Document:

exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 29th day of September,
2009 by and between Flagstar Bancorp, Inc., a Michigan corporation maintaining offices at 5151
Corporate Drive, Troy, Michigan 48098 (the “Company”), and Joseph P. Campanelli, residing at 55
Livermore Road, Wellesley, MA 02481 (“Executive”) (the Company and Executive referred to
collectively as the “Parties” and individually as a “Party”).

W I T N E S S E T H:

     WHEREAS the Company is a holding company, primarily engaged, through its subsidiaries, in the
business of obtaining funds in the form of deposits and wholesale borrowings and investing those
funds in single-family mortgages and other types of loans (the “Business of the Company”) and
desires to employ Executive as its President and Chief Executive Officer (“CEO”), and Executive
desires to become so employed by the Company,

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the
Parties agree as follows:

ARTICLE ONE

EMPLOYMENT

     1.01 Agreement as to Employment.

          This Agreement will be deemed to be effective as of September 29th, 2009 (the “Effective
Date”). As of the Effective Date, the Company hereby employs Executive as its President and CEO,
and Executive hereby accepts such employment by the Company, subject to the terms of this
Agreement. Notwithstanding anything herein to the contrary, Executive’s employment and the
Company’s and Executive’s obligations hereunder are contingent upon receipt by Flagstar Bank, FSB
(“Flagstar Bank”) of prior written non-objection of the Regional Director of the Office of Thrift
Supervision in accordance with condition 7 of Order number 2009-06, issued January 29, 2009 by the
Office of Thrift Supervision. In the event such prior written non-objection is not received, this
Agreement shall terminate effective immediately prior to the Effective Date and neither the Company
nor Executive shall have any obligations hereunder.

     1.02 Employment Term.

          The initial stub term of Executive’s employment by the Company under this Agreement shall
commence on the Effective Date and end on December 31, 2009 (the “Stub Period”). Following the
Stub Period, the initial term of Executive’s employment by the Company under this Agreement shall
commence on January 1, 2010 and end on December 31, 2012 (the “Initial Term”), and Executive’s
employment hereunder shall continue thereafter for successive terms of one (1) year following the
Initial Term (the Stub Period, the Initial Term and each one (1)-year term thereafter being
collectively referred to as the “Term”), unless either Party delivers written notice to the other
Party at least two (2) months prior to end of the Initial Term or of any subsequent year (the
“Notice Period”) that it or he wishes to terminate this

 

 

Agreement, in which event this Agreement shall terminate as of the end of the Term, unless
earlier terminated as hereinafter provided. The Company reserves the right to relieve Executive of
his duties at any time after his or its notice of termination without affecting his right to
compensation and other benefits under the Agreement during the Notice Period and without such
relief’s constituting a separate termination or a breach of this Agreement. No termination of this
Agreement shall be effective as to those portions of this Agreement which, by their express terms
as set forth herein, require performance by either Party following termination of this Agreement.

     1.03 Freedom to Contract.

          Executive represents and warrants that he has the right to enter into this Agreement, that he
is eligible for employment by the Company and that no other written or verbal agreements exist that
would be in conflict with or prevent performance of any portion of this Agreement. Executive
further agrees to hold the Company harmless from any and all liability arising out of any prior
contractual obligations entered into by Executive. Executive represents and warrants that he has
not made and will not make any contractual or other commitments that do or would conflict with or
prevent his performance of his obligations hereunder.

     1.04 Title and Duties.

(a) During the Term, Executive shall be employed by the Company to serve as its President
and CEO, subject to the authority and direction of the Company’s Board of Directors (the
“Board”), and shall report directly to the Board. Executive shall perform such duties
relating to the Company and its affiliates, including any subsequently-acquired affiliates
(collectively the “Affiliates”), consistent with his position as President and CEO, as are
assigned to him from time to time by the Board and any other duties undertaken or accepted
by Executive consistent with such position. In that connection, throughout the Term
Executive shall serve as president and chief executive officer and as a director of each of
the Company’s subsidiaries which are material to the Business of the Company as determined
by the Board in its discretion (collectively, the “Material Subsidiaries”). Executive shall
have such authority, responsibility and duties as are normally associated with the positions
of President and CEO with respect to the Company and with the positions of president and
chief executive officer with respect to the Material Subsidiaries. Executive shall be
appointed to such positions with the Company and the Material Subsidiaries effective as of
the Effective Date.

(b) Subject to the provisions of this subsection 1.04(b), Executive agrees to devote
substantially all of his business time and efforts to the Company as long as he is employed
under this Agreement. Notwithstanding the foregoing, Executive may continue, throughout the
Term, to engage in charitable, community and personal activities and in the management of
personal investments and his personal and family affairs, and he may serve on the board of
directors of up to two for-profit corporations, provided that such activities in the
aggregate do not conflict with the interests of the Company or interfere with his
obligations under this Agreement.

(c) The Executive shall be appointed to the Board effective as of the Effective Date and the
Company shall use its reasonable best efforts to cause Executive to be nominated
for reelection to the Board at each annual meeting of the stockholders of the Company held
during the Term.

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1.05 Compensation.

(a) Base Salary. During the Stub Period, the Company shall pay to Executive a gross
monthly base salary of $158,333.00, payable monthly or more frequently in accordance with
the Company’s payroll policy for its other executives and pro-rated for any partial month
during the Stub Period. During the Initial Term, the Company shall pay to Executive a gross
annual salary of $1,900,000.00 (the “Base Salary”), payable monthly or more frequently in
accordance with the Company’s payroll policy for its other executives. Following the
Initial Term, the Base Salary shall be reviewed for adjustment at the discretion of the
Board annually during the Term, and, if adjusted (but not below $1,100,000), such adjusted
amount shall become the “Base Salary” for purposes of this Agreement.

(b) Share Salary. During the Stub Period, the Company shall pay to Executive a
gross monthly share salary of $62,500.00, payable at the time that base salary is payable to
the Executive and pro-rated for any partial month during the Stub Period, in grants of
unrestricted shares of the Company’s common stock, par value $0.01 per share (the “Common
Stock”), having a Fair Market Value (as defined below) on the date of grant equal to the pro
rata portion of the share salary payable on each such pay date. During the Initial Term,
the Company shall pay to Executive a gross annual share salary of $750,000.00 payable, at
the time that base salary is payable to the Executive, in grants of unrestricted shares of
the Common Stock, having a Fair Market Value on the date of grant equal to the pro rata
portion of the share salary payable on each such pay date (the “Share Salary”). For
purposes of this Agreement, “Fair Market Value” shall mean, as of any specified date, the
closing price of the Common Stock as reported in The Wall Street Journal’s New York Stock
Exchange (“NYSE”) — Composite Transactions listing for such day (corrected for obvious
typographical errors), or if the shares are listed for trading on the NYSE but no closing
price is reported in such listing for such day, then the last reported closing price for
such shares on the NYSE, or if such shares are not listed or traded on the NYSE, the closing
sales price on any national securities exchange on which the Common Stock is traded, or if
the Common Stock is not traded on any national securities exchange, then the mean of the
reported high and low sales prices for such shares in the over-the-counter market, as
reported on the National Association of Securities Dealers Automated Quotations System, or
if such prices shall not be reported thereon, the mean between the closing bid and asked
prices reported by the National Quotation Bureau Incorporated, or in all other cases, the
fair market value of a share of Common Stock as determined in good faith by the Board. The
Board may, but shall have no obligation to, engage one or more appraisers in making its
determination of Fair Market Value, and the Fair Market Value as determined by the Board may
be higher or lower than any such appraisal. In making its determination of Fair Market
Value, the Board shall comply with Section 409A (as defined below), to the extent
applicable, and the applicable Internal Revenue Service and Treasury Department regulations
thereunder. Following the Initial Term, the Share Salary shall be reviewed for increase
(but not decrease) at the discretion of the Board annually during the Term, and, if
adjusted, such adjusted amount shall become the “Share Salary” for purposes of this
Agreement.

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(c) Discretionary Shares. The Company may (as determined by the Board, or a
committee thereof designated to make such determination, in its sole discretion) grant to
Executive, at the end of each calendar year, including the Stub Period, an additional amount
the Fair Market Value of which is equal to up to one-third (1/3) of Executive’s annual
compensation for such year, in restricted shares of Common Stock, with the Fair Market Value
of such shares determined on the date of grant; provided, however, that no such shares shall
be granted unless Executive remains employed by the Company, without notice of termination
of his employment or this Agreement by either Party for any reason, through the date on
which any such grant is due to be made. For purposes of this Section 1.05(c), “annual
compensation” shall have the meaning as set forth in the Interim Final Rule, as may be
amended from time to time, including pursuant to any final rule. The “Interim Final Rule”
shall mean the interim final rule promulgated pursuant to section 101(a)(1), 101(c)(5) and
111 of the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery
and Reinvestment Act of 2009, which was published by the Department of the Treasury on June
15, 2009 (the “Interim Final Rule”). Any such granted restricted shares shall vest (as
determined by the Board, or a committee thereof designated to make such determination, in
its sole discretion) in accordance with performance goals (which performance goals shall be
determined by the Board or such committee after consultation with the Executive and shall be
reasonably achievable without excessive risk taking in the context of the Company’s business
plan approved by the Board or such committee after consultation with the Executive) and
continued substantial service by Executive as set forth in the grant agreement evidencing
each such award and, until the Company is no longer subject to the Troubled Asset Relief
Program under the Emergency Economic Stabilization Act of 2008, including the Interim Final
Rule and any other rules and regulations thereunder, as amended (the “TARP Requirements”),
shall be subject to all applicable TARP restrictions, including, without limitation, a
minimum two (2) year vesting requirement from the date of grant as set forth in the Interim
Final Rule, as may be amended from time to time, including pursuant to any final rule.

(d) Business Expenses. The Company shall promptly pay directly, or shall reimburse
Executive for, all business expenses, including but not limited to expenses for travel and
entertainment, paid or incurred by Executive during the Term that are reasonable and
appropriate to the conduct by Executive of the Company’s business, subject to Executive’s
providing reasonable substantiation of such expenses to the Company in accordance with
Company policies. In addition, the Company shall promptly pay all reasonable expenses
incurred by Executive in connection with the drafting and negotiation of this Agreement, the
Exhibit hereto and related matters.

1.06 Supplemental Retirement Pension.

(a) On the last day of each of the first 60 months (pro-rated for any partial month) of the
Term, the Company shall accrue for the benefit of the Executive, a supplemental retirement
accrual (the “Monthly Supplemental Retirement Accrual”) equal to 1.022% of the sum of Base
Salary (at the annual rate scheduled to take effect on January 1, 2010) and Share Salary (at
the annual rate scheduled to take effect on January 1, 2010), provided the Executive is
still employed by the Company on the date of each such monthly accrual. Subject to the
terms of this Agreement, each Monthly Supplemental

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Retirement Accrual shall be vested on the date of such accrual. Upon the later of the
Executive’s “separation from service” (within the meaning of Section 409A)(“Separation from
Service”) and attainment of age 62, the Company shall commence payment to Executive of an
annual supplemental retirement benefit (the “Supplemental Retirement Benefit”) which is
equal to the difference between (i) Executive’s aggregate Monthly Supplemental Retirement
Accruals and (ii) the Offset Amount (as defined below) determined at age 62 and assuming
such Supplemental Retirement Benefit is paid in the form of equal annual installments for a
twenty-three (23) year period certain commencing upon Executive’s Separation from Service
(the “Period Certain Payments”). Notwithstanding the foregoing, the Company and the
Executive hereby agree that the Supplemental Retirement Benefit shall be paid in a lump sum
which shall be the actuarial equivalent of the Period Certain Payments using the applicable
interest rate under Section 417(e)(3) (“Code Section 417(e)(3)”) of the Internal Revenue
Code of 1986, as amended, in October of the year preceding the year of payment. If the
Executive dies or becomes “disabled” (within the meaning of Section 409A (as defined below))
prior to attaining age 62, his beneficiary or Executive, as applicable, shall, within 90
days after the date of death or disability, as applicable, receive the present value at the
date of his death or disability, as applicable, of the Supplemental Retirement Benefit (to
the extent accrued through the date of his death or disability, as applicable) that would
otherwise have been payable to Executive upon attaining age 62. Notwithstanding the
foregoing, in the event the Executive’s employment is terminated by the Company for Cause
(as defined below), the Supplemental Retirement Benefit shall be forfeited.

(b) For purposes of this Section 1.06, “Cause” shall mean that the Executive:

     (i) willfully fails or refuses to substantially perform the Executive’s
responsibilities under this Agreement, after demand for substantial performance has
been given by the Board that specifically identifies how the Executive has failed to
perform such responsibilities;

     (ii) engages in gross misconduct which is materially and demonstrably injurious
to the Company;

     (iii) is convicted of a felony or pleads guilty or nolo contendere to a felony;

     (iv) materially breaches Article Two of this Agreement;

     (v) engages in any act of fraud (including misappropriation of the Company’s
funds or property) in connection with the Business of the Company which is
materially and demonstrably injurious to the Company; or

     (vi) is disqualified or barred by any governmental or self-regulatory authority
from serving in the capacity contemplated by this Agreement

The termination of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a
resolution duly adopted by the affirmative vote of not less than 66% of the

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entire membership of the Board (excluding the Executive) at a meeting of the Board
called and held for such purpose (after reasonable notice is provided to the
Executive and the Executive is given an opportunity, together with counsel, to be
heard before the Board) finding that, in the good faith opinion of the Board, the
Executive is guilty of the conduct described above, and specifying the particulars
thereof in detail. For purposes of this Agreement, no act or omission on the part
of the Executive shall be considered “willful” unless it is done or omitted in bad
faith or without reasonable belief that the act or omission was in the best
interests of the Company. Any act or omission based upon a resolution duly adopted
by the Board or upon advice of counsel for the Company shall be conclusively
presumed to have been done or omitted in good faith and in the best interests of the
Company.

     (c) For purposes of this Section 1.06, the “Offset Amount” shall mean the sum of:

     (i) one hundred percent (100%) of Executive’s retirement benefit balance at the
time of his Separation from Service under the Company’s 401(k) plan and any other
tax-qualified defined contribution or defined benefit pension plan maintained by the
Company or any Affiliate, to the extent but only to the extent that such retirement
benefit is attributable to contributions to such plans made by the Company (and not
to contributions made by Executive), converted to an actuarially equivalent single
life annuity commencing on the date the Supplemental Retirement Benefit is paid,
using the applicable interest rate and applicable mortality table under Code Section
417(e)(3), regardless of whether such benefit payment is in that form or begins at
that time;

     (ii) one hundred percent (100%) of Executive’s retirement benefit under any
other supplemental retirement benefit, excess contribution or excess benefit plan
or arrangement maintained by the Company or any Affiliate, to the extent but only to
the extent that such retirement benefit is attributable to contributions to such
plans made by the Company (and not to contributions made by Executive), converted to
an actuarially equivalent single life annuity commencing on the date the
Supplemental Retirement Benefit is paid, using the applicable interest rate and
applicable mortality table under Code Section 417(e)(3), regardless of whether such
benefit payment is in that form or begins at that time; and

     (iii) fifty percent (50%) of the primary Social Security benefit to which
Executive would be entitled at Separation from Service, assuming zero compensation
after Separation from Service, regardless of whether he receives any portion of such
primary Social Security benefit on such date.

     1.07 Fringe and Other Benefits.

          During the Term, the Company shall make available to Executive such fringe and other benefits
and perquisites as are regularly and generally provided to the other senior executives of the
Company, subject to the terms and conditions of any employee benefit plans and arrangements
maintained by the Company and all applicable TARP Requirements, including, without limitation, the
restriction on tax gross-up payments.

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     1.08 Share Purchase.

          Executive shall purchase from the Company 1,987,500 shares of Common Stock in accordance with
and subject to the conditions contained in a Purchase Agreement entered into between Executive and
the Company as of the date hereof.

     1.09 Termination of Employment. 

(a) Payments Upon Termination. If Executive terminates his employment under this
Agreement for any reason or if the Company terminates Executive’s employment under this
Agreement for any reason, then, upon any such termination of Executive’s employment,
Executive shall receive from the Company: any unpaid Base Salary and Share Salary for any
period ending on or before the date of termination of employment, any unreimbursed business
expenses subject to reimbursement under Section 1.05, vacation pay for accrued but unused
vacation days through the date of termination and any benefits to which Executive may be
entitled pursuant to the terms and conditions of any applicable employee benefit plan of the
Company, which shall be paid on the Company’s first payroll date following Executive’s
termination of employment (or, for purposes of benefits under an employee benefit plan of
the Company, provided pursuant to the terms of the applicable employee benefit plan).
Notwithstanding anything to the contrary, no payment or benefit will be provided to
Executive if any such payment or benefit would violate the TARP Requirements.

(b) Return of Company Property. Upon termination of Executive’s employment, or upon
the request of the Company at any time, Executive shall terminate his use of and return to
the Company all Company property, including without limitation, any Confidential
Information, vehicles, credit cards, equipment, computers, phones, cell phones, pagers,
equipment, supplies, tools, keys or locks.

(c) No Further Obligations. Upon termination of Executive’s employment under this
Agreement, the Parties shall have no further obligations under this Agreement to each other
except as expressly stated herein and in any written employee benefit plans and arrangements
applicable to Executive which are maintained by the Company at the time of such termination
of Executive’s employment, and no further payments of Base Salary or Share Salary or other
compensation or benefits shall be payable by the Company to Executive, except such
obligations and payments (i) as are set forth in this Section 1.09; (ii) as are required by
the express terms of any written employee benefit plans and arrangements applicable to
Executive which are maintained by the Company at the time of such termination of Executive’s
employment; (iii) as may be required by law or (iv) as may be mutually agreed upon between
the Parties in a signed written negotiated agreement entered into in connection with a
termination of Executive’s employment under this Agreement, which agreement shall contain a
release in favor of the Company which is comparable in scope to the release referred to in
the next sentence. Notwithstanding any other provision of this Agreement, as a precondition
to the payment of any compensation or benefits in excess of those otherwise required by law
to be paid upon termination of employment, the Executive agrees to execute a release of any
claims against the Company, its employees, officers, directors, shareholders, Affiliates and
subsidiaries arising out of, in connection with or relating to Executive’s employment with
or termination of employment from the Company including any claims under the terms of

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this Agreement, and specifically including but not limited to a release of claims under the
Age Discrimination in Employment Act and any similar rights under any state or local law, in
a form reasonably acceptable to the Company. Anything to the contrary herein
notwithstanding, nothing in the releases described in this Section 1.09(c) shall release any
releasee from any claims or damages based on (i) any right or claim that arises exclusively
from events occurring after the date Executive executes such release, (ii) any right
Executive may have to payments, benefits or entitlements under this Agreement or any
applicable plan, policy, program or arrangement of, or other agreement with, the Company or
any Affiliate, (iii) Executive’s eligibility for indemnification in accordance with this
Agreement, the organizational documents of the Company and the Material Subsidiaries (said
documents collectively referred to as the “Corporate Documents”), or applicable laws, or
under any applicable insurance policy, with respect to any liability Executive incurs as a
director, officer or employee of the Company or any Affiliate or (iv) any right Executive
may have to obtain contribution as permitted by law in the event of entry of judgment
against Executive as a result of any act or failure to act for which Executive and any
releasee are jointly liable. For so long as the Company is subject to the TARP
Requirements, any such agreement or release shall be subject to the TARP Requirements.

     1.10 Force Majeure.

          Notwithstanding any other provision of this Agreement, if, as a result of force majeure,
including and without limitation (i) acts of God; (ii) acts of public enemy; (iii) civil
disturbances; (iv) war or (v) any and all other events and circumstances not within or subject to a
Party’s reasonable control, the Company is unable to carry out, wholly or in part, its duties and
obligations under this Agreement, then the duties and obligations shall be suspended during the
continuance of the force majeure event. The Company shall use all reasonable diligence to remove
the force majeure event as quickly as reasonably possible. The requirement that any force majeure
shall be remedied with all reasonable diligence shall not require the settlement of strikes,
lockouts or other labor difficulty suffered, but resolution of all such difficulties shall be
entirely within the discretion of the Party concerned.

ARTICLE TWO

RESTRICTIVE COVENANTS

     2.01 Confidentiality.

          In the course of performing his duties for the Company, the Company agrees to provide the
Executive with certain proprietary, confidential and trade secret information of the Company and
its affiliates, including but not limited to: the database of customer accounts; customer, supplier
and distributor list; customer profiles; information regarding sales and marketing activities and
strategies; trade secrets; data regarding technology, products and services; information regarding
pricing, pricing techniques and procurement; financial data and forecasts regarding the Company and
customers, suppliers and distributors of the Company; software programs and intellectual property
(collectively, “Confidential Information”). All Confidential Information shall be and remain the
sole property of the Company and its assigns, and the Company shall be and remain the sole owner of
all patents, copyrights, trademarks, names and other rights in connection therewith and without
regard to whether the Company is at

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any particular time developing or marketing the same. The Executive acknowledges that the
Confidential Information is a valuable, special and unique asset of the Company and that his access
to and knowledge of the Confidential Information is essential to the performance of his duties as
an employee of the Company. In light of the competitive nature of the business in which the
Company is engaged, Executive agrees that he will, both during the Term and thereafter, maintain
the strict confidentiality of all Confidential Information known or obtained by him or to which he
has access in connection with his employment by the Company and that he will not, without prior
written consent of the Board for and on behalf of the Company, (i) disclose any Confidential
Information to any person or entity (other than in proper performance of his duties hereunder) or
(ii) make any use of any Confidential Information for his own purposes or for direct or indirect
benefit of any person or entity other than the Company. Confidential Information shall not be
deemed to include (a) information which becomes generally available to the public through no fault
of the Executive, (b) information which is previously known by the Executive prior to his receipt
of such information from the Company, (c) information which becomes available to the Executive on a
non-confidential basis from a source which, to the Executive’s knowledge, is not prohibited from
disclosing such information by legal, contractual or fiduciary obligation to the Company or (d)
information which is required to be disclosed in order to comply with any applicable law or court
order. Immediately upon termination of the Executive’s employment or at any other time upon the
Company’s request, the Executive will return to the Company all memoranda, notes and data, computer
software and hardware, records or other documents compiled by the Executive or made available to
the Executive during the Executive’s employment with the Company concerning the Business of the
Company, including without limitation, all files, records, documents, lists, equipment, supplies,
promotional materials, keys, phone or credit cards and similar items and all copies thereof or
extracts therefrom.

     2.02 No Solicitation of Employees. 

          Executive agrees that, both during the Term and for a period of one year following termination
by the Executive of his employment with the Company other than for Good Reason or any termination
of Executive’s employment by the Company, Executive will not, directly or indirectly, on behalf of
himself or any other person or entity, hire, engage or solicit to hire for employment or consulting
or other provision of services, any person who is actively employed (or in the six months preceding
Executive’s termination of employment with the Company was actively employed) by the Company,
except for rehire by the Company. This includes, but is not limited to, inducing or attempting to
induce, or influence or attempting to influence, any person employed by the Company to terminate
his or her employment with the Company.

     2.03 No Solicitation of Customers.

          Executive agrees that, both during the Term and for a period of one year following termination
by the Executive of his employment with the Company other than for Good Reason or any termination
of Executive’s employment by the Company, Executive will not directly, on behalf of any competitor
of the Company in the Business of the Company, solicit the business of any entity within the United
States who is a customer of the Company.

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     2.04 Non-Competition. 

          In return for the Company’s promises herein, including the promise to provide Executive with
Confidential Information, and in accordance with Executive’s acknowledgements and promises in
subparagraph 2.01, during the Term and for a period of one year following termination by the
Executive of his employment with the Company other than for Good Reason, Executive shall not, on
behalf of himself or for others, directly or indirectly (whether as employee, consultant, investor,
partner, sole proprietor or otherwise), be employed by, perform any services for, or hold any
ownership interest in any business engaged in the Business of the Company in any state of the
United States where the Company is doing business. The Parties agree that this subparagraph 2.04
shall not prohibit the ownership by Executive, solely as an investment, of securities of a person
engaged in the Business of the Company if (i) Executive is not an “affiliate” (as such term is
defined in Rule 12b-2 of the regulations promulgated under the Securities Exchange Act of 1934, as
amended) of the issuer of such securities, (ii) such securities are publicly traded on a national
securities exchange and (iii) the Executive does not, directly or indirectly, beneficially own more
than two percent (2%) of the class of which such securities are a part.

     2.05 Non-Disparagement. 

          Executive agrees that, during the Term and thereafter, Executive will not intentionally make
any disparaging or detrimental public comments about the Company, any of its officers, directors,
employees, Affiliates or agents nor will Executive authorize, encourage or participate with anyone
on Executive’s behalf to make such statements. In consideration of the foregoing, the Company will
instruct its directors and senior officers not intentionally to make any disparaging or detrimental
public comments about Executive during the Term or thereafter. Nothing in this Section 2.05 shall
preclude either party from fulfilling any duty or obligation that he or it may have at law, from
responding to any subpoena or official inquiry from any court or government agency, including
providing truthful testimony, documents subpoenaed or requested or otherwise cooperating in good
faith with any proceeding or investigation, or, in the case of Executive, from taking any
reasonable actions to enforce his rights under this Agreement.

     2.06 Enforcement.

          Executive acknowledges and agrees that the services to be provided by him under this Agreement
are of a special, unique and extraordinary nature. Executive further acknowledges and agrees that
the restrictions contained in this Article Two are necessary to prevent the use and disclosure of
Confidential Information and to protect other legitimate business interests of the Company.
Executive acknowledges that all of the restrictions in this Article Two are reasonable in all
respects, including duration, territory and scope of activity. In the event a court of competent
jurisdiction determines as a matter of law that any of the terms of this Article Two are
unreasonable or overbroad, the Parties expressly allow such court to reform this Agreement to the
extent necessary to make it reasonable as a matter of law and to enforce it as so reformed. The
Executive agrees that the restrictions contained in this Article Two shall be construed as separate
agreements independent of any other provision of this Agreement or any other agreement between
Executive and the Company. Executive agrees that the existence of any claim or cause of action by
Executive against the Company (whether predicated on this Agreement or otherwise) shall not
constitute a defense to the enforcement by the Company of the covenants and restrictions in this
Article Two. Executive agrees that the restrictive covenants

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contained in this Article Two are a material part of Executive’s obligations under this
Agreement for which the Company has agreed to compensate Executive and provide him with
Confidential Information as provided in this Agreement. Executive agrees that the injury the
Company will suffer in the event of the breach by Executive of any clause of this Article Two will
cause the Company irreparable injury that cannot be adequately compensated by monetary damages
alone. Therefore, Executive agrees that the Company, without limiting any other legal or equitable
remedies available to it, shall be entitled to obtain equitable relief by injunction or otherwise
from any court of competent jurisdiction, including, without limitation, injunctive relief to
prevent Executive’s failure to comply with the terms and conditions of this Article Two. The
restricted periods referenced in Article Two shall be extended on a day-for-day basis for each day
during which Executive violates the provisions of any respective provision hereof in any material
respect, so that Executive is restricted from engaging in the activities prohibited by Article Two
for the full periods specified therein, as applicable.

     2.07 Intangible Property.

          Executive will not at any time during or after the Term have or claim any right, title or
interest in any trade name, trademark, patent, copyright, work for hire or other similar rights
belonging to or used by the Company and shall not have or claim any right, title or interest in any
material or matter of any sort prepared for or used in connection with the business or promotion of
the Company, whatever Executive’s involvement with such matters may have been, and whether
procured, produced, prepared, or published in whole or in part by Executive, it being the intention
of the Parties that Executive shall and hereby does recognize that the Company now has and shall
hereafter have and retain the sole and exclusive rights in any and all such trade names,
trademarks, patents, copyrights (all Executive’s work in this regard being a work for hire for the
Company under the copyright laws of the United States), material and matter as described above. If
any such work created by Executive is not a work made for hire under the copyright laws of the
United States, then Executive hereby assigns to the Company all right, title and interest in each
such work (including without limitation all copyright rights). Executive shall cooperate fully
with the Company, at the cost and expense of the Company, during his employment and thereafter in
the securing of trade name, trademark, patent or copyright protection or other similar rights in
the United States and in foreign countries and shall give evidence and testimony and execute and
deliver to the Company all papers reasonably requested by it in connection therewith.

     2.08 Good Reason.

     For purposes of this Agreement, “Good Reason” shall mean, in the absence of the written
consent of Executive:

     (i) the failure to appoint (or reappoint) Executive to the position of
President and CEO of the Company or the failure to appoint Executive (or
subsequently to cause Executive to be reelected) as a member of the Board, and/or to
the positions of president, chief executive officer and director of each of the
Material Subsidiaries, or the removal of Executive from any such position;

     (ii) the assignment to Executive of duties materially inconsistent with the
Executive’s titles, positions, status, reporting relationships, authority, duties or
responsibilities as contemplated by Section 1.04, or any other action by the

11

 

Company which results in a diminution in the Executive’s titles, positions,
status, reporting relationships, authority, duties or responsibilities from his most
senior titles, positions, status, reporting relationships, authority, duties or
responsibilities existing during the Term, other than insubstantial or inadvertent
actions not taken in bad faith which are remedied by the Company promptly after
receipt of notice thereof given by Executive;

     (iii) any failure by the Company to make the payments and/or provide the
benefits to Executive contemplated in, or any other failure to comply with any of
the provisions of, Sections 1.05, 1.06 or 1.07 (whether or not the reason for any
such failure is based on the TARP Requirements or other applicable law), other than
insubstantial or inadvertent failures not in bad faith which are remedied by the
Company promptly after receipt of notice thereof given by Executive;

     (iv) any failure by the Company to comply with and satisfy Section 3.02;

     (v) any material failure by the Company to comply with any other material
provision of this Agreement (including Exhibit A).

Anything notwithstanding to the contrary, Executive may only terminate his employment for “Good
Reason” upon 30 days’ written notice to the Company given within 60 days after Executive has
knowledge of the occurrence of the event or events giving rise to Good Reason (provided the Company
does not remedy or otherwise cure the event or events giving rise to Good Reason prior to the
expiration of such 30-day notice period).

     2.09 Survival. 

          Any termination of the Executive’s employment or of this Agreement (or breach of this
Agreement by the Executive or the Company) shall have no effect on the continuing operation of this
Article Two.

ARTICLE THREE

MISCELLANEOUS

     3.01 Entire Agreement.

          This Agreement constitutes the entire agreement and understanding between the Parties hereto
concerning the subject matter hereof. No modification, amendment, termination or waiver of this
Agreement shall be binding unless in writing and signed by Executive and duly authorized officer(s)
of the Company. Failure of the Company or Executive to insist upon strict compliance with any of
the terms, covenants or conditions hereof shall not be deemed a continuing waiver of such or other
terms, covenants and conditions.

     3.02 Successors and Assigns. 

          This Agreement shall be binding upon and inure to the benefit of Executive and the heirs,
executors, assigns and administrators of Executive or his estate and property and shall be binding
upon and inure to the benefit of the Company and its successors and assigns (as

12

 

provided below). Executive may not assign or transfer to others the obligation to perform
Executive’s duties hereunder, and there are no third party beneficiaries to Executive’s rights
hereunder. The Company may assign or transfer its rights and obligations under this Agreement.
The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid.

     3.03 Indemnification and Directors and Officers Liability Insurance.

(a) To the extent permitted by applicable law and the Corporate Documents, the Company
hereby agrees to indemnify Executive from and against all loss, costs, damages and expenses
including, without limitation, legal expenses of counsel (which expenses the Company will,
to the extent so permitted, advance to Executive as the same are incurred) arising out of or
in connection with the fact that Executive is or was an officer, employee or agent of the
Company and/or its Affiliates. However, the Executive shall repay any expenses paid or
reimbursed by the Company if it is ultimately determined that he is not legally entitled to
be indemnified by the Company. If the Company’s ability to make any payment contemplated by
this Section 3.03 depends on an investigation or determination by the Board, at the
Executive’s request the Company will use its best efforts to cause the investigation to be
made (at the Company’s expense) and to have the Board reach a determination as soon as
reasonably possible.

(b) A directors’ and officers’ liability insurance policy (or policies) shall be kept in
place, during the Term and thereafter until the later of (i) the sixth anniversary of the
date on which Executive’s employment with the Company terminates and (ii) the date on which
all claims against Executive that would otherwise be covered by the policy (or policies)
would become fully time barred, providing coverage to Executive that is no less favorable to
him in any respect (including, without limitation, with respect to scope, exclusions,
amounts and deductibles) than the coverage then being provided to any other present or
former senior executive or director of the Company.

     3.04 Insurance.

          If the Company desires at any time or from time to time during the Term to apply in its own
name or otherwise for life, health, accident or other insurance covering Executive, the Company may
do so and may take out such insurance for any sum which the Company may deem necessary to protect
its interests. Executive will have no right, title or interest in or to such insurance, but will,
nevertheless, assist the Company in procuring and maintaining the same by submitting from time to
time to the usual customary medical, physical, and other examinations and by signing such
applications, statements and other instruments as may reasonably be required by the insurance
company or companies issuing such policies.

13

 

     3.05 Notices.

          Notices hereunder shall be deemed delivered upon the confirmation of delivery of a facsimile
or of actual receipt by the addressee and shall be sent as follows (or if receipt is acknowledged
by the recipient, by email):

If to Executive:

Joseph P. Campanelli

Telephone: 

Email:

and if to the Company:

Flagstar Bancorp, Inc.

5151 Corporate Drive

Troy, Michigan 48098

Telephone: (248) 312-5070

Facsimile: (866) 748-6978

Email: Matt.Roslin@flagstar.com

Attention: Matthew I. Roslin

with a copy to:

Sullivan & Cromwell LLP

125 Broad Street

New York, NY 10004

Telephone: (212) 558-4000

Facsimile: (212) 291-9157

Email: trevinom@sullcrom.com

Attention: Marc R. Trevino

or to such other address and/or person designated by a Party in writing and in the same manner to
the other Party. Any written notice required to be provided by or to Executive under this
Agreement may be provided by or to such representative or representatives as Executive may
designate by written notice to the Company.

     3.06 Offset/Breach.

          The Company’s obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any setoff, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the Executive or others.
Executive’s termination of his employment hereunder, with or without Good Reason, shall not be a
breach of this Agreement. Performance of Executive’s obligations hereunder shall not be affected
by any setoff, counterclaim, recoupment, defense or other claim, right or action which Executive
may have against the Company or others. The

14

 

Company’s termination of Executive’s employment hereunder, with or without Cause, shall not be
a breach of this Agreement.

     3.07 Counterparts.

          This Agreement may be signed in counterparts, each of which shall be deemed an original and
all of which taken together shall constitute one and the same agreement, and delivered by facsimile
or other electronic transmission confirmed promptly thereafter by actual delivery of executed
counterparts.

     3.08 Applicable Law.

          This Agreement and all rights and liabilities of the Parties shall be governed by and
interpreted in accordance with the laws of the State of New York, excluding any choice of law rules
which would refer the matter to the laws of another jurisdiction.

     3.09 Headings.

          The captions and headings contained in this Agreement are for convenience only and shall not
be construed as a part of the Agreement.

     3.10 Severability.

          To the extent any provision of this Agreement or portion hereof shall be invalid or
unenforceable, it shall be considered deleted herefrom and the remainder of such provision and of
this Agreement shall be unaffected and shall continue in full force and effect and the Parties
agree to meet promptly to negotiate in good faith a substitute enforceable provision which
preserves to the greatest extent possible the benefits (economic and other) intended to be
conferred on the Parties under this Agreement.

     3.11 Representations, Warranties and Covenants. 

          The Company represents and warrants that (i) the execution and performance of this Agreement,
including the employment of Executive as President and CEO of the Company and the appointment of
the Executive to the Board, have been duly authorized by all necessary action of the Company and/or
the Board and (ii) that the information relating to the Company as set forth in the Agreement is
true and correct.

     3.12
Golden Parachute Payment.

          If any payment or benefit to the Executive under this Agreement or otherwise would be a Golden
Parachute Payment that is prohibited by applicable law, then the total payments and benefits will
be reduced to the Golden Parachute Limit. For purposes of this Section 3.12, “Golden Parachute
Payment” means a golden parachute payment within the meaning of Section 18(k) of the Federal
Deposit Insurance Act and “Golden Parachute Limit” means the greatest amount of payments and
benefits that could be made to the Executive without having any payment or benefit be a Golden
Parachute Payment.

15

 

ARTICLE FOUR

TAXATION AND TARP

     4.01 Taxation.

          The Parties believe that the provisions of this Agreement are in compliance with the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), as
presently in effect, if and to the extent that such requirements apply. In the event that any of
the payment obligations hereunder will be considered by the Internal Revenue Service to be not in
compliance with the requirements of Section 409A, the Parties will cooperate in good faith to
endeavor to meet these requirements in a manner which preserves to the greatest extent possible the
economic benefits intended to be conferred on the Executive under this Agreement. Notwithstanding
any provision of this Agreement to the contrary, only to the extent that any payment or benefit
paid or provided to the Executive under this Agreement or otherwise (including, but not limited to,
the Supplemental Retirement Benefit) is subject to the requirements of Section 409A and is not
exempted from such requirements, if at the time of Executive’s termination of employment with the
Company, he is a “specified employee” as defined in Section 409A, no payment or benefit that
results from his termination of employment shall be provided until the date which is six months
after the date of his termination of employment (or, if earlier, his date of death). Payments to
which Executive would otherwise be entitled during the six-month period described above shall be
accumulated and paid in a lump sum on the first day of the seventh month after the date of his
termination of employment. Notwithstanding anything to the contrary, to the extent required by
Section 409A: (a) the amount of expenses eligible for reimbursement or to be provided as an
in-kind benefit under this Agreement during a calendar year may not affect the expenses eligible
for reimbursement or to be provided as an in-kind benefit in any other calendar year; (b) the right
to reimbursement or in-kind benefits under this Agreement shall not be subject to liquidation or
exchange for another benefit; and (c) no reimbursement under this Agreement shall be made later
than the last day of the calendar year following the calendar year in which the expense was
incurred. The Parties acknowledge and agree all payments under this Agreement are subject to
withholding under applicable law and payments hereunder will be made net of withholding, if any.

     4.02 TARP and Other Applicable Law

          The Parties believe that the provisions of this Agreement are in compliance with the TARP
Requirements and other applicable law, as presently in effect, if and to the extent that such
requirements apply. For so long as the Company is subject to the TARP Requirements, the provisions
of this Agreement are subject to and shall be, to the fullest extent possible, interpreted to be
consistent with the TARP Requirements, which terms control over the terms of this Agreement in the
event of any conflict between the TARP Requirements and this Agreement. Notwithstanding anything
in this Agreement to the contrary, in no event shall any payment, award or benefit under this
Agreement vest or be settled, paid or accrued, if any such vesting, settlement, payment or accrual
would be in violation of the TARP Requirements or other applicable law. In the event of any such
violation, the Parties will cooperate in good faith to endeavor to meet the TARP Requirements and
other applicable law in a manner which preserves to the greatest extent possible the intent and
purposes of this Agreement.

16

 

*     *     *

          IN WITNESS WHEREOF, the Parties have executed this Agreement on the dates set forth below
opposite their names, effective as of the date first set forth above.

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	Dated:  September 29, 2009 	/s/ Joseph P. Campanelli
 	 
	 	Joseph P. Campanelli 	 
	 	 	 
	 
	 	FLAGSTAR BANCORP, INC.:

 	 
	Dated:  September 29, 2009 	By:  	/s/ Thomas J. Hammond
 	 
	 	 	Name:  	Thomas J. Hammond 	 
	 	 	Title:  	Chairman 	 
	 

17

 

PURCHASE AGREEMENT

     THIS PURCHASE AGREEMENT (this “Agreement”) is effective as of the 29th day
of September, 2009, by and between Flagstar Bancorp, Inc. (the “Company”), a corporation
organized under the laws of the State of Michigan, with its principal offices at 5151 Corporate
Drive, Troy, Michigan 48098-2639 and Joseph P. Campanelli (the “Purchaser”).

     WHEREAS, subject to the terms and conditions of this Agreement the Company desires to sell to
the Purchaser, and the Purchaser desires to purchase from the Company an aggregate of 1,987,500
shares (the “Shares”) of the Company’s common stock, par value $0.01 per share (the
“Common Stock”) on such dates and in such separate amounts as are set forth in Schedule I
to this Agreement (each such sale, a “Tranche”) and at a price per share equal to the
closing sale price per share of the Company’s Common Stock on the New York Stock Exchange on
September 28, 2009, (such per share price the “Per Share Price” and such aggregate amount
the “Tranche Purchase Price”).

     IN CONSIDERATION of the mutual covenants contained in this Agreement, the Company and the
Purchaser agree as follows:

     SECTION
1. Agreement to Sell and Purchase the Shares. The Company will, subject to the terms and
conditions of this Agreement, issue and sell to the Purchaser, and the Purchaser will buy from the
Company, Common Stock at the Per Share Price, on or about such dates and in such amounts, as set
forth in Schedule I to this Agreement.

     SECTION
2. Delivery of the Shares at the Closings.

     2.1 The completion of the purchase and sale of each Tranche (each a “Closing”, and
such date the “Closing Date”) shall occur at the offices of the Company or on such other
date or location as agreed by the parties.

     2.2 At each Closing, the Purchaser shall deliver, in immediately available funds, the full
amount of the Tranche Purchase Price to an account designated by the Company and the Company shall
deliver to the Purchaser the Shares purchased in the Tranche evidenced by one or more share
certificates bearing an appropriate legend referring to the fact that Common Stock were sold in
reliance upon the exemption from registration under the Securities Act of 1933, as amended (the
“Securities Act”), provided by Section 4(2) thereof and Rule 506 thereunder, as further
described in Section 3.5 of this Agreement.

     SECTION
3.  Representations, Warranties and Covenants of the Purchaser. The Purchaser represents
and warrants to, and covenants with, the Company that:

     3.1
Experience. (i) The Purchaser is knowledgeable, sophisticated and experienced in
financial and business matters, in making, and is qualified to make, decisions with respect to
investments in shares representing an investment decision like that involved in the purchase of the
Shares, including investments in securities issued by the Company and comparable entities, has the
ability to bear the economic risks of an investment in the Shares and has reviewed carefully the
information provided by the Company to the Purchaser in connection with this

 

 

Agreement and the purchase of the Shares hereunder, and has requested, received, reviewed and
considered all information he deems relevant in making an informed decision to purchase the
Shares; (ii) the Purchaser is acquiring the Shares for his own account for investment only and with
no present intention of distributing any of the Shares or any arrangement or understanding with any
other persons regarding the distribution of such Shares (this representation and warranty not
limiting the Purchaser’s right to sell pursuant to a registration statement or in compliance with
the Securities Act and the rules and regulations promulgated thereunder (the “Rules and
Regulations”)); (iii) the Purchaser will not, directly or indirectly, offer, sell, pledge,
transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or
take a pledge of) any of the Shares, nor will the Purchaser engage in any short sale that results
in a disposition of any of the Shares by the Purchaser, except in compliance with the Securities
Act and the Rules and Regulations and any applicable state securities laws, and (iv) the Purchaser
is an “accredited investor” within the meaning of Rule 501(a) of Regulation D promulgated under the
Securities Act.

     3.2
Reliance on Exemptions. The Purchaser understands that the Shares are being offered
and sold to him in reliance upon specific exemptions from the registration requirements of the
Securities Act, the Rules and Regulations and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in
order to determine the availability of such exemptions and the eligibility of the Purchaser to
acquire the Shares.

     3.3
Investment Decision. The Purchaser understands that nothing in the Agreement or any
other materials presented to the Purchaser in connection with the purchase and sale of the Shares,
constitutes legal, tax or investment advice. The Purchaser has consulted such legal, tax and
investment advisors as he, in his sole discretion, has deemed necessary or appropriate in
connection with his purchase of the Shares.

     3.4
Risk of Loss. The Purchaser understands that his investment in the Shares involves a
significant degree of risk, including a risk of total loss of the Purchaser’s investment, and the
Purchaser has full cognizance of and understands all of the risk factors related to the Purchaser’s
purchase of the Shares. The Purchaser understands that the market price of the Common Stock has
been volatile, and that no representation is being made as to the future value of the Shares.

     3.5
Legend. The Purchaser understands that, until such time as a registration statement
has been declared effective or the Shares may be sold pursuant to Rule 144 under the Securities Act
without any restriction as to the number of securities as of a particular date that can then be
immediately sold, the Shares will bear a restrictive legend in substantially the following form:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT
RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR

2

 

PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.”

     3.6
Transfer Restrictions. Consistent with the legend set forth above, the Shares may
only be disposed of in compliance with state and federal securities laws. In connection with any
transfer of Shares other than pursuant to a registration statement, the Company may require the
transferor to provide to the Company an opinion of counsel selected by the transferor and
reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably
satisfactory to the Company, to the effect that such transfer does not require registration of the
transferred Shares under the Securities Act. As a condition of such transfer (unless effected
pursuant to a registration statement or under Rule 144), any such transferee shall agree in
writing to be bound by the terms of this Agreement and shall have the rights of the Purchaser under
this Agreement. The certificates representing the Shares may be subject to a stop transfer order
for the purpose of enforcing the foregoing provisions, and the Company will instruct the transfer
agent to transfer Shares to a transferee if the foregoing provisions are complied with and if, in
the case of a transfer pursuant to a registration statement, the transferor causes the related
Prospectus to be delivered to the transferee. At such time as the Shares are no longer required to
bear a restrictive legend, the Company agrees that it will, no later than three business days after
delivery by the Purchaser to the Company or its transfer agent of a certificate (in the case of a
transfer, in the proper form for transfer) representing Shares issued with the foregoing
restrictive legend, deliver or cause to be delivered to the Purchaser a certificate representing
such Shares that is free from all restrictive and other legends. The Company shall not make any
notation on its records or give instructions to its transfer agent that enlarge the restrictions on
transfer set forth in this Section.

     SECTION 4. Representations, Warranties and Covenants of the Company. The Company represents and
warrants to, and covenants with, the Purchaser that:

     4.1
Organization and Standing.  The Company has been duly incorporated and is an existing
corporation in good standing under the laws of the State of Michigan.

     4.2
Execution and Delivery; Enforceability. The execution, delivery and performance of
this Agreement by the Company and the consummation of the transactions contemplated hereby have
been duly authorized by the Board of Directors of the Company. This Agreement has been duly and
validly executed and delivered by the Company and, assuming due authorization, execution and
delivery by Purchaser, is a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms (except as enforcement may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws of general
applicability relating to or affecting creditors’ rights or by general equity principles). No
other corporate proceedings are necessary for the execution and delivery by the Company of this
Agreement, the performance by it of its obligations hereunder or the consummation by it of the
transactions contemplated hereby.

     4.3
Due Authorization. The Shares have been duly authorized and, when issued and delivered
against receipt of consideration therefor as provided in this Agreement, will be validly issued,
fully paid and non-assessable, will not be issued in violation of or subject to preemptive rights
of

3

 

any other stockholder of the Company and will not result in the violation or triggering of any
price-based antidilution adjustments under any agreement to which the Company is a party.

     4.4
Governmental Consents. No consent, approval, authorization or other order of any
court, regulatory body, administrative agency or other governmental agency or body is required for
the execution and delivery of this Agreement or the consummation of the transactions contemplated
by this Agreement, except for compliance with the Blue Sky laws and federal securities laws
applicable to the offering of the Shares and such consents, approvals, authorizations or other
orders as have been obtained and are in full force and effect.

     4.5
No Conflicts. Neither the execution and delivery by the Company of this Agreement, nor
the consummation of the transactions contemplated hereby, nor compliance by the Company with any of
the provisions hereof will (A) violate, conflict with, or result in a breach of any provision of,
or constitute a default (or an event which, with notice or lapse of time or both, would constitute
a default) under, or result in the termination of, or result in the loss of any benefit or creation
of any right on the part of any third party under, or accelerate the performance required by, or
result in a right of termination or acceleration of, or result in the creation of any liens,
charges, adverse rights or claims, pledges, covenants, title defects, security interests and other
encumbrances of any kind upon any of the material properties or assets of the Company or any
subsidiary under any of the terms, conditions or provisions of any note, bond, mortgage, indenture,
deed of trust, license, lease, agreement or other instrument or obligation to which the Company or
any subsidiary is a party or by which it may be bound, or to which the Company or any subsidiary or
any of the properties or assets of the Company or any subsidiary may be subject, or (B) violate any
law, statute, ordinance, rule, regulation, permit, concession, grant, franchise or any judgment,
ruling, order, writ, injunction or decree applicable to the Company or any subsidiary or any of
their respective properties or assets.

     SECTION 5. Notices. All notices, requests, consents and other communications hereunder shall be
in writing, shall be mailed by first-class registered or certified airmail, e-mail, confirmed
facsimile or nationally recognized overnight express courier postage prepaid, and shall be deemed
given when so mailed and shall be delivered as addressed as follows:

4

 

          if to the Company, to:

Flagstar Bancorp, Inc.

5151 Corporate Drive,

Troy, Michigan 48098-2639

Attention: Mr. Paul Borja

Facsimile: (248) 312-6833

E-mail: paul.borja@flagstar.com

with a copy to:

Kutak Rock LLP

1101 Connecticut Avenue, N.W.

Suite 1000

Washington, DC 20036-4374

Attention: Jeremy Johnson, Esq.

Facsimile: (202) 828-2488

E-mail: jeremy.johnson@KutakRock.com

or to such other person at such other place as the Company shall designate to the Purchaser in
writing; and

          if to a Purchaser, to:

Joseph P. Campanelli

Telephone: 

Email:

or at such other address or addresses as may have been furnished to the Company in writing.

     SECTION 6. Changes. This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and the Purchaser. Any amendment or waiver effected in
accordance with this Section 6 shall be binding upon the Purchaser and the Company.

     SECTION 7. Headings. The headings of the various sections of this Agreement have been inserted
for convenience of reference only and shall not be deemed to be part of this Agreement.

     SECTION 8. Severability. In case any provision contained in this Agreement should be invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired thereby.

     SECTION 9. Governing Law; Venue. This Agreement is to be construed in accordance with and
governed by the federal law of the United States of America and the internal laws of the State of
New York without giving effect to any choice of law rule that would cause the application of the

5

 

laws of any jurisdiction other than the internal laws of the State of New York to the rights
and duties of the parties, except that the parties hereto intend that the provisions of Sections
5-1401 and 5-1402 of the New York general obligations law shall apply to this Agreement. Each of
the Company and the Purchaser submits to the nonexclusive jurisdiction of the United States
District Court for the Southern District of New York and of any New York State court sitting in New
York City for purposes of all legal proceedings arising out of or relating to this Agreement and
the transactions contemplated hereby. Each of the Company and the Purchaser irrevocably waives, to
the fullest extent permitted by law, any objection that it may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.

     SECTION 10. Counterparts; Facsimile. This Agreement may be executed in counterparts, each of
which shall constitute an original, but all of which, when taken together, shall constitute but one
instrument, and shall become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties. Facsimile signatures shall be deemed original
signatures.

     SECTION 11. Entire Agreement. This Agreement and the instruments referenced herein contain the
entire understanding of the parties with respect to the matters covered herein and therein and,
except as specifically set forth herein or therein, neither the Company nor the Purchaser makes any
representation, warranty, covenant or undertaking with respect to such matters. Each party
expressly represents and warrants that it is not relying on any oral or written representations,
warranties, covenants or agreements outside of this Agreement.

     SECTION 12. Further Assurances. Each party agrees to cooperate fully with the other parties and
to execute such further instruments, documents and agreements and to give such further written
assurance as may be reasonably requested by any other party to evidence and reflect the
transactions described herein and contemplated hereby and to carry into effect the intents and
purposes of this Agreement.

[Remainder of Page Left Intentionally Blank]

6

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized representative and the Purchaser has executed this Agreement, in each case as of the day
and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	FLAGSTAR BANCORP, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Thomas J. Hammond	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Thomas J. Hammond	 	 
	 

	 	 	 	Title:
	 	Chairman	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PURCHASER	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ Joseph P. Campanelli	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Printed Name: Joseph P. Campanelli	 	 

7

 

Schedule I: Share Purchase Timetable

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of shares of	 	 	 	 
	 	 	 	 	Common Stock to be	 	 	 	 
	 	 	 	 	purchased by the	 	Per Share	 	Tranche
	Tranche	 	Closing Date	 	Purchaser	 	Price	 	Purchase Price
	1.	 	September 29, 2009
	 	 	375,000	 	 	$	1.05	 	 	$	393,750.00	 
	2.	 	December 31, 2009
	 	 	150,000	 	 	$	1.05	 	 	$	157,500.00	 
	3.	 	June 30, 2010
	 	 	243,750	 	 	$	1.05	 	 	$	255,937.50	 
	4.	 	December 31, 2010
	 	 	243,750	 	 	$	1.05	 	 	$	255,937.50	 
	5.	 	June 30, 2011
	 	 	243,750	 	 	$	1.05	 	 	$	255,937.50	 
	6.	 	December 31, 2011
	 	 	243,750	 	 	$	1.05	 	 	$	255,937.50	 
	7.	 	June 30, 2012
	 	 	243,750	 	 	$	1.05	 	 	$	255,937.50	 
	8.	 	December 31, 2012
	 	 	243,750	 	 	$	1.05	 	 	$	255,937.50	 

8ex10_1.htm

Exhibit 10.1

 

EXECUTION VERSION

 

Amendment No. 6 to Receivables Purchase Agreement

 

AMENDMENT AGREEMENT (this “Amendment”) dated as of October 2, 2009 among Lexmark Receivables Corporation (the “Seller”), Gotham Funding Corporation (“Gotham”),
The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch (“BTM”) (formerly known as The Bank of Tokyo-Mitsubishi Ltd., New York Branch), as Program Agent, an Investor Agent and a Bank, and Lexmark International, Inc. (“Lexmark”), as Collection Agent and Originator.

 

Preliminary Statements.

 

(1)  The Seller, Gotham, BTM and Lexmark are parties to an Amended and Restated Receivables Purchase Agreement dated as of October 8, 2004 (as amended, restated, modified or supplemented from time to time, the “Agreement”; capitalized terms not otherwise
defined herein shall have the meanings attributed to them in the Agreement) pursuant to which, and subject to and upon the terms and conditions of which, the Seller has sold and may in the future sell Receivable Interests to the Investors and/or the Banks thereunder prior to the occurrence of the Facility Termination Date or the Commitment Termination Date, as applicable.

 

(2)  Each of Gotham and BTM desire that  the Facility Termination Date under the Agreement with respect to Gotham (in its capacity as an Investor), and the Commitment Termination Date under the Agreement with respect to BTM (in its capacity as a Bank), each be extended until October 1, 2010, and to make certain other amendments
to the Agreement and certain documents related thereto.

 

NOW, THEREFORE, the parties agree as follows:

 

SECTION 1.  Amendments.  Upon the effectiveness of this Amendment, the Agreement is hereby amended as follows:

 

1.1  The definition of “Applicable Margin” in Section 1.01 is amended by deleting the reference to “1.50%” in clause (2) thereof and inserting in lieu thereof “2.50%”.

 

1.2  The definition of “Commitment Termination Date” in Section 1.01 is amended by replacing the date appearing in clause (a) thereof with the date “October 1, 2010”.

 

1.3  The definition of “Facility Termination Date” in Section 1.01 is amended by replacing the date in clause (a) thereof with the date “October 1, 2010”.

 

1.4   Section 4.01(e) is deleted in its entirety and replaced as follows:

 

(e)  The balance sheets of the Originator and its Subsidiaries as at December 31, 2008, and the related statements of income and retained earnings of the Originator and its Subsidiaries for the fiscal year then ended, copies of which have been furnished to the Program Agent and each Investor Agent, and the balance sheets of the Originator
and its Subsidiaries as at March 31, 2009, copies of which have been furnished to the Program Agent, in each case, fairly present the financial condition of the Originator and its Subsidiaries as at such date and the results of the operations of the Originator and its Subsidiaries for the period ended on such date, all in 

 

 

 

 

accordance with GAAP consistently applied, and since March 31, 2009 there has been no material adverse change in the business, operations, property or financial or other condition of the Originator. The balance sheet of the Seller as at December 31, 2008 and as at March 31, 2009, a copy of each of which has been furnished to the Program Agent and each Investor Agent, fairly presents
the financial condition of the Seller as at such date, in accordance with GAAP, and since March 31, 2009 there has been no material adverse change in the business, operations, property or financial or other condition of the Seller.

 

1.5  Section 4.02(e) is deleted in its entirety and replaced as follows:

 

(e)  The balance sheets of the Collection Agent and its Subsidiaries as at December 31, 2008, and the related statements of income and retained earnings of the Collection Agent and its Subsidiaries for the fiscal year then ended, copies of which have been furnished to the Program Agent and each Investor Agent, and the balance sheets
of the Collection Agent and its Subsidiaries as at March 31, 2009, copies of which have been furnished to the Program Agent, in each case, fairly present the financial condition of the Collection Agent and its Subsidiaries as at such date and the results of the operations of the Collection Agent and its Subsidiaries for the period ended on such date, all in accordance with GAAP consistently applied, and since March 31, 2009 there has been no material adverse change in the business, operations, property or financial
or other condition of the Collection Agent. The balance sheet of the Seller as at December 31, 2008 and as at March 31, 2009, a copy of each of which has been furnished to the Program Agent and each Investor Agent, fairly presents the financial condition of the Seller as at such date, in accordance with GAAP, and since March 31, 2009 there has been no material adverse change in the business, operations, property or financial or other condition of the Seller.

 

SECTION 2.  Effectiveness.  This Amendment shall become effective  at such time that (i) executed counterparts of this Amendment have been delivered by each party hereto to each other party hereto, (ii) the Program Agent shall have received duly executed
copies of an amendment to the Fee Agreement in form and substance satisfactory to the Program Agent and dated as of the date hereof (the “Fee Agreement Amendment”), and (iii) the Program Agent shall have received payment of the Upfront Fee (as defined in the Fee Agreement Amendment).

 

SECTION 3.  Representations and Warranties.  The Seller makes each of the representations and warranties contained in Section  4.01 of the Agreement (after giving effect to this Amendment).

 

SECTION 4.  Confirmation of Agreement.  Each reference in the Agreement to “this Agreement” or “the Agreement” shall mean the Agreement as amended by this Amendment, and as hereafter amended or restated.  Except as herein expressly
amended, the Agreement is ratified and confirmed in all respects and shall remain in full force and effect in accordance with its terms.

SECTION 5.   GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT
OF LAWS PRINCIPLES THEREOF).

 

SECTION 6.  Execution in Counterparts.  This Amendment  may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when
taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Amendment by 

 

 

 

 

 

 

facsimile or by electronic mail in portable document format (.pdf)  shall be effective as delivery of a manually executed counterpart of this Amendment.

[Remainder of page intentionally blank]

  

  

  

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

 

LEXMARK RECEIVABLES CORPORATION

 

By:    /s/ Bruce J. Frost                                                                           

Title: Treasurer

 

LEXMARK INTERNATIONAL, INC.

 

By:    /s/ Bruce J. Frost                                                                           

Title: Treasurer

 

  

  

  

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH,

as Program Agent

 

	
  
	
By:
	
/s/ Aditya Reddy
	 

Title: Vice President & Manager

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH,

as an Investor Agent and a Bank

 

	
  
	
By:
	
/s/ Kenneth K. Egusa
	 

Title: Authorized Signatory

 

 

GOTHAM FUNDING CORPORATION

 

	 	
By:
	
/s/ Frank B. Bilotta
	 

Title: President

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