Document:

Exhibit 10.7

 

 

 

UNDERWRITING FEE REIMBURSEMENT AGREEMENT

 

by and among

 

PENNYMAC MORTGAGE INVESTMENT TRUST,

 

PENNYMAC OPERATING PARTNERSHIP, L.P.

 

and

 

PNMAC CAPITAL MANAGEMENT, LLC

 

Dated as of [·], 2009

 

 

 

 

UNDERWRITING
FEE REIMBURSEMENT AGREEMENT, dated as of [·], 2009, by and
among PennyMac Mortgage Investment Trust, a Maryland real estate investment
trust (the “Trust”), PennyMac Operating Partnership,
L.P., a Delaware limited partnership (the “Operating Partnership”),
and PNMAC Capital Management, LLC, a Delaware limited liability company (the
“Manager”).

 

W I T N E S S E T H:

 

WHEREAS, the
Trust is a newly-formed Maryland real estate investment trust which intends to
invest primarily in residential mortgage loans and mortgage-related assets and
intends to qualify as a real estate investment trust for federal income tax
purposes and will elect to receive the tax benefits accorded by Sections 856
through 860 of the Internal Revenue Code of 1986, as amended (the “Code”);

 

WHEREAS, the
Trust conducts substantially all of its operations, and makes substantially all
of its investments, through the Operating Partnership, which is a Subsidiary of
the Trust;

 

WHEREAS, the
Manager has entered into the Management Agreement (as defined herein), pursuant
to which the Manager will manage the business and investment affairs of the
Trust and its subsidiaries; and

 

WHEREAS, the
Manager has entered into the Underwriting Agreement (as defined herein),
pursuant to which, among other things, the Manager has agreed to pay to the
Underwriters (as defined herein) the Manager Offering Payments (as defined
herein).

 

NOW THEREFORE,
in consideration of the premises and agreements hereinafter set forth, the
parties hereto hereby agree as follows:

 

Section 1.  Definitions.  (a)  The following terms shall have the
meanings set forth in this Section 1(a):

 

“Affiliate” means (1) any Person directly or indirectly
controlling, controlled by or under common control with such other Person, (2) any
executive officer or general partner of such other Person and (3) any
legal entity for which such Person acts as an executive officer or general
partner.

 

“Agreement” means this Underwriting Fee Reimbursement
Agreement, as amended, supplemented or otherwise modified from time to time.

 

“Board of Trustees” means the board of trustees of the Trust.

 

“Business Day” means any day except a Saturday, a Sunday or a
day on which banking institutions in New York, New York are not required to be
open.

 

“Closing Date” means the date of closing of the Initial Public
Offering.

 

“Code” has the meaning set forth in the Recitals.

 

 

“Common Shares” means the common shares of beneficial
interest, par value $0.01, of the Trust.

 

“Conditional Payment Period” has the meaning
set forth in Section 2(a).

 

“Core Earnings” means:

 

(A) GAAP
net income (loss) excluding non-cash equity compensation expense;

 

(B) excluding
any unrealized gains, losses or other non-cash items recorded in the period,
regardless of whether such items are included in other comprehensive income or
loss, or in net income; and

 

(C) adjusted
to exclude one-time events pursuant to changes in GAAP and certain other
non-cash charges after discussions between the Manager and the Independent
Trustees and after approval by a majority of the Independent Trustees.

 

“Core Earnings Offset” has the meaning
ascribed to such term in the Management Agreement.

 

“GAAP” means generally accepted accounting principles in
effect in the United States on the date such principles are applied.

 

“Incentive Fee” has the meaning ascribed to
such term in the Management Agreement.

 

“Independent Trustee” means a member of the Board of Trustees
who is not an officer or employee of the Manager or any Affiliate thereof and
who otherwise is “independent” in accordance with the rules of the NYSE or
such other securities exchange on which the Common Shares may be listed.

 

“Initial Public Offering” means the sale by the Trust of up
to [·]
Common Shares in the initial public offering of the Trust registered with the
Securities and Exchange Commission.

 

“Manager Conditional Payment” has the
meaning set forth in Section 2(a).

 

“Manager Offering Payments” has the meaning
ascribed to such term in the Underwriting Agreement.

 

“Management Agreement” means that certain
management agreement, dated the date hereof, among the Trust, the Operating
Partnership and the Manager.

 

“NYSE” means the New York Stock Exchange, Inc.

 

“Performance Hurdle” has the meaning set
forth in Section 2(a).

 

“Person” means any natural person, corporation, partnership,
association, limited liability company, estate, trust, joint venture,
unincorporated association, any federal, state, county or municipal government
or any bureau, department or agency thereof or any other legal entity and any
fiduciary acting in such capacity on behalf of the foregoing.

 

2

 

“REIT” means a “real estate investment trust” as defined
under the Code.

 

“Subsidiary” means any subsidiary of the Trust, any
partnership (including the Operating Partnership), the general partner of which
is the Trust or any subsidiary of the Trust; any limited liability company, the
managing member of which is the Trust or any subsidiary of the Trust; and any
corporation or other entity of which a majority of (i) the voting power of
the voting equity securities or (ii) the outstanding equity interests is
owned, directly or indirectly, by the Trust or any subsidiary of the Trust.

 

“Termination Fee” has the meaning ascribed to such term in
the Management Agreement.

 

“Underwriters” means the underwriters named
in the Underwriting Agreement.

 

“Underwriting Agreement” means the purchase
agreement, dated July [·], 2009, among the Trust, the
Operating Partnership, the Manager and the Underwriters relating to the Initial
Public Offering.

 

(b)           As used herein, accounting terms
relating to the Trust and the Subsidiaries, if any, not defined in
Section 1(a) and accounting terms partly defined in
Section 1(a), to the extent not defined, shall have the respective
meanings given to them under GAAP.

 

(c)           The words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement, and Section references are to this Agreement unless otherwise
specified.

 

(d)           The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of
such terms.  The words include, includes
and including shall be deemed to be followed by the phrase “without
limitation.”

 

Section 2.  Conditional
Payment to the Manager.

 

(a)           The Trust and the Operating
Partnership acknowledge the obligation of the Manager to pay to the
Underwriters the Manager Offering Payments pursuant to the terms of the
Underwriting Agreement.  The Trust and
the Operating Partnership agree to reimburse the Manager an amount (the “Manager  Conditional Payment”) equal to
the Manager Offering Payments if during any full four calendar quarter period
during the 24 full calendar quarters after the Closing Date (the “Conditional Payment Period”), the Trust’s
Core Earnings for such four-quarter period and excluding the amount of any Incentive
Fee equals or exceeds the product of:

 

(1)                                  the
weighted average of the issue price per Common Share of all of the Trust’s
public offerings of Common Shares (including the Initial Public Offering)
multiplied by the weighted average number of Common Shares outstanding
(including, for the avoidance of doubt, restricted Common Shares granted under
one or more of the Trust’s equity incentive plans) in the four-quarter period;
and

 

3

 

(2)                                  8.0%
(such product of (1) and (2), the “Performance
Hurdle”).

 

For the
avoidance of doubt, for purposes of determining whether the Manager Conditional
Payment is payable, Core Earnings shall not be offset by the Core Earnings
Offset in determining whether the Performance Hurdle has been met.

 

For
purposes of determining whether the Performance Hurdle has been
met, outstanding limited partnership interests
in the Operating Partnership (other than limited partnership interests held by
the Trust) shall be treated as outstanding Common Shares.

 

(b)           During the Conditional Payment Period
if the Manager Conditional Payment has not been made, the Manager shall compute
Core Earnings for each full four-quarter period within 30 days after the end of
each calendar quarter and shall promptly deliver such computations to the Board
of Trustees (but in no event later than the date that is 35 days after the end
of each calendar quarter).  In the event
that the Performance Hurdle has been met, the Manager Conditional Payment shall
be paid in cash to the Manager no later than the date which is five
(5) Business Days after the date of delivery to the Board of Trustees of
such computations of Core Earnings.

 

(c)           In the event the Termination Fee is
payable under the Management Agreement prior to the end of the Conditional
Payment Period and the Manager Conditional Payment has not been paid, the
amount of the Manager Conditional Payment shall be paid in cash to the Manager
on the same date as the payment of the Termination Fee in reimbursement of the Manager’s
payment of the Manager Offering Payments.

 

Section 3.  No Joint
Venture.  The
Trust, the Operating Partnership and the Manager are not partners or joint
venturers with each other and nothing herein shall be construed to make them
such partners or joint venturers or impose any liability as such on any of
them.

 

Section 4.  Term;
Termination. 
This Agreement shall become effective on the Closing Date and shall
continue in operation, until the earlier of (a) the payment in full of the
Manager Conditional Payment and (b)  [·], 2015.  If the Performance Hurdle is not met or
exceeded for a full four calendar quarter period during the Conditional Payment
Period, this Agreement and the conditional obligation to reimburse the Manager
for the Manager Offering Payments shall terminate.

 

Section 5.  Assignments.  (a)  This Agreement shall not be
assigned by any party hereto without the prior written consent of the other
parties, except in the case of assignment by the Trust or the Operating
Partnership to another REIT (in the case of the Trust) or other organization
which is a successor (by merger, consolidation, purchase of assets, or similar
transaction) to the Trust or the Operating Partnership, in which case such
successor organization shall be bound under this Agreement and by the terms of
such assignment in the same manner as the Trust and the Operating Partnership
are bound under this Agreement.

 

Section 6.  Miscellaneous.

 

(a)           Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise 

 

4

 

expressly provided herein,
shall be deemed to have been duly given or made when delivered against receipt
or upon actual receipt of (1) personal delivery, (2) delivery by
reputable overnight courier, (3) delivery by facsimile transmission with
telephonic confirmation or (4) delivery by registered or certified mail,
postage prepaid, return receipt requested, addressed as set forth below (or to
such other address as may be hereafter notified by the respective parties
hereto in accordance with this Section 6):

 

	
   

  	
  The Trust and the

  	
   

  
	
   

  	
  Operating Partnership:

  	
  PennyMac Mortgage Investment Trust

  
	
   

  	
   

  	
  PennyMac Operating Partnership, L.P.

  
	
   

  	
   

  	
  27001 Agoura Road, Third Floor

  
	
   

  	
   

  	
  Calabasas, California 91301

  
	
   

  	
   

  	
  Attention: Chief Executive Officer

  
	
   

  	
   

  	
  Fax: (818) 337-2138

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  Sidley Austin LLP

  
	
   

  	
   

  	
  787 Seventh Avenue

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
   

  	
  Attention: Edward J. Fine and J. Gerard Cummins

  
	
   

  	
   

  	
  Fax: (212) 839-5599

  
	
   

  	
   

  	
   

  
	
   

  	
  the Manager:

  	
  PNMAC Capital Management, LLC

  
	
   

  	
   

  	
  27001 Agoura Road, Third Floor

  
	
   

  	
   

  	
  Calabasas, California 91301

  
	
   

  	
   

  	
  Attention: Chief Executive Officer

  
	
   

  	
   

  	
  Fax: (818) 337-2138

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  PNMAC Capital Management, LLC

  
	
   

  	
   

  	
  27001 Agoura Road, Third Floor

  
	
   

  	
   

  	
  Calabasas, California 91301

  
	
   

  	
   

  	
  Attention: Chief Legal Officer

  
	
   

  	
   

  	
  Fax: (818) 337-2138

  

 

(b)           Binding Nature of
Agreement; Successors and Assigns. 
This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors
and assigns as provided herein.

 

(c)           Integration.  This Agreement contains the entire agreement
and understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter
hereof.  The express terms hereof control
and supersede any course of performance and/or usage of the trade inconsistent
with any of the terms hereof.

 

(d)           Amendments.  Neither this Agreement, nor any terms hereof,
may be amended, supplemented or modified except in an instrument in writing
executed by the parties hereto.

 

5

 

(e)           GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
EACH OF THE PARTIES HERETO IRREVOCABLY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA AND THE UNITED STATES
DISTRICT COURT FOR ANY DISTRICT WITHIN SUCH STATE FOR THE PURPOSE OF ANY ACTION
OR JUDGMENT RELATING TO OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREBY AND TO THE LAYING OF VENUE IN SUCH COURT.

 

(f)            WAIVER OF JURY TRIAL.  EACH PARTY HERETO ACKNOWLEDGES AND AGREES
THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO
INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH SUCH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT.

 

(g)           No Waiver; Cumulative
Remedies.  No failure to
exercise and no delay in exercising, on the part of a party hereto, any right,
remedy, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. 
The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

 

(h)           Costs and Expenses.  Each party hereto shall bear its own costs
and expenses (including the fees and disbursements of counsel and accountants)
incurred in connection with the negotiations and preparation of and the closing
under this Agreement, and all matters incident thereto.

 

(i)            Section Headings.  The section and subsection headings in this
Agreement are for convenience of reference only and shall not be deemed to
alter or affect the interpretation of any provisions hereof.

 

(j)            Counterparts.  This Agreement may be executed by the parties
to this Agreement on any number of separate counterparts (including by
telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

 

(k)           Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

6

 

IN WITNESS
WHEREOF, each of the parties hereto have executed this Underwriting Fee Reimbursement
Agreement as of the date first written above.

 

	
   

  	
  PENNYMAC MORTGAGE INVESTMENT TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PENNYMAC OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  PENNYMAC GP OP, INC.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PNMAC CAPITAL MANAGEMENT, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

7Exhibit 10.8

 

FORM OF PENNYMAC MORTGAGE INVESTMENT
TRUST

 

2009 EQUITY INCENTIVE PLAN

 

RESTRICTED SHARE UNIT AWARD AGREEMENT

 

THIS RESTRICTED SHARE UNIT
AWARD AGREEMENT (the “Agreement”), dated as of
                    ,
2009 (the “Grant Date”), is made by and between PennyMac Mortgage
Investment Trust, a Maryland real estate investment trust (the “Trust”),
and
[                      ]
(the “Grantee”).

 

WHEREAS, the Trust has adopted
the PennyMac Mortgage Investment Trust 2009 Equity Incentive Plan (the “Plan”),
pursuant to which the Trust may grant awards representing the right to receive
Shares or cash after the lapse of such forfeiture restrictions as may be
determined by the Board (such rights hereinafter referred to as “Restricted
Share Units”);

 

WHEREAS, the Grantee is
providing bona fide services to the Trust on the date of this Agreement;

 

WHEREAS, the Trust desires to
grant to the Grantee the number of Restricted Share Units provided for herein;

 

NOW, THEREFORE, in
consideration of the recitals and the mutual agreements herein contained, the
parties hereto agree as follows:

 

Section 1.               Grant of Restricted Share Unit
Award

 

(a)             Grant of Restricted Share Units.  The Trust hereby grants to the Grantee
[                        ]
Restricted Share Units on the terms and conditions set forth in this Agreement
and as otherwise provided in the Plan. The Trust shall establish a book account
in the Grantee’s name with respect to the Award granted hereby.

 

(b)             Incorporation of Plan.  The provisions of the Plan are hereby
incorporated herein by reference. Except as otherwise expressly set forth
herein, this Agreement shall be construed in accordance with the provisions of
the Plan and any capitalized terms not otherwise defined in this Agreement
shall have the definitions set forth in the Plan. The Board shall have final
authority to interpret and construe the Plan and this Agreement and to make any
and all determinations under them, and its decision shall be binding and
conclusive upon the Grantee and [his/her legal representative][its
representatives] in respect of any questions arising under the Plan or this
Agreement.

 

Section 2.               Terms and Conditions of Award

 

The grant of Restricted Share
Units provided in Section 1(a) shall be subject to the following
terms, conditions and restrictions:

 

(a)             Restrictions.  The Restricted Share Units and any
Distribution Equivalents related thereto as provided in
Section 2(d) may not be sold, assigned, transferred, pledged,

 

 

hypothecated or otherwise
disposed of, except by will or the laws of descent and distribution, prior to
the lapse of restrictions set forth in this Agreement applicable thereto, as
set forth in Section 2(b). The Board may in its discretion, cancel all or
any portion of any outstanding restrictions prior to the expiration of the
periods provided under Section 2(b). The period from the date of grant of
a Restricted Share Unit to the date it becomes vested and payable shall be
referred to herein as the “Restricted Period.”

 

(b)             Lapse of Restrictions.  Except as may otherwise be provided herein,
the restrictions on transfer set forth in Section 2(a) shall lapse
with respect to [Independent Trustees — one hundred percent (100%)] [other
grantees — twenty-five percent (25%)] of the Restricted Share Units granted
hereunder (and an equivalent percentage of the Distribution Equivalents
credited to the book account and such dates) on [Independent Trustees — on the
first anniversary][other grantees — each of the first four anniversaries] of
the Grant Date, so long as the Grantee is providing services to the Trust [or
an Affiliate] as of the relevant date.

 

(c)             Form of Payment.  Unless otherwise determined by the Board at
the time of payment, each Restricted Share Unit granted hereunder shall
represent the right to receive one Share upon the date on which the
restrictions applicable to such Restricted Share Unit lapse.

 

(d)             Distribution Equivalents.  The Grantee shall be entitled to the
crediting of a Distribution Equivalent to the book account as of each date (a “Distribution
Date”) on which cash distributions and/or special distributions are paid
with respect to Shares, provided that the record date with respect to such
distribution occurs within the Restricted Period. Upon the lapse of
restrictions as provided in Section 2(b), unless otherwise determined by
the Board at the time of payment such Distribution Equivalents shall be paid in
the form (whether in cash, Shares or other property) as distributions are paid
to the Trust’s shareholders and shall equal the product of (x) the number
of Restricted Share Units credited to such account on the record date for such
distribution and (y) the per Share distribution payable on such
Distribution Date.

 

(e)             Issuance of Certificate.  In the event that Shares are to be issued
upon any lapse of restrictions relating to the Restricted Share Units, the
Trust shall issue to the Grantee [or the Grantee’s personal representative] a
share certificate representing such Shares.

 

(f)              Termination of Service.

 

[Independent Trustees: In the
event that the Grantee’s service to the Trust is terminated pursuant to a
Removal for Cause, all Restricted Share Units subject to this Award Agreement
shall be immediately forfeited as of the effective date of such termination of
service. Upon termination of the Grantee’s service to the Trust for any reason
other than pursuant to a Removal for Cause, any Restricted Share Units granted
hereunder which have not become free of transfer restrictions shall as of the
effective date of such termination of service become fully vested and free of
such restrictions (including all Distribution Equivalents with respect
thereto).]

 

[Other Individual Grantees: In
the event that the Grantee’s service with the Trust and its Affiliates is
terminated prior to the lapsing of restrictions with respect to any portion of the
Restricted Share Unit Award granted hereunder, such portion of the Award held
by the Grantee shall become free of such restrictions or be forfeited as
follows:

 

2

 

(i)            If
such termination of service is (1) because of the Grantee’s death or
permanent disability or (2) due to a termination of the Grantee’s services
by the Trust or one of its Affiliates (other than for Cause), any Restricted
Share Units granted hereunder which have not become free of transfer
restrictions shall as of the date of such termination of service become fully
vested and free of such transfer restrictions (including all Distribution
Equivalents with respect thereto); and

 

(ii)           If
such termination of service is for any reason (including without limitation a
voluntary termination of service by the Grantee) other than as provided in
clause (i) above, any Restricted Share Units granted hereunder which have
not become free of transfer restrictions shall as of the date of such
termination of service be immediately forfeited.]

 

[Entity
Grantees: (ii) Notwithstanding any other provision of this Agreement, the
Restricted Shares Units granted hereunder shall become fully vested and free of
transfer restrictions (including all Distribution Equivalents with respect
thereto) as of the date on which the Grantee’s service is terminated other than
for Cause.]

 

Restricted Share Units (including all Distribution Equivalents with
respect thereto) forfeited pursuant to this Agreement shall be transferred to,
and reacquired by, the Trust without payment of any consideration by the Trust,
and neither the Grantee nor any of the Grantee’s successors[, heirs, assigns or
personal representatives][or assigns] shall thereafter have any further rights
or interests in such Units.

 

[Individual Grantees: (g)          Income
Taxes.  The Grantee shall pay to the
Trust promptly upon request, and in any event at the time the Grantee
recognizes taxable income in respect of the Restricted Share Units, an amount
equal to the taxes the Trust determines it is required to withhold under
applicable tax laws with respect to the Restricted Share Units. Such payment
shall be made in the form of cash, Shares already owned by the Grantee, Shares
otherwise issuable upon the lapse of restrictions, or in a combination of such
methods.]

 

Section 3.               Miscellaneous

 

(a)             Notices.  Any and all notices, designations, consents,
offers, acceptances and any other communications provided for herein shall be
given in writing and shall be delivered either personally or by registered or
certified mail, postage prepaid, which shall be addressed, in the case of the
Trust to the [Secretary of the Trust] at the principal office of the Trust and,
in the case of the Grantee, to the [Grantee’s address appearing on the books of
the Trust or to the Grantee’s residence or to such other address as may be
designated in writing by the Grantee].

 

(b)             No Right to Continued Service.  Nothing in the Plan or in this Agreement
shall confer upon the Grantee any right to continue in the service of the Trust
or any subsidiary or Affiliate of the Trust or shall interfere with or restrict
in any way the right of the Trust, which is hereby expressly reserved, to
remove, terminate or discharge the Grantee at any time for any reason
whatsoever, with or without Cause.

 

3

 

(c)             Bound by Plan.  By signing this Agreement, the Grantee
acknowledges that [he/she][its authorized representative] has received a copy
of the Plan and has had an opportunity to review the Plan and agrees to be
bound by all the terms and provisions of the Plan.

 

(d)             Successors.  The terms of this Agreement shall be binding
upon and inure to the benefit of the Trust, its successors and assigns, and of
the Grantee and [the beneficiaries, executors, administrators, heirs and
successors of the Grantee][its successors and assigns].

 

(e)             Invalid Provision.  The invalidity or unenforceability of any
particular provision hereof shall not affect the other provisions hereof, and
this Agreement shall be construed in all respects as if such invalid or
unenforceable provision had been omitted.

 

(f)              Modifications.  No change, modification or waiver of any
provision of this Agreement shall be valid unless the same be in writing and
signed by the parties hereto.

 

(g)             Entire Agreement.  This Agreement and the Plan contain the
entire agreement and understanding of the parties hereto with respect to the
subject matter contained herein and therein and supersede all prior
communications, representations and negotiations in respect thereto.

 

(h)             Governing Law.  This Agreement and the rights of the Grantee
hereunder shall be construed and determined in accordance with the laws of the
State of Maryland without giving effect to the conflict of laws principles
thereof.

 

(i)              Headings.  The headings of the Sections hereof are
provided for convenience only and are not to serve as a basis for
interpretation or construction, and shall not constitute a part, of this
Agreement.

 

(j)              Counterparts.  This 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.

 

4

 

IN WITNESS WHEREOF, this
Agreement has been executed and delivered by the parties hereto as of the
           day of
                              ,
2009.

 

	
   

  	
  PENNYMAC MORTGAGE INVESTMENT TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
  [GRANTEE]

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
				

 

5

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