Document:

Exhibit 10.4

 

	Banc of America Leasing & Capital, LLC	GUARANTY

 

This Guaranty (this "Guaranty")
is executed and delivered as of the date set forth below by the undersigned guarantor (the "Guarantor") in favor
of Banc of America Leasing & Capital, LLC ("BALC"). BALC may, from time to time, enter into agreements with
Private National Mortgage Acceptance Company ("Customer"). The term "Customer," if defined to
include more than one party, shall mean "Customer and each of them" and this Guaranty shall secure payment of
all of their respective Obligations (hereinafter defined) to BALC. BALC is unwilling to enter into such agreements with Customer,
unless Guarantor absolutely and unconditionally guarantees to BALC the payment and performance of all obligations of Customer at
any time owing to BALC. With knowledge that BALC will enter into agreements with or extend financial accommodations to Customer
in reliance upon the existence of this Guaranty and the validity and enforceability of the obligations and liabilities of Guarantor
to BALC contemplated hereby, Guarantor agrees with BALC as follows:

 

1.Guaranty. Guarantor guarantees
to BALC the prompt payment and/or performance of all indebtedness, obligations and liabilities of Customer at any time owing to
BALC, whether direct or indirect, matured or unmatured, primary or secondary, certain or contingent, or acquired by or otherwise
created in favor of BALC, including without limitation any and all rent, loan, purchase or other installment payments, principal
balances, taxes, indemnities, liquidated damages, accelerated amounts, return deficiency charges, stipulated loss and casualty
value payments, transaction expenses and other reimbursements, administrative charges, all interest, late charges and fees, attorneys’
fees or enforcement and other costs, which may at any time be payable to BALC, together with all claims for damages arising from
or in connection with the failure to punctually and completely pay or perform such obligations, whether or not such obligations
are from time to time reduced or extinguished and thereafter increased or incurred (collectively the "Obligations").
This Guaranty is a guaranty of payment and performance, and not a guaranty of collection, and Guarantor hereby undertakes and agrees
that if Customer does not or is unable to punctually and completely pay or perform any Obligations for any reason, Guarantor shall
(i) punctually pay any such Obligations requiring the payment of money which Customer fails to pay promptly, as and when due, in
each case, as an Obligation for payment due directly from Guarantor to BALC and without any abatement, reduction, setoff, defense,
counterclaim or recoupment, and (ii) punctually perform any and all Obligations not requiring the payment of money for the benefit
of BALC, as an Obligation for performance due directly from Guarantor to BALC. Guarantor shall be deemed to be primarily liable
for each Obligation and not merely as a surety thereof.

 

2.Continuing Nature of Guaranty;
Revocation. This Guaranty is a continuing guaranty and shall in all respects be valid and enforceable without regard to
the form or the amount of the Obligations in existence at any time. Guarantor may prospectively revoke this Guaranty by sending
written notice, certified mail, return receipt requested, to BALC at the address for BALC specified above (the "Revocation
Notice"). The revocation of this Guaranty shall not be effective with respect to any Obligation arising on or prior to
the date occurring fifteen (15) days after BALC's receipt of the Revocation Notice (the "Revocation Date"), or
to any Obligation arising at any time after the Revocation Date if such Obligation arises as the result of a commitment made by
BALC to Customer on or prior to the Revocation Date.

 

3.Absolute, Unconditional, Joint
and Several Nature of Guaranty. The obligations of Guarantor hereunder are absolute and unconditional, and shall be joint
and several with each Guarantor executing this Guaranty and each other party that may be liable, directly or indirectly, for the
payment or performance of any of the Obligations. If this Guaranty is executed by more than one party, the term "Guarantor"
as used herein shall mean (unless the context otherwise requires) "the Guarantor and each of them" and each and
every undertaking shall be their joint and several undertaking. If Customer is a partnership or a limited liability company, the
obligations of Guarantor herein contained shall remain in full force and effect notwithstanding any changes in the individuals
or members comprising the partnership or the limited liability company, and the term "Customer" shall include
any altered or successive partnerships or limited liability companies. Guarantor shall not be released from any obligations under
or in respect of this Guaranty for any reason, nor shall such obligations be reduced, diminished or discharged for any reason,
including without limitation:

 

		(a)	Modifications; Indulgences; Payment Applications. Any modifications, renewals, or
alterations of any agreement, document or instrument relating to any Obligation; any indulgences, adjustments, preferences, extensions
or compromises made by BALC in favor of Customer or Guarantor or any other party; or the application of any payments and receipts,
by whomever paid and/or however realized, to any amounts owing by Guarantor or Customer to BALC in such manner as BALC shall determine
in its sole discretion.

 

		(b)	Condition of Customer or Guarantor. Any insolvency, bankruptcy, arrangement, adjustment,
composition, liquidation, disability, dissolution, appointment of a receiver for, or other similar proceeding affecting Customer
or Guarantor; any sale, lease or other disposition of any of the assets of Customer or Guarantor; any reorganization of, or change
in the composition of the shareholders, partners or members of, Customer or Guarantor; or any termination of, or other change in,
the relationship between Customer and Guarantor.

 

		(c)	Invalidity of Obligations or Other Agreements. The invalidity, illegality or unenforceability
of any Obligation for any reason whatsoever, including, but not limited to: the existence of valid abatements, defenses, counterclaims,
deductions or off-sets to any Obligation; the violation of applicable usury or other laws by any Obligation; or the lack of authenticity
or genuineness of any document or instrument relating to the Obligations. This Guaranty shall be in addition to any other guaranty
or other security for the Obligations, and it shall not be prejudiced or rendered unenforceable by the invalidity or unenforceability
of any such other guaranty or security.

 

		(d)	Release of Customer. Any complete or partial release of Customer or any other party
liable for any Obligation for any reason.

 

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		(e)	Release and Care of Collateral; Status of Liens. Any sale, transfer, release, surrender,
exchange, deterioration, waste, loss or impairment of any property transferred or assigned by Customer, Guarantor or any other
party in respect of any Obligation or otherwise acquired by BALC for lease to Customer or otherwise in connection with any Obligation
(collectively, the "Collateral"), whether negligent or willful; the failure of BALC or any other party to exercise
reasonable care in the preservation, protection, sale or other treatment of any of the Collateral; the failure of BALC or any other
party to create or properly perfect BALC’s rights, title or interests in any Collateral, or any mortgage, pledge, security
interest, transfer or assignment of any Collateral (a "Lien"); the unenforceability of any Lien; the creation
of any lien or encumbrance on any Collateral in favor of any other party, or the subordination of any Lien in favor of BALC to
any such other lien or encumbrance; or the taking or accepting by BALC of any other security for, or assurance of payment of, any
Obligation.

 

		(f)	Other Action or Inaction. Any other action or inaction on the part of BALC, whether
or not such action or inaction prejudices Guarantor or increases the likelihood or amount that Guarantor will be required to pay
or perform in connection with any Obligation pursuant to the terms hereof.

 

It is the obligation of Guarantor to discharge
the Obligations when due, notwithstanding any occurrence, circumstance, event, action or omission whatsoever, whether or not particularly
described herein. Guarantor is not entering into this Guaranty in reliance on the value or the availability of any Collateral.
Guarantor acknowledges that Guarantor may be required to pay the Obligations, in full, without the assistance or support of any
other party. Guarantor has not been induced to enter into this Guaranty on the basis that any party other than Customer will be
liable to perform any Obligations or that BALC will look to any other party to perform any Obligation. BALC may release, or settle
with, the Customer, any Guarantor, or any other party liable, directly or indirectly, for the performance of any Obligation, all
without affecting the liability of any other party to this Guaranty. To the extent that this Guaranty is secured by property of
Guarantor, BALC shall not be obligated to release its security interest in such property until all applicable preference periods
have passed with respect to payments of Obligations made to BALC.

 

4.Waivers. Guarantor waives:

 

		(a)	Action Against Others. Any right to require BALC to: institute suit or exhaust remedies
against Customer or any other party liable for any Obligation; enforce BALC's rights in any of the Collateral or other security
which is at any time given to secure any Obligation; enforce BALC's rights against any other Guarantor or any other party liable
on any Obligation; join Customer or any other party liable for any Obligation in any action seeking to enforce this Guaranty; or
exhaust any other remedies available to BALC or resort to any other means of obtaining payment or performance of any Obligation.

 

		(b)	Notices. Notice of the execution, delivery or acceptance by BALC, Customer or any other party,
of this Guaranty or any document, agreement or instrument evidencing any Obligation; notice of the amount of credit extended by
BALC to Customer at any time, whether primary or secondary; notice of modifications or extensions of any Obligation; notice of
defaults, or other non-performance by Customer in connection with any Obligation; notice of the transfer or disposition by BALC
of any Obligation; notice of the repossession, sale or other disposition of any of the Collateral; notice of the acceptance of
this Guaranty by BALC; demand and presentation for payment upon Customer or any other party liable for any Obligation; protest,
notice of intention to accelerate or notice of acceleration of any Obligation, notice of protest and diligence in bringing suit
against Customer or any other party; and any other action or inaction on the part of BALC in connection with this Guaranty or any
Obligation.

 

		(c)	Subrogation. Any right which Guarantor may at any time have against Customer, or any other party
liable for any Obligation, as a result of the performance by Guarantor of its obligations under this Guaranty, including, but not
limited to contractual, statutory and common law rights of subrogation, reimbursement, indemnification, set-off or contribution,
until all Obligations owing to BALC have been paid and performed in full.

 

		(d)	Suretyship Defenses. Any defenses which Guarantor may have or assert against the enforcement of
this Guaranty or any Obligation based upon suretyship principles or any impairment of Collateral.

 

		5.	Representations; Warranties; Covenants. Guarantor hereby represents, warrants and covenants to
and with BALC that:

 

		(a)	Benefit. Guarantor has received, or will receive, substantial benefit from the agreements and transactions
giving rise to the Obligations and this Guaranty.

 

		(b)	Authorization; Enforceability. This Guaranty has been duly authorized by all necessary action on
the part of Guarantor. The execution, delivery and performance of this Guaranty does not require the approval of, or giving of
notice to, any governmental authority and does not contravene or constitute a default under any applicable laws, or any contract,
mortgage, agreement, indenture, or other instrument to which Guarantor is a party or by which it may be bound. This Guaranty has
been duly executed and delivered by Guarantor and constitutes the legal, valid and binding obligations of Guarantor enforceable
in accordance with its terms except to the extent that the enforcement of remedies hereunder may be limited under applicable bankruptcy
and insolvency laws, and the equitable discretion of any court of competent jurisdiction. To Guarantor’s knowledge, there
are no actions or proceedings pending or threatened against or affecting Guarantor or any of Guarantor’s property before
any court, administrative officer or administrative agency that, if decided adversely, could affect the financial condition or
operations of Guarantor or the ability of Guarantor to perform its obligations hereunder.

 

		(c)	Access to Information; No Representation by BALC. Guarantor has adequate means to obtain continuing
and sufficient information concerning the financial and business condition of the Customer and other parties liable in respect
of the Obligations and BALC shall have no obligation to furnish any such information to Guarantor. Neither BALC nor any other party
has made any representation, warranty or statement to Guarantor in order to induce Guarantor to execute this Guaranty.

 

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		(d)	Subordination. All present and future indebtedness of Customer to Guarantor ("Subordinated
Debt") shall be and hereby is subordinated to the prior payment and performance of all Obligations,. For so long as there
is no default hereunder or in connection with the Obligations or the Subordinated Debt, Guarantor may receive and Customer may
pay (but not prepay, whether or not permitted or contemplated by the terms of the Subordinated Debt) principal and/or interest
or other scheduled installment payments of Subordinated Debt from Customer. At any time while the Obligations are in default, Guarantor
shall not demand or accept any payment of, or otherwise cancel, set-off or otherwise discharge any part of, the Subordinated Debt
without the prior written consent of BALC. Upon the request of BALC, Guarantor shall deliver to BALC a certified statement of the
outstanding Subordinated Debt, specifying in detail the time at which permitted payments of Subordinated Debt were made, if any,
and such other information as BALC may request.

 

		(e)	Financial Condition; Solvency: Reports. As of the date hereof, and after giving effect
to this Guaranty and the contingent obligations contained herein, Guarantor is solvent and has assets which, when fairly valued,
exceed its liabilities. The performance of the obligations of Guarantor hereunder will not cause Guarantor to exceed its ability
to pay its debts as they mature, and this Guaranty is made without any intent to hinder, delay or defraud either present or future
creditors, purchasers or other interested persons. Guarantor shall provide to BALC such financial statements and other financial
and other information concerning Guarantor as BALC may reasonably request from time to time.

 

		(f)	Assignment. BALC may, at any time and without the consent of, or notice to, Guarantor, assign all
or any portion of its rights hereunder to any other party to which all or any portion of the Obligations are transferred, assigned
or negotiated (an "Assignee"). Guarantor shall promptly execute and deliver to BALC or its Assignee such further and
additional documents, instruments and assurances as BALC deems necessary (a) in order to acknowledge and confirm, for the benefit
of BALC or its Assignee, all of the terms and conditions of all or any part of the Obligations or this Guaranty and BALC’s
or Assignee’s rights with respect thereto, and Customer’s and Guarantor’s compliance with all of the terms and
provisions thereof, and (b) to preserve, protect and perfect Lessor’s or Assignee’s right, title or interest hereunder
and in any Collateral, including, without limitation, such UCC financing statements or amendments, control agreements, corporate
or member resolutions, votes, certificates of compliance, notices of assignment or transfers of interests, and restatements and
reaffirmations of Guarantor’s obligations, representations, warranties and covenants hereunder as of the dates requested
by BALC from time to time. This Guaranty shall not be deemed to create any right in any party except as provided herein and shall
inure to the benefit of, and be binding upon, the successors and assigns of Guarantor and BALC, provided that Guarantor shall not
assign or delegate any of its rights or obligations hereunder without the prior written consent of BALC.

 

		(g)	Further Assurances. Guarantor will promptly execute any documents and other records, including,
amendments to this Guaranty, and will take such further action as BALC may reasonably request in order to carry out more effectively
the intent and purposes of this Guaranty and to establish, perfect and protect BALC’s rights and remedies hereunder and in
any Collateral.

 

6.Default; Performance of Obligations.
If (a) Customer defaults in the payment or performance of any Obligation, or (b) if there exists any event or condition which,
with notice and/or the passage of time, would constitute a default under any document, agreement or instrument evidencing an Obligation
(including any default relating to Guarantor or this Guaranty), or (c) any representation or warranty of Guarantor herein or in
any certificate, agreement, statement or document furnished at any time to BALC by or on behalf Guarantor (including without limitation,
any financial information), shall prove to be or to have been false or incorrect in any material respect; or (d) Guarantor shall
fail to perform or observe any covenant (including without limitation, any financial covenants), condition or agreement required
to be performed or observed by it hereunder or in connection with any Obligation, and such failure shall continue for 10 days after
written notice thereof to Guarantor; or (e), or if there is a liquidation, bankruptcy, assignment for the benefit of creditors
or similar proceeding affecting the status, existence, assets or obligations of Customer or any Guarantor or other party liable
to BALC in respect of the Obligations, (each of the foregoing being hereinafter referred to as a “Default”),
then the Obligations of Customer shall, at the sole option of BALC, be deemed to be accelerated and become immediately due
and payable by Guarantor for all purposes of this Guaranty, and Guarantor shall (i) immediately pay directly to BALC all such Obligations
for the payment of money owing to BALC by reason of acceleration or otherwise (including without limitation, any rent, liquidated
damages, principal or interest payments or balances, fees, other installments or any other accrued or unaccrued amounts with respect
to such Obligations), irrespective of whether a Default exists relating to Customer, and notwithstanding any stay, injunction or
other prohibition preventing acceleration of any Obligations against Customer, and (ii) promptly perform all other Obligations.
Guarantor shall be liable, as principal obligor and not as a surety or guarantor only, for all attorneys' fees and other costs
and expenses incurred by BALC in connection with BALC's enforcement of this Guaranty), together with interest on all amounts recoverable
under this Guaranty, compounded monthly in arrears, from the time such amounts become due and payable until the date of payment
at the default rate of interest provided in the agreement evidencing the Obligations (without duplication). If BALC is required
to return any payment made to BALC by or on behalf of Customer, whether as a result of Customer's bankruptcy, reorganization or
otherwise, Guarantor acknowledges that this Guaranty covers all such amounts, notwithstanding that the original of this Guaranty
may have been returned to Guarantor and/or otherwise canceled.

 

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7.Governing Law; Miscellaneous.
THIS GUARANTY AND THE LEGAL RELATIONS OF THE PARTIES HERETO SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES REGARDING THE CHOICE OF LAW. GUARANTOR CONSENTS TO THE JURISDICTION
AND VENUE OF NEW YORK COURTS IN CONNECTION WITH BALC'S ENFORCEMENT OF ANY OBLIGATIONS UNDER OR IN RESPECT OF THIS GUARANTY. GUARANTOR
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS GUARANTY. Federal law requires
all financial institutions to obtain, verify and record information that identifies each entity that obtains a loan or other financial
accommodation. The first time Customer or Guarantor requests a financial accommodation from BALC, BALC will ask for the Customer’s
(or the Guarantor’s) legal name, address, tax ID number and other identifying information. Guarantor shall promptly provide
copies of business licenses or other documents evidencing the existence and good standing of Guarantor requested by BALC. Time
is of the essence in the payment and performance of all Obligations and all of Guarantor's obligations and liabilities owing to
BALC hereunder. This Guaranty constitutes the entire agreement of Guarantor and BALC relative to the subject matter hereof, and
there are no prior or contemporaneous understandings or agreements, whether oral or in writing, between the parties hereto with
respect to the subject matter hereof. Nothing herein shall be deemed or construed to amend, modify, supersede or replace any other
guaranty or other written agreement of the Guarantor in favor of or with BALC without the express written agreement of Banc of
America Leasing & Capital, LLC. No subsequent modification of, or supplement to, this Guaranty shall be enforceable against
any party hereto unless the same is in writing and is duly signed by an authorized manager, member, officer or representative of
the party against whom enforcement is sought. Any notices or demands required or permitted to be given under this Guaranty (a)
shall be given in writing, (b) shall become effective (i) if delivered with receipt acknowledged, such as by Airborne, FedEx, UPS
or other private courier service, on the date of such receipt, (ii) if delivery by either private courier or U. S. Postal Service
is attempted but refused, on the date of such refusal, or (iii) if mailed by certified or registered mail, return receipt requested,
postage prepaid, then on the date of receipt, and (c) shall be addressed to BALC to the attention of Customer Accounts, and to
Guarantor at the address set forth below, or to such other address as the party to receive notice hereafter designates by such
written notice.

 

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The undersigned, pursuant to due corporate,
limited liability company or partnership authority, as appropriate, has or have caused this Guaranty to be executed as of the date
set forth below.

 

Dated as of: December 9, 2015

 

	Witness/Attest/Notary Public:	GUARANTOR:
	 __________________________	PENNYMAC LOAN SERVICES LLC
	 	 
	Name:_________________________	By:   /s/ Pamela Marsh
	 	Name:   Pamela Marsh
	 	Title:   Executive Vice President, Treasurer
	 	 
	 	Address:  6101 Condor Dr.
	 	Moorpark, CA 93021
	 	_________________
	 	Guarantor's Taxpayer ID:____________

 

 

 

 

 

 

 

 

 

 

 

    	5Exhibit 10.5

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(“Agreement”) is made on this 8th day of December, 2015 (“Effective Date”), among Private National Mortgage
Acceptance Company, LLC (“PNMAC” or the “Company”) and PennyMac Financial Services, Inc. (“PFSI”),
each having a principal place of business at 6101 Condor Drive, Moorpark, CA 93021, and Stanford L. Kurland (“Executive”),
whose residence is at 6005 Williams Bent Road, Hidden Hills, California 91302.

 

RECITALS

 

WHEREAS, PNMAC is a validly
existing Delaware limited liability company duly organized under the Fourth Amended and Restated Limited Liability Company Agreement
Of Private National Mortgage Acceptance Company LLC entered into as of May 8, 2013 (the “PNMAC LLC Agreement”);

 

WHEREAS, PFSI is a validly
existing Delaware corporation duly organized under the Amended and Restated Certificate of Incorporation of PennyMac Financial
Services, Inc. filed with the Securities and Exchange Commission (the “SEC”) on May 14, 2013, and the Amended and Restated
Bylaws of PennyMac Financial Services, Inc. filed with the SEC on August 19, 2013;

 

WHEREAS, Executive currently
serves as PNMAC’s Chief Executive Officer (“CEO”), and PFSI’s CEO and Chairman;

 

WHEREAS, PNMAC and PFSI
executed an employment agreement with Executive effective April 20, 2013 that, by its terms, will expire on or before April 20,
2016 (the “April 2013 Employment Agreement”);

 

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

 

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

 

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

 

AGREEMENT

 

1.Term. PNMAC hereby agrees to employ
Executive and Executive hereby accepts employment with PNMAC for the period commencing with the Effective Date and expiring on
December 31, 2018 unless earlier terminated in accordance with the provisions hereof (the “Term”).

 

2.Duties. Executive shall continue
to be employed by PNMAC as the CEO of PNMAC and shall also continue to serve as the CEO and Chairman of PFSI, and shall perform
the usual and customary duties of such offices. Executive shall report only to the board of directors of PFSI (the “Board”),
and shall have general supervision, direction, and control of the business, officers, and employees of PNMAC. All officers and
employees of PNMAC shall report directly or indirectly to Executive. Executive shall have full latitude to hire, discharge, discipline,
promote, and compensate PNMAC officers and employees, and shall have full managerial and financial authority over PNMAC, subject
to such directions and control as the Board may specify from time to time. The duties and title of Executive may be changed from
time to time by the mutual consent of Executive, PFSI, and PNMAC without resulting in a breach or rescission of this Agreement.
Notwithstanding any such change from the duties originally assigned and specified above, or hereafter assigned, the employment
of Executive shall be construed as continuing under this Agreement as modified; provided, however, that any material diminution
in Executive’s duties imposed by PNMAC or PFSI without Executive’s consent shall be construed as a termination of Executive
Other Than for Cause as described in Section 7(d) of this Agreement.

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

 

4.Board Appointment. For so long
as Executive is employed by PNMAC under this Agreement, Executive shall serve as Chairman of the Board, and no PNMAC employees
other than Executive and David A. Spector shall serve on the Board of Trustees of PennyMac Mortgage Invetment Trust (“PMT”).
Executive shall fulfill all duties required of a member of the Board without any additional compensation. In the event Executive’s
employment is terminated in accordance with this Agreement or Executive resigns or otherwise becomes unaffiliated with PNMAC, Executive
shall, and does hereby agree to, tender his written resignation from the Board effective on the date of termination, resignation
or non-affiliation.

 

5.Compensation and Benefits.

 

(a)Base Salary. In consideration for
Executive’s services hereunder, during the Term PNMAC shall pay or cause to be paid as base salary to Executive an amount
of not less than one million Dollars ($1,000,000.00) per year, prorated for any partial years of service, less any applicable deductions.
Said base salary shall be payable in conformity with PNMAC’s normal payroll periods. Executive’s base salary shall
increase annually at a rate determined by the Board and the Compensation Committee. For all purposes of this Agreement, the “Compensation
Committee” shall mean the compensation committee of PFSI. Increases in base salary shall be effective not later than April
1 of the Fiscal Year in which the increase is granted. For purposes of this Agreement, the term “Fiscal Year” shall
mean the period beginning on January 1 and ending on December 31 during the Term of this Agreement.

 

(b)Cash Incentive Compensation. During
the Term, Executive shall be eligible to participate in all executive incentive programs offered by PNMAC. PNMAC shall pay to Executive
for each of the Fiscal Years during the Term of this Agreement an annual cash incentive compensation award at a level determined
by the Board and the Compensation Committee pursuant to an annual targeting process establishing performance targets and designating
cash incentive compensation to be earned as a result of meeting those performance targets (the “Bonus”); provided,
however, that the annual performance targets established for Executive and the cash incentive to be earned as a result of meeting
those targets shall each be set at levels and amounts at least as favorable to Executive as those for other senior executives at
PNMAC. The Bonus shall be paid to Executive in the year following the year to which the Bonus relates at the same time that such
cash incentive compensation is paid to other PNMAC senior executives, and no later than October 31st of such year, provided
that, except as set forth in Sections 7(a), (b), and (d), Executive must be employed on December 31st of the year to which
the Bonus relates to receive any portion of the Bonus.

 

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(c)Equity Incentive Compensation. PNMAC
shall grant to Executive equity incentive compensation pursuant to the terms of PFSI’s 2013 Equity Incentive Plan (the “EIP”)
or any other equity incentive plan adopted by PNMAC or PFSI for each of the Fiscal Years during the Term of this Agreement in a
form and amount determined by the Board and the Compensation Committee pursuant to an annual targeting process establishing performance
targets and designating equity incentive compensation to be earned as a result of meeting those performance targets; provided,
however, that the annual performance targets established for Executive and the equity incentive compensation to be earned as
a result of meeting those targets shall each be set at levels and amounts at least as favorable to Executive as those for other
senior executives at PNMAC. The equity incentive compensation shall be granted at the same time as PNMAC grants equity incentive
compensation to its other senior executives in respect of such Fiscal Year (but in no event later than June 30 following the end
of such Fiscal Year). Any equity incentive compensation granted to Executive pursuant to this Section 5(c) shall vest in accordance
with the terms set forth in the EIP; provided however, that notwithstanding anything to the contrary contained in the EIP
or any other document, any unvested equity incentive compensation granted to Executive pursuant to this Section 5(c) shall automatically
and immediately vest if any of the following events occur: (i) Executive’s death; (ii) Executive’s Disability as defined
in Section 7(a); (iii) PNMAC’s termination of Executive Other Than for Cause as described in Section 7(d) of this Agreement;
(iv) Executive’s termination of this Agreement for Good Reason as that term is defined in Section 7(d) of this Agreement;
or (v) the expiration of the Term pursuant to Section 1 of this Agreement before any new agreement is reached to continue Executive’s
services to PNMAC. Earnings on vested equity granted pursuant to this Section 5(c) shall be considered past cash compensation (i.e.,
“sweat equity”), whereas earnings on equity that has not yet vested shall be considered current cash compensation.
In the event of a sale, merger, consolidation, reorganization, restructuring or transfer of assets of PNMAC or PFSI in which PNMAC
or PFSI, as applicable, is not the surviving entity or in which it survives as a subsidiary of another entity (a “Transaction”),
and the shares or equity securities of the surviving entity or parent thereof are publicly traded on a recognized stock exchange
or over the counter market, the equity incentive compensation to be granted pursuant to this Section 5(c) after the date of the
Transaction shall be granted in accordance herewith in the form of securities of the surviving entity or parent thereof, as applicable.
To the extent that any of the terms of this Agreement governing Executive’s equity incentive compensation conflict with anything
contained in the PNMAC LLC Agreement, the EIP or any other document, the terms of this Agreement control and supersede any such
contrary provisions.

 

(d)Paid Time Off. During the Term,
Executive shall accrue twenty (20) days of paid time off (“PTO”) at Executive’s regular base pay rate during
each year of the Term, prorated for partial years worked, subject to the terms of PNMAC’s employment benefit policies as
they relate to senior executive officers.

 

(e)Medical Benefits. During the Term,
PNMAC shall pay for Executive to undergo an annual comprehensive executive physical appropriate for chief executives such as Executive.
In addition, Executive and Executive’s family shall be entitled to participate in PNMAC’s group medical insurance benefits,
in accordance with PNMAC’s employment benefit policies as they relate to senior executive officers and their families. If
Executive is terminated pursuant to Section 7(a), (b), or (d), PNMAC will reimburse Executive for any amounts paid by Executive
for coverage of Executive and/or Executive’s family under the Company’s group health medical benefits plan pursuant
to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for as long as Executive is eligible to receive such
benefits under COBRA, on the condition that Executive timely elects COBRA and provides the Company with proof of payment of the
applicable COBRA premiums on a monthly basis; provided however, that the reimbursement described in this Section 5(e) shall
be subject to and paid only if and to the extent (1) such reimbursement is permitted by the Patient Protection and Affordable Care
Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, and other applicable law, and (2) Executive
is not otherwise eligible or entitled to participate in group medical benefits offered by a subsequent employer. If PNMAC’s
reimbursement of Executive for COBRA-related payments under this subparagraph 5(e) is not permitted by the Patient Protection and
Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, and Executive is not otherwise
eligible or entitled to participate in group medical benefits offered by a subsequent employer, then PNMAC shall discontinue the
COBRA-related payments provided for in this subparagraph 5(e) and, in such case, PNMAC will pay Executive an amount equal to the
amount that Executive would otherwise be entitled to receive for reimbursement of COBRA-related payments.

    	3

     

    

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

 

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

 

(h)Additional Benefits. Executive shall
be entitled to participate in all programs, rights, and benefits for which Executive is otherwise entitled under any bonus plan,
incentive plan, participation plan, extra compensation plan, pension plan, profit sharing plan, savings plan, life, medical, dental,
other health care, disability, or other insurance plan or policy or other plan or benefit that PNMAC or PFSI may provide for senior
executives or for employees of PNMAC generally, if any, in force from time to time during the Term. For the avoidance of doubt,
the rights granted or afforded to Executive under any such plans shall not be less than the most favorable rights and highest amounts
granted to employees of similar or lower position with PNMAC and on terms at least as favorable, and, for the purposes of such
plan, Executive shall receive credit for the entire period of his employment with PNMAC (including his employment with PNMAC prior
to the execution of this Agreement). To the extent that anything contained in any such plans or programs is in conflict or inconsistent
with anything stated in this Agreement, the terms of this Agreement shall control and supersede any contrary language except as
prohibited by law. In addition, PNMAC shall pay Executive the amount necessary to reimburse Executive for any self-employment tax
liabilities.

 

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

 

(a)Each such expenditure is of a nature qualifying
it as a proper deduction on the federal and state income tax returns of PNMAC as a business expense and not as deductible compensation
to Executive; and

 

(b)Executive furnishes to PNMAC adequate records,
including receipts for any expenditures greater than twenty-five dollars ($25.00), and other documentary evidence required by federal
and state statutes and regulations issued by the appropriate taxing authority for the substantiation of such expenditures as deductible
business expenses of PNMAC and not as deductible compensation to Executive.

 

7.Termination. During the Term, Executive’s
employment may be terminated only as provided in this Section 7. Except as set forth in this Agreement, the Company shall have
no further obligation to Executive or liability under this Agreement by way of compensation, post termination benefits or obligations
or otherwise upon the Termination Date. Notwithstanding anything to the contrary in this Agreement or any other document, the termination
of Executive’s employment for any reason shall not affect Executive’s ownership of Class A Units of PNMAC or Class
A Common Stock of PFSI, and shall not affect Executive’s entitlement to all benefits which have vested or which are otherwise
payable in respect of periods ending prior to the termination of his employment; provided, however, that upon Executive’s
termination, PFSI shall have the right to exchange Executive’s Class A Units of PNMAC into Class A Common Stock of PFSI pursuant
to and in accordance with the terms of the Exchange Agreement dated May 8, 2013 between PNMAC, PFSI and the Company Unitholders
(as defined therein) (the “Exchange Agreement”).

    	4

     

    

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

 

(b)Death. In the event that Executive
dies during the Term of this Agreement, this Agreement shall automatically terminate on the date of Executive’s death. Upon
termination by PNMAC due to Executive’s death pursuant to this Section 7(b), Executive’s estate shall be entitled to:
(i) continuing payment of Executive’s base salary as of the Termination Date through the Termination Date and for a period
of six (6) months following the Termination Date; (ii) if not previously paid prior to the Termination Date, incentive based compensation
as described in Sections 5(b) and 5(c) of this Agreement for the year prior to the Fiscal Year in which the Termination Date occurs;
(iii) accrued but unused PTO through the Termination Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive
pursuant to Section 6 of this Agreement; (v) a prorated share of the incentive based compensation described in Sections 5(b) and
5(c) for the Fiscal Year in which Executive dies payable in accordance with those Sections; and (vi) continuing medical benefits
as set forth in Section 5(e) herein. In addition, in the event of Executive’s death, all unvested Class A Units of PNMAC
and Class A Common Stock of PFSI held by Executive, and, as applicable, any other Award (as that term is defined in the EIP) granted
to Executive pursuant to the EIP, shall become immediately and fully vested.

 

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

    	5

     

    

(d)Termination Other Than for Cause.
The Company may terminate Executive’s employment other than for Cause (including the expiration of Executive’s Term
pursuant to Section 1 above) or Executive may terminate his employment for Good Reason as that term is defined in this Section
7(d). If Executive’s employment terminates pursuant to this Section 7(d), then Executive shall be entitled to (i) his base
salary in effect as of the Termination Date through and including the Termination Date (as that term is defined in Section 7(g)
herein); (ii) if not previously paid prior to the Termination Date, incentive based compensation as described in Sections 5(b)
and 5(c) of this Agreement for the year prior to the Fiscal Year in which the Termination Date occurs; (iii) accrued but unused
PTO through the Termination Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of
this Agreement; (v) a prorated share of the incentive based compensation described in Sections 5(b) and 5(c) for the Fiscal Year
in which the Termination Date occurs, payable in accordance with those Sections, and (vi) continuing medical benefits as set forth
in Section 5(e) herein. In addition, in the event Executive’s employment is terminated pursuant to this Section 7(d), all
unvested Class A Units of PNMAC and Class A Common Stock of PFSI held by Executive, and, as applicable, any other Award (as that
term is defined in the EIP) granted to Executive pursuant to the EIP, shall become immediately and fully vested.

 

For purposes of this Agreement, Executive will
have “Good Reason” to terminate this Agreement if PNMAC (or any resulting or surviving entity in the event of a Transaction
as defined in Section 5(c) of this Agreement) (1) materially breaches this Agreement; (2) requires Executive to report to anyone
other than the Board; (3) requires that Executive be based anywhere more than fifty (50) miles from the office where Executive
is located as of Effective Date; (4) takes any other action which results in a material diminution or adverse change in Executive’s
status, title, position, compensation, or responsibilities as of the Effective Date, other than an insubstantial action not taken
in bad faith and remedied promptly after receipt of notice by Executive; or (5) fails to indemnify and advance all expenses to
Executive in response to a proper request for indemnity and advancement by Executive, provided, however, Executive’s
resignation for Good Reason will only be effective if Executive provides written notice to the Company of the events constituting
the Good Reason within ninety (90) days after the occurrence of any such event, and the Company does not cure said events within
thirty (30) days after receipt of the notice. In addition, Executive will have “Good Reason” to terminate this Agreement
at his option at any time on or after June 11, 2017, subject only to the notice provisions set forth in Section 7(g).

 

(e)Termination Following a Change of Control.
This Agreement and Executive’s employment shall not automatically terminate due to a “Change of Control” as that
term is defined in the PNMAC LLC Agreement. In the event of a Change of Control, PNMAC shall take all actions necessary to ensure
that the surviving or resulting entity, if other than PNMAC, is bound by and shall have the benefit of the provisions of this Agreement.

 

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

 

(g)Notice of Termination. Any purported
termination by PNMAC or by Executive shall be communicated by a written notice of termination (the “Notice of Termination”)
to the other party hereto which indicates the specific termination provision in this Agreement, if any, relied upon and which sets
forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis for termination of Executive’s
employment under the provision so indicated. For purposes of this Agreement, and except as expressly provided otherwise herein,
no such purported termination shall be effective without such Notice of Termination. The “Termination Date” shall mean
the date specified in the Notice of Termination, which shall be not less than thirty (30) and not more than sixty (60) days from
the date of the Notice of Termination; provided, however, that in the event of the expiration of the Term of this Agreement
pursuant to Section 1 herein, the Termination Date shall be the three year anniversary of the Effective Date of this Agreement.

    	6

     

    

(h)Consulting. Upon (i) expiration
of the Term pursuant to Section 1 herein, (ii) termination of this Agreement pursuant to Section 7(d) herein, Executive shall serve
as a consultant to PNMAC (or in the event of a Transaction, to the surviving entity or parent) for an eighteen-month period commencing
on the Termination Date (the “Consulting Period”); provided, however, that if Executive remains employed with
PNMAC following the expiration of the Term pursuant to Section 1 herein, then the Consulting Period shall commence on the first
day after Executive ceases to be employed by PNMAC. During the Consulting Period, Executive shall make himself available for consulting
services concerning PNMAC’s (or its successor’s) general operations if and as may be reasonably requested by PNMAC
after taking into account Executive’s then full-time, non-PNMAC-related employment opportunities, provided that (a)
the consulting services shall be rendered at such location(s) as may be mutually agreed upon by Executive and PNMAC and (b) the
nature of and time required for the consulting services do not interfere with Executive’s personal and professional activities.
The consulting services shall be of an advisory nature and, in his role as a consultant, Executive shall have no power to bind
PNMAC. In consideration for the consulting services described in this Section 7(h), PNMAC shall pay to Executive a retainer in
monthly installments during the entire Consulting Period, with each monthly payment equal to one-twelfth of Executive’s median
annual base salary and one-twelfth of Executive’s median annual incentive compensation, as calculated based on Executive’s
annual base salary and target incentive compensation for the year in which the Termination Date occurs and his annual base salary
and actual incentive compensation for the two preceding years; provided, however, that the consulting relationship shall
automatically terminate, and Executive shall not be entitled to continue receiving monthly payments under this Section 7(h), if
he, directly or indirectly, engages in, provides services to, works for, consults with, owns, invests in or operates, any business
that competes with the business of PNMAC (or in the event of a Transaction, of the surviving entity or parent). The Company shall
provide Executive written notice if it contends Executive has breached any provision in this Section 7(h), and Executive shall
have thirty (30) days following receipt of such notice to cure any alleged breach.

 

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

 

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

    	7

     

    

If and to the extent necessary to comply with
Code Section 409A, for the purposes of determining when amounts otherwise payable on account of Executive’s termination of
employment under this Agreement will be paid, “terminate”, “terminated” or “termination” or
words of similar import relating to Executive’s employment with the Company, as used in this Agreement, shall be construed
as the date that Executive first incurs a “separation from service” within the meaning of Code Section 409A from the
Company. In applying Code Section 409A to amounts paid pursuant to this Agreement, any right to a series of installment payments
under this Agreement shall be treated as a right to a series of separate payments. Any taxable reimbursement of business or other
expenses provided for under this Agreement shall be subject to the following conditions: (i) the expenses eligible for reimbursement
in one taxable year shall not affect the expenses eligible for reimbursement in any other taxable year; (ii) the reimbursement
of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (iii)
the right to reimbursement shall not be subject to liquidation or exchange for another benefit.

 

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

 

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

 

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

 

11.Non-Solicitation. During the Term
of this Agreement, and for eighteen (18) months following the Termination Date, Executive shall not, directly or indirectly, either
for or on behalf of himself or any other person or entity, solicit or induce or attempt to solicit or induce any employee, consultant,
independent contractor, agent or representative of the Company, or any parent, subsidiary or affiliate thereof, to discontinue
employment or engagement with the Company or any parent, subsidiary or affiliate thereof; or otherwise interfere or attempt to
interfere with the relationship between the Company, or any parent, subsidiary or affiliate thereof, and their employees, consultants,
independent contractors, agents or representatives.

 

12.Miscellaneous.

 

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

    	8

     

    

 

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

 

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

 

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

 

(e)Governing Law, Venue Selection, and
Arbitration. This Agreement is to be governed by and construed in accordance with the laws of the State of California without
regard to its choice of law provisions. The parties hereto agree that this Agreement was negotiated and executed in Los Angeles,
California. Any controversy, dispute or claim arising out of or relating to this Agreement, the breach thereof, Executive’s
employment, including the termination thereof, and/or the enforceability or validity of this arbitration agreement, shall first
be settled through good faith negotiation. If the dispute cannot be settled through negotiation, the parties agree to binding arbitration
administered by JAMS pursuant to its Employment Arbitration Rules & Procedures and subject to JAMS Policy on Employment Arbitration
Minimum Standards of Procedural Fairness. Executive acknowledges that he has been provided a copy of the JAMS rules contemporaneously
herewith. The parties agree that any such arbitration will be heard in Los Angeles, California, and that judgment on any arbitration
award may be entered in any court having jurisdiction. The Company shall pay the arbitration administrative costs and the arbitrator’s
fees in accordance with California law and the JAMS rules. Each party will bear its/his own attorneys’ fees and legal costs,
provided, however, (i) if any party prevails on a statutory claim which affords the prevailing party attorneys’ fees
or legal costs, the arbitrator may award reasonable attorneys’ fees and/or legal costs to the prevailing party to the extent
permitted by applicable law, or (ii) if any party prevails on a non-statutory claim, the arbitrator shall award reasonable attorneys’
fees and/or legal costs to the prevailing party to the extent permitted by applicable law. The parties agree to file any demand
for arbitration within the time limit established by the applicable statute of limitations for the asserted claims. Failure to
demand arbitration within the prescribed time period shall result in waiver of said claims. EXECUTIVE UNDERSTANDS AND AGREES THAT
HE IS WAIVING HIS RIGHTS TO BRING SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL.

 

(f)Acknowledgment of Past Performance and
Mutual Releases. This Agreement supersedes the April 2013 Employment Agreement. The parties hereby agree and acknowledge that
Executive, PNMAC, and PFSI have met all of their respective performance obligations under the April 2013 Employment Agreement,
and that, upon the execution of this Agreement, Executive, PNMAC, and PFSI will not have any remaining obligations or liabilities
in connection with the April 2013 Employment Agreement. It is the intention of Executive, PNMAC and PFSI that this Agreement shall
be effective as a full and complete release of any claims they (or their successors or assigns) may have in connection with the
April 2013 Employment Agreement. In furtherance of this intention, Executive, PNMAC, and PFSI each acknowledge and agree to waive
any rights or benefits they may have under Section 1542 of the California Civil Code, which reads as follows: “A general
release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing
the release, which if known to him or her must have materially affected his or her settlement with the debtor.” Executive,
PNMAC, and PFSI each covenant not to bring any lawsuit related to or arising out of the April 2013 Employment Agreement.

    	9

     

    

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

 

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

 

(i)Interpretation. If any claim is
made by any party hereto relating to any conflict, omission or ambiguity of this Agreement, no presumption or burden of proof or
persuasion shall be implied by reason of the fact that this Agreement was prepared by or at the request of any particular party
hereto or such party’s counsel. Executive acknowledges that he has been represented by counsel of his choice throughout the
negotiation and drafting of this Agreement.

 

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

 

 

 

 

In
Witness Whereof, the parties hereto have executed this Agreement as of the day and year first above written.

 

	
        PRIVATE NATIONAL mORTGAGE
        

ACCEPTANCE COMPANY, LLC: 

         

        By: /s/ Jeffrey P. Grogin

        Name: Jeffrey P. Grogin

        Title: Chief Administrative and Legal Officer
	
        PENNYMAC FINANCIAL SERVICES,
        INC.:

        

        

        By: /s/ Matthew Botein

        Name: Matthew Botein

        Title: Chairman of the Compensation Committee

        of the Board of Directors

	 	 
	 	
        EXECUTIVE: 

         

        /s/ Stanford L. Kurland

        Stanford L. Kurland

 

 

 

 

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