Document:

Exhibit 10.2

 

 

BAKER
HUGHES INCORPORATED 

RESTRICTED
STOCK UNIT AWARD AGREEMENT

 

AWARD
OF RESTRICTED STOCK UNITS

 

PAYABLE
IN SHARES

 

The Compensation Committee
(the “Committee”) of the Board of Directors of Baker Hughes Incorporated, a Delaware corporation (the “Company”),
pursuant to the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan (the “Plan”),
hereby awards to you, effective as of Grant Date (the “Grant Date”), a certain number of restricted stock units,
in each case, as set forth in your Plan account maintained by Fidelity Stock Plan Services (the “Restricted Stock Units”),
on the following terms and conditions:

 

The Restricted Stock
Units that are awarded hereby to you will be subject to the prohibitions and restrictions set forth herein with respect to the
sale or other disposition of such Restricted Stock Units and the obligation to forfeit and surrender such Restricted Stock Units
to the Company (the “Forfeiture Restrictions”). The Forfeiture Restrictions will lapse as to the Restricted
Stock Units that are awarded hereby in accordance with the following schedule provided that the termination of your employment
with the Company and all Affiliates (a “Termination of Employment”) has not occurred prior to the applicable
lapse date:

 

On
the second anniversary of the Grant Date, the Forfeiture Restrictions will lapse as to all of the Restricted Stock Units subject
to this Agreement.

 

If a Change in Control
of the Company occurs or you incur a Termination of Employment before the second anniversary of the Grant Date, your rights to
the Restricted Stock Units under this Agreement will be determined as provided in the attached Terms and Conditions of Restricted
Stock Unit Award Agreements (the “Terms and Conditions”).

 

Upon the lapse of the
Forfeiture Restrictions applicable to a Restricted Stock Unit that is awarded hereby, the Company will issue to you one share of
the Company’s Common Stock, $1.00 par value per share (the “Common Stock”), in exchange for such Restricted
Stock Unit and thereafter you will have no further rights with respect to such Restricted Stock Unit. Such shares of the Common
Stock will be transferable by you (except to the extent that any proposed transfer would, in the opinion of counsel satisfactory
to the Company, constitute a violation of applicable federal or state securities law).

 

If during the period
you hold any Restricted Stock Units awarded hereby the Company pays a dividend in cash with respect to the outstanding shares of
the Common Stock (a “Cash Dividend”), then the Company will credit to an account established for you by the
Company under the Plan (the “Account”) an amount equal to the product of (a) the Restricted Stock
Units awarded hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock and
(b) the amount of the Cash Dividend paid per share of the Common Stock (the “Dividend Equivalent Credit”).
The Company will pay to you, in cash, an amount equal to the Dividend Equivalent Credits credited to the Account with respect to
a Restricted Stock Unit on the date the Forfeiture Restrictions applicable to that Restricted Stock Unit lapse (and in no case
later than the end of the calendar year in which the Forfeiture Restrictions applicable to that Restricted Stock Unit lapse or,
if later, the 15th day of the third month following the date the Forfeiture Restrictions applicable to that Restricted Stock Unit
lapse).

 

If during the period
you hold any Restricted Stock Units awarded hereby the Company pays a dividend in shares of the Common Stock with respect to the
outstanding shares of the Common Stock, then the Company will increase the Restricted Stock Units awarded hereby that have not
then been exchanged by the Company for shares of the Common Stock by an amount equal to the product of (a) the Restricted
Stock Units awarded hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock
and (b) the number of shares of the Common Stock paid by the Company per share of the Common Stock (collectively, the “Stock
Dividend Restricted Stock Units”). Each Stock Dividend Restricted Stock Unit will be subject to same Forfeiture Restrictions
and other restrictions, limitations and conditions applicable to the Restricted Stock Unit for which such Stock Dividend Restricted
Stock Unit was awarded and will be exchanged for shares of the Common Stock at the same time and on the same basis as such Restricted
Stock Unit.

 

 

     

     

    

 

The Restricted Stock
Units may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other than
by will or the applicable laws of descent and distribution). Any such attempted sale, assignment, pledge, exchange, hypothecation,
transfer, encumbrance or disposition in violation of this Agreement will be void and the Company Group will not be bound thereby.

 

Any shares of the Common
Stock issued to you in exchange for Restricted Stock Units awarded hereby may not be sold or otherwise disposed of in any manner
that would constitute a violation of any applicable federal or state securities laws. You also agree that the Company may refuse
to transfer any such shares of the Common Stock if such proposed transfer would in the opinion of counsel satisfactory to the Company
constitute a violation of any applicable federal or state securities law.

 

The shares of Common
Stock that may be issued under the Plan are registered with the Securities and Exchange Commission under a Registration Statement
on Form S-8. A Prospectus describing the Plan and the shares of Common Stock and the Terms and Conditions can be found on the Fidelity
Stock Plan Services website at www.netbenefits.fidelity.com. You may also obtain a copy of the Plan Prospectus by requesting it
from the Company.

 

Capitalized terms that
are not defined herein will have the meaning ascribed to such terms in the Plan or the Terms and Conditions.

 

In accepting the award
of Restricted Stock Units set forth in this Agreement you accept and agree to be bound by all the terms and conditions of the Plan,
this Agreement and the Terms and Conditions.

 

BAKER HUGHES INCORPORATED

 

 

 

Martin S. Craighead

 

Chairman and Chief Executive Officer

 

    

     

    

 

BAKER
HUGHES INCORPORATED

 

TERMS
AND CONDITIONS

OF

RESTRICTED STOCK UNIT AWARD AGREEMENTS

 

These
Terms and Conditions are applicable to a restricted stock unit award granted pursuant to the Baker Hughes Incorporated 2002 Director
& Officer Long-Term Incentive Plan (the “Plan”) and are incorporated as part of the Restricted Stock Unit
Award Agreement setting forth the terms of such restricted stock unit award (the “Agreement”).

 

		1.	TERMINATION
                                         OF EMPLOYMENT/CHANGE IN CONTROL. The following provisions will apply in the event
                                         your employment with the Company and all Affiliates (collectively, the “Company
                                         Group”) terminates (a “Termination of Employment”), or a
                                         Change in Control of the Company occurs, before the second anniversary of the Grant Date
                                         (the “Second Anniversary Date”) under the Restricted Stock Unit Award
                                         Agreement awarded to you (the “Agreement”):

 

1.1             
Termination Generally. If you incur a Termination of Employment on or before the Second
Anniversary Date for any reason other than one of the reasons described in Sections 1.2 through 1.5 below, the Forfeiture
Restrictions then applicable to the Restricted Stock Units will not lapse and the number of Restricted Stock Units then subject
to the Forfeiture Restrictions will be forfeited to the Company on the date of your Termination of Employment.

 

1.2             
Potential or Actual Change in Control.

 

(i)                
Termination of Employment Without Cause or for Good Reason in Connection With a Potential
Change in Control on or Before the Second Anniversary Date. If you incur a Termination of Employment without Cause on or before
the Second Anniversary Date prior to a Change in Control of the Company (whether or not a Change in Control ever occurs) and such
Termination of Employment is at the request or direction of a Person who has entered into an agreement with the Company the consummation
of which would constitute a Change in Control of the Company or is otherwise in connection with or in anticipation of a Change
in Control of the Company (whether or not a Change in Control ever occurs) or (b) you incur a Termination of Employment for
Good Reason on or before the Second Anniversary Date prior to a Change in Control of the Company (whether or not a Change in Control
ever occurs), and such Termination of Employment or the circumstance or event which constitutes Good Reason occurs at the request
or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change
in Control of the Company or is otherwise in connection with or in anticipation of a Change in Control of the Company (whether
or not a Change in Control ever occurs), then all remaining Forfeiture Restrictions will immediately lapse on the date of your
Separation From Service if you are not a Specified Employee or on the date that is six months following your Separation From Service
if you are a Specified Employee. For purposes of these Terms and Conditions, “Separation From Service” has
the meaning ascribed to that term in 

 

    1

     

    

Section
409A and “Specified Employee” means a person who is, as of the date of the person’s Separation From Service,
a “specified employee” within the meaning of Section 409A, taking into account
the elections made and procedures established in resolutions adopted by the Administrative Committee of Baker Hughes. For purposes
of these Terms and Conditions, “Section 409A” means section 409A of the Internal Revenue Code of 1986, as amended
and the Department of Treasury rules and regulations issued thereunder.

 

(ii)              
 Termination of Employment Does Not Occur Before a Change in Control on or Before the
Second Anniversary Date. If a Change in Control of the Company occurs on or before the Second Anniversary Date and you do
not incur a Termination of Employment before the date the Change in Control of the Company occurs, then all remaining Forfeiture
Restrictions will lapse at the time specified below. All remaining Forfeiture Restrictions will lapse on the date the Change in
Control of the Company occurs if the Change in Control of the Company qualifies as a change in the ownership or effective control
of the corporation, or in the ownership of a substantial portion of the assets of the corporation, within the meaning of Section
409A, or (b) on the Second Anniversary Date, if the Change in Control of the Company does not so qualify. 

 

1.3             
Divestiture of Business Unit Notwithstanding any other provision of the Agreement
or these Terms and Conditions to the contrary, if the Company Group divests its ownership of a business unit of the Company or
one or more Affiliates (a “Unit”) and your Termination of Employment in connection with such divestiture (other
than for Cause or death or due to your becoming permanently disabled within the meaning of Section 1.4), the Forfeiture Restrictions
will lapse at the time specified below as to that number of Restricted Stock Units that are then subject to Forfeiture Restrictions
on the date of your Termination of Employment equal to:

 

(1)
multiplied by (2) divided by (3)

 

where
(1) is the number of Restricted Stock Units that are then subject to Forfeiture Restrictions on the date of your Termination
of Employment, (2) is the number of days during the period commencing on the Grant Date and ending on the date of your Termination
of Employment, and (3) is the number of days during the period commencing on the Grant Date and ending on the Second Anniversary
Date. Such Forfeiture Restrictions specified in the preceding sentence will lapse on the date the Change in Control of the Company
occurs if the Change in Control of the Company qualifies as a change in the ownership or effective control of the corporation,
or in the ownership of a substantial portion of the assets of the corporation, within the meaning of Section 409A, or (b) on the
Second Anniversary Date, if the Change in Control of the Company does not so qualify. The Forfeiture Restrictions then applicable
to all the remaining Restricted Stock Units after the application of the previous provisions of this Section 1.3 will not
lapse and such Restricted Stock Units will be immediately forfeited to the Company. A “Divestiture” includes
the disposition of a Unit to an entity that the Company does not consolidate in its financial statements, whether the disposition
is structured as a sale or transfer of stock (or other ownership interest), a merger, a consolidation or a sale or transfer of
assets, or a combination thereof, provided that a “Divestiture” will not include a disposition that
constitutes a Change in Control.

 

    2

     

    

1.4             
Disability. Notwithstanding any other provision of the Agreement or these Terms and
Conditions to the contrary, if you become permanently disabled before the Second Anniversary Date and while in the active employ
of one or more members of the Company Group, all remaining Forfeiture Restrictions will immediately lapse on the date of your
Termination of Employment due to your becoming permanently disabled. For purposes of this Section 1.4, you will be “permanently
disabled” if you (a) are unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, or (b) are, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees
of the Company Group.

 

1.5             
Death. Notwithstanding any other provision of the Agreement or these Terms and Conditions
to the contrary, if you die before the Second Anniversary Date and while in the active employ of one or more members of the Company
Group, all remaining Forfeiture Restrictions will immediately lapse on the date of your Termination of Employment due to death.

 

		2.	PROHIBITED
                                         ACTIVITY. Notwithstanding any other provision of these Terms and Conditions or the
                                         Agreement, if you engage in a “Prohibited Activity,” as described below,
                                         while employed by one or more members of the Company Group or within two years after
                                         the date of your Termination of Employment, then your right to receive the shares of
                                         the Common Stock, to the extent still outstanding at that time, will be completely forfeited.
                                         A “Prohibited Activity” will be deemed to have occurred, as determined
                                         by the Committee in its sole and absolute discretion, if you divulge any non-public,
                                         confidential or proprietary information of the Company Group, but excluding information
                                         that (a) becomes generally available to the public other than as a result of your
                                         public use, disclosure, or fault, or (b) becomes available to you on a non-confidential
                                         basis after the date of your Termination of Employment from a source other than a member
                                         of the Company Group prior to the public use or disclosure by you, provided that
                                         such source is not bound by a confidentiality agreement or otherwise prohibited from
                                         transmitting the information by a contractual, legal or fiduciary obligation.

 

		3.	TAX
                                         WITHHOLDING. To the extent that the receipt of the Restricted Stock Units or the
                                         lapse of any Forfeiture Restrictions results in income, wages or other compensation to
                                         you for any income, employment or other tax purposes with respect to which the Company
                                         has a withholding obligation, the Company is authorized to withhold from any shares of
                                         Common Stock issued under the Agreement or from any cash or stock remuneration or other
                                         payment then or thereafter payable to you any tax required to be withheld by reason of
                                         such taxable income, wages or compensation including (without limitation) shares of the
                                         Common Stock sufficient to satisfy the withholding obligation.

 

		4.	NONTRANSFERABILITY.
                                         The Agreement is not transferable by you otherwise than by will or by the laws of
                                         descent and distribution.

 

    3

     

    

		5.	CAPITAL
                                         ADJUSTMENTS AND REORGANIZATIONS. The existence of the Restricted Stock Units will
                                         not affect in any way the right or power of the Company or any company the stock of which
                                         is awarded pursuant to the Agreement to make or authorize any adjustment, recapitalization,
                                         reorganization or other change in its capital structure or its business, engage in any
                                         merger or consolidation, issue any debt or equity securities, dissolve or liquidate,
                                         or sell, lease, exchange or otherwise dispose of all or any part of its assets or business,
                                         or engage in any other corporate act or proceeding.

 

		6.	RESTRICTED
                                         STOCK UNITS DO NOT AWARD ANY RIGHTS OF A SHAREHOLDER. You will not have the voting
                                         rights or any of the other rights, powers or privileges of a holder of the Common Stock
                                         with respect to the Restricted Stock Units that are awarded hereby. Only after a share
                                         of the Common Stock is issued in exchange for a Restricted Stock Unit will you have all
                                         of the rights of a shareholder with respect to such share of Common Stock issued in exchange
                                         for a Restricted Stock Unit.

 

		7.	EMPLOYMENT
                                         RELATIONSHIP. For purposes of the Agreement, you will be considered to be in the
                                         employment of the Company Group as long as you have an employment relationship with the
                                         Company Group. The Committee will determine any questions as to whether and when there
                                         has been a termination of such employment relationship, and the cause of such termination,
                                         under the Plan and the Committee’s determination will be final and binding on all
                                         persons.

 

		8.	NOT
                                         AN EMPLOYMENT AGREEMENT. The Agreement is not an employment agreement, and no provision
                                         of the Agreement will be construed or interpreted to create an employment relationship
                                         between you and the Company or any Affiliate or guarantee the right to remain employed
                                         by the Company or any Affiliate for any specified term.

 

		9.	SECURITIES
                                         ACT LEGEND. If you are an officer or affiliate of the Company under the Securities
                                         Act of 1933, you consent to the placing on any certificate for shares of the Common Stock
                                         issued under the Agreement an appropriate legend restricting resale or other transfer
                                         of such shares except in accordance with such Act and all applicable rules thereunder.

 

		10.	LIMIT
                                         OF LIABILITY. Under no circumstances will the Company or any Affiliate be liable
                                         for any indirect, incidental, consequential or special damages (including lost profits)
                                         of any form incurred by any person, whether or not foreseeable and regardless of the
                                         form of the act in which such a claim may be brought, with respect to the Plan.

 

		11.	DATA
                                         PRIVACY. The Company’s Human Resources Department in Houston, Texas (U.S.A.)
                                         administers and maintains the data regarding the Plan, the awardees and the restricted
                                         stock units granted to awardees for all employees in the Company Group worldwide.

 

The
data administered and maintained by the Company includes information that may be considered personal data, including the name
of the awardee, the award granted and the number of restricted units included in any award (“Employee Personal Data”).
From time to time during the course of your employment in the Company Group, the Company may transfer certain of your Employee
Personal Data to Affiliates as necessary for the

 

    4

     

    

purpose
of implementation, administration and management of your participation in the Plan (the “Purposes”), and the
Company and its Affiliates may each further transfer your Employee Personal Data to any third parties assisting the Company in
the implementation, administration and management of the Plan (collectively, “Data Recipients”). The countries
to which your Employee Personal Data may be transferred may have data protection standards that are different than those in your
home country and that offer a level of data protection that is less than that in your home country.

 

In
accepting the award of the Restricted Stock Units set forth in the Agreement, you hereby expressly acknowledge that you understand
that from time to time during the course of your employment in the Company Group the Company may transfer your Employee Personal
Data to Data Recipients for the Purposes. You further acknowledge that you understand that the countries to which your Employee
Personal Data may be transferred may have data protection standards that are different than those in your home country and that
offer a level of data protection that is less than that in your home country.

 

Further,
in accepting the award of the Restricted Stock Units set forth in the Agreement, you hereby expressly affirm that you do not object,
and you hereby expressly consent, to the transfer of your Employee Personal Data by the Company to Data Recipients for the Purposes
from time to time during the course of your employment in the Company Group.

 

		12.	RECOUPMENTS.
                                         If the Company is required to prepare an accounting restatement due to the material
                                         noncompliance of the Company with any financial reporting requirement under applicable
                                         securities laws, if you are then a current or former executive officer of the Company
                                         you will forfeit and must repay to the Company any compensation awarded under the Agreement
                                         to the extent specified in any of the Company’s compensation recoupment policies
                                         established or amended (now or in the future) in compliance with the rules and standards
                                         of the Securities and Exchange Commission Committee under or in connection with Section
                                         954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Further, if the
                                         Company is required to prepare an accounting restatement due in whole or in part to your
                                         misconduct, you will forfeit and must repay to the Company any compensation awarded under
                                         the Agreement to the extent required by the Board of Directors of the Company in accordance
                                         with the terms of the Company’s compensation recoupment policy.

 

		13.	OTHER
                                         AGREEMENTS. Nothing in these Terms and Conditions is intended to reduce the Company’s
                                         protections or your obligations under (1) any other agreement between you and the Company
                                         or any other member of the Company Group, (2) the common law, or (3) any applicable state,
                                         federal or foreign statute. 

 

		14.	GOVERNING
                                         LAW AND VENUE. The Plan, these Terms and Conditions and the award of the restricted
                                         stock units set forth in the Agreement shall be governed by the laws of the State of
                                         Texas, excluding any conflicts or choice of law rule or principle that might otherwise
                                         refer construction or interpretation of the Plan, these Terms and Conditions and the
                                         award of the restricted stock units to the substantive law of another jurisdiction. In
                                         accepting the award of the restricted stock units you are deemed to agree to submit to
                                         the exclusive jurisdiction and venue of the federal or state courts of Harris 

 

    5

     

    

County,
Texas, to resolve any and all issues that may arise out of or relate to  the Plan, these Terms and Conditions and the award
of the restricted stock units.

 

		15.	SEVERABILITY
                                         AND BLUE PENCILING. If any single Section or clause of these Terms and Conditions
                                         should be found unenforceable, it shall be severed and the remaining Sections and clauses
                                         of these Terms and Conditions shall be enforced in accordance with the intent of these
                                         Terms and Conditions. If any particular provision of these Terms and Conditions shall
                                         be adjudicated to be invalid or unenforceable, the Company and you specifically authorize
                                         the court making such determination to edit the invalid or unenforceable provision to
                                         allow these Terms and Conditions, and the provisions thereof, to be valid and enforceable
                                         to the fullest extent allowed by law or public policy.

 

		16.	MISCELLANEOUS.
                                         The Agreement is awarded pursuant to and is subject to all of the provisions of the Plan,
                                         including amendments to the Plan, if any. In the event of a conflict between these Terms
                                         and Conditions and the Plan provisions, the Plan provisions will control. The terms “you”
                                         and “your” refer to the Participant named in the Agreement. Capitalized
                                         terms that are not defined herein will have the meanings ascribed to such terms in the
                                         Plan or the Agreement. The Company’s rights under these Terms and Conditions and
                                         the Agreement may be assigned by the Company.

 

 

    6Exhibit

Exhibit 10.1

Grantee Name:        ###PARTICIPANT_NAME### ("Grantee")

Grant Name:         ###GRANT_NAME###

Grant Date:         ###GRANT_DATE### ("Grant Date")

Grant Price:         ###GRANT_PRICE###

Total ###DICTIONARY_AWARD_NAME###:         ###TOTAL_AWARDS### (subject to adjustment)

FLAGSTAR BANCORP, INC.
2016 STOCK AWARD AND INCENTIVE PLAN
RESTRICTED STOCK UNIT AND PERFORMANCE SHARE UNIT 
SENIOR EXECUTIVE OFFICER AWARD AGREEMENT

This Award Agreement (this "Agreement") is made effective at the Grant Date set forth above by and between Flagstar Bancorp, Inc., a Michigan corporation (the "Company"), and  the Grantee named above.  

WHEREAS, the Company sponsors and maintains the Flagstar Bancorp, Inc. 2016 Stock Award and Incentive Plan (the "Plan"); and

WHEREAS, the Grantee has been selected by the Board to receive a grant of Restricted Stock Units and Performance Share Units (collectively, the "Units") under the Plan.

NOW, THEREFORE, the Company and the Grantee hereby agree as follows:

Section 1.Grant of Restricted Stock Units.  The Company hereby grants to the Grantee, as of the Grant Date, an award of ###TOTAL_AWARDS### Restricted Stock Units (the "Restricted Stock Units") on the terms and conditions set forth in this Agreement and the Plan. Each Restricted Stock Unit is granted under Section 6(e) of the Plan and represents the right to receive one share of Common Stock at the times and subject to the conditions set forth herein.  Capitalized terms that are used but not defined herein have the meaning given to them in the Plan.

		
	(a)
	Vesting.  The Restricted Stock Units granted by the Company hereunder shall vest in three (3) installments in accordance with the following schedule: (a) twenty-five percent (25%) shall vest on the first anniversary of the Grant Date, (b) twenty-five percent (25%) shall vest on the second anniversary of the Grant Date, and (c) the remaining fifty percent (50%) shall vest on the third anniversary of the Grant Date (each such date, an "RSU Vesting Date"), in each case, subject to the Grantee’s continued employment through the applicable RSU Vesting Date.  Vesting of the Restricted Stock Units is additionally subject to the requirement that, at each RSU Vesting Date, the Company has a Tier 1 Leverage Ratio that is at least five percent (5%), consistent with the definition of a "well-capitalized" institution. The Tier 1 Leverage Ratio will be calculated in accordance with the requirements of the Federal Reserve, as described in FR Y-9C 

on Schedule HC-R, line 44 (or the replacement thereof). If the Company is not "well-capitalized" at an RSU Vesting Date, all RSUs that are then scheduled to vest are forfeited.  

		
	(b)
	Change in Control. In the event of a Change in Control, any unforfeited Restricted Stock Units will be governed by the provisions of Section 9 of the Plan, which describes the conditions for accelerated vesting of the Restricted Stock Units. Vesting of the Restricted Stock Units in these circumstances will occur only if the Company had remained well-capitalized (as defined above) at the close of the last full quarter preceding the Change in Control. 

		
	(c)
	Termination for Death or Disability.  Any unforfeited Restricted Stock Units shall vest immediately and fully upon the Grantee’s termination of employment due to death or Disability and be settled in accordance with Section 4. Vesting of the Restricted Stock Units in these circumstances will occur only if the Company had remained well-capitalized (as defined above) at the close of the last full quarter preceding the event of death or Disability. 

		
	(d)
	Termination for other reason than for Death or Disability. If the Grantee’s employment is voluntarily or involuntarily terminated (other than due to death or Disability) prior to the vesting of any Restricted Stock Units, any such unvested Restricted Stock Unit shall be forfeited.

		
	(e)
	Account.  The Restricted Stock Units shall be credited to a separate account maintained for the Grantee on the books and records of the Company.  All amounts credited to this account shall continue for all purposes to be part of the general assets of the Company.

Section 2.Grant of Performance Share Units.  The Company hereby grants to the Grantee, as of the Grant Date, an award of ###TOTAL_AWARDS### Performance Share Units (the "Performance Share Units") on the terms and conditions set forth in this Agreement and the Plan.  Each Performance Share Unit is granted under Sections 6(e), 6(i) and 7 of the Plan and represents the right to receive one share of Common Stock upon the attainment of performance goals established by the Committee and described in Exhibit A, and subject to the conditions set forth herein. 

		
	(a)
	Vesting.  The Performance Share Units granted by the Company hereunder shall vest one year following the end of the full Performance Period (as defined in Exhibit A) (the "PSU Vesting Date"), subject to and contingent upon (i) the Grantee’s continued employment through the PSU Vesting Date, and (ii) the Committee’s certification of the performance level attained for the Performance Period.

		
	(b)
	Change in Control. In the event of a Change in Control, the provisions of Section 9 of the Plan will apply to the Performance Share Units regarding acceleration of vesting, except that, if a Change in Control occurs prior to the end of the Performance Period any PSUs awarded will fully vest and be paid out at target performance levels. If such event occurs between the end of the Performance Period and the Vesting Date, any PSU awards will be paid at the actual performance levels certified by the Committee.  Payment will be made as soon as practicable following each such event. Awards may not fully vest in the event of a Change in Control if, in connection with the transactions resulting in the Change in Control, the Company agrees to the assumption of the PSUs or the substitution for the PSUs (or as otherwise described in the Plan).

		
	(c)
	Termination for Death or Disability.  In the event of Grantee’s termination of employment due to death or Disability:

		
	i.
	if such event occurs before the end of the applicable Performance Period the Grantee’s Performance Share Units will fully vest and be paid out at the target performance level; or

		
	ii.
	if such event occurs at or after the end of the applicable Performance Period, the Performance Share Units will be deemed to be earned at the actual performance levels certified by the Committee and such earned Units will be fully vested immediately upon termination (or, if later, upon the certification by the Committee which must occur within the applicable short-term deferral period under Section 409A of the Internal Revenue Code) and will be settled in accordance with Section 4 below. 

		
	(d)
	Termination other than for Death and Disability. If the Grantee’s employment is voluntarily or involuntarily terminated (other than due to death or Disability) prior to the vesting of a Performance Share Unit, any such unvested Performance Share Unit shall be forfeited.  

		
	(e)
	Account.  The Performance Share Units shall be credited to a separate account maintained for the Grantee on the books and records of the Company.  All amounts credited to this account shall continue for all purposes to be part of the general assets of the Company.

Section 3.Transfer Restrictions.  Until such time as the Units vest and the shares of Common Stock underlying the vested Units have been issued, the Grantee may not assign or otherwise transfer the Units or the rights relating thereto except as provided in the Plan.  Any attempt to sell, pledge, assign or otherwise transfer the Units or the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Units or the rights relating thereto will be forfeited by the Grantee and all of the Grantee's rights to such units or related shares of Common Stock shall immediately terminate without any payment or consideration by the Company.  Once the Units vest and the shares of Common Stock underlying the Units have been issued, the Grantee may not be able to sell immediately the shares of Common Stock depending on securities laws and under applicable insider trading policies of the Company.  Any inability to sell or transfer the shares of Common Stock underlying the Units will not relieve the Grantee of the obligation to pay any required withholding taxes at the time of vesting (see discussion below under "Tax Withholding"). 

Section 4.Settlement of Vested Units.  

		
	(a)
	Within thirty (30) calendar days following the vesting of any Unit, the Company shall distribute to the Grantee the number of shares of Common Stock (either in book-entry form or in any other commercially reasonable manner implemented by the Company) equal to the number of vested Units.  

		
	(b)
	All distributions in shares of Common Stock shall be in the form of whole shares of Common Stock, and any fractional share shall be distributed in cash in an amount equal to the value of such fractional share determined based on the Fair Market Value of a share of Common Stock on the applicable vesting date. 

		
	(c)
	This Agreement is subject to compliance with applicable laws, statutes, rules, regulations and policies of, and any agreements with, any regulatory authority, body or agency having jurisdiction over the Company or any of its subsidiaries, including, but not limited to, compliance with any notice, non-objection or approvals requirements set forth in any of the foregoing.

Section 5.Tax Withholding.  The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the minimum amount required to be withheld for federal, state and local taxes, domestic or foreign, including payroll taxes, in respect of the Units and to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes.  The Company shall determine the amount of such withholding.  The Committee, in its sole discretion, may require or permit the Grantee to satisfy any such tax withholding obligation by any one or a combination of the following means: 

		
	(a)
	the Grantee tendering a cash payment or check payable to the Company; and/or

		
	(b)
	the Company withholding shares of Common Stock from the shares of Common Stock otherwise issuable to the Grantee as a result of the vesting of the Restricted Stock Units; provided, however, that shares of Common Stock may be withheld with a value exceeding the minimum statutory amount of tax required to be withheld by law only in accordance with a procedure or policy adopted by the Committee and in effect at the time of vesting.  

Section 6.Rights as Stockholder.  Except as otherwise provided in the Agreement, the Grantee shall not have any of the rights or privileges of a stockholder with respect to the shares of Common Stock underlying the Units, including but not limited to rights to vote the shares of Common Stock or to receive dividends on the shares of Common Stock, unless and until the Units vest and certificates or other evidence of ownership representing such shares of Common Stock (which may be in book-entry form) have been issued and recorded on the records of the Company, and delivered to the Grantee.  After such issuance, recordation and delivery, Grantee will have the rights of a stockholder of the Company with respect to such shares of Common Stock, subject to any restrictions on the shares of Common Stock and the terms and conditions of the Stockholder’s Agreement.

Section 7.No Right to Continued Service.  Neither the Plan nor this Agreement shall confer upon the Grantee any right to continue as an employee of the Company.  Further, nothing in the Plan or this Agreement shall be construed to limit the right of the Company to terminate Grantee’s employment at any time, with or without cause. 

Section 8.Adjustments.  The number of Units subject to this Award and related terms will be subject to adjustment in accordance with Section 11(c) of the Plan under a variety of circumstances, including but not limited to splits or other corporate events. Any adjustment made by the Committee shall be conclusive, final and binding.  For clarity, no dividend equivalents will be paid or credited on the Units relating to ordinary dividends paid by the Company.

Section 9.Restrictive Covenants.  The Grantee acknowledges and agrees that the services provided by the Grantee to the Company and its Affiliates including, but not limited to, Flagstar Bank, FSB (the "Bank"), are of a special, unique and extraordinary nature, and that the restrictions contained in this Section are necessary to prevent the use and disclosure of Confidential Information and to protect other legitimate business interests of the Company and its Affiliates.  The Grantee acknowledges that all of the restrictions in this Section 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 Section are unreasonable or overbroad, the Company and the Grantee 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 Grantee agrees that the restrictions contained in this Section shall be construed as separate agreements independent of any other provision of this Agreement or any other agreement between the Grantee and the Company or its Affiliates. 

		
	(a)
	Confidentiality.  In the course of the Grantee’s performing Grantee’s duties for the Company and its Affiliates, the Company expects to provide Grantee with various proprietary, confidential and trade secret information of the Company and its Affiliates.  Such proprietary, confidential and trade secret information may include, but not be limited to, any database of customer accounts; any 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 any particular time developing or marketing the same.  The Grantee acknowledges that the Confidential Information is a valuable, special and unique asset of the Company and its Affiliates and that Grantee’s 

access to and knowledge of the Confidential Information is essential to the performance of Grantee’s duties as an employee of the Company and its Affiliates.  In light of the competitive nature of the business in which the Company and its Affiliates are engaged, the Grantee agrees that Grantee will, both during Grantee’s employment or service with the Company and its Affiliates and thereafter, maintain the strict confidentiality of all Confidential Information known or obtained by him or to which Grantee has access in connection with Grantee’s employment by or service with the Company and that Grantee 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 Grantee’s duties hereunder) or (ii) make any use of any Confidential Information for Grantee’s own purposes or for the direct or indirect benefit of any person or entity other than the Company or its Affiliates.  Confidential Information shall not be deemed to include information that (w) becomes generally available to the public through no fault of Grantee, (x) is previously known by the Grantee prior to Grantee’s receipt of such information from the Company, (y) becomes available to Grantee on a non-confidential basis from a source which, to Grantee’s knowledge, is not prohibited from disclosing such information by legal, contractual or fiduciary obligation to the Company or (z) is required to be disclosed in order to comply with any applicable law or court order. Immediately upon termination of the Grantee’s employment or at any other time upon the Company’s request, the Grantee will return to the Company all memoranda, notes and data, computer software and hardware, records or other documents compiled by Grantee or made available to the Grantee during the Grantee’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. Notwithstanding the foregoing, in certain limited circumstances described in the Company’s Confidentiality Guidelines, Grantee may disclose Confidential Information that consists of materials that would otherwise be subject to trade secret protection.

		
	(b)
	No Competition.  For a period of one (1) year following the Grantee’s voluntary termination of employment with the Company or its Affiliates, but only if the Grantee has vested in some portion of the Units, the Grantee agrees that the Grantee shall not, on behalf of the Grantee or for others, directly or indirectly (whether as employee, consultant, investor, partner, sole proprietor or otherwise), be employed by, have an ownership interest in, or perform any services for a financial institution engaged in the same lines of business as the Company or its Affiliates ("Business of the Company") in any state of the United States where the Company is doing business. The parties agree that this provision shall not prohibit the ownership by the Grantee, solely as an investment, of securities of a person engaged in the Business of the Company if (i) the Grantee is not an "affiliate" (as such term is defined in Rule 12b-2 of the regulations promulgated under the Exchange Act) of the issuer of such securities, (ii) such securities are publicly traded on a national securities exchange and (iii) the Grantee does not, directly or indirectly, beneficially own more than two percent (2%) of the class of which such securities are a part.  

		
	(c)
	No Solicitation of Employees.  The Grantee agrees that, both during the Grantee’s employment with the Company and for a period of one (1) year following termination of the Grantee’s employment with the Company or its Affiliates for any reason, the Grantee will not, directly or indirectly, on behalf of the Grantee 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 (6) months preceding the Grantee’s termination of employment with the Company was actively employed) by the Company or its Affiliates, except for rehire by the Company or its Affiliates. 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.

		
	(d)
	No Solicitation of Customers.  The Grantee agrees that, both during the Grantee’s employment with the Company and for a period of one (1) year following termination of the Grantee’s employment with the Company and its Affiliates for any reason, the Grantee will not directly, on behalf of any competitor of 

the Company or its Affiliates in the Business of the Company, solicit the business of any entity within the United States who is known by the Grantee to be a customer of the Company or its Affiliates.

		
	(e)
	Survival.  The obligations and provisions contained in this Section shall survive the Grantee’s separation from service and this Agreement and shall be fully enforceable thereafter.

Section 10.Company Policies; Forfeiture.

		
	(a)
	The Grantee agrees that the grant of Restricted Stock Units and Performance Share Units  and the shares of Common Stock issued upon vesting of the Units will be subject to any applicable clawback or recoupment policies, insider trading policies, policies related to confidential information and assignment of intellectual property, stock ownership guidelines and other policies that may be implemented or updated by the Company, from time to time. 

		
	(b)
	Notwithstanding anything to the contrary in this Agreement or the Plan, the Grantee agrees that if either (i) Grantee is terminated by the Company with Cause or (ii), during the Grantee’s employment or other service with the Company or an Affiliate and thereafter, Grantee violates any of the restrictive covenants under Section 9 above, irrespective of whether the restrictive covenant is enforceable under applicable law, then immediately upon demand by the Company made within 90 days of the Company’s receipt of actual notice of the violation, any unvested Units shall be cancelled and the Grantee shall return to the Company all shares of Common Stock delivered in settlement of the Units, or the cash value received by the Grantee upon the sale of such shares, to the extent the foregoing were realized or received in the twenty-four months prior to Grantee’s termination. 

Section 11.Notices.  Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery, upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid or upon deposit with a reputable overnight courier.  Notice shall be addressed to the Company at its principal executive office and to the Grantee at the address most recently provided by the Grantee to the Company.

Section 12.Incorporation of Plan Terms.  The provisions of the Plan are incorporated by reference into these terms and conditions.  To the extent any provision of this Agreement conflicts with the Plan, the terms of the Plan shall govern.  The Grantee acknowledges receipt of a copy of the Plan and represents that the Grantee has reviewed the Plan and is familiar with the terms and provisions thereof.  The Grantee hereby accepts this Agreement and the terms of the Plan.

Section 13.Successors and Assigns.  This Agreement is personal to the Grantee and shall not be assignable by the Grantee other than by will or the laws of descent and distribution, without the written consent of the Company.  This Agreement shall inure to the benefit of and be enforceable by the Grantee’s legal representatives.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors.  It shall not be assignable by the Company except in connection with the sale or other disposition of all or substantially all the assets or business of the Company.

Section 14.No Impact on Other Benefits.  The value of the Grantee's Units is not part of the Grantee’s compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

Section 15.Discretionary Nature of Plan.  The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion.  The grant of the Units in this Agreement does not create any contractual right or other right to receive any Units or other awards or grants in the future.  Future awards, if any, will be at the sole discretion of the Committee.  Any amendment, modification, or termination of the Plan 

shall not constitute a change or impairment of the terms and conditions of the Grantee's employment with the Company or its Affiliates.

Section 16.Amendment.  The Committee shall have authority, subject to the express provisions of the Plan, to interpret this Agreement and the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, to modify the terms and provisions of this Agreement, and to make all other determinations in the judgment of the Committee necessary or desirable for the administration of the Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in this Agreement in the manner and to the extent it shall deem necessary or desirable to carry it into effect.  All action by the Committee under the provisions of this Section shall be final, conclusive and binding for all purposes.  Any amendment to this Agreement shall be in writing signed by the Company and, if the amendment materially impairs the rights of the Grantee, by the Grantee.

Section 17.Code Section 409A.  This Agreement and the award of Units hereunder are intended to be exempt from the requirements of Section 409A of the Code, and shall be interpreted and administered in accordance with such intent.  Notwithstanding anything in the Plan or this Agreement to the contrary, the Grantee shall be solely responsible for the tax consequences of the Units, and in no event shall the Company have any responsibility or liability if an award under the Plan is subject to and/or fails to comply with the requirements of Code Section 409A.

Section 18.Code Section 280G.  If a Change in Control occurs and payments are made under this Agreement, and the aggregate of the RSUs and PSUs awarded to Grantee that vest under this Agreement, and all payments under any other agreement, plan, program or policy of the Company in connection with such Change in Control ("Total Payments") will be subject to an excise tax under the provisions of Code Section 4999 ("Excise Tax"), the Total Payments shall be reduced so that the maximum amount of the Total Payments (after reduction) will be one dollar ($1.00) less than the amount that would cause the Total Payments to be subject to the Excise Tax; provided, however, that the Total Payments shall only be reduced to the extent the after-tax value of amounts received by Grantee after application of the above reduction would exceed the after-tax value of the Total Payments received by Grantee without application of such reduction.  In making any determination as to whether the Total Payments would be subject to an Excise Tax, consideration shall be given to whether any portion of the Total Payments could reasonably be considered, based on the relevant facts and circumstances, to be reasonable compensation for services rendered (whether before or after the consummation of the applicable Change in Control).

Section 19.Entire Agreement.  This Agreement constitutes the entire contract between the parties hereto with regard to the subject matter hereof.  This Agreement supersedes any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.  

Section 20.Severability.  If any provision of this Agreement for any reason should be found by any court of competent jurisdiction to be invalid, illegal or unenforceable, in whole or in part, such declaration shall not affect the validity, legality or enforceability of any remaining provision or portion hereof, which remaining provision or portion hereof shall remain in full force and effect as if this Agreement had been adopted with the invalid, illegal or unenforceable provision or portion hereof eliminated.

Section 21.Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Michigan, as such laws are applied to contracts entered into and performed in such State, without giving effect to the choice of law provisions thereof.  The jurisdiction and venue for any disputes arising under, or any action brought to enforce the terms of, this Agreement shall be resolved exclusively in the courts of the State of Michigan, including the Federal Courts located therein (should Federal jurisdiction exist). 

Section 22.Counterparts.  This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute but one and the same instrument.

Section 23.Acceptance.  As a condition of receiving this Award, the Grantee agrees that the Committee, and to the extent that authority is afforded to the Board, the Board, shall have full and final authority to construe and interpret the Plan and this Agreement, and to make all other decisions and determinations as may be required under the Plan or this Agreement as they may deem necessary or advisable for administration of the Plan or this Agreement, and that all such interpretations, decisions and determinations shall be final and binding on the Grantee, the Company and all other interested persons.  Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Committee for review.  The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company.  

This Agreement is executed by the Company and the Grantee as of the date and year first written above.
	
			
	GRANTEE
	FLAGSTAR BANCORP, INC.

	________________________________
	By:
	Christine M. Reid

	 
	Its:
	Corporate Secretary

ACKNOWLEDGEMENT OF INSIDER TRADING LAWS AND POLICY
NOTE:  OUR INSIDER TRADING POLICY ADDRESSES VERY SERIOUS MATTERS.  IF YOU HAVE ANY QUESTION OR DOUBT ABOUT THE APPLICABILITY OR INTERPRETATION OF THIS POLICY, PLEASE SEEK CLARIFICATION FROM OUR GENERAL COUNSEL. 

The undersigned acknowledges that he/she has reviewed the Company’s Insider Trading Policy (the "Policy"), and will review any amendments to the Policy.  The current Policy and any amendments will be maintained and available on the My Flagstar intranet.  The undersigned agrees to comply with the restrictions and procedures contained in the Policy, as it may be amended from time to time.

__________________________________________                        
Signature
    
__________________________________________                    
Name
                        
__________________________________________
Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]