Document:

Exhibit 10.1

 

REDWOOD TRUST, INC.

2002 EMPLOYEE STOCK PURCHASE PLAN

(as amended)

 

1. ESTABLISHMENT OF PLAN.

Redwood Trust, Inc.,
a Maryland corporation (the “Company”), proposes to grant options (“Options”) for purchase of the Company's
common stock, $0.01 per share par value (“Common Stock”), to eligible employees of the Company and its Designated Subsidiaries
(as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “Plan”). For purposes of this Plan, “parent
corporation” and “subsidiary” shall have the same meanings as “parent corporation” and “subsidiary
corporation” set forth in Sections 424(e) and 424(f), respectively, of the Internal Revenue Code of 1986, as amended (the
 “Code”). The Company intends this Plan to qualify as an “employee stock purchase plan” under Section 423
of the Code (including any amendments or successor provisions to such Section), and the provisions of this Plan shall be construed
as reasonably necessary in order to effectuate such intent. Any term not expressly defined in this Plan but defined for purposes
of Section 423 of the Code shall have the same definition herein.

 

2. STOCK SUBJECT TO PLAN.

A total of 600,000
shares of the Common Stock is reserved for issuance under this Plan. Such number shall be subject to adjustments affected in accordance
with Section 16 of this Plan. Any shares of Common Stock that have been made subject to an Option that cease to be subject to the
Option (other than by means of exercise of the Option), including, without limitation, in connection with the cancellation or termination
of an Option, shall again be available for issuance in connection with future grants of Options under this Plan.

 

3. PURPOSE.

The purpose of this
Plan is to provide employees of the Company and its designated subsidiaries, as that term is defined in Section 5 of this Plan
(“Designated Subsidiaries”), with a convenient means of acquiring an equity interest in the Company through payroll
deductions, to enhance such employees' sense of participation in the affairs of the Company and its Designated Subsidiaries, to
provide an incentive for continued employment with the Company and its Designated Subsidiaries, to provide an additional form of
tax-advantaged compensation for employees, and to provide a performance incentive that will inure to the benefit of all of the
Company's stockholders.

 

4. ADMINISTRATION.

This Plan shall be
administered by a committee (the “Committee”) appointed by the Company’s Board of Directors (the “Board”)
consisting of at least two members of the Board, each of whom is a “non-employee director” as defined in Rule 16b-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (unless the General Counsel of the Company
shall have rendered a written opinion to the Board that such composition of the Committee is not required for the exemption under
Rule 16b-3 to be available with respect to purchases of Common Stock under the Plan), which shall be the Compensation Committee
of the Board if it satisfies such requirements. Subject to the provisions of this Plan and the limitations of Section 423 of the
Code or any successor provision in the Code, the Committee shall have exclusive authority, in its discretion, to determine all
matters relating to Options granted under this Plan, including all terms, conditions, restrictions, and limitations of Options;
provided, however, that all participants granted Options under an offering pursuant to this Plan shall have the same rights and
privileges within the meaning of Code Section 423(b)(5) except as required by applicable law. The Committee shall also have exclusive
authority to interpret this Plan and may from time to time adopt rules and regulations of general application for this Plan's administration.
The Committee's exercise of discretion and interpretation of this Plan, its rules and regulations, and all actions taken and determinations
made by the Committee pursuant to this Plan shall be conclusive and binding on all parties involved or affected. The Committee
may delegate administrative duties to the Plan Financial Agent (defined in Section 12) or such of the Company’s officers
or employees as it so determines (provided that no such delegation may be made that would cause the purchase of Common Stock by
participants under this Plan to cease to be exempt from Section 16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)). All expenses incurred in connection with the administration of this Plan shall be paid by the Company and the Designated
Subsidiaries; provided, however, that the Committee may require a participant to pay any costs or fees in connection with the sale
by the participant of shares of Common Stock acquired under this Plan or in connection with the participant's request for the issuance
of a certificate for shares of Common Stock held in the participant's account under the Plan.

 

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5. ELIGIBILITY.

Any employee of the
Company or the Designated Subsidiaries is eligible to participate in the Plan for any Offering Period (as hereinafter defined)
under this Plan except the following:

 

(a) employees
who have not been continuously employed by the Company or Subsidiaries from the date of hire or rehire or of return from an unapproved
leave of absence for a period of at least three months before the beginning of such Offering Period;

(b) employees
who are customarily employed for less than 20 hours per week;

(c) employees
who are customarily employed for not more than five months in a calendar year; and

(d) employees
who, together with any other person whose stock would be attributed to such employee pursuant to Section 424(d) of the Code, own
stock or hold options to purchase stock possessing 5% or more of the total combined voting power or value of all classes of stock
of the Company or any of its Subsidiaries or who, as a result of being granted Options under this Plan, would own stock or hold
options to purchase stock possessing 5% or more of the total combined voting power or value of all classes of stock of the Company
or any of its Subsidiaries.

 

For all purposes of
this Plan, the term Designated Subsidiaries shall mean those Subsidiaries which have been, or which may in the future be, determined
by the Board to be Designated Subsidiaries. A Designated Subsidiary will cease to be a Designated Subsidiary on the earlier of
(i) the date the Committee or the Board determines that such Subsidiary is no longer a Designated Subsidiary or (ii) such Designated
Subsidiary ceases for any reason to be a “parent corporation” or “subsidiary corporation” as defined in
Sections 424(e) and 424(f), respectively, of the Code.

 

6. EFFECTIVE DATE; OFFERING AND PURCHASE PERIODS.

The effective date
of this Plan shall be July 1, 2002 (the “Effective Date”). The offering periods of this Plan (individually, an “Offering
Period”) shall consist of periods determined as described below not to exceed the maximum period permitted by Section 423
of the Code. Until determined otherwise by the Committee or the Board, (a) Offering Periods shall commence on each January 1 and
continue for twelve months, provided, however, that the first Offering Period shall begin on July 1, 2002 and continue for six
months and the initial Offering Period for any newly eligible employee that becomes a participant during an otherwise ongoing Offering
Period shall be deemed to begin on the first day of the first Purchase Period after eligibility, and (b) each Offering Period shall
consist of one or more purchase periods (individually, a “Purchase Period”) during which payroll deductions of the
participants are accumulated under this Plan. Until otherwise determined by the Committee or the Board, each Purchase Period shall
be a three-month period commencing on each January 1, April 1, July 1, and October 1, provided, however, that the first Purchase
Period shall commence with the first Offering Period on July 1, 2002. The first day of each Offering Period is referred to as the
 “Offering Date”. The last day of each Purchase Period is referred to as the “Purchase Date”. Subject to
the requirements of Section 423 of the Code, the Committee or the Board shall have the power to change the duration of Offering
Periods or Purchase Periods with respect to future offerings if such change is announced at least 30 days prior to the first day
of the first Offering Period or Purchase Period to be affected by such change.

 

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7. PARTICIPATION IN THIS PLAN.

Eligible employees
may become participants in an Offering Period under this Plan as of the Purchase Period first commencing after satisfying the eligibility
requirements by delivering an enrollment form provided by the Company to the Secretary of the Company or such other officer as
he or she may designate from time to time (“Redwood Plan Administrator”) not later than the 15th day of the month (or
if such day is not a business day for the Company or the applicable Subsidiary, on the immediately preceding business day) before
commencement of such Purchase Period unless a later time for filing the enrollment form authorizing payroll deductions is set by
the Committee for all eligible employees with respect to a given Purchase Period. Notwithstanding the foregoing, for the initial
Offering Period, commencing on the effective date, the time for filing an enrollment form and commencing participation for employees
who satisfy the eligibility requirements as of the effective date shall be determined by the Committee and communicated to such
employees. Once an employee becomes a participant in the Plan, such employee will automatically participate in all Purchase Periods
commencing after satisfying the eligibility and enrollment requirements as set forth in the first sentence or second sentence of
this section unless the employee withdraws from this Plan or terminates further participation in the Offering Period as set forth
in Sections 13 and 14 below. Such participant is not required to file any additional enrollment forms in order to continue participation
in this Plan.

 

8. GRANT OF OPTION ON ENROLLMENT.

Enrollment by an eligible
employee in this Plan with respect to an Offering Period will constitute the grant by the Company to such employee as of the relevant
Offering Date of an Option to purchase on each relevant Purchase Date up to that number of whole shares of Common Stock of the
Company, determined by dividing (a) the amount accumulated in such employee's payroll deduction account during the Purchase Period
ending on such Purchase Date by (b) the Purchase Price as that term is defined in Section 9; provided, however, that the number
of shares which may be purchased pursuant to an Option may in no event exceed (i) the number determined by dividing the amount
of $6,250 by the fair market value (as defined in Section 9) of a share of Common Stock on the Offering Date, or (ii) such other
maximum number of shares as may be specified in the future by the Board or Committee in lieu of the limitation contained in clause
(i).

 

9. PURCHASE PRICE.

The purchase price
per share (the “Purchase Price”) at which a share of Common Stock will be sold on any Purchase Date shall initially
be the LOWER of (a) 85% of the fair market value of such share on the first day of the Offering Period in which such Purchase Date
occurs or (b) 85% of the fair market value of such share on the Purchase Date.

For purposes of this
Plan, the term “fair market value” of the Common Stock on any date shall be the closing price on such date of the
Common Stock reported on the New York Stock Exchange or any national securities exchange on which the Common Stock is listed.
If there is no reported closing price of the Common Stock on such date, then the “fair market value” shall be measured
on the next preceding trading day for which such reported closing price is available. If there is no regular trading market for
the Common Stock, the fair market value of the Common Stock shall be as determined by the Committee in its sole discretion, exercised
in good faith. The Committee may change the manner in which the Purchase Price is determined with respect to future Offering Periods
or Purchase Periods (provided such determination does not have the effect of lowering the Purchase Price to an amount less than
that which would be computed utilizing the method for determining the Purchase Price set forth in the first paragraph of this
Section 9) if such changed manner of computation applied to all eligible employees and is announced at least 30 days prior to
the first day of the first Offering Period or Purchase Period to be affected by such change.

 

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10. PURCHASE OF SHARES; CHANGES IN PAYROLL DEDUCTIONS; ISSUANCE
OF SHARES.

(a) Funds contributed
by each participant for the purchase of shares under this Plan shall be accumulated by regular payroll deductions made during each
Offering Period. The deductions shall be made in $50 increments as selected by the Participant up to a maximum of not more than
15% of the participant's Compensation. As used herein, “Compensation” shall mean all base salary, wages, cash bonuses,
commissions, current-pay dividend equivalent rights (“DERs”), and overtime; provided, however, that, for purposes of
determining a participant's Compensation, any election by such participant to reduce his or her regular cash remuneration under
Sections 125 or 401(k) of the Code shall be treated as if the participant did not make such election. “Compensation”
does not include severance pay, hiring and relocation allowances, pay in lieu of vacation, automobile allowances, imputed income
arising under any Company group insurance or benefit program, income received in connection with stock options or other stock-based
awards (other than current-pay DERs), or any other special items of remuneration. Payroll deductions shall commence on the first
payday following the Offering Date and shall continue through the last payday of the Offering Period unless sooner altered or terminated
as provided in this Plan.

(b) A participant
may lower (but not increase) the rate of payroll deductions during a Purchase Period by filing with the Redwood Plan Administrator
a new authorization for payroll deductions, in which case the new rate shall become effective for the next payroll period commencing
more than 15 days after the Redwood Plan Administrator's receipt of the authorization and shall continue for the remainder of
the Offering Period unless changed as described below. Such change in the rate of payroll deductions may be made at any time during
a Purchase Period, but not more than one change may be made effective during any Purchase Period. Notwithstanding the foregoing,
a participant may lower the rate of payroll deductions to zero for the remainder of the Purchase Period. A participant may increase
or decrease the rate of payroll deductions for any subsequent Purchase Period by filing with the Redwood Plan Administrator a
new authorization for payroll deductions not later than the 15th day of the month (or if such date is not a business day, the
immediately preceding business day) before the beginning of such Purchase Period. A participant who has decreased the rate of
withholding to zero will be deemed to continue as a participant in the Plan until the participant withdraws from the Plan in accordance
with the provisions of Section 13. A participant shall have the right to withdraw from this Plan in the manner set forth in Section
13 regardless of whether the participant has exercised his or her right to lower the rate at which payroll deductions are made
during an Offering Period.

(c) All payroll deductions
made for a participant will be credited to his or her account under this Plan and deposited with the general funds of the Company.
No interest will accrue on payroll deductions. All payroll deductions received or held by the Company may be used by the Company
for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

(d) On each Purchase
Date, provided that the participant has not terminated employment in accordance with Section 14 or has not submitted to the Redwood
Plan Administrator a signed and completed withdrawal form, in either case on or before the 15th day (or if such date is not a
business day, on the immediately preceding business day) of the last month of the Purchase Period in accordance with Section 10(b)
or Section 13 of this Plan, or the Plan has not been terminated prior to the date referred to in the foregoing clause, the Company
shall apply the funds then in the participant's account to the purchase at the Purchase Price of whole share(s) of Common Stock
issuable under the Option deemed granted to such participant with respect to the Offering Period to the extent that such Option
is exercisable on the Purchase Date; provided that in no event shall an Option be deemed exercised (by applying funds to a purchase)
after the expiration of 27 months from the date such Option was deemed granted under Section 8 hereof. Subject to Section 11,
any funds remaining in the participant's account will be applied to the following Purchase Period. No fractional shares will be
purchased.

 

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(e) During a participant's
lifetime, such participant's Option to purchase shares hereunder is exercisable only by him or her. The participant will have no
interest or voting right in shares covered by his or her Option until such Option has been exercised.

 

11. LIMITATIONS ON RIGHT TO PURCHASE.

(a) No employee shall
be granted an Option to purchase Common Stock under this Plan at a rate which, when aggregated with his or her rights to purchase
stock under all other employee stock purchase plans of the Company or any Subsidiary which is intended to meet the requirements
of Code Section 423, exceeds $25,000 in fair market value, determined as of the applicable date of the grant of the Option, for
each calendar year in which the employee participates in this Plan (or any other employee stock purchase plan described in this
Section 11(a)).

(b) The number of
shares which may be purchased by any employee on a Purchase Date may not exceed the number of shares determined by dividing the
sum of $6,250 by the fair market value (as defined in Section 9) of a share of Common Stock on the first day of the Offering Period
in which such Purchase Date occurs or, in the event the Committee or Board may specify a different limitation to be applied in
lieu of the foregoing limitation, then the number of shares which may be purchased by any employee on a Purchase Date may not
exceed such other limitation.

(c) If the number
of shares to be purchased on a Purchase Date by all employees participating in this Plan exceeds the number of shares then available
for issuance under this Plan, then the Company will make a pro rata allocation of the remaining shares in as uniform a manner
as shall be reasonably practicable and as the Committee shall determine to be equitable. In such event, the Company shall give
written notice of such reduction of the number of shares to be purchased under a participant's Option to each participant affected
thereby.

(d) Any payroll deductions
accumulated in a participant's account which are not used to purchase stock due to the limitations in this Section 11 shall be
returned to the participant as soon as practicable after the end of the applicable Purchase Period without interest.

 

12. EVIDENCE OF STOCK OWNERSHIP.

(a) Promptly following
each Purchase Date, the number of full shares of Common Stock purchased by each participant shall be deposited into an account
established in the participant's name at a stock brokerage or other financial services firm designated or approved by the Committee
(the “Plan Financial Agent”). A participant shall be free to undertake a disposition (whether by way of sale, gift,
or other transfer) of the shares in his or her account at any time, subject to the Company's Insider Trading Policy and applicable
securities law rules and regulations, but, in the absence of such a disposition, the shares must remain in the participant's account
at the Plan Financial Agent until the holding period set forth in Code Section 423(a) has been satisfied. With respect to full
shares for which the Code Section 423(a) holding period has been satisfied, the participant may move those shares to another brokerage
account of the participant's choosing or request that a stock certificate for full shares be issued and delivered to him or her.

(b) Following termination
of a participant's employment for any reason, the participant shall have a period of 60 days to notify the Plan Financial Agent
whether such participant desires (i) to receive a certificate representing all full shares then in the participant's account with
the Plan Financial Agent and any cash being held for future purchases or (ii) to sell the shares in the participant's account
through the Plan Financial Agent. If the terminated participant fails to file such notice with the Plan Financial Agent within
60 days after termination, he or she shall be deemed to have elected the alternative set forth in clause (i) above, provided that
the Plan Financial Agent will continue to hold the terminated participant's certificates, on his or her behalf, in an account
no longer subject to this Plan, until otherwise directed by such participant or determined by the Plan Financial Agent. However,
the participant shall not in any event receive a certificate representing shares with respect to which the Code Section 423(a)
holding period has not been satisfied until such holding period has been satisfied.

 

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13. WITHDRAWAL.

(a) Each participant
may withdraw from an Offering Period under this Plan by signing and delivering to the Redwood Plan Administrator a written notice
to that effect on a form provided for such purpose. Such withdrawal may be elected at any time on or prior to the 15th day of the
last month (or if such date is not a business day, the immediately preceding business day) of a Purchase Period.

(b) Upon withdrawal
from this Plan, the accumulated payroll deductions of the participant not theretofore utilized for the purchase of shares of Common
Stock on a Purchase Date shall be returned to the withdrawn participant, without interest, and his or her participation in this
Plan shall terminate. In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume his or
her participation in this Plan during the same Offering Period unless otherwise determined by the Committee, but he or she may
participate in any subsequent Offering Period by filing a new authorization for payroll deductions in the same manner as set forth
above for initial participation in this Plan.

 

14. TERMINATION OF EMPLOYMENT; LEAVE OF ABSENCE.

Termination of a participant's
employment for any reason, including retirement, death, or the failure of a participant to remain an eligible employee, immediately
terminates his or her participation in this Plan. In such event, except as provided in Section 15, the payroll deductions credited
to the participant's account will be returned to him or her or, in the case of his or her death, to his or her beneficiary or heirs,
without interest. For purposes of this Section 14, an employee will not be deemed to have terminated employment or failed to remain
in the continuous employ of the Company in the case of any leave of absence permitted by applicable law or otherwise approved by
the Committee.

 

15. RETURN OF PAYROLL DEDUCTIONS.

In the event a participant's
interest in this Plan is terminated by withdrawal, termination of employment, or otherwise, or in the event this Plan is terminated
by the Board, the Company shall promptly deliver to the participant all contributions of the participant to the Plan which have
not yet been applied to the purchase of stock unless such termination of participation occurs later than the 15th day of the final
month of any Purchase Period (or if such date is not a business day, on the preceding business day), in which event such contributions
will be utilized to purchase Common Stock for the participant. No interest shall accrue on the payroll deductions of a participant
in this Plan.

 

16. CAPITAL CHANGES.

In the event that at
any time or from time to time a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization, merger,
consolidation, distribution to stockholders other than a normal cash dividend, or other change in the Company's corporate or capital
structure results in (a) the outstanding shares of Common Stock or any securities exchanged therefor or received in their place
being exchanged for a different number or class of securities of the Company or of any other corporation or (b) new, different,
or additional securities of the Company or of any other corporation being received by the holders of shares of Common Stock, then
the Committee, in its sole discretion, shall make such equitable adjustments as it shall deem appropriate in the circumstances
in the maximum number and kind of shares of stock subject to this Plan as set forth in Sections 1 and 2, the number and kind of
shares subject to outstanding Options, and the Purchase Price. The determination by the Committee as to the terms of any of the
foregoing adjustments shall be conclusive and binding.

 

17. NONASSIGNABILITY.

Neither payroll deductions
credited to a participant's account nor any rights with regard to the exercise of an Option or to receive shares under this Plan
may be assigned, transferred, pledged, or otherwise disposed of in any way (other than by will, the laws of descent and distribution,
or as provided in Section 24 hereof) by the participant. Any such attempt at assignment, transfer, pledge, or other disposition
shall be void and without effect.

 

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18. REPORTS AND STATUS OF ACCOUNTS.

Individual accounts
will be maintained by the Plan Financial Agent for each participant in this Plan. The participant shall have all ownership rights
with respect to shares of Common Stock held in his or her account by the Plan Financial Agent, including the right to vote such
shares and to receive any dividends or distributions which may be declared thereon by the Board. The Plan Financial Agent shall
send to each participant promptly after the end of each Purchase Period a report of his or her account setting forth the total
of shares purchased, the total number of shares then held in his or her account, and the market value per share. Neither the Company
nor any Designated Subsidiary shall have any liability for any error or discrepancy in any such report.

 

19. NO RIGHTS TO CONTINUED EMPLOYMENT;
NO IMPLIED RIGHTS.

Neither this Plan nor
the grant of any Option hereunder shall confer any right on any employee to remain in the employ of the Company or any Subsidiary
or restrict the right of the Company or any Subsidiary to terminate such employee's employment. The grant of any Option hereunder
during any Offering Period shall not give a participant any right to similar grants thereafter.

 

20. EQUAL RIGHTS AND PRIVILEGES.

All eligible employees
shall have equal rights and privileges with respect to this Plan except as required by applicable law so that this Plan qualifies
as an “employee stock purchase plan” within the meaning of Section 423 or any successor provision of the Code and the
related regulations. Any provision of this Plan which is inconsistent with Section 423 or any successor provision of the Code shall,
without further act or amendment by the Company, the Board, or the Committee, be reformed to comply with the requirements of Section
423. This Section 20 shall take precedence over all other provisions in this Plan.

 

21. NOTICES.

All notices or other
communications by a participant to the Company under or in connection with this Plan shall be deemed to have been duly given when
received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

 

22. AMENDMENT OF PLAN.

This Plan may be amended
by the stockholders of the Company. The Board may also amend this Plan in such respects as it shall deem advisable; however, stockholder
approval will be required for any amendment that will increase the total number of shares as to which Options may be granted under
this Plan, or, but for such shareholder approval, cause this Plan to fail to continue to qualify as an “employee stock purchase
plan” under Section 423 of the Code or cause the purchase of shares thereunder to fail to be exempt from the provisions of
Section 16(b) of the Exchange Act.

 

23. TERMINATION OF THE PLAN.

The Company's stockholders
or the Board may suspend or terminate this Plan at any time. Unless this Plan shall theretofore have been terminated by the Company’s
stockholders or the Board, this Plan shall remain in full force and effect until all shares reserved under Section 2 have been
purchased pursuant to the terms hereof.

 

24. DESIGNATION OF BENEFICIARY.

(a) A participant may
file a written designation of a beneficiary who is to receive any shares and cash, if any, from the participant's account under
this Plan in the event of such participant's death prior to delivery to him or her (or to the Plan Financial Agent on his or her
behalf) of such shares and cash.

 

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(b) Such designation
of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant and
in the absence of a beneficiary validly designated under this Plan who is living at the time of such participant's death, the Company
shall deliver such shares or cash to the executor or administrator of the estate of the participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares or
cash to the spouse or to any one or more dependents or relatives of the participant or, if no spouse, dependent, or relative is
known to the Company, to such other person as the Company may in good faith determine to be the appropriate designee.

 

25. CONDITIONS UPON ISSUANCE OF SHARES; LIMITATION ON SALE
OF SHARES.

Shares shall not be
issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such shares pursuant thereto
shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933,
as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of the New York Stock Exchange
or any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

 

26. WITHHOLDING.

The Committee shall
have the right to make such provisions as it deems appropriate to satisfy any obligation of the Company to withhold federal, state,
or local income or other taxes incurred by reason of the operation of the Plan.

 

27. GOVERNING LAW.

Except to the extent
that provisions of this Plan are governed by applicable provisions of the Code or any other substantive provision of federal law,
this Plan shall be construed in accordance with, and shall be governed by, the substantive laws of the State of California without
regard to any provisions of California law relating to the conflict of laws.

 

    	 	8EX-10.1

 Exhibit 10.1 

FIRST AMENDMENT TO CREDIT AGREEMENT 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT is made as of May 7, 2019, to be effective on the First Amendment Effective Date (defined
below), by and among MAYVILLE ENGINEERING COMPANY, INC., a Wisconsin corporation (“Borrower”), the lenders party to this Amendment (the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). 
 NOW, THEREFORE, IN
CONSIDERATION of the recitals and the mutual covenants, conditions and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, it is hereby agreed that: 

ARTICLE I 
 DEFINITIONS 

1.1    Amendment. “Amendment” shall mean this First Amendment to Credit Agreement. 

1.2    Credit Agreement. “Credit Agreement” shall mean the Credit Agreement dated as of December 14,
2018, by and among the Borrower, the Lenders, and the Administrative Agent, together with the Exhibits and Schedules attached thereto. 

1.3    Other Terms. Unless otherwise defined herein, the other capitalized terms used in this Amendment shall have
the definitions in the Credit Agreement. 
 ARTICLE II 

AMENDMENT 
 The Credit Agreement
is amended as follows: 
 2.1    Section 1.1 - Definitions. The following definitions contained in
Section 1.1 of the Credit Agreement are amended and restated in their entirety to read as follows: 
 “Change in
Control” means an event or series of events by which: 
 (a)    at any time, the Borrower shall
fail to own, directly or indirectly, one hundred percent (100%) of the Equity Interests of the Subsidiary Guarantors entitled to vote in the election of members of the board of directors (or equivalent governing body) of the Subsidiary Guarantors;
or 
 (b)    an event or series of events which results in a change in the power to direct or cause the
direction of management and policies of the Borrower or any of its Subsidiaries, either directly or indirectly, by contract or otherwise; or 

(c)    after an IPO, (i) any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its Subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such
plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a “person” or “group” shall
be deemed to have “beneficial ownership” of all Equity 

 
Interests that such “person” or “group” has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option
right”)), directly or indirectly, of more than thirty-five percent (35%) of the Equity Interests of the Borrower entitled to vote in the election of members of the board of directors (or equivalent governing body) of the Borrower or (ii) a
majority of the members of the board of directors (or other equivalent governing body) of the Borrower shall not constitute Continuing Directors or (iii) the ESOP fails to own greater than fifty percent (50%) of the Equity Interests of the
Borrower entitled to vote in the election of members of the board of directors (or equivalent governing body) of the Borrower; or 

(d)    there shall have occurred under any indenture or other instrument evidencing any Indebtedness or
Equity Interests in excess of the Threshold Amount any “change in control” or similar provision (as set forth in the indenture, agreement or other evidence of such Indebtedness) obligating the Borrower or any of its Subsidiaries to
repurchase, redeem or repay all or any part of the Indebtedness or Equity Interests provided for therein. 

“Consolidated EBITDA” means, for any period, the sum of the following determined on a Consolidated basis,
without duplication, for the Borrower and its Subsidiaries in accordance with GAAP: (a) Consolidated Net Income for such period plus (b) the sum of the following, without duplication, to the extent deducted in determining
Consolidated Net Income for such period: (i) Consolidated Interest Expense for such period, (ii) income tax expense for such period, net of tax refunds, (iii) all amounts attributable to depreciation and amortization expense for such
period, (iv) any non-cash expense component incorporated in ESOP and other stock-based compensation expense recognized for such period, (v) unamortized financing fees in an amount not to exceed
$558,000 in the aggregate for the first 12-month fiscal period following the Original Closing Date, (vi) cash fees and expenses paid in connection with the Defiance Acquisition and closing of this
Agreement not to exceed $1,750,000 in the aggregate for the first 12 month fiscal period following the Closing Date, and (vii) cash fees and expenses paid in connection with the issuance of Equity Interests by the Borrower as reasonably
approved in writing by the Administrative Agent and the Required Lenders, plus/minus (c) non-cash expenses/income incurred on fair value step-ups
relating to Acquisitions, plus/minus (d) non-cash expenses/income from contingent consideration fair value adjustments related to the earn-outs paid in connection with Acquisitions
(including without limitation the Defiance Acquisition), plus (e) the following amounts for the quarter ending on the following dates: 
  

																	
	 Quarter Ending:
	  	 	12/31/2018	 	  	 	3/31/2019	 	  	 	6/30/2019	 	  	 	9/30/2019	 
	 Add-Back:
	  	$	9,808,000	 	  	$	9,316,000	 	  	$	8,823,000	 	  	$	493,000	 

 “Consolidated Fixed Charge Coverage Ratio” means, as of any date of
determination, the ratio of (a) an amount equal to (i) Consolidated EBITDA, minus (ii) 50% of depreciation expense, minus (iii) Discretionary Repurchase Obligation Payments paid in cash, to the extent not already deducted in
calculating Consolidated EBITDA, minus (iv) income tax expense for such period, net of tax refunds, plus (v) Mandatory Repurchase Obligation Payments paid in cash, to the extent deducted in calculating Consolidated EBITDA to
(b) Consolidated Fixed Charges, all as determined for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date. 

  
 2 

 2.2    Section 1.1 - Definitions. The following definitions are
added to Section 1.1 of the Credit Agreement in the proper alphabetical order to read as follows: 
 “First
Amendment” shall mean that certain First Amendment to Credit Agreement, dated as of May 7, 2019, by and among Borrower, the Lenders party thereto and the Administrative Agent. 

“First Amendment Effective Date” means the date immediately before the funding of the initial public offering
of common stock of the Borrower, anticipated to be May 12, 2019; provided, if such funding does not occur by May 20, 2019, there shall be no First Amendment Effective Date and the Credit Agreement shall continue unamended by the First
Amendment which shall be null, void and of no effect. 
 2.3    Section 7.22(j) - ESOP. Paragraph (j) of
Section 7.22 of the Credit Agreement is amended and restated in its entirety to read as follows: 

(j)    At all times since June, 1998 through the First Amendment Effective Date: (i) Mayville has had
in effect and maintained a valid election to be subject to taxation under Subchapter S of the Code, has filed all income tax returns in a manner consistent with its status as an S corporation, and has met all eligibility requirements for maintaining
Subchapter S status and none of the Equity Interests of Mayville have been held by any person or entity that was ineligible to be an S Corporation shareholder; (ii) Center was eligible to be, and was, a Disregarded Entity; (iii) none of
Mayville, CMH, Center, Moeller or any of their shareholders or members has taken any action, or omitted to take any action, which action or omission could result in the loss of the Disregarded Entity status for CMH, Center or Moeller; and
(iv) no former shareholder of Mayville has taken any action or made any filing that would terminate Center’s, Moeller’s or CMH’s status as a Disregarded Entity for federal income tax purposes. 

2.4    Section 8.3(k) - Notice of Litigation and Other Matters. Paragraph (k) of Section 8.3 of the
Credit Agreement is amended and restated in its entirety to read as follows: 
 (k)    [Intentionally
Deleted]; 
 2.5    Section 9.6(e) - Restricted Payments. Paragraph (e) of Section 9.6 of the Credit
Agreement is amended and restated in its entirety to read as follows: 
 (e)    so long as no Default or
Event of Default has occurred and is continuing or would result therefrom, (including not causing a breach of any of the covenants set forth in Section 9.15 by virtue of such payment), (A) Mayville, in addition to Mandatory
Repurchase Obligation Payments, may make Discretionary Repurchase Obligation Payments, (B) on or prior to April 15, 2020, Mayville may make up to $500,000 per year in S corporation tax distributions to its shareholders and
(C) Mayville may make the earn-out payment in accordance with the Defiance Purchase Agreement in an amount not to exceed $10,000,000. 

2.6    Section 9.8(c) - Accounting Changes; Organizational Documents. Paragraph (c) of Section 9.8 of the
Credit Agreement is amended and restated in its entirety to read as follows: 
 (c)    [Intentionally
Deleted]. 

  
 3 

 ARTICLE III 

MISCELLANEOUS 

3.1    Effectiveness. This Amendment shall be effective as of the First Amendment Effective Date upon receipt by
the Administrative Agent of each of the following items: 
 (a)    a copy of this Amendment, executed by
Borrower, each Lender and the Administrative Agent; 
 (b)    a Guarantor reaffirmation in the form
attached hereto executed by each Subsidiary Guarantor; 
 (c)    an amendment to the WFSC Loan Agreement
in form and content satisfactory to the Administrative Agent executed by Borrower and WFSC; and 

(d)    such other items as may be required by the Administrative Agent. 

3.2    Continuance of Credit Agreement. Except as specifically amended by this Amendment, the Credit Agreement and
all other documents, instruments and materials executed and delivered pursuant to the Credit Agreement shall remain in full force and effect. 

3.3    Security Documents. All of the Secured Obligations, as amended by this Amendment, are secured by all of the
Security Documents. 
 3.4    Counterparts. This Amendment may be executed in several counterparts, each of which
shall be deemed an original, but such counterparts shall together constitute but one and the same agreement. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (i.e., “pdf” or
“tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment. 

3.5    Loan Document; Governing Law; Jurisdiction, Etc. This Amendment is a “Loan Document” as defined in
the Credit Agreement and is subject to all terms and provisions of the Credit Agreement, including, without limitation, Sections 12.5 and 12.6 of the Credit Agreement. 

3.6    Fees and Expenses. The Borrower shall pay all fees and expenses of the Administrative Agent in connection
with this Amendment, including reasonable legal fees and expenses. 
 [Signature pages to follow] 

  
 4 

 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Credit
Agreement as of the date first written above. 
  

			
	 MAYVILLE ENGINEERING COMPANY, INC.,

as Borrower

		
	By:	 	 /s/ Todd M. Butz

	Name:	 	Todd M. Butz
	Title:	 	Chief Financial Officer, Secretary and Treasurer

 Signature Page to First Amendment to Credit Agreement 

 
			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent, Swingline Lender, Issuing Lender and Lender

		
	By:	 	 /s/ Thomas J. Smith

	Name:	 	Thomas J. Smith
	Title:	 	Vice President

  
 Signature Page to First
Amendment to Credit Agreement 

 
			
	 U.S. BANK NATIONAL ASSOCIATION.

as Lender

		
	By:	 	 /s/ Sam
LeMense                    

	Name:	 	Sam LeMense
	Title:	 	Vice President

  
 Signature Page to First
Amendment to Credit Agreement 

 
			
	 ASSOCIATED BANK, NATIONAL ASSOCIATION, as

Lender

		
	By:	 	 /s/ Dan Holzhauer

	Name:	 	Dan Holzhauer
	Title:	 	Senior Vice President

  
 Signature Page to First
Amendment to Credit Agreement 

 
			
	BMO HARRIS BANK N.A. , as Lender
		
	By:	 	 /s/ Neil
Riegelman                    

	Name:	 	Neil Riegelman
	Title:	 	Senior Vice President

  
 Signature Page to First
Amendment to Credit Agreement 

 REAFFIRMATION OF GUARANTORS 

Each of the undersigned (each, a “Guarantor”) has previously executed that certain Subsidiary Guaranty Agreement dated as of
December 14, 2018 (the “Guaranty”) in favor of the Administrative Agent for the benefit of itself and the Secured Parties in connection with the Credit Agreement. Each Guarantor understands that the Borrower, the Administrative
Agent and the Lenders have entered into the foregoing First Amendment to Credit Agreement of even date herewith (the “Amendment”). Each Guarantor: (a) acknowledges it has read the Amendment, (b) consents to the execution
of the Amendment by the Borrower and consents to the matters set forth in the Amendment, (c) reaffirms its obligations under the Guaranty and acknowledges that such document covers all Obligations as the same may be amended and/or increased in
the Amendment, (d) agrees that its Guaranty remains in full force and effect in accordance with its terms, (e) agrees that any reference in its Guaranty or any other Loan Documents to the Credit Agreement means the Credit Agreement as
amended by the Amendment and (f) agrees that all of the Secured Obligations, as amended by the Amendment, are secured by all of the Security Documents. 

Dated: May 7, 2019. 
  

			
	 CENTER MANUFACTURING HOLDINGS, INC.,

as a Guarantor

		
	By:	 	 /s/ Todd M.
Butz                                        

	Name:	 	Todd M. Butz
	Title:	 	Chief Financial Officer, Secretary and Treasurer
	
	 CENTER MANUFACTURING, INC.,

as a Guarantor

		
	By:	 	 /s/ Todd M.
Butz                                        

	Name:	 	Todd M. Butz
	Title:	 	Chief Financial Officer, Secretary and Treasurer

 Signature Page to Guarantor Reaffirmation 

 
			
	 CENTER - MOELLER PRODUCTS LLC,

as a Guarantor

		
	By:	 	 /s/ Todd M.
Butz                    

	Name:	 	Todd M. Butz
	Title:	 	Chief Financial Officer, Secretary and Treasurer
	
	DEFIANCE METAL PRODUCTS CO., as a Guarantor
		
	By:	 	 /s/ Todd M.
Butz                    

	Name:	 	Todd M. Butz
	Title:	 	Vice President, Secretary and Treasurer
	
	DEFIANCE METAL PRODUCTS OF ARKANSAS, INC., as a Guarantor
		
	By:	 	 /s/ Todd M.
Butz                    

	Name:	 	Todd M. Butz
	Title:	 	Vice President, Secretary and Treasurer
	
	DEFIANCE METAL PRODUCTS OF PA., INC., as a Guarantor
		
	By:	 	 /s/ Todd M.
Butz                    

	Name:	 	Todd M. Butz
	Title:	 	Secretary and Treasurer
	
	DEFIANCE METAL PRODUCTS OF WI, INC., as a Guarantor
		
	By:	 	 /s/ Todd M.
Butz                    

	Name:	 	Todd M. Butz
	Title:	 	Secretary

  
 Signature Page to
Guarantor Reaffirmation

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