Document:

pmt-ex1011_403.htm

Exhibit 10.11

AMENDMENT NO. 2

 

AMENDED AND RESTATED

MORTGAGE BANKING SERVICES AGREEMENT

 

Amendment No. 2 to Amended and Restated Mortgage Banking Services Agreement, dated as of October 31, 2017 (the “Amendment”), by and between PennyMac Loan Services, LLC, a Delaware limited liability company (the “Service Provider”), and PennyMac Corp., a Delaware corporation (the “Company”).

 

RECITALS

WHEREAS, the Service Provider and the Company are parties to that certain Amended and Restated Mortgage Banking Services Agreement, dated as of September 12, 2016 (the “Existing MBS Agreement” and, as amended by this Amendment, the “MBS Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing MBS Agreement.

WHEREAS, the Service Provider and the Company have agreed, subject to the terms and conditions of this Amendment, that the Existing MBS Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing MBS Agreement.

NOW, THEREFORE, in consideration of the mutual premises and mutual obligations set forth herein, the Service Provider and the Company hereby agree that the Existing MBS Agreement is hereby amended as follows:

SECTION 1.Exhibits. Exhibit A of the Existing MBS Agreement is hereby amended by deleting it in its entirety and replacing it with the form attached hereto as Exhibit A.

SECTION 2.Conditions Precedent. This Amendment shall become effective as of the date first set forth above (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent:

2.1Delivered Documents. On the Amendment Effective Date, each party shall have received the following documents, each of which shall be satisfactory to such party in form and substance:

(a)this Amendment, executed and delivered by duly authorized officers of the Service Provider and the Company; and

(b)such other documents as such party or counsel to such party may reasonably request.

SECTION 3.Representations and Warranties. Each party represents that it is in compliance in all material respects with all the terms and provisions set forth in the Existing MBS Agreement on its part to be observed or performed.

SECTION 4.Limited Effect. Except as expressly amended and modified by this Amendment, the Existing MBS Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms. 

 

 

SECTION 5.GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

SECTION 6.Counterparts. This Amendment may be executed in one or more counterparts and by different parties hereto on separate counterparts, each of which, when so executed, shall constitute one and the same agreement.

SECTION 7.Conflicts. The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the Existing MBS Agreement, the provisions of this Amendment shall control.

[SIGNATURE PAGE FOLLOWS]

 

 

 

2

 

 

IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.

 

	
The Service Provider:
	
 
	
PENNYMAC LOAN SERVICES, LLC

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
/s/ Douglas Jones

	
 
	
 
	
 
	
 
	
Name:
	
 
	
Douglas Jones

	
 
	
 
	
 
	
 
	
Title:
	
 
	
President

 

	
The Company:
	
 
	
PENNYMAC CORP.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
/s/ Andrew S. Chang

	
 
	
 
	
 
	
 
	
Name:
	
 
	
Andrew S. Chang

	
 
	
 
	
 
	
 
	
Title:
	
 
	
Senior Managing Director and

Chief Financial Officer

 

 

 

Signature Page to Amendment No. 2

Amended and Restated Mortgage Banking Services Agreement 

 

 

EXHIBIT A

 

(Compensation)

 

Fulfillment Fees

 

The aggregate Fulfillment Fees for Mortgage Loans purchased in any month from an approved Correspondent (other than the Service Provider) shall equal (a) in the case of Fannie Mae Mortgage Loans and Freddie Mac Mortgage Loans, no greater than the product of (i) 0.35% and (ii) the aggregate unpaid principal balance of all such Fannie Mae Mortgage Loans and Freddie Mac Mortgage Loans funded in such month, and (b) in the case of all other Mortgage Loans, no greater than the product of (i) 0.85% and (ii) the aggregate unpaid principal balance of all such Mortgage Loans funded in such month; provided, however, that no Fulfillment Fee shall be due or payable to the Service Provider with respect to any Ginnie Mae Mortgage Loan. The Fulfillment Fee with respect to each Mortgage Loan shall be due and payable by the Company no later than the end of the calendar month following the calendar month in which such Mortgage Loan was funded.

 

Early Purchase Program Fees

 

With respect to each Early Purchase Program, the Service Provider shall be entitled to fees that accrue (a) at a rate equal to $1,500 per annum, and (b) in the amount of $35 with respect to each Mortgage Loan purchased by the Company thereunder. The fee described in clause (a) shall accrue and be payable monthly not later than the last Business Day of each month from and after the execution of the Early Purchase Program documentation. The fee described in clause (b) shall accrue and be payable monthly not later than the fifth (5th) Business Day following the month during which the related Mortgage Loan first becomes subject to a transaction thereunder.

 

A-1Exhibit

September 3, 2017

Badrinarayanan Kothandaraman 

Dear Badri:

Enphase Energy, Inc. (the "Company'') is pleased to offer you the position of President and Chief Executive Officer (CEO) on the updated employment terms set forth in this offer letter agreement (the "Updated Agreement"). This Updated Agreement is intended to amend and update the terms of your existing employment offer letter dated on or about March 20, 2017 (the "Existing Agreement"), which will otherwise remain place in accordance with its terms.

		
	1.
	Position, Duties and Location. Your title will be President and Chief Executive Officer ("CEO"). You will report to the Company's Board of Directors (the "Board"), and you will perform those duties and responsibilities customary to the CEO position and as may be reasonably directed by the Board. You will also be appointed to the Board as a Class Ill Director. Your primary office location will be the Company's headquarters in Petaluma, California. Notwithstanding the foregoing, the Company reserves the right to reasonably require you to perform your duties at places other than its corporate headquarters from time to time, and to require reasonable business travel. During the term of your employment with the Company, you will devote your best efforts and substantially all of your business time and attention to the business of the Company, except for approved vacation periods and reasonable periods of illness or other incapacities permitted by the Company's general employment policies.

		
	2.
	Base Salary. The Company will pay you an annualized base salary at the rate of four hundred fifty thousand dollars ($450,000}, less applicable payroll deductions and withholdings, payable in accordance with the Company’s standard payroll schedule.  Beginning in calendar year 2019, the Board's Compensation Committee (the "Compensation Committee") will review your base salary for potential modification on an annual basis as part of its annual compensation review of the Company's executives.

		
	3.
	Annual Bonus. You will be eligible to earn an annual discretionary bonus of up to one hundred percent (100%) of your current annualized base salary rate (the "Annual Bonus"), which, for calendar year 2017, will be prorated for the level of your base salary over the course of the year. The Annual Bonus will be based upon the Compensation Committee's assessment of your performance against individual performance goals and the Company's attainment of financial and/or other business goals as set by the Compensation Committee for a given calendar year in its sole discretion. Bonus payments, if any, will be subject to applicable payroll deductions and withholdings. Following the close of each calendar year, the Compensation Committee will determine whether you shall be paid an Annual Bonus, and the amount of any such bonus, based on the achievement of such goals. Except as set forth in this Agreement, no amount of Annual Bonus is guaranteed, and you must be an employee on the Annual Bonus payment date to receive and earn an Annual Bonus, which will be paid within ninety (90) days following the end of the applicable bonus year. No partial or prorated bonuses will be provided.

		
	4.
	Stock Grants. In connection with your promotion to the CEO position, the Company will grant you an option to purchase 1,000,000 shares of the Company's Common Stock with an exercise price equal to the fair market value of a share of Common Stock as determined by the Board (or the Compensation Committee) on the applicable date of the grant (the "Option"). The Option will be subject to the terms of the Company’s 2011 Equity Incentive Plan (the "Plan") and the applicable stock option agreements (the "Stock Agreements"). The Option shares will vest subject to your continued employment as CEO over a four-year period, whereby twenty-five percent (25%) of the 

Option shares will vest and become exercisable on the one year anniversary of the date you commence the CEO position, with  the remaining  shares subject to the Option vesting and becoming exercisable in thirty-six (36) equal monthly installments thereafter, in each case subject to your continued employment through the applicable vesting dates and the terms and conditions of the Plan and the applicable Stock Agreements. Subject to approval by the Board or the Compensation Committee, beginning in calendar year 2019, you will be eligible to receive additional equity awards annually as part of the Compensation Committee's discretionary annual equity refresh grant process; any such additional equity awards will be subject to vesting and other terms as determined by the Compensation Committee in its sole discretion.

		
	5.
	Severance and Change in Control Benefit Plan. You will continue be eligible for severance and change in control benefits under the Company's Severance and Change in Control Benefit Plan (the "Severance Plan"). In connection with your promotion to the CEO position, you will be designated as a Tier I Participant (i.e., the highest level of participation), subject to the terms and conditions set forth in the Severance Plan.

		
	6.
	At-Will Employment Relationship. Employment with the Company is for no specific period of time. Your employment relationship with the Company is "at will,” meaning that either you or the Company may terminate your employment at any time, with or without Cause (as defined in the Severance Plan) or advance notice. Any contrary representations that may have been made to you are superseded by this Updated Agreement. Although your job duties, title, compensation and benefits, as well as the Company's personnel policies and procedures, may change from time to time, the "at will" nature of your employment may only be changed in an express written agreement signed by both you and a duly authorized representative of the Board (other than you).

		
	7.
	Miscellaneous. This Updated Agreement, together with the Existing Agreement (and exhibits thereto including your Employee Invention Assignment and Confidentiality Agreement), constitutes the complete and exclusive statement of your employment agreement with the Company. It supersedes any other agreements or promises made to you by anyone, whether oral or written. In the event of any conflict between this Updated Agreement and the Existing Agreement, the provisions of this Updated Agreement shall control. Changes in your employment terms, other than those changes expressly reserved to the Company's, the Board's or the Compensation Committee’s discretion in this Agreement, require a written modification approved by the Company and signed by a duly authorized representative of the Board (other than you). This Updated Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Updated Agreement is determined to be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this Updated Agreement and the provision in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law. This Updated Agreement shall be construed and enforced in accordance with the laws of the State of California without regard to conflicts of law principles. You and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in San Francisco County and Sonoma County in connection with any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Updated Agreement, your employment, or the termination of your employment.  Any ambiguity in this Updated Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Updated Agreement, or rights hereunder, shall be in writing and shall not be deemed to be a waiver of any successive breach or rights hereunder. This Updated Agreement may be executed in counterparts which shall be deemed to be part of one original, and facsimile and electronic signatures shall be equivalent to original signatures.

[Signature Page Follows]

    

Very truly yours,

ENPHASE ENERGY, INC.

By:   /s/ Steven Gomo
                        
Steven Gomo, Lead Independent Director On Behalf of the Board of Directors

I have read, understand and accept this Updated Agreement: By:

/s/ Badri Kothandaraman
Badrinarayanan Kothandaraman

Dated: September 3, 2017

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