Deerfield Capital Corp.
EX-10.3
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<TYPE>EX-10.3
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<FILENAME>a09-15090_1ex10d3.htm
<DESCRIPTION>EX-10.3
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.3</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEERFIELD CAPITAL CORP.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Performance Share Award Agreement</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
Agreement (the &#147;Agreement&#148;), dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2009 (the &#147;Effective Date&#148;), between Deerfield Capital Corp., a Maryland
corporation (&#147;DFR&#148;), and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(the &#147;Participant&#148;), is made pursuant and subject to DFR&#146;s First Amended and
Restated Stock Incentive Plan (the &#147;Plan&#148;), a copy of which is attached hereto.&#160; All terms used herein that are defined in the
Plan have the meanings given them in the Plan.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Grant
of Performance Shares.</font></b><font size="2" style="font-size:10.0pt;">&#160;
Pursuant to the Plan, DFR hereby grants to the Participant, subject to
the terms of the Plan and those herein set forth, an award of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Performance Shares.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Vesting.</font></b><font size="2" style="font-size:10.0pt;">&#160; The Participant&#146;s rights in the Performance
Shares are immediately vested and nonforfeitable.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Dividend
Equivalents.</font></b><font size="2" style="font-size:10.0pt;">&#160; The number
of Performance Shares subject to this Agreement shall be automatically
increased on account of the payment of dividends and other distributions paid
on or after the Effective Date and on or before the &#147;Settlement Date,&#148; which is
the earlier of (a)&nbsp;May&nbsp;19, 2012 or (b)&nbsp;the date, within three
months after a Control Change Date, on which no Continuing Director remains a
Board member if the change in the membership of the Board constitutes a change
in the effective control of DFR under Treas. Reg. &#167;&nbsp;1.409A-3(i)(5)(vi)(2).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except
for dividends or distributions paid in shares of Common Stock, such increase shall
equal the amount determined by (a)&nbsp;multiplying the dividend or
distribution paid on each share of Common Stock by the number of Performance
Shares then credited to the Participant and (b)&nbsp;dividing that product by
the Fair Market Value on the date of the dividend payment or distribution.&#160; The number of Performance Shares subject hereto
shall be adjusted for dividends, distributions, or other adjustments paid in
shares of Common Stock on or after the Effective Date and on or before the
Settlement Date in accordance with Paragraph 7.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;of
Payment.</font></b><font size="2" style="font-size:10.0pt;">&#160; The form of
payment in settlement of the Performance Shares shall be determined under
Paragraph 5 or 6, as applicable.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;of
Settlement.</font></b><font size="2" style="font-size:10.0pt;">&#160; Except as
provided in Paragraph 6, the Performance Shares subject hereto (including any
additional Performance Shares credited under Paragraph 3), shall be settled on
the Settlement Date by the issuance of a number of whole shares of Common Stock
equal to the number of whole Performance Shares subject to this Agreement on
the Settlement Date.&#160; No payment will be
made hereunder for a fractional Performance Share, and any fractional
Performance Share subject hereto on the Settlement Date will be disregarded.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Change
in Control.&#160; </font></b><font size="2" style="font-size:10.0pt;">This Paragraph
6 applies if there is a Change in Control before May&nbsp;19, 2012 and the
Change in Control does not result in a Settlement Date under Paragraph 3 that
is before May&nbsp;19, 2012.&#160; In that
event, each Performance Share credited to the</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Participant
on the Control Change Date shall be converted into the right to receive a
benefit, payable on the Settlement Date, based on the consideration received by
DFR stockholders (cash, stock or other property), for each share of Common
Stock in the transaction that constitutes the Change in Control.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
the consideration received by the stockholders in that transaction includes
cash, then the cash component of the benefit payable to the Participant hereunder
shall be credited with notional interest, from the Control Change Date until
the date of payment under this Paragraph 6, at a rate equal to the interest
rate payable on 3-month U.S. Treasury bills during that period (adjusted on the
first day of each month).&#160; If the
consideration received by the stockholders in that transaction includes stock,
then the stock component of the benefit payable to the Participant hereunder shall
include dividend equivalents, calculated in accordance with Paragraph 3, with
respect to dividends paid on that stock from the Control Change Date until the
date of payment under this Paragraph 6.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Change
in Capital Structure.</font></b><font size="2" style="font-size:10.0pt;"> &#160;Notwithstanding
any provision hereof that may be to the contrary, the &#160;terms hereof and the number of Performance
Shares subject hereto shall be adjusted as the Board determines is equitably
required if DFR effects one or more stock dividends, stock split-ups,
subdivisions or consolidations of shares (including reverse stock splits) or
similar changes in capitalization.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Notices</font></b><font size="2" style="font-size:10.0pt;">.&#160; Any notice or communication to DFR with
respect to this Agreement must be in writing, directed to DFR&#146;s Secretary and
mailed (by first class mail) or delivered to DFR&#146;s principal office.&#160; Any notice or communication or payment to the
Participant with respect to this Agreement must be in writing, addressed to the
Participant and mailed (by first class mail) or delivered to the address last
given to DFR by the Participant.&#160; The
Participant shall promptly advise DFR (in accordance with the first sentence of
this paragraph) of any change in his address.&#160;
DFR shall not have any liability for the Participant&#146;s failure to
receive any notice, communication or payment if it is sent by DFR to the last
address given to DFR by the Participant.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Miscellaneous.
</font></b><font size="2" style="font-size:10.0pt;">&#160;This Agreement shall be governed
by Maryland law. &#160;In the event of any
conflict between the provisions of the Plan as in effect on the date hereof and
the provisions of this Agreement, the provisions of the Plan shall govern.&#160; All references herein to the Plan shall mean
the Plan as in effect on the date hereof. &#160;The Participant acknowledges that a copy of
the Plan is attached hereto and agrees to be bound by all the terms thereof. &#160;Subject to the limitations stated above and in
the Plan, this Agreement shall be binding upon and inure to the benefit of the
legatees, distributees, and personal representatives of the Participant and the
successors of DFR.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, DFR has
caused this Agreement to be signed by a duly authorized officer, and the
Participant has affixed his signature hereto.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEERFIELD
  CAPITAL CORP.</font></b><font size="2" style="font-size:10.0pt;">  </font></p>
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[NAME
  OF PARTICIPANT]</font></b></p>
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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