Document:

exv10w5

 

Exhibit 10.5

SEPARATION AGREEMENT

     THIS SEPARATION AGREEMENT (the “Agreement”) is made and entered into by and between Eleanor
Melton (“Employee”) and Proserpine, LLC (the “Company”) effective as of the date executed by
Employee below.

     WHEREAS, Employee’s employment with the Company will be or has been concluded as of September
30, 2007 (the “Separation Date”);

WHEREAS, Employee is a Senior Vice President and its Chief Credit Officer; and

     WHEREAS, Employee and the Company desire to resolve any and all matters and differences
arising from Employee’s employment and/or separation on mutually satisfactory terms as set forth
herein;

     NOW, THEREFORE, for and in consideration of the covenants, promises, and agreements set forth
herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1.     Separation: Employee will be or has been relieved of all duties effective as of the
Separation Date. Employee agrees that Company, including any of its parents, subsidiaries, or
affiliates, have no obligation to rehire Employee, and Employee waives any claim against the
Company, including any of its parents, subsidiaries, or affiliates, for failing to rehire her in
the future.

2.     Separation Benefit: For and in consideration of the releases and other obligations of
Employee described in this Agreement, the Company will provide Employee with the following special
separation benefits:

	 	 	 	(a)   Employee will continue to receive her regular salary on the standard Company paydays
through December 31, 2007. Employee acknowledges and understands that, if she fails to
abide by the terms of this Agreement, the Company may terminate her salary immediately;

	 	 	 	(b)   Employee will receive her health insurance on the same terms as an active employee
through December 31, 2007. Employee acknowledges and understands that, if she fails to
abide by the terms of this Agreement, the Company may terminate her health insurance
immediately;

	 	 	 	(c)   Employee understands and agrees that, except as set forth in Paragraph 2(b), no Company
benefits will be available to Employee or will accrue in favor of Employee after September
30, 2007.

3.     If Employee revokes this Agreement within seven (7) days of executing this Agreement pursuant to
Paragraph 5 below, Employee shall return any special separation payment previously paid to her
within five (5) days of such revocation.

CONFIDENTIAL

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Employee benefits not specifically addressed in this Agreement will be provided in accordance with
the terms of the applicable plan(s). Employee acknowledges that the payment and benefits described
in this Agreement constitute a special separation benefit which the Company is providing in its
discretion due to unique circumstances and that Employee is not otherwise entitled to receive this
entire separation benefit from the Company. Employee further agrees that there are no outstanding
or unpaid debts, money, wages, or benefits owed to Employee by the Company or any of the Releasees
as defined in Paragraph 4 below. Nothing in this Agreement shall be deemed an admission by the
Company of a violation of any statute, law, or right, or of any wrongdoing or liability of any
kind.

4.     Release: For and in consideration of the payment and benefits set forth above and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Employee hereby releases, acquits, and forever discharges the Company and all of its parents,
subsidiaries, partners, joint venturers, affiliated entities, owners, shareholders, benefit plans,
fiduciaries, and plan sponsors, and each of their officers, directors, employees, representatives,
and agents, and all successors and assigns thereof (the “Releasees”), from any and all claims,
charges, complaints, demands, liabilities, obligations, promises, agreements, controversies,
damages, actions, causes of action, suits, rights, entitlements, costs, losses, debts, and expenses
(including attorneys’ fees and legal expenses), of any nature whatsoever, known or unknown, which
Employee now has, had, or may hereafter claim to have had against the Company, of any kind or
nature whatsoever, arising from any act, omission, transaction, occurrence, or event which has
occurred or is alleged to have occurred up to the date this Agreement is executed by Employee.
This release includes, but is not limited to, a knowing and voluntary waiver of all claims relating
in any way to Employee’s employment with the Company or the conclusion of that employment, whether
such claims are now known or are later discovered. The claims knowingly and voluntarily waived by
Employee include, but are not limited to, claims under Title VII of the Civil Rights Act of 1964,
42 U.S.C. § 1981, the Americans with Disabilities Act, the Family and Medical Leave Act, the Age
Discrimination in Employment Act, the Fair Labor Standards Act or any other federal or state wage
and hour law, the Employee Retirement Income Security Act, breach of contract, infliction of
emotional distress, any other federal or state law pertaining to employment or employment benefits,
and any other claims of any kind based on any contract, tort, ordinance, regulation, statute, or
constitution based on any act, omission, transaction, occurrence, or event which has occurred or is
alleged to have occurred up to the date this Agreement is executed by Employee; provided, however,
that nothing in this Agreement shall be interpreted to release any claims which Employee may have
for workers’ compensation benefits. In addition to the other acknowledgments in this Agreement,
Employee acknowledges that this Agreement may be pled as a complete defense and shall constitute a
full and final bar to any claim for damages or other relief based on any matters released herein.
Employee does not waive any claims which arise from acts occurring after the date that Employee
signs this Agreement.

5.     ADEA Provisions: Also included among the claims knowingly and voluntarily waived and
released by Employee above are any claims under the Age Discrimination

CONFIDENTIAL

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in Employment Act (“ADEA”). Employee acknowledges that the Company provided Employee with a copy
of the Agreement in advance of her execution of the Agreement and advised her by means of this
written Agreement: (a) to consult with an attorney of Employee’s choosing prior to executing the
Agreement; (b) that Employee has a period of forty-five (45) days to review and consider the
Agreement before executing it; (c) that this Agreement will not become effective or enforceable
until the expiration of seven (7) days after the date Employee executes it; and (d) that Employee
may revoke it by providing written notice personally delivered or deposited in the U.S. Mail,
postage prepaid, certified or registered mail, return receipt requested addressed as follows: Mr.
Christopher Zyda, Luminent Mortgage Capital, Inc., 101 California Street, Suite 1350, San
Francisco, CA 94111. Unless Employee provides written notice of such revocation, the Agreement
will become effective and irrevocable upon the expiration of that seven (7) day period.
Notwithstanding anything contained herein to the contrary, Employee understands and agrees that, if
Employee fails to sign the Agreement on or before the expiration of forty-five (45) days of the day
Employee received it, or if Employee revokes the Agreement before the expiration of seven (7) days
after executing it, the Agreement shall not become effective or enforceable and Employee will not
be entitled to receive any payments or benefits under this Agreement not otherwise payable absent
this Agreement. Pursuant to 29 C.F.R. § 1625.22(e)(4), Employee and Company agree that any changes
made to this proposed Agreement during the running of or after the expiration of the forty-five
(45) day period, whether material or immaterial, do not restart the running of the forty-five (45)
day period.

6.     Confidential Information: Employee recognizes the interest of the Company in maintaining
the confidential nature of its proprietary and other business documents, records, and information,
including but not limited to personnel records and information, financial records and information,
and lists of actual or potential customers or suppliers (whether or not constituting a trade secret
under applicable law) which have been disclosed to Employee or of which Employee became aware
through employment with the Company and which has value to the Company and is not generally known
to its competitors (the “Confidential Information”). Employee and Employer agree that Confidential
Information does not include any information Employee brought to the Company when she began her
employment with the Company. Employee covenants that, for a period of one (1) year after the
Separation Date, Employee shall not, directly or indirectly, except as expressly authorized by the
Company, use, give, sell, transfer, transmit, or disclose any Confidential Information for any
purpose. These provisions are in addition to, and not in lieu of, the restrictions afforded trade
secrets as defined under applicable law. Nothing in this Agreement shall authorize the disclosure
of trade secrets at any time.

7.     Non-Disparagement: Employee covenants and agrees that Employee will not make any
negative or derogatory remarks, comments, representations, or observations about the Company, its
parent, or any Company employee or official. Company covenants and agrees that it will not make
any negative or derogatory remarks, comments, representations, or observations about Employee.

CONFIDENTIAL

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8.     Return to Company: Employee warrants, represents, covenants, and agrees that, except as
specifically provided herein, Employee has returned or will return to the Company within five (5)
business days after the execution of this Agreement by Employee all Confidential Information and
all other Company documents, records, property, and information in any form, and all embodiments,
copies, or extracts thereof, which Employee has acquired or possessed during Employee’s employment
and that Employee has not made or retained and shall not make or retain any embodiment, copy, or
extract thereof. Employer agrees that Employee may retain a copy of the “Underwriting Guidelines
and Operating Procedures” that she drafted. Employee will not alter or destroy any Company
documents, data or records in Employee’s possession or control, and Employee will abide by document
retention procedures that the Company has put into effect.

9.     Cooperation and Non-Interference. Employee covenants and agrees that Employee will
cooperate reasonably and truthfully with the Company to the extent that it so requests in
connection with any legal or business dispute or issue concerning which, during Employee’s
employment with the Company, Employee was involved or had knowledge. Employee agrees to be
available as reasonably requested by the Company or its counsel. The Company will agree to
reimburse Employee for reasonable travel and business expenses approved by the Company in advance
and incurred by Employee pursuant to this provision which are supported by receipts and other
documentation as necessary to verify such expenses. Employee covenants and agrees not to make any
intentional statement, oral or written, or to perform any intentional act or omission for the
purpose of causing, or reasonably expected to cause, any material harm to the Company’s business,
business relationships, operations, goodwill, or reputation. Employer covenants and agrees not to
make any intentional statement, oral or written, or to perform any intentional act or omission for
the purpose of causing, or reasonably expected to cause, any material harm to Employee, her
business relationships, or her reputation. This provision is in addition to, and not in lieu of,
the substantive protections under applicable law relating to defamation, libel, slander,
interference with contractual or business relationships, or other statutory, contractual, or tort
theories.

10.     Indemnification: Nothing in this Agreement is intended to modify in any fashion
Employee’s indemnification rights as set forth in Article VII of the Company’s Third Amended and
Restated By-Laws and Article VIII of the Company’s Articles of Incorporation, which are
incorporated herein by reference.

11.     Vacation Pay: Company agrees to pay Employee accrued, but unused vacation pay in the
amount of $19,188.19, less applicable withholdings, in her September 30, 2007 paycheck.

12.     Entire Agreement: This Agreement constitutes the final and entire agreement between the
parties on the subject matter herein, and no other representation, promise, or agreement has been
made to cause Employee to sign this Agreement. Any other agreements regarding the terms of
Employee’s separation from the Company or the subject matter herein shall be merged into and
superseded by this Agreement except as

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CONFIDENTIAL

expressly set forth herein. Notwithstanding the foregoing, the terms and covenants of prior
agreements between the Company and Employee relating to confidentiality, non-solicitation, and
alternative dispute resolution that are contained in the Employee Confidentiality Agreement, the
Acknowledgement and Agreement to be Bound by the Alternative Dispute Resolution Program, or any
other agreement which contains similar terms and covenants that survive the separation of
Employee’s employment, shall remain in full force and effect. This Agreement shall be deemed to be
made in, and in all respects shall be interpreted, construed, and governed by and in accordance
with the laws of the State of Pennsylvania, notwithstanding any choice of law provisions otherwise
requiring application of other laws. It shall be interpreted according to the fair meaning of the
terms herein and not strictly in favor of, or against, either party.

13.     Severability: The terms, conditions, covenants, restrictions, and other provisions
contained in this Agreement are separate, severable, and divisible. If any term, provision,
covenant, restriction, or condition of this Agreement or part thereof, or the application thereof
to any person, place, or circumstance, shall be held to be invalid, unenforceable, or void, the
remainder of this Agreement and such term, provision, covenant, or condition shall remain in full
force and effect to the greatest extent practicable and permissible by law, and any such invalid,
unenforceable, or void term, provision, covenant, or condition shall be deemed, without further
action on the part of the parties hereto, modified, amended, limited, or deleted to the extent
necessary to render the same and the remainder of this Agreement valid, enforceable, and lawful.

14.     Acknowledgments: The parties acknowledge that the Company is not undertaking to advise
Employee with respect to any tax or other consequences of this Agreement and that Employee is
solely responsible for determining those consequences. Employee has read this Agreement and
understands its terms. Employee has been provided with a full and fair opportunity to consult with
an attorney of her choosing and to obtain any and all advice deemed appropriate with respect to
this Agreement. Further, the parties acknowledge that, while Employee agrees to maintain the
confidentiality of this Agreement and waives claims for remedies, nothing in this Agreement shall
limit the ability of Employee or the Company (or any of its officers, directors, employees,
representatives, agents, or assigns) to confer with legal counsel, to testify truthfully under
subpoena or court order, or to initiate, provide truthful information for, or cooperate with, an
investigation by a municipal, state, or federal agency for enforcement of laws. This Agreement has
been entered into with the understanding that there are no unresolved claims of any nature which
Employee has against the Company. Employee acknowledges and represents that, except with regard to
the special separation benefits described in Paragraph 2 of this Agreement, all compensation and
benefits due Employee by the Company, whether by contract or by law, have been paid in full, and
Employee has been provided all rights and benefits to which Employee is entitled without
interference by the Company, including but not limited to vacation, sick time, paid or unpaid time
off, Family and Medical Leave, accommodation for any disability, or any contractual rights or
privileges, and that Employee has no outstanding claims for any compensation and benefits.
Employee further agrees that the acknowledgments and representations set forth in this paragraph
have been relied upon by the Company and constitute consideration for the Company’s

CONFIDENTIAL

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execution of this Agreement. In light of the foregoing, the parties are satisfied with the terms
of this Agreement and agree that its terms are binding upon them.

THE UNDERSIGNED HAVE CAREFULLY READ THIS AGREEMENT. THEY ACKNOWLEDGE THAT THEY HAVE HAD ACCESS TO
LEGAL COUNSEL OF THEIR OWN CHOOSING AND HAVE OBTAINED ALL LEGAL ADVICE THEY DEEM NECESSARY TO FULLY
UNDERSTAND THE TERMS AND CONDITIONS OF THIS AGREEMENT. EACH PARTY AGREES TO BE FULLY BOUND BY THIS
AGREEMENT. THE PARTIES ARE ENTERING INTO THIS AGREEMENT FREELY AND VOLUNTARILY WITHOUT DURESS OR
COERCION.

THIS AGREEMENT IS NOT VALID IF EXECUTED BY EMPLOYEE BEFORE SEPTEMBER 28, 2007. EMPLOYEE’S DEADLINE
TO SIGN AND RETURN THIS AGREEMENT IS OCTOBER 30, 2007.

ACCEPTED AND AGREED:
 
 

	 	 	 
	/s/ Eleanor Melton

	 	September 28, 2007
	 

	 	 
	Eleanor Melton

	 	Date

          AND

PROSERPINE, LLC

	 	 	 	 	 
	By:

	 	/s/ S. Trezevant Moore, Jr.
	 	September 28, 2007
	 

	 	 
	 	 
	 

	 	President
	 	Date

CONFIDENTIAL

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Exhibit 10.6

CONSULTING AGREEMENT
 
 

     THIS CONSULTING AGREEMENT (this “Agreement”) is entered into as of September 28, 2007 between
Luminent Mortgage Capital, Inc. (the “Company”), a Maryland corporation, and Eleanor Cornfeld
Melton, a sole proprietor (the “Consultant”).

Recitals:
 

     The parties hereto desire to enter into this Agreement to set forth the basis on which the
Consultant will perform consulting services for the Company and with respect to certain other
matters in connection with such engagement, all as set forth more fully in this Agreement.

     NOW, THEREFORE, in consideration of the premises and covenants set forth herein, and intending
to be legally bound hereby, the parties to this Agreement hereby agree as follows:

     1.      Engagement. The Company hereby engages the Consultant as a consultant to the
Company, and the Consultant hereby accepts such engagement, in each case on the terms and
conditions set forth in this Agreement.

     2.      Duties. As a consultant to the Company, the Consultant agrees to perform services
as mutually-agreed upon by the parties. The Consultant will perform her services under this
Agreement at a location of the Consultant’s discretion. The Consultant shall report to such
person(s) as the Company may designate from time to time. All services will be performed in a good
and workmanlike manner, all deliverables will be original works created by Consultant (except to
the extent otherwise mutually agreed) of good and professional quality, and all services and
deliverables will conform with the mutually-agreed specifications or statement of work.

     3.      Term.

          (a)      Initial Term. Subject to Sections 5 and 6, the term of the Consultant’s
engagement hereunder shall commence on the date hereof and shall continue until the earlier to
occur of (i) the completion of the Consultant’s duties as set forth in Section 2 or (ii) the
termination of this Agreement by either party pursuant to subsections (b) and (c).

          (b)      Termination for Cause. Either party, upon written notice to the other, may
terminate this Agreement at any time in the event there has been a material breach of

 

 

the terms of this Agreement and such breach has not been cured within ten days after written
notice of such breach by the non-breaching party to the breaching party. In the event of such
termination by the Company, subject to any claim of setoff, the Company will pay the Consultant for
services rendered up to the date of termination, along with unreimbursed expenses, and the
Consultant shall not be entitled to any other or further compensation from the Company.

          (c)      Termination Without Cause. Either party may terminate this agreement at any time
without cause by providing the other party with ten days’ prior written notice of the date of
termination. In the event of such termination by the Company, subject to any claim of setoff, the
Company will pay the Consultant for services rendered to the date of termination, along with
unreimbursed expenses, and the Consultant shall not be entitled to any other or further
compensation from the Company. Payment for partially completed work performed prior to termination
by Consultant without cause will be subject to the usability of the work product to the Company and
the remaining costs to complete the work, plus the amounts paid to Consultant, not exceeding the
previously agreed price for the work.

     4.      Compensation.

          (a)      Consulting Fees. In consideration of the services to be performed hereunder, the
Consultant shall be paid a consulting fee at the rate of $200 per hour, unless otherwise agreed to
by the parties in writing. Within ten business days following the end of each month during the
Term of the Agreement, the Consultant shall submit a detailed monthly invoice to the Company
setting forth the time spent and the services rendered by the Consultant during the prior month.
The Company will pay the invoice within 30 days after receipt. In consideration of entering into
this Agreement, the Company shall pay the Consultant a retainer fee of $2,000. This amount will be
credited toward the payment of future invoices.

          (b)      Reimbursement of Expenses. The Consultant shall be reimbursed for out-of-pocket
expenses reasonably incurred by her in performing the consulting services contemplated by this
Agreement, provided that such expenses in excess of $100 shall have been approved in advance by the
Company and are documented and submitted in accordance with the reimbursement policies of the
Company as in effect from time to time.

          (c)      Entire Compensation. Notwithstanding anything to the contrary set forth herein,
the compensation provided for in this Section 4 shall constitute full payment for the services to
be rendered by the Consultant to the Company under this Agreement.

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5.     Non-Disclosure and Non-Competition

          (a)      Non-Disclosure. The Consultant acknowledges that, in the course of performing
services for the Company, the Consultant may obtain knowledge of the Company’s business plans,
processes, software, know-how, trade secrets, methods, models, prototypes, improvements,
disclosures, customer and supplier lists, names and positions of employees and/or other proprietary
and/or confidential information of the Company (collectively, the “Confidential Information”). The
Consultant agrees to keep the Confidential Information secret and confidential and not to publish,
disclose or divulge any Confidential Information to any other person, or use any Confidential
Information for the Consultant’s own benefit or to the detriment of the Company, or for any purpose
other than in connection with the performance of consulting services to the Company, without the
prior written consent of the Company, whether or not such Confidential Information was discovered
or developed by the Consultant. The Consultant also agrees not to divulge, publish or use any
proprietary and/or confidential information of others that the Company is obligated to maintain in
confidence.

          (b)      Non-Competition. The Consultant agrees that, during the term of the Consultant’s
engagement by the Company under this Agreement and for a period of one year from and after the
termination of this Agreement, neither the Consultant nor any corporation or other entity in which
the Consultant may be interested as a partner, trustee, director, officer, employee, agent,
shareholder, lender of money or guarantor shall, at any time during such period: (a) solicit,
entice, or in any way divert any of Company’s customers to do business with any competitive
business (as herein defined) or (b) solicit, hire, contract for services or otherwise employ,
directly or indirectly, any of the employees of the Company while in the Company’s employ;
provided, however, that nothing herein contained shall be deemed to prevent the Consultant from
investing in or acquiring one per cent or less of any class of securities of any company if such
class of securities is listed on a national securities exchange. For purposes of this Section
5(b), the term “competitive business” shall mean a business that is engaged in the investing in
mortgage-backed securities purchased in the secondary market, the acquisition and securitization of
mortgage loans and investments in residential mortgages that have credit ratings of below AAA.

     6.      Company Documentation. All deliverables and other works prepared by the Consultant
for the Company hereunder will be works made for hire and all proprietary rights therein, including
any copyrights, trade secrets or other intellectual property rights, will belong to the Company.
To the extent any deliverable or work prepared by the Consultant for the Company hereunder does not
constitute a work made for hire under applicable law, the Consultant hereby irrevocably assigns to
the Company all right, title and interest therein. The Consultant shall hold in a fiduciary
capacity for the benefit of the Company all documentation, programs, data, records, research
materials, drawings,

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manuals, disks, reports, sketches, blueprints, letters, notes, notebooks and all other
writings, electronic data, graphics and tangible information and materials of a secret,
confidential or proprietary information nature relating to the Company or the Company’s business
that are, at any time, in the possession or under the control of the Consultant, including, without
limitation, all deliverables and work in progress on deliverables.

     7.      Injunctive Relief. The Consultant acknowledges that compliance with the agreements
in Sections 5 and 6 is necessary to protect the good will and other proprietary interests of the
Company and that the Consultant has been and will be entrusted with highly confidential information
regarding the Company and its technology and is conversant with the Company’s affairs, its trade
secrets and other proprietary information. The Consultant acknowledges that a breach of the
agreements in Sections 5 and 6 will result in irreparable and continuing damage to the Company for
which there will be no adequate remedy at law; and the Consultant agrees that, in the event of any
breach of the aforesaid agreements, the Company and its successors and assigns shall be entitled to
injunctive relief and to such other and further relief as may be proper.

     8.      Representations and Warranties.

               (a)      Representations of the Company. As an inducement to the Consultant to enter into
this Agreement, the Company represents and warrants to the Consultant as follows:

                    (i)      The Company is a corporation duly organized and validly existing under the laws of the
State of Maryland and has all requisite corporate power to enter into this Agreement.

                    (ii)      Neither the execution and delivery of this Agreement nor the consummation of the
transactions contemplated herein or therein nor compliance by the Company with any of the
provisions hereof or thereof will: (i) violate any order, writ, injunction, decree, law, statute,
rule or regulation applicable to it or (ii) require the consent, approval, permission or other
authorization of, or qualification or filing with or notice to, any court, arbitrator or other
tribunal or any governmental, administrative, regulatory or self-regulatory agency or any other
third party.

                    (iii)      This Agreement has been duly executed and delivered by the Company and constitutes the
legal, valid and binding agreement of the Company, enforceable in accordance with its terms.

          (b)      Representations of the Consultant. As an inducement to the Company to enter into
this Agreement, the Consultant hereby represents and warrants to the Company as follows:

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                    (i)     The Consultant has all requisite power and authority to enter into this Agreement.

                    (ii)     Neither the execution and delivery of this Agreement nor the consummation of the
transactions contemplated herein nor compliance by the Consultant with any of the provisions hereof
will: (i) violate any order, writ, injunction, decree, law, statute, rule or regulation applicable
in any respect to the Consultant or with respect to the consulting services to be rendered by the
Consultant hereunder or the assignment of the Inventions contemplated hereby or (ii) require the
consent, approval, permission or other authorization of, or qualification or filing with or notice
to, any court, arbitrator or other tribunal or any governmental, administrative, regulatory or
self-regulatory agency or any other third party.

                    (iii)     The Consultant is not a party to or otherwise subject to any agreements or restrictions
that would prohibit her from entering into this Agreement and carrying out the transactions
contemplated by this Agreement in accordance with the terms hereof, and this Agreement and the
transactions contemplated hereby will not infringe or conflict with, and are not inconsistent with,
the rights of any other person or entity.

                    (iv)     This Agreement has been duly executed and delivered by the Consultant and constitutes the
legal, valid and binding agreements of the Consultant enforceable in accordance with its terms.

     9.      Survival of Representations, Warranties and Covenants. The provisions of Sections
5 (Non-Disclosure and Non-Competition), 6 (Company Documentation), 7 (Injunctive Relief), 8
(Representations and Warranties), 9 (Survival of Representations, Warranties and Covenants) and 11
(Independent Contractor) shall survive the termination of this Agreement.

     10.     Other Agreements. This Agreement shall not supersede any existing confidentiality
or nondisclosure agreements between the Consultant and the Company.

     11.     Independent Contractor. The parties intend that the Consultant shall render
services hereunder as an independent contractor, and nothing herein shall be construed to be
inconsistent with this relationship or status. The Consultant shall not be entitled to any
benefits paid by the Company to its employees. The Consultant shall be solely responsible for any
tax consequences applicable to her by reason of this Agreement and the relationship established
hereunder, and the Company shall not be responsible for the payment of any federal, state or local
taxes or contributions imposed under any employment insurance, social security, income tax or other
tax law or regulation with respect to the Consultant’s performance of consulting services
hereunder.

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     12.      Third-Party Beneficiaries. This Agreement is not intended to create, and does not
create, in any person other than the Company any right against Consultant, whether as a third-party
beneficiary or otherwise.

     13.      Amendments. Any amendment to this Agreement shall be made in writing and signed
by the parties hereto.

     14.      Enforceability. If any provision of this Agreement shall be invalid or
unenforceable, in whole or in part, then such provision shall be deemed to be modified or
restricted to the extent and in the manner necessary to render the same valid and enforceable, or
shall be deemed excised from this Agreement, as the case may require, and this Agreement shall be
construed and enforced to the maximum extent permitted by law as if such provision had been
originally incorporated herein as so modified or restricted or as if such provision had not been
originally incorporated herein, as the case may be unless such invalidity or unenforceability would
frustrate the essential purposes of the parties in entering into this Agreement.

     15.      Construction. This Agreement shall be construed and interpreted in accordance
with the internal laws of the Commonwealth of Pennsylvania.

     16.      Assignment.

          (a)      By the Company. The rights and obligations of the Company under this Agreement
shall inure to the benefit of, and shall be binding upon, the successors and assigns of the
Company.

          (b)      By the Consultant. This Agreement and the obligations created hereunder may not
be assigned by the Consultant.

     17.      Notices. All notices, requests, consents and other communications hereunder to
any party shall be deemed to be sufficient if contained in a written instrument delivered in person
or duly sent by certified mail, postage prepaid; by an overnight delivery service, charges prepaid;
or by confirmed telecopy; addressed to such party at the address set forth below or such other
address as may hereafter be designated in writing by the addressee to the addressor:

     If to the Company:

               Luminent Mortgage Capital, Inc.

               One Commerce Square, 21st Floor

               2005 Market Street

               Philadelphia, PA 19103

               Attention: S. Trezevant Moore, Jr.

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     If to the Consultant:

               Eleanor Cornfeld Melton

               330 Javes Road

               Milford, NJ 08848

Any party may from time to time change its address for the purpose of notices to that party by a
similar notice specifying a new address, but no such change shall be deemed to have been given
until it is actually received by the party sought to be charged with its contents.

     18.     Waivers. No claim or right arising out of a breach or default under this
Agreement shall be discharged in whole or in part by a waiver of that claim or right unless the
waiver is supported by consideration and is in writing and executed by the aggrieved party hereto
or her or her duly authorized agent. A waiver by any party hereto of a breach or default by the
other party hereto of any provision of this Agreement shall not be deemed a waiver of future
compliance therewith, and such provisions shall remain in full force and effect.

     IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first above
written.

	 	 	 	 	 
	 	LUMINENT MORTGAGE CAPITAL, INC. 

 	 
	 	By:  	/s/ S. Trezevant Moore, Jr.
 	 
	 	 	S. Trezevant Moore, Jr., CEO               	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                             /s/ Eleanor Cornfeld Melton
 	 
	 	Eleanor Cornfeld Melton                          	 
	 	 	 
	 

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