Document:

Exhibit 10.1 

 

REDWOOD TRUST, INC.

 

DEFERRED STOCK UNIT AWARD AGREEMENT

 

 

DEFERRED STOCK UNIT
AWARD AGREEMENT dated as of the [Date] day of [Month] [Year] (the “Award
Agreement”), by and between Redwood Trust, Inc., a Maryland corporation (the “Company”), and [First
Name] [Last Name], an employee, consultant or non-employee director of the Company (the “Participant”).
References to the Company herein shall include the subsidiaries and Affiliates (as defined in Exhibit A).

 

Pursuant to the Redwood
Trust, Inc. Amended and Restated 2014 Incentive Award Plan (as may be amended from time to time, the “Plan”),
the Compensation Committee (the “Committee”) of the Board of Directors of the Company has determined that the
Participant is to be granted an award of Deferred Stock Units for shares of the Company’s common stock, par value $0.01 per
share (“Common Stock”), on the terms and conditions set forth herein (the “Award”), and the
Company hereby grants such Award.   Any capitalized terms not defined herein shall have the meaning set forth in the
Plan.

 

1.           Number
of Shares Awarded.  This Award entitles the Participant to receive [Number of shares (_____)] shares
of Common Stock (the “Award Shares”), in connection with the expiration of the Restricted Period described below.

 

2.           Dividends.  In
accordance with Section 10.4 of the Plan, the number of Award Shares set forth in Section 1 shall not be adjusted to reflect the
payment of regular cash dividends declared on Common Stock during the Restricted Period.  The Participant will instead
be entitled to a Dividend Equivalent (each, a “DER”) for each Award Share pursuant to which the Participant
will be entitled to receive, pursuant to the Plan, an amount equal to the aggregate regular cash dividends with a record date after
the Grant Date (as defined below) and prior to the date the Award Share is settled or forfeited that would have been payable to
the Participant with respect to the share of Common Stock underlying the Award Share had it been outstanding on the applicable
record date. DERs shall remain outstanding from the Grant Date until the earlier of the payment or forfeiture of the underlying
Award Share, at which point, the corresponding DER will be forfeited. Any amounts that may become payable in respect of this Section
2 shall be paid as and when the dividends in respect of which such DER payments arise are paid to holders of Common Stock, without
regard to the vested status of the underlying Award Share. Any amounts that may become payable in respect of this Section 2 shall
be treated separately from the Award Shares and the rights arising in connection therewith for purposes of Section 409A of the
Code.

 

3.           Vesting
and Restricted Periods.  

 

		(a)	The Award Shares shall vest on the following schedule:

 

  As of [1st
year + 1 month anniversary of the date of this Award Agreement], 25%;

 

 
At the beginning of each subsequent calendar quarter (beginning [January 1, April 1, July 1 or October 1 following the 1st
year anniversary of this Award Agreement, as applicable]), 6.25%; and

 

 
All Award Shares shall be fully vested as of [One day before the 4th year anniversary of the date of this Award Agreement].

 

Award Shares that
have become vested pursuant to this Section 3 are referred to as “Vested Award Shares”.  The period
from the date of this Award to the applicable date or dates specified for delivery of such shares is referred to as the “Restricted
Period”. Vested Award Shares shall not be forfeited in the event of the Participant’s Termination of Service but
shall remain outstanding to be settled in accordance with Section 3(f) below.

 

     

     

    

 

(b)               
Upon the Participant’s Termination of Service due to Disability or death or a Qualifying CIC Termination (as defined below),
in any such case, prior to the expiration of the vesting period in Section 3(a), any Award Shares not vested at the time of such
termination shall immediately vest and shall not be forfeited. Notwithstanding anything herein or in the Plan, for purposes of
this Section 3(c), a “Disability” shall only exist if the Participant is “disabled” within the meaning
of Section 409A of the Code.

 

(c)                
Upon the Participant’s Termination of Service due to Retirement (as defined below) on or following the one-year anniversary
of the Grant Date (as defined below), any Award Shares not vested at the time of such termination shall immediately vest and shall
not be forfeited. Upon the Participant’s Termination of Service due to Retirement prior to the one-year anniversary of the
Grant Date, a number of Award Shares not vested at the time of such Termination of Service shall vest such that the total number
of Award Shares vested with respect to this Award equals the total number of Award Shares, pro-rated based on (x) the number of
days from the Grant Date through the date on which the Participant experiences a Termination of Service due to Retirement, divided
by (y) 365, and such pro-rata portion of the Award Shares shall not be forfeited.

 

(d)               
Upon the Participant’s Termination of Service prior to the expiration of the vesting period in Section 3(a), any Award Shares
not vested at the time of such termination (after taking into account any vesting that occurs in connection with such Termination
of Service), shall be forfeited.

 

(e)                
The Restricted Period shall expire on the day prior to the fourth anniversary of the Grant Date. The Company shall deliver to the
Participant the Vested Award Shares. Such payment shall be made within 30 days following the first to occur of (i) a “change
in control event” of the Company (within the meaning of Section 409A of the Code), (ii) the Participant’s death, (iii)
the Participant’s “separation from service” from the Company (within the meaning of Section 409A of the Code)
and (iv) the last day of the Restricted Period. Notwithstanding anything to the contrary contained herein, the exact payment date
of any Vested Award Shares shall be determined by the Company in its sole discretion (and the Participant shall not have a right
to designate the time of payment).

 

(f)                 
For purposes of this Agreement, the following terms have the meanings set forth below:

 

(i)        A
 “Qualifying CIC Termination” means the Participant’s Termination of Service by the Company without Cause
or by the Participant for Good Reason, in either case, on or within twenty-four (24) months following a Change in Control (as defined
in the Plan).

 

(ii)       “Cause”
shall have such meaning defined in the Participant’s employment agreement with the Company or, if no such agreement exists
or does exist but does not contain such a definition, shall mean: (i) the Participant’s failure to competently perform the
Participant’s job or duties to the Company, as reasonably determined by the Company, which failure shall continue for thirty
(30) days after written notice thereof by the Company to the Participant; (b) any act of negligence or misconduct by the Participant
that has had or is reasonably likely to have an adverse effect on, or has injured or harmed or is reasonably likely to injure or
harm, the Company or any of its business affairs, reputation, counterparties, employees, agents or vendors; (c) the Participant’s
breach of any fiduciary duty or obligation to the Company; (d) (A) the Participant’s breach of any Company policy (including
any code of conduct or harassment policies), which is reasonably likely to have an adverse effect on, or has injured or harmed
or is reasonably likely to injure or harm, the Company or (B) any breach by the Participant of an agreement with the Company; (e)
the Participant’s commission of, indictment for, or plea of nolo contendere to, a felony or any other crime involving moral
turpitude; (f) the Participant’s theft, misappropriation, or embezzlement, or attempted theft, misappropriation, or embezzlement,
of money or tangible or intangible assets or property of the Company or any of its employees, customers, clients, or others having
business relations with any of them; (g) any act of moral turpitude, dishonesty, or similar behavior by the Participant injurious
to the interests, property, operations, business or reputation of the Company; or (h) the Participant’s unauthorized use
or disclosure of trade secrets or confidential or proprietary information of the Company or pertaining to any of its business or
operations.

 

     

     

    

 

(iii)       “Good
Reason” shall have such meaning defined in the Participant’s employment agreement with the Company or, if no such
agreement exists or does exist but does not contain such a definition, shall mean the occurrence of any one or more of the following
events, without the Participant’s prior written consent: (i) a material reduction (at the direction of the Company) in the
value of the Participant’s total compensation package (salary, wages, bonus opportunity, equity or other long-term incentive
award opportunities, and benefits) if such a reduction is not linked to the performance of the Company or one or more of its business
units or subsidiaries or made in proportion to an across-the-board reduction for all similarly-situated employees of the Company
or the applicable business unit or employing subsidiary; or (ii) the relocation of the Participant’s principal Company office
to a location more than 25 miles from its location as of the date of the Participant’s Participation Notice, except for required
travel on the Company’s business to the extent necessary to fulfill the Participant’s obligations to the Company or
any of its subsidiaries or affiliates.  Notwithstanding the foregoing, the Participant will not be deemed to have resigned
for Good Reason unless (1) the Participant provides the Company with written notice setting forth in reasonable detail the facts
and circumstances claimed by the Participant to constitute Good Reason within 90 days after the date of the occurrence of any event
that the Participant knows or should reasonably have known to constitute Good Reason, (2) the Company fails to cure such acts or
omissions within 30 days following its receipt of such notice, and (3) the effective date of the Participant’s termination
for Good Reason occurs no later than 30 days after the expiration of the Company’s cure period.

 

(iv)        “Grant
Date” means the date first written above in this Agreement.

 

(v)        “Retirement”
shall mean a Termination of Service due to retirement (as determined by the Committee in its sole discretion) if such Termination
of Service (i) occurs on or after the completion by the Participant of ten (10) years of employment with the Company (which need
not be continuous) and (ii) the sum of the Participant’s age and years of service as an Employee equals or exceeds seventy
(70) (in each case measured in years, rounded down to the nearest whole number). Notwithstanding the generality of the foregoing,
a Termination of Service shall only constitute a Retirement if the Participant provides the Company with at least [insert #] months’
written notice of his or her anticipated retirement (which notice period may be up to 12 months, based on the Participant’s
position with the Company at the time of such anticipated retirement).

 

4.           At-Will
Employment.  This Award Agreement is not an employment contract and nothing in this Award Agreement shall be
deemed to create in any way whatsoever any obligation of the Participant to continue as an Employee, Consultant or Director of
the Company or on the part of the Company to continue the employment or other service relationship of the Participant with the
Company.  It is understood and agreed to by the Participant that the Award and participation in the Plan does not alter
the at-will nature of the Participant’s relationship with the Company (subject to the terms of any separate employment agreement
the Participant may have with the Company).  The at-will nature of the Participant’s relationship with the Company
can only be altered by a writing signed by both the Participant and the Chief Executive Officer or the President of the Company.

 

5.           Notices.  Any
notice required or permitted under this Award Agreement shall be deemed given when delivered personally, or when deposited in a
United States Post Office, postage prepaid, addressed, as appropriate, to the Participant either at the Participant’s address
set forth below or such other address as the Participant may designate in writing to the Company, and to the Company:  Attention:  General
Counsel, at the Company’s address or such other address as the Company may designate in writing to the Participant.

 

6.           Failure
to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of this Award Agreement
shall in no way be construed to be a waiver of such provision or of any other provision hereof.

 

     

     

    

 

7.        Restrictive
Covenants; Arbitration. The Participant agrees and acknowledges that the Participant’s right to receive and retain
the Award Shares and any DER payments is subject to and conditioned upon the Participant’s continued compliance with the
restrictive covenants contained in Exhibit A attached hereto. In addition, the Participant agrees and acknowledges that
any dispute arising with respect to this Award and this Award Agreement will be subject to the Alternative Dispute Resolution provisions
set forth in an Employment and Confidentiality Agreement (or any other arbitration or alternative dispute resolution provisions
or agreements) by and between the Participant and the Company.

 

8.        Existing
Agreements.  This Award Agreement does not supersede nor does it modify any existing agreements between the Participant
and the Company.

 

9.        Incorporation
of Plan.  The Plan is incorporated by reference and made a part of this Award Agreement, and this Award Agreement
is subject to all terms and conditions of the Plan as in effect from time to time.  

 

10.      Amendments.   This
Award Agreement may be amended or modified at any time by an instrument in writing signed by the parties hereto.  

 

11.     Withholding.   The
Company shall withhold, or cause to be withheld, amounts payable in respect of Award Shares in satisfaction of any applicable withholding
tax obligations. Amounts which may be so withheld shall be no greater than the aggregate amount of such liabilities based on the
maximum individual statutory withholding rates in the Participant’s applicable jurisdictions for federal, state, local and
foreign income tax and payroll tax purposes that are applicable to such taxable income.

 

12.      Section
409A. Notwithstanding anything to the contrary contained in this Award Agreement, this Award Agreement is intended to comply
with Section 409A of the Code and this Award Agreement and the Plan shall be interpreted in a manner consistent with such intent,
and any provisions of this Award Agreement or the Plan that would cause the Award to fail to satisfy the requirements for an effective
deferral of compensation under Section 409A of the Code shall have no force and effect. Notwithstanding anything to the contrary
in this Award Agreement, no amounts shall be paid to the Participant under this Award Agreement during the six (6)-month period
following the Participant’s “separation from service” (within the meaning of Section 409A of the Code) to the
extent that the Administrator determines that the Participant is a “specified employee” (within the meaning of Section
409A of the Code) at the time of such separation from service and that paying such amounts at the time or times indicated in this
Award Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts
is delayed as a result of the previous sentence, then on the first business day following the end of such six (6)-month period
(or such earlier date upon which such amount can be paid under Section 409A of the Code without being subject to such additional
taxes), the Company shall pay to the Participant in a lump-sum all amounts that would have otherwise been payable to the Participant
during such six (6)-month period under this Award Agreement.

 

[Signature page follows]

 

     

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Award Agreement on the day and year first above written.

 

	 	REDWOOD TRUST, INC.
	 	 	 
	 	By:	 
	 	 	[Andrew P. Stone]
	 	 	[General Counsel & Secretary]
	 	 	One Belvedere Place, Suite 300
	 	 	Mill Valley, CA  94941
	 	 	 
	 	
        

        The undersigned hereby accepts and agrees
        to all the terms and provisions of this Award Agreement and to all the terms and provisions of the Plan herein incorporated by
        reference.

	 	
         

	 	 
	 	[First Name] [Last Name]
	 	c/o Redwood Trust, Inc.
	 	One Belvedere Place, Suite 300
	 	Mill Valley, CA  94941

 

     

     

    

 

EXHIBIT A - Restrictive Covenants

 

		1.	Non-Disparagement. While providing services to the Company and thereafter, the Participant
agrees not to make negative comments or statements about, or otherwise criticize or disparage, in any format or through any medium,
the Company or any entity controlled by, controlling or under common control with the Company (“Affiliates”)
or any of the officers, directors, managers, employees, services, operations, investments or products of the Company or any of
its Affiliates. For purposes of the foregoing sentence, disparagement shall include, but not be limited to, negative comments or
statements intended or reasonably likely to be harmful or disruptive to a person’s or entity’s respective business,
business reputation, business operations, or personal reputation.

 

		2.	Non-Solicitation. While providing services to the Company and, for a period of one (1) year
thereafter, the Participant shall not directly or indirectly solicit, induce, or encourage any employee or consultant of any member
of the Company and its subsidiaries or Affiliates to terminate their employment or other relationship with the Company and its
Affiliates or to cease to render services to any member of the Company and its subsidiaries or Affiliates and the Participant shall
not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate with the taking of any such
actions by any other individual or entity. While providing services to the Company and thereafter, the Participant shall not use
any confidential information or trade secret of the Company or its subsidiaries or Affiliates to solicit, induce, or encourage
any customer, client, vendor, or other party doing business with any member of the Company and its subsidiaries or Affiliates to
terminate its relationship therewith or transfer its business from any member of the Company and its subsidiaries or Affiliates
and the Participant shall not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate
with the taking of any such actions by any other individual or entity.

 

		3.	Confidentiality. The Participant shall keep secret and retain in the strictest confidence
all confidential, proprietary and non-public matters, tangible or intangible, of or related to the Company, its stockholders, subsidiaries,
affiliates, successors, assigns, officers, directors, attorneys, fiduciaries, representatives, employees, licensees and agents
including, without limitation, trade secrets, business strategies and operations, seller, counterparty and customer lists, manufacturers,
vendors, material suppliers, financial information, personnel information, legal advice and counsel obtained from counsel, information
regarding litigation, actual, pending or threatened, research and development, identities and habits of employees and agents and
business relationships, and shall not disclose them to any person, entity or any federal, state or local agency or authority, except
as may be required by law; provided that, in the event disclosure is sought as a result of any subpoena or other legal process
initiated against the Participant, the Participant shall immediately give the Company’s General Counsel written notice thereof
in order to afford the Company an opportunity to contest such disclosure (such notice to be delivered to: Redwood Trust, Inc.,
One Belvedere Place, Suite 300, Mill Valley, CA, 94941, Attn: General Counsel).

 

		4.	Exceptions. Nothing herein shall prohibit or restrict the Participant from: (i) making any
disclosure of information required by law; (ii) providing information to, or testifying or otherwise assisting in any investigation
or proceeding brought by, any federal or state regulatory or law enforcement agency or legislative body, any self-regulatory organization,
or the Company’s Human Resources, Legal, or Compliance Departments; (iii) testifying, participating in or otherwise assisting
in a proceeding relating to an alleged violation of the Sarbanes-Oxley Act of 2002, any federal, state or municipal law relating
to fraud or any rule or regulation of any self-regulatory organization; or (iv) filing a charge with, reporting possible violations
to, or participating or cooperating with the Securities and Exchange Commission or any other federal, state or local regulatory
body or law enforcement agency (each a “Governmental Agency”). Nothing herein shall be construed to limit the
Participant’s right to receive an award for any information provided to a Governmental Agency in relation to any whistleblower,
anti-discrimination, or anti-retaliation provisions of federal, state or local law or regulation. In addition, notwithstanding
the foregoing obligations, pursuant to 18 U.S.C. § 1833(b), the Participant understands and acknowledges that the Participant
shall not be held criminally or civilly liable under any U.S. federal or state trade secret law for the disclosure of a trade secret
that is made: (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney,
and solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal and protected from public disclosure. Nothing in this
Agreement is intended to conflict with 18 U.S.C. § 1833(b)
or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).

 

    A-1Exhibit 10.2 

 

REDWOOD TRUST, INC.

 

DEFERRED STOCK UNIT AWARD AGREEMENT (CASH-SETTLED)

 

DEFERRED STOCK UNIT
AWARD AGREEMENT (CASH-SETTLED) dated as of the [Date] day of [Month] [Year] (the
 “Award Agreement”), by and between Redwood Trust, Inc., a Maryland corporation (the “Company”),
and [First Name] [Last Name], an employee, consultant or non-employee director of the Company (the
 “Participant”). References to the Company herein shall include the subsidiaries and Affiliates (as defined in
Exhibit A).

 

Pursuant to the Redwood
Trust, Inc. Amended and Restated 2014 Incentive Award Plan (as may be amended from time to time, the “Plan”),
the Compensation Committee (the “Committee”) of the Board of Directors of the Company has determined that the
Participant is to be granted an award of Deferred Stock Units covering shares of the Company’s common stock, par value $0.01
per share (“Common Stock”), on the terms and conditions set forth herein (the “Award”), and
the Company hereby grants such Award.  Any capitalized terms not defined herein shall have the meaning set forth in the
Plan.

 

1.           Number
of Shares Awarded.  This Award entitles the Participant to receive a cash payment in respect of [Number
of shares (_____)] shares of Common Stock (the “Award Shares”), in connection with the expiration of
the Restricted Period described below.

 

2.           Dividends.  In
accordance with Section 10.4 of the Plan, the number of Award Shares set forth in Section 1 shall not be adjusted to reflect the
payment of regular cash dividends declared on Common Stock during the Restricted Period.  The Participant will instead
be entitled to a Dividend Equivalent (each, a “DER”) for each Award Share pursuant to which the Participant
will be entitled to receive, pursuant to the Plan, an amount equal to the aggregate regular cash dividends with a record date after
the Grant Date (as defined below) and prior to the date the Award Share is settled or forfeited that would have been payable to
the Participant with respect to the share of Common Stock underlying the Award Share had it been outstanding on the applicable
record date. DERs shall remain outstanding from the Grant Date until the earlier of the payment or forfeiture of the underlying
Award Share, at which point, the corresponding DER will be forfeited. Any amounts that may become payable in respect of this Section
2 shall be paid as and when the dividends in respect of which such DER payments arise are paid to holders of Common Stock, without
regard to the vested status of the underlying Award Share. Any amounts that may become payable in respect of this Section 2 shall
be treated separately from the Award Shares and the rights arising in connection therewith for purposes of Section 409A of the
Code.

 

3.           Vesting
and Restricted Periods.  

 

		(a)	 The Award Shares shall vest on the following schedule:

 

  As of [1st
year + 1 month anniversary of the date of this Award Agreement], 25%;

 

 
At the beginning of each subsequent calendar quarter (beginning [January 1, April 1, July 1 or October 1 following the 1st
year anniversary of this Award Agreement, as applicable]), 6.25%; and

 

 
All Award Shares shall be fully vested as of [One day before the 4th year anniversary of the date of this Award Agreement].

 

Award Shares that
have become vested pursuant to this Section 3 are referred to as “Vested Award Shares”.  The period
from the date of this Award to the applicable date or dates specified for delivery of such shares is referred to as the “Restricted
Period”. Vested Award Shares shall not be forfeited in the event of the Participant’s Termination of Service but
shall remain outstanding to be settled in accordance with Section 3(f) below.

 

     

     

    

 

(b)               
Upon the Participant’s Termination of Service due to Disability or death or a Qualifying CIC Termination (as defined below),
in any such case, prior to the expiration of the vesting period in Section 3(a), any Award Shares not vested at the time of such
termination shall immediately vest and shall not be forfeited. Notwithstanding anything herein or in the Plan, for purposes of
this Section 3(c), a “Disability” shall only exist if the Participant is “disabled” within the meaning
of Section 409A of the Code.

 

(c)                
Upon the Participant’s Termination of Service due to Retirement (as defined below) on or following the one-year anniversary
of the Grant Date (as defined below), any Award Shares not vested at the time of such termination shall immediately vest and shall
not be forfeited. Upon the Participant’s Termination of Service due to Retirement prior to the one-year anniversary of the
Grant Date, a number of Award Shares not vested at the time of such Termination of Service shall vest such that the total number
of Award Shares vested with respect to this Award equals the total number of Award Shares, pro-rated based on (x) the number of
days from the Grant Date through the date on which the Participant experiences a Termination of Service due to Retirement, divided
by (y) 365, and such pro-rata portion of the Award Shares shall not be forfeited.

 

(d)                
Upon the Participant’s Termination of Service prior to the expiration of the vesting period in Section 3(a), any Award Shares
not vested at the time of such termination (after taking into account any vesting that occurs in connection with such Termination
of Service) shall be forfeited.

 

(e)                
The Restricted Period shall expire on the day prior to the fourth anniversary of the Grant Date. The Company shall pay to the Participant,
in settlement of the Vested Award Shares, an amount in cash equal to the Fair Market Value of a share of Common Stock on the last
day of the Restricted Period multiplied by number of Vested Award Shares. Such settlement payment shall be made within 30 days
following the first to occur of (i) a “change in control event” of the Company (within the meaning of Section 409A
of the Code), (ii) the Participant’s death, (iii) the Participant’s “separation from service” from the
Company (within the meaning of Section 409A of the Code) and (iv) the last day of the Restricted Period. Notwithstanding anything
to the contrary contained herein, the exact settlement payment date of such amounts with respect to the Vested Award Shares shall
be determined by the Company in its sole discretion (and the Participant shall not have a right to designate the time of payment).

 

(f)                 
For purposes of this Agreement, the following terms have the meanings set forth below:

 

(i)        A
 “Qualifying CIC Termination” means the Participant’s Termination of Service by the Company without Cause
or by the Participant for Good Reason, in either case, on or within twenty-four (24) months following a Change in Control (as defined
in the Plan).

 

(ii)       “Cause”
shall have such meaning defined in the Participant’s employment agreement with the Company or, if no such agreement exists
or does exist but does not contain such a definition, shall mean: (i) the Participant’s failure to competently perform the
Participant’s job or duties to the Company, as reasonably determined by the Company, which failure shall continue for thirty
(30) days after written notice thereof by the Company to the Participant; (b) any act of negligence or misconduct by the Participant
that has had or is reasonably likely to have an adverse effect on, or has injured or harmed or is reasonably likely to injure or
harm, the Company or any of its business affairs, reputation, counterparties, employees, agents or vendors; (c) the Participant’s
breach of any fiduciary duty or obligation to the Company; (d) (A) the Participant’s breach of any Company policy (including
any code of conduct or harassment policies), which is reasonably likely to have an adverse effect on, or has injured or harmed
or is reasonably likely to injure or harm, the Company or (B) any breach by the Participant of an agreement with the Company; (e)
the Participant’s commission of, indictment for, or plea of nolo contendere to, a felony or any other crime involving moral
turpitude; (f) the Participant’s theft, misappropriation, or embezzlement, or attempted theft, misappropriation, or embezzlement,
of money or tangible or intangible assets or property of the Company or any of its employees, customers, clients, or others having
business relations with any of them; (g) any act of moral turpitude, dishonesty, or similar behavior by the Participant injurious
to the interests, property, operations, business or reputation of the Company; or (h) the Participant’s unauthorized use
or disclosure of trade secrets or confidential or proprietary information of the Company or pertaining to any of its business or
operations.

 

     

     

    

 

(iii)       “Good
Reason” shall have such meaning defined in the Participant’s employment agreement with the Company or, if no such
agreement exists or does exist but does not contain such a definition, shall mean the occurrence of any one or more of the following
events, without the Participant’s prior written consent: (i) a material reduction (at the direction of the Company) in the
value of the Participant’s total compensation package (salary, wages, bonus opportunity, equity or other long-term incentive
award opportunities, and benefits) if such a reduction is not linked to the performance of the Company or one or more of its business
units or subsidiaries or made in proportion to an across-the-board reduction for all similarly-situated employees of the Company
or the applicable business unit or employing subsidiary; or (ii) the relocation of the Participant’s principal Company office
to a location more than 25 miles from its location as of the date of the Participant’s Participation Notice, except for required
travel on the Company’s business to the extent necessary to fulfill the Participant’s obligations to the Company or
any of its subsidiaries or affiliates.  Notwithstanding the foregoing, the Participant will not be deemed to have resigned
for Good Reason unless (1) the Participant provides the Company with written notice setting forth in reasonable detail the facts
and circumstances claimed by the Participant to constitute Good Reason within 90 days after the date of the occurrence of any event
that the Participant knows or should reasonably have known to constitute Good Reason, (2) the Company fails to cure such acts or
omissions within 30 days following its receipt of such notice, and (3) the effective date of the Participant’s termination
for Good Reason occurs no later than 30 days after the expiration of the Company’s cure period.

 

(iv)        “Grant
Date” means the date first written above in this Agreement.

 

(v)        “Retirement”
shall mean a Termination of Service due to retirement (as determined by the Committee in its sole discretion) if such Termination
of Service (i) occurs on or after the completion by the Participant of ten (10) years of employment with the Company (which need
not be continuous) and (ii) the sum of the Participant’s age and years of service as an Employee equals or exceeds seventy
(70) (in each case measured in years, rounded down to the nearest whole number). Notwithstanding the generality of the foregoing,
a Termination of Service shall only constitute a Retirement if the Participant provides the Company with at least [insert #] months’
written notice of his or her anticipated retirement (which notice period may be up to 12 months, based on the Participant’s
position with the Company at the time of such anticipated retirement).

 

4.           At-Will
Employment.  This Award Agreement is not an employment contract and nothing in this Award Agreement shall be
deemed to create in any way whatsoever any obligation of the Participant
to continue as an Employee, Consultant or Director of the Company or on the part of the Company to continue the employment or
other service relationship of the Participant with the Company.  It is understood and agreed to by the Participant that
the Award and participation in the Plan does not alter the at-will nature of the Participant’s relationship with the Company
(subject to the terms of any separate employment agreement the Participant may have with the Company).  The at-will
nature of the Participant’s relationship with the Company can only be altered by a writing signed by both the Participant
and the Chief Executive Officer or the President of the Company.

 

5.           Notices.  Any
notice required or permitted under this Award Agreement shall be deemed given when delivered personally, or when deposited in
a United States Post Office, postage prepaid, addressed, as appropriate, to the Participant either at the Participant’s
address set forth below or such other address as the Participant may designate in writing to the Company, and to the Company:  Attention:  General
Counsel, at the Company’s address or such other address as the Company may designate in writing to the Participant.

 

6.           Failure
to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of this Award Agreement
shall in no way be construed to be a waiver of such provision or of any other provision hereof.

 

     

     

    

 

7.        Restrictive
Covenants; Arbitration. The Participant agrees and acknowledges that the Participant’s right to receive and
retain the Award Shares and any DER payments is subject to and conditioned upon the Participant’s continued compliance
with the restrictive covenants contained in Exhibit A attached hereto.   In
addition, the Participant agrees and acknowledges that any dispute arising with respect to this Award and this Award
Agreement will be subject to the Alternative Dispute Resolution provisions set forth in an Employment and Confidentiality
Agreement (or any other arbitration or alternative dispute resolution provisions or agreements) by and between the
Participant and the Company.

 

8.        Existing
Agreements.  This Award Agreement does not supersede nor does it modify any existing agreements between the Participant
and the Company.

 

9.        Incorporation
of Plan.  The Plan is incorporated by reference and made a part of this Award Agreement, and this Award Agreement
is subject to all terms and conditions of the Plan as in effect from time to time.  

 

10.      Amendments.   This
Award Agreement may be amended or modified at any time by an instrument in writing signed by the parties hereto.  

 

11.      Withholding.    The
Company shall withhold, or cause to be withheld, amounts payable in respect of Award Shares in satisfaction of any applicable withholding
tax obligations. Amounts which may be so withheld shall be no greater than the aggregate amount of such liabilities based on the
maximum individual statutory withholding rates in the Participant’s applicable jurisdictions for federal, state, local and
foreign income tax and payroll tax purposes that are applicable to such taxable income.

 

12.      Section
409A.   Notwithstanding anything to the contrary contained in this Award Agreement, this Award Agreement is intended to comply
with Section 409A of the Code and this Award Agreement and the Plan shall be interpreted in a manner consistent with such intent,
and any provisions of this Award Agreement or the Plan that would cause the Award to fail to satisfy the requirements for an effective
deferral of compensation under Section 409A of the Code shall have no force and effect. Notwithstanding anything to the contrary
in this Award Agreement, no amounts shall be paid to the Participant under this Award Agreement during the six (6)-month period
following the Participant’s “separation from service” (within the meaning of Section 409A of the Code) to the
extent that the Administrator determines that the Participant is a “specified employee” (within the meaning of Section
409A of the Code) at the time of such separation from service and that paying such amounts at the time or times indicated in this
Award Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts
is delayed as a result of the previous sentence, then on the first business day following the end of such six (6)-month period
(or such earlier date upon which such amount can be paid under Section 409A of the Code without being subject to such additional
taxes), the Company shall pay to the Participant in a lump-sum all amounts that would have otherwise been payable to the Participant
during such six (6)-month period under this Award Agreement.

 

[Signature page follows]

 

     

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Award Agreement on the day and year first above written.

 

	 	REDWOOD TRUST, INC.
	 	 	 
	 	By:	 
	 	 	[Andrew P. Stone]
	 	 	[General Counsel & Secretary]
	 	 	One Belvedere Place, Suite 300
	 	 	Mill Valley, CA  94941
	 	 	 
	 	
        

        The undersigned hereby accepts and agrees
        to all the terms and provisions of this Award Agreement and to all the terms and provisions of the Plan herein incorporated by
        reference.

	 	
          

	 	 
	 	[First Name] [Last Name]
	 	c/o Redwood Trust, Inc.
	 	One Belvedere Place, Suite 300
	 	Mill Valley, CA  94941

 

     

     

    

 

EXHIBIT A - Restrictive Covenants

 

		1.	Non-Disparagement. While providing services to the Company and thereafter, the Participant
agrees not to make negative comments or statements about, or otherwise criticize or disparage, in any format or through any medium,
the Company or any entity controlled by, controlling or under common control with the Company (“Affiliates”)
or any of the officers, directors, managers, employees, services, operations, investments or products of the Company or any of
its Affiliates. For purposes of the foregoing sentence, disparagement shall include, but not be limited to, negative comments or
statements intended or reasonably likely to be harmful or disruptive to a person’s or entity’s respective business,
business reputation, business operations, or personal reputation.

 

		2.	Non-Solicitation. While providing services to the Company and, for a period of one (1) year
thereafter, the Participant shall not directly or indirectly solicit, induce, or encourage any employee or consultant of any member
of the Company and its subsidiaries or Affiliates to terminate their employment or other relationship with the Company and its
Affiliates or to cease to render services to any member of the Company and its subsidiaries or Affiliates and the Participant shall
not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate with the taking of any such
actions by any other individual or entity. While providing services to the Company and thereafter, the Participant shall not use
any confidential information or trade secret of the Company or its subsidiaries or Affiliates to solicit, induce, or encourage
any customer, client, vendor, or other party doing business with any member of the Company and its subsidiaries or Affiliates to
terminate its relationship therewith or transfer its business from any member of the Company and its subsidiaries or Affiliates
and the Participant shall not initiate discussion with any such person for any such purpose or authorize or knowingly cooperate
with the taking of any such actions by any other individual or entity.

 

		3.	Confidentiality. The Participant shall keep secret and retain in the strictest confidence
all confidential, proprietary and non-public matters, tangible or intangible, of or related to the Company, its stockholders, subsidiaries,
affiliates, successors, assigns, officers, directors, attorneys, fiduciaries, representatives, employees, licensees and agents
including, without limitation, trade secrets, business strategies and operations, seller, counterparty and customer lists, manufacturers,
vendors, material suppliers, financial information, personnel information, legal advice and counsel obtained from counsel, information
regarding litigation, actual, pending or threatened, research and development, identities and habits of employees and agents and
business relationships, and shall not disclose them to any person, entity or any federal, state or local agency or authority, except
as may be required by law; provided that, in the event disclosure is sought as a result of any subpoena or other legal process
initiated against the Participant, the Participant shall immediately give the Company’s General Counsel written notice thereof
in order to afford the Company an opportunity to contest such disclosure (such notice to be delivered to: Redwood Trust, Inc.,
One Belvedere Place, Suite 300, Mill Valley, CA, 94941, Attn: General Counsel).

 

		4.	Exceptions. Nothing herein shall prohibit or restrict the Participant from: (i) making any
disclosure of information required by law; (ii) providing information to, or testifying or otherwise assisting in any investigation
or proceeding brought by, any federal or state regulatory or law enforcement agency or legislative body, any self-regulatory organization,
or the Company’s Human Resources, Legal, or Compliance Departments; (iii) testifying, participating in or otherwise assisting
in a proceeding relating to an alleged violation of the Sarbanes-Oxley Act of 2002, any federal, state or municipal law relating
to fraud or any rule or regulation of any self-regulatory organization; or (iv) filing a charge with, reporting possible violations
to, or participating or cooperating with the Securities and Exchange Commission or any other federal, state or local regulatory
body or law enforcement agency (each a “Governmental Agency”). Nothing herein shall be construed to limit the
Participant’s right to receive an award for any information provided to a Governmental Agency in relation to any whistleblower,
anti-discrimination, or anti-retaliation provisions of federal, state or local law or regulation. In addition, notwithstanding
the foregoing obligations, pursuant to 18 U.S.C. § 1833(b), the Participant understands and acknowledges that the Participant
shall not be held criminally or civilly liable under any U.S. federal or state trade secret law for the disclosure of a trade secret
that is made: (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney,
and solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal and protected from public disclosure. Nothing in this
Agreement is intended to conflict with 18 U.S.C. § 1833(b)
or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).

 

    A-1

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