Document:

exv10w5

 

Exhibit 10.5

COUNTRYWIDE FINANCIAL CORPORATION

2006 Equity Incentive Plan

Performance-Based

Stock Appreciation Rights Award Agreement

     The Participant specified below has been granted these Stock Appreciation Rights (“SARs”)
by Countrywide Financial Corporation, a Delaware corporation (the “Company”) under the
terms of the Countrywide Financial Corporation 2006 Equity Incentive Plan (the “Plan”).
The SARs shall be subject to the following terms and conditions set forth herein as well as the
terms of the Plan (the “SAR Terms”).

     Section 1. Award. In accordance with the Plan, the Company hereby grants to the
Participant these SARs which represent the right to receive the aggregate dollar value of
appreciation (“Appreciation”) in the Fair Market Value of the Company’s Stock, par value [$___]
per share, on the number of shares (the “Covered Shares”) set forth on the SAR Statement (the
“Statement”) linked electronically hereto. The Appreciation shall be computed by multiplying (A)
the excess, if any, of (i) the Fair Market Value of a share of Stock on the exercise date, over
(ii) the Fair Market Value of a share of Stock or a related option, as the case may be, on the
Grant Date (the “Grant Price”), times (B) the number of Covered Shares settled. The Appreciation
shall be payable by the Company only in [stock OR cash OR combination]. These SARs are in all
respects limited and conditioned as provided herein. Except where the context clearly implies to
the contrary, any capitalized terms in this SAR shall have the meaning ascribed to them under the
Plan.

     Section 2. Terms of Award. The following words and phrases relating to the grant of
the SARs shall have the following meanings:

          (a) The “Participant” is the individual recipient of the SAR Award on the specified Grant
Date.

          (b) The “Grant Date” is [                    ].

          (c) The number of “Covered Shares” is the number of Company Shares awarded to the Participant
on the Grant Date as reflected in the corporate records and set forth on the Statement.

          (d) The Grant Price” is $[___] per share.

     Section 3. Vesting. Subject to the limitations of the SAR Terms, each installment of
Covered Shares of the SAR (“Installment”) shall become vested and exercisable on and after the
“Vesting Date” for such Installment as described in the following schedule if, and only if, both
(i) the Participant is employed by the Company at all times from the Grant Date through the vesting
date and (ii) the Earnings Per Share (“EPS”) goals of the Company have been attained pursuant to
the following schedule:

 

 

	 	 	 	 	 
	Cumulative Percentage of	 	 	 	 
	Shares Exercisable	 	Vesting Date*	 	Cumulative EPS Goals
	[___]%

	 	[Insert Date]
	 	$[XX.XX] (EPS for [Insert year] only)
	[___]%

	 	[Insert Date]
	 	$[XX.XX] (EPS for [Insert year] only)
	[___]%

	 	[Insert Date]
	 	$[XX.XX] (EPS for [Insert year] only)
	Remaining unvested shares

	 	[Insert Date]
	 	$[XX.XX] (EPS for [Insert year] only)

          (a) Notwithstanding the foregoing provisions of this Section 3, the SAR shall become fully
exercisable upon the earliest of the following events to occur, whether or not the cumulative EPS
Goals have been met: (i) a Change of Control that occurs on or before the Participant’s
Termination of Service; or (ii) Participant’s Termination of Service as a result of the
Participant’s Death, Disability or Retirement.

          (b) The SAR may only be exercised on or after the Participant’s Termination of Service only as
to that portion of the Covered Shares for which it was exercisable immediately prior to the
Participant’s Termination of Service, or became exercisable on the date of the Participant’s
Termination of Service.

     Section 4. Expiration Date. The SAR shall not be exercisable after the Company’s
close of business on the last business day that occurs prior to the Expiration Date. The
“Expiration Date” shall be the earliest to occur of:

          (a) the date of the Participant Termination of Service due to Cause;

          (b) the five-year anniversary of the Grant Date;

          (c) the twelve (12) month anniversary of the Participant’s Termination of Service if the
Termination of Service occurs due to Death, Disability or Retirement; or

          (d) the three (3) month anniversary of the Participant’s Termination of Service if the
Termination of Service occurs for reasons other than Death, Disability, Retirement or Cause;
provided, however, that if the Participant returns to employment with, or as a director or
consultant to, the Company, within three (3) months after the Termination of Service, such
termination shall have no effect on the SAR and the Participant shall have the same number of
shares and the same vesting schedule as set forth in this Agreement.

          Notwithstanding the foregoing provisions of this Section 4(d), in the event a Participant dies
during the periods provided for in subsections (c) or (d) above, the SAR shall not expire, and
shall remain exercisable, until the one (1) year anniversary of the date of Death, but in no event
beyond the expiration date provided in subsection (b) above.

 

			
	*	 	Provided Cumulative EPS Goals are achieved.

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     Section 5. Settlement.

          (a) Method of Exercise. Subject to the SAR Terms and the Plan, the SAR may be exercised in
whole or in part by filing an exercise notice with the Secretary of the Company at its corporate
headquarters prior to the Company’s close of business on the last business day that occurs prior to
the Expiration Date. The notice requirement may only be satisfied by (i) the proper use of a
specified electronic medium (phone, intranet, internet or other), whether or not such medium is the
property of, or maintained, by the Company or a third party service provider, or (ii) any other
method prescribed by the Committee;] provided, however, the Committee shall retain the right to
limit or expand the method of exercise to any one or more of the above methods with respect to any
individual Participant or group or class of Participants. Such notice shall specify the number of
Covered Shares which the Participant elects to exercise the SAR rights. In the event this SAR is
exercised by any person or persons after the legal disability or Death of the Participant, such
notice shall be accompanied by appropriate proof of the right of such person or persons to exercise
this SAR.

          (b) Payment of Appreciation. As soon as practicable following the exercise of all or a
portion of the SAR, the Company shall deliver to the Participant the Appreciation [in cash] OR [in
shares of Common Stock, based on the Fair Market Value of such shares on the date of exercise, less
any shares to satisfy withholding obligations. The certificate or certificates for the number of
shares of Common Stock so determined shall be registered in the name of the person or persons so
exercising this SAR (or, if this SAR shall be exercised by the Participant and if the Participant
shall so request in the notice exercising this SAR, shall be registered in the name of the
Participant and the Participant’s spouse, jointly, with right of survivorship or a trust
established by the Participant for estate planning purposes) and shall be delivered as provided
above to or upon the written order of the person or persons exercising this SAR. All shares of
Common Stock that shall be delivered upon the exercise of this SAR as provided herein shall be
fully paid and non-assessable by the Company.]

     Section 6. Withholding. The settlement of the SARs is subject to withholding of all
applicable taxes.

     Section 7. Rights of the Participant. The Participant shall not be, or deemed to be,
for any purpose, the owner of any Covered Shares subject to any SARs.

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     Section 8. Transferability of SAR. This SAR, or a portion thereof, may be
transferable or assignable to a member or members of the Participant’s “immediate family,” as such
term is defined in Rule 16a-1(e) under the Exchange Act, or to a trust for the benefit solely of a
member or members of the Participant’s immediate family, or to a partnership or other entity whose
only owners are members of the Participant’s immediate family (such transferee being a
“Participant”), subject to the terms and conditions of the Plan. No SAR is transferable by the
Participant other than by will or by the laws of descent and distribution, and during the
Participant’s life, may be exercised only by the Participant. It may not be assigned, transferred
(except as aforesaid), pledged or hypothecated by the Participant in any way whether by operation
of law or otherwise, and shall not be subject to execution, attachment or similar process. Any
attempt at assignment, transfer, pledge or hypothecation, or other disposition of this SAR contrary
to the provisions hereof, and the levy of any attachment or similar process upon this SAR, shall be
null and void and without effect. Notwithstanding the above, an SAR may be assigned, transferred,
pledged or hypothecated by will or the laws of descent and distribution or pursuant to a qualified
domestic relations order.

     Section 9. Heirs and Successors. The SAR Terms shall be binding upon, and inure to
the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether
by merger, consolidation, purchase of assets or otherwise, all or substantially all of the
Company’s assets and business. If any rights of the Participant or benefits distributable to the
Participant under this Agreement have not been settled or distributed, respectively, at the time of
the Participant’s Death, such rights shall be settled and payable to the Designated Beneficiary,
and such benefits shall be distributed to the Designated Beneficiary, in accordance with the
provisions of this Agreement and the Plan. The “Designated Beneficiary” shall be the beneficiary
or beneficiaries designated by the Participant in a writing filed with the Committee on the form
found in HRCentral, or such other form as the Committee may require. The designation of
beneficiary form may be amended or revoked from time to time by the Participant. If a deceased
Participant fails to designate a beneficiary, or if the Designated Beneficiary does not survive the
Participant, any rights that would have been payable to the Participant and shall be payable to the
legal representative of the estate of the Participant. If a deceased Participant designates a
beneficiary and the Designated Beneficiary survives the Participant but dies before the settlement
of Designated Beneficiary’s rights under this Agreement, then any rights that would have been
payable to the Designated Beneficiary shall be payable to the legal representative of the estate of
the Designated Beneficiary.

     Section 10. Administration. The authority to manage and control the operation and
administration of the SAR Terms and the Plan shall be vested in the Committee, and the Committee
shall have all powers with respect to the SAR Terms as it has with respect to the Plan. Any
interpretation of the SAR Terms or the Plan by the Committee and any decision made by it with
respect to the SAR Terms or the Plan are final and binding on all persons.

     Section 11. Plan Governs. Notwithstanding anything in the SAR Terms to the contrary,
the SAR Terms shall be subject to the terms of the Plan, a copy of which may be obtained by the
Participant from the office of the Secretary of the Company; and the SAR Terms are subject to all
interpretations, amendments, rules and regulations promulgated by the Committee from time to time
pursuant to the Plan. Notwithstanding anything in the SAR Terms

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to the contrary, in the event of any discrepancies between the corporate records and the
Statement, the corporate records shall control.

     Section 12. Not An Employment Contract. The SARs will not confer on the Participant
any right with respect to continuance of employment or other service with the Company or any
Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would
otherwise have to terminate or modify the terms of such Participant’s employment or other service
at any time.

     Section 13. Amendment. The SAR Terms may be amended in accordance with the provisions
of the Plan, and may otherwise be amended by written agreement of the Participant and the Company
without the consent of any other person.

     Section 14. Section 409A Amendment. The Committee reserves the right (including the
right to delegate such right) to unilaterally amend this Agreement without the consent of the
Participant in order to maintain an exclusion from the application of, or to maintain compliance
with, Code Section 409A. Participant’s acceptance of this Award constitutes acknowledgement and
consent to such rights of the Committee.

     Section 14. Statement and Modifications. The SAR granted to the Participant under the
SAR Terms set forth in this Agreement shall be set forth on the Statement. The Participant hereby
acknowledges and agrees that the Statement may be revised from time to time by the Company to
reflect additional grants of SARs, exercises of SARs and any permitted modifications to the Plan
and SARs granted thereunder. Unless the Participant provides written notice to the Company’s SAR
Administrator within thirty (30) days of receipt of the Statement at the principal office of the
Company in Calabasas, California, or such other addresses as may be communicated to the
Participant, the Statement (including any revisions incorporated therein) shall be binding on the
Participant, without further notice to or acknowledgement by the Participant. If no notice is
received from the Participant within the thirty (30) day period, then the Participant shall be
deemed to have acknowledged that the Statement is binding with respect to the information contained
therein.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on
its behalf, all as of the Grant Date and, by clicking the Accept Button below, the Participant
acknowledges acceptance of the terms and conditions of this Agreement.

COUNTRYWIDE FINANCIAL CORPORATION

	 	 	 	 	 
	By:

	 	 	 	 
	 	 	 	 	 
	Its:
	 	 	 	 
	 	 	 	 	 

Yes, I do accept

(Click here to view grant information. Use your HRCentral password to log in)

No, I do not accept

(Click here to reject and void the grant)

6exv10w6

 

Exhibit 10.6

COUNTRYWIDE FINANCIAL CORPORATION

2006 Equity Incentive Plan

Performance-Based

Restricted Stock Unit Award Agreement

     The Participant specified below has been granted these Restricted Stock Units (“RSUs”) by
Countrywide Financial Corporation, a Delaware corporation (the “Company”) under the terms
of the Countrywide Financial Corporation 2006 Equity Incentive Plan (the “Plan”). The
RSUs shall be subject to the following terms and conditions set forth herein as well as the terms
of the Plan (the “RSU Terms”).

     Section 1. Award. In accordance with the Plan, the Company hereby grants to the
Participant these RSUs where each unit represents the right to receive one share of Common Stock in
the future. These RSUs are in all respects limited and conditioned as provided herein. Except
where the context clearly implies to the contrary, any capitalized terms in this award shall have
the meaning ascribed to them in the Plan.

     Section 2. Terms of Award. The following words and phrases relating to the grant of
the RSUs shall have the following meanings:

          (a) The “Participant” is the individual recipient of the RSU Award on the specified Grant
Date.

          (b) The “Grant Date” is [                    ].

          (c) The number of “Units” is the number of Units awarded to the Participant on the Grant Date
as reflected in the corporate records set forth on the RSU Statement (the “Statement”) linked
electronically hereto.

          (d) The “Delivery Date” shall be the end of the Restricted Period, with respect to the
applicable Units.

     Section 3. Restricted Period. This Agreement along with the Statement evidences the
Company’s grant to the Participant as of the Grant Date, on the terms and conditions described in
this Agreement and in the Plan, RSUs, as well as the right of the Participant to become entitled to
receive Stock with respect to that portion of the Units no longer covered by a Restricted Period.
Subject to the limitations of the RSU Terms, the “Restricted Period” for each installment of Units
(“Installment”) shall begin on the Grant Date and end when the Earnings Per Share (“EPS”) goals of
the Company have been attained pursuant to the following schedule (but only if the Participant has
not had a Termination of Service before the end of the Restricted Period):

 

 

	 	 	 	 	 
	Installment	 	End of Restricted Period*	 	Cumulative EPS Goals
	[___]%

	 	[Insert Date]
	 	$[XX.XX] (EPS for [Insert year] only)
	[___]%

	 	[Insert Date]
	 	$[XX.XX] (EPS for [Insert year] only)
	[___]%

	 	[Insert Date]
	 	$[XX.XX] (EPS for [Insert year] only)
	Remaining restricted Units

	 	[Insert Date]
	 	$[XX.XX] (EPS for [Insert year] only)

          (a) Notwithstanding the foregoing provisions of this Section 3, the Restricted Period shall
cease immediately upon the earliest of the following events to occur, whether or not the cumulative
EPS Goals have been met: (i) a Change in Control that occurs on or before the Participant’s
Termination of Service; or (ii) the Participant’s Termination of Service as a result of the
Participant’s Death, Disability or Retirement.

          (b) In the event the Participant’s Termination of Service other than due to Death, Disability
or Retirement occurs prior to the expiration of one or more Restricted Periods, the Participant
shall forfeit all rights, title and interest in and to that portion of Units which have not vested
as of the Participant’s Termination of Service date.

     Section 4. Settlement of Units. As soon as administratively practicable following the
end of a Restricted Period or upon immediate vesting as described in Section 3, the Company shall
deliver to the Participant one share of the Company’s Stock free and clear of any restrictions in
settlement of each of the unrestricted Units.

     Notwithstanding the foregoing provisions of Sections 3 or 4, in the event that the settlement
of the Units (or the payment of any dividend equivalents pursuant to Section 9, below) would
generate taxable income to the Participant that would not be deductible to the Company due to the
application of the limitations of Code section 162(m), such delivery shall be deferred until the
earlier of (i) such time as Company reasonably anticipates that the limitations of Code section
162(m) on the Company’s deduction for amounts paid to the Participant no longer apply or (ii)
January 15th of the year following the year in which the Participant’s Termination of Service
occurs.

     Section 5. Withholding. All deliveries of Units pursuant to this Agreement shall be
subject to withholding of all applicable taxes. The Company shall have the right to require the
Participant (or if applicable, permitted assigns, heirs or Designated Beneficiaries) to remit to
the Company an amount sufficient to satisfy any tax requirements prior to the Delivery Date of any
certificate or certificates for Stock under this Agreement. At the election of the Participant,
subject to the rules and limitations as may be established by the Committee, such withholding
obligations may be satisfied through the surrender of shares of Common Stock which the Participant
already owns, or to which Participant is otherwise entitled under the Plan.

 

			
	*	 	Provided Cumulative EPS Goals are achieved.

2

 

     Section 6. Rights of the Participant. The Participant shall not be, or deemed to be,
for any purpose, the owner of any Covered Shares subject to any RSUs.

     Section 7. Heirs and Successors. The RSU Terms shall be binding upon, and inure to
the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether
by merger, consolidation, purchase of assets or otherwise, all or substantially all of the
Company’s assets and business. If any rights of the Participant or benefits distributable to the
Participant under this Agreement have not been settled or distributed, respectively, at the time of
the Participant’s Death, such rights shall be settled and payable to the Designated Beneficiary,
and such benefits shall be distributed to the Designated Beneficiary, in accordance with the
provisions of this Agreement and the Plan. The “Designated Beneficiary” shall be the beneficiary
or beneficiaries designated by the Participant in a writing filed with the Committee on the form
found in HRCentral, or such other form as the Committee may require. The designation of
beneficiary form may be amended or revoked from time to time by the Participant. If a deceased
Participant fails to designate a beneficiary, or if the Designated Beneficiary does not survive the
Participant, any rights that would have been payable to the Participant and shall be payable to the
legal representative of the estate of the Participant. If a deceased Participant fails to
designate a beneficiary, or if the Designated Beneficiary does not survive the Participant, any
rights that would have been payable to the Participant and shall be payable to the legal
representative of the estate of the Participant. If a deceased Participant designates a
beneficiary and the Designated Beneficiary survives the Participant but dies before the settlement
of Designated Beneficiary’s rights under this Agreement, then any rights that would have been
payable to the Designated Beneficiary shall be payable to the legal representative of the estate of
the Designated Beneficiary.

     Section 8. Non-Transferability of RSU. During the Restricted Period, the Participant
shall not sell, assign, transfer, pledge, hypothecate, mortgage, encumber or dispose of any Units
awarded under this Agreement.

     Section 9. Dividend Equivalents. Subject to the application of Section 4, the
Participant shall be entitled to receive a payment of additional Units equal in value to any cash
dividends and property distributions paid with respect to the RSUs (other than dividends or
distributions of securities of the Company which may be issued with respect to its shares by virtue
of any stock split, combination, stock dividend or recapitalization – to the extent covered in
Section 2.3(d) of the Plan) that become payable during the Restricted Period (“Dividend
Equivalents”); provided, however, that no Dividend Equivalents shall be payable to or for the
benefit of the Participant with respect to record dates for such dividends or distributions
occurring prior to the Grant Date, or with respect to record dates for such dividends or
distributions occurring on or after the date, if any, on which the Participant has forfeited the
Units. Dividend Equivalents shall be paid at such times as the Committee shall determine in its
discretion and shall be subject to the same restrictions applicable to the underlying Units.

     Section 10. No Voting Rights. The Participant shall not be a shareholder of record
with respect to the Units during the Restricted Period and shall have no voting rights with respect
to the Units during the Restricted Period.

3

 

     Section 11. Securities Laws. The Participant acknowledges that certain restrictions
under state or federal securities laws may apply with respect to the Units granted pursuant to this
Award, even after they have been delivered as shares to the Participant. Specifically, Participant
acknowledges that, to the extent he or she is an “affiliate” of the Company (as that term is
defined by the Securities Act of 1933), the Units granted pursuant to this Award are subject to
certain trading restrictions under applicable securities laws (including particularly the
Securities and Exchange Commission’s Rule 144). Participant hereby agrees to execute such
documents and take such actions as the Company may reasonably require with respect to state and
federal securities laws and any restrictions on the resale of such shares which may pertain under
such laws.

     Section 12. Administration. The authority to manage and control the operation and
administration of the RSU Terms and the Plan shall be vested in the Committee, and the Committee
shall have all powers with respect to the RSU Terms as it has with respect to the Plan. Any
interpretation of the RSU Terms or the Plan by the Committee and any decision made by it with
respect to the RSU Terms or the Plan are final and binding on all persons.

     Section 13. Plan Governs. Notwithstanding anything in the RSU Terms to the contrary,
the RSU Terms shall be subject to the terms of the Plan, a copy of which may be obtained by the
Participant from the office of the Secretary of the Company; and the RSU Terms are subject to all
interpretations, amendments, rules and regulations promulgated by the Committee from time to time
pursuant to the Plan. Notwithstanding anything in the RSU Terms to the contrary, in the event of
any discrepancies between the corporate records and the Statement, the corporate records shall
control.

     Section 14. Not An Employment Contract. The RSUs will not confer on the Participant
any right with respect to continuance of employment or other service with the Company or any
Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would
otherwise have to terminate or modify the terms of such Participant’s employment or other service
at any time.

     Section 15. Amendment. The RSU Terms may be amended in accordance with the provisions
of the Plan, and may otherwise be amended by written agreement of the Participant and the Company
without the consent of any other person.

     Section 16. Section 409A Amendment. The Committee reserves the right (including the
right to delegate such right) to unilaterally amend this Agreement without the consent of the
Participant in order to maintain an exclusion from the application of, or to maintain compliance
with, Code Section 409A. Participant’s acceptance of this Award constitutes acknowledgement and
consent to such rights of the Committee.

     Section 17. Statement and Modifications. The RSU granted to the Participant under the
RSU Terms set forth in this Agreement shall be set forth on the Statement. The Participant hereby
acknowledges and agrees that the Statement may be revised from time to time by the Company to
reflect additional grants of RSUs, exercises of RSUs and any permitted modifications to the Plan
and RSUs granted thereunder. Unless the Participant provides written notice to the Company’s RSU
Administrator within thirty (30) days of receipt of the Statement at

4

 

the principal office of the Company in Calabasas, California, or such other addresses as may
be communicated to the Participant, the Statement (including any revisions incorporated therein)
shall be binding on the Participant, without further notice to or acknowledgement by the
Participant. If no notice is received from the Participant within the thirty (30) day period, then
the Participant shall be deemed to have acknowledged that the Statement is binding with respect to
the information contained therein.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on
its behalf, all as of the Grant Date and, by clicking the Accept Button below, the Participant
acknowledges acceptance of the terms and conditions of this Agreement.

COUNTRYWIDE FINANCIAL CORPORATION

	 	 	 	 	 
	By:

	 	 	 	 
	 	 	 	 	 
	Its:
	 	 	 	 
	 	 	 	 	 

Yes, I do accept

(Click here to view grant information. Use your HRCentral password to log in)

No, I do not accept

(Click here to reject and void the grant)

5

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