SEC Contract Filing

Filing Date: 2020-12-18

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>tm2038854d1_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.3</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REDWOOD TRUST, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PERFORMANCE STOCK UNIT AWARD AGREEMENT</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>PERFORMANCE STOCK
UNIT AWARD AGREEMENT</B> dated as of the [<B><I>Date</I></B>] day of [<B><I>Month</I></B>] [<B><I>Year</I></B>] (the &ldquo;<U>Award
Agreement</U>&rdquo;), by and between Redwood Trust, Inc., a Maryland corporation (the &ldquo;<U>Company</U>&rdquo;), and [<B><I>First
Name</I></B>] [<B><I>Last Name</I></B>], an employee, consultant or non-employee director of the Company (the &ldquo;<U>Participant</U>&rdquo;).
References to the Company herein shall include the subsidiaries and Affiliates (as defined in Exhibit B).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt">Pursuant to the Redwood
Trust, Inc. Amended and Restated 2014 Incentive Award Plan (as may be amended from time to time, the &ldquo;<U>Plan</U>&rdquo;),
the Compensation Committee (the &ldquo;<U>Committee</U>&rdquo;) of the Board of Directors of the Company has determined that the
Participant is to be granted an award of Performance Stock Units for shares of the Company&rsquo;s common stock, par value $0.01
per share (&ldquo;<U>Common Stock</U>&rdquo;), on the terms and conditions set forth herein and on <U>Exhibit A</U> hereto (the
 &ldquo;<U>Award</U>&rdquo;), and the Company hereby grants such Award.&nbsp;&nbsp; Any capitalized terms not defined herein shall
have the meaning set forth in the Plan.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Number of Performance Stock Units Awarded</U>.</B> &nbsp;&nbsp;This Award Agreement sets forth the terms and conditions of a
Performance Stock Unit Award with a target award of [______]&nbsp;shares of Common Stock, as the same may be adjusted to reflect
cash dividends declared on the Common Stock pursuant to Section 2 (the &ldquo;<U>Target Shares</U>&rdquo;).&nbsp;The number of
units representing shares of Common Stock that vest pursuant to this Award (the &ldquo;<U>Award Shares</U>&rdquo;) shall be determined
based upon the Company&rsquo;s achievement of the Performance Goals set forth in <U>Exhibit A</U> hereto (the &ldquo;<U>Performance
Goals</U>&rdquo;) and may range from zero percent (0%) to two hundred fifty percent (250%) of the Target Shares.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Effect of Dividends on Target Shares</U>.&nbsp;&nbsp;</B> On the last day of the Performance Period (as defined in <U>Exhibit
A</U>) (or, in the event the Performance Period ends due to a Change in Control, on the applicable vesting date), the number of
Target Shares set forth in Section 1 shall automatically be increased to reflect all cash dividends, if any, which have been declared
to all or substantially all holders of the outstanding shares of Common Stock with a record date during the period beginning on
the date of this Award Agreement and ending on the applicable vesting date (such period, the &ldquo;<U>Award Period</U>&rdquo;).&nbsp;&nbsp;On
such date, the Target Shares shall be automatically increased by an aggregate number of shares determined by multiplying (x) the
number of Target Shares set forth in Section 1 by (y) the Dividend Reinvestment Factor (as defined below) with respect to the Award
Period.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Dividend
Reinvestment Factor</U>&rdquo; shall mean, with respect to the Company and a designated period of time, the number of shares of
Common Stock that would have been acquired from the reinvestment of cash dividends, if any, which have been declared to all or
substantially all holders of the outstanding shares of Common Stock with a record date during such designated period of time, with
respect to one share of Common Stock outstanding on the first day of such designated period of time.&nbsp;&nbsp;&nbsp;Such number
of shares shall be determined cumulatively, for each cash dividend declared with a record date during such designated period of
time (beginning with the first such cash dividend with a record date during such designated period of time and continuing chronologically
with each such subsequent cash dividend declared with a record date during such designated period of time (and in each case other
than the first such cash dividend, tak