Document:

Management Agreement dated November 3, 2003

 EXHIBIT 10.19 
  
 MANAGEMENT AGREEMENT 
  
 THIS MANAGEMENT AGREEMENT, is entered into as of November 3, 2003, by and between BELVEDERE TRUST MORTGAGE CORPORATION, a Maryland corporation
(hereinafter referred to as the “Company”), and BT MANAGEMENT COMPANY, LLC, a Delaware limited liability company (hereinafter referred to as the “Manager”), with respect to the following: 
  
 W I T N E S S E
T H: 
  
 WHEREAS, the Company intends to engage in
the business of investing in mortgage securities (“Mortgage Securities”) and mortgage loans (“Mortgage Loans”) (collectively, “Mortgage Assets”) and to qualify for the tax benefits accorded to a real estate investment
trust (“REIT”) by Sections 856 through 860 of the Internal Revenue Code of 1986 (“Code”), as amended; and 
  
 WHEREAS, the Company desires to retain the Manager to manage the assets of the Company and to perform administrative services for the Company in the
manner and on the terms set forth herein, and wishes to enter into this Agreement for a ten (10) year term and thereafter until the Company’s board of directors (the “Board of Directors”) shall have met to take action on the renewal
or termination of this Agreement; and 
  
 WHEREAS, the Manager
shall not engage in any activity which would cause it to be required to register as an investment advisor under the Investment Advisers Act of 1940; and 
  
 WHEREAS, the Manager shall comply with all laws applicable to it and arising in connection with this Agreement. 
  
 NOW THEREFORE, in consideration of the mutual agreements herein set forth,
the parties hereto agree as follows: 
  
 SECTION 1.
Definitions. Capitalized terms used herein shall have the following meanings: 
  
 (a) “Agreement” means this Management Agreement, as amended from time to time. 
  
 (b) “Agreement Date” means the date reflected on page one as of which this Agreement is signed and dated. 
  
 (c) “Average Net Invested Assets” means for any period the
difference between (i) the aggregate book value of the consolidated assets of the Company and its subsidiaries, before reserves for depreciation or bad debts or other similar noncash market value adjustments and reserves, and (ii) the book value of
average debt associated with the Company’s ownership of Mortgage Assets, computed by taking the average of such net values at the end of each month during such period. 
  

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 (d) “Average Net Worth” means for any period the arithmetic average of the sum of the gross
proceeds from any offering of its equity securities by the Company, before deducting any underwriting discounts and commissions and other expenses and costs relating to the offering, plus the Company’s retained earnings (without taking into
account any losses incurred in prior periods) computed by taking the average of such values at the end of each month during such period, and shall be reduced by any amount that the Company pays for the repurchases of Common Stock. 
  
 (e) “GAAP” means generally accepted accounting principles
consistently applied. 
  
 (f) “Governing Instruments”
means the articles of incorporation and bylaws in the case of a corporation. 
  
 (g) “Return on Equity” means for any quarter the product of the Company’s Net Income for the quarter divided by the Company’s Average Net Worth for the quarter. 
  
 SECTION 2. General Duties of the Manager. Subject to the supervision
of the Board of Directors, the Manager shall provide services to the Company, and to the extent directed by the Board of Directors, shall provide similar services to any subsidiary of the Company as follows: 
  
 (a) serve as the Company’s consultant with respect to formulation and
updating of investment criteria and policy guidelines for consideration by the Board of Directors (“Guidelines”); 
  
 (b) represent the Company in connection with (i) its commitments to purchase and (ii) the purchase of Mortgage Assets, including the accumulation of
Mortgage Loans for securitization; 
  
 (c) furnish reports and
statistical and economic research to the Company regarding the Company’s investments and activities and the services performed for the Company by the Manager; 
  
 (d) monitor and provide to the Board of Directors on an on-going basis price information and other data obtained from
certain nationally recognized dealers that maintain markets in Mortgage Assets identified by the Board of Directors from time to time, and provide data and advice to the Board of Directors in connection with the identification of such dealers;

  
 (e) administer the day-to-day operations of the Company and
perform or supervise the performance of such other administrative functions necessary or advisable for the management of the Company as may be agreed upon by the Manager and the Board of Directors including, without limitation, collection of the
Company’s revenues and payment of the Company’s expenses, debts and obligations and maintenance of appropriate computer services to provide such administrative functions; 
  
 (f) communicate on behalf of the Company with the holders of the equity and debt securities of the Company as required to
satisfy the continuous reporting and other requirements of any governmental bodies or agencies to holders of such securities and third parties and to maintain effective relations with such holders of the Company’s securities; 
  

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 (g) designate one or more servicers (each, a “Servicer”) for those Mortgage Loans sold to the
Company by originators or sellers that have elected not to service such loans and arrange for the monitoring and administering of such Servicers; 
  
 (h) advise the Company in connection with policy decisions to be made by the Board of Directors; 
  
 (i) upon request by and in accordance with the directions of the Board of
Directors, invest or reinvest any money of the Company; 
  
 (j)
engage in hedging activities on behalf of the Company consistent with the Company’s qualification as a REIT and with the Guidelines; 
  
 (k) arrange for the issuance of Mortgage Securities from pools of Mortgage Loans acquired by the Company, and provide to the Company itself or through
another appropriate party all services in connection with the creation of Mortgage Securities, including: 
  
 (1) serving as consultant with respect to the structuring of each class or series of Mortgage Securities; 
  
 (2) negotiating the rating requirements with rating agencies with respect to
the rating of each class or series of Mortgage Securities; 
  
 (3) accumulating and reviewing all Mortgage Loans which may secure or constitute the mortgage pool for each class or series of Mortgage Securities; 
  
 (4) negotiating all agreements and credit enhancements with respect to each class or series of Mortgage Securities; 
  
 (5) issuing commitments on behalf of the Company to purchase Mortgage Loans
to be used to secure or constitute the mortgage pool for each class or series of Mortgage Securities; 
  
 (6) organizing and administering activities in connection with the closing of each class or series of Mortgage Securities, including all negotiations and
agreements with underwriters, trustees, servicers, master servicers and other parties; and 
  
 (7) performing such other services as may be required from time to time for completing the creation of each class or series of Mortgage Securities. 
  
 (l) provide to the Company itself or through another appropriate party all services in connection with the administration of
each class or series of Mortgage Securities created by the Company; 
  
 (m) provide the executive and administrative personnel, office space and services required in rendering the foregoing services to the Company; 
  

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 (n) perform such other services as may be required from time to time for management and other activities
relating to the assets of the Company as the Manager shall deem necessary, advisable or appropriate under the particular circumstances; 
  
 (o) cause the Company to qualify to do business in all applicable jurisdictions as may be required from time to time under applicable state and federal
laws; and 
  
 (p) comply with all laws applicable to the Manager
and use its best efforts to cause the Company to comply with all laws applicable to the Company. 
  
 SECTION 3. Additional Activities of Manager. 
  
 (a) Nothing herein shall prevent the Manager or any of its Affiliates from engaging in other businesses or from rendering services of any kind to any
other person or entity, including investment in, or advisory service to others investing in, any type of real estate investment, including investments which meet the principal investment objectives of the Company. Notwithstanding anything elsewhere
in this Agreement to the contrary, the Manager shall not engage in any activity which would cause it to be required to register as an investment advisor under the Investment Advisers Act of 1940. In furtherance thereof, during any twelve (12) month
period, the Manager shall not (i) render investment advice to more than fifteen (15) clients, (ii) hold itself out generally to the public as an investment advisor, or (iii) act as an investment advisor to any investment Company that is registered
under the Investment Company Act. 
  
 (b) Directors, officers,
employees and agents of the Manager or Affiliates of the Manager may serve as directors, officers, employees, agents, nominees or signatories for the Company or any subsidiary of the Company, to the extent permitted by their Governing Instruments,
as from time to time amended, or by any resolutions duly adopted by the Board of Directors pursuant to the Company’s Governing Instruments. When executing documents or otherwise acting in such capacities for the Company, such persons shall use
their respective title in the Company. 
  
 SECTION 4. Bank
Accounts. At the direction of the Board of Directors, the Manager may establish and maintain one or more bank accounts in the name of the Company or any subsidiary of the Company, and may collect and deposit into any such account or accounts,
and disburse funds from any such account or accounts, under such terms and conditions as the Board of Directors may approve; and the Manager shall from time to time render appropriate accountings of such collections and payments to the Board of
Directors and, upon request by the Company, to the auditors of the Company or any subsidiary of the Company. 
  
 SECTION 5. Records; Confidentiality. The Manager shall maintain appropriate books of account and records relating to services performed hereunder,
and such books of account and records shall be accessible for inspection by representatives of the Company or any subsidiary of the Company at any time during normal business hours. The Manager shall keep confidential any and all information it
obtains from time to time in connection with the services it renders under this Agreement and shall not disclose any portion thereof to non-affiliated third parties except with the prior written consent of the Company, or except as may be required
by applicable law or judicial process. 
  

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 SECTION 6. Obligations of Manager. 
  
 (a) The Manager shall require each seller or transferor of Mortgage Assets to the Company to make such representations and
warranties regarding such Mortgage Assets as may be, in the judgment of the Manager, necessary, advisable and appropriate. In addition, the Manager shall take such other action as it deems necessary, advisable or appropriate with regard to the
protection of the Company’s investments. 
  
 (b) The Manager
shall refrain from any action which would adversely affect the status of the Company or, if applicable, any subsidiary of the Company as a REIT or which would violate any law, rule or regulation of any governmental body or agency having jurisdiction
over the Company or any such subsidiary or which would otherwise not be permitted by the Company’s or such subsidiary’s Governing Instruments. If the Manager is ordered to take any such action by the Board of Directors, the Manager shall
promptly notify the Board of Directors of the Manager’s judgment that such action would adversely affect such status or violate any such law, rule or regulation or the Governing Instruments. The Manager, its directors, officers, stockholders
and employees shall not be liable to the Company, any subsidiary of the Company, or the Board of Directors for any act or omission by the Manager, its directors, officers, stockholders or employees except as provided in Section 11 of this Agreement.

  
 SECTION 7. Compensation. 
  
 (a) Annual Base Management Fee. For services rendered under this
Agreement, the Company shall pay to the Manager, an annual base management fee based on the Average Net Invested Assets of the Company and its subsidiaries for each year, payable monthly in arrears, as follows: 
  
 (A) 1.15% of the first $300 million of Average Net Invested Assets, plus

  
 (B) 0.85% of the portion of Average Net Invested Assets above
$300 million. 
  
 The annual base management fee shall be
calculated by the Manager within fifteen (15) days after the end of each month, and such calculation shall be promptly delivered to the Company. The Company shall pay to the Manager the applicable portion of the annual base management fee payable
pursuant to this Section 7(a) for each month within thirty (30) days after the end of each such month. Payments of the applicable portion of the annual base management fee shall be pro rated based on the number of days elapsed during any partial
month. 
  
 (b) Incentive Compensation. In addition to the
annual base management fee, the Manager shall receive as incentive compensation for each fiscal quarter an amount equal to twenty percent (20%) of the Net Income of the Company, before Incentive Compensation, in excess of the amount that would
produce an annualized Return on Equity equal to the Ten Year U.S. Treasury Rate (average of weekly average yield to maturity for U.S. Treasury securities (adjusted to a constant maturity of ten (10) years) as published weekly by the Federal Reserve
Board in publication H.15 during a quarter) plus one percent (1%). The incentive compensation calculation and payment shall be made quarterly in arrears. The Manager shall compute the incentive compensation payable under this Section 7(b) within
forty-five (45) days after the end of each fiscal quarter. The Company shall 

  

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pay the incentive compensation with respect to each fiscal quarter within 15 days following the delivery to the Company of Manager’s written statement
setting forth the computation of the incentive compensation for such quarter. 
  
 (c) If loans are made to the Company by an “Affiliate” (as such term is defined in Rule 12b-2 of the Exchange Act of 1934, as amended) of the Manager, the maximum amount of interest that may be charged by
such Affiliate shall be the prime rate publicly announced by Citibank, N.A. from time to time plus 1% per year. 
  
 (d) Net Income of the Company, solely for purposes of calculating the Manager’s Incentive Compensation under Section 7(b), shall be determined by
calculating net income available to shareholders of Common Stock, in accordance with generally accepted accounting principles (“GAAP”), as determined by the Company’s independent certified public accountants. 
  
 (e) The proceeds from any issue of preferred stock which may from time to
time be created and authorized for issuance by the Board of Directors (the “Preferred Stock”) shall be included in Average Net Invested Assets in calculating the Manager’s annual base management fee under Section 7(a). For calculating
the Manager’s Incentive Compensation, Preferred Stock (other than Preferred Stock issued to Anworth Mortgage Asset Corporation not in an offering involving unrelated third party investors) shall be excluded from Average Net Worth and the
minimum or fixed rate portion of any Preferred Stock (other than Preferred Stock issued to Anworth Mortgage Asset Corporation not in an offering involving unrelated third party investors) dividend shall be deducted from taxable income before
incentive compensation. 
  
 SECTION 8. Expenses of the
Company. The Company or any subsidiary of the Company shall pay all of its expenses as set forth on Section I of Annex A attached, and shall reimburse the Manager for documented expenses of the Manager reasonably incurred on its behalf in
furtherance of the Manager’s responsibilities under this Agreement. The reimbursable expenses of the Manager shall include, without limitation, the amount of any California Gross Receipts Tax which the Manager becomes obligated to pay based on
the annual base management fees, incentive compensation and any other receipts which the Manager derives in connection with its service to the Company. The Manager shall be responsible for its own costs of operation set forth under Section II of
Annex A. 
  
 SECTION 9. Annual Operating Expenses Limitation
Requiring Reimbursement by the Manager. 
  
 (a) Subject to
the adjustment as provided in paragraph (b), expenses incurred by the Manager on behalf of the Company shall be reimbursed monthly to the Manager within 30 days after the end of each month. The Manager shall prepare a statement documenting the
expenses of the Company and those incurred by the Manager on behalf of the Company during each month, and shall deliver such statement to the Company within 15 days after the end of each month. 
  
 (b) Within 120 days after the end of each of the Company’s fiscal years,
the Manager shall reimburse the Company for any expense reimbursement received by the Manager from the Company hereunder with respect to such fiscal year to the extent that the Operating Expenses (as defined in Annex A attached hereto) of the
Company for such fiscal year exceed the 

  

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greater of 2% of its Average Net Invested Assets or 25% of its Net Income for such fiscal year; unless a majority of the Board of Directors determines that,
based upon such unusual or nonrecurring factors which they deem sufficient, a higher level of expenses is justified for such fiscal year, in which case, such expenses shall be payable to the Manager in succeeding fiscal years to the extent that the
expenses of the Company are less than the greater of 2% of its Average Net Invested Assets or 25% of its Net Income for such fiscal year. The determination of Net Income for any period for purposes of calculating the expense limitation will be the
same as for calculating the Manager’s incentive compensation, except that the determination of Net Income for purposes of calculating the expense limitation will include any incentive compensation payable for such period. The amount of any
Gross Receipts Tax reimbursed by the Company to the Manager pursuant to Section 8 above, as well as the other costs and expenses enumerated under Section II of Annex A attached hereto, are not Operating Expenses and are not subject to the operating
expense limitation set forth above. 
  
 SECTION 10. Monitoring
Servicing. The Manager will monitor and administer the servicing of the Company’s Mortgage Loans, other than loans pooled to back Mortgage Securities. Such monitoring and administrative services will include, but not be limited to, the
following activities: serving as the Company’s consultant with respect to the servicing of loans; collection of information and submission of reports pertaining to the Mortgage Loans and to moneys remitted to the Manager or the Company by
Servicers; periodic review and evaluation of the performance of each servicer to determine its compliance with the terms and conditions of the applicable servicing agreement and, if deemed appropriate, recommending to the Company the termination of
such servicing agreement; acting as a liaison between Servicers and the Company and working with servicers to the extent necessary to improve their servicing performance; review of and recommendations as to fire losses, easement problems and
condemnation, delinquency, foreclosing and other reports on Mortgage Loans; supervising claims filed under any mortgage insurance policies; and enforcing the obligation of any servicer to repurchase Mortgage Loans from the Company. The Manager may
enter into subcontracts with other parties, including its Affiliates, to provide any such services for the Manager; provided however, all such subcontractors shall then be subject to the terms of this Agreement and the Manager shall
provide written notice of such subcontracts to the Company; and, provided further, in no event shall any such subcontracts or subcontractors contravene the Manager’s obligations and limitations set forth in Section 3(a) of this
Agreement. 
  
 SECTION 11. Limits of Manager
Responsibility. 
  
 (a) The Manager assumes no responsibility
under this Agreement other than to render the services called for hereunder in good faith and shall not be responsible for any action of the Board of Directors in following or declining to follow any advice or recommendations of the Manager. The
Manager, its members, managers, officers and employees will not be liable to the Company, any subsidiary of the Company, the Board of Directors or the Company’s or its subsidiary’s stockholders for any acts or omissions by the Manager, its
members, managers, officers or employees under or in connection with this Agreement, except by reason of acts constituting bad faith, willful misconduct, gross negligence or reckless disregard of their duties. The Company shall reimburse, indemnify
and hold harmless the Manager, its members, managers, officers and employees of and from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including, without limitation, attorneys’ fees)
in respect of or arising from any acts or omissions of the Manager, its members, managers, officers and employees made in good faith in the performance of the Manager’s duties under this Agreement and not constituting bad faith, willful
misconduct, gross negligence or reckless disregard of its duties. 
  

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 (b) The Manager shall reimburse, indemnify and hold harmless the Company, any subsidiary, or any of their
stockholders, directors, officers and employees from any and all expenses, losses, damages, liabilities, demands, charges and claims (including, without limitation, attorneys’ fees) arising out of any intentional misstatements of fact made by
the Manager in connection with the issuance of commitments to purchase Mortgage Assets on behalf of the Company and the purchase of Mortgage Assets by the Company resulting from such commitments. 
  
 SECTION 12. No Joint Venture. The Company and the Manager are not
partners or joint venturers with each other and nothing herein shall be construed to make them such partners or joint venturers or impose any liability as such on either of them. 
  
 SECTION 13. Term; Termination. 
  
 (a) This Agreement shall commence on the Agreement Date and shall continue in force until the next regularly scheduled Board
of Directors meeting of the Company following the tenth anniversary of the Agreement Date, and thereafter, it may be extended only with the consent of the Manager and by the affirmative vote of a majority of the Board of Directors. Each extension
shall be executed in writing by the parties hereto before the expiration of this Agreement or any extension thereof. Each such extension shall not exceed a term of ten years. Notwithstanding any other provision to the contrary, this Agreement, or
any extension hereof, may be terminated by the Company, upon 60 days written notice, by majority vote of the Board of Directors or by majority vote of the Stockholders. If this Agreement is terminated pursuant to this Section 13, such termination
shall be subject to the provisions of Section 16 of this Agreement. 
  
 (b) Name Change Upon Termination of Management Agreement. The Company agrees that, if at any time the Manager or any Affiliate of the Manager shall cease to serve generally as Manager of the Company or any Subsidiary, upon receipt of
a written request of the Manager, the Company and such Subsidiary will cause their governing instruments, including articles of incorporation and by-laws, to be amended so as to change the name of the Company or such Subsidiary to a name that does
not include “Belvedere” or any approximation thereof. 
  
 (c) The Board of Directors shall determine at least annually that the compensation paid to the Manager is reasonable in relation to the nature and quality of services performed and also shall supervise performance of the Manager and the
compensation paid to it to determine that the provisions of this Agreement are being carried out. The Board of Directors shall also determine at least annually that the total fees and expenses of the Company are reasonable in light of all relevant
factors. Each such determination shall be based upon the following factors and all other factors the Board of Directors may deem relevant and the findings of the Board of Directors on each of such factors shall be recorded in the minutes of the
Board of Directors: 
  
 (1) the size of the management fee in
relation to the size, compensation and profitability of the investment portfolio of the Company; 
  
 (2) the success of the Manager in generating opportunities that meet the investment objectives of the Company; 
  

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 (3) the rates charged to other real estate investment trusts and to other investors by advisors
performing similar services; 
  
 (4) additional revenues realized
by the Manager and its affiliates through their relationship with the Company whether paid by the Company or by others with whom the Company does business; 
  
 (5) the quality and extent of service and advice furnished to the Company; 
  
 (6) the performance of the investment portfolio of the Company, including income, conservation or appreciation of capital,
frequency of problem investments and competence in dealing with distress situations; and 
  
 (7) the quality of the investment portfolio of the Company. 
  
 SECTION 14. Assignments. 
  
 (a) Except as set forth in Section 13(b) of this Agreement, this Agreement shall terminate automatically in the event of its assignment, in whole or in part, by the Manager, unless the Company (with the approval of a majority of the Board
of Directors) consents to such assignment in advance. Any such assignment shall bind the assignee hereunder in the same manner as the Manager is bound. In addition, the assignee shall execute and deliver to the Company a counterpart of this
Agreement naming such assignee as Manager. This Agreement shall not be assigned by the Company without the prior written consent of the Manager, except in the case of assignment by the Company to a REIT or other organization which is a successor (by
merger, consolidation or purchase of assets) to the Company, in which case such successor organization shall be bound hereunder and by the terms of such assignment in the same manner as the Company is bound hereunder. 
  
 (b) Notwithstanding any provision of this Agreement to the contrary, subject
to Section 3(a), the Manager may subcontract and assign any or all of its responsibilities under Sections 2(k), 2(l) and 10 of this Agreement to any of its Affiliates, and the Company hereby consents to any such assignment and subcontracting.

  
 SECTION 15. Termination by Company for Cause. At the
option of the Company, this Agreement shall be and become terminated upon 60 days written notice of termination from the Board of Directors to the Manager if any of the following events shall occur: 
  
 (a) if the Manager shall violate any provision of this Agreement and, after
written notice of such violation, shall not cure such violation within 30 days; 
  
 (b) there is entered an order for relief or similar decree or order with respect to the Manager by a court having competent jurisdiction in an involuntary case under the federal bankruptcy laws as now or hereafter
constituted or under any applicable federal or state bankruptcy, insolvency or other similar laws; or the Manager (i) ceases, or admits in writing its inability to pay its debts as they become due and payable, or makes a general assignment for the
benefit of, or enters into any composition or arrangement with, creditors; (ii) applies for, or consents (by admission of material allegations of a petition or otherwise) to the appointment of a receiver, trustee, assignee, 

  

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custodian, liquidator or sequestrator (or other similar official) of the Manager or of any substantial part of its properties or assets, or authorizes such
an application or consent, or proceedings seeking such appointment are commenced without such authorization, consent or application against the Manager and continue undismissed for 30 days; (iii) authorizes or files a voluntary petition in
bankruptcy, or applies for or consents (by admission of material allegations of a petition or otherwise) to the application of any bankruptcy, reorganization, arrangement, readjustment of debt, insolvency, dissolution, liquidation or other similar
law of any jurisdiction, or authorizes such application or consent, or proceedings to such end are instituted against the Manager without such authorization, application or consent and are approved as properly instituted and remain undismissed for
30 days or result in adjudication of bankruptcy or insolvency; or (iv) permits or suffers all or any substantial part of its properties or assets to be sequestered or attached by court order and the order remains undismissed for 30 days; or

  
 (c) If any of the events specified in Section 15(b) of this
Agreement shall occur, the Manager shall give prompt written notice thereof to the Board of Directors upon the occurrence of such event. 
  
 SECTION 16. Action Upon Termination. 
  
 (a) From and after the effective date of termination of this Agreement, pursuant to Sections 13, 14 or 15 of this Agreement, the Manager shall not be
entitled to compensation for further services hereunder, except pursuant to any separate written management termination agreement that may hereafter be negotiated by the parties, but shall be paid all compensation accruing to the date of
termination, including deferred incentive compensation which is recoverable in accordance with Section 7(e) of this Agreement. Upon such termination, the Manager shall forthwith: 
  
 (1) after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled, pay over to
the Company or any subsidiary of the Company all money collected and held for the account of the Company or any subsidiary of the Company pursuant to this Agreement; 
  
 (2) deliver to the Board of Directors a full accounting, including a statement showing all payments collected by it and a
statement of all money held by it, covering the period following the date of the last accounting furnished to the Board of Directors with respect to the Company or any subsidiary of the Company; 
  
 (3) pay to the Company all sums set forth on the accounting referenced in
(b) above; and 
  
 (4) deliver to the Board of Directors all
property and documents of the Company or any subsidiary of the Company then in the custody of the Manager. 
  
 (b) Upon the occurrence of (i) an Acquisition Event (as defined below) or (ii) the termination of this Agreement by the Company (in either case, a
“Termination Event”), other than a termination for cause on the grounds set forth in Section 15 of this Agreement, the Company agrees to, and shall be obligated to, acquire and pay for substantially all of the assets of the Manager (the
“Reorganization”). The Reorganization shall be effected in a transaction intended to qualify, in the 

  

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opinion of the Company’s certified public accountants, as a pooling of interests for financial accounting purposes if such treatment is then available
and, in the determination of the Company, advisable. In consideration for the Reorganization, the Company shall issue to the Manager an amount of [publicly registered] shares of Common Stock of the Company, calculated as follows: 
  
 (1) The Manager will retain an independent certified public accountant
mutually acceptable to the Company and the Manager to prepare in accordance with generally accepted accounting principals on the cash receipts and disbursements method of accounting audited financial statements for the three 12 month periods (the
“Statements”) over the thirty-six month period ending with the most recently completed calendar quarter (the “Measuring Period”). The Statements will show gross revenues received by the Manager less all expenses (excluding bonus
payments to the Manager’s employees and affiliates) paid by the Manager during the Measuring Period. 
  
 (2) The Company will issue to the Manager as payment for the Reorganization that number of shares of Common Stock of the Company equal to 120% of the
quotient of the Manager’s net profit (excluding bonus payments to the Manager’s employees and affiliates) on the Statement for the 12 month period showing the highest net profit during the Measuring Period, divided by the dividend per
share declared by the Company during the most recent fiscal quarter in which a dividend was declared, on an annualized basis; provided, however, that such Reorganization payment shall not be less than the sum of $5 million for each $100 million of
equity capital attributable to the Company’s Common Stock and preferred stock. 
  
 (3) “Acquisition Event” means a merger, consolidation, or reorganization between the Company and another entity with the Company being either the surviving entity or the acquired entity, or the transfer of
assets into the Company for stock or other equity securities of the Company, or securities exercisable or convertible into equity securities by any person or entity, other than any subsidiary or benefit plan of the Company. 
  
 (4) The Company shall at all times keep and maintain an adequate reserve of
authorized but unissued shares available to fulfill the obligation to issue shares pursuant to the Reorganization. 
  
 (5) Upon the occurrence of an Acquisition Event, the Company shall promptly file a registration statement and use its best efforts to cause such
registration statement to become effective under the Securities Act of 1933, as amended, with respect to the public offering and distribution of such shares reserved for issuance pursuant to the Reorganization. 
  
 (6) The Company and the Manager will, as soon as possible after the
occurrence of an Acquisition Event, but in no event later than 60 days after the Acquisition Event, take all necessary corporate action to consummate and close the Reorganization, including the Company’s issuance of the shares of common stock
to the Manager as determined in paragraph (2) above. 
  
 SECTION
17. Release of Money or Other Property Upon Written Request. The Manager agrees that any money or other property of the Company or any subsidiary of the Company held by the Manager under this Agreement shall be held by the Manager as
custodian for the Company or 

  

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such subsidiary, and the Manager’s records shall be appropriately marked clearly to reflect the ownership of such money or other property by the Company
or such subsidiary. Upon the receipt by the Manager of a written request signed by a duly authorized officer of the Company requesting the Manager to release to the Company or any subsidiary of the Company any money or other property then held by
the Manager for the account of the Company or any subsidiary of the Company under this Agreement, the Manager shall release such money or other property to the Company or any subsidiary of the Company within a reasonable period of time, but in no
event later than 30 days following such request. The Manager shall not be liable to the Company, any subsidiary of the Company, the Board of Directors, or the Company’s stockholders for any acts performed or omissions to act by the Company or
any subsidiary of the Company in connection with the money or other property released to the Company or any subsidiary of the Company in accordance with this Section. Subject to the foregoing, the Company shall indemnify the Manager, its members,
managers, officers and employees against any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in connection with the Manager’s release of such money or other property to the
Company or any subsidiary of the Company in accordance with the terms of this Section 17. Indemnification pursuant to this provision shall be in addition to any right of the Manager to indemnification under Section 11 of this Agreement. 

 
 SECTION 18. Representations and Warranties. 
  
 (a) The Company hereby represents and warrants to the Manager as follows:

  
 (1) The Company is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation, has the corporate power to own its assets and to transact the business in which it is now engaged and is duly qualified as a foreign corporation and in good standing under the
laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except for failures to be so qualified, authorized or licensed that could not in the aggregate have a material adverse
effect on the business, operations, assets or financial condition of the Company and its subsidiaries, taken as a whole. The Company does not do business under any fictitious business name. 
  
 (2) The Company has the corporate power and authority to execute, deliver
and perform this Agreement and all obligations required hereunder and has taken all necessary corporate action to authorize this Agreement on the terms and conditions hereof and the execution, delivery and performance of this Agreement and all
obligations required hereunder. No consent of any other person including, without limitation, stockholders and creditors of the Company, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing
or declaration with, any governmental authority is required by the Company in connection with this Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and all obligations required hereunder. This Agreement
has been, and each instrument or document required hereunder will be, executed and delivered by a duly authorized officer of the Company, and this Agreement constitutes, and each instrument or document required hereunder when executed and delivered
hereunder will constitute, the legally valid and binding obligation of the Company enforceable against the Company in accordance with its terms. 
  

 -12- 

 (3) The execution, delivery and performance of this Agreement and the documents or instruments required
hereunder, will not violate any provision of any existing law or regulation binding on the Company, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding on the Company, or the Governing Instruments of,
or any securities issued by the Company or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Company is a party or by which the Company or any of its assets may be bound, the violation of which
would have a material adverse effect on the business operations, assets or financial condition of the Company and its subsidiaries, taken as a whole, and will not result in, or require, the creation or imposition of any lien on any of its property,
assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking. 
  
 (4) Nothing in this Agreement shall or is intended to contravene any fact or representation set forth in any prospectus, registration statement, annual
report or quarterly report as filed by the Company with the Securities and Exchange Commission. 
  
 (b) The Manager hereby represents and warrants to the Company as follows: 
  
 (1) The Manager is duly organized, validly existing and in good standing under the laws of the jurisdiction of its
formation, has the limited liability company power to own its assets and to transact the business in which it is now engaged and is duly qualified to do business and is in good standing under the laws of each jurisdiction where its ownership or
lease of property or the conduct of its business require such qualification, except for failures to be so qualified, authorized or licensed that could not in the aggregate have a material adverse effect on the business operations, assets or
financial condition of the Manager and its subsidiaries, taken as a whole. The Manager does not do business under any fictitious business name. 
  
 (2) The Manager has the limited liability company power and authority to execute, deliver and perform this Agreement and all obligations required
hereunder and has taken all necessary limited liability company action to authorize this Agreement on the terms and conditions hereof and the execution, delivery and performance of this Agreement and all obligations required hereunder. No consent of
any other person including, without limitation, members and creditors of the Manager, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is
required by the Manager in connection with this Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and all obligations required hereunder. This Agreement has been, and each instrument or document required
hereunder will be executed and delivered by a duly authorized agent of the Manager, and this Agreement constitutes, and each instrument or document required hereunder when executed and delivered hereunder will constitute, the legally valid and
binding obligation of the Manager enforceable against the Manager in accordance with its terms. 
  
 (3) The execution, delivery and performance of this Agreement and the documents or instruments required hereunder, will not violate any provision of any
existing law or regulation binding on the Manager, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding on the Manager, or any securities issued by the Manager or of any mortgage, indenture, lease,
contract or other agreement, instrument or undertaking to which the Manager is a party or by which the Manager or any of its assets may be bound, the violation of 

  

 -13- 

 
which would have a material adverse effect on the business operations, assets or financial condition of the Manager and its subsidiaries, taken as a whole,
and will not result in, or require, the creation or imposition of any lien on any of its property assets or revenues pursuant to the provisions of any such mortgage indenture, lease, contract or other agreement, instrument or undertaking.

  
 SECTION 19. Notice. Unless expressly provided otherwise
herein, all notices, request, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given, made and received when delivered against receipt or upon actual receipt of
registered or certified mail, postage prepaid, return receipt requested. The parties may deliver to each other notice by electronically transmitted facsimile copies (“Fax”) provided that such Fax notice is followed within twenty-four (24)
hours by any type of notice otherwise provided for in this paragraph. Any notice shall be duly addressed to the parties as follows: 
  

	 If to the Company:
	 	1299 Ocean Avenue, Suite 250
	 	 	Santa Monica, CA 90401
	 	 	Attention: Joseph Lloyd McAdams
		
	 Copy to:
	 	Mark J. Kelson, Esq.
	 	 	Allen Matkins Leck Gamble & Mallory LLP
	 	 	1901 Avenue of the Stars, Suite 1800
	 	 	Los Angeles, CA 90067
		
	 If to the Manager:
	 	1299 Ocean Avenue, Suite 260
	 	 	Santa Monica, CA 90401
	 	 	Attention: Thad M. Brown
		
	 Copy to:
	 	Mark J. Kelson, Esq.
	 	 	Allen Matkins Leck Gamble & Mallory LLP
	 	 	1901 Avenue of the Stars, Suite 1800
	 	 	Los Angeles, CA 90067

  
 Either party may alter
the address to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section 19 for the giving of notice. 
  
 SECTION 20. Binding Nature of Agreement; Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns as provided herein. 
  
 SECTION 21. Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject
matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof
control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing approved by the Company (including a majority of
the Independent Board of Directors) and the Manager. 
  

 -14- 

 SECTION 22. Controlling Law. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement shall be governed by and construed, interpreted and enforced in accordance with the laws of the State of California, notwithstanding any California or other conflict of law provisions to the contrary.

  
 SECTION 23. Schedules and Exhibits. All Schedules and
Exhibits referred to herein or attached hereto are hereby incorporated by reference into, and made a part of, this Agreement. 
  
 SECTION 24. Indulgences, Not Waivers. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  
 SECTION 25. Titles Not to Affect Interpretation. The titles of
paragraphs and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof. 
  
 SECTION 26. Execution in Counterparts. This Agreement may be executed
in any number of counterparts, including electronically transmitted counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same
instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 
  
 SECTION 27. Provisions Separable. The provisions of this Agreement are
independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

  
 SECTION 28. Gender. Words used herein regardless of the
number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
  
 SECTION 29. Computation of Interest. Interest will be computed on the
basis of a 360-day year consisting of twelve months of thirty days each. 
  

 -15- 

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

	 “Company”

	
	 BELVEDERE TRUST MORTGAGE
 CORPORATION
 a Maryland corporation

		
	 By:
	 	 /s/ Claus Lund

	 	 	 Claus Lund, Chief Executive Officer

  

	
	 “Manager”

	
	 BT MANAGEMENT COMPANY, LLC,
 a Delaware limited liability company

		
	 By:
	 	 /s/ Joseph Lloyd McAdams

	 	 	 Joseph Lloyd McAdams, President

  

 -16- 

 ANNEX A 
  
 DEFINITION OF “OPERATING EXPENSES” 
  
 I. The term Operating Expenses means all of the ordinary and necessary operating expenses of the Company and of each subsidiary of the Company of every
type including, but not limited to, costs of originating loans directly, acquiring loans through correspondent, bulk or other loan acquisition channels, securitizing, selling, hedging, owning, carrying, servicing and monitoring the servicing or
subservicing of, and disposing of the Company’s portfolio of mortgage loans, mortgage securities and other assets, including the costs of software and costs of equipment related thereto, and costs of organizing any subsidiary of the Company,
costs of issuing, servicing, paying dividends or interest on, selling or reacquiring any instrument or security or mortgage asset (whether or not a security), costs preparatory to entering into a business or activity, costs of winding up or
disposing of a business or activity, interest, points, fees, finance costs, costs of maintaining compliance with governmental requirements of any type, taxes, losses, bad debts of any type, in each case incurred by or on behalf of the Company or any
subsidiary regardless whether such expenses and costs would be treated as current costs or expenses for tax purposes or under generally accepted accounting principles. Such costs and expenses shall include all compensation costs, equipment and a pro
rata portion of overhead expenses of the personnel employed by the Manager, the Company or any subsidiary to perform the foregoing services for the Company and its subsidiaries, other than as set forth in Section II below. 
  
 II. The term “Operating Expenses” of the Company shall not include
the following: 
  
 (A) employment expenses of the
Manager’s personnel who are performing management services for the Manager (including Directors, officers, and employees of the Company who are managers, directors, officers, or employees of the Manager or its Affiliates), other than the
expenses of those employee services listed in Section I above; and 
  
 (B) rent, telephone, utilities, and office equipment, furnishings and other office and overhead related expenses of the Manager in connection with those employees providing management services for the Manager.

  

 -1-Employment Agreement dated November 3, 2003 Claus Lund

 EXHIBIT 10.20 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of November 3, 2003, is by and between, BT MANAGEMENT COMPANY, L.L.C., a Delaware
limited liability company (the “Company”), and Claus Lund (the “Executive”). 
  
 R E C I T A L S : 
  
 A. The Company wishes to have the services of the Executive, and the Executive wishes to be employed by the Company as contemplated by this Agreement; and

  
 B. The Company and the Executive desire to establish the terms
and conditions of the Executive’s services and employment as set forth herein. 
  
 C. Capitalized terms used herein without definition shall have the meanings ascribed thereto in the BT Management Company LLC Operating Agreement dated of even date herewith (the “Operating Agreement”).

  
 A G R E E M E
N T : 
  
 NOW, THEREFORE, in consideration of the
mutual covenants and obligations hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Employment. The Executive hereby agrees to be
employed by the Company, and the Company hereby agrees to employ the Executive, upon the terms and conditions hereinafter set forth. 
  
 2. Term. Subject to the provisions of Sections 6, 7, and 8 hereof, the term of the provision of services
hereunder will be for the three (3) year period commencing on November 3, 2003 (the “Commencement Date”) and ending on the third anniversary of the Commencement Date. Unless the Company gives notice of its intent not to renew the
Executive’s assignment and employment hereunder, or the Executive gives written notice to the Company of his determination not to renew his service and employment hereunder, in any case at least ninety (90) days prior to the third anniversary
of the Commencement Date, this Agreement, and the Executive’s employment by the Company hereunder, shall be renewed for one year from that anniversary. Thereafter, unless the Company or the Executive gives written notice of determination not to
renew at least ninety (90) days prior to the next succeeding anniversary of the Commencement Date, this Agreement shall be renewed for one year from that anniversary. The term “Service Period” shall mean the three (3) year period provided
for in this Section 2 and any extension thereof, or any shorter period resulting from any termination of service under Sections 6, 7 and 8 hereof. 
  
 3. Duties and Responsibilities. The Executive will be the President of the Company. The Executive will
perform such duties and services as are customary for the position of President in 

 
companies similar to the Company, subject to such duties as are set forth in the Operating Agreement, if any, and such other duties as may be assigned to him
from time to time by the Company’s Board of Managers (the “Board”) or its designee. In furtherance of the foregoing, the Executive hereby agrees to perform well and faithfully such duties and responsibilities and the other
reasonable duties and responsibilities assigned to him from time to time by the Board or its designee and shall conform to and/or comply with all rules, regulations, instructions, personnel practices and policies of the Company, whether now in force
or hereafter adopted. 
  
 4. Time to be Devoted to
Service. The Executive agrees to devote his entire productive time, ability and attention to the diligent prosecution of the business and affairs of the Company. During the Service Period, Executive shall not directly or indirectly render
any services of a business or commercial nature to any person, firm, or organization other than the Company, whether for compensation or otherwise, without the prior written consent of the Board. Notwithstanding the foregoing, it is understood that
the Executive may conduct personal business activities that do not relate to the business of the Company and may engage in charitable, civic and other similar pursuits, if such activities do not interfere with his duties for the Company or conflict
with its interests or his obligations hereunder. 
  
 5.
Compensation; Reimbursement. 
  
 5.1
Base Salary. The Executive’s annual base salary (the “Base Salary”) will be $75,000. The Base Salary will be payable in such installments as are applicable to employees of the Company at substantially the same
service level as the Executive. 
  
 5.2
Performance-Based Compensation. Pursuant to the Management Agreement (the “Management Agreement”) dated of even date herewith by and between the Company and Belvedere Trust Mortgage Company (“Belvedere
Trust”), the Company receives incentive fee revenue which is based on Belvedere Trust’s return on equity relative to a benchmark as set forth in the Management Agreement (the “Incentive Fee Revenue”). The Executive
shall be eligible to participate in the distribution of the portion of the Company’s Incentive Fee Revenue that is available after required distributions to the Company’s members are made. The allocation of the amount of the Company’s
Incentive Fee Revenue to the Executive shall be determined by theBoard which shall take into account the recommendation of senior management along with the Board’s evaluation of the Executive’s direct contribution to the excess returns
which produced the Incentive Fee Revenue for the Company in any particular measurement period. 
  
 5.3 Benefit Plans. The Executive shall be entitled to participate in any benefit plans available to other executive employees of the Company, subject to any restrictions (including waiting
periods) specified in such plans. The Company shall make commercially reasonable efforts to obtain medical and disability insurance, and such other forms of insurance as the Board of Directors shall from time to time determine, for its employees.

  
 5.4 Vacation. The Executive shall be
entitled to four (4) weeks of paid vacation per calendar year during the Service Period, with such vacation to be scheduled and taken in accordance with the Company’s standard vacation policies. Such vacation time shall not accrue. 

 

 -2- 

 5.5 Reimbursements. The Executive will be reimbursed, in accordance with the
practice applicable to officers of the Company from time to time, for all reasonable and necessary traveling expenses and other disbursements incurred by him for or on behalf of the Company in the performance of his duties hereunder upon
presentation by the Executive of appropriate vouchers. 
  
 5.6
Reservation. Company reserves the right to modify, suspend or discontinue the above referenced benefit plans, practices, policies and programs under Sections 5.3, 5.4 and 5.5 at any time (whether before or after termination of
employment) without notice to or recourse by Executive so long as such action is taken generally with respect to other similarly situated peer executives and does not single out Executive. 
  
 6. Involuntary Termination. 
  
 6.1 Death or Disability. If the Executive dies, then
the Executive’s employment by the Company hereunder shall be deemed to terminate on the date of the Executive’s death. If, in the good faith judgment of the Board, the Executive is incapacitated or disabled by accident, sickness or
otherwise so as to render him mentally or physically incapable of performing the services required to be performed by him under this Agreement for a period of ninety (90) consecutive days or longer, or for ninety (90) days during any 360 day period
(such condition being herein referred to as “Disability”), the Company, at its option, may terminate the Executive’s employment under this Agreement immediately upon giving him or his guardian notice to that effect. Termination
pursuant to this Section 6.1 is hereinafter referred to as an “Involuntary Termination.” 
  
 6.2 Substitution. The Board may designate another employee to act in the Executive’s place during any period of the
Executive’s Disability during the Service Period. 
  
 6.3
Verification of Disability. If any question shall arise as to whether during any period the Executive is disabled through any illness, injury, accident or condition of either a physical or psychological nature so as to be unable to
perform substantially all of the Executive’s duties and responsibilities hereunder, the Executive may, and at the request of the Company shall, submit to a medical examination by a physician selected by the Company to whom the Executive or the
Executive’s guardian has no reasonable objection to determine whether the Executive is so disabled and such determination shall for the purposes of this Agreement be conclusive of the issue. If such question shall arise and Executive shall fail
to submit to such medical examination, the Company’s determination of the issue shall be binding on the Executive. 
  
 7. Termination by the Company. 
  
 7.1 Termination For Cause. The Company may terminate the service of the Executive hereunder at any time during the Service Period for
“Cause” (such termination being called a “Termination for Cause”) by giving the Executive notice of such termination, which notice shall specify: (i) the basis for termination, upon the giving of which such termination
shall take effect immediately. For the purpose of this Section 7, “Cause” will mean: (a) the Executive’s willful misconduct or gross negligence with respect to the business and affairs of the Company or any subsidiary or
affiliate thereof, (b) the Executive’s gross or habitual neglect in the performance of his duties, (c) the Executive’s material breach of his duties, obligations and responsibilities under this Agreement, or of any provision of the
Nonsolicitation Agreement which, to the extent curable, is 

  

 -3- 

 
not cured in full within five (5) business days after written notice thereof is given to the Executive, (d) the commission by the Executive of an act
involving moral turpitude or fraud, (e) the Executive’s conviction of (or entering a plea of nolo contendere to) any felony, or of any misdemeanor involving fraud, theft, embezzlement, forgery or moral turpitude, or (f) the Executive’s
breach of his duty of trust or fiduciary duty owing to the Company. 
  
 7.2 Termination Without Cause. The Company may terminate the services of the Executive hereunder at any time during the Service Period without “Cause” (such termination being called a “Termination
Without Cause”) by giving the Executive notice of such termination, upon the giving of which such termination shall take effect immediately. Any termination by the Company of the Executive’s services hereunder during the Service Period
for which “Cause” is not present, as set forth in Section 7.1, shall be deemed to be a Termination Without Cause. 
  
 7.3 Termination by the Executive. 
  
 (i) For Good Reason. The Executive may terminate his services hereunder at any time during the Service Period for Good Reason (as
defined below) by giving the Company written notice of such termination, which notice shall specify: (a) the basis for termination and (b) the effective date of termination (such termination being hereinafter referred to as a “Termination
for Good Reason”). For purposes of this Agreement, the term “Good Reason” shall mean (A) the relocation of the Company’s San Francisco Bay Area headquarters to a location more than one hundred (100) miles from the
Company’s current San Francisco Bay Area headquarters, (B) the assignment to the Executive of a lower position in the organization in terms of his title, responsibility or authority, unless agreed to in writing by the Executive, or (C) a
reduction in the Executive’s compensation as set forth in this Agreement, other than a general reduction affecting all similarly situated executives of the Company. 
  
 (ii) Without Good Reason. The Executive may terminate his services hereunder at any time during the
Service Period by giving the Company ninety (90) days prior written notice of such termination. Any termination of the Executive’s services hereunder by the Executive other than as a result of an Involuntary Termination is called a
“Voluntary Termination”. 
  
 8.
Effect of Termination. 
  
 8.1
Voluntary Termination or a Termination for Cause. Upon the termination of the Executive’s services hereunder pursuant to a Voluntary Termination or a Termination for Cause, neither the Executive nor his beneficiary or estate
will have any further rights or claims against the Company, its affiliates, or its subsidiaries under this Agreement except to receive: 
  
 (i) any unpaid portion of the Base Salary provided for in Section 5.1 and any accrued vacation owing Executive, computed on a pro rata
basis to the date of such termination; and 
  
 (ii)
reimbursement for any expenses for which the Executive has not been reimbursed as provided in Section 5.3. 
  

 -4- 

 8.2 Termination without Cause, Termination for Good Reason or Involuntary
Termination. Upon the termination of the Executive’s services hereunder pursuant to a Termination without Cause, Termination for Good Reason or due to Involuntary Termination, neither the Executive nor his beneficiary or estate will
have any further rights or claims against the Company, its affiliates or its subsidiaries under this Agreement except to receive: 
  
 (i) any unpaid portion of the Base Salary provided for in Section 5.1 and any accrued vacation owing Executive, computed on a pro rata
basis to the date of such termination; 
  
 (ii)
reimbursement for any expenses for which the Executive has not been reimbursed as provided in Section 5.3; 
  
 (iii) an aggregate amount equal to the Base Salary for twelve (12) months after termination (the “Severance Period”), payable at
the same rate and in the same manner as set forth in Section 5.1; and 
  
 (iv) an aggregate amount equal to the performance-based compensation paid to the Executive under Section 5.2 for the last completed calendar year, payable during in twenty four equal installments during
the Severance Period at the same times as the Executive receives payments under subsection (iii) above. 
  
 8.3 COBRA Benefits. To the extent required by law, the Company shall permit the Executive to participate, at the Executive’s own
expense, in the Company’s group medical insurance plan for the statutorily required time period after the Termination Date, subject to the terms of the applicable plan documents and other applicable restrictions relating to such plan.

  
 8.4 Liquidated Damages. The parties
acknowledge and agree that damages which will result to the Executive for termination by the Company without Cause or other breach of this Agreement by the Company shall be extremely difficult or impossible to establish or prove, and agree that the
payments made to the Executive during the Severance Period shall constitute liquidated damages for any breach of this Agreement by the Company through the Termination Date. The Executive agrees that, except for such other payments and benefits to
which the Executive may be entitled as expressly provided by the terms of this Agreement or any applicable benefit plan, such liquidated damages shall be in lieu of all other claims that the Executive may make by reason of termination of his
employment or any such breach of this Agreement and that, as a condition to receiving payments during the Severance Period, the Executive will execute a release of claims in a form reasonably satisfactory to the Company. 
  
 8.5 Mitigation. The parties hereto agree that the
Executive shall be required to mitigate damages in respect of any termination benefit, severance pay or payment due under this Agreement or in respect of any damage award as a result of the Company’s breach of this Agreement, and any such
benefit or award may be offset by any future compensation or income received by the Executive from any other source. 
  
 9. Nonsolicitation and Non-Disclosure Agreement. As a pre-condition to the effectiveness of this Agreement, the Executive agrees to
execute and deliver the Nonsolicitation and Non-Disclosure Agreement attached hereto as Exhibit A (the “Nonsolicitation Agreement”), the terms and conditions of which are specifically incorporated herein by reference. The
obligation of 

  

 -5- 

 
the Company to make payments to or on behalf of the Executive under Section 8.2(iii) above is expressly conditioned upon the Executive’s
continued performance of the Executive’s obligations under the Nonsolicitation Agreement. 
  
 10. Enforcement. It is the desire and intent of the parties hereto that the provisions of this Agreement will be enforced to the fullest extent permissible under the laws and public policies
applied in each jurisdiction in which enforcement is sought. Accordingly, to the extent that a restriction contained in this Agreement is more restrictive than permitted by the laws of any jurisdiction whose law may be deemed to govern the review
and interpretation of this Agreement, the terms of such restriction, for the purpose only of the operation of such restriction in such jurisdiction, will be the maximum restriction allowed by the laws of such jurisdiction and such restriction will
be deemed to have been revised accordingly herein. A court having jurisdiction over an action arising out of or seeking enforcement of any restriction contained in this Agreement may modify the terms of such restriction in accordance with this
Section 10. The parties hereto agree that a breach of this Agreement could result in immediate, extraordinary and irreparable damage to the Company and that money damages would be an inadequate remedy for any breach of this Agreement. As a
result, in the event of a breach or threatened breach of this Agreement, the Company or its successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security therefor). 
  
 11. Notices. All notices, demands and other communications which are required to be given, served or
sent pursuant to this Agreement will be in writing and will be delivered personally or sent by air courier or first class certified or registered mail, return receipt requested and postage prepaid, addressed as follows: 
  
 If to the Executive: 
  
 176 Madrona Avenue 
 Belvedere, CA 94920 
 Facsimile: 415-435-4128

  
 With a copy to (which shall not constitute notice):

  
 Tobin & Tobin 
 500 Sansome St., 8th Floor 
 San Francisco, CA
94111 
  
 Attention: Phil Pollock, Esq.  
  
 If to the Company: 
  
 BT Management Company, LLC 
 1299 Ocean Avenue, Suite 260 
 Santa Monica,
CA 
 Attention: Chairman of the Board 
  

 -6- 

 With a copy to (which shall not constitute notice): 
  
 Allen Matkins Leck Gamble & Mallory LLP 
 1901 Avenue of the Stars, Suite 1800 
 Los
Angeles, CA 90067 
 Attention: Mark J. Kelson, Esq. 
  

All notices and other communications given to any party hereto in accordance with the provisions of this Agreement will be deemed to have been given on the date of
delivery if personally delivered; on the business day after the date when sent if sent by air courier or other guaranteed delivery service; and on the third business day after the date when sent if sent by mail, in each case addressed to such party
as provided in this Section 11 or in accordance with the latest unrevoked direction from such party. 
  
 12. Binding Agreement; Benefit. The provisions of this Agreement will be binding upon and will inure to the benefit of, the
respective heirs, legal representatives and successors of the parties hereto. 
  
 13. Choice of Law. ALL ISSUES CONCERNING THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR
CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF CALIFORNIA OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF CALIFORNIA. 
  
 14. Arbitration. To the fullest extent allowed by law,
any controversy, claim or dispute between you and the Company (and/or any of its owners, managers, officers, employees, or agents) relating to or arising out of your employment or the cessation of that employment will be submitted to final and
binding arbitration in the county in which you work(ed) 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 reasoned, written decision, and shall have full authority to award all
remedies which would be available in court. The Company shall pay the arbitrator’s fees and any AAA administrative expenses. 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 (but are not limited to) unpaid wages, breach of contract, torts, violation of public policy, discrimination, harassment, or any other employment-related claims under laws including but not limited to,
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 statutes or laws relating to an
employee’s relationship with his/her employer, regardless of whether such dispute is initiated by the employee or the Company. Thus, this bilateral arbitration agreement fully applies to any and all claims that the Company may have against an
employee, including but not limited to, claims for misappropriation of Company property, disclosure of proprietary information or trade secrets, interference with contract, trade libel, gross negligence, or any other claim for alleged wrongful
conduct or breach of the duty of loyalty by an employee. 

  

 -7- 

 
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 by either you or the Company to the appropriate court or government agency. BY AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH YOU AND THE COMPANY GIVE UP ALL RIGHTS TO
TRIAL BY JURY. This arbitration agreement is to be construed as broadly as is permissible under relevant law. 
  
 15. Waiver of Breach. The waiver by either party of a breach of any provision of this Agreement by the other party must be in writing
and will not operate or be construed as a waiver of any subsequent breach by such other party. 
  
 16. Entire Agreement; Amendments. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements or understanding
among the parties with respect thereto. This Agreement may be amended only by an agreement in writing signed by the parties hereto. 
  
 17. Headings. The section headings contained in this Agreement are for reference purposes only and will not affect in any way the
meaning or interpretation of this Agreement. 
  
 18.
Severability. Subject to the provisions of Section 10 above, any provision of this Agreement that is prohibited or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction will not invalidate or render unenforceable such provision in any other jurisdiction. 

 
 19. Assignment. This Agreement is personal in its
nature and the parties hereto shall not, without the consent of the other party hereto, assign or transfer this Agreement or any rights or obligations hereunder, provided, however, that the rights and obligations of the Company hereunder shall be
assignable and delegable in connection with any subsequent merger, consolidation, sale of all or substantially all of the assets or stock of the Company or similar transaction involving the Company or a successor corporation. 
  
 20. Confidentiality. The Executive agrees not to
disclose this Agreement or its terms to any person or entity, other than the Executive’s agents, advisors or representatives, except as consented to by the Company in writing or as may be required by law. 
  
 21. Further Assurances. The Executive agrees to execute,
acknowledge, seal and deliver such further assurances, documents, applications, agreements and instruments, and to take such further actions, as the Company may reasonably request in order to accomplish the purposes of this Agreement. 
  
 22. Representation by Counsel; Interpretation. The
Company and the Executive each acknowledge that each party to this Agreement has been represented by counsel in connection with this Agreement and the matters contemplated by this Agreement. Accordingly, any rule of law, including but not limited to
Section 1654 of the California Civil Code, or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the party that drafted it has no application and is expressly waived. The provisions of this
Agreement shall be interpreted in a reasonable manner to effect the intent of the parties. 
  

 -8- 

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

  
  

	 THE COMPANY:

	
	 BT MANAGEMENT COMPANY, L.L.C.

		
	 By:
	 	 /s/ Lloyd McAdams

	 	 	 Name: Lloyd McAdams

	 	 	 Title: Chairman

	
	 THE EXECUTIVE:

	
	 /s/ Claus Lund

	 Claus Lund

  

 -9-

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