Document:

EX-10.7

 Exhibit 10.7 

EXECUTIVE EMPLOYMENT AGREEMENT 

This Executive Employment Agreement (the “Agreement”) is entered into as of February 16, 2021, by and between JEFF WALSH
(“Executive”) and LOANDEPOT, INC., a Delaware corporation (the “Company”). 
 WHEREAS, Executive
has been serving as the Senior Executive Vice President and Chief Revenue Officer of the Company; 
 WHEREAS, the Company wishes to
continue to employ, and Executive wishes to accept continued employment with the Company, as the Senior Executive Vice President and Chief Revenue Officer of the Company, pursuant to the terms and conditions set forth in this Agreement, effective as
of the date of the consummation of the initial public offering of the Company’s common stock (the “Effective Date”). 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, it is hereby agreed by and between the parties
hereto as follows: 
 ARTICLE I 

DEFINITIONS 
 For purposes
of the Agreement, the following terms are defined as follows: 
 1.1. “Board” means the Board of Directors of the Company. 

1.2. “Cause” means a good faith determination by the Board that Executive’s employment be terminated for only one of the
following: (i) material failure to comply with, breach of or continued refusal to comply with, in each case, terms of this Agreement, of any written agreement or covenant with the Company or any affiliate (including, without limitation, any
employment, consulting, confidentiality, non-competition, non-solicitation, non-disparagement or similar agreement or covenant);
(ii) violation of any lawful policies, standards or regulations of the Company which have been furnished to Executive, including policies related to discrimination, harassment, performance of illegal or unethical activities, and ethical misconduct;
(iii) indictment for, conviction of or plea of no contest to a felony under the laws of the United States or any state; (iv) fraud, embezzlement, dishonesty or breach of fiduciary duty against the Company or its affiliates or material
misappropriation of property belonging to the Company or its affiliates; (v) Executive’s repeated failure to perform Executive’s duties as specifically directed in any reasonable and lawful directive of the Board or, if Executive does
not directly report to the Board, any of Executive’s supervisors; (vi) willful misconduct or gross negligence in connection with the performance of Executive’s duties or fraud, embezzlement, theft with respect to the Company, its
assets or any of its affiliates, in each case of (i), (v), (vi), to the extent such event is capable of cure, after the receipt of written notice from the Board and Executive’s failure to cure (if curable) within thirty (30) days of
Executive’s receipt of the written notice, providing that the Company must provide Executive with at least thirty (30) days to cure and if Executive cures, Cause shall not exist under (i), (v), (vi), as applicable. 

 1.3. “Change in Control” shall have the meaning ascribed to that term in the
loanDepot, Inc. 2021 Omnibus Incentive Plan (the “Plan”) or any successor equity compensation plan of the Company. 
 1.4.
“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended. 
 1.5. “Code” means the
Internal Revenue Code of 1986, as amended. 
 1.6. “Covered Termination” means (i) an Involuntary Termination Without Cause or
(ii) a voluntary termination for Good Reason. For the avoidance of doubt, neither (x) the termination of Executive’s employment as a result of Executive’s death or Disability nor (y) the expiration of this Agreement due to non-renewal pursuant to the terms of Section 2.2 of this Agreement will be deemed to be a Covered Termination. 

1.7. “Disability” shall mean a termination of Executive’s employment due to Executive’s absence from Executive’s duties
with the Company on a full-time basis for at least 180 consecutive days as a result of Executive’s incapacity due to physical or mental illness which is determined to be total and permanent by a physician selected by the Company or its
insurers. 
 1.8. “Good Reason” means any of the following taken without Executive’s written consent: (i) failure or
refusal by the Company to comply in any material respect with the material terms of this Agreement, (ii) a material diminution in Executive’s duties, title, authority or responsibilities, (iii) a material reduction in Executive’s
Base Salary (unless the annual base salary of all other executive officers is similarly reduced), or (iv) the Company requiring Executive to be located at any office or location more than 35 miles from the Company’s current headquarters in
Foothill Ranch, California, provided that any request or directive from the Company to not work in such office pursuant to any stay-at-home or work from home or similar
law, order, directive, request or recommendation from a governmental entity shall not give rise to Good Reason under this Agreement. Notwithstanding the foregoing, Executive’s resignation shall not constitute a resignation for “Good
Reason” as a result of any event described in the preceding sentence unless (x) Executive provides written notice thereof to the Company within thirty (30) days after the first occurrence of such event, (y) to the extent
correctable, the Company fails to remedy such circumstance or event within thirty (30) days following the Company’s receipt of such written notice and (z) the effective date of Executive’s resignation for “Good Reason”
is not later than ninety (90) days after the initial existence of the circumstances constituting Good Reason. 
 1.9. “Involuntary
Termination Without Cause” means Executive’s dismissal or discharge by the Company other than for Cause or by reason of Executive’s death or Disability. 

1.10. “Section 409A” means Section 409A of the Code and the Department of Treasury regulations and other
interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date. 

1.11. “Separation from Service” means Executive’s termination of employment constitutes a “separation from service”
within the meaning of Treasury Regulation Section 1.409A-1(h). 

  
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 ARTICLE II 

EMPLOYMENT BY THE COMPANY 
 2.1.
Position and Duties. Subject to terms set forth herein, Executive shall serve in an executive capacity and shall perform such duties as are customarily associated with the position of Senior Executive Vice President and Chief Revenue Officer and
such other duties as are assigned to Executive by the Board and/or the Company’s Chief Executive Officer. During the term of Executive’s employment with the Company, Executive will devote Executive’s best efforts and substantially all
of Executive’s business time and attention (except for vacation periods and absences due to reasonable periods of illness or other incapacities permitted by the Company’s general employment policies or as otherwise set forth in this
Agreement) to the business of the Company. 
 2.2. Term. The initial term of this Agreement shall commence on the Effective Date and shall terminate
on the earlier of (i) the third (3rd) anniversary of the Effective Date and (ii) the termination of Executive’s employment under this Agreement; provided, that if the IPO is
not consummated by March 1, 2021, this Agreement shall be null and void ab initio and the Company shall not have any liability to Executive under this Agreement. On the third (3rd)
anniversary of the Effective Date and each annual anniversary of such date thereafter (in either case, provided Executive’s employment has not been terminated under this Agreement prior thereto), this Agreement shall automatically be extended
for one additional year unless either Executive or the Company gives written notice of non-renewal to the other at least sixty (60) days prior to the automatic extension date. The period from the
Effective Date until the earlier of (i) termination of Executive’s employment under this Agreement and (ii) the expiration of the term of this Agreement due to non-renewal pursuant to this
Section 2.2 is referred to as the “Term.” 
 2.3. Employment at Will. The Company shall have the right to terminate
Executive’s employment with the Company at any time, with or without cause, and, in the case of a termination by the Company, with or without prior notice. In addition to Executive’s right to resign for Good Reason, Executive shall have
the right to resign at any time and for any reason or no reason at all, upon thirty (30) days’ advance written notice to the Company; provided, however, that if Executive has provided a resignation notice to the Company, the Company may
determine, in its sole discretion, that such termination shall be effective on any date prior to the effective date of termination provided in such notice (and, if such earlier date is so required, then it shall not change the basis for
Executive’s termination of employment nor be construed or interpreted as a termination of Executive’s employment by the Company) and any requirement to continue salary or benefits shall cease as of such earlier date. Upon certain
terminations of Executive’s employment with the Company, Executive may become eligible to receive the severance benefits provided in Article IV of this Agreement. 

2.4. Deemed Resignations. Except as otherwise determined by the Board or as otherwise agreed to in writing by Executive and the Company or any of
its affiliates prior to the termination of Executive’s employment with the Company or any of its affiliates, any termination of Executive’s employment shall constitute, as applicable, an automatic resignation of Executive: (a) as an
officer of the Company and each of its affiliates; (b) from the Board; and (c) from the board of directors or board of managers (or similar governing body) of any affiliate of the Company and from the board of directors or board of
managers (or similar governing body) of any corporation, 

  
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limited liability entity, unlimited liability entity or other entity in which the Company or any of its affiliates holds an equity interest and with respect to which board of directors or board
of managers (or similar governing body) Executive serves as such designee or other representative of the Company or any of its affiliates. Executive agrees to take any further actions that the Company or any of its affiliates reasonably requests to
effectuate or document the foregoing. 
 2.5. Employment Policies. The employment relationship between the parties shall also be governed by the
general employment policies and practices of the Company, including those relating to protection of confidential information and assignment of inventions, except that when the terms of this Agreement differ from or are in conflict with the
Company’s general employment policies or practices, this Agreement shall control. 
 ARTICLE III 

COMPENSATION 
 3.1. Base Salary. As
of the Effective Date, Executive shall receive for services to be rendered hereunder an annualized base salary of $750,000 (“Base Salary”), payable on the regular payroll dates of the Company (but no less often than monthly),
subject to increase in the sole discretion of the Board or a committee of the Board. 
 3.2. Annual Bonus. For each calendar year ending during the
Term, Executive shall be eligible to receive an annual performance bonus (the “Annual Bonus”) targeted at two hundred percent (200%) of Base Salary or such other amount as determined in the sole discretion of the Board or a
committee of the Board (the “Target Bonus”), on such terms and conditions determined by the Board or a committee of the Board and with a maximum payout of three hundred percent (300%) of the Target Bonus. The actual amount of any
Annual Bonus (if any) will be determined in the discretion of the Board or a committee of the Board and will be (i) subject to achievement of any applicable bonus objectives and/or conditions determined by the Board or a committee of the Board
and (ii) subject to Executive’s continued employment with the Company through the date the Annual Bonus is paid (except as otherwise provided in Section 4.1). The Annual Bonus for any calendar year will be paid at the same time as
bonuses for other Company executives are paid related annual bonuses generally. 
 3.3. Standard Company Benefits. During the Term, Executive shall be
entitled to all rights and benefits for which Executive is eligible under the terms and conditions of the standard Company benefits and compensation practices that may be in effect from time to time and are provided by the Company to its executive
employees generally, as well as any additional benefits provided to Executive consistent with past practice. Notwithstanding the foregoing, this Section 3.3 shall not create or be deemed to create any obligation on the part of the Company to
adopt or maintain any benefits or compensation practices at any time. 
 3.4. Equity Awards. Executive will be eligible to receive equity incentive
grants as determined by the Board or a committee of the Board in its sole discretion. 

  
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 ARTICLE IV 

SEVERANCE AND CHANGE IN CONTROL BENEFITS 

4.1. Severance Benefits. Upon Executive’s termination of employment, Executive shall receive any accrued but unpaid Base Salary and other accrued
and unpaid compensation, including any accrued but unpaid vacation. If the termination is due to a Covered Termination, provided that Executive (A) delivers an effective general release of all claims against the Company and its affiliates in a
form provided by the Company (a “Release of Claims”) that becomes effective and irrevocable within sixty (60) days following the Covered Termination and (B) continues to comply with Articles V through VII of this
Agreement, Executive shall be entitled to receive the severance benefits described in Sections 4.1(a) or (b), as applicable. 
 (a)
Covered Termination Not Related to a Change in Control. If Executive’s employment terminates due to a Covered Termination which occurs at any time other than during the period beginning three (3) months prior to a Change in Control and
ending twelve (12) months after a Change in Control (the “CIC Protection Period”), Executive shall receive the following: 

(i) An amount equal to 12 months of Executive’s Base Salary at the rate in effect (or required to be in effect before any
diminution that is the basis of Executive’s termination for Good Reason) at the time of Executive’s termination of employment, payable in a lump sum payment, less applicable withholdings, as soon as administratively practicable following
the date on which the Release of Claims becomes effective and, in any event, no later than the sixtieth (60th) day following the date of the Covered Termination; provided, however, if such
sixty (60) day period falls in two different calendar years, payment will be made in the later calendar year. 
 (ii) Subject to
Executive’s timely election of continuation coverage under COBRA, the Company shall directly pay, or reimburse Executive for the premium for Executive and Executive’s covered dependents to maintain continued health coverage pursuant to the
provisions of COBRA through the earlier of (A) the 12 month anniversary of the date of Executive’s termination of employment and (B) the date Executive and Executive’s covered dependents, if any, become eligible for healthcare
coverage under another employer’s plan(s). Notwithstanding the foregoing, if the Company is otherwise unable to continue to cover Executive under its group health plans without penalty under applicable law (including without limitation,
Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to Executive in substantially equal monthly installments. 

(b) Covered Termination Related to a Change in Control. If Executive’s employment terminates due to a Covered Termination that
occurs during the CIC Protection Period, Executive shall receive the following: 
 (i) An amount equal to 1.5 times the sum of
(i) Executive’s Base Salary at the rate in effect (or required to be in effect before any diminution that is the basis of Executive’s termination for Good Reason) at the time of Executive’s termination of employment and
(ii) Executive’s Target Bonus in effect for the year in which Executive’s termination of employment occurs, payable in a lump sum payment, less applicable withholdings, as soon as administratively practicable following the date on
which the Release of Claims becomes effective and, in any event, no later than the sixtieth (60th) day following the date of the Covered Termination; provided, however, if such sixty
(60) day period falls in two different calendar years, payment will be made in the later calendar year. To the extent Executive’s Covered Termination 

  
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occurs during the CIC Protection Period and prior to a Change in Control, and Executive’s severance payment pursuant to Section 4.1(a)(i) is paid prior to the Change in Control, an
amount equal to the severance payable pursuant to this Section 4.1(b)(i), less the amount previously paid pursuant to Section 4.1(a)(i), will be paid in a lump sum payment, less applicable withholdings, as soon as administratively
practicable, but not later than fifteen (15) business days, following the occurrence of the Change in Control. 
 (ii)
Notwithstanding anything set forth in an award agreement or incentive plan to the contrary, (A) a pro-rata portion of Executive’s Annual Bonus for the fiscal year in which Executive’s
termination occurs based on actual achievement of the applicable bonus objectives and/or conditions determined by the Board or a committee of the Board for such year (determined by multiplying the amount of the Annual Bonus that would be payable for
the full fiscal year by a fraction, the numerator of which shall be equal to the number of days during the fiscal year of termination that Executive is employed by, and performing services for, the Company and the denominator of which is 365 days)
and (B) the amount of any Annual Bonus earned, but not yet paid, for the fiscal year prior to Executive’s termination, in each case, payable, less applicable withholdings, at the same time bonuses for such year are paid to other senior
executives of the Company, but in no event later than March 15 of the year following the year of Executive’s termination of employment. 

(iii) Notwithstanding anything set forth in an award agreement or equity incentive plan to the contrary, one hundred percent (100%) of
the total number of stock options and other equity awards issued by the Company or LD Holdings Group LLC to Executive that have not previously vested shall immediately become vested (with any performance-based vesting criteria deemed earned at the
greater of target or actual performance through the date of the Change in Control). 
 (iv) Subject to Executive’s timely
election of continuation coverage under COBRA, the Company shall directly pay, or reimburse Executive for the premium for Executive and Executive’s covered dependents to maintain continued health coverage pursuant to the provisions of COBRA
through the earlier of (A) the 18-month anniversary of the date of Executive’s termination of employment and (B) the date Executive and Executive’s covered dependents, if any, become
eligible for healthcare coverage under another employer’s plan(s). Notwithstanding the foregoing, if the Company is otherwise unable to continue to cover Executive under its group health plans without penalty under applicable law (including
without limitation, Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to Executive in substantially equal monthly installments. 

4.2. 280G Provisions. Notwithstanding anything in this Agreement to the contrary, if any payment or distribution Executive would receive pursuant to
this Agreement or otherwise (“Payment”) would (a) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (b) but for this sentence, be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”), then such Payment shall either be (i) delivered in full, or (ii) delivered as to such lesser extent which would result in no portion of such Payment being subject to the
Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis,

  
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of the largest payment, notwithstanding that all or some portion of the Payment may be taxable under Section 4999 of the Code. The accounting firm engaged by the Company for general audit
purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The
accounting firm shall provide its calculations to the Company and Executive within fifteen (15) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive) or
such other time as requested by the Company or Executive. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive. Any reduction in payments and/or benefits pursuant
to this Section 4.2 will occur in the following order: (1) reduction of cash payments; (2) cancellation of accelerated vesting of equity awards other than stock options; (3) cancellation of accelerated vesting of stock options;
and (4) reduction of other benefits payable to Executive. Nothing in this Section 4.2 shall require the Company or any of its affiliates to be responsible for, or have any liability or obligation with respect
to, Executive’s excise tax liabilities under Section 4999 of the Code. 
 4.3. Section 409A. Notwithstanding any
provision to the contrary in this Agreement: 
 (a) All provisions of this Agreement are intended to comply with Section 409A or
an exemption therefrom and shall be construed and administered in accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as
a short-term deferral shall be excluded from Section 409A to the maximum extent possible. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are exempt from, or
compliant with, Section 409A and in no event shall the Company or any of its affiliates be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A. 
 (b) If Executive is deemed at the time of Executive’s
Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is
required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code which would subject Executive to a tax obligation under Section 409A, such portion of Executive’s benefits shall not be provided to
Executive prior to the earlier of (i) the expiration of the six- month period measured from the date of Executive’s Separation from Service or (ii) the date of Executive’s death. Upon the
expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 4.3(b) shall be paid in a lump sum to Executive, and any remaining payments due under the Agreement shall be paid as
otherwise provided herein. 
 (c) Any reimbursements payable to Executive pursuant to the Agreement shall be paid to Executive no
later than 30 days after Executive provides the Company with a written request for reimbursement, and to the extent that any such reimbursements are deemed to constitute “nonqualified deferred compensation” within the meaning of
Section 409A (i) such amounts shall be paid or reimbursed to Executive promptly, but in no event later than December 31 of the year following the year in which the expense is incurred, (ii) the amount of any such payments
eligible for reimbursement in one year shall not affect the payments or expenses that are eligible for 

  
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payment or reimbursement in any other taxable year, and (iii) Executive’s right to such payments or reimbursement shall not be subject to liquidation or exchange for any other benefit;
provided, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period in which
the arrangement is in effect. 
 (d) For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s right to receive installment payments under the Agreement shall be treated as a right to receive a series of separate payments and, accordingly,
each installment payment hereunder shall at all times be considered a separate and distinct payment. 
 4.4. Mitigation. Executive shall not be
required to mitigate damages or the amount of any payment provided under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by
Executive as a result of employment by another employer or by any retirement benefits received by Executive after the date of the Covered Termination, or otherwise. 

4.5. Equity Coordination. For the avoidance of doubt, all equity awards, including stock options, restricted stock units and other equity-based
compensation granted by the Company to Executive under the Company’s equity-based compensation plans shall be subject to the terms of such plans and Executive’s equity award agreements with respect thereto, subject to the provisions of
Section 4.1(b)(iii) above. 
 ARTICLE V 

PROPRIETARY INFORMATION AND CONFIDENTIALITY OBLIGATIONS 

5.1. Proprietary Information. All Company Innovations shall be the sole and exclusive property of the Company without further compensation and are
“works made for hire” as that term is defined under the United States copyright laws. Executive shall promptly notify the Company of any Company Innovations that Executive solely or jointly Creates. “Company Innovations”
means all Innovations, and any associated intellectual property rights, which Executive may solely or jointly Create, during Executive’s employment with the Company, which (i) relate, at the time Created, to the Company’s business or
actual or demonstrably anticipated research or development, or (ii) were developed on any amount of the Company’s time or with the use of any of the Company’s equipment, supplies, facilities or trade secret information, or
(iii) resulted from any work Executive performed for the Company. Executive is notified that Company Innovations does not include any Innovation which qualifies fully under the provisions of California Labor Code Section 2870.
“Create” means to create, conceive, reduce to practice, derive, develop or make. “Innovations” means processes, machines, manufactures, compositions of matter, improvements, inventions (whether or not protectable
under patent laws), works of authorship, information fixed in any tangible medium of expression (whether or not protectable under copyright laws), mask works, trademarks, trade names, trade dress, trade secrets,
know-how, ideas (whether or not protectable under trade secret laws), and other subject matter protectable under patent, copyright, moral rights, mask work, trademark, trade secret or other laws regarding
proprietary rights, including new or useful art, combinations, discoveries, formulae, manufacturing techniques, technical developments, discoveries, artwork, software and designs. Executive hereby 

  
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assigns (and will assign) to the Company all Company Innovations. Executive shall perform (at the Company’s expense), during and after Executive’s employment, all acts reasonably deemed
necessary or desirable by the Company to assist the Company in obtaining and enforcing the full benefits, enjoyment, rights and title throughout the world in the Company Innovations. Such acts may include execution of documents and assistance or
cooperation (i) in the filing, prosecution, registration, and memorialization of assignment of patent, copyright, mask work or other applications, (ii) in the enforcement of any applicable Proprietary Rights, and (iii) in other legal
proceedings related to the Company’s Innovations. “Proprietary Rights” means patents, copyrights, mask work, moral rights, trade secrets and other proprietary rights. No provision in this Agreement is intended to require
Executive to assign or offer to assign any of Executive’s rights in any invention for which Executive can establish that no trade secret information of the Company were used, and which was developed on Executive’s own time, unless the
invention relates to the Company’s actual or demonstrably anticipated research or development, or the invention results from any work performed by Executive for the Company. 

5.2. Confidentiality. In the course of Executive’s employment with the Company and the performance of Executive’s duties on behalf of the
Company and its affiliates hereunder, Executive will be provided with, and will have access to, Confidential Information (as defined below). In consideration of Executive’s receipt and access to such Confidential Information, and as a condition
of Executive’s employment, Executive shall comply with this Section 5.2. 
 (a) Both during the Term and thereafter, except
as expressly permitted by this Agreement, Executive shall not disclose any Confidential Information to any person or entity and shall not use any Confidential Information except for the benefit of the Company or its affiliates. Executive shall
follow all Company policies and protocols regarding the security of all documents and other materials containing Confidential Information (regardless of the medium on which Confidential Information is stored). Except to the extent required for the
performance of Executive’s duties on behalf of the Company or any of its affiliates, Executive shall not remove from facilities of the Company or any of its affiliates any information, property, equipment, drawings, notes, reports, manuals,
invention records, computer software, customer information, or other data or materials that relate in any way to the Confidential Information, whether paper or electronic and whether produced by Executive or obtained by the Company or any of its
affiliates. The covenants of this Section 5.2(a) shall apply to all Confidential Information, whether now known or later to become known to Executive during the period that Executive is employed by or affiliated with the Company or any of its
affiliates. 
 (b) Notwithstanding any provision of Section 5.2(a) to the contrary, Executive may make the following disclosures
and uses of Confidential Information: 
 (i) disclosures to other employees, officers or directors of the Company or
any of its affiliates who have a need to know the information in connection with the businesses of the Company or any of its affiliates; 

(ii) disclosures to customers and suppliers when, in the reasonable and good faith belief of Executive, such disclosure
is in connection with Executive’s performance of Executive’s duties; 

  
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 (iii) disclosures and uses that are approved in writing by the Board;
or 
 (iv) disclosures to a person or entity that has (x) been retained by the Company or any of its affiliates
to provide services to the Company and/or its affiliates and (y) agreed in writing to abide by the terms of a confidentiality agreement. 

(c) Upon the expiration of the Term, and at any other time upon request of the Company, Executive shall promptly and permanently
surrender and deliver to the Company all documents (including electronically stored information) and all copies thereof and all other materials of any nature containing or pertaining to all Confidential Information and any other Company property
(including any Company-issued computer, mobile device or other equipment) in Executive’s possession, custody or control and Executive shall not retain any such documents or other materials or property of the Company or any of its affiliates.
Within ten (10) days of any such request, Executive shall certify to the Company in writing that all such documents, materials and property have been returned to the Company or otherwise destroyed. 

(d) “Confidential Information” means all confidential, competitively valuable,
non-public or proprietary information that is conceived, made, developed or acquired by or disclosed to Executive (whether conveyed orally or in writing), individually or in conjunction with others, during the
period that Executive is employed or engaged by the Company or any of its affiliates (whether during business hours or otherwise and whether on the Company’s premises or otherwise) including: (i) technical information of the Company, its
affiliates, its investors, customers, vendors, suppliers or other third parties, including computer programs, software, databases, data, ideas, know-how, formulae, compositions, processes, discoveries,
machines, inventions (whether patentable or not), designs, developmental or experimental work, techniques, improvements, work in process, research or test results, original works of authorship, training programs and procedures, diagrams, charts,
business and product development plans, and similar items; (ii) information relating to the Company or any of its affiliates’ businesses or properties, products or services (including all such information relating to corporate
opportunities, operations, future plans, methods of doing business, business plans, strategies for developing business and market share, research, financial and sales data, pricing terms, evaluations, opinions, interpretations, acquisition
prospects, the identity of customers or acquisition targets or their requirements, the identity of key contacts within customers’ organizations or within the organization of acquisition prospects, or marketing and merchandising techniques,
prospective names and marks) or pursuant to which the Company or any of its affiliates owes a confidentiality obligation; and (iii) other valuable, confidential information and trade secrets of the Company, its affiliates, its customers or
other third parties. Moreover, all documents, videotapes, written presentations, brochures, drawings, memoranda, notes, records, files, correspondence, manuals, models, specifications, computer programs,
e-mail, voice mail, electronic databases, maps, drawings, architectural renditions, models and all other writings or materials of any type including or embodying any of such information, ideas, concepts,
improvements, discoveries, inventions and other similar forms of expression are and shall be the sole and exclusive property of the Company or its other applicable affiliates and be subject to the same restrictions on disclosure applicable to all
Confidential Information pursuant to this Agreement. For purposes of this Agreement, Confidential Information shall not include any information that (A) is or becomes generally available to the public other than as a result of a disclosure or
wrongful act of Executive or any of Executive’s agents; (B) was available to Executive on a non-confidential basis before its disclosure 

  
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by the Company or any of its affiliates; (C) becomes available to Executive on a non-confidential basis from a source other than the Company or any of
its affiliates; provided, however, that such source is not bound by a confidentiality agreement with, or other obligation with respect to confidentiality to, the Company or any of its affiliates; or (D) is required to be disclosed by applicable
law. 
 (e) Notwithstanding the foregoing, nothing in this Agreement shall prohibit or restrict Executive from lawfully:
(i) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by, any governmental authority regarding a possible violation of any law;
(ii) responding to any inquiry or legal process directed to Executive from any such governmental authority; (iii) testifying, participating or otherwise assisting in any action or proceeding by any such governmental authority relating to a
possible violation of law; or (iv) making any other disclosures that are protected under the whistleblower provisions of any applicable law. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, an individual shall not be held
criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an
attorney and (2) solely for the purpose of reporting or investigating a suspected violation of law; (B) is made to the individual’s attorney in relation to a lawsuit for retaliation against the individual for reporting a suspected
violation of law; or (C) is made in a complaint or other document filed in a lawsuit or proceeding, if such filing is made under seal. Nothing in this Agreement requires Executive to obtain prior authorization before engaging in any conduct
described in this paragraph, or to notify the Company that Executive has engaged in any such conduct. 
 5.3. Nondisparagement. Subject to
Section 5.2(e) above, Executive agrees that from and after the Effective Date, Executive will not, directly or indirectly, make, publish, or communicate any disparaging or defamatory comments regarding the Company or any of its current or
former directors, officers, members, managers, partners, or executives. The Company agrees that it will counsel its senior executive officers and directors to not make, publish, or communicate publicly any disparaging or defamatory comments
regarding Executive. The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or filings or administrative or arbitral proceedings (including, without limitation, depositions in
connection with such proceedings), and the foregoing limitation on the Company’s senior executives and directors shall not be violated by statements that they in good faith believe are necessary or appropriate to make in connection with
performing their duties and obligations to the Company or any of its affiliates. 
 5.4. Remedies. Executive’s and the Company’s duties
under this Article V shall survive termination of Executive’s employment with the Company and the termination of this Agreement. Because of the difficulty of measuring economic losses to the Company and its affiliates as a result of a
breach or threatened breach of the covenants set forth in this Article V, Section 6.2 and Article VII, and because of the immediate and irreparable damage that would be caused to the Company and its affiliates for which they would have no other
adequate remedy, Executive acknowledges that a remedy at law for any breach or threatened breach by Executive of Article V, as well as Executive’s obligations pursuant to Section 6.2 and Article VII below, would be inadequate,
and Executive therefore agrees that the Company shall be entitled to seek injunctive relief in case of 

  
 -11- 

 
any such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and
without the necessity of posting any bond or other security. The aforementioned equitable relief shall not be the Company’s or any of its affiliates’ exclusive remedy for a breach but instead shall be in addition to all other rights and
remedies available to the Company and each of its affiliates at law and equity. 
 5.5. Modification. The covenants in this Article V,
Section 6.2 and Article VII, and each provision and portion hereof, are severable and separate, and the unenforceability of any specific covenant (or portion thereof) shall not affect the provisions of any other covenant (or portion thereof).
If it is determined by an arbitrator or a court of competent jurisdiction in any state that any restriction in this Article V, Section 6.2 and Article VII is excessive in duration or scope or is unreasonable or unenforceable under the laws of
that state, it is the intention of the parties that such restriction may be modified or amended by the arbitrator or the court to render it enforceable to the maximum extent permitted by the law of that state. 

ARTICLE VI 
 OUTSIDE
ACTIVITIES 
 6.1. Other Activities. 

(a) Except as otherwise provided in Section 6.1(b), Executive shall not, during the term of this Agreement undertake or engage in
any other employment, occupation or business enterprise, other than ones in which Executive is a passive investor, unless Executive obtains the prior written consent of the Board. 

(b) Executive may engage in civic and not-for-profit
activities so long as such activities do not materially interfere with the performance of Executive’s duties hereunder. In addition, subject to advance approval by the Board, Executive shall be allowed to serve as a member of the board of
directors of one (1) for-profit entity at any time during the term of this Agreement, so long as such service does not materially interfere with the performance of Executive’s duties hereunder;
provided, however, that the Board, in its discretion, may require that Executive resign from such director position if it determines that such resignation would be in the best interests of the Company. 

6.2. Competition/Investments. During the term of Executive’s employment by the Company, Executive shall not (except on behalf of the Company)
directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business
connection with any other person, corporation, firm, partnership or other entity whatsoever which are known by Executive to compete directly with the Company or any of its affiliates, throughout the world, in any line of business engaged in (or
planned to be engaged in) by the Company; provided, however, that anything above to the contrary notwithstanding, Executive may own, as a passive investor, securities of any competitor corporation. so long as Executive’s direct holdings in any
one such corporation do not, in the aggregate, constitute more than 1% of the voting stock of such corporation. 

  
 -12- 

 6.3. Defense of Claims; Cooperation. During the Term and thereafter, upon reasonable request from the
Company, Executive shall use commercially reasonable efforts to cooperate with the Company and its affiliates in the defense of any claims or actions that may be made by or against the Company or any of its affiliates that relate to Executive’s
actual or prior areas of responsibility or knowledge. Executive shall further use commercially reasonable efforts to provide reasonable and timely cooperation in connection with any actual or threatened claim, action, inquiry, review, investigation,
process, or other matter (whether conducted by or before any court, arbitrator, regulatory, or governmental entity, or by or on behalf of the Company or any of its affiliates), that relates to Executive’s actual or prior areas of responsibility
or knowledge. 
 ARTICLE VII 

NONINTERFERENCE 
 Executive
shall not, during the term of Executive’s employment by the Company and, solely with respect to clause (ii) below, for twenty-four (24) months thereafter, either on Executive’s own account or jointly with or as a manager, agent,
officer, employee, consultant, partner, joint venturer, owner or stockholder or otherwise on behalf of any other person, firm or corporation, directly or indirectly solicit, induce attempt to solicit any of (i) its customers or clients to
terminate their relationship with the Company or to cease purchasing services or products from the Company or (ii) its officers or employees or offer employment to any person who is an officer or employee of the Company; provided,
however, that a general advertisement to which an employee of the Company responds shall in no event be deemed to result in a breach of this Article VII. If it is determined by a court of competent jurisdiction in any state that any
restriction in this Article VII is excessive in duration or scope or is unreasonable or unenforceable under the laws of that state, it is the intention of the parties that such restriction may be modified or amended by the court to render it
enforceable to the maximum extent permitted by the law of that state. 
 ARTICLE VIII 

GENERAL PROVISIONS 
 8.1. Notices.
Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of personal delivery (including personal delivery by facsimile or electronic mail) or the third day after mailing by first class mail, to the
Company at its primary office location and to Executive at Executive’s address as listed on the Company’s books and records. 
 8.2. Tax
Withholding. Executive acknowledges that all amounts and benefits payable under this Agreement are subject to deduction and withholding to the extent required by applicable law. 

8.3. Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or
any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein. 

  
 -13- 

 8.4. Clawback. Amounts paid or payable under this Agreement shall be subject to the provisions
of any applicable clawback policies or procedures adopted by the Company or any of its affiliates applicable to Executive, which clawback policies or procedures may provide for forfeiture and/or recoupment of amounts paid or payable under this
Agreement. Notwithstanding any provision of this Agreement to the contrary, the Company and each of its affiliates reserves the right, without the consent of Executive, to adopt any such clawback policies and procedures, including such policies and
procedures applicable to this Agreement with retroactive effect. 
 8.5. Waiver. Any waiver of this Agreement must be executed by the party to be
bound by such waiver. If either party should waive any breach of any provisions of this Agreement, they shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement or any similar
or dissimilar provision or condition at the same or any subsequent time. The failure of either party hereto to take any action by reason of any breach will not deprive such party of the right to take action at any time. 

8.6. Complete Agreement. This Agreement constitutes the entire agreement between Executive and the Company and is the complete, final, and exclusive
embodiment of their agreement with regard to this subject matter, and will supersede all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect to the subject matter
hereof. This Agreement is entered into without reliance on any promise or representation other than those expressly contained herein or therein, and cannot be modified or amended except in a writing signed by a duly-authorized officer of the Company
and Executive. Notwithstanding the foregoing, the covenants contained in Sections 5, 6 and 7 herein shall be in addition to (and not in substitution of) any covenants contained in the LD Holdings Group LLC Third Amended and Restated Limited
Liability Company Agreement, dated October 1, 2020 (as amended and restated). 
 8.7. Counterparts. This Agreement may be executed in separate
counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement. 

8.8. Headings. The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect
the meaning thereof. 
 8.9. Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive
and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not assign Executive’s rights or delegate Executive’s duties or obligations hereunder without the prior written
consent of the Company. 
 8.10. Effect of Termination. The provisions of Section 2.4 and Articles IV, V, VII and VIII and those provisions
necessary to interpret and enforce them, shall survive any termination of this Agreement and any termination of the employment relationship between Executive and the Company. 

8.11. Third-Party Beneficiaries. Each affiliate of the Company that is not a signatory to this Agreement shall be a third-party beneficiary of
Executive’s obligations under Sections 2.4 and 8.14 and Articles V, VI and VII and shall be entitled to enforce such obligations as if a party hereto. 

  
 -14- 

 8.12. Executive Acknowledgement. Executive acknowledges and agrees that (a) Executive was
represented by counsel in connection with the negotiation of this Agreement, and (b) that Executive has read and understands the Agreement, is fully aware of its legal effect, and has entered into it freely based on Executive’s own
judgment. 
 8.13. Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law
of the State of California without regard to the conflicts of law provisions thereof. With respect to any claim or dispute related to or arising under this Agreement, the parties hereby consent to the arbitration provisions of Section 8.14 and
recognize and agree that should any resort to a court be necessary and permitted under this Agreement, then they consent to the exclusive jurisdiction, forum and venue of the state and federal courts (as applicable) located in California. 

8.14. Arbitration. 
 (a) Subject to
Section 8.14(b), any dispute, controversy or claim between Executive and the Company or any of its affiliates arising out of or relating to this Agreement or Executive’s employment or engagement with the Company or any of its affiliates
(“Disputes”) will be finally settled by confidential arbitration in the State of California in accordance with the then-existing Judicial Arbitration and Mediation Services, Inc. (“JAMS”) Employment Arbitration
Rules. The arbitration award shall be final and binding on both parties. Any arbitration conducted under this Section 8.14 shall be private, shall be heard by a single arbitrator (the “Arbitrator”) selected in accordance with
the then-applicable rules of the JAMS and shall be conducted in accordance with the Federal Arbitration Act. The Arbitrator shall expeditiously hear and decide all matters concerning the Dispute. Except as expressly provided to the contrary in this
Agreement, the Arbitrator shall have the power to (i) gather such materials, information, testimony and evidence as the Arbitrator deems relevant to the Dispute before him or her (and each party will provide such materials, information,
testimony and evidence requested by the Arbitrator), and (ii) grant injunctive relief and enforce specific performance. All Disputes shall be arbitrated on an individual basis, and each party hereto hereby foregoes and waives any right to
arbitrate any Dispute as a class action or collective action or on a consolidated basis or in a representative capacity on behalf of other persons or entities who are claimed to be similarly situated, or to participate as a class member in such a
proceeding. The decision of the Arbitrator shall be reasoned, rendered in writing, be final and binding upon the disputing parties and the parties agree that judgment upon the award may be entered by any court of competent jurisdiction. The parties
acknowledge and agree that in connection with any such arbitration and regardless of outcome, except as provided under this Section 8.14, each party will pay all of its own costs and expenses, including its own legal fees and expenses, and the
arbitration costs will be shared equally by the Company and Executive. 
 (b) Notwithstanding Section 8.14(a), either party may
make a timely application for, and obtain, judicial emergency or temporary injunctive relief to enforce any of the provisions of Articles V through VII; provided, however, that the remainder of any such Dispute (beyond the application for emergency
or temporary injunctive relief) shall be subject to arbitration under this Section 8.14. 

  
 -15- 

 (c) By entering into this Agreement and entering into the arbitration provisions of
this Section 8.14, THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT THEY ARE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVING THEIR RIGHTS TO A JURY TRIAL. 

(d) Nothing in this Section 8.14 shall prohibit a party to this Agreement from (i) instituting litigation to enforce any
arbitration award, or (ii) joining the other party to this Agreement in a litigation initiated by a person or entity that is not a party to this Agreement. Further, nothing in this Section 8.14 precludes Executive from filing a charge or
complaint with a federal, state or other governmental administrative agency. 
 [Signature page follows] 

  
 -16- 

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

 

			
	LOANDEPOT, INC.
		
	By:	 	/s/ Anthony Hsieh
	Name: Anthony Hsieh
	Title: Chief Executive Officer

  

	
	Accepted and Agreed:
	
	 /s/ Jeff Walsh

Jeff Walsh

 Signature Page to Executive Employment AgreementExhibit
4.2

 

DESCRIPTION
OF CAPITAL STOCK

 

The
following is a summary of all material characteristics of our capital stock as set forth in our articles of incorporation and
bylaws. The summary does not purport to be complete and is qualified in its entirety by reference to our articles of incorporation
and bylaws and applicable provisions of the Nevada Revised Statutes, as amended (“NRS”).

 

Common
Stock

 

We
are authorized to issue 30,000,000 shares of common stock with a par value of $0.001 per share. As of January 25, 2021, there
were 5,742,894 shares of common stock issued and outstanding.

 

The
following summary of the terms of our common stock is subject to and qualified in its entirety by reference to our articles of
incorporation and bylaws, copies of which are on file with the SEC as exhibits to previous SEC filings.

 

Voting
Rights

 

Each
outstanding share of common stock is entitled to one vote on all matters submitted to a vote of stockholders. There are no cumulative
voting rights. Removal of directors requires the vote, in addition to any vote required by law, of not less than eighty percent
(80%) of the total votes eligible to be cast by the holders of all outstanding shares of capital stock entitled to vote generally
in the election of directors at a meeting of stockholders expressly called for that purpose. The approval of the holders of at
least eighty percent (80%) of the outstanding shares of voting stock of the Corporation is required in connection with certain
“Business Combinations” with an Interested Stockholder, as defined in the NRS, after the expiration of three years
after the date the person becomes an Interested stockholder, except in cases where the proposed Business Combination has been
approved in advance by a majority of those members of the board of directors who are unaffiliated with the Interested Stockholder
and who were directors prior to the time when the Interested Stockholder became an Interested Stockholder. Any alteration, amendment,
repeal or rescission of any provision of our articles of incorporation must be approved by the affirmative vote of the holders
of at least eighty percent (80%) of the total votes eligible to be cast by the holders of all outstanding shares of capital stock
entitled to vote thereon; provided, however, if a majority of the board of directors recommends the change, then such change shall
only require the affirmative vote of the holders of a majority of the total votes eligible to be cast by the holders of all outstanding
shares of Capital Stock entitled to vote thereon. Any bylaw may be altered, amended, rescinded, or repealed by the holders of
eighty percent (80%) of the shares of capital stock entitled to vote thereon at any annual meeting or at any special meeting called
for that purpose. Notwithstanding the foregoing, any provision of the bylaws that contains a supermajority voting requirement
shall only be altered, amended, rescinded, or repealed by a vote of the board of directors or holders of shares of capital stock
entitled to vote thereon that is not less than the supermajority specified in such provision.

 

Dividends

 

Each
stockholder is entitled to receive the dividends as may be declared by our board of directors out of funds legally available for
dividends and, in the event of liquidation, to share pro rata in any distribution of our assets after payment of liabilities.
Our board of directors is not obligated to declare a dividend. Any future dividends will be subject to the discretion of our board
of directors and will depend upon, among other things, future earnings, the operating and financial condition of our company,
its capital requirements, general business conditions and other pertinent factors.

 

Other
Rights

 

Upon
liquidation, dissolution or winding up of the corporation, the holders of common stock are entitled to share ratably in all net
assets available for distribution to stockholders after payment to creditors. Our common stock is not convertible or redeemable
and has no preemptive, subscription or conversion rights. There is no conversion, redemption, sinking fund or similar provisions
regarding our common stock.

 

    	 

    	 

    

 

Transfer
Agent

 

The
transfer agent and registrar for our Common Stock is Direct Transfer LLC. Its address is 500 Perimeter Park Drive, Suite D, Morrisville,
North Carolina 27560 and its telephone number is (919) 481-4000. The transfer agent and registrar for any series or class of preferred
stock will be set forth in the applicable prospectus supplement.

 

Preferred
Stock

 

We
are authorized to issue up to 10,000,000 shares of preferred stock, par value $0.001 per share, with such designations, rights,
and preferences as may be determined from time to time by our board of directors. Accordingly, our board of directors is empowered,
without stockholder approval, to issue preferred stock with dividend, liquidation, conversion, voting, or other rights that could
adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock could have
the effect of restricting dividends on our common stock (if any are declared), diluting the voting power of our common stock,
impairing the liquidation rights of our common stock, or delaying or preventing a change in control of our company, all without
further action by our stockholders. As of the date of this Annual Report on Form 10-K, no shares of our preferred stock were outstanding.

 

Stock
Options

 

We
had issued and outstanding options to purchase up to 1,000,000 shares of common stock, exercisable at $5.43 per share.

 

Anti-Takeover
Effects of Certain Provisions of Nevada Law and Our Articles of Incorporation and Bylaws

 

Our
articles of incorporation and bylaws contain a number of provisions that could make our acquisition by means of a tender or exchange
offer, a proxy contest or otherwise more difficult. Certain of these provisions are summarized below.

 

Classified
Board of Directors

 

Pursuant
to our articles of incorporation, the directors constituting our board of directors are classified, with respect to the time for
which they severally hold office, into three classes as nearly equal in number as possible. At each annual meeting of stockholders,
the successors of the class of directors whose term expires at that meeting are elected to hold office for a term expiring at
the annual meeting of stockholders held in the third year following the year of their election. The articles of incorporation
do provide, however, that directors may be removed at any time upon the approval of eighty percent (80%) of the total votes eligible
to be cast by the holders of all outstanding shares of capital stock entitled to vote at a meeting expressly called by stockholders
for such purpose.

 

Our
classified board of directors may have an anti-takeover effect of making more difficult and discouraging a takeover attempt, merger,
tender offer, or proxy fight. Additionally, our classified board of directors extends the time it would take for holders of a
majority of our shares to remove incumbent management to obtain control of the board of directors. That is, as a general matter
a majority shareholder could not obtain control of the board of directors until the second annual shareholder’s meeting
after it acquired a majority of the voting stock. Our classified board of directors may have the effect of making it more difficult
for stockholders to remove our existing management.

 

Special
Meetings

 

Our
articles of incorporation provide that special meetings of our stockholders may, unless otherwise prescribed by law, be called
only by resolution of a majority of the directors of the board then in office, by resolution of a majority of the disinterested
directors then in office, or upon written application, by stockholders holding at least 80% of the capital stock entitled to vote
at the meeting. Our stockholders are not permitted to act by written consent pursuant to our articles of incorporation.

 

    	 

    	 

    

 

Business
Combinations Act

 

The
Business Combinations Act, Sections 78.411 to 78.444 of the NRS, restricts the ability of a Nevada “resident domestic corporation”
having at least 200 stockholders of record to engage in any “combination” with an “interested stockholder”
for two (2) years after the date that the person first became an interested stockholder, unless the combination meets all of the
requirements of the articles of incorporation of the resident domestic corporation and (i) the purchase of shares by the interested
stockholder is approved by the board of directors before that date or (ii) the combination is approved by the board of directors
of the resident domestic corporation and, at or after that time, the combination is approved at an annual or special meeting of
the stockholders of the resident domestic corporation, and not by written consent, by the affirmative vote of the holders of stock
representing at least sixty percent (60%) of the outstanding voting power of the resident domestic corporation not beneficially
owned by the interested stockholder or the affiliates or associates of the interested stockholder.

 

If
this approval is not obtained, then after the expiration of the two (2) year period, the business combination may still not be
consummated unless it is a combination meeting all of the requirements of the articles of incorporation of the resident domestic
corporation and either the “fair price” requirements specified in NRS 78.441 to 78.444, inclusive are satisfied or
the combination is (a) a combination or transaction by which the person first became an interested stockholder is approved by
the board of directors of the resident domestic corporation before the person first became an interested stockholder, or (b) a
combination approved by a majority of the outstanding voting power of the resident domestic corporation not beneficially owned
by the interested stockholder, or any affiliate or associate of the interested stockholder.

 

“Interested
stockholder” means any person, other than the resident domestic corporation or its subsidiaries, who is (a) the beneficial
owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares of the resident domestic corporation
or (b) an affiliate or associate of the resident domestic corporation and at any time within two years immediately before the
date in question was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding
shares of the resident domestic corporation.

 

A
“combination” is broadly defined and includes, for example, any merger or consolidation of a corporation or any of
its subsidiaries with (i) an interested stockholder or (ii) any other entity that after and as a result of the merger or consolidation
would be an affiliate or associate of the interested stockholder; or any sale, lease, exchange, pledge, transfer or other disposition
of assets of the corporation, in one transaction or a series of transactions, to or with an interested stockholder having: (x)
an aggregate market value equal to more than 5% of the aggregate market value of the assets of a corporation, (y) an aggregate
market value equal to more than 5% of the aggregate market value of all outstanding voting shares of a corporation, or (z) representing
more than 10% of the earning power or net income of a corporation.

 

The
provisions of Nevada law, our articles of incorporation and our bylaws could have the effect of discouraging others from attempting
hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock
that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes
in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders
may otherwise deem to be in their best interests.

 

Limitations
of Director Liability and Indemnification of Directors, Officers and Employees

 

Neither
our articles of incorporation nor bylaws prevent us from indemnifying our officers, directors and agents to the extent permitted
under the NRS. NRS Section 78.7502, provides that a corporation shall indemnify any director, officer, employee or agent of a
corporation against expenses, including attorneys’ fees, actually and reasonably incurred by him in connection with any
defense to the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise
in defense of any action, suit or proceeding referred to Section 78.7502(1) or 78.7502(2), or in defense of any claim, issue or
matter therein. NRS 78.7502(1) provides that a corporation may indemnify any person who was or is a party or is threatened to
be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer,
employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’
fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit
or proceeding if he: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he reasonably
believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe his conduct was unlawful.

 

NRS
Section 78.7502(2) provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor
by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the
request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust
or other enterprise against expenses, including amounts paid in settlement and attorneys’ fees actually and reasonably incurred
by him in connection with the defense or settlement of the action or suit if he: (a) is not liable pursuant to NRS 78.138; or
(b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation.

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