Document:

Exhibit 10.24

 

QUEST PATENT RESEARCH CORP.

 

2017 EQUITY INCENTIVE PLAN

 

 

1. Purpose.
The purpose of the Quest Patent Research Corp. 2017 Equity Incentive Plan is to provide a means through which the Company and
its Affiliates may attract and retain key personnel and to provide a means whereby directors, officers, managers, employees, consultants
and advisors of the Company and its Affiliates can acquire and maintain an equity interest in the Company, or be paid incentive
compensation, which may (but need not) be measured by reference to the value of Common Stock, thereby strengthening their commitment
to the welfare of the Company and its Affiliates and aligning their interests with those of the Company’s stockholders.

 

2. Definitions.
The following definitions shall be applicable throughout this Plan:

 

(a) “Affiliate”
means (i) any person or entity that directly or indirectly controls, is controlled by or is under common control with the
Company and/or (ii) to the extent provided by the Committee, any person or entity in which the Company has a significant interest
as determined by the Committee in its discretion. The term “control” (including, with correlative meaning, the terms
“controlled by” and “under common control with”), as applied to any person or entity, means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such person or entity,
whether through the ownership of voting or other securities, by contract or otherwise.

 

(b) “Award”
means, individually or collectively, any Nonqualified Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit or Stock Bonus Award granted under this Plan.

 

(c) “Award
Agreement” means an agreement made and delivered in accordance with Section 14(a) of this Plan evidencing the grant
of an Award hereunder.

 

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

 

(e) “Business Day”
means any day other than a Saturday, a Sunday or a day on which banking institutions in New York City are authorized or obligated
by federal law or executive order to be closed for all or part of a normal business day.

 

     

    

    

 

(f) “Cause”
means, in the case of a particular Award, unless the applicable Award Agreement otherwise provides (i) the Company or an Affiliate
having “cause” to terminate a Participant’s employment or service, as defined in any employment or consulting
agreement or similar document or policy between the Participant and the Company or an Affiliate in effect at the time of such termination
or (ii) in the absence of any such employment or consulting agreement, document or policy (or the absence of any definition
of “Cause” contained therein), (A) a continuing material breach or material default (including, without limitation,
any material dereliction of duty) by Participant of any agreement between the Participant and the Company, except for any such
breach or default which is caused by the Disability of the Participant, or a continuing failure by the Participant to follow the
direction of a duly authorized representative of the Company; (B) gross negligence, willful misfeasance or breach of fiduciary
duty by the Participant; (C) the commission by the Participant of an act of fraud, embezzlement or any felony or other crime of
dishonesty in connection with the Participant’s duties; or (D) conviction of the Participant of a felony or any other crime
that would materially and adversely affect: (i) the business or reputation of the Company or (ii) the performance of the Participant’s
duties to the Company. Any determination of whether Cause exists shall be made by the Committee in its sole discretion.

 

(g) “Change
in Control” shall, in the case of a particular Award, unless the applicable Award Agreement states otherwise or contains
a different definition of “Change in Control,” be deemed to occur upon:

 

(i) A tender offer (or series
of related offers) shall be made and consummated for the ownership of 50% or more of the outstanding voting securities of the
Company (which percentage shall include any voting securities owned by the tendering party prior to the commencement of the tender
offer) unless as a result of such tender offer more than 50% of the outstanding voting securities of the surviving or resulting
corporation or entity shall be owned in the aggregate by (A) the stockholders of the Company (as of the time immediately prior
to the commencement of such offer excluding shares held by the Person making the tender offer), or (B) any employee benefit plan
of the Company or its Subsidiaries, and their Affiliates;

 

(ii) The Company shall
be merged or consolidated with another corporation, unless as a result of such merger or consolidation more than 50% of the outstanding
voting securities of the surviving or resulting corporation or entity shall be owned in the aggregate by (A) the stockholders of
the Company (as of the time immediately prior to such transaction); provided, that a merger or consolidation of the Company
with another corporation which is controlled by Persons owning more than 50% of the outstanding voting securities of the Company
shall not constitute a Change in Control unless the Committee, in its discretion, determines otherwise, or (B) any employee benefit
plan of the Company or its Subsidiaries, and their Affiliates;

 

(iii) The Company shall
sell substantially all of its assets to another entity that is not wholly owned by the Company, unless as a result of such sale
more than 50% of such assets shall be owned in the aggregate by (A) the stockholders of the Company (as of the time immediately
prior to such transaction), or (B) any employee benefit plan of the Company or its Subsidiaries, and their Affiliates;

 

(iv) A Person shall
acquire 35% or more of the outstanding voting securities of the Company (whether directly, indirectly, beneficially or of record),
unless as a result of such acquisition more than 35% of the outstanding voting securities of the surviving or resulting corporation
or entity shall be owned in the aggregate by (A) the stockholders of the Company (as of the time immediately prior to the first
acquisition of such securities by such Person), or (B) any employee benefit plan of the Company or its Subsidiaries, and their
Affiliates; or

 

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(v)
Either (i) the individuals who, as of the date hereof, constitute the members of the Board (the “Current Board
Members”) cease, by reason of a financing, merger, combination, acquisition, takeover or other non-ordinary course
transaction affecting the Company, to constitute at least a majority of the members of the Board unless such change is approved
by the Current Board Members or (ii) during any period of two (2) consecutive years, individuals who at the beginning of such
period constitute the Board cease for any reason to constitute at least a majority thereof unless the election of each new director
was nominated, ratified or approved by at least two-thirds (2/3) of the directors then still in office who were either directors
at the beginning of such period or who were elected or appointed with the approval or ratification of at least two-thirds (2/3)
of the directors who were directors at the beginning of such period. 

 

For purposes of this Section 2(g), ownership
of voting securities shall take into account and shall include ownership as determined by applying the provisions of Rule 13d-3(d)(I)(i)
under the Exchange Act (as in effect on the date hereof). In addition, for such purposes, “Person” shall
have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof; however,
a Person shall not include (A) the Company or any of its Subsidiaries; (B) a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any of its Subsidiaries; (C) an underwriter temporarily holding securities pursuant
to an offering of such securities; or (D) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportion as their ownership of stock of the Company.

  

(h) “Code”
means the Internal Revenue Code of 1986, as amended, and any successor thereto. References in this Plan to any section of the Code
shall be deemed to include any regulations or other interpretative guidance issued by any governmental authority under such section,
and any amendments or successor provisions to such section, regulations or guidance.

 

(i) “Committee”
means a committee of at least two people as the Board may appoint to administer this Plan or, if no such committee has been appointed
by the Board, the Board. Unless altered by an action of the Board, the Committee shall be the Compensation Committee of the Board;
provided, however, that in the event that the Board shall not have appointed a Committee, references to the Committee shall relate
to the Board.

 

(j) “Common
Stock” means the common stock, par value $0.00003 per share, of the Company (and any stock or other securities into
which such common stock may be converted or into which they may be exchanged).

 

(k) “Company”
means Quest Patent Research Corp., a Delaware corporation, together with its successors and assigns.

 

(l) “Current
Board Members” has the meaning given such term in the definition of “Change in Control.”

 

(m) “Date
of Grant” means the date on which the granting of an Award is authorized, or such other date, not earlier than the
date the grant is approved by the Committee, as may be specified in such authorization.

 

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(a) “Disability”
means any physical or mental illness, disability or incapacity of the Participant which prevents him from substantially performing
his regular duties for a period of three (3) consecutive months or four (4) months, even though not consecutive, in any twelve
(12) month period; provided, however, that if the Participant is a party to an employment, consulting or other service agreement
with the Company, “Disability” shall have the meaning set forth in such agreement. The determination of whether a Participant
has incurred a Disability shall be made by the Committee, which may rely on advice from a physician designated by the Committee,
whose determination shall be final and binding. Notwithstanding the foregoing, for purposes of Section 409A of the Code and for
any Award which constitutes an award subject to said Section 409A, Disability shall have the meaning set forth in Section 409A(a)(2)(C)
of the Code or any subsequent provision.

 

(n) “Effective
Date” means the date as of which this Plan is adopted by the Board.

 

(o) “Eligible
Director” means a person who is (i) a “non-employee director” within the meaning of Rule 16b-3 under
the Exchange Act if the Company’s Common Stock is registered pursuant to the Exchange Act, and (ii) an “outside
director” within the meaning of Section 162(m) of the Code.

 

(p) “Eligible
Person” means any (i) individual employed by the Company or an Affiliate; provided, however,
that no such employee covered by a collective bargaining agreement shall be an Eligible Person unless and to the extent that such
eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating thereto; (ii) director
of the Company or an Affiliate; or (iii) consultant or advisor to the Company or an Affiliate; provided, that no consultant
or advisor shall be entitled to an Award under this Plan unless such consultant or advisor is (x) a natural persons, (y) provides
bona fide services to the Company; and (z) the services are not in connection with the offer or sale of securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

(q) “Exchange
Act” means the Securities Exchange Act of 1934, as amended, including any rules, regulations or other interpretative
guidance issued by any governmental authority under such section or rule, and any amendments or successor provisions to such section,
rules, regulations or guidance.

 

(r) “Exercise
Price” has the meaning given such term in Section 7(b) of this Plan.

 

(s) “Fair
Market Value,” unless otherwise provided by the Committee in accordance with all applicable laws, rules regulations
and standards, means, on a given date, (i) if the Common Stock is listed on a securities exchange, the closing sales price on the
principal such exchange on such date or, in the absence of reported sales on such date, the closing sales price on the immediately
preceding date; provided, that if there are no reported sales on either of such dates, the average of the closing bid and asked
prices on such shall be used, or (ii) if the Common Stock is not listed on a securities exchange, the mean between the bid and
asked prices as quoted on such date by any nationally recognized interdealer quotation system or other service that provides such
service which is selected by the Committee, or (iii) if the Common Stock is not quoted on an interdealer quotation system or it
is determined that the fair market value is not properly reflected by such quotations, Fair Market Value will be determined by
such other method as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A.

 

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(t) “Immediate
Family Members” shall have the meaning set forth in Section 14(b)(ii) of this Plan.

 

(u) “Incentive
Stock Option” means an Option that is designated by the Committee as an incentive stock option as described in Section 422
of the Code and otherwise meets the requirements set forth in this Plan.

 

(v) “Indemnifiable
Person” shall have the meaning set forth in Section 4(e) of this Plan.

 

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

 

(x) “Option”
means an Award granted under Section 7 of this Plan.

 

(y) “Option
Period” has the meaning given such term in Section 7(c) of this Plan.

 

(z) “Participant”
means an Eligible Person who has been selected by the Committee to participate in this Plan and to receive an Award pursuant to
Section 6 of this Plan.

 

(aa) “Permitted
Transferee” shall have the meaning set forth in Section 14(b) of this Plan.

 

(bb) “Person”
has the meaning given such term in the definition of “Change in Control.”

 

(cc) “Plan”
means this Quest Patent Research Corp. 2017 Equity Incentive Plan, as amended from time to time.

 

(dd) “Retirement”
means, unless otherwise provided in the Award or pursuant to an agreement between the Company or an Affiliate and the Participant,
the fulfillment of each of the following conditions: (i) the Participant is good standing with the Company as determined by the
Committee; (ii) the voluntary termination by a Participant of such Participant’s employment or service to the Company and
(iii) that at the time of such voluntary termination, the sum of: (A) the Participant’s age (calculated to the nearest month,
with any resulting fraction of a year being calculated as the number of months in the year divided by 12) and (B) the Participant’s
years of employment or service with the Company (calculated to the nearest month, with any resulting fraction of a year being calculated
as the number of months in the year divided by 12) equals at least 62 (provided that, in any case, the foregoing shall only be
applicable if, at the time of such Retirement, the Participant shall be at least 55 years of age and shall have been employed by
or served with the Company for no less than five years).

 

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(ee) “Restricted
Period” means the period of time determined by the Committee during which an Award is subject to restrictions or,
as applicable, the period of time within which performance is measured for purposes of determining whether an Award has been earned.

 

(ff) “Restricted
Stock Unit” means an unfunded and unsecured promise to deliver Common Stock, cash, other securities or other property,
subject to certain restrictions (including, without limitation, a requirement that the Participant remain continuously employed
or provide continuous services for a specified period of time), granted under Section 9 of this Plan.

 

(gg) “Restricted
Stock” means Common Stock, subject to certain specified restrictions (including, without limitation, a requirement
that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under
Section 9 of this Plan.

 

(hh) “SAR
Period” has the meaning given such term in Section 8(c) of this Plan.

 

(ii) “Securities
Act” means the Securities Act of 1933, as amended, and any successor thereto, and includes any rules, regulations
or other official interpretative guidance issued by any governmental authority under such section, and any amendments or successor
provisions to such section, rules, regulations or guidance.

 

(jj) “Stock
Appreciation Right” or “SAR” means an Award granted under Section 8 of this Plan which,
if granted to a resident of the United States, meets all of the requirements of Section 1.409A-1(b)(5)(i)(B) of the Treasury Regulations.

 

(kk) “Stock
Bonus Award” means an Award granted under Section 10 of this Plan.

 

(ll) “Strike
Price” means, except as otherwise provided by the Committee in the case of Substitute Awards, (i) in the case
of a SAR granted in tandem with an Option, the Exercise Price of the related Option, or (ii) in the case of a SAR granted
independent of an Option, the Fair Market Value of Common Stock on the Date of Grant.

 

(mm) “Subsidiary”
means, with respect to any specified Person:

 

(i) any corporation,
association or other business entity of which more than 50% of the total voting power of shares of voting securities (without regard
to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively
transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person (or a combination thereof); and

 

(ii) any partnership
or limited liability company (or any comparable foreign entity) (a) the sole general partner or managing member (or functional
equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person or (b) the only general
partners or managing members (or functional equivalents thereof) of which are that Person or one or more Subsidiaries of that Person
(or any combination thereof).

 

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(nn) “Substitute
Award” has the meaning given such term in Section 5(e).

 

(oo) “Treasury
Regulations” means any regulations, whether proposed, temporary or final, promulgated by the U.S. Department of Treasury
under the Code, and any successor provisions.

 

3. Effective Date;
Duration. This Plan shall be effective on the date on which it is approved by the Board.

 

4. Administration.

 

(a) The Committee shall
administer this Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated under the Exchange Act if
the Common Stock is registered pursuant to the Exchange Act (if the Board is not acting as the Committee under this Plan) or necessary
to obtain the exception for performance-based compensation under Section 162(m) of the Code, as applicable, it is intended
that each member of the Committee shall, at the time he takes any action with respect to an Award under this Plan, be an Eligible
Director. However, the fact that a Committee member shall fail to qualify as an Eligible Director shall not invalidate any Award
granted by the Committee that is otherwise validly granted under this Plan. The acts of a majority of the members present at any
meeting at which a quorum is present or acts approved in writing by a majority of the Committee shall be deemed the acts of the
Committee. Whether a quorum is present shall be determined based on the Committee’s charter as approved by the Board.

 

(b) Subject to the provisions
of this Plan and applicable law, the Committee shall have the sole and plenary authority, in addition to other express powers and
authorizations conferred on the Committee by this Plan and its charter, to: (i) designate Participants; (ii) determine
the type or types of Awards to be granted to a Participant; (iii) determine the number of Common Stock to be covered by, or
with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine the
terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled
or exercised in cash, Common Stock, other securities, other Awards or other property, or canceled, forfeited, or suspended, and
the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine whether,
to what extent, and under what circumstances the delivery of cash, Common Stock, other securities, other Awards or other property
and other amounts payable with respect to an Award shall be made; (vii) interpret, administer, reconcile any inconsistency
in, settle any controversy regarding, correct any defect in and/or complete any omission in this Plan and any instrument or agreement
relating to, or Award granted under, this Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint
such agents as the Committee shall deem appropriate for the proper administration of this Plan; (ix) accelerate the vesting
or exercisability of, payment for or lapse of restrictions on, Awards; and (x) make any other determination and take any other
action that the Committee deems necessary or desirable for the administration of this Plan.

 

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(c) The Committee may,
by resolution, expressly delegate to a special committee, consisting of one or more directors who may but need not be officers
of the Company, the authority, within specified parameters as to the number and types of Awards, to (i) designate officers and/or
employees of the Company or any of its Affiliates to be recipients of Awards under this Plan, and (ii) to determine the number
of such Awards to be received by any such Participants; provided, however, that such delegation of duties and responsibilities
may not be made with respect to grants of Awards to persons (i) subject to Section 16 of the Exchange Act or (ii) who
are, or who are reasonably expected to be, “covered employees” for purposes of Section 162(m) of the Code. The
acts of such delegates shall be treated as acts of the Board, and such delegates shall report regularly to the Board and the Committee
regarding the delegated duties and responsibilities and any Awards granted.

 

(d) Unless otherwise
expressly provided in this Plan, all designations, determinations, interpretations, and other decisions under or with respect to
this Plan or any Award or any documents evidencing Awards granted pursuant to this Plan shall be within the sole discretion of
the Committee, may be made at any time and shall be final, conclusive and binding upon all persons or entities, including, without
limitation, the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, and any stockholder of the Company.

 

(e) No member of the
Board, the Committee, delegate of the Committee or any employee, advisor or agent of the Company or the Board or the Committee
(each such person, an “Indemnifiable Person”) shall be liable for any action taken or omitted to be taken
or any determination made in good faith with respect to this Plan or any Award hereunder. Each Indemnifiable Person shall be indemnified
and held harmless by the Company against and from (and the Company shall pay or reimburse on demand for) any loss, cost, liability,
or expense (including court costs and attorneys’ fees) that may be imposed upon or incurred by such Indemnifiable Person
in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person may be a party or in which
such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken under this Plan or any Award Agreement
and against and from any and all amounts paid by such Indemnifiable Person with the Company’s approval, in settlement thereof,
or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit or proceeding against such Indemnifiable
Person, provided, that the Company shall have the right, at its own expense, to assume and defend any such action, suit
or proceeding and once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such
defense with counsel of the Company’s choice. The foregoing right of indemnification shall not be available to an Indemnifiable
Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon
such Indemnifiable Person determines that the acts or omissions of such Indemnifiable Person giving rise to the indemnification
claim resulted from such Indemnifiable Person’s bad faith, fraud or willful criminal act or omission or that such right of
indemnification is otherwise prohibited by law or by the Company’s Certificate of Incorporation or Bylaws. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which any such Indemnifiable Person may
be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any other power
that the Company may have to indemnify such Indemnifiable Persons or hold them harmless.

 

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(f) Notwithstanding anything
to the contrary contained in this Plan, the Board may, in its sole discretion, at any time and from time to time, grant Awards
and administer this Plan with respect to such Awards. In any such case, the Board shall have all the authority granted to the Committee
under this Plan.

 

5. Grant of Awards;
Shares Subject to this Plan; Limitations.

 

(a) The Committee may,
from time to time, grant Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units or Stock Bonus Awards to
one or more Eligible Persons.

 

(b) Subject to Section
12 of this Plan, the Committee is authorized to deliver under this Plan an aggregate of 150,000,000 shares of Common Stock (the
“Available Shares”).

 

(c) Common Stock underlying
Awards under this Plan that are forfeited, cancelled, expire unexercised, or are settled in cash shall be available again for Awards
under this Plan at the same ratio at which they were previously granted, except that the following shares of Common Stock shall
not be available again for Awards under this Plan: (i) shares tendered or held back upon the exercise of an Option or settlement
of an Award to cover the Exercise Price of an Award; (ii) shares that are used or withheld to satisfy tax withholding obligations
of the Participant; (iii) shares for which the Company paid cash equal to the Fair Market Value of the shares of Common Stock in
lieu of issuing the Common Stock, and (iv) shares subject to a Stock Appreciation Right that are not issued in connection with
the stock settlement of the SAR upon exercise thereof.

 

(d) Common Stock delivered
by the Company in settlement of Awards may be authorized and unissued shares, shares held in the treasury of the Company, shares
purchased on the open market or by private purchase, or any combination of the foregoing.

 

(e) Subject to compliance
with Section 1.409A-3(f) of the Treasury Regulations, Awards may, in the sole discretion of the Committee, be granted under this
Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity acquired by the Company or with
which the Company combines (“Substitute Awards”). The number of shares of Common Stock underlying any
Substitute Awards shall be counted against the aggregate number of shares of Common Stock available for Awards under this Plan.

 

(f) Notwithstanding any
provision in this Plan to the contrary (but subject to adjustment as provided in Section 12), the Committee shall not grant to
any one Eligible Person in any one calendar year Awards (i) for more than 60,000,000 shares, or (ii) payable in cash in an amount
exceeding $5,000,000 in the aggregate.

 

6. Eligibility.
Participation shall be limited to Eligible Persons who have entered into an Award Agreement or who have received written notification
from the Committee, or from a person designated by the Committee, that they have been selected to participate in this Plan.

 

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7. Options.

 

(a) Generally.
Each Option granted under this Plan shall be evidenced by an Award Agreement (whether in paper or electronic medium (including
email or the posting on a web site maintained by the Company or a third party under contract with the Company)). Each Option so
granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent with
this Plan as may be reflected in the applicable Award Agreement. All Options granted under this Plan shall be Nonqualified Stock
Options.

 

(b) Exercise Price.
The exercise price (“Exercise Price”) per share of Common Stock for each Option shall not be less than
100% of the Fair Market Value of such share determined as of the Date of Grant.

 

(c) Vesting and
Expiration. Options shall vest and become exercisable in such manner and on such date or dates determined by the Committee
and as set forth in the applicable Award Agreement, and shall expire after such period, not to exceed ten (10) years from the Date
of Grant, as may be determined by the Committee (the “Option Period”). Both the unvested and the vested
portion of an Option shall immediately expire upon the termination of the Participant’s employment or service by the Company
for Cause.

 

Notwithstanding the foregoing
provisions of Section 7(c) and consistent with the requirements of applicable law, the Committee, in its sole discretion, may extend
the post-termination of employment period during which a Participant may exercise vested options.

 

(d) Method of Exercise
and Form of Payment. No Common Stock shall be delivered pursuant to the exercise of an Option until payment in full of
the Exercise Price therefor is received by the Company and the Participant has paid to the Company or otherwise provided for payment
of an amount equal to any federal, state, local and/or foreign income and employment taxes required to be withheld. Options that
have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with
the terms of the Award Agreement accompanied by payment of the Exercise Price. Unless otherwise provided by the Committee in an
Award Agreement, the Exercise Price shall be payable (i) in cash, check (subject to collection), cash equivalent and/or vested
Common Stock valued at the Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by
the Committee, by means of attestation of ownership of a sufficient number of shares of Common Stock in lieu of actual delivery
of such shares to the Company); provided, however, that such Common Stock are not subject to any pledge or other
security interest and; (ii) by such other method as the Committee may permit in accordance with applicable law, in its sole
discretion, including without limitation: (A) in other property having a fair market value (as determined by the Committee
in its discretion) on the date of exercise equal to the Exercise Price or (B) if there is a public market for the Common Stock
at such time and the Common Stock may be issued pursuant to a registration statement on Form S-8 or subsequent similar for, by
means of a broker-assisted “cashless exercise” pursuant to which the Company is delivered a copy of irrevocable instructions
to a stockbroker to sell the Common Stock otherwise deliverable upon the exercise of the Option and to deliver promptly to the
Company an amount equal to the Exercise Price or (C) by a “net exercise” method whereby the Company withholds
from the delivery of the Common Stock for which the Option was exercised that number of shares of Common Stock having a Fair Market
Value equal to the aggregate Exercise Price for the Common Stock for which the Option was exercised. Any fractional shares of Common
Stock shall be settled in cash.

 

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

 

8. Stock Appreciation
Rights.

 

(a) Generally.
Each SAR granted under this Plan shall be evidenced by an Award Agreement (whether in paper or electronic medium (including email
or the posting on a web site maintained by the Company or a third party under contract with the Company)). Each SAR so granted
shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with this Plan
as may be reflected in the applicable Award Agreement. Any Option granted under this Plan may include tandem SARs (i.e., SARs granted
in conjunction with an Award of Options under this Plan). The Committee also may award SARs to Eligible Persons independent of
any Option.

 

(b) Exercise Price.
The Exercise Price per share of Common Stock for each Option shall not be less than 100% of the Fair Market Value of such share
determined as of the Date of Grant.

 

(c) Vesting and
Expiration. A SAR granted in connection with an Option shall become exercisable and shall expire according to the same
vesting schedule and expiration provisions as the corresponding Option. A SAR granted independent of an Option shall vest and become
exercisable and shall expire in such manner and on such date or dates determined by the Committee and shall expire after such period,
not to exceed ten years, as may be determined by the Committee (the “SAR Period”); provided, however,
that notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability
of any SAR, which acceleration shall not affect the terms and conditions of such SAR other than with respect to exercisability.
Unless otherwise provided by the Committee in an Award Agreement:

 

(i) an SAR shall vest
and become exercisable with respect to 100% of the Common Stock subject to such SAR on the third anniversary of the Date of Grant;

 

(ii) the unvested portion
of a SAR shall expire upon termination of employment or service of the Participant granted the SAR, and the vested portion of such
SAR shall remain exercisable for:

 

(A) one year following
termination of employment or service by reason of such Participant’s death or Disability (with the determination of Disability
to be made by the Committee on a case by case basis), but not later than the expiration of the SAR Period;

 

    	 	11	 

    

    

 

(B) for directors, officers
and employees of the Company only, for the remainder of the SAR Period following termination of employment or service by reason
of such Participant’s Retirement;

 

(C) 90 calendar days
following termination of employment or service for any reason other than such Participant’s death, Disability or Retirement,
and other than such Participant’s termination of employment or service for Cause, but not later than the expiration of the
SAR Period; and

 

(iii) both the unvested
and the vested portion of a SAR shall expire immediately upon the termination of the Participant’s employment or service
by the Company for Cause.

 

(d) Method of Exercise.
SARs that have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance
with the terms of the Award, specifying the number of SARs to be exercised and the date on which such SARs were awarded. Notwithstanding
the foregoing, if on the last day of the Option Period (or in the case of a SAR independent of an option, the SAR Period), the
Fair Market Value exceeds the Strike Price, the Participant has not exercised the SAR or the corresponding Option (if applicable),
and neither the SAR nor the corresponding Option (if applicable) has expired, such SAR shall be deemed to have been exercised by
the Participant on such last day and the Company shall make the appropriate payment therefor.

 

(e) Payment.
Upon the exercise of a SAR, the Company shall pay to the Participant the number of shares subject to the SAR that are being exercised
multiplied by a fraction, the numerator of which is the amount by which the Fair Market Value of one share of Common Stock on the
exercise date exceeds Strike Price and the denominator of which is the Fair Market Value on such date, and subtracting therefrom
an amount equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld which the Participant
has not otherwise provided for. Unless the SAR Agreement otherwise provides, the Company shall issue the number of shares of Common
Stock computed as provided in the previous sentence or pay the Fair Market Value of such shares in cash, or any combination thereof,
as determined by the Committee. Any fractional share of Common Stock shall be settled in cash.

 

9. Restricted Stock
and Restricted Stock Units.

 

(a) Generally.
Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement (whether in paper or electronic
medium (including email or the posting on a web site maintained by the Company or a third party under contract with the Company)).
Each such grant shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent
with this Plan as may be reflected in the applicable Award Agreement. Restricted Stock and Restricted Stock Units shall be subject
to such restrictions on transferability and other restrictions as the Committee may impose (including, for example, limitations
on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). Except as otherwise provided
in an Award Agreement, a Participant shall have none of the rights of a stockholder with respect to Restricted Stock Units until
such time as Common Stock are paid in settlement of such Awards.

 

    	 	12	 

    

    

 

(b) Restricted
Accounts; Escrow or Similar Arrangement. Upon the grant of Restricted Stock, a book entry in a restricted account shall
be established in the Participant’s name at the Company’s transfer agent and, if the Committee determines that the
Restricted Stock shall be held by the Company or in escrow rather than held in such restricted account pending the release of the
applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (i) an
escrow agreement satisfactory to the Committee, if applicable, and (ii) the appropriate stock power (endorsed in blank) with
signature medallion guaranteed with respect to the Restricted Stock covered by such agreement. If a Participant shall fail to execute
an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and blank stock power within the amount
of time specified by the Committee, the Award shall be null and void ab initio. Subject to the restrictions set forth in
this Section 9 and the applicable Award Agreement, the Participant generally shall have the rights and privileges of a stockholder
as to such Restricted Stock, including without limitation the right to vote such Restricted Stock and the right to receive dividends,
if applicable. To the extent shares of Restricted Stock are forfeited, any stock certificates issued to the Participant evidencing
such shares shall be returned to the Company, and all rights of the Participant to such shares and as a stockholder with respect
thereto shall terminate without further obligation on the part of the Company.

 

(c) Vesting; Acceleration
of Lapse of Restrictions. The Restricted Period shall lapse with respect to Restricted Stock and Restricted Stock Units
at such times and under such conditions as are determined by the Committee.

 

(d) Delivery of
Restricted Stock and Settlement of Restricted Stock Units. (i) Upon the expiration of the Restricted Period with respect
to any shares of Restricted Stock, the restrictions set forth in the applicable Award Agreement shall be of no further force or
effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon
such expiration, the Company shall deliver to the Participant, or his beneficiary, without charge, the share certificate evidencing
the shares of Restricted Stock that have not then been forfeited and with respect to which the Restricted Period has expired (rounded
down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable to any particular
share of Restricted Stock shall be distributed to the Participant in cash or, at the sole discretion of the Committee, in shares
of Common Stock having a Fair Market Value equal to the amount of such dividends, upon the release of restrictions on such share
and, if such share is forfeited, the Participant shall have no right to such dividends (except as otherwise set forth by the Committee
in the applicable Award Agreement).

 

(ii) Unless otherwise
provided by the Committee in an Award Agreement, upon the expiration of the Restricted Period with respect to any outstanding Restricted
Stock Units, the Company shall deliver to the Participant, or his beneficiary, without charge, one share of Common Stock for each
such outstanding Restricted Stock Unit; provided, however, that the Committee may, in its sole discretion
and subject to the requirements of Section 409A of the Code, elect to (i) pay cash or part cash and part Common Stock in lieu
of delivering only Common Stock in respect of such Restricted Stock Units or (ii) defer the delivery of Common Stock (or cash
or part Common Stock and part cash, as the case may be) beyond the expiration of the Restricted Period if such delivery would result
in a violation of applicable law until such time as is no longer the case. If a cash payment is made in lieu of delivering Common
Stock, the amount of such payment shall be equal to the Fair Market Value of the Common Stock as of the date on which the Restricted
Period lapsed with respect to such Restricted Stock Units, less an amount equal to any federal, state, local and non-U.S. income
and employment taxes required to be withheld the payment of which is not otherwise provided for by the Participant.

 

    	 	13	 

    

    

 

10. Stock Bonus
Awards. The Committee may issue unrestricted Common Stock, or other Awards denominated in Common Stock, under this Plan to
Eligible Persons, either alone or in tandem with other awards, in such amounts as the Committee shall from time to time in its
sole discretion determine, provided that the shares of Common Stock shall only be unrestricted if such shares may be issued to
the Participant pursuant a registration statement on Form S-8 or subsequent similar form. Each Stock Bonus Award granted under
this Plan shall be evidenced by an Award Agreement (whether in paper or electronic medium (including email or the posting on a
web site maintained by the Company or a third party under contract with the Company)). Each Stock Bonus Award so granted shall
be subject to such conditions not inconsistent with this Plan as may be reflected in the applicable Award Agreement.

 

11. Changes in Capital
Structure and Similar Events. In the event of (a) any dividend or other distribution (whether in the form of cash, Common
Stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, amalgamation,
consolidation, split-up, split-off, combination, repurchase or exchange of shares of Common Stock or other securities of the Company,
issuance of warrants or other rights to acquire Common Stock or other securities of the Company, or other similar corporate transaction
or event (including, without limitation, a Change in Control) that affects the Common Stock, or (b) unusual or nonrecurring
events (including, without limitation, a Change in Control) affecting the Company, any Affiliate, or the financial statements of
the Company or any Affiliate, or changes in applicable rules, rulings, regulations or other requirements of any governmental body
or securities exchange or inter-dealer quotation system, accounting principles or law, such that in either case an adjustment is
determined by the Committee in its sole discretion to be necessary or appropriate in order to prevent dilution or enlargement of
rights, then the Committee shall make any such adjustments that are equitable, including without limitation any or all of the following:

 

(i) adjusting any or
all of (A) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities
or other property) that may be delivered in respect of Awards or with respect to which Awards may be granted under this Plan (including,
without limitation, adjusting any or all of the limitations under Section 5 of this Plan) and (B) the terms of any outstanding
Award, including, without limitation, (1) the number of shares of Common Stock or other securities of the Company (or number
and kind of other securities or other property) subject to outstanding Awards or to which outstanding Awards relate, or (2) the
Exercise Price or Strike Price with respect to any Award;

 

(ii) subject to the
requirements of Section 409A of the Code, providing for a substitution or assumption of Awards, accelerating the exercisability
of, lapse of restrictions on, or termination of, Awards or providing for a period of time for exercise prior to the occurrence
of such event; and

 

    	 	14	 

    

    

 

(iii) subject to the
requirements of Section 409A of the Code, canceling any one or more outstanding Awards and causing to be paid to the holders thereof,
in cash, Common Stock, other securities or other property, or any combination thereof, the value of such Awards, if any, as determined
by the Committee (which if applicable may be based upon the price per share of Common Stock received or to be received by other
stockholders of the Company in such event), including without limitation, in the case of an outstanding Option or SAR, a cash payment
in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the Common Stock
subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR, respectively (it being understood
that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in excess of, the Fair Market
Value of a share of Common Stock subject thereto may be canceled and terminated without any payment or consideration therefor);
provided, however, that in the case of any “equity restructuring” (within the meaning of the Financial
Accounting Standards Board Statement of Financial Accounting Standards No. 123 (revised 2004) or ASC Topic 718, or any successor
thereto), the Committee shall make an equitable or proportionate adjustment to outstanding Awards to reflect such equity restructuring.
Any adjustments under this Section 11 shall be made in a manner that does not adversely affect the exemption provided pursuant
to Rule 16b-3 under the Exchange Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice,
such adjustment shall be conclusive and binding for all purposes.

 

12. Effect of Change
in Control. Except to the extent otherwise provided in an Award Agreement, in the event of a Change in Control, notwithstanding
any provision of this Plan to the contrary, with respect to all or any portion of a particular outstanding Award or Awards:

 

(a) all of the then outstanding
Options and SARs shall immediately vest and become immediately exercisable as of a time prior to the Change in Control;

 

(b) the Restricted Period
shall expire as of a time prior to the Change in Control;

 

To the extent practicable, any actions
taken by the Committee under the immediately preceding clauses (a) through (c) shall occur in a manner and at a time which allows
affected Participants the ability to participate in the Change in Control transactions with respect to the Common Stock subject
to their Awards.

 

13. Amendments and
Termination.

 

(a) Amendment and
Termination of this Plan. The Board may amend, alter, suspend, discontinue, or terminate this Plan or any portion thereof
at any time; provided, that (i) no amendment to the definition of Eligible Person in Section 2(p) or to Section 5(b) or Section
13(b) (to the extent required by the proviso in such Section 13(b)) shall be made without stockholder approval, and (ii) no such
amendment, alteration, suspension, discontinuation or termination shall be made without stockholder approval if such approval is
necessary to comply with any tax or regulatory requirement applicable to this Plan (including, without limitation, as necessary
to comply with any rules or requirements of any securities exchange or inter-dealer quotation system on which the Common Stock
may be listed or quoted or to prevent the Company from being denied a tax deduction under Section 162(m) of the Code); and,
provided, further, that any such amendment, alteration, suspension, discontinuance or termination that would
materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted shall
not to that extent be effective without the prior written consent of the affected Participant, holder or beneficiary.

 

    	 	15	 

    

    

 

(b) Amendment of
Award Agreements. The Committee may, to the extent consistent with the terms of any applicable Award Agreement, waive any
conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award theretofore granted
or the associated Award Agreement, prospectively or retroactively; provided, however that any such waiver, amendment,
alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect the rights of any
Participant with respect to any Award theretofore granted shall not to that extent be effective without the consent of the affected
Participant.

 

14. General.

 

(a) Award Agreements.
Each Award under this Plan shall be evidenced by an Award Agreement, which shall be delivered to the Participant (whether in paper
or electronic medium (including email or the posting on a web site maintained by the Company or a third party under contract with
the Company)) and shall specify the terms and conditions of the Award and any rules applicable thereto, including without limitation,
the effect on such Award of the death, Disability or termination of employment or service of a Participant, or of such other events
as may be determined by the Committee. The Company’s failure to specify any term of any Award in any particular Award Agreement
shall not invalidate such term, provided such term was duly adopted by the Board or the Committee.

 

(b) Nontransferability;
Trading Restrictions.

 

(i) Each Award shall
be exercisable only by a Participant during the Participant’s lifetime, or, if permissible under applicable law, by the Participant’s
legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered
by a Participant other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge,
attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or an Affiliate; provided that the
designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

 

(ii) Notwithstanding
the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options) to be transferred
by a Participant, with or without consideration, subject to such rules as the Committee may adopt consistent with any applicable
Award Agreement to preserve the purposes of this Plan, to: (A) any person who is a “family member” of the Participant,
as such term is used in the instructions to Form S-8 under the Securities Act (collectively, the “Immediate Family
Members”); (B) a trust solely for the benefit of the Participant and his or her Immediate Family Members; or
(C) a partnership or limited liability company whose only partners or stockholders are the Participant and his or her Immediate
Family Members; or (D) any other transferee as may be approved either (I) by the Board or the Committee in its sole discretion,
or (II) as provided in the applicable Award Agreement (each transferee described in clauses (A), (B), (C) and (D) above is hereinafter
referred to as a “Permitted Transferee”); provided, that the Participant gives the Committee advance
written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing
that such a transfer would comply with the requirements of this Plan.

 

    	 	16	 

    

    

 

(iii) The terms of
any Award transferred in accordance with subparagraph (ii) above shall apply to the Permitted Transferee and any reference in this
Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted Transferee, except that
(A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and distribution;
(B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect a registration
statement on an appropriate form covering the Common Stock to be acquired pursuant to the exercise of such Option if the Committee
determines, consistent with any applicable Award Agreement, that such a registration statement is necessary or appropriate; (C) the
Committee or the Company shall not be required to provide any notice to a Permitted Transferee, whether or not such notice is or
would otherwise have been required to be given to the Participant under this Plan or otherwise; and (D) the consequences of
the termination of the Participant’s employment by, or services to, the Company or an Affiliate under the terms of this Plan
and the applicable Award Agreement shall continue to be applied with respect to the Participant, including, without limitation,
that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified in this Plan
and the applicable Award Agreement.

 

(iv) The Committee
shall have the right, either on an Award-by-Award basis or as a matter of policy for all Awards or one or more classes of Awards,
to condition the delivery of vested Common Stock received in connection with such Award on the Participant’s agreement to
such restrictions as the Committee may determine.

 

(c) Tax Withholding.

 

(i) A Participant shall
be required to pay to the Company or any Affiliate, or the Company or any Affiliate shall have the right and is hereby authorized
to withhold, from any cash, Common Stock, other securities or other property deliverable under any Award or from any compensation
or other amounts owing to a Participant, the amount (in cash, Common Stock, other securities or other property) of any required
withholding taxes in respect of an Award, its exercise, or any payment or transfer under an Award or under this Plan and to take
such other action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment
of such withholding and taxes. In addition, the Committee, in its discretion, may make arrangements mutually agreeable with a Participant
who is not an employee of the Company or an Affiliate to facilitate the payment of applicable income and self-employment taxes.

 

(ii) Without limiting
the generality of clause (i) above, the Committee may, in its sole discretion, permit a Participant to satisfy, in whole or in
part, the foregoing withholding liability by (A) the delivery of shares of Common Stock (which are not subject to any pledge
or other security interest) owned by the Participant having a Fair Market Value equal to such withholding liability or (B) having
the Company withhold from the number of shares of Common Stock otherwise issuable or deliverable pursuant to the exercise or settlement
of the Award a number of shares of Common Stock with a Fair Market Value equal to such withholding liability.

 

    	 	17	 

    

    

 

(d) No Claim to
Awards; No Rights to Continued Employment; Waiver. No employee of the Company or an Affiliate, or other person, shall have
any claim or right to be granted an Award under this Plan or, having been selected for the grant of an Award, to be selected for
a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards.
The terms and conditions of Awards and the Committee’s determinations and interpretations with respect thereto need not be
the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants are
similarly situated. Neither this Plan nor any action taken hereunder shall be construed as giving any Participant any right to
be retained in the employ or service of the Company or an Affiliate, nor shall it be construed as giving any Participant any rights
to continued service on the Board. The Company or any of its Affiliates may at any time dismiss a Participant from employment or
discontinue any consulting relationship, free from any liability or any claim under this Plan, unless otherwise expressly provided
in this Plan or any Award Agreement. By accepting an Award under this Plan, a Participant shall thereby be deemed to have waived
any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to non-continuation of the
Award beyond the period provided under this Plan or any Award Agreement, notwithstanding any provision to the contrary in any written
employment contract or other agreement between the Company and its Affiliates and the Participant, whether any such agreement is
executed before, on or after the Date of Grant.

 

(e) International
Participants. With respect to Participants who reside or work outside of the United States of America and who are not (and
who are not expected to be) “covered employees” within the meaning of Section 162(m) of the Code, the Committee
may in its sole discretion amend the terms of this Plan or outstanding Awards (or establish a sub-plan) with respect to such Participants
in order to conform such terms with the requirements of local law or to obtain more favorable tax or other treatment for such Participants,
the Company or its Affiliates.

 

(f) Designation
and Change of Beneficiary. Each Participant may file with the Committee a written designation of one or more persons as
the beneficiary(ies) who shall be entitled to receive the amounts payable with respect to an Award, if any, due under this Plan
upon his or her death. A Participant may, from time to time, revoke or change his or her beneficiary designation without the consent
of any prior beneficiary by filing a new designation with the Committee. The last such designation filed with the Committee shall
be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective
unless received by the Committee prior to the Participant’s death, and in no event shall it be effective as of a date prior
to such receipt. If no beneficiary designation is filed by a Participant, the beneficiary shall be deemed to be his or her spouse
or, if the Participant is unmarried at the time of death, his or her estate. Upon the occurrence of a Participant’s divorce
(as evidenced by a final order or decree of divorce), any spousal designation previously given by such Participant shall automatically
terminate.

 

    	 	18	 

    

    

 

(g) Termination
of Employment/Service. Unless determined otherwise by the Committee at any point following such event: (i) neither
a temporary absence from employment or service due to illness, vacation or leave of absence nor a transfer from employment or service
with the Company to employment or service with an Affiliate (or vice-versa) shall be considered a termination of employment or
service with the Company or an Affiliate; and (ii) if a Participant’s employment with the Company and its Affiliates
terminates, but such Participant continues to provide services to the Company and its Affiliates in a non-employee capacity (or
vice-versa), such change in status shall not be considered a termination of employment with the Company or an Affiliate for purposes
of this Plan unless the Committee, in its discretion, determines otherwise.

 

(h) No Rights as
a Stockholder. Except as otherwise specifically provided in this Plan or any Award Agreement, no person shall be entitled
to the privileges of ownership in respect of shares of Common Stock that are subject to Awards hereunder until such shares have
been issued or delivered to that person.

 

(i) Government
and Other Regulations.

 

(i) The obligation
of the Company to settle Awards in Common Stock or other consideration shall be subject to all applicable laws, rules, and regulations,
and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the
contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or
selling, any Common Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities
Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel, satisfactory to the Company,
that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and
conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under
the Securities Act any of the Common Stock to be offered or sold under this Plan. The Committee shall have the authority to provide
that all certificates for Common Stock or other securities of the Company or any Affiliate delivered under this Plan shall be subject
to such stop transfer orders and other restrictions as the Committee may deem advisable under this Plan, the applicable Award Agreement,
the federal securities laws, or the rules, regulations and other requirements of the Securities and Exchange Commission, any securities
exchange or inter-dealer quotation system upon which such shares or other securities are then listed or quoted and any other applicable
federal, state, local or non-U.S. laws, and, without limiting the generality of Section 9 of this Plan, the Committee may
cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. Notwithstanding
any provision in this Plan to the contrary, the Committee reserves the right to add any additional terms or provisions to any Award
granted under this Plan that it in its sole discretion deems necessary or advisable in order that such Award complies with the
legal requirements of any governmental entity to whose jurisdiction the Award is subject.

 

    	 	19	 

    

    

 

(ii) The Committee
may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions and/or
blockage and/or other market considerations would make the Company’s acquisition of Common Stock from the public markets,
the Company’s issuance of Common Stock to the Participant, the Participant’s acquisition of Common Stock from the Company
and/or the Participant’s sale of Common Stock to the public markets, illegal, impracticable or inadvisable. If the Committee
determines to cancel all or any portion of an Award in accordance with the foregoing, unless doing so would violate Section 409A
of the Code, the Company shall pay to the Participant an amount equal to the excess of (A) the aggregate Fair Market Value
of the Common Stock subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or the date
that the shares would have been vested or delivered, as applicable), over (B) the aggregate Exercise Price or Strike Price
(in the case of an Option or SAR, respectively) or any amount payable as a condition of delivery of Common Stock (in the case of
any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation of such Award
or portion thereof. The Committee shall have the discretion to consider and take action to mitigate the tax consequence to the
Participant in cancelling an Award in accordance with this clause.

 

(j) Payments to
Persons Other Than Participants. If the Committee shall find that any person to whom any amount is payable under this Plan
is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment due to such person
or his estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so directs
the Company, be paid to his spouse, child, relative, an institution maintaining or having custody of such person, or any other
person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment
shall be a complete discharge of the liability of the Committee and the Company therefor.

 

(k) Nonexclusivity
of this Plan. Neither the adoption of this Plan by the Board nor the submission of this Plan to the stockholders of the
Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements
as it may deem desirable, including, without limitation, the granting of stock options or other equity-based awards otherwise than
under this Plan, and such arrangements may be either applicable generally or only in specific cases.

 

(l) No Trust or
Fund Created. Neither this Plan nor any Award shall create or be construed to create a trust or separate fund of any kind
or a fiduciary relationship between the Company or any Affiliate, on the one hand, and a Participant or other person or entity,
on the other hand. No provision of this Plan or any Award shall require the Company, for the purpose of satisfying any obligations
under this Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise
to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence
of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under this Plan
other than as general unsecured creditors of the Company, except that insofar as they may have become entitled to payment of additional
compensation by performance of services, they shall have the same rights as other employees under applicable law.

 

(m) Reliance on
Reports. Each member of the Committee and each member of the Board shall be fully justified in acting or failing to act,
as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon any report made
by the independent public accountant of the Company and its Affiliates and/or any other information furnished in connection with
this Plan by any agent of the Company or the Committee or the Board, other than himself.

 

    	 	20	 

    

    

 

(n) Relationship
to Other Benefits. No payment under this Plan shall be taken into account in determining any benefits under any pension,
retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such
other plan.

 

(o) Governing Law.
This Plan shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect
to the conflict of laws provisions.

 

(p) Severability.
If any provision of this Plan or any Award or Award Agreement is or becomes or is deemed to be invalid, illegal, or unenforceable
in any jurisdiction or as to any person or entity or Award, or would disqualify this Plan or any Award under any law deemed applicable
by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws in the manner that most
closely reflects the original intent of the Award or this Plan, or if it cannot be construed or deemed amended without, in the
determination of the Committee, materially altering the intent of this Plan or the Award, such provision shall be construed or
deemed stricken as to such jurisdiction, person or entity or Award and the remainder of this Plan and any such Award shall remain
in full force and effect.

 

(q) Obligations
Binding on Successors. The obligations of the Company under this Plan shall be binding upon any successor corporation or
organization resulting from the merger, amalgamation, consolidation or other reorganization of the Company, or upon any successor
corporation or organization succeeding to substantially all of the assets and business of the Company.

 

(r) Expenses; Gender;
Titles and Headings. The expenses of administering this Plan shall be borne by the Company and its Affiliates. Masculine
pronouns and other words of masculine gender shall refer to both men and women. The titles and headings of the sections in this
Plan are for convenience of reference only, and in the event of any conflict, the text of this Plan, rather than such titles or
headings shall control.

 

(s) Other Agreements.
Notwithstanding the above, the Committee may require, as a condition to the grant of and/or the receipt of Common Stock under an
Award, that the Participant execute lock-up, stockholder or other agreements, as it may determine in its sole and absolute discretion.

 

    	 	21	 

    

    

 

(t) Section 409A.
This Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from, the requirements of Section
409A of the Code. This Plan and all Awards granted under this Plan shall be administered, interpreted, and construed in a manner
consistent with Section 409A of the Code to the extent necessary to avoid the imposition of additional taxes under Section 409A(a)(1)(B)
of the Code. Notwithstanding anything in this Plan to the contrary, in no event shall the Committee exercise its discretion to
accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred compensation within the
meaning of Section 409A of the Code unless, and solely to the extent that, such accelerated payment or settlement is permissible
under Section 1.409A-3(j)(4) of the Treasury Regulations. If a Participant is a “specified employee” (within the meaning
of Section 1.409A-1(i) of the Treasury Regulations) at any time during the twelve (12)-month period ending on the date of his termination
of employment, and any Award hereunder subject to the requirements of Section 409A of the Code is to be satisfied on account of
the Participant’s termination of employment, satisfaction of such Award shall be suspended until the date that is six (6)
months after the date of such termination of employment.

 

(u) Payments.
Participants shall be required to pay, to the extent required by applicable law, any amounts required in order to receive Common
Stock under any Award made under this Plan.

 

 

 

 

22trilinc-ex101_195.htm

Exhibit 10.1

 

 

SECOND AMENDED AND RESTATED ADVISORY AGREEMENT

between

TriLinc Advisors, LLC,

and

TriLinc Global Impact Fund, LLC

February 14, 2018

 

NY 247105333v2

 

TABLE OF CONTENTS

Page

	
Article 1 DEFINITIONS
	
1

	
Article 2 APPOINTMENT
	
3

	
Article 3 DUTIES OF THE ADVISOR
	
3

3.01Offering Services3

3.02Acquisition Services4

3.03Asset Management Services5

3.04Accounting and Other Administrative Services6

3.05Member Services7

3.06Financing Services7

3.07Disposition Services8

3.08Other Services.8

3.09Sub-Advisors8

	
Article 4 AUTHORITY OF ADVISOR
	
8

4.01General8

4.02Powers of the Advisor8

4.03Approval by the Managers9

4.04Fiduciary Obligation.9

	
Article 5 BANK ACCOUNTS
	
9

	
Article 6 RECORDS AND FINANCIAL STATEMENTS
	
9

	
Article 7 LIMITATION ON ACTIVITIES
	
9

	
Article 8 RELATIONSHIP WITH MANAGERS AND OFFICERS
	
10

	
Article 9 FEES
	
10

9.01Asset Management Fees10

1

NY 247105333v2

 

9.02Subordinated Incentive Fee on Income11

9.03Incentive Fee on Capital Gains.11

	
Article 10 EXPENSES
	
11

10.01General11

10.02Reimbursement to Advisor13

10.03Organization and Offering Expenses.13

10.04Operating Expenses.13

10.05Limitation on Fees and Expenses13

	
Article 11 OTHER SERVICES
	
13

	
Article 12 RELATIONSHIP OF ADVISOR AND COMPANY; OTHER ACTIVITIES AND OBLIGATIONS OF THE ADVISOR
	
14

12.01Relationship14

12.02Time Commitment14

12.03Investment Opportunities and Allocation14

12.04Representations of the Advisor.14

	
Article 13 THE TRILINC NAME
	
15

	
Article 14 TERM AND TERMINATION OF THE AGREEMENT
	
15

14.01Term15

14.02Termination by Either Party15

14.03Termination by the Company15

14.04Termination by the Advisor15

14.05Payments on Termination and Survival of Certain Rights and Obligations16

	
Article 15 ASSIGNMENT
	
16

	
Article 16 INDEMNIFICATION AND LIMITATION OF LIABILITY
	
17

16.01Indemnification by the Company17

16.02Indemnification by the Advisor17

2

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16.03Advisor’s Liability17

	
Article 17  MISCELLANEOUS
	
19

17.01Notices19

17.02Modification19

17.03Severability19

17.04Construction19

17.05Entire Agreement19

17.06Waiver20

17.07Gender20

17.08Titles Not to Affect Interpretation20

17.09Counterparts20

 

 

3

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SECOND AMENDED AND RESTATED ADVISORY AGREEMENT

This Second Amended and Restated Advisory Agreement, dated as of February 14, 2018, is between TriLinc Advisors, LLC, a Delaware limited liability company, and TriLinc Global Impact Fund, LLC, a Delaware limited liability company (the “Agreement”).

W I T N E S S E T H

WHEREAS, the Company (as hereinafter defined) desires to avail itself of the knowledge, experience, sources of information, advice, assistance and certain facilities available to the Advisor (hereinafter defined) and to have the Advisor undertake the duties and responsibilities hereinafter set forth herein on the terms set forth in this Agreement; 

WHEREAS, the Advisor is willing to undertake to render such services on the terms and conditions hereinafter set forth; and

WHEREAS, the Company and the Advisor wish to amend and restate the Amended and Restated Advisory Agreement, dated as of February 23, 2014, among the parties hereto in order to renew the arrangements for an additional year and as otherwise set forth herein.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

Article 1
DEFINITIONS

The following defined terms used in this Second Amended and Restated Advisory Agreement shall have the meanings specified below:

“Acquisition Expenses” has the meaning set forth in the Operating Agreement.

“Act” means the Delaware Limited Liability Company Act, 6 Del. C. §§ 18-101 et. seq., as the same may be amended from time to time. All references herein to sections of the Act shall include any corresponding provisions of succeeding law.

“Advisor” means (i) TriLinc Advisors, LLC, a Delaware limited liability company, or (ii) any successor advisor to the Company.

“Affiliate” has the meaning set forth in the Operating Agreement.  For the purposes of this Agreement, the Advisor shall not be deemed to be an Affiliate of the Company, and vice versa.

“Board of Managers” means the Board of Managers of the Company.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.  Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.

NY 247105333v2

 

“Company” means TriLinc Global Impact Fund, LLC, a Delaware limited liability company.

“Front End Fees” has the meaning set forth in the Operating Agreement.

“GAAP” is defined in Article 6.

“Gross Assets” is defined in Section 9.01.

“Gross Proceeds” has the meaning set forth in the Operating Agreement.

“Independent Manager” has the meaning set forth in the Operating Agreement.

“Investment in Company Assets” means the amount of capital contributions actually paid or allocated to the origination or purchase of assets by the Company (including working capital reserves allocable thereto, except that working capital reserves in excess of 3% shall not be included) and other cash payments such as interest and taxes, but excluding Front End Fees.

“Manager” means a member of the Board of Managers of the Company.

“Dealer Manager” means SC Distributors, LLC, a Delaware limited liability company, or such other entity selected by the Board of Managers to act as the managing dealer for the Offering.

“Members” means the holders of record of Units.

“Offering” means a public offering of Units pursuant to any Prospectus.

“Operating Agreement” means the Fifth Amended and Restated Limited Liability Company Agreement of the Company, as amended from time to time.

“Organization and Offering Expenses” has the meaning set forth in the Operating Agreement.

“Net Assets” means the (a) cumulative proceeds generated from sales of the Company’s Units, including proceeds from the Distribution Reinvestment Plan, net of Front End Fees and (b) reduced for (i) Distributions paid to the Company’s Members that represent return of capital and (ii) amounts paid for unit repurchases pursuant to the unit repurchase program.

“Person” means an individual, corporation, partnership, estate, trust, a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity.

“Preferred Return” is defined in Section 9.02.

“Pre-incentive Fee Net Investment Income” means interest income, dividend income and any other income accrued during the calendar quarter, minus the Company’s operating expenses for the quarter, including the asset management fee and operating expenses reimbursed to the 

2

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Advisor. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

“Prospectus” means the Company’s final prospectus for any public offering within the meaning of Section 2(10) of the Securities Act of 1933, as amended.

“Securities” means any class or series of units of or interests in the Company, including units, preferred units, special units and any other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for, guarantees of, or warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing.

“Sub-Advisor” means any Person or entity that has been engaged by the Advisor, a subsidiary of the Advisor, the Company, and/or a subsidiary of the Company to source, evaluate and monitor investments of the Company, or any subsidiary of the Company, or perform other duties of the Advisor pursuant to this Agreement and has entered into a sub-advisory agreement with the Advisor, a subsidiary of the Advisor, the Company, and/or a subsidiary of the Company.

“Units” means units of limited liability company interest in the Company.

“Termination Date” means the date of termination of this Agreement.

“TriLinc” means TriLinc Global, LLC and its Affiliates.

Article 2
APPOINTMENT

The Company hereby appoints the Advisor to serve as its advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment.

Article 3
DUTIES OF THE ADVISOR

The Advisor is responsible for managing, operating, directing and supervising the operations and administration of the Company and its assets, and for overseeing the performance of the Sub-Advisors, to the fullest extent allowed by law.  The Advisor shall, either directly or by engaging an Affiliate, the Dealer Manager, the Sub-Advisors or another third party, perform the following duties:

Offering Services

.  The Advisor shall manage and supervise:

(i)Development of the product offering, including the determination of the specific terms of the Securities to be offered by the Company, preparation of all offering and related documents, and obtaining all required regulatory approvals of such documents;

3

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(ii)Along with the Dealer Manager, approval of the participating broker dealers and negotiation of the related selling agreements;

(iii)Coordination of the due diligence process relating to participating broker dealers and their review of any Prospectus and other Offering and Company documents;

(iv)Preparation and approval of all marketing materials contemplated to be used by the Dealer Manager or others in the Offering of the Company’s Securities;

(v)Along with the Dealer Manager, negotiation and coordination with the transfer agent for the receipt, collection, processing and acceptance of subscription agreements, commissions, and other administrative support functions;

(vi)Creation and implementation of various technology and electronic communications related to the Offering of the Company’s Securities; and

(vii)All other services related to organization of the Company or the Offering, whether performed and incurred by the Advisor or its Affiliates.

3.02Acquisition Services.  The Advisor shall (or shall retain other Persons to):

(i)Serve as the Company’s investment and financial advisor and provide relevant market research and economic and statistical data in connection with the assets of the Company, investment objectives and policies;

(ii)Subject to the investment objectives and policies of the Company: (a) locate, analyze and select potential investments; (b) structure and negotiate the terms and conditions of transactions pursuant to which investments will be made; (c) acquire, originate and dispose of assets and other investments on behalf of the Company (including through joint ventures); (d) arrange for financing and refinancing and make other changes in the asset or capital structure of investments in the assets and other investments of the Company; (e) select joint venture partners and structure corresponding agreements; and (f) enter into agreements for investments of the Company;

(iii)Provide global macro-economic forecasting, including in-depth analyses of developing economic regions and specific countries, global trends and currency movements;

(iv)Provide in-depth asset class analysis, including liquidity, risk and return attributes as part of initial and ongoing asset allocation;

(v)Find, due diligence and select Sub-Advisors who will be responsible for:

	
 
	
(a)
	
sourcing, underwriting, presenting and executing appropriate investments consistent with the Company’s investment policies and objectives;

	
 
	
(b)
	
managing the Company’s relationship with borrowers and other investment counterparts; and

4

NY 247105333v2

 

	
 
	
(c)
	
managing investment documentation and monitoring investment compliance with all relevant covenants, representations and warranties;

(vi)Originate, underwrite and analyze potential investment opportunities consistent with the Company’s investment policies and objectives and with the Company’s investment guidelines and restrictions as described in the Prospectus or as otherwise provided to the Advisor;  

(vii)Structure and negotiate the terms and conditions of the Company’s investments; 

(viii)Make investments on the Company’s behalf based on the underwriting guidelines approved by the Board of Managers and in compliance with the Company’s investment objectives and policies and with the Company’s investment guidelines and restrictions as described in the Prospectus or as otherwise provided to the Advisor;  

(ix)Perform borrower level and market specific due diligence on prospective investments and create due diligence reports summarizing the results of such work; and

(x)Consult with the Company’s officers and the Board of Managers and provide assistance with the evaluation and approval of potential investment dispositions and sales, including reports to the Board of Managers regarding the foregoing.

3.03Asset Management Services. The Advisor shall (or shall retain other Persons to):

(i)Investigate, select, and, on behalf of the Company, engage and conduct business with such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder, including but not limited to consultants, accountants, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers and insurance agents and any and all Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services;

(ii)Monitor applicable markets and obtain reports (which may be prepared by the Advisor or its Affiliates) where appropriate, concerning the value of investments of the Company;

(iii)Monitor and evaluate the performance of investments of the Company;

(iv)Provide daily management services to the Company and perform and supervise the various management and operational functions related to the Company’s investments;

(v)Supervise, monitor and evaluate the performance of Sub-Advisors and individual investments in accordance with the Company’s investment policies and objectives;

5

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(vi)Coordinate and manage relationships between the Company and any joint venture partners; 

(vii)Provide portfolio management functions;

(viii)Oversee, monitor and asset manage in-place portfolio assets in each of the regions in which the Sub-Advisors operate; 

(ix)Evaluate the Company’s investments to ensure such investments meet the Company’s impact objectives and regularly monitor and report on the economic, social and/or environmental impact of the Company’s investments; 

(x)Enforce rights and recourse of the Company granted pursuant to investment documents where appropriate; 

(xi)Supervise, monitor and evaluate the performance of investments and collateral assets; 

(xii)Evaluate the Company’s investments to ensure such investments meet the Company’s environmental, social and governance (ESG) criteria and regularly monitor and report on the ESG practices; and

(xiii)Pursue transaction modifications.

3.04Accounting and Other Administrative Services.  The Advisor shall (or shall retain other Persons to): 

(i)Manage and perform the various administrative functions necessary for the management of the day-to-day operations of the Company;

(ii)From time-to-time, or at any time reasonably requested by the Managers, make reports to the Managers on the Advisor’s performance of services to the Company under this Agreement;

(iii)Coordinate with the Company’s independent accountants and auditors to prepare and deliver to the Company’s audit committee an annual report covering the Advisor’s compliance with certain material aspects of this Agreement;

(iv)Provide or arrange for administrative services and items, legal and other services, office space, office furnishings, personnel and other overhead items necessary and incidental to the Company’s business and operations;

(v)Provide financial and operational planning services;

(vi)Maintain accounting data and any other information concerning the activities of the Company as shall be needed to prepare and file all periodic financial reports and returns required to be filed by the Company with the Securities and Exchange Commission and any other regulatory agency, including annual financial statements;

6

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(vii)Maintain all appropriate books and records of the Company;

(viii)Oversee tax and compliance services and risk management services and coordinate with appropriate third parties, including independent accountants and other consultants, on related tax matters;

(ix)Supervise the performance of such ministerial and administrative functions as may be necessary in connection with the daily operations of the Company;

(x)Provide the Company with all necessary cash management services;

(xi)Manage and coordinate with the transfer agent regarding the distribution process and payments to Members;

(xii)Consult with the officers and Managers of the Company and assist in evaluating and obtaining adequate insurance coverage based upon risk management determinations;

(xiii)Assist in the administration of distribution reinvestment plans, transfers, redemptions, and all exception requests;

(xiv)Provide the officers and Managers with timely updates related to the overall regulatory environment affecting the Company, as well as managing compliance with such matters, including but not limited to compliance with the Sarbanes-Oxley Act of 2002;

(xv)Consult with the officers and the Board of Managers relating to the corporate governance structure and appropriate policies and procedures related thereto; and

(xvi)Oversee all reporting, record keeping, internal controls and similar matters in a manner to allow the Company to comply with applicable law including the Sarbanes-Oxley Act.

3.05Member Services.  The Advisor shall (or shall retain other Persons to):

(i)Manage communications with the Members, including answering phone calls, preparing and sending written and electronic reports, providing recommendations for marketing materials and other communications; 

(ii)Assist in public relations activities relating to the Company including, but not limited to, the development and administration of press releases, media relations, media coverage and by-lined articles and the development of websites to provide access for investors to financial reporting, financial advisor access to sales materials, and general information relating to the Company, such as government filings and informational presentations; and

(iii)Establish technology infrastructure to assist in providing Member support and service.

3.06Financing Services.  The Advisor shall (or shall retain other Persons to):

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(i)Identify and evaluate potential financing and refinancing sources, engaging a third-party broker if necessary;

(ii)Negotiate terms, arrange and execute financing agreements;

(iii)Manage relationships between the Company and its lenders; and

(iv)Monitor and oversee the service of the Company’s debt facilities and other financings.

3.07Disposition Services.  The Advisor shall (or shall retain other Persons to):

(i)Consult with the Board of Managers and provide assistance with the evaluation and approval of potential asset dispositions, sales or other liquidity events and reinvestment of returned capital; and

(ii)Structure and negotiate the terms and conditions of transactions pursuant to which investments may be sold.

3.08Other Services.  The Advisor shall perform any other services reasonably requested by the Company.

Sub-Advisors

.  The Advisor shall be responsible, either directly or through its Affiliates, for overseeing any Sub-Advisors it retains, either directly or through its Affiliates, and for paying all fees and other compensation of such Sub-Advisors.  

Article 4
AUTHORITY OF ADVISOR

General

.  All rights and powers to manage and control the day-to-day business and affairs of the Company shall be vested in the Advisor to the fullest extent allowed by law.  The Advisor shall have the power to delegate all or any part of its rights and powers to manage and control the business and affairs of the Company to such officers, employees, Affiliates, agents and representatives of the Advisor or the Company or third parties, including the Sub-Advisors and the Dealer Manager, as it may from time to time deem appropriate.  Any authority delegated by the Advisor to any other Person shall be subject to applicable law and the limitations on the rights and powers of the Advisor specifically set forth in this Agreement or the Operating Agreement.

Powers of the Advisor

.  Subject to the express limitations set forth in this Agreement, and to the right of the Advisor to delegate its responsibilities pursuant to Section 4.01, the power to direct the management, operation and policies of the Company shall to the fullest extent allowed by law be vested in the Advisor, which shall have the power by itself and shall be authorized and empowered on behalf and in the name of the Company to carry out any and all of the objectives and purposes of the Company and to perform all acts and enter into and perform all contracts and other undertakings that it may in its sole discretion deem necessary, advisable or incidental thereto to perform its obligations under this Agreement.

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Approval by the Managers

.  Notwithstanding the foregoing, the Advisor may not take any action on behalf of the Company without the prior approval of the Board of Managers or duly authorized committees thereof if the Operating Agreement or the Act require the prior approval of the Board of Managers.  The prior approval of the Corporate Governance and Conflicts Committee of the Board of Managers shall be required for each transaction between the Company and the Advisor or its Affiliates.

4.04Fiduciary Obligation.  The Advisor has a fiduciary responsibility to the Company and to the Members.

Article 5
BANK ACCOUNTS

The Advisor will maintain one or more bank accounts in the name of the Company and will collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company.  Notwithstanding the foregoing, no funds shall be commingled with the funds of the Advisor.

Article 6
RECORDS AND FINANCIAL STATEMENTS

The Advisor, in the conduct of its responsibilities to the Company, shall maintain adequate and separate books and records for the Company’s operations in accordance with United States generally accepted accounting principles (“GAAP”), which shall be supported by sufficient documentation to ascertain that such books and records are properly and accurately recorded.  Such books and records shall be the property of the Company and shall be available for inspection by the Board of Managers and by counsel, auditors and other authorized agents of the Company, at any time or from time to time during normal business hours.  Such books and records shall include all information necessary to calculate and audit the fees or reimbursements paid under this Agreement.  The Advisor shall utilize procedures to attempt to ensure such control over accounting and financial transactions as is reasonably required to protect the Company’s assets from theft, error or fraudulent activity.  All financial statements that the Advisor delivers to the Company shall be prepared on an accrual basis in accordance with GAAP, except for special financial reports which by their nature require a deviation from GAAP.  The Advisor shall maintain necessary liaison with the Company’s independent accountants and shall provide such accountants with such reports and other information as the Company shall request.

Article 7
LIMITATION ON ACTIVITIES

Notwithstanding any provision in this Agreement to the contrary, the Advisor shall not take any action which, in its sole judgment made in good faith, would (i) jeopardize the Company’s status as a “partnership” for federal income tax purposes or would result in the Company being classified as a “publicly traded partnership” within the meaning of Section 7704(b) of the Code or any rules, regulations or safe-harbor guidelines promulgated thereunder, (ii) subject the Company to regulation under the Investment Company Act of 1940, as amended, (iii) violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company or its 

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Securities, or (iv) violate the Operating Agreement.  In the event an action would violate any of (i) through (iv) of the preceding sentence but such action has been ordered by the Board of Managers acting on behalf of the Company, the Advisor shall notify the Board of Managers of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Board of Managers.  In such event the Advisor shall, to the fullest extent allowed by law, have no liability for acting in accordance with the specific instructions of the Board of Managers so given.  Notwithstanding the foregoing, none of the Advisor, its Affiliates, the Sub-Advisors and none of their managers, directors, officers, employees and equityholders, shall be liable to the Company, the Board of Managers or the Members for any act or omission by such Persons or individuals, except as provided in this Agreement.  THE PARTIES HERETO INTEND THAT THE LIMITATION OF LIABILITY SET FORTH IN THIS SECTION BE CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE CONTRARY.  WITHOUT LIMITING THE FOREGOING, THE LIMITATION OF LIABILITY SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW, APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR SIMILAR RULE THAT WOULD DENY COVERAGE BASED ON A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE, GROSS NEGLIGENCE OR STRICT LIABILITY.  IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED IN THIS SECTION, THE LIMITATION OF LIABILITY SET FORTH HEREIN SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW, APPLY TO A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE, GROSS NEGLIGENCE OR STRICT LIABILITY.  THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR PURPOSES OF ALL STATE LAWS.

Article 8
RELATIONSHIP WITH MANAGERS AND OFFICERS

Managers, directors, officers and employees of the Advisor or any direct or indirect Affiliate of the Advisor may serve as Managers, and as officers of the Company, except that no manager, director, officer or employee of the Advisor or any of its Affiliates who also is a Manager or officer of the Company shall receive any compensation from the Company for serving as a Manager or officer other than reasonable reimbursement for travel and related expenses incurred in attending meetings of the Board of Managers.

Article 9
FEES

Asset Management Fees

.  The Company shall pay the Advisor in cash, as compensation for services including those described in Article 3, an asset management fee in accordance with this Section 9.01, as well as reimburse the Advisor for all expenses incurred by the Advisor in connection with such services as required by Article 10.  The asset management fee shall be calculated quarterly at an annual rate of 2.00% of the Company’s Gross Assets and shall be payable quarterly in arrears within 45 days after the end of each of the first three calendar quarters of each fiscal year (or partial calendar quarter), and within 60 days after the end of the final calendar quarter of each fiscal year (or partial calendar quarter), during the term of this 

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Agreement. For purposes of calculating the asset management fee, the term “Gross Assets” means the total fair value of the Company’s assets at the end of the quarter (other than intangibles and after the deduction of associated allowances and reserves), inclusive of borrowings used in acquiring the assets and exclusive of any accrued but unpaid expenses at the end of such quarter, as determined by the Advisor in its sole discretion. Asset management fees for any partial quarter will be appropriately prorated.

Subordinated Incentive Fee on Income

(i).  The Company shall pay the Advisor in cash, as compensation for services including those described in Article 3, a subordinated incentive fee on income in accordance with this Section 9.02, as well as to reimburse the Advisor for all expenses incurred by the Advisor in connection with such services as required by Article 10.  The subordinated incentive fee on income is calculated quarterly in arrears based upon Pre-incentive Fee Net Investment Income for the immediately preceding quarter, and shall be subordinated to a preferred return on Net Assets at the end of the immediately preceding quarter equal to 1.50% per quarter (an annualized rate of 6.00%). No subordinated incentive fee on income shall be payable in any calendar quarter in which Pre-incentive Fee Net Investment Income does not exceed the preferred quarterly return of 1.50% (the “Preferred Return”), on Net Assets at the end of the immediately preceding quarter. For any calendar quarter in which pre-incentive fee net investment income is greater than the Preferred Return, but less than 1.875% (the “Hurdle”), the subordinated incentive fee on income shall equal the amount of Pre-incentive Fee Net Investment Income in excess of the Preferred Return. For any calendar quarter in which the Pre-incentive Fee Net Investment Income exceeds the Hurdle at the end of the immediately preceding quarter, the subordinated incentive fee on income shall equal 20% of Pre-incentive Fee Net Investment Income.  The subordinated incentive fee on income shall be payable quarterly in arrears within 45 days after the end of each of the first three calendar quarters of each fiscal year (or partial calendar quarter), and within 60 days after the end of the final calendar quarter of each fiscal year (or partial calendar quarter), during the term of this Agreement.

9.03Incentive Fee on Capital Gains.  The Company shall pay the Advisor in cash, as compensation for services including those described in Article 3, an incentive fee on capital gains in accordance with this Section 9.03, as well as to reimburse the Advisor for all expenses incurred by the Advisor in connection with such services as required by Article 10.  An incentive fee on capital gains earned on the Company’s investments shall be determined in arrears as of the end of each calendar year (or upon termination of this Agreement) and shall equal 20% of the Company’s incentive fee capital gains, which will equal the Company’s realized capital gains on a cumulative basis from inception, calculated as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees.  The incentive fee on capital gains shall be payable annually in arrears within 60 days after the end of each calendar year (or partial calendar year) during the term of this Agreement.

Article 10
EXPENSES

General

.  In addition to the compensation paid to the Advisor pursuant to Article 9 hereof, the Company shall pay directly or reimburse the Advisor for all of the expenses paid or 

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incurred by the Advisor or Affiliates in connection with the services provided to the Company pursuant to this Agreement, including, but not limited to:

(i)Acquisition Expenses incurred in connection with the selection and acquisition of assets including such expenses incurred related to assets pursued or considered but not ultimately acquired by the Company;

(ii)the actual out-of-pocket cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor, including brokerage fees paid in connection with the purchase and sale of assets;

(iii)taxes and assessments on income or Assets and taxes as an expense of doing business and any other taxes otherwise imposed on the Company and its business or income;

(iv)out-of-pocket costs associated with insurance required in connection with the business of the Company or by its officers and the Managers;

(v)all out-of-pocket expenses in connection with meetings of the Board of Managers and Members;

(vi)personnel and related employment direct costs incurred by the Advisor or Affiliates (a) in performing the services described in Section 3.04 and in providing professional services for the Company in-house, including legal services, tax services, internal audit services, technology-related services and services in connection with compliance with the Sarbanes-Oxley Act of 2002, or (b) as otherwise approved by Independent Managers, including but not limited to salary, benefits, burdens and overhead of all employees directly involved in the performance of such services, plus all out-of-pocket costs incurred;

(vii)out-of-pocket expenses of maintaining communications with Members, including the cost of preparation, printing, and mailing annual reports and other Member reports, proxy statements and other reports required by governmental entities;

(viii)audit, accounting and legal fees, and other fees for professional services relating to the operations of the Company and all such fees incurred at the request, or on behalf of, the Independent Managers or any committee of the Board of Managers;

(ix)out-of-pocket costs for the Company to comply with all applicable laws, regulation and ordinances;

(x)all other out-of-pocket costs incurred by the Advisor in performing its duties hereunder; and

(xi)all other out-of-pocket costs necessary for the operation of the Company and its assets.

The Company shall also reimburse the Advisor or Affiliates of the Advisor for all expenses incurred on behalf of the Company prior to the original execution of this Agreement.  Notwithstanding anything to the contrary herein, the Company shall not reimburse the Advisor for 

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(i) rent or depreciation, capital equipment or other costs of its own administrative items, (ii) salaries, fringe benefits, travel expenses and other administrative items incurred or allocated to any controlling person of the Advisor or (iii) the salaries and benefits paid to the Company’s named executive officers.  For purposes of this Section 10.01, “controlling person” means persons with responsibilities similar to those of an executive, or a member of the Board of Managers, or any person who holds more than 10% of the Advisor’s equity securities or who has the power to control the Advisor.

Reimbursement to Advisor

.  Expenses incurred by the Advisor on behalf of the Company and payable pursuant to this Section 10 shall be reimbursed to the Advisor within 10 days after the Advisor provides the Company with an invoice and/or supporting documentation relating to such reimbursement.

10.03Organization and Offering Expenses.  The Company shall reimburse the Advisor and its Affiliates for Organization and Offering Expenses it may incur on the Company’s behalf but only to the extent that the reimbursement would not cause the selling commissions, the Dealer Manager fees and the other Organization and Offering Expenses borne by the Company to exceed 15.0% of Gross Proceeds of each Offering as of the date of the reimbursement.  The total amount of all Organization and Offering Expenses shall be reasonable and shall be included in Front End Fees for purposes of the limit on such Front End Fees set forth in Section 10.05.

10.04Operating Expenses.  The Company shall reimburse the expenses incurred by the Advisor or its Affiliates in connection with providing administrative and other operational services under Sections 3.02 through 3.08. 

Limitation on Fees and Expenses

.  All Front End Fees shall be reasonable and shall not exceed 18% of the Gross Proceeds of any offering, regardless of the source of payment The percentage of Gross Proceeds of any offering committed to Investment in Company Assets shall be at least 82%. All items of compensation to underwriters or dealers, including, but not limited to, selling commissions, expenses, rights of first refusal, consulting fees, finders’ fees and all other items of compensation of any kind or description paid by the Company, directly or indirectly, shall be taken into consideration in computing the amount of allowable Front End Fees. 

 

Article 11
OTHER SERVICES

Should (i) the Company request that the Advisor or any manager, officer or employee thereof render services for the Company other than as set forth in this Agreement or (ii) there are changes to the regulatory environment in which the Advisor or Company operates that would increase significantly the level of services performed such that the costs and expenses borne by the Advisor for which the Advisor is not entitled to separate reimbursement for personnel and related employment direct costs and overhead under Article 10 of this Agreement would increase significantly, such services shall be separately compensated at such rates and in such amounts as are agreed by the Advisor and the Independent Managers, subject to the limitations contained in the Operating Agreement, and shall be deemed to be “other services” pursuant to the terms of this Agreement.

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Article 12
RELATIONSHIP OF ADVISOR AND COMPANY; OTHER ACTIVITIES AND OBLIGATIONS OF THE ADVISOR

Relationship

.  To the fullest extent allowed by law, the Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers.  Nothing herein contained shall prevent the Advisor from engaging in other activities, including, without limitation, the rendering of advice to other Persons and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates.  Nor shall this Agreement limit or restrict the right of any manager, director, officer, employee, or equityholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other Person.  The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein.  The Advisor shall promptly disclose to the Board of Managers the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other Person.

Time Commitment

.  The Advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to the Company such time as shall be reasonably necessary to conduct the business and affairs of the Company in an appropriate manner consistent with the terms of this Agreement.  The Company acknowledges that the Advisor and other Affiliates of TriLinc and their respective employees, officers and agents may also engage in activities unrelated to the Company and may provide services to Persons other than the Company or any of its Affiliates.

Investment Opportunities and Allocation

.  The Advisor shall be required to use commercially reasonable efforts to present a continuing and suitable investment program to the Company which is consistent with the investment policies and objectives of the Company, but neither the Advisor nor any Affiliate of the Advisor shall be obligated generally to present any particular investment opportunity to the Company even if the opportunity is of character which, if presented to the Company, could be taken by the Company.  In the event an investment opportunity is identified, the allocation procedures set forth in the Company’s allocation policy adopted by the Board (as may be amended from time to time) shall govern the allocation of the opportunity among the Company and Affiliates of the Advisor. 

12.04Representations of the Advisor.  The Advisor represents to the Company that it will obtain any necessary licenses, permits or registrations to perform its obligations hereunder.

Article 13
THE TRILINC NAME

TriLinc and its Affiliates have a proprietary interest in the name “TriLinc”.  TriLinc hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free right and license to use the name “TriLinc” during the term of this Agreement.  Accordingly, and in recognition of this right, if at any time the Company ceases to retain TriLinc or an Affiliate thereof to perform the services of Advisor, the Company will, promptly after receipt of written request 

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from TriLinc, cease to conduct business under or use the name “TriLinc” or any derivative thereof and the Company shall change the name of the Company to a name that does not contain the name “TriLinc” or any other word or words that might, in the reasonable discretion of TriLinc, be susceptible of indication of some form of relationship between the Company and TriLinc or any Affiliate thereof.  At such time, the Company will also make any changes to any trademarks, servicemarks or other marks necessary to remove any references to the word “TriLinc”.  Consistent with the foregoing, it is specifically recognized that TriLinc or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles and financial and service organizations having “TriLinc” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company.

Article 14
TERM AND TERMINATION OF THE AGREEMENT

Term

.  This Agreement shall have an initial term of one year from the date of the Agreement.  This Agreement may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties.  Any such renewal must be approved by a majority of the Independent Managers.  The Company (through the Independent Managers) will evaluate the performance of the Advisor annually before renewing the Agreement, and each such renewal shall be for a term of no more than one year.

Termination by Either Party

.  This Agreement may be terminated upon 120 days’ written notice without cause or penalty by either party.  If the Advisor fails to give such notice, the withdrawing Advisor shall pay all expenses incurred as a result of its withdrawal.

Termination by the Company

.  This Agreement may be terminated immediately by the Company upon (i) any fraudulent conduct, criminal conduct, willful misconduct or the negligent breach of fiduciary duty of or by the Advisor, (ii) a material breach of this Agreement by the Advisor not cured within 30 days after the Advisor receives written notice of such breach, or (iii) an event of the bankruptcy of the Advisor or commencement of any bankruptcy or similar insolvency proceedings of the Advisor.

Termination by the Advisor

.  This Agreement may be terminated immediately by the Advisor in the event of (i) the bankruptcy of the Company or commencement of any bankruptcy or similar insolvency proceedings of the Company, or (ii) any material breach of this Agreement by the Company not cured by the Company within 30 days after written notice thereof.

Payments on Termination and Survival of Certain Rights and Obligations

.  

(i)After the Termination Date, the Advisor shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company within 30 days after the effective date of such termination all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this Agreement.

(ii)The Advisor shall promptly upon termination:

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(a)pay over to the Company all money collected pursuant to this Agreement, if any, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;

(b)deliver to the Managers a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Managers;

(c)deliver to the Managers all assets and documents of the Company then in the custody of the Advisor; and

(d)cooperate with the Company to provide an orderly transition of advisory functions.

Upon the expiration or termination of this Agreement, neither party shall have any further rights or obligations under this Agreement, except that Articles 13, 14, 16 and 17 shall survive the termination or expiration of this Agreement.

Other Matters.

14.07  Upon termination of this Agreement, the Company may terminate the Advisor’s interest in the Company’s revenues, expenses, income, losses, distributions and capital by payment of an amount equal to the then present fair market value of the terminated Advisor’s interest, determined by agreement of the terminated Advisor and the Company. If the Company and the Advisor cannot agree upon such amount, then such amount will be determined in accordance with the then current rules of the American Arbitration Association. The expenses of such arbitration shall be borne equally by the terminated Advisor and the Company. 

Article 15
ASSIGNMENT

This Agreement shall not be assigned by the Advisor without the consent of the Company, which consent shall be approved by a majority of the Independent Managers, provided that (a) the Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Company, and (b) the Advisor may assign or delegate any or all of its other rights or obligations to any subsidiary of the Advisor, without obtaining the approval of the Company, if such assignment or delegation does not constitute an “assignment” within the meaning of the Investment Advisers Act of 1940.  This Agreement shall not be assigned by the Company without the consent of the Advisor.

Article 16
INDEMNIFICATION AND LIMITATION OF LIABILITY

Indemnification by the Company

.  The Company shall indemnify and hold harmless the Advisor and its Affiliates, including their respective managers, officers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, subject to any limitations imposed by the laws of the State of Delaware and the Operating Agreement, provided that:  (i) the Advisor and its Affiliates, as applicable, have 

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determined that the course of conduct which caused the loss or liability was in the best interests of the Company, (ii) the Advisor and its Affiliates, as applicable, were acting on behalf of or performing services for the Company, (iii) the indemnified claim was not the result of negligence, misconduct, or fraud of the indemnified person or resulted from a breach of the agreement by the Advisor and (iv) in the event the loss, liability or expense arises from or out of an alleged violation of federal or state securities laws by the Advisor or its Affiliates, the conditions set forth in at least one of clauses (i), (ii) or (iii) of Section 17.2(b) of the Operating Agreement must be satisfied (deeming, for purposes of this Agreement, that the Advisor and its Affiliates are each an “Indemnitee” as such term is used in such clauses) for the Company to provide such indemnification.  Any indemnification of the Advisor or its Affiliates may be made only out of the assets of the Company and not from the Members.

Indemnification by the Advisor

.  The Advisor shall indemnify and hold harmless the Company from contract or other liability, claims, damages, taxes or losses and related expenses, including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s or any Sub-Advisor’s bad faith, fraud, willful misconduct or reckless disregard of its duties, but the Advisor shall not be held responsible for any action of the Board of Managers in following or declining to follow any of the Advisor’s advice or recommendation.  THE PARTIES HERETO INTEND THAT THE INDEMNITIES SET FORTH IN THIS AGREEMENT BE CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE CONTRARY.  WITHOUT LIMITING THE FOREGOING, THE INDEMNITIES SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW, AND TO THE EXTENT PROVIDED IN THIS AGREEMENT, APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR SIMILAR RULE THAT WOULD DENY COVERAGE BASED ON AN INDEMNIFIED PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR STRICT LIABILITY OR GROSS NEGLIGENCE.  IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED IN THIS AGREEMENT, THE INDEMNITIES SET FORTH HEREIN SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW, APPLY TO AN INDEMNIFIED PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR STRICT LIABILITY OR GROSS NEGLIGENCE.  THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR PURPOSES OF ALL STATE LAWS.

16.03Advisor’s Liability

(i)Notwithstanding any other provisions of this Agreement, in no event shall the Company make any claim against Advisor or its Affiliates on account of any good faith interpretation by Advisor of the provisions of this Agreement (even if such interpretation is later determined to be a breach of this Agreement) or any alleged errors in judgment made in good faith and in accordance with this Agreement in connection with the operations of the Company hereunder by Advisor or the performance of any advisory or technical services provided by or arranged by the Advisor.  The provisions of this Section 16.03(i) shall not be deemed to release Advisor from liability for its gross negligence.

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(ii)The Company shall not object to any expenditure made by the Advisor in good faith in the course of its performance of its obligations under this Agreement or in settlement of any claim arising out of the operation of the Company unless such expenditure is specifically prohibited by this Agreement.  The provisions of this Section 16.03(ii) shall not be deemed to release Advisor from liability for its gross negligence.

(iii)IN NO EVENT WILL EITHER PARTY BE LIABLE FOR DAMAGES BASED ON LOSS OF INCOME, PROFIT OR SAVINGS OR INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR SPECIAL DAMAGES OF THE OTHER PARTY OR PERSON, INCLUDING THIRD PARTIES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE, AND ALL SUCH DAMAGES ARE EXPRESSLY DISCLAIMED.

(iv)THE PARTIES HERETO INTEND THAT THE RELEASE FROM LIABILITY SET FORTH IN SECTION 16.03 BE CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE CONTRARY.  WITHOUT LIMITING THE FOREGOING, THE RELEASE FROM LIABILITY SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW, APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR SIMILAR RULE THAT WOULD DENY COVERAGE BASED ON A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR STRICT LIABILITY.  IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED IN SECTION 16.03, THE RELEASE FROM LIABILITY SET FORTH HEREIN SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW, APPLY TO A RELEASED PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR STRICT LIABILITY.  THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR PURPOSES OF ALL STATE LAWS.

(v)NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED IN THIS ARTICLE 16 OR ELSEWHERE IN THIS AGREEMENT SHALL CONSTITUTE A WAIVER BY THE COMPANY OF ANY OF ITS LEGAL RIGHTS UNDER APPLICABLE U.S. FEDERAL SECURITIES LAWS, OR ANY OTHER APPLICABLE LAWS, WHOSE APPLICABILITY IS LEGALLY PROHIBITED FROM BEING CONTRACTUALLY WAIVED.

Article 17

MISCELLANEOUS

Notices

.  Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Operating Agreement, or accepted by the party to whom it is given, and shall be given by being delivered by hand or by overnight mail or other overnight delivery service to the addresses set forth herein:

To the Company or the Managers:

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TriLinc Global Impact Fund, LLC
1230 Rosecrans Ave, Suite 605, 

Manhattan Beach, California 90266

Attention:

To the Advisor:

TriLinc Advisors, LLC
1230 Rosecrans Ave, Suite 605, 

Manhattan Beach, California 90266

Attention:

Either party may at any time give notice in writing to the other party of a change in its address for the purposes of this Section 17.01.

Modification

.  This Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed by all parties hereto, or their respective successors or assignees.

Severability

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

Construction

.  The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware applicable to contracts to be made and performed entirely in such state.

Entire Agreement

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

Waiver

.  Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

Gender

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

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Titles Not to Affect Interpretation

.  The titles of Articles and Sections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

Counterparts

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

[The remainder of this page is intentionally left blank.  Signature page follows.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Second Amended and Restated Agreement as of the date and year first above written.

		
	
 
	
TriLinc Advisors, LLC

 

 

By:/s/ Gloria S. Nelund

Name:Gloria S. Nelund

Title:Chief Executive Officer

 

 

 

 

TriLinc Global Impact Fund, LLC

 

 

By:/s/ Gloria S. Nelund

Name:Gloria S. Nelund

Title:Chief Executive Officer

 

 

	
 
	
 

 

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