Document:

Exhibit 10.2

 

Note
Purchase agreement

 

This
Note Purchase Agreement (this “Agreement”) is made as of December 31, 2018 (the “Effective
Date”), by and between Sysorex, Inc., a Nevada corporation (the “Company”),
and Inpixon, a Nevada corporation (the “Purchaser”). Any capitalized term not otherwise defined in this
Agreement shall have the meaning set forth in the Note (as defined in Section 1).

 

Recitals

 

WHEREAS, the
Purchaser desires to purchase and the Company desires to issue and sell the Note in accordance with the terms and conditions set
forth in this Agreement.

 

NOW, THEREFORE,
in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below, the Company and
the Purchaser, intending to be legally bound, hereby severally but not jointly agree as follows:

 

Agreement

 

1. 
Amount and Terms of Note. Subject to the terms of this Agreement, at
the Closing (as defined in Section 3.1) the Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to purchase
from the Company at a purchase price equal to the Loan Amount (as hereinafter defined), a secured promissory note in the form
attached to this Agreement as Exhibit A (the “Note”) for up to an aggregate principal amount
of Three Million Dollars ($3,000,000) (the “Principal Amount”), including all amounts previously advanced
by the Purchaser to the Company or on its behalf as of the Effective Date (the “Prior Advances”), to
be borrowed and disbursed in increments (such borrowed amount, together with the Prior Advances, collectively referred to as the
a “Loan Amount”), with interest to accrue at a rate of ten percent (10%) per annum on all such Loan
Amounts, beginning as of the date of disbursement with respect to any portion of such Loan Amount (each, a “Disbursement
Date”). In addition, the Company agrees to pay $20,000 to the Purchaser to cover the Purchaser’s legal fees,
accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of the
Note (the “Transaction Expense Amount”), all of which amount is included in the Principal Amount. The
initial Loan Amount, therefore, shall include any amounts disbursed to the Company and the Transaction Expense Amount. All sums
advanced by Purchaser from the Effective Date to the Maturity Date pursuant to the terms of this Agreement shall become part of
the aggregate principal amount underlying the Note. All outstanding principal amounts and accrued unpaid interest owing under
the Note shall become immediately due and payable on the earlier to occur of (i) the twenty-four (24) month anniversary of the
date the Note is issued (the “Maturity Date”), (ii) at such date when declared due and payable by the
Purchaser upon the occurrence of an Event of Default, or (iii) at any such earlier date as set forth in the Note. All accrued
unpaid interest shall be payable in cash.

 

2. Use
of Proceeds. The Company shall use the proceeds from the sale of the Note for the benefit of funding its outstanding
liabilities and working capital needs.

 

3.
The Closing(s)

 

3.1 
Closing Date. The initial closing (the “Closing”) of the sale and purchase of the Note shall
be held on the Effective Date, or at such other time as the Company and Purchaser may agree.

 

     

     

    

 

3.2 
Subsequent Closing(s). A subsequent closing with respect to the disbursement of each subsequent Loan Amount (each, a
“Subsequent Closing”) shall be held on such times as the Company and Purchaser shall agree.

 

3.3 
Delivery. At the Closing, the Purchaser will deliver to the Company a duly executed copy of this Agreement and the funds
representing the initial Loan Amount and the Company will deliver a duly executed Note. At each Subsequent Closing, the Purchaser
will deliver funds representing the additional borrowed amounts to be disbursed in accordance with Section 1 herein and in such
amount as the Purchaser and the Company shall deliver an amended Schedule 1 setting forth the then outstanding Loan Amount after
taking into account the disbursement of such additional borrowed amounts, to be attached and incorporated into the Note, provided,
however, that all amounts disbursed as of any Subsequent Closing shall not exceed an amount equal to the Principal Amount in the
aggregate.

 

4. Representations
and Warranties of the Company. The Company hereby represents and warrants
to the Purchaser at and as of the date of the Closing, as follows:

 

4.1 
Organization and Authority. The Company (i) is a corporation validly existing and in good standing under the laws of
the jurisdiction of its formation, (ii) has all requisite company power and authority to own, lease and operate its properties
and assets and to carry on its business as proposed to be and presently conducted, and (iii) has all requisite company power and
authority to execute, deliver and perform its obligations under this Agreement and the Note (collectively, the “Transaction
Documents”), which have been duly and validly authorized, and to consummate the transactions contemplated thereby.

 

4.2 
Note Authorization. The Note is duly authorized to be granted to the Purchaser.

 

4.3 
Authorization. This Agreement, providing due execution and delivery by the Purchaser, shall upon execution and delivery
by the Company, constitute the valid and binding obligations of the Company, enforceable against the Company in accordance with
its terms, and subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect
to indemnity rights, subject to federal and state securities laws.

 

4.4 
Filings and Approvals. The Company is not required to give any notice to, or make any filing or registration with, any
court or other federal, state, local or other governmental authority, or any representative thereof, in connection with the execution,
delivery and performance by the Company of the Transaction Documents, other than such filings required by state securities laws,
as applicable. Provided that the representations and warranties of the Purchaser contained in Section 5 below are accurate, the
offer, issue and sale of the Note is and shall be exempt from the registration and prospectus requirements of the Securities Act
of 1933, as amended (the “Act”), and has been registered, qualified, or exempted from such registration
or qualification in accordance with state securities laws, as applicable.

 

4.5 
Private Placement.  Assuming the accuracy of the representations and warranties of the Purchaser set forth in Section
5 below, no registration under the Act is required for the offer and sale of the Note by the Company to the Purchaser as contemplated
by this Agreement.

 

4.6 
No General Solicitation. The Company is not aware of any offer or sale of any of the Note through any form of general
solicitation or general advertising made by the Company.

 

    2

     

    

 

5. Representations
and Warranties of the Purchaser. The Purchaser hereby acknowledges receipt and careful review of the Transaction Documents
and hereby represents and warrants to the Company at and as of the date of the Closing, as follows:

 

5.1 
Information and Sophistication. During the course of this transaction, the Company has furnished the Purchaser with
all information regarding the Company and the Note that the Purchaser has requested or desired to know, has afforded the Purchaser
the opportunity to ask questions of, and to receive answers from, duly authorized officers or other representatives of the Company
concerning the terms and conditions of this Agreement, the Note contemplated hereunder, and the affairs of the Company and any
additional information relating to this Agreement or the Note and requested by the Purchaser. In evaluating the suitability of
an investment in the Company, the Purchaser hereby acknowledges and represents that:

 

(i)
the Purchaser is not relying and has not relied upon any statement, representation, warranty or other information, oral or written,
other than that set forth in the Transaction Documents; except insofar as the Purchaser has, to the extent he deems necessary and
at his sole expense, retained and relied upon appropriate professional advice regarding the investment, tax and legal merits and
consequences of this Agreement and the Note contemplated hereby; provided that (a) no such professional advisor is affiliated with
or compensated, directly or indirectly, by the Company or any affiliate or selling agent of the Company and (b) all such advisors
have the capacity to protect the Purchaser’s interests in connection with the transactions contemplated by this Agreement
and to adequately evaluate the risks and merits of an investment in the Note;

 

(ii)
the Purchaser has prior investment experience, including investment in securities that are not listed, are unregistered and are
not traded on any stock exchange or an automated quotation system; and

 

(iii) the
Purchaser, either by reason of Purchaser’s own business or financial experience or that of the Purchaser’s professional
advisors as discussed in clause (i) above, as applicable, possesses sufficient knowledge and experience in financial and business
matters so as to be capable of assessing the merits and risks of an investment in the Note.

 

5.2 
No General Solicitation. The Note was not offered or sold to the Purchaser by means of, and the Purchaser is not purchasing
the Note in reliance on, any form of general solicitation or general advertising and in connection therewith, the Purchaser (i)
did not receive or review any advertisement, article, notice or other communication published in a newspaper, magazine or similar
media or broadcast over television or radio, either closed circuit or generally available; and (ii) did not attend any seminar
meeting or industry investor conference any of whose attendees were invited by general solicitation or general advertising, and
is not otherwise relying on any communication that the Purchaser has reason to know was presented at such a meeting or conference.

 

5.3 
Ability to Bear Economic Risk. The Purchaser is aware of and able to bear the substantial economic risks of an investment
in the Note and can afford a complete loss of such investment. The Purchaser’s overall commitment to investments which are
not readily marketable is not disproportionate to the Purchaser’s net worth and the Purchaser’s investment in the Company
will not cause such overall commitment to become excessive. The Purchaser has adequate net worth and means of providing for current
needs and personal contingencies to sustain a complete loss of the Purchaser’s investment in the Company, and the Purchaser
has no need for liquidity in this investment. The Purchaser acknowledges that except as set forth in Section 4 of this Agreement,
the Company has made no representations or warranties with respect to registration of the Note, that no such registration is contemplated
for the foreseeable future, that there can be no assurance of any market for the Note in the future and that, as a result, the
Purchaser must be and is prepared to bear the economic risk of the Purchaser’s entire investment for an indefinite period
of time.

 

    3

     

    

 

5.4 
Registration and Exemption. The Purchaser hereby acknowledges that the Note has not been reviewed by the Commission
or any state regulatory authority, and that the sale of the Note is intended to be exempt from the registration requirements of
Section 5 of the Act based in part upon the Purchaser’s representations and warranties contained in this Agreement. The Purchaser
agrees that he shall not sell or otherwise transfer the Note unless and until the Note is either registered under the Act and any
applicable state securities laws or the Company receives an opinion of counsel satisfactory to the Company that an exemption from
such registration is available. The Purchaser acknowledges that no federal or state agency has made any determination as to the
fairness of the offering of the Note, or any recommendation or endorsement of the Note. The Purchaser acknowledges that at such
time, if ever, as the Note is registered under the Act, sales of the Note will remain subject to state securities laws.

 

5.5 
Investment and Distribution Purposes. The Purchaser understands that the Note has not been registered under the Act
by reason of any claimed exemption under the provisions of the Act which depends, in whole or in part, upon the Purchaser’s
investment intention. In this connection, the Purchaser hereby represents that the Purchaser is purchasing the Note for the Purchaser’s
own account and beneficial interest, for investment purposes only, and not with a view toward the resale or distribution of the
Note to other third parties.

 

5.6 
Consent to Non-Transferability and Prohibition on Resale. The Purchaser understands that the Note may not be sold, transferred,
or otherwise disposed of without registration under the Act or pursuant to an exemption therefrom and that, in the absence of an
effective registration statement covering the Note or an available exemption from registration under the Act, the Note must be
held indefinitely. In particular, the Purchaser is aware that the Note may not be sold pursuant to Rule 144 promulgated under the
Act unless and until all requirements under such rule are satisfied.

 

The Purchaser
consents to the placement of a legend on any certificate or other document evidencing the Note that such Note has not been registered
under the Act or any state securities or other “blue sky” laws, and setting forth or referring to the restrictions
on transferability and sale thereof contained in this Agreement. The Purchaser is aware that the Company will make a notation in
its appropriate records with respect to the restrictions on the transferability of the Note.

 

5.7 
Address. The address of the Purchaser furnished by the Purchaser on the signature page hereto is the Purchaser’s
legal residence.

 

5.8 
Authorization. The Purchaser has full power and authority to execute, deliver and perform its obligations under this
Agreement, including but not limited to the purchase of the Note. If this Agreement is executed and delivered on behalf of a partnership,
trust, corporation or other entity, the Purchaser has been duly authorized to execute and deliver this Agreement and all other
documents and instruments executed and delivered on behalf of such entity in connection with this investment in the Note. This
Agreement constitutes the legal, valid and binding obligations of the Purchaser, enforceable against the Purchaser in accordance
with its terms, and subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with
respect to indemnity rights, subject to federal and state securities laws.

 

5.9 
No Broker. The Purchaser has not engaged in, consented to or authorized any broker, finder or intermediary to act in
such capacity on the Purchaser’s behalf, in connection with the transactions contemplated by this Agreement. The Purchaser
shall indemnify and hold harmless the Company from and against all fees, commissions or other payments owing to any such person
or entity acting on behalf of the Purchaser hereunder.

 

    4

     

    

 

5.10 
Beneficial Ownership. The Purchaser shall be the beneficial owner of the Note for which the Purchaser subscribes.

 

5.11 
Changes. The foregoing representations and warranties are true as of the date of this Agreement and shall be true as
of the Closing. If, in any respect, these representations and warranties will not be true on or prior to such date, the Purchaser
shall give prompt written notice of such fact to the Company.

 

 6. Purchaser Indemnification.

 

The Purchaser acknowledges
that the Purchaser understands the meaning and legal consequences of the representations, warranties and agreements contained in
this Agreement, and hereby agrees to indemnify and hold harmless (i) the Company, (ii) the directors, officers, agents, employees,
partners, and stockholders of the Company, and (iii) any professional advisors to any person or entity in clauses (i) or (ii),
from and against any and all Losses (including reasonable attorneys’ fees) due to, arising out of, or relating to a breach
of any representation, warranty, covenant or agreement, or the failure to fulfill any other obligation of the Purchaser under this
Agreement, or arising out of the sale or distribution by the Purchaser of the Note in violation of the Act or any applicable state
securities laws. Notwithstanding any of the representations, warranties, covenants, agreements or acknowledgments made herein by
the Purchaser, the Purchaser does not hereby, or in any other manner, waive any rights granted to the Purchaser under federal or
state securities laws.

 

 7. Miscellaneous

 

7.1 
Notice. Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by registered
or certified mail, return receipt requested, by overnight delivery by reputable courier or delivered by hand against written receipt
therefor, if to the Company addressed to Sysorex, Inc., 13880 Dulles Corner Lane, Suite 175, Attn: Zaman Khan, Chief Executive
Officer, or such other address as has been provided to the Purchaser by the Company in writing, and if to the Purchaser at the
Purchaser’s address stated on the signature page of this Agreement, or such other address as has been provided to the Company
by the Purchaser in writing. Notices shall be deemed to have been given or delivered on the date of mailing, except notices of
change of address, which shall be deemed to have been given or delivered when received.

 

7.2 
Amendment. This Agreement shall not be changed, modified or amended except by a writing signed by the parties to be
charged, and this Agreement may not be discharged except by performance in accordance with its terms or by a writing signed by
the party to be charged.

 

7.3 
Successors and Assigns; Entire Agreement. The terms and conditions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. Any such transferee
or assignee of the Purchaser will be bound by this Agreement and shall explicitly assume any obligations of the Purchaser under
this Agreement in a writing delivered to the Company. This Agreement sets forth the entire agreement and understanding between
the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any
and every nature among them.

 

7.4 
Waiver. No modification or waiver of any provision of this Agreement or the transactions contemplated thereby or consent
to departure therefrom will be effective unless in writing and approved by both parties hereto; provided, however, that any provision
of the Transaction Documents may be amended or waived by the written consent of both parties hereto. A waiver by either party of
a breach of any provision of this Agreement shall not operate, or be construed, as a waiver of any subsequent breach by the same
party.

 

    5

     

    

 

7.5 
Further Assurances. The parties shall execute and deliver all such further documents, agreements and instruments and
shall take such other further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

 

7.6 
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which shall together constitute one and the same instrument. Executed facsimile or other electronic signature pages
(e.g., portable document format) to this Agreement shall be considered originals.

 

7.7 
Governing Law. In all respects, including all matters of construction, validity and performance, this Agreement shall
be governed by, and construed and enforced in accordance with, the laws of the State of Nevada as applicable to contracts made
and performed in such State, without regard to principles thereof regarding conflicts or choice of law.

 

7.8 
Survival. The representations, warranties, covenants and agreements of the Purchaser contained herein shall survive
the closing of the purchase and sale of the Note and any transfer or disposition thereof.

 

7.9 
Signature. It is hereby agreed that the execution by the Purchaser of this Agreement, in the place set forth herein,
will constitute the agreement by the Purchaser to be bound by the terms of the Transaction Documents.

 

[Signature
Page Follows]

 

    6

     

    

 

In
Witness Whereof, the parties have executed this Note Purchase Agreement as
of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	SYSOREX, INC.
	 	 	 
	 	By:	/s/ Zaman Khan 
	 	 	Name: Zaman
Khan
	 	 	Title: Chief Executive Officer
	 	 	 
	 	PURCHASER: 
	 	 	 
	 	INPIXON
	 	 	 
	 	By:	/s/ Wendy Loundermon 
	 	 	Name: Wendy
Loundermon
	 	 	Title: Vice President of Finance
	 	 	 
	 	Address: 	2479 E. Bayshore Road, Suite 195 

Palo Alto, CA 94303

 

[Signature Page to Sysorex, Inc. – Note Purchase Agreement (Inpixon)]

 

     

     

    

 

Exhibit
A

Form
of NoteEx 10.1 - Kurland Agreement

		
			Exhibit 10.1
		

		
			EMPLOYMENT AGREEMENT
		

		
			This Employment Agreement (“Agreement”) is effective the 1st day of January,  2019 (“Effective Date”), among Private National Mortgage Acceptance Company, LLC (“PNMAC”) and PennyMac Financial Services, Inc. (formerly known as New PennyMac Financial Services, Inc.) (“PFSI”), each having a principal place of business at 3043 Townsgate Road, Westlake Village, CA 91361, and Stanford L. Kurland (“Executive”), whose residence is at ** ***** ****** *****,  *********,  ****** *****.
		

		
			RECITALS
		

		
			WHEREAS, PNMAC, a wholly-owned subsidiary of PFSI, is a validly existing Delaware limited liability company duly organized under the Fifth Amended and Restated Limited Liability Company Agreement Of Private National Mortgage Acceptance Company LLC entered into as of November 1, 2018 (the “PNMAC LLC Agreement”);
		

		
			WHEREAS, PFSI is a validly existing Delaware corporation duly organized under the Amended and Restated Certificate of Incorporation of New PennyMac Financial Services, Inc. filed with the Securities and Exchange Commission (the “SEC”) on November 1, 2018, as amended, and the Amended and Restated Bylaws of New PennyMac Financial Services, Inc. filed with the SEC on November 1, 2018;
		

		
			WHEREAS, Executive currently serves as Executive Chairman of PFSI and certain of PNMAC’s operating subsidiaries;
		

		
			WHEREAS, PNMAC and PNMAC Holdings, Inc. (formerly known as PennyMac Financial Services, Inc. and now wholly-owned subsidiary of PFSI) executed an employment agreement with Executive effective December 8, 2015 (with subsequent amendments) that, by its terms, will expire on or before December 31, 2018 (the “December 2015 Employment Agreement”);
		

		
			WHEREAS, PNMAC and PFSI desire to obtain the benefit of continued services of Executive and Executive desires to continue to render services to PFSI and its subsidiaries; and
		

		
			
		

		
			

		 

		

			Page 1  of  20

		

		

			 

		

 

		

		
			WHEREAS, PNMAC, PFSI, and Executive each has determined that it would be to the advantage and best interest of PNMAC, PFSI, and Executive to enter into this Agreement to establish the terms under which Executive would continue to render services to PFSI and its subsidiaries.
		

		
			NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, PNMAC, PFSI, and Executive agree that the following terms and conditions shall apply to Executive’s employment:
		

		
			AGREEMENT
		

		
			1.        Term. PNMAC hereby agrees to employ Executive and Executive hereby accepts employment with PNMAC for the period commencing with the Effective Date and expiring on December 31, 2022 (the “Expiration Date”) unless earlier terminated in accordance with the provisions hereof (the “Term”). As used herein, the “Termination Date” shall mean the earlier of the Expiration Date or the date on which the Agreement is terminated in accordance with the terms hereof and as may be further specified in Section 7(g).  
		

		
			2.        Duties. 
		

		
			(a)      Through December 31, 2019, Executive shall be employed as the Executive Chairman of PFSI, and in that role shall provide oversight and guidance to the CEO and the Senior Executive management team with a focus on the following issues: succession planning; corporate governance; strategic planning; organizational development; enterprise risk management; information technology; and products and pricing strategy. In addition to these broad oversight activities, Executive shall sponsor and/or champion key initiatives relating to these issues. Executive shall report only to the board of directors of PFSI (the “Board”). The duties and title of Executive may be changed from time to time by the mutual consent of Executive, PFSI, and PNMAC without resulting in a breach or rescission of this Agreement. Notwithstanding any such change from the responsibilities originally specified above, or hereafter assigned, the employment of Executive shall be construed as continuing under this Agreement as modified; provided, 
		

		
			
		

		
			

		 

		

			Page 2  of  20

		

		

			 

		

 

		

		
			however, that any material diminution in Executive’s responsibilities imposed by PNMAC or PFSI without Executive’s consent shall be construed as a termination of Executive Other Than for Cause as described in Section 7(d) of this Agreement. 
		

		
			(b)      Beginning on January 1, 2020, and continuing through the end of the Term, Executive shall serve as the Non-Executive Chairman of PFSI, assuming Executive is reelected to that post through that date. In that post, Executive shall perform the usual and customary duties of such office, including calling, attending and chairing meetings of the Board.
		

		
			(c)      Throughout the Term, Executive’s principal office shall be located at PNMAC’s offices in Summerlin, Nevada, where he will be provided an executive office. Executive also shall be provided access to and support from an administrative assistant throughout the Term.
		

		
			(d)      Nothing in this Agreement is intended to have any impact on Executive’s continued service as Executive Chairman of PennyMac Mortgage Investment Trust (“PMT”), and any compensation or benefits he receives for that position or any other service is independent of any compensation or benefits paid under this Agreement. 
		

		
			3.        Outside Activities. Through December 31, 2019, Executive shall devote all of Executive’s full business time, ability and attention to the business of PNMAC and PFSI, including their management of PMT. Notwithstanding the foregoing, however, Executive may pursue other appropriate civic, charitable or religious activities so long as such activities do not interfere with Executive’s performance of his duties hereunder. In addition, Executive may engage in other business activities or investments during the Term provided such activities or investments do not compete with PFSI or its subsidiaries and are fully disclosed to the Board prior to the time of such activities or investments (except that investments representing less than five percent (5%) of the securities of companies that are regularly traded on a national securities exchange need not be disclosed to the Board). Executive shall also be permitted to serve on the board of directors of any non-profit entity, subject to prior full disclosure to the Board. 
		

		
			
		

		
			

		 

		

			Page 3  of  20

		

		

			 

		

 

		

		
			4.         Board Appointment. Executive shall serve as a member of the Board as specified in Section 2(a) and 2(b) and fulfill all duties required of a member of the Board. In the event Executive’s employment is terminated in accordance with this Agreement or Executive resigns or otherwise becomes unaffiliated with PFSI, Executive shall, and does hereby agree to, tender his written resignation from the Board effective on the date of termination, resignation or non-affiliation. 
		

		
			5.         Compensation and Benefits.
		

		
			(a)        Base Salary. Through December 31, 2019, in consideration for Executive’s services hereunder, PNMAC shall pay or cause to be paid as base salary to Executive an amount of not less than Nine Hundred Thousand Dollars ($900,000) per year, prorated for any partial years of service, less any applicable deductions. Said base salary shall be payable in conformity with PNMAC’s normal payroll periods. Beginning on January 1, 2020 and for so long as Executive remains on the Board, PFSI shall pay or cause to be paid to Executive annual director fees in cash in an amount equal to two and one-half (2.5) times the annual director fees of the highest paid board member (other than board members who are fulltime employees of PNMAC). The annual director fees of the highest paid board member shall be the amount to which such board member was entitled to receive in cash, whether or not such amount was paid in cash or settled in stock in lieu of cash, as reflected in PFSI’s proxy statement filed for the prior fiscal year.
		

		
			(b)        Cash Incentive Compensation. Through December 31, 2019, Executive shall be eligible to participate in all executive incentive programs offered by PNMAC to its employees. PNMAC shall pay to Executive an annual cash incentive compensation award at a level determined by the Board and the Compensation Committee pursuant to an annual targeting process establishing performance targets and designating cash incentive compensation to be earned as a result of meeting those performance targets (the “Bonus”);  provided, however, that the annual performance targets established for Executive and the cash incentive to be earned as a result of meeting those targets shall each be set at levels and amounts at least as favorable to Executive as those for other senior executives at PNMAC. Executive 
		

		
			
		

		
			

		 

		

			Page 4  of  20

		

		

			 

		

 

		

		
			understands that any Bonus for the 2019 Fiscal Year shall be paid to Executive in 2020, and Executive elects to defer payment of such Bonus to no earlier than March 16, 2020 but no later than October 31, 2020, provided that,  except as set forth in Sections 7(a), (b), and (d), Executive must be employed on December 31, 2019 to receive any portion of the Bonus.
		

		
			(c)        Equity Compensation. Through December 31, 2019, PFSI shall grant to Executive equity incentive compensation pursuant to the terms of PFSI’s 2013 Equity Incentive Plan (the “EIP”) or any other equity incentive plan adopted by PFSI in a form and amount determined by the Board and the Compensation Committee pursuant to an annual targeting process establishing performance targets and designating equity incentive compensation to be earned as a result of meeting those performance targets;  provided, however, that the annual performance targets established for Executive and the equity incentive compensation to be earned as a result of meeting those targets shall each be set at levels and amounts at least as favorable to Executive as those for other senior executives at PNMAC. The equity incentive compensation shall be granted at the same time as PNMAC grants equity incentive compensation to its other senior executives for 2019 (but in no event later than June 30,  2019). Any equity incentive compensation granted to Executive pursuant to this Section 5(c) shall vest in accordance with the terms set forth in the EIP and the related award document;  provided however, that notwithstanding anything to the contrary contained in the EIP or any other document, any unvested equity incentive compensation granted to Executive pursuant to this Section 5(c) shall automatically and immediately vest if any of the following events occur: (i) Executive’s death; (ii) Executive’s Disability as defined in Section 7(a); or (iii) the termination of Executive Other Than for Cause as described in Section 7(d) of this Agreement. In addition, because the equity incentive compensation granted to Executive pursuant to this Section 5(c) may be based on Performance Criteria (as defined in Section 7.7(f)(i) of the EIP) that relate to events occurring after the Executive ceases his service as Executive Chairman of PNMAC and PFSI or is no longer employed by the Company, the Performance Goals (as defined in Section 7.7(f)(ii) of the EIP) established for Executive shall not be dependent in any respect on Executive’s individual performance. In 
		

		
			
		

		
			

		 

		

			Page 5  of  20

		

		

			 

		

 

		

		
			the event of a sale, merger, consolidation, reorganization, restructuring or transfer of assets of PFSI in which PFSI is not the surviving entity or in which it survives as a subsidiary of another entity (a “Transaction”), and the shares or equity securities of the surviving entity or parent thereof are publicly traded on a recognized stock exchange or over the counter market, the equity incentive compensation to be granted pursuant to this Section 5(c) after the date of the Transaction shall be granted in accordance herewith in the form of securities of the surviving entity or parent thereof, as applicable. To the extent that any of the terms of this Agreement governing Executive’s equity incentive compensation conflict with anything contained in the EIP or any other document, the terms of this Agreement control and supersede any such contrary provisions. Beginning on January 1, 2020 and for so long as Executive remains on the Board, Executive shall receive equity Awards in an amount equal to two and one-half (2.5) times the amount granted to any other non-employee member of the Board. 
		

		
			(d)        Paid Time Off. Through December 31, 2019, Executive shall accrue forty (40) days of paid time off (“PTO”) at Executive’s regular base pay rate during each year of the Term, prorated for partial years worked, subject to the terms of PNMAC’s employment benefit policies as they relate to senior executive officers. 
		

		
			(e)        Medical Benefits. During the Term, PNMAC shall pay for Executive to undergo an annual comprehensive executive physical appropriate for chief executives such as Executive. In addition, Executive and Executive’s family shall be entitled to participate in PNMAC’s group medical insurance benefits, in accordance with PNMAC’s employment benefit policies as they relate to senior executive officers and their families. If Executive is terminated pursuant to Section 7(a), (b), or (d), PNMAC will reimburse Executive for any amounts paid by Executive for coverage of Executive and/or Executive’s family under PNMAC’s group health medical benefits plan pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for as long as Executive is eligible to receive such benefits under COBRA, on the condition that Executive timely elects COBRA and provides PNMAC with proof of payment of the applicable COBRA premiums on a monthly basis; provided however, that 
		

		
			
		

		
			

		 

		

			Page 6  of  20

		

		

			 

		

 

		

		
			the reimbursement described in this Section 5(e) shall be subject to and paid only if and to the extent (1) such reimbursement is permitted by the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, and other applicable law, and (2) Executive is not otherwise eligible or entitled to participate in group medical benefits offered by a subsequent employer. If PNMAC’s reimbursement of Executive for COBRA-related payments under this subparagraph 5(e) is not permitted by the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, and Executive is not otherwise eligible or entitled to participate in group medical benefits offered by a subsequent employer, then PNMAC shall discontinue the COBRA-related payments provided for in this subparagraph 5(e) and, in such case, PNMAC will pay Executive an amount equal to the amount that Executive would otherwise be entitled to receive for reimbursement of COBRA-related payments.
		

		
			(f)        Tax Advice and Financial Counseling. During the Term, PNMAC shall reimburse Executive for expenses relating to tax advice and financial counseling, subject to reasonable proof of such expenses, provided that, such expenses shall not exceed twenty-five thousand dollars ($25,000) per year, prorated for partial years worked. Executive shall have sole discretion in selecting an appropriate tax advisor and financial counselor.
		

		
			(g)        Automobile Allowance. Through December 31, 2019, PNMAC shall provide Executive with an automobile allowance of one thousand five hundred dollars ($1,500) per month prorated for partial months worked, which allowance shall be in lieu of any expense reimbursement for automobile or automobile-related expenditures (other than expenditures for car services or other transportation costs associated with Executive’s business travel, which shall be reimbursed in accordance with the terms of Section 6 of this Agreement), or use of a PNMAC owned or leased vehicle.
		

		
			(h)        Additional Benefits. Through December 31, 2019, Executive shall be entitled to participate in all programs, rights, and benefits for which Executive is otherwise entitled under any bonus plan, incentive plan, participation plan, extra compensation plan, pension plan, profit sharing plan, 
		

		
			
		

		
			

		 

		

			Page 7  of  20

		

		

			 

		

 

		

		
			savings plan, life, medical, dental, other health care, disability, or other insurance plan or policy or other plan or benefit that PNMAC or PFSI may provide for senior executives or for employees of PNMAC generally, if any, in force from time to time. For the avoidance of doubt, the rights granted or afforded to Executive under any such plans shall not be less than the most favorable rights and highest amounts granted to employees of similar or lower positions with PNMAC and on terms at least as favorable, and, for the purposes of such plan, Executive shall receive credit for the entire period of his employment with PNMAC (including his employment with PNMAC prior to the execution of this Agreement). To the extent that anything contained in any such plans or programs is in conflict or inconsistent with anything stated in this Agreement, the terms of this Agreement shall control and supersede any contrary language except as prohibited by law. Beginning on January 1, 2020 and for so long as Executive remains on the Board, Executive shall receive the same benefits, if any, as are provided to any other non-employee member of the Board.
		

		
			6.        Business Expense Reimbursement. Executive shall be entitled to reimbursement by PNMAC for any ordinary and necessary business expenses incurred by Executive in the performance of Executive’s duties and in acting for PNMAC or PFSI during the Term, which types of expenditures shall be determined by the Board.
		

		
			7.        Termination. During the Term, Executive’s employment may be terminated only as provided in this Section 7. Except as set forth in this Agreement, neither PNMAC nor PFSI shall have any further obligation to Executive or liability under this Agreement by way of compensation, post termination benefits or obligations or otherwise upon the Termination Date. Notwithstanding anything to the contrary in this Agreement or any other document, the termination of Executive’s employment for any reason shall not affect Executive’s ownership of Common Stock of PFSI, and shall not affect Executive’s entitlement to all benefits which have vested or which are otherwise payable in respect of periods ending prior to the termination of his employment. 
		

		
			
		

		
			

		 

		

			Page 8  of  20

		

		

			 

		

 

		

		
			(a)        Disability. In the event that Executive qualifies for permanent disability benefits under PNMAC’s long term disability plan (the “LTD Plan”), or if Executive does not participate in the LTD Plan, would have qualified for permanent disability had Executive been a participant of the LTD Plan (a “Disability”), Executive’s employment hereunder may be terminated, by written Notice of Termination (as that term is defined in Section 7(g) herein) from PNMAC to Executive. Upon termination due to Executive’s Disability under this Section 7(a), Executive shall be entitled to: (i) his base salary described in Section 5(a) and in effect as of the Termination Date, through and including the Termination Date (as that term is defined in Section 7(g) herein); (ii) if not previously paid prior to the Termination Date, incentive based compensation as described in Section 5(b) of this Agreement for the year prior to the Fiscal Year in which the Termination Date occurs;  (iii) accrued but unused PTO through the Termination Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement; (v) if not previously paid prior to the Termination Date, a prorated share of the incentive based compensation described in Section 5(b) for the Fiscal Year in which the Termination Date occurs, payable in accordance with such Section; and (vi) continuing medical benefits as set forth in Section 5(e) herein. In addition, in the event Executive’s employment is terminated pursuant to this Section 7(a), any Award (as that term is defined in the EIP) granted to Executive pursuant to the EIP shall become immediately and fully vested. The determination of Disability shall be made only after sixty (60) days’ notice to Executive and only if Executive is not able to perform his duties with or without reasonable accommodation prior to the expiration of the sixty (60) day notice period. 
		

		
			(b)        Death. In the event that Executive dies during the Term of this Agreement, this Agreement shall automatically terminate on the date of Executive’s death. Upon termination due to Executive’s death pursuant to this Section 7(b), Executive’s estate shall be entitled to: (i) continuing payment of Executive’s base salary described in Section 5(a) and as of the Termination Date through the Termination Date and for a period of six (6) months following the Termination Date; (ii) if not previously paid prior to the Termination Date, incentive based compensation as described in Section 5(b) 
		

		
			
		

		
			

		 

		

			Page 9  of  20

		

		

			 

		

 

		

		
			of this Agreement for the year prior to the Fiscal Year in which the Termination Date occurs; (iii) accrued but unused PTO through the Termination Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement; (v) if not previously paid prior to the Termination Date, a prorated share of the incentive based compensation described in Section 5(b) for the Fiscal Year in which the Termination Date occurs, payable in accordance with such Section; and (vi) continuing medical benefits as set forth in Section 5(e) herein. In addition, in the event of Executive’s death, any Award (as that term is defined in the EIP) granted to Executive pursuant to the EIP shall become immediately and fully vested.
		

		
			(c)        Termination for Cause. PNMAC or PFSI may terminate Executive’s employment or services under this Agreement for “Cause” by written Notice of Termination. A termination for Cause is a termination by reason of: (i) a material breach of this Agreement (other than as a result of incapacity due to death or Disability) which is committed by Executive in bad faith and which is not remedied within thirty (30) days of Executive’s receipt of a notice to cure such breach; (ii) Executive’s conviction by a court of competent jurisdiction of a felony involving dishonesty or moral turpitude, provided, however, that any convictions solely on the basis of vicarious liability shall not give PNMAC or PFSI the right to terminate Executive for Cause; (iii) entry of an order duly issued by any federal or state regulatory agency having jurisdiction of the matter removing Executive from office of PFSI or any its subsidiaries or permanently prohibiting him from participating in the conduct of the affairs of PFSI or any of its subsidiaries; or (iv) proven acts of fraud or willful misconduct committed by Executive in connection with the performance of his duties under Section 2 of this Agreement which result in material injury to PFSI or any of its subsidiaries. In the event of a termination for Cause pursuant to this Section 7(c), Executive shall be entitled to receive (a) his base salary for the entire period up to and including the date of Executive’s termination for Cause; (b) accrued but unused PTO through the Termination Date; and (c) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement. If Executive is convicted of a felony involving dishonesty or moral turpitude or removed 
		

		
			
		

		
			

		 

		

			Page 10  of  20

		

		

			 

		

 

		

		
			from office and/or prohibited from participating in the conduct of the affairs of PFSI or any of its subsidiaries by any federal or state regulatory agency having jurisdiction of the matter, and if the charges resulting in such removal or prohibition are ultimately dismissed or if a final judgment on the merits of such charges is issued in favor of Executive, or if the felony conviction is overturned on appeal, then Executive’s termination shall be treated as a Termination Other Than for Cause pursuant to Section 7(d). 
		

		
			(d)        Termination Other Than for Cause. PNMAC or PFSI may terminate Executive’s employment other than for Cause (including the expiration of Executive’s Term pursuant to Section 1 above) or Executive may terminate his employment for Good Reason as that term is defined in this Section 7(d). If Executive’s employment terminates pursuant to this Section 7(d), then Executive shall be entitled to (i) his base salary in effect as of the Termination Date through and including the Termination Date (as that term is defined in Section 7(g) herein); (ii) if not previously paid prior to the Termination Date, incentive based compensation as described in Section 5(b) of this Agreement for the year prior to the Fiscal Year in which the Termination Date occurs; (iii) accrued but unused PTO through the Termination Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement; (v) a prorated share of the incentive based compensation described in Section 5(b) for the Fiscal Year in which the Termination Date occurs, payable in accordance with such Section; and (vi) continuing medical benefits as set forth in Section 5(e) herein. In addition, in the event Executive’s employment is terminated pursuant to this Section 7(d) (unless such termination is the result of the expiration of Executive’s Term pursuant to Section 1 above or Executive’s termination for Good Reason at his option at any time on or after January 1, 2020), any Award (as that term is defined in the EIP) granted to Executive pursuant to the EIP shall become immediately and fully vested. If such termination is the result of the expiration of Executive’s Term pursuant to Section 1 above or Executive’s termination under clause (a) of the definition of Good Reason below, any such Awards shall continue to vest, if applicable, in accordance with their terms, and the Termination Date of this Agreement shall be deemed to be the Retirement Date as defined in the related award document;  provided, however, that if 
		

		
			
		

		
			

		 

		

			Page 11  of  20

		

		

			 

		

 

		

		
			the related award document does not contain any reference to retirement provisions or a Retirement Date, then the affected Awards shall become immediately and fully vested. 
		

		
			For purposes of this Agreement, Executive will have “Good Reason” to terminate this Agreement (a) at his option at any time on or after January 1, 2020, subject only to the notice provisions set forth in Section 7(g), or (b) if PFSI (or any resulting or surviving entity in the event of a Transaction as defined in Section 5(c) of this Agreement) or PNMAC (1) materially breaches this Agreement; (2) requires Executive to report to anyone other than the Board; (3) requires that Executive be based anywhere more than fifty (50) miles from the office where Executive is located as of Effective Date; (4) takes any other action which results in a material diminution or adverse change in Executive’s status, title, position, compensation, or responsibilities as set forth herein, other than an insubstantial action not taken in bad faith and remedied promptly after receipt of notice by Executive; or (5) fails to indemnify and advance all expenses to Executive in response to a proper request for indemnity and advancement by Executive; provided, however, Executive’s resignation for Good Reason under clauses (b)(1)-(5) above will only be effective if Executive provides written notice to PNMAC or PFSI of the events constituting the Good Reason within ninety (90) days after the occurrence of any such event, and PNMAC or PFSI does not cure said events within thirty (30) days after receipt of the notice.  
		

		
			(e)        Termination Following a Change of Control. This Agreement and Executive’s employment shall not automatically terminate due to a “Change of Control” as that term is defined in the EIP. In the event of a Change of Control, PNMAC and PFSI shall take all actions necessary to ensure that the surviving or resulting entity, if other than PNMAC or PFSI, is bound by and shall have the benefit of the provisions of this Agreement. However, in the event there is a Change of Control and Executive’s employment or service to PFSI or its affiliates (or any successors thereto) is terminated as a result of or in connection with such Change of Control,  Executive shall be entitled to all of the rights and benefits he would be entitled to if his employment were terminated other than for Cause as described in Section 7(d) 
		

		
			
		

		
			

		 

		

			Page 12  of  20

		

		

			 

		

 

		

		
			above, including, without limitation, that any Award (as that term is defined in the EIP) granted to Executive pursuant to the EIP shall become immediately and fully vested. 
		

		
			(f)        Voluntary Resignation. Except as provided in Section 7(d), in the event that Executive resigns voluntarily during the Term of this Agreement, Executive shall be entitled to receive (a) his base salary or director fees, as applicable, for the entire period up to and including the date of Executive’s Termination Date; (b) accrued but unused PTO through the Termination Date; and (c) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement. 
		

		
			(g)        Notice of Termination. Any purported termination by PNMAC or by Executive shall be communicated by a written notice of termination (the “Notice of Termination”) to the other party hereto which indicates the specific termination provision in this Agreement, if any, relied upon and which sets forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis for termination of Executive’s employment under the provision so indicated. For purposes of this Agreement, and except as expressly provided otherwise herein, no such purported termination shall be effective without such Notice of Termination. To the extent the Agreement is terminated prior to the Expiration Date, the “Termination Date” shall be the date specified in the Notice of Termination, which shall be not less than thirty (30) and not more than sixty (60) days from the date of the Notice of Termination. 
		

		
			(h)        Consulting. Upon (i)  expiration of the Term pursuant to Section 1 herein or (ii) termination of this Agreement pursuant to Section 7(d) herein,  Executive shall serve as a consultant to PNMAC and PFSI (or in the event of a Transaction, to the surviving entity or parent) for an eighteen-month period commencing on the Termination Date (the “Consulting Period”);  provided, however, that if Executive remains employed with PNMAC or otherwise provide services as Non-Executive Chairman to PFSI following the expiration of the Term pursuant to Section 1 herein, then the Consulting Period shall commence on the first day after Executive ceases to be employed by PNMAC or otherwise provide 
		

		
			
		

		
			

		 

		

			Page 13  of  20

		

		

			 

		

 

		

		
			services as Non-Executive Chairman to PFSI. During the Consulting Period, Executive shall make himself available for consulting services concerning PFSI’s (or its successor’s) general operations if and as may be reasonably requested by PFSI provided that (a) the consulting services shall be rendered at such location(s) as may be mutually agreed upon by Executive and PFSI and (b) the nature of and time required for the consulting services do not interfere with Executive’s personal and professional activities. The consulting services shall be of an advisory nature and, in his role as a consultant, Executive shall have no power to bind PFSI. In consideration for the consulting services described in this Section 7(h), PNMAC shall pay to Executive a consulting fee of One Million Five Hundred Thousand Dollars ($1,500,000), payable in eighteen monthly installments of Fifty-Five Thousand Five Hundred Fifty-Five Dollars ($55,555)  during the Consulting Period with a final payment of the remaining Five Hundred Thousand Dollars ($500,000) upon the completion of such Consulting Period; provided, however, that the consulting relationship shall automatically terminate, and Executive shall not be entitled to continue receiving monthly payments under this Section 7(h), if he, directly or indirectly, engages in, provides services to, works for, consults with, owns, invests in or operates, any business that competes with the business of PFSI (or in the event of a Transaction, of the surviving entity or parent). PNMAC or PFSI shall provide Executive written notice if it contends Executive has breached any provision in this Section 7(h), and Executive shall have thirty (30) days following receipt of such notice to cure any alleged breach.
		

		
			(i)        Disputes. In consideration of PNMAC and PFSI employing Executive, and the salary and benefits provided under this Agreement, Executive, PNMAC and PFSI agree that all claims arising out of or relating to this Agreement or the breach thereof, or Executive’s employment, including its termination, and/or the enforceability and validity of the arbitration agreement set forth in this Agreement, shall be resolved by binding arbitration pursuant to Section 12(e) below. This Agreement expressly does not prohibit either party from filing an application for a provisional remedy to prevent actual or threatened irreparable harm in accordance with California law.
		

		
			
		

		
			

		 

		

			Page 14  of  20

		

		

			 

		

 

		

		
			(j)        Restriction on Timing of Distributions. The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. Notwithstanding the foregoing,  PNMAC does not warrant to Executive that all amounts paid or delivered to him will be exempt from, or paid in compliance with, Code Section 409A. Accordingly, Executive understands and agrees that he bears the entire risk of any adverse federal, state or local tax consequences and penalty taxes which may result from payment under this Agreement and he acknowledges that he has been given the opportunity to consult with a tax advisor with respect to this Agreement. If Executive notifies PNMAC that Executive believes that any provision of this Agreement (or any award of compensation, including equity compensation or benefits) would cause him to incur any additional tax or interest under Code Section 409A and PNMAC concurs, or PNMAC independently makes such determination, PNMAC shall use reasonable efforts to reform such provision to the extent possible to comply with Code Section 409A; provided, that, such modification shall, to the maximum extent practicable, maintain the original intent and economic benefit to the parties of the applicable provision without violating the provisions of Code Section 409A. 
		

		
			If and to the extent necessary to comply with Code Section 409A, for the purposes of determining when amounts otherwise payable on account of Executive’s termination of employment under this Agreement will be paid, “terminate”, “terminated” or “termination” or words of similar import relating to Executive’s employment with PNMAC, as used in this Agreement, shall be construed as the date that Executive first incurs a “separation from service” within the meaning of Code Section 409A from PNMAC. In applying Code Section 409A to amounts paid pursuant to this Agreement, any right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments. Any taxable reimbursement of business or other expenses provided for under this Agreement shall be subject to the following conditions: (i) the expenses eligible for reimbursement in one taxable 
		

		
			
		

		
			

		 

		

			Page 15  of  20

		

		

			 

		

 

		

		
			year shall not affect the expenses eligible for reimbursement in any other taxable year; (ii) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (iii) the right to reimbursement shall not be subject to liquidation or exchange for another benefit.
		

		
			8.        Indemnity, Advancement and Insurance. To the fullest extent permitted by applicable law, the PNMAC LLC Agreement, or any indemnity agreements entered into from time to time between PNMAC or PFSI and Executive, PNMAC or PFSI, as applicable, (or in the event of a Change of Control as described in Section 7(e), the surviving or resulting entity or transferee) shall indemnify Executive and hold him harmless for any acts or decisions made by him in good faith while performing services for PNMAC and/or PFSI, and shall advance to Executive all fees and costs associated with the defense of any action or proceeding for which he has tendered an appropriate indemnification demand. PNMAC further agrees that it will provide Executive with appropriate “directors’ and officers’ insurance” coverage (as described in Section 6.4 of the PNMAC LLC Agreement) in each case in connection with the performance of his duties under this Agreement, but Executive’s right to indemnity and advancement pursuant to this Section shall not be dependent or contingent upon the availability of insurance coverage.
		

		
			9.        Reimbursement for Legal Fees. Upon submission of appropriate invoices by Executive’s counsel, PNMAC shall pay all reasonable legal fees and expenses incurred by Executive in connection with the preparation and negotiation of this Agreement. 
		

		
			10.        No Obligation to Mitigate. Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise and, except as otherwise expressly provided under this Agreement, no payment hereunder shall be offset or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment or business venture. 
		

		
			11.        Non-Solicitation. During the Term of this Agreement, and for eighteen (18) months following the Termination Date, Executive shall not, directly or indirectly, either for or on behalf of 
		

		
			
		

		
			

		 

		

			Page 16  of  20

		

		

			 

		

 

		

		
			himself or any other person or entity, solicit or induce or attempt to solicit or induce any employee, consultant, independent contractor, agent or representative of PFSI, or any parent, subsidiary or affiliate thereof, to discontinue employment or engagement with PFSI or any parent, subsidiary or affiliate thereof; or otherwise interfere or attempt to interfere with the relationship between PFSI, or any parent, subsidiary or affiliate thereof, and their employees, consultants, independent contractors, agents or representatives.
		

		
			12.        Miscellaneous.
		

		
			(a)        Succession; Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective executors, administrators, successors and assigns. The parties agree that the obligations and duties of Executive are personal and are not assignable.
		

		
			(b)        Notice. Any notice, request, demand or other communication required or permitted hereunder shall be deemed to be properly given when personally served in writing or by facsimile, when deposited in the United States mail, postage prepaid, or when communicated to a public telegraph company for transmittal, addressed to the party at the address appearing at the beginning of this Agreement. Either party may change its address by written notice in accordance with this Section 12(b).
		

		
			(c)        Entire Agreement; Modification. Except as otherwise provided herein, this Agreement contains the entire agreement of the parties with respect to the subject matter herein, and supersedes any and all other prior or contemporaneous agreements, either oral or in writing, between the parties hereto with respect to the employment of Executive by PNMAC. This Agreement may not be modified or amended by oral agreement, but only by an agreement in writing executed by PNMAC, PFSI and Executive. 
		

		
			(d)        Waiver. Any waiver of a breach of any provision hereof shall not operate as or be construed as a waiver of any subsequent breach of the same provision or any other provision of this Agreement.
		

		
			(e)        Governing Law, Venue Selection, and Arbitration. This Agreement is to be governed by and construed in accordance with the laws of the State of California without regard to its 
		

		
			
		

		
			

		 

		

			Page 17  of  20

		

		

			 

		

 

		

		
			choice of law provisions. The parties hereto agree that this Agreement was negotiated and executed in California. Any controversy, dispute or claim arising out of or relating to this Agreement, the breach thereof, Executive’s employment, including the termination thereof, and/or the enforceability or validity of this arbitration agreement, shall first be settled through good faith negotiation. If the dispute cannot be settled through negotiation, the parties agree to binding arbitration administered by JAMS pursuant to its Employment Arbitration Rules & Procedures and subject to JAMS Policy on Employment Arbitration Minimum Standards of Procedural Fairness. Executive acknowledges that he has been provided a copy of the JAMS rules contemporaneously herewith. The parties agree that any such arbitration will be heard at the election of Executive, in Las Vegas, Nevada or in Los Angeles, California, and that judgment on any arbitration award may be entered in any court having jurisdiction. PNMAC shall pay the arbitration administrative costs and the arbitrator’s fees in accordance with California law and the JAMS rules. Each party will bear its/his own attorneys’ fees and legal costs, provided, however, (i) if any party prevails on a statutory claim which affords the prevailing party attorneys’ fees or legal costs, the arbitrator may award reasonable attorneys’ fees and/or legal costs to the prevailing party to the extent permitted by applicable law, or (ii) if any party prevails on a non-statutory claim, the arbitrator shall award reasonable attorneys’ fees and/or legal costs to the prevailing party to the extent permitted by applicable law. The parties agree to file any demand for arbitration within the time limit established by the applicable statute of limitations for the asserted claims. Failure to demand arbitration within the prescribed time period shall result in waiver of said claims. EXECUTIVE UNDERSTANDS AND AGREES THAT HE IS WAIVING HIS RIGHTS TO BRING SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL.
		

		
			(f)        Acknowledgment of Past Performance and Mutual Releases. This Agreement supersedes the December 2015 Employment Agreement as of the Effective Date. The parties hereby agree and acknowledge that Executive, PNMAC, and PFSI have met all of their respective performance obligations under the December 2015  Employment Agreement, and that, upon the Effective Date of this Agreement, Executive , PNMAC, and PFSI will not have any remaining obligations or liabilities in 
		

		
			
		

		
			

		 

		

			Page 18  of  20

		

		

			 

		

 

		

		
			connection with the April 2013 Employment Agreement. It is the intention of Executive, PNMAC and PFSI that this Agreement shall be effective as a full and complete release of any claims they (or their successors or assigns) may have in connection with the December 2015 Employment Agreement. In furtherance of this intention, Executive, PNMAC, and PFSI each acknowledge and agree to waive any rights or benefits they may have under Section 1542 of the California Civil Code, which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known to him or her must have materially affected his or her settlement with the debtor.” Executive and PFSI each covenant not to bring any lawsuit related to or arising out of the December 2015 Employment Agreement.
		

		
			(g)        Confidential Information. Executive agrees that he will not use, divulge or otherwise disclose, directly or indirectly, any trade secret, business process, or other confidential information concerning the business or policies of PFSI or any of its subsidiaries which he may have learned, obtained, accessed or developed during the course of his employment with PNMAC, including prior to the Effective Date of this Agreement, except to the extent such use or disclosure is: (i) necessary or appropriate to the performance of this Agreement and in furtherance of the best interests of PFSI and its subsidiaries; (ii) required by applicable law; (iii) lawfully obtainable from other sources; or (iv) authorized by PNMAC or PFSI. The provisions of this subsection shall survive the expiration or termination of this Agreement for any reason.
		

		
			(h)        Severability. Should any provision of this Agreement for any reason be declared invalid, void, or unenforceable by a court of competent jurisdiction, the validity and binding effect of any remaining provisions shall not be affected, and the remaining provisions of this Agreement shall remain in full force and effect as if this Agreement had been executed without the inclusion of said provision.
		

		
			(i)        Interpretation. If any claim is made by any party hereto relating to any conflict, omission or ambiguity of this Agreement, no presumption or burden of proof or persuasion shall be implied by reason of the fact that this Agreement was prepared by or at the request of any particular party 
		

		
			
		

		
			

		 

		

			Page 19  of  20

		

		

			 

		

 

		

		
			hereto or such party’s counsel. Executive acknowledges that he has been represented by counsel of his choice throughout the negotiation and drafting of this Agreement.
		

		
			(j)        Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
		

		
			In Witness Whereof, the parties hereto have executed this Agreement as of December 28, 2018.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						PRIVATE NATIONAL mORTGAGE
ACCEPTANCE COMPANY, LLC:

					
					
						    

					
					
						PENNYMAC FINANCIAL SERVICES, INC.:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Derek W. Stark

					
					
						 

					
					
						By: 

					
					
						/s/ Matt Botein    

				
	
					
						Name: 

					
					
						Derek W. Stark

					
					
						 

					
					
						Name:

					
					
						Matt Botein

				
	
					
						Title: 

					
					
						Senior Managing Director and Chief Legal Officer and Secretary

					
					
						 

					
					
						Title:

					
					
						Chairman of the Compensation Committee

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						EXECUTIVE: 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						/s/ Stanford L. Kurland 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Stanford L. Kurland

				

		
			 
		

		 

		

			Page 20  of  20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]