closing occurs prior to May 1 or November 1 if the applicable
Closing occurs after May 1. 

 
principal balance of the outstanding Notes, at which time such interest shall be deemed to have been paid for all purposes hereunder. For the avoidance of doubt, following an increase in the
principal amount of the Note as a result of a capitalization of accrued interest in accordance with the foregoing, the Note will bear interest on such increased principal amount from and after the applicable Interest Payment Date. Rather than
capitalizing a payment of accrued interest, the Company may elect to pay such accrued interest in cash. The Company shall evidence such election with respect to any Interest Payment Date by sending a Notice to that effect to the Holder in writing at
least five (5) business days prior to such Interest Payment Date. 
 (b) Notwithstanding the foregoing, any election by the Company to
pay accrued interest in cash must be made with respect to all issued and outstanding Notes (as defined in the Note Purchase Agreement, such notes are collectively referred to herein as the “Series Notes”). For the avoidance of
doubt, the Company may not make an election to pay accrued in cash with respect to only certain of the Series Notes. 
 3. Maturity.
Unless earlier cancelled pursuant to the terms hereof, the outstanding principal and accrued but unpaid interest shall be immediately due and payable on May 1, 2021 (the “Maturity Date”). 

4. Payment. All payments in respect of this Note shall be in immediately available lawful money of the United States of America.
All payments in respect of this Note shall be made unconditionally in full without any deduction, set off, counterclaim or other defense. If any scheduled payment date is not a Business Day such payment shall be made on the next succeeding Business
Day. 
 5. Redemption. 

(a) This Note may be redeemed at the Company’s election at any time in whole or from time to time in part. The Company shall evidence such
election by sending a Notice to that effect to the Holder (the “Notice of Redemption”) in writing at least 15 calendar days but no more than 60 calendar days before the redemption date. 

(b) The Notice of Redemption shall state: 

(i) the Redemption Price (as defined below), 

(ii) if less than the entire principal amount of this Note is to be redeemed, the principal amount to be redeemed, 

(iii) the redemption date, and 

(iv) the place or places that payment will be made upon presentation and surrender of the principal amount of this Note to be redeemed. 

(c) The redemption price for this Note will equal 100% of the principal amount being redeemed plus accrued and unpaid interest on the
principal amount being redeemed up to, but excluding, the date of redemption (the “Redemption Price”). 

  
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 (d) Unless the Company defaults in the payment of the Redemption Price, interest will cease to
accrue at the redemption date on any principal amount of this Note that has been called for redemption. 
 (e) In the event of a redemption
of this Note in part only, the Note shall be surrendered at the place of payment set forth in the Notice of Redemption and the Company shall execute and deliver a new senior promissory note having the same terms as this Note in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of the Note so surrendered. 
 (f) This Note may not be redeemed
if the principal amount of this Note has been accelerated, and such acceleration has not been rescinded, on or prior to the redemption date (except in the case of an acceleration resulting from a default by the Company in the payment of the
Redemption Price with respect to this Note). 
 (g) Notwithstanding anything to the contrary contained in the Note Purchase Agreement or
this Note, if more than one of the Series Notes issued pursuant to the Note Purchase Agreement is outstanding at a time when the Company elects to redeem any of the Series Notes, the Company must redeem amounts outstanding under all of the issued
and outstanding Series Notes on a pro rata basis. 
 6. Tax. Any and all payments by the Company hereunder shall be made free and
clear of and without deduction of any and all present or future taxes, levies, imposts, deductions, charges or withholdings imposed by any governmental authority (“Taxes”). The Company agrees to pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar levies of any applicable governmental authority which arise from any payment made hereunder. 

7. Consolidation and Merger. The Company shall not consolidate with or merge with or into another person, or sell, convey,
assign, transfer, lease or otherwise dispose of all or substantially all of the Company’s properties or assets in one transaction or series of transactions, to another person, unless: 

(a) the resulting, surviving or transferee person (the “Successor Company”), if not the Company, shall be a corporation
organized and existing under the laws of the United States of America, any State thereof or the District of Columbia; 
 (b) the Successor
Company (if not the Company) shall expressly assume all of the Company’s obligations under this Note; and 
 (c) immediately after
giving effect to such transaction, no Event of Default shall have occurred and be continuing under the terms of this Note. 
 8.
Rank. This Note shall rank pari passu with the Company’s 9.0% Convertible Senior Notes due 2021, issued pursuant to that certain Indenture, dated as of April 25, 2016, between the Company and U.S. Bank National
Association, as trustee. 

  
 3 

 9. Events of Default. For purposes hereof, the occurrence of any of the following shall
constitute an “Event of Default” under this Note: 
 (a) default in any payment of interest on this Note when due and
payable, and the default continues for a period of 30 calendar days; 
 (b) default in the payment of principal of this Note, including
capitalized interest, when due and payable on the Maturity Date, upon redemption, upon declaration of acceleration or otherwise; 
 (c)
failure by the Company to comply with its obligations under Section 7 hereof; 
 (d) failure by the Company for 60 calendar days after
a written Notice from the Holder has been received by the Company to comply with any of its other agreements contained in this Note; 
 (e)
default by the Company or any subsidiary of the Company that is a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X under the
Securities Exchange Act of 1934, as amended, (such subsidiary, a “Significant Subsidiary”) with respect to any mortgage, indenture, agreement or other instrument under which there may be outstanding, or by which there may be secured
or evidenced, any indebtedness for money borrowed in excess of $500,000 (or its foreign currency equivalent) in the aggregate of the Company and/or any such Significant Subsidiary, whether such indebtedness exists as of the date hereof or is
thereafter created (i) resulting in such indebtedness becoming or being declared due and payable or (ii) constituting a failure to pay the principal or interest of any such indebtedness when due and payable at its stated maturity, upon
required repurchase, upon declaration of acceleration or otherwise if such default shall not have been cured or waived or such acceleration shall not have been rescinded within 30 calendar days; 

(f) a final judgment or judgments for the payment of $500,000 (or its foreign currency equivalent) or more (excluding any amounts covered by
insurance) in the aggregate rendered against the Company or any Significant Subsidiary of the Company, which judgment is not paid, discharged or stayed within 60 calendar days after (i) the date on which the right to appeal thereof has expired
if no such appeal has commenced, or (ii) the date on which all rights to appeal have been extinguished; 
 (g) the Company or any
Significant Subsidiary of the Company shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Company or any such Significant Subsidiary or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any such Significant Subsidiary or any substantial part of its property,
or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due; and 

  
 4 

 (h) an involuntary case or other proceeding shall be commenced against the Company or any
Significant Subsidiary of the Company seeking liquidation, reorganization or other relief with respect to the Company or such Significant Subsidiary or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or such Significant Subsidiary or any substantial part of its property, and such involuntary case or other proceeding shall remain
undismissed and unstayed for a period of 30 consecutive calendar days. 
 Upon the occurrence and during the continuation of any Event of Default, in
addition to any other remedies allowed by law, the unpaid principal amount of this Note, any accrued and unpaid interest and all other amounts payable hereunder may be declared by the Holder in a written Notice to the Company to be immediately due
and payable, whereupon such acceleration the unpaid principal amount of this Note, any accrued and unpaid interest and all such other amounts shall become immediately due and payable without presentment, demand, protest or further notice of any
kind. The Holder shall have all rights and may exercise any remedies available to it under law, successively or concurrently, including, but not limited to, the right to set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing by the Holder to or for the credit or the account of the Company against any of and all the obligations of the Company now or hereafter existing. Notwithstanding the
foregoing, upon the occurrence and during the continuation of any Event of Default specified in Section 9(g) or 9(h) above, the unpaid principal amount of this Note and all other amounts payable hereunder shall be immediately due and payable
without a written election or declaration unless otherwise determined by the Holder. Furthermore, any acceleration of the payment obligations of the Company hereunder may be waived with the written consent of the Holder. 

10. Certain Waivers. The Company hereby waives demand, notice, presentment, protest and notice of dishonor unless otherwise expressly
provided for in this Note. 
 11. Governing Law. The terms of this Note shall be construed in accordance with the laws of New York,
as applied to contracts entered into by New York residents within the State of New York, which contracts are to be performed entirely within the State of New York. Notwithstanding any provision of this Note to the contrary, the rate of interest due
on this Note shall not exceed the maximum rate permitted by applicable law. To the extent that any interest otherwise paid or payable by the Company to the Holder shall have been finally adjudicated to exceed the maximum amount permitted by
applicable law, such interest shall be retroactively deemed to have been a required repayment of principal (and any such amount paid in excess of the outstanding principal amount shall be promptly returned to the Company). 

12. Notice. Any notice required pursuant to the terms of this Note shall be given in accordance with the terms of Note Purchase
Agreement. 
 13. Amendment. Any term of this Note may be amended, and the observance of any term of this Note may be waived, with
the written consent of the Company and the Holder. 

  
 5 

 14. Replacement of Notes. Upon receipt of evidence satisfactory to the Company of
the loss, theft, destruction or mutilation of this Note and, if requested in the case of any such loss, theft or destruction, upon delivery of an indemnity bond or other agreement or security reasonably satisfactory to the Company, or, in the case
of any such mutilation, upon surrender and cancellation of such Note, the Company will issue a new Note, of like tenor and amount and dated the date to which interest has been paid, in lieu of such lost, stolen, destroyed or mutilated Note. 

15. Cumulative Remedies. No remedy herein conferred upon the Holder is intended to be exclusive of any other remedy, and each and every
such remedy shall be cumulative and shall be in addition to every right other remedy now or hereafter existing at law or in equity or by statute or otherwise. 

16. No Waiver. No course of dealing between the Company and the Holder or any delay on the part of the Holder in exercising any rights
or remedies shall operate as a waiver of any such right or remedy of the Holder. 
 17. Successors and Assigns. This Note shall be
binding on and inure to the benefit of and be enforceable by the Company, the Holder and their respective successors and assigns. The Company may not assign or otherwise transfer any of its rights or obligations under this Note without the prior
written consent of the Holder. The Holder may not assign or otherwise transfer any of its rights or obligations under this Note to any person other than the Company without the prior written consent of the Company. 

18. Severability. Whenever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under
all applicable laws and regulations. If, however, any provision of this Note shall be prohibited by or invalid under any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum
requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions of this Note, or the
validity or effectiveness of such provision in any other jurisdiction. 
 [Remainder of page intentionally left blank] 

  
 6 

 This Note has been issued in reliance upon the representations of the Holder set forth in the
Note Purchase Agreement. 
  

			
	COMPANY:
	
	ARADIGM CORPORATION

 
			
		
	By: 	 	 

 
			
	Name:	 	
	Title:

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