Document:

Investor Rights Agreement

 EXHIBIT 4.2 
  
 BELVEDERE TRUST MORTGAGE CORPORATION 
  
 INVESTOR RIGHTS AGREEMENT 
  
 THIS INVESTOR RIGHTS AGREEMENT is made as of November 3, 2003 by and among Belvedere Trust Corporation, a Maryland corporation (the
“Company”), and Anworth Mortgage Asset Corporation, a Maryland corporation (“Anworth”). 
  
 R E C I T A L S : 
  
 WHEREAS, the Company and Anworth are entering into that certain Series A Convertible Preferred Stock Purchase Agreement
dated of even date herewith (the “Purchase Agreement”) providing for, among other things, the sale by the Company and the purchase by Anworth of shares of the Company’s Series A Convertible Preferred Stock, par value $0.001 per
share (the “Series A Preferred”); 
  
 WHEREAS,
the sale of the Series A Preferred to Anworth is conditioned upon the rights set forth herein, including the registration rights set forth herein, being extended to Anworth and the Company desires to extend such rights herein. 
  
 NOW THEREFORE, in consideration of the foregoing, the parties agree as
follows: 
  
 1. Registration Rights. 
  
 1.1. Certain Definitions. As used in this Agreement, the following
terms shall have the following respective meanings: 
  
 “Affiliate” of any person or entity shall mean any other Person or entity which, directly or indirectly, controls, is controlled by or is under common control with such Person or entity. 
  
 “Blue Sky Laws” shall mean state securities laws and
applicable regulations. 
  
 “Board of Directors”
shall mean the Board of Directors of the Company. 
  
 “Commission” shall mean the Securities and Exchange Commission of the United States or any other U.S. federal agency at the time administering the Securities Act. 
  
 “Common Stock” shall mean the Common Stock of the Company,
par value $0.001 per share. 
  
 “Exchange Act”
shall have the meaning set forth in Section 1.10(a). 
  
 “Excluded Securities” shall have the meaning set forth in Section 3.1. 
  
 “GAAP” shall have the meaning set forth in Section 2.1(a). 

 “Holder” shall mean Anworth (and any of its transferees as permitted by Section 1.11)
holding Registrable Securities or securities convertible into or exercisable for Registrable Securities. 
  
 “Indemnified Party” shall have the meaning set forth in Section 1.8(c). 
  
 “Indemnifying Party” shall have the meaning set forth in Section 1.8(c). 
  
 “Market Stand-Off Period” shall have the meaning set forth
in Section 1.12. 
  
 “Preferred Holders” shall
mean Holders who hold or hereafter acquire shares of the Preferred Stock. 
  
 “Preferred Stock” shall mean the Series A Preferred. 
  
 “Registrable Securities” shall mean any Common Stock outstanding and held by any Holder or any Common Stock hereafter acquired by any
Holder issued or issuable on conversion of any Series A Preferred now held or hereafter acquired by any Holder, excluding shares of Common Stock that have been (A) sold to or through a broker or dealer or underwriter in a public distribution or a
public securities transaction, including, but not limited to, a registration pursuant to which such shares have been disposed of in accordance with the registration statement covering them, (B) distributed to the public pursuant to Rule 144 (or any
similar rule then in force) under the Securities Act, or (C) sold or transferred in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act so that a new certificate(s) or other evidence of ownership for
such shares not bearing restrictive legends have been delivered and no other restrictions on transfer exist. 
  
 The terms “register,” “registered” and “registration” refer to a registration effected by preparing and
filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement. 
  
 “Registration Expenses” shall mean all expenses, excluding Selling Expenses (as defined below) except as otherwise stated below, incurred
by the Company in complying with Sections 1.2, 1.3 and 1.4 hereof, including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, the reasonable fees
and expenses, not to exceed $50,000, of one counsel for Anworth (selected by Anworth), the fees and expenses of the independent accountants for the Company and Blue Sky fees and expenses. Registration Expenses specifically shall exclude Selling
Expenses and the fees and disbursements of any additional counsel representing any other holder of the Company’s securities, all of which shall be borne by such other holder in all cases. 
  
 “Registration Notice” shall have the meaning set forth in
Section 1.2. 
  
 “Securities Act” shall mean the
Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder, or any similar United States federal statute. 
  
 “Selling Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the securities
registered by Holders and any fees, expenses or other disbursements of any underwriter or agent acting on behalf of any Holders. Such expenses shall be borne by the Holders or the underwriter or agent, as agreed between the Holders and the
underwriter or agent. 
  

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 “Shelf Registration Statement” shall mean a registration statement of the Company (and
any other entity required to be a registrant with respect to such registration statement pursuant to the requirements of the Securities Act) that covers all of the Registrable Securities to be offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments (including post-effective amendments) to such registration statement, and all exhibits thereto and materials incorporated by reference therein.

  
 1.2. Requested Registrations. 
  
 (a) Request for Registration. In the event the Company shall receive
from Anworth a written request that the Company effect any registration with respect to not less than ten percent (10%) of the then outstanding Registrable Securities with an anticipated aggregate offering price, net of any underwriting discounts
and commissions, in excess of One Million dollars ($1,000,000) (a “Registration Notice”), the Company will, as soon as reasonably practicable, use its best efforts to effect such registration (including, without limitation,
appropriate qualification under applicable Blue Sky Laws or other state securities laws and appropriate compliance with applicable regulations issued under the Securities Act and any other governmental requirements or regulations) as may be
requested and as would permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request. Notwithstanding the foregoing, the Company shall not be obligated to take any action to
effect any such registration pursuant to this Section 1.2: 
  
 (A) In any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company already is subject to service in
such jurisdiction and except as may be required by the Securities Act; 
  
 (B) Prior to the earlier of (i) November 3, 2008 or (ii) six (6) months after the effective date of the Company’s first registered public offering of its stock (the “Initial Public Offering”); 
  
 (C) During the period starting with the date sixty (60) days prior to the
Company’s estimated date of filing of, and ending on the date six (6) months immediately following the effective date of, any registration statement pertaining to securities of the Company sold by the Company (other than a registration of
securities in a Rule 145 transaction or with respect to an employee benefit plan), provided that the Company is employing in good faith all reasonable efforts to cause such registration statement to become effective; 
  
 (D) After the Company has effected two (2) registrations pursuant to this
Section 1.2, and such registrations have been declared or ordered effective; or 
  
 (E) If the Company shall furnish to Anworth a certificate signed by an officer of the Company stating that, in the good faith judgment of the 
  

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 Board of Directors (excluding for all purposes the vote of any member of the Board of Directors who is a representative
or Affiliate of Anworth), (i) it would be detrimental to the Company or its shareholders for a registration statement to be filed in the near future, or (ii) that a material event has occurred that has not been disclosed publicly and, if disclosed,
would have a detrimental effect on the Company or its ability to consummate the offering under the registration requested hereunder, then the Company’s obligation to use its best efforts to register under this Section 1.2 shall be deferred for
a period not to exceed ninety (90) days from the date of receipt of written request from Anworth, provided, however, that the Company shall not utilize this right more than once in any twelve (12) month period. 
  
 Subject to the foregoing clauses (A) through (E), the Company shall file a
registration statement covering the Registrable Securities so requested to be registered as soon as practicable, after receipt of the request of Anworth, but in no event shall the Company be required to file any such registration statement sooner
than forty-five (45) days following such request. 
  
 (b)
Underwriting. In the event that a registration pursuant to this Section 1.2 is for a registered public offering involving an underwriting, the right of Anworth to registration pursuant to Section 1.2 shall be conditioned upon Anworth’s
participation in the underwriting arrangements required by this Section 1.2, and the inclusion of Anworth’s Registrable Securities in the underwriting to the extent requested shall be limited to the extent provided herein. The Company and
Anworth shall enter into an underwriting agreement in customary form with the managing underwriter selected for such underwriting by the Company. 
  
 1.3. Company Registrations. 
  
 (a) Notice of Registration. If at any time or from time to time the Company shall determine to register any of its securities, either for its own
account or the account of a security holder or holders, other than (i) a registration relating solely to stock option or other employee benefit plans, (ii) a registration relating solely to a Commission Rule 145 transaction, or (iii) a registration
on Form S-4 or Form S-8 or any form substituted therefor, the Company will: 
  
 (i) promptly give to Anworth written notice thereof pursuant to Section 6.2 hereof; and 
  
 (ii) include in such registration (and any related qualification under Blue Sky Laws or other compliance), and in any underwriting involved therein, all
the Registrable Securities specified in a written request or requests received by the Company from Anworth within fifteen (15) days after Anworth’s receipt of such written notice from the Company. 
  
 (b) Underwriting. If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the Company so shall advise Anworth as a part of the written notice given pursuant to Section 1.3(a)(i). In such event the right of Anworth to registration pursuant to this
Section 1.3 shall be conditioned upon Anworth’s participation in such underwriting and the inclusion of Registrable Securities in the underwriting to the extent provided herein. If Anworth proposes to distribute its securities through such
underwriting, Anworth shall enter, together with the Company, into an underwriting agreement in customary form with the managing underwriter selected for such underwriting by the 
  

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 Company. Notwithstanding any other provision of this Section 1.3, if the managing underwriter determines that marketing
factors require a limitation of the number of shares to be underwritten, the managing underwriter may limit the Registrable Securities and other securities to be included in such registration. The Company shall so advise Anworth, and the number of
shares that may be included in the registration and underwriting shall be allocated, first, to the Company, and second to Anworth. To facilitate the allocation of shares in accordance with the above provisions, the Company may round the number of
shares allocated to Anworth to the nearest one hundred (100) shares. If Anworth desires to withdraw from the registration, it may only do so during the period of time and on the terms agreed to by Anworth, the Company and the managing underwriter.
Any securities excluded or withdrawn from such underwriting shall be withdrawn from such registration, and shall not be transferred in a public distribution prior to one hundred eighty (180) days after the effective date of the registration
statement relating thereto, or such other shorter period of time as the underwriters may require pursuant to Section 1.12. 
  
 (c) Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section
1.3 prior to the effectiveness of such registration whether or not Anworth has elected to include Registrable Securities in such registration; provided, however, if Anworth elect to use their demand registration right, pursuant to Section 1.2
hereof, then such registration shall be governed by Section 1.2 and it shall not be terminated, except as set forth in Section 1.2(a). 
  
 1.4. Shelf Registration. 
  
 (a) Filing of Shelf Registration Statement. The Company shall cause to be filed upon the earlier to occur of (i) the six-month anniversary of the
Company’s Initial Public Offering, and (ii) the fifth anniversary of the date of this Agreement, or as soon as practicable thereafter, the Shelf Registration Statement providing for the sale by Anworth of all of the Registrable Securities in
accordance with the terms hereof and will use its best efforts to cause such Shelf Registration Statement to be declared effective by the SEC as soon thereafter as is practicable. The Company agrees to use its reasonable efforts to keep the Shelf
Registration Statement with respect to the Registrable Securities continuously effective for a period expiring on the earlier of (i) the date on which all of the Registrable Securities covered by the Shelf Registration Statement have been sold
pursuant thereto and (ii) the date on which (A) all Shares held by Anworth, in the opinion of counsel for Anworth, which counsel shall be reasonably acceptable to the Company, are eligible for sale pursuant to Rule 144 under the Securities Act and
could be sold in one transaction in accordance with the volume limitations contained in Rule 144(e)(1)(i) under the Securities Act. Subject to Sections 1.4(b), the Company further agrees to amend the Shelf Registration Statement if and as required
by the rules, regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement or by the Securities Act or any rules and regulations thereunder. The substantive provisions of Section 1.2(b)
shall be applicable to each such registration initiated under this Section 1.4 involving an underwriting. 
  
 (b) Limitations. Notwithstanding the foregoing, the Company shall not be obligated to take any action pursuant to this Section 1.4: 
  
 (i) in any particular jurisdiction in which the Company would be required
to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act; 
  

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 (ii) within a six (6) month period immediately following the effective date of any registration
statement pertaining to securities of the Company (other than a registration of securities in a Rule 145 transaction or with respect to a stock option or other employee benefit plan); 
  
 (iii) if the Company shall furnish to Anworth a certificate signed by an officer of the Company stating that in the good
faith judgment of the Board of Directors (excluding for all purposes the vote of any member of the Board of Directors who is a representative or Affiliate of Anworth) (i) it would be detrimental to the Company or its shareholders for a registration
statement to be filed in the near future, or (ii) that a material event has occurred that has not been disclosed publicly and, if disclosed, would have a detrimental effect on the Company or its ability to consummate the offering under the
registration requested hereunder, then the Company’s obligation to use its best efforts to file a registration statement shall be deferred for a period not to exceed ninety (90) days from the receipt of the request to file such registration by
such Holder; provided, however, that the Company shall not utilize this right more than once in any twelve (12)-month period. 
  
 1.5. Limitations on Subsequent Registration Rights. From and after the date hereof, the Company will not enter into any agreement with any holder
or prospective holder of the Company’s securities which agreement is in conflict with the provisions hereof or which grants any holder or prospective holder of the Company’s securities registration rights which are senior to or pari
passu with those granted to Anworth herein. 
  
 1.6.
Expenses of Registration. 
  
 (a) Registration
Expenses. The Company shall bear all Registration Expenses incurred in connection with all registrations pursuant to Sections 1.2, 1.3 and 1.4. In the event Anworth withdraws a Registration Notice, abandons a registration statement or, following
an effective registration pursuant to Section 1.2 hereof, does not sell Registrable Securities, then all Registration Expenses in respect of such Registration Notice shall be borne, at Anworth’s option, either by Anworth or by the Company (in
which case, if borne by the Company, such withdrawn or abandoned registration shall be deemed to be an effective registration for-purposes of Section 1.2(a)(ii)(D) hereof). 
  
 (b) Selling Expenses. All Selling Expenses relating to securities registered on behalf of Anworth shall be borne by
Anworth. 
  
 1.7. Registration and Qualification. If and
whenever the Company is required to use its best efforts to effect the registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company will as promptly as is practicable: 
  
 (a) prepare and file with the Commission, within the time frame set forth
in the last of Section 1.2(a) hereof or the first paragraph of Section 1.4 hereof, as applicable, and use its best efforts to cause to become effective, a registration statement under the Securities Act relating to the Registrable Securities to be
offered on such form as Anworth, or if not filed pursuant to Section 1.2 or Section 1.4 hereof, the Company, determines and for which the Company then qualifies; 
  

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 (b) prepare and file with the Commission such amendments (including post-effective amendments) and
supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the disposition of
all Registrable Securities until (i) in the case of a Registration Statement filed pursuant to Section 1.2 hereof, the earlier of such time as all of such Registrable Securities have been disposed of in accordance with the intended methods of
disposition set forth in such registration statement or the expiration of ninety (90) days after such registration statement becomes effective; provided that such ninety (90) day period shall be extended in the case of a registration pursuant to
Section 1.2 hereof for such number of days that equals the number of days elapsing from (A) the date the written notice contemplated by Section 1.7(f) hereof is given by the Company to (B) the date on which the Company delivers to the Selling
Holders the supplement or amendment contemplated by Section 1.7(f) hereof; or (ii) in the case of a Registration Statement filed pursuant to Section 1.4 hereof; until the expiration of the time periods set forth therein; 
  
 (c) furnish to Anworth and to any underwriter of Registrable Securities such
number of conformed copies of such registration statement and of each such amendment and supplement thereto (in each case including all exhibits), such number of copies of the prospectus included in such registration statement (including each
preliminary prospectus and any summary prospectus), in conformity with the requirements of the Securities Act, such documents incorporated by reference in such registration statement or prospectus, and such other documents, as Anworth or such
underwriter reasonably may request; 
  
 (d) make every reasonable
effort to obtain the withdrawal of any order suspending the effectiveness of such registration statement at the earliest possible moment; 
  
 (e) if requested by Anworth, (i) furnish to Anworth an opinion of counsel for the Company addressed to Anworth and dated the date of the closing under
the underwriting agreement (if any) (or if such offering is not underwritten, dated the effective date of the registration statement), and (ii) use its best efforts to furnish to Anworth a “comfort” or “special
procedures” lever addressed to Anworth and signed by the independent public accountants who have audited the Company’s financial statements included in such registration statement, in each such case covering substantially the same
matters with respect to such registration statement (and the prospectus included therein) as are customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten public offerings of
securities and such other matters as Anworth reasonably may request and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements; 
  
 (f) notify Anworth in writing (i) at any time when a prospectus relating to
a registration hereunder is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material
fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (ii) of any request by the Commission or any other
regulatory body or other body having jurisdiction for any amendment 
  

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 of or supplement to any registration statement or other document relating to such offering, and in either such case (i)
or (ii) at the request of Anworth prepare and furnish to Anworth a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable
Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they are made,
not misleading; 
  
 (g) use its best efforts to list all such
Registrable Securities covered by such registration statement on each securities exchange and inter-dealer quotation system on which a class of common equity securities of the Company is then listed, and to pay all fees and expenses in connection
therewith; and 
  
 (h) upon the transfer of shares by Anworth in
connection with a registration hereunder, furnish unlegended certificates representing ownership of the Registrable Securities being sought in such denominations as shall be requested by Anworth or the underwriters. 
  
 1.8. Indemnification. 
  
 (a) By Company. To the extent permitted by law, the Company will
indemnify and hold harmless Anworth, each of its officers and directors and partners, and each person controlling Anworth within the meaning of Section 15 of the Securities Act, with respect to which registration has been effected pursuant to this
Agreement against all expenses, claims, losses, damages or liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened, arising out of or based on any untrue statement
(or alleged untrue statement) of a material fact contained in any registration statement or prospectus included within such registration statement or any amendment or supplement thereto, incident to any such registration, or based on any omission
(or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or any violation by the Company of the
Securities Act or any rule or regulation promulgated under the Securities Act applicable to the Company in connection with any such registration. The Company will reimburse Anworth, each of its officers, directors and partners, and each person
controlling Anworth, for any legal and any other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, provided that the Company will not be liable in any such case
to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission or alleged untrue statement or omission, made in reliance upon and in conformity with written information furnished
to the Company by Anworth or controlling person specifically for use therein. If Anworth is represented by counsel other than counsel for the Company, the Company will not be obligated under this Section 1.8(a) to reimburse legal fees and expenses
of more than one separate counsel for Anworth. The Company will also indemnify underwriters participating in the distribution, and each person who controls such underwriters within the meaning of Section 16 of the Securities Act, to the same extent
customarily requested by such persons in similar circumstances. 
  
 (b) By Anworth. To the extent permitted by law, Anworth will indemnify and hold harmless the Company, each of its directors and officers, each underwriter, if 
  

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 any, of the Company’s securities covered by such a registration statement, and each person who controls the Company
or such underwriter within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a
material fact contained in any such registration statement, prospectus, offering circular or other document, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, and will reimburse the Company, such directors, officers, underwriters or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage,
liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other
document in reliance upon and in conformity with written information furnished to the Company by an instrument duly executed by Anworth and stated to be specifically for use therein. Notwithstanding the foregoing, the liability of Anworth under this
subsection (b) shall be limited in an amount equal to the net proceeds from the shares sold by Anworth, unless such liability arises out of or is based on willful misconduct by Anworth. The Company also shall be entitled to receive indemnities from
underwriters participating in the distribution to the same extent as customarily furnished by such persons in similar circumstances. 
  
 (c) Procedure for Indemnification. Each party indemnified under paragraph (a) or (b) of this Section 1.8 (the “Indemnified
Party”) promptly (but in any event no more than fifteen (15) days) after receipt of notice of any claim or the commencement of any action against such Indemnified Party in respect of which indemnity may be sought, shall notify the party
required to provide indemnification (the “Indemnifying Party”) in writing of the claim or the commencement thereof, providing reasonable detail of such claim or action together with copies of all correspondence received by the
Indemnified Party in connection therewith; provided that the failure of the Indemnified Party to notify the Indemnifying Party within the time period required shall not relieve the Indemnifying Party from any liability which it may have to an
Indemnified Party on account of the indemnity agreement contained in paragraph (a) or (b) of this Section 1.8, unless the Indemnifying Party was prejudiced materially by such failure, and in no event shall relieve the Indemnifying Party from any
other liability which it may have to such Indemnified Party. If any such claim or action shall be brought against an Indemnified Party, it shall notify the Indemnifying Party thereof in writing within the time period required above and the
Indemnifying Party shall be entitled to participate therein, and, to the extent that it wishes, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified
Party of its election to assume the defense of such claim or action, the Indemnifying Party shall not be liable (except to the extent the proviso to this sentence is applicable, in which event it will be so liable) to the Indemnified Party under
this Section 1.8 for any legal or other expenses subsequently incurred by the Indemnified Patty in connection with the defense thereof; provided that each Indemnified Party shall have the right to employ separate counsel to represent it and assume
its defense (in which case, the Indemnifying Party shall not represent it) if (i) upon the written advice of counsel that the representation of both parties by the same counsel would cause an actual and material conflict of interest between them, or
(ii) in the event the Indemnifying Party has not assumed the defense thereof within fifteen (15) business days of receipt of written notice of such claim or commencement of action, and in which case the fees and expenses of one such separate counsel
for all Indemnified Parties reasonably acceptable to the Indemnifying Party 
  

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 shall be paid by the Indemnifying Party. If the Indemnified Parties employ such separate counsel they will not enter into
any settlement agreement without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld. If the Indemnifying Party so assumes the defense thereof, it may not agree to any settlement of any such claim or
action as the result of which any remedy or relief (other than monetary damages for which the Indemnifying Party shall be responsible hereunder) shall be applied to or against the Indemnified Party, without the prior written consent of the
Indemnified Party, which consent shall not be unreasonably withheld. In any action hereunder as to which the Indemnifying Party has assumed the defense thereof with counsel reasonably satisfactory to the Indemnified Party, the Indemnified Party
shall continue to be entitled to participate in the defense thereof, with counsel of its own choice, and, except as set forth above, at its sole expense, and the Indemnifying Party shall not be obligated hereunder to reimburse the Indemnified Party
for the fees and costs thereof. 
  
 (d) Contribution. If
the indemnification provided for in this Section 1.8 shall for any reason be held to be unenforceable by a court of competent jurisdiction although applicable in accordance with its terms to an Indemnified Party in respect of any loss, claim, damage
or liability, or any action in respect thereof, in lieu of indemnifying such Indemnified Party, each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability, or
action in respect thereof, in such proportion as shall be appropriate to reflect the relative fault of the Indemnifying Party on the one hand and the Indemnified Party on the other with respect to the statements or omissions which resulted in such
loss, claim, damage or liability, or action in respect thereof, as well as any other relevant equitable considerations. The relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to (i) information supplied specifically for use in any registration statement, prospectus, offering circular or other similar document by the Indemnifying Party on the one hand or the
Indemnified Party on the other, (ii) the intent of the parties and their relative knowledge, (iii) access to information and (iv) opportunity to correct or prevent such statement or omission, but not by reference to any Indemnified Party’s
stock ownership in the Company. In no event, however, shall Anworth be required to contribute in excess of the amount of the net proceeds received by Anworth in connection with the sale of Registrable Securities in the offering which is the subject
of such loss, claim, damage or liability. The amount paid or payable by an Indemnified Party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in this paragraph shall be deemed to include, for
purposes of this paragraph, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of
Section 12(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 1.8, each officer of the Company who signed a registration statement
relating to the offering to which any losses, claims, damages or liabilities or actions relate, and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, shall have the same rights to contribution as
the Company. 
  
 (e) Survival. The obligations of the
Company and Anworth under this Section 1.8 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise. 
  

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 1.9. Information by Anworth. If Anworth is including any Registrable Securities in any
registration, Anworth promptly shall furnish to the Company in writing such information regarding Anworth as shall be necessary to enable the Company to comply with the provisions hereof in connection with any registration, qualification or
compliance referred to in this Agreement. 
  
 1.10. Rule 144
Reporting. With a view to making available the benefits of certain rules and regulations of the Commission which may at any time permit the sale of the Restricted Securities to the public without registration, after such time as a public market
exists for the Common Stock of the Company, the Company agrees to use its best efforts to: 
  
 (a) Make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the effective date that the Company becomes subject to the reporting
requirements of the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”); 
  
 (b) File with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at
any time after it has become subject to such reporting requirements); and 
  
 (c) Furnish to Anworth forthwith upon prior written request (i) a written statement by the Company as to its compliance with the reporting requirements of Rule 144 (at any time ninety (90) days after the effective
date of the first registration statement filed by the Company for an offering of its securities to the general public), and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), (ii) a
copy of the most recent annual or quarterly report of the Company, and (iii) such other reports and documents of the Company and other information in the possession of or reasonably obtainable by the Company as Anworth may reasonably request in
availing itself of any rule or regulation of the Commission allowing Anworth to sell any such securities without registration. 
  
 1.11. Transfer of Registration Rights. The rights to cause the Company to register securities granted Anworth under Sections 1.2, 1.3 and 1.4 may
be assigned in connection with any transfer or assignment by Anworth of Registrable Securities provided that: (a) such transfer may otherwise be effected in accordance with applicable securities laws; (b) such transfer is effected in compliance with
the restrictions on transfer contained in this Agreement and in any other agreement between the Company and Anworth; and (c) such assignee or transferee agrees in writing to be bound by the terms of this Agreement and assumes all of the obligations
of Anworth hereunder. No transfer or assignment will divest Anworth or any subsequent owner of such rights and powers unless all Registrable Securities are transferred or assigned. 
  
 1.12. Market Stand-Off Agreement. Anworth hereby agrees that, for so long as such Holder holds at least one percent
(1.0%) of the then outstanding voting securities of the Company, during the period of duration specified by the Company or, if applicable, an underwriter of Common Stock or other securities of the Company, following the date of the first sale to the
public pursuant to a registration statement of the Company filed under the Act (“Market Stand-Off Period”), it shall not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to sell,
contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to 
  

 -11- 

 donees who consent in writing to be similarly bound) any securities of the Company held by it at any time during such
period, except Common Stock included in such registration; provided, however, that: 
  
 (a) such Market Stand-Off Period shall be applicable only to the first two (2) such registration statements of the Company which cover Common Stock (or other securities) to be sold on its behalf to the public in an
underwritten offering; 
  
 (b) all officers and directors of the
Company and all other persons with registration rights (whether or not pursuant to this Agreement) enter into similar agreements; and 
  
 (c) such Market Stand-Off Period shall not: (i) exceed one hundred eighty (180) days in connection with the first registration statement of the Company,
which covers Common Stock or other securities to be sold on its behalf to the public; and (ii) exceed ninety (90) days with respect to any subsequent registration statement. 
  
 Notwithstanding the foregoing, the obligations described in this Section 1.12 shall not apply to a registration relating
solely to employee benefit plans on Form S-8 or similar forms which may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4, Form S-14 or Form S-15 or similar forms which may be
promulgated in the future. 
  
 This Section 1.12 shall be binding
on all transferees or assignees of Registrable Securities, whether or not such persons are entitled to registration rights pursuant to Section 1.11, and if requested by the Company, any such transferee or assignee shall confirm in writing its
agreement to be bound by the provisions hereof. 
  
 1.13.
Termination of Registration Rights. Except for the provisions of Section 1.12, the registration rights granted in Sections 1.2, 1.3 and 1.4 shall terminate, with respect to Anworth, the sooner of such time as (a) the fifth anniversary of the
closing date of the Initial Public Offering, or (b) all Registrable Securities held by Anworth can be sold pursuant to Rule 144 in a single transaction without compliance with the registration requirements of the Securities Act. The respective
indemnities, representations and warranties of Anworth and the Company shall survive such termination. 
  
 2. Information Rights. 
  
 2.1. Financial Information. The Company will provide to Anworth the following information: 
  
 (a) As soon as reasonably practicable after the end of each fiscal year,
and in any event within ninety (90) days thereafter, a consolidated balance sheet of the Company and its subsidiaries, if any, as of the end of such fiscal year, and consolidated statements of income, stockholders’ equity and cash flows of the
Company and its subsidiaries, if any, for such year, prepared in accordance with generally accepted accounting principles (“GAAP”) and setting forth in each case in comparative form the figures for the previous fiscal year, all in
reasonable detail and all certified by a nationally recognized public accounting firm. 
  

 -12- 

 (b) As soon as reasonably practicable after the end of each fiscal quarter and in any event within
thirty (30) days thereafter, a consolidated balance sheet of the Company and its subsidiaries, if any, as of the end of each such quarter, consolidated statements of income, consolidated statements of changes in financial condition, and a
consolidated statement of cash flow of the Company and its subsidiaries for such quarter and for the current fiscal year to date, and setting forth in each case in comparative form the figures for corresponding quarters in the previous fiscal year,
and setting forth in comparative form the budgeted figures for such quarter and for the current fiscal year then reported, prepared in accordance with GAAP (other than for accompanying notes), subject to changes resulting from year-end audit
adjustments, all in reasonable detail and signed by the principal financial or accounting of ricer of the Company. 
  
 (c) An annual operating plan and budget for the next fiscal year of the Company containing revenue projections, profit and loss projections, cash flow
projections, and capital expenditures, all on a quarterly basis, as soon as it is available but in any event within forty-five (45) days prior to the end of the current fiscal year. 
  
 2.2. Additional Information. The Company will also allow Anworth to visit and inspect any of the properties of the
Company (at reasonable times and upon reasonable advance notice but in any event no more than two (2) times per calendar year) and will deliver or provide to Anworth with reasonable promptness such information and data, including access to books,
records, officers and accountants, with respect to the Company and its subsidiaries as Anworth may from time to time reasonably request; provided, however, that with respect to any such information and data not contained in regularly prepared
reports of the Company, Anworth requesting the same shall reimburse the Company for any reasonable costs incurred by the Company in providing such information, data or access. 
  
 3. Right of First Refusal. 
  

3.1. General. Except for (i) securities issued pursuant to conversion rights applicable to the Preferred Stock, (ii) securities issued in a
public offering pursuant to an effective registration statement under the Securities Act, (iii) securities issued pursuant to the Company’s acquisition of another corporation, or all or a portion of its assets, by merger, purchase of assets or
other corporate reorganization, (iv) securities issued in connection with any stock split, recapitalization or stock dividend of the Company, (v) securities issued after the date hereof to employees, officers, or directors of, or contractors,
consultants or advisors to, the Company pursuant to stock purchase or stock option plans, warrants, stock bonuses or awards, contracts or other arrangements that are approved by the Board of Directors, (vi) warrants or other securities issued to
financial institutions lenders in connection with lease lines, loans or equipment lease financings approved by the Board of Directors, (vii) securities issued to technology providers or in connection with joint venture, partnering or development
agreements approved by the Board of Directors; (viii) securities issued pursuant to the exercise of stock options outstanding as of the date hereof, or (ix) securities issued pursuant to the Purchase Agreement (collectively, the securities described
in items (i) through (ix) above are referred to herein as the “Excluded Securities”), the Company will not authorize or issue any shares of stock of the Company of any class and will not authorize, issue or grant any options,
warrants, conversion rights or other rights to purchase or acquire any shares of stock of the Company of any class without offering Anworth the right of first refusal described below. 
  

 -13- 

 3.2. Right of First Refusal. Anworth shall have a right of first refusal to purchase an amount of
securities of the Company of any class or kind which the Company proposes to sell (other than the Excluded Securities) sufficient to maintain Anworth’s proportionate beneficial ownership interest in the Company. If the Company wishes to make
any such sale of its securities, it shall give Anworth written notice of the proposed sale. The notice shall set forth (a) the Company’s bona fide intention to offer such shares and (b) the material terms and conditions of the proposed sale
(including the number of shares to be offered and the price, if any, for which the Company proposes to offer such shares), and shall constitute an offer to sell such securities to Anworth on such terms and conditions. Anworth may accept such offer
by delivering a written notice of acceptance to the Company within ten (10) days after Anworth has received notice of the proposed sale in accordance with Section 6.2 hereof. If Anworth exercises its right of first refusal, Anworth shall be entitled
to participate in the purchase of such securities on a pro rata basis to the extent necessary to maintain Anworth’s proportionate beneficial ownership interest in the Company (for purposes of determining the pro rata interest of Anworth,
Anworth or any other holder of the Company’s securities shall be treated as owning that number of shares of Common Stock into which any outstanding convertible securities (or convertible securities for which any outstanding options or warrants
may be exercised) may be converted and for which any outstanding options or warrants may be exercised). If the Company does not enter into an agreement for the sale of such shares within ninety (90) days after the receipt of Anworth’s written
notice of acceptance, the right provided hereunder shall be deemed to be revived and all future shares of stock of the Company of any class shall not be offered unless first re-offered to Anworth in accordance with this Section 3. Anworth shall be
entitled to apportion the right of first refusal hereby granted among itself and its partners and Affiliates in such proportions it deems appropriate. 
  
 4. Issuances by Subsidiaries. If a subsidiary of the Company issues any of its securities to any person other than the Company or a wholly-owned
subsidiary of the Company, such issuances shall be subject to the same right of first refusal principles as set forth in this Section 4. 
  
 5. Termination of Certain Provisions. The rights set forth in Sections 2.1 and 2.2, and the provisions of Sections 3 and 4, all shall terminate and
be of no further force or effect upon the date the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended. 
  
 6. Board of Directors. 
  
 6.1. General. As provided in the Company’s Articles of Incorporation (the “Charter”) and the Bylaws of the Company (as
amended and in effect as of the date hereof and as further amended and in effect from time to time thereafter in accordance with the provisions thereof and of the Charter, the “Bylaws”), all directors of the Company shall be elected
by the holders of the Common Stock and the Preferred Stock, voting in accordance with the provisions of this Agreement, the Bylaws and the Charter. Each director shall serve in accordance with this Agreement and the Bylaws and, if continuing, shall
stand for re-election annually, subject to the terms of this Section 6. 
  
 6.2. Board of Directors. The Company and Anworth hereby acknowledges and agree, and shall take or cause to be taken all actions reasonably necessary such that: 
  
 (a) the authorized membership of the Board of Directors shall be established and maintained at three (3) directors;

  

 -14- 

 (b) for so long as Anworth continues to own any shares of the Preferred Stock, the Company and its
shareholders shall cause to be elected to the Board a total of two (2) directors designated by Anworth (each, an “Anworth Director”), which Anworth Directors are hereby initially designated by Anworth as follows: Joseph Lloyd
McAdams and Joseph E. McAdams; 
  
 (c) in the case of death,
resignation, or other removal as provided in the Bylaws of any Anworth Director, Anworth shall have exclusive authority to elect in its discretion another individual to fill the vacancy created thereby; and 
  
 (d) no action shall be taken by the Board during the pendency of any vacancy
due to death, resignation or removal of any Anworth Director, unless Anworth shall have failed, for a period of five (5) Business Days after written notice from the Company as to the vacancy, to designate a replacement. 
  
 6.3. Matters Requiring Investor Director Consent or Approval. In
addition to and without limiting the authority of the Board of Directors or any applicable committee thereof with respect to such matters, the written consent or approval of both of the Anworth Directors shall be required for all matters relating
to: 
  
 (a) the establishment of annual operating or capital
budgets for the Company; 
  
 (b) hiring or termination actions
with respect to any senior executive-level personnel; 
  
 (c) the
adoption of, or any material amendment or supplement to or material deviation from, the Company’s Business Plan for each fiscal year; 
  
 (d) any amendment, alteration, waiver, or repeal of any provision of the Company’s Articles of Incorporation or Bylaws, including without limitation
the preferences, privileges, special rights, or other powers of the Series A Preferred; 
  
 (e) any sale, lease, assignment, transfer, or other conveyance of all or substantially all of the assets of the Corporation, or any Change of Control of the Company. As used herein, “Change of
Control” shall have occurred upon the effective date (a) of a dissolution or liquidation of the Corporation, or (b) of a reorganization, merger, or consolidation of the Company with one or more other corporations in which stockholders of
the Company immediately prior to such reorganization, merger, or consolidation beneficially own less than 50% of the voting securities of the surviving corporation immediately following such reorganization, merger, or consolidation, or (c) of the
transfer of substantially all of the capital stock of the Company to another corporation or other entity; 
  
 (f) any reclassification of the outstanding capital stock of the Company, including without limitation, by stock split, stock dividend, subdivision,
combination, or recapitalization; 
  

 -15- 

 (g) any assignment for the benefit of creditors or commence any bankruptcy, dissolution, termination of
corporate existence, or any similar action; 
  
 (h) the
redemption, purchase, or other acquisition (or payment into or setting aside for a sinking fund for such purpose) any share or shares of the Company’s capital stock; 
  
 (i) the creation of any subsidiary of the Company (other than a wholly-owned subsidiary of the Company) or the issuance by
any subsidiary of the Company of equity securities or the right to acquire equity securities other than to the Company; 
  
 (j) the taking of any action that results in the Company losing its status as a real estate investment trust under Section 856 of the Internal Revenue
Code of 1986, as amended. 
  
 7. Miscellaneous. 

 
 7.1. Waivers and Amendments. With the written consent of the
Company and Anworth, the obligations of the Company and the rights of Anworth under this Agreement may be waived (either generally or in a particular instance, either retroactively or prospectively and either for a specified period of time or
indefinitely), and with the same consent, the Company, when authorized by resolution of the Board of Directors, may amend this Agreement or enter into a supplementary agreement for the purpose of adding any provisions to this Agreement or adding any
individual or entity as a party hereto, and to add such party’s names to the signature pages attached hereto upon such party’s executing a counterpart signature page of this Agreement. Neither this Agreement nor any provisions hereof may
be changed, waived, discharged or terminated orally, but only by a signed statement in writing. Any amendment, waiver or supplementary agreement effected in accordance with this paragraph shall be binding upon Anworth, each future holder of any
Registrable Securities and the Company. 
  
 7.2. Notices.
All notices and other communications required or permitted hereunder shall be in writing (or in the form of a telex or telecopy (confirmed in writing) to be given only during the recipient’s normal business hours unless arrangements have
otherwise been made to receive such notice by telex or telecopy outside of normal business hours) and shall be mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand, messenger, or telex or telecopy (as provided
above) addressed as follows: 
  
 If to the Company: 

 
 Belvedere Trust Mortgage Corporation 
 1299 Ocean Avenue 
 Suite 250 
 Santa Monica, CA 90401  
 Attn: Chief Executive Officer 
  

 -16- 

 If to Anworth: 
  

Anworth Mortgage Asset Corporation 
 1299
Ocean Avenue 
 Suite 250 
 Santa Monica, CA 90401  
 Attn: Chief Executive Officer 
  
 in each case with a copy (which shall not constitute notice) to:  
 Allen, Matkins, Leck, Gamble & Mallory, LLP 
 1901 Avenue of the Stars 
 Suite 1800 
 Los Angeles, CA 90067  
 Attn: Mark J. Kelson, Esq. 
  
 7.3. Each party may designate by notice in writing a new address to which any
notice, demand, request or communication may thereafter be so given, served or sent. Each notice, demand, request or communication which shall be hand-delivered or mailed in the manner described above, shall be deemed sufficiently given, served,
sent, received or delivered for all purposes at such time as it is delivered to the addressee (with the return receipt or the delivery receipt, being deemed conclusive, but not exclusive, evidence of such delivery) or at such time as delivery is
refused by the addressee upon presentation. 
  
 7.4.
Descriptive Headings. The descriptive headings herein have been inserted for convenience only and shall not be deemed to limit or otherwise affect the construction of any provisions hereof. 
  
 7.5. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
INTERPRETED UNDER THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 
  
 7.6. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and
all of which shall constitute the same instrument, but only one of which need be produced. 
  
 7.7. Facsimile Signatures. Any signature page delivered by a fax machine or telecopy machine shall be binding to the same extent as an original signature page, with regard to any agreement subject to the terms
hereof or any amendment thereto. Any party who delivers such a signature page agrees to later deliver an original counterpart to any party which requires it. 
  
 7.8. Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 7.9. Successors and Assigns. Except as otherwise expressly provided in this Agreement, this Agreement shall benefit and bind the successors,
assigns, heirs, executors and administrators of the parties to this Agreement. 
  

 -17- 

 7.10. Entire Agreement; Supercedence. This Agreement constitutes the full and entire understanding
and agreement between the parties with regard to the subject matter of this Agreement, including, without limitation, the Existing Investor Rights Agreement, which is hereby amended and superseded in its entirety by this Agreement. 
  
 7.11. Separability; Severability. If any provision of this Agreement
is judicially determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected or impaired. 
  
 * * * 
  

 -18- 

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

  

					
	COMPANY:	 	 BELVEDERE TRUST CORPORATION
 a Maryland
corporation

			
	 	 	By:	 	 /s/ Russell J. Thompson

 Russell J. Thompson,
 Chief Financial Officer

		
	ANWORTH:	 	 ANWORTH MORTGAGE ASSET CORPORATION
 a
Maryland corporation

			
	 	 	By:	 	 /s/ Lloyd McAdams

 Lloyd McAdams,
 Chief Executive Officer

  
 40899964.1 
  

 -19-Form of 2005 Equity Incentive Plan of the Company

 EXHIBIT 10.2 
  
 BELVEDERE TRUST MORTGAGE CORPORATION 
 2005 EQUITY INCENTIVE PLAN 
  
 1. PURPOSE. The Plan is intended to provide incentives to key employees, officers, directors and others expected to provide significant services to the Company, including the employees, officers and directors of the other Participating
Companies, to encourage a proprietary interest in the Company, to encourage such key employees to remain in the employ of the Company and the other Participating Companies, to attract new employees with outstanding qualifications, and to afford
additional incentive to others to increase their efforts in providing significant services to the Company and the other Participating Companies. In furtherance thereof, the Plan permits awards of equity-based incentives to key employees, officers
and directors of, and certain other providers of services to, the Company or any other Participating Company. 
  
 2. DEFINITIONS. As used in this Plan, the following definitions apply (provided that, in the case of capitalized terms used in Agreements to prior
versions of the Plan, which terms have been replaced by capitalized terms defined herein, the capitalized terms in such Agreements shall, as the context so requires, have the respective meanings ascribed herein to such replacement terms):

  
 “Act” shall mean the Securities Act of 1933, as
amended. 
  
 “Affiliate” shall mean any entity directly
or indirectly controlling, controlled by, or under common control with, the Company or any other entity designated by the Board in which the Company or shareholder of the Company has an interest. 
  
 “Agreement” shall mean a written agreement entered into between the
Company and a Grantee pursuant to the Plan. 
  
 “Board”
shall mean the Board of Directors of the Company. 
  
 “Cause” shall mean, unless otherwise provided in the Grantee’s Agreement, (i) engaging in (A) willful or gross misconduct or (B) willful or gross neglect, (ii) repeatedly failing to adhere to the directions of superiors or
the Board or the written policies and practices of the Company, (iii) the commission of a felony or a crime of moral turpitude, or any crime involving the Company, (iv) fraud, misappropriation, embezzlement or material or repeated insubordination,
(v) a material breach of the Grantee’s employment agreement (if any) with the Company (other than a termination of employment by the Grantee), or (vi) any illegal act detrimental to the Company; all as determined by the Committee. 

 
 “Code” shall mean the Internal Revenue Code of 1986, as amended.

  
 “Committee” shall mean the Compensation Committee of
the Company as appointed by the Board in accordance with Section 4 of the Plan; provided, however, that the Committee shall at all times consist solely of persons who, at the time of their appointment, each qualified as a “Non-Employee
Director” under Rule 16b-3(b)(3)(i) promulgated under the Exchange Act and, 

  

 1 

 
to the extent that relief from the limitation of Section 162(m) of the Code is sought, as an “Outside Director” under Section 1.162-27(e)(3)(i) of
the Treasury Regulations. 
  
 “Common Stock” shall mean
the Company’s common stock, par value $0.001 per share, either currently existing or authorized hereafter. 
  
 “Company” shall mean Belvedere Trust Mortgage Corporation, a Maryland corporation. 
  
 “DER” shall mean a right awarded under Section 11 of the Plan to receive (or have credited) the equivalent value
(in cash or Shares) of dividends paid on Common Stock. 
  
 “Disability” shall mean, unless otherwise provided by the Committee in the Grantee’s Agreement, permanent and total disability within the meaning of Section 22(e)(3) of the Code, or the occurrence of an event which would
entitle an employee of the Company to the payment of disability income under one of the Company’s approved long-term disability income plans or a long-term disability as determined by the Committee in its absolute discretion pursuant to any
other standard as may be adopted by the Committee. 
  
 “Effective Date of the Plan” is defined in Section 3 of the Plan. 
  
 “Eligible Persons” shall mean any of the officers, directors and employees of any of the Participating Companies and any other Persons expected to provide services, either directly or through one or more
Affiliates, to one or more of the Participating Companies or an Affiliate. 
  
 “Employee” shall mean an individual, including an officer of a Participating Company, who is employed (within the meaning of Code Section 3401 and the regulations thereunder) by the Participating Company.

  
 “Exchange Act” shall mean the Securities Exchange
Act of 1934, as amended. 
  
 “Exercise Price” shall mean
the price per Share of Common Stock, determined by the Board or the Committee, at which an Option may be exercised. 
  
 “Fair Market Value” shall mean the value of one share of Common Stock, determined as follows: 
  

	 	(i)	If the Shares are then listed on a national stock exchange, the closing sales price per Share on the exchange for the last preceding date on which there was a sale of Shares on such
exchange, as determined by the Committee. 

  

	 	(ii)	If the Shares are not then listed on a national stock exchange but are then traded on an over-the-counter market, the average of the closing bid and asked prices for the Shares in
such over-the-counter market for the last preceding date on which there was a sale of such Shares in such market, as determined by the Committee 

  

	 	(iii)	 If neither (i) nor (ii) applies, such value as the Committee in its discretion may in good faith determine. Notwithstanding the foregoing, where the Shares are
listed 

  

 2 

	 	 
or traded, the Committee may make discretionary determinations in good faith where the Shares have not been traded for ten trading days.

  
 “Grant” shall mean the issuance of
an Incentive Stock Option, Non-qualified Stock Option, Restricted Stock, Phantom Share, DER, other equity-based grant as contemplated herein or any combination thereof as applicable to an Eligible Person. The Committee will determine the eligibility
of employees, officers, directors and others expected to provide significant services to the Participating Companies based on, among other factors, the position and responsibilities of such individuals, the nature and value to the Participating
Company of such individuals’ accomplishments and potential contribution to the success of the Participating Company whether directly or through its subsidiaries. 
  
 “Grantee” shall mean an Eligible Person to whom Options, Restricted Stock, Phantom Shares or DERs are granted
hereunder. 
  
 “Incentive Stock Option” shall mean an
Option of the type described in Section 422(b) of the Code issued to an Employee of the Company or any Participating Company which is a corporation. 
  
 “Non-qualified Stock Option” shall mean an Option not described in Section 422(b) of the Code. 
  
 “Option” shall mean any option, whether an Incentive Stock Option
or a Non-qualified Stock Option, to purchase, at a price and for the term fixed by the Committee in accordance with the Plan, and subject to such other limitations and restrictions in the Plan and the applicable Agreement, a number of Shares
determined by the Committee. 
  
 “Optionee” shall mean
any Eligible Person to whom an Option is granted, or the Successors of the Optionee, as the context so requires. 
  
 “Participating Companies” shall mean the Company and any of its Subsidiaries. 
  
 “Person” shall mean a Person as such term is used for purposes of Section 13(d) or 14(d) of the Act (or any
successor section thereto). 
  
 “Phantom Share” shall
mean a right, pursuant to the Plan, of the Grantee to payment of the Phantom Share Value. 
  
 “Phantom Share Value,” per Phantom Share, shall mean the Fair Market Value of a Share or, if so provided by the Committee, such Fair Market Value to the extent in excess of a base value established by the
Committee at the time of grant. 
  
 “Plan” shall mean
the Company’s 2005 Equity Incentive Plan, as set forth herein, and as the same may from time to time be amended. 
  
 “Purchase Price” shall mean the Exercise Price times the number of Shares with respect to which an Option is exercised. 
  

 3 

 “Restricted Stock” shall mean an award of Shares that are subject to restrictions hereunder.

  
 “Retirement” shall mean, unless otherwise provided
by the Committee in the Grantee’s Agreement, the Termination of Service (other than for Cause) of a Grantee: 
  

	 	(i)	on or after the Grantee’s attainment of age 65; 

  

	 	(ii)	on or after the Grantee’s attainment of age 55 with five consecutive years of service with the Participating Companies; or 

  

	 	(iii)	as determined by the Committee in its absolute discretion pursuant to such other standard as may be adopted by the Committee. 

  
 “Shares” shall mean shares of Common Stock of the Company, adjusted
in accordance with Section 15 of the Plan (if applicable). 
  
 “Subsidiary” shall mean any corporation, partnership or other entity at least 50% of the economic interest in the equity of which is owned by the Company or by another subsidiary. 
  
 “Successors of the Optionee” shall mean the legal representative of
the estate of a deceased Optionee or the person or persons who shall acquire the right to exercise an Option by bequest or inheritance or by reason of the death of the Optionee. 
  
 “Termination of Service” shall mean the time when the employee-employer relationship or directorship, or other
service relationship (sufficient to constitute service as an Eligible Person), between the Grantee and the Participating Companies is terminated for any reason, with or without Cause, including, but not limited to, any termination by resignation,
discharge, death or Retirement; provided, however, Termination of Service shall not include a termination where there is a simultaneous reemployment of the Grantee by a Participating Company or other continuation of service (sufficient to constitute
service as an Eligible Person) for a Participating Company. The Committee, in its absolute discretion, shall determine the effects of all matters and questions relating to Termination of Service, including, but not limited to, the question of
whether any Termination of Service was for Cause and all questions of whether particular leaves of absence constitute Terminations of Employment. For this purpose, the service relationship shall be treated as continuing intact while the Grantee is
on military leave, sick leave or other bona fide leave of absence (to be determined in the discretion of the Committee). 
  
 “Underwriting Agreement” shall mean the agreement between the Company and the underwriter or underwriters managing the initial public offering
of the Common Stock. 
  
 “Underwriting Date” shall mean
the date on which the Underwriting Agreement is executed and priced in connection with an initial public offering of the Common Stock. 
  
 3. EFFECTIVE DATE. The effective date of this Plan shall be coincident with the Underwriting Date (the “Effective Date of the Plan”).

  

 4 

 4. ADMINISTRATION. 
  
 a. Membership on Committee. The Plan shall be administered by the Committee appointed by the Board. If no Committee is
designated by the Board to act for those purposes, the full Board shall have the rights and responsibilities of the Committee hereunder and under the Agreements. 
  
 b. Committee Meetings. The acts of a majority of the members present at any meeting of the Committee at which a quorum is
present, or acts approved in writing by a majority of the entire Committee, shall be the acts of the Committee for purposes of the Plan. If and to the extent applicable, no member of the Committee may act as to matters under the Plan specifically
relating to such member. 
  
 c. Grant of Awards. 
  
 (i) The Committee shall from time to time at its discretion
select the Eligible Persons who are to be issued Grants and determine the number and type of Grants to be issued under any Agreement to an Eligible Person. In particular, the Committee shall (A) determine the terms and conditions, not inconsistent
with the terms of the Plan, of any Grants awarded hereunder (including, but not limited to the performance goals and periods applicable to the award of Grants); (B) determine the time or times when and the manner and condition in which each Option
shall be exercisable and the duration of the exercise period; and (C) determine or impose other conditions to the Grant or exercise of Options under the Plan as it may deem appropriate. The Committee may establish such rules, regulations and
procedures for the administration of the Plan as it deems appropriate, determine the extent, if any, to which Options, Phantom Shares, Shares (whether or not Shares of Restricted Stock) or DERs shall be forfeited (whether or not such forfeiture is
expressly contemplated hereunder), and take any other actions and make any other determinations or decisions that it deems necessary or appropriate in connection with the Plan or the administration or interpretation thereof. The Committee shall also
cause each Option to be designated as an Incentive Stock Option or a Non-qualified Stock Option, except that no Incentive Stock Options may be granted to an Eligible Person who is not an Employee of the Company or any Participating Company which is
a corporation. The Grantee shall take whatever additional actions and execute whatever additional documents the Committee may in its reasonable judgment deem necessary or advisable in order to carry or effect one or more of the obligations or
restrictions imposed on the Grantee pursuant to the express provisions of the Plan and the Agreement. DERs will be exercisable separately or together with Options, and paid in cash or other consideration at such times and in accordance with such
rules, as the Committee shall determine in its discretion. Unless expressly provided hereunder, the Committee, with respect to any Grant, may exercise its discretion hereunder at the time of the award or thereafter. The Committee shall have the
right and responsibility to interpret the Plan and the interpretation and construction by the Committee of any provision of the Plan or of any Grant thereunder, including, without limitation, in the event of a dispute, shall be final and binding on
all Grantees and other persons to the maximum extent permitted by law. Without limiting the generality of Section 23, no member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Grant
hereunder. 
  

 5 

 (ii) Notwithstanding clause (i) of this Section 4(c) and except for automatic grants of
Non-qualified Stock Options under Section 7(a), any award under the Plan to an Eligible Person who is a member of the Committee shall be made by the full Board, but for these purposes the directors of the Company who are on the Committee shall be
required to be recused in respect of such awards and shall not be permitted to vote. 
  
 d. Awards. 
  
 (i) Agreements. Grants to Eligible Persons shall be evidenced by written Agreements in such form as the Committee shall from time to time determine. Such Agreements shall comply with and be subject to the terms and conditions set forth
below. 
  
 (ii) Number of Shares. Each Grant
issued to an Eligible Person shall state the number of Shares to which it pertains or which otherwise underlie the Grant and shall provide for the adjustment thereof in accordance with the provisions of Section 15 hereof. 
  
 (iii) Grants. Subject to the terms and conditions of the
Plan and consistent with the Company’s intention for the Committee to exercise the greatest permissible flexibility under Rule 16b-3 under the Exchange Act in awarding Grants, the Committee shall have the power: 
  
 (1) to determine from time to time the Grants to be issued
to Eligible Persons under the Plan and to prescribe the terms and provisions (which need not be identical) of Grants issued under the Plan to such persons; 
  
 (2) to construe and interpret the Plan and the Grants thereunder and to establish, amend and revoke the rules, regulations and procedures
established for the administration of the Plan. In this connection, the Committee may correct any defect or supply any omission, or reconcile any inconsistency in the Plan, in any Agreement, or in any related agreements, in the manner and to the
extent it shall deem necessary or expedient to make the Plan fully effective. All decisions and determinations by the Committee in the exercise of this power shall be final and binding upon the Participating Companies and the Grantees; 

 
 (3) to amend any outstanding Grant, subject to Section
17, and to accelerate or extend the vesting or exercisability of any Grant and to waive conditions or restrictions on any Grants, to the extent it shall deem appropriate; and 
  
 (4) generally to exercise such powers and to perform such acts as are deemed necessary or expedient to
promote the best interests of the Company with respect to the Plan. 
  
 5. PARTICIPATION. 
  
 a. Eligibility. Only Eligible
Persons shall be eligible to receive Grants under the Plan. 
  

 6 

 b. Incentive Stock Options. Incentive Stock Options may only be granted to an Eligible Person who is an
Employee of the Company or a Participating Company which is a corporation. 
  
 c. Limitation of Ownership. No Grants shall be issued under the Plan to any person who after such Grant would beneficially own more than 9.8% of the outstanding shares of Common Stock of the Company, unless the
foregoing restriction is expressly and specifically waived by action of the independent directors of the Board. 
  
 d. Stock Ownership. For purposes of Section 5(c) above, in determining stock ownership a Grantee shall be considered as owning the stock owned, directly
or indirectly, by or for his brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be considered as being owned proportionately by or for its
stockholders, partners or beneficiaries. Stock with respect to which any person holds an Option shall be considered to be owned by such person. 
  
 e. Outstanding Stock. For purposes of Section 5(c) above, “outstanding shares” shall include all stock actually issued and outstanding
immediately after the issue of the Grant to the Grantee. With respect to the stock ownership of any Grantee, “outstanding shares” shall include shares authorized for issue under outstanding Options held by such Grantee, but not options
held by any other person. 
  
 6. STOCK. Subject to adjustments
pursuant to Section 15, Grants with respect to an aggregate of no more than 2,000,000 Shares may be granted under the Plan (all of which may be issued as Options). Subject to adjustments pursuant to Section 15, (i) the maximum number of Shares with
respect to which any Options may be granted in any one calendar year to any Grantee shall not exceed 250,000, and (ii) the maximum number of Shares that may underlie Grants, other than Grants of Options, in any one calendar year to any Grantee shall
not exceed 250,000. Notwithstanding the first sentence of this Section 6, (i) Shares that have been granted as Restricted Stock or that have been reserved for distribution in payment for Options or Phantom Shares but are later forfeited or for any
other reason are not payable under the Plan; and (ii) Shares as to which an Option is granted under the Plan that remains unexercised at the expiration, forfeiture or other termination of such Option, may be the subject of the issue of further
Grants. Shares of Common Stock issued hereunder may consist, in whole or in part, of authorized and unissued shares, treasury shares or previously issued Shares under the Plan. The certificates for Shares issued hereunder may include any legend
which the Committee deems appropriate to reflect any restrictions on transfer hereunder or under the Agreement, or as the Committee may otherwise deem appropriate. Shares subject to DERs, other than DERs based directly on the dividends payable with
respect to Shares subject to Options or the dividends payable on a number of Shares corresponding to the number of Phantom Shares awarded, shall be subject to the limitation of this Section 6. Notwithstanding the limitations above in this Section 6,
except in the case of Grants intended to qualify for relief from the limitations of Section 162(m) of the Code, there shall be no annual limit on the number of Phantom Shares or DERs that may be granted under the Plan, to the extent they are paid
out in cash. If any Phantom Shares or DERs are paid out in cash, the underlying Shares may again be made the subject of Grants under the Plan, notwithstanding the first sentence of this Section 6. 
  

 7 

 7. TERMS AND CONDITIONS OF OPTIONS. 
  
 a. Each Agreement with an Eligible Person shall state the Exercise Price. The Exercise Price for any Option shall not be
less than the Fair Market Value on the date of Grant. 
  
 b.
Medium and Time of Payment. Except as may otherwise be provided below, the Purchase Price for each Option granted to an Eligible Person shall be payable in full in United States dollars upon the exercise of the Option. In the event the Company
determines that it is required to withhold taxes as a result of the exercise of an Option, as a condition to the exercise thereof, an Employee may be required to make arrangements satisfactory to the Company to enable it to satisfy such withholding
requirements in accordance with Section 21. If the applicable Agreement so provides, or the Committee otherwise so permits, the Purchase Price may be paid in one or a combination of the following: 
  
 (i) by a certified or bank cashier’s check; 

 
 (ii) by the surrender of shares of Common Stock in good
form for transfer, owned by the person exercising the Option and having a Fair Market Value on the date of exercise equal to the Purchase Price, or in any combination of cash and shares of Common Stock, as long as the sum of the cash so paid and the
Fair Market Value of the shares of Common Stock so surrendered equals the Purchase Price; 
  
 (iii) subject to Section 17(e), to the extent the option is exercised for vested shares, through a special sale and remittance procedure
pursuant to which the Optionee shall concurrently provide irrevocable instructions to (a) a Company-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the
settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Company by reason of such exercise and
(b) the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 
  
 (iv) by cancellation of indebtedness owed by the Company to the Grantee; 
  
 (v) subject to Section 17(e), by a loan or extension of credit from the Company evidenced by a full recourse
promissory note executed by the Grantee. The interest rate and other terms and conditions of such note shall be determined by the Committee (in which case the Committee may require that the Grantee pledge his or her Shares to the Company for the
purpose of securing the payment of such note, and in no event shall the stock certificate(s) representing such Shares be released to the Grantee until such note shall have been paid in full); or 
  
 (vi) by any combination of such methods of payment or any
other method acceptable to the Committee in its discretion. 
  
 Except in the case of Options exercised by certified or bank cashier’s check, the Committee may impose such limitations and prohibitions on the exercise of Options as it deems appropriate, including, without
limitation, any limitation or prohibition designed to avoid 

  

 8 

 
accounting consequences which may result from the use of Common Stock as payment upon exercise of an Option. Any fractional shares of Common Stock resulting
from a Grantee’s election that are accepted by the Company shall in the discretion of the Committee be paid in cash. 
  
 c. Term and Nontransferability of Grants and Options. 
  
 (i) Each Option under this Section 7 shall state the time or times which all or part thereof becomes exercisable, subject to the following
restrictions. 
  
 (ii) No Option shall be
exercisable except by the Grantee or a transferee permitted hereunder. 
  
 (iii) No Option shall be assignable or transferable, except by will or the laws of descent and distribution of the state wherein the Grantee is domiciled at the time of his death; provided, however, that the Committee
may (but need not) permit other transfers, where the Committee concludes that such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to be described in
Section 422(b) of the Code and (iii) is otherwise appropriate and desirable. 
  
 (iv) No Option shall be exercisable until such time as set forth in the applicable Agreement (but in no event after the expiration of such Grant). 
  
 (v) The Committee may not modify, extend or renew any Option granted to any Eligible Person unless such
modification, extension or renewal shall satisfy any and all applicable requirements of Rule 16b-3 under the Exchange Act. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, alter or impair any
rights or obligations under any Option previously granted. 
  
 d.
Termination of Service, Except by Death, Retirement or Disability. Unless otherwise provided in the applicable Agreement, upon any Termination of Service for any reason other than his or her death, Retirement or Disability, an Optionee shall have
the right, subject to the restrictions of Section 4(c) above, to exercise his or her Option at any time within three months after Termination of Service, but only to the extent that, at the date of Termination of Service, the Optionee’s right
to exercise such Option had accrued pursuant to the terms of the applicable Agreement and had not previously been exercised; provided, however, that, unless otherwise provided in the applicable Agreement, if there occurs a Termination of Service by
a Participating Company for Cause or a Termination of Service by the Optionee (other than on account of death, Retirement or Disability), any Option not exercised in full prior to such termination shall be canceled. 
  
 e. Death of Optionee. Unless otherwise provided in the applicable Agreement,
if the Optionee of an Option dies while an Eligible Person or within three months after any Termination of Service other than for Cause or a Termination of Service by the Optionee (other than on account of death, Retirement or Disability), and has
not fully exercised the Option, then the Option may be exercised in full, subject to the restrictions of Section 4(c) above, at anytime within 12 months after the Optionee’s death, by the Successor of the Optionee, but only to the 

  

 9 

 
extent that, at the date of death, the Optionee’s right to exercise such Option had accrued and had not been forfeited pursuant to the terms of the
Agreement and had not previously been exercised. 
  
 f. Disability
or Retirement of Optionee. Unless otherwise provided in the Agreement, upon any Termination of Service for reason of his or her Disability or Retirement, an Optionee shall have the right, subject to the restrictions of Section 4(c) above, to
exercise the Option at any time within 12 months after Termination of Service, but only to the extent that, at the date of Termination of Service, the Optionee’s right to exercise such Option had accrued pursuant to the terms of the applicable
Agreement and had not previously been exercised. 
  
 g. Repurchase
Rights. The Committee shall have the discretion to grant Options which are exercisable for unvested Shares. Should a Termination of Service occur with respect to the Optionee while the Optionee (or any permitted transferee of the Option) holds
unvested Shares, the Company shall have the right to repurchase, at the Exercise Price paid per share, any or all of those unvested Shares. The terms upon which such repurchase right shall be exercisable (including the period and procedure for
exercise in the appropriate vesting schedule for the purchased Shares) shall be established by the Committee and set forth in the document evidencing such repurchase right. 
  
 h. Rights as a Stockholder. An Optionee, a Successor of the Optionee, or the holder of a DER shall have no rights as a
stockholder with respect to any Shares covered by his or her Grant until, in the case of an Optionee, the date of the issuance of a stock certificate for such Shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property), distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as provided in Section 15. 
  
 i. Modification, Extension and Renewal of Option. Within the limitations of the Plan, and only with respect to Options
granted to Eligible Persons, the Committee may modify, extend or renew outstanding Options or accept the cancellation of outstanding Options (to the extent not previously exercised) for the granting of new Options in substitution therefor (but not
including repricings, in the absence of stockholder approval). The Committee may modify, extend or renew any Option granted to any Eligible Person, unless such modification, extension or renewal would not satisfy any applicable requirements of Rule
16b-3 under the Exchange Act. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, alter or impair any rights or obligations under any Option previously granted. 
  
 j. Stock Appreciation Rights. The Committee, in its discretion, may also
permit the Optionee to elect to exercise an Option by receiving Shares, cash or a combination thereof, in the discretion of the Committee, with an aggregate Fair Market Value (or, to the extent of payment in cash, in an amount) equal to the excess
of the Fair Market Value of the Shares with respect to which the Option is being exercised over the aggregate Purchase Price, as determined as of the day the Option is exercised. 
  
 k. Deferral. The Committee may establish a program under which Optionees will have Phantom Shares subject to Section 10
credited upon their exercise of Options, rather than receiving Shares at that time. 
  

 10 

 l. Other Provisions. The Agreement authorized under the Plan may contain such other provisions not
inconsistent with the terms of the Plan (including, without limitation, restrictions upon the exercise of the Option) as the Committee shall deem advisable. 
  
 8. SPECIAL RULES FOR INCENTIVE STOCK OPTIONS. 
  
 a. In the case of Incentive Stock Options granted hereunder, the aggregate Fair Market Value (determined as of the date of the Grant thereof) of the
Shares with respect to which Incentive Stock Options become exercisable by any Optionee for the first time during any calendar year (under the Plan and all other plans maintained by the Participating Companies, their parent or Subsidiaries) shall
not exceed $100,000. To the extent that any option governed by this Plan does not qualify as an Incentive Stock Option, by reason of the dollar limitation described in the preceding sentence or for any other reason, such option shall be exercisable
as a Non-qualified Stock Option under the federal tax law. 
  
 b.
In the case of an individual described in Section 422(b)(6) of the Code (relating to certain 10% owners), the Exercise Price with respect to an Incentive Stock Option shall not be less than 110% of the Fair Market Value of a Share on the day the
Option is granted and the term of an Incentive Stock Option shall be no more than five years from the date of grant. 
  
 c. If Shares acquired upon exercise of an Incentive Stock Option are disposed of in a disqualifying disposition within the meaning of Sections 421 and 422
of the Code by an Optionee within either two years from the date of grant of such Option or one year from the transfer of Shares to the Optionee pursuant to the exercise of such Option, or in any other disqualifying disposition within the meaning of
Sections 421 and 422 of the Code, such Optionee shall notify the Company in writing as soon as practicable thereafter of the date and terms of such disposition and, if the Company thereupon has a tax-withholding obligation, shall pay to the Company
an amount equal to any withholding tax the Company is required to pay as a result of the disqualifying disposition. 
  
 9. PROVISIONS APPLICABLE TO RESTRICTED STOCK. 
  
 a. Initial and Annual Awards to Non-Employee Board Members. Each non-Employee member of the Board who is first elected or appointed as a non-Employee
Board member at any time on or after the Effective Date of the Plan shall automatically be granted 6,000 shares of Restricted Stock upon the date such person is initially appointed to the Board, with such terms as may be set forth in the applicable
Agreement. In addition, on the first business day in July in each calendar year following the Effective Date of the Plan, each non-Employee Board member then in office, shall automatically be granted 3,000 shares of Common Stock, with such terms as
may be set forth in the applicable Agreement, provided that such individual has served as a non-Employee Board member for at least six (6) months. There shall be no limit on the number of such 3,000-share annual Restricted Stock Grants that any one
non-Employee Board member may receive over his or her period of Board service. Each Restricted Stock Grant granted to a non-Employee Board member under this Section 9(a) shall become fully vested and the shares of Restricted Stock thereunder
released from escrow, if any, one year after the date of Grant (unless otherwise provided in the applicable Agreement). Such Restricted Stock Grants shall be subject to adjustment as provided in Section 15; provided that such 

  

 11 

 
adjustment and any action by the Board or the Committee with respect to the Plan and such Restricted Stock satisfies the requirements for exemption under
Rule 16b-3 under the Exchange Act and does not cause any member of the Committee to be disqualified as a Non-Employee Director under such Rule. Notwithstanding the foregoing, the Board may prospectively, from time to time, discontinue, reduce or
increase the amount of any or all of the Grants otherwise to be made under this Section 7(a). 
  
 b. Vesting Periods. In connection with the grant of Restricted Stock, whether or not Performance Goals apply thereto, the Committee shall establish one or more vesting periods with respect to the shares of Restricted
Stock granted, the length of which shall be determined in the discretion of the Committee. Subject to the provisions of this Section 9, the applicable Agreement and the other provisions of the Plan, restrictions on Restricted Stock shall lapse if
the Grantee satisfies all applicable employment or other service requirements through the end of the applicable vesting period. 
  
 c. Grant of Restricted Stock. Subject to the other terms of the Plan, the Committee may, in its discretion as reflected by the terms of the applicable
Agreement: (i) authorize the granting of Restricted Stock to Eligible Persons; (ii) provide a specified purchase price for the Restricted Stock (whether or not the payment of a purchase price is required by any state law applicable to the Company);
(iii) determine the restrictions applicable to Restricted Stock and (iv) determine or impose other conditions to the grant of Restricted Stock under the Plan as it may deem appropriate. 
  
 d. Certificates. 
  
 (i) Each Grantee of Restricted Stock shall be issued a stock certificate in respect of Shares of Restricted Stock awarded under the Plan.
Such certificate shall be registered in the name of the Grantee. Without limiting the generality of Section 6, in addition to any legend that might otherwise be required by the Board or the Company’s charter, bylaws or other applicable
documents, the certificates for Shares of Restricted Stock issued hereunder may include any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder or under the applicable Agreement, or as the Committee may
otherwise deem appropriate, and, without limiting the generality of the foregoing, shall bear a legend referring to the terms, conditions, and restrictions applicable to such Grant, substantially in the following form: 
  
 THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE
SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE BELVEDERE TRUST MORTGAGE CORPORATION 2005 EQUITY INCENTIVE PLAN, AND AN AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND BELVEDERE TRUST MORTGAGE CORPORATION. COPIES OF SUCH
PLAN AND AWARD AGREEMENT ARE ON FILE IN THE OFFICES OF BELVEDERE TRUST MORTGAGE CORPORATION AT 235 PINE STREET, SUITE 1800, SAN FRANCISCO, CALIFORNIA 94104. 
  
 (ii) The Committee shall require that the stock certificates evidencing such Shares be held in custody by the Company until the
restrictions hereunder shall have lapsed and 

  

 12 

 
that, as a condition of any grant of Restricted Stock, the Grantee shall have delivered a stock power, endorsed in blank, relating to the stock covered by
such Grant. If and when such restrictions so lapse, the stock certificates shall be delivered by the Company to the Grantee or his or her designee as provided in Section 9(d). 
  
 e. Restrictions and Conditions. Unless otherwise provided by the Committee, the Shares of Restricted Stock awarded pursuant
to the Plan shall be subject to the following restrictions and conditions: 
  
 (i) Subject to the provisions of the Plan and the applicable Agreement, during a period commencing with the date of such Grant and ending on the date the period of forfeiture with respect to such Shares lapses, the
Grantee shall not be permitted voluntarily or involuntarily to sell, transfer, pledge, anticipate, alienate, encumber or assign Shares of Restricted Stock awarded under the Plan (or have such Shares attached or garnished). Subject to the provisions
of the applicable Agreement and clauses (iii) and (iv) below, the period of forfeiture with respect to Shares granted hereunder shall lapse as provided in the applicable Agreement. Notwithstanding the foregoing, unless otherwise expressly provided
by the Committee, the period of forfeiture with respect to such Shares shall only lapse as to whole Shares. 
  
 (ii) Except as provided in the foregoing clause (i), below in this clause (ii), or in Section 15, the Grantee shall have, in respect of
the Shares of Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the Shares; provided, however, that cash dividends on such Shares shall, unless otherwise provided by the Committee in the applicable
Agreement, be held by the Company (unsegregated as a part of its general assets) until the period of forfeiture lapses (and forfeited if the underlying Shares are forfeited), and paid over to the Grantee as soon as practicable after such period
lapses (if not forfeited). Certificates for Shares (not subject to restrictions hereunder) shall be delivered to the Grantee or his or her designee promptly after, and only after, the period of forfeiture lapses without forfeiture in respect of such
Shares of Restricted Stock. 
  
 (iii) Termination
of Service, Except by Death, Retirement or Disability. Unless otherwise provided in the applicable Agreement, if the Grantee has a Termination of Service by the Company for any reason, or by the Grantee for any reason other than his or her death,
Retirement or Disability, during the applicable period of forfeiture, then (A) all Shares of Restricted Stock still subject to restriction shall thereupon, and with no further action, be forfeited by the Grantee, and (B) the Company shall pay to the
Grantee as soon as practicable (and in no event more than 30 days) after such termination an amount equal to the lesser of (x) the amount of cash consideration, if any, paid by the Grantee for such forfeited Restricted Stock as contemplated by
Section 9(b), and (y) the Fair Market Value on the date of termination of the forfeited Restricted Stock. 
  
 (iv) Death, Disability or Retirement of Grantee. Unless otherwise provided in the applicable Agreement, in the event the Grantee has a
Termination of Service on account of his or her death, Disability or Retirement during the applicable period of forfeiture, then restrictions under the Plan will immediately lapse on all Restricted Stock granted to the applicable Grantee.

  

 13 

 10. PROVISIONS APPLICABLE TO PHANTOM SHARES. 
  
 a. Grant of Phantom Shares. Subject to the other terms of the Plan, the
Committee may, in its discretion as reflected by the terms of the applicable Agreement: (i) authorize the Granting of Phantom Shares to Eligible Persons and (ii) determine or impose other conditions to the grant of Phantom Shares under the Plan as
it may deem appropriate. 
  
 b. Term. The Committee may provide in
an Agreement that any particular Phantom Share shall expire at the end of a specified term. 
  
 c. Vesting. 
  
 (i) Subject to the provisions of the applicable Agreement and Section 10(c)(ii), Phantom Shares shall vest as provided in the applicable Agreement. 
  
 (ii) Unless otherwise determined by the Committee at the time of Grant, the Phantom Shares granted pursuant to the Plan shall be subject
to the following vesting conditions: 
  
 (1)
Termination of Service for Cause. Unless otherwise provided in the applicable Agreement and subject to clause (2) below, if the Grantee has a Termination of Service for Cause, all of the Grantee’s Phantom Shares (whether or not such Phantom
Shares are otherwise vested) shall thereupon, and with no further action, be forfeited by the Grantee and cease to be outstanding, and no payments shall be made with respect to such forfeited Phantom Shares. 
  
 (2) Termination of Service for Death, Disability or
Retirement of Grantee or by the Company for Any Reason Other than Cause. Unless otherwise provided in the applicable Agreement, in the event the Grantee has a Termination of Service on account of his or her death, Disability or Retirement, or the
Grantee has a Termination of Service by the Company for any reason other than Cause, all outstanding Phantom Shares granted to such Grantee shall become immediately vested. 
  
 (3) Except as contemplated above in Sections 10(c)(ii)(l) and (2), in the event that a Grantee has a
Termination of Service, any and all of the Grantee’s Phantom Shares which have not vested prior to or as of such termination shall thereupon, and with no further action, be forfeited and cease to be outstanding, and the Grantee’s vested
Phantom Shares shall be settled as set forth in Section 10(d). 
  
 d. Settlement of Phantom Shares. 
  
 (i)
Each vested and outstanding Phantom Share shall be settled by the transfer to the Grantee of one Share; provided, however, that, the Committee at the time of grant (or, in the appropriate case, as determined by the Committee, thereafter) may provide
that a Phantom Share may be settled (A) in cash at the applicable Phantom Share Value, (B) in cash or by transfer of Shares as elected by the Grantee in accordance with procedures established by the Committee or (C) in cash or by transfer of Shares
as elected by the Company. 
  

 14 

 (ii) Each Phantom Share shall be settled with a single-sum payment by the Company;
provided, however, that, with respect to Phantom Shares of a Grantee which have a common Settlement Date (as defined below), the Committee may permit the Grantee to elect in accordance with procedures established by the Committee to receive
installment payments over a period not to exceed ten years. 
  
 (iii) (1) The settlement date with respect to a Grantee is the first day of the month to follow the Grantee’s Termination of Service (“Settlement Date”); provided, however, that a Grantee may elect, in
accordance with procedures to be adopted by the Committee, that such Settlement Date will be deferred as elected by the Grantee to a time permitted by the Committee under procedures to be established by the Committee. Unless otherwise determined by
the Committee, elections under this Section 10(d)(iii)(1) must be made at least six months before, and in the calendar year prior to the calendar year in which, the Settlement Date would occur in the absence of such election. 
  
 (2) Notwithstanding Section 10(d)(iii)(1), the Committee may
provide that distributions of Phantom Shares can be elected at any time in those cases in which the Phantom Share Value is determined by reference to Fair Market Value to the extent in excess of a base value, rather than by reference to unreduced
Fair Market Value. 
  
 (3) Notwithstanding the
foregoing, the Settlement Date, if not earlier pursuant to this Section 10(d)(iii), is the date of the Grantee’s death. 
  
 (iv) Notwithstanding any other provision of the Plan, a Grantee may receive any amounts to be paid in installments as provided in Section
10(d)(ii) or deferred by the Grantee as provided in Section 10(d)(iii) in the event of an “Unforeseeable Emergency.” For these purposes, an “Unforeseeable Emergency,” as determined by the Committee in its sole discretion, is a
severe financial hardship to the Grantee resulting from a sudden and unexpected illness or accident of the Grantee or “dependent,” as defined in Section 152(a) of the Code, of the Grantee, loss of the Grantee’s property due to
casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Grantee. The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but,
in any case, payment may not be made to the extent that such hardship is or may be relieved: 
  
 (1) through reimbursement or compensation by insurance or otherwise; 
  
 (2) by liquidation of the Grantee’s assets, to the extent the liquidation of such assets would not
itself cause severe financial hardship; or 
  
 (3) by future cessation of the making of additional deferrals under Section 10(d)(ii) and (iii). 
  
 Without limitation, the need to send a Grantee’s child to college or the desire to purchase a home shall not constitute an Unforeseeable Emergency. Distributions of amounts because of an Unforeseeable Emergency
shall be permitted to the extent reasonably needed to satisfy the emergency need. 
  

 15 

 e. Other Phantom Share Provisions. 
  
 (i) Rights to payments with respect to Phantom Shares granted under the Plan shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, garnishment, levy, execution, or other legal or equitable process, either voluntary or involuntary; and any attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber, attach or garnish, or levy or execute on any right to payments or other benefits payable hereunder, shall be void. 
  
 (ii) A Grantee may designate in writing, on forms to be prescribed by the Committee, a beneficiary or beneficiaries to receive any
payments payable after his or her death and may amend or revoke such designation at any time. If no beneficiary designation is in effect at the time of a Grantee’s death, payments hereunder shall be made to the Grantee’s estate. If a
Grantee with a vested Phantom Share dies, such Phantom Share shall be settled and the Phantom Share Value in respect of such Phantom Shares paid, and any payments deferred pursuant to an election under Section 10(d)(iii) shall be accelerated and
paid, as soon as practicable (but no later than 60 days) after the date of death to such Grantee’s beneficiary or estate, as applicable. 
  
 (iii) The Committee may establish a program under which distributions with respect to Phantom Shares may be deferred for periods in
addition to those otherwise contemplated by the foregoing provisions of this Section 10. Such program may include, without limitation, provisions for the crediting of earnings and losses on unpaid amounts and, if permitted by the Committee,
provisions under which Grantees may select from among hypothetical investment alternatives for such deferred amounts in accordance with procedures established by the Committee. 
  
 (iv) Notwithstanding any other provision of this Section 10, any fractional Phantom Share will be paid out
in cash at the Phantom Share Value as of the Settlement Date. 
  
 (v) No Phantom Share shall give any Grantee any rights with respect to Shares or any ownership interest in the Company. Except as may be provided in accordance with Section 11, no provision of the Plan shall be
interpreted to confer upon any Grantee of a Phantom Share any voting, dividend or derivative or other similar rights with respect to any Phantom Share. 
  
 f. Claims Procedures. 
  
 (i) The Grantee, or his beneficiary hereunder or authorized representative, may file a claim for payments with respect to Phantom Shares
under the Plan by written communication to the Committee or its designee. A claim is not considered filed until such communication is actually received. Within 90 days (or, if special circumstances require an extension of time for processing, 180
days, in which case notice of such special circumstances should be provided within the initial 90-day period) after the filing of the claim, the Committee will either: 
  
 (1) approve the claim and take appropriate steps for satisfaction of the claim; or 
  

 16 

 (2) if the claim is wholly or partially denied, advise the claimant of such denial by
furnishing to him or her a written notice of such denial setting forth (A) the specific reason or reasons for the denial; (B) specific reference to pertinent provisions of the Plan on which the denial is based and, if the denial is based in whole or
in part on any Rule of construction or interpretation adopted by the Committee, a reference to such rule, a copy of which shall be provided to the claimant; (C) a description of any additional material or information necessary for the claimant to
perfect the claim and an explanation of the reasons why such material or information is necessary; and (D) a reference to this Section 10(f) as the provision setting forth the claims procedure under the Plan. 
  
 (ii) The claimant may request a review of any denial of his
or her claim by written application to the Committee within 60 days after receipt of the notice of denial of such claim. Within 60 days (or, if special circumstances require an extension of time for processing, 120 days, in which case notice of such
special circumstances should be provided within the initial 60-day period) after receipt of written application for review, the Committee will provide the claimant with its decision in writing, including, if the claimant’s claim is not
approved, specific reasons for the decision and specific references to the Plan provisions on which the decision is based. 
  
 11. PROVISIONS APPLICABLE TO DIVIDEND EQUIVALENT RIGHTS. 
  
 a. Grant of DERs. Subject to the other terms of the Plan (including, without limitation, Section 7(a)), the Committee may, in its discretion as reflected
by the terms of the Agreements, authorize the granting of DERs to Eligible Persons based on the dividends declared on Common Stock, to be credited as of the dividend payment dates, during the period between the date a Grant is issued, and the date
such Grant is exercised, vests or expires, as determined by the Committee. Such DERs shall be converted to cash or additional Shares by such formula and at such time and subject to such limitation as may be determined by the Committee. With respect
to DERs granted with respect to Options intended to be qualified performance-based compensation for purposes of Section 162(m) of the Code, such DERs shall be payable regardless of whether such Option is exercised. If a DER is granted in respect of
another Grant hereunder, then, unless otherwise stated in the Agreement, or, in the appropriate case, as determined by the Committee, in no event shall the DER be in effect for a period beyond the time during which the applicable related portion of
the underlying Grant has been exercised or otherwise settled, or has expired, been forfeited or otherwise lapsed, as applicable. 
  
 b. Certain Terms. 
  
 (i) The term of a DER shall be set by the Committee in its discretion. 
  
 (ii) Payment of the amount determined in accordance with Section 11(a) shall be in cash, in Common Stock or
a combination of the both, as determined by the Committee at the time of grant. 
  
 c. Other Types of DERs. The Committee may establish a program under which DERs of a type whether or not described in the foregoing provisions of this Section 11 may be granted to Eligible Persons. For example, without
limitation, the Committee may grant a DER in 

  

 17 

 
respect of each Share subject to an Option or with respect to a Phantom Share, which right would consist of the right (subject to Section 11(d)) to receive a
cash payment in an amount equal to the dividend distributions paid on a Share from time to time. 
  
 d. Deferral. 
  
 (i) The Committee may establish a program under which Grantees (i) will have Phantom Shares credited, subject to the terms of Sections
10(d) and 10(e) as though directly applicable with respect thereto, upon the granting of DERs, or (ii) will have payments with respect to DERs deferred. 
  
 (ii) The Committee may establish a program under which distributions with respect to DERs may be deferred. Such program may include,
without limitation, provisions for the crediting of earnings and losses on unpaid amounts, and, if permitted by the Committee, provisions under which Grantees may select from among hypothetical investment alternatives for such deferred amounts in
accordance with procedures established by the Committee. 
  
 12.
OTHER STOCK-BASED AWARDS. The Board shall have the right to issue other Grants based upon the Common Stock having such terms and conditions as the Board may determine, including, without limitation, the grant of Shares based upon certain conditions,
and the grant of securities convertible into Common Stock. 
  
 13.
PERFORMANCE GOALS. The Committee, in its discretion, shall in the case of Grants (including, in particular, Grants other than Options) intended to qualify for an exception from the limitation imposed by Section 162(m) of the Code
(“Performance-Based Grants”) (i) establish one or more performance goals (“Performance Goals”) as a precondition to the issue of Grants, and (ii) provide, in connection with the establishment of the Performance Goals, for
predetermined Grants to those Grantees (who continue to meet all applicable eligibility requirements) with respect to whom the applicable Performance Goals are satisfied. The Performance Goals shall be based upon the criteria set forth in Exhibit A
hereto which is hereby incorporated herein by reference as though set forth in full. The Performance Goals shall be established in a timely fashion such that they are considered preestablished for purposes of the rules governing performance-based
compensation under Section 162(m) of the Code. Prior to the award of Restricted Stock hereunder, the Committee shall have certified that any applicable Performance Goals, and other material terms of the Grant, have been satisfied. Performance Goals
which do not satisfy the foregoing provisions of this Section 13 may be established by the Committee with respect to Grants not intended to qualify for an exception from the limitations imposed by Section 162(m) of the Code. 
  
 14. TERM OF PLAN. Grants may be granted pursuant to the Plan until the
expiration of ten years from the Effective Date of the Plan. 
  
 15. RECAPITALIZATION AND CHANGES OF CONTROL. 
  
 a.
Subject to any required action by stockholders and to the specific provisions of Section 16, if (i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or
substantially all of the assets or stock of the Company or a transaction similar thereto, (ii) any stock dividend, stock 

  

 18 

 
split, reverse stock split, stock combination, reclassification, recapitalization or other similar change in the capital structure of the Company, or any
distribution to holders of Common Stock other than cash dividends, shall occur or (iii) any other event shall occur which in the judgment of the Committee necessitates action by way of adjusting the terms of the outstanding Grants, then: 

 
 (1) the Committee may, in its discretion, make
appropriate adjustments to: (a) the maximum aggregate number of Shares which may be made subject to Options and DERs under the Plan, (b) the maximum aggregate number and kind of Shares of Restricted Stock that may be granted under the Plan, (c) the
maximum aggregate number of Phantom Shares and other Grants which may be granted under the Plan, (d) the maximum number of Shares with respect to which Options may be granted to any Grantee in any one calendar year and (e) the maximum number of
Shares that may underlie Grants, other than Grants of Options, in any calendar one year to any Grantee; and 
  
 (2) the Committee shall take any such action as in its discretion shall be necessary to maintain each Grantees’ rights hereunder
(including under their applicable Agreements) so that they are, in their respective Options, Phantom Shares and DERs, substantially proportionate to the rights existing in such Options, Phantom Shares and DERs prior to such event, including, without
limitation, adjustments in (A) the number of Options, Phantom Shares and DERs (and other Grants under Section 12) granted, (B) the number and kind of shares or other property to be distributed in respect of Options, Phantom Shares and DERs (and
other Grants under Section 12, as applicable, (C) the Exercise Price, Purchase Price and Phantom Share Value, and (D) performance-based criteria established in connection with Grants (to the extent consistent with Section 162(m) of the Code, as
applicable); provided that, in the discretion of the Committee, the foregoing clause (D) may also be applied in the case of any event relating to a Subsidiary if the event would have been covered under this Section 15(a) had the event related to the
Company. 
  
 To the extent that such action shall include an increase or decrease
in the number of Shares subject to all outstanding Grants, the number of Shares available under Section 6 above shall be increased or decreased, as the case may be, proportionately. 
  
 b. Any Shares or other securities distributed to a Grantee with respect to Restricted Stock or otherwise issued in
substitution of Restricted Stock pursuant to this Section 15 shall be subject to the restrictions and requirements imposed by Section 9, including depositing the certificates therefor with the Company together with a stock power and bearing a legend
as provided in Section 9(d)(i). 
  
 c. If the Company shall be
consolidated or merged with another corporation or other entity, each Grantee who has received Restricted Stock that is then subject to restrictions imposed by Section 9(e) may be required to deposit with the successor corporation the certificates
for the stock or securities or the other property that the Grantee is entitled to receive by reason of ownership of Restricted Stock in a manner consistent with Section 9(d)(ii), and such stock, securities or other property shall become subject to
the restrictions and requirements imposed by Section 9(e), and the certificates therefor or other evidence thereof shall bear a legend similar in form and substance to the legend set forth in Section 9(d)(i). 
  

 19 

 d. The judgment of the Committee with respect to any matter referred to in this Section 15 shall be
conclusive and binding upon each Grantee without the need for any amendment to the Plan. 
  
 e. Subject to any required action by stockholders, if the Company is the surviving corporation in any merger or consolidation, the rights under any outstanding Grant shall pertain and apply to the securities to which
a holder of the number of Shares subject to the Grant would have been entitled. In the event of a merger or consolidation in which the Company is not the surviving corporation, the date of exercisability of each outstanding Option and settling of
each Phantom Share or, as applicable, other Grant under Section 12, shall be accelerated to a date prior to such merger or consolidation, unless the agreement of merger or consolidation provides for the assumption of the Grant by the successor to
the Company. 
  
 f. To the extent that the foregoing adjustment
related to securities of the Company, such adjustments shall be made by the Committee, whose determination shall be conclusive and binding on all persons. 
  
 g. Except as expressly provided in this Section 15, a Grantee shall have no rights by reason of subdivision or consolidation of shares of stock of any
class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution, liquidation, merger or consolidation or spin-off of assets or stock of another corporation, and
any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares subject to a Grant or
the Exercise Price of Shares subject to an Option. 
  
 h. Grants
made pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell
or transfer all or any part of its business assets. 
  
 i. Upon
the occurrence of a Change of Control: 
  
 (i)
The Committee as constituted immediately before the Change of Control may make such adjustments as it, in its discretion, determines are necessary or appropriate in light of the Change of Control (including, without limitation, the substitution of
stock other than stock of the Company as the stock optioned hereunder, the lapse of restrictions on Shares of Restricted Stock and the acceleration of the exercisability of the Options and settling of each Phantom Share or, as applicable, other
Grant under Section 12), provided that the Committee determines that such adjustments do not have a substantial adverse economic impact on the Grantee as determined at the time of the adjustments. 
  
 (ii) Unless otherwise determined by the Committee, all
restrictions and conditions on each DER shall automatically lapse and all Grants of DERs under the Plan shall be deemed fully vested. 
  
 (iii) Notwithstanding the provisions of Section 10, the Settlement Date for Phantom Shares shall be the date of such Change of Control and
all amounts due with respect to 

  

 20 

 
Phantom Shares to a Grantee hereunder shall be paid as soon as practicable (but in no event more than 30 days) after such Change of Control, unless otherwise
determined by the Committee or such Grantee elects otherwise in accordance with procedures established by the Committee. 
  
 j. “Change of Control” shall mean the occurrence of any one of the following events: 
  
 (i) any “person,” as such term is used in Sections
13(d) and 14(d) of the Exchange Act (other than the Company, any of its affiliates, including, but not limited to, Anworth, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the
Company or any of its affiliates and, with respect to any particular Eligible Employee, other than such Eligible Employee) together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the
Exchange Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of either (A) the combined
voting power of the Company’s then outstanding securities having the right to vote in an election of the Board (“voting securities”) or (B) the number of then outstanding Shares (in either such case other than as a result of an
acquisition of securities directly from the Company); or 
  
 (ii) persons who, as of the Effective Date of the Plan, constitute the Board (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a tender offer, proxy contest,
merger or similar transaction, to constitute at least a majority of the Board, provided that any person becoming a member of the Board subsequent to the Effective Date of the Plan whose election or nomination for election was approved and/or
ratified by a vote of at least a majority of the Incumbent Directors shall, for purposes of the Plan, be considered an Incumbent Director; or 
  
 (iii) there shall occur (A) any consolidation or merger of the Company or any Subsidiary where the stockholders of the Company immediately
prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more
of the voting securities of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), (B) any sale, lease, exchange or other transfer (in one transaction or a series of transactions
contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company (other than to a person or related group of persons that immediately prior to such transaction, directly or indirectly controlled, was
controlled by, or was under common control with, the Company) or (C) any plan or proposal for the liquidation or dissolution of the Company. 
  
 Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result of an
acquisition of securities by the Company which, by reducing the number of Shares or other voting securities outstanding, increases (x) the proportionate number of Shares beneficially owned by any person to 30% or more of the Shares then outstanding
or (y) the proportionate voting power represented by the voting securities beneficially owned by any person to 30% or more of the combined voting power of all then outstanding voting securities; provided, however, that, if any person referred to

  

 21 

 
in clause (x) or (y) of this sentence shall thereafter become the beneficial owner of any additional Shares or other voting securities (other than pursuant
to a stock split, stock dividend, or similar transaction), then a “Change of Control” shall be deemed to have occurred for purposes of this subsection (j). 
  
 16. EFFECT OF CERTAIN TRANSACTIONS. In the case of (i) the dissolution or liquidation of the Company, (ii) a merger,
consolidation, reorganization or other business combination in which the Company is acquired by another entity or in which the Company is not the surviving entity, or (iii) any sale, lease, exchange or other transfer (in one transaction or a series
of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company, the Plan and the Grants issued hereunder shall terminate upon the effectiveness of any such transaction or event,
unless provision is made in connection with such transaction for the assumption of Grants theretofore granted, or the substitution for such Grants of new Grants, by the successor entity or parent thereof, with appropriate adjustment as to the number
and kind of shares and the per share exercise prices, as provided in Section 15. In the event of such termination, all outstanding Options and Grants shall be exercisable in full for at least fifteen days prior to the date of such termination
whether or not otherwise exercisable during such period. 
  
 17.
SECURITIES LAW REQUIREMENTS. 
  
 a. Legality of Issuance. The
issuance of any Shares pursuant to Grants under the Plan and the issuance of any Grant shall be contingent upon the following: 
  
 (i) the obligation of the Company to sell Shares with respect to Grants issued under the Plan shall be subject to all applicable laws,
rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee; 
  
 (ii) the Committee may make such changes to the Plan as may
be necessary or appropriate to comply with the rules and regulations of any government authority or to obtain tax benefits applicable to stock options; and 
  
 (iii) each grant of Options, Restricted Stock, Phantom Shares (or issuance of Shares in respect thereof) or DERs (or issuance of Shares in
respect thereof), or other Grant under Section 12 (or issuance of Shares in respect thereof), is subject to the requirement that, if at any time the Committee determines, in its discretion, that the listing, registration or qualification of Shares
issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance
of Options, Shares of Restricted Stock, Phantom Shares, DERs, other Grants or other Shares, no payment shall be made, or Phantom Shares or Shares issued or grant of Restricted Stock or other Grant made, in whole or in part, unless listing,
registration, qualification, consent or approval has been effected or obtained free of any conditions in a manner acceptable to the Committee. 
  
 b. Restrictions on Transfer. Regardless of whether the offering and sale of Shares under the Plan has been registered under the Act or has been registered
or qualified under the 

  

 22 

 
securities laws of any state, the Company may impose restrictions on the sale, pledge or other transfer of such Shares (including the placement of
appropriate legends on stock certificates) if, in the judgment of the Company and its counsel, such restrictions are necessary or desirable in order to achieve compliance with the provisions of the Act, the securities laws of any state or any other
law. In the event that the sale of Shares under the Plan is not registered under the Act but an exemption is available which requires an investment representation or other representation, each Grantee shall be required to represent that such Shares
are being acquired for investment, and not with a view to the sale or distribution thereof, and to make such other representations as are deemed necessary or appropriate by the Company and its counsel. Any determination by the Company and its
counsel in connection with any of the matters set forth in this Section 17 shall be conclusive and binding on all persons. Without limiting the generality of Section 6, stock certificates evidencing Shares acquired under the Plan pursuant to an
unregistered transaction shall bear a restrictive legend, substantially in the following form, and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law: 
  
 “THE SALE OF THE SECURITIES REPRESENTED HEREBY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”). ANY TRANSFER OF SUCH SECURITIES WILL BE INVALID UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF COUNSEL FOR THE ISSUER SUCH REGISTRATION IS UNNECESSARY
IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT.” 
  
 c.
Registration or Qualification of Securities. The Company may, but shall not be obligated to, register or qualify the issuance of Grants and/or the sale of Shares under the Act or any other applicable law. The Company shall not be obligated to take
any affirmative action in order to cause the issuance of Grants or the sale of Shares under the Plan to comply with any law. 
  
 d. Exchange of Certificates. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate representing Shares sold under
the Plan is no longer required, the holder of such certificate shall be entitled to exchange such certificate for a certificate representing the same number of Shares but lacking such legend. 
  
 e. Certain Loans. Notwithstanding any other provision of the Plan, the
Company shall not be required to take or permit any action under the Plan or any Agreement which, in the good-faith determination of the Company, would result in a material risk of a violation by the Company of Section 13(k) of the Exchange Act.

  
 18. AMENDMENT OF THE PLAN. The Board may from time to time,
with respect to any Shares at the time not subject to Grants, suspend or discontinue the Plan or revise or amend it in any respect whatsoever. The Board may amend the Plan as it shall deem advisable, except that no amendment may adversely affect a
Grantee with respect to Grants previously granted unless such amendments are in connection with compliance with applicable laws; provided, however, that the Board may not make any amendment in the Plan that would, if such amendment were not approved
by the holders of the Common Stock, cause the Plan to fail to comply with any requirement of applicable law or regulation, or of any applicable exchange or similar rule, unless and until the approval of the holders of such Common Stock is obtained.

  

 23 

 19. APPLICATION OF FUNDS. The proceeds received by the Company from the sale of Common Stock pursuant to
the exercise of an Option, the sale of Restricted Stock or in connection with other Grants under the Plan will be used for general corporate purposes. 
  
 20. TAX WITHHOLDING. Each Grantee shall, no later than the date as of which the value of any Grant first becomes includable in the gross income of the
Grantee for federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Company regarding payment of any federal, state or local taxes of any kind that are required by law to be withheld with respect to such income. The
Committee may, in its discretion, permit a Grantee to elect to have such tax withholding satisfied, in whole or in part, by (i) authorizing the Company to withhold a number of Shares to be issued pursuant to a Grant equal to the Fair Market Value as
of the date withholding is effected that would satisfy the minimum withholding amount due under applicable law, (ii) transferring to the Company Shares owned by the Grantee with a Fair Market Value equal to the amount of the required withholding tax
(provided that such Shares have been held for the requisite period necessary to avoid adverse accounting consequences to the Company), or (iii) in the case of a Grantee who is an Employee of the Company at the time such withholding is effected, by
withholding from the Grantee’s cash compensation. Notwithstanding anything contained in the Plan to the contrary, the Grantee’s satisfaction of any tax-withholding requirements imposed by the Committee shall be a condition precedent to the
Company’s obligation as may otherwise by provided hereunder to provide Shares to the Grantee, and the failure of the Grantee to satisfy such requirements with respect to a Grant shall cause such Grant to be forfeited. 
  
 21. NOTICES. All notices under the Plan shall be in writing, and if to the
Company, shall be delivered to the Board or mailed to its principal office, addressed to the attention of the Board; and if to the Grantee, shall be delivered personally or mailed to the Grantee at the address appearing in the records of the
Participating Company. Such addresses may be changed at any time by written notice to the other party given in accordance with this Section 21. 
  
 22. RIGHTS TO EMPLOYMENT OR OTHER SERVICE. Nothing in the Plan or in any Grant issued pursuant to the Plan shall confer on any individual any right to
continue in the employ or other service of the Participating Company (if applicable) or interfere in any way with the right of the Participating Company and its stockholders to terminate the individual’s employment or other service at any time.

  
 23. EXCULPATION AND INDEMNIFICATION. To the maximum extent
permitted by law, the Company shall indemnify and hold harmless the members of the Board and the members of the Committee from and against any and all liabilities, costs and expenses incurred by such persons as a result of any act or omission to act
in connection with the performance of such person’s duties, responsibilities and obligations under the Plan, other than such liabilities, costs and expenses as may result from the gross negligence, bad faith, willful misconduct or criminal acts
of such persons. 
  
 24. NO FUND CREATED. Any and all payments
hereunder to any Grantee under the Plan shall be made from the general funds of the Company (or, if applicable, a Participating Company), no special or separate fund shall be established or other segregation of assets made to assure such payments,
and the Phantom Shares (including for purposes of this Section 24 any 

  

 24 

 
accounts established to facilitate the implementation of Section 10(d)(iii)) and any other similar devices issued hereunder to account for Plan obligations
do not constitute Common Stock and shall not be treated as (or as giving rise to) property or as a trust fund of any kind; provided, however, that the Company (or a Participating Company) may establish a mere bookkeeping reserve to meet its
obligations hereunder or a trust or other funding vehicle that would not cause the Plan to be deemed to be funded for tax purposes or for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The obligations of the
Company (or, if applicable, a Participating Company) under the Plan are unsecured and constitute a mere promise by the Company (or, if applicable, a Participating Company) to make benefit payments in the future and, to the extent that any person
acquires a right to receive payments under the Plan from the Company (or, if applicable, a Participating Company), such right shall be no greater than the right of a general unsecured creditor of the Company (or, if applicable, a Participating
Company). Without limiting the foregoing, Phantom Shares and any other similar devices issued hereunder to account for Plan obligations are solely a device for the measurement and determination of the amounts to be paid to a Grantee under the Plan,
and each Grantee’s right in the Phantom Shares and any such other devices is limited to the right to receive payment, if any, as may herein be provided. 
  
 25. NO FIDUCIARY RELATIONSHIP. Nothing contained in the Plan (including without limitation Section 10(e)(iii)), and no action taken pursuant to the
provisions of the Plan, shall create or shall be construed to create a trust of any kind, or a fiduciary relationship between the Company, the Participating Companies, or their officers or the Committee, on the one hand, and the Grantee, the
Company, the Participating Companies or any other person or entity, on the other. 
  
 26. CAPTIONS. The use of captions in the Plan is for convenience. The captions are not intended to provide substantive rights. 
  

27. GOVERNING LAW. THE PLAN SHALL BE GOVERNED BY THE LAWS OF MARYLAND, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. 
  
 28. EXECUTION. The Company has caused the Plan to be executed in the name and
on behalf of the Company by an officer of the Company thereunto duly authorized as of this          day of
                    , 2005. 
  

			
	 BELVEDERE TRUST MORTGAGE CORPORATION,
 a Maryland corporation

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 25 

 EXHIBIT A 
  
 PERFORMANCE CRITERIA 
  
 Performance-Based Grants intended to qualify as “performance based” compensation under Section 62(m) of the Code, may be payable upon the
attainment of objective performance goals that are established by the Committee and relate to one or more Performance Criteria, in each case on specified date or over any period, up to ten years, as determined by the Committee. Performance Criteria
may be based on the achievement of the specified levels of performance under one or more of the measures set out below relative to the performance of one or more other corporations or indices. 
  
 ”Performance Criteria” means the following business criteria (or
any combination thereof) with respect to one or more of the Company, any Participating Company or any division or operating unit thereof: 
  

	 	i.)	pre-tax income, 

  

	 	ii.)	after-tax income, 

  

	 	iii.)	net income (meaning net income as reflected in the Company’s financial reports for the applicable period, on an aggregate, diluted and/or per share basis),

  

	 	iv.)	operating income, 

  

	 	v.)	cash flow, 

  

	 	vi.)	earnings per share, 

  

	 	vii.)	return on equity, 

  

	 	viii.)	return on invested capital or assets, 

  

	 	ix.)	cash and/or funds available for distribution, 

  

	 	x.)	appreciation in the fair market value of the Common Stock, 

  

	 	xi.)	return on investment, 

  

	 	xii.)	total return to stockholders (meaning the aggregate Common Stock price appreciation and dividends paid (assuming full reinvestment of dividends) during the applicable period),

  

	 	xiii.)	net earnings growth, 

  

 A-1 

	 	xiv.)	stock appreciation (meaning an increase in the price or value of the Common Stock after the date of grant of an award and during the applicable period), 

  

	 	xv.)	related return and expense ratios, 

  

	 	xvi.)	increase in revenues, 

  

	 	xvii.)	the Company’s published ranking against its peer group of real estate investment trusts based on total stockholder return, 

  

	 	xviii.)	net earnings, 

  

	 	xix.)	changes (or the absence of changes) in the per share or aggregate market price of the Company’s Common Stock, 

  

	 	xx.)	number of securities sold, 

  

	 	xxi.)	earnings before any one or more of the following items: interest, taxes, depreciation or amortization for the applicable period, as reflected in the Company’s financial reports
for the applicable period, 

  

	 	xxii.)	total revenue growth (meaning the increase in total revenues after the date of grant of an award and during the applicable period, as reflected in the Company’s financial
reports for the applicable period), and 

  

	 	(xxiii.)	increases in book value or paid in capital per share. 

  
 Except as otherwise expressly provided, all financial terms are used as defined under Generally Accepted Accounting Principles (“GAAP”) and all
determinations shall be made in accordance with GAAP, as applied by the Company in the preparation of its periodic reports to stockholders. 
  
 To the extent permitted by Section 162(m) of the Code, unless the Committee provides otherwise at the time of establishing the performance goals, for each
fiscal year of the Company, the Committee may provide for objectively determinable adjustments, as determined in accordance with GAAP, to any of the Performance Criteria described above for one or more of the items of gain, loss, profit or expense:
(A) determined to be extraordinary or unusual in nature or infrequent in occurrence, (B) related to the disposal of a segment of a business, (C) related to a change in accounting principle under GAAP, (D) related to discontinued operations that do
not qualify as a segment of a business under GAAP, and (E) attributable to the business operations of any entity acquired by the Company during the fiscal year. 
  

 A-2

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