Document:

a50115275ex10_5.htm

Exhibit 10.5

AMENDMENT TO ANWORTH MORTGAGE ASSET CORPORATION

CHANGE IN CONTROL AND ARBITRATION AGREEMENT

This Amendment to Anworth Mortgage Asset Corporation Change in Control and Arbitration Agreement (this “Amendment”), is made by and between Anworth Mortgage Asset Corporation, a Maryland corporation (the “Company”), and Evangelos Karagiannis (“Employee”), in connection with that certain Anworth Mortgage Asset Corporation Change in Control and Arbitration Agreement by and between the Company and Employee, dated June 27, 2006 (collectively, the "Master Agreement"), with reference to the following recitals:

A.           The Company has entered into that certain Management Agreement by and between the Company and Anworth Management, LLC, dated as of December 31, 2011 (the “Management Agreement”), effective on December 31, 2011 (the “Effective Date”), subject to approval of the Company’s stockholders.

B.           Subject to stockholder approval of the Management Agreement, from and after the Effective Date, Employee will no longer be employed by the Company and will become an employee of the “Manager” (as defined in the Management Agreement).

C.           The Company and Employee desire to amend the Master Agreement effective as of the Effective Date in accordance with the terms of this Amendment.

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the Company and Employee agree as follows:

28.           Effective Date.  This Amendment shall be effective on the Effective Date.

 

29.           Change in Control Benefits.  Section 1 of the Master Agreement is hereby amended and restated as follows:

 

1.           Change in Control Benefits.  In the event that a Change in Control (as defined on Annex A and made a part hereof) occurs, then the Company shall pay to Employee a lump sum amount (the “Additional Amount”) equal to (i) twelve (12) months annual base salary in effect on December 31, 2011, plus (ii) the average annual incentive compensation received by the Employee for the two complete fiscal years (or such lesser number of years as the employee has been employed by the Company) of the Company ending December 31, 2011, plus (iii) the average annual bonus received by the Employee for the two complete fiscal years (or such lesser number of years as the employee has been employed by the Company) of the Company ending December 31, 2011.  The Additional Amount shall be paid upon the date that the Change in Control occurs.

 

30.           Welfare Benefits.  Section 2(a) of the Master Agreement is hereby amended and restated as follows:

 

  

1

  

 

2.           Welfare Benefits.

 

(a)           If Employee’s employment with the Manager terminates and the Management Agreement is terminated during the twelve (12) month period immediately following a Change in Control, the Company shall provide to Employee (and his spouse and other qualified dependents) all Welfare Benefits that Manager provided to Employee (and his spouse and qualified dependents) immediately prior to the Change in Control for a period of twelve (12) months following Employee’s termination of employment with the Manager.  Should the continuation of any Welfare Benefits to be provided to Employee hereunder following the termination of the Employee’s employment be unavailable under the Manager’s benefit plans for any reason, the Company shall reimburse Employee his cost of obtaining such benefits under substantially similar plans from similar third-party providers.

 

31.           Other Employee Benefits.  Section 4 of the Master Agreement is hereby amended and restated as follows:

 

4.           Other Employee Benefits.  The benefits provided to Employee hereunder shall not be affected by or reduced because of any other benefits (including, but not limited to, salary, bonus, pension, stock option or restricted stock plan) to which Employee may be entitled by reason of his employment with the Company or Manager or the termination of his employment with the Company or Manager, and no other such benefit by reason of such employment shall be so affected or reduced because of the benefits bestowed by this Agreement.

 

32.           No Right to Continued Employment.  Section 10 of the Master Agreement is hereby amended and restated as follows:

 

10.           No Right to Continued Employment.  This Agreement does not constitute a contract of employment, does not change the status of the Employee’s employment and does not change the Company’s or Manager’s policies regarding termination of employment.  Nothing in this Agreement shall be deemed to give Employee the right to be retained in the service of the Company or Manager or to deny the Company or Manager any right it may have to discharge or demote him at any time; provided, however, that any termination of employment of Employee, or any removal of Employee as an employee or officer of the Company or Manager primarily in contemplation of a Change in Control shall not be effective to deny Employee the benefits of this Agreement, including without limitation, Sections 2, 3 and 4 hereof.  No provision of this Agreement shall in any way limit, restrict or prohibit Employee’s right to terminate employment with the Company or Manager.

 

33.           Non-Impairment.  Except as expressly modified herein, the Master Agreement shall continue in full force and effect, and the parties hereby ratify and reaffirm the Master Agreement as modified herein.

 

  

2

  

 

34.           Defined Terms.  All capitalized terms used in this Amendment and not otherwise defined herein shall have the meaning given to such terms in the Master Agreement.

 

35.           Inconsistencies.  In the event of any inconsistency, ambiguity or conflict between the terms and provisions of this Amendment and the terms and provisions of the Master Agreement, the terms and provisions of this Amendment shall control.

 

36.           Counterparts.  This Amendment may be executed in any number of counterparts, each of which when executed will be deemed an original and all of which, taken together, will be deemed to be one and the same instrument.

 

IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the Effective Date.

 

Company:

 

ANWORTH MORTGAGE ASSET CORPORATION,

a Maryland corporation

 

 

 

	
By:

	
/s/ Lloyd McAdams

	
Print Name:

	
Lloyd McAdams

	
Its:

	
Chief Executive Officer

 

Employee:

 

 

 

	  	
/s/ Evangelos Karagiannis

	
EVANGELOS KARAGIANNIS

 

 

3a50115275ex10_6.htm

Exhibit 10.6

Termination Agreement

 

This TERMINATION AGREEMENT (this “Agreement”) is entered into as of December 31, 2011, by and between Anworth Mortgage Asset Corporation, a Maryland corporation (the “Company”), and Joseph Lloyd McAdams (the “Executive”).  The above parties are referred to collectively herein as the “Parties” and individually as a “Party”.

 

RECITALS

 

WHEREAS, the Executive and Anworth Mortgage Advisory Corporation have entered into an employment agreement dated as of January 1, 2002, which was subsequently assumed by the Company, and the Company and the Executive have since entered into a number of addendums to such agreement (as amended to date, the “Employment Agreement”);

 

WHEREAS, the Company and Anworth Management, LLC (the “Manager”) have entered into a Management Agreement dated as of December 31, 2011 (the “Management Agreement”), and in connection therewith, the Company is now externally managed by the Manager, with the Company’s day-to-day operations conducted by the Manager through the authority delegated to it under the Management Agreement and pursuant to the policies established by the Company’s board of directors (the “Externalization”); and

 

WHEREAS, in connection with the Externalization, the Parties desire to terminate the Employment Agreement because the Company will operate as an entity with officers and directors, but without employees.

 

NOW, THEREFORE, the Parties agree as follows:

AGREEMENT

 

Section 1.                      Termination of Employment Agreement.

 

1.1           Termination.  Effective as of the date hereof, and by mutual agreement of the Company and the Executive, the Employment Agreement shall terminate, cease and be of no further force or effect.

 

1.2           Cease of Effectiveness of Obligations After Termination.  For the avoidance of doubt, effective as of the date hereof, and by mutual agreement of the Company and the Executive, Sections 5(b) and 5(c) of the Employment Agreement, including all obligations, rights and benefits thereunder, shall terminate, cease and be of no further force or effect.  The Executive hereby acknowledges that the Executive has received all compensation, payments and benefits owed to him, and has no further rights and benefits, under the Employment Agreement.

 

Section 2.                      Miscellaneous Provisions

 

2.1           Further Assurances.  Each Party hereto at the reasonable request of the other Party hereto and without additional consideration, shall execute and deliver, or shall cause to be executed and delivered, from time to time, such further certificates, agreements or instruments of conveyance and transfer, assumption, release and acquittance and shall take such other action as the other Party hereto may reasonably request, to consummate or implement the transactions contemplated by this Agreement.

 

  

  

  

 

2.2           Entire Agreement.  This Agreement constitutes the full and entire understanding and agreement among the Parties hereto with respect to the subject matters hereof, and any and all other written or oral agreements existing prior to or contemporaneously herewith are expressly superseded and canceled.

 

2.3           Amendments, Waivers, Consents and Assignability.  For the purposes of this Agreement and all agreements, documents and instruments executed pursuant hereto, except as otherwise specifically set forth herein or therein, no course of dealing between the Parties and no delay on the part of any Party hereto in exercising any rights hereunder or thereunder shall operate as a waiver of the rights hereof and thereof.  Any term or provision hereof may be amended, terminated or waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of each of the Parties.

 

This Agreement may not otherwise be assigned by any Party hereto without the prior written consent of each other Party hereto.  Notwithstanding the foregoing, nothing in this Agreement is intended to give any Person not named herein the benefit of any legal or equitable right, remedy or claim under this Agreement, except as expressly provided herein.

 

2.4           Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall constitute an original but all of which shall constitute but one and the same instrument.  One or more counterparts of this Agreement or any Schedule hereto may be delivered via telecopier, with the intention that they shall have the same effect as an original counterpart hereof.

 

2.5           Construction.  In the event an ambiguity or question of intent or interpretation arises, this Agreement and the agreements, documents and instruments executed and delivered in connection herewith shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement and the agreements, documents and instruments executed and delivered in connection herewith.

 

2.6           Governing Law.  This Agreement shall be deemed a contract made under the laws of the State of California, and all disputes, claims or controversies arising out of this Agreement, or the negotiation, validity or performance hereof or the transactions contemplated herein, shall be construed under and governed by the laws of the State of California, without giving effect to conflicts of laws principles.

 

[Signature page follows]

 

  

2

  

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first written above.

 

	  	
Anworth Mortgage Asset Corporation

	 	 
	 	 
	 	 
	  	
By:

	  	
/s/ Thad M. Brown

	  	
Name:

	  	
Thad M. Brown

	  	
Title:

	  	
Chief Financial Officer and Secretary

	 	 	 	 
	  	  	  	  
	  	  	  	  
	  	
Executive

	 	 
	 	 
	 	 
	  	  	  	
/s/ Joseph Lloyd McAdams

	  	
Joseph Lloyd McAdams

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}]]