Document:

MFA FINANCIAL, INC.

AMENDED AND RESTATED 2010 EQUITY COMPENSATION PLAN

DIVIDEND EQUIVALENT RIGHTS

 

AGREEMENT by and between MFA Financial, Inc., a Maryland corporation (the “Company”), and _____ (the “Grantee”), dated as of the ___ day of _______ (the “Grant Date”).

 

WHEREAS, the Company maintains the MFA Financial, Inc. Amended and Restated 2010 Equity Compensation 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 employee of the Company, is an Eligible Person; and

 

WHEREAS, the Company and the Grantee entered into that certain Amended and Restated Employment Agreement, dated June 30, 2011 (the “Employment Agreement”); and

 

WHEREAS, the Committee has determined that it is in the best interests of the Company and its stockholders to grant Dividend Equivalent Rights (also generally known as “DERs”) to the Grantee subject to the terms and conditions set forth below.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.           Grant of DERs.

 

The Company hereby grants the Grantee ____ DERs, consisting of the right to receive, with respect to each DER that has not been terminated and canceled in accordance with paragraph 2, 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.  Each DER corresponds to one Phantom Share to be granted to the Grantee pursuant to Section 3(c) of the Employment Agreement (the “Phantom Share Award”).  For each DER then outstanding, if a cash dividend is paid 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.

 

2.           Termination/Cancelation of the DERs.

 

Outstanding DERs shall automatically terminate and be canceled as follows:

 

	
  

	
(a)

	
One DER will automatically terminate and be canceled on a one-for-one basis upon the vesting of Phantom Shares included in the Phantom Share Award.

 

  

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(b)

	
One DER will automatically terminate and be canceled on a one-for-one basis upon the forfeiture of Phantom Shares included in the Phantom Share Award.

 

	
  

	
(c)

	
On the date the Grantee’s employment with the Company terminates for any reason, one DER will automatically terminate and be canceled for each Phantom Share included in the Phantom Share Award that has not then been granted.

 

	
  

	
(d)

	
All outstanding DERs will automatically terminate and be canceled on June 30, 2017.

 

	
  

	
(e)

	
The Grantee shall have no further right to any payments in respect of a terminated or canceled DER; provided that the Grantee shall be entitled to the appropriate payment in respect of a Dividend Payment that occurs after the termination/cancelation date for a DER and before March 15 of the calendar year following such termination/cancelation date if the record date for such Dividend Payment occurred before such termination/cancelation date.

 

3.           Miscellaneous.

 

	
  

	
(a)

	
With respect to this Agreement, (i) the DERs 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 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 DERs 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.

 

	
  

	
(b)

	
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.

 

	
  

	
(c)

	
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.

 

  

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(d)

	
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 4(e).

 

	
  

	
(e)

	
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.

 

	
  

	
(f)

	
Nothing in this Agreement shall (i) confer on the Grantee any right to continue in the service of the Company or its Subsidiaries or otherwise confer any additional rights or benefits upon the Grantee with respect to the Grantee’s employment with the Company or (ii) interfere in any way with the right of the Company or its Subsidiaries and its stockholders to terminate the Grantee’s service at any time.

 

	
  

	
(g)

	
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.

 

[the remainder of the page left intentionally blank]

 

  

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

 

	  	
MFA FINANCIAL, INC.

	  	  
	  	  
	  	
Name:

	  	
Title:

	  	  
	  	  

 

  

-4-Unassociated Document

[BIOFUELS LETTERHEAD]

 

CONFIDENTIAL AND PROPRIETARY

 

June 30, 2011

 

Cargill, Incorporated

15407 McGinty Road, West MS 62

Wayzata, MN  55391

Attn: Dan Dye/Tim Claver

 

Re:  BioFuel DDG Marketing Agreements

 

Dear Mr. Dye and Mr. Claver:

 

We direct your attention to (a) the following agreements by and among Cargill, Incorporated ( “Cargill”) and our subsidiary, Buffalo Lake Energy, LLC (“BLE”): (i) the Distillers Grains Marketing Agreement, dated as of September 25, 2006 (the “BLE Distillers Grains Marketing Agreement”); and (ii) that certain Agreement and Omnibus Amendment  dated as of July 30, 2009 as modified and amended by that certain Letter Agreement dated as of September 23, 2010 (the “BLE Omnibus Agreement” and, together with the BLE Distillers Grains Marketing Agreement, the “BLE Agreements) and (b) the following agreements by and between Cargill and our subsidiary, Pioneer Trail Energy, LLC (“PTE”): (i) the Distillers Grains Marketing Agreement, dated as of September 25, 2006 (the “PTE Distillers Grains Marketing Agreement”); and (ii) that certain Agreement and Omnibus Amendment  dated as of July 30, 2009 as modified and amended by that certain Letter Agreement dated as of September 23, 2010 (the “PTE Omnibus Agreement” and, together with the PTE Distillers Grains Marketing Agreement, the “PTE Agreements”).

 

In consideration of the mutual agreements contained in this letter and our discussions regarding the resolution of certain payment and performance obligations, respectively, of each of the parties hereto, the parties agree to the following:

 

	
1.  

	
Notwithstanding anything to the contrary contained in the BLE Agreements or the PTE Agreements, effective as of the end of business on July 1, 2011, the BLE Distillers Grains Marketing Agreement and the PTE Distillers Grains Marketing Agreement are hereby terminated in their entireties; provided that, the Producer under each respective Distillers Grains Marketing Agreement shall after the termination date continue to produce and sell to Cargill and deliver any DDG that Cargill has contracted to sell to third parties, as set forth on the attached “Schedule A”, or, as mutually agreed by each of Producer and Cargill, Producer shall take an assignment of such contracts and be responsible for their full performance thereafter or such contracts shall be terminated and Producer or its new marketer Gavilon shall enter replacement contracts with such parties on the same terms; and provided further, that, subject to the last sentence of Section 2 below, Cargill will pay the Producers for all invoices either outstanding as of the date hereof, or as may arise in the future due to the Producers complying with the immediately preceding proviso, in each case in accordance with the terms set forth in the BLE Agreements and the PTE Agreements and Producers shall pay Cargill commissions on all tons of DDG sales entered into by Cargill, regardless of whether such sales are delivered, assigned to Producer or Gavilon, or cancelled and a replacement contract entered into by Producer/Gavilon.

 

  

  

Letter Agreement re: Distillers Grains Marketing Agreements

Cargill, Inc.

June 30, 2011

 

	
2.  

	
BLE and PTE shall pay to Cargill $277,000 in satisfaction in full of all of the outstanding Deferred DG Commission Payments that have been accrued under the Omnibus Agreements (as defined therein).  The amount payable by BLE and PTE shall be collected by Cargill by setting off and short-paying the last-dated outstanding (as of the date of the termination of the BLE Distillers Grains Marketing Agreement and the PTE Distillers Grains Marketing Agreement) invoices for DDG.

 

The foregoing shall take effect as of the end of business on July 1, 2011, provided that Cargill may arrange for deliveries on June contracts into the first week of July.  All of the other terms and conditions of the BLE Agreements and PTE Agreements shall remain in full force and effect unless terminated, amended or modified in writing as provided herein.  The parties hereto further agree to cooperate in good faith with each other to transfer any existing DDG sales contracts, to facilitate pending or future deliveries of DDG thereunder, and to execute such further documentation concerning the understandings set forth herein and any issues relating thereto as may be reasonably necessary and mutually acceptable to the parties.

BioFuel Energy Corp., BioFuel Energy, LLC, BLE, PTE and Cargill, on behalf of themselves and their respective successors, assigns, executors and administrators, acknowledge and agree that in mutually terminating the BLE Distillers Grains Marketing Agreement and the PTE Distillers Grains Marketing Agreement no party admits liability of any kind.  Except for each party’s obligations to each other as set forth herein with regard to the execution of existing DDG sales contracts and the payments of the amounts referenced above, BioFuel Energy Corp., BioFuel Energy, LLC, BLE, and PTE hereby agree to fully release Cargill, its affiliates, directors, officers and shareholders  from any and all liabilities, obligations and responsibilities under the BLE Distillers Grains Marketing Agreement and the PTE Distillers Grains Marketing Agreement, and any claims based upon or related thereto, and Cargill hereby agrees to fully release BLE and PTE, their affiliates, directors, officers and shareholders, from any and all liabilities, obligations and responsibilities under the BLE Distillers Grains Marketing Agreement and the PTE Distillers Grains Marketing Agreement, and any claims based upon or related thereto.

If this letter comports with your understanding of our agreement, please sign below as the properly designated representative of Cargill and return to me (via pdf or fax) no later than June 30, 2011.

Sincerely,

BioFuel Energy Corp.

Scott Pearce

President and CEO

 

  

2

Letter Agreement re: Distillers Grains Marketing Agreements

Cargill, Inc.

June 30, 2011

BFE Operating Company, LLC

By:                                                  

Its:  Authorized Representative                                                      

Pioneer Trail Energy, LLC

By:                                                  

Its:  Authorized Representative                                                      

Buffalo Lake Energy, LLC

By:                                                  

Its: Authorized Representative                                                      

Agreed to as of the date first set forth above:

Cargill, Incorporated

_____________________________

Name:

Title:

  

3

  

 

EXHIBIT “A”

 

[See attached schedule(s) of open contracts.]

 

  

Page A-1

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