Document:

Exhibit
10.25

 

AMENDMENT
AGREEMENT NO. 4

 

to
that certain

 

LOAN AND
SECURITY AGREEMENT

 

This AMENDMENT AGREEMENT NO. 4 (this “Amendment”), dated as of July 21, 2004, is among GANDER MOUNTAIN COMPANY (the “Borrower”),
FLEET RETAIL GROUP, INC. (f/k/a Fleet Retail
Finance, Inc.)  and the other lending
institutions from time to time party to the Loan Agreement (as hereinafter
defined) (collectively, the “Revolving Credit Lenders”),
and FLEET RETAIL GROUP, INC. as agent (the
“Agent”) for itself and the other Revolving
Credit Lenders.

 

WHEREAS, the
Borrower, the Agent and the Revolving Credit Lenders are parties to that
certain Loan and Security Agreement, dated as of December 19, 2001 as amended
by the Amendment Agreement No. 1, dated as of May 23, 2003, the Amendment
Agreement No. 2, dated as of June 4, 2003 and the Amendment Agreement No. 3,
dated as of January 2, 2004 (as so amended and as otherwise amended and in
effect from time to time, the “Loan Agreement”),
pursuant to which the Revolving Credit Lenders, upon certain terms and
conditions, have agreed to make loans to, and to cause the issuance of letters
of credit for the benefit of, the Borrower;

 

WHEREAS, the
Borrower has requested that the Agent and the Revolving Credit Lenders agree,
and the Agent and the Revolving Credit Lenders have agreed, on the terms and
subject to the conditions set forth herein, to amend certain of the terms and
provisions of the Loan Agreement;

 

NOW, THEREFORE, the
parties hereto hereby agree as follows:

 

§1.          Defined  Terms.    Capitalized
terms which are used herein without definition and which are defined in the
Loan Agreement shall have the same meanings herein as in the Loan Agreement.

 

§2.          Amendments  to Loan Agreement.

 

(a)           Article I of the Loan
Agreement is hereby amended by inserting the following new definition in the
appropriate alphabetical order:

 

““GAAP EBITDA”:
With respect to any fiscal period, an amount equal to the sum of (a) Net Income
of the Borrower for such fiscal period, plus
(b) in each case to the extent deducted in the calculation of Net Income and
without duplication, (i) depreciation and amortization for such fiscal period, plus (ii) income tax expense for such
fiscal period, plus (iii)
Interest Expense paid or accrued during such fiscal period, plus (iv) other noncash charges for such
fiscal period (excluding LIFO reserves), all as determined in accordance with
GAAP, after eliminating therefrom all extraordinary nonrecurring items of
income or expense.”.

 

 

(b)           The definition of “Applicable Margin” contained in Article I of the Loan
Agreement is hereby restated in its entirety as follows:

 

““Applicable Margin”:  For each period commencing on an Adjustment
Date through the date immediately preceding the next Adjustment Date (each a
“Rate Adjustment Period”), the Applicable Margin shall be the applicable margin
per annum set forth in the table below opposite to the Borrower’s applicable
EBITDA as determined for the applicable period consisting of the twelve (12)
consecutive months ending on or about the calendar quarter ending immediately
prior to the applicable Rate Adjustment Period pertaining to such Adjustment
Date :

 

	
  LEVEL

  	
   

  	
  EBITDA

  	
   

  	
  LIBOR RATE

  APPLICABLE

  MARGIN

  	
   

  	
  BASE RATE

  APPLICABLE

  MARGIN

  	
   

  
	
  I

  	
   

  	
  Greater than or equal
  to $42,500,000

  	
   

  	
  1.75

  	
  %

  	
  0.00

  	
  %

  
	
  II

  	
   

  	
  Greater than or equal
  to $30,000,000 and less than $42,500,000

  	
   

  	
  2.00

  	
  %

  	
  0.50

  	
  %

  
	
  III

  	
   

  	
  Less than $30,000,000

  	
   

  	
  2.25

  	
  %

  	
  0.75

  	
  %

  

 

Notwithstanding the foregoing, (i) effective July 1, 2004, the Applicable
Margin shall be set at the amount set forth opposite Level I above until the
date immediately preceding the next Adjustment Date and (ii) if on any
Adjustment Date the Borrower’s GAAP EBITDA is greater than or equal to
$42,500,000 as determined for the period consisting of the twelve (12)
consecutive months ending on or about the calendar quarter ended immediately
prior to such Adjustment Date, than for the Rate Adjustment Period applicable
to such Adjustment Date the LIBOR Rate Applicable Margin shall equal 1.50% and
the Base Rate Applicable Margin shall equal 0.00%.

 

Furthermore, any delay by the Borrower in delivering the financial
statements and reports required to be delivered by the Borrower pursuant to
Section 6.5 shall, at the Agent’s option, result in the Applicable Margin being
set at the amount set forth opposite Level III above or such other Level as
determined by the Agent until the next Adjustment Date.”.

 

(c)           The definition of “Change in Control” contained in Article I of the Loan
Agreement is hereby restated in its entirety as follows:

 

““Change in Control”: The occurrence of
any of the following:

 

(a)           Any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, but excluding any employee benefit plan of such person or
its subsidiaries, and any person or entity acting in its capacity as trustee,
agent or other fiduciary or administrator of any such plan) other than members
of the Erickson Family, the Holiday Companies or Affiliates of Holiday
Companies becomes the “beneficial owner” (as defined in Rules 13d-3 and

 

 

13d-5 under the
Securities Exchange Act of 1934, except that a person or group shall be deemed
to have “beneficial ownership” of all securities that such person or group has
the right to acquire (such right, an “option right”), whether such right
is exercisable immediately or only after the passage of time), directly or
indirectly, of Forty Percent (40%) or more of the equity securities of the
Borrower entitled to vote for members of the board of directors or equivalent
governing body of the Borrower on a fully-diluted basis (and taking into
account all such securities that such person or group has the right to acquire
pursuant to any option right).

 

(b)           During any period of
twelve (12) consecutive months, a majority of the members of the board of
directors or other equivalent governing body of the Borrower cease to be
composed of individuals (i) who were members of that board or equivalent
governing body on the first day of such period, (ii) whose election or
nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to in clauses
(i) and (ii) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body (excluding, in the
case of both clause (ii) and clause (iii), any individual whose initial
nomination for, or assumption of office as, a member of that board or
equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors).”.

 

(d)                                 Section 5.19 of the Loan Agreement is hereby
restated in its entirety as follows:

 

5.19  BUSINESS PLAN.  The Borrower has provided to the Agent and
the Lenders its Business Plan for the years 2001 through 2004 in connection
with the Third Amendment to this Agreement dated January 2, 2004.

 

§3.          Affirmation and
Acknowledgment of the Borrower.  The Borrower hereby ratifies and confirms all of its
Obligations to the Revolving Credit Lenders, including, without limitation, the
Revolving Credit Loans, and the Borrower hereby affirms its absolute and
unconditional promise to pay to the Revolving Credit Lenders all indebtedness,
obligations and liabilities in respect of the Revolving Credit Loans, the
Letters of Credit, and all other amounts due under the Loan Agreement as
amended hereby.  The Borrower hereby confirms
that the Obligations are and remain secured pursuant to the Loan Documents and
pursuant to all other instruments and documents executed and delivered by the
Borrower as security for the Obligations.

 

§4.          Representations
and  Warranties.  The Borrower hereby represents and
warrants to the Revolving Credit Lenders as follows:

 

(a)           The execution and
delivery by the Borrower of this Amendment, and the performance by the Borrower
of its obligations and agreements under this Amendment and the Loan Agreement
as amended hereby, are within the corporate authority of the Borrower, have
been duly authorized by all necessary corporate proceedings on behalf of the
Borrower and do not and will not contravene any provision of law, statute, rule
or regulation to which the Borrower is subject or any of the Borrower’s
charter, other incorporation papers, by-laws or any stock provision or any
amendment thereof or of any agreement or other instrument binding upon the
Borrower, the non-compliance with which would materially adversely affect the
business, assets or financial condition of the Borrower.

 

 

 

(b)             This Amendment and
the Loan Agreement as amended hereby constitute legal, valid and binding
obligations of the Borrower, enforceable in accordance with their respective
terms, except as limited by bankruptcy, insolvency, reorganization, moratorium
or other laws relating to or affecting generally the enforcement of creditors’
rights in general, and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

 

(c)           No approval or consent
of, or filing with, any governmental agency or authority is required to make
valid and legally binding the execution, delivery or performance by the
Borrower of this Amendment or the Loan Agreement as amended hereby.

 

(d)           The representations and
warranties contained in Article V of the Loan Agreement are true and correct at
and as of the date made and as of the date hereof, except to the extent of
changes resulting from transactions contemplated or permitted by this Loan
Agreement and the other Loan Documents, changes which have been disclosed to
the Agent and the Revolving Credit Lenders prior to the date hereof and changes
occurring in the ordinary course of business that singly or in the aggregate
are not materially adverse, and to the extent that such representations and
warranties relate expressly to an earlier date.

 

(e)           The Borrower has
performed and complied in all material respects with all terms and conditions
herein required to be performed or complied with by it prior to or at the time
hereof, and as of the date hereof, after giving effect to the provisions
hereof, the Borrower is not InDefault and there exists no Event of Default.

 

§5.          Effectiveness.  This
Amendment shall become effective upon the receipt by the Agent of each of the
following:

 

(a)           a fully executed
counterpart hereof signed by the Borrower and all Revolving Credit Lenders.

 

(b)           a certificate from a
duly authorized officer of the Borrower, on behalf of the Borrower (i) of the
due adoption, continued effectiveness, and setting forth the texts of, each
corporate resolution adopted in connection with this Amendment and any other
documents executed in connection therewith, and (ii) attesting to the true
signatures of each Person authorized as a signatory.

 

§6.          Miscellaneous  Provisions.

 

(a)           Except as otherwise
expressly provided by this Amendment, all of the terms, conditions and
provisions of the Loan Agreement shall remain the same.  It is declared and agreed by each of the
parties hereto that the Loan Agreement, as amended hereby, shall continue in
full force and effect, and that this Amendment and the Loan Agreement shall be
read and construed as one instrument.

 

 

(b)           This Amendment is
intended to take effect as an agreement under seal and shall be construed
according to and governed by the laws of The Commonwealth of Massachusetts.

 

(c)           This Amendment may be
executed in any number of counterparts, but all such counterparts shall
together constitute but one instrument. 
In making proof of this Amendment it shall not be necessary to produce
or account for more than one counterpart signed by each party hereto by and
against which enforcement hereof is sought.

 

(d)           The Borrower agrees to
pay to the Agent, on demand by the Agent, all reasonable out-of-pocket costs
and expenses incurred or sustained by the Agent in connection with the
preparation of this Amendment (including reasonable legal fees).

 

[Remainder of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF,
the parties hereto have executed this Amendment as of the date first written
above.

 

	
   

  	
  GANDER
  MOUNTAIN COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sharon K. Link

  	
   

  
	
   

  	
  Title:
  SVP - Finance and Administration

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FLEET RETAIL
  GROUP, INC. (f/k/a Fleet
  Retail

  Finance, Inc.),  as Agent and as a
  Revolving Credit

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Sally A. Sheehan

  	
   

  
	
   

  	
  Name:

  	
  Sally A. Sheehan

  
	
   

  	
  Title:

  	
  Managing
  Director

  Fleet Retail Group

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO FOOTHILL, INC. (f/k/a
  Foothill

  Capital Corporation), as Syndication Agent and

  as a Revolving Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Brad Engel

  	
   

  
	
   

  	
  Name:

  	
  Brad Engel

  
	
   

  	
  Title:

  	
  Assistant Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE CIT GROUP/BUSINESS CREDIT,
  INC.,

  
	
   

  	
  as a Revolving Credit
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Adrian Avales

  	
   

  
	
   

  	
  Name:

  	
  Adrian Avales

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  WEBSTER BUSINESS CREDIT CORPORATION

  (f/k/a/ Whitehall Business Credit Corporation), as

  a Revolving Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Evan Israelson

  	
   

  
	
   

  	
  Name:

  	
  Evan Israelson

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION, as a Revolving Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Kristina M. Miller

  	
   

  
	
   

  	
  Name:

  	
  Kristina M. Miller

  
	
   

  	
  Title:

  	
  By Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UBS AG, STAMFORD BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Wilfred V. Saint

  	
   

  
	
   

  	
  Name:

  	
  Wilfred V. Saint

  
	
   

  	
  Title:

  	
  Director

  Banking Products

  Services, US

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Winslowe Ogbourne

  	
   

  
	
   

  	
  Name:

  	
  Winslowe Ogbourne

  
	
   

  	
  Title:

  	
  Associate Director

  Banking Products

  Services, USExhibit 10.14

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (“Agreement”)
dated this 31st day of March 2004, by and between John R. Cuti (the
“Executive”), MortgageIT Holdings, Inc. (the “Company”) and MortgageIT, Inc.
(“MortgageIT” and, together with the Company, the “Employers”).

 

WITNESSETH

 

WHEREAS, the
Employers desire to assure themselves of the services of the Executive for the
period provided in this Agreement, and the Executive is willing to serve in the
employ of the Employers for such period, all in accordance with the terms and
conditions contained in this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants herein set forth, Executive and the
Employers do agree to the terms of employment as follows:

 

1.                                      Definitions.  The following words and terms shall have the
meanings set forth below for the purposes of this Agreement:

 

(a)                                  Affiliate. 
Affiliate of any person or entity means any stockholder or person or
entity controlling, controlled by, under common control with such person or entity,
or any director, officer or key executive of such entity or any of their
respective relatives. For purposes of this definition, “control,” when used
with respect to any person or entity, means the power to direct the management
and policies of such person or entity, directly or indirectly, whether through
ownership of voting securities, by contracting or otherwise; and the terms
“controlling” and “controlled” have meanings that correspond to the foregoing.

 

(b)                                 Base Salary.  “Base Salary” shall have the meaning set
forth in Section 3(a) hereof.

 

(c)                                  Cause. 
Termination of the Executive’s employment for “Cause” shall mean
termination because of personal dishonesty or incompetence which has adversely
affected the Employers, willful misconduct, breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, willful
violation of any law, rule or regulation (other than traffic violations or
other misdemeanor offenses) or final cease-and-desist order or material breach
of any provision of this Agreement.

 

(d)                                 Change in Control.  “Change in Control” shall mean the occurrence
of any of the following events subsequent to the date of this Agreement: (i) an
event that would be required to be reported in response to Item l(a) of Form
8-K or Item 6(e) of Schedule 14A of Regulation 14A pursuant to the Securities
Exchange Act of 1934, as amended (“Exchange Act”), or any successor thereto,
whether or not any class of securities of the Company is registered under the
Exchange Act; (ii) any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any Affiliate of
the Company, is or becomes the “beneficial

 

1

 

owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing 25% or more of the combined voting power of the Company’s then
outstanding securities; (iii) the sale or other disposition of all or
substantially all of the assets of the Company; or (iv) during any period of
three consecutive years, individuals who at the beginning of such period
constitute the Board of Directors of the Company cease for any reason to
constitute at least a majority thereof unless the election, or the nomination
for election by stockholders, of each new director was approved by a vote of at
least two-thirds of the directors then still in office who were directors at the
beginning of the period.

 

(e)                                  Code. 
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(f)                                    Competing Business.  “Competing
Business” shall mean any business, enterprise or other entity that is primarily
engaged in the business of mortgage banking or mortgage brokerage or managing a
real estate investment trust.

 

(g)                                 Confidential and Proprietary Information.  “Confidential and Proprietary Information”
shall mean any and all (i) confidential or proprietary information or material
not in the public domain about or relating to the business, operations, assets
or financial condition of the Company or any Affiliate of the Company or any of
the Company’s or any such Affiliate’s trade secrets; and (ii) information,
documentation or material not in the public domain by virtue of any action by
or on the part of the Executive, the knowledge of which gives or may give the
Company or any Affiliate of the Company an advantage over any person not
possessing such information. For purposes hereof, the term Confidential and
Proprietary Information shall not include any information or material (i) that
is known to the general public other than due to a breach of this Agreement by
the Executive or (ii) was disclosed to the Executive by a person who the
Executive did not reasonably believe was bound to a confidentiality or similar
agreement with the Employers.

 

(h)                                 Date of Termination.  “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive’s employment
is terminated for any other reason, the date on which a Notice of Termination
is given or as specified in such Notice.

 

(i)                                     Disability. 
Termination by the Employers of the Executive’s employment based on
“Disability” shall mean termination because of any physical or mental
impairment which qualifies the Executive for disability benefits under the
applicable long-term disability plan maintained by the Company or MortgageIT
or, if no such plan applies, which would qualify the Executive for disability
benefits under the Federal Social Security System.

 

(j)                                     Good Reason.  Termination by the Executive of the
Executive’s employment for “Good Reason” shall mean termination by the
Executive following a Change in Control based on:

 

(i)                                     Without
the Executive’s express written consent, a material adverse change made by the
Employers which would reduce the

 

2

 

Executive’s functions, duties
or responsibilities as General Counsel of the Company and MortgageIT.

 

(ii)                                  Without
the Executive’s express written consent, a reduction by the Employers in the
Executive’s Base Salary as the same may be increased from time to time;

 

(iii)                               Without
the Executive’s express written consent, the Employers require the Executive to
be based at a location outside of Manhattan except for required travel on
business of the Employers to an extent substantially consistent with the
Executive’s present business travel obligations;

 

(iv)                              Any
purported termination of the Executive’s employment for Disability which is not
effected pursuant to a Notice of Termination satisfying the requirements of
paragraph (l) below; or

 

(v)                                 Without
the Executive’s express written consent, a failure by the Employers to allow
the Executive to participate in and receive the benefits of any cash incentive
or bonus plan, any pension or other retirement benefit plan, profit sharing,
stock option, employee stock ownership, or other plans, benefits and privileges
given generally to employees and executives of the Employers, to the extent
commensurate with his then duties and responsibilities.

 

(k)                                  IRS.  IRS
shall mean the Internal Revenue Service.

 

(l)                                     Notice of Termination. Any purported
termination of the Executive’s employment by the Employers for any reason,
including without limitation for Cause or Disability, or by the Executive for
any reason, including without limitation for Good Reason, shall be communicated
by written “Notice of Termination” to the other party or parties hereto. For
purposes of this Agreement, a “Notice of Termination” shall mean a dated notice
which (i) indicates the specific termination provision in this Agreement relied
upon, (ii) sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of Executive’s employment under the
provision so indicated, (iii) specifies a Date of Termination, which shall be
not less than thirty (30) nor more than ninety (90) days after such Notice of
Termination is given, except in the case of the Company’s termination of
Executive’s employment for Cause, which shall be effective immediately; and
(iv) is given in the manner specified in Section 10 hereof.

 

2.                                      Term
of Employment.

 

(a)                                  Each of the Company
and MortgageIT hereby employs the Executive as General Counsel of the Company
and MortgageIT, and the Executive hereby accepts said employment and agrees to
render such services to the Employers, on the terms and conditions set forth in
this Agreement.  The term of employment
under this Agreement shall be for a term of

 

3

 

three years, commencing on the
date of this Agreement, unless such term is extended as provided in this
Section 2.  On the third annual
anniversary of the date first above written and each annual anniversary
thereafter, the term of this Agreement shall automatically be extended for an
additional one-year, unless the Executive or the Employers gives written notice
to the other party or parties hereto of such party’s or parties’ election not
to extend the term, with such notice to be given not less than sixty (60) days
prior to any such anniversary date.  If any party gives timely notice
that the term will not be extended, then this Agreement shall terminate at the
conclusion of its remaining term. References herein to the term of this
Agreement shall refer both to the initial term and successive terms.

 

(b)                                 During the term of
this Agreement, the Executive shall perform such executive services for the
Employers as may be consistent with his titles and such executive services
which are from time to time assigned to him by the Employers’ respective Boards
of Directors.

 

3.                                      Compensation
and Benefits.

 

(a)                                  The Employers shall
compensate and pay the Executive for his services during the term of this
Agreement at a minimum base salary of $250,000 per year (“Base Salary”), which
may be increased from time to time in such amounts as may be determined by the
Board of Directors of the Employers and may not be decreased without the
Executive’s express written consent.  In
addition to his Base Salary, the Executive shall be entitled to receive during
the term of this Agreement such bonus payments as may be determined by the
Boards of Directors of the Employers solely in their discretion.

 

(b)                                 In addition to the
grant of restricted shares and options referenced in the S-11 filed on March
22, 2004, the Executive, during the term of this Agreement, shall be entitled
to participate in and receive the benefits of any pension or other retirement
benefit plan, profit sharing, stock option, employee stock ownership, or other
plans, benefits and privileges given to employees and executives of the
Employers, including without limitation the Company’s 2004 Long-term Incentive
Plan, to the extent commensurate with his then duties and responsibilities as
fixed by the Boards of Directors of the Employers.

 

(c)                                  During the term of
this Agreement, the Executive shall be entitled to take paid annual vacation in
accordance with the Employers’ established policies. The Executive shall not be
entitled to receive any additional compensation from the Employers for failure
to take a vacation, nor shall the Executive be able to accumulate unused
vacation time from one year to the next, except to the extent authorized by the
Board of Directors of the Employers.

 

(d)                                 In the event the
Executive’s employment is terminated due to Disability, the Employers shall
provide continued life, medical, dental and disability in an amount and to the
extent consistent with the Employers’ established policies.

 

4.                                      Expenses.
The Employers shall reimburse the Executive or otherwise provide for or pay for
all reasonable expenses incurred by the Executive in furtherance of or in
connection with the business of the Employers, including, but not by way of
limitation, traveling expenses,

 

4

 

and continuing legal education
expenses subject to such reasonable documentation and other limitations as may
be established by the Boards of Directors of the Employers. If such expenses
are paid in the first instance by the Executive, the Employers shall reimburse
the Executive therefor.

 

5.                                      Termination.

 

(a)                                  The Employers shall
have the right, at any time upon prior Notice of Termination, to terminate the
Executive’s employment hereunder for any reason, including, without limitation,
termination for Cause or Disability, and the Executive shall have the right,
upon prior Notice of Termination, to terminate his employment hereunder for any
reason.

 

(b)                                 In the event that (i)
the Executive’s employment is terminated by the Employers for Cause or (ii) the
Executive terminates his employment hereunder other than for Disability, death
or Good Reason, the Executive shall have no right pursuant to this Agreement to
compensation or other benefits for any period after the applicable Date of
Termination other than for Base Salary accrued through the Date of Termination.

 

(c)                                  In the event that the
Executive’s employment is terminated as a result of Disability during the term
of this Agreement, the Executive shall receive the lesser of (i) his existing
Base Salary as in effect as of the date of termination, multiplied by one year
or (ii) his Base Salary for the duration of the term of this Agreement.  In addition, in the event that the
Executive’s employment is terminated as a result of Disability during the term
of this Agreement, the Executive shall receive the entire unvested portion of
his “Deferred Account,” as defined and set forth in MortgageIT’s Annual Incentive
Compensation Plan.  In the event of the
Executive’s death during the term of this Agreement, the Executive’s estate
shall receive the lesser of (i) his existing Base Salary as in effect as of the
date of his death, multiplied by one year or (ii) his Base Salary through the
end of the term of this Agreement.  In
addition, in the event of the Executive’s death during the term of this
Agreement, the Executive’s estate shall receive the entire unvested portion of the
Executive’s “Deferred Account,” as defined and set forth in MortgageIT’s Annual
Incentive Compensation Plan.

 

(d)                                 In the event that (i)
the Executive’s employment is terminated by the Employers for other than Cause,
Disability, or the Executive’s death or (ii) such employment is terminated by
the Executive (a) due to a material breach of this Agreement by the Company,
which breach has not been cured within fifteen (15) business days after a
written notice of non-compliance has been given by the Executive to the
Company, or (b) for Good Reason, then the Company shall, subject to Section 6
hereof, if applicable:

 

(A)                              pay to the Executive, a
cash severance amount equal to the Executive’s Base Salary as in effect
immediately prior to the Date of Termination, multiplied by one (1) year
(“Severance Pay”).  Such Severance Pay
shall be paid in monthly installments beginning with the first business day of
the month following the Date of Termination and continuing for  one (1) year.  The Boards of Directors of the Employers, in
their sole discretion, may elect to pay the Severance Pay to the Executive on a
more accelerated schedule than that set forth in the immediately preceding
sentence.

 

5

 

(B)                                maintain and provide
for a period ending at the earlier of (i) the first anniversary of the Date of
Termination or (ii) the date of the Executive’s full-time employment by another
employer, at no cost to the Executive, the Executive’s continued participation
in all group insurance, life insurance, health and accident, disability and
other employee benefit plans, programs and arrangements in which the Executive
was entitled to participate immediately prior to the Date of Termination (other
than any stock option or other stock compensation plans or bonus plans of the Employers),
provided that in the event that Executive’s participation in any such plan,
program or arrangement is barred, the Employers shall arrange to provide
Executive with benefits substantially similar to those Executive was entitled
to receive under such plans, programs and arrangements prior to the Date of
Termination.

 

(C)                                pay to the Executive
the entire unvested portion of the Executive’s “Deferred Account,” as defined
and set forth in MortgageIT’s Annual Incentive Compensation Plan.

 

(e)                                  In receiving any
payments pursuant to this Section 5, the Executive shall not be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive hereunder, and such amounts shall not be
reduced or terminated whether or not the Executive obtains other employment.

 

6.                                      Limitation
of Benefits under Certain Circumstances. If the payments and benefits
pursuant to Section 5 hereof, either alone or together with other payments and
benefits which the Executive has the right to receive from the Employers, would
constitute a “parachute payment” under Section 280G of the Code, the payments
and benefits payable by the Employers pursuant to Section 5 hereof shall be
reduced, in the manner determined by the Executive, by the amount, if any,
which is the minimum necessary to result in no portion of the payments and
benefits payable by the Employers under Section 5 being non-deductible to the
Employers pursuant to Section 280G of the Code and subject to the excise tax
imposed under Section 4999 of the Code. The determination of any reduction in
the payments and benefits to be made pursuant to Section 5 shall be based upon
the opinion of independent counsel selected by the Employers’ independent
public accountants and paid by the Employers. Such counsel shall be reasonably
acceptable to the Employers and the Executive; shall promptly prepare the
foregoing opinion, but in no event later than thirty (30) days from the Date of
Termination; and may use such actuaries as such counsel deems necessary or
advisable for the purpose. Nothing contained herein shall result in a reduction
of any payments or benefits to which the Executive may be entitled upon
termination of employment under any circumstances other than as specified in
this Section 6, or a reduction in the payments and benefits specified in
Section 5 below zero.

 

7.                                      Restrictions
Respecting Competing Businesses, Confidential Information, etc.

 

(a)                                  The Executive
acknowledges and agrees that by virtue of the Executive’s position and involvement
with the business and affairs of the Employers, the Executive will develop
substantial expertise and knowledge with respect to all aspects of the
Employers’ business, affairs and operations and will have access to all
significant aspects of the business and operations of the Employers and to
Confidential and Proprietary Information.

 

6

 

(b)                                 The Executive hereby
covenants and agrees that, during the term of employment and thereafter, unless
otherwise authorized by the Employers in writing, the Executive shall not,
directly or indirectly, under any circumstance: (i) disclose to any other
person or entity (other than in the regular course of business of the
Employers) any Confidential and Proprietary Information, other than pursuant to
applicable law, regulation or subpoena or with the prior written consent of the
Employers; (ii) act or fail to act so as to impair the confidential or
proprietary nature of any Confidential and Proprietary Information; (iii) use
any Confidential and Proprietary Information other than for the sole and
exclusive benefit of the Employers; or (iv) offer or agree to, or cause or
assist in the inception or continuation of, any such disclosure, impairment or
use of any Confidential and Proprietary Information. Following the term of
employment, the Executive shall return all documents, records and other items
containing any Confidential and Proprietary Information to the Employers
(regardless of the medium in which maintained or stored).

 

(c)                                  The Executive
covenants and agrees that while the Executive is employed by the Employers and
for one (1) year after the Executive ceases to be employed by the Employers for
any reason (provided that the Employers are complying with their obligations
pursuant to the terms of this Agreement during such one (1) year period), other
than the termination of his employment after the Employers have elected not to
renew this Agreement as provided in Section 2(a), the Executive shall not,
directly or indirectly, manage, operate or control, any Competing Business or,
directly or indirectly, induce or influence any customer or other Person that
has a business relationship with the Employers, or any Affiliate of the
Employers, to discontinue or reduce the extent of such relationship; provided
that in the case of a termination of the Executive, the Employers continue to
pay any amounts owing to the Executive pursuant to Section 5(d) hereof.  For purposes of this Agreement, the Executive
shall be deemed directly or indirectly interested in a business if he is
engaged or interested in that business as a stockholder, director, officer, or
executive, agent, partner, individual proprietor, consultant, advisor or
otherwise, but not if the Executive’s interest is limited solely to the
ownership of not more than 5% of the securities of any class of equity
securities of a corporation or other person whose shares are listed or admitted
to trade on a national securities exchange or are quoted on the Nasdaq Stock
Market or a similar means if the Nasdaq Stock Market is no longer providing
such information.

 

(d)                                 While the Executive is
employed by the Employers and for one (1) year after the Executive ceases to be
employed by the Employers, the Executive shall not, directly or indirectly,
solicit to employ for  a Competing
Business any employee of the Employers or any Affiliate of the Employers as of
the date of the termination of the Executive’s employment with the Employers.

 

(e)                                  The parties agree
that nothing in this agreement shall be construed to limit or negate the common
law of torts, confidentiality, trade secrets, fiduciary duty and obligations
where such laws provide the Employers with any broader, further or other remedy
or protection than those provided herein.

 

(f)                                    Because the breach
of any of the provisions of this Section 7 will result in immediate and
irreparable injury to the Employers for which the Employers will not have an

 

7

 

adequate remedy at law, the
Employers shall be entitled, in addition to all other rights and remedies, to
seek a degree of specific performance of the restrictive covenants contained in
this Section 7 and to a temporary and permanent injunction enjoining such
breach, without posting bond or furnishing similar security.

 

8.                                      Withholding.  All payments required to be made by the
Employers hereunder to the Executive shall be subject to the withholding of
such amounts, if any, relating to tax and other payroll deductions as the
Employers may reasonably determine should be withheld pursuant to any
applicable law or regulation.

 

9.                                      Assignability.  The Employers may assign this Agreement
and its rights and obligations hereunder in whole, but not in part, to any
corporation or other entity with or into which the Employers may hereafter
merge or consolidate or to which the Employers may transfer all or
substantially all of their respective assets, if in any such case said
corporation or other entity shall by operation of law or expressly in writing
assume all obligations of the Employers hereunder as fully as if it had been
originally made a party hereto, but may not otherwise assign this Agreement or
its rights and obligations hereunder. The Executive may not assign or transfer
this Agreement or any rights or obligations hereunder.

 

10.                               Notice.  For the purposes of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the signature page hereto.
Any notice, request, demand or other communication delivered or sent in the
manner aforesaid shall be deemed given or made (as the case may be) upon the
earliest of (a) the date it is actually received, (b) the business day after
the day on which it is delivered by hand, (c) the business day after the day on
which it is properly delivered to Federal Express (or a comparable overnight
delivery service), or (d) the third business day after the day on which it is
deposited in the United States mail. The Employers or the Executive may change
their respective addresses by notifying the other party or parties of the new
addresses in any manner permitted by this Section 10.

 

11.                               Amendment;
Waiver.  No provisions of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive
and such officer or officers as may be specifically designated by the Boards of
Directors of the Employers to sign on their behalf. No waiver by any party
hereto at any time of any breach by any other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

 

12.                               Governing
Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the United States where applicable
and otherwise by the substantive laws of the State of Maryland, without regard
to any conflicts of laws provisions thereof. 
Each party to this Agreement hereby irrevocably consents to the
jurisdiction of the United States District Court for the Southern District of
New York and the courts of the state of New York located in the County of New
York in any action to enforce, interpret or construe any provision of this
Agreement or of any other agreement or document

 

8

 

delivered in connection with
this Agreement, and also hereby irrevocably waives any defense of improper
venue, forum  non  conveniens or lack of personal
jurisdiction to any such action brought in those courts.  Each party further irrevocably agrees that
any action to enforce, interpret or construe any provision of this Agreement
will be brought only in one of those courts. 
Each party hereby waives its right to trial by jury.

 

13.                               Nature
of Obligations. Nothing contained herein shall create or require the
Employers to create a trust of any kind to fund any benefits which may be
payable hereunder, and to the extent that the Executive acquires a right to
receive benefits from the Employers hereunder, such right shall be no greater
than the right of any unsecured general creditor of the Employers.

 

14.                               Headings.
The section headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.

 

15.                               Validity.
The invalidity, illegality or unenforceability of any provision of this
Agreement, in whole or in part, shall not affect the validity, legality or
enforceability of any other provisions of this Agreement, which shall remain in
full force and effect.

 

16.                               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.

 

17.                               Entire
Agreement. This Agreement embodies the entire agreement between the
Employers and the Executive with respect to the matters agreed to herein. All
prior agreements between the Employers and the Executive with respect to the
matters agreed to herein are hereby superseded and shall have no force or
effect.

 

9

 

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

 

 

	
   

  	
  MORTGAGEIT HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DOUG W.
  NAIDUS

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Doug W. Naidus

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
  Address:

  
	
   

  	
   

  	
  33 Maiden
  Lane

  
	
   

  	
   

  	
  New York,
  New York  10038

  
	
   

  	
   

  
	
   

  	
  MORTGAGEIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DOUG W.
  NAIDUS

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Doug W. Naidus

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
  Address:

  
	
   

  	
   

  	
  33 Maiden Lane

  
	
   

  	
   

  	
  New York, New York  10038

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN R.
  CUTI

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John R. Cuti

  
						

 

10

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