Document:

imh_Ex1016_1

		

			Exhibit 10.16

		

		
			KEY EXECUTIVE EMPLOYMENT AGREEMENT
		

		
			This Key Executive Employment Agreement (“Agreement”) is entered into and is effective as of January 1, 2018, between Impac Mortgage Holdings, Inc. (“IMH”), a Maryland corporation, Impac Mortgage Corp., a California corporation (jointly referred to as “Employer”) and Joseph R. Tomkinson (“Employee”) on the following terms and conditions.
		

		
			WHEREAS, Employer engages in the business of providing residential mortgages to individuals;
		

		
			WHEREAS Employee desires to become employed by Employer as Chief Executive Officer of Employer and its related subsidiaries (Employee is also the Chairman of the Board of Directors of IMH) on the terms and conditions set forth in this Agreement; and
		

		
			WHEREAS Employer desires the services of Employee in order to obtain his specialized experience, abilities, and knowledge and is therefore willing to engage his services on the terms and conditions set forth below.
		

		
			THEREFORE, in consideration of the above recitals and of the mutual promises and conditions in this Agreement and for other valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows:
		

			
	
			
				 1.
			Term of Employment.

		
			The term of Employee under this Agreement shall begin on January 1, 2018 and end on December 31, 2018 (the “Initial Term”) and does not extend automatically. The Term, together with any early terminations as provided for herein or extensions agreed to in writing by an amendment signed by Employer and Employee, is hereinafter referred to as the “Term.” Employee or Employer shall have the option, at any time, to terminate Employee’s employment hereunder by giving at least 90 days written notice to the other party. If such notice is given then it shall be effective on the latter of 90 days or the date set forth in such notice if that date is longer than 90 days and that shall then be deemed to be the end of the Term as defined herein and may also hereafter be called an “Early Termination” but nonetheless shall serve as the end of the Term hereunder.
		

			
	
			
				 2.
			Place of Employment.

		
			Unless the parties agree otherwise in writing, during the Term, Employee shall perform the services he is required to perform under this Agreement at Employer’s offices, located in or around Orange County, California, provided, however, that Employer may from time to time require Employee to travel temporarily to other locations on Employer’s business.
		

			
	
			
				 3.
			Duties.

			
	
			
				 a.
			Employer shall employ Employee as the Chief Executive Officer of Employer and its related subsidiaries, and Employee shall perform such duties as customarily required of such a position, as identified in Exhibit A to this agreement. Employee will report to the Board of Directors of Impac Mortgage Holdings, Inc. (“IMH”).

		
			

		 

		

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				 b.
			The employment relationship between the parties shall be governed by the general employment policies and practices of Employer, as they may be amended from time to time, including but not limited to those relating to protecting confidential information and assignment of inventions and those pertaining to legal compliance and business ethics, provided, however, that when the terms of this Agreement differ from or conflict with Employer’s general employment policies or practices, this Agreement shall control.

			
	
			
				 4.
			Outside Business Activities.

		
			Subject to the terms and conditions set forth in this Agreement, Employer agrees to employ Employee as the Chief Executive Officer of Employer and its subsidiaries, and Employee hereby accepts this employment. During the Term, Employee shall devote his full-time and best efforts to performing his duties to Employer’s business and affairs.
		

			
	
			
				 5.
			Time and Effort Required.

		
			During the Term, Employee shall devote such time, interest, and effort to the performance of this Agreement as may, in the view of Employer, be fairly and reasonably necessary.
		

			
	
			
				 6.
			Competitive Activities.

		
			During the Term, Employee shall not, directly or indirectly, whether as partner, employee, creditor, shareholder, or otherwise, promote, participate, or engage in any activity or other business competitive with Employer’s business unless expressly consented to by Employer in writing.
		

			
	
			
				 7.
			Base Salary.

		
			Employee shall receive for services rendered an annual base salary of $650,000.00 payable on a semi-monthly basis in accordance with Employer’s normal payroll practices, subject to all applicable tax withholdings and other authorized deductions, this Salary shall be effective as of January 1, 2018.
		

			
	
			
				 8.
			Incentive Compensation.

		
			In addition to the base salary, Employer will be eligible to receive the following Incentive Compensation, subject to all applicable tax withholdings and other authorized deductions, and also subject to the approval of the Board Of Directors of IMH Compensation Committee:
		

			
	
			
				 a.
			Bonus . Employee will be eligible for a bonus at the end of the Term (whether the Initial Term or at the Early Termination as allowed for herein) or annually in an amount which is to be set at the discretion of the IMH Board of Directors upon a recommendation of the IMH Compensation Committee based upon certain criteria being achieved by the end of the Term.

		
			The Bonus shall be in the sole discretion of the IMH Board of Directors upon a recommendation of the IMH Compensation Committee. The determination as to each Bonus 

		 

		

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shall be completed as soon as possible after the end of each Term (whether the initial Term or at the Early Termination as provided for herein), but in no event greater than 45 days after such Term. The Bonus may be payable in cash’ stock, or stock equivalents, in the sole discretion of the Compensation Committee of the Board of Directors of IMH upon a recommendation of the Compensation Committee.
		

			
	
			
				 9.
			Stock Options.

			
	
			
				 a.
			Employee will be eligible to participate in the stock option program of Employer, Impac Mortgage Holdings, Inc. (“Parent Company”). Grants under this program are typically made annually and are up to the complete discretion of the Board of Directors of the Parent Company.

			
	
			
				 b.
			The terms and conditions of the stock options are subject to the standard terms and conditions of the plan under which the stock options are issued to other Company employees. If a conflict arises between this Agreement and any such option agreement or plan, the option agreement and plan shall govern.

			
	
			
				 10.
			Additional Benefits.

		
			During the Term, Employee shall be entitled to receive all other benefits of employment generally available to Employer’s other employees when and as he becomes eligible for them, including, medical, dental, life, and disability insurance benefits.
		

		
			Employer reserves the right to modify, suspend, or discontinue any and all of the above benefit plans, policies, and practices at any time without notice to or recourse by Employee, as long as such action is taken generally with respect to other similarly situated persons and does not single out Employee.
		

			
	
			
				 11.
			Vacation.

		
			Employee shall be entitled to five (5) weeks of paid vacation in accordance with Employer’s policies and practices in effect with respect to Employer’s other employees. The days selected for Employee’s vacation shall be mutually agreeable to Employer and Employee so that Employer’s business operations will not be unduly interrupted.
		

			
	
			
				 12.
			Expense Reimbursement.

		
			During the Term, Employer shall reimburse Employee promptly for reasonable and necessary business expenses made and substantiated in accordance with applicable law and the policies and procedures established from time to time by Employer with respect to Employer’s other employees. Employer shall furnish Employee with reasonable office space, assistance, and facilities.
		

			
	
			
				 13.
			Ownership of Intangibles and Confidential Proprietary Information Obligations.

		
			

		 

		

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			Simultaneously with executing this Agreement, Employee agrees to execute the Employer’s Confidentiality, Non-Disclosure, and Non-Recruiting Agreement and Employee Assignment of Interest in Inventions Agreement.
		

			
	
			
				 14.
			Indemnification by Employer.

		
			Employer shall, to the maximum extent permitted by law, indemnify and hold Employee harmless for any acts or decisions made in good faith while performing services for Employer. Employer may pay, subject to its discretion in the circumstances, and consistent with any legal, limitations choose to advance, all expenses, including reasonable attorney fees and costs of court- approved settlements, actually and necessarily incurred by Employee in connection with the defense of any action, suit, or proceeding and in connection with any appeal that has been brought against Employee by reason of his service as an officer or agent of Employer, with the exception of any action brought against Employee by Employer.
		

			
	
			
				 15.
			Termination of Employment; Termination Date.

		
			The date on which Employee’s employment is deemed to have ceased, as defined herein for any reason (whether Early Termination or not, is referred to as the “Termination Date.”
		

			
	
			
				 16.
			Termination Payments.

			
	
			
				 a.
			If Employee’s employment is terminated Employee shall receive payment for all accrued salary, vacation time, and benefits under benefit plans of Employer through the Termination Date. Except as otherwise stated in this Agreement, provided that Employee executes a general release in favor of Employer in a form acceptable to Employer, Employer shall also pay to Employee as severance pay the amount of $300,000.00 per year for 3 years ( payable in equal semi monthly installments over the following 36 months) less applicable tax withholdings and other authorized deductions. Employer shall also provide medical coverage to Employee for the following 48 months with coverage the same as offered to Employer’s other Employees. If Employee elects to continue this coverage after the end of the Term then Employer shall pay the COBRA premiums necessary to continue Employee’s medical insurance coverage in effect for Employee and his eligible dependents for a total of up to 48 more months. These COBRA payments will be paid by Employer in accordance with Employer’s normal payroll practices and procedures. Employer will also pay to Employee an amount equal to 40% of each monthly payment to cover Employee’s tax liability for this benefit. If COBRA is not available to Employee or Employee elects to not take the COBRA coverage then Employer shall pay to Employee an amount equal to the amount paid by Employee for alternative or supplemental medical insurance coverage up to $1,386.15 per month for the same time period plus the additional 40% for each such payment.

			
	
			
				 b.
			If Employee’s employment is terminated under this Section Employee shall also be entitled to make use of Secretarial services of Kathie Cain, (if her employment with Employer continues), for a reasonable number of hours (anticipated to be approximately 8 hours per week), for up to 2 years after the end of the Term (whether it is the Initial Term or Early Termination as provided for herein),

		
			

		 

		

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				 c.
			After the Termination Date, Employer shall not pay to Employee any other compensation or payment of any kind. Except as otherwise provided in this Section, all other benefits provided by Employer to Employee under this Agreement or otherwise shall cease as of the Termination Date.

			
	
			
				 17.
			Termination for Cause by Employer.

			
	
			
				 a.
			Termination; Payment of Accrued Salary, Unused Vacation Time and Benefits. The Board of Directors may terminate Employee’s employment with Employer at any time for Cause (as defined below), provided, however, that (i) Employer shall give written notice specifying the circumstances upon which a determination of Cause has been made, and (ii) Employee shall have a 60-day period to cure such circumstances. The Board may proceed with a termination pursuant to this Section in the event the Employee does not cure the specified circumstances within the 60- day period. In that Event Employee shall not be entitled to a 60-day cure period in the event the determination of Cause is under provisions 17b (2), (3) or (5). Employee shall receive payment for all accrued salary, unused vacation time, and benefits under Employer’s benefit plans through the Termination Date, which for purposes of this Section shall be the date on which notice of termination is given. Employer shall have no further obligation to pay any compensation of any kind (including, without limitation, any incentive compensation or portion of incentive compensation that otherwise may have become due and payable to Employee with respect to the year in which such Termination Date occurs, which for purposes of this Agreement shall, be the date specified in Employer’s notice) or severance payment of any kind or to make any payment in lieu of notice. All benefits provided by Employer to Employee under this Agreement or otherwise shall cease on the Termination Date.

			
	
			
				 b.
			Definition of Cause. “Cause” means the occurrence or existence of any of the following with respect to Employee, as determined by Employer: (1) a material breach by Employee of the terms of the Employer’s policies; (2) any act of dishonesty, misappropriation, embezzlement, fraud, or similar conduct by Employee involving Employer or its affiliates; (3) the conviction or the plea of nolo contendere or the equivalent in respect of a felony; (4) any damage of a material nature to any property of Employer or any of its affiliates caused by Employee’s willful or grossly negligent conduct; (5) the repeated nonprescription use of any controlled substance or the repeated use of alcohol or any other noncontrolled substance that, in any case described in this clause, Employer reasonably determines renders Employee unfit to serve as an officer or employee of Employer or its affiliates; (6) failure by Employee to comply with Employer’s reasonable instructions; or (7) conduct by Employee that in the good faith determination of the Board of Directors demonstrates unfitness to serve as an officer or employee of Employer or its affiliates, including, without limitation, a finding by the Board of Directors or any regulatory authority that Employee engaged in acts of employee harassment, violated Employer’s policies on ethics, workplace behavior, or legal compliance, or violated a material law or regulation applicable to the business of Employer or any of its operating subsidiaries.

			
	
			
				 18.
			Termination on Death.

		
			If Employee dies before the term of this Agreement expires, Employer shall pay to Employee’s estate the accrued portion of Employee’s salary and vacation time and benefits that 

		 

		

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Employee is then entitled to receive under Employer’s benefit plans through the Termination Date (which for purposes of this Section 17 shall be the date of Employee’s death), less standard withholdings for tax and Social Security purposes. Employer shall have no obligation to make any other payment, including severance or other compensation, of any kind (including, without limitation, any bonus or portion of a bonus that may otherwise have become due and payable to Employee with respect to the year in which the Termination Date occurs), All other benefits provided by Employer to Employee under this Agreement or otherwise shall cease on the Termination Date.
		

			
	
			
				 19.
			Employer’s Right to Assign Agreement.

		
			In the event of a merger in which Employer is not the surviving entity, or of a sale of all or substantially all of Employer’s assets, Employer may, at its sole option, assign this Agreement and ail rights and obligations under it to any business entity that succeeds to all or substantially all of the Employer’s business through that merger or sale of assets.
		

			
	
			
				 20.
			Duty of Cooperation After Termination.

		
			Employee agrees to cooperate with Employer, during the term of this Agreement and 180 days thereafter (including following Employee’s termination of employment for any reason), by being reasonably available to testify at the request of Employer or any subsidiary or affiliate in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and to assist Employer, or any subsidiary or affiliate, in any such action, suit, or proceeding by providing information and meeting and consulting with Employer, or representatives of or counsel to Employer, or any subsidiary or affiliate, as reasonably requested. Employer agrees to reimburse Employee for all expenses actually incurred in connection with Employee’s provision of testimony or assistance (including attorney fees incurred in connection therewith) on submission of appropriate documentation to Employer.
		

			
	
			
				 21.
			Dispute Resolution and Binding Arbitration.

			
	
			
				 a.
			Employee and Employer agree that any dispute that arises out of or relates to Employee’s employment relationship with Employer, the termination of that employment relationship, or the validity, enforceability, or breach of this Agreement (including this Section 25) shall be submitted to binding arbitration in accordance with the Federal Arbitration Act, not the California Arbitration Act. For the purposes of this Section 25, “Employer” includes any of its affiliates, successors, subsidiaries, or parent companies and any present or former officer, director, employee, agent, attorney, or insurer of Employer. Nothing in this Section 25 shall prevent Employee from filing or maintaining a claim for workers’ compensation, state disability insurance, or unemployment insurance benefits, and nothing in this Section 25 shall be construed to prevent or excuse Employee or Employer from using existing internal procedures for the resolution of complaints. Employee may bring claims before administrative agencies when the law permits the agency to adjudicate those claims, even when there is an agreement to arbitrate; examples include claims or charges with the United States Equal Employment Opportunity Commission (or comparable state agency), the National Labor Relations Board, the U.S. Department of Labor, or the Office of Federal Contract Compliance 

		 

		

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	Programs. Nothing in this Section 20 shall require arbitration of disputes that are excluded from coverage by this Section 20 or by law.

			
	
			
				 b.
			Employer and Employee agree that any dispute in arbitration will be brought on an individual basis only, and not on a class, collective, or representative basis on behalf of others (this agreement to be referred to hereafter as the Class Action Waiver). The Class Action Waiver does not apply to any claim that Employee brings on behalf of both himself or herself and others under the California Private Attorneys General Act of 2004.

			
	
			
				 c.
			Employee will not be subject to any retaliation or discrimination if Employee seeks to challenge this arbitration provision or participate in a class, collective, or representative action in any forum, but Employer may lawfully seek enforcement of this Agreement under the Federal Arbitration Act and seek dismissal of any class, collective, or representative actions or claims to the fullest extent allowed by law.

			
	
			
				 d.
			The parties each expressly waive the right to a jury trial and agree that the arbitrator’s award shall be final and binding on the parties, provided that any award shall be reviewable by a court of law to the fullest extent allowed by law, including for any error of law by the arbitrator. The arbitrator shall have discretion to award monetary and other damages, or to award no damages, and to fashion any other relief that the arbitrator considers appropriate, but only to the extent consistent with law. The parties expressly agree that the arbitrator shall have discretion to award the prevailing party reasonable costs and attorney fees incurred in bringing or defending an action under this Section 25, to the fullest extent allowed by law at the time the arbitration commences. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction.

			
	
			
				 e.
			Employer agrees to pay all costs and expenses unique to arbitration, including the arbitrator’s fees.

			
	
			
				 22.
			Integration.

		
			This Agreement contains the entire agreement between the parties and supersedes all prior or contemporaneous oral and written agreements, understandings, commitments, and practices between them, including all prior employment agreements, whether or not fully performed by Employee before the date of this Agreement. Without limiting the generality of the foregoing, except as provided in this Agreement, all understandings and agreements, written or oral, relating to Employee’s employment by Employer or Employer’s payment of any compensation or provision of any benefit in connection therewith or otherwise are hereby terminated and shall be of no future force or effect. Employee represents and warrants that Employee is not relying on any representations made before or outside of this Agreement. No oral modifications, express or implied, may alter or vary the terms of this Agreement, No amendments to this Agreement may be made except by a writing signed by the CEO or President of Employer, and Employee. No employee is authorized to alter or vary the terms of this Agreement except by written agreement by the CEO or President of Employer. Any representations contrary to this Agreement, express or implied, written or oral, made after the date of this Agreement are hereby disclaimed.
		

		
			

		 

		

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				 23.
			Choice of Law.

		
			This agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of California, without giving effect to the conflict of laws provisions thereof, with the exception of any claims that may be governed by federal law, such as claims governed by the Federal Arbitration Act or the Employee Retirement Income Security Act.
		

			
	
			
				 24.
			Notices.

		
			Any notice to Employer required or permitted under this Agreement shall be given in writing to Employer, either by personal delivery (including personal, delivery by e-mail) or by registered or certified mail, postage prepaid, addressed to the CEO or President at Employer’s then principal place of business. Any such notice to Employee shall be given in a like manner and, if mailed, shall be addressed to Employee at his home address then shown in Employer’s files. For the purpose of determining compliance with any time limit in this Agreement, a notice shall be deemed to have been duly given (a) on the date of delivery, if delivered personally to the party to whom notice is to be given, or (b) on the third business day after mailing, if mailed to the party to whom the notice is to be given in the manner provided in this Section 28.
		

			
	
			
				 25.
			Severability.

		
			If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances. If the Class Action Waiver in Section 29 is deemed to be unenforceable, then Employer and Employee agree that this Agreement is otherwise silent as to any party’s ability to bring a class, collective, or representative action in arbitration.
		

			
	
			
				 26.
			Employee’s Representations.

		
			Employee represents and warrants that he is not restricted, contractually or otherwise, from entering into this Agreement. Employee also warrants that he will not use or disclose any of his former employers’ trade secrets, confidential information or proprietary information in the course of his employment by Employer.
		

			
	
			
				 27.
			Counterparts.

		
			This Agreement may be executed on separate copies, any one of which need not contain signatures of more than one party but all of which taken together shall constitute one and the same Agreement.
		

			
	
			
				 28.
			Successors and Assigns.

		
			This Agreement is intended to bind and inure to the benefit of and be enforceable by Employee and Employer and their respective successors and assigns, except that Employee may not assign any of his rights or duties under this Agreement without Employer’s prior written consent.
		

		
			

		 

		

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				 29.
			Attorney Fees.

		
			If any legal proceeding is necessary to enforce or interpret the terms of this Agreement or to recover damages for breach of this Agreement, the prevailing party shall be entitled to reasonable attorney fees as well as reasonable costs and disbursements (including expert witness fees), in addition to any other relief to which the prevailing party may be entitled.
		

			
	
			
				 30.
			Amendments.

		
			No amendments or other modifications to this Agreement may be made except by a writing signed by both parties.
		

			
	
			
				 31.
			No Third Party Rights Conferred.

		
			Nothing in this Agreement, express or implied, is intended to confer on any third person any rights or remedies under or because of this Agreement. There are no third party beneficiaries of this Agreement.
		

			
	
			
				 32.
			IMH Board Seat.

		
			Upon the Termination of Employees employment hereunder, at Employee’s option, he may continue to hold his seat on the IMH Board of Directors until his then term ends. For that period he will be entitled to be compensated as a Director in the same amount that other independent Directors are compensated, for that time.
		

		
			Executed by the parties on February 15, 2018, at Irvine, California to be effective on the date first above written.
		

		
			/s/  Joseph R. Tomkinson
Joseph R. Tomkinson
		

		
			Impac Mortgage Corp., a California corporation Impac Mortgage Holdings, Inc. A Maryland corporation
		

		
			By: /s/ Ron Morrison
Name: Ron Morrison
Its: EVP
		

		
			 
		

		
			 
		

		
			

		 

		

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			Exhibit 10.16

		

		

		
			EXHIBIT A TO KEY EXECUTIVE EMPLOYMENT AGREEMENT
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			Exhibit 10.16

		

		

		
			EXHIBIT A
		

		
			JOB DESCRIPTION AND RELATED ENTITIES
		

		
			Direct, administer and coordinate the activities of the Organization in support of policies, goals and objectives established by the Chief Executive Officer and the Board by performing the following duties personally or through subordinate managers. For purposes, of this Exhibit A, “Organization” means the Employer and any affiliates or related entities of Employer for whom Executive is requested, to provide services pursuant to the Agreement. Guide and direct management in the development, strategy, growth, production, expansion into new geographic areas,, promotion, and the financial aspects of the Organization’s products and services. Direct the preparation of short-term and long-range plans and budgets based on broad corporate goals and growth objectives. Oversee executives who direct department activities that implement, the Organization’s policies. Create the structure and processes necessary to manage the Organization’s current activities and its projected growth. Implement programs that meet the Organization’s goals and objectives. Maintain, a sound plan of corporate Organization, establishing policies to ensure adequate management development and to provide for capable management succession. Develop and install procedures and controls to promote communication and adequate information flow within the Organization, Establish operating, policies consistent with the Chief Executive Officer’s broad policies and objectives and ensure their execution. Evaluate the results of overall operations regularly and systematically and. reports these results to the Chief Executive Officer and the Board. Define responsibilities, authorities and accountability of all direct subordinates and manage compliance with. same. Monitor all Organization activities and. operations for compliance with local, state and federal regulations and. laws governing business operations, and implement and oversee programs designed to ensure such compliance. Manage a staff of employees including but not limited to insuring compensation structures within the Division are appropriate. Perform supervisory duties To include hiring, corrective action, performance appraisals, salary reviews, counseling, work scheduling, training and budgeting, Executive’s responsibilities do not Include those of an advertising spokesperson, appearing in commercials or other media or materials distributed to the public. Employer will not publish Executive’s image or likeness without Executive’s consent.
		

		
			Executive acknowledges and understands that Executive may be requested by Employer to devote some or all of Executive’s time and effort during the term of employment pursuant to the Agreement to the businesses of Employer’s affiliates or related entities pursuant to certain agreements between and among Employer and such affiliates or related entities.
		

		
			Executive understands and acknowledges that Executive’s obligations under the Agreement, including Executive’s duties under the Proprietary Rights and Inventions Agreement entered into, shall apply and extend to Executive’s knowledge of the business of Employer’s affiliates or related entities and any trade secret or other confidential or proprietary information relating to same.imh_Ex106(b)_1

		

			Exhibit 10.6(b)

		

		
			SEVERANCE AGREEMENT AND GENERAL RELEASE
		

		
			This Severance Agreement and General Release (this “Agreement”), dated as of November 1, 2017, is entered into by and between Impac Mortgage Holdings, Inc., a Maryland corporation, and its affiliates and subsidiaries (the “Employer”) and William Ashmore (the “Employee”).
		

		
			RECITALS
		

		
			A. Employee has rendered services to Employer since approximately 1995.
		

		
			B.Employee currently serves as Employer’s President and COO pursuant to an employment contract dated July 1, 2009, as amended thereafter. 
		

		
			C.Employee’s employment contract with Employer will end on December 31, 2017, at which time Employee’s employment with Employer will be terminated.
		

		
			D. The parties wish to avoid any dispute regarding Employee’s services and his employment with Employer. The parties have therefore negotiated a full and final settlement of all differences between them through December 31, 2017.
		

		
			E. The parties hereby memorialize that agreement as set forth below.
		

		
			NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Employer and Employee agree as follows:
		

		
			1. Severance Benefits to Employee. 
		

		
			a. Garden Leave Benefits.  Employer and Employee agree that the 36-month period referenced in this Paragraph 1 shall be referred to as the “Garden Leave Period”  and is designed to provide financial support to Employee during that time period.   Employer and Employee agree that in order for Employee to be entitled to the “Garden Leave Benefits” provided herein (defined below), Employee shall not, during the Garden Leave Period, directly or indirectly own, manage, operate, be employed by, perform services for, consult with, solicit business for, or participate in any business that sells or provides products or services materially similar to or competitive with those products or services provided by Employer while Employee was employed by Employer, unless previously agreed to in writing by Employer, whose consent is in Employer’s sole discretion.  Starting on January 1, 2018, for each month of the Garden Leave Period that Employee complies with the restriction set forth herein, Employer agrees to pay Employee a monthly Garden Leave Benefit payment of 1/36th of the Total Garden Leave Benefit (defined below), less standard withholdings and deductions, up to a maximum cumulative sum of $750,000, less standard withholdings and deductions (the “Total Garden Leave Benefit”). Payment shall be made by the 10th day of each month for the prior month and shall be mailed to Employee’s residence or deposited into the Employee’s account (at the request of Employee).  Employee agrees that payment in this fashion is acceptable to him.  If during the Garden Leave Period, Employee violates the restriction set forth herein, Employee 

		 

 

		

			Exhibit 10.6(b)

		

shall forfeit his right to receive any further monthly Garden Leave Benefits beyond those already received by Employee before the date of his first violation.  Employee acknowledges that the payments and benefits received under this Agreement include payments and benefits that are in addition to those Employee normally would have received under Employer’s programs, plans, or policies. Except as expressly set forth in this Agreement, Employee also acknowledges that nothing in this Agreement requires Employer to continue any benefit or compensation program, plan, or policy that it currently maintains for its employees, and Employer may at any time modify, amend, or discontinue any such program, plan, or policy.
		

		
			Notwithstanding the foregoing, Employer agrees that Employee may establish, own and operate, either individually or in connection with others, an asset manager (PCH Asset Management, LLC, and/or its subsidiaries or related entities) to, among other things, establish, own operate, and manage, either individually or in connection with others, a fund to own and acquire mortgage loans or other loans or assets.    Such a business is approved as an exemption to the competition restriction set forth herein.   Employer further agrees to enter into a Mortgage Loan Purchase Agreement with such a fund or the asset manager to sell certain agreed upon products to the fund or asset manager on such market terms and conditions that the parties mutually agree upon.   Employer will also enter into a Services Agreement with the asset manager or fund to provide ancillary services to them at a reasonable market rate and terms that the parties mutually agree upon.     
		

		
			b.  Payment of COBRA Premiums.  If Employee timely elects continued medical insurance coverage under COBRA, then Employer shall pay the COBRA premiums necessary to continue Employee’s medical insurance coverage in effect for Employee and his eligible dependents for a total of 18 months.  These COBRA payments will be paid by Employer accordance with Employer’s normal payroll practices and procedures.   Employer will also pay to Employee and amount equal to 40% of each monthly payment to cover Employee’s tax liability for this benefit.   
		

		
			c.  Stock Options and Life Insurance.  Employee’s right to exercise any stock options granted to Employee will continue to vest and be exercisable until November 30, 2018.  Furthermore, the Executive life insurance policy presently held by Employer on Employee will be transferred to Employee on January 1, 2018, should he choose to continue that plan. Employer agrees to post the collateral required for such benefit ( as it currently does) until December 31, 2019.   Thereafter, if Employee so chooses, he will take full responsibility for the loan on the policy and the obligation to make future payments on the plan.  If he does not elect to take the policy, then Employer retains the rights to the policy and the rights to any payments or benefits from the policy.
		

		
			 2.    Employee Responsibilities.  Employee agrees to resign from the IMH Board of Directors and from all other employment and director positions held by Employee from all other Impac affiliates and subsidiaries as of December 31, 2017.    
		

		
			3. Release. Employee, on behalf of himself and his representatives, heirs, successors, and assigns, does hereby completely release and forever discharge Employer, including its related 

		 

 

		

			Exhibit 10.6(b)

		

or affiliated companies, partnerships, subsidiaries, and other business entities and its and their present and former respective officers, directors, shareholders, owners, agents, employees, representatives, insurers, attorneys, successors, and assigns (referred to collectively as the “Released Parties”), from and against all claims, rights, demands, actions, obligations, liabilities, and causes of action, of any and every kind, nature, and character whatsoever, that Employee has now, has ever had, or may have in the future against the Released Parties, or any of them, based on any acts or omissions by the Released Parties, or any of them, as of December 31, 2017, including, without limitation, any and all claims arising out of Employee’s rendering of services to Employer or the termination of Employee’s services, including, without limitation, any and all claims, whether based on tort, contract, or any federal, state, or local law, statute, or regulation or based on or related to the Age Discrimination in Employment Act (29 USC §§621–634); Title VII of the Civil Rights Act of 1964 (42 USC §§2000e—2000e–17), as amended by the Civil Rights Act of 1991 (42 USC §§1981–1988); the Americans with Disabilities Act of 1990 (42 USC §§12101–12213); or the California Fair Employment and Housing Act (California Government Code §§12900–12996) (referred to collectively as the “Released Claims”), to the fullest extent allowed at law. The Released Claims do not include (i) those that the law does not allow Employee to release; and (ii) any right to defense and indemnification that Employee may have either by law or pursuant to any policy or agreement with Employer in connection with any claim arising out of or in any way related to Employee’s service as either an employee, officer, or director of Employer or any Employer related entities. Notwithstanding the foregoing, Employee agrees to waive the right to recover monetary damages in any charge, complaint, or lawsuit filed by Employee or anyone else on Employee’s behalf for any Released Claims.
		

		
			4. No Legal Action. Employee represents that he has not filed, initiated, or caused to be filed or initiated any legal action covering any Released Claim and agrees that Employee will never file, initiate, or cause to be filed or initiated, at any time after the execution of this Agreement, any claim, charge, suit, complaint, action, or cause of action, in any state or federal court or before any state or federal administrative agency, based in whole or in part on any Released Claim. Further, Employee shall not participate, assist, or cooperate in any suit, action, or proceeding against or regarding the Released Parties, or any of them, unless compelled to do so by law.
		

		
			5. Release Full and Final. Employee understands and agrees that this is a full and final release covering all unknown and unanticipated injuries, debts, claims, or damages to Employee that may have arisen or may arise in connection with any act or omission by the Released Parties before the date of execution of this Agreement. For that reason, Employee hereby waives any and all rights or benefits that he may have under the terms of California Civil Code §1542, which provides as follows:
		

		
			A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which, if known to him or her, must have materially affected his or her settlement with the debtor.
		

		
			

		 

 

		

			Exhibit 10.6(b)

		

		

		
			6. Costs and Expenses. Except as provided in Paragraph 1 above, the parties agree that each party shall be responsible for the payment of his or its own costs, attorney fees, and all other expenses in connection with the negotiation of this Agreement or any of the Released Claims.
		

		
			7. No Admission of Liability. It is understood and agreed that this is a compromise of doubtful and disputed claims, or potential disputed claims, and the furnishing of the consideration for this Agreement shall not be deemed or construed as an admission of liability or responsibility at any time for any purpose. It is further agreed and understood that this compromise and this Agreement are being entered into solely for the purpose of avoiding further expense and inconvenience from defending against any or all of the Released Claims. Employer expressly denies liability for any and all Released Claims.
		

		
			8. Terms and Conditions Confidential. Each party agrees to hold the terms and conditions of this Agreement in strict confidence. Employee shall not disclose the terms and conditions of this Agreement to any past or present employee of Employer or to any other individual except Employee’s attorneys, accountants, tax consultants, state or federal authorities, or as may be required by law. Any person to whom disclosure of the terms and conditions of this Agreement is made in accordance with this Paragraph 7 shall be instructed that the terms and conditions of this Agreement are confidential. In the event that an inquiry is made to any of the parties by any individual, other than the individuals described in this Paragraph 7, to whom the parties are bound or required to disclose such information, regarding the status of the dispute between the parties, the parties may comment only that this dispute was “resolved.” No party shall disparage any other party, nor shall any party make any public statement nor do any act that is calculated or likely to result in an inquiry by any member of the public as to any aspect of the dispute between the parties or any of the information covered by this confidentiality provision. All parties shall make their best efforts in all respects and in good faith to keep all information concerning the dispute between the parties or any of the information covered by this confidentiality provision confidential and secret from any person except the individuals described in this Paragraph 7 to whom the parties are legally bound or otherwise required or permitted to disclose such information.
		

		
			9. Waiver of Future Employment. Employee understands that Employee’s employment with Employer will terminate effective December 31, 2017; Employee waives any rights to future employment; and Employee agrees to never again apply for or seek employment with Employer or any subsidiary or affiliate of Employer.  Employee agrees that should Employee apply for employment with Employer or any subsidiary or affiliate, the Employer shall have a legitimate, non-discriminatory and non-retaliatory basis to deny Employee’s application for employment without recourse.
		

		
			10. Inquiries. Any inquiry to Employer about Employee shall be referred to the then-current head of human resources, who will only state that Employee was employed as President and COO from 1995 through December 31, 2017, and that Employer’s policy does not permit further discussion about its employees.
		

		
			

		 

 

		

			Exhibit 10.6(b)

		

		

		
			11. Non-Disparagement.    Employee agrees and promises that he will not undertake any harassing or disparaging conduct directed at Employer, and that he will refrain from making any negative, detracting, derogatory, and unfavorable statements about Employer.  Employee further agrees and promises that he will not induce or incite claims of discrimination, wrongful discharge, or any other claims against Employer by any other person.
		

		
			12. Future Cooperation.    Employee agrees to cooperate with the Employer and use his best efforts in responding to all reasonable requests by the Employer for assistance and advice relating to matters and procedures in which Employee was involved or which Employee managed or was responsible for while Employee was employed by the Employer.  Employer agrees that this shall not create an unreasonable demand on Employee’s time.    
		

		
			13. Wages; Work-Related Injuries. Employee hereby acknowledges that all wages accrued to the date of this Agreement have been paid to Employee by Employer and that there has been no unreported work-related injury through the date of this Agreement.
		

		
			14. Counterparts. This Agreement may be executed in one or more counterparts or duplicate originals, all of which, taken together, shall constitute one and the same instrument. Facsimile or electronic signatures shall be equally binding as originals.
		

		
			15. No Reliance; Consideration. The undersigned parties each acknowledge that they have entered into this Agreement voluntarily, without coercion, and on the basis of their own judgment and not in reliance on any representation or promises made by the other party, other than those contained in this Agreement. This Agreement recites the sole consideration for the promises exchanged in this Agreement. Each party has read this Agreement and is fully aware of its contents and legal effect.
		

		
			16. Legality; Survival; Binding Effect. If any one or more of the provisions of this Agreement is held to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby. This Agreement shall survive the performance of the specific arrangement herein. This Agreement is binding on and shall inure to the benefit of the parties and their respective heirs, executors, administrators, successors, and assigns.
		

		
			17. Amendments; Integration; Headings. The parties understand and agree that this Agreement may be amended or modified only by a signed writing and may not be amended or modified orally. This Agreement incorporates the entire understanding and agreement of the parties concerning its subject matter and supersedes all prior agreements and understandings concerning such subject matter. The headings of this Agreement are for convenience of reference only and shall not limit the interpretation of this Agreement.
		

		
			18. Authority. Each person executing this Agreement on behalf of a corporation or other legal entity warrants that he holds the position indicated beneath his signature and that he has been duly authorized by the corporation or other legal entity to execute this Agreement on its behalf.
		

		
			

		 

 

		

			Exhibit 10.6(b)

		

		

		
			19. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California, without regard to conflict-of-law principles.
		

		
			   20. Right to Consider Before Signing; Right to Revoke. Under the Older Workers Benefit Protection Act of 1990, Employee is advised as follows: (a) that Employee should consult an attorney regarding this Agreement before executing it; (b) that Employee has 21 days from the date that this Agreement is presented to Employee in which to consider this Agreement and whether he will enter into it, although Employee may, in the exercise of Employee’s own discretion, sign or reject it at any time before the 21-day period expires; (c) that, at any time within seven days after executing this Agreement, Employee may revoke this Agreement; and (d) that this Agreement is not enforceable until the revocation period has passed.   
		

		
			   21.Arbitration. The parties agree that any controversy or claim arising out of or relating to this Agreement, or any dispute arising out of the interpretation or application of this Agreement, shall be resolved by binding arbitration before a retired Superior Court Judge and shall be conducted in accordance with the provisions of the California Arbitration Act, codified at California Code of Civil Procedure §1280 et seq..  The arbitrator’s fees and costs shall be the responsibility of the Employer.
		

		
			    IN WITNESS WHEREOF, the parties have executed this Agreement on the respective dates set forth below.
		

		
			 
		

		
			Dated:  November 1, 2017Impac Mortgage Holdings, Inc., a 
		

		
			Maryland corporation
		

		
			 
		

		
			

                       By: /S/ Joe Tomkinson                              
		

		
			Name: Joe Tomkinson                               
		

		
			Title: Chairman/CEO                                 
		

		
			 
		

		
			Dated:  November 1, 2017/S/ William Ashmore                                     
		

		
			William Ashmore

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