Document:

Exhibit
10.22

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated
Employment Agreement (“Agreement”) is made effective as of January 1, 2003  (“Effective Date”), by and
between American Mortgage Network, Inc., a Delaware corporation, and a
subsidiary of American Residential Investment Trust, Inc., a Maryland
corporation (“Company”) and John
Robbins (“Executive”).

 

WHEREAS Executive and
Company entered into an Employment Agreement dated February 11, 2002 (the
“Original Agreement”);

 

WHEREAS the Original
Agreement expired on February 10, 2003; and

 

WHEREAS, Executive and
Company each desire to amend and restate the Original Agreement as set forth
below.

 

NOW, THEREFORE, in
consideration of the promises and respective covenants and agreements of the
parties herein contained, Executive and Company agree as follows:

 

1.                                       Employment.  Company hereby employs Executive, and Executive hereby accepts such
employment, upon the terms and conditions set forth herein.

 

2.                                       Duties.

 

2.1                                 Position.  Executive is employed as Chief Executive Officer and Chairman of the
Board of Directors and shall have the duties and responsibilities
assigned by Company’s Board of Directors (“Board of Directors”) both upon
initial hire and as may be reasonably assigned from time to time.  Executive shall perform faithfully and
diligently all duties assigned to Executive. 
Company reserves the right to modify Executive’s position and duties at
any time in its sole and absolute discretion, provided that the duties assigned
are consistent with the position of a senior executive and that Executive
continues to report to the Board of Directors.

 

2.2                                 Best
Efforts/Full-time.  Executive will
expend Executive’s best efforts on behalf of Company, and will abide by all
policies and decisions made by Company, as well as all applicable federal,
state and local laws, regulations or ordinances.  Executive will act in the best interest of Company at all
times.  Executive shall devote
Executive’s full business time and efforts to the performance of Executive’s
assigned duties for Company, unless Executive notifies the Board of Directors
in advance of Executive’s intent to engage in other paid work and receives the
Board of Directors’ express written consent to do so.

 

2.3                                 Work
Location.  Executive’s principal
place of work shall be located at 10421 Wateridge Circle, San Diego,
California, or such other location as the parties may agree upon from time to
time.

 

3.                                       Term.     The
employment relationship pursuant to this Agreement shall be for a term commencing
on the Effective Date set forth above and continuing for a period of one year following such date, unless
sooner terminated in accordance with paragraph 7 below.

 

4.                                       Compensation.

 

4.1                                 Base
Salary.  As compensation for
Executive’s performance of Executive’s duties hereunder, Company shall pay to
Executive an initial Base Salary of Four
Hundred Forty-

 

 

Six Thousand One Hundred Fifty-Six Dollars and Eighty Cents ($446,156.80)
per year, payable in accordance with the normal payroll practices of
Company, less required deductions for state and federal withholding tax, social
security and all other employment taxes and payroll deductions.  In the event Executive’s employment under
this Agreement is terminated by either party, for any reason, Executive will
earn the Base Salary prorated to the date of termination.

 

4.2                                 Bonus.  Executive will be eligible to earn a bonus
of up to 100 percent of Executive’s Base Salary based on achievement of
targeted goals and objectives, including net income, established by management
and approved by the Board of Directors.

 

4.3                                 Performance
and Salary Review.  The Board of
Directors will periodically review Executive’s performance.  Adjustments to salary or other compensation,
if any, will be made by the Board of Directors in its sole and absolute
discretion.

 

5.                                       Fringe
Benefits.  Executive will be
eligible for all customary and usual fringe benefits generally available to
executives of Company subject to the terms and conditions of Company’s benefit
plan documents.  In addition, Executive
shall be eligible to accrue 27 days of Paid Time Off (“PTO”) per year and
receive reimbursement of up to $2000 per year for a physical examination.  Company reserves the right to change or
eliminate the fringe benefits on a prospective basis, at any time, effective
upon notice to Executive.

 

6.                                       Business
Expenses.  Executive will be
reimbursed for all reasonable, out-of-pocket business expenses incurred in the
performance of Executive’s duties on behalf of Company.  To obtain reimbursement, expenses must be
submitted promptly with appropriate supporting documentation in accordance with
Company’s policies.

 

7.                                       Termination
of Executive’s Employment.

 

7.1                                 Termination
for Cause by Company.  Although
Company anticipates a mutually rewarding employment relationship with
Executive, Company may terminate Executive’s employment immediately at any time
for Cause.  For purposes of this
Agreement, “Cause” is defined as: (i) acts or omissions constituting gross
negligence, recklessness or willful misconduct on the part of Executive with
respect to Executive’s obligations or otherwise relating to the business of
Company; (ii) Executive’s material breach of this Agreement or Company’s
Confidentiality Agreement; (iii) Executive’s conviction or entry of a plea
of nolo contendere for fraud, misappropriation or embezzlement, or any felony
or crime of moral turpitude; (iv) Executive’s willful neglect of duties as
determined in the sole and exclusive discretion of the Board of Directors; or
(v) Executive’s chemical dependence, as certified by a licensed physician,
resulting in impairment of Executive’s abilities to perform his duties
hereunder or substantial damage to the reputation of Company.  Notwithstanding the foregoing, the
termination of Executive’s employment shall not constitute termination for
Cause unless Company first provides Executive with written notice of the breach
and Executive fails to cure the breach (if possible) within 30 days of the
notice.  During this 30 day notice
period, Executive shall be afforded the opportunity to make a presentation to
the Board of Directors regarding the matters referred to in the notice of
breach. 
In the event Executive’s employment is terminated in
accordance with this subparagraph 7.1, Executive shall be entitled to receive
only the Base Salary then in effect and any amounts payable pursuant to
paragraphs 5 and 6, prorated to the date of termination (“Standard
Entitlements”).  All other Company
obligations to Executive pursuant to this Agreement will become automatically
terminated and completely extinguished. 
Executive will not be entitled to receive the Severance Package
described in subparagraph 7.2 below.

 

2

 

7.2                                 Termination
Without Cause by Company/Severance. 
Company may terminate Executive’s employment under this Agreement
without Cause at any time on 30 days’  advance written notice to Executive.  In the event of such termination, Executive
will receive the Standard Entitlements and will be eligible to receive a “Severance
Package” as described in subparagraph (a) below, provided Executive
complies with all the conditions set forth in subparagraph (b) below.  All other Company obligations to Executive
will be automatically terminated and completely extinguished.

 

(a)                                  Severance
Package.  The Severance Package will
consist of the following:

 

(i)                                     Severance
Payment.  Executive will receive a
Severance Payment equivalent to one year
of Executive’s Base Salary then in effect on the date of termination,
less required deductions for state and federal withholding tax, social security
and all other employment taxes and payroll deductions, payable in accordance
with Company’s regular payroll cycle.

 

(ii)                                  Bonus
Payment.  Executive will receive a
Bonus Payment equivalent to the amount of Executive’s bonus for the immediately
preceding year, less required deductions for state and federal withholding tax,
social security and all other employment taxes and payroll deductions, payable
in a lump sum payment within three months of the date of termination.

 

(iii)                               Continuation of Group
Health Benefits.  Executive will
continue to receive group health insurance benefits on the same terms as during
Executive’s employment for one
year following the date of termination, provided Company’s insurance carrier allows for such benefits
continuation.  In the event  Company’s insurance carrier does not
allow such coverage continuation,  Company  agrees
to pay the premiums required to continue Executive’s group health care coverage for the one-year period,
under the applicable provisions of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), provided that Executive elects to continue and remains eligible for these
benefits under COBRA, and does not obtain health coverage through another employer
during this period.

 

(b)                                 Conditions
to Receive Severance Package. 
Executive will be eligible for the Severance Package provided that
Executive: (a) complies with all surviving provisions of this Agreement as
specified in subparagraph 14.8 below; and (b) executes a full general
release, releasing all claims, known or unknown, that Executive may have
against Company arising out of or any way related to Executive’s employment or
termination of employment with Company. 
All other Company obligations to Executive will be automatically
terminated and completely extinguished.

 

7.3                                 Voluntary
Resignation by Executive for Good Reason/Severance.  Executive may voluntarily resign Executive’s
position with Company for Good Reason at any time on 30 days’  advance
written notice to Company.  Executive
will be deemed to have resigned for Good Reason if resignation is made within
six (6) months following the occurrence of any of the following
circumstances:  (i) Company’s
material breach of this Agreement; (ii) Executive’s Base Salary is reduced
by more than 10% below Executive’s salary as provided for in this Agreement,
unless the reduction is due to a voluntary change of Executive’s
responsibilities; (iii) Executive’s
position and/or duties are modified so that Executive’s duties are no longer
consistent with the position of a senior executive or Executive no longer
reports to the Board of Directors; or (iv) Company relocates
Executive’s principal place of work to a location more than thirty (30) miles

 

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from the location
specified in subparagraph 2.3, without Executive’s prior written approval.  Notwithstanding the foregoing, the
termination of Executive’s employment under this subparagraph 7.3 shall
not constitute voluntary resignation for Good Reason unless Executive first
provides Company with written notice of the breach and Company fails to cure
the breach (if possible) within 30 days of the notice.  In the event of Executive’s resignation for
Good Reason, Executive will be entitled to receive the Standard Entitlements
and the Severance Package described in subparagraph 7.2(a) above, provided
Executive complies with all of the conditions in subparagraph 7.2(b)
above.  All other Company obligations to
Executive pursuant to this Agreement will become automatically terminated and
completely extinguished.

 

7.4                                 Voluntary
Resignation by Executive Without Good Reason.  Executive may voluntarily resign Executive’s position with
Company Without Good Reason at any time on 30 days’ advance written
notice.  In the event of Executive’s
resignation Without Good Reason, Executive will be entitled to receive only the
Standard Entitlements and no other amount. 
All other Company obligations to Executive pursuant to this Agreement will
become automatically terminated and completely extinguished.  In addition, Executive will not be entitled
to receive the Severance Package described in subparagraph 7.2 above.

 

7.5                                 Termination
Upon Death.  Executive’s employment
will terminate immediately on Executive’s death.  In the event of such termination, Company shall provide a death
benefit equal to: (i) Executive’s Base Salary then in effect, prorated for
the current year to the date of Executive’s death; (ii) an amount equal to
the bonus paid to Executive the previous year, prorated for the current year to
the date of Executive’s death; and (iii) any amounts payable pursuant to
paragraphs 5 and 6 that at the date of Executive’s death, are accrued but
unpaid (collectively “Death Benefit”). 
The Death Benefit shall be made in a lump sum payment within 90 days of
Executive’s death to such person as Executive shall designate in a notice filed
with Company or, if no such notice is filed, the Death Benefit shall be paid to
Executive’s estate.

 

7.6                                 Termination
Upon Disability.  Executive’s
employment may be terminated by Company as a result of Executive’s inability to
perform the essential functions of Executive’s position, with or without
reasonable accommodation, if required by law, due to a mental or physical
disability.  In no event will
Executive’s employment be terminated pursuant to this subparagraph 7.6
until 180 consecutive days of paid leave have elapsed and Company has provided
30 days’ written notice in advance of termination.  In the event of termination pursuant to this
subparagraph 7.6, Executive shall be entitled to receive only the Standard
Entitlements.  All other Company
obligations to Executive pursuant to this Agreement will become automatically
terminated and completely extinguished.  Executive will not be entitled to receive the Severance Package
described in subparagraph 7.2 above.

 

7.7                                 Termination
Upon Expiration of Agreement.  If
Executive’s employment is not terminated in accordance with
subparagraphs 7.1-7.6, this Agreement will expire exactly one year from
the Effective Date.  In the event of
expiration of this Agreement, Executive shall be entitled to receive only the
Standard Entitlements earned through the date of expiration.  All other Company obligations to Executive
pursuant to this Agreement will become automatically terminated and completely
extinguished.  Executive will not be
entitled to receive the Severance Package described in subparagraph 7.2 above.

 

8.                                       Consultant
After Termination.  In the event
Executive’s employment is terminated pursuant to subparagraphs 7.1, 7.4 or
7.7, Executive agrees to act as a
consultant for Company, if requested to do so by Company.  Executive will be paid a fixed monthly fee
equal to 25 percent of Executive’s monthly base salary in effect at the
time of termination for up to  six (6)
months

 

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following the termination of the employment relationship (“Consultant
Payments”).  Consultant Payments shall
be made in arrears on or before the last business day of each month during
which Executive has acted as a consultant. 
Company may elect, in its sole and absolute discretion, to terminate the
Consultant Payments at any time upon 10 days’ advance written notice to
Executive.

 

9.                                       No
Conflict of Interest.  During the
term of Executive’s employment with Company and during any period Executive is
receiving payments from Company pursuant to this Agreement, Executive must not
engage in any work, paid or unpaid, that creates an actual conflict of interest
with Company.  Such work shall include,
but is not limited to, directly competing with Company in any way, or acting as
an officer, director, employee, consultant, stockholder, volunteer, lender, or
agent of any business enterprise of the same nature as, or which is in direct
competition with, the business in which Company is now engaged or in which
Company becomes engaged during the term of Executive’s employment with Company,
as may be determined by the Board of Directors in its sole discretion.  If the Board of Directors believes such a
conflict exists during the term of this Agreement, the Board of Directors may
ask Executive to choose to discontinue the other work or resign employment with
Company.  If the Board of Directors
believes such a conflict exists during any period in which Executive is
receiving payments pursuant to this Agreement, the Board of Directors may ask
Executive to choose to discontinue the other work or forego the remaining
payments.  In addition, Executive agrees
not to refer any client or potential client of Company to competitors of
Company, without obtaining Company’s prior written consent, during the term of
Executive’s employment and during any period in which Executive is receiving
payments from Company pursuant to this Agreement.  Notwithstanding the foregoing, Executive may work or perform
services for Company and its affiliates or a financial institution or similar
entity that is involved in the mortgage business so long as such entity is not
engaged primarily in managing real estate investment trusts or originating
and/or selling mortgages, and Executive may own securities in any publicly held
corporation, but only to the extent Executive does not own of record or
beneficially more than 1 percent of the outstanding beneficial ownership of
such corporation.

 

10.                                 Confidentiality
Agreement and Return of Company Property. 
Executive agrees to abide by Company’s Confidentiality Agreement that
Executive read and signed in connection with Executive’s employment by Company,
which is incorporated herein by reference. 
Executive further agrees that upon termination or expiration of
Executive’s employment, Executive will return all Company property, including
all confidential and proprietary information as described in the
Confidentiality Agreement, all materials and documents containing trade secrets
and copyrighted materials, all correspondence, management studies and any other
materials or data relating to or connected with Executive’s employment,
including all copies and excerpts of the same.

 

11.                                 Indemnification.  Company agrees to defend and indemnify
Executive to the fullest extent provided by California Labor Code
section 2802 and/or Company’s Directors’ and Officers’ liability insurance
policy.

 

12.                                 Injunctive
Relief.  Executive acknowledges that
Executive’s breach of the covenants contained in paragraphs 9-10 (collectively
“Covenants”) would cause irreparable injury to Company and agrees that in the
event of any such breach, Company shall be entitled to seek temporary,
preliminary and permanent injunctive relief without the necessity of proving
actual damages or posting any bond or other security.

 

5

 

13.                                 Agreement
to Arbitrate.  To the fullest extent
permitted by law, Executive and Company agree to arbitrate any controversy,
claim or dispute between them arising out of or in any way related to this
Agreement, the employment relationship between Company and Executive and any
disputes upon termination of employment, including but not limited to breach of
contract, tort, discrimination, harassment, wrongful termination, demotion,
discipline, failure to accommodate, family and medical leave, compensation or
benefits claims, constitutional claims; and any claims for violation of any
local, state or federal law, statute, regulation or ordinance or common
law.  By executing this Agreement,
Executive and Company are both waiving the right to a jury trial with respect
to any such disputes.  For the purpose
of this agreement to arbitrate, references to “Company” include all parent,
subsidiary or related entities and their employees, supervisors, officers,
directors, agents, pension or benefit plans, pension or benefit plan sponsors,
fiduciaries, administrators, affiliates and all successors and assigns of any
of them, and this agreement shall apply to them to the extent Executive’s
claims arise out of or relate to their actions on behalf of Company.

 

13.1                           Consideration.  The mutual promise by Company and Executive
to arbitrate any and all disputes between them rather than litigate them before
the courts or other bodies, provides the consideration for this agreement to
arbitrate.

 

13.2                           Initiation
of Arbitration.  Either party may
exercise the right to arbitrate by providing the other party with written
notice of any and all claims forming the basis of such right in sufficient
detail to inform the other party of the substance of such claims.  In no event shall the request for
arbitration be made after the date when institution of legal or equitable proceedings
based on such claims would be barred by the applicable statute of limitations.

 

13.3                           Arbitration
Procedure.  The arbitration will be
conducted in San Diego, California
by a single neutral arbitrator and in accordance with the then current rules for
resolution of employment disputes of the American Arbitration Association
(“AAA”).  The parties are entitled to
representation by an attorney or other representative of their choosing.  The arbitrator shall have the power to enter
any award that could be entered by a judge of the trial court of the State of
California, and only such power, and shall follow the law.  The parties agree to abide by and perform
any award rendered by the arbitrator. 
The arbitrator shall issue the award in writing and therein state the
essential findings and conclusions on which the award is based.  Judgment on the award may be entered in any
court having jurisdiction thereof.

 

13.4                           Costs
of Arbitration.  Company shall bear
the costs of the arbitrator, forum and filing fees.

 

14.                                 General
Provisions.

 

14.1                           Successors
and Assigns.  The rights and
obligations of Company under this Agreement shall inure to the benefit of and
shall be binding upon the successors and assigns of Company.  Executive shall not be entitled to assign
any of Executive’s rights or obligations under this Agreement.

 

14.2                           Waiver.  Either party’s failure to enforce any
provision of this Agreement shall not in any way be construed as a waiver of
any such provision, or prevent that party thereafter from enforcing each and
every other provision of this Agreement.

 

6

 

14.3                           Attorneys’
Fees.  Each side will bear its own
attorneys’ fees in any dispute unless a statutory section at issue, if any,
authorizes the award of attorneys’ fees to the prevailing party.

 

14.4                           Severability.  In the event any provision of this Agreement
is found to be unenforceable by an arbitrator or court of competent
jurisdiction, such provision shall be deemed modified to the extent necessary
to allow enforceability of the provision as so limited, it being intended that
the parties shall receive the benefit contemplated herein to the fullest extent
permitted by law.  If a deemed
modification is not satisfactory in the judgment of such arbitrator or court,
the unenforceable provision shall be deemed deleted, and the validity and
enforceability of the remaining provisions shall not be affected thereby.

 

14.5                           Interpretation;
Construction.  The headings set
forth in this Agreement are for convenience only and shall not be used in
interpreting this Agreement.  This
Agreement has been drafted by legal counsel representing Company, but Executive
has participated in the negotiation of its terms.  Furthermore, Executive acknowledges that Executive has had an opportunity
to review and revise the Agreement and have it reviewed by legal counsel, if
desired, and, therefore, the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement.

 

14.6                           Governing
Law.  This Agreement will be
governed by and construed in accordance with the laws of the United States and
the State of California.  Each party
consents to the jurisdiction and venue of the state or federal courts in San Diego,  California, if applicable,
in any action, suit, or proceeding arising out of or relating to this
Agreement.

 

14.7                           Notices.  Any notice required or permitted by this
Agreement shall be in writing and shall be delivered as follows with notice
deemed given as indicated:  (i) by
personal delivery when delivered personally; (ii) by overnight courier
upon written verification of receipt; (iii) by telecopy or facsimile
transmission upon acknowledgment of receipt of electronic transmission; or
(iv) by certified or registered mail, return receipt requested, upon
verification of receipt.  Notice shall
be sent to the addresses set forth below, or such other address as either party
may specify in writing.

 

14.8                           Survival.  Sections 9 (“No Conflict of Interest”), 10
(“Confidentiality Agreement”), 12 (“Injunctive Relief”), 13 (“Agreement to
Arbitrate”), 14 (“General Provisions”) and 15 (“Entire Agreement”) of this
Agreement shall survive Executive’s employment by Company.

 

 

THE
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

 

7

 

15.                                 Entire
Agreement.  This Agreement,
including the Company’s Confidentiality Agreement incorporated herein by
reference, constitutes the entire agreement between the parties relating to
this subject matter and supersedes all prior or simultaneous representations,
discussions, negotiations, and agreements, whether written or oral.  This Agreement may be amended or modified
only with the written consent of Executive and the Board of Directors of
Company.  No oral waiver, amendment or
modification will be effective under any circumstances whatsoever.

 

THE PARTIES TO THIS
AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY
PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT
ON THE DATES SHOWN BELOW.

 

	
   

  	
   

  	
  John Robbins

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
     4/7/03

  	
   

  	
              /s/ John Robbins

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  American Mortgage Network, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
    4/7/03

  	
   

  	
  By:

  	
      /s/ Mark Riedy

  
	
   

  	
   

  	
  Mark Riedy

  
	
   

  	
   

  	
  Chairman, Compensation Committee

  
	
   

  	
   

  	
  10421 Wateridge Circle, Ste. 250

  
	
   

  	
   

  	
  San Diego, CA 92121

  

 

8Exhibit
10.23

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

 

This Amended and Restated
Employment Agreement (“Agreement”) is made effective as of January 1, 2003  (“Effective Date”), by and
between American Mortgage Network, Inc., a Delaware corporation, and a
subsidiary of American Residential Investment Trust, Inc., a Maryland
corporation (“Company”) and Judith
Berry (“Executive”).

 

WHEREAS Executive and
Company entered into an Employment Agreement dated December 14, 2001 (the
“Original Agreement”); 

 

WHEREAS the Original
Agreement expired on December 13, 2002; and 

 

WHEREAS, Executive and
Company each desire to amend and restate the Original Agreement as set forth
below.

 

NOW, THEREFORE, in
consideration of the promises and respective covenants and agreements of the
parties herein contained, Executive and Company agree as follows:

 

1.                                       Employment.  Company hereby employs Executive, and Executive hereby accepts such
employment, upon the terms and conditions set forth herein.

 

2.                                       Duties.

 

2.1                                 Position.  Executive is employed as Executive Vice President and Chief Financial
Officer and shall have the duties and responsibilities assigned by
Company both upon initial hire and as may be reasonably assigned from time to
time.  Executive shall perform
faithfully and diligently all duties assigned to Executive.  Company reserves the right to modify
Executive’s position and duties at any time in its sole and absolute
discretion, provided that the duties assigned are consistent with the position
of a senior executive and that Executive continues to report to the Chief
Executive Officer (“CEO”).

 

2.2                                 Best
Efforts/Full-time.  Executive will
expend Executive’s best efforts on behalf of Company, and will abide by all
policies and decisions made by Company, as well as all applicable federal,
state and local laws, regulations or ordinances.  Executive will act in the best interest of Company at all
times.  Executive shall devote
Executive’s full business time and efforts to the performance of Executive’s
assigned duties for Company, unless Executive notifies the Company’s CEO in
advance of Executive’s intent to engage in other paid work and receives the
CEO’s express written consent to do so.

 

2.3                                 Work
Location.  Executive’s principal
place of work shall be located at 12041 Wateridge Circle, San Diego, California, or such other
location as the parties may agree upon from time to time.

 

3.                                       Term.  The employment
relationship pursuant to this Agreement shall be for a term commencing on the
Effective Date set forth above and continuing for a period of one year following such date, unless
sooner terminated in accordance with paragraph 7 below.

 

4.                                       Compensation.

 

4.1                                 Base
Salary.  As compensation for
Executive’s performance of Executive’s duties hereunder, Company shall pay to
Executive an initial Base Salary of

 

 

Two Hundred Fifty-Five Thousand One Hundred
Fifty Dollars ($255,150.00) per year, payable in accordance with the
normal payroll practices of Company, less required deductions for state and
federal withholding tax, social security and all other employment taxes and
payroll deductions.  In the event
Executive’s employment under this Agreement is terminated by either party, for
any reason, Executive will earn the Base Salary prorated to the date of
termination.

 

4.2                                 Bonus.  Executive will be eligible to earn a bonus
of up to 100 percent of Executive’s Base Salary based on achievement of
targeted goals and objectives, including net income, established by management
and approved by the Company’s Board of Directors (“Board of Directors”).  

 

4.3                                 Performance
and Salary Review.  Company will
periodically review Executive’s performance. 
Adjustments to salary or other compensation, if any, will be made by
Company in its sole and absolute discretion.

 

5.                                       Fringe
Benefits.  Executive will be eligible
for all customary and usual fringe benefits generally available to executives
of Company subject to the terms and conditions of Company’s benefit plan
documents.  In addition, Executive shall
be eligible to accrue 27 days of Paid Time Off (“PTO”) per year and receive
reimbursement of up to $2000 per year for a physical examination.  Company reserves the right to change or
eliminate the fringe benefits on a prospective basis, at any time, effective
upon notice to Executive.

 

6.                                       Business Expenses. 
Executive will be reimbursed for all reasonable, out-of-pocket business
expenses incurred in the performance of Executive’s duties on behalf of
Company.  To obtain reimbursement,
expenses must be submitted promptly with appropriate supporting documentation
in accordance with Company’s policies.

 

7.                                       Termination
of Executive’s Employment.  

 

7.1                                 Termination
for Cause by Company.  Although
Company anticipates a mutually rewarding employment relationship with
Executive, Company may terminate Executive’s employment immediately at any time
for Cause.  For purposes of this
Agreement, “Cause” is defined as: (i) acts or omissions constituting gross
negligence, recklessness or willful misconduct on the part of Executive with respect
to Executive’s obligations or otherwise relating to the business of Company;
(ii) Executive’s material breach of this Agreement or Company’s
Confidentiality Agreement; (iii) Executive’s conviction or entry of a plea
of nolo contendere for fraud, misappropriation or embezzlement, or any felony or
crime of moral turpitude; (iv) Executive’s willful neglect of duties as
determined in the sole and exclusive discretion of the Board of Directors; or
(v) Executive’s chemical dependence, as certified by a licensed physician,
resulting in impairment of Executive’s abilities to perform her duties
hereunder or substantial damage to the reputation of Company.  Notwithstanding the foregoing, the
termination of Executive’s employment shall not constitute termination for
Cause unless Company first provides Executive with written notice of the breach
and Executive fails to cure the breach (if possible) within 30 days of the
notice.  During this 30 day notice
period, Executive shall be afforded the opportunity to make a presentation to
the Board of Directors regarding the matters referred to in the notice of
breach.  In the event Executive’s
employment is terminated in accordance with this subparagraph 7.1, Executive
shall be entitled to receive only the Base Salary then in effect and any
amounts payable pursuant to paragraphs 5 and 6, prorated to the date of
termination (“Standard Entitlements”). 
All other Company obligations to Executive pursuant to this Agreement

 

2

 

will become automatically
terminated and completely extinguished. 
Executive will not be entitled to receive the Severance Package
described in subparagraph 7.2 below.

 

7.2                                 Termination
Without Cause by Company/Severance. 
Company may terminate Executive’s employment under this Agreement
without Cause at any time on 30 days’  advance written notice to Executive.  In the event of such termination, Executive
will receive the Standard Entitlements and will be eligible to receive a
“Severance Package” as described in subparagraph (a) below, provided
Executive complies with all the conditions set forth in subparagraph (b)
below.  All other Company obligations to
Executive will be automatically terminated and completely extinguished.  

 

(a)                                  Severance Package. 
The Severance Package will consist of the following:

 

(i)                                    Severance
Payment.  Executive will receive a
Severance Payment equivalent to one year
of Executive’s Base Salary then in effect on the date of termination,
less required deductions for state and federal withholding tax, social security
and all other employment taxes and payroll deductions, payable in accordance
with Company’s regular payroll cycle. 

 

(ii)                                 Bonus
Payment.  Executive will receive a Bonus Payment equivalent to the amount
of Executive’s bonus for the immediately preceding year, less required
deductions for state and federal withholding tax, social security and all other
employment taxes and payroll deductions, payable in a lump sum payment within
three months of the date of termination.

 

(iii)                              Continuation
of Group Health Benefits.  Executive will continue to receive group
health insurance benefits on the same terms as during Executive’s employment for one year following the date of
termination, provided Company’s
insurance carrier allows for such benefits continuation.  In the event  Company’s insurance carrier does not allow such coverage
continuation,  Company  agrees
to pay the premiums required to continue Executive’s group health care coverage for the one-year period,
under the applicable provisions of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (“COBRA”), provided that Executive
elects to continue and remains eligible for these benefits under COBRA, and
does not obtain health coverage through another employer during this
period.  

 

(b)                                 Conditions to Receive Severance Package.  Executive will be eligible for the Severance
Package provided that Executive: (a) complies with all surviving
provisions of this Agreement as specified in subparagraph 14.8 below; and
(b) executes a full general release, releasing all claims, known or
unknown, that Executive may have against Company arising out of or any way
related to Executive’s employment or termination of employment with
Company.  All other Company obligations
to Executive will be automatically terminated and completely extinguished. 

 

7.3                                 Voluntary
Resignation by Executive for Good Reason/Severance.  Executive may voluntarily resign Executive’s
position with Company for Good Reason at any time on 30 days’  advance
written notice to Company.  Executive
will be deemed to have resigned for Good Reason if resignation is made within
six (6) months following the occurrence of any of the following
circumstances:  (i) Company’s
material breach of this Agreement; (ii) Executive’s Base Salary is reduced
by more than 10% below Executive’s salary as provided for in this Agreement,
unless the reduction is due to a voluntary change of Executive’s
responsibilities; (iii) Executive’s
position and/or duties are

 

3

 

modified so that Executive’s duties are no longer consistent with the
position of a senior executive or Executive no longer reports to the CEO;
or (iv) Company relocates Executive’s principal place of work to a
location more than thirty (30) miles from the location specified in
subparagraph 2.3, without Executive’s prior written approval.  Notwithstanding the foregoing, the
termination of Executive’s employment under this subparagraph 7.3 shall
not constitute voluntary resignation for Good Reason unless Executive first
provides Company with written notice of the breach and Company fails to cure
the breach (if possible) within 30 days of the notice.  In the event of Executive’s resignation for
Good Reason, Executive will be entitled to receive the Standard Entitlements
and the Severance Package described in subparagraph 7.2(a) above, provided
Executive complies with all of the conditions in subparagraph 7.2(b)
above.  All other Company obligations to
Executive pursuant to this Agreement will become automatically terminated and
completely extinguished.

 

7.4                                 Voluntary
Resignation by Executive Without Good Reason.  Executive may voluntarily resign Executive’s position with
Company Without Good Reason at any time on 30 days’ advance written
notice.  In the event of Executive’s
resignation Without Good Reason, Executive will be entitled to receive only the
Standard Entitlements and no other amount. 
All other Company obligations to Executive pursuant to this Agreement
will become automatically terminated and completely extinguished.  In addition, Executive will not be entitled
to receive the Severance Package described in subparagraph 7.2 above.

 

7.5                                 Termination
Upon Death.  Executive’s employment
will terminate immediately on Executive’s death.  In the event of such termination, Company shall provide a death
benefit equal to: (i) Executive’s Base Salary then in effect, prorated for
the current year to the date of Executive’s death; (ii) an amount equal to
the bonus paid to Executive the previous year, prorated for the current year to
the date of Executive’s death; and (iii) any amounts payable pursuant to
paragraphs 5 and 6 that at the date of Executive’s death, are accrued but
unpaid (collectively “Death Benefit”). 
The Death Benefit shall be made in a lump sum payment within 90 days of
Executive’s death to such person as Executive shall designate in a notice filed
with Company or, if no such notice is filed, the Death Benefit shall be paid to
Executive’s estate.

 

7.6                                 Termination
Upon Disability.  Executive’s
employment may be terminated by Company as a result of Executive’s inability to
perform the essential functions of Executive’s position, with or without
reasonable accommodation, if required by law, due to a mental or physical
disability.  In no event will Executive’s
employment be terminated pursuant to this subparagraph 7.6 until 180
consecutive days of paid leave have elapsed and Company has provided 30 days’
written notice in advance of termination. 
In the event of termination pursuant to this subparagraph 7.6,
Executive shall be entitled to receive only the Standard Entitlements.  All other Company obligations to Executive
pursuant to this Agreement will become automatically terminated and completely
extinguished.  Executive will not be
entitled to receive the Severance Package described in subparagraph 7.2 above.  

 

7.7                                 Termination
Upon Expiration of Agreement.  If
Executive’s employment is not terminated in accordance with
subparagraphs 7.1-7.6, this Agreement will expire exactly one year from
the Effective Date.  In the event of
expiration of this Agreement, Executive shall be entitled to receive only the
Standard Entitlements earned through the date of expiration.  All other Company obligations to Executive
pursuant to this Agreement will become automatically terminated and completely
extinguished.

 

4

 

Executive will not be entitled to receive the
Severance Package described in subparagraph 7.2 above.

 

8.                                       Consultant
After Termination.  In the event
Executive’s employment is terminated pursuant to subparagraphs 7.1, 7.4 or
7.7, Executive agrees to act as a
consultant for Company, if requested to do so by Company.  Executive will be paid a fixed monthly fee
equal to 25 percent of Executive’s monthly base salary in effect at the
time of termination for up to  six (6)
months following the termination of the employment relationship (“Consultant
Payments”).  Consultant Payments shall
be made in arrears on or before the last business day of each month during
which Executive has acted as a consultant. 
Company may elect, in its sole and absolute discretion, to terminate the
Consultant Payments at any time upon 10 days’ advance written notice to
Executive.

 

9.                                       No
Conflict of Interest.  During the
term of Executive’s employment with Company and during any period Executive is
receiving payments from Company pursuant to this Agreement, Executive must not
engage in any work, paid or unpaid, that creates an actual conflict of interest
with Company.  Such work shall include,
but is not limited to, directly competing with Company in any way, or acting as
an officer, director, employee, consultant, stockholder, volunteer, lender, or
agent of any business enterprise of the same nature as, or which is in direct
competition with, the business in which Company is now engaged or in which
Company becomes engaged during the term of Executive’s employment with Company,
as may be determined by the Board of Directors in its sole discretion.  If the Board of Directors believes such a
conflict exists during the term of this Agreement, the Board of Directors may
ask Executive to choose to discontinue the other work or resign employment with
Company.  If the Board of Directors
believes such a conflict exists during any period in which Executive is
receiving payments pursuant to this Agreement, the Board of Directors may ask
Executive to choose to discontinue the other work or forego the remaining
payments.  In addition, Executive agrees
not to refer any client or potential client of Company to competitors of
Company, without obtaining Company’s prior written consent, during the term of
Executive’s employment and during any period in which Executive is receiving
payments from Company pursuant to this Agreement.  Notwithstanding the foregoing, Executive may
work or perform services for Company and its affiliates or a financial
institution or similar entity that is involved in the mortgage business so long
as such entity is not engaged primarily in managing real estate investment
trusts or originating and/or selling mortgages, and Executive may own
securities in any publicly held corporation, but only to the extent Executive
does not own of record or beneficially more than 1 percent of the outstanding
beneficial ownership of such corporation.

 

10.                                 Confidentiality
Agreement and Return of Company Property. 
Executive agrees to abide by Company’s Confidentiality Agreement that
Executive read and signed in connection with Executive’s employment by Company,
which is incorporated herein by reference.  Executive
further agrees that upon termination or expiration of Executive’s employment,
Executive will return all Company property, including all confidential and
proprietary information as described in the Confidentiality Agreement, all
materials and documents containing trade secrets and copyrighted materials, all
correspondence, management studies and any other materials or data relating to
or connected with Executive’s employment, including all copies and excerpts of
the same.

 

11.                                 Indemnification.  Company agrees to defend and indemnify
Executive to the fullest extent provided by California Labor Code
section 2802 and/or Company’s Directors’ and Officers’ liability insurance
policy.

 

5

 

12.                                 Injunctive Relief.  Executive acknowledges that Executive’s breach
of the covenants contained in paragraphs 9-10 (collectively “Covenants”) would
cause irreparable injury to Company and agrees that in the event of any such
breach, Company shall be entitled to seek temporary, preliminary and permanent
injunctive relief without the necessity of proving actual damages or posting
any bond or other security.

 

13.                                 Agreement to
Arbitrate.  To the fullest extent
permitted by law, Executive and Company agree to arbitrate any controversy,
claim or dispute between them arising out of or in any way related to this
Agreement, the employment relationship between Company and Executive and any
disputes upon termination of employment, including but not limited to breach of
contract, tort, discrimination, harassment, wrongful termination, demotion,
discipline, failure to accommodate, family and medical leave, compensation or
benefits claims, constitutional claims; and any claims for violation of any
local, state or federal law, statute, regulation or ordinance or common law.  By executing this Agreement, Executive and
Company are both waiving the right to a jury trial with respect to any such
disputes.  For the purpose of this
agreement to arbitrate, references to “Company” include all parent, subsidiary
or related entities and their employees, supervisors, officers, directors,
agents, pension or benefit plans, pension or benefit plan sponsors,
fiduciaries, administrators, affiliates and all successors and assigns of any
of them, and this agreement shall apply to them to the extent Executive’s
claims arise out of or relate to their actions on behalf of Company.  

 

13.1                           Consideration.  The mutual promise by Company and Executive
to arbitrate any and all disputes between them rather than litigate them before
the courts or other bodies, provides the consideration for this agreement to
arbitrate.

 

13.2                           Initiation
of Arbitration.  Either party may
exercise the right to arbitrate by providing the other party with written
notice of any and all claims forming the basis of such right in sufficient detail
to inform the other party of the substance of such claims.  In no event shall the request for
arbitration be made after the date when institution of legal or equitable
proceedings based on such claims would be barred by the applicable statute of
limitations.

 

13.3                           Arbitration
Procedure.  The arbitration will be
conducted in San Diego, California
by a single neutral arbitrator and in accordance with the then current rules
for resolution of employment disputes of the American Arbitration Association
(“AAA”).  The parties are entitled to
representation by an attorney or other representative of their choosing.  The arbitrator shall have the power to enter
any award that could be entered by a judge of the trial court of the State of
California, and only such power, and shall follow the law.  The parties agree to abide by and perform
any award rendered by the arbitrator. 
The arbitrator shall issue the award in writing and therein state the
essential findings and conclusions on which the award is based.  Judgment on the award may be entered in any
court having jurisdiction thereof.

 

13.4                           Costs
of Arbitration.  Company shall bear
the costs of the arbitrator, forum and filing fees.  

 

14.                                 General
Provisions.

 

14.1                           Successors
and Assigns.  The rights and
obligations of Company under this Agreement shall inure to the benefit of and
shall be binding upon the successors and assigns of Company.  Executive shall not be entitled to assign
any of Executive’s rights or obligations under this Agreement.

 

6

 

14.2                           Waiver.  Either party’s failure to enforce any
provision of this Agreement shall not in any way be construed as a waiver of
any such provision, or prevent that party thereafter from enforcing each and
every other provision of this Agreement.

 

14.3                           Attorneys’
Fees.  Each side will bear its own
attorneys’ fees in any dispute unless a statutory section at issue, if any,
authorizes the award of attorneys’ fees to the prevailing party.

 

14.4                           Severability.  In the event any provision of this Agreement
is found to be unenforceable by an arbitrator or court of competent
jurisdiction, such provision shall be deemed modified to the extent necessary
to allow enforceability of the provision as so limited, it being intended that
the parties shall receive the benefit contemplated herein to the fullest extent
permitted by law.  If a deemed
modification is not satisfactory in the judgment of such arbitrator or court,
the unenforceable provision shall be deemed deleted, and the validity and
enforceability of the remaining provisions shall not be affected thereby. 

 

14.5                           Interpretation;
Construction.  The headings set
forth in this Agreement are for convenience only and shall not be used in
interpreting this Agreement.  This
Agreement has been drafted by legal counsel representing Company, but Executive
has participated in the negotiation of its terms.  Furthermore, Executive acknowledges that Executive has had an
opportunity to review and revise the Agreement and have it reviewed by legal counsel,
if desired, and, therefore, the normal rule of construction to the effect that
any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Agreement.

 

14.6                           Governing
Law.  This Agreement will be governed
by and construed in accordance with the laws of the United States and the State
of California.  Each party consents to
the jurisdiction and venue of the state or federal courts in San Diego,  California, if applicable,
in any action, suit, or proceeding arising out of or relating to this
Agreement.

 

14.7                           Notices.  Any notice required or permitted by this
Agreement shall be in writing and shall be delivered as follows with notice
deemed given as indicated:  (i) by
personal delivery when delivered personally; (ii) by overnight courier
upon written verification of receipt; (iii) by telecopy or facsimile
transmission upon acknowledgment of receipt of electronic transmission; or
(iv) by certified or registered mail, return receipt requested, upon
verification of receipt.  Notice shall
be sent to the addresses set forth below, or such other address as either party
may specify in writing.

 

14.8                           Survival.  Sections 9 (“No Conflict of Interest”), 10
(“Confidentiality Agreement”), 12 (“Injunctive Relief”), 13 (“Agreement to
Arbitrate”), 7.2 (“General Provisions”) and 15 (“Entire Agreement”) of this
Agreement shall survive Executive’s employment by Company.

 

7

 

THE
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

 

15.                                 Entire
Agreement.  This Agreement,
including the Company’s Confidentiality Agreement incorporated herein by
reference, constitutes the entire agreement between the parties relating to
this subject matter and supersedes all prior or simultaneous representations,
discussions, negotiations, and agreements, whether written or oral.  This Agreement may be amended or modified
only with the written consent of Executive and the CEO of Company.  No oral waiver, amendment or modification
will be effective under any circumstances whatsoever.

 

THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND
FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE
PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.

 

	
   

  	
   

  	
  JUDITH BERRY

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
    3/31/03

  	
   

  	
     /s/ Judith
  Berry

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  American Mortgage Network,
  Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
    3/31/03

  	
   

  	
  By:

  	
      /s/ John
  Robbins

  
	
   

  	
   

  	
  John Robbins

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
  10421 Wateridge Circle,
  Ste. 250

  
	
   

  	
   

  	
  San Diego, CA 92121

  
						

 

8

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