Form of 2008 Equity Incentive Plan



 Exhibit 10.22 
 GLOBAL SHIP LEASE, INC. 
 EQUITY INCENTIVE PLAN 







 TABLE OF CONTENTS 
  


					
	 	  	Page
	SECTION 1.	  	      INTRODUCTION	  	1
			
	SECTION 2.	  	      DEFINITIONS	  	1
			
		  	 (a)       “Affiliate”
	  	1
			
		  	 (b)      “Award”
	  	1
			
		  	 (c)       “Award Agreement”
	  	1
			
		  	 (d)      “Board”
	  	1
			
		  	 (e)       “Cashless Exercise”
	  	1
			
		  	 (f)       “Cause”
	  	1
			
		  	 (g)      “Change in Control”
	  	2
			
		  	 (h)      “Committee”
	  	2
			
		  	 (i)       “Common Stock”
	  	2
			
		  	 (j)       “Company”
	  	2
			
		  	 (k)      “Consultant”
	  	2
			
		  	 (l)       “Director”
	  	2
			
		  	 (m)     “Disability”
	  	3
			
		  	 (n)      “Employee”
	  	3
			
		  	 (o)      “Exchange Act”
	  	3
			
		  	 (p)      “Exercise Price”
	  	3
			
		  	 (q)      “Fair Market Value”
	  	3
			
		  	 (r)       “Fiscal Year”
	  	3
			
		  	 (s)       “Key Service Provider”
	  	3
			
		  	 (t)       “Non-Employee Director”
	  	4
			
		  	 (u)      “Option”
	  	4
			
		  	 (v)      “Optionee”
	  	4
			
		  	 (w)     “Parent”
	  	4
			
		  	 (x)      “Participant”
	  	4
			
		  	 (y)      “Plan”
	  	4
			
		  	 (z)       “Re-Price”
	  	4
			
		  	 (aa)    “SAR Agreement”
	  	4
			
		  	 (bb)    “SEC”
	  	4
			
		  	 (cc)    “Securities Act”
	  	4
			
		  	 (dd)    “Service”
	  	4

  

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 TABLE OF CONTENTS 
  


					
	 	  	Page
		 	 (ee)    “Share”
	  	4
			
		 	 (ff)      “Stock Appreciation Right” or “SAR”
	  	4
			
		 	 (gg)    “Stock Grant”
	  	4
			
		 	 (hh)    “Stock Grant Agreement”
	  	5
			
		 	 (ii)      “Stock Option Agreement”
	  	5
			
		 	 (jj)      “Stock Unit”
	  	5
			
		 	 (kk)    “Stock Unit Agreement”
	  	5
			
		 	 (ll)      “Subsidiary”
	  	5
			
	SECTION 3.	 	      ADMINISTRATION	  	5
			
		 	 (a)       Committee Composition
	  	5
			
		 	 (b)      Authority of the Committee
	  	5
			
		 	 (c)       Indemnification
	  	6
			
	SECTION 4.	 	      GENERAL	  	6
			
		 	 (a)       General Eligibility
	  	6
			
		 	 (b)      Restrictions on Shares
	  	6
			
		 	 (c)       Beneficiaries
	  	7
			
		 	 (d)      Performance Conditions
	  	7
			
		 	 (e)       No Rights as a Stockholder
	  	7
			
		 	 (f)       Termination of Service
	  	7
			
	SECTION 5.	 	      SHARES SUBJECT TO PLAN AND SHARE LIMITS	  	7
			
		 	 (a)       Basic Limitation
	  	7
			
		 	 (b)      Additional Shares
	  	7
			
		 	 (c)       Dividend Equivalents
	  	8
			
		 	 (d)      Share Limits
	  	8
			
		 	 (i)       Limits on Options
	  	8
			
		 	 (ii)      Limits on SARs
	  	8
			
		 	 (iii)     Limits on Stock Grants and Stock Units
	  	8
			
	SECTION 6.	 	      TERMS AND CONDITIONS OF OPTIONS	  	8
			
		 	 (a)    Stock Option Agreement
	  	8
			
		 	 (b)    Number of Shares
	  	8
			
		 	 (c)    Exercise Price
	  	8
			
		 	 (d)    Exercisability and Term
	  	8

  

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 TABLE OF CONTENTS 
  


					
	 	  	Page
		  	 (e)       Payment for Option Shares
	  	9
			
		  	 (i)       Surrender of Stock
	  	9
			
		  	 (ii)      Cashless Exercise
	  	9
			
		  	 (iii)     Other Forms of Payment
	  	9
			
		  	 (f)       Modifications or Assumption of Options
	  	9
			
		  	 (g)      Assignment or Transfer of Options
	  	9
			
	SECTION 7.	  	      TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS	  	9
			
		  	 (a)       SAR Agreement
	  	9
			
		  	 (b)      Number of Shares
	  	10
			
		  	 (c)       Exercise Price
	  	10
			
		  	 (d)      Exercisability and Term
	  	10
			
		  	 (e)       Exercise of SARs
	  	10
			
		  	 (f)       Modification or Assumption of SARs
	  	10
			
		  	 (g)      Assignment or Transfer of SARs
	  	11
			
	SECTION 8.	  	      TERMS AND CONDITIONS FOR STOCK GRANTS	  	11
			
		  	 (a)       Time, Amount and Form of Awards
	  	11
			
		  	 (b)      Stock Grant Agreement
	  	11
			
		  	 (c)       Payment for Stock Grants
	  	11
			
		  	 (d)      Vesting Conditions
	  	11
			
		  	 (e)       Assignment or Transfer of Stock Grants
	  	11
			
		  	 (f)       Voting and Dividend Rights
	  	12
			
		  	 (g)      Modification or Assumption of Stock Grants
	  	12
			
	SECTION 9.	  	      TERMS AND CONDITIONS OF STOCK UNITS	  	12
			
		  	 (a)       Stock Unit Agreement
	  	12
			
		  	 (b)      Number of Shares
	  	12
			
		  	 (c)       Payment for Awards
	  	12
			
		  	 (d)      Vesting Conditions
	  	12
			
		  	 (e)       Form and Time of Settlement of Stock Units
	  	12
			
		  	 (f)       Voting and Dividend Rights
	  	13
			
		  	 (g)      Creditors’ Rights
	  	13
			
		  	 (h)      Modification or Assumption of Stock Units
	  	13

  

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 TABLE OF CONTENTS 
  


					
	 	  	Page
		  	 (i)       Assignment or Transfer of Stock Units
	  	13
			
	SECTION 10.	  	      PROTECTION AGAINST DILUTION	  	13
			
		  	 (a)       Adjustments
	  	13
			
		  	 (b)      Participant Rights
	  	14
			
		  	 (c)       Fractional Shares
	  	14
			
	SECTION 11.	  	      EFFECT OF A CHANGE IN CONTROL	  	14
			
		  	 (a)       Change in Control
	  	14
			
		  	 (b)      Acceleration
	  	14
			
		  	 (c)       Dissolution
	  	14
			
	SECTION 12.	  	      LIMITATIONS ON RIGHTS	  	14
			
		  	 (a)       Participant Rights
	  	14
			
		  	 (b)      Stockholders’ Rights
	  	15
			
		  	 (c)       Regulatory Requirements
	  	15
			
	SECTION 13.	  	      TAXES	  	15
			
		  	 (a)       General
	  	15
			
		  	 (b)      Share Withholding
	  	15
			
	SECTION 14.	  	      DURATION AND AMENDMENTS	  	16
			
		  	 (a)       Term of the Plan
	  	16
			
		  	 (b)      Right to Amend or Terminate the Plan
	  	16

  

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 GLOBAL SHIP LEASE, INC. 
 EQUITY INCENTIVE PLAN 
 SECTION 1. INTRODUCTION. 
 On July     , 2008 the Board adopted this Global Ship Lease, Inc. 2008 Equity Incentive Plan, which shall become effective upon
the closing of the Merger (the “Effective Date”). 
 The purpose of this Plan is to promote the long-term success of the Company and
the creation of stockholder value by offering Key Service Providers the opportunity to share in such long-term success by acquiring a proprietary interest in the Company. 
 The Plan seeks to achieve this purpose by providing for discretionary long-term incentive Awards in the form of Options, Stock Appreciation Rights, Stock Grants and Stock Units. 
 The Plan shall be governed by, and construed in accordance with, the laws of the Republic of the Marshall Islands (except its choice-of-law provisions).
Capitalized terms shall have the meaning provided in Section 2 unless otherwise provided in this Plan or any related Award Agreement. 
 SECTION 2.
DEFINITIONS. 
 (a) “Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more
Subsidiaries own not less than 50% of such entity. 
 (b) “Award” means an Option, SAR, Stock Grant or Stock Unit. 
 (c) “Award Agreement” means any Stock Option Agreement, SAR Agreement, Stock Grant Agreement or Stock Unit Agreement. 
 (d) “Board” means the Board of Directors of the Company, as constituted from time to time. 
 (e) “Cashless Exercise” means, to the extent that a Stock Option Agreement so provides and as permitted by applicable law, a program approved by
the Committee in which payment of the aggregate Exercise Price and/or satisfaction of any applicable tax or withholding obligations may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a
securities broker to sell Shares subject to an Option and to deliver all or part of the sale proceeds to the Company. 
 (f) “Cause”
means, except as may otherwise be provided in a Participant’s Award Agreement, (i) Participant’s willful failure to perform his or her duties and responsibilities to the Company or material violation of a written Company policy;
(ii) Participant’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company; (iii) unauthorized use or disclosure by
Participant of any proprietary information or trade secrets of the Company or any other party to whom the Participant owes an obligation of 








 
nondisclosure as a result of his or her relationship with the Company; or (iv) Participant’s willful breach of any of his or her obligations under
any written agreement or covenant with the Company. The determination as to whether a Participant is being terminated for Cause shall be made in good faith by the Committee and shall be conclusive and binding on the Participant. The foregoing
definition does not in any way limit the Company’s ability to terminate a Participant’s Service at any time as provided in Section 12(a), and the term “Company” will be interpreted to include any Subsidiary, Parent,
Affiliate, or any successor thereto, if appropriate. 
 (g) “Change in Control” means the consummation, following the date of the
Merger, of any of the following transactions: 
 (i) The sale of all or substantially all of the Company’s assets; 
 (ii) The merger of the Company with or into another corporation in which securities possessing more than 50% of the total combined voting power of the
Company are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction; or 
 (iii) The acquisition, directly or indirectly, by any person or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities of the Company representing more than 50% of the total combined voting power of the Company’s then outstanding securities pursuant to a tender or exchange offer made
directly to the Company’s stockholders which the Board does not recommend such stockholders accept. 
 A transaction shall not constitute
a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities
immediately before such transactions. 
 (h) “Committee” means a committee described in Section 3. 
 (i) “Common Stock” means the Company’s Class A common shares. 
 (j) “Company” means GSL Holdings, Inc. (to be renamed Global Ship Lease, Inc.), a Marshall Islands corporation. 
 (k) “Consultant” means an individual who provides bona fide services to the Company, a Parent, a Subsidiary or an Affiliate, other than as an
Employee, Director or Non-Employee Director. For clarity, the term “Consultant” also means those members of the board of directors of a Parent, Subsidiary or Affiliate that are not Employees. 
 (l) “Director” means a member of the Board who is also an Employee. 
  

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 (m) “Disability” means that the Participant is classified as disabled under the long-term
disability policy of the Company or, if no such policy applies, the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or
which has lasted or can be expected to last for a continuous period of not less than 12 months. 
 (n) “Employee” means any
individual who is a common-law employee of the Company, a Parent, a Subsidiary or an Affiliate. 
 (o) “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
 (p) “Exercise Price” means, in the case of an Option, the amount for which a Share
may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair
Market Value in determining the amount payable upon exercise of such SAR. 
 (q) “Fair Market Value” means the market price of a
Share as determined in good faith by the Committee. Such determination shall be conclusive and binding on all persons. The Fair Market Value shall be determined by the following: 
 (i) If the Shares are admitted to trading on any established national stock exchange or market system on the date in question, then the Fair Market Value
shall be equal to the closing sales price for such Shares as quoted on such national exchange or system on such date; or 
 (ii) if the Shares
are admitted to quotation on any established national stock quotation system or are regularly quoted by a recognized securities dealer but selling prices are not reported on the date in question, then the Fair Market Value shall be equal to the mean
between the bid and asked prices of the Shares reported for such date. 
 In each case, the applicable price shall be the price reported in
The Wall Street Journal or such other source as the Committee deems reliable; provided, however, that if there is no such reported price for the Shares for the date in question, then the Fair Market Value shall be equal to the price reported on the
last preceding date for which such price exists. If neither (i) or (ii) are applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate. 
 (r) “Fiscal Year” means the Company’s fiscal year. 
 (s) “Key Service Provider” means an Employee, Director, Non-Employee Director or Consultant who has been selected by the Committee to receive an Award under the Plan. 
 (t) “Merger” means the consummation of the mergers contemplated under the Agreement and Plan of Merger, dated as of March 21, 2008, by and
among Marathon Acquisition Corp., GSL Holdings, Inc., CMA CGM S.A. and the Company. 
  

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 (u) “Non-Employee Director” means a member of the Board who is not an Employee. 
 (v) “Option” means a stock option granted under the Plan entitling the Optionee to purchase Shares. 
 (w) “Optionee” means an individual, estate or other entity that holds an Option. 
 (x) “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the
adoption of the Plan shall be considered a Parent commencing as of such date. 
 (y) “Participant” means an individual or estate or
other entity that holds an Award. 
 (z) “Plan” means this Global Ship Lease, Inc. 2008 Equity Incentive Plan as it may be amended
from time to time. 
 (aa) “Re-Price” means that the Company has lowered or reduced the Exercise Price of outstanding Options and/or
outstanding SARs for any Participant(s) in a manner described by Item 402(d)(2)(viii) of SEC Regulation S-K (or its successor provision). 
 (bb) “SAR Agreement” means the agreement described in Section 7 evidencing a Stock Appreciation Right. 
 (cc)
“SEC” means the Securities and Exchange Commission. 
 (dd) “Securities Act” means the Securities Act of 1933, as amended.

 (ee) “Service” means service as an Employee, Director, Non-Employee Director or Consultant. A Participant’s Service does not
terminate if he or she is an Employee and goes on a bona fide leave of absence that was approved by the Company in writing and the terms of the leave provide for continued service crediting, or when continued service crediting is required by
applicable law. Service terminates in any event when the approved leave ends, unless such Employee immediately returns to active work. Further, unless otherwise determined by the Committee, a Participant’s Service will not terminate merely
because of a change in the capacity in which the Participant provides service to the Company, a Parent, Subsidiary or Affiliate, or a transfer between entities (the Company or any Parent, Subsidiary, or Affiliate); provided that there is no
interruption or other termination of Service. 
 (ff) “Share” means one share of Common Stock. 
 (gg) “Stock Appreciation Right” or “SAR” means a stock appreciation right awarded under the Plan. 
 (hh) “Stock Grant” means Shares awarded under the Plan. 
  


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 (ii) “Stock Grant Agreement” means the agreement described in Section 8 evidencing a Stock
Grant. 
 (jj) “Stock Option Agreement” means the agreement described in Section 6 evidencing an Option. 
 (kk) “Stock Unit” means a bookkeeping entry representing the equivalent of one Share awarded under the Plan. 
 (ll) “Stock Unit Agreement” means the agreement described in Section 9 evidencing a Stock Unit. 
 (mm) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of
a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
 (nn) “UK Stock
Option Agreement” means the stock option agreement described in Addendum A. 
 SECTION 3. ADMINISTRATION. 
 (a) Committee Composition. The Board or a Committee appointed by the Board shall administer the Plan. Members of any such Committee shall serve for such
period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time terminate the functions of the Committee and reassume all powers and authority previously delegated to the Committee.

 Notwithstanding the foregoing, the Board shall administer the Plan with respect to all Awards granted to Non-Employee Directors.

 The Board and any Committee appointed to administer the plan is referred to herein as the “Committee”. 
 (b) Authority of the Committee. Subject to the provisions of the Plan, the Committee shall have the full authority, in its sole discretion, to take any
actions it deems necessary or advisable for the administration of the Plan. Such actions shall include: 
 (i) selecting Key Service Providers
who are to receive Awards under the Plan; 
 (ii) determining the type, number, vesting requirements and other features and conditions of such
Awards; 
 (iii) amending any outstanding Awards; 
  

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 (iv) accelerating the vesting, or extending the post-termination exercise term, of Awards at any time and
under such terms and conditions as it deems appropriate; 
 (v) interpreting the Plan and any Award Agreement; 
 (vi) correcting any defect, supplying any omission or reconciling any inconsistency in the Plan or any Award Agreement; 
 (vii) adopting such rules or guidelines as it deems appropriate to implement the Plan; 
 (viii) making all other decisions relating to the operation of the Plan; and 
 (ix) adopting such plans or subplans as may be deemed necessary or appropriate to provide for the participation by employees of the Company, its Parent, Subsidiaries and Affiliates who reside outside of the U.S.,
which plans and/or subplans shall be attached hereto as Appendices. 
 The Committee’s determinations under the Plan shall be final and
binding on all persons. 
 (c) Indemnification. To the maximum extent permitted by applicable law, each member of the Committee shall be
indemnified and held harmless by the Company against and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to
which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Award Agreement, and (ii) from any and all amounts paid by him or her in settlement thereof, with the
Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the
same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s
Articles of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 
 SECTION 4. GENERAL. 
 (a) General Eligibility. Only Employees, Directors,
Non-Employee Directors and Consultants shall be eligible to participate in the Plan. 
 (b) Restrictions on Shares. Any Shares issued pursuant
to an Award shall be subject to such rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine, in its sole discretion. Such restrictions shall apply in addition to any restrictions that may apply
to holders of Shares generally and shall also comply to the extent necessary with applicable law. In no event shall the Company be required to issue fractional Shares under this Plan. 
  

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 (c) Beneficiaries. Unless stated otherwise in an Award Agreement and then only to the extent permitted by
applicable law, a Participant may designate one or more beneficiaries with respect to an Award by timely filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time
before the Participant’s death. If no beneficiary was designated or if no designated beneficiary survives the Participant, then after a Participant’s death any vested Award(s) shall be transferred or distributed to the Participant’s
estate. 
 (d) Performance Conditions. The Committee may, in its discretion, include performance conditions in an Award. 
 (e) No Rights as a Stockholder. A Participant, or a transferee of a Participant, shall have no rights as a stockholder with respect to any Common Stock
covered by an Award until such person has satisfied all of the terms and conditions to receive such Common Stock, has satisfied any applicable withholding or tax obligations relating to the Award and the Shares have been issued (as evidenced by an
appropriate entry on the books of the Company or a duly authorized transfer agent of the Company). 
 (f) Termination of Service. Unless the
applicable Award Agreement provides otherwise, the following rules shall govern the vesting, exercisability and term of outstanding Awards held by a Participant in the event of termination of such Participant’s Service (in all cases subject to
the maximum term of the Option and/or SAR as applicable): (i) upon termination of Service for any reason, all unvested portions of any outstanding Awards shall be immediately forfeited without consideration and the vested portions of any
outstanding Stock Units shall be settled upon termination; (ii) if Service is terminated for Cause, then all unexercised Options and/or SARs, unvested portions of Stock Units and unvested portions of Stock Grants shall terminate and be
forfeited immediately without consideration; (iii) if Service is terminated for any reason other than for Cause, death or Disability, then the vested portion of his or her then-outstanding Options and/or SARs may be exercised by such
Participant or his or her personal representative within 6 months after the date of such termination; or (iv) if Service is terminated due to death or Disability, the vested portion of his or her then-outstanding Options and/or SARs may be
exercised within 12 months after the date of such termination. 
 SECTION 5. SHARES SUBJECT TO PLAN AND SHARE LIMITS. 
 (a) Basic Limitation. The stock issuable under the Plan shall be authorized but unissued Shares or treasury shares. The aggregate number of Shares
reserved for Awards under the Plan is 1,500,000 Shares, subject to adjustment pursuant to Section 10. 
 (b) Additional Shares. If Awards
are forfeited or are terminated for any reason before vesting or being exercised, then the Shares underlying such Awards shall again become available for Awards under the Plan. SARs and Stock Unit Agreements to be settled in Shares shall be counted
in full against the number of Shares available for issuance under the Plan, regardless of the number of Shares issued upon settlement of the SARs and Stock Unit Agreements. If Awards are settled in cash, the Shares that would have been delivered had
there been no cash settlement shall not be counted against the Shares available for issuance under the Plan. 
  

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 (c) Dividend Equivalents. Any dividend equivalents distributed under the Plan shall not reduce the number
of Shares available for Awards. 
 (d) Share Limits. 
 (i) Limits on Options. No Key Service Provider shall receive Options during any Fiscal Year covering in excess of 500,000 Shares, subject to adjustment pursuant to Section 10. 
 (ii) Limits on SARs. No Key Service Provider shall receive SARs during any Fiscal Year covering in excess of 500,000 Shares, subject to adjustment
pursuant to Section 10. 
 (iii) Limits on Stock Grants and Stock Units. No Key Service Provider shall receive Stock Grants or Stock
Units during any Fiscal Year covering, in the aggregate, in excess of 500,000 Shares, subject to adjustment pursuant to Section 10. 
 SECTION 6.
TERMS AND CONDITIONS OF OPTIONS. 
 (a) Stock Option Agreement. Each Option granted under the Plan shall be evidenced and
governed exclusively by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent
with the Plan and that the Committee deems appropriate for inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
 (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option, which number is subject to adjustment
in accordance with Section 10. 
 (c) Exercise Price. Each Stock Option Agreement shall specify the Option’s Exercise Price which
shall be established by the Committee and is subject to adjustment in accordance with Section 10. The Exercise Price of an Option shall not be less than 100% of the Fair Market Value on the date of grant. 
 (d) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable and may
include performance conditions. The Stock Option Agreement shall also specify the maximum term of the Option; provided that the maximum term of an Option shall in no event exceed 10 years from the date of grant. A Stock Option Agreement may provide
for accelerated vesting in the event of the Participant’s death, Disability or other events. Notwithstanding any other provision of the Plan or the Stock Option Agreement, no Option can be exercised after the expiration date provided in the
applicable Stock Option Agreement. 
  

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 (e) Payment for Option Shares. The Exercise Price of an Option shall be paid in cash at the time of
exercise, except as follows and if so provided for in the applicable Stock Option Agreement: 
 (i) Surrender of Stock. Payment of all or any
part of the Exercise Price may be made with Shares which have already been owned by the Optionee; provided that the Committee may, in its sole discretion, require that Shares tendered for payment be previously held by the Optionee for a minimum
duration (e.g., to avoid financial accounting charges to the Company’s earnings). 
 (ii) Cashless Exercise. Payment of all or a part of
the Exercise Price may be made through Cashless Exercise. 
 (iii) Other Forms of Payment. Payment may be made in any other form that is
consistent with applicable laws, regulations and rules and approved by the Committee. 
 (f) Modifications or Assumption of Options. Within
the limitations of the Plan, the Committee may modify, extend or assume outstanding options or may accept the cancellation of outstanding options (whether granted by the Company or by another issuer) in return for the grant of new Options for the
same or a different number of Shares and at the same or a different Exercise Price. Notwithstanding the preceding sentence or anything to the contrary, no modification of an Option shall, without the consent of the Optionee, impair his or her rights
or obligations under such Option and, unless there is approval by the Company stockholders, the Committee may not Re-Price outstanding Options. 
 (g) Assignment or Transfer of Options. Except as otherwise provided in the applicable Stock Option Agreement and then only to the extent such transfer is otherwise permitted by applicable law and is not a transfer for value (unless such
transfer for value is approved in advance by the Company’s stockholders), no Option shall be transferable by the Optionee other than by will or by the laws of descent and distribution. Except as otherwise provided in the applicable Stock Option
Agreement, an Option may be exercised during the lifetime of the Optionee only or by the guardian or legal representative of the Optionee. No Option or interest therein may be assigned, pledged or hypothecated by the Optionee during his or her
lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 
 SECTION 7. TERMS AND
CONDITIONS OF STOCK APPRECIATION RIGHTS. 
 (a) SAR Agreement. Each SAR granted under the Plan shall be evidenced by a SAR
Agreement between the Participant and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. A SAR Agreement may provide for a maximum limit on the
amount of any payout notwithstanding the Fair Market Value on the date of exercise of the SAR. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted in consideration of a reduction in the
Participant’s compensation. 
  

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 (b) Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains,
which number is subject to adjustment in accordance with Section 10. 
 (c) Exercise Price. Each SAR Agreement shall specify the Exercise
Price, which is subject to adjustment in accordance with Section 10. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. The Exercise Price of a SAR shall not be
less than 100% of the Fair Market Value on the date of grant. 
 (d) Exercisability and Term. Each SAR Agreement shall specify the date when
all or any installment of the SAR is to become exercisable and may include performance conditions. The SAR Agreement shall also specify the maximum term of the SAR which shall not exceed 10 years from the date of grant. A SAR Agreement may provide
for accelerated exercisability in the event of the Participant’s death, Disability or other events. SARs may be awarded in combination with Options or Stock Grants, and such an Award shall provide that the SARs will not be exercisable unless
the related Options or Stock Grants are forfeited. Notwithstanding any other provision of the Plan or the SAR Agreement, no SAR can be exercised after the expiration date provided in the applicable SAR Agreement. 
 (e) Exercise of SARs. If, on the date when a SAR expires, the Exercise Price under such SAR is less than the Fair Market Value on such date but any vested
portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of such date with respect to such vested portion. Upon exercise of a SAR, the Participant (or any person having the right to
exercise the SAR after Participant’s death) shall receive from the Company (i) Shares, (ii) cash or (iii) any combination of Shares and cash, as the Committee shall determine at the time of grant of the SAR, in its sole
discretion. The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds
the Exercise Price of the Shares. 
 (f) Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify,
extend or assume outstanding SARs or may accept the cancellation of outstanding stock appreciation rights (including stock appreciation rights granted by another issuer) in return for the grant of new SARs for the same or a different number of
Shares and at the same or a different Exercise Price. Notwithstanding the preceding sentence or anything to the contrary, no modification of a SAR shall, without the consent of the Participant, impair his or her rights or obligations under such SAR
and, unless there is approval by the Company stockholders, the Committee may not Re-Price outstanding SARs. 
  

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 (g) Assignment or Transfer of SARs. Except as otherwise provided in the applicable SAR Agreement and then
only to the extent such transfer is otherwise permitted by applicable law and is not a transfer for value (unless such transfer for value is approved in advance by the Company’s stockholders), no SAR shall be transferable by the Participant
other than by will or by the laws of descent and distribution or any similar laws in the applicable jurisdiction. Except as otherwise provided in the applicable SAR Agreement, a SAR may be exercised during the lifetime of the Participant only or by
the guardian or legal representative of the Participant. No SAR or interest therein may be assigned, pledged or hypothecated by the Participant during his or her lifetime, whether by operation of law or otherwise, or be made subject to execution,
attachment or similar process. 
 SECTION 8. TERMS AND CONDITIONS FOR STOCK GRANTS. 
 (a) Time, Amount and Form of Awards. Awards under this Section 8 may be granted in the form of a Stock Grant. A Stock Grant may be awarded in
combination with Options, and such an Award may provide that the Stock Grant will be forfeited in the event that the related Options are exercised. 
 (b) Stock Grant Agreement. Each Stock Grant awarded under the Plan shall be evidenced and governed exclusively by a Stock Grant Agreement between the Participant and the Company. Each Stock Grant shall be subject to all applicable terms and
conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan that the Committee deems appropriate for inclusion in the applicable Stock Grant Agreement. The provisions of the Stock Grant
Agreements entered into under the Plan need not be identical. 
 (c) Payment for Stock Grants. Stock Grants may be issued with or without cash
consideration under the Plan. 
 (d) Vesting Conditions. Each Stock Grant may or may not be subject to vesting. Vesting shall occur, in full
or in installments, upon satisfaction of the conditions specified in the Stock Grant Agreement which may include performance conditions. A Stock Grant Agreement may provide for accelerated vesting in the event of the Participant’s death,
Disability, or other events. 
 (e) Assignment or Transfer of Stock Grants. Except as otherwise provided in the applicable Stock Grant
Agreement and then only to the extent such transfer is otherwise permitted by applicable law and is not a transfer for value (unless such transfer for value is approved in advance by the Company’s stockholders), no unvested Stock Grant shall be
transferable other than by will or by the laws of descent and distribution. Except as otherwise provided in the applicable Stock Grant Agreement, no unvested Stock Grant or interest therein may be anticipated, assigned, attached, garnished,
optioned, transferred or made subject to any creditor’s process, whether voluntarily, involuntarily or by operation of law. Any act in violation of this Section 8(e) shall be void. 
  

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 (f) Voting and Dividend Rights. The holder of a Stock Grant awarded under the Plan may, as set out in the
applicable Stock Grant Agreement, have the same voting, dividend and other rights as the Company’s other holders of Common Stock. A Stock Grant Agreement, however, may require that the holder of such Stock Grant invest any cash dividends
received in additional Shares subject to the Stock Grant. Such additional Shares and any Shares received as a dividend pursuant to the Stock Grant shall be subject to the same conditions and restrictions as the Stock Grant with respect to which the
dividends were paid. Such additional Shares subject to the Stock Grant shall not reduce the number of Shares available for issuance under Section 5. 
 (g) Modification or Assumption of Stock Grants. Within the limitations of the Plan, the Committee may modify or assume outstanding Stock Grants or may accept the cancellation of outstanding stock grants (including
stock granted by another issuer) in return for the grant of new Stock Grants for the same or a different number of Shares. Notwithstanding the preceding sentence or anything to the contrary, no modification of a Stock Grant shall, without the
consent of the Participant, impair his or her rights or obligations under such Stock Grant. 
 SECTION 9. TERMS AND CONDITIONS OF STOCK
UNITS. 
 (a) Stock Unit Agreement. Each Stock Unit granted under the Plan shall be evidenced by a Stock Unit Agreement between the
Participant and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under
the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the Participant’s other compensation. 
 (b) Number of Shares. Each Stock Unit Agreement shall specify the number of Shares to which the Stock Unit pertains, which number is subject to adjustment in accordance with Section 10. 
 (c) Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award
recipients. 
 (d) Vesting Conditions. Each Stock Unit may or may not be subject to vesting. Vesting shall occur, in full or in installments,
upon satisfaction of the conditions specified in the Stock Unit Agreement which may include performance conditions. A Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, Disability, or other events.

 (e) Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares
or (c) any combination of both, as determined by the Committee at the time of the grant of the Stock Units, in its sole discretion. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair
Market Value of Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when the vesting conditions applicable to the Stock Units have been satisfied or have
lapsed, or it may be deferred, in accordance with applicable law, to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. 
  

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 (f) Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to
settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on
one Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to
distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions as the Stock Units to which they attach. 
 (g) Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the
terms and conditions of the applicable Stock Unit Agreement. 
 (h) Modification or Assumption of Stock Units. Within the limitations of the
Plan, the Committee may modify or assume outstanding Stock Units or may accept the cancellation of outstanding stock units (including stock units granted by another issuer) in return for the grant of new Stock Units for the same or a different
number of Shares. Notwithstanding the preceding sentence or anything to the contrary, no modification of a Stock Unit shall, without the consent of the Participant, impair his or her rights or obligations under such Stock Unit. 
 (i) Assignment or Transfer of Stock Units. Except as provided in the applicable Stock Unit Agreement and then only to the extent such transfer is
otherwise permitted by applicable law and is not a transfer for value (unless such transfer for value is approved in advance by the Company’s stockholders), Stock Units shall not be transferable other than by will or by the laws of descent and
distribution. Except as otherwise provided in the applicable Stock Unit Agreement, no Stock Unit or interest therein may be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether
voluntarily, involuntarily or by operation of law. Any act in violation of this Section 9(i) shall be void. 
 SECTION 10. PROTECTION AGAINST
DILUTION. 
 (a) Adjustments. In the event of a subdivision of the outstanding Shares, a declaration of a dividend payable in
Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Shares (by reclassification or otherwise) into a lesser number
of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of: 
 (i) the number of Shares and the kind of shares or securities available for future Awards under Section 5; 
  

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 (ii) the limits on Awards specified in Section 5; 
 (iii) the number of Shares and the kind of shares or securities covered by each outstanding Award; or 
 (iv) the Exercise Price under each outstanding SAR or Option. 
 (b) Participant Rights. Except as provided in this Section 10, a Participant shall have no rights by reason of any issue by the Company of stock of any class or securities convertible into stock of any class, any
subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class. If by reason of an adjustment pursuant to this Section 10 a
Participant’s Award covers additional or different shares of stock or securities, then such additional or different shares and the Award in respect thereof shall be subject to all of the terms, conditions and restrictions which were applicable
to the Award and the Shares subject to the Award prior to such adjustment. 
 (c) Fractional Shares. Any adjustment of Shares pursuant to this
Section 10 shall be rounded down to the nearest whole number of Shares. Under no circumstances shall the Company be required to authorize or issue fractional shares and no consideration shall be provided as a result of any fractional shares not
being issued or authorized. 
 SECTION 11. EFFECT OF A CHANGE IN CONTROL. 
 (a) Change in Control. In the event that the Company is a party to a Change in Control, outstanding Awards shall be subject to the applicable agreement of
merger or reorganization. Such agreement may provide, without limitation, for the assumption of outstanding Awards by the surviving corporation or its parent, for their continuation by the Company (if the Company is a surviving corporation), for
accelerated vesting or for their cancellation with or without consideration, in all cases without the consent of the Participant. 
 (b)
Acceleration. Notwithstanding the foregoing, the Committee may determine, at the time of grant of an Award or thereafter, that such Award shall become vested and exercisable, in full or in part, in the event that the Company is a party to a Change
in Control. 
 (c) Dissolution. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately
prior to the dissolution or liquidation of the Company. 
 SECTION 12. LIMITATIONS ON RIGHTS. 
 (a) Participant Rights. A Participant’s rights, if any, in respect of or in connection with any Award is derived solely from the discretionary
decision of the Company to permit the individual to participate in the Plan and to benefit from a discretionary 

  

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Award. By accepting an Award under the Plan, a Participant expressly acknowledges that there is no obligation on the part of the Company to continue the Plan
and/or grant any additional Awards. Any Award granted hereunder is not intended to be compensation of a continuing or recurring nature, or part of a Participant’s normal or expected compensation, and in no way represents any portion of a
Participant’s salary, compensation, or other remuneration for purposes of pension benefits, severance, redundancy, resignation or any other purpose. 
 Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain an employee, consultant or director of the Company, a Parent, a Subsidiary or an Affiliate. The Company
and its Parent, Subsidiaries and Affiliates reserve the right to terminate the Service of any person at any time, and for any reason, subject to applicable laws, the Company’s Articles of Incorporation and Bylaws and any applicable written
employment agreement (if any), and such terminated person shall be deemed irrevocably to have waived any claim to damages or specific performance for breach of contract or dismissal, compensation for loss of office, tort or otherwise with respect to
the Plan or any outstanding Award that is forfeited and/or is terminated by its terms or to any future Award. 
 (b) Stockholders’
Rights. Except as provided in Sections 8(f) and 9(f), a Participant shall have no dividend rights, voting rights or other rights as a stockholder with respect to any Shares covered by his or her Award prior to the issuance of such Shares (as
evidenced by an appropriate entry on the books of the Company or a duly authorized transfer agent of the Company). No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date when such Shares are
issued, except as expressly provided in Sections 9(f) and 10. 
 (c) Regulatory Requirements. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue Shares or other securities under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The Company reserves the
right to restrict, in whole or in part, the delivery of Shares or other securities pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Shares or other securities, to their registration,
qualification or listing or to an exemption from registration, qualification or listing. 
 SECTION 13. TAXES. 
 (a) General. A Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding or tax obligations that arise in
connection with his or her Award. The Company shall not be required to issue any Shares or make any cash payment under the Plan until such obligations are satisfied. 
 (b) Share Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or tax obligations by (i) Cashless Exercise, (ii) having the Company withhold all or a portion
of any Shares that otherwise would be issued to him 

  

 15 








 
or her or (iii) surrendering all or a portion of any Shares that he or she previously acquired (the Company may, in it discretion, require that Shares
withheld or previously owned Shares that are tendered shall not exceed the amount necessary to satisfy the Company’s tax withholding obligations at the minimum statutory withholding rates unless the previously owned Shares have been held for
the minimum duration necessary to avoid financial accounting charges under applicable accounting guidance). Any payment of taxes by assigning Shares to the Company may be subject to restrictions, including, but not limited to, any restrictions
required by rules of the SEC. 
 SECTION 14. DURATION AND AMENDMENTS. 
 (a) Term of the Plan. The Plan shall become effective upon its approval by the Company’s
stockholders. The Plan shall terminate on the 10th anniversary of the Effective Date and may be terminated on any earlier date pursuant to this
Section 14. 
 (b) Right to Amend or Terminate the Plan. The Board may amend or terminate the Plan at any time and for any reason. Any
such termination of the Plan, or any amendment thereof, shall not impair any Award previously granted under the Plan. No Awards shall be granted under the Plan after the Plan’s termination. An amendment of the Plan shall be subject to the
approval of the Company’s stockholders only to the extent such approval is required by applicable laws, regulations or rules. 
  

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 ADDENDUM A 
 GLOBAL SHIP LEASE, INC. 
 EQUITY INCENTIVE PLAN 
 (U.K. Participants) 
 In addition to the other terms and conditions of the Plan,
the terms set forth in this Addendum A shall apply to Awards issued to Participants that are U.K. taxpayers. All capitalized terms used herein but not otherwise defined shall have the respective meanings set forth in the Plan. 
 1. UK Approved Share Scheme. 
 (a) The
Company may grant Options (“Approved Options”) pursuant to any approved form of share scheme deemed appropriate by the Company, which has been approved by HM Revenue & Customs as qualifying under Schedule 4 to the Income
Tax (Earnings and Pensions) Act 2003, a “company share option plan” or “CSOP”. 
 (b) The terms of the Plan shall apply
subject to the terms of the UK Stock Option Agreement (together referred to as the “UK Plan”). 
 (c) Options may only be
granted under such approved CSOP to a full-time director or Employee of the Company or a Subsidiary who is required to devote not less than 25 hours per week (excluding meal breaks) to their duties. 
 (d) In relation to Shares which are the subject to an Option granted under any such approved CSOP, “Fair Market Value” shall mean as at any
date, the value of a Share on the stock exchange that is determined by the Committee to be the primary market for the Common Stock at such date, and shall be determined as follows: 
 (i) if the Shares are traded over the counter or listed with NASDAQ or otherwise not listed on the London Stock Exchange or the New York
Stock Exchange on the date in question, then the Fair Market Value is determined in accordance with the provisions of Part XIII of the Taxation of Chargeable Gains Act 1992 as agreed upon for purposes of the UK Plan with HM Revenue &
Customs Shares Valuation Office on or before that date; or 
 (ii) if the Shares are listed on the New York Stock Exchange,
then the Fair Market Value on the date in question is the closing selling price for the Common Stock as such price is officially quoted in the composite tape of transactions on the exchange for the date in question; provided, however, that if there
is no such reported price for the Common Stock for the date in question, then such price on the last preceding date for which such price exists shall be determinative of Fair Market Value. 
 (e) In relation to such approved CSOP, an adjustment may be made pursuant to Section 10 (Protection Against Dilution) only with the prior approval of
HM Revenue & Customs and any such adjustment shall in no event affect the class of Shares subject to an Approved Option. 







 (f) Shares acquired pursuant to an Approved Option shall not be subject to any restrictions other than
those attaching to all shares of the same class or otherwise as permitted by paragraph 16-20, inclusive, of Schedule 4 and Section 4(b) shall not apply in relation to any such Shares. 
 (g) Section 4(e) shall not apply in relation to any Approved Option. 
 Whenever possible, the determination of Fair Market Value by the Committee should be based on the prices reported in the Western Edition of The Wall Street Journal. Such determination shall be conclusive and
binding on all persons. 
 The Fair Market Value of a Share shall be converted from U.S. Dollars into Pounds Sterling at the rate of exchange
determined by the Committee in accordance with the exchange rates published by the online exchange rate service www.exchangerate.com or a similar service, applicable to the date in question. 
 2. Transfer of Employer’s NICs. Subject to the applicable Award Agreement, where the Company determines that the exercise, assignment, release of, or
other dealing with, an Award may give rise to an obligation on the part of the Company or any Subsidiary to account for National Insurance Contributions the Participant shall, promptly on request of the Company, execute such form of joint election
as shall have been approved by HM Revenue & Customs so as to transfer the entire liability for all such National Insurance Contributions to the Participant. The Company shall not be required to issue any Shares or make any cash payment
under the Plan until such transferred obligations are satisfied in full. 
 3. PAYE. For the avoidance of doubt, it is acknowledged by the
Participant that references in the Plan to “withholding tax” shall include amounts required to be accounted for by the Company or any Subsidiary under the Pay As You Earn income tax rules whether or not such amounts are capable of being
withheld or deducted from amounts due to the Participant. 
  

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 ADDENDUM B 
 GLOBAL SHIP LEASE, INC. 
 EQUITY INCENTIVE PLAN 
 (U.S. Participants) 
 In addition to the other terms and conditions of the Plan,
the terms set forth in this Addendum B shall apply to Awards issued to Participants that are U.S. taxpayers. All capitalized terms used herein but not otherwise defined shall have the respective meanings set forth in the Plan. 
 1. Definitions. 
 (a) “Code” means
the Internal Revenue Code of 1986, as amended, and the regulations and interpretations promulgated thereunder. 
 (b) “Incentive Stock
Option” or “ISO” means an incentive stock option described in Code Section 422. 
 (c) “Nonstatutory Stock
Option” or “NSO” means a stock option that is not an ISO. 
 (d) “Service” shall have the meaning given in the Plan,
however, for purposes of determining whether an Option is entitled to continuing ISO status, an Employee’s Service will be treated as terminating 90 days after such Employee went on leave, unless such Employee’s right to return to active
work is guaranteed by law or by a contract. 
 (e) “10-Percent Stockholder” means an individual who owns more than 10% of the total
combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of Code Section 424(d) shall be applied. 
 2. Incentive Stock Options. Only Key Service Providers who are Employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs.
In addition, a Key Service Provider who is a 10-Percent Stockholder shall not be eligible for the grant of an ISO unless the requirements set forth in Code Section 422(c)(5) are satisfied. 
 3. Share Limits. The aggregate maximum number of Shares that may be issued in connection with ISOs shall be 750,000 Shares, subject to adjustment pursuant
to Section 10 of the Plan. 
 4. Terms and Conditions of Options and SARs. 
 (a) The Stock Option Agreement shall specify whether the Option is an ISO or an NSO. 
 (b) The Exercise Price of an Option shall not be less than 110% of the Fair Market Value for an ISO granted to a 10-Percent Stockholder on the date of
grant. 







 (c) In the case of an ISO granted under the Plan, except to the extent permitted by applicable law,
payment shall be made only pursuant to the express provisions of the applicable Stock Option Agreement. In the case of an NSO granted under the Plan, the Committee may, in its discretion at any time, accept payment in any form(s) described in
Section 6(e) of the Plan. 
 (d) A SAR may be included in an ISO only at the time of grant but may be included in an NSO at the time of
grant or at any subsequent time, but not later than six months before the expiration of such NSO. 
  

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