Document:

EX-10.4

 Exhibit 10.4 
  

 
 JERNIGAN CAPITAL, INC. 

2015 EQUITY INCENTIVE PLAN 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	 Page
	 
	 1.
	 	 PURPOSE
	  	 	1	  
	 2.
	 	 DEFINITIONS
	  	 	1	  
	 3.
	 	 ADMINISTRATION OF THE PLAN
	  	 	7	  
	 3.1
	 	 Committee.
	  	 	7	  
	 3.2
	 	 Terms of Awards.
	  	 	8	  
	 3.3
	 	 Forfeiture; Recoupment.
	  	 	9	  
	 3.4
	 	 No Repricing.
	  	 	10	  
	 3.5
	 	 Deferral Arrangement.
	  	 	10	  
	 3.6
	 	 No Liability.
	  	 	10	  
	 3.7
	 	 Share Issuance/Book-Entry.
	  	 	10	  
	 4.
	 	 SHARES SUBJECT TO THE PLAN
	  	 	10	  
	 4.1
	 	 Number of Shares Available for Awards.
	  	 	10	  
	 4.2
	 	 Adjustments in Authorized Shares.
	  	 	11	  
	 4.3
	 	 Share Usage.
	  	 	11	  
	 5.
	 	 EFFECTIVE DATE, DURATION AND AMENDMENTS
	  	 	11	  
	 5.1
	 	 Effective Date.
	  	 	11	  
	 5.2
	 	 Term.
	  	 	11	  
	 5.3
	 	 Amendment and Termination of the Plan.
	  	 	11	  
	 6.
	 	 AWARD ELIGIBILITY AND LIMITATIONS
	  	 	12	  
	 6.1
	 	 Service Providers and Other Persons.
	  	 	12	  
	 6.2
	 	 Limitation on Shares Subject to Awards and Cash Awards.
	  	 	12	  
	 6.3
	 	 Stand-Alone, Additional, Tandem and Substitute Awards.
	  	 	12	  
	 7.
	 	 AWARD AGREEMENT
	  	 	13	  
	 8.
	 	 TERMS AND CONDITIONS OF OPTIONS
	  	 	13	  
	 8.1
	 	 Option Price.
	  	 	13	  
	 8.2
	 	 Vesting.
	  	 	13	  
	 8.3
	 	 Term.
	  	 	13	  
	 8.4
	 	 Termination of Service.
	  	 	14	  
	 8.5
	 	 Limitations on Exercise of Option.
	  	 	14	  
	 8.6
	 	 Method of Exercise.
	  	 	14	  
	 8.7
	 	 Rights of Holders of Options.
	  	 	14	  
	 8.8
	 	 Delivery of Share Certificates.
	  	 	14	  
	 8.9
	 	 Transferability of Options.
	  	 	14	  
	 8.10
	 	 Family Transfers.
	  	 	15	  
	 8.11
	 	 Limitations on Incentive Stock Options.
	  	 	15	  
	 8.12
	 	 Notice of Disqualifying Disposition.
	  	 	15	  
	 9.
	 	 TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
	  	 	15	  
	 9.1
	 	 Right to Payment and Grant Price.
	  	 	15	  
	 9.2
	 	 Other Terms.
	  	 	16	  
	 9.3
	 	 Term.
	  	 	16	  
	 9.4
	 	 Transferability of SARS.
	  	 	16	  
	 9.5
	 	 Family Transfers.
	  	 	16	  
	 10.
	 	 TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS
	  	 	17	  
	 10.1
	 	 Grant of Restricted Stock or Stock Units.
	  	 	17	  

  
 i 

							
	 10.2
		 Restrictions.
		 	17	  
	 10.3
		 Restricted Stock Certificates.
		 	17	  
	 10.4
		 Rights of Holders of Restricted Stock.
		 	17	  
	 10.5
		 Rights of Holders of Stock Units.
		 	18	  
	 10.6
		 Termination of Service.
		 	18	  
	 10.7
		 Delivery of Shares.
		 	18	  
	 11.
		 TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS
		 	19	  
	 12.
		 FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK
		 	19	  
	 12.1
		 General Rule.
		 	19	  
	 12.2
		 Surrender of Shares.
		 	19	  
	 12.3
		 Cashless Exercise.
		 	20	  
	 12.4
		 Other Forms of Payment.
		 	20	  
	 13.
		 TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS
		 	20	  
	 13.1
		 Dividend Equivalent Rights.
		 	20	  
	 13.2
		 Termination of Service.
		 	20	  
	 14.
		 TERMS AND CONDITIONS OF PERFORMANCE AWARDS AND ANNUAL INCENTIVE AWARDS
		 	21	  
	 14.1
		 Grant of Performance Awards and Annual Incentive Awards.
		 	21	  
	 14.2
		 Value of Performance Awards and Annual Incentive Awards.
		 	21	  
	 14.3
		 Earning of Performance Awards and Annual Incentive Awards.
		 	21	  
	 14.4
		 Form and Timing of Payment of Performance Awards and Annual Incentive Awards.
		 	21	  
	 14.5
		 Performance Conditions.
		 	21	  
	 14.6
		 Performance Awards or Annual Incentive Awards Granted to Designated Covered Employees.
		 	22	  
	 14.7
		 Status of Awards Under Code Section 162(m).
		 	25	  
	 15.
		 TERMS AND CONDITIONS OF LONG-TERM INCENTIVE UNITS
		 	25	  
	 15.1
		 Vesting.
		 	25	  
	 16.
		 PARACHUTE LIMITATIONS
		 	25	  
	 17.
		 REQUIREMENTS OF LAW
		 	26	  
	 17.1
		 General.
		 	26	  
	 17.2
		 Rule 16b-3.
		 	27	  
	 18.
		 EFFECT OF CHANGES IN CAPITALIZATION
		 	27	  
	 18.1
		 Changes in Shares.
		 	27	  
	 18.2
		 Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control.
		 	28	  
	 18.3
		 Change in Control in which Awards are not Assumed.
		 	28	  
	 18.4
		 Change in Control in which Awards are Assumed.
		 	30	  
	 18.5
		 Adjustments
		 	30	  
	 18.6
		 No Limitations on Company.
		 	30	  
	 19.
		 GENERAL PROVISIONS
		 	30	  
	 19.1
		 Disclaimer of Rights.
		 	30	  
	 19.2
		 Nonexclusivity of the Plan.
		 	31	  
	 19.3
		 Withholding Taxes.
		 	31	  
	 19.4
		 Captions.
		 	32	  

  
 ii 

							
	 19.5
		 Other Provisions.
		 	32	  
	 19.6
		 Number and Gender.
		 	32	  
	 19.7
		 Severability.
		 	32	  
	 19.8
		 Governing Law.
		 	32	  
	 19.9
		 Code Section 409A.
		 	32	  

  
 iii 

 JERNIGAN CAPITAL, INC. 

2015 EQUITY INCENTIVE PLAN 

Jernigan Capital, Inc., a Maryland corporation (the “Company”), sets forth herein the terms of its 2015 Equity Incentive Plan (the
“Plan”), as follows: 
  

	1.	PURPOSE 

 The Plan is intended to provide (a) incentive to officers, investment
professionals, employees, directors, consultants and other eligible persons to stimulate their efforts towards the success of the Company and to operate and manage its business in a manner that will provide for the long term growth and profitability
of the Company; and (b) a means of obtaining, rewarding and retaining key personnel. To this end, the Plan provides for the grant of stock options, stock appreciation rights, restricted stock, unrestricted stock, stock units (including deferred
stock units), dividend equivalent rights, long-term incentive units, performance awards, annual incentive cash awards and other equity-based awards. Any of these awards may, but need not, be made as performance incentives to reward attainment of
annual or long-term performance goals in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified stock options or incentive stock options, as provided herein. 

 

	2.	DEFINITIONS 

 For purposes of interpreting the Plan and related documents (including
Award Agreements), the following definitions shall apply: 
 2.1 “Affiliate” means, with respect to the Company, any
company or other trade or business that controls, is controlled by or is under common control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including, without limitation, any Subsidiary and, unless
otherwise determined by the Committee, JCap Advisors, LLC. Notwithstanding anything to the contrary, for purposes of granting Options or Stock Appreciation Rights, an entity may not be considered an Affiliate of the Company unless the Company holds
a “controlling interest” in such entity, where the term “controlling interest” has the same meaning as provided in Treasury Regulation Section 1.414(c)-2(b)(2)(i), provided that the language “at least 50 percent”
is used instead of “at least 80 percent” and, provided further, that where granting of Options or Stock Appreciation Rights is based upon a legitimate business criteria, the language “at least 20 percent” is used instead of
“at least 80 percent” each place it appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i). 
 2.2 “Annual
Incentive Award” means an Award, denominated in cash, made subject to attainment of performance goals (as described in Section 14) over a Performance Period of up to one (1) year (which shall correspond to the
Company’s fiscal year, unless otherwise specified by the Committee). 
 2.3 “Applicable Laws” means the legal
requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities, tax and other laws, rules, regulations and government orders, and the rules of any applicable stock exchange or national market system, of any
jurisdiction applicable to Awards granted to residents therein. 

 2.4 “Award” means a grant of an Option, Stock Appreciation Right, Restricted
Stock, Unrestricted Stock, Stock Unit, Dividend Equivalent Right, Performance Award, Annual Incentive Award, LTIP Unit, or Other Equity-Based Award under the Plan. 

2.5 “Award Agreement” means the agreement between the Company and a Grantee that evidences and sets out the terms and
conditions of an Award. 
 2.6 “Benefit Arrangement” shall have the meaning set forth in Section 16. 

2.7 “Board” means the Board of Directors of the Company. 

2.8 “Cause” means, unless defined otherwise in a Service Provider’s Award Agreement or employment, consulting or
services agreement with the Company or an Affiliate (in which case such definition shall control), as determined by the Committee, the Service Provider’s (i) continued failure to substantially perform duties, or gross negligence or willful
misconduct in connection with the performance of duties; (ii) conviction or plea of guilty or nolo contendere of a felony; (iii) conviction of any other criminal offense involving an act of dishonesty intended to result in substantial
personal enrichment of such Grantee at the expense of the Company or an Affiliate; or (iv) material breach of any Company policy or term of any employment, consulting or other services, confidentiality, intellectual property or non-competition
agreements, if any, between the Service Provider and the Company or an Affiliate. 
 2.9 “Change in Control” means: 

(i) Any “person” as such term is used in Section 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or
other fiduciary holding securities under any employee benefit plan of the Company or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company),
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding
voting securities; 
 (ii) During any period of twelve consecutive months, individuals who at the beginning of such period constitute the
Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i), (iii) or (iv) hereof) whose election by the Board or nomination
for election by the Company’s stockholders was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously
so approved, cease for any reason to constitute at least a majority thereof, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or actual threatened solicitation of proxies or consents by or on behalf of a person other than the Board; 

(iii) The consummation of a merger or consolidation of the Company with any other entity or the issuance of voting securities in connection
with a merger or consolidation of the Company (or any direct or indirect subsidiary thereof) pursuant to applicable exchange requirements, other than (A) a merger or consolidation which would result

  
 2 

 
in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving or parent entity) at least 50.1% of the combined voting power of the voting securities of the Company or such surviving or parent entity outstanding immediately after such merger or consolidation or (B) a merger or consolidation
effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as defined above) is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 50% or more of
either of the then outstanding shares of Common Stock or the combined voting power of the Company’s then outstanding voting securities; or 

(iv) The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction
or series of transactions within a period of twelve months ending on the date of the last sale or disposition having a similar effect). 

Notwithstanding the foregoing, if an Award constitutes deferred compensation within the meaning of Code Section 409A, no payment,
settlement or vesting (if vesting would be deemed a distribution with respect to the Award under Section 409A) shall occur with respect to such Award on account of the Change in Control transaction or event unless the transaction or event also
constitutes a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the Company’s assets, as those terms are used in Code Section 409A(a)(2)(c)(v). 

2.10 “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. 

2.11 “Committee” means the Committee constituted under Section 3 to administer the Plan. 

2.12 “Common Stock” means the common stock of the Company, par value $0.01 per share. 

2.13 “Company” means Jernigan Capital, Inc., a Maryland corporation. 

2.14 “Covered Employee” means a Grantee who is a covered employee within the meaning of Code Section 162(m)(3). 

2.15 “Determination Date” means the Grant Date or such other date as of which the Fair Market Value of a Share is required to
be established for purposes of the Plan. 
 2.16 “Disability” means, unless defined otherwise in a Service Provider’s
Award Agreement or employment, consulting or services agreement with the Company or an Affiliate (in which case such definition shall control), the Grantee is unable to perform each of the essential duties of such Grantee’s position by reason
of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last for a continuous period of not less than 12 months; provided, however, that, with respect to rules regarding
expiration of an Incentive Stock Option following termination of the Grantee’s Service, Disability shall mean the Grantee is unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental
impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. 

  
 3 

 2.17 “Dividend Equivalent Right” means a right, granted to a Grantee under
Section 13, to receive cash, Shares, other Awards or other property equal in value to dividends paid with respect to a specified number of Shares, or other periodic payments. 

2.18 “Effective Date” means March 13, 2015, the date the Plan was approved by the stockholders of the Company. 

2.19 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. 

2.20 “Fair Market Value” means the fair market value of a Share for purposes of the Plan, which shall be determined as of any
Determination Date as follows: 
 (i) If on such Determination Date the Shares are listed on a Stock Exchange, or are publicly traded on
another established securities market (a “Securities Market”), the Fair Market Value of a Share shall be the closing price of a Share as reported on such Stock Exchange or such Securities Market (provided that, if there is more than
one such Stock Exchange or Securities Market, the Committee shall designate the appropriate Stock Exchange or Securities Market for purposes of the Fair Market Value determination). If there is no such reported closing price on such Determination
Date, the Fair Market Value of a Share shall be the closing price of a Share on the most recent date prior to such Determination Date on which any sale of Shares shall have been reported on such Stock Exchange or such Securities Market. 

(ii) If on such Determination Date the Shares are not listed on a Stock Exchange or publicly traded on a Securities Market, the Fair Market
Value of a Share shall be the value of a Share as determined by the Committee in good faith; provided, however, that if such Fair Market Value is used to determine an Option Price or a SAR Exercise Price, the Committee shall use a reasonable
application of a reasonable valuation method, in a manner consistent with Code Section 409A. 
 2.21 “Family Member”
means a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including
adoptive relationships, of the Grantee, any person sharing the Grantee’s household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent (50%) of the beneficial interest, a
foundation in which any one or more of these persons (or the Grantee) control the management of assets, and any other entity in which one or more of these persons (or the Grantee) own more than fifty percent (50%) of the voting interests. 

2.22 “Good Reason” means, unless defined otherwise in a Service Provider’s Award Agreement or employment, consulting or
services agreement with the Company or an Affiliate (in which case such definition shall control), as determined by the Committee (i) the assignment to the Service Provider of substantial duties or responsibilities inconsistent with the Service

  
 4 

 
Provider’s position at the Company, or any other action by the Company which results in a substantial diminution of the Service Provider’s duties, authorities or responsibilities (other
than temporarily while physically or mentally incapacitated or as required by applicable law); (ii) a material reduction in the Service Provider’s aggregate base salary and other compensation (including annual target bonus opportunity and
retirement plans, welfare plans and fringe benefits) taken as a whole, excluding any reductions caused by the failure to achieve performance targets (as the same may be in effect from time to time); (iii) the relocation of the Service
Provider’s principal place of employment to a location more than 30 miles from the Service Provider’s principal place of employment or the Company’s requiring the Service Provider to be based anywhere other than such principal place
of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with the Service Provider’s business travel obligations as of immediately prior to the Change in
Control or (iv) the Company’s material breach of the terms of any employment agreement with the Service Provider; provided, however, that the Service Provider must provide the Company with a written notice detailing the specific
circumstances alleged to constitute “Good Reason” within ninety (90) days after the first occurrence of such circumstances that the Service Provider knows or reasonably should have known to constitute “Good Reason,” such
condition must not have been remedied by the Company within thirty (30) days of such written notice, and the termination must occur within ninety (30) days after such failure to remedy the event. 

2.23 “Grant Date” means, as determined by the Committee, the latest to occur of (i) the date as of which the Company
completes the action constituting the Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award under Section 6, or (iii) such other date as may be specified by the Committee. 

2.24 “Grantee” means a natural person who receives or holds an Award under the Plan. 

2.25 “Incentive Stock Option” means an “incentive stock option” within the meaning of Code Section 422, or the
corresponding provision of any subsequently enacted tax statute, as amended from time to time. 
 2.26 “Long-Term Incentive
Unit” or “LTIP Unit” means an Award under Section 15 of an interest in the operating partnership affiliated with the Company. 

2.27 “Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option. 

2.28 “Option” means an option to purchase one or more Shares pursuant to the Plan. 

2.29 “Option Price” means the exercise price for each Share subject to an Option. 

2.30 “Other Agreement” shall have the meaning set forth in Section 16. 

2.31 “Other Equity-Based Award” means a right or other interest that may be denominated or payable in, valued in whole or in
part by reference to, or otherwise based on, or related to, Shares, other than an Option, Stock Appreciation Right, Restricted Stock, Unrestricted Stock, Stock Unit, Dividend Equivalent Right, Performance Award or Annual Incentive Award. 

  
 5 

 2.32 “Outside Director” means a member of the Board who is not an officer or
employee of the Company. 
 2.33 “Performance Award” means an Award made subject to the attainment of performance goals (as
described in Section 14) over a Performance Period of up to ten (10) years. 
 2.34 “Performance-Based
Compensation” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for “qualified performance-based compensation” paid to Covered Employees. Notwithstanding the foregoing,
nothing in the Plan shall be construed to mean that an Award which does not satisfy the requirements for “qualified performance-based compensation” under Code Section 162(m) does not constitute performance-based compensation for other
purposes, including for purposes of Code Section 409A. 
 2.35 “Performance Measures” means measures as described in
Section 14 on which the performance goals are based and which have been approved by the Company’s stockholders pursuant to the Plan in order to qualify Awards as Performance-Based Compensation. 

2.36 “Performance Period” means the period of time during which the performance goals must be met in order to determine the
degree of payout and/or vesting with respect to an Award. 
 2.37 “Plan” means this Jernigan Capital, Inc. 2015 Equity
Incentive Plan, as amended from time to time. 
 2.38 “Purchase Price” means the purchase price for each Share pursuant to
a grant of Restricted Stock, Stock Units or Unrestricted Stock. 
 2.39 “Restricted Stock” means Shares awarded to a
Grantee pursuant to Section 10. 
 2.40 “SAR Exercise Price” means the per share exercise price of a SAR
granted to a Grantee under Section 9. 
 2.41 “Securities Act” means the Securities Act of 1933, as now in
effect or as hereafter amended. 
 2.42 “Service” means service as a Service Provider to the Company or any Affiliate.
Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be a Service Provider to the Company or any
Affiliate. Whether a termination of Service shall have occurred for purposes of the Plan shall be determined by the Committee in its sole and absolute discretion, which determination shall be final, binding and conclusive. Notwithstanding any other
provision to the contrary, for any individual providing services solely as a director, only service to the Company or any of its Subsidiaries constitutes Service. Except as may otherwise be required to comply with Code Section 409A, if the
Service Provider’s employment 

  
 6 

 
or other service relationship is with an Affiliate and that entity ceases to be an Affiliate, a termination of Service shall be deemed to have occurred when the entity ceases to be an Affiliate
unless the Service Provider transfers his or her employment or other service relationship to the Company or its remaining Affiliates. 

2.43 “Service Provider” means an employee, officer, director, or a consultant or adviser (who is a natural person) providing
services to the Company or any of its Affiliates. 
 2.44 “Share” means a share of Common Stock. 

2.45 “Stock Appreciation Right” or “SAR” means a right granted to a Grantee under Section 9.

 2.46 “Stock Units” means a bookkeeping entry representing the equivalent of one Share awarded to a Grantee pursuant to
Section 10. 
 2.47 “Stock Exchange” means the New York Stock Exchange or another established national or
regional stock exchange. 
 2.48 “Subsidiary” means any “subsidiary corporation” of the Company within the
meaning of Code Section 424(f). 
 2.49 “Substitute Award” means an Award granted upon assumption of, or in
substitution for, outstanding awards previously granted by a company or other entity acquired by the Company or an Affiliate or with which the Company or an Affiliate combines. 

2.50 “Ten Percent Stockholder” means an individual who owns more than ten percent (10%) of the total combined voting
power of all classes of outstanding voting securities of the Company, its parent or any of its Subsidiaries. In determining Share ownership, the attribution rules of Code Section 424(d) shall be applied. 

2.51 “Unrestricted Stock” shall have the meaning set forth in Section 11. 

Unless the context otherwise requires, all references in the Plan to “including” shall mean “including without
limitation.” 
 References in the Plan to any Code Section shall be deemed to include, as applicable, regulations promulgated under
such Code Section. 
  

	3.	ADMINISTRATION OF THE PLAN 

 3.1 Committee. 

The Plan shall be administered by the Committee, constituted as follows: 

(i) The Committee will consist of the Compensation Committee of the Board or, in the absence of a Compensation Committee, the Board or such
committee as the Board shall select. Once appointed, the Committee will serve in its designated 

  
 7 

 
capacity until otherwise directed by the Board. The Board may increase the size of the Committee and appoint additional members, remove members (with or without cause) and substitute new members,
fill vacancies (however caused), or remove all members of the Committee and thereafter directly administer the Plan. Notwithstanding the foregoing, unless the Board determines otherwise, at any time that the Company Shares are registered pursuant to
Section 12 of the Exchange Act, the Plan will be administered only by a committee consisting of no fewer than two directors of the Company, each of whom is (A) a “non-employee director” within the meaning of Rule 16b-3 (or any
successor rule) of the Exchange Act, (B) an “outside director” within the meaning of Section 162(m)(4)(C)(i) of the Code, and (C) an “independent director” for purpose of the rules and regulations of the Stock
Exchange or quotation system on which the Shares are principally traded; provided, however, the failure of the Committee to be composed solely of individuals who are “non-employee directors,” “outside directors,” and
“independent directors” shall not render ineffective or void any Awards made by, or other actions taken by, such Committee. 

(ii) The Plan may be administered by different bodies with respect to different Grantees. 

(iii) Decisions of the Committee shall be final, conclusive and binding on all persons or entities, including the Company, any Grantee, any
stockholder and any employee or any Affiliate. A majority of the members of the Committee may determine its actions and fix the time and place of its meetings. 

(iv) The Committee may delegate to a committee of one or more Directors of the Company or, to the extent permitted by Applicable Law, to one
or more officers or a committee of officers, the authority to grant Awards to employees and officers of the Company and its Affiliates who are not directors, Covered Employees, or “officers,” as such term is defined by Rule 16a-1(f) of the
Exchange Act. 
 3.2 Terms of Awards. 

Subject to the other terms and conditions of the Plan, the Committee shall have full and final authority to: 

(i) designate Grantees; 
 (ii)
determine the type or types of Awards to be made to a Grantee; 
 (iii) determine the number of Shares to be subject to an Award; 

(iv) establish the terms and conditions of each Award (including, but not limited to, the exercise price of any Option, the nature and
duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the Shares subject thereto, the treatment of an Award in the event of a Change in Control, and any
terms or conditions that may be necessary to qualify Options as Incentive Stock Options); 

  
 8 

 (v) prescribe the form of each Award Agreement evidencing an Award; 

(vi) interpret and administer the Plan and any instrument or agreement entered into under or in connection with the Plan, including any Award
Agreement; 
 (vii) correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the
extent that the Committee shall deem desirable to carry it into effect; 
 (viii) establish such rules and regulations and appoint such
agents as it shall deem appropriate for the proper administration of the Plan; 
 (ix) amend, modify, or reprice (except as such practice is
prohibited by Section 3.4 herein) the terms of any outstanding Award; and 
 (x) make any other determination and take any other
action that the Committee deems necessary or desirable for administration of the Plan. 
 Such authority specifically includes the authority, in order to
effectuate the purposes of the Plan but without amending the Plan, to make or modify Awards to eligible individuals who are foreign nationals or are individuals who are employed outside the United States to recognize differences in local law, tax
policy, or custom. Notwithstanding the foregoing, no amendment, modification or supplement of any Award shall, without the consent of the Grantee, impair the Grantee’s rights under such Award. 

3.3 Forfeiture; Recoupment. 

The Company may reserve the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee with respect to an Award
thereunder on account of actions taken by, or failed to be taken by, such Grantee in violation or breach of or in conflict with any (a) employment agreement, (b) non-competition agreement, (c) agreement prohibiting solicitation of
employees or clients of the Company or any Affiliate, (d) confidentiality obligation with respect to the Company or any Affiliate, or (e) other agreement, as and to the extent specified in such Award Agreement. The Company may annul an
outstanding Award if the Grantee thereof is an employee and is terminated for Cause as defined in the Plan or the applicable Award Agreement or for “cause” as defined in any other agreement between the Company or any Affiliate and such
Grantee, as applicable. 
 If the Company adopts a “clawback” or recoupment policy, any Award will be subject to repayment to the
Company to the extent so provided under the terms of such policy. Such policy may authorize the Company to recover from a Grantee incentive-based compensation (including Options awarded as compensation) awarded to or received by such Grantee during
a period of up to three (3) years, as determined by the Committee, preceding the date on which the Company is required to prepare an accounting restatement due to material noncompliance by the Company, as a result of misconduct, with any
financial reporting requirement under the federal securities laws. In addition, and notwithstanding the foregoing, such policy may otherwise authorize the Company to recover from a Grantee any amounts or awards as may in the future be prescribed by
the rules and regulations of the Securities and Exchange Commission and/or the primary stock exchange on which the Shares are listed, if any. 

  
 9 

 3.4 No Repricing. 

Except for adjustments to Options or SARs contemplated by Section 18, the Company may not, without obtaining stockholder approval:
(a) amend the terms of outstanding Options or SARs to reduce the Option Price or SAR Exercise Price of such outstanding Options or SARs; (b) cancel outstanding Options or SARs in exchange for or substitution of Options or SARs with an
Option Price or SAR Exercise Price that is less than the exercise price of the original Options or SARs; (c) cancel outstanding Options or SARs with an Option Price or SAR Exercise Price above the current Fair Market Value of a Share in
exchange for cash or other securities; or (d) take any other action with respect to Options or SARS that would be treated as a repricing under the Stock Exchange or quotation system on which the Shares are principally traded. 

3.5 Deferral Arrangement. 

The Committee may permit or require the deferral of any award payment into a deferred compensation arrangement, subject to such rules and
procedures as it may establish, which may include provisions for the payment or crediting of interest or Dividend Equivalent Rights and, in connection therewith, provisions for converting such credits into Stock Units and for restricting deferrals
to comply with hardship distribution rules affecting tax-qualified retirement plans subject to Code Section 401(k)(2)(B)(IV), provided that no Dividend Equivalent Rights may be granted in connection with, or related to, an Award of Options or
SARs. Any such deferrals shall be made in a manner that complies with Code Section 409A. 
 3.6 No Liability. 

No member of the Board or the Committee (or any other person to whom administrative authority has been delegated hereunder) shall be liable
for any action or determination made in good faith with respect to the Plan or any Award or Award Agreement. 
 3.7 Share
Issuance/Book-Entry. 
 Notwithstanding any provision of the Plan to the contrary, the issuance of the Shares under the Plan may be
evidenced in such a manner as the Committee, in its discretion, deems appropriate, including, without limitation, book-entry or direct registration or issuance of one or more share certificates. 

 

	4.	SHARES SUBJECT TO THE PLAN 

 4.1 Number of Shares Available for Awards. 

Subject to adjustment as provided in Section 18, a total of 200,000 Shares shall be reserved for issuance under the Plan. Shares
issued or to be issued under the Plan shall be authorized but unissued shares or treasury Shares or any combination of the foregoing, as may be determined from time to time by the Board or by the Committee. 

  
 10 

 4.2 Adjustments in Authorized Shares. 

The Committee shall have the right to substitute or assume Awards in connection with mergers, reorganizations, separations, or other
transactions to which Code Section 424(a) applies. The number of Shares reserved pursuant to Section 4 shall be increased by the corresponding number of awards assumed and, in the case of a substitution, by the net increase in the
number of Shares subject to awards before and after the substitution. Available shares under a stockholder approved plan of an acquired company (as appropriately adjusted to reflect the transaction) may be used for Awards under the Plan and do not
reduce the number of Shares available under the Plan, subject to requirements of the Stock Exchange on which the Shares are listed. 

4.3 Share Usage. 
 Shares
covered by an Award shall be counted as used as of the Grant Date. Any Shares that are subject to Awards shall be counted against the limit set forth in Section 4.1 as one (1) Share for every one (1) Share subject to an Award.
With respect to SARs, the number of Shares subject to an award of SARs will be counted against the aggregate number of Shares available for issuance under the Plan regardless of the number of Shares actually issued to settle the SAR upon exercise.
If any Shares covered by an Award granted under the Plan are not purchased or are forfeited or expire, or if an Award otherwise terminates without delivery of any Shares subject thereto, then the number of Shares counted against the aggregate number
of Shares available under the Plan with respect to such Award shall, to the extent of any such forfeiture, termination or expiration, again be available for making Awards under the Plan in the same amount as such Shares were counted against the
limit set forth in Section 4.1. The number of Shares available for issuance under the Plan shall not be increased by (i) any Shares tendered or withheld or Award surrendered in connection with the purchase of Shares upon exercise of
an Option as described in Section 12.2, (ii) any Shares deducted or delivered from an Award payment in connection with the Company’s tax withholding obligations as described in Section 19.3 or (iii) any Shares
purchased by the Company with proceeds from option exercises. 
  

	5.	EFFECTIVE DATE, DURATION AND AMENDMENTS 

 5.1 Effective Date. 

The Plan shall be effective as of the Effective Date. 

5.2 Term. 
 The Plan
shall continue in effect until the day immediately prior to the 10-year anniversary of the Effective Date, unless sooner terminated on any date as provided in Section 5.3 or extended with approval by the stockholders of the Company. 

5.3 Amendment and Termination of the Plan. 

The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any Shares as to which Awards have not been
made. An amendment shall be contingent on approval of the Company’s stockholders to the extent stated by the Board, required by 

  
 11 

 
Applicable Laws or required by the Stock Exchange on which the Shares are listed. No amendment will be made to the no-repricing provisions of Section 3.4 or the option pricing
provisions of Section 8.1 without the approval of the Company’s stockholders. No amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, impair rights or obligations under any Award theretofore
awarded under the Plan. 
  

	6.	AWARD ELIGIBILITY AND LIMITATIONS 

 6.1 Service Providers and Other Persons. 

Subject to this Section 6, Awards may be made under the Plan to: (i) any Service Provider, as the Committee shall determine
and designate from time to time and (ii) any other individual whose participation in the Plan is determined to be in the best interests of the Company by the Committee. 

6.2 Limitation on Shares Subject to Awards and Cash Awards. 

During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act and the transition period
under Treasury Regulation Section 1.162-27(f)(2) has lapsed or does not apply, Awards intended to qualify as Performance-Based Compensation shall be subject to the following limitations: 

(i) the maximum number of Shares subject to Options or SARs that can be granted under the Plan to any person eligible for an Award under
Section 6 is One Million (1,000,000) Shares in a calendar year (for this purpose, tandem SARs/Options shall be treated as one Award); 

(ii) the maximum number of Shares that can be granted under the Plan, other than pursuant to Options or SARs, to any person eligible for an
Award under Section 6 is One Million (1,000,000) Shares in a calendar year; and 
 (iii) the maximum amount that may be
paid as an Annual Incentive Award in a calendar year to any person eligible for an Award shall be Five Million Dollars ($5,000,000) and the maximum amount that may be paid as a cash-settled Performance Award in respect of a performance period by any
person eligible for an Award shall be Five Million Dollars ($5,000,000). 
 The preceding limitations in this Section 6.2 are
subject to adjustment as provided in Section 18. 
 6.3 Stand-Alone, Additional, Tandem and Substitute Awards. 

Subject to Section 3.4, Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in
addition to, in tandem with, or in substitution or exchange for, any other Award or any award granted under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate, or any other right of a
Grantee to receive payment from the Company or any Affiliate. Such additional, tandem, and substitute or exchange Awards may be granted at any time. Subject to Section 3.4, if an 

  
 12 

 
Award is granted in substitution or exchange for another Award, the Committee shall require the surrender of such other Award in consideration for the grant of the new Award. In addition, Awards
may be granted in lieu of cash compensation, including in lieu of cash amounts payable under other plans of the Company or any Affiliate. Notwithstanding Section 8.1 and Section 9.1 but subject to Section 3.4, the
Option Price of an Option or the SAR Exercise Price of an SAR that is a Substitute Award may be less than 100% of the Fair Market Value of a Share on the original date of grant; provided, that, the Option Price or grant price is determined in
accordance with the principles of Code Section 424 and the regulations thereunder for any Incentive Stock Option and consistent with Code Section 409A for any other Option or SAR. 

 

	7.	AWARD AGREEMENT 

 Each Award granted pursuant to the Plan shall be evidenced by an Award
Agreement, in such form or forms as the Committee shall from time to time determine. Award Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan. Each Award
Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-Qualified Stock Options or Incentive Stock Options, and in the absence of such specification such options shall be deemed Non-Qualified Stock Options.

  

	8.	TERMS AND CONDITIONS OF OPTIONS 

 8.1 Option Price. 

The Option Price of each Option shall be fixed by the Committee and stated in the Award Agreement evidencing such Option. Except in the case
of Substitute Awards, the Option Price of each Option shall be at least the Fair Market Value of a Share on the Grant Date; provided, however, that in the event that a Grantee is a Ten Percent Stockholder, the Option Price of an Option
granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than one hundred ten percent (110%) of the Fair Market Value of a Share on the Grant Date. In no case shall the Option Price of any Option be less than
the par value of a Share. 
 8.2 Vesting. 

Subject to Sections 8.3 and 18.3, each Option granted under the Plan shall become exercisable at such times and under such conditions
as shall be determined by the Committee and stated in the Award Agreement. For purposes of this Section 8.2, fractional numbers of Shares subject to an Option shall be rounded down to the next nearest whole number. 

8.3 Term. 
 Each Option
granted under the Plan shall terminate, and all rights to purchase Shares thereunder shall cease, upon the expiration of ten (10) years from the date such Option is granted, or under such circumstances and on such date prior thereto as is set
forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such Option; provided, however, that in the event that the Grantee is a Ten Percent Stockholder, an Option granted to such Grantee that is intended
to be an Incentive Stock Option shall not be exercisable after the expiration of five (5) years from its Grant Date. 

  
 13 

 8.4 Termination of Service. 

Each Award Agreement shall set forth the extent to which the Grantee shall have the right to exercise the Option following termination of the
Grantee’s Service. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service.

 8.5 Limitations on Exercise of Option. 

Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, prior to the date the Plan is
approved by the stockholders of the Company as provided herein or after the occurrence of an event referred to in Section 18 which results in termination of the Option. 

8.6 Method of Exercise. 

Subject to the terms of Section 12 and Section 19.3, an Option that is exercisable may be exercised by the
Grantee’s delivery to the Company of notice of exercise on any business day, at the Company’s principal office, on the form specified by the Company and in accordance with any additional procedures specified by the Committee. Subject to
the terms of Section 12 and Section 19.3, such notice shall specify the number of Shares with respect to which the Option is being exercised and shall be accompanied by payment in full of the Option Price of the Shares for
which the Option is being exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to an Award. 

8.7 Rights of Holders of Options. 

Unless otherwise stated in the applicable Award Agreement, an individual or entity holding or exercising an Option shall have none of the
rights of a stockholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject Shares or to direct the voting of the subject Shares or to receive notice of any meeting of the Company’s
stockholders) until the Shares covered thereby are fully paid and issued to him. Except as provided in Section 18, no adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date of
such issuance. 
 8.8 Delivery of Share Certificates. 

Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price with respect thereto, such Grantee shall be
entitled to receive such evidence of such Grantee’s ownership of the Shares subject to such Option as shall be consistent with Section 3.7. 

8.9 Transferability of Options. 

Except as provided in Section 8.10, during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or
incompetency, the Grantee’s guardian or legal representative) may exercise an Option. Except as provided in Section 8.10, no Option shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the
laws of descent and distribution. 

  
 14 

 8.10 Family Transfers. 

If authorized in the applicable Award Agreement or by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or
part of an Option which is not an Incentive Stock Option to any Family Member. For the purpose of this Section 8.10, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic
relations order in settlement of marital property rights; or (iii) unless Applicable Law does not permit such transfers, a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (or
the Grantee) in exchange for an interest in that entity. Following a transfer under this Section 8.10, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, and
Shares acquired pursuant to the Option shall be subject to the same restrictions on transfer of shares as would have applied to the Grantee. Subsequent transfers of transferred Options are prohibited except to Family Members of the original Grantee
in accordance with this Section 8.10 or by will or the laws of descent and distribution. The events of termination of Service of Section 8.4 shall continue to be applied with respect to the original Grantee, following which
the Option shall be exercisable by the transferee only to the extent, and for the periods specified, in Section 8.4. 
 8.11
Limitations on Incentive Stock Options. 
 An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such
Option is an employee of the Company or any Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option
is granted) of the Shares with respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its Affiliates)
does not exceed $100,000. Except to the extent provided in the regulations under Code Section 422, this limitation shall be applied by taking Options into account in the order in which they were granted. 

8.12 Notice of Disqualifying Disposition. 

If any Grantee shall make any disposition of Shares issued pursuant to the exercise of an Incentive Stock Option under the circumstances
described in Code Section 421(b) (relating to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof. 

 

	9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 

 9.1 Right to Payment and Grant
Price. 
 A SAR shall confer on the Grantee to whom it is granted a right to receive, upon exercise thereof, the excess of (A) the
Fair Market Value of one Share on the date of exercise over (B) the SAR Exercise Price as determined by the Committee. The Award Agreement for a SAR shall specify the SAR Exercise Price, which shall be at least the Fair Market Value of one
(1) Share on 

  
 15 

 
the Grant Date. SARs may be granted in conjunction with all or part of an Option granted under the Plan or at any subsequent time during the term of such Option, in conjunction with all or part
of any other Award or without regard to any Option or other Award; provided that a SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Exercise Price that is no less than the Fair Market Value of one Share on the SAR
Grant Date; and provided further that a Grantee may only exercise either the SAR or the Option with which it is granted in tandem and not both. 

9.2 Other Terms. 
 The
Committee shall determine on the Grant Date or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future service
requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions, the method of exercise, method of settlement, form of consideration payable in settlement, method by or
forms in which Shares will be delivered or deemed to be delivered to Grantees, whether or not a SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR. 

9.3 Term. 
 Each SAR
granted under the Plan shall terminate, and all rights thereunder shall cease, upon the expiration of ten (10) years from the date such SAR is granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as
may be fixed by the Committee and stated in the Award Agreement relating to such SAR. 
 9.4 Transferability of SARS. 

Except as provided in Section 9.5, during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or
incompetency, the Grantee’s guardian or legal representative) may exercise a SAR. Except as provided in Section 9.5, no SAR shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of
descent and distribution. 
 9.5 Family Transfers. 

If authorized in the applicable Award Agreement and by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or
part of a SAR to any Family Member. For the purpose of this Section 9.5, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property
rights; or (iii) unless Applicable Law does not permit such transfers, a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that
entity. Following a transfer under this Section 9.5, any such SAR shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, and Shares acquired pursuant to a SAR shall be subject to
the same restrictions on transfer or shares as would have applied to the Grantee. Subsequent transfers of transferred SARs are prohibited except to Family Members of the original Grantee in accordance with this Section 9.5 or by will or
the laws of descent and distribution. 

  
 16 

	10.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS 

 10.1 Grant of Restricted
Stock or Stock Units. 
 Awards of Restricted Stock or Stock Units may be made for consideration or no consideration. To the extent
required by Applicable Law, Grantees will be required to pay the par value of the Shares; provided, however, that, to the extent permitted by Applicable Law, par value shall be deemed paid by past Service or, if so provided in the related Award
Agreement or a separate agreement, the promise by the Grantee to perform future Service to the Company or an Affiliate of the Company). 

10.2 Restrictions. 
 At
the time a grant of Restricted Stock or Stock Units is made, the Committee may, in its sole discretion, establish a period of time (a “restricted period”) applicable to such Restricted Stock or Stock Units. Each Award of Restricted Stock
or Stock Units may be subject to a different restricted period. The Committee may in its sole discretion, at the time a grant of Restricted Stock or Stock Units is made, prescribe restrictions in addition to or other than the expiration of the
restricted period, including the satisfaction of corporate or individual performance objectives, which may be applicable to all or any portion of the Restricted Stock or Stock Units as described in Section 14, and which shall be set
forth in the Award Agreement relating to such grant. Except as authorized by the Committee in writing, neither Restricted Stock nor Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the restricted
period or prior to the satisfaction of any other restrictions prescribed by the Committee with respect to such Restricted Stock or Stock Units. 

10.3 Restricted Stock Certificates. 

Pursuant to Section 3.7, to the extent that ownership of Restricted Stock is evidenced by a book-entry registration or direct
registration, such registration shall be notated to evidence the restrictions imposed on such Award of Restricted Stock under the Plan and the applicable Award Agreement. Subject to Section 3.7 and the immediately following sentence, the
Company may issue, in the name of each Grantee to whom Restricted Stock have been granted, share certificates representing the total number of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The
Committee may provide in an Award Agreement that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the shares of Restricted Stock are forfeited to the Company or the
restrictions applicable thereto lapse and such Grantee shall deliver a stock power to the Company with respect to each certificate, or (ii) such certificates shall be delivered to the Grantee, provided, however, that such certificates shall
bear a legend or legends that comply with the applicable securities laws and regulations and make appropriate reference to the restrictions imposed under the Plan and the Award Agreement. 

10.4 Rights of Holders of Restricted Stock. 

Unless the Committee otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such Shares. Awards of
Restricted Stock may provide for the right to receive any dividends declared or paid with respect to such Shares; provided, however, 

  
 17 

 
that to the extent such dividend rights are provided with respect to Restricted Stock that vests or is earned based upon the achievement of performance goals, dividends shall not be paid
currently, but shall, instead, be paid (or, to the extent deemed reinvested into additional Shares of Restricted Stock, vest) only to the extent (and when) such Restricted Stock vests. The Award Agreement may provide that dividends are payable in
cash or deemed reinvested in additional Shares of Restricted Stock at a price per Share equal to the Fair Market Value of a Share on the date that such dividend is paid. All distributions, if any, received by a Grantee with respect to Restricted
Stock as a result of any stock split, extraordinary dividend, share dividend, combination of shares, or other similar transaction shall be subject to the restrictions applicable to the original Grant. Absent advance written consent by the Committee,
holders of Restricted Stock may not make an election under Code Section 83(b) with regard to the grant of Restricted Stock, and any holder who attempts to make such an election without first obtaining such consent shall forfeit the Restricted
Stock. 
 10.5 Rights of Holders of Stock Units. 

10.5.1 Voting and Dividend Equivalent Rights. 

Holders of Stock Units shall have no rights as stockholders of the Company (for example, the right to receive cash or dividend payments or
distributions attributable to the Shares subject to such Stock Units, to direct the voting of the Shares subject to such Stock Units, or to receive notice of any meeting of the Company’s stockholders); provided, however, that the Committee may
provide in an Award Agreement evidencing a grant of Stock Units that the holder of such Stock Units shall be entitled to receive Dividend Equivalent Rights. 

10.5.2 Creditor’s Rights. 

A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and
unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
 10.6 Termination of
Service. 
 Unless the Committee otherwise provides in an Award Agreement or in writing after the Award Agreement is issued, upon the
termination of a Grantee’s Service, any Restricted Stock or Stock Units held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon
forfeiture of Restricted Stock or Stock Units, the Grantee shall have no further rights with respect to such Award, including but not limited to any right to vote Restricted Stock or any right to receive dividends with respect to Restricted Stock or
Stock Units. 
 10.7 Delivery of Shares. 

Upon the expiration or termination of any restricted period and the satisfaction of any other conditions prescribed by the Committee and set
forth in the Award Agreement relating to such Restricted Stock or Stock Units, the restrictions applicable to Restricted Stock or Stock Units settled in Shares shall lapse, and, unless otherwise provided in the applicable Award Agreement, a
book-entry or direct registration or a share certificate evidencing ownership of 

  
 18 

 
such Shares shall, consistent with Section 3.7, be issued, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be. Neither the
Grantee, nor the Grantee’s beneficiary or estate, shall have any further rights with regard to a Stock Unit once the Shares represented by the Stock Unit has been delivered. 

 

	11.	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS 

 The
Committee may, in its sole discretion, grant (or sell) an Unrestricted Stock Award to any Grantee pursuant to which such Grantee may receive Shares free of any restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards
may be granted or sold to any Grantee as provided in the immediately preceding sentence in respect of past or, if so provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future Service to the Company
or an Affiliate or other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee. To the extent required by Applicable Law, Grantees will be required to pay the par value of any Shares received pursuant to an
Award; provided, however, that, to the extent permitted by Applicable Law, par value shall be deemed paid by past Service or, if so provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future Service
to the Company or an Affiliate of the Company). 
 The Committee may, in its sole discretion, grant Awards to Grantees in the form of Other
Equity-Based Awards, as deemed by the Committee to be consistent with the purposes of the Plan. Awards granted pursuant to this Section 11 may be granted with vesting, value and/or payment contingent upon the attainment of one or more
performance goals. The Committee shall determine the terms and conditions of such Awards at the date of grant or thereafter. Unless the Committee otherwise provides in an Award Agreement or in writing after the Award Agreement is issued, upon the
termination of a Grantee’s Service, any Other Equity-Based Awards held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon
forfeiture of Other Equity-Based Awards, the Grantee shall have no further rights with respect to such Award. 
  

	12.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK 

 12.1 General Rule. 

Payment of the Option Price for the Shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock shall be
made in cash or in cash equivalents acceptable to the Company. 
 12.2 Surrender of Shares. 

To the extent the Award Agreement so provides, payment of the Option Price for Shares purchased pursuant to the exercise of an Option or the
Purchase Price for Restricted Stock may be made all or in part through the tender or attestation to the Company of Shares, which shall be valued, for purposes of determining the extent to which the Option Price or Purchase Price has been paid
thereby, at their Fair Market Value on the date of exercise or surrender, as applicable. 

  
 19 

 12.3 Cashless Exercise. 

With respect to an Option only (and not with respect to Restricted Stock), to the extent permitted by law and to the extent the Award
Agreement so provides, payment of the Option Price for Shares purchased pursuant to the exercise of an Option may be made all or in part (i) by delivery (on a form acceptable to the Committee) by the Grantee of an irrevocable direction to a
licensed securities broker acceptable to the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described in Section 19.3, or, (ii) with
the consent of the Company, by the Grantee electing to have the Company issue to Grantee only that the number of Shares equal in value to the difference between the Option Price and the Fair Market Value of the Shares subject to the portion of the
Option being exercised. 
 12.4 Other Forms of Payment. 

To the extent the Award Agreement so provides and/or unless otherwise specified in an Award Agreement, payment of the Option Price for Shares
purchased pursuant to exercise of an Option or the Purchase Price for Restricted Stock may be made in any other form that is consistent with Applicable Laws, regulations and rules, including, without limitation, net exercise. 

 

	13.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS 

 13.1 Dividend Equivalent Rights.

 A Dividend Equivalent Right is an Award entitling the recipient to receive credits based on cash distributions that would have been
paid on the Shares specified in the Dividend Equivalent Right (or other award to which it relates) if such Shares had been issued to and held by the recipient. A Dividend Equivalent Right may be granted hereunder to any Grantee, provided that no
Dividend Equivalent Rights may be granted in connection with, or related to, an Award of Options or SARs, and, provided, further, that to the extent such Dividend Equivalent Rights are provided with respect to an Award that vests or is earned based
upon the achievement of performance goals, any dividend equivalent amounts shall not be paid currently, but shall, instead, be paid (or, to the extent deemed reinvested into additional Shares or Share-based Awards, issued) only to the extent such
Award vest (with the Dividend Equivalent amount paid or issued, as the case may be, at the same time the cash is paid or Shares are issued at or after vesting of the Award). The terms and conditions of Dividend Equivalent Rights shall be specified
in the Award Agreement. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid in cash or may be deemed to be reinvested in additional Shares or Share-based Awards, which may thereafter accrue additional dividend
equivalents. Any such reinvestment shall be based on the Fair Market Value of a Share on the date the dividend was paid. 
 13.2
Termination of Service. 
 Except as may otherwise be provided by the Committee either in the Award Agreement or in writing after the
Award Agreement is issued, a Grantee’s rights in all Dividend Equivalent Rights or interest equivalents shall automatically terminate upon the Grantee’s termination of Service for any reason. 

  
 20 

	14.	TERMS AND CONDITIONS OF PERFORMANCE AWARDS AND ANNUAL INCENTIVE AWARDS 

 14.1 Grant
of Performance Awards and Annual Incentive Awards. 
 Subject to the terms and provisions of the Plan, the Committee, at any time and
from time to time, may grant Performance Awards and/or Annual Incentive Awards to a Plan participant in such amounts and upon such terms as the Committee shall determine. 

14.2 Value of Performance Awards and Annual Incentive Awards. 

Each Performance Award and Annual Incentive Award shall have an initial value that is established by the Committee at the time of grant. The
Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance Awards that will be paid out to the Plan participant. 

14.3 Earning of Performance Awards and Annual Incentive Awards. 

Subject to the terms of the Plan, after the applicable Performance Period has ended, the holder of Performance Awards or Annual Incentive
Awards shall be entitled to receive payout on the value and number of the Performance Awards or Annual Incentive Awards earned by the Plan participant over the Performance Period, to be determined as a function of the extent to which the
corresponding performance goals have been achieved. 
 14.4 Form and Timing of Payment of Performance Awards and Annual Incentive Awards.

 Payment of earned Performance Awards and Annual Incentive Awards shall be as determined by the Committee and as evidenced in the
Award Agreement. Subject to the terms of the Plan, the Committee, in its sole discretion, may pay earned Performance Awards in the form of cash or in Shares (or in a combination thereof) equal to the value of the earned Performance Awards at the
close of the applicable Performance Period, or as soon as practicable after the end of the Performance Period; provided that, unless specifically provided in the Award Agreement pertaining to the grant of the Award, such payment shall occur no later
than the 15th day of the third month following the end of the calendar year in which the Performance Period ends. Any Shares may be granted subject to any restrictions deemed appropriate by the Committee. The determination of the Committee with
respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award. 
 14.5
Performance Conditions. 
 The right of a Grantee to exercise or receive a grant or settlement of any Award, and the timing thereof, may
be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. 

  
 21 

 14.6 Performance Awards or Annual Incentive Awards Granted to Designated Covered Employees.

 If and to the extent that the Committee determines that a Performance or Annual Incentive Award to be granted to a Grantee who is
designated by the Committee as likely to be a Covered Employee should qualify as “qualified performance-based compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Award shall be contingent
upon achievement of pre-established performance goals and other terms set forth in this Section 14.6. 
 14.6.1 Performance
Goals Generally. 
 The performance goals for Performance or Annual Incentive Awards shall consist of one or more business criteria and
a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 14.6. Performance goals applicable to Awards intended to qualify as Performance-Based
Compensation shall be objective and shall otherwise meet the requirements of Code Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted by the Committee result in the achievement of
performance goals being “substantially uncertain.” The Committee may determine that such Awards shall be granted, exercised and/or settled upon achievement of any one performance goal or that two or more of the performance goals must be
achieved as a condition to the grant, exercise and/or settlement of such Awards. Performance goals may differ for Awards granted to any one Grantee or to different Grantees. 

14.6.2 Timing For Establishing Performance Goals. 

Performance goals applicable to Awards intended to qualify as Performance-Based Compensation shall be established not later than the earlier
of (i) 90 days after the beginning of any performance period applicable to such Awards and (ii) the day on which twenty-five percent (25%) of any performance period applicable to such Awards has expired, or at such other date as may
be required or permitted for “qualified performance-based compensation” under Code Section 162(m). 
 14.6.3 Settlement of
Awards; Other Terms. 
 Settlement of such Awards shall be in cash, Shares, other Awards or other property, in the discretion of the
Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Awards. The Committee shall specify the circumstances in which such Performance or Annual Incentive Awards shall be paid
or forfeited in the event of termination of Service by the Grantee prior to the end of a performance period or settlement of Awards. 

14.6.4 Performance Measures. 

The performance goals upon which the payment or vesting of a Performance or Annual Incentive Award to a Covered Employee that is intended to
qualify as Performance-Based Compensation shall be limited to the following Performance Measures, with or without adjustment: 
 (a) funds
from operations; 

  
 22 

 (b) adjusted funds from operations; 

(c) earnings before any one or more of the following: interest, taxes, depreciation, amortization and/or stock compensation; 

(d) operating (or gross) income or profit; 

(e) pretax income before allocation of corporate overhead and/or bonus; 

(f) operating efficiencies; 

(g) operating income as a percentage of net revenue; 

(h) return on equity, assets, capital, capital employed or investment; 

(i) after tax operating income; 

(j) net income; 
 (k) earnings
or book value per share; 
 (l) financial ratios; 

(m) cash flow(s); 
 (n) total
rental income or revenues; 
 (o) capital expenditures as a percentage of rental income; 

(p) total operating expenses, or some component or combination of components of total operating expenses, as a percentage of rental income;

 (q) stock price or total stockholder return, including any comparisons with stock market indices; 

(r) appreciation in or maintenance of the price of the common stock or any of our publicly-traded securities; 

(s) dividends; 
 (t) debt or
cost reduction; 
 (u) comparisons with performance metrics of peer companies; 

  
 23 

 (v) comparisons of our stock price performance to the stock price performance of peer companies;

 (w) strategic business objectives, consisting of one or more objectives based on meeting specified cost, acquisition or loan origination
targets, meeting or reducing budgeted expenditures, attaining division, group or corporate financial goals, meeting business expansion goals and meeting goals relating to loan origination, acquisitions, joint ventures or collaborations or
dispositions; 
 (x) economic value-added models; 

(y) loan portfolio performance measures; or 

(z) any combination of any of the foregoing. 

Business criteria may be (but are not required to be) measured on a basis consistent with U.S. Generally Accepted Accounting Principles. 

Any Performance Measure(s) may be expressed on an absolute and/or relative basis, may be based on or otherwise employ comparisons based on
internal targets, the performance of the Company, Subsidiary, and/or Affiliate or past performance or the past performance of any of the Company, Subsidiary, and/or Affiliate, operating units, business segments or divisions and/or the past or
current performance of other companies, and in the case of earnings based measures, may use or employ comparisons relating to capital, stockholders’ equity and/or shares outstanding, or to assets or net assets, as the Committee may deem
appropriate. The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Section 14. 

14.6.5 Evaluation of Performance. 

The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occur
during a Performance Period: (a) asset impairments or write-downs; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results;
(d) accruals for reorganization and restructuring programs; (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” appearing in the Company’s annual report to stockholders for the applicable year; (f) foreign exchange gains and losses, (g) the effect of adverse federal, governmental or regulatory action,
or delays in federal, governmental or regulatory action; and (h) any other event either not directly related to operations or not within the reasonable control of management. To the extent such inclusions or exclusions affect Awards to Covered
Employees that are intended to qualify as Performance-Based Compensation, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. 

14.6.6 Adjustment of Performance-Based Compensation. 

Awards that are intended to qualify as Performance-Based Compensation may not be adjusted upward. The Committee shall retain the discretion to
adjust such Awards downward, either on a formula or discretionary basis, or any combination as the Committee determines. 

  
 24 

 14.6.7 Board Discretion. 

In the event that applicable tax and/or securities laws change to permit Board discretion to alter the governing Performance Measures without
obtaining stockholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining stockholder approval provided the exercise of such discretion does not violate Code Sections 162(m) or 409A. In addition,
in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base
vesting on Performance Measures other than those set forth in Section 14.6.4. 
 14.7 Status of Awards Under Code
Section 162(m). 
 It is the intent of the Company that Awards under Section 14.6 granted to persons who are designated
by the Committee as likely to be Covered Employees within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning
of Code Section 162(m) and regulations thereunder. Accordingly, the terms of Section 14.6, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code
Section 162(m) and regulations thereunder. If any provision of the Plan or any agreement relating to such Awards does not comply or is inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such provision
shall be construed or deemed amended to the extent necessary to conform to such requirements. 
  

	15.	TERMS AND CONDITIONS OF LONG-TERM INCENTIVE UNITS 

 LTIP Units are intended to be
profits interests in the operating partnership affiliated with the Company, if any (such operating partnership, if any, the “Operating Partnership”), the rights and features of which, if applicable, will be set forth in the agreement of
limited partnership for the Operating Partnership (the “Operating Partnership Agreement”). Subject to the terms and provisions of the Plan and the Operating Partnership Agreement, the Committee, at any time and from time to time, may grant
LTIP Units to Plan participants in such amounts and upon such terms as the Committee shall determine. LTIP Units must be granted for service to the Operating Partnership. Each LTIP Unit awarded will be equivalent to an award of one Share for
purposes of reducing the number of Shares available under the Plan on a one-for-one basis pursuant to Section 4.3. 
 15.1 Vesting.

 Subject to Section 18, each LTIP Unit granted under the Plan shall vest at such times and under such conditions as shall
be determined by the Committee and stated in the Award Agreement. 
  

	16.	PARACHUTE LIMITATIONS 

 Unless the Grantee is party to a written agreement or other
legally enforceable contract that expressly addresses Code Section 280G or Code Section 4999 (in which case, the provisions in such agreement or contract relating to Code Section 280G and Code Section 4999 shall

  
 25 

 
control and the provisions in this Section 16 shall not be applicable to the Grantee), if the Grantee is a “disqualified individual,” as defined in Code Section 280G(c), then,
notwithstanding any other provision of the Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by a Grantee with the Company or an Affiliate (an “Other Agreement”) providing any right to
exercise, vesting, payment or benefit, and notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the
Grantee is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), any right to exercise, vesting, payment or benefit to the Grantee under the
Plan shall be reduced or eliminated: 
 (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account
all other rights, payments, or benefits to or for the Grantee under the Plan, all Other Agreements, and all Benefit Arrangements, would cause any exercise, vesting, payment or benefit to the Grantee under the Plan to be considered a “parachute
payment” within the meaning of Code Section 280G(b)(2) as then in effect (a “Parachute Payment”) and 
 (ii) if,
as a result of receiving such Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under the Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could
be received by the Grantee without causing any such payment or benefit to be considered a Parachute Payment. 
 The Company shall accomplish
such reduction by first reducing or eliminating any cash payments (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any accelerated vesting of Performance Awards, then by reducing or
eliminating any accelerated vesting of Options or SARs, then by reducing or eliminating any accelerated vesting of Restricted Stock or Stock Units, then by reducing or eliminating any other remaining Parachute Payments. 

 

	17.	REQUIREMENTS OF LAW 

 17.1 General. 

No participant in the Plan will be permitted to acquire, or will have any right to acquire, Shares thereunder if such acquisition would be
prohibited by any share ownership limits contained in charter or bylaws or would impair the Company’s status as a REIT. The Company shall not be required to offer, sell or issue any Shares under any Award if the offer, sale or issuance of such
Shares would constitute a violation by the Grantee, any other individual or entity exercising an Option, or the Company or an Affiliate of any provision of any law or regulation of any governmental authority, including without limitation any federal
or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the offering, listing, registration or qualification of any Shares subject to an Award upon any securities exchange or under any
governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of Shares hereunder, no Shares may be offered, issued or sold to the Grantee or any other individual or entity exercising an
Option pursuant to such Award unless such offering, listing, registration, qualification, consent or 

  
 26 

 
approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award.
Without limiting the generality of the foregoing, in connection with the Securities Act, upon the exercise of any Option or any SAR that may be settled in Shares or the delivery of any Shares underlying an Award, unless a registration statement
under such Act is in effect with respect to the Shares covered by such Award, the Company shall not be required to offer, sell or issue such Shares unless the Committee has received evidence satisfactory to it that the Grantee or any other
individual or entity exercising an Option or SAR or accepting delivery of such Shares may acquire such Shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Committee shall be final,
binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise
of an Option or a SAR or the issuance of Shares pursuant to the Plan to comply with any Applicable Laws. As to any jurisdiction that expressly imposes the requirement that an Option (or SAR that may be settled in Shares) shall not be exercisable
until the Shares covered by such Option (or SAR) are registered under the securities laws thereof or are exempt from such registration, the exercise of such Option (or SAR) under circumstances in which the laws of such jurisdiction apply shall be
deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 
 17.2 Rule 16b-3. 

During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intent of the
Company that Awards pursuant to the Plan and the exercise of Options and SARs granted hereunder that would otherwise be subject to Section 16(b) of the Exchange Act will qualify for the exemption provided by Rule 16b-3 under the Exchange Act.
To the extent that any provision of the Plan or action by the Committee does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative with respect to such Awards to the extent permitted by Applicable Law and deemed advisable by
the Committee, and shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify the Plan in any respect necessary to satisfy the requirements of, or to take advantage
of any features of, the revised exemption or its replacement. 
  

	18.	EFFECT OF CHANGES IN CAPITALIZATION 

 18.1 Changes in Shares. 

If the number of outstanding Shares is increased or decreased or the Shares are changed into or exchanged for a different number or kind of
Shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse stock split, spin-off, combination of share, exchange of shares, share dividend or other distribution payable in capital shares, or
other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which grants of Options and other Awards may be made under the Plan, including,
without limitation, the limits set forth in Section 6.2, shall be adjusted proportionately and accordingly by the Company in a manner deemed equitable by the Committee. In addition, the number and kind of shares for

  
 27 

 
which Awards are outstanding shall be adjusted proportionately and accordingly so that the proportionate interest of the Grantee immediately following such event shall, to the extent practicable,
be the same as immediately before such event. Any such adjustment in outstanding Options or SARs shall not change the aggregate Option Price or SAR Exercise Price payable with respect to shares that are subject to the unexercised portion of an
outstanding Option or SAR, as applicable, but shall include a corresponding proportionate adjustment in the Option Price or SAR Exercise Price per share. The conversion of any convertible securities of the Company shall not be treated as an increase
in shares effected without receipt of consideration. Notwithstanding the foregoing, in the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (including an extraordinary dividend but
excluding a non-extraordinary dividend of the Company) without receipt of consideration by the Company, the Company shall, in such manner as the Company deems appropriate, adjust (i) the number and kind of shares subject to outstanding Awards
and/or (ii) the exercise price of outstanding Options and Stock Appreciation Rights to reflect such distribution. 
 18.2
Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control. 
 Subject to
Section 18.3, if the Company shall be the surviving entity in any reorganization, merger, or consolidation of the Company with one or more other entities which does not constitute a Change in Control, any Option or SAR theretofore
granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number of Shares subject to such Option or SAR would have been entitled immediately following such reorganization, merger, or consolidation, with a
corresponding proportionate adjustment of the Option Price or SAR Exercise Price per share so that the aggregate Option Price or SAR Exercise Price thereafter shall be the same as the aggregate Option Price or SAR Exercise Price of the Shares
remaining subject to the Option or SAR immediately prior to such reorganization, merger, or consolidation. Subject to any contrary language in an Award Agreement evidencing an Award, or in another agreement with the Grantee, or otherwise set forth
in writing, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of the reorganization, merger or consolidation. In the event of a transaction described in this
Section 18.2, Performance Awards shall be adjusted (including any adjustment to the Performance Measures applicable to such Awards deemed appropriate by the Committee) so as to apply to the securities that a holder of the number of
Shares subject to the Performance Awards would have been entitled to receive immediately following such transaction. 
 18.3 Change in
Control in which Awards are not Assumed. 
 Except as otherwise provided in the applicable Award Agreement or in another agreement with
the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in Control in which outstanding Options, SARs, Stock Units, Dividend Equivalent Rights, Restricted Stock, LTIP Units or other Equity-Based Awards are not being
assumed or continued: 
 (i) in each case with the exception of any Performance Award, all outstanding Restricted Stock and LTIP Units
shall be deemed to have vested, all Stock Units shall be deemed to have vested and the Shares subject thereto shall be delivered, and all Dividend Equivalent Rights shall be deemed to have vested and the Shares subject thereto shall be delivered,
immediately prior to the occurrence of such Change in Control, and 

  
 28 

 (ii) either of the following two actions shall be taken: 

(A) fifteen (15) days prior to the scheduled consummation of a Change in Control, all Options and SARs outstanding hereunder shall
become immediately exercisable and shall remain exercisable for a period of fifteen (15) days, or 
 (B) the Committee may elect, in
its sole discretion, to cancel any outstanding Awards of Options, Restricted Stock, Stock Units, and/or SARs and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value (as determined by
the Committee acting in good faith), in the case of Restricted Stock or Stock Units, equal to the formula or fixed price per share paid to holders of Shares and, in the case of Options or SARs, equal to the product of the number of Shares subject to
the Option or SAR (the “Award Shares”) multiplied by the amount, if any, by which (I) the formula or fixed price per share paid to holders of Shares pursuant to such transaction exceeds (II) the Option Price or SAR Exercise Price
applicable to such Award Shares. 
 (iii) for Performance Awards denominated in Shares, Stock Units or LTIP Units, if less than half of the
Performance Period has lapsed, the Awards shall be converted into Restricted Stock or Stock Units assuming target performance has been achieved (or Unrestricted Stock if no further restrictions apply). If more than half the Performance Period has
lapsed, the Awards shall be converted into Restricted Stock or Stock Units based on actual performance to date (or Unrestricted Stock if no further restrictions apply). If actual performance is not determinable, then Performance Awards shall be
converted into Restricted Stock or Stock Units assuming target performance has been achieved, based on the discretion of the Committee (or Unrestricted Stock if no further restrictions apply). 

(iv) Other Equity Based Awards shall be governed by the terms of the applicable Award Agreement. 

With respect to the Company’s establishment of an exercise window, (i) any exercise of an Option or SAR during such fifteen (15)-day
period shall be conditioned upon the consummation of the event and shall be effective only immediately before the consummation of the event, and (ii) upon consummation of any Change in Control, the Plan and all outstanding but unexercised
Options and SARs shall terminate. The Committee shall send notice of an event that will result in such a termination to all individuals and entities that hold Options and SARs not later than the time at which the Company gives notice thereof to its
stockholders. 

  
 29 

 18.4 Change in Control in which Awards are Assumed. 

Except as otherwise provided in the applicable Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing,
upon the occurrence of a Change in Control in which outstanding Awards are being assumed or continued, the following provisions shall apply to such Award, to the extent assumed or continued: 

The Plan, Options, SARs, Stock Units, Restricted Stock and Other Equity-Based Awards theretofore granted shall continue in the manner and
under the terms so provided in the event of any Change in Control to the extent that provision is made in writing in connection with such Change in Control for the assumption or continuation of the Options, SARs, Stock Units, Restricted Stock and
Other Equity-Based Awards theretofore granted, or for the substitution for such Options, SARs, Stock Units, Restricted Stock and Other Equity-Based Awards for new common stock options and stock appreciation rights and new common stock units,
restricted stock and other equity-based awards relating to the stock of a successor entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number of shares (disregarding any consideration that is not common stock) and
option and stock appreciation rights exercise prices. 
 18.5 Adjustments 

Adjustments under this Section 18 related to Shares or securities of the Company shall be made by the Committee, whose
determination in that respect shall be final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by
rounding downward to the nearest whole share. The Committee shall determine the effect of a Change in Control upon Awards other than Options, SARs, Stock Units and Restricted Stock, and such effect shall be set forth in the appropriate Award
Agreement. The Committee may provide in the Award Agreements at the time of grant, or any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those described in Sections 18.1, 18.2,18.3
and 18.4. This Section 18 does not limit the Company’s ability to provide for alternative treatment of Awards outstanding under the Plan in the event of change in control events that do not constitute a Change in Control.

 18.6 No Limitations on Company. 

The making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets (including all or any part of the business or
assets of any Subsidiary or other Affiliate) or engage in any other transaction or activity. 
  

	19.	GENERAL PROVISIONS 

 19.1 Disclaimer of Rights. 

No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual or entity the right to remain in
the employ or Service of the Company or an Affiliate, or to interfere in any way with any contractual or other right or authority of the 

  
 30 

 
Company or an Affiliate either to increase or decrease the compensation or other payments to any individual or entity at any time, or to terminate any employment or other relationship between any
individual or entity and the Company or an Affiliate. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, in another agreement with the Grantee, or otherwise in
writing, no Award granted under the Plan shall be affected by any change of duties or position of the Grantee, so long as such Grantee continues to provide Service. The obligation of the Company to pay any benefits pursuant to the Plan shall be
interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan and Awards shall in no way be interpreted to require the Company to transfer any amounts to a
third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan. 

19.2 Nonexclusivity of the Plan. 

Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating
any limitations upon the right and authority of the Company to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular
individual or particular individuals) as it may determine to be desirable. 
 19.3 Withholding Taxes. 

The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any
federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to an Award or upon the issuance of any Shares upon the exercise of an Option or pursuant to an Award.
At the time of such vesting, lapse, or exercise, the Grantee shall pay in cash to the Company or an Affiliate, as the case may be, any amount that the Company or an Affiliate may reasonably determine to be necessary to satisfy such withholding
obligation; provided, that if there is a same-day sale of Shares subject to an Award, the Grantee shall pay such withholding obligation on the day on which such same-day sale is completed. Subject to the prior approval of the Company or an
Affiliate, which may be withheld by the Company or an Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company or an Affiliate to withhold Shares
otherwise issuable to the Grantee or (ii) by delivering to the Company or an Affiliate Shares already owned by the Grantee. The Shares so delivered or withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The
Fair Market Value of the Shares used to satisfy such withholding obligation shall be determined by the Company or an Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to
this Section 19.3 may satisfy his or her withholding obligation only with Shares that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of Shares that may be withheld
from any Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting, lapse of restrictions applicable to such Award or payment of Shares pursuant to such Award, as applicable, cannot exceed such number of
Shares having a Fair Market Value equal to the minimum statutory amount required by the Company or an Affiliate to be withheld and paid to 

  
 31 

 
any such federal, state or local taxing authority with respect to such exercise, vesting, lapse of restrictions or payment of Shares. Notwithstanding Section 2.20 or this
Section 19.3, for purposes of determining taxable income and the amount of the related tax withholding obligation pursuant to this Section 19.3, for any Shares subject to an Award that are sold by or on behalf of a Grantee on
the same date on which such shares may first be sold pursuant to the terms of the related Award Agreement, the Fair Market Value of such shares shall be the sale price of such shares on such date (or if sales of such shares are effectuated at more
than one sale price, the weighted average sale price of such shares on such date), so long as such Grantee has provided the Company or an Affiliate, or its designee or agent, with advance written notice of such sale. 

19.4 Captions. 
 The use
of captions in the Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement. 

19.5 Other Provisions. 

Each Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the
Committee, in its sole discretion. 
 19.6 Number and Gender. 

With respect to words used in the Plan, the singular form shall include the plural form, the masculine gender shall include the feminine
gender, etc., as the context requires. 
 19.7 Severability. 

If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any
jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 

19.8 Governing Law. 
 The
validity and construction of the Plan and the instruments evidencing the Awards hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the State of Maryland, other than any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of the Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction. 

19.9 Code Section 409A. 

The Company intends to comply with Code Section 409A, or an exemption to Code Section 409A, with regard to Awards hereunder that
constitute deferred compensation within the meaning of Code Section 409A, and the Plan and all Award Agreements shall be interpreted accordingly. To the extent that the Company determines that a Grantee would be subject to the additional twenty
percent (20%) tax imposed on certain nonqualified deferred compensation 

  
 32 

 
plans pursuant to Code Section 409A as a result of any provision of any Award granted under the Plan, such provision shall be deemed amended to the minimum extent necessary to avoid
application of such additional tax. The nature of any such amendment shall be determined by the Board. Notwithstanding anything to the contrary in this Plan or any Award Agreement, if a Grantee is deemed on the date of the Grantee’s termination
of employment to be a “specified employee” within the meaning of Code Section 409A(a)(2)(B), then, to the extent required by Code Section 409A, any payment or the provision of any benefit pursuant to an Award that is considered
deferred compensation under Code Section 409A and that is payable on account of such Grantee’s “separation from service” shall not be made or provided until the date which is the earlier of (i) the expiration of the six
(6)-month period measured from the date of such “separation from service,” and (ii) the date of the Grantee’s death. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this
Section 19.9 (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Grantee in a lump sum, and any remaining payments and benefits due under
this this Plan and any Award Agreement shall be paid or provided in accordance with the normal payment dates specified for them therein. 

*     *     * 

  
 33EX-10.5

 Exhibit 10.5 

JERNIGAN CAPITAL, INC. 

2015 EQUITY INCENTIVE PLAN 

RESTRICTED STOCK AGREEMENT 

Jernigan Capital, Inc., a Maryland corporation (the “Company”), hereby grants shares of its common stock, $0.01 par
value per share (“Common Stock”), to the Grantee named below, subject to the vesting and other conditions set forth below. Additional terms and conditions of the grant are set forth in this cover sheet and in the attachment
(collectively, the “Agreement”) and in the Company’s 2014 Equity Incentive Plan (as amended from time to time, the “Plan”). Capitalized terms used but not defined herein shall have the meanings given them in
the Plan.  
 Name of Grantee: 

Number of Restricted Shares of Common Stock (“Shares”): 

Grant Date: 
 Vesting Schedule:
Subject to your continuous Service and other limitations set forth in this Agreement and the Plan, 1/3 of the Shares shall vest on each annual anniversary of the Grant Date. 

By your signature below, you agree to all of the terms and conditions described herein, in the attached Agreement and in the Plan, a
copy of which is also attached. You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this cover sheet or Agreement should appear to be inconsistent. 

 

									
	Grantee:		 				Date:		 
			(Signature)						
									
	Company:		 				Date:		 
			(Signature)						
	Title:								

 Attachment 

This is not a stock certificate or a negotiable instrument. 

 JERNIGAN CAPITAL, INC. 

2015 EQUITY INCENTIVE PLAN 

RESTRICTED STOCK AGREEMENT 
  

			
	Restricted Stock		This Agreement evidences an award of Shares in the number set forth on the cover sheet and subject to the vesting and other conditions set forth herein, in the Plan and on the cover sheet (the “Restricted
Stock”).
		
	Transfer of Unvested Restricted Stock		Except as authorized by the Committee in writing, unvested Restricted Stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered, whether by operation of law or otherwise, nor may the Restricted
Stock be made subject to execution, attachment or similar process. If you attempt to do any of these things without the Committee’s written authorization, the Restricted Stock will immediately become forfeited.
		
	Issuance and Vesting		The Company will issue your Restricted Stock in the name set forth on the cover sheet.
		
			Your rights under this Restricted Stock grant and this Agreement shall vest in accordance with the vesting schedule set forth on the cover sheet so long as you continue in Service through the vesting dates set forth on the cover
sheet.
		
	Change in Control		Notwithstanding the vesting schedule set forth above, upon the consummation of a Change in Control, the Restricted Stock will become 100% vested.
		
	Evidence of Issuance		The issuance of the Shares under the grant of Restricted Stock evidenced by this Agreement shall be evidenced in such a manner as the Company, in its discretion, deems appropriate, including, without limitation, book-entry, direct
registration or issuance of one or more share certificates, with any unvested Restricted Stock bearing the appropriate restrictions imposed by this Agreement. As your interest in the Restricted Stock vests, the recordation of the number of
Restricted Stock attributable to you will be appropriately modified if necessary.
		
	Forfeiture of Unvested Restricted Stock		Unless the termination of your Service triggers accelerated vesting of your Restricted Stock or other treatment pursuant to the terms of this Agreement, the Plan, or any other written agreement between the Company or any Affiliate
and you, you will automatically forfeit to the Company all of the unvested Restricted Stock in the event you are no longer providing Service.
		
	Withholding Taxes		You agree as a condition of this grant that you will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the vesting or receipt of the Restricted Stock. In the event that
the

			
		
			Company or any Affiliate determines that any federal, state, local or foreign tax or withholding payment is required relating to the vesting or receipt of Shares arising from this grant, the Company or any Affiliate shall have the
right to require such payments from you, or withhold such amounts from other payments due to you from the Company or any Affiliate (including withholding the delivery of vested Shares otherwise deliverable under this Agreement).
		
	Retention Rights		This Agreement and the grant evidenced hereby do not give you the right to be retained by the Company or any Affiliate in any capacity. Unless otherwise specified in a written agreement between the Company or any Affiliate and you,
the Company or any Affiliate reserves the right to terminate your Service at any time and for any reason.
		
	Stockholder Rights		You will be entitled to receive all dividends or other distributions made on outstanding Shares[; provided, that, any cash dividends will be paid in an amount of Restricted Stock equal to the per-share dividend paid on the
Restricted Stock that you hold as of the record date for such dividend, which shall be subject to the same vesting, forfeiture and other conditions as the associated Restricted Stock]. No adjustments are made for dividends or other rights if the
applicable record date occurs before an appropriate book entry is made (or your certificate is issued), except as described in the Plan.
		
			Your grant shall be subject to the terms of any applicable agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.
		
	Legends		If and to the extent that the Shares are represented by certificates rather than book entry, all certificates representing the Shares issued under this grant shall, where applicable, have endorsed thereon the following
legends:
		
			 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SHARES, SUCH OFFER, SALE OR
TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.
  
 THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING, FORFEITURE AND OTHER RESTRICTIONS ON TRANSFER. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY
BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”

			
		
			To the extent the Shares are represented by a book entry, such book entry will contain an appropriate legend or restriction similar to the foregoing.
		
	Clawback		If the Company adopts a “clawback” or recoupment policy, this Award will be subject to repayment to the Company to the extent so provided under the terms of such policy.
		
	Applicable Law		This Agreement will be interpreted and enforced under the laws of the State of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the
substantive law of another jurisdiction.
		
	The Plan		The text of the Plan is incorporated in this Agreement by reference.
		
			Certain capitalized terms used in this Agreement are defined in the Plan, and have the meaning set forth in the Plan.
		
			This Agreement and the Plan constitute the entire understanding between you and the Company regarding this grant; except that any written employment, consulting, confidentiality, non-competition, non-solicitation and/or severance
agreement between you and the Company or any Affiliate shall supersede this Agreement with respect to its subject matter. Any other prior agreements, commitments or negotiations concerning this grant are superseded.
		
	Corporate Activity		Your grant shall be subject to the terms of any applicable agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.
		
	Data Privacy		In order to administer the Plan, the Company may process personal data about you. Such data includes, but is not limited to, information provided in this Agreement and any changes thereto, other appropriate personal and financial
data about you such as your contact information, payroll information and any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan.
		
			By accepting this grant, you give explicit consent to the Company to process any such personal data.
		
	Code Section 409A		It is intended that this Award comply with Code Section 409A or an exemption to Code Section 409A. To the extent that the Company determines that you would be subject to the additional 20% tax imposed on certain non-qualified
deferred compensation plans pursuant to Code Section 409A as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to

			
		
			avoid application of such additional tax. The nature of any such amendment shall be determined by the Company. For purposes of this Award, a termination of Service only occurs upon an event that would be a Separation from Service
within the meaning of Code Section 409A.

 By signing this Agreement, you agree to all of the terms and conditions described above and in the Plan.

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