Document:

Exhibit 10.1

 

SIERRA BANCORP

 

2017 STOCK INCENTIVE PLAN

 

Effective May 24, 2017

Adopted by the Board of Directors February 16, 2017

 

Section 1.Purpose

 

The purpose of the
Sierra Bancorp 2017 Stock Incentive Plan (the “Plan”) is to (i) encourage selected employees, directors and consultants
of Sierra Bancorp (the “Company”) and its subsidiaries to acquire a proprietary and vested interest in the growth and
performance of the Company; (ii) generate an increased incentive to contribute to the Company's future success and prosperity,
thus enhancing the value of the Company for the benefit of shareholders; and (iii) enhance the ability of the Company and its subsidiaries
to attract and retain individuals of exceptional talent upon whom, in large measure, the sustained progress, growth and profitability
of the Company depend.

 

Section 2.Definitions

 

For purposes of the
Plan, the following terms have the following meanings:

 

(a)“Award”
means any award under the Plan, including any Option or Restricted Stock Award.

 

(b)“Award
Agreement” means, with respect to each Award, the signed written agreement between the Company and the Participant setting
forth the terms and conditions of the Award.

 

(c)“Board”
means Board of Directors of the Company.

 

(d)“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute and shall be deemed to include
any regulations or other interpretive guidance under such section and any amendments or successor provisions to such section, regulations
or guidance.

 

(e)“Committee”
means the Compensation Committee of Sierra Bancorp and Bank of the Sierra; provided, however, that during any time that the Stock
is publicly traded, the Committee shall be a committee of the Board consisting solely of two or more directors as necessary in
each case to satisfy the requirements of Code Section 162(m) and Rule 16b-2 under the Exchange Act with respect to Awards granted
under the Plan.

 

(f)“Consultants”
means attorneys, accountants, other professionals, or any other persons who provide services to the Company or its subsidiaries.

 

(g)“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

 

     

     

    

 

(h)“Fair
Market Value” means, as of any date, the closing price of a share of Stock as reported on the principal securities exchange
or market on which the Stock is then listed or principally traded. If the relevant date does not fall on a day on which the Stock
has traded on such securities exchange or market, the date on which the Fair Market Value shall be established shall be the last
day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Committee,
in its discretion. In all events, the value of the Stock will be determined in accordance with Code Section 409A.

 

(i)“Grant
Date” means the date on which the granting of an Award is authorized, or such other date as may be specified in such authorization;
provided, for purposes of Code Sections 422 and 409A of the Code, as applicable, Grant Date shall mean the date of grant determined
in accordance with the requirements of Code Sections 422 and 409A, as applicable.

 

(j) “Holder”
means the holder of a Restricted Stock Award granted under Section 7.

 

(k)“Incentive
Option” means any Option intended to be and designated as an "incentive stock option" within the meaning of Section
422 of the Code.

 

(l)“Issue
Date” shall mean the date established by the Board or the Committee on which Certificates representing shares of Restricted
Stock shall be issued by the Company pursuant to the terms of Section 7(b).

 

(m)“Nonqualified
Stock Option” means any Option that is not an Incentive Option.

 

(n)“Option”
means an option granted under Section 6.

 

(o)“Optionee”
means the holder of an Option granted under Section 6.

 

(p)“Participant”
means an employee, director or Consultant who is selected by the Board or the Committee to receive an Award under the Plan, and
includes a Holder and/or an Optionee.

 

(q)“Performance
Compensation Award” shall mean any Award designated by the Committee as a Performance Compensation Award pursuant to Section
8 of the Plan, which, for the avoidance of doubt, could include, without limitation, performance units, performance-based shares
and other equity and non-equity performance-based awards.

 

(r)“Performance
Criteria” shall mean the criterion or criteria that the Committee shall select for purposes of establishing the Performance
Goal(s) for a Performance Period with respect to any Performance Compensation Award under the Plan.

 

(s)“Performance
Formula” shall mean, for a Performance Period, the one or more objective formulae applied against the relevant Performance
Goal to determine, with regard to the Performance Compensation Award of a particular Participant, whether all, some portion but
less than all, or none of the Performance Compensation Award has been earned for the Performance Period.

 

     2

     

    

 

(t)“Performance
Goals” shall mean, for a Performance Period, the one or more goals established by the Committee for the Performance Period
based upon the Performance Criteria.

 

(u)“Performance
Period” shall mean the one or more periods of time, as the Committee may select, over which the attainment of one or more
Performance Goals will be measured for the purpose of determining a Participant’s right to, and the payment of, a Performance
Compensation Award.

 

(v)“Permitted
Transferee” means any of the persons or entities to which certain awards may be transferred as provided in Section 10(g)
of the Plan.

 

(w)“Restricted
Stock” or “Restricted Stock Award” means an Award of Stock subject to restrictions, as more fully described in
Section 7.

 

(x)“Restriction
Period” means the period determined by the Board or the Committee under Section 7(b).

 

(y)“Rule
16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act, as amended from time to time, and any successor rule.

 

(z)“Stock”
means the common stock, no par value, of the Company, and any successor security.

 

(aa)“Terminating
Event” means: (i) the acquisition of more than fifty percent (50%) of the total fair market value or total voting power of
the Company’s stock or that of its wholly owned subsidiary, Bank of the Sierra (the “Bank”), by a person (including
an entity) or group; (ii) the acquisition in a period of twelve (12) months or less of at least thirty-five percent (35%) of the
Bank’s or the Company’s stock by a person or group; (iii) the replacement of a majority of the Bank’s or the
Company’s Board in a period of twelve (12) months or less by directors who were not endorsed by a majority of the current
Board members; or (iv) the acquisition in a period of twelve (12) months or less of forty percent (40%) or more of the Company’s
assets by an unrelated entity. In addition, notwithstanding anything herein to the contrary, in any circumstance in which the definition
of “Terminating Event” under this Plan would otherwise be operative and with respect to which the additional tax under
Section 409A of the Code would apply or be imposed, but where such tax would not apply or be imposed if the meaning of the term
"Terminating Event" met the requirements of Section 409A(a)(2)(A)(v) of the Code, then the term "Terminating Event"
herein shall mean, but only for the transaction, event or circumstance so affected and the item of income with respect to which
the additional tax under Section 409A of the Code would otherwise be imposed, a transaction, event or circumstance that is both
(x) described in the preceding provisions of this definition, and (y) a “change in control event” within the meaning
of Treasury Regulations Section 1.409A-3(i)(5).

 

(bb)“Termination”
means, for purposes of the Plan, with respect to a Participant, that (a) if the Participant is a director of the Company, he or
she has ceased to be, for any reason, a director and (b) if the Participant is an employee, he or she has ceased to be, for any
reason, employed by the Company or a subsidiary.

 

     3

     

    

 

(cc)“Termination
for Cause” in the case of an employee, shall mean termination for malfeasance or gross misfeasance in the performance of
duties, conviction of illegal activity in connection therewith, any conduct seriously detrimental to the interests of the Company
or a subsidiary corporation, or removal pursuant to the exercise of regulatory authority by the Board of Governors of the Federal
Reserve System (the “FRB”) or any applicable bank supervisory agency; and, in any event, the determination of the Board
with respect thereto shall be final and conclusive. In the case of a director, Termination for Cause shall mean removal pursuant
to Sections 302 or 304 of the California Corporations Code or removal pursuant to the exercise of regulatory authority by the FRB
or any applicable bank supervisory agency.

 

(dd)“Vesting
Date” means, for an Option or a portion of an Option, the first date on which the Option or such portion may be exercised
by the Optionee and, for shares of Restricted Stock, the date on which the shares cease to be forfeitable and become freely transferable
shares in the hands of the Holder.

 

Section 3.Administration

 

(a)General.
The Plan shall be administered by the Committee with respect to (i) approving Option grants and Restricted Stock Awards to the
Company’s “Named Executive Officers” as that term is defined in applicable SEC regulations; (ii) modifying or
canceling existing grants or awards to Named Executive Officers; or (iii) imposing limitations, restrictions and conditions upon
any such grant or award as the Committee deems necessary or advisable, unless the Board, in its discretion shall elect to grant
or modify any awards to Named Executive Officers which are not intended to be exempt compensation pursuant to Section 162(m) of
the Code. In connection with the administration of the Plan, the Committee, to the extent authorized, shall have the powers possessed
by the Board. The Board shall administer the Plan in all other respects, unless the Board in its discretion shall elect to delegate
such administration to the Committee with respect to such other aspects of the Plan. The members of the Committee shall at all
times (i) meet the independence requirements of the Nasdaq Stock Market, Inc.; (ii) qualify as “non-employee directors”
as defined in Section 16 of the Exchange Act; and (iii) qualify as “outside directors” under Section 162(m) of the
Code. Nothing contained herein shall prevent the Board from delegating to the Committee full power and authority over the administration
of the Plan.

 

Any action of the Board
or the Committee with respect to administration of the Plan shall be taken pursuant to a majority vote of its members; provided,
however, that with respect to action by the Board in granting an option or other award to an individual director, such action must
be authorized by the required number of directors without counting the interested director, who shall abstain as to any vote on
his or her option or award. An interested director may be counted in determining the presence of a quorum at a meeting of the Board
where such action will be taken.

 

(b)Authority.
The Board or the Committee as appropriate pursuant to Section 3(a) shall grant Awards to directors and eligible employees. In particular
and without limitation, the Board or the Committee, subject to the terms of the Plan, shall:

 

(i)select the eligible
Participants to whom Awards may be granted;

 

     4

     

    

 

(ii)determine whether
and to what extent Awards are to be granted under the Plan;

 

(iii)determine the
number of shares to be covered by each Award granted under the Plan; and

 

(iv)determine the
terms and conditions of any Award granted under the Plan based upon factors determined by the Board or the Committee.

 

(c)Board and
Committee Determinations Binding. Subject to the express provisions of the Plan, the Board or the Committee shall have the
authority to construe and interpret the Plan, any Award and any Award Agreement; to define the terms used therein; to prescribe,
amend, and rescind rules and regulations relating to administration of the Plan, to determine the duration and purposes of leaves
of absence which may be granted to Participants without constituting a termination of their employment for purposes of the Plan;
and to make all other determinations necessary or advisable for administration of the Plan, including, without limitation, compliance
with Rule 16b-3. Any determination made by the Board or the Committee pursuant to the provisions of the Plan with respect to any
Award shall be made in its sole discretion at the Grant Date or, unless in contravention of any express term of the Plan or Award,
at any later time. Determinations of the Board or the Committee on matters referred to in this section shall be final and conclusive,
and shall be binding on all persons, including the Company and Participants.

 

Section 4.Stock Subject to Plan

 

(a)Shares Available
for Awards. The total number of shares of the Company’s authorized but unissued Stock reserved and available for issuance
pursuant to Awards under this Plan shall be 850,000 shares, subject to adjustment as provided in Section 4(b). If any Option terminates
or expires without being exercised in full or if any shares of Stock subject to a Restricted Stock Award are forfeited or settled
in cash, the shares issuable under such Option or Award shall again be available for issuance in connection with Awards to be granted
under the Plan. If any shares subject to an Award are not delivered to a Participant because such shares are withheld for the payment
of taxes or the Award is exercised through a reduction of shares subject to the Award through the “net exercise” feature
described herein, the number of shares that are not delivered to the Participant will remain available for issuance under the Plan.

 

(b)Adjustments.
In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split or other change in capital
structure affecting the Stock without receipt of consideration by the Company, such substitution or adjustments shall be made in
the aggregate number of shares of Stock reserved for issuance under the Plan, in the number and exercise price of shares subject
to outstanding Options, and in the number of shares subject to other outstanding Awards, as may be determined to be appropriate
by the Board or the Committee, in its sole discretion; provided, however, that no fractional shares of Stock shall be issued under
the Plan on account of any such adjustment. In the case of adjustments made pursuant to this Section 4(b), the Committee shall,
in the case of Incentive Stock Options, ensure that any adjustments under this Section 4(b) will not constitute a modification,
extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of the Code and in the case of Nonqualified
Stock Options, ensure that any adjustments under this Section 4(b) will not constitute a modification of such Nonqualified Stock
Options within the meaning of Section 409A of the Code. Any adjustments made under this Section 4(b) shall be made in a manner
which does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act. Further, with respect to
Awards intended to qualify as "performance-based compensation" under Section 162(m) of the Code, any adjustments or substitutions
will not cause the Company to be denied a tax deduction on account of Section 162(m) of the Code. The Company shall give each Participant
notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

 

     5

     

    

 

(c)Individual
Limitation. The Company may not grant Awards under the Plan for more than 100,000 shares to any one Participant in any one
fiscal year, subject to adjustment from time to time as provided in Section 4(b) above. Subject to Section 4(b) above, (i) no more
than 100,000 shares of Stock may be earned in respect of Performance Compensation Awards to any one Participant in any one fiscal
year during a Performance Period, or in the event such Performance Compensation Award is paid in cash, other securities, other
Awards or property, no more than the Fair Market Value of 100,000 shares of Stock on the last day of the Performance Period to
which such Award relates; and (ii) the maximum amount that can be paid to any single Participant in any one calendar year pursuant
to a cash bonus award described in Section 8(a) of the Plan shall be $2,000,000. Determinations under the preceding sentence shall
be made in a manner that is consistent with Section 162(m) of the Code and regulations promulgated thereunder. The provisions of
this Section 4(c) shall not apply in any circumstance with respect to which the Board or the Committee determines that compliance
with Section 162(m) of the Code is not necessary.

 

Section 5.Eligibility

 

Awards may be granted
to all employees, officers (whether or not they are also directors), non-employee directors, and Consultants of the Company and
its subsidiaries. However, Consultants and directors who are not also officers or employees of the Company or a subsidiary corporation
are not eligible to receive Incentive Options under the Plan, but only other types of Awards.

 

Section 6.Stock Options

 

(a)Types.
Any Option granted under the Plan shall be in such form as the Board or the Committee may from time to time approve. The Board
or the Committee shall have the authority to grant to any eligible Participant Incentive Options, Nonqualified Stock Options or
both types of Options. All Options granted under the Plan shall be Nonqualified Stock Options unless the applicable Award agreement
expressly states that the Option is intended to be an Incentive Stock Option.

 

(b)Incentive
Options. Incentive Options may be granted only to employees of the Company or a subsidiary. Any portion of an Option that is
not designated as, or does not qualify as, an Incentive Option shall constitute a Nonqualified Stock Option.

 

(c)Terms and
Conditions. Options granted under the Plan shall be governed by the terms of the Plan and any applicable Award Agreement and
shall be subject to the following terms and conditions:

 

     6

     

    

 

(i)Option Term.
Each Option and all rights or obligations thereunder shall expire on such date as the Board or the Committee may determine, but
not later than ten (10) years from the Grant Date of such Option, and shall be subject to earlier termination as provided elsewhere
in the Plan. As to any Incentive Option granted to an Optionee who, immediately before the option Grant Date, owns beneficially
more than ten percent (10%) of the outstanding stock of the Company (whether acquired upon exercise of Options or otherwise), such
option must not be exercisable by its terms after five (5) years from the Grant Date.

 

(ii)Grant Date.
The Grant Date of an Option shall be the day of the action of the Board or the Committee described in Section 3(a) hereof; provided
that the Optionee does not have the ability to further negotiate the terms of his or her grant, and provided further that the material
terms of the grant are communicated to the Optionee within a relatively short period of time following the Board’s action.
If appropriate resolutions of the Board or the Committee indicate that an Option is to be granted as of and on some future date,
the time such Option is granted shall be such future date. If action by the Board or the Committee is taken by the unanimous written
consent of its members, the action of the Board or the Committee shall be deemed to be at the time the last Board member signs
the consent, subject to the same requirements concerning communication with Optionees set forth in the first sentence of this Section
6(a)(ii).

 

(iii)Exercise
Price. The exercise price per share of stock subject to each Option shall be determined by the Board or the Committee but shall
not be less than one hundred percent (100%) of the Fair Market Value of such stock at the time such Option is granted. As to any
Incentive Option granted to an Optionee who, immediately before the Option is granted, owns shares representing more than ten percent
(10%) of the voting power of all classes of stock of the Company, the purchase price must be at least one hundred ten percent (110%)
of the Fair Market Value per share of the Stock on the Grant Date.

 

(iv)Exercisability.
Each Option shall be exercisable in such installments, which need not be equal, and upon such conditions as the Board or the Committee
shall determine; provided, however, that in no event shall any installment of any Option become exercisable less than one (1) year
from the Grant Date. If an Optionee shall not in any given installment period purchase all of the shares which such Optionee is
entitled to purchase in such installment period, such Optionee’s right to purchase any shares not purchased in such installment
period shall continue until the expiration of such Option. The Board or the Committee also may provide that the vesting dates for
an Option will be accelerated upon the subsequent occurrence of such event (e.g., early retirement of the Optionee) as the Board
or the Committee may specify. No Option or installment thereof shall be exercisable except with respect to whole shares, and fractional
share interests shall be disregarded except that they may be accumulated and shall continue until the expiration of the Option.

 

(v)Limit on Exercisability.
The aggregate Fair Market Value (determined as of Option Grant Date) of the Stock for which any officer or employee may be granted
Incentive Options which are first exercisable during any one calendar year (under all Incentive Stock Option Plans of the Company
and its subsidiaries) shall not exceed One Hundred Thousand Dollars ($100,000), and any such excess shall constitute a Nonqualified
Stock Option.

 

     7

     

    

 

(vi)Method of
Exercise; Payment. Options may be exercised by ten (10) days written notice delivered to the Company, stating the number of
shares with respect to which the Option is being exercised and providing any other information requested by the Company which might
be necessary in order to process and record the option exercise, together with cash or check in the amount of the purchase price
for such shares. Regardless of the method of exercise, the date that full payment of the purchase price is received by the Company,
whether in cash or in the form of shares accepted via a “net exercise,” will be deemed to be the exercise date, which
must occur on or prior to the expiration date of the Option. No fewer than ten (10) shares may be purchased at one time unless
the number purchased is the total number which may be purchased under the Option.

 

If the Board had so authorized
upon the grant of an Incentive Option or on or after grant of a Nonqualified Option (and subject to such conditions, if any, as
the Board may deem necessary to avoid adverse accounting or tax effects on the Company), Options may also be exercised by:

 

		·	a “net exercise” of the Option (as further described below);

 

		·	delivery to the Company of a cash payment made pursuant to a “cashless” exercise program
(as further described below); or

 

		·	any other form of legal consideration that may be acceptable to the Board.

 

In the case of a “net
exercise” of an Option, the Company will not require a cash payment of the full exercise price of the Option from the Optionee
but will reduce the number of shares of Stock issued upon the exercise by the largest number of whole shares that have a Fair Market
Value that does not exceed the aggregate exercise price. The number of whole shares referenced in the previous sentence will be
determined by dividing the aggregate exercise price by the closing price per share of the Company’s stock on the day of the
transaction. With respect to any remaining balance of the aggregate exercise price, the Company will notify the Optionee of the
balance prior to the close of business on the date of exercise and will accept a cash payment from the Optionee for that amount.

 

In the case of a “cashless
exercise,” the Optionee must deliver to the Company (i) an exercise notice instructing the Company to deliver the certificates
for the shares purchased to a designated brokerage firm which shall sell the stock in the market as soon as the Option is exercised;
and (ii) a copy of irrevocable instructions delivered to the brokerage firm to sell the shares acquired upon exercise of the Option
and to deliver to the Company from the sale proceeds sufficient cash to pay the exercise price and applicable withholding taxes
arising as a result of the exercise, with the balance of the sales proceeds, if any, after payment of any broker's commission,
to be credited to the Optionee’s brokerage account. In the case of a “cashless exercise,” the Company will use
its reasonable best efforts to cause the Company’s transfer agent to issue the shares within ten (10) days of receipt of
the check from the broker representing payment for the shares.

 

The Company may require
any Optionee, or any person to whom an Option is transferred under Section 6(c)(ix) hereof, as a condition of exercising any such
Option, to give written assurances satisfactory to the Company stating that such person is acquiring the stock subject to the Option
for such person's own account and not with any present intention of selling or otherwise distributing the stock. The requirement
of providing written assurances, and any assurances given pursuant to the requirement, shall be inoperative if (i) the shares to
be issued upon the exercise of the Option have been registered under a then currently effective registration statement under the
Securities Act of 1933, as amended, or (ii) a determination is made by counsel for the Company that such written assurances are
not required in the circumstances under the then applicable state or federal securities laws.

 

     8

     

    

 

The number of shares
of Stock underlying an Option will decrease following the exercise of such Option to the extent of (i) shares used to pay the exercise
price of an Option under the “net exercise” feature, (ii) shares actually delivered to the Optionee or the Optionee’s
brokerage firm as a result of such exercise and (iii) shares withheld for purposes of tax withholding.

 

(vii)Notification
upon Disqualifying Disposition of an Incentive Stock Option. Each Optionee under the Plan shall notify the Company in writing
immediately after the date the Optionee makes a disqualifying disposition of any shares of Stock acquired pursuant to the exercise
of such Incentive Stock Option. A disqualifying disposition is any disposition (including, without limitation, any sale) of such
shares of Stock before the later of (i) two years after the Grant Date of the Incentive Stock Option or (ii) one year after the
date of exercise of the Incentive Stock Option. The Company may, if determined by the Committee and in accordance with procedures
established by the Committee, retain possession of any shares of Stock acquired pursuant to the exercise of an Incentive Stock
Option as agent for the applicable Optionee until the end of the period prescribed in the preceding sentence.

 

(viii)Compliance
With Laws, etc. Notwithstanding the foregoing, in no event shall an Optionee be permitted to exercise an Option in a manner
that the Committee determines would violate the Sarbanes-Oxley Act of 2002, if applicable, or any other applicable law or the applicable
rules and regulations of the Securities and Exchange Commission or the applicable rules and regulations of any securities exchange
on which the securities of the Company are listed, traded or reported.

 

(ix)Cessation
of Employment; Disability. Except as provided in Subsection 6(c)(i) above, if an Optionee ceases to be employed by or to serve
as a director of the Company or a subsidiary corporation for any reason other than death, disability or Cause, such Optionee’s
Option shall expire on the earlier of (a) ninety (90) days thereafter in the case of Incentive Options, and one (1) year thereafter
in the case of Nonqualified Stock Options or (b) the expiration of the term of the Option as set forth in the Award Agreement;
and during such period after such Optionee ceases to be an employee or director, such Option shall be exercisable only as to those
shares which were vested and exercisable as of the date on which the Optionee ceased to be employed by or ceased to serve as a
director of the Company or such subsidiary corporation. Except as provided in Subsections 6(c)(i) above, if an Optionee ceases
to be employed by or ceases to serve as a director of the Company or a subsidiary corporation by reason of disability (within the
meaning of Section 22(e)(3) of the Code), such Optionee’s Option shall expire on the earlier of (a) not later than one (1)
year thereafter or (b) the expiration of the term of the Option as set forth in the Award Agreement; and during such period after
such Optionee ceases to be an employee or a director such Option shall be exercisable only as to those shares which were vested
and exercisable as of the date on which the Optionee ceased to be employed by or ceased to serve as a director of the Company or
such subsidiary corporation. If, after termination, the Optionee does not exercise his or her Option within the time specified
herein or in the Award Agreement, the Option shall terminate. Notwithstanding anything in the Plan to the contrary, the Company
shall be under no obligation to notify any Optionee of the pending expiration of his or her option and shall have no liability
in the event of an expired Option.

 

     9

     

    

 

(x)Termination
of Employment for Cause. If an Optionee’s employment by or service as a director of the Company or a subsidiary corporation
is terminated for Cause, such Optionee’s vested and unvested Option shall expire immediately and cease to be exercisable.

 

(xi)Death of Optionee.
Except as provided in Subsection 6(c)(i) above, if any Optionee dies while employed by or serving as a director of the Company
or a subsidiary corporation or during the 90-day or one-year periods referred to in Subsection 6(c)(vii) above, such Optionee’s
Option shall expire on the earlier of (a) one (1) year after the date of such death or (b) the expiration of the term of such Option
as set forth in the Award Agreement. After such death but before such expiration, the persons to whom the Optionee’s rights
under the Option shall have passed by will or by the applicable laws of descent and distribution shall have the right to exercise
such Option to the extent that it was vested and exercisable as of the date of the Optionee’s death. If the Option is not
exercised within the time specified herein or the Award Agreement, the Option shall terminate.

 

Section 7.Restricted Stock Awards

 

(a)General.
Restricted Stock Awards may be issued hereunder to Participants, for no cash consideration or for such amount as the Board or the
Committee in its discretion shall determine, either alone or in addition to other Awards granted under the Plan and the terms of
any such Awards shall be governed by the terms of the Plan and the applicable Award Agreement. The provisions of Restricted Stock
Awards need not be the same with respect to each recipient. The Committee may provide upon grant of a Restricted Stock Award that
any shares of Restricted Stock that may be purchased by the Holder in cash and are subsequently forfeited by the Holder prior to
the Vesting Date therefor shall be reacquired by the Company at the purchase price originally paid therefor by the Holder, if applicable.

 

(b)Issue Date
and Vesting Date. At the Restricted Stock Award Grant Date, the Board or the Committee shall establish an Issue Date or Issue
Dates and a Vesting Date or Vesting Dates with respect to such shares. The Board or the Committee may provide upon grant of a Restricted
Stock Award that different numbers or portions of the shares subject to the Award shall have different Vesting Dates; provided,
however, that in no event shall any installment of any Restricted Stock Award become vested less than one (1) year from the Grant
Date. The Board or the Committee may also provide that the Vesting Dates will be accelerated upon the subsequent occurrence of
such event (e.g., early retirement of the Holder) as the Board or the Committee may specify. The Board or the Committee also may
establish upon grant of a Restricted Stock Award that some or all of the shares subject thereto shall be subject after the Vesting
Date to additional restrictions upon transfer or sale, although not to forfeiture.

 

(c)Issuance
of Shares. Reasonably promptly after the Issue Date with respect to shares of Restricted Stock, the Company shall cause to
be issued a stock certificate or a statement for book entry shares, registered in the name of the Holder to whom such shares were
granted; provided, that the Company shall not cause such a stock certificate or book entry statement to be issued unless it has
received a stock power duly endorsed in blank with respect to such shares. The Company shall instruct its transfer agent to ensure
that such shares are restricted from transfer (whether by legend in the case of a stock certificate or by other means in the case
of book entry shares) in substantially the following manner:

 

     10

     

    

 

“The transferability
of the shares of stock represented by this certificate or in this letter of instruction is subject to the restrictions, terms and
conditions (including forfeiture provisions and restrictions against transfer) contained in the Sierra Bancorp 2017 Stock Incentive
Plan and related Award Agreement, and such rules, regulations and interpretations as Sierra Bancorp’s Board of Directors
or Compensation Committee may adopt. Copies of the Plan, Award Agreement and rules, regulations and interpretations, if any, are
on file at the principal executive office of Sierra Bancorp, 86 North Main Street, Porterville, California 93257.”

 

Such legend shall not
be removed until such shares vest pursuant to the terms hereof.

 

Each certificate issued
pursuant to this Section 7(c), together with the stock powers relating to the shares of Restricted Stock evidenced by such certificate,
shall be held by the Company unless the Board or the Committee determines otherwise.

 

(d)Consequences
of Vesting. Upon the vesting of a share of Restricted Stock pursuant to the terms of the Plan and the applicable Award Agreement,
the restrictions on transfer described in Section 7(c) shall cease to apply to such share. In the case of certificated shares,
reasonably promptly after a Restricted Stock Award becomes fully vested, the Company shall cause to be delivered to the Holder
to whom such shares were granted, a certificate evidencing such share, free of the legend set forth in Section 7(c). If a Restricted
Stock Award is partially vested, the Company may continue to hold the originally issued certificate until fully vested unless the
Holder specifically requests the issuance of a certificate for just the vested shares. Reasonably promptly after any such request,
the Company shall cause the certificates to be issued separately for the restricted and unrestricted shares, and shall deliver
the unrestricted certificate to the Holder. In the case of book entry shares, reasonably promptly after a share of Restricted Stock
vests, the Company shall inform the Company’s transfer agent that the restrictions on such shares have been removed, and
shall also notify the Holder that this has been done. Notwithstanding the foregoing, such shares still may be subject to restrictions
on transfer as a result of applicable securities laws.

 

(e)Dividends.
If and to the extent the Board or the Committee so specifies upon grant, the Holder of shares of Restricted Stock shall be entitled
to accrue, after the Grant Date and until the Vesting Date, any cash dividends or other distributions with respect to the shares
identical or comparable in financial value to the dividends and other distributions that would have been received by the Holder
had the shares not been subject to the restrictions on Restricted Stock imposed under the Plan. No such dividends or distributions
shall be paid until the Vesting Date, and the Holder shall not be entitled to any such distributions to the Company in the event
of forfeiture of the Restricted Stock. Any dividends or distributions payable to the Holder that constitute Stock or other equity
securities of the Company shall be issued in the same manner and subject to the same restrictions and conditions as apply to the
shares of Restricted Stock as to which such dividends and distributions are paid.

 

     11

     

    

 

(f)Voting Rights.
If and to the extent the Board or the Committee so specifies upon grant, the Holder of shares of Restricted Stock shall be entitled
to vote or direct the voting of such shares after the Grant Date and until the Vesting Date.

 

(g)Notification
of Election Under Section 83(b) of the Code. If any Holder shall, in connection with the acquisition of shares of Restricted
Stock under the Plan, make the election permitted under Section 83(b) of the Code (i.e., an election to include in gross income
in the year of transfer the amounts specified in Section 83(b)), such Holder shall notify the Company of such election within ten
days of filing notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant
to regulations issued under the authority of Section 83(b).

 

(h)Termination.
Except to the extent otherwise provided in the Award Agreement and pursuant to this section, in the event of a Termination of employment
or directorship during the Restriction Period, all shares still subject to restriction shall be forfeited by the Holder. If the
recipient has paid cash for the Award, the stock will be repurchased at the same price originally paid by the Holder. In the event
that the Company requires such a return of shares, it also shall have the right to require the return of all dividends paid on
such shares, whether by termination of any escrow arrangement under which such dividends are held or otherwise, unless otherwise
specified in the applicable Award Agreement.

 

Section 8.Performance Compensation
Awards. 

 

(a)Generally.
The Committee shall have the authority, at the time of grant of any Award, to designate such Award as a Performance Compensation
Award intended to qualify as “performance-based compensation” under Section 162(m) of the Code. The Committee
shall also have the authority to make an award of a cash bonus to any Participant and designate such cash bonus as a Performance
Compensation Award intended to qualify as “performance-based compensation” under Section 162(m) of the Code.

 

(b)Discretion
of Committee with Respect to Performance Compensation Awards. With regard to a particular Performance Period, the Committee
shall have sole discretion to select the length of such Performance Period, the type(s) of Performance Compensation Awards to be
issued, the Performance Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s) of the Performance
Goals(s) that is (are) to apply and the Performance Formula. Within the first 90 days of a Performance Period (or, if longer or
shorter, within the maximum period allowed under Section 162(m) of the Code, if applicable), the Committee shall, with regard
to the Performance Compensation Awards to be issued for such Performance Period, exercise its discretion with respect to each of
the matters enumerated in the immediately preceding sentence and record the same in writing.

 

(c)Performance
Criteria. The Performance Criteria that will be used to establish the Performance Goal(s) shall be based on the attainment
of specific levels of performance of the Company (and/or one or more subsidiaries, divisions, reportable segments or operational
units, or any combination of the foregoing) and shall include one or more of the following: (i) net earnings or net income (before
or after taxes); (ii) basic or diluted earnings per share (before or after taxes); (iii) net revenue or revenue growth; (iv) gross
profit or gross profit growth; (v) return measures (including, but not limited to, return on assets or equity); (vi) net interest
margin; (vii) overhead efficiency or operating expense ratios; (viii) share price (including, but not limited to, growth measures
and total shareholder return (absolute or relative)); (ix) performance relative to budget; or (x) objective measures of personal
targets, goals or completion of projects. Any one or more of the Performance Criteria may be used on an absolute or relative basis
to measure the performance of a Participant and the Company (and/or one or more subsidiaries, divisions, reportable segments or
operational units, and any combination of the foregoing), as the Committee may deem appropriate, or any of the above Performance
Criteria may be compared to the performance of a selected group of comparison companies or a published or special index that the
Committee, in its sole discretion, deems appropriate, or as compared to various stock market indices. To the extent required under
Section 162(m) of the Code, the Committee shall, within the first ninety (90) days of a Performance Period (or, if shorter,
within the maximum period allowed under Section 162(m) of the Code), define in an objective fashion the manner of calculating
the Performance Criteria it selects to use for such Performance Period for any Participant and thereafter promptly communicate
such Performance Criteria to such Participant.

 

     12

     

    

 

(d)Modification
of Performance Criteria/Goal(s). In the event that applicable tax and/or securities laws change to permit Committee discretion
to alter the governing Performance Criteria without obtaining shareholder approval of such alterations, the Committee shall have
sole discretion to make such alterations without obtaining shareholder approval. The Committee may adjust or modify the calculation
of a Performance Goal for a Performance Period, based on and in order to appropriately reflect the following events: (i) asset
write-downs; (ii) litigation or claim judgments or settlements; (iii) the effect of changes in tax laws, accounting principles,
or other laws or regulatory rules affecting reported results; (iv) any reorganization and restructuring programs; (v) items
as described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” appearing
in the Company’s Annual Report in the Company’s Form 10-K for the applicable year; (vi) acquisitions or divestitures;
(vii) any other specific unusual or nonrecurring events, or objectively determinable category thereof; and (viii) a change
in the Company’s fiscal year.

 

(e)Payment of
Performance Compensation Awards.

 

(i)Condition
to Receipt of Payment. Unless otherwise provided in the applicable Award Agreement or as otherwise determined by the Committee,
a Participant must be employed by the Company or a subsidiary of the Company on the date of payment with respect to a Performance
Period to be eligible to receive such payment in respect of a Performance Compensation Award for the preceding Performance Period.

 

(ii)Limitation.
A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only to the extent that: (A) the
Performance Goals for such period are achieved; and (B) all or some of the portion of such Participant’s Performance
Compensation Award has been earned for the Performance Period based on the application of the Performance Formula to such achieved
Performance Goals.

 

(iii)Certification.
Following the completion of a Performance Period, the Committee shall review and certify in writing whether, and to what extent,
the Performance Goals for the Performance Period have been achieved and calculate and certify in writing that amount of the Performance
Compensation Awards earned for the period based upon the Performance Formula. The Committee shall then determine the amount of
each Participant’s Performance Compensation Award actually payable for the Performance Period and, in so doing, may apply
Negative Discretion.

 

     13

     

    

 

(iv)Use of Negative
Discretion. In determining the actual amount of an individual Participant’s Performance Compensation Award for a Performance
Period, the Committee may reduce or eliminate the amount of the Performance Compensation Award earned under the Performance Formula
in the Performance Period through the use of Negative Discretion if, in its sole judgment, such reduction or elimination is appropriate.

 

(f)Timing of Award
Payments. Performance Compensation Awards granted for a Performance Period shall be paid to Participants as soon as administratively
practicable following completion of the certifications required by this Section 8, but in no event later than two-and-one-half
months following the end of the fiscal year during which the Performance Period is completed; provided, however, that such Performance
Compensation Awards may be deferred and paid after such date so long deferrals are made in accordance with Section 409A of the
Code and applicable guidance thereunder.

 

Section 9.Terminating Events

 

(a)Impact of
Event. In the event of a “Terminating Event” as defined in Section 2(r), any surviving corporation or entity or
acquiring corporation or entity, or affiliate of such corporation or entity, may assume any Options or Restricted Stock Awards
outstanding under the Plan or may substitute similar awards for those outstanding under the Plan. In the event any surviving corporation
or entity or acquiring corporation or entity in a Terminating Event does not assume such Options or other Awards or does not substitute
similar Options or other Awards for those outstanding under the Plan, then (i) the vesting of such Options or other Awards outstanding
under the Plan shall be accelerated and made fully exercisable and all restrictions thereon shall lapse at such date as may be
established by the Board or the Committee in connection with the Terminating Event; and (ii) upon the closing of the Terminating
Event, any Options outstanding under the Plan shall be terminated if not exercised prior to the closing, unless the Board in its
sole discretion determines prior to the effective date of the Terminating Event that all outstanding Options and the Plan itself
should continue in full force and effect. In the case of such a determination by the Board, or in the event that any pending Terminating
Event does not occur, the Plan and all outstanding Options and other Awards thereunder shall continue in force with all original
vesting schedules in effect. With respect to Performance Compensation Awards, in the event of a Termination Event, all incomplete
Performance Periods in respect of such Award in effect on the date the Change in Control occurs shall end on the date of such change
and the Committee shall (i) determine the extent to which Performance Goals with respect to each such Performance Period have been
met based upon such audited or unaudited financial information then available as it deems relevant and (ii) cause to be paid to
the applicable Participant partial or full Awards with respect to Performance Goals for each such Performance Period based upon
the Committee's determination of the degree of attainment of Performance Goals or, if not determinable, assuming that the applicable
"target" levels of performance have been attained.

 

     14

     

    

 

(b)Notice to
Participants of Terminating Event. In connection with any Terminating Event, the Board or the Committee shall notify each Participant
of the pendency of the Terminating Event in such manner and at such time as the Board, in its sole discretion, shall deem appropriate
in connection with such Terminating Event. With respect to Holders of Restricted Stock, the notice shall simply inform such Participants
of the pendency of the Terminating Event and of the fact that the restrictions on their Restricted Stock will lapse. In the case
of Optionees, the notice shall inform such Optionees that their Options shall, notwithstanding the provisions of Sections 5(c)(iv)
hereof, become exercisable in full and not only as to those shares with respect to which installments, if any, have then accrued,
subject, however, to earlier expiration or termination as provided elsewhere in the Plan, and further subject to the condition
that the Terminating Event in fact occurs. Optionees shall then be entitled to exercise any Options or portions thereof at such
times as may be specified by the Board or the Committee in connection with the Terminating Event.

 

Section 10.Acceleration of Options
or other Awards.

 

Notwithstanding the
provisions of Sections 6(c)(iv) or 7(b) hereof or any provision to the contrary contained in any Award Agreement, the Board or
the Committee, in its sole discretion, may accelerate the vesting of all or any Award then outstanding. The decision by the Board
or the Committee to accelerate an Award or to decline to accelerate an Award shall be final. In the event of the acceleration of
Options as the result of a decision by the Board or the Committee pursuant to this Section 9, each outstanding Option so accelerated
shall be exercisable for a period from and after the date of such acceleration and upon such other terms and conditions as the
Board or the Committee may determine in its sole discretion, provided that such terms and conditions (other than terms and conditions
relating solely to the acceleration of exercisability and the related termination of an Option) may not adversely affect the rights
of any Optionee without the consent of the Optionee so adversely affected. Any outstanding Option which has not been exercised
by the holder at the end of such period shall terminate automatically at that time. In addition, in connection with the grant of
any Award hereunder, the Board or the Committee may specify that the holder of such Award may be entitled to acceleration of the
Award under specified circumstances (such as early retirement), and the right to such acceleration shall be specified in the appropriate
Award Agreement.

 

Section 11.General Provisions

 

(a)Award Grants.
Any Award may be granted either alone or in addition to other Awards granted under the Plan. Subject to the terms and restrictions
set forth elsewhere in the Plan, the Board or the Committee shall determine the consideration, if any, payable by the Participant
for any Award and, in addition to those set forth in the Plan, any other terms and conditions of the Awards. The Board or the Committee
may condition the grant or payment of any Award upon the attainment of specified performance goals or such other factors or criteria,
including vesting based on continued service on the Board or employment, as the Board or the Committee shall determine. Performance
objectives may vary from Participant to Participant and among groups of Participants. The other provisions of Awards also need
not be the same with respect to each recipient. Unless specified otherwise in the Plan or by the Board or the Committee, the Grant
Date of an Award shall be the date of action by the Board or the Committee to grant the Award, provided that Participants do not
have the ability to further negotiate the terms of their awards, and provided further that the awards will be communicated to Participants
within a relatively short period of time following the Board’s or the Committee’s action.

 

     15

     

    

 

(b)Award Agreement.
As soon as practicable after the date of an Award grant, the Company and the Participant shall enter into a written Award Agreement
identifying the Grant Date, and specifying the terms and conditions of the Award. Options are not exercisable until after execution
of the Award Agreement by the Company and the Participant, but a delay in execution of the Award Agreement shall not affect the
validity of the Option grant.

 

(c)Transfer
Restrictions. All shares of Stock or other securities delivered under the Plan shall be subject to such stock transfer orders,
legends and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the SEC,
any market in which the Stock is then traded and any applicable federal, state or foreign securities laws.

 

(d)Tax Withholding.
Whenever shares of Stock are issued or to be issued pursuant to Awards, the Company shall have the right to require the Participant
to remit to the Company an amount sufficient to satisfy federal, state, local or other withholding tax requirements if, when, and
to the extent required by law (whether so required to secure for the Company an otherwise available tax deduction or otherwise)
prior to the delivery of any shares. The obligations of the Company under the Plan shall be conditional on satisfaction of all
such withholding obligations and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from
any payment of any kind otherwise due to the Participant. With the approval of the Board or the Committee, which it shall have
sole discretion to grant, the Participant may elect to satisfy an applicable withholding requirement, in whole or in part, by having
the Company withhold from delivery shares of Stock having a value equal to the amount of tax to be withheld. Such shares shall
be valued at their Fair Market Value on the date as of which the amount of tax to be withheld is determined. Notwithstanding anything
herein to the contrary, the amount withheld shall not exceed the maximum statutory tax rates in the Participant’s applicable
jurisdictions. The maximum statutory tax rates are based on the applicable rates of the relevant tax authorities (for example,
federal, state, and local), including the Participant’s share of payroll or similar taxes, as provided in tax law, regulations
or the authority’s administrative practices, not to exceed the highest statutory rate in that jurisdiction (even if that
rate exceeds the highest rate that may be applicable to the Participant) and that does not result in adverse accounting consequences.
Fractional share amounts shall be settled in cash.

 

(e)Transferability.
No Incentive Option shall be assignable or otherwise transferable by the Participant other than by will or by the laws of descent
and distribution. During the life of a Participant, an Award shall be exercisable, and any elections with respect to an Award may
be made, only by the Participant or the Participant's guardian or legal representative.

 

(f)Transferability
of Awards Other than Incentive Options. Except as otherwise provided in this Section 11(f), Awards shall not be transferable,
and no Award or interest therein may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than
by will or by the laws of descent and distribution. All of a Participant’s rights in any Award may be exercised during the
life of the Participant only by the Participant or the Participant’s legal representative. However, the Board may, at or
after the grant of a Nonqualified Option or a Restricted Stock Award, provide that such Award may be transferred by the Participant
through a gift or domestic relations order in settlement of marital property rights to any of the following donees or transferees
and may be reacquired by the Participant from any of such donors or transferees (each a “Permitted Transferee”):

 

     16

     

    

 

		·	any “family member,” which includes any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
or sister-in-law, including adoptive relationships and any individual sharing the Participant’s household (other than a tenant
or employee);

 

		·	a trust in which family members have more than 50% of the beneficial interest;

 

		·	a foundation in which family members (or the Participant) control the management of assets; or

 

		·	any other entity in which family members (or the Participant) own more than 50% of the voting interests,

 

provided, that (x) any such transfer is
without payment of any value whatsoever and that no transfer shall be valid unless first approved by the Board, acting in its sole
discretion; (y) the Award Agreement pursuant to which such Awards are granted, and any amendments thereto, must be approved by
the Board and must expressly provide for transferability in a manner consistent with this Section 11(f); and (z) subsequent transfers
of transferred Awards shall be prohibited except in accordance with this Section 11(f). Following transfer, any such Awards and
any securities issued pursuant thereto shall continue to be subject to the same terms and conditions as were applicable immediately
prior to transfer, provided that the term of the Plan and the Award Agreement shall continue to be applied with respect to the
original Participant, and any Awards shall be exercisable by the transferee only to the extent and for the periods specified in
the Award Agreement or Section 6(c), as applicable.

 

(g)Adjustment
of Awards; Waivers. The Board or the Committee may adjust the performance goals and measurements applicable to Awards (i) to
take into account changes in law and accounting and tax rules, (ii) to make such adjustments as the Board or the Committee deems
necessary or appropriate to reflect the inclusion or exclusion of the impact of extraordinary or unusual items, events or circumstances
in order to avoid windfalls or hardships, and (iii) to make such adjustments as the Board or the Committee deems necessary or appropriate
to reflect any material changes in business conditions. In the event of hardship or other special circumstances of a Participant
and otherwise in its discretion, the Board or the Committee may waive in whole or in part any or all restrictions, conditions,
vesting, or forfeiture with respect to any Award granted to such Participant.

 

(h)Award as
Deferred Compensation. To the extent applicable and notwithstanding any other provision of the Plan, the Plan and Award agreements
hereunder shall be administered, operated and interpreted in accordance with Code Section 409A, including any regulations or other
guidance that may be issued after the date on which the Board approves the Plan, provided, however, that in the event that the
Committee determines that any amounts payable hereunder may be taxable to a Participant under Code Section 409A prior to the payment
and/or delivery to such Participant of such amount, the Company may (a) adopt such amendments to the Plan and related Award, and
appropriate policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary
or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder; and/or (b) take
such other actions as the Committee determines necessary or appropriate to comply with or exempt the Plan and/or Awards from the
requirements of Code Section 409A. The Company and its subsidiaries make no guarantees to any Person regarding the tax treatment
of Awards or payments made under the Plan, and, notwithstanding the above provisions and any agreement or understanding to the
contrary, if any Award, payments or other amounts due to a Participant (or his or her beneficiaries, as applicable) results in,
or causes in any manner, the application of any adverse tax consequence under Code Section 409A or otherwise to be imposed, then
the Participant (or his or her Beneficiaries, as applicable) shall be solely liable for the payment of, and the Company and its
subsidiaries shall have no obligation or liability to pay or reimburse (either directly or otherwise) the Participant (or his or
her beneficiaries, as applicable) for, any such adverse tax consequences. If any Deferred Compensation Award is payable to a “specified
employee” (within the meaning of Treasury Regulations Section 1.409A-1(i)), then such payment, to the extent payable due
to the Participant’s Termination of Service and not otherwise exempt from Section 409A of the Code, shall not be paid before
the date that is six (6) months after the date of such Termination of Service (or, if earlier, the date of such Participant’s
death).

 

     17

     

    

 

(i)Non-Competition.
The Board or the Committee may condition its discretionary waiver of a forfeiture, the acceleration of vesting at the time of Termination
of a Participant holding any unexercised or unearned Award, the waiver of restrictions on any Award, or the extension of the expiration
period to a period not longer than that provided by the Plan upon such Participant's agreement (and compliance with such agreement)
(i) not to engage in any business or activity competitive with any business or activity conducted by the Company and (ii) to be
available for consultations at the request of the Company's management, all on such terms and conditions (including conditions
in addition to (i) and (ii)) as the Board or the Committee may determine.

 

(j)Regulatory
Compliance. Each Award under the Plan shall be subject to the condition that, if at any time the Board or the Committee shall
determine that (i) the listing, registration or qualification of the shares of Stock upon any securities exchange or for trading
in any securities market or under any state or federal law, (ii) the consent or approval of any government or regulatory body or
(iii) an agreement by the Participant with respect thereto, is necessary or desirable, then such Award shall not be consummated
in whole or in part unless such listing, registration, qualification, consent, approval or agreement shall have been effected or
obtained free of any conditions not acceptable to the Board or the Committee.

 

(k)Rights as
Shareholder. Unless the Plan, the Board or the Committee expressly specifies otherwise, an Optionee shall have no rights as
a shareholder with respect to any shares covered by an Option until the stock certificates representing the shares are actually
delivered to the Optionee. Except as specified in Section 4(b), no adjustment shall be made for dividends or other rights for which
the record date is prior to the date the shares are issued. The rights of Holders shall be as specified in their Award Agreements,
as determined by the Board or the Committee in accordance with Section 7 hereof.

 

     18

     

    

 

(l)Beneficiary
Designation. The Board or the Committee, in its discretion, may establish procedures for a Participant to designate a beneficiary
to whom any amounts payable in the event of the Participant's death are to be paid.

 

(m)Additional
Plans. Nothing contained in the Plan shall prevent the Company or a subsidiary from adopting other or additional compensation
arrangements for its directors and employees.

 

(n)No Employment
Rights; No Right to Directorship. Neither the adoption of this Plan nor the grant of any Award hereunder shall (i) confer upon
any employee any right to continued employment nor shall it interfere in any way with the right of the Company or a subsidiary
to terminate the employment of any employee at any time; or (ii) confer upon any Participant any right with respect to continuation
of the Participant's membership on the Board or interfere in any way with provisions in the Company’s Articles of Incorporation
and Bylaws relating to the election, appointment, terms of office, and removal of members of the Board.

 

(o)Rule 16b-3.
With respect to persons subject to Section 16 of the Exchange Act, transactions under this Plan are intended to comply with the
applicable conditions of Rule 16b-3. To the extent any provision of this Plan or action by the Board or the Committee fails to
so comply, it shall be adjusted to comply with Rule 16b-3, to the extent permitted by law and deemed advisable by the Board or
the Committee. It shall be the responsibility of persons subject to Section 16 of the Exchange Act, not of the Company, the Board
or the Committee, to comply with the requirements of Section 16 of the Exchange Act; and neither the Company nor the Committee
shall be liable if this Plan or any transaction under this Plan fails to comply with the applicable conditions of Rule 16b-3, or
if any such person incurs any liability under Section 16 of the Exchange Act.

 

(p)Governing
Law. The Plan and all Awards shall be governed by and construed in accordance with the laws of the State of California.

 

(q)Use of Proceeds.
All cash proceeds to the Company under the Plan shall constitute general funds of the Company.

 

(r)Assumption
by Successor. The obligations of the Company under the Plan and under any outstanding Award may be assumed by any successor
corporation, which for purposes of the Plan shall be included within the meaning of “Company.”

 

Section 12.Amendments and Termination

 

The Board may amend,
alter or discontinue the Plan or any Award, but no amendment, alteration or discontinuance shall be made which would impair the
rights of a Participant under an outstanding Award without the Participant's consent unless required by law. No amendment, alteration
or discontinuance shall require shareholder approval unless it:

 

(a)increases the
total number of shares reserved for issuance pursuant to Awards under the Plan;

 

(b)changes the
minimum option price for Options;

 

     19

     

    

 

(c)increases the
maximum term of Awards provided for herein;

 

(d)expands the
types of awards which may be issued under the Plan;

 

(e)expands the
class of eligible Participants; or

 

(f) is
necessary to comply with any tax or regulatory requirement applicable to the Plan or any Award (including as necessary to comply
with any rules or requirements of any securities exchange on which the Stock may be listed or quoted or to prevent the Company
from being denied a tax deduction under Section 162(m) of the Code).

 

Any amendment or modification
requiring shareholder approval shall be deemed adopted as of the date of the action of the Board effecting such amendment or modification
and shall be effective immediately, unless otherwise provided therein, subject to approval thereof within twelve (12) months before
or after the effective date by (i) a majority of the shares of the Company’s stock represented and voting in person or by
proxy at a duly held shareholders’ meeting; or (ii) the written consent of the holders of a majority of the Company’s
outstanding shares. Unless the Company determines to submit the definition of "Performance Goal" and "Performance
Criteria" to the Company's shareholders at the first shareholder meeting that occurs in the fifth year following the year
in which the Plan was last approved by shareholders (or any earlier meeting designated by the Board), in accordance with the requirements
of Section 162(m) of the Code, and such shareholder approval is obtained, then no further Performance Compensation Awards shall
be made to Covered Employees under Section 8 after the date of such annual meeting, but the Plan may continue in effect for Awards
to Participants not in accordance with Section 162(m) of the Code.

 

Section 14.Effective Date of Plan

 

The effective date
of the Plan is May 24, 2017 but no Award may be granted unless and until the Plan has been approved by the shareholders of
the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

 

Section 15.Term of Plan

 

No Award shall be granted
on or after May 24, 2027, but Awards granted prior to May 24, 2027 may extend beyond that date.

 

     20Exhibit

REALOGY HOLDINGS CORP.
EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is hereby entered into as of March 13, 2017, by and between Realogy Holdings Corp. (the “Company”) and Richard A. Smith (“Executive”) (hereinafter collectively referred to as the “Parties”).
In consideration of the respective agreements of the Parties contained herein, it is agreed as follows:
1.Term.  The term of Executive’s employment under this Agreement shall be for the period commencing on March 13, 2017 (the “Effective Date”) and ending, subject to earlier termination as set forth in Section 6, on March 13, 2019 (the “Term”).
2.Employment.  During the Term:
(a)Executive shall be assigned with the duties and responsibilities of Chairman and Chief Executive Officer as may reasonably be assigned to Executive from time to time by the Board of Directors of the Company (the “Board”).  Executive shall perform such duties, undertake the responsibilities, and exercise the authorities customarily performed, undertaken and exercised by persons situated in a similar executive capacity at a similar company, it being understood that Executive’s duties and responsibilities shall include the development of, and transition of responsibilities to, Executive’s successor(s).  In performing Executive’s duties hereunder, Executive shall report solely and directly to the Board.  If, at any time, Executive is elected as a director of the Company or as a director or officer of any of the Company’s affiliates, Executive will fulfill Executive’s duties as such director or officer without additional compensation. During the Term, the Company shall cause Executive to be nominated to the Board and support his reelection.
(b)Executive shall devote Executive’s full-time business attention to the business and affairs of the Company and its affiliates and shall use Executive’s best efforts to faithfully and diligently serve the business and affairs of the Company and its affiliates.  Notwithstanding the foregoing, Executive may subject to the Company’s policy as in effect from time to time, (i) serve on civic, charitable or non-profit boards or committees, (ii) serve on for-profit boards or committees, subject to the approval of the Compensation Committee or with respect to service on public boards, the Board, which approval shall not be unreasonably withheld or delayed, and (iii) manage personal and family investments and affairs, participate in industry organizations and deliver lectures at educational institutions, in each case so long as such service and activity does not materially interfere, individually or in the aggregate, with the performance of his responsibilities hereunder and subject to the code of conduct and other applicable policies of the Company and its affiliates as in effect from time to time.
(c)Executive shall be subject to and shall abide by each of the personnel and compliance policies of the Company and its affiliates applicable and communicated in writing to senior executives, including, without limitation, the Company’s Clawback Policy as in effect from time to time.
3.Annual Compensation.
(a)Base Salary.  The Company agrees to pay or cause to be paid to Executive during the Term a base salary at the rate of $1,000,000 per annum or such increased amount as the Compensation Committee of the Board (the “Committee”) may from time to time determine (the “Base Salary”); provided, however, Executive’s Base Salary may be reduced up to 10% in connection with a broader compensation reduction that applies similarly to all senior executives of the Company, following consultation with Executive.  Such Base Salary shall be payable in accordance with the Company’s customary practices applicable to its executives, but no less frequently than monthly.
(b)Incentive Compensation.  For each fiscal year of the Company ending during the Term, Executive shall be eligible to receive annual cash incentive compensation (the “Incentive Compensation”).  Executive shall be eligible to receive a target annual cash bonus of 150% of “eligible earnings” (as defined below), 

as may hereafter be increased (the “Target Bonus”), with the opportunity to receive a maximum annual cash bonus subject to and in accordance with the terms of the applicable annual cash bonus plan as in effect from time to time.  For purposes of this Agreement, “eligible earnings” in respect of such bonus year shall be calculated in accordance with the applicable annual cash bonus plan as in effect from time to time.  Such annual cash bonus shall be paid in no event later than March 15th of the taxable year following the end of the taxable year to which the performance targets relate, provided that Executive is employed by the Company or one of its affiliates through the date specified in the annual cash bonus plan (or, if earlier, the expiration of the Term) and any performance targets established by the Committee for the applicable fiscal year have been achieved.
(c)Long-Term Incentive Compensation.  In respect of 2017, Executive shall be entitled to a long-term incentive award with an aggregate grant date fair value of $6.5 million to be granted in the following manner: (i) $1.2 million in performance share units with a three-year performance metric of relative TSR, (ii) $2.9 million in performance share units with a three-year performance metric of cumulative free cash flow, (iii) $1.2 million in performance restricted stock units and (iv) $1.2 million in stock options, in each case, subject to the terms and conditions of the applicable award agreements and the Amended and Restated 2012 Long-Term Incentive Plan.  In respect of the 2018 fiscal year, Executive shall be entitled to a long-term incentive award with an aggregate grant date fair value that is no less than $6.5 million (subject to there being sufficient shares reserved under the Amended and Restated 2012 Long-Term Incentive Plan or other incentive plan approved by stockholders), but the composition of the grants shall be determined by the Committee which shall be allocated across various equity vehicles and will take into account the allocations under the 2017 long-term incentive award.  The Company also agrees that the award agreements governing the 2018 long-term incentive awards will retain the “retirement” provisions set forth in the 2017 long-term incentive award agreements (which shall be subject to the clarification set forth in Section 4(d) of this Agreement) and the “without cause” and “good reason” provisions set forth in the performance share unit awards under the 2017 long-term incentive program.  For the avoidance of doubt, Executive’s termination of employment upon the expiration of the Term shall be treated as “retirement” for purposes of the 2018 long-term incentive awards granted to Executive.  In the event (1) there are insufficient shares reserved under the Amended and Restated 2012 Long-Term Incentive Plan to make the 2018 long-term incentive awards to Executive, (2) the stockholders of the Company do not approve additional shares sufficient to grant the 2018 long-term incentive award to Executive, and (3) the Compensation Committee determines to provide an alternative incentive program that is made available to the senior executive team, Executive will be treated under that program in a manner commensurate with his position as Chief Executive Officer of the Company.
4.Other Benefits.
(a)Employee Benefits.  During the Term, Executive shall be entitled to participate in all employee benefit plans, practices and programs maintained by the Company or its affiliates and made available to employees of the Company generally, including, without limitation, all retirement, savings, medical, hospitalization, disability, dental, life or travel accident insurance benefit plans, to the extent Executive is eligible under the terms of such plans.  Executive’s participation in such plans, practices and programs shall commensurate with Executive’s position at the Company.  Executive shall also be entitled to participate in a death and dismemberment benefit plan that shall provide death and dismemberment insurance in the amount of two and a half times Executive’s Base Salary at the time of death or dismemberment up to $2 million, subject to Executive’s eligibility of insurability.  For the avoidance of doubt, Executive shall not be entitled to any excise tax gross-up under Section 280G or 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (or any successor provision) or any other tax gross-up.  In addition to the foregoing, during the Term, the Company shall continue to maintain the life insurance policy arrangement (pursuant to which the Company issues Executive a bonus payment, the net-after-tax proceeds of which are sufficient to pay the amount of the premiums due on such policy) on the same terms and conditions under which the Company maintains this arrangement as in effect immediately prior to the Effective Date. In respect of fiscal year 2017, the Company shall also pay Executive an allowance of $35,000 to be used by Executive for financial planning services. 
(b)Post-Employment Benefits.  The Company (and any successor to the business of the Company) acknowledges and agrees to provide Executive the following benefits notwithstanding anything in this Agreement to the contrary, and further acknowledges and agrees that this provision shall survive any termination of Executive’s employment or any termination of this Agreement.  In addition to any payments or benefits under the 

applicable provisions of Section 5 of this Agreement, upon Executive’s termination of employment from the Company and its subsidiaries for any reason (including, without limitation, due to or following any non-renewal of this Agreement, resignation, or termination by the Company with or without Cause), Executive and each person who is his covered dependent at such time under each applicable Welfare Benefit Plan (defined below), shall remain eligible to continue to participate in all of such plans (as they may be modified from time to time with respect to all senior executive officers), or such other plan that replaces a Welfare Benefit Plan and is subsequently made available to senior executive officers of the Company or any successor Company (the “Post-Employment Plans”) until the end of the plan year in which Executive reaches, or would have reached, age seventy-five (75) (such benefits, the “Post-Employment Benefits”).  As of the Effective Date, Executive is eligible to participate in the following plans: Executive Physical Exams, Medical Expense Reimbursement Plan (MERP), Medical Insurance, Dental Insurance, Group Life Insurance (inclusive of the death and dismemberment benefit plan referred to in Section 4(a), up to $2 million coverage in the aggregate on Executive’s life), Vision Service Plan (collectively, the “Welfare Benefit Plans”).  The coverage under such Post-Employment Plans shall be subject to Executive and/or such dependents, as applicable, continuing to pay the applicable employee portion of any premiums, co-payments, deductibles and similar costs (as if Executive was still an employee of the Company).  Solely with respect to Executive’s dependents, such coverage shall terminate upon such earlier date if and when they become ineligible for any such benefits under the terms of such Welfare Benefit Plans or Post-Employment Plans, as applicable, and provided, that once Executive or his dependents become eligible for Medicare or any other government-sponsored medical insurance plan, or if Executive is eligible to participate in any other company’s medical insurance plan as an employee after the termination of his employment, Executive or his dependents shall utilize such government plan or other company plan, and the Company’s insurance obligations as part of the Post-Employment Benefits hereunder shall become secondary to such government plan or other company plan.  Notwithstanding the foregoing, the Company may meet any of its foregoing obligations under the Post-Employment Plans by paying for, or providing for the payment of, such benefits directly or through alternative plans or individual policies which are no less favorable in all material respects (with respect to both coverage and cost to Executive) to the Post-Employment Plans, provided that the Company shall use its best efforts to assure that provision of the Post-Employments Benefits complies with Section 409A of the Code and will not result in tax or other penalties on the Company or Executive. 
(c)Business Expenses.  Upon submission of proper invoices in accordance with the Company’s normal procedures, Executive shall be entitled to receive prompt reimbursement of all reasonable out-of-pocket business, entertainment and travel expenses incurred by Executive in connection with the performance of Executive’s duties hereunder that have been incurred in accordance with the Company’s business expense and travel and entertainment policies in effect from time to time.  Such reimbursement shall be made as soon as practicable and in no event later than the end of the calendar year following the calendar year in which the expenses were incurred.
(d)Equity Awards.  For clarification purposes, if (i) Executive’s employment is terminated without “cause”, for “good reason”, or due to his death or “disability” (in each case as defined in the applicable equity award agreement) and (ii) at the time of such termination Executive would have been entitled to retirement treatment under the terms of the applicable award agreement in the event of his voluntary termination of employment, then the Company shall apply the applicable retirement treatment to Executive's outstanding equity awards.
5.Termination.  The Term and Executive’s employment hereunder may be terminated under the circumstances set forth below; provided, however, that notwithstanding anything contained herein to the contrary, Executive shall not have any duties or responsibilities to the Company after Executive’s termination of employment that would preclude Executive from having a “separation from service” from the Company within the meaning of Section 409A of the Code, upon such termination of employment.
(a)Disability.  The Company may terminate Executive’s employment, on written notice to Executive after having reasonably established Executive’s Disability (as defined below).  For purposes of this Agreement, “Disability” means (i) Executive’s inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) Executive is, by reason of any medically 

determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident or health plan covering employees of the Company.  Whether Executive has incurred a “Disability” shall be determined by a physician selected by the Company or its insurers.  Executive shall be entitled to the compensation and benefits provided for under this Agreement for any period prior to Executive’s termination by reason of Disability during which Executive is unable to work due to a physical or mental infirmity in accordance with the Company’s policies for similarly-situated executives (without duplication of compensation and benefits payable under any applicable disability policies).
(b)Death.  Executive’s employment shall be terminated as of the date of Executive’s death.
(c)Cause.  The Company may terminate Executive’s employment for “Cause” by providing a Notice of Termination (as defined in Section 7 below) that notifies Executive of his termination for Cause (as defined below), effective as of the date of such notice.  For purposes of this Agreement, “Cause” shall mean (i) Executive’s willful failure to substantially perform his duties as an employee of the Company or any subsidiary (other than any such failure resulting from incapacity due to physical or mental illness), (ii) any act of fraud, misappropriation, material dishonesty, embezzlement or similar conduct against the Company or any subsidiary, (iii) Executive’s conviction of, or plea of guilty or nolo contendere to a charge of commission of, a felony or crime involving moral turpitude, (iv) Executive’s indictment for a charge of commission of a felony or any crime involving moral turpitude, provided that the Board determines in good faith that such indictment would result in a material adverse impact to the business or reputation of the Company, (v) Executive’s gross negligence in the performance of his duties, (vi) Executive purposefully or negligently makes (or has been found to have made) a false certification to the Company pertaining to its financial statements, (vii) the habitual use of drugs or habitual, excessive use of alcohol to the extent that any of such uses in the Board’s good faith determination materially interferes with the performance of Executive’s duties under this Agreement, (viii) a willful breach of fiduciary duty and/or (ix) a willful and material breach by Executive of any of the terms and conditions of this Agreement or a material breach of any of Executive’s representations in this Agreement  A termination will not be for “Cause” pursuant to clause (i), (ii), (v) or (ix), to the extent such conduct is curable, unless the Company shall have notified Executive in writing describing such conduct and Executive shall have failed to cure such conduct within thirty (30) business days after his receipt of such written notice.  No action or omission shall be treated as willful unless done or not done in bad faith and without reasonable belief it was in the best interests of the Company or its affiliates. Executive may only be terminated for Cause by a resolution of the Board. 
(d)Without Cause.  The Company may terminate Executive’s employment other than for Cause, Disability or death.  The Company shall deliver to Executive a Notice of Termination and the Company may, in its sole discretion, select any date within 60 days of such notice as the effective date for Executive’s termination of employment other than for Cause, Disability or death.
(e)Termination by Executive Without Good Reason.  Executive may voluntarily terminate Executive’s employment without Good Reason by delivering to the Company a Notice of Termination not less than thirty (30) days prior to the termination of Executive’s employment, and the Company may, in its sole discretion, select any date within such notice period as the effective date for Executive’s termination of employment without Good Reason.
(f)Termination by Executive for Good Reason.  Executive may terminate employment with the Company for Good Reason (as defined below) by delivering to the Company a Notice of Termination not less than thirty (30) days prior to the termination of Executive’s employment for Good Reason.  The Company shall have the option of terminating Executive’s duties and responsibilities prior to the expiration of such thirty-day notice period.  For purposes of this Agreement, “Good Reason” means voluntary resignation after any of the following actions taken by the Company or any of its subsidiaries without Executive’s consent: (i) his removal from, or failure to be nominated or re-elected to, the Board; (ii) a material reduction of Executive’s duties and responsibilities to the Company or Executive’s title or position or reporting (other than any such material reduction resulting from incapacity due to physical or mental illness or as a result of the progressive delegation of duties or transition of responsibilities in connection with succession as set forth in Section 2(a) of this Agreement, provided, that, notwithstanding such delegation, Executive shall continue to be Chief Executive Officer of the Company and 

report solely and directly to the Board); (iii) a reduction in Base Salary or Target Bonus opportunity (not including any diminution in Base Salary permitted by Section 3(a) of this Agreement); (iv) the relocation of Executive’s primary office to a location more than 50 miles from the prior location and Executive’s commute increases as a result of such relocation; or (v) a material breach by the Company of a material provision of this Agreement (which for the avoidance of doubt includes Section 2(a) of this Agreement, provided, that the progressive delegation of duties or transition of responsibilities of Executive to a potential successor(s) as directed by the Board shall not be deemed a breach under this Agreement, provided, that, notwithstanding such delegation, Executive shall continue to be Chief Executive Officer of the Company and report solely and directly to the Board).  Executive shall provide notice of the existence of the Good Reason condition within ninety (90) days of the date Executive learns of the condition, and the Company shall have a period of thirty (30) days during which it may remedy the condition, and in case of full remedy such condition shall not be deemed to constitute Good Reason hereunder.  In the event the Company is unable to remedy the Good Reason condition in all material respects within the thirty (30) day period, Executive may terminate employment with the Company for Good Reason within thirty (30) days following the expiration of such thirty (30) day period.
(g)Termination by Executive for Retirement.  Executive may voluntarily terminate Executive’s employment due to Retirement (as defined below) by delivering to the Company a Notice of Termination not less than thirty (30) days prior to the termination of Executive’s employment, and the Company may, in its sole discretion, select any date within such notice period as the effective date for Executive’s termination of employment due to Retirement.  For purposes of this Agreement, “Retirement” means a “separation from service” (as defined in Section 409A of the Code) with the Company and all Affiliates (other than for Cause) after attaining eligibility for Retirement.  Executive attains eligibility for Retirement upon the earlier of (i) age 65 or (ii) age 55 with at least ten (10) whole years of service with the Company and all affiliates
(h)Expiration of Term.  For the avoidance of doubt, upon and following the expiration of the Term, Executive shall no longer be eligible to receive any severance payments or benefits pursuant to the terms of this Agreement other than the Post-Employment Benefits pursuant to and in accordance with Section 4(b) of this Agreement
6.Notice of Termination.  Any purported termination by the Company or by Executive shall be communicated by written Notice of Termination (as defined below) to the other Party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice that indicates a termination date, the specific termination provision in this Agreement relied upon and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated.  For purposes of this Agreement, no such purported termination of Executive’s employment hereunder shall be effective without such Notice of Termination (unless waived by the Party entitled to receive such notice, in the manner described in Section 12(j) below).  Subject to the time limits set forth in Section 5(f) of this Agreement, the failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company hereunder or preclude Executive or the Company from asserting such fact or circumstance in enforcing Executive’s or the Company’s rights hereunder. 
7.Compensation Upon Termination. 
(a)Termination by the Company for Cause or by Executive Other Than for Good Reason.  If Executive’s employment is terminated (A) by the Company for Cause or (B) by Executive for any reason, other than for Good Reason, in either case, during the Term, the Company shall provide Executive with the following payments and benefits:
(i)any accrued and unpaid Base Salary;
(ii)except in the event a termination of employment by the company for Cause, any annual bonus earned but unpaid in respect of any completed fiscal year preceding the termination date;
(iii)reimbursement for any and all monies advanced or expenses incurred in connection with Executive’s employment for reasonable expenses incurred by Executive on behalf of the Company for 

the period ending on the termination date in accordance with the Company’s expense reimbursement and travel and entertainment policies in effect from time to time;
(iv)any accrued and unpaid vacation pay in accordance with the terms of the Company’s vacation policy as in effect from time to time;
(v)any previous compensation that Executive has previously deferred (including any interest earned or credited thereon), in accordance with the terms and conditions of the applicable deferred compensation plans or arrangements then in effect, to the extent vested as of Executive’s termination date; and
(vi)any amount or benefit as provided under any plan, program, agreement or corporate governance document of the Company or its affiliates that are then-applicable, in accordance with the terms thereof (including any benefits or coverage set forth under Section 4(b) above).
(the foregoing items in Sections 7(a)(i) through 7(a)(vi) being collectively referred to as the “Accrued Compensation”).
(b)Termination by the Company for Disability.  If Executive’s employment is terminated by the Company for Disability during the Term, the Company shall pay or provide to Executive:
(i)the Accrued Compensation; and
(ii)an amount equal to the Incentive Compensation that Executive would have been entitled to receive in respect of the fiscal year in which Executive’s termination date occurs, had Executive continued in employment through the date the payment is made, which amount, determined based on the Company’s actual performance for such year relative to the performance goals applicable to Executive shall be multiplied by a fraction (A) the numerator of which is the number of days in such fiscal year through termination date and (B) the denominator of which is 365 (the “Pro-Rata Bonus”) and shall be payable in a lump sum payment at the time such bonus or incentive awards are payable to other participants. 
(c)Termination By Reason of Death.  If Executive’s employment is terminated by reason of Executive’s death during the Term, the Company shall pay or provide to Executive’s beneficiaries:
(i)the Accrued Compensation;
(ii)the Pro-Rata Bonus payable in a lump sum at the time such bonus or incentive awards are payable to other participants; and
(iii)a death insurance benefit in the amount of two and a half times Executive’s Base Salary at the time of death (which shall be inclusive of any Company provided life insurance policy applicable to Executive) up to $2 million, subject to Executive’s eligibility of insurability.
(d)Termination by the Company Without Cause or by Executive for Good Reason Not In Connection With a Change in Control.  If Executive’s employment is terminated by the Company without Cause (other than on account of Executive’s death or Disability) or by Executive for Good Reason, in either case, not in connection with a Change in Control (as defined in Section 7(e)) during the Term, Executive shall be entitled to the benefits provided in this Section 7(d): 
(i)the Accrued Compensation;
(ii)the Pro-Rata Bonus payable in a lump sum at the time such bonus or incentive awards are payable to other participants;
(iii)subject to Executive’s compliance with Sections 9 and 12(h) hereof, a payment equal to 2.4 times the sum of Executive’s Base Salary and Annual Bonus (as defined below) as in effect immediately prior to Executive’s termination of employment (or if greater, the Base Salary as in effect immediately preceding the occurrence of the Good Reason condition) and such payment shall be made in 

twenty-four equal monthly installments, with the first installment payable in the first regular payroll occurring following the sixtieth (60th) day following such termination of employment; 
(iv)the Company shall provide Executive with the benefits pursuant to Section 4(b) of this Agreement; and
(v)subject to Executive’s compliance with Sections 9 and 12(h) hereof, the Company shall provide for the 12-month period beginning on the date on which Executive’s employment terminates, or until Executive begins other full-time employment with a new employer, whichever occurs first, outplacement services that are directly related to the type of services Executive provided to the Company and are actually provided by an outplacement services firm, paid by the Company; provided, however, the cost of the outplacement services may not exceed $50,000.
For purposes of this Agreement, “Annual Bonus” shall mean 150% of Base Salary
(e)Termination by the Company Without Cause or by Executive for Good Reason Following a Change in Control.  If during the two (2) year period following a Change in Control Executive’s employment is terminated by the Company without Cause (other than on account of Executive’s death or Disability) or by Executive for Good Reason, in either case, during the Term, Executive shall be entitled to the benefits provided in this Section 7(e): 
(i)the Accrued Compensation;
(ii)the Pro-Rata Bonus payable in a lump sum at the time such bonus or incentive awards are payable to other participants;
(iii)subject to Executive’s compliance with Sections 9 and 12(h) hereof, a payment equal to 2.4 times the sum of Executive’s Base Salary and Annual Bonus as in effect immediately prior to Executive’s termination of employment (or if greater, the Base Salary as in effect immediately preceding the occurrence of the Good Reason condition) payable in a lump sum in the first regular payroll occurring following the sixtieth (60th) day following such termination of employment; provided, however, if the Change in Control is not a change in the ownership or effective control of the Company or a change in ownership of a substantial portion of the assets of the Company under Section 409A of the Code, then the payments shall be made in twenty-four equal monthly installments;
(iv)the Company shall provide Executive with the benefits pursuant to Section 4(b) of this Agreement; and
(v)subject to Executive’s compliance with Sections 9 and 12(h) hereof, the Company shall provide for the 12-month period beginning on the date on which Executive’s employment terminates, or until Executive begins other full-time employment with a new employer, whichever occurs first, outplacement services that are directly related to the type of services Executive provided to the Company and are actually provided by an outplacement services firm, paid by the Company; provided, however, the cost of the outplacement services may not exceed $50,000.
For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred:
(I)    the acquisition (other than from the Company), by any person (as such term is defined in Section 13(c) or 14(d) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty percent (50%) of the combined voting power of the Company’s then outstanding voting securities; or 
(II)    the individuals who, as of the date hereof, are members of the Board (the “Incumbent Board”), cease for any reason to constitute at least a majority of the Board, unless the election, or nomination for election by the Company’s shareholders, of any new director was approved by a vote of at least a majority of the Incumbent Board, and such new director shall be considered as a member of the Incumbent Board; provided, however that a 

director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company, shall not be considered as a member of the Incumbent Board; or
(III)    there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation or other entity, if (1) the shareholders of the Company, immediately before such merger or consolidation, do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the voting securities of the Company outstanding immediately before such merger or consolidation or (2) immediately following the merger or consolidation, the individuals who comprised the Board immediately prior thereto do not constitute at least a majority of the board of directors of the entity resulting from such merger or consolidation (or, if the entity resulting from such merger or consolidation is then a subsidiary, the ultimate parent thereof); or
(IV)    a complete liquidation or dissolution of the Company or the closing of an agreement for the sale or other disposition of all or substantially all of the assets of the Company.
Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities is acquired by (x) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained by the Company or any of its subsidiaries or (y) any corporation which, immediately prior to such acquisition, is owned directly or indirectly by the shareholders of the Company in the same proportion as their ownership of shares in the Company immediately prior to such acquisition.  

(f)Termination by Executive for Retirement.  If Executive’s employment is terminated due to Executive’s Retirement during the Term, the Company shall provide Executive with the following payments and benefits:
(i)the Accrued Compensation; and
(ii)the Pro-Rata Bonus payable in a lump sum at the time such bonus or incentive awards are payable to other participants.
For the avoidance of doubt, Executive’s Retirement during the Term shall not be deemed a termination of employment other than for Cause, Disability or death or a termination of employment for Good Reason.
(g)No Mitigation.  Executive shall not be required to mitigate the amount of any payment provided for under this Agreement by seeking other employment or otherwise and, except as provided in Sections 7(d)(iv) or (v) or 7(e)(iv) or (v) above, no such payment shall be offset or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment.
(h)Survival.  The Company’s obligations under this Section 7 shall survive the termination of the Term.
8.Certain Tax Treatment.
(a)Reduction of Payments in Certain Circumstances.  Notwithstanding anything to the contrary contained herein (or any other agreement entered into by and between the Company and Executive, or any incentive arrangement or plan offered by the Company), in the event that any amount or benefit paid or distributed to Executive pursuant to this Agreement, taken together with any amounts or benefits otherwise paid to Executive by the Company or any Affiliate of the Company (collectively, the “Covered Payments”), would constitute an “excess parachute payment” as defined in Section 280G of the Code, and would thereby subject Executive to an excise tax under Section 4999 of the Code (an “Excise Tax”), the provisions of this Section 8 shall apply.  If the aggregate present value (as determined for purposes of Section 280G of the Code) of the Covered Payments exceeds 

the amount which can be paid to Executive without Executive incurring an Excise Tax, then, solely to the extent that Executive would be better off on an after tax basis by receiving the maximum amount which may be paid hereunder without Executive becoming subject to the Excise Tax, as determined by a nationally recognized accounting firm designated by the Company (the “Accounting Firm”) with the consent of the Executive (which consent shall not be unreasonably withheld or delayed), the amounts payable to Executive under this Agreement (or any other agreement by and between the Executive and Company or any of its Affiliates  or pursuant to any incentive arrangement or plan offered by the Company or any of its Affiliates) shall be reduced (but not below zero) to the maximum amount which may be paid hereunder without Executive becoming subject to the Excise Tax (such reduced payments to be referred to as the “Payment Cap”).  In the event Executive receives reduced payments and benefits as a result of application of this Section 8, Executive shall have the right to designate which of the payments and benefits otherwise set forth herein (or any other agreement between the Company and Executive or any incentive arrangement or plan offered by the Company) shall be received in connection with the application of the Payment Cap, subject to the following sentence.  Reduction shall be made in the following order: (i) at the discretion of Executive, payments that are valued in full under Treasury Regulation Section 1.280G-1, Q&A 24 and are not subject to Section 409A of the Code, (ii) payments that are valued in full under Treasury Regulation Section 1.280G-1, Q&A 24 and are subject to Section 409A of the Code, with the amounts that are payable last reduced first, (iii) at the discretion of Executive, payments that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24 and are not subject to Section 409A of the Code and (iv) payments that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24 and are subject to Section 409A of the Code, with the amounts that are payable last reduced first.  If the Accounting Firm determines that aggregate Covered Payments should be reduced as described above, it shall promptly notify Executive and the Company to that effect.  In the absence of manifest error, all determinations made by the Accounting Firm under this Section 8(a) shall be binding on Executive and the Company and shall be made as soon as reasonably practicable and in no event later than fifteen (15) days following the later of Executive’s date of termination of employment or the date of the transaction which causes the application of Section 280G of the Code.  The Company shall bear all costs, fees and expenses of the Accounting Firm.  To the extent requested by Executive, the Company shall cooperate with Executive in good faith in valuing, and the Accounting Firm shall take into account the value of, services to be provided by Executive (including Executive agreeing to refrain from performing services pursuant to a covenant not to compete) before, on or after the date of the transaction which causes the application of Section 280G of the Code such that payments in respect of such services may be considered to be “reasonable compensation” within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the final regulations under Section 280G of the Code and/or exempt from the definition of the term “parachute payment” within the meaning of Q&A-2(a) of such final regulations  in accordance with Q&A-5(an) of such final regulations.  If it is ultimately determined (by IRS private letter ruling or closing agreement, court decision or otherwise) that Executive’s Covered Payments were reduced by too much or by too little in order to accomplish the purpose of this Section 8(a), Executive and the Company shall promptly cooperate to correct such underpayment or overpayment in a manner consistent with the purpose of this Section 8(a).
(b)Section 409A.  The Parties intend for the payments and benefits under this Agreement to be exempt from Section 409A of the Code or, if not so exempt, to be paid or provided in a manner which complies with the requirements of such section, and intend that this Agreement shall be construed and administered in accordance with such intention.  Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, (i) no amounts shall be paid to Executive under Section 7 of this Agreement until Executive would be considered to have incurred a “separation from service” from the Company within the meaning of Section 409A of the Code, (ii) amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following Executive’s separation from service shall instead be paid on the first business day after the date that is six (6) months following Executive’s separation from service (or immediately following Executive’s  death, if earlier), (iii) each amount to be paid or benefit to be provided under this Agreement shall be construed as a separately identified payment for purposes of Section 409A of the Code, (iv) any payments that are due within the “short term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable law requires otherwise and (v) amounts reimbursable to Executive under this Agreement shall be paid to Executive on or before the last day of the year following the year in which the expense 

was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to Executive) during any one (1) year may not effect amounts reimbursable or provided in any subsequent year. 
9.Restrictive Covenants.
(a)Acknowledgments.  Executive acknowledges and agrees that:  (i) the business in which the Company and its Affiliates are engaged is intensely competitive and that Executive’s employment by the Company has required, and will continue to require, that Executive have access to, and knowledge of, Confidential Information (as defined herein); (ii) the disclosure of any Confidential Information could place the Company at a serious competitive disadvantage and could do serious damage, financial and otherwise, to the business of the Company and its Affiliates; (iii) Executive has been given access to, and developed relationships with, customers of the Company and its Affiliates at the time and expense of the Company; (iv) by Executive’s training, experience and expertise, Executive’s services to the Company are, and will continue to be, extraordinary, special and unique; and (v) Executive has received good and valuable consideration for the restrictive covenants set forth herein, including without limitation, the right to acquire and own securities of the Company, the employment by the Company and the related compensation and benefits and other good and valuable consideration, the sufficiency of which is hereby acknowledged.
(b)Non-Solicitation; Non-Interference; No-Hire.  From the Effective Date through the third anniversary of the Executive’s termination date, Executive shall not, directly or indirectly, on Executive’s own behalf or by, through, or on behalf of, another Person:  (i) solicit, induce, encourage or persuade, or attempt to solicit, induce, encourage or persuade, any then-current employee, consultant or independent contractor of the Company or any Affiliate of the Company to leave the employ of, or engagement with, the Company or any such Affiliate, or in any way interfere with the relationship between the Company or any such Affiliate, on the one hand, and any then-current employee, consultant or independent contractor thereof, on the other hand, (ii) hire any person or entity who or which was an employee, consultant or independent contractor of the Company or any Affiliate of the Company at any time within the last one (1) year of Executive’s employment with the Company; (iii) solicit, induce, encourage or persuade, or attempt to solicit, induce, encourage or persuade any then-current customer, supplier, licensee or other business relation of the Company or any Affiliate of the Company to cease doing business with, or to reduce its current or contemplated level of business with, the Company or such Affiliate, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation, on the one hand, and the Company or any such Affiliate, on the other hand; or (iv) solicit, induce, encourage or persuade, or attempt to solicit, induce, encourage or persuade any potential customer, supplier, licensee or other potential business relation of the Company or any Affiliate of the Company, whom the Company had solicited, was attempting to solicit, or had identified for solicitation during the last twelve (12) months of Executive’s employment with the Company and whom or which Executive knew to be such a potential customer, supplier, licensee or other potential business relation, in each case, to cease doing business with, or to reduce its contemplated level of business with, the Company or such Affiliate, or in any way interfere with the relationship between any such potential customer, supplier, licensee or other potential business relation, on the one hand, and the Company or any such Affiliate, on the other hand.
(c)Non-Competition.  From the Effective Date through the second anniversary of the Executive’s termination date, Executive shall not, directly or indirectly, on Executive’s own behalf or by, through, or on behalf of, another Person, own, manage, operate, control, be employed by (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation) or render services to any person, firm, corporation or other entity, in whatever form, engaged in real estate brokerage, the franchising of real estate brokerages, employee relocation business, title or settlement services, technology-related businesses supporting any of the foregoing or any other business of the same type as any business in which the Company or any of its Affiliates  is engaged on the date of termination of Executive’s employment or in which they have proposed, on or prior to such date, to be engaged in on or after such date and in which the Executive has been involved to any extent (other than de minimis) at any time during the two (2) year period ending with the date of termination of such Executive’s employment, anywhere in the world in which the Company or its Affiliates conduct business.  Nothing in this Section 9(c) shall prohibit Executive from being a passive owner of not more than 4.99% of the outstanding equity interests of any entity so long as Executive has no active participation in the business of such corporation. For the avoidance of doubt, following termination of employment, Executive shall not violate this paragraph by 

providing services to a hedge fund or private equity firm so long as Executive does not directly or indirectly engage in the competitive businesses described above. This Section 9(c) shall not prevent Executive from joining the board of directors of any entity which is not primarily engaged in real estate brokerage, employee relocation or title services or any technology-related businesses supporting any of the foregoing.
(d)Non-Disclosure; Non-Use of Confidential Information.  Executive shall not disclose or use at any time, either during his employment with the Company and its Affiliates or thereafter, any Confidential Information (as herein defined) of which Executive is or becomes aware, whether or not such information is developed by him, except to the extent that such disclosure or use is directly related to and required by Executive’s performance in good faith of duties assigned to Executive by the Company.  Executive will take all appropriate steps to safeguard Confidential Information in his possession and to protect it against disclosure, misuse, espionage, loss and theft.  Executive shall deliver to the Company at the termination of his employment with the Company and its Affiliates, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the Work Product (as hereinafter defined) of the business of the Company or any of its Affiliates that Executive may then possess or have under his control. Notwithstanding anything set forth in this Agreement to the contrary, Executive will not be prohibited from disclosing Confidential Information if reasonably necessary in connection with litigation between Executive and the Company or any of its Affiliates, provided that Executive uses his best efforts to protect the confidential nature of such Confidential Information including, but not limited to, filing any Confidential Information under seal or pursuant to a protective order. 
(e)Proprietary Rights.  Executive recognizes that the Company and its Affiliates possess a proprietary interest in all Confidential Information and Work Product and have the exclusive right and privilege to use, protect by copyright, patent or trademark, or otherwise exploit the processes, ideas and concepts described therein to the exclusion of Executive, except as otherwise agreed between the Company and Executive in writing.  Executive expressly agrees that any Work Product made or developed by Executive or Executive’s agents or affiliates during the course of Executive’s employment, including any Work Product which is based on or arises out of Work Product, shall be the property of and inure to the exclusive benefit of the Company and its Affiliates.  Executive further agrees that all Work Product developed by Executive (whether or not able to be protected by copyright, patent or trademark) during the course of Executive’s employment, or involving the use of the time, materials or other resources of the Company or any of its Affiliates, shall be promptly disclosed to the Company and shall become the exclusive property of the Company, and Executive shall execute and deliver any and all documents necessary or appropriate to implement the foregoing.
(f)Nondisparagement.  Executive covenants that during and following the Term, Executive will not disparage or encourage or induce others to disparage the Company or its Affiliates, together with all of their respective past and present directors and officers, as well as their respective past and present managers, officers, shareholders, partners, employees, agents, attorneys, servants and customers and each of their predecessors, successors and assigns (collectively, the “Company Entities and Persons”); provided that such limitation shall extend to past and present managers, officers, shareholders, partners, employees, agents, attorneys, servants and customers only in their capacities as such or in respect of their relationship with the Company and its Affiliates.  The Company covenants that during and following the Term, the Company will not authorize any statement which disparages the Executive and shall instruct its executive officers and directors not to disparage the Executive. The term “disparage” includes, without limitation, comments or statements adversely affecting in any manner (i) the conduct of the business of the Company Entities and Persons, or (ii) the business reputation of the Company Entities and Persons.  Nothing in this Agreement is intended to or shall prevent either Party from providing testimony in response to a valid subpoena, court order, regulatory request or other judicial, administrative or legal process or otherwise as required by law or from making any statement in any document filed with the U.S. Securities and Exchange Commission.  Either party shall also be permitted to refute any incorrect statements made about him or it by the other party.
(g)Cooperation in Any Investigations and Litigation.  Executive agrees that Executive will reasonably cooperate at reasonable times and places with the Company and its Affiliates, and its counsel, in connection with any investigation, inquiry, administrative proceeding or litigation relating to any matter in which Executive becomes involved or of which Executive has knowledge as a result of Executive’s service with the 

Company by providing truthful information.  The Company agrees to promptly reimburse Executive for reasonable expenses approved in writing in advance of being incurred (including travel expenses, attorneys’ fees and other expenses of counsel) by Executive, in connection with Executive’s cooperation pursuant to this Section 9(g).  Such reimbursements shall be made within sixty (60) days following Executive’s submission of a written invoice to the Company describing such expenses in reasonable detail, and in no event later than the calendar year following the year in which the expenses are incurred.  Executive agrees that, in the event Executive is subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony (in a deposition, court proceeding or otherwise) which in any way relates to Executive’s employment by the Company, Executive will, to the extent not legally prohibited from doing so, give prompt notice of such request to the Company’s General Counsel so that the Company may contest the right of the requesting person or entity to such disclosure before making such disclosure.  Nothing in this provision shall require Executive to violate Executive’s obligation to comply with valid legal process.  Executive shall also not, directly or indirectly, direct, encourage, assist, or advise any non-governmental third party to institute, commence or prosecute any claims, rights or causes of action in law or in equity in any forum or proceeding whatsoever against the Company or its Affiliates; provided, that, such prohibition shall not extend to any such actions taken by Executive on behalf of (A) Executive’s then current employer, (B) any entity with respect to which Executive is then a member of the board of directors or managers, as applicable, or (C) any non-publicly traded entity with respect to which Executive is a 5% or more equity owner (or an affiliate of any such entities referenced in clause (A), (B) or (C)).
(h)Permitted Disclosures.  Pursuant to 18 U.S.C. § 1833(b), Executive will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret of the Company that (a) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to Executive’s attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information in the court proceeding, if Executive (I) files any document containing the trade secret under seal, and (II) does not disclose the trade secret, except pursuant to court order.  Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section.  Further, nothing in any agreement Executive has with the Company shall prohibit or restrict Executive from making any voluntary disclosure of information or documents related to any violation of law to any governmental agency or legislative body, or any self-regulatory organization, in each case, without advance notice to the Company. 
(i)Blue Pencil.  It is the intent and desire of Executive and the Company that the provisions of this Section 9 be enforced to the fullest extent permissible under the laws and public policies as applied in each jurisdiction in which enforcement is sought.  If any particular provision of this Section 9 shall be determined to be invalid or unenforceable, such covenant shall be amended, without any action on the part of either Party hereto, to delete therefrom the portion so determined to be invalid or unenforceable, such deletion to apply only with respect to the operation of such covenant in the particular jurisdiction in which such adjudication is made.
(j)Survival.  Executive’s obligations under this Section 9 shall survive the termination of the Term.
(k)Certain Definitions.
(i)For purposes of this Agreement, “Affiliates” means:
(1)in the case of the Company, a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company; and
(2)in the case of an individual: (i) any member of the immediate family of Executive, including parents, siblings, spouse and children (including those by adoption); the parents, siblings, spouse, or children (including those by adoption) of such immediate family member, and in any such case any trust whose primary beneficiary is such individual or one or more members of such 

immediate family and/or Executive’s lineal descendants; (ii) the legal representative or guardian of the individual or of any such immediate family member in the event the individual or any such immediate family member becomes mentally incompetent; and (iii) any Person controlling, controlled by or under common control with Executive. 
As used in this definition, the term “control,” including the correlative terms “controlling,” “controlled by” and “under common control with,” means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person.
(ii)For purposes of this Agreement, “Confidential Information” means information that is not generally known to the public (except for information known to the public because of Executive’s violation of Section 9(c) of this Agreement) and that is used, developed or obtained by the Company in connection with its business, including, but not limited to, information, observations and data obtained by Executive while employed by the Company or any predecessors thereof (including those obtained prior to the date of this Agreement) concerning (i) the business or affairs of the Company (or such predecessors), (ii) products or services, (iii) fees, costs and pricing structures, (iv) designs, (v) analyses, (vi) drawings, photographs and reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) databases, (x) accounting and business methods, (xi) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (xii) customers and clients and customer or client lists, (xiii) other copyrightable works, (xiv) all production methods, processes, technology and trade secrets, and (xv) all similar and related information in whatever form. Confidential Information will not include any information that has been published in a form generally available to the public prior to the date Executive proposes to disclose or use such information.  Confidential Information will not be deemed to have been published or otherwise disclosed merely because individual portions of the information have been separately published, but only if all material features comprising such information have been published in combination. For purposes of this definition, the “Company” shall mean the Company collectively with its Affiliates.
(iii)For purposes of this Agreement, “Person” shall be construed broadly and shall include, without limitation, an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.
(iv)For purposes of this Agreement, “Work Product” means all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) that relates to the Company’s or any of its Affiliates’ actual or anticipated business, research and development or existing or future products or services and that are conceived, developed or made by Executive (whether or not during usual business hours and whether or not alone or in conjunction with any other person) while employed by the Company or any of its Affiliates (including those conceived, developed or made prior to the date of this Agreement) together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing.
10.Remedies for Breach of Obligations under Sections 9 or 10 hereof.  Executive acknowledges that the Company and its affiliates will suffer irreparable injury, not readily susceptible of valuation in monetary damages, if Executive breaches Executive’s obligations under Section 9 hereof.  Accordingly, Executive agrees that the Company and its affiliates will be entitled, in addition to any other available remedies, to seek  injunctive relief in aid of arbitration against any breach or prospective breach by Executive of Executive’s obligations under Section 9 hereof in any Federal or state court sitting in the state of New York, or, at the Company’s election, in any other state in which Executive maintains Executive’s principal residence or Executive’s principal place of business.  Executive hereby submits to the non-exclusive jurisdiction of all those courts for the purposes of any actions or 

proceedings instituted by the Company or its affiliates to obtain that injunctive relief in aid of arbitration, and Executive agrees that process in any or all of those actions or proceedings may be served by registered mail, addressed to the last address provided by Executive to the Company, or in any other manner authorized by law.
11.Representations and Warranties.
(a)The Company represents and warrants that (i) it is fully authorized to enter into this Agreement and to perform its obligations under it, (ii) the execution, delivery and performance of this Agreement by it does not violate any applicable law, regulation, order, judgment or decree or any agreement, arrangement, plan or corporate governance document (x) to which it is a Party or (y) by which it is bound, and (iii) upon the execution and delivery of this Agreement by the Parties, this Agreement shall be a valid and binding obligation, enforceable against it in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.
(b)Executive represents and warrants to the Company that the execution and delivery by Executive of this Agreement do not, and the performance by Executive of Executive’s obligations hereunder will not, with or without the giving of notice or the passage of time, or both: (a) violate any judgment, writ, injunction, or order of any court, arbitrator, or governmental agency applicable to Executive; or (b) conflict with, result in the breach of any provisions of or the termination of, or constitute a default under, any agreement to which Executive is a Party or by which Executive is or may be bound.
12.Miscellaneous.
(a)Successors and Assigns.
(i)This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors and permitted assigns and the Company shall require any successor or assign to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place.  The Company may not assign or delegate any rights or obligations hereunder except to a successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company or to an affiliate of the Company.  The term “the Company” as used herein shall include a corporation or other entity acquiring all or substantially all the assets and business of the Company (including this Agreement) whether by operation of law or otherwise.
(ii)Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by Executive, Executive’s beneficiaries or legal representatives, except by will or by the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal personal representatives.
(b)Clawback Policy.  Executive acknowledges and agrees that (i) he or she is subject to the terms and conditions of the Company’s Clawback Policy as in effect from time to time, (ii) such Clawback Policy, in each case, shall apply to, among other things, all currently outstanding vested and unvested awards and all awards that have been previously exercised or paid, including any proceeds, gains or other economic benefit in respect of the award and (iii) to the extent permitted by applicable law and notwithstanding the terms and conditions of the Clawback Policy as in effect from time to time, such Clawback Policy shall apply in the event Executive breaches in any material respect his covenants as set forth in Section 9 of this Agreement and, to the extent curable, has not cured such breach within thirty (30) days following written notice from the Company.
(c)Indemnification.  Executive shall be indemnified by the Company as, and to the extent, provided in the certificate of incorporation and bylaws of the Company and as provided in Executive’s Director and Officer Indemnification Agreement dated October 10, 2012 and shall be provided with director and officer liability insurance on a basis no less favorable than provided to any other officer or director of the Company.  The obligations under this paragraph shall survive termination of the Term.
(d)Enforcement.

(i)Arbitration.  Except for the Company or its Affiliate’s right to obtain injunctive relief in aid of arbitration for violation of Section 9 of this Agreement, any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in New York City, in the Borough of Manhattan (unless the parties agree in writing to a different location), before a single arbitrator in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association then in effect.  In any such arbitration proceeding the parties agree to provide all discovery deemed necessary by the arbitrator.  The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof.  Each party shall bear its or his costs and expenses in any such arbitration, including, but not limited to, attorneys’ fees; provided, however, if Executive prevails on substantially all material claims, the Company shall reimburse Executive for all of his reasonable attorneys’ fees and costs. It is part of the essence of this Agreement that any claims hereunder shall be resolved expeditiously and as confidentially as possible.  Accordingly, the Company and Executive agree that all proceedings in any arbitration shall be conducted under seal and kept strictly confidential.  In that regard, no party shall use, disclose or permit the disclosure of any information, evidence or documents produced by any other party in the arbitration proceedings or about the existence, contents or results of the proceedings except as necessary and appropriate for the preparation and conduct of the arbitration proceedings, or as may be required by any legal process, or as required in an action in aid of arbitration or for enforcement of or appeal from an arbitral award.  Before making any disclosure permitted by the preceding sentence, the party intending to make such disclosure shall give the other party reasonable written notice of the intended disclosure and afford such other party a reasonable opportunity to protect its interests.
(ii)Remedies.  All remedies hereunder are cumulative, are in addition to any other remedies provided for by law and may, to the extent permitted by law, be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed to be an election of such remedy or to preclude the exercise of any other remedy.
(iii)Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
(e)Right to Counsel/Legal Fees.  Executive acknowledges that Executive has had the opportunity to consult with legal counsel of Executive’s choice in connection with the drafting, negotiation and execution of this Agreement and related employment arrangements. The Company shall reimburse Executive for reasonable legal fees incurred with respect to the negotiation of this Agreement in an amount not to exceed $30,000.  Such reimbursement shall be made within thirty (30) days after the Executive provides an invoice for such services to the Company (which invoice shall be provided within sixty days following the date of this Agreement), but in any event no later than March 15 of the year following the year in which the fees are incurred. 
(f)Notice.  For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of Termination) shall be in writing and shall be deemed to have been duly given when personally delivered or sent by Certified mail, return receipt requested, postage prepaid, addressed to the respective addresses last given by each Party to the other, provided that all notices to the Company shall be directed to the attention of the Company’s Chief Executive Officer with a copy to the Company’s General Counsel.  All notices and communications shall be deemed to have been received on the date of delivery thereof or on the third business day after the mailing thereof, except that notice of change of address shall be effective only upon receipt.
(g)Withholding.  The Company shall be entitled to withhold the amount, if any, of all taxes of any applicable jurisdiction required to be withheld by an employer with respect to any amount paid to Executive hereunder.  The Company, in its sole and absolute discretion, shall make all determinations as to whether it is obligated to withhold any taxes hereunder and the amount thereof.

(h)Release of Claims.  The termination benefits described in Section 7(d)(ii), (iii) and (v) and Section 7(e)(ii), (iii) and (v) of this Agreement shall be conditioned on Executive delivering to the Company, a signed release of claims in the form of Exhibit A hereto within forty-five (45) days or twenty-one (21) days, as may be applicable under the Age Discrimination in Employment Act of 1967, as amended by the Older Workers Benefit Protection Act, following Executive’s termination date, and not revoking Executive’s consent to such release of claims within seven (7) days of such execution; provided, however, that Executive shall not be required to release any benefits under Section 4(b) of this Agreement, any rights under equity-based agreements, any rights Executive may have to be indemnified by the Company under Section 12(c) of this Agreement or under any other indemnification agreement entered into between Executive and the Company or to be covered under directors and officers liability insurance, provided, further, that in no event shall the timing of Executive’s execution (and non-revocation) of the general release, directly or indirectly, result in Executive designating the calendar year of payment, and if a payment that is subject to execution (and non-revocation) of the general release could be made in more than one taxable year, payment shall be made in the later taxable year.
(i)Resignation as Officer or Director.  Upon a termination of employment for any reason, Executive shall resign each position (if any) that Executive then holds as an officer or director of the Company and any of its affiliates, as well as any positions Executive holds as a trustee or fiduciary of any employee benefit plan maintained by the Company.  Executive’s execution of this Agreement shall be deemed the grant by Executive to the officers of the Company of a limited power of attorney to sign in Executive’s name and on Executive’s behalf any such documentation as may be required to be executed solely for the limited purposes of effectuating such resignations
(j)Modification.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and the Company.  No waiver by either Party hereto at any time of any breach by the other Party hereto of, or noncompliance with, any condition or provision of this Agreement to be performed by such other Party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either Party which are not expressly set forth in this Agreement.
(k)Effect of Other Law.  Anything herein to the contrary notwithstanding, the terms of this Agreement shall be modified to the extent required to meet the provisions of the Sarbanes-Oxley Act of 2002, Section 409A of the Code, or other federal law applicable to the employment arrangements between Executive and the Company.  Any delay in providing benefits or payments, any failure to provide a benefit or payment, or any repayment of compensation that is required under the preceding sentence shall not in and of itself constitute a breach of this Agreement, provided, however, that the Company shall provide economically equivalent payments or benefits to Executive to the extent permitted by law.
(l)Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the state of New York applicable to contracts executed in and to be performed entirely within such state, without giving effect to the conflict of law principles thereof.
(m)No Conflicts.  Executive represents and warrants to the Company that Executive is not a party to or otherwise bound by any agreement or arrangement (including, without limitation, any license, covenant, or commitment of any nature), or subject to any judgment, decree, or order of any court or administrative agency, that would conflict with or will be in conflict with or in any way preclude, limit or inhibit Executive’s ability to execute this Agreement or to carry out Executive’s duties and responsibilities hereunder.
(n)Inconsistencies.  In the event of any inconsistency between any provision of this Agreement and any provision of any employee handbook, personnel manual, program, policy, or arrangement of the Company or its affiliates (including, without limitation, any provisions relating to notice requirements and post-employment restrictions), the provisions of this Agreement shall control, unless Executive otherwise agrees in a writing that expressly refers to the provision of this Agreement whose control he is waiving.

(o)Beneficiaries/References.  In the event of Executive’s death or a judicial determination of his incompetence, references in this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative.
(p)Survivorship.  Except as otherwise set forth in this Agreement, the respective rights and obligations of the Parties hereunder shall survive the Term and any termination of Executive’s employment.  Without limiting the generality of the forgoing, the provisions of Section 7, 9 and 10 shall survive the Term.
(q)Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.
(r)Entire Agreement.  This Agreement constitutes the entire agreement between the Parties hereto and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between the Parties hereto with respect to the subject matter hereof, including, without limitation, the Employment Agreement dated April 10, 2007, as amended, between the Company and Executive (the “Old Employment Agreement”) and the Restrictive Covenant Agreement dated as of October 10, 2012 between the Company and Executive.  Executive hereby acknowledges and agrees that he is not entitled to any payments or benefits under the Old Employment Agreement.
(s)Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.
13.Certain Rules of Construction.
(a)The headings and subheadings set forth in this Agreement are inserted for the convenience of reference only and are to be ignored in any construction of the terms set forth herein.
(b)Wherever applicable, the neuter, feminine or masculine pronoun as used herein shall also include the masculine or feminine, as the case may be.
(c)The term “including” is not limiting and means “including without limitation.”
(d)References in this Agreement to any statute or statutory provisions include a reference to such statute or statutory provisions as from time to time amended, modified, reenacted, extended, consolidated or replaced (whether before or after the date of this Agreement) and to any subordinate legislation made from time to time under such statute or statutory provision.
(e)References to “writing” or “written” include any non-transient means of representing or copying words legibly, including by facsimile or electronic mail.
(f)References to “$” are to United States Dollars.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and Executive has executed this Agreement as of the day and year first above written.

REALOGY HOLDINGS CORP.
By:     /s/ Sunita Holzer         
Name:  Sunita Holzer
		
	Title:
	Executive Vice President and Chief Human Resources Officer

                    
EXECUTIVE
By:    /s/ Richard A. Smith         
Name:    Richard A. Smith

EXHIBIT A
FORM OF RELEASE AGREEMENT
THIS RELEASE AGREEMENT (the “Release”) is made by and between Richard A. Smith (“Executive”) and Realogy Holdings Corp. (the “Company”).
1.    For and in consideration of the payments and benefits provided in Sections [7(d)(ii), (iii) and (v)] 7(e)(ii), (iii) and (v)] of the Employment Agreement between Executive and the Company dated as of March 13, 2017 (the “Employment Agreement”), Executive, for himself, his successors and assigns, executors and administrators, now and forever hereby releases and discharges the Company, together with all of its past and present parents, subsidiaries, and affiliates, together with each of their officers, directors, stockholders, partners, employees, agents, representatives and attorneys, and each of their subsidiaries, affiliates, estates, predecessors, successors, and assigns; provided that such release shall extend to past and present officers, directors, shareholders, partners, employees, agents, representatives and attorneys only in their capacities as such or in respect of their relationship with the Company and its affiliates (hereinafter collectively referred to as the “Releasees”) from any and all rights, claims, charges, actions, causes of action, complaints, sums of money, suits, debts, covenants, contracts, agreements, promises, obligations, damages, demands or liabilities of every kind whatsoever, in law or in equity, whether known or unknown, suspected or unsuspected (collectively, “Claims”), which Executive or Executive’s executors, administrators, successors or assigns ever had, now has or may hereafter claim to have by reason of any matter, cause or thing whatsoever: (i) arising from the beginning of time up to the date upon which Executive signs the Release, including but not limited to (A) any such Claims arising out of, or relating in any way to, Executive’s employment with the Company or any of the other Releasees, or the termination of Executive’s employment relationship with the Company or any of the other Releasees, and (B) any such Claims arising under any federal, local or state law, executive order, statute or regulation, including, without limitation, the Age Discrimination in Employment Act of 1967, as amended by the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the Civil Rights Act of 1991, the Family and Medical Leave Act of 1993, the Fair Labor Standards Act of 1938 (but limited to the provisions prohibiting retaliation), the Equal Pay Act of 1963, and the Sarbanes-Oxley Act of 2002, any “whistleblower” or retaliation claims (to the extent permitted by applicable law),and/or the applicable federal, state or local law, executive order, statute or regulation against discrimination, each as amended; (ii) arising under or relating to the Employment Agreement or breach of a contract relating to employment; or (iii) arising under or relating to any policy, agreement, understanding or promise, written or oral, formal or informal, between the Company and any of the Releasees and Executive; provided, however, that notwithstanding the foregoing, nothing contained in the Release shall in any way diminish or impair: (a) any rights Executive may have under Section [7(d)][7(e)] of this Employment Agreement, including any accrued benefits; (b) any rights Executive may have, from and after the date upon which Executive signs the Release; (c) any rights to indemnification that may exist from time to time under the Company’s certificate of incorporation or bylaws, or state law or any other indemnification agreement entered into between Executive and the Company or rights under any directors and officers insurance policy; (d) Executive’s ability to bring appropriate proceedings to enforce the Release; (e) any rights under applicable equity agreements and (f) any rights or claims Executive may have that cannot be waived under applicable law (collectively, the “Excluded Claims”).  Executive further acknowledges and agrees that, except with respect to Excluded Claims, the Company and the Releasees have fully satisfied any and all obligations whatsoever owed to Executive arising out of Executive’s employment with the Company or any of the Releasees, and that no further payments or benefits are owed to Executive by the Company or any of the Releasees.
2.    Executive understands and agrees that, except for the Excluded Claims, Executive has knowingly relinquished, waived and forever released any and all rights to any personal recovery in any action or proceeding that may be commenced on Executive’s behalf arising out of the aforesaid employment relationship or the termination thereof, including, without limitation, claims for back pay, front pay, liquidated damages, compensatory damages, general damages, special damages, punitive damages, exemplary damages, costs, expenses and attorneys’ fees.
3.    Executive acknowledges and agrees that Executive has been advised of Executive’s right to consult with an attorney of Executive’s choosing prior to signing the Release.  Executive understands and agrees that 

Executive has the right and has been given the opportunity to review the Release with an attorney of Executive’s choice should Executive so desire.  Executive also agrees that Executive has entered into the Release knowingly, freely and voluntarily. Executive further acknowledges and agrees that Executive has twenty-one (21) calendar days, or in the event of a group termination, forty-five (45) calendar days, to consider the Release, and any exhibits hereto, although Executive may sign it sooner if Executive wishes.  In addition, once Executive has signed the Release, Executive shall have seven (7) additional days from the date of execution to revoke Executive’s consent and may do so by writing to the Company’s Human Resources Officer, which must be received by the Company within such seven (7) day revocation period.  The Release shall not be effective, and no payments shall be due hereunder, earlier than the eighth (8th) day after Executive shall have executed the Release and returned it to the Company, assuming that Executive had not revoked Executive’s consent to the Release prior to such date.
4.    It is understood and agreed by Executive that any payment made to Executive is not to be construed as an admission of any liability whatsoever on the part of the Company or any of the other Releasees, by whom liability is expressly denied.
5.    The Release is executed by Executive voluntarily and is not based upon any representations or statements of any kind made by the Company or any of the other Releasees as to the merits, legal liabilities or value of Executive’s claims.  Executive acknowledges that Executive has had a full and reasonable opportunity to consider the Release and that Executive has not been pressured or in any way coerced into executing the Release.  Executive further acknowledges and agrees that he is executing this Release in exchange for good and valuable consideration in addition to anything of value to which Executive is otherwise entitled.
6.    The exclusive venue for any disputes arising hereunder shall be the state or federal courts located in the State of New York, and each of the parties hereto irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.  Each of the parties hereto also agrees that any final and unappeasable judgment against a party hereto in connection with any action, suit or other proceeding may be enforced in any court of competent jurisdiction, either within or outside of the United States.  A certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award or judgment.
7.    The Release and the rights and obligations of the parties hereto shall be governed and construed in accordance with the laws of the state of Delaware.  If any provision hereof is unenforceable or is held to be unenforceable, such provision shall be fully severable, and this document and its terms shall be construed and enforced as if such unenforceable provision had never comprised a part hereof, the remaining provisions hereof shall remain in full force and effect, and the court construing the provisions shall add as a part hereof a provision as similar in terms and effect to such unenforceable provision as may be enforceable, in lieu of the unenforceable provision.
8.    The Release shall inure to the benefit of and be binding upon the Company and its successors and assigns.

IN WITNESS WHEREOF, Executive and the Company have executed the Release as of the below-written dates. 
IMPORTANT NOTICE:  BY SIGNING BELOW YOU RELEASE AND GIVE UP ANY AND ALL LEGAL CLAIMS, KNOWN AND UNKNOWN, THAT YOU MAY HAVE AGAINST THE COMPANY AND RELATED PARTIES.

__________________________________    ______________________
REALOGY HOLDINGS CORP.        Richard A. Smith

Dated:____________________            Dated:__________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}]]