Document:

Exhibit

EXHIBIT 10.1

Execution Version

AMENDED AND RESTATED 
MANAGEMENT AND ADVISORY AGREEMENT
dated as of January 1, 2017
among
DRIVE SHACK INC.
and
FIG LLC

TABLE OF CONTENTS
	
				
	SECTION 1.
	DEFINITIONS
	1
	

	 
	 
	 

	SECTION 2.
	APPOINTMENT AND DUTIES OF THE MANAGER
	2
	

	 
	 
	 

	SECTION 3.
	DEVOTION OF TIME; ADDITIONAL ACTIVITIES
	6
	

	 
	 
	 

	SECTION 4.
	AGENCY
	7
	

	 
	 
	 

	SECTION 5.
	BANK ACCOUNTS
	7
	

	 
	 
	 

	SECTION 6.
	RECORDS; CONFIDENTIALITY
	7
	

	 
	 
	 

	SECTION 7.
	OBLIGATIONS OF MANAGER; RESTRICTIONS
	7
	

	 
	 
	 

	SECTION 8.
	COMPENSATION
	8
	

	 
	 
	 

	SECTION 9.
	EXPENSES OF THE COMPANY
	9
	

	 
	 
	 

	SECTION 10.
	CALCULATIONS OF EXPENSES
	11
	

	 
	 
	 

	SECTION 11.
	LIMITS OF MANAGER RESPONSIBILITY; INDEMNIFICATION
	11
	

	 
	 
	 

	SECTION 12.
	NO JOINT VENTURE
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	SECTION 13.
	TERM; TERMINATION
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	SECTION 14.
	ASSIGNMENT
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	SECTION 15.
	TERMINATION FOR CAUSE
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	SECTION 16.
	ACTION UPON TERMINATION
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	SECTION 17.
	RELEASE OF MONEY OR OTHER PROPERTY UPON WRITTEN REQUEST
	14
	

	 
	 
	 

	SECTION 18.
	NOTICES
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	SECTION 19.
	BINDING NATURE OF AGREEMENT; SUCCESSORS AND ASSIGNS
	16
	

	 
	 
	 

	SECTION 20.
	ENTIRE AGREEMENT
	16
	

	 
	 
	 

	SECTION 21.
	CONTROLLING LAW
	16
	

	 
	 
	 

	SECTION 22.
	INDULGENCES, NOT WAIVERS
	16
	

	 
	 
	 

	SECTION 23.
	TITLES NOT TO AFFECT INTERPRETATION
	16
	

i

	
				
	 
	 
	 

	SECTION 24.
	EXECUTION IN COUNTERPARTS
	16
	

	 
	 
	 

	SECTION 25.
	PROVISIONS SEPARABLE
	16
	

	 
	 
	 

	SECTION 26.
	GENDER
	16
	

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AMENDED AND RESTATED 
MANAGEMENT AND ADVISORY AGREEMENT
THIS AMENDED AND RESTATED MANAGEMENT AND ADVISORY AGREEMENT, is made as of January 1, 2017 (the “Agreement”) by and among DRIVE SHACK INC (formerly known as Newcastle Investment Corp.), a Maryland corporation (the “Company”), and FIG LLC, a Delaware limited liability company (together with its permitted assignees, the “Manager”).
W I T N E S S E T H :
WHEREAS, the Company and the Manager entered into that certain Management and Advisory Agreement, dated as of June 6, 2002 (the “Original Management Agreement”), as amended on March 4, 2003, June 23, 2003 and April 25, 2013; and
WHEREAS, in connection with the termination of the Company’s status as a real estate investment trust, the Company and the Manager desire to amend and restate the Original Management Agreement in its entirety on the terms and conditions hereinafter set forth.
NOW THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto agree as follows:
I.    The Original Management Agreement is hereby modified so that all of the terms and conditions of the aforesaid Original Management Agreement shall be restated in their entirety as set forth herein.
II.    This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and assigns, and shall be deemed to be effective as of the date hereof.
III.    Any reference in any other document executed in connection with the Original Management Agreement or this Agreement to the Original Management Agreement shall be deemed to refer to this Agreement.
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL AGREEMENTS HEREIN SET FORTH, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1.DEFINITIONS. The following terms have the meanings assigned them:
(a)    “Agreement” means this Management and Advisory Agreement, as amended from time to time.
(b)    “Board of Directors” means the Board of Directors of the Company.
(c)    “Code” means the Internal Revenue Code of 1986, as amended.

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(d)    “Common Share” means a share of capital stock of the Company now or hereafter authorized as common voting stock of the Company.
(e)    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
(f)    “Funds from Operations” is as defined by the National Association of Real Estate Investment Trusts and means net income (computed in accordance with GAAP) excluding gains (or losses) from debt restructuring and sales of property, plus depreciation and amortization on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures.
(g)    “Governing Instruments” means, with regard to any entity, the articles of incorporation and bylaws in the case of a corporation, certificate of limited partnership (if applicable) and the partnership agreement in the case of a general or limited partnership or the articles of formation and the operating agreement in the case of a limited liability company.
(h)    “Independent Directors” means the members of the Board of Directors who are not officers or employees of the Manager.
(i)    “Investments” means the investments of the Company.
(j)    “Junior Share” means a share of capital stock of the Company now or hereafter authorized or reclassified that has dividend rights, or rights upon liquidation, winding up and dissolution, that are inferior or junior to the Ordinary Shares.
(k)    “Ordinary Share” means a share of the Company’s Common Shares, par value $0.01 per share. Where relevant in this Agreement, “Ordinary Shares” includes shares of the Company’s Common Shares, par value $0.01 per share, issued upon conversion of Preferred Shares or Junior Shares.
(l)     “Preferred Share” means a share of capital stock of the Company now or hereafter authorized or reclassified that has dividend rights, or rights upon liquidation, winding up and dissolution, that are superior or prior to the Ordinary Shares.
(m)    “Subsidiary” means any subsidiary of the Company and any partnership, the general partner of which is the Company or any subsidiary of the Company and any limited liability company, the managing member of which is the Company or any subsidiary of the Company.

SECTION 2.    APPOINTMENT AND DUTIES OF THE MANAGER.
(a)    The Company hereby appoints the Manager to manage the assets of the Company subject to the further terms and conditions set forth in this Agreement and the Manager hereby agrees to use its commercially reasonable efforts to perform each of the duties set forth herein. The appointment of the Manager shall be exclusive to the Manager except to the extent that the Manager otherwise agrees, in its sole and absolute discretion, and except to the extent that the Manager elects, pursuant to the terms of this Agreement, to cause the duties of the Manager hereunder to be provided by third parties.

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(b)    The Manager, in its capacity as manager of the assets and the day-to-day operations of the Company, at all times will be subject to the supervision of the Company’s Board of Directors and will have only such functions and authority as the Company may delegate to it including, without limitation, the functions and authority identified herein and delegated to the Manager hereby. The Manager will be responsible for the day-to-day operations of the Company and will perform (or cause to be performed) such services and activities relating to the assets and operations of the Company as may be appropriate, including, without limitation:
(i)    serving as the Company’s consultant with respect to the periodic review of the investment criteria and parameters for Investments, borrowings and operations, any modifications to which shall be approved by a majority of the independent members of the Board of Directors (such policy guidelines as are in effect on the date hereof and attached hereto as Schedule 1, as the same may be modified with such approval, the “Guidelines”) and other policies for approval by the Board of Directors;
(ii)    investigation, analysis and selection of investment opportunities;
(iii)    with respect to prospective investments by the Company and dispositions of Investments, conducting negotiations with real estate brokers, sellers and purchasers and their respective agents and representatives, investment bankers and owners of privately and publicly held real estate companies;
(iv)    engaging and supervising, on behalf of the Company and at the Company’s expense, independent contractors which provide real estate brokerage, investment banking and leasing services, mortgage brokerage, securities brokerage and other financial services and such other services as may be required relating to the Investments;
(v)    negotiating on behalf of the Company for the sale, exchange or other disposition of any Investments;
(vi)    coordinating and managing operations of any joint venture or co-investment interests held by the Company and conducting all matters with the joint venture or co-investment partners;
(vii)    coordinating and supervising, on behalf of the Company and at the Company’s expense, all property managers, leasing agents and developers for the administration, leasing, management and/or development of any of the Investments;
(viii)    providing executive and administrative personnel, office space and office services required in rendering services to the Company;
(ix)    administering the day-to-day operations of the Company and performing and supervising the performance of such other administrative functions necessary in the management of the Company as may be agreed upon by the Manager and the Board of Directors, 

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including, without limitation, the collection of revenues and the payment of the Company’s debts and obligations and maintenance of appropriate computer services to perform such administrative functions;
(x)    communicating on behalf of the Company with the holders of any equity or debt securities of the Company as required to satisfy the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations with such holders;
(xi)    counseling the Company in connection with policy decisions to be made by the Board of Directors;
(xii)    evaluating and recommending to the Board of Directors modifications to the hedging strategies in effect on the date hereof and engaging in hedging activities on behalf of the Company, consistent with such strategies, as so modified from time to time, and with the Guidelines;
(xiii)    (Reserved)
(xiv)    counseling the Company regarding the maintenance of its exemption from the Investment Company Act and monitoring compliance with the requirements for maintaining an exemption from that Act;
(xv)    assisting the Company in developing criteria for asset purchase commitments that are specifically tailored to the Company’s investment objectives and making available to the Company its knowledge and experience with respect to mortgage loans, real estate, real estate securities and other real estate-related assets;
(xvi)    representing and making recommendations to the Company in connection with the purchase and finance, and commitment to purchase and finance, of mortgage loans (including on a portfolio basis), real estate, real estate securities and other real estate-related assets, and in connection with the sale and commitment to sell such assets;
(xvii)    monitoring the operating performance of the Investments and providing periodic reports with respect thereto to the Board of Directors, including comparative information with respect to such operating and performance and budgeted or projected operating results;
(xviii)    investing and re-investing any moneys and securities of the Company (including investing in short-term Investments pending investment in Investments, payment of fees, costs and expenses, or payments of dividends or distributions to stockholders and partners of the Company) and advising the Company as to its capital structure and capital raising;
(xix)    causing the Company to retain qualified accountants and legal counsel, as applicable, to assist in developing appropriate accounting procedures, compliance procedures 

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and testing systems with respect to financial reporting obligations and to conduct quarterly compliance reviews with respect thereto;
(xx)    causing the Company to qualify to do business in all applicable jurisdictions and to obtain and maintain all appropriate licenses;
(xxi)    assisting the Company in complying with all regulatory requirements applicable to the Company in respect of its business activities, including preparing or causing to be prepared all financial statements required under applicable regulations and contractual undertakings and all reports and documents required under the Exchange Act;
(xxii)    taking all necessary actions to enable the Company to make required tax filings and reports;
(xxiii)    handling and resolving all claims, disputes or controversies (including all litigation, arbitration, settlement or other proceedings or negotiations) in which the Company may be involved or to which the Company may be subject arising out of the Company’s day-to-day operations, subject to such limitations or parameters as may be imposed from time to time by the Board of Directors;
(xxiv)    using commercially reasonable efforts to cause expenses incurred by or on behalf of the Company to be reasonable or customary and within any budgeted parameters or expense guidelines set by the Board of Directors from time to time;
(xxv)    performing such other services as may be required from time to time for management and other activities relating to the assets of the Company as the Board of Directors shall reasonably request or the Manager shall deem appropriate under the particular circumstances; and
(xxvi)    using commercially reasonable efforts to cause the Company to comply with all applicable laws.
Without limiting the foregoing, the Manager will perform portfolio management services (the “Portfolio Management Services”) on behalf of the Company with respect to the Investments. Such services will include, but not be limited to, consulting with the Company on the purchase and sale of, and other investment opportunities in connection with, the Company’s portfolio of assets; the collection of information and the submission of reports pertaining to the Company’s assets, interest rates and general economic conditions; periodic review and evaluation of the performance of the Company’s portfolio of assets; acting as liaison between the Company and banking, mortgage banking, investment banking and other parties with respect to the purchase, financing and disposition of assets; and other customary functions related to portfolio management. Additionally, the Manager will perform monitoring services (the “Monitoring Services”) on behalf of the Company with respect to any loan servicing activities provided by third parties. Such Monitoring Services will include, but not be limited to, negotiating servicing agreements; acting as a liaison between the servicers of the assets and the Company; review of 

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servicers’ delinquency, foreclosure and other reports on assets; supervising claims filed under any insurance policies; and enforcing the obligation of any servicer to repurchase assets.
(c)    The Manager may enter into agreements with other parties, including its affiliates, for the purpose of engaging one or more property and/or asset managers for and on behalf, and at the sole cost and expense, of the Company to provide property management, asset management, leasing, development and/or similar services to the Company (including, without limitation, Portfolio Management Services and Monitoring Services) with respect to the Investments, pursuant to property management agreement(s) and/or asset management agreement(s) with terms which are then customary for agreements regarding the management of assets similar in type, quality and value to the assets of the Company; provided, that (i) any such agreements entered into with affiliates of the Manager shall be (A) on terms no more favorable to such affiliate then would be obtained from a third party on an arms’-length basis and (B) to the extent the same do not fall within the provisions of the Guidelines, approved by a majority of the independent members of the Board of Directors, (ii) with respect to Portfolio Management Services, (A) any such agreements shall be subject to the Company’s prior written approval and (B) the Manager shall remain liable for the performance of such Portfolio Management Services, and (iii) with respect to Monitoring Services, any such agreements shall be subject to the Company’s prior written approval.
(d)    The Manager may retain, for and on behalf, and at the sole cost and expense, of the Company, such services of accountants, legal counsel, appraisers, insurers, brokers, transfer agents, registrars, developers, investment banks, financial advisors, banks and other lenders and others as the Manager deems necessary or advisable in connection with the management and operations of the Company. Notwithstanding anything contained herein to the contrary, the Manager shall have the right to cause any such services to be rendered by its employees or affiliates. The Company shall pay or reimburse the Manager or its affiliates performing such services for the cost thereof; provided, that such costs and reimbursements are no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis; and provided, further, that such costs shall not be reimbursed in excess of $500,000 per annum.
(e)    As frequently as the Manager may deem necessary or advisable, or at the direction of the Board of Directors, the Manager shall, at the sole cost and expense of the Company, prepare, or cause to be prepared, with respect to any Investment (i) an appraisal prepared by an independent real estate appraiser, (ii) reports and information on the Company’s operations and asset performance and (iii) other information reasonably requested by the Company.
(f)    The Manager shall prepare, or cause to be prepared, at the sole cost and expense of the Company, all reports, financial or otherwise, with respect to the Company reasonably required by the Board of Directors in order for the Company to comply with its Governing Instruments or any other materials required to be filed with any governmental body or agency, and shall prepare, or cause to be prepared, all materials and data necessary to complete such reports and other materials including, without limitation, an annual audit of the Company’s books of account by a nationally recognized independent accounting firm.

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(g)    The Manager shall prepare regular reports for the Board of Directors to enable the Board of Directors to review the Company’s acquisitions, portfolio composition and characteristics, credit quality, performance and compliance with the Guidelines and policies approved by the Board of Directors.
(h)    Notwithstanding anything contained in this Agreement to the contrary, except to the extent that the payment of additional moneys is proven by the Company to have been required as a direct result of the Manager’s acts or omissions which result in the right of the Company to terminate this Agreement pursuant to Section 15 of this Agreement, the Manager shall not be required to expend money (“Excess Funds”) in excess of that contained in any applicable Company Account (as herein defined) or otherwise made available by the Company to be expended by the Manager hereunder. Failure of the Manager to expend Excess Funds out-of-pocket shall not give rise or be a contributing factor to the right of the Company under Section 13(a) of this Agreement to terminate this Agreement due to the Manager’s unsatisfactory performance.
(i)    In performing its duties under this Section 2, the Manager shall be entitled to rely reasonably on qualified experts hired by the Manager.

SECTION 3.    DEVOTION OF TIME; ADDITIONAL ACTIVITIES.
(a)    The Manager will provide a dedicated management team, including a President, a Chief Financial Officer and a Chief Operating Officer of the Company, to provide the management services to be provided by the Manager to the Company hereunder, the members of which team shall have as their primary responsibility the management of the Company and shall devote such of their time to the management of the Company as the Board of Directors reasonably deems necessary and appropriate, commensurate with the level of activity of the Company from time to time.
(b)    Except to the extent set forth in clauses (a) above, nothing herein shall prevent the Manager or any of its affiliates or any of the officers and employees of any of the foregoing from engaging in other businesses or from rendering services of any kind to any other person or entity, including investment in, or advisory service to others investing in, any type of real estate or real estate-related investment, including investments which meet the principal investment objectives of the Company.
(c)    Managers, members, partners, officers, employees and agents of the Manager or affiliates of the Manager may serve as directors, officers, employees, agents, nominees or signatories for the Company or any Subsidiary, to the extent permitted by their Governing Instruments, as from time to time amended, or by any resolutions duly adopted by the Board of Directors pursuant to the Company’s Governing Instruments. When executing documents or otherwise acting in such capacities for the Company, such persons shall use their respective titles in the Company.

SECTION 4.    AGENCY. The Manager shall act as agent of the Company in making, acquiring, financing and disposing of Investments, disbursing and collecting the Company’s funds, paying the debts 

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and fulfilling the obligations of the Company, supervising the performance of professionals engaged by or on behalf of the Company and handling, prosecuting and settling any claims of or against the Company, the Board of Directors, holders of the Company’s securities or the Company’s representatives or properties.

SECTION 5.    BANK ACCOUNTS. At the direction of the Board of Directors, the Manager may establish and maintain one or more bank accounts in the name of the Company or any Subsidiary (any such account, a “Company Account”), and may collect and deposit funds into any such Company Account or Company Accounts, and disburse funds from any such Company Account or Company Accounts, under such terms and conditions as the Board of Directors may approve; and the Manager shall from time to time render appropriate accountings of such collections and payments to the Board of Directors and, upon request, to the auditors of the Company or any Subsidiary.

SECTION 6.    RECORDS; CONFIDENTIALITY.
The Manager shall maintain appropriate books of accounts and records relating to services performed under this Agreement, and such books of account and records shall be accessible for inspection by representatives of the Company or any Subsidiary at any time during normal business hours upon one (1) business day’s advance written notice. The Manager shall keep confidential any and all information obtained in connection with the services rendered under this Agreement and shall not disclose any such information to nonaffiliated third parties except with the prior written consent of the Board of Directors.

SECTION 7.    OBLIGATIONS OF MANAGER; RESTRICTIONS.
(a)    The Manager shall require each seller or transferor of investment assets to the Company to make such representations and warranties regarding such assets as may, in the judgment of the Manager, be necessary and appropriate. In addition, the Manager shall take such other action as it deems necessary or appropriate with regard to the protection of the Investments.
(b)    The Manager shall refrain from any action that, in its sole judgment made in good faith, (i) is not in compliance with the Guidelines or (ii) would violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company or any Subsidiary or that would otherwise not be permitted by such entity’s Governing Instruments. If the Manager is ordered to take any such action by the Board of Directors, the Manager shall promptly notify the Board of Directors of the Manager’s judgment that such action would violate any such law, rule or regulation or the Governing Instruments. Notwithstanding the foregoing, the Manager, its directors, officers, stockholders and employees shall not be liable to the Company or any Subsidiary, the Board of Directors, or the Company’s or any Subsidiary’s stockholders or partners for any act or omission by the Manager, its directors, officers, stockholders or employees except as provided in Section 11 of this Agreement.
(c)    The Manager shall not (i) consummate any transaction which would involve the acquisition by the Company of property in which the Manager or any affiliate thereof has an ownership 

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interest or the sale by the Company of property to the Manager or any affiliate thereof, or (ii) under circumstances where the Manager is subject to an actual or potential conflict of interest because it manages both the Company and another Person (not an Affiliate of the Company) with which the Company has a contractual relationship, take any action constituting the granting to such Person of a waiver, forebearance or other relief, or the enforcement against such Person of remedies, under or with respect to the applicable contract, unless such transaction or action, as the case may be and in each case, is approved by a majority of the Independent Directors.
(d)    The Company shall not invest in joint ventures with the Manager or any affiliate thereof, unless (i) such Investment is made in accordance with the Guidelines and (ii) such Investment is approved in advance by a majority of the Independent Directors.
(e)    The Board of Directors periodically reviews the Guidelines and the Company’s portfolio of Investments. If a majority of the Independent Directors determine in their periodic review of transactions that a particular transaction does not comply with the Guidelines, then a majority of the Independent Directors will consider what corrective action, if any, can be taken. If the transaction involved the acquisition of an asset from the Manager or an affiliate of the Manager that was not approved in advance by a majority of the Independent Directors, then the Manager may be required to repurchase the asset at the purchase price (plus closing costs) to the Company.
(f)    The Manager shall at all times during the term of this Agreement (including the Initial Term and any renewal term) maintain a tangible net worth equal to or greater than $1,000,000. Additionally, during such period the Manager shall maintain “errors and omissions” insurance coverage and other insurance coverage which is customarily carried by property and asset and investment managers performing functions similar to those of the Manager under this Agreement with respect to assets similar to the assets of the Company, in an amount which is comparable to that customarily maintained by other managers or servicers of similar assets.

SECTION 8.    COMPENSATION.
(a)    During the term of this Agreement, as the same may be extended from time to time, the Manager will receive an annual management fee (the “Management Fee”) equal to 1.50% of the Company’s “Gross Equity.” The Management Fee shall be calculated and paid monthly in arrears based upon the weighted daily average of the Gross Equity of the Company for such month. The term “Gross Equity” for any period means (A) the sum of (i) the “Total Equity,” plus (ii) the value of contributions made by partners other than the Company, from time to time, to the capital of any Subsidiary (reduced proportionately in the case of a Subsidiary to the extent that the Company owns, directly or indirectly, less than 100% of the equity interests in such Subsidiary), less (B) any capital dividends or capital distributions made by the Company to its stockholders or, without duplication, by any Subsidiary to its stockholders, partners or other equity holders. As used herein, the term “Total Equity” shall mean (i) the equity transferred from Newcastle Investment Holdings Corp. at the inception of the Company, plus (ii) the amount of accumulated depreciation on the real estate assets transferred (as directly or indirectly held assets) to the Company (items (i) and (ii) thus representing the gross equity transferred to the Company at 

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inception), plus (iii) the total net proceeds to the Company from any common or preferred equity capital heretofore or hereafter raised by the Company or any Subsidiary of the Company (exclusive, with respect to any Subsidiary, of capital of such Subsidiary consisting of a capital contribution or other form of capital investment made by the Company or another Subsidiary of the Company).
(b)    The Manager shall compute each installment of the Management Fee within 15 days after the end of the calendar month with respect to which such installment is payable. A copy of the computations made by the Manager to calculate such installment shall thereafter, for informational purposes only and subject in any event to Section 13(a) of this Agreement, promptly be delivered to the Board of Directors and, upon such delivery, payment of such installment of the Management Fee shown therein shall be due and payable no later than the earlier to occur of (i) the date which is 20 days after the end of the calendar month with respect to which such installment is payable and (ii) the date which is two (2) business days after the date of delivery to the Board of Directors of such computations.
(c)    The Management Fee is subject to adjustment pursuant to and in accordance with the provisions of Section 13(a) of this Agreement.
(d)    The Board of Directors may, by written notice to the Manager delivered ten (10) days prior to the date on which any payment of the Incentive Compensation is payable, request that the Manager accept all or a portion of such payment in the form of issued shares of common stock in the Company, which notice shall specify the amount of the payment of the Incentive Compensation, the amount thereof which the Company intends to pay in cash, if any, and the amount thereof which the Company intends to pay in the form of such shares of common stock of the Company in the number of such shares as determined by the Board of Directors. Within five (5) days following receipt of said notice, the Manager shall notify the Company in writing, such election to be made by the Manager in its sole discretion, whether it will accept such portion of such payment in the form of such shares and in such number of such shares.
(e)    In addition to the Management Fee otherwise payable hereunder, the Company shall pay the Manager annual incentive compensation on a cumulative, but not compounding, basis, in an amount equal to the product of (A) 25% of the dollar amount by which (1)(a) the Funds from Operations (before such payment) of the Company, per Ordinary Share (based on the weighted average number of Ordinary Shares outstanding), plus (b) gains (or losses) from debt restructuring and gains (or losses) from sales of property per Ordinary Share (based on the weighted average number of Ordinary Shares outstanding), exceed (2) an amount equal to (a) the weighted average of the book value per Ordinary Share of the net assets transferred to the Company on or prior to July 12, 2002 by Newcastle Investment Holdings Corp. and the prices per Ordinary Share at any subsequent offerings by the Company (adjusted for any prior capital dividends or capital distributions) multiplied by (b) a simple interest rate of ten percent (10%) per annum multiplied by (B) the weighted average number of Ordinary Shares outstanding during such period. The obligation of the Company to pay the Incentive Compensation shall survive the expiration or earlier termination of this Agreement, subject to Section 16(b).

SECTION 9.    EXPENSES OF THE COMPANY. The Company shall pay all of its expenses and shall reimburse the Manager for documented expenses of the Manager incurred on its behalf 

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(collectively, the “Expenses”). Expenses include all costs and expenses which are expressly designated elsewhere in this Agreement as the Company’s, together with the following:
(a)    expenses in connection with the issuance and transaction costs incident to the acquisitions, disposition and financing of Investments;
(b)    travel and other out-of-pocket expenses incurred by managers, officers, employees and agents of the Manager in connection with the purchase, financing, refinancing, sale or other disposition of an Investment;
(c)    costs of legal, accounting, tax, auditing, administrative and other similar services rendered for the Company by providers retained by the Manager or, if provided by the Manager’s employees, in amounts which are no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis;
(d)    the compensation and expenses of the Independent Directors and the cost of liability insurance to indemnify the Company’s directors and officers;
(e)    compensation and expenses of the Company’s custodian and transfer agent, if any;
(f)    costs associated with the establishment and maintenance of any credit facilities and other indebtedness of the Company (including commitment fees, legal fees, closing and other costs) or any securities offerings of the Company;
(g)    costs associated with any computer software or hardware that is used solely for the Company;
(h)    costs and expenses incurred in contracting with third parties, including affiliates of the Manager, for the servicing and special servicing of assets of the Company;
(i)    all other costs and expenses relating to the Company’s business and investment operations, including, without limitation, the costs and expenses of acquiring, owning, protecting, maintaining, developing and disposing of Investments, including appraisal, reporting, audit and legal fees;
(j)    all insurance costs incurred in connection with the operation of the Company’s business except for the costs attributable to the insurance that the Manager elects to carry for itself and its employees;
(k)    expenses relating to any office or office facilities maintained for the Company or Investments separate from the office or offices of the Manager;
(l)    expenses connected with the payments of interest, dividends or distributions in cash or any other form made or caused to be made by the Board of Directors to or on account of the holders of 

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securities of the Company or its Subsidiaries, including, without limitation, in connection with any dividend reinvestment plan;
(m)    expenses connected with communications to holders of securities of the Company or its Subsidiaries and other bookkeeping and clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including, without limitation, all costs of preparing and filing required reports with the Securities and Exchange Commission, the costs payable by the Company to any transfer agent and registrar in connection with the listing and/or trading of the Company’s stock on any exchange, the fees payable by the Company to any such exchange in connection with its listing, costs of preparing, printing and mailing the Company’s annual report to its shareholders and proxy materials with respect to any meeting of the shareholders of the Company; and
(n)    all other expenses actually incurred by the Manager which are reasonably necessary for the performance by the Manager of its duties and functions under this Agreement.
(o)    Without regard to the amount of compensation received under this Agreement by the Manager, the Manager shall bear the following expenses: (i) wages and salaries of the Manager’s officers and employees; (ii) rent attributable to the space occupied by the Manager; and (iii) all other “overhead” expenses of the Manager.

SECTION 10.    CALCULATIONS OF EXPENSES. The Manager shall prepare a statement documenting the Expenses of the Company and the Expenses incurred by the Manager on behalf of the Company during each calendar month, and shall deliver such statement to the Company within 20 days after the end of each calendar month. Expenses incurred by the Manager on behalf of the Company shall be reimbursed monthly to the Manager on the first business day of the month immediately following the date of delivery of such statement.

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SECTION 11.    LIMITS OF MANAGER RESPONSIBILITY; INDEMNIFICATION. (a) The Manager assumes no responsibility under this Agreement other than to render the services called for under this Agreement in good faith and shall not be responsible for any action of the Board of Directors in following or declining to follow any advice or recommendations of the Manager, including as set forth in Section 7(b) of this Agreement. The Manager, its members, managers, officers and employees will not be liable to the Company or any Subsidiary, to the Board of Directors, or the Company’s or any Subsidiary’s stockholders or partners for any acts or omissions by the Manager, its members, managers, officers or employees, pursuant to or in accordance with this Agreement, except by reason of acts constituting bad faith, willful misconduct, gross negligence or reckless disregard of the Manager’s duties under this Agreement. The Company shall, to the full extent lawful, reimburse, indemnify and hold the Manager, its members, managers, officers and employees and each other Person, if any, controlling the Manager (each, an “Indemnified Party”), harmless of and from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including attorneys’ fees) in respect of or arising from any acts or omissions of such Indemnified Party made in good faith in the performance of the Manager’s duties under this Agreement and not constituting such Indemnified Party’s bad faith, willful misconduct, gross negligence or reckless disregard of the Manager’s duties under this Agreement.
(a)    The Manager shall, to the full extent lawful, reimburse, indemnify and hold the Company, its shareholders, directors, officers and employees and each other Person, if any, controlling the Company (each, a “Company Indemnified Party”), harmless of and from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including attorneys’ fees) in respect of or arising from the Manager’s bad faith, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement.

SECTION 12.     NO JOINT VENTURE. Nothing in this Agreement shall be construed to make the Company and the Manager partners or joint venturers or impose any liability as such on either of them.

SECTION 13.     TERM; TERMINATION.
(a)    Until this Agreement is terminated in accordance with its terms, this Agreement shall be in effect until the date that is one (1) years after the date hereof, and thereafter on each anniversary of such date deemed renewed automatically each year for an additional one-year period unless (i) a majority consisting of at least two-thirds of the Independent Directors or a simple majority of the holders of outstanding shares of Common Stock of the Company, agree that there has been unsatisfactory performance that is materially detrimental to the Company or (ii) a simple majority of the Independent Directors agree that the Management Fee payable to the Manager is unfair; provided, that the Company shall not have the right to terminate this Agreement under clause (ii) foregoing if the Manager agrees to continue to provide the services under this Agreement at a fee that the Independent Directors have determined to be fair. If the Company elects not to renew this Agreement at the expiration of the original term or any such one-year extension term as set forth above, the Company shall deliver to the Manager prior written notice (the “Termination Notice”) of the Company’s intention not to renew this Agreement based upon the terms set forth in this Section 13(a) of this Agreement not less than 60 days prior to the 

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expiration of the then existing term. If the Company so elects not to renew this Agreement, the Company shall designate the date (the “Effective Termination Date”), not less than 60 days from the date of the notice, on which the Manager shall cease to provide services under this Agreement and this Agreement shall terminate on such date; provided, however, that in the event that such Termination Notice is given in connection with a determination that the compensation payable to the Manager is unfair, the Manager shall have the right to renegotiate the Management Fee by delivering to the Company, no fewer than forty-five (45) days prior to the prospective Effective Termination Date, written notice (any such notice, a “Notice of Proposal to Negotiate”) of its intention to renegotiate its compensation under this Agreement. Thereupon, the Company and the Manager shall endeavor to negotiate in good faith the revised compensation payable to the Manager under this Agreement. Provided that the Manager and the Company agree to a revised Management Fee (or other compensation structure) within 45 days following the receipt of the Notice of Proposal to Negotiate, the Termination Notice shall be deemed of no force and effect and this Agreement shall continue in full force and effect on the terms stated in this Agreement, except that the Management Fee shall be the revised Management Fee (or other compensation structure) then agreed upon by the parties to this Agreement. The Company and the Manager agree to execute and deliver an amendment to this Agreement setting forth such revised Management Fee promptly upon reaching an agreement regarding same. In the event that the Company and the Manager are unable to agree to a revised Management Fee during such 30 day period, this Agreement shall terminate, such termination to be effective on the date which is the later of (A) ten (10) days following the end of such 30 day period and (B) the Effective Termination Date originally set forth in the Termination Notice.
(b)    In the event that this Agreement is terminated in accordance with the provisions of Section 13(a) of this Agreement, the Company shall pay to the Manager, on the date on which such termination is effective, a termination fee (the “Termination Fee”) equal to the amount of the Management Fee earned by the Manager during the period consisting of the twelve (12) full, consecutive calendar months immediately preceding such termination. The obligation of the Company to pay the Termination Fee shall survive the termination of this Agreement.
(c)    No later than sixty (60) days prior to the anniversary date of this Agreement of any year during the Term, the Manager may deliver written notice to the Company informing it of the Manager’s intention not to renew the Term, whereupon the Term of this Agreement shall not be renewed and extended and this Agreement shall terminate effective on the anniversary of the Closing Date next following the delivery of such notice.
(d)    If this Agreement is terminated pursuant to this Section 13, such termination shall be without any further liability or obligation of either party to the other, except as provided in Section 13(b) and Section 16 of this Agreement. In addition, Section 11 of this Agreement shall survive termination of this Agreement.

SECTION 14.    ASSIGNMENT.
(a)    Except as set forth in Section 14(b) of this Agreement, this Agreement shall terminate automatically in the event of its assignment, in whole or in part, by the Manager, unless such assignment 

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is consented to in writing by the Company with the consent of a majority of the Independent Directors; provided, however, that no such consent shall be required in the case of an assignment by the Manager to an entity whose day-to-day business and operations are managed and supervised by each of Messrs. Wesley R. Edens and Randal A. Nardone (collectively, the “Principals”). Any such permitted assignment shall bind the assignee under this Agreement in the same manner as the Manager is bound, and the Manager shall be liable to the Company for all errors or omissions of the assignee under any such assignment. In addition, the assignee shall execute and deliver to the Company a counterpart of this Agreement naming such assignee as Manager. This Agreement shall not be assigned by the Company without the prior written consent of the Manager, except in the case of assignment by the Company to any other organization which is a successor (by merger, consolidation or purchase of assets) to the Company, in which case such successor organization shall be bound under this Agreement and by the terms of such assignment in the same manner as the Company is bound under this Agreement.
(b)    Notwithstanding any provision of this Agreement, the Manager may subcontract and assign any or all of its responsibilities under Sections 2(b), 2(c) and 2(d) of this Agreement to any of its affiliates in accordance with the terms of this Agreement applicable to any such subcontract or assignment, and the Company hereby consents to any such assignment and subcontracting. In addition, provided that the Manager provides prior written notice to the Company for informational purposes only, nothing contained in this Agreement shall preclude any pledge, hypothecation or other transfer of any amounts payable to the Manager under this Agreement.

SECTION 15.    TERMINATION FOR CAUSE.
(a)    The Company may terminate this Agreement effective upon sixty (60) days prior written notice of termination from the Company to the Manager, without payment of any Termination Fee, if any act of fraud, misappropriation of funds, or embezzlement against the Company or other willful violation of this Agreement by the Manager in its corporate capacity (as distinguished from the acts of any employees of the Manager which are taken without the complicity of any of the Principals) under this Agreement or in the event of any gross negligence on the part of the Manager in the performance of its duties under this Agreement.
(b)    The Manager may terminate this Agreement effective upon sixty (60) days prior written notice of termination to the Company in the event that the Company shall default in the performance or observance of any material term, condition or covenant contained in this Agreement and such default shall continue for a period of 30 days after written notice thereof specifying such default and requesting that the same be remedied in such 30 day period.

SECTION 16.    ACTION UPON TERMINATION. (a) From and after the effective date of termination of this Agreement, pursuant to Sections 13, 14, or 15 of this Agreement, the Manager shall not be entitled to compensation for further services under this Agreement, but shall be paid all compensation accruing to the date of termination and, if terminated pursuant to Section 13 or Section 15(b), the applicable Termination Fee. Upon such termination, the Manager shall forthwith:

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(i)    after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled, pay over to the Company or a Subsidiary all money collected and held for the account of the Company or a Subsidiary pursuant to this Agreement;
(ii)    deliver to the Board of Directors a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board of Directors with respect to the Company or a Subsidiary; and
(iii)    deliver to the Board of Directors all property and documents of the Company or any Subsidiary then in the custody of the Manager.
(b)    In the event that this Agreement is terminated, the Company shall have the option, to be exercised by written notice to the Manager within ten (10) days following such termination, to purchase from the Manager the right of the Manager to receive the Incentive Compensation. In exchange therefor the Company will be obligated to pay the Manager a cash purchase price (the “Cash Price”) equal to the amount of the Incentive Compensation that would be paid to the Manager if all of the Company’s assets were sold for cash at their then current fair market value (taking into account, among other things, expected future performance of the underlying investments, the “Fair Market Value”). In the event that the Company does not elect to exercise such option to purchase the Incentive Compensation, the Manager shall have the right to require the Company to do so at the Cash Price by delivering to the Company written notice within twenty (20) days following such termination. The Fair Market Value shall be determined by independent appraisal to be conducted by a nationally recognized appraisal firm mutually agreed upon by the Company and the Manager. If the Company and the Manager are unable to agree upon an appraisal firm, then each of the Company and the Manager shall choose an independent appraisal firm to conduct an appraisal. In such event, (i) if the appraisals prepared by the two appraisers so selected are the same or differ by an amount that does not exceed 20% of the higher of the two appraisals, the Fair Market Value will be deemed to be the average of such appraisals, and (ii) if the two appraisals differ by more than 20% of the higher of the two appraisals, the two appraisers together shall select a third nationally recognized appraisal firm to conduct an appraisal. If the two appraisers are unable to agree as to the identity of such third appraiser, either of the Manager and the Company may request that the American Arbitration Association (“AAA”) select the third appraiser, which shall then be selected by the AAA. The Fair Market Value will then be deemed to be the amount determined by such third appraiser, but in no event less than the lower or more than the higher of the first two appraisals made under this Section 16(b).

SECTION 17.     RELEASE OF MONEY OR OTHER PROPERTY UPON WRITTEN REQUEST. The Manager agrees that any money or other property of the Company or Subsidiary held by the Manager under this Agreement shall be held by the Manager as custodian for the Company or Subsidiary, and the Manager’s records shall be appropriately marked clearly to reflect the ownership of such money or other property by the Company or such Subsidiary. Upon the receipt by the Manager of a written request signed by a duly authorized officer of the Company requesting the Manager to release to the Company or any Subsidiary any money or other property then held by the Manager for the account of 

16

the Company or any Subsidiary under this Agreement, the Manager shall release such money or other property to the Company or any Subsidiary within a reasonable period of time, but in no event later than sixty (60) days following such request. The Manager shall not be liable to the Company, any Subsidiary, the Independent Directors, or the Company’s or a Subsidiary’s stockholders or partners for any acts performed or omissions to act by the Company or any Subsidiary in connection with the money or other property released to the Company or any Subsidiary in accordance with the first sentence of this Section 17. The Company and any Subsidiary shall indemnify the Manager and its members, managers, officers and employees against any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in connection with the Manager’s release of such money or other property to the Company or any Subsidiary in accordance with the terms of this Section 17. Indemnification pursuant to this provision shall be in addition to any right of the Manager to indemnification under Section 11 of this Agreement.

SECTION 18.    NOTICES. Unless expressly provided otherwise in this Agreement, all notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given, made and received when delivered against receipt or upon actual receipt of (i) personal delivery, (ii) delivery by reputable overnight courier, (iii) delivery by facsimile transmission against answerback, (iv) delivery by registered or certified mail, postage prepaid, return receipt requested, addressed as set forth below:
(a)    If to the Company:
Drive Shack Inc. 
c/o Fortress Investment Group LLC 
1345 Avenue of the Americas 
45th Floor 
New York, New York 10105 
Attention: Ms. Sarah Watterson
(b)    If to the Manager:
FIG LLC 
1345 Avenue of the Americas 
45th Floor 
New York, New York 10105 
Attention: Mr. Randal A. Nardone
Either party may alter the address to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section 18 for the giving of notice.

SECTION 19.    BINDING NATURE OF AGREEMENT; SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and permitted assigns as provided in this Agreement.

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SECTION 20.    ENTIRE AGREEMENT. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter of this Agreement, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter of this Agreement. The express terms of this Agreement control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms of this Agreement. This Agreement may not be modified or amended other than by an agreement in writing.

SECTION 21.    CONTROLLING LAW. This Agreement and all questions relating to its validity, interpretation, performance and enforcement shall be governed by and construed, interpreted and enforced in accordance with the laws of the State of New York, notwithstanding any New York or other conflict-of-law provisions to the contrary.

SECTION 22.    INDULGENCES, NOT WAIVERS. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

SECTION 23.    TITLES NOT TO AFFECT INTERPRETATION. The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation of this Agreement.

SECTION 24.    EXECUTION IN COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts of this Agreement, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

SECTION 25.    PROVISIONS SEPARABLE. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

SECTION 26.    GENDER. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
	
	
	COMPANY:

	 

	Drive Shack Inc.,

	a Maryland corporation

	 

	By: /s/ Sarah Watterson

	Name: Sarah Watterson

	Its: Chief Executive Officer and President

	 

	 

	MANAGER:

	 

	FIG LLC, a Delaware limited liability company

	 

	By: Randal A. Nardone

	Name: Randal A. Nardone

	Its: Chief Executive Officer

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Schedule 1
INVESTMENT GUIDELINES OF DRIVE SHACK INC.

Capitalized terms used but not defined herein shall have the meanings ascribed thereto in that certain Amended and Restated Management and Advisory Agreement dated as of January 1, 2017 by and between Drive Shack Inc. (the "Corporation") and FIG LLC (the "Manager").

1.  No investment of the Corporation shall be made which would cause the Company to be regulated as an investment company under the Investment Company Act of 1940.

2.   The Corporation shall not invest more than 20% of its Total Equity, determined as of the date of such investment, in any single asset.

3.  The debt of the Corporation (including the Corporation’s pro rata share of debt of its subsidiaries) shall not exceed 90% of the sum of such debt and the Total Equity of the Corporation.

4.  The Corporation shall not co-invest with the Manager or any of its affiliates unless (i) the Corporation’s co-investment is otherwise in accordance with these Guidelines and (ii) the terms of such co-investment are at least as favorable to the Corporation as to the Manager or such affiliate (as applicable) making such co-investment with the Manager.Exhibit 4.1

 

EXECUTION VERSION

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of March 1, 2017, by and among BioScrip, Inc.,
a Delaware corporation (the “Company”), Venor Capital Master Fund Ltd., Map 139 Segregated Portfolio
of LMA SPC, Venor Special Situations Fund II LP and Trevithick LP, (each a “Stockholder” and, collectively,
the “Stockholders”). Each of the Company and the Stockholders may be referred to in this Agreement as
a “Party,” and, collectively, as the “Parties.” Capitalized terms used but
not otherwise defined herein have the meanings assigned such terms in Section 9 of this Agreement.

 

A.       The
Company and the Stockholders are parties to that certain Stock Purchase Agreement, dated as of March 1, 2017 (the “Purchase
Agreement”), pursuant to which the Stockholders are purchasing an aggregate of 3,300,000 shares of the Company’s
common stock (the “Purchased Shares”).

 

B.       In
connection with the transactions contemplated by the Purchase Agreement, and pursuant to the terms of the Purchase Agreement, the
Parties desire to enter into this Agreement in order to grant to the Stockholders and certain of their respective permitted transferees
certain registration rights covering the Purchased Shares, all in accordance with the terms and conditions set forth below.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Stockholders hereby agree as follows:

 

1.       Shelf
Registrations.

 

(a)       The
Company shall (i) cause to be filed a shelf registration statement on Form S-3 pursuant to Rule 415 under the Securities Act (the
“Registration Statement”), within ten (10) days of the date it files its annual report on Form 10-K for
the fiscal year ended December 31, 2016 (such date being the “Shelf Filing Deadline”), which Registration
Statement shall provide for resales of all Registrable Securities the Holders of which shall have provided the information required
pursuant to Section 2(c) hereof; (ii) if the Registration Statements gets “no review” or “limited review”
from the SEC use its reasonable best efforts to cause such Registration Statement to become or be declared effective by the SEC
at the earliest possible time, but in no event later that the 30th day after the Shelf Filing Deadline (or if such 30th day is
not a Business Day, the next succeeding Business Day); and (iii) if the Registration Statement is reviewed by the SEC, use its
reasonable best efforts to cause such Registration Statement to be declared effective by the SEC at the earliest possible time,
but in no event later that the 75th day after the Shelf Filing Deadline (or if such 75th day is not a Business Day, the next succeeding
Business Day).

 

(b)       The
Company shall use its reasonable best efforts to keep such Registration Statement continuously effective, supplemented and amended
as required by the provisions of Sections 2(a) and (b) hereof to the extent necessary to ensure that it is available for resales
of Registrable Securities entitled to the benefit of Section 1(a), and to ensure that it conforms with the requirements of this
Agreement, the Securities Act and the policies, rules and regulations of the SEC as announced from time to time, for a period of
at least one year following the effective date of such Registration Statement (or shorter period that will terminate when all the
Securities covered by such Registration Statement have been sold pursuant to such Registration Statement or are otherwise no longer
Registrable Securities).

 

     

     

    

 

2.       Registration
Procedures.

 

(a)       In
connection with the Registration Statement, the Company shall comply with all the provisions of Section 2(b) hereof and shall use
its commercially reasonable efforts to effect such registration to permit the sale of the Registrable Securities being sold in
accordance with the intended method or methods of distribution thereof, and pursuant thereto the Company will as expeditiously
as is commercially reasonable prepare and file with the SEC a Registration Statement relating to the registration, which form shall
be available for the sale of the Registrable Securities in accordance with the intended method or methods of distribution thereof.

 

(b)       In
connection with the Registration Statement and any prospectus required by this Agreement to permit the sale or resale of Registrable
Securities, the Company shall:

 

(i)       respond
to written comments received from the SEC upon a review of the Registration Statement as promptly as reasonably possible;

 

(ii)       promptly
notify each Holder of the effectiveness of the Registration Statement filed hereunder; by 9:30 a.m. (New York time) on the second
Business Day following such effectiveness, file with the SEC in accordance with Rule 424 under the Securities Act the final prospectus
to be used in connection with sales pursuant to the Registration Statement; and prepare and file with the SEC such amendments and
supplements to the Registration Statement and the prospectus used in connection therewith, and otherwise take such actions, as
may be necessary to keep the Registration Statement effective for the period set forth in Section 1(b), and comply with the provisions
of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during such period
in accordance with the intended methods of disposition by the sellers thereof set forth in the Registration Statement;

 

(iii)       promptly
furnish to each Holder such number of copies of the Registration Statement, each amendment and supplement thereto, the prospectus
included in such Registration Statement (including each preliminary prospectus) and such other documents as the Holders may reasonably
request in order to facilitate the disposition of the Registrable Securities owned by each Holder;

 

(iv)       if
applicable, use commercially reasonable efforts to register or qualify the shares covered by the Registration Statement under
such other securities or blue sky laws of such jurisdictions as each Holder shall reasonably request and do any and all other
acts and things which may be reasonably necessary or advisable to enable each Holder to consummate the disposition in such jurisdictions
of the Registrable Securities owned by such Holder (provided that the Company shall not be required to (A) qualify generally to
do business in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph, (B) subject itself
to taxation in any such jurisdiction or (C) consent to general service of process in any such jurisdiction);

 

     2

     

    

 

(v)       notify
each Holder at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening
of any event as a result of which the prospectus included in the Registration Statement contains an untrue statement of a material
fact or omits any fact necessary to make the statements therein not misleading, and, as expeditiously as possible following the
happening of such event, prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any fact
necessary to make the statements therein not misleading;

 

(vi)       without
limiting any obligations of the Company under the Purchase Agreement, use its commercially reasonable efforts to (x) cause all
such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then
listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (y) if such
listing is not then permitted, or no similar securities issued by the Company are then so listed, secure a designation and quotation
of all of the Registrable Securities covered by each Registration Statement on the OTC Bulletin Board;

 

(vii)       provide
a transfer agent and registrar for all such Registrable Securities not later than the effective date of the Registration Statement;

 

(viii)       otherwise
use its reasonable best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security
holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve (12) months beginning
with the first day of the Company’s first full calendar quarter after the effective date of the Registration Statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder, and which requirement
will be deemed satisfied if the Company timely files complete and accurate information on Forms 10-Q and 10-K and Current Reports
on Form 8-K under the Exchange Act and otherwise complies with Rule 158 under the Securities Act;

 

(ix)       in
the event of the issuance of any stop order suspending the effectiveness of the Registration Statement, or of any order suspending
or preventing the use of any related prospectus or suspending the qualification of any Common Stock included in such Registration
Statement for sale in any jurisdiction, the Company shall promptly notify each Holder and use commercially reasonable efforts promptly
to obtain the withdrawal of such order;

 

(x)       use
reasonable best efforts to cause such Registrable Securities covered by the Registration Statement to be registered with or approved
by such other governmental agencies or authorities as may be necessary to enable the Holders thereof to consummate the disposition
of such Registrable Securities; and

 

     3

     

    

 

(xi)       cooperate
with each Holder and any broker or dealer through which any such Holder proposes to sell its Registrable Securities in effecting
a filing with FINRA pursuant to FINRA Rule 5110 as requested by such Holder.

 

(c)       Each
Holder that requested that any Registrable Securities be registered pursuant to this Agreement shall deliver to the Company such
requisite information with respect to itself and its Registrable Securities as the Company may reasonably request for inclusion
in the Registration Statement (and the prospectus included therein) as is necessary to comply with all applicable rules and regulations
of the SEC, and that it will promptly notify the Company of any material changes in the information set forth in the Registration
Statement furnished by or regarding the Holder or its plan of distribution.

 

(d)       The
Holders shall not effect sales of the shares covered by the Registration Statement (i) prior to the withdrawal of any stop
order suspending the effectiveness of the Registration Statement, or of any order suspending or preventing the use of any related
prospectus or suspending the registration or qualification of any Registrable Securities included in the Registration Statement
for sale in any jurisdiction where such shares had previously been registered or qualified or (ii) after receipt of facsimile
or other written notice from the Company instructing such Holders to suspend sales to permit the Company to correct or update the
Registration Statement or prospectus until such Holder receives copies of a supplemented or amended prospectus that corrects the
misstatement(s) or omission(s) referred to above and receives notice that any required post-effective amendment has become effective.
Such Holder agrees that it will immediately discontinue offers and sales of Registrable Securities under the Registration Statement
until such Holder receives copies of a supplemented or amended prospectus that corrects the misstatement(s) or omission(s) referred
to above and receives notice that any post-effective amendment has become effective.

 

(e)       Notwithstanding
anything herein to the contrary, the Company shall have the right to suspend the use of a Registration Statement for a period of
not greater than forty-five (45) consecutive days and for not more than ninety (90) days in any twelve (12) month period (“Blackout
Period”), if, in the good faith opinion of the Board of Directors of the Company, after consultation with counsel,
material, nonpublic information exists, including without limitation the proposed acquisition or divestiture of assets by the Company,
a strategic alliance or a financing transaction involving the Company or the existence of pending material corporate developments,
the public disclosure of which would be necessary to cause the Registration Statement to be materially true and to contain no material
misstatements or omissions, and in each such case, where, in the good faith opinion of the Board of Directors, such disclosure
would be reasonably likely to have a Material Adverse Effect (as defined in the Purchase Agreement) on the Company or on the proposed
transaction. The Company must give the Holders notice promptly upon knowledge that a Blackout Period (without indicating the nature
of such Blackout Period) may occur and prompt written notice if a Blackout Period will occur and such notices must be acknowledged
in writing by the Investors. Upon the conclusion of a Blackout Period the Company shall provide the Holder written notice that
the Registration Statement is again available for use. For the avoidance of doubt, the delivery of notice that Blackout Period
may or will occur is not material non-public information that will otherwise prohibit the Investors from trading the Company’s
securities, and the Investors will not be violating any duty to the Company (or misappropriating any information) if any of them
do in fact so trade.

 

     4

     

    

 

3.       Registration
Expenses. All expenses (other than Selling Expenses) incident to the Company’s performance of or compliance with this
Agreement, including without limitation all registration and filing fees, fees and expenses of compliance with securities or blue
sky laws, printing expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements
of counsel for the Company and independent certified public accountants, underwriters (excluding fees, discounts and commissions)
and other persons retained by the Company, and reasonable fees and expenses of one counsel for the Holders in connection with any
Registration Statement (all such expenses being herein called “Registration Expenses”), shall be borne
by the Company. The Company shall not be liable for any Selling Expenses. As used herein, the term “Selling Expenses”
shall mean, collectively, any selling commissions, discounts or brokerage fees. Selling Expenses shall be borne by the respective
seller thereof, in proportion to the respective number of shares of Registrable Securities sold by each of them.

 

4.       Holder’s
Obligations. Each Holder covenants and agrees that, in the event the Company informs such Holder in writing that it does not
satisfy the conditions specified in Rule 172 and, as a result thereof, such Holder is required to deliver a prospectus in connection
with any disposition of Registrable Securities, it will comply with the prospectus delivery requirements of the Securities Act
as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to
the Registration Statement, and shall sell the Registrable Securities only in accordance with a method of distribution described
in the Registration Statement.

 

5.       Indemnification.

 

(a)       The
Company shall indemnify, to the extent permitted by applicable law, each Holder, its officers, directors, partners, managers, members,
investment managers, employees, agents and representatives, and each Person who controls each Holder (within the meaning of Section
15 of the Securities Act and Section 20 of the Exchange Act) against all losses, claims, damages, liabilities and expenses (including
reasonable legal expenses) arising out of or based upon (i) any untrue or alleged untrue statement of material fact contained in
(or incorporated by reference therein) the Registration Statement, free writing prospectus, prospectus or preliminary prospectus,
filing under any state securities (or blue sky) law or any amendment thereof or supplement thereto or any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including any state securities law,
or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement,
or (iii) any breach or violation of this Agreement; provided, however, that the Company shall not be liable to any such indemnified
party in any such case to the extent that (A) such claim arises out of or is based upon any untrue statement or alleged untrue
statement of a material fact contained in (or incorporated by reference therein) the Registration Statement, free writing prospectus,
prospectus or preliminary prospectus, filing under any state securities (or blue sky) law or any amendment thereof or supplement
thereto or any omission or alleged omission of a material fact in reliance upon and in conformity with information furnished to
the Company by or on behalf of such Holder or its representatives by or on behalf of such Holder expressly for use therein, or
(B) such claim is related to the use by a Holder or underwriter, if any, of an outdated or defective prospectus after such party
has received written notice from the Company that such prospectus is outdated or defective

 

     5

     

    

 

(b)       Each
Holder shall, severally and not jointly, to the extent permitted by applicable law, indemnify the Company, its directors and officers
and each Person who controls the Company (within the meaning of Section 15 the Securities Act and Section 20 of the Exchange Act),
to the fullest extent permitted by applicable law, against any losses, claims, damages, liabilities and expenses (including reasonable
legal expenses) arising out of or based upon any untrue or alleged untrue statement of material fact contained in (or incorporated
by reference therein) the Registration Statement, free writing prospectus, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements herein not misleading, but only to the extent that such untrue statement or omission was made in reliance
upon and in conformity with any information furnished in writing to the Company by such Holder or its representatives by or on
behalf of such Holder expressly for use therein; provided that each Holder shall be liable under this Section 6(b) of this
Agreement (and otherwise) for only up to the amount of net amount of proceeds actually received by each Holder as a result of the
sale of Registrable Securities pursuant to the Registration Statement giving rise to such indemnification obligation.

 

(c)       Any
Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect
to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any Person’s right to
indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (ii) unless, in the Company’s
reasonable judgment, a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim,
permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party.
After written notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim,
the indemnifying party shall not be subject to any liability for any settlement subsequently made by the indemnified party without
its consent (but such consent shall not be unreasonably withheld, conditioned or delayed). An indemnifying party who is not entitled
to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel
for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of the Company,
a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such
claim, in which case the indemnifying party shall be liable for the fees and expenses of one additional firm of attorneys with
respect to the indemnified parties. The indemnifying party shall keep the indemnified party reasonably apprised at all times as
to the status of the defense or any settlement negotiations with respect to such claim. No indemnifying party shall, without the
prior written consent of the indemnified party, consent to entry of any judgment or enter into any settlement or other compromise
which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a
full release from all liability with respect to such claim.

 

(d)       The
indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by
or on behalf of the indemnified party or any officer, director, partner, manager, member, investment manager, employee, agent,
representative or controlling Person of such indemnified party and shall survive the transfer of Registrable Securities. The indemnity
agreements contained herein shall be in addition to (i) any cause of action or similar right of the indemnified party against the
indemnifying party or others, and (ii) any liabilities to which the indemnifying party may be subject pursuant to the law.

 

     6

     

    

 

(e)       If
the indemnification provided for in this Section 5 of this Agreement is unavailable to or is insufficient to hold harmless
an indemnified party under the provisions above in respect to any losses, claims, damages or liabilities referred to therein, then
the indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities to the fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable
Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in
connection with such sale shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation,
and (ii) contribution by each Holder shall be limited in amount to the net amount of proceeds actually received by such Holder
from the sale of such Registrable Securities pursuant to the applicable Registration Statement, less the amount of any damages
that such Holder has otherwise been required to pay in connection with such sale.

 

6.       Reports
under the Exchange Act. With a view to making available to the each Holder the benefits of Rule 144 under the Securities Act
or any other similar rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the
public without registration (“Rule 144”), at all times during which there are Registrable Securities
outstanding that have not been previously (i) sold to or through a broker or dealer or underwriter in a public distribution or
(ii) sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section
4(1) thereof, in the case of either clause (i) or clause (ii) in such a manner that, upon the consummation of such sale, all transfer
restrictions and restrictive legends with respect to such shares are removed upon the consummation of such sale, the Company agrees
to use its commercially reasonable efforts to:

 

(a)       make
and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)       file
with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act, so long as the
Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable
provisions of Rule 144; and

 

(c)       furnish
to each Holder so long as such Holder owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting requirements of Rule 144 and the Exchange Act, (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information
as may be reasonably requested to permit each Holder to sell such securities pursuant to Rule 144 without registration.

 

Upon the request of any
Investor, if any Registrable Securities cease to be so because the conditions set forth in clause (C) of the definition of “Registrable
Securities” have been met, the Company will remove any restrictive legends on such securities and cause its transfer agent
to transfer such securities to the brokerage account designated by such Investor in accordance with such request.

 

7.       Preservation
of Rights. Without the prior written consent of a Majority-in-Interest, the Company shall not, on or after the date of this
Agreement, (i) grant any registration rights to third parties which are inconsistent with the rights granted hereunder, or (ii)
enter into any agreement, take any action, or permit any change to occur, with respect to its securities that is inconsistent with
or violates or subordinates the rights expressly granted to each Holder in this Agreement, such as (A) affecting the ability of
each Holder to include the Registrable Securities in a registration undertaken pursuant to this Agreement or (B) affecting the
marketability of such Registrable Securities in any such registration (including effecting a stock split or a combination of shares).

 

     7

     

    

 

8.       Definitions.

 

“Affiliate”
means (i) any Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common
control with such other Person, (ii) any executive officer or general partner of such other Person and (iii) any legal entity
for which such Person acts as executive officer or general partner, and “control” for these purposes
means the direct or indirect power to direct or cause the direction of the management and policies of another Person, whether by
operation of law or regulation, through ownership of securities, as trustee or executor or in any other manner.

 

“Business
Day” means any day on which the principal offices of the SEC in Washington, DC are open to accept filings.

 

“Commission
Guidance” means (i) any publicly available written guidance or rule of general applicability of the SEC staff or
(ii) written comments, requirements or requests of the SEC staff to the Company in connection with the review of a Registration
Statement.

 

“Common
Stock” means the common stock, par value $0.01 per share, of the Company, and includes all securities of the Company
issued or issuable with respect to such securities by way of a stock split, stock dividend, or in exchange for or upon conversion
of such shares or otherwise in connection with a combination of shares, distribution, recapitalization, merger, consolidation,
or other corporate reorganization.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated
thereunder.

 

“FINRA”
means the Financial Industry Regulatory Authority, and any agency or authority succeeding to the functions thereof.

 

“Holder”
means (i) each Stockholder in its capacity as a holder of record of Registrable Securities, (ii) any Affiliate of a Stockholder
that is a direct or indirect transferee of Registrable Securities from a Stockholder or any subsequent Holder and (iii) any direct
or indirect transferee of Registrable Securities from a Stockholder or any subsequent Holder.

 

“Majority-in-Interest”
means Holders of more than fifty percent (50%) of the Registrable Securities.

 

“Person”
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization or a governmental entity (or any department, agency or political subdivision thereof).

 

     8

     

    

 

“Registrable
Securities” means the Common Stock issued to the Stockholders pursuant to the Purchase Agreement, together with any
securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect
to the foregoing. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (A)
the Registration Statement covering such securities has been declared effective by the SEC and such securities have been disposed
of pursuant to such effective Registration Statement, (B) such securities are sold under circumstances in which all of the applicable
conditions of Rule 144 (or any similar provisions then in force) under the Securities Act are met, (C) such securities are eligible
for sale by the Holder without registration pursuant to Rule 144 (or any similar provisions then in force) under the Securities
Act without limitation thereunder on volume or manner of sale, (D) such securities are otherwise transferred and such securities
may be resold without limitation or subsequent registration under the Securities Act, (E) such securities shall have ceased to
be outstanding, or (F) the stock certificates or evidences of book-entry registration relating to such securities have had all
restrictive legends removed.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder.

 

“SEC”
means the United States Securities and Exchange Commission, and any governmental body or agency succeeding to the functions thereof.

 

9.       Miscellaneous.

 

(a)       Remedies.
Each Party shall be entitled to enforce its rights under any provision of this Agreement specifically to recover damages caused
by reason of any breach of any provision of this Agreement and to exercise all other rights granted by applicable law. The Parties
agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that
any Party may, in its sole discretion, apply to any court of law or equity of competent jurisdiction (without posting any bond
or other security) for specific performance and for other injunctive relief in order to enforce or prevent violation of the provisions
of this Agreement.

 

(b)       Termination.
All rights and obligations of the Company hereunder other than pursuant to Sections 3 and 5 hereof shall terminate
on the date on which no Registrable Securities are outstanding.

 

(c)       Amendments
and Waivers. Except as otherwise provided herein, the provisions of this Agreement may be amended, modified or waived only
upon the prior written consent of the Company, a Majority-in-Interest and any Holder that would be materially and disproportionately
affected by such an amendment or waiver. The failure of any party to enforce any of the provisions of this Agreement shall in no
way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every
provision of this Agreement in accordance with its terms.

 

(d)       Assignment;
No Third Party Beneficiaries. This Agreement and the rights, duties and obligations of the Company hereunder may not be assigned
or delegated by the Company in whole or in part. This Agreement and the rights, duties and obligations of the Holders hereunder
may be freely assigned or delegated by such Holder in conjunction with and to the extent of any transfer of Registrable Securities
by such Holder. This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the Parties
and their respective permitted successors and assigns; provided, however, that no such transfer or assignment shall be binding
upon or obligate the Company to any such assignee, and no such assignee shall be deemed a Holder hereunder, unless and until the
Company shall have received written notice of such transfer or assignment as herein provided and a written agreement of the assignee
to be bound by the provisions of this Agreement. This Agreement is not intended to confer any rights or benefits on any Persons
that are not party hereto other than as expressly set forth in Section 5 and this Section 9(d).

 

     9

     

    

 

(e)       Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

 

(f)       Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall
become effective when one or more counterparts have been signed by each Party to this Agreement and delivered to the other Party,
it being understood that all Parties need not sign the same counterpart. Signatures delivered by electronic methods shall have
the same effect as signatures delivered in person.

 

(g)       Descriptive
Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this
Agreement.

 

(h)       Governing
Law; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the internal laws of New York
applicable to parties residing in New York, without regard applicable principles of conflicts of law. Each Party irrevocably consents
to the exclusive jurisdiction of any court located within New York County, New York, in connection with any matter based upon or
arising out of this Agreement or the matters contemplated hereby and it agrees that process may be served upon it in any manner
authorized by the laws of the State of New York for such Persons and waives and covenants not to assert or plead any objection
which it might otherwise have to such jurisdiction and such process. EACH PARTY TO THIS AGREEMENT ACKNOWLEDGES AND AGREES THAT
ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE, IT HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND
ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (II) IT UNDERSTANDS AND HAS CONSIDERED
THE IMPLICATIONS OF SUCH WAIVERS, (III) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12(h).

 

     10

     

    

 

(i)       Notices.
All notices and other communications hereunder shall be in writing and shall be deemed duly delivered: (i) upon receipt if delivered
personally; (ii) three (3) Business Days after being mailed by registered or certified mail, postage prepaid, return receipt requested;
(iii) one (1) Business Day after it is sent by commercial overnight courier service; or (iv) upon transmission if sent via facsimile
or electronic mail with confirmation of receipt to the Parties to this Agreement at the addresses set forth in the Purchase Agreement
(or at such other address for a Party as shall be specified upon like notice).

 

(j)       Rules
of Construction. The Parties agree that they have each been represented by counsel during the negotiation, preparation and
execution of this Agreement (or, if executed following the date hereof by counterpart, have been provided with an opportunity to
review the Agreement with counsel) and, therefore, waive the application of any law, regulation, holding or rule of construction
providing that ambiguities in an agreement or other document will be construed against the Party drafting such agreement or document.

 

(k)       Interpretation.
This Agreement shall be construed in accordance with the following rules: (i) the terms defined in this Agreement include the plural
as well as the singular; (ii) all references in the Agreement to designated “Sections” and other subdivisions are to
the designated sections and other subdivisions of the body of this Agreement; (iii) pronouns of either gender or neuter shall include,
as appropriate, the other pronoun forms; (iv) the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision; and
(v) the words “includes” and “including” are not limiting.

 

[Remainder of page intentionally left
blank. Signature Pages Follow.]

 

     11

     

    

IN WITNESS WHEREOF,
the Parties have executed this Agreement on the date first above written.

 

	 	COMPANY:
	 	 	 
	 	BioScrip, Inc.
	 	 	 
	 	By:	/s/ Kathryn Stalmack
	 	Name:  	 Kathryn Stalmack
	 	Title:	SVP & General Counsel

 

    
Signature Page to Registration Rights Agreement

     

    

  

	 	STOCKHOLDERS:
	 	 	 
	 	VENOR CAPITAL MASTER FUND LTD.
	 	 	 
	 	By:	Venor Capital Management LP
	 	 	 
	 	Its:	Investment Manager
	 	 	 
	 	By:	/s/ Michael Wartell
	 	Name:	 Michael Wartell
	 	Title:	Co-CIO
	 	 	 
	 	 	 
	 	MAP 139 SEGREGATED PORTFOLIO OF LMA SPC
	 	 	 
	 	By:	Venor Capital Management LP
	 	 	 
	 	Its:	Investment Advisor
	 	 	 
	 	By:	/s/  Michael Wartell
	 	Name:  	 Michael Wartell
	 	Title:	Co-CIO
	 	 	 
	 	 	 
	 	VENOR SPECIAL SITUATIONS FUND II LP
	 	 
	 	By:	Venor Capital Management LP
	 	 	 
	 	Its:	Investment  Manager
	 	 	 
	 	By:	/s/  Michael Wartell
	 	Name:	 Michael Wartell
	 	Title:	Co-CIO
	 	 	 
	 	 	 
	 	TREVITHICK LP
	 	 
	 	By:	Venor Capital Management LP
	 	 	 
	 	Its:	Investment  Manager
	 	 	 
	 	By:	/s/  Michael Wartell
	 	Name:	 Michael Wartell
		Title: 
	Co-CIO

 

    
Signature Page to Registration Rights Agreement

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