Document:

Document

Exhibit 10.1

									
	
		

December 3, 2020

Mr. David Campbell
[Confidential Address Information Omitted]

Dear David:

On behalf of Evergy, Inc. (the “Company”), I am pleased to offer you the position of President and Chief Executive Officer of the Company, reporting to the Company’s Board of Directors (the “Board”), working at the Company’s headquarters located at 1200 Main Street in Kansas City, Missouri.  Your employment with the Company will commence as soon as practicable, but in no event later than the earlier of February 2, 2021, or three weeks following the release date by your current employer, but not earlier than January 4, 2021.  For purposes of this letter (the “Offer Letter”), the date on which your employment with the Company commences is referred to as your “Employment Start Date.”  Beginning on your Employment Start Date and at all times during your employment with the Company, you will also serve as a member of the Board.  The details of the Company’s offer to you are outlined below:

Inducement Cash Bonus.  You will receive an inducement cash bonus of One Million Two Hundred Fifty Thousand Dollars ($1,250,000) (the “Inducement Cash Bonus”), subject to applicable taxes, deductions and withholdings, payable to you on your Employment Start Date.  Should you (i) fail to establish your principal residence (or are not under contract for such residence) within the Company’s service territory in the greater Kansas City metropolitan area (as defined by the Company) by July 6, 2021, or (ii) resign from the Company for any reason other than death, “disability” (as defined in the LTIP), or “Good Reason” (as defined in the CIC Agreement, defined below) on or before the first anniversary of your Employment Start Date, you must repay to the Company the Inducement Cash Bonus.  No portion of the Inducement Cash Bonus will be subject to any Company clawback policy, as may be in effect from time to time, and may only be forfeited as provided herein. 

Inducement Equity Award.  You will receive an inducement equity award of restricted stock awards (“RSAs”) granted under the LTIP (the “Inducement Equity Award”).  The number of RSAs comprising the Inducement Equity Award will be calculated by dividing Three Million Dollars ($3,000,000) by the closing price of a share of the Company’s stock on the date of your execution of this Offer Letter or, if you execute this Offer Letter on a day during which stock exchanges are closed, the nearest preceding closing price, rounded to the nearest whole share.  The Inducement Equity Award shall be granted in three substantially equal RSA awards.  The date of grant of your Inducement Equity Award will be your Employment Start Date and such RSA awards shall become vested in accordance with the following schedule, assuming your continued employment by the Company through each applicable vesting date: the first RSA award shall vest on December 31, 2021; the second RSA award shall vest on December 31, 2022; and the third RSA award shall vest on December 31, 2023.  The Inducement Equity Award will be subject to the terms and conditions, including any vesting exceptions, in the LTIP and the Company’s standard form of time-based vesting RSA agreement, copies of which have been provided to you; provided however, the Inducement Equity Award shall fully vest in the event of your termination by the Company without Cause or your resignation for Good Reason prior to the applicable vesting dates.  In addition to the vesting conditions relating to your continuous employment by the Company, should you fail to establish your principal residence (or are not under contract for such residence) within the Company’s service territory in the greater Kansas City metropolitan area (as defined by the Company) by July 6, 2021, you will forfeit the entire Inducement Equity Award.  No portion of the Inducement Equity Award shall be subject to any 

evergy.com

Mr. David Campbell
December 3, 2020
Page 2 of 5

other Company clawback policy, as may be in effect from time to time, and may only be forfeited as provided herein.  You will be entitled to make a Section 83(b) election, in your sole discretion, with respect to one or more of the Inducement Equity Awards within 30 days following the grant date.  It is the intent of the parties that any dividends otherwise payable pursuant to the RSAs shall either be retained and accumulated during the vesting period, or if paid, shall be subject to repayment if the underlying RSA award is forfeited.  Any such final determination with respect to dividends shall be reflected in the RSA award agreements.  In the event that you make a Section 83(b) election and applicable withholding obligations cannot be met by solely retention of the Inducement Cash Bonus, you will be obligated to use your own funds to meet such shortfall and remit such shortfall amount to the Company in advance of the date you file such Section 83(b) election. 
 
Base Annual Salary.  Your initial base annual salary will be One Million Dollars ($1,000,000) per annum, prorated to reflect the portion of the year during which you are an employee of the Company, and will be paid in accordance with the Company’s normal payroll procedures, subject to applicable taxes, deductions and withholdings.  Your base annual salary after 2021 is subject to review and increase by the compensation committee of the Board (the “Compensation Committee”).

Annual Incentive Compensation (Short-Term Incentives).  Beginning in 2021, you will be eligible to participate in the Evergy, Inc. Executive Annual Incentive Plan (the “AIP”) each year.  Your initial target award under the AIP is one hundred twenty-five percent (125%) of your base annual salary (the “Target AIP”).  The amount of any future target awards made to you under the AIP will be determined by the Compensation Committee, based on an evaluation of your performance and that of the Company and other evaluative factors relating to comparative levels of pay at the Company’s peer group for similar positions, experience levels and responsibilities, but your Target AIP shall not be less than one hundred twenty-five percent (125%) of your base annual salary.  Payment of awards for which you are eligible under the AIP will be subject to the terms and conditions of the AIP and is dependent on performance against pre-established goals and objectives approved annually by the Compensation Committee.  Your AIP award for 2021 shall not be subject to proration.

Annual Equity Awards (Long-Term Incentives).  You will also be eligible to participate in the Evergy, Inc. Long-Term Incentive Plan (the “LTIP”).  Your initial annual equity award under the LTIP, to be granted in 2021, will have a grant date value equal to four hundred twenty-five percent (425%) of your base annual salary (the “Target LTIP”) and will be granted at the same time, and under the same terms, that annual equity awards under the LTIP are granted to other executives of the Company.[1]  The value any future annual equity awards made to you will be determined by the Compensation Committee based on an evaluation of your performance and that of the Company and other evaluative factors relating to comparative levels of pay at the Company’s peer group for similar positions, experience levels and responsibilities, but your Target LTIP shall not be less than four hundred twenty-five percent (425%) of your base annual salary.  Any annual equity award granted to you will be subject to the terms of the applicable award agreement and the LTIP, including vesting requirements, as approved by the Compensation Committee.

1 At this time, the 2021 LTIP grants are expected to be structured in tranches. One-fourth (1/4) of the equity award will be comprised of time-based restricted stock units (“RSUs”) which will become fully vested on the third anniversary of such RSU’s grant date, assuming your continued employment by the Company through such date.  The other three-fourths (3/4) of the equity award will consist of performance-based RSUs that will become vested on the third anniversary of such RSU’s grant date, based on the achievement of certain performance goals established by the Compensation Committee.

evergy.com

Mr. David Campbell
December 3, 2020
Page 3 of 5

Participation in Executive Severance Plan.  Effective as of your Employment Start Date, you will participate in the Evergy, Inc. Executive Severance Plan (the “Severance Plan”), pursuant to which, in the event of a “Qualifying Termination” (as defined in the Severance Plan; provided however, such definition shall include your resignation for “Good Reason,” as defined in the CIC Agreement, without the CIC requirement), you will be entitled to the benefits described therein for the Chief Executive Officer.  If you experience such a Qualifying Termination during the two-year period beginning on your Employment Start Date, then, in addition to the cash payments you are eligible to receive pursuant to Section 3(a) of the Severance Plan (or any successor provision), you will receive an additional payment equal to the difference between (A) the cash payments that you would have received pursuant to Sections 3(a)(i), (ii), (iii)(C), and (iv) of the CIC Agreement, if any, if you had become eligible for such payments during a “Post-Effective Period” under such agreement and, (B) the cash payments you are eligible to receive under Section 3(a) of the Severance Plan (or any successor provision). Any severance pursuant to this paragraph due to a Good Reason resignation shall be an obligation arising under this Offer Letter though determined by, and subject to the various terms and conditions of, the Severance Plan as if a Qualifying Termination thereunder included a Good Reason resignation.  The parties agree that the Severance Plan is not amended, nor needs to be amended, to provide such benefits.

Change in Control Severance Agreement.  Effective as of your Employment Start Date, you will be eligible to enter into a Change in Control Severance Agreement with the Company (the “CIC Agreement”), the terms of which are set forth in the Company’s standard form of such agreement which has been provided to you.  You will be eligible for any severance benefits described therein.  

Transition Period Travel Expenses.  The Company will provide up to Two Hundred Thousand Dollars ($200,000) for expenses related to temporary housing and air travel (air travel may include, at your choice, first class commercial travel or private aviation services) for you and your spouse which you incur during the period beginning on your Employment Start Date and ending on July 6, 2021 (the “Transition Period”).  

Relocation Assistance.  The Company understands, and you agree, that by the end of the Transition Period you will have established your principal residence (or you will at least be under contract for such purchase) in the Company’s service territory in the greater Kansas City metropolitan area (as defined by the Company).  To assist with your relocation to the greater Kansas City metropolitan area, the Company will provide you with relocation assistance in accordance with the Company’s general Executive Relocation Policy, a copy of which has been provided to you.  The Company’s provision of relocation assistance to you is subject to the terms and conditions of the Executive Relocation Policy, including your completion of a Relocation Repayment Agreement.

Eligibility for Participation in Other Company Benefit Plans.  You will be eligible to participate in the Evergy, Inc. 401(k) Savings Plan (the “401(k) Plan”), a qualified retirement plan sponsored by the Company and be eligible to receive the Company’s matching contributions and other non-elective contribution available under the 401(k) Plan.  You will also be eligible to participate in each health and welfare benefit plan or program offered by the Company to its other named executive officers in accordance with their terms and subject to their exclusions and limitations.  The Company reserves the right to amend, modify or terminate (in whole or in part) any of its 401(k) Plan or health and welfare benefit plans or programs at any time.  Please see the materials in your new hire packet for additional information regarding the 401(k) Plan and health and welfare benefits.

evergy.com

Mr. David Campbell
December 3, 2020
Page 4 of 5

Participation in Nonqualified Deferred Compensation Plan.  You will be eligible to participate in the Evergy, Inc. Nonqualified Deferred Compensation Plan (the “NDCP”).  Under the current terms of the NDCP, you may elect to defer additional compensation and receive additional Company matching contributions on such deferrals in accordance with the terms therein.  The Company reserves the right to amend, modify or terminate (in whole or in part) the NDCP at any time.

Attorney Fees.  The Company agrees to reimburse you for reasonable legal fees incurred in connection with negotiating and reviewing this Offer Letter and any associated agreements, up to Seventeen Thousand Five Hundred Dollars ($17,500), with such amount to be paid directly to the law firm and reported on an IRS Form 1099.  Such amounts shall be paid within thirty days following execution of this Offer Letter and receipt of an invoice for such fees.  

Pre-Employment Access to Company Resources.  Upon execution of this Offer Letter and subject to your agreement to the confidentiality obligation below, you will have access to all meeting materials prepared for any meeting of the Board or any committee thereof and any record of any action taken by the Board or any committee thereof upon your reasonable request.  Furthermore, the Company will make available to you the Company’s current Chief Executive Officer, non-executive chairman, and any chair of a committee of the Board at a time and in a manner mutually agreeable to all parties.  You agree that any meeting materials or records of actions taken by the Board or any committee thereof and the contents of such documents provided to you and any information shared with you by any person described in the preceding sentence is “Confidential Information” that before your Employment Start Date you will hold in confidence for the benefit of the Company.  You agree not to disclose any Confidential Information to any person other than the Company or your personal legal counsel before your Employment Start Date.  Following your Employment Start Date, your obligations relating to maintaining confidentiality with Company information will be subject to applicable Company policies or other agreements with the Company. 

Vacation.  Consistent with the Company’s standard vacation policy for other Company executives, you will be provided with an annual allotment of four (4) weeks of paid vacation.

Clawbacks.  Any awards granted to you under the AIP or the LTIP will be subject to any clawback provisions in those plans, which generally allow the Company to recover any cash incentive compensation or equity awards paid to you in the event of a restatement of or other inaccuracy in the Company’s financial statements, or any other Company clawback policy which may apply to such awards.  The Inducement Cash Bonus and Inducement Equity Award are only subject to those clawback or forfeiture provisions contained herein.

Contingencies.  The Company’s offer of employment described in this Offer Letter is contingent upon the Company’s successful completion of due diligence and background checks with respect to you, including, but not limited to, credit checks, references checks, and federal employment eligibility verification, all of which must be completed by the Company prior to the date on which you provide notice to your current employer (or such contingencies shall be waived by the Company).

Indemnification.   Effective as of your Employment Start Date, you will be eligible to enter into an Indemnification Agreement with the Company, the terms of which are set forth in the Company’s standard form of such agreement.  You will be eligible for any benefits and protections described therein.

evergy.com

Mr. David Campbell
December 3, 2020
Page 5 of 5

At-Will Employment.  Nothing in this Offer Letter is intended to create a fixed term of employment at the Company.  Your employment at the Company is on an at will basis, meaning that the Company will be free to terminate your employment at any time and that you will be free to resign from your employment with the Company at any time; provided however, that the terms and conditions of your employment contained herein may not be changed without the mutual written consent of both you and the Company.

To indicate your acceptance of the Company’s offer, please sign and date this Offer Letter in the space provided below and return it to the Company.  This offer shall remain in effect and be irrevocable by the Company through the close of business (5:00 pm) on Friday, December 4, 2020.

I look forward to having you join Evergy, Inc. and believe that you will be a great asset to the Company.

Sincerely,

/s/ Mark A. Ruelle

Mark A. Ruelle
Chair of the Board of Evergy, Inc. 

ACCEPTED AND AGREED TO this 3rd day of December, 2020.

/s/ David A. Campbell                                
David A. Campbell

.

evergy.comExhibit 10.1

 

First
Amendment to Management Agreement

 

THIS FIRST AMENDMENT
TO MANAGEMENT AGREEMENT (this “Amendment”) is made and entered into as of December 6, 2020 by and among
Anworth Mortgage Asset Corporation, a Maryland corporation (the “Company”), Anworth Management, LLC, a Delaware
limited liability company (the “Manager”), and, solely for the purposes of Section 6 hereof, Ready
Capital Corporation, a Maryland corporation (“Parent”). The Company, the Manager and Parent are each sometimes
referred to herein as a “Party”, and collectively as, the “Parties”. Capitalized terms used
herein but not defined shall have the meanings ascribed to such terms in the Management Agreement or the Merger Agreement (each
as defined below), as the case may be.

 

RECITALS

 

WHEREAS, the Company
and the Manager are parties to that certain Management Agreement, dated as of December 31, 2011 (the “Management
Agreement”);

 

WHEREAS, contemporaneously
with the entry into this Amendment, the Company has entered into that certain Agreement and Plan of Merger, dated as of December 6,
2020, by and among Parent, RC Merger Subsidiary, LLC, a Delaware limited liability company and a wholly owned subsidiary of Parent
(“Merger Sub”), and the Company (as may be amended from time to time, the “Merger Agreement”),
pursuant to which it is contemplated that the Company will merge with and into Merger Sub, with Merger Sub being the surviving
entity of the merger (the “Merger”); and

 

WHEREAS, in connection
with the Merger Agreement and the Merger and the other transactions contemplated thereby, the Parties desire, subject to the terms
and conditions set forth herein, to amend the Management Agreement to provide, among other things, for: (i) the termination
of the Management Agreement effective as of the Closing Date (as defined in the Merger Agreement); and (ii) certain additional
obligations and agreements among the Parties and for the benefit of Parent.

 

AGREEMENT

 

NOW THEREFORE, in consideration
of the mutual covenants and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties hereby agree as follows:

 

1.            Termination
of Management Agreement; Survival of Certain Provisions.

 

(a)           Notwithstanding
anything to the contrary in the Management Agreement, the Parties hereby agree that the Management Agreement and all rights and
obligations of the Company and the Manager thereunder (including, without limitation, Section 3(b) thereof) shall be
automatically terminated and of no further force or effect as of the Closing Date (such termination, the “Termination”,
which shall be deemed a Termination Without Cause (as defined in the Management Agreement)), without any further notice or action
by any of the Company or the Manager. Notwithstanding the foregoing:

 

(i)            The
Manager shall be entitled to receive the monthly Management Fee payable to the Manager pursuant to the terms and conditions of
Management Agreement, prorated through the date of the Termination. Within 15 days following the Closing Date, the Manager will
deliver to Parent, as successor to the Company, a written statement setting forth in reasonable detail the Manager’s good
faith computation, in accordance with the Management Agreement and consistent with past practice, of any and all Management Fees
accrued pursuant to Section 6 of the Management Agreement and unpaid as of the Closing Date (the “Accrued Management
Fee”); provided, however, that (A) the Accrued Management Fee for the month in which the Closing occurs
shall be pro-rated based on the number of days in such month that have elapsed up to and including the Closing Date compared to
the total number of days in such month, and (B) for purposes of the computation of the Accrued Management Fee for the month
in which the Closing occurs, Equity (as defined in the Management Agreement) shall be determined as of the end of the month which
occurred immediately prior to the Closing Date. Within five (5) Business Days following the Manager’s delivery of such
written statement of the Accrued Management Fees pursuant to the preceding sentence, Parent or Merger Sub, as successor to the
Company, will pay to the Manager the Accrued Management Fees.

 

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(ii)           Within
15 days following the Closing Date, the Manager will deliver to Parent, as successor to the Company, a written statement setting
forth in reasonable detail a calculation of all unreimbursed expenses (A) incurred by the Manager or its Affiliates on behalf
of the Company in the ordinary course of business and consistent with past practice prior to the Closing Date, which are reimbursable
to the Manager or its Affiliates in accordance with the terms of Section 7 of the Management Agreement, and (B) that
have been incurred by the Manager in connection with the Termination, including, without limitation, third-party legal, expert
and other fees and expenses relating to any actions, proceedings, lawsuits, demands, causes of action and claims, whether actual
or threatened, made by or against the Company in connection with, or after public announcement of, the Merger Agreement, the Merger
or other Transactions (collectively, the “Unreimbursed Expenses”). Within five (5) Business Days following
the Manager’s delivery of such written statement of the Unreimbursed Expenses pursuant to the preceding sentence, Parent
or Merger Sub, as successor to the Company, will pay to the Manager the Unreimbursed Expenses.

 

(iii)          Promptly
following the Closing Date, the Manager shall take those actions required of the Manager pursuant to Section 13 of the Management
Agreement upon the terms and conditions set forth therein; provided, that for such purposes all payments shall be made,
and all documents and property delivered, to the Parent as successor to the Company.

 

(iv)         The
following provisions of the Management Agreement shall survive the Termination and shall continue to remain in full force and effect:
Section 5 (Records; Confidentiality), Section 7 (Expenses of the Company), solely to the extent of any Unreimbursed Expenses,
Section 8 (Limits of the Manager’s Responsibility), Section 13 (Action Upon Termination), and Section 14 (Release
of Money or Other Property Upon Written Request).

 

(b)           Prior
to the Termination, (i) the Company and the Manager shall comply in all respects with all the terms and conditions of the
Management Agreement, (ii) the Company and the Manager shall not amend the Management Agreement or this Amendment, in each
case without the prior written consent of Parent, and (iii) except as specifically permitted or required by the Merger Agreement,
as required by law, or as consented to in writing by Parent (which consent shall not be unreasonably withheld, delayed or conditioned),
the Manager shall conduct its activities with respect to the Company and the Company’s subsidiaries, and its obligations
pursuant to the Management Agreement, in the ordinary course of business consistent with past practice in all material respects.
Further, the Manager agrees to cooperate with the Company and Parent prior to the Closing and take all actions reasonably requested
by the Company or Parent prior to the Closing in order to carry out and effect the Merger and the transactions contemplated by
the Merger Agreement.

 

2.            Termination
Payment.

 

(a)           In
consideration for the Termination and the other promises, undertakings and releases of the Manager hereunder, the Company shall
pay to the Manager the termination fee amount of $20,300,000 (the “Termination Payment”), payable in a lump
sum cash payment on the Closing Date, subject to the Manager’s compliance with the terms and conditions of the Management
Agreement (including, for the avoidance of doubt, as amended by this Amendment). The Termination Payment shall be deemed (i) to
constitute, and shall in all respects satisfy all obligations with respect to, the “Termination Fee” (as defined by
the Management Agreement), and (ii) to be the aggregate unpaid Management Fee that, had the Management Agreement not been
automatically terminated as of the Closing, would have accrued under Section 6 of the Management Agreement for the period
commencing on the day immediately following the Closing Date and the Termination through the end of the Automatic Renewal Term
(as defined in the Management Agreement) ended December 31, 2021.

 

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(b)           Notwithstanding
anything to the contrary in the Management Agreement, the Parties acknowledge and agree that the Termination Payment, any Accrued
Management Fee, and any Unreimbursed Expenses payable hereunder, shall be the entire amounts payable to the Manager or any of its
affiliates in connection with the Termination and thereafter under or in respect of the Management Agreement, as amended by this
Amendment, unless the Merger Agreement is validly terminated pursuant to Section 8.1 of the Merger Agreement without the occurrence
of the Effective Time (as defined in the Merger Agreement), and except with respect to those rights and obligations which, pursuant
to Section 1 hereof, survive the Termination. For the avoidance of doubt, prior to the Termination, the Manager shall
only be entitled to receive payments from the Company that are consistent with past practice and pursuant to the terms of the Management
Agreement; provided, that this Section 2(b) shall not be deemed to limit any bona fide claims the Manager
may have (and any payments related thereto) pursuant to Section 7 (to the extent of any Unreimbursed Expenses to be reimbursed
after the Closing), Section 8, Section 13, or Section 14 of the Management Agreement.

 

3.             Waiver
of Notice Requirement. Each of the Company and the Manager hereby (i) agree that this Amendment constitutes all required
notice of termination of the Management Agreement pursuant to the terms of the Management Agreement, and (ii) waives, whether
exercisable now or at any time in the future, any and all rights to notice under the Management Agreement, to the extent relating
to the transactions contemplated by this Amendment or the Merger Agreement.

 

4.             Release.

 

(a)            Effective
as of, and contingent upon, the Termination, each of the Company, the Manager, and its respective affiliates hereby fully and unconditionally
releases and forever discharges the other party and the affiliates of the other party (including, as applicable, the Company’s
Subsidiaries, Parent, the affiliates of Parent, and the Surviving Company), and their respective administrators, executors, representatives,
successors and assigns, from any and all actions, causes of action, suits, debts, accounts, covenants, liabilities, disputes, agreements,
promises, damages, judgments, executions, claims, and demands whatsoever in law or in equity (“Claims”) that
they ever had, now have, or that they or their administrators, executors, representatives, successors and assigns hereafter can
or may have, arising under or pursuant to the Management Agreement, except with respect to those rights and obligations which,
pursuant to Section 1 hereof, survive the Termination.

 

(b)            Each
of the Company and the Manager agrees that it shall not make any assignment of any Claim or any right of any kind whatsoever embodied
in any of the Claims released herein, and that no other person or entity of any kind shall have any interest in any of the Claims
released herein.

 

5.             Certain
Reduction of Payments by the Company. If, notwithstanding such agreement and understanding of the parties, it is ultimately
established, pursuant to a final determination of a court or an Internal Revenue Service proceeding which has been finally and
conclusively resolved (in any such case, a “Final Determination”), that some portion of the Termination Payment
paid pursuant to Section 2 hereof constitutes an excess parachute payment under Section 280G of the Internal Revenue
Code of 1986, as amended (the “Code”), then the Manager and/or any of its service providers that are deemed
to be disqualified individuals who received excess parachute payments under Section 280G of the Code (each, a “Recipient”)
shall be obligated to pay back to the Parent, as successor to the Company, or, if such Recipient is or was a service provider to
the Manager, such Recipient shall be obligated to pay back to the Manager who shall, in turn, be obligated to pay such amounts
received to Parent, as successor to the Company, a portion of such payments equal to the Repayment Amount within 30 days of
such Final Determination. The “Repayment Amount” shall be the smallest such amount, if any, as shall be required
to be repaid to the Parent, as successor to the Company, so that such Recipient’s net after-tax proceeds (after taking into
account the payment of the excise tax imposed pursuant to Section 4999 of the Code (the “Excise Tax”) and
all other taxes imposed on the Termination Payment) shall be maximized, and shall include interest at the applicable Federal rate,
as determined under Section 1274 of the Code. If the Excise Tax is not eliminated pursuant to this Section 5,
such Recipient shall pay the applicable Excise Tax. Notwithstanding anything herein to the contrary, the Manager, the Recipients,
the Company, and Parent, as successor to the Company, agree to work together and use commercially reasonable efforts to address
any potential effects of Section 280G of the Code, including, without limitation (and in the Manager’s discretion),
engaging a third-party valuation expert to help demonstrate that any payments made or to be made to a Recipient should be considered
 “reasonable compensation” for purposes of Section 280G of the Code.

 

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6.            Successors
and Assigns; Third Party Beneficiaries; Guarantee; Further Actions; Specific Performance; Representations and Warranties.

 

(a)            This
Amendment shall be binding upon and inure to the benefit of the Parties and their respective heirs, personal representatives, successors
and assigns as provided in this Amendment. Parent and its affiliates, successors and assigns shall be entitled to rely on this
Amendment in connection with the consummation of the transactions contemplated by the Merger Agreement. Parent shall be an express
third-party beneficiary of this Amendment (including applicable provisions of the Management Agreement), and Parent shall be entitled
to enforce any such provisions.

 

(b)            Effective
as of, and contingent upon, the Closing, Parent fully and unconditionally guarantees the timely and full performance of the obligations
of the Company that by their terms survive the Closing and the Termination under this Amendment and the Management Agreement as
if it were the Company. Parent waives promptness, diligence, notice of acceptance and any other notice with respect to this Section 6(b),
its guaranteed obligations, and all demands whatsoever. Parent covenants that the guarantee in this Section 6(b) will
not be discharged, except by complete performance of the obligations contained in this Amendment, subject in all cases to the terms
of this Amendment.

 

(c)            Each
Party agrees to execute and deliver such additional documents and instruments and to perform such additional acts as any Party
may reasonably request or as may be reasonably necessary or appropriate to effectuate, consummate and perform the terms, provisions,
or conditions of this Amendment.

 

(d)            It
is understood and agreed that money damages may not be an adequate remedy for any breach of this Amendment by any Party and that
any non-breaching Party shall be entitled to seek equitable relief, including, without limitation, injunction and specific performance,
as a remedy for any such actual or potential breach. Such remedies shall not be deemed to be the exclusive remedies for a breach
by a Party of this Amendment, but shall be in addition to all other remedies available at law or equity to any non-breaching Party.

 

(e)            Each
of the Parties hereby represents and warrants to the other Parties that (i) such Party has the absolute and unrestricted right,
power, and authority to (A) execute and deliver this Amendment, and (B) perform its obligations hereunder, and (ii) such
Party has consulted with, or has been afforded the opportunity to consult with, counsel of its own choosing in connection with
this Amendment and that it enters into this Amendment of its own free will and as its independent act.

 

7.            Termination.
In the event that the Merger Agreement is terminated prior to the consummation of the Merger, this Amendment shall automatically
terminate and be of no further effect (except as specifically set forth herein) and the Management Agreement shall continue in
full force and effect.

 

    4 

     

    

 

8.             Survival.
For the avoidance of doubt, the obligations of the Parties contained in this Amendment which by the terms thereof contemplate performance
after the Closing and the Termination shall survive the Closing and the Termination.

 

9.             Severability.
If any term or other provision of this Amendment is invalid, illegal or incapable of being enforced under any present or future
law or public policy, (a) such term or other provision shall be fully separable, (b) this Amendment shall be construed
and enforced as if such invalid, illegal or unenforceable provision had never comprised a part hereof, and (c) all other conditions
and provisions of this Amendment shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable
term or other provision or by its severance herefrom so long as the economic or legal substance of the transactions contemplated
by this Agreement is not affected in any manner materially adverse to any Party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Amendment
so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that transactions
contemplated by this Amendment be consummated as originally contemplated to the fullest extent possible.

 

10.           Entire
Agreement; Amendment. The Management Agreement and this Amendment constitute the entire understanding between the Parties with
respect to the subject matter hereof and supersede all prior discussions between them relating thereto. Any amendment or modification
to this Amendment shall be effective only if in writing and signed by each Party.

 

11.           Publicity.
During the period from the date hereof to the Closing Date, none of the Company, the Manager, or their respective Affiliates or
Subsidiaries shall issue or cause the publication of any press release or other announcement with respect to this Amendment without
the prior consent of the Parent (which consent shall not be unreasonably withheld, conditioned or delayed); provided, however,
that the Company shall be allowed to disclose and file this Amendment in applicable filings with the U.S. Securities and Exchange
Commission.

 

12.           Headings.
All headings herein are inserted only for convenience and ease of reference and are not to be considered in the interpretation
of any provision of this Amendment.

 

13.           Agreement
Not to be Strictly Construed Against any Party. This Amendment shall be construed and interpreted as if each of the Parties
drafted this Amendment concurrently. Any ambiguity or interpretation of this Amendment shall not be construed against any Party,
and any such ambiguity or interpretation shall be determined as if each of the Parties drafted this Amendment concurrently.

 

14.           Counterparts;
Electronic Signatures. This Amendment may be executed in multiple counterparts, each of which, when executed and delivered,
shall be deemed an original, and all of which when taken together shall constitute one and the same instrument. This Amendment
may be executed by facsimile, pdf scan, or other form of electronic signature.

 

15.           Governing
Law. This Amendment shall be governed by and interpreted and construed in accordance with the laws of the State of Maryland,
without regard to conflict of laws principles thereof.

 

16.           Payments.
All payments to be made pursuant to Section 1 and Section 2 hereof shall be made by wire transfer, in immediately
available funds, to an account designated by the Manager in writing at least three (3) Business Days prior to such payment.

 

[Signature Page Follows]

 

    5 

     

    

 

IN WITNESS WHEREOF, the Parties have executed
this Amendment to Management Agreement as of the day and year first above written.

 

	 	Anworth Mortgage Asset Corporation
	 	 
	 	 
	 	By:	/s/ Joseph E. McAdams
	 	 	Name: Joseph E. McAdams
	 	 	Title: Chief Executive Officer and President
	 	 
	 	Anworth Management, LLC
	 	 
	 	 
	 	By:	 /s/ Lloyd McAdams
	 	 	Name: Lloyd McAdams
	 	 	Title: Chief Executive Officer

 

	Solely for the purposes of Section 6 hereof:	 
	 	 
	Ready Capital Corporation	 
	 	 
	By:	/s/ Thomas E. Capasse	 
	 	Name: Thomas E. Capasse	 
	 	Title: Chairman of the Board and Chief Executive Officer	 

 

[Signature Page to Amendment to Management
Agreement]

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