Document:

EX - 10.3 (8-K - 10.1.13)

Exhibit 10.3
NONCOMPETITION AGREEMENT
This Noncompetition Agreement (this “Noncompetition Agreement”), dated as of September 30, 2013, is made by and between Vanguard Health Systems, Inc., a Delaware corporation (the “Company”) and Timothy M. Petrikin (the “Executive”).
WHEREAS, the Company desires to secure certain confidentiality and noncompetition restrictions on the Executive from and after the date hereof and the Executive desires to provide such restrictions, in each case pursuant to the terms and conditions hereof;
WHEREAS, the parties desire to enter into this Noncompetition Agreement setting forth the terms and conditions of the Executive’s confidentiality and noncompetition restrictions which shall supersede any other such restrictions otherwise applicable to the Executive;
NOW, THEREFORE, in consideration of the promises and the mutual covenants herein contained, the Company and the Executive hereby agree as follows:
1.  Consideration. In consideration for the Executive agreeing to abide by the terms and conditions of this Noncompetition Agreement, the Company shall pay Executive $1,200,000, as a lump sum cash payment within 30 days of the date hereof.
2.  Confidentiality.  The Executive covenants and agrees that he will not at any time during and after the end of his employment, directly or indirectly, use for his own account, or disclose to any person, firm or corporation, other than authorized officers, directors and employees of the Company or its subsidiaries, or as required by law or judicial or administrative process with subpoena power, Confidential Information (as hereinafter defined) of the Company.  As used herein, “Confidential Information” of the Company means information of any kind, nature or description which is disclosed to or otherwise known to the Executive as a direct or indirect consequence of his association with the Company and related to its business, which information is not generally known to the public or by others in the businesses in which the Company is engaged or which information relates to specific investment opportunities within the scope of the Company’s business which were considered by the Executive or the Company during the term of his employment.  
3.  Noncompetition.  The Executive covenants and agrees that while the Executive remains employed by the Company or its subsidiary and for a period of 18 months following the termination of the Executive’s employment, the Executive shall not, directly or indirectly own any interest in, operate, join, control, or participate as a partner, director, principal, officer, or agent of, enter into the employment of, act as a consultant to, or perform any services for any entity which is a general acute care hospital system or is in the general acute care hospital or general acute care hospital management business.  Notwithstanding anything herein to the contrary, the foregoing provisions of this Section 3 shall not prevent the Executive from (a) acquiring securities representing not more than 5% of the outstanding voting securities of any publicly held corporation or (b) working as an accountant or an attorney for a law or accounting firm.
4.  Entire Agreement.  This Noncompetition Agreement contains all the understandings between the parties hereto pertaining to the matters referred to herein, and shall supersede all undertakings and agreements, whether oral or in writing, previously entered into by them with respect thereto, specifically including the provisions of that certain Employment Agreement between the Executive and the Company entered into as of February 27, 2012.  The Executive represents that, in executing this Noncompetition Agreement, he does 

not rely and has not relied upon any representation or statement not set forth herein made by the Company with regard to the subject matter, bases or effect of this Noncompetition Agreement or otherwise.
5.  Amendment or Modification, Waiver.  No provision of this Noncompetition Agreement may be amended or waived unless such amendment or waiver is agreed to in writing, signed by the Executive and by a duly authorized officer of the Company.  No waiver by any party hereto of any breach by another party hereto of any condition or provision of this Noncompetition Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time.  This Noncompetition Agreement is a personal contract and the rights and interests of the Executive hereunder may not be sold, transferred, assigned, pledged, encumbered, or hypothecated by him. 
6.  Severability.  If any provision of this Noncompetition Agreement or the application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Noncompetition Agreement or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid and unenforceable, shall not be affected thereby, and each provision hereof shall be validated and shall be enforced to the fullest extent permitted by law.
7.  Survivorship.  The respective rights and obligations of the parties hereunder shall survive any termination of this Noncompetition Agreement to the extent necessary to the intended preservation of such rights and obligations.  
8. Governing Law; Attorney’s Fees.
(a) This Noncompetition Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee, without regard to its conflicts of laws principles.
(b) The prevailing party in any dispute arising out of this Noncompetition Agreement shall be entitled to be paid its reasonable attorney’s fees incurred in connection with such dispute from the other party to such dispute.
9. Headings.  All descriptive headings of sections and paragraphs in this Noncompetition Agreement are intended solely for convenience, and no provision of this Noncompetition Agreement is to be construed by reference to the heading of any section or paragraph.
10. Counterparts.  This Noncompetition Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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

	
			
	 
	 

	

	VANGUARD HEALTH SYSTEMS, INC.

	 
	 

	 
	 

	 
	By:
	/s/ James H. Spalding

	 
	 
	Name:  James H. Spalding

	 
	 
	Title:   Executive Vice President, General Counsel & Secretary

	 
	 

	 
	THE EXECUTIVE

	 
	 

	 
	 

	 
	By:
	/s/ Timothy M. Petrikin

	 
	 
	Name:  Timothy M. PetrikinExhibit 10.21

 

AMENDMENT NO. 1

 

TO MSR RECAPTURE AGREEMENT

 

Amendment No. 1 to MSR Recapture Agreement, effective as of August 1, 2013 (the “Amendment”), by and between PennyMac Loan Services, LLC, a Delaware limited liability company (the “Service Provider”), and PennyMac Corp., Delaware corporation (the “Company”).

 

RECITALS

 

WHEREAS, the Service Provider and the Company are parties to that certain MSR Recapture Agreement, dated as of February 1, 2013 (the “Existing MSR Agreement” and, as amended by this Amendment, the “MSR Agreement”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing MSR Agreement.

 

WHEREAS, the Service Provider and the Company  have agreed, subject to the terms and conditions of this Amendment, that the Existing MSR Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing MSR Agreement.

 

NOW, THEREFORE, in consideration of the mutual premises and mutual obligations set forth herein, the Service Provider and the Company hereby agree that the Existing MSR Agreement is hereby amended as follows:

 

SECTION 1.   Exhibits. Section 3.02(c) of the Existing MSR Agreement is hereby amended by deleting the first sentence thereof in its entirety and replacing it with the following language:

 

	
“If, during any calendar month, the Servicer or its   Affiliates originate new residential mortgage loans the proceeds of which are   used to refinance a Mortgage Loan in the Portfolio (such a new mortgage loan,   a “New Mortgage Loan”), the Service Provider shall either   (i) transfer and convey to the MSR Owner on the related Assignment Date   the Servicing Rights with respect to one or more of such New Mortgage Loans,   that together have an aggregate unpaid principal balance that is not less   than 30% of the aggregate unpaid principal balance of all the New Mortgage   Loans originated during such month; or (ii) at its option, but only to   the extent that the fair market value of the aggregate Servicing Rights to be   transferred is less than $200,000, wire to the Company cash in an amount   equal to such fair market value.”
    	
 
    

 

SECTION 2.   Conditions Precedent.  This Amendment shall become effective as of the date first set forth above (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent:

 

A-1

 

2.1       Delivered Documents.  On the Amendment Effective Date, each party shall have received the following documents, each of which shall be satisfactory to such party in form and substance:

 

(a)        this Amendment, executed and delivered by duly authorized officers of the Service Provider and the Company; and

 

(b)        such other documents as such party or counsel to such party may reasonably request.

 

SECTION 3.   Representations and Warranties. Each party represents that it is in compliance in all material respects with all the terms and provisions set forth in the Existing MSR Agreement on its part to be observed or performed.

 

SECTION 4.   Limited Effect.  Except as expressly amended and modified by this Amendment, the Existing MSR Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms.

 

SECTION 5.   GOVERNING LAW.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

SECTION 6.   Counterparts.  This Amendment may be executed in one or more counterparts and by different parties hereto on separate counterparts, each of which, when so executed, shall constitute one and the same agreement.

 

SECTION 7.   Conflicts.  The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the Existing MSR Agreement, the provisions of this Amendment shall control.

 

[SIGNATURE PAGE FOLLOWS]

 

A-2

 

IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.

 

 

	
The Service Provider:
    	
PENNYMAC LOAN SERVICES, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anne D. McCallion
    
	
 
    	
 
    	
Name:
    	
Anne D. McCallion
    
	
 
    	
 
    	
Title:
    	
Vice President, Finance
    
	
 
    	
 
    
	
 
    	
 
    
	
The Company:
    	
PENNYMAC CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stanford L. Kurland
    
	
 
    	
 
    	
Name:
    	
Stanford L. Kurland
    
	
 
    	
 
    	
Title:
    	
Chief Executive Officer
    

 

A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]