Document:

EX-10.6

Exhibit 10.6

MFRESIDENTIAL INVESTMENTS, INC.

2008 EQUITY INCENTIVE PLAN

Form of Non-Qualified Stock Option Award Agreement

     AGREEMENT by and between MFResidential Investments, Inc., a Maryland corporation (the
“Company”), and
_________________(the “Optionee”), dated as of the ___day of
___, ___(the “Effective Date”).

     WHEREAS, the Company maintains the 2008 Equity Incentive Plan (the “Plan”) (capitalized
terms used but not otherwise defined herein shall have the respective meanings ascribed thereto by
the Plan);

     WHEREAS,
the Optionee is a
_________________of a Participating Company; and

     WHEREAS, in accordance with the Plan, the Committee has determined that it is in the best
interests of the Company and its stockholders to grant stock options and/or DERS to the Optionee
subject to the terms and conditions set forth below.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Grant of Stock Option.

     The Company hereby grants the Optionee options (the “Options”) to purchase ___
shares of Common Stock, subject to the following terms and conditions and subject to the provisions
of the Plan relating to Options (including Section 15 thereof). The Plan is hereby incorporated
herein by reference as though set forth herein in its entirety. To the extent such terms or
conditions conflict with any provision of the Plan, the terms and conditions set forth herein shall
govern.

     The Options are not intended to be, and shall not be qualified as, an “incentive stock
options” under Section 422 of the Code.

     2. Option Price.

     The Option Exercise Price per Share shall be $___.

     3. Initial Exercisability.

     Subject to paragraph 5 below, the Options, to the extent that there has been no Termination of
Service and the Options have not otherwise expired or been forfeited, shall first become
exercisable (unless sooner exercisable in accordance with Section 15 of the Plan) as follows:

	 	 	 
	 	 	Percent of Total
	For the Period Ending	 	Options First Exercisable
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 

 

 

     4. Exercisability Upon and After Termination of Optionee.

	 	(a)	 	If upon any Termination of Service for any reason other than death, Retirement
or Disability, the Optionee shall have the right, subject to the provisions of the
Plan, to exercise the Options at any time within three months after such Termination of
Service, but only to the extent that, at the date of Termination of Service, the
Optionee’s right to exercise the Options had accrued pursuant to the terms of this
Agreement and had not previously been exercised; provided, however, that, unless
otherwise provided in this Agreement, if there occurs a Termination of Service by a
Participating Company for Cause or a Termination of Service by the Optionee (other than
on account of death, Retirement or Disability), any Options not exercised in full prior
to such termination shall be canceled.
	 
	 	(b)	 	If the Optionee dies while an Eligible Person or within three months after any
Termination of Service other than for Cause or a Termination of Service by the Optionee
(other than on account of death, Retirement or Disability), and has not fully exercised
the Options, then the Options may be exercised in full, subject to the provisions of
the Plan, at any time within 12 months after the Optionee’s death, by the Successor of
the Optionee, but only to the extent that, at the date of death, the Optionee’s right
to exercise the Options had accrued and had not been forfeited pursuant to the terms of
this Agreement and had not previously been exercised.
	 
	 	(c)	 	Upon Termination of Service for reason of Disability or Retirement, the
Optionee shall have the right, subject to the provisions of the Plan, to exercise the
Option at any time within 24 months after such Termination of Service, but only to the
extent that, at the date of Termination of Service, the Optionee’s right to exercise
the Options had accrued pursuant to the terms of this Agreement and had not previously
been exercised.
	 
	 	(d)	 	No Options which had not become exercisable at the time of cessation of
employment or service shall ever be or become exercisable (except as may be provided in
accordance with Section 15 of the Plan). No provision of this paragraph 4 is intended
to or shall permit the exercise of the Options to the extent the Options was not
exercisable upon cessation of employment or service (except as may be so provided).

     5. Term.

     Unless earlier expired or forfeited, the Options shall, notwithstanding any other provision of
this Agreement, expire in its entirety upon the tenth anniversary of the Effective Date. The
Option shall also expire and be forfeited at such times and in such circumstances as otherwise
provided hereunder or under the Plan.

     6. Dividend Equivalent Rights.

     Subject to Section 11 of the Plan, ___DERs are granted to the Optionee, consisting of
the right to receive cash per DER in an amount equal to the dividend distributions paid on a Share
subject to an Option, but only to the extent that the underlying Options to which such DERs are
subject are exercisable in accordance with the Plan and this Agreement, but have not yet been
exercised, and have not previously expired or been forfeited. Notwithstanding the other provisions
of Section 11 of the Plan, each payment under the DERs shall be made as soon as practicable (but
not more than 60 days) after the

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time at which the corresponding dividend distribution is made to stockholders of the Company;
provided, however, that, if the Committee permits the Optionee to elect to defer the Optionee’s
receipt of such payments, the Optionee may elect such a deferral on such terms and conditions as
may be prescribed by the Committee, and using such forms as the Committee may provide, for this
purpose. Notwithstanding the foregoing, if a distribution to stockholders is made and the extent
to which such distribution constitutes a dividend is not known at the time, (i) the Committee may
(but need not) direct that a payment be made in respect of the Optionee’s DERs as the Committee
deems appropriate, and (ii) as soon as practicable (but not more than 60 days) after the extent to
which the distribution constitutes a dividend has been determined by the Company in its discretion
(A) in the case of a prior underpayment (or if no prior payments had been made), the Company shall
make any payments (without interest) as may be required to reflect such determination, and (B) in
the case of a prior overpayment, the Optionee shall make any repayment (without interest) required
to reflect such determination.

     7. Miscellaneous.

	 	(a)	 	THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MARYLAND, WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are not
part of the provisions hereof and shall have no force or effect. This Agreement may
not be amended or modified except by a written agreement executed by the parties hereto
or their respective successors and legal representatives. The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement.
	 
	 	(b)	 	The Committee shall have the power to construe and interpret this Agreement,
and to establish, amend and revoke rules and regulations for administration of this
Agreement or the Plan. In this connection, the Committee may correct any defect or
supply any omission, or reconcile any inconsistency in the Plan, in this Agreement, or
in any related agreements, in the manner and to the extent it shall deem necessary or
expedient to make the Plan fully effective. All decisions and determinations by the
Committee in the exercise of this power shall be final and binding upon the Company and
the Optionee. Notwithstanding the foregoing, the Committee shall not take any action
or make any interpretation with respect to this Agreement or the Plan that would cause
(a) the Plan or the Options to not satisfy the requirements for exemption under Rule
16b-3 under the Exchange Act or (b) any member of the Committee to be disqualified as a
Non-Employee Director under such Rule.
	 
	 	(c)	 	All notices hereunder shall be in writing and, if to the Company or the
Committee, shall be delivered to the Board or mailed to its principal office, addressed
to the attention of the Board; and if to the Optionee, shall be delivered personally or
mailed to the Optionee at the address appearing in the records of the Company. Such
addresses may be changed at any time by written notice to the other party given in
accordance with this paragraph 7(c).
	 
	 	(d)	 	The failure of the Optionee or the Company to insist upon strict compliance
with any provision of this Agreement or the Plan, or to assert any right the Optionee
or the Company, respectively, may have under this Agreement or the Plan, shall not be
deemed to be a waiver of such provision or right or any other provision or right of
this Agreement or the Plan.

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	 	(e)	 	Nothing in the Plan or this Agreement shall confer on the Optionee any right to
continue in the employ or other service of the Company, the Subsidiaries, the Manager
or their respective affiliates (if applicable) or interfere in any way with the right
of the Company, its stockholders, the Subsidiaries, the Manager or any of their
respective affiliates (if applicable) to terminate the Optionee’s employment or other
service at any time.
	 
	 	(f)	 	Any and all payments hereunder to the Optionee shall be made from the general
funds of the Company and no special or separate fund shall be established or other
segregation of assets made to assure such payments; provided, however, that bookkeeping
reserves may be established in connection with the satisfaction of payment obligations
hereunder. The obligations of the Company hereunder are unsecured and constitute a
mere promise by the Company to make benefit payments in the future and, to the extent
that any person acquires a right to receive payments hereunder from the Company, such
right shall be no greater than the right of an general unsecured creditor of the
Company.
	 
	 	(g)	 	This Agreement (together with the Plan) contains the entire agreement between
the parties with respect to the subject matter hereof and supersedes all prior
agreements, written or oral, with respect thereto.

     IN WITNESS WHEREOF, the Company and the Optionee have executed this Agreement as of the day
and year first above written.

	 	 	 	 	 
	 	MFRESIDENTIAL INVESTMENTS, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Optionee 	 
	 	 	 	 
	 

4EX-10.7

Exhibit 10.7

MFRESIDENTIAL INVESTMENTS, INC.

2008 EQUITY INCENTIVE PLAN

Form of Phantom Share Award Agreement

     AGREEMENT by and between MFResidential Investments, Inc., a Maryland corporation (the
“Company”), and                      (the “Grantee”), dated as of the       day of                     , 2008 (the
“Effective Date”).

     WHEREAS, the Company maintains the MFResidential Investments, Inc. 2008 Equity Incentive Plan,
as it may be amended from time to time (the “Plan”) (capitalized terms used but not defined
herein shall have the respective meanings ascribed thereto by the Plan);

     WHEREAS, the Grantee, as an                      of the Participating Company, is an Eligible Person; and

     WHEREAS, the Committee has determined that it is in the best interests of the Company and its
stockholders to grant Phantom Shares (also generally known as “restricted stock units” or “RSUs”)
to the Grantee subject to the terms and conditions set forth below.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Grant of Phantom Shares.

     The Company hereby grants the Grantee                      Phantom Shares. The Phantom Shares are subject
to the terms and conditions of this Agreement, and are also subject to the provisions of the Plan.
The Plan is hereby incorporated herein by reference as though set forth herein in its entirety.

     2. Vesting.

     The Phantom Shares shall be subject to the terms and conditions set forth in this paragraph 2.
To the extent such terms or conditions conflict with any provision in the Plan, the terms and
conditions set forth herein shall govern.

	 	(a)	 	The Phantom Shares shall vest, except as provided herein, on December                     .
	 
	 	(b)	 	In the event the Grantee has a Termination of Service (x) for Cause or (y) by
the Grantee for any reason other than (a) Good Reason or (b) his or her death or
Disability, during the applicable period of forfeiture, then (1) all unvested Phantom
Shares still subject to restriction shall thereupon, and with no further action, be
forfeited by the Grantee and (2) all vested Phantom Shares shall be settled as provided
hereunder.
	 
	 	(c)	 	In the event (x) the Grantee has a Termination of Service (a) on account of his
or her death or Disability, (b) by the Company for any reason other than Cause
(including non-renewal of the Grantee’s employment agreement with the Company (if
any)), or (c) by the Grantee for Good Reason, or (y) of a Change in Control, during the
applicable period of forfeiture, then all Phantom Shares granted to the Grantee
hereunder shall immediately vest and shall be settled as provided hereunder.

 

 

	 	(d)	 	Except as contemplated above, in the event that the Grantee has a Termination
of Service, any and all of the Grantee’s Phantom Shares which have not vested prior to
or as of such termination shall thereupon, and with no further action, be forfeited and
cease to be outstanding.

     3. Dividend Equivalent Rights.

     A Dividend Equivalent Right is hereby granted to the Grantee, consisting of the right to
receive, with respect to each Phantom Share, cash in an amount equal to the cash dividend
distributions paid in the ordinary course on a share of Common Stock to the Company’s common
stockholders (each, a “Dividend Payment”), as set forth below. For each Phantom Share then
outstanding, whether or not then vested, if a cash dividend is payable in the ordinary course on a
share of Common Stock, the Company shall make a payment to the Grantee in an amount equal to the
applicable Dividend Payment, on or about the date of the Dividend Payment, but in no event later
than March 15th of the year following the date of the Dividend Payment.

     4. Settlement.

     Each vested and outstanding Phantom Share shall be settled in Common Stock of the Company on
the earlier of a Termination of Service (for any reason) or on the fifth anniversary of the
Effective Date. For the avoidance of doubt, to the extent the terms of this paragraph 4 conflict
with any terms of the Plan relating to the settlement of Phantom Shares, the terms of this
paragraph 4 shall govern. To the extent any payment pursuant to this paragraph 4 is required to be
delayed six months pursuant to the special rules of Section 409A related to “specified employees,”
each affected payment shall be delayed until six months after the Grantee’s Termination of Service
(other than on account of the death of the Grantee).

     5. Definitions

     For purposes of this Agreement, the following terms shall be defined as set forth below:

	 	(a)	 	“Cause” shall mean the Grantee’s (i) conviction, or entry of a guilty
plea or a plea of nolo contendre with respect to, a felony, a crime of moral turpitude
or any crime committed against the Company, other than traffic violations; (ii)
engagement in willful misconduct, willful or gross negligence, or fraud, embezzlement
or misappropriation relating to significant amounts, in each case in connection with
the performance of the Grantee’s duties on behalf of the Company; (iii) failure to
adhere to the lawful directions of the Chief Executive Officer of the Company and/or
the Board, as the case may be, that are reasonably consistent with the Grantee’s duties
on behalf of and/or position with the Company; (iv) breach in any material respect of
any non-compete agreement or obligation resulting in material and demonstrable economic
injury to the Company; (v) chronic or persistent substance abuse that materially and
adversely affects his or her performance of his or her duties on behalf of the Company
or (vi) breach in any material respect of the terms and provisions of any employment
agreement (if any) with the Company resulting in material and demonstrable economic
injury to the Company.
	 
	 	(b)	 	“Change in Control” shall mean the occurrence of any one of the
following events:

(i) any “person”, as such term is used in Sections 13(d) and 14(d) of the Act (other
than the Company, any of its affiliates or any trustee, fiduciary or other person or
entity holding securities under any employee benefit plan or trust of the Company or
any of its

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affiliates) together with all affiliates and “associates” (as such term is defined
in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as
such term is defined in Rule 13d-3 under the Act), directly or indirectly, of
securities of the Company representing 30% or more of either (A) the combined voting
power of the Company’s then outstanding securities having the right to vote in an
election of the Board (“voting securities”) or (B) the then outstanding
shares of Common Stock (in either such case other than as a result of an acquisition
of securities directly from the Company); or

(ii) persons who, as of the effective date of this Agreement, constitute the
Company’s Board (the “Incumbent Directors”) cease for any reason, including,
without limitation, as a result of a tender offer, proxy contest, merger or similar
transaction, to constitute at least a majority of the Board, provided that any
person becoming a Director of the Company subsequent to the effective date whose
election or nomination for election was approved by a vote of at least a majority of
the Incumbent Directors shall, for purposes of this Agreement, be considered an
Incumbent Director; or

(iii) there shall occur (A) any consolidation or merger of the Company or any
subsidiary where the stockholders of the Company, immediately prior to the
consolidation or merger, would not, immediately after the consolidation or merger,
beneficially own (as such term is defined in Rule 13d-3 under the Act), directly or
indirectly, shares representing in the aggregate 60% or more of the voting
securities of the corporation issuing cash or securities in the consolidation or
merger (or of its ultimate parent corporation, if any), (B) any sale, lease,
exchange or other transfer (in one transaction or a series of transactions
contemplated or arranged by any party as a single plan) of all or substantially all
of the assets of the Company or (C) any plan or proposal for the liquidation or
dissolution of the Company.

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have
occurred for purposes of the foregoing clause (i) solely as the result of an
acquisition of securities by the Company which, by reducing the number of shares of
Common Stock or other voting securities outstanding, increases (x) the proportionate
number of shares of Common Stock beneficially owned by any person to 30% or more of
the shares of Common Stock then outstanding or (y) the proportionate voting power
represented by the voting securities beneficially owned by any person to 30% or more
of the combined voting power of all then outstanding voting securities; provided,
however, that, if any person referred to in clause (x) or (y) of this sentence shall
thereafter become the beneficial owner of any additional shares of Common Stock or
other voting securities (other than pursuant to a stock split, stock dividend, or
similar transaction), then a “Change in Control” shall be deemed to have occurred
for purposes of this Paragraph 5(b).

	 	(c)	 	“Disability” shall mean the Grantee’s inability for a period of six
consecutive months, to render substantially the services provided for on behalf of the
Company by reason of mental or physical disability, whether resulting from illness,
accident or otherwise, other than by reason of chronic or persistent abuse of any
substance (such as narcotics or alcohol).
	 
	 	(d)	 	“Good Reason” shall mean:

(i) a material diminution in the Grantee’s title, duties or responsibilities;

3

 

(ii) relocation of the Grantee’s place of employment without his or her consent
outside the New York City metropolitan area;

(iii) the failure of the Company to pay within thirty (30) business days any payment
due from the Company;

(iv) the failure of the Company to pay within a reasonable period after the date
when amounts are required to be paid to the Grantee under any benefit programs or
plans; or

(v) the failure by the Company to honor any of its material obligations to the
Grantee.

     6. Miscellaneous.

	 	(a)	 	The value of a Phantom Share may decrease depending upon the Fair Market Value
of a Share from time to time. Neither the Company nor the Committee, nor any other
party associated with the Plan, shall be held liable for any decrease in the value of
the Phantom Shares. If the value of such Phantom Shares decrease, there will be a
decrease in the underlying value of what is distributed to the Grantee under the Plan
and this Agreement.
	 
	 	(b)	 	With respect to this Agreement, (i) the Phantom Shares are bookkeeping entries,
(ii) the obligations of the Company under the Plan are unsecured and constitute a
commitment by the Company to make benefit payments in the future, (iii) to the extent
that any person acquires a right to receive payments from the Company under the Plan,
such right shall be no greater than the right of any general unsecured creditor of the
Company, (iv) all payments under the Plan (including distributions of Shares) shall be
paid from the general funds of the Company and (v) no special or separate fund shall be
established or other segregation of assets made to assure such payments (except that
the Company may in its discretion establish a bookkeeping reserve to meet its
obligations under the Plan). The award of Phantom Shares is intended to be an
arrangement that is unfunded for tax purposes and for purposes of Title I of the
Employee Retirement Income Security Act of 1974, as amended.
	 
	 	(c)	 	THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MARYLAND, WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are not
part of the provisions hereof and shall have no force or effect. This Agreement may
not be amended or modified except by a written agreement executed by the parties hereto
or their respective successors and legal representatives. The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement.
	 
	 	(d)	 	The Committee may construe and interpret this Agreement and establish, amend
and revoke such rules, regulations and procedures for the administration of this
Agreement as it deems appropriate. In this connection, the Committee may correct any
defect or supply any omission, or reconcile any inconsistency in this Agreement or in
any related agreements, in the manner and to the extent it shall deem necessary or
expedient to make the Plan fully effective. All decisions and determinations by the
Committee in the exercise of this power shall be final and binding upon the Company and
the Grantees.

4

 

	 	(e)	 	All notices hereunder shall be in writing and, if to the Company, shall be
delivered to the Board or mailed to its principal office, addressed to the attention of
the Committee and, if to the Grantee, shall be delivered personally or mailed to the
Grantee at the address appearing in the records of the Company. Such addresses may be
changed at any time by written notice to the other party given in accordance with this
paragraph 6(e).
	 
	 	(f)	 	The failure of the Grantee or the Company to insist upon strict compliance with
any provision of this Agreement or the Plan, or to assert any right the Grantee or the
Company, respectively, may have under this Agreement or the Plan, shall not be deemed
to be a waiver of such provision or right or any other provision or right of this
Agreement or the Plan.
	 
	 	(g)	 	Nothing in this Agreement shall (x) confer on the Grantee any right to continue
in the service of the Company, the Subsidiaries, the Manager or any of their respective
affiliates (if applicable) or otherwise confer any additional rights or benefits upon
the Grantee with respect to the Grantee’s employment with the Company or (y) interfere
in any way with the right of the Company, its stockholders, the Subsidiaries, the
Manager or any of their respective affiliates (if applicable) to terminate the
Grantee’s service at any time.
	 
	 	(h)	 	This Agreement contains the entire agreement between the parties with respect
to the subject matter hereof and supersedes all prior agreements, written or oral, with
respect thereto.

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the day and
year first above written.

	 	 	 	 	 
	 	 	MFRESIDENTIAL INVESTMENTS, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	[EMPLOYEE]

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