<SEC-DOCUMENT>0001144204-16-140260.txt : 20161219
<SEC-HEADER>0001144204-16-140260.hdr.sgml : 20161219
<ACCEPTANCE-DATETIME>20161219162732
ACCESSION NUMBER:		0001144204-16-140260
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20161214
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20161219
DATE AS OF CHANGE:		20161219

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			REDWOOD TRUST INC
		CENTRAL INDEX KEY:			0000930236
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				680329422
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13759
		FILM NUMBER:		162059242

	BUSINESS ADDRESS:	
		STREET 1:		ONE BELVEDERE PLACE
		STREET 2:		SUITE 300
		CITY:			MILL VALLEY
		STATE:			CA
		ZIP:			94941
		BUSINESS PHONE:		(415) 380-2317

	MAIL ADDRESS:	
		STREET 1:		ONE BELVEDERE PLACE
		STREET 2:		SUITE 300
		CITY:			MILL VALLEY
		STATE:			CA
		ZIP:			94941
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v455116_8k.htm
<DESCRIPTION>8-K
<TEXT>
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B>&nbsp;</B></P>

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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B></B></P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B> &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B> &nbsp;</P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pursuant to Section&nbsp;13 OR 15(d) of The
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Date of Report (Date of earliest event reported):
December 14, 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>REDWOOD TRUST, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Maryland</B> &nbsp;</FONT></TD>
    <TD STYLE="width: 32%; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>001-13759</B></FONT></TD>
    <TD STYLE="width: 34%; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>68-0329422</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 10pt">(State or other jurisdiction of<BR>
 incorporation)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 10pt">(Commission File Number)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 10pt">(I.R.S. Employer Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>One Belvedere Place</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Suite&nbsp;300</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Mill Valley, California 94941</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of principal executive offices and
Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(415)&nbsp;389-7373</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Not Applicable</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Former name or former address, if changed since
last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="width: 96%; text-align: justify"><FONT STYLE="font-size: 10pt">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="width: 96%; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
</TABLE>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="width: 96%; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="width: 96%; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 5.02. Compensatory Arrangements of Certain Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(e) At a meeting held on December 14, 2016,
the Compensation Committee of the Board of Directors of Redwood Trust, Inc. (the &ldquo;Company&rdquo;) considered and approved
the following compensation matters for the officers of the Company noted below. Further disclosure regarding these and other compensation
matters will be included (i) in the Compensation Discussion and Analysis section of the Company&rsquo;s 2017 Annual Proxy Statement
to be filed with the Securities and Exchange Commission (&ldquo;SEC&rdquo;) in advance of the Company&rsquo;s 2017 Annual Meeting
of Stockholders, which meeting is currently scheduled to take place on May 18, 2017 or (ii) in other reports filed with the Securities
and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>2016 Year-End Long-Term Equity Compensation
Awards</U>. On December 14, 2016, the Compensation Committee made 2016 year-end long-term equity compensation awards to certain
officers of the Company. Two different types of equity awards were granted: Deferred Stock Units (&ldquo;DSUs&rdquo;) and Performance
Stock Units (&ldquo;PSUs&rdquo;). The terms of each of these two types of awards are summarized below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.2in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">The DSUs granted on December 14, 2016 will vest over four years, with 25% of each award vesting on January 31, 2018, and an additional 6.25% vesting on the last day of each subsequent quarter (beginning with the quarter ending March 31, 2018), with full vesting of the final 6.25% on December 13, 2020. Shares of Company common stock underlying these DSUs will be distributed to the recipients in shares of common stock not later than December 31, 2020, unless distribution is electively deferred by a recipient under the terms of the Company&rsquo;s Executive Deferred Compensation Plan. The number of DSUs granted to each officer was determined based on a dollar amount for each award divided by the closing price of the Company&rsquo;s common stock on the New York Stock Exchange (&ldquo;NYSE&rdquo;) on the grant date.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.2in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Each DSU granted on December 14, 2016 had a grant date fair value of $15.28, which was determined in accordance with FASB Accounting Standards Codification Topic 718 at the time the grant was made. The terms of the DSUs granted on December 14, 2016 are generally consistent with the terms of the 2015 year-end long-term equity compensation awards made to Named Executive Officers. The terms of these DSUs are set forth in the Form of Deferred Stock Unit Award Agreement (which is included as Exhibit 10.2 to the Company&rsquo;s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, filed on August 8, 2014) and the 2014 Redwood Trust, Inc. Incentive Award Plan (which is included as Exhibit 10.1 to the Company&rsquo;s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, filed on August 8, 2014) (the &ldquo;2014 Incentive Plan&rdquo;). The terms of the DSUs include, without limitation, provisions relating to dividend equivalent rights, forfeiture, mandatory net settlement for income tax withholding purposes, and change-in-control that are set forth in the above-referenced Form of Deferred Stock Unit Award Agreement and 2014 Incentive Plan, but which are not summarized above.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.2in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">The PSUs granted on December 14, 2016 are performance-based equity awards under which the number of underlying shares of Company common stock that vest and that the recipient becomes entitled to receive at the time of vesting will generally range from 0% to 200% of the target number of PSUs granted, with the target number of PSUs granted being adjusted to reflect the value of any dividends declared on Company common stock during the vesting period (as further described below). Vesting of these PSUs will generally occur at the end of three years (on December 13, 2019) based on four different two-year performance measurement periods and continued employment through December 13, 2019. The PSUs will be divided into four tranches with staggered two-year performance measurement periods beginning on: the grant date; the three month anniversary of the grant date; the six month anniversary of the grant date; and the nine month anniversary of the grant date, respectively. While the three-year vesting period for the PSUs is consistent with the vesting period for performance stock units granted in previous years, the use of four tranches with staggered two-year performance measurement periods is a change from the structure of performance stock units granted in previous years.&nbsp;&nbsp;This change was implemented by the Compensation Committee for this December 14, 2016 grant of PSUs to seek to better align the performance-based vesting of the PSUs with shareholder returns over the three-year vesting period for the PSUs.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Performance-based vesting of each tranche is based on total stockholder return (&ldquo;TSR&rdquo;) over the respective two-year performance measurement period, as follows:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-size: 10pt">o</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">If two-year TSR is negative, then 0% of the PSUs will vest;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-size: 10pt">o</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">If two-year TSR is 16.00%, then 100% of the PSUs will vest;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">-</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">If two-year TSR is between 0% and 16.00%, then between 0% and 100% of the PSUs will vest determined based on a straight-line, mathematical interpolation between the applicable vesting percentages;</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-size: 10pt">o</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">If two-year TSR is greater than or equal to 71.75%, then 200% of the PSUs will vest; and</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">-</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">If two-year TSR is between 16.00% and 71.75%, then between 100% and 200% of the PSUs will vest determined based on a straight-line, mathematical interpolation between the applicable vesting percentages.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms of the PSUs, two-year TSR for
a performance measurement period is defined as the percentage by which the Per Share Price (defined below) as of the last day of
such performance measurement period has increased or decreased, as applicable, relative to the Per Share Price as of the first
day of such performance measurement period, adjusted to include the impact on such increase or decrease that would be realized
if all cash dividends declared on a share of Company common stock during such two-year performance measurement period were reinvested
in Company common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;Per Share Price&rdquo; shall mean as
of any date, the average of the closing prices of a share of Company common stock on the NYSE during the sixty (60) consecutive
trading days ending on the trading day prior to such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Subject to vesting, shares of Company common
stock underlying these PSUs will be distributed to the recipients not later than December 31, 2019, unless distribution is electively
deferred by a recipient under the terms of the Company&rsquo;s Executive Deferred Compensation Plan. At the time of vesting, the
value of any dividends declared during the vesting period will be reflected in the PSUs by increasing the target number of PSUs
granted by an amount corresponding to the incremental number of shares of Company common stock that a stockholder would have acquired
during the three-year vesting period had all dividends during that period been reinvested in Company common stock. Between the
vesting of these PSUs and the delivery of the underlying shares of Company common stock, the underlying vested award shares will
have attached dividend equivalent rights, resulting in the payment of dividend equivalents each time the Company declares a common
stock dividend during that period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each PSU granted on December 14, 2016 had a grant date fair value of $13.24, which was determined in accordance with FASB Accounting Standards Codification Topic 718
at the time the grant was made. The terms of these PSUs are set forth in the Form of Performance Stock Unit Award Agreement (which
is included as Exhibit 10.2 hereto) and the 2014 Incentive Plan. The terms of the PSUs include, without limitation, provisions
relating to forfeiture, retirement, mandatory net settlement for income tax withholding purposes, and change-in-control that are
set forth in the above-referenced Form of Performance Stock Unit Award Agreement and 2014 Incentive Plan, but which are not summarized
above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with the requirements of Item
5.02(e) of Form 8-K, the 2016 year-end long-term equity compensation awards granted on December 14, 2016 to the following officers
of the Company are set forth in the table below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Deferred&nbsp;Stock&nbsp;Units&nbsp;(&ldquo;DSUs&rdquo;)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Performance&nbsp;Stock&nbsp;Units&nbsp;(&ldquo;PSUs&rdquo;)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">#</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Aggregate&nbsp;Grant</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;Date&nbsp;Fair&nbsp;Value<SUP>(1)(2)</SUP></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">#</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Aggregate&nbsp;Grant</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;Date&nbsp;Fair&nbsp;Value<SUP>(1)(2)</SUP></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left">Martin S. Hughes, <BR> Chief Executive Officer</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">81,807</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,250,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">94,410</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,250,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Christopher J. Abate, <BR> President and Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,176</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">675,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,981</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">675,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Shoshone (Bo) Stern, <BR> Chief Investment Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,361</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">250,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,882</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">250,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Andrew P. Stone, <BR> Executive Vice President and General Counsel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,178</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,211</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt"><SUP>(1)</SUP></FONT></TD>
    <TD STYLE="width: 95%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Determined in accordance with FASB Accounting Standards Codification Topic 718 at the time the grant was made.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Rounded to nearest $100.00 increment.</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>2017 Base Salaries</U>.&nbsp;&nbsp;On December
14, 2016, the Compensation Committee made determinations regarding the 2017 base salaries of certain officers of the Company.&nbsp;&nbsp;In
accordance with the requirements of Item 5.02(e) of Form 8-K, the 2017 base salaries of the following officers of the Company are
set forth in the table below, together with the percentage increase from their 2016 base salaries:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">%&nbsp;Change&nbsp;from</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">2017 Base&nbsp;Salary</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">2016&nbsp;Base&nbsp;Salary<SUP>1</SUP></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="width: 68%; text-align: left">Martin S. Hughes, <BR> Chief Executive Officer</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 13%; text-align: right">750,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Christopher J. Abate, <BR> President and Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">550,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Shoshone (Bo) Stern, <BR> Chief Investment Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">375,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Andrew P. Stone, <BR> Executive Vice President and General Counsel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.7</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt"><SUP>(1)</SUP></FONT></TD>
    <TD STYLE="width: 95%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Percent change is calculated from the base salary in effect at December 31, 2016.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>2017 Target Annual Bonuses</U>.&nbsp;&nbsp;On
December 14, 2016, the Compensation Committee made determinations regarding the 2017 target annual bonuses of certain officers
of the Company.&nbsp;&nbsp;As in past years, target annual bonuses for these officers for 2017 will continue to be weighted 75%
on the achievement of overall Company financial performance (which portion of the annual bonus is also referred to as the Company
performance bonus) and 25% on the achievement of pre-established individual goals performance (which portion of the annual bonus
is also referred to as the individual performance bonus).&nbsp;&nbsp;In accordance with the requirements of Item 5.02(e) of Form
8-K, the 2017 target annual bonuses of the following officers of the Company are set forth in the table below, together with a
comparison to their target annual bonuses for 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">2017 Target<BR> &nbsp;Annual&nbsp;Bonus<BR> (as&nbsp;a&nbsp;%&nbsp;of<BR>
 2017&nbsp;Base&nbsp;Salary)</TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">%&nbsp;Change&nbsp;from</FONT><BR> <FONT STYLE="font-size: 10pt">2016&nbsp;Target</FONT><BR> <FONT STYLE="font-size: 10pt">Annual&nbsp;Bonus</FONT><BR> <FONT STYLE="font-size: 10pt">Percentage (%)<SUP>1</SUP></FONT></TD><TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center">2017&nbsp;Target&nbsp;<BR> Annual&nbsp;Bonus&nbsp;($)</TD><TD NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 55%; text-align: left">Martin S. Hughes, <BR> Chief Executive Officer</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">175</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">1,312,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Christopher J. Abate, <BR> President and Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">825,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;Shoshone (Bo) Stern, <BR> Chief Investment Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">125</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">468,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Andrew P. Stone, <BR> Executive Vice President and General Counsel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">110</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">440,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt"><SUP>(1)</SUP></FONT></TD>
    <TD STYLE="width: 95%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Percent change is calculated from the target annual bonus in effect at December 31, 2016.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Subsequent Compensation Matter Determinations</U>.&nbsp;&nbsp;At
one or more subsequent meetings of the Compensation Committee, additional determinations regarding compensation matters for executive
officers and other employees of the Company will be made.&nbsp;&nbsp;These matters will include, without limitation, determinations
regarding 2016 annual Company performance bonuses, 2016 annual individual performance bonuses, and the 2017 Company performance
bonus formula.&nbsp;&nbsp;As required by SEC regulations, determinations relating to these matters will be disclosed on Form 8-K
(or Form 10-K) and/or within the Company&rsquo;s 2017 Annual Proxy Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 9.01. Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(d) Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Exhibit 10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
of Performance Stock Unit Award Agreement under 2014 Incentive Plan</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</P>

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<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Date: December 19, 2016</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt"><FONT STYLE="font-size: 10pt">REDWOOD TRUST, INC.&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="width: 50%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 46%; padding-right: 0.8pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">/s/ Andrew P. Stone</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Andrew P. Stone</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Executive Vice President, General Counsel, and Secretary</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Exhibit Index</B></P>

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    <TD STYLE="vertical-align: bottom; width: 15%; border-bottom: Black 1pt solid; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt"><B>Exhibit&nbsp;No</B>.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 84%; border-bottom: Black 1pt solid; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt"><B>Exhibit&nbsp;Title</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Form of Performance Stock Unit Award Agreement under 2014 Incentive Plan</FONT></TD></TR>
</TABLE>
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v455116_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.1</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>PERFORMANCE STOCK UNIT AWARD
AGREEMENT</B> dated as of the __ day of ____, 20__ (the &ldquo;Award Agreement&rdquo;), by and between Redwood Trust, Inc., a Maryland
corporation (the &ldquo;Company&rdquo;), and ______, an employee of the Company (the &ldquo;Participant&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt">Pursuant to the Redwood
Trust, Inc. 2014 Incentive Award Plan (as it may be amended from time to time, the &ldquo;Plan&rdquo;), the Compensation
Committee (the &ldquo;Committee&rdquo;) of the Board of Directors of the Company has determined that the Participant is to be
granted a Performance Stock Unit award for shares of the Company&rsquo;s common stock, par value $0.01 per share
(&ldquo;Common Stock&rdquo;) on the terms and conditions set forth herein and on <U>Exhibit A</U> hereto (the
&ldquo;Award&rdquo;), and the Company hereby grants such Award.&nbsp;&nbsp;This Award is being made in connection with a
deferral of compensation by the Participant pursuant to the Redwood Trust, Inc. Executive Deferred Compensation Plan (the
&ldquo;Deferred Compensation Plan&rdquo;) and the executed Deferral Election attached hereto as <U>Exhibit B</U> (the
&ldquo;Deferral Election&rdquo;). Any capitalized terms not defined herein shall have the meaning set forth in the Plan or
the Deferred Compensation Plan, as applicable.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>1.&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 <U>______</U>&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;Target Shares&rdquo;).&nbsp;&nbsp;The
Award shall be divided into four tranches of an equal number of Target Shares, with the number of Target Shares per tranche
and the associated Performance Period (as defined below) set forth in <U>Exhibit A</U> hereto. The number of units
representing shares of Common Stock that shall be credited to the Participant&rsquo;s Deferral Account pursuant to this Award
(the &ldquo;Award Shares&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;Performance Goals&rdquo;) and may range from [zero] percent ([0]%) to [two
hundred] percent ([200]%) of the Target Shares.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>
<B><U>Effect of Dividends on Target Shares</U>.&nbsp;&nbsp;</B> Except as set forth under the heading &ldquo;Dividends&rdquo; in
<U>Exhibit A</U> hereto, on the applicable vesting date, the number of Target Shares for each tranche set forth in <U>Exhibit A</U>
shall automatically be increased to reflect all cash dividends, if any, which have been declared and/or paid to all or substantially
all holders of the outstanding shares of Common Stock during the period beginning on the date of this Award Agreement and ending
on the vesting date (the &ldquo;Dividend Vesting Period&rdquo;).&nbsp;&nbsp;On such date, the Target Shares for each tranche shall
be automatically increased by an aggregate number of shares determined by multiplying (x) the number of Target Shares for each
tranche set forth in <U>Exhibit A</U> by (y) the Target Share Dividend Reinvestment Factor (as defined below).</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Target Share Dividend
Reinvestment Factor&rdquo; shall mean the number of shares of Common Stock that would have been acquired from the reinvestment
of cash dividends, if any, which have been declared and/or paid to all or substantially all holders of the outstanding shares of
Common Stock during the Dividend Vesting Period, with respect to one share of Common Stock outstanding on the first day of the
Dividend Vesting Period.&nbsp;&nbsp;&nbsp;Such number of shares shall be determined cumulatively, for each cash dividend declared
and/or paid during the Dividend Vesting Period (beginning with the first cash dividend declared and/or paid during the Dividend
Vesting Period and continuing chronologically with each subsequent cash dividend declared and/or paid during the Dividend Vesting
Period (and in each case other than the first such cash dividend, taking into account any increase in shares resulting from the
application of this formula to the chronologically immediately preceding cash dividend)), by multiplying (i) the applicable number
of shares of Common Stock immediately prior to the record date of such cash dividend (which in the case of the first cash dividend
paid during the Dividend Vesting Period shall be one) by (ii) the per share amount of such cash dividend and dividing the product
by the Fair Market Value per share of Common Stock on the payment date of such dividend (or if such payment date is subsequent
to the end of the Dividend Vesting Period, the Fair Market Value per share of Common Stock on the last day of the Dividend Vesting
Period).</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any amounts that may become
payable in respect of this Section 2 shall be treated separately from the Award Shares and the rights arising in connection therewith
for purposes of Section 409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Vesting
and Payment of Award</U>.</B> &nbsp;&nbsp;The Award Shares shall vest and be credited as set forth in <U>Exhibit A</U>, if at all,
provided that the Committee determines, in its sole discretion, whether and to what extent the Performance Goals set forth in <U>Exhibit
A</U> have been attained.&nbsp;&nbsp;The crediting of the Award Shares is contingent on the attainment of the Performance Goals
as set forth on <U>Exhibit A</U>.&nbsp;&nbsp;In connection with such determination by the Committee and subject to the provisions
of the Plan and this Award Agreement (including <U>Exhibit A</U>), the Participant shall be entitled to crediting of that portion
of the Performance Stock Units as corresponds to the Performance Goals attained (as determined by the Committee in its sole discretion)
as set forth on <U>Exhibit A</U>.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt">No Award Shares shall be credited
to the Participant&rsquo;s Deferral Account unless the Committee determines, in its sole discretion, whether and to what extent
the Performance Goals set forth in <U>Exhibit A</U> have been attained and the number of Award Shares earned pursuant to the Award
have been determined and have vested in accordance with the provisions of <U>Exhibit A</U>.&nbsp;&nbsp;Any shares of Common Stock
in respect of Award Shares vested and credited to the Participant&rsquo;s Deferral Account shall be delivered to the Participant
at the time or times provided in the Deferral Election and the Deferred Compensation Plan (or any re-deferral election made in
accordance with Section 409A of the Code and the terms of the Deferred Compensation Plan).&nbsp;&nbsp;[In connection with the delivery
of Award Shares to the Participant, the Participant and the Company agree that delivery of such Award Shares shall be net of a
number of such shares which shall be forfeited by the Participant in order to satisfy the applicable tax withholding obligation
relating to such delivery to the Participant.]</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 83.25pt; text-align: justify; text-indent: -38.25pt"><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Forfeiture
of Performance Stock Units</U>.</B> &nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as otherwise may be provided in <U>Exhibit A</U> under subclause (i) of &ldquo;Vesting (Change in Control)&rdquo;, upon (i) the
Participant&rsquo;s Retirement (as defined below) or (ii) the Participant&rsquo;s Termination of Service as an Employee by the
Company without Cause (as defined below), in any case, prior to expiration of the three year period beginning on the date of this
Award Agreement (the &ldquo;Vesting Period&rdquo;), the Target Shares shall be reduced on a pro-rata basis to reflect the number
of days of employment completed during the Vesting Period. In the event any such termination occurs prior to the end of an applicable
Performance Period, the Award tranche related to such Performance Period shall continue to be eligible to vest and become payable
based on such prorated number of Target Shares for such tranche and the Performance Goals in accordance with the provisions of
<U>Exhibit A</U>.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the Participant&rsquo;s Termination of Service as an Employee due to death or Disability (or, if the Participant is party
to an employment agreement with the Company, in accordance with such employment agreement in the case of a Termination
of Service for &ldquo;Good Reason&rdquo;, as defined in such employment agreement) prior to expiration of the Vesting Period, the
Target Shares shall not be reduced. In the event any such termination occurs prior to the end of an applicable Performance
Period, the Award tranche related to such Performance Period shall continue to be eligible to vest and become payable based
on the number of Target Shares for such tranche and the Performance Goals in accordance with the provisions of <U>Exhibit
A</U>.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as otherwise may be provided in <U>Exhibit A</U> hereto or in an employment agreement between the Participant and the Company,
upon the Participant&rsquo;s Termination of Service as an Employee for any reason other than death, Disability, Retirement or without
Cause, prior to expiration of the Vesting Period, all Award Shares shall become ineligible for crediting to the Participant&rsquo;s
Deferral Account and shall be forfeited.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Award Shares which have vested and been credited to the Participant&rsquo;s Deferral Account prior to (or in connection with) the
Participant&rsquo;s Termination of Service as an Employee shall not be forfeited in the event of such Termination of Service as
an Employee but rather delivery of such shares shall continue to be governed by the terms of the Deferral Election and the Deferred
Compensation Plan (or any re-deferral election made in accordance with Section 409A of the Code and the terms of the Deferred Compensation
Plan).</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this Award
Agreement, &ldquo;Cause&rdquo; shall mean (i) the Participant&rsquo;s material failure to substantially perform the reasonable
and lawful duties of his or her position for the Company, which failure shall continue for thirty (30) days after notice thereof
by the Company to the Participant; (ii) acts or omissions constituting gross negligence, recklessness or willful misconduct on
the part of the Participant in respect of the performance of his or her duties hereunder, his or her fiduciary obligations or otherwise
relating to the business of the Company; (iii) the habitual or repeated neglect of his or her duties by the Participant; (iv) the
Participant&rsquo;s conviction of a felony; (v) theft or embezzlement, or attempted theft or embezzlement, of money or tangible
or intangible assets or property of the Company or its employees, customers, clients, or others having business relations with
the Company; (vi) any act of moral turpitude by the Participant injurious to the interest, property, operations, business or reputation
of the Company; or (vii) unauthorized use or disclosure of trade secrets or confidential or proprietary information pertaining
to Company business.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this Award
Agreement, &ldquo;Retirement&rdquo; shall mean a Termination of Service as an Employee due to retirement (as determined by the
Committee in its sole discretion) if such Termination of Service as an Employee (i) occurs on or after the completion by the Participant
of 10 years of employment with the Company (which employment need not be continuous), and (ii) the sum of the Participant&rsquo;s
age and years of employment as an Employee equals or exceeds 70 (in each case measured in years, rounded down to the nearest whole
number).</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustments</U>.&nbsp;&nbsp;</B>
This Award and the Performance Goals shall be subject to adjustment as set forth in this Award Agreement and the Plan.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>At-Will
Employment</U>.</B> &nbsp;&nbsp;This Award Agreement is not an employment contract and nothing in this Award Agreement shall be
deemed to create in any way whatsoever any obligation of the Participant to continue in the employ or service of the Company or
on the part of the Company to continue the employment or other service relationship of the Participant with the Company.&nbsp;&nbsp;It
is understood and agreed to by the Participant that the Award and participation in the Plan or the Deferred Compensation Plan does
not alter the at-will nature of the Participant&rsquo;s relationship with the Company (subject to the terms of any separate employment
agreement the Participant may have with the Company).&nbsp;&nbsp;The at-will nature of the Participant&rsquo;s relationship with
the Company can only be altered by a writing signed by both the Participant and the President of the Company.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.</B>
&nbsp;&nbsp;Any notice required or permitted under this Award Agreement shall be deemed given when delivered personally, or when
deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Participant either at the Participant&rsquo;s
address set forth below or such other address as the Participant may designate in writing to the Company, and to the Company:&nbsp;&nbsp;Attention:&nbsp;&nbsp;General
Counsel, at the Company&rsquo;s address or such other address as the Company may designate in writing to the Participant.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Failure
to Enforce Not a Waiver</U>.</B> &nbsp;&nbsp;The failure of the Company to enforce at any time any provision of this Award Agreement
shall in no way be construed to be a waiver of such provision or of any other provision hereof.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Existing
Agreements</U>.</B> &nbsp;&nbsp;This Award Agreement does not supersede nor does it modify any existing agreements between the
Participant and the Company.&nbsp;[Notwithstanding the foregoing, if the Participant is a party to an employment agreement with
the Company that includes provisions relating to the treatment of equity awards upon termination of the Participant&rsquo;s employment
with the Company, then (i) the terms of this Award Agreement shall supersede the terms of such employment agreement solely with
respect to the treatment of the Performance Stock Unit award granted hereby upon termination of the Participant&rsquo;s employment
with the Company due to Retirement as defined herein; and (ii) except as set forth on <U>Exhibit A</U> under &ldquo;Vesting (Change
in Control)&rdquo;, the terms of such employment agreement shall supersede the terms of this Award Agreement solely with respect
to the treatment of the Performance Stock Unit award granted hereby upon termination of the Participant&rsquo;s employment with
the Company for any other reason.]</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Incorporation
of Plan</U>.</B> &nbsp;&nbsp;The Plan and the Deferred Compensation Plan are incorporated by reference and made a part of this
Award Agreement, and this Award Agreement is subject to all terms and conditions of the Plan and the Deferred Compensation Plan
as in effect from time to time.&nbsp;&nbsp;Notwithstanding the foregoing, this Award Agreement is intended to comply with Section
409A of the Code and this Award Agreement, the Plan and Deferred Compensation Plan shall be interpreted in a manner consistent
with such intent, and any provisions of this Award Agreement, the Plan or the Deferred Compensation Plan that would cause the Award
to fail to satisfy the requirements for an effective deferral of compensation under Section 409A of the Code shall have no force
and effect.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments</U>.</B>
&nbsp;&nbsp;&nbsp;This Award Agreement may be amended or modified at any time by an instrument in writing signed by the parties
hereto.&nbsp;&nbsp;Notwithstanding the foregoing, the Deferral Election shall be irrevocable and the dates specified for distribution
of vested Award Shares may not be modified after the date hereof except as otherwise permitted under Section 409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Withholding</U>.<U></U></B>
&nbsp;&nbsp;&nbsp;To the extent that any Federal Insurance Contributions Act tax withholding obligations arise in connection with the Award
prior to the applicable vesting date, the Administrator shall accelerate the payment of a portion of the Award sufficient to
satisfy (but not in excess of) such tax withholding obligations and any tax withholding obligations associated with any such
accelerated payment, and the Administrator shall withhold such amounts in satisfaction of such withholding obligations.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
409A</U></B>. Notwithstanding anything to the contrary in this Award Agreement, no amounts shall be paid to the Participant under
this Award Agreement during the six (6)-month period following the Participant&rsquo;s &ldquo;separation from service&rdquo; (within
the meaning of Section 409A of the Code) to the extent that the Administrator determines that the Participant is a &ldquo;specified
employee&rdquo; (within the meaning of Section 409A of the Code) at the time of such separation from service and that paying such
amounts at the time or times indicated in this Award Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i)
of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day
following the end of such six (6)-month period (or such earlier date upon which such amount can be paid under Section 409A of the
Code without being subject to such additional taxes), the Company shall pay to the Participant in a lump-sum all amounts that would
have otherwise been payable to the Participant during such six (6)-month period under this Award Agreement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center">[<I>Signature page follows</I>.]</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 45pt"><B>IN WITNESS WHEREOF</B>, the
parties have executed this Award Agreement on the day and year first above written.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt"><B>REDWOOD TRUST, INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="width: 5%; text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="width: 45%; text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">Andrew P. Stone</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">General Counsel &amp; Corporate Secretary</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">One Belvedere Place, Suite 300</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">Mill Valley, CA&nbsp;&nbsp;94941</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">The undersigned hereby accepts and agrees to all the terms and provisions of this Award Agreement and to all the terms and provisions of the Plan herein incorporated by reference.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-family: Calibri,sans-serif; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">[Insert Participant Name]</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">c/o Redwood Trust, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">One Belvedere Place, Suite 300</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">Mill Valley, CA&nbsp;&nbsp;94941</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Exhibit
A</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Performance
Goals</B></FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B><U>Target Shares</U>:</B> the number of
Target Shares per tranche is set forth below, in each case as the number may be adjusted to reflect cash dividends
declared and/or paid on the Common Stock pursuant to Section 2 of the Award Agreement:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Tranche A</U>:</B>
_____&nbsp;target shares</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Tranche B</U>:</B> <U></U>
_____&nbsp;target shares</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Tranche C</U>:</B> <U></U>
_____&nbsp;target shares</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Tranche D</U>:</B> <U></U>
_____&nbsp;target shares</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B><U>Performance Period</U>:</B> The performance
period for each tranche begins on the commencement date set forth below and ends on the earlier to occur of (i) the end date set
forth below or (ii) the consummation of a Change in Control (each, a &ldquo;Performance Period&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Tranche A</U>: </B>begins [<I>insert
grant date</I>] and ends on [<I>insert one day prior to 2<SUP>nd</SUP> anniversary of grant date</I>]</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Tranche B</U>:</B> begins [<I>insert
grant date plus three months</I>] and ends on [<I>insert one day prior to 2<SUP>nd</SUP> anniversary of grant date plus three months</I>]</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Tranche C</U>:</B> begins [<I>insert
grant date plus six months</I>] and ends on [<I>insert one day prior to 2<SUP>nd</SUP> anniversary of grant date plus six months</I>]</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Tranche D</U>:</B> begins [<I>insert
grant date plus nine months</I>] and ends on [<I>insert one day prior to 2<SUP>nd</SUP> anniversary of grant date plus nine months</I>]</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B><U>Performance Goals</U>:</B> For each tranche,
the number of Award Shares which will be eligible for vesting and crediting to the Participant&rsquo;s Deferral Account, if any,
for the applicable Performance Period shall be determined based upon the Company&rsquo;s cumulative total shareholder return (&ldquo;TSR&rdquo;,
as defined below) for the applicable Performance Period in accordance with the following schedule:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 80%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">Total Shareholder Return Goal</P>
        <P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">(&ldquo;TSR Goal&rdquo;)</P></TD>
    <TD NOWRAP STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-family: Calibri,sans-serif; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">%&nbsp;of&nbsp;Target&nbsp;Shares&nbsp;Creditable per Tranche <BR>
(&ldquo;Creditable Award Shares&rdquo;)</FONT></TD>
    <TD NOWRAP STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 37%; text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">Less than [0]%</FONT></TD>
    <TD STYLE="width: 1%; text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="width: 60%; text-align: right; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">[0]</FONT></TD>
    <TD STYLE="width: 1%; text-align: right; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">[16.00]%</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: right; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">[100]</FONT></TD>
    <TD STYLE="text-align: right; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">[71.75]% or greater</FONT></TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-family: Calibri,sans-serif">&nbsp;</TD>
    <TD STYLE="text-align: right; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">[200]</FONT></TD>
    <TD STYLE="text-align: right; font-family: Calibri,sans-serif"><FONT STYLE="font-family: Times New Roman,serif; font-size: 10pt">%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">If the actual performance results fall between
[0]% and [16.00]% TSR, or between [16.00]% and [71.75]% TSR, the actual number of Creditable Award Shares shall be determined based
on a straight-line, mathematical interpolation between the applicable percentages.&nbsp;&nbsp;With respect to each tranche, in
no event shall the number of Creditable Award Shares exceed [200]% of the applicable number of Target Shares.&nbsp;&nbsp;In the
event the TSR is equal to or less than [0]% at the end of a Performance Period, all Award Shares for such tranche shall become
ineligible for crediting to the Participant&rsquo;s Deferral Account and shall be forfeited. For each tranche, any Award Shares
that are not eligible for vesting as of the end of the applicable Performance Period likewise shall become ineligible for crediting
to the Participant&rsquo;s Deferral Account and shall be forfeited.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">Notwithstanding the foregoing paragraph, in the
event that (i) a Performance Period ends upon a Change in Control and (ii) the Participant either remains in continuous employment
until immediately prior to such Change in Control or experiences a Termination of Service as an Employee prior to such Change in
Control and the Award Shares are not subject to forfeiture in connection with such termination under Section 4(c) of this Award
Agreement (including without limitation in connection with a Termination of Service by the Participation for Good Reason in accordance
with the Participant&rsquo;s employment agreement), then the number of Creditable Award Shares will be determined by reference
to the applicable TSR Goal, pro-rated on an annualized basis to reflect the shortened Performance Period. For example, if a Change
in Control occurs one year after the commencement date of a Performance Period, then the TSR Goal to earn [100]% of the Target
Shares for the applicable tranche would equal [7.72]% and the TSR Goal to earn [200]% of the Target Shares for such tranche would
equal [31.04]%.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B><U>Vesting (no Change in Control)</U></B>: If
there is no Change in Control during the Vesting Period, then any Creditable Award Shares shall vest and be credited to the Participant&rsquo;s
Deferral Account on the last day of the Vesting Period, subject to the Participant&rsquo;s continued employment through such date.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">However, in the event the Participant experiences
a Termination of Service as an Employee by the Company without Cause (or, if the Participant is party to an employment agreement
with the Company, by the Participant for Good Reason) or due to the Participant&rsquo;s
Retirement, death or Disability, in any case, prior to the last day of the Vesting Period, then any Award Shares held by the Participant
that are Creditable Award Shares as of such termination date or that become Creditable Award Shares following the termination date
in accordance with this Award Agreement (or, if the Participant is party to an employment agreement with the Company, in accordance
with such employment agreement in the case of a Termination of Service for Good Reason) may be reduced in accordance with Section
4(a) of this Award Agreement and, in any such event, shall vest and be credited to the Participant&rsquo;s Deferral Account on
the later of such termination date or the last day of the applicable Performance Period.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B><U>Vesting (Change in Control)</U></B>: If a
Change in Control occurs during the Vesting Period and:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(i)</TD><TD STYLE="text-align: justify">the Participant remains in continuous employment until immediately prior to such Change in
                                                                 Control, then any Creditable Award Shares held by the Participant as of or due to the Change in Control shall remain
                                                                 outstanding and eligible to vest and be credited to the Participant&rsquo;s Deferral Account on the last day of the Vesting
                                                                 Period, subject to continued employment through such date. However, if the Participant experiences a Qualifying Termination
                                                                 (as defined below) following such Change in Control but prior to or on the last day of the Vesting Period, then any
                                                                 Creditable Award                                                                  Shares
                                                                 shall vest and be credited to the Participant&rsquo;s
                                                                 Deferral Account as of such termination; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38.7pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(ii)</TD><TD STYLE="text-align: justify">the Participant experienced a Termination of Service as an Employee, prior to the date of the Change
in Control, due to death, Disability, Retirement, without Cause, or, if the Participant is party to an employment agreement with
the Company, for Good Reason, in any case, then any Creditable Award Shares held by the Participant as of or due to the Change
in Control shall vest immediately prior to such Change in Control and shall be credited to the Participant&rsquo;s Deferral Account
on the date of such Change in Control.</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">Notwithstanding the foregoing, in the event that
a successor corporation in a Change in Control refuses to assume or substitute for the Award, then any Creditable Award Shares
held by the Participant as of or due to the Change in Control shall vest immediately prior to such Change in Control and shall
be credited to the Participant&rsquo;s Deferral Account on the date of such Change in Control.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"></P>




<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B><U>Dividends</U></B>: In the event a Change
in Control occurs during the Vesting Period and a successor corporation in such Change in Control assumes or substitutes for the
Award, then the number of Target Shares for each tranche shall be increased to reflect all cash dividends, if any, which have been
declared and/or paid to all or substantially all holders of the outstanding shares of Common Stock (and/or shares of common stock
of the successor corporation, as applicable) during the period beginning on (and including) the date of this Award Agreement and
ending on (and including) the applicable vesting date (such period, the &ldquo;<U>CIC Vesting Period</U>&rdquo;). On such vesting
date, the Target Shares for each tranche shall be automatically increased by an aggregate number of shares determined by multiplying
the number of Target Shares for each tranche by the Target Share Dividend Reinvestment Factor. Any calculations made pursuant to
this paragraph shall contemplate any necessary adjustments to the number of Target Shares for each tranche in accordance with Section
14.2 of the Plan in connection with such Change in Control.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">Any amounts that may become payable in respect
of this &ldquo;Dividend&rdquo; provision shall be treated separately from the Creditable Award Shares and the rights arising in
connection therewith for purposes of Section 409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B><U>Definitions</U>:</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&ldquo;<U>TSR</U>&rdquo;&nbsp;shall mean, for each
Performance Period, the Company&rsquo;s cumulative total shareholder return (rounded to the nearest hundredth), expressed as a
percentage determined as the quotient obtained by dividing:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">(A) the sum of:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">(x) the Per Share Price as
of the Valuation Date for such Performance Period, plus</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">(y) the Per Share Price as
of the Valuation Date for such Performance Period multiplied by the TSR Dividend Reinvestment Factor,</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">by,</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">(B) The average of the closing prices of the Company&rsquo;s
Common Stock during the sixty (60) consecutive trading days ending on the day prior to the first day of such Performance Period,
as set forth below for each tranche:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Tranche A: $______</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Tranche B: Average of the closing
prices of the Company&rsquo;s Common Stock during the sixty (60) consecutive trading days ending on ____, 20__</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Tranche C: Average of the closing
prices of the Company&rsquo;s Common Stock during the sixty (60) consecutive trading days ending on ____, 20__</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Tranche D: Average of the closing
prices of the Company&rsquo;s Common Stock during the sixty (60) consecutive trading days ending on ____, 20__</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">Notwithstanding the foregoing, the Committee shall
make appropriate adjustments in calculating TSR to reflect any dividends which may be declared during the sixty (60) consecutive
trading days prior to the end of a Performance Period, as determined by the Committee in its sole discretion. &nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&ldquo;<U>Per Share Price</U>&rdquo; shall mean
the average of the closing prices of the Company&rsquo;s Common Stock during the sixty (60) consecutive trading days ending on
the day prior to the applicable Valuation Date; <I>provided, however</I>, that for purposes of calculating the Per Share Price
in the event of a Change in Control the Per Share Price shall be the price per share of Common Stock paid in connection with such
Change in Control or, to the extent that the consideration in the Change in Control transaction is paid in stock of the acquiror
or its affiliate, then, unless otherwise determined by the Administrator (including in connection with valuing any shares that
are not publicly traded), Per Share Price shall mean the value of the consideration paid per share of Common Stock based on the
average of the closing trading prices of a share of such acquiror stock on the principal exchange on which such shares are then
traded for each trading day during the five consecutive trading days ending on and including the date on which a Change in Control
occurs.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&ldquo;<U>Valuation Date</U>&rdquo; means with
respect to each Performance Period, the last day of such Performance Period, as set forth below for each tranche; <I>provided,
however</I>, that in the event of a Change in Control that occurs prior to the last day of a Performance Period, the Valuation
Date shall mean the date of the Change in Control.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Tranche A: <U>[<I>insert one
day prior to 2<SUP>nd</SUP> anniversary of grant date</I>]</U></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Tranche B: <U>[<I>insert one
day prior to 2<SUP>nd</SUP> anniversary of grant date plus three months</I>]</U></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Tranche C: <U>[<I>insert one
day prior to 2<SUP>nd</SUP> anniversary of grant date plus six months</I>]</U></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Tranche D: <U>[<I>insert one
day prior to 2<SUP>nd</SUP> anniversary of grant date plus nine months</I>]</U></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&ldquo;<U>Qualifying Termination</U>&rdquo; means a Participant&rsquo;s
Termination of Service as an Employee (i) due to the Participant&rsquo;s death, Disability or Retirement or (ii) within 24 months
following a Change in Control, either by the Company without Cause or, if the Participant is party to an employment agreement with
the Company, by the Participant for Good Reason.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&ldquo;<U>TSR Dividend Reinvestment Factor</U>&rdquo; means with respect
to each Performance Period, the number of shares of Common Stock that would have been acquired from the reinvestment of cash dividends,
if any, which have been declared and/or paid to all or substantially all holders of the outstanding shares of Common Stock during
such Performance Period, with respect to one share of Common Stock outstanding on the first day of such Performance Period.&nbsp;&nbsp;&nbsp;Such
number of shares shall be determined cumulatively, for each cash dividend declared and/or paid during such Performance Period (beginning
with the first cash dividend declared and/or paid during such Performance Period and continuing chronologically with each subsequent
cash dividend declared and/or paid during such Performance Period (and in each case other than the first such cash dividend, taking
into account any increase in shares resulting from the application of this formula to the chronologically immediately preceding
cash dividend)), by multiplying (i) the applicable number of shares of Common Stock immediately prior to the record date of such
cash dividend (which in the case of the first cash dividend paid during such Performance Period shall be one) by (ii) the per share
amount of such cash dividend and dividing the product by the Fair Market Value per share of Common Stock on the payment date of
such dividend (or if such payment date is subsequent to the end of such Performance Period, the Fair Market Value per share of
Common Stock on the last day of such Performance Period).</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0">&nbsp;</P>


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