Document:

Amended and Restated 2000 Non-Employee Stock Option Plan

 Exhibit 10.3 
 DOT HILL SYSTEMS CORP. 
 2000 AMENDED AND RESTATED NON-EMPLOYEE DIRECTORS’ 
 STOCK OPTION PLAN 
 Adopted by the Board
of Directors March 9, 2000 
 Approved By Stockholders May 8, 2000 
 Amendment and Restatement Adopted 
 by the Board of Directors July 25, 2005 and
April 6, 2006 
 Amendment and Restatement Approved By Stockholders May 8, 2006 
 Amendment Adopted by the Board of Directors June 4, 2009 
 Effective Date: April 6, 2006 
 Termination Date: April 5, 2016 
 1. Purposes. 
 (a) Eligible Option Recipients.
The persons eligible to receive Options are the Non-Employee Directors of the Company. 
 (b) Available Options. The purpose of the
Plan is to provide a means by which Non-Employee Directors may be given an opportunity to benefit from increases in value of the Common Stock through the granting of Nonstatutory Stock Options. 
 (c) General Purpose. The Company, by means of the Plan, seeks to retain the services of its Non-Employee Directors, to secure and retain the
services of new Non-Employee Directors and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 
 2. Definitions. 
 (a) “Affiliate” means any parent corporation or subsidiary corporation of
the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 
 (b)
“Annual Grant” means an Option granted pursuant to subsection 6(b) of the Plan. 
 (c) “Annual
Meeting” means the annual meeting of the stockholders of the Company. 
 (d) “Board” means the
Board of Directors of the Company. 
 (e) “Code” means the Internal Revenue Code of 1986, as amended.

  

 1. 

 (f) “Common Stock” means the common stock of the Company. 
 (g) “Company” means DOT HILL SYSTEMS CORP., a Delaware
corporation. 
 (h) “Consultant” means any person, including an advisor, engaged by the Company or an
Affiliate to render consulting or advisory services and who is compensated for such services. A person shall not be deemed a “Consultant” solely by reason of the performance of services as a Director and/or the payment of compensation in
relation thereto. 
 (i) “Continuous Service” means that the Optionholder’s service with the Company as a
Non-Employee Director is not interrupted or terminated. The Optionholder’s Continuous Service in any event shall not be deemed to have been interrupted or terminated by reason of a change in the capacity in which the Optionholder renders
service to the Company or an Affiliate of the Company. For example, a change in status from a Non-Employee Director to an Employee or Consultant will not constitute an interruption or termination of Continuous Service. The Board, in its sole
discretion, may determine whether Continuous Service shall be considered interrupted or terminated in the case of any leave of absence approved by the Board, including sick leave, military leave or any other personal leave. 
 (j) “Director” means a member of the Board of Directors of the Company. 
 (k) “Disability” means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the
Code. 
 (l) “Employee” means any person employed by the Company or an Affiliate. Service as a Director and/or
payment of compensation in relation thereto, in and of itself, shall not be sufficient to constitute “employment” by the Company or an Affiliate. 
 (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (n) “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange, such as the New York Stock Exchange, or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock shall
be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the last market trading day prior
to the day of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable. 
 (ii) In the
absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board. 
 (o)
“Initial Grant” means an Option granted pursuant to section 6(a) of the Plan. 
  

 2. 

 (p) “Non-Employee Director” means a Director who is not an Employee.
 
 (q) “Nonstatutory Stock Option” means an Option not intended to qualify as an “incentive stock
option” within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (r)
“Option” means a Nonstatutory Stock Option granted pursuant to the Plan. 
 (s) “Option
Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 

(t) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other
person who holds an outstanding Option. 
 (u) “Plan” means this DOT HILL
SYSTEMS CORP. 2000 Non-Employee Directors’ Stock Option Plan. 
 (v) “Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time. 
 (w) “Securities Act” means the Securities Act of 1933, as amended. 
 3. Administration. 
 (a) Administration by Board. The Board shall administer the Plan. The Board may not delegate administration of the Plan to a committee. 

(b) Powers of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan: 

(i) To determine the provisions of each Option to the extent not specified in the Plan. 
 (ii) To construe and interpret the Plan and Options granted under it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Option Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

 (iii) To amend the Plan or an Option as provided in Section 12. 
 (iv) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the
Company that are not in conflict with the provisions of the Plan. 
  

 3. 

 (c) Effect of Board’s Decision. All determinations, interpretations and constructions made by
the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 
 4. Shares Subject to
the Plan. 
 (a) Share Reserve. Subject to the provisions of Section 11 relating to adjustments upon changes in the Common
Stock, the Common Stock that may be issued pursuant to Options shall not exceed in the aggregate one million (1,000,000) shares of Common Stock. 
 (b) Reversion of Shares to the Share Reserve. If any Option shall for any reason expire or otherwise terminate, in whole or in part, without having been exercised in full, the shares of Common Stock not
acquired under such Option shall revert to and again become available for issuance under the Plan. 
 (c) Source of Shares. The shares
of Common Stock subject to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise. 
 5. Eligibility. 
 Options shall automatically be granted under the Plan to Non-Employee Directors in accordance with Section 6. 
 6. Non-Discretionary Grants. 
 (a) Initial Grants.
Without any further action of the Board, each person who, at any time after the Company’s 2005 Annual Meeting, is duly elected or appointed by the Board of Directors or stockholders of the Company to serve as a Non-Employee Director and
who, for at least one (1) year preceding such election or appointment has at no time served as a Non-Employee Director, shall, effective as of the effective date of such election or appointment, automatically be granted an option to purchase
fifty thousand (50,000) shares of Common Stock on the terms and conditions set forth in this Plan. Termination of a Director’s status as an Employee shall not result in an Initial Grant to such Director pursuant to this Subsection 6(a).

 (b) Annual Grants. Without any further action of the Board, each person who, immediately following each Annual Meeting commencing
with the 2009 Annual Meeting, is a Non-Employee Director and who has been a Non-Employee Director for at least four (4) months prior to such Annual Meeting shall, effective as of the date of such Annual Meeting, automatically be granted an
option to purchase ten thousand (10,000) shares of Common Stock on the terms and conditions set forth in this Plan. 
 7. Option Provisions. 

 Each Option shall be in such form and shall contain such terms and conditions as required by the Plan. Each Option shall contain such
additional terms and conditions, not inconsistent with the Plan, as the Board shall deem appropriate. Each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the
following provisions: 
 (a) Term. No Option shall be exercisable after the expiration of ten (10) years from the date it was
granted. 
  

 4. 

 (b) Exercise Price. The exercise price of each Option shall be one hundred percent (100%) of
the Fair Market Value of the stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted
pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 
 (c) Consideration. The purchase price of stock acquired pursuant to an Option may be paid, to the extent permitted by applicable statutes and regulations, in any combination of the following methods: 
 (i) By cash or check. 
 (ii)
Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock either that the Optionholder has held for the period required
to avoid a charge to the Company’s reported earnings (generally six months) or that the Optionholder did not acquire, directly or indirectly from the Company, that are owned free and clear of any liens, claims, encumbrances or security
interests, and that are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes shall include delivery to the Company of the Optionholder’s attestation of ownership of such shares of Common Stock in a form
approved by the Company. Notwithstanding the foregoing, the Optionholder may not exercise the Option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the
redemption of the Company’s stock. 
 (iii) Provided that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company
or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds. 
 (iv)
Pursuant to the following deferred payment provisions: 
 (1) One hundred percent (100%) of the aggregate exercise price,
plus accrued interest, shall be due four (4) years from date of exercise or upon termination of your Continuous Service. 
 (2)
Interest shall be compounded annually and shall be charged at the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any portion of any amounts other than amounts stated to be
interest under the deferred payment arrangement. 
  

 5. 

 (3) At any time that the Company is incorporated in Delaware, payment of the Common Stock’s
“par value,” as defined in the Delaware General Corporation Law, shall be made in cash and not by deferred payment. 
 (4)
The Optionholder must, as a part of his or her written notice of exercise, give notice of the election of this payment alternative and must tender to the Company a promissory note and a security agreement covering the purchased shares of Common
Stock, both in form and substance satisfactory to the Company, or such other or additional documentation as the Company may request. 
 (d) Transferability. An Option is transferable by will or by the laws of descent and distribution. Subject to this Subsection 7(d), an Option also is transferable (i) by instrument to an inter vivos or testamentary trust, in a
form accepted by the Company, in which the Option is to be passed to beneficiaries upon the death of the trustor (settlor), and (ii) by gift, in a form accepted by the Company, to a member of the “immediate family” of the Optionholder
as that term is defined in 17 C.F.R. 240.16a-1(e). An Option shall be exercisable during the lifetime of the Optionholder only by the Optionholder and a permitted transferee as provided herein. However, the Optionholder may, by delivering written
notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. Any transfer by an Optionholder or permitted transferee as
provided under this Subsection 7(d), shall be subject to (i) the Company’s obligation, if any, to execute and file with the Securities and Exchange Commission a Registration Statement on Form S-8 or such appendices or amendments to the
Company’s Registration Statement on Form S-8 currently on file as may be necessary or appropriate for the Company’s compliance thereof, and (ii) any rules and regulations, restrictions or limitations on the rights of transfer
promulgated under the Exchange Act or Securities Act. 
 (e) Vesting Schedule. Options shall vest as follows: 
 (i) Initial Grants shall vest (become exercisable) over a period of four (4) years with twelve thousand five hundred
(12,500) of the shares of Common Stock subject to each Initial Grant vesting as of twelve (12) months after the date of the grant thereof, and an additional one thousand forty-one (1,041) of the shares of Common Stock subject to such
Initial Grant vesting each month thereafter over the three (3) year period following such initial twelve (12) months (with one thousand sixty-five (1,065) shares vesting as of the 36th such month). 
 (ii)
Annual Grants shall be fully vested as of the date of grant. 
 (f) Early Exercise. If applicable, Options shall include a
provision whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the
Option. Any unvested shares of Common Stock so purchased shall be subject to a repurchase option in favor of the Company to the extent such Option was unvested when exercised and which corresponds with the vesting schedule applicable to such
unvested shares. 
  

 6. 

 (g) Termination of Continuous Service. In the event an Optionholder’s Continuous Service
terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination) but only within such period of
time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous Service (or such longer or shorter prior specified in the Option Agreement), or (ii) the expiration of the
term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Option Agreement, the Option shall terminate. 
 (h) Extension of Termination Date. If the exercise of the Option following the termination of the Optionholder’s Continuous Service (other
than upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of
(i) the expiration of the term of the Option set forth in subsection 7(a) or (ii) the expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during which the exercise of the
Option would not be in violation of such registration requirements. 
 (i) Disability of Optionholder. In the event an
Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination), but
only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option
as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate. 
 (j) Death of Optionholder. In the event (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
death, or (ii) the Optionholder dies within the three-month period after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled
to exercise the Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder’s
death, but only within the period ending on the earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement), or (2) the expiration of the term of such
Option as set forth in the Option Agreement. If, after death, the Option is not exercised within the time specified herein, the Option shall terminate. 
  

 7. 

 8. Covenants of the Company. 
 (a) Availability of Shares. During the terms of the Options, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such Options. 
 (b) Securities Law Compliance. The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Options and to issue and sell shares of Common Stock upon exercise of the Options; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any
Option or any stock issued or issuable pursuant to any such Option. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the
lawful issuance and sale of stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell stock upon exercise of such Options unless and until such authority is obtained. 
 9. Use of Proceeds from Stock. 
 Proceeds from the
sale of stock pursuant to Options shall constitute general funds of the Company. 
 10. Miscellaneous. 
 (a) Stockholder Rights. No Optionholder shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares
subject to such Option unless and until such Optionholder has satisfied all requirements for exercise of the Option pursuant to its terms. 
 (b) No Service Rights. Nothing in the Plan or any instrument executed or Option granted pursuant thereto shall confer upon any Optionholder any right to continue to serve the Company as a Non-Employee Director or shall affect the
right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the
Company or an Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the
case may be. 
 (c) Investment Assurances. The Company may require an Optionholder, as a condition of exercising or acquiring stock
under any Option, (i) to give written assurances satisfactory to the Company as to the Optionholder’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the
Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Option; and (ii) to give
written assurances satisfactory to the Company stating that the Optionholder is acquiring the stock subject to the Option for the Optionholder’s own account and not with any present intention of selling or otherwise distributing the stock.

  

 8. 

 
The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (iii) the issuance of the shares upon the
exercise or acquisition of stock under the Option has been registered under a then currently effective registration statement under the Securities Act, or (iv) as to any particular requirement, a determination is made by counsel for the Company
that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary
or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the stock. 
 (d) Withholding Obligations. The Optionholder may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of stock under an Option by any of the following means (in addition to the
Company’s right to withhold from any compensation paid to the Optionholder by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares from the shares of the Common
Stock otherwise issuable to the Optionholder as a result of the exercise or acquisition of stock under the Option, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be
withheld by law; or (iii) delivering to the Company owned and unencumbered shares of the Common Stock. 
 11. Adjustments upon Changes in Stock. 

 (a) Capitalization Adjustments. If any change is made in the stock subject to the Plan, or subject to any Option, without the
receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject both to the Plan pursuant to
subsection 4(a) and to the nondiscretionary Options specified in Section 6, and the outstanding Options will be appropriately adjusted in the class(es) and number of securities and price per share of stock subject to such outstanding Options.
The Board shall make such adjustments, and its determination shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction “without receipt of consideration” by
the Company.) 
 (b) Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company, then all outstanding
Options shall terminate immediately prior to such event. 
 (c) Asset Sale, Merger, Consolidation or Reverse Merger. In the event of
(i) a sale, lease or other disposition of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity and in which the holders of the Company’s outstanding
voting stock immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the entity surviving such transaction or, where the surviving entity is a
wholly-owned subsidiary of another entity, the surviving entity’s parent; or (iii) a reverse merger in which the 

  

 9. 

 
Company is the surviving entity but the shares of Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other
property, whether in the form of securities of the surviving entity’s parent, cash or otherwise, and in which the holders of the Company’s outstanding voting stock immediately prior to such transaction own, immediately after such
transaction, securities representing less than fifty percent (50%) of the voting power of the Company or, where the Company is a wholly-owned subsidiary of another entity, the Company’s parent (each, individually, a “Change in
Control”), then with respect to Options held by Optionholders whose Continuous Service has not terminated, the vesting of such Options (and, if applicable, the time during which such Options may be exercised) shall be accelerated in full, and
the Options shall terminate if not exercised (if applicable) at or prior to such event. With respect to any other Options held by Optionholders whose Continuous Service has terminated, such Options shall terminate immediately if not exercised prior
to such event. 
 (d) Parachute Payments. If any payment or benefit the Optionholder would receive pursuant to this Stock Option
Agreement in connection with a Change in Control (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be reduced to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no
portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income
taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Optionholder’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be
subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless the Optionholder elects in
writing a different order: reduction of cash payments; cancellation of accelerated vesting of stock or other equity based awards; reduction of employee benefits. In the event that acceleration of vesting of stock or other equity-based award
compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Optionholder’s stock or other equity-based awards unless the Optionholder elects in writing a different order for
cancellation. 
 The accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the
Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint a
nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. 
 The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the
Optionholder and the Company within fifteen (15) calendar days after the date on which the Optionholder’s right to a Payment is triggered (if requested at that time by the Optionholder or the Company) or such other time as 

  

 10. 

 
requested by the Optionholder or the Company. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or
after the application of the Reduced Amount, it shall furnish the Company and the Optionholder with an opinion reasonably acceptable to the Optionholder that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations
of the accounting firm made hereunder shall be final, binding and conclusive upon the Optionholder and the Company. 
 12. Amendment of the Plan and
Options. 
 (a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan. However, except as provided in
Section 11 relating to adjustments upon changes in stock, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy the requirements of Rule 16b-3 or any Nasdaq
or securities exchange listing requirements. 
 (b) Stockholder Approval. The Board may, in its sole discretion, submit any other
amendment to the Plan for stockholder approval. 
 (c) No Impairment of Rights. Rights under any Option granted before amendment of
the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the Optionholder, and (ii) the Optionholder consents in writing. 
 (d) Amendment of Options. The Board at any time, and from time to time, may amend the terms of any one or more Options; provided, however,
that the rights under any Option shall not be impaired by any such amendment unless (i) the Company requests the consent of the Optionholder, and (ii) the Optionholder consents in writing. 
 13. Termination or Suspension of the Plan. 
 (a)
Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth Anniversary of the date the Plan is adopted by the Board or approved by the stockholders of the
Company, whichever is earlier. No Options may be granted under the Plan while the Plan is suspended or after it is terminated. 
 (b) No
Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Option granted while the Plan is in effect except with the written consent of the Optionholder. 
 14. Effective Date of Plan. 
 The Plan shall become
effective on the date that the Plan is adopted by the Board, but no Option shall be exercised unless and until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months before or after the
date the Plan is adopted by the Board. 
  

 11. 

 15. Choice of Law. 
 All questions concerning the construction, validity and interpretation of this Plan shall be governed by the law of the State of California, without regard to such state’s conflict of laws rules. 
  

 12.Amendment to the Management Agreement

 Exhibit 10.16 
 AMENDMENT 
 TO THE 
 MANAGEMENT AGREEMENT 
 BY AND BETWEEN 
 JER INVESTORS TRUST INC. 
 and 
 JER COMMERCIAL DEBT ADVISORS LLC 
 This AMENDMENT No. 4 (this
“Amendment”) to the Management Agreement, dated as of June 4, 2004 (as amended, the “Management Agreement”), by and between JER Investors Trust Inc., a Maryland corporation (the
“Company”) and JER Commercial Debt Advisors LLC, a Delaware limited liability company (the “Manager”), is made as of this 21st day of July 2009, between the Company and the Manager. Capitalized terms
used herein and not otherwise defined herein shall have the meanings assigned to them in the Management Agreement. 
 W I T N E S S E T H :

 WHEREAS, the Company and the Manager are parties to the Management Agreement; and 
 WHEREAS, the Company and the Manager desire to amend the Management Agreement in the manner and as more fully set forth herein; and 
 WHEREAS, in accordance with Section 17(d) of the Management Agreement, the parties hereto have consented to amending the Management Agreement
in the manner and as more fully set forth herein. 
 NOW THEREFORE, in consideration of the mutual promises and agreements herein and
intending to be legally bound hereby, the parties hereto agree as follows: 
 1. Effective as of April 1, 2009, the following
Section 7(f) is hereby inserted into the Management Agreement and made a part thereof: 
 “(f) Notwithstanding anything to the
contrary contained in Sections 7(d) and/or 7(e) of this Agreement, the Manager and the Company hereby agree that during the months of April, May, June, July, August and September, 2009 (the “Restricted Months”), (i) the
Company shall not be required to make any payments of Base Management Fees and/or Incentive Fees (collectively, the “Fees”) in excess of $75,000 per month (the “Monthly Cash Limit”) and (ii) any
Fees accruing and otherwise payable pursuant to Sections 7(d) and/or 7(e) of this Agreement in excess of the Monthly Cash Limit (the “Accrued Fees”) shall be deferred and due and payable by the Company to the Manager on such
date after September 30, 2009 as the Company and the Manager shall mutually agree in writing. Nothing contained in this Section 7(f) shall be deemed (i) to prohibit the Company from paying any Fees up to an amount equal to $75,000 per
month, (ii) to prohibit the accrual (and ongoing obligations with respect thereto) of any Accrued Fees during any of the Restricted Months or (iii) to be a waiver or forgiveness by the Manager of any Accrued Fees.” 
 2. Ratification. Except as expressly modified pursuant to this Amendment, (i) the Management Agreement is ratified and confirmed in all
respects and (ii) all of the Company’s obligations thereunder remain unchanged and in full force and effect. 

 [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 4 to the Management
Agreement effective as of the date first above written. 
  

			
	JER INVESTORS TRUST INC.
		
	By:	 	 /s/ J. Michael McGillis

	Name:	 	J. Michael McGillis
	Title:	 	Chief Financial Officer
	
	JER COMMERCIAL DEBT ADVISORS LLC
		
	By:	 	 /s/ J. Michael McGillis

	Name:	 	J. Michael McGillis
	Title:	 	Chief Financial Officer

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