Document:

Exhibit

Exhibit 10.33

RESTRICTIVE COVENANT AND CONFIDENTIALITY AGREEMENT

In exchange for the mutual promises and consideration set forth below, this Restrictive Covenant and Confidentiality Agreement (“Agreement”) is entered into by and between the Federal Home Loan               Mortgage Corporation (“Freddie Mac” or “Company”) and Michael Hutchins (“Executive” or “you”),          effective on the date the Executive assigns a personal signature to page 5 of this Agreement.

I.    Definitions

The following terms shall have the meanings indicated when used in this Agreement.

A.    Competitor:  The following entities, and their respective parents, successors, subsidiaries, and          affiliates are competitors:  (i) Fannie Mae (ii) all Federal Home Loan Banks (including the Office of            Finance); and (iii) such other entities to which Executive and the Company may agree in writing from                time-to-time.

B.    Confidential Information:  Information or materials in written, oral, magnetic, digital, computer, photographic, optical, electronic, or other form, whether now existing or developed or created during the         period of Executive’s employment with Freddie Mac, that constitutes trade secrets and/or proprietary or  confidential information.  This information includes, but is not limited to:  (i) all information marked        Proprietary or Confidential; (ii) information concerning the components, capabilities, and attributes of           Freddie Mac’s business plans, methods, and strategies; (iii) information relating to tactics, plans, or             strategies concerning shareholders, investors, pricing, investment, marketing, sales, trading, funding,            hedging, modeling, sales and risk management; (iv) financial or tax information and analyses, including                but not limited to, information concerning Freddie Mac’s capital structure and tax or financial planning;                (v) confidential information about Freddie Mac’s customers, borrowers, employees, or others; (vi)                   pricing and quoting information, policies, procedures, and practices; (vii) confidential customer lists;                  (viii) proprietary algorithms; (ix) confidential contract terms; (x) confidential information concerning             Freddie Mac’s policies, procedures, and practices or the way in which Freddie Mac does business; (xi)     proprietary or confidential data bases, including their structure and content; (xii) proprietary Freddie Mac     business software, including its design, specifications and documentation; (xiii) information about                  Freddie Mac products, programs, and services which has not yet been made public; (xiv) confidential      information about Freddie Mac’s dealings with third parties, including dealers, customers, vendors, and    regulators; and/or (xv) confidential information belonging to third parties to which Executive received             access in connection with Executive’s employment with Freddie Mac.  Confidential Information does not       include general skills, experience, or knowledge acquired in connection with Executive’s employment                 with Freddie Mac that otherwise are generally known to the public or within the industry or trade in                  which Freddie Mac operates.

II.    Non-Competition

Executive recognizes that as a result of Executive’s employment with Freddie Mac, Executive has access                to and knowledge of critically sensitive Confidential Information, the improper disclosure or use of                  which would result in grave competitive harm to Freddie Mac.  Therefore, Executive agrees that neither          during Executive’s employment with Freddie Mac, nor for the twelve (12) months immediately following termination of Executive’s employment for any reason, will Executive consider offers of employment                from, seek or accept employment with, or otherwise directly or indirectly provide professional services to            any Competitor, if the Executive will be rendering duties, responsibilities or services for the Competitor 

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that are of the type and nature rendered or performed by you during the past two years of your   employment with Freddie Mac.  Executive acknowledges and agrees that this covenant has unique, substantial and immeasurable value to Freddie Mac, that Executive has sufficient skills to provide a livelihood for Executive while this covenant remains in force, and that this covenant will not interfere    with Executive’s ability to work consistent with Executive’s experience, training and education.  This    non-competition covenant applies regardless of whether Executive’s employment is terminated by Executive, by Freddie Mac, or by a joint decision. 

If Executive is a licensed lawyer, this non-competition covenant shall be interpreted in a manner    consistent with any rule applicable to a licensed legal professional in the jurisdiction(s) of the      Executive’s licensure or registration that concerns the Executive’s employment as counsel with, or provision of legal services to, a Competitor.

III.    Non-Solicitation and Non-Recruitment

During Executive’s employment with Freddie Mac and for a period of twelve (12) months after   Executive’s termination date, Executive will not solicit or recruit, attempt to solicit or recruit or assist another in soliciting or recruiting any Freddie Mac managerial employee (including manager-level, Executive-level, or officer-level employee) with whom Executive worked, or any employee whom Executive directly or indirectly supervised at Freddie Mac, to leave the employee’s employment with Freddie Mac for purposes of employment or for the rendering of professional services.  This prohibition against solicitation does not apply if Freddie Mac has notified the employee being solicited or recruited   that his/her employment with the Company will be terminated pursuant to a corporate reorganization or reduction-in-force.

If Employee is a licensed lawyer, this non-solicitation covenant shall be interpreted in a manner     consistent with any rule applicable to a licensed legal professional in the jurisdiction(s) of Employee’s licensure or registration.

IV.    Treatment of Confidential Information

A.    Non-Disclosure.  Executive recognizes that Freddie Mac is engaged in an extremely competitive business and that, in the course of performing Executive’s job duties, Executive will have access to and  gain knowledge about Confidential Information.  Executive further recognizes the importance of     carefully protecting this Confidential Information in order for Freddie Mac to compete successfully.  Therefore, Executive agrees that Executive will neither divulge Confidential Information to any persons, including to other Freddie Mac employees who do not have a Freddie Mac business-related need to     know, nor make use of the Confidential Information for the Executive’s own benefit or for the benefit of anyone else other than Freddie Mac.  Executive further agrees to take all reasonable precautions to    prevent the disclosure of Confidential Information to unauthorized persons or entities, and to comply     with all Company policies, procedures, and instructions regarding the treatment of such information.

B.    Return of Materials.  Executive agrees that upon termination of Executive’s employment with Freddie Mac for any reason whatsoever, Executive will deliver to Executive’s immediate supervisor all tangible materials embodying Confidential Information, including, but not limited to, any documentation, records, listings, notes, files, data, sketches, memoranda, models, accounts, reference materials, samples, machine-readable media, computer disks, tapes, and equipment which in any way relate to Confidential Information, whether developed by Executive or not.  Executive further agrees not to retain any copies of any materials embodying Confidential Information.

C.    Post-Termination Obligations.  Executive agrees that after the termination of Executive’s employment for any reason, Executive will not use in any way whatsoever, nor disclose any Confidential 

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Information learned or obtained in connection with Executive’s employment with Freddie Mac without  first obtaining the written permission of the Senior Vice President of Human Resources of Freddie Mac.  Executive further agrees that, in order to assure the continued confidentiality of the Confidential Information, Freddie Mac may correspond with Executive’s future employers to advise them generally of Executive’s exposure to and knowledge of Confidential Information, and Executive’s obligations and responsibilities regarding the Confidential Information.  Executive understands and agrees that any such contact may include a request for assurance and confirmation from such employer(s) that Executive will  not disclose Confidential Information to such employer(s), nor will such employer(s) permit any use whatsoever of the Confidential Information.  To enable Freddie Mac to monitor compliance with the obligations imposed by this Agreement, Executive further agrees to inform in writing Freddie Mac’s   Senior Vice President of Human Resources of the identity of Executive’s subsequent employer(s) and Executive’s prospective job title and responsibilities prior to beginning employment.  Executive agrees   that this notice requirement shall remain in effect for twelve (12) months following the termination of Executive’s Freddie Mac employment.

D.    Ability to Enforce Agreement and Assist Government Investigations.  Nothing in this Agreement prohibits or otherwise restricts you from:  (1) making any disclosure of information required by law; (2) assisting any regulatory or law enforcement agency or legislative body to the extent you maintain a legal right to do so notwithstanding this Agreement; (3) filing, testifying, participating in or otherwise assisting  in a proceeding relating to the alleged violation of any federal, state, or local law, regulation, or rule, to    the extent you maintain a legal right to do so notwithstanding this Agreement; or (4) filing, testifying, participating in or otherwise assisting the Securities and Exchange Commission or any other proper authority in a proceeding relating to allegations of fraud.

V.    Consideration Given to Executive

In exchange for agreeing to be bound by the terms, conditions, and restrictions stated in this Agreement, Freddie Mac will provide the Executive with employment as Senior Vice President-Investments and  Capital Markets, which itself is adequate consideration for Executive’s agreement to be bound by the provisions of this Agreement.

VI.    Reservation of Rights

Executive agrees that nothing in this Agreement constitutes a contract or commitment by Freddie Mac to continue Executive’s employment in any job position for any period of time, nor does anything in this Agreement limit in any way Freddie Mac’s right to terminate Executive’s employment at any time for     any reason.

VII.    Compliance with the Code of Conduct and Corporate Policies & Procedures, Including Personal Securities Investments Policy

As a Freddie Mac employee, Executive will be subject to Freddie Mac’s Code of Conduct (“Code”) and     to Corporate Policy 3-206, Personal Securities Investments Policy (“Policy”) that, among other things,  limit the investment activities of Freddie Mac employees. Executive agrees to fully comply with the     Code and the Policy, copies of which are enclosed for Executive’s review. 

Executive agrees to consult with Freddie Mac’s Chief Compliance Officer as soon as practical prior to beginning employment about any investments that Executive or a “covered household member,” as that term is defined in the Policy, may have that may be prohibited by the Policy. Executive also agrees to 

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disclose prior to beginning employment any other matter or situation that may create a conflict of interest  as such term is defined in the Code.  

In addition, prior to beginning employment, Executive agrees to disclose to Freddie Mac's Human Resources Division the terms of any employment, confidentiality or stock grant agreements to which Executive may currently be subject that may affect Executive’s future employment or recruiting activities  so that Freddie Mac may ensure that Executive’s employment by Freddie Mac and conduct as a Freddie Mac employee are not inconsistent with any of their terms. 

VIII.    Absence of Any Conflict of Interest

Executive represents that Executive does not have any confidential information, trade secrets or other proprietary information that Executive obtained as the result of Executive’s employment with another employer that Executive will be using in Executive’s position at Freddie Mac.  Executive also represents that Executive is not subject to any employment, confidentiality or stock grant agreements, or any other restrictions or limitations imposed by a prior employer, which would affect Executive’s ability to      perform the duties and responsibilities for Freddie Mac in the job position offered, and further represents that Executive has provided Freddie Mac with copies of any non-competition, non-solicitation or similar agreements or limitations that have not expired, so that Freddie Mac can make an independent judgment that Executive’s employment with Freddie Mac is not inconsistent with any of its terms.

IX.    Enforcement

A.Executive acknowledges that Executive may be subject to discipline, up to and including termination of employment, for Executive’s breach or threat of breach of any provision of this     Agreement.

B.Executive agrees that irreparable injury will result to Freddie Mac’s business interests in the event of breach or threatened breach of this Agreement, the full extent of Freddie Mac’s damages will be impossible to ascertain, and monetary damages will not be an adequate remedy for Freddie Mac. Therefore, Executive agrees that in the event of a breach or threat of breach of any provision(s) of this Agreement, Freddie Mac, in addition to any other relief available, shall be entitled to temporary, preliminary, and permanent equitable relief to restrain any such breach or threat of breach by Executive and all persons acting for and/or in concert with Executive, without the necessity of posting bond or security, which Executive expressly waives.

C.Executive agrees that each of Executive’s obligations specified in this Agreement is a separate and independent covenant, and that all of Executive’s obligations set forth herein shall survive any termination, for any reason, of Executive’s Freddie Mac employment.  To the extent that any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable because it is overbroad, that provision shall be limited and enforced to the extent permitted by applicable law.  Should any provision of this Agreement be declared or determined by any court of competent jurisdiction to be unenforceable or invalid under applicable law, the validity of the remaining obligations will not be affected thereby and only the unenforceable or invalid obligation will be deemed not to be a part of this Agreement.  

D.    This Agreement is governed by, and will be construed in accordance with, the laws of the Commonwealth of Virginia, without regard to its or any other jurisdiction’s conflict-of-law provisions.  Executive agrees that any action related to or arising out of this Agreement shall be brought exclusively in the United States District Court for the Eastern District of Virginia, and Executive hereby irrevocably 

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consents to personal jurisdiction and venue in such court and to service of process by United States Mail or express courier service in any such action.

E.    If any dispute(s) arise(s) between Freddie Mac and Executive with respect to any matter which is the subject of this Agreement, the prevailing party in such dispute(s) shall be entitled to recover from the other party all of its costs and expenses, including its reasonable attorneys’ fees.

Executive has been advised to discuss all aspects of this Agreement with Executive’s private attorney.   Executive acknowledges that Executive has carefully read and understands the terms and provisions of this Agreement and that they are reasonable.  Executive signs this Agreement voluntarily and accepts all obligations contained in this Agreement in exchange for the consideration to be given to Executive as outlined above, which Executive acknowledges is adequate and satisfactory, and which Executive further acknowledges Freddie Mac is not otherwise obligated to provide to Executive.  Neither Freddie Mac nor its agents, representatives, directors, officers or employees have made any representations to Executive concerning the terms or effects of this Agreement, other than those contained in this Agreement.

	
			
	By:
	/s/ Michael Hutchins                               
	Date: June 25, 2013                      

	 
	Michael HutchinsExhibit

Exhibit 10.10

MFA FINANCIAL, INC. 
FOURTH AMENDED AND RESTATED
2003 NONEMPLOYEE DIRECTORS’ DEFERRED COMPENSATION PLAN
(as amended and restated through December 15, 2014)
1.Purpose
The purpose of the Plan is to provide Nonemployee Directors of the Corporation with an opportunity to defer 100% or 50% of their Compensation or to defer Equity Awards while at the same time aligning their interests more closely with the interests of the stockholders of the Corporation.  This Plan was an amendment and complete restatement of the Amended and Restated 2003 Nonemployee Directors’ Deferred Compensation Plan and became effective as of November 1, 2012.  The Plan is hereby further amended as of December 15, 2014.
2.    Effective Date 
This Plan became effective on November 1, 2012 and is hereby amended as of the Amendment Effective Date.  Compensation and Equity Awards deferred under the Plan with respect to services performed on or before December 31, 2014 shall be governed by the terms of the Plan in effect for such Compensation and Equity Awards prior to the Amendment Effective Date.
3.    Definitions 
In this Plan, the following definitions shall apply:
“Administrator” - the person, persons or entity appointed by the Board from time to time to manage and administer the Plan.
“Amendment Effective Date” – December 15, 2014
“Annual Meeting” - annual meetings of stockholders of the Corporation at which directors of the Board are elected. 
“Board” - the Board of Directors of the Corporation.
“Code” - the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.
“Common Stock” - the Corporation’s common stock, $0.01 par value per share.
“Compensation” - the aggregate value of all annual cash compensation payable to a Nonemployee Director for service on the Board (exclusive of any reimbursable expenses relating to such Nonemployee Director’s service on the Board).
“Compensation Account” - the account maintained by the Corporation for Deferred Stock Units credited in accordance with Section 6 of the Plan.
“Corporation” - MFA Financial, Inc., a Maryland corporation, and its successors.
“Deferral Period” - the five-year period, if so elected, during which Compensation for a particular year is to be deferred.  At the conclusion of the Deferral Period, such deferred Compensation will be paid out in a lump sum or, if so elected, in a specified number of annual installments not to exceed five years.  If the deferred Compensation is paid out in annual installments, such installment payments shall be treated as a series of separate payments for purposes of Section 409A of the Code.  Except as otherwise provided in Section 8(a) of the Plan, payment(s) will commence, or be made in a lump sum, no earlier than January 15 of the year first following the five-year anniversary of the applicable election date.  For example, if during 2012 a Participant elects the Deferral Period (i.e., 5 years) for Compensation deferred in 2013, the payment(s) shall be made/commence on or after January 15, 2018.

“Deferred Stock Unit” - a credit to a Participant’s Compensation Account under Section 6(a) that represents the right to receive a cash payment equal to the Fair Market Value of one Share on settlement of the Compensation Account.
“Equity Account” - the account maintained by the Corporation for Restricted Stock Units credited in accordance with Section 9 of the Plan.
“Equity Award” - either fully vested Shares or fully vested Restricted Stock Units granted pursuant to the Equity Incentive Plan, or any successor plan. 
“Equity Incentive Plan” – the MFA Financial, Inc. Amended and Restated 2010 Equity Compensation Plan, as amended from time to time. 
“Fair Market Value” - for any date, the average of the high and low sales prices for Shares of the Corporation’s Common Stock, as reported by the New York Stock Exchange or such other relevant exchange on which the Corporation’s Common Stock is traded.
“Incumbent Directors” - persons who, as of the Effective Date, constitute the Board. 
“Nonemployee Director” - a member of the Board who is not also an employee of the Corporation and/or an employee of any affiliate of the Corporation.
“Participant” - each Nonemployee Director who elects to defer 50% or 100% of his or her Compensation or defers an Equity Award under this Plan.
“Plan” - MFA Financial, Inc. Third Amended and Restated 2003 Nonemployee Directors’ Deferred Compensation Plan, as it may be amended from time to time.
“Restricted Stock Unit” - a phantom interest granted pursuant to the Equity Incentive Plan or any successor thereto that represents the right to receive one Share on settlement, in accordance with the Restricted Stock Unit Agreement. 
“Restricted Stock Unit Agreement” - a written agreement to be entered into between the Corporation and the Participant in connection with the grant of Restricted Stock Units. 
 “Second Election” – (a) with respect to Compensation, an election pursuant to Section 5(c)(4) of the Plan which changes the Nonemployee Director’s prior deferral election, or (b) with respect to Restricted Stock Units, an election pursuant to Section 9(b)(4), which defers the settlement date of the Restricted Stock Units.
“Share” - a share of Common Stock of the Corporation.
“Termination of Service” - termination of service with the Corporation, which shall be interpreted in a manner that is consistent with the definition of a “separation from service” under Section 409A of the Code and Treasury Regulation 1.409A-1(h).
4.    Administration
(a)    Subject to the oversight of the Board, the Administrator shall have authority to administer the Plan, including conclusive authority to construe and interpret the Plan, to establish rules, policies, procedures, forms and notices for use in carrying out the Plan, and to make all other determinations necessary or desirable for administration of the Plan.  The Administrator may delegate some or all of its functions to another person(s) as it may deem appropriate.
(b)    Notwithstanding any other provision herein to the contrary, the Corporation intends that the Plan comply with the requirements of Section 409A of the Code, and the Administrator shall administer the Plan and exercise authority and discretion under the Plan to satisfy the requirements of Section 409A of the Code or any exemption thereto.  

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5.    Elections to Defer Compensation
(a)    Amount of Deferral.  A Nonemployee Director may elect to defer receipt of 50% or 100% of such Nonemployee Director’s Compensation otherwise thereafter payable to such Nonemployee Director.
(b)    Manner of Electing Deferral.  An election to defer Compensation shall be made by each Participant by giving written notice to the Administrator in the form approved by the Administrator.  Such notice shall address, without limitation:
(1)    the percentage of Compensation for the next calendar year to be deferred;
(2)    if applicable, an election for the Compensation Account to be settled following a five-year Deferral Period; and
(3)    an election for the Compensation Account to be settled in either a lump-sum payment or in a specified number of annual installments (not to exceed five).
(c)    Time of Election; Effectiveness; Change of Election.
(1)    An election to defer Compensation shall be made by a Nonemployee Director no later than the end of the calendar year preceding the year for which the Compensation was earned.  Notwithstanding the foregoing, a Nonemployee Director who first becomes eligible to participate in the Plan may make an election to defer any future Compensation within 30 days after the date of such eligibility; provided, however, that such deferral election shall only apply to the pro rata portion of the Compensation that is earned from the date of such election through the remainder of the year.
(2)    An election made prior to the year for which the Compensation is earned shall be irrevocable as of the last day of the calendar year in which the election is made and shall continue in effect until the end of the calendar year for which Compensation is earned.
(3)    A Nonemployee Director may elect to defer Compensation annually by submitting an Annual Participant Election Form provided by the Administrator, and the election submitted shall only be effective prospectively for the calendar year commencing immediately after the time of such submission.  
(4)    Notwithstanding the foregoing, with respect to any previously deferred Compensation, a Nonemployee Director may make a Second Election, which must, except as may otherwise be permitted under the rules applicable under Section 409A of the Code, (A) be effective at least one year after it is made, or, in the case of payments to commence at a specific time, be made at least one year before the first scheduled payment, and (B) defer the commencement of distributions (and each affected distribution) for at least five years.
6.    Deferred Compensation Account
(a)    Establishment of Compensation Account.  The Corporation will maintain Compensation Account(s) for each Participant for each year in which they elect to participate in the Plan, which will reflect the Compensation deferred by such Participant for a given calendar year.  Compensation Accounts under this Plan shall be unfunded and shall represent only an unsecured claim against the general assets of the Corporation.
(b)    Deferred Stock Units.  In any given calendar year, a Participant’s election to defer either 50% or 100% of the Compensation earned by such Participant shall be in the form of Deferred Stock Units.  Such deferral election shall be made in accordance with the provisions of Sections 5(b) and 5(c) of the Plan.  The number of Deferred Stock Units credited to the Participant’s Compensation Account, at the time such Compensation would otherwise have been payable absent the election to defer, will be equal to (i) the otherwise payable amount divided by (ii) the Fair Market Value of a Share on the last trading day preceding the credit date.  In addition, on each date on which a cash dividend is payable on the Shares, the Participant’s Compensation Account shall be credited with a number of Deferred Stock Units equal to (i) the per Share cash dividend times the number of Deferred Stock Units then credited to the Compensation Account, divided by (ii) the Fair Market Value of a Share on the last trading day preceding the dividend 

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payment date.  Compensation Accounts shall be credited with fractional Deferred Stock Units, rounded to the third decimal place.  Such additional Deferred Stock Units shall be paid to the Participant at the same time as Deferred Stock Units are received by the Participant with respect to the deferral of Compensation.
(c)    Adjustments.  In case of a stock split, stock dividend, or other relevant change in capitalization of the Corporation, the number of Deferred Stock Units credited to a Participant’s Compensation Account shall be adjusted in such manner as the Administrator deems appropriate.
7.    Valuation
The value of a Compensation Account as of any date on which a settlement payment is to be made under Section 8 shall be the amount equal to the number of Deferred Stock Units then credited to the Participant’s Compensation Account times the Fair Market Value of a Share on the last trading day preceding the payment date.
8.    Settlement
(a)    General.  The Deferred Stock Units credited to a Participant’s Compensation Account shall be distributed or commence distribution to a Participant on the earlier of (i) the year first following the year in which a Termination of Service occurs, or (ii) with respect to any particular Compensation Account, the year first following the year in which the five-year Deferral Period elected by such Participant for such Compensation Account expires.  To the extent that a Compensation Account is to be distributed to a Participant in accordance with this Section 8, such distribution shall occur on or about, but no earlier than, January 15 of the applicable distribution year.
(b)    Lump Sum.  If a Participant elects lump sum settlement, an amount of cash equal to the value of the Deferred Stock Units credited to the Compensation Account determined in accordance with Section 7 shall be paid to the Participant in accordance with Section 8(a).
(c)    Installment Payments.  If a Participant elects settlement in installments, an amount of cash determined as hereafter provided shall be paid to the Participant in accordance with Section 8(a) in each year of the installment payment period elected.  The amount of each installment shall be equal to (i) the value of the Deferred Stock Units credited to the Participant’s Compensation Account as of the payment date for such installment, determined in accordance with Section 7, divided by (ii) the number of unpaid installments.  Each installment payment shall be debited to the Deferred Stock Units in a Participant’s Compensation Account.
(d)    Payment on Death.  Notwithstanding a Participant’s settlement election, in the event of a Participant’s death an amount of cash equal to the remaining value of the Compensation Account determined as provided in Section 7 shall be paid in a single payment to the Participant’s estate as soon as possible, without undue delay, but in no event later than 90 days after the date of the Participant’s death.
(e)    No Withdrawal.  A Participant may not withdraw from the Participant’s Compensation Account, and no amounts shall be distributed with respect to a Participant’s Account, prior to the applicable distribution date.
(f)    Cash Settlement Only.  Settlement of a Compensation Account under this Plan shall be made only in cash, via wire transfer or check in U.S. dollars.
9.    Equity Awards.
(a)    Type of Equity Awards.  Nonemployee Directors shall also be eligible to receive for service on the Board annual Equity Awards in an amount and on such terms and conditions as prescribed by the Board or Compensation Committee of the Board.  Unless the Board or Compensation Committee determines otherwise, such Equity Awards shall be, as elected by the Participant in accordance with this Plan, granted in the form of fully vested Shares or fully vested Restricted Stock Units.

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(b)    Election of Form and Distribution of Equity Awards.
(1)    The Participant may elect to receive each applicable Equity Award in the form of fully vested Shares or fully vested Restricted Stock Units.  Such election shall be made no later than the end of the calendar year preceding the applicable Annual Meeting.  Notwithstanding the foregoing, a Participant who first becomes eligible to participate in the Plan may make an election as to the form of the applicable Equity Award within 30 days after the date of such eligibility; provided, however, that, with respect to the then-current annual period, the Participant may elect to receive Restricted Stock Units only with respect to the pro rata portion of the number of Shares included in the Equity Award that are earned from the date of such election through the remainder of the year.
(2)    The election described in Section 9(b)(1) shall be made by giving written notice to the Administrator in the form approved by the Administrator.  The Participant’s election as to the form of the Equity Award to be received at the next annual meeting shall be irrevocable as of December 31 of the year preceding the year of the applicable Annual Meeting.  Unless a new election is submitted in accordance with this Section 9(b)(2), the previous election submitted to the Corporation shall continue in effect from period to period and from meeting to meeting, as applicable.  The Equity Award for any Participant who fails to make an election shall be granted in the form of fully vested Shares of Common Stock.
(3)    With respect to each Participant who elects to receive Restricted Stock Units, such Restricted Stock Units shall be credited to an Equity Account maintained by the Company on behalf of such Participant.  Equity Accounts under this Plan shall be unfunded and shall represent only an unsecured claim against the general assets of the Corporation.
(4)    Shares pursuant to Restricted Stock Units shall be distributed in a lump sum on the earlier of (i) the calendar year first following the year in which a Termination of Service occurs, or (ii) the calendar year first following the fifth anniversary of the grant date of such Restricted Stock Units.  To the extent that Shares are to be distributed to a Participant in accordance with this Section 9, such distribution shall occur on or about, but no earlier than, January 15 of the applicable distribution year.  Notwithstanding the foregoing, a Nonemployee Director may make a Second Election with respect to Restricted Stock Units, which must, except as may otherwise be permitted under the rules applicable under Section 409A of the Code, (A) be effective at least one year after it is made, or, in the case of payment to be made at a specific time, be made at least one year before settlement, and (B) defer the settlement of Restricted Stock Units for at least five years.
(5)    All Restricted Stock Units shall be settled in Shares, and all Shares issued with respect to Restricted Stock Units shall be issued under the Equity Incentive Plan.
(c)    Payment on Death.  Notwithstanding a Participant’s settlement election, in the event of a Participant’s death, Shares pursuant to Restricted Stock Units shall be distributed in a single lump sum to the Participant’s estate as soon as possible, without undue delay, but in no event later than 90 days after the date of the Participant’s death.
10.    Non-Assignability
The right of a Participant to receive any unpaid portion of the Participant’s Compensation Account or Equity Account may not be assigned or transferred except by will or the laws of descent and distribution, and may not be pledged or encumbered or be subject to attachment, execution, or levy of any kind.
11.    Amendment and Termination
This Plan may be amended, modified or terminated by the Board at any time (taking into account, without limitation, Section 409A of the Code as the Board may deem appropriate), provided that no such amendment, modification or termination shall, without the consent of a Participant, adversely affect such Participant’s rights with respect to amounts accrued in the Participant’s Compensation Account or Equity Account.

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12.    Governing Law 
This Plan and all actions taken under it shall be governed by the laws of the State of New York, without reference to conflict of law principles.
13.    Severability 
If any provision of this Plan shall be deemed illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan but shall be fully severable.
14.    Compliance 
The Administrator is authorized to take such steps as may be necessary including, without limitation, delaying effectiveness of a Participant’s election or delaying settlement of a Compensation Account or Equity Account, in order to ensure that this Plan and all actions taken under it comply with any law, regulation, or listing requirement which the Administrator deems applicable or desirable, including the exemption provided by Rule 16b-3 under the Securities Exchange Act of 1934, as amended.  The Plan is intended to be construed and administered in compliance with Section 409A of the Code.  Notwithstanding the foregoing, the Corporation makes no representation that the Plan complies with Section 409A of the Code and shall have no liability to any Participant for any failure to comply with Section 409A of the Code. .
15.    Withholding
If the Corporation concludes that any tax is owing with respect to any deferral of income or payment hereunder, the Corporation shall withhold such amounts from any payments due the Participant, or otherwise make appropriate arrangements with the Participant for satisfaction of such obligation.

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