Document:

AFL Ex 10.1 - June 2015

Aflac Incorporated Form 8-K
EXHIBIT 10.1

STATE OF GEORGIA
COUNTY OF MUSCOGEE:

EMPLOYMENT AGREEMENT

THIS AGREEMENT, made and entered into as of the 23rd  day of June, 2015, by and between Aflac Incorporated, a Georgia corporation, hereinafter referred to as "Corporation," and Frederick J. Crawford, hereinafter referred to as "Employee";

W I T N E S S E T H    T H A T:

WHEREAS, Corporation and Employee desire to enter into an Employment Agreement and to set forth the terms and conditions of Employee's employment by Corporation as its Executive Vice President, Chief Financial Officer;

NOW, THEREFORE, the parties, for and in consideration of the mutual covenants and agreements hereinafter contained, do contract and agree as follows, to-wit:

1.    Purpose and employment.  The purpose of this Agreement is to define the relationship between Corporation as an employer and Employee as an employee and Executive Vice President, Chief Financial Officer of Corporation.

2.    Duties.  Employee agrees to provide executive management services as Executive Vice President, Chief Financial Officer of Corporation to Corporation and its subsidiaries and affiliates on a full-time and exclusive basis; provided, however, nothing shall preclude Employee from engaging in charitable and community affairs or managing his own or his family's personal investments.

3.    Performance.  Employee agrees to devote all necessary time and his best efforts in the performance of his duties as Executive Vice President, Chief Financial Officer of Corporation on behalf of Corporation and its subsidiaries and affiliates.

4.    Term.  The term of employment under this Agreement shall begin June 30, 2015, and shall continue for a period of three (3) years until June 30, 2018, unless extended or sooner terminated as hereinafter provided.  On an annual basis beginning effective June 30, 2016, the scheduled term of this Agreement shall be extended for successive one (1)-year periods unless written notice of termination is given prior to such annual date by one party to the other party that the Agreement will not be extended by its terms.

5.    Base salary.  For all the services rendered by Employee, Corporation shall pay Employee a base salary of $700,000.00 per year commencing June 30, 2015, said salary to be payable in accordance with Corporation's normal payroll procedures.  Employee's base salary may be increased annually during the term of this Agreement and any extensions hereof as determined by the Compensation Committee of the Board of Directors (the “Compensation Committee of the Board”).

    

1

6.    Documentation of increase in base salary.  Any increase in base salary determined by the Compensation Committee of the Board under Paragraph 5 shall be documented in the Corporation’s records and communicated to Employee, as the Compensation Committee of the Board may determine.

7.    Management Incentive Plan.  In addition to the base salary paid to Employee in accordance with Paragraph 5, Corporation shall for each calendar year of Employee's employment by Corporation, beginning with the calendar year 2015, pay Employee, as performance bonus compensation, an amount determined each year under Corporation's current Management Incentive Plan (i.e., short-term incentive program) with a target level based on at least one hundred twenty five percent (125%) of base salary.  Nothing in this Paragraph shall preclude Employee from receiving additional discretionary bonuses approved by the Chief Executive Officer or the Compensation Committee of the Board.  Amounts payable to Employee under the Management Incentive Plan (or any successor or other executive bonus program) shall be payable in such manner, at such times and in such forms, as prescribed by the terms of the Management Incentive Plan (or successor or other program).  

8.    Employee benefits.  Employee shall be eligible to participate with other employees of Corporation in all fringe benefit programs applicable to similarly situated employees generally which may be authorized and adopted from time to time by the Board, including without limitation:  a qualified 401(k) and profit sharing plan, Corporation’s Executive Deferred Compensation Plan (“the EDCP”) and any other nonqualified deferred compensation plan, a disability income or sick pay plan, an accident and health plan (including medical reimbursement and hospitalization and major medical benefits), and a group life insurance plan.  In addition, Corporation shall furnish to Employee such other "fringe" or employee benefits as are provided to similarly-situated key executive employees of Corporation and such additional employee benefits which the Compensation Committee of the Board or the Corporation’s Chief Executive Officer shall determine to be appropriate to Employee's duties and responsibilities as Executive Vice President, Chief Financial Officer of Corporation, including, without limitation, reimbursement of legal and accounting expenses incurred by Employee in connection with the preparation of his employment or other agreements with Corporation and any expenses for legal, accounting or financial services incurred by Employee in connection with his employment.  Any reimbursements made pursuant to the preceding sentence shall be paid as soon as practicable but no later than ninety (90) days after Employee submits evidence of such expenses to Corporation (which payment date shall in no event be later than the last day of the calendar year following the calendar year in which the expense was incurred).  The amount of such reimbursements during any calendar year shall not affect the benefits provided in any other calendar year, and the right to any such benefits shall not be subject to liquidation or exchange for another benefit.

9.    Equity award plans.  Employee shall be eligible to be awarded stock options, restricted stock awards, and other equity awards (collectively, “Equity Awards”) to purchase Corporation's common stock under Corporation's Long-Term Incentive Plans for selected key employees and directors during the term of this Agreement.

    

2

10.    Working facilities and expenses.  Employee shall be provided with an office, books, periodicals, stenographic and technical help, ground and air transportation, and such other facilities, equipment, supplies and services suitable to his position and adequate for the performance of his duties.  Corporation shall pay Employee's fees and dues in such social and country clubs, civic clubs and business societies and associations as shall be appropriate in facilitating Employee's job performance and in the best interest of Corporation.  Corporation shall also pay all appropriate business liability insurance and any business licenses and fees pertaining to the services rendered by Employee hereunder.

Employee is encouraged and is expected, from time to time, to incur reasonable expenses for promoting the business of Corporation, including expenses for social and civic club memberships and participation, entertainment, travel and other activities associated with Employee's duties.  The cost of all such activities shall be the expenses of Corporation unless the Compensation Committee of the Board shall determine in advance that any such expense of Employee should be paid by Employee.

Any expense reimbursements made to satisfy the terms of this Paragraph 10 shall be paid as soon as practicable but no later than ninety (90) days after Employee submits evidence of such expenses to Corporation (which payment date shall in no event be later than the last day of the calendar year following the calendar year in which the expense was incurred).  The amount of such reimbursements during any calendar year shall not affect the benefits provided in any other calendar year, and the right to any benefits under this Paragraph shall not be subject to liquidation or exchange for another benefit.

11.    Vacation.  Employee shall be entitled to vacation time with pay during each calendar year in accordance with Corporation's vacation policy for senior executive employees.  In addition, Employee shall be entitled to such holidays as Corporation shall recognize for its employees generally.

12.    Sickness and total disability.  Employee's absence from work because of sickness or accident (not resulting in Employee becoming "totally disabled," as that term is hereinafter defined) shall not result in any adjustment in Employee's compensation or other benefits under this Agreement.

Should Employee become totally disabled as a result of sickness or accident and unable to adequately perform his regular duties prescribed under this Agreement, his base salary (which shall continue to be adjusted as provided for in Paragraph 5), together with incentive bonuses under Corporation's Management Incentive Plan and his participation in Corporation's employee benefit programs and retirement plan shall continue without reduction except as hereinafter provided, during the continuance of such disability for a period not exceeding the earlier of (1) the end of the term of this Agreement or any extension hereof, or (2) a period of one and one-half (1-1/2) years (547 calendar days) for each continuous disability.  Payments pursuant to this Paragraph 12 shall be reduced by any amounts paid to Employee during any such period of disability from time to time under any disability programs, plans or policies maintained by Corporation, its subsidiaries or affiliates.  

    

3

Should Employee's total disability continue for a period beyond the end of the term of this Agreement or in excess of five hundred and forty-seven (547) calendar days, this Agreement shall, at the end of such period which first occurs, be automatically terminated.  If, however, prior to such time, Employee's total disability shall have ceased and he shall have resumed the adequate performance of his duties hereunder, this Agreement shall continue in full force and effect and Employee shall be entitled to continue his employment hereunder and to receive his full compensation and other benefits as though he had not been disabled; provided, however, unless Employee shall adequately perform his duties hereunder for a continuous period of at least sixty (60) calendar days following a period of total disability before Employee again becomes totally disabled, he shall not be entitled to start a new five hundred and forty-seven (547)-day period under this Paragraph, but instead may only continue under the remaining portion of the original five hundred and forty-seven (547)-day period of total disability.  In the event Employee shall not adequately perform his duties hereunder for a continuous period of at least sixty (60) calendar days following a period of total disability, the running of the original five hundred and forty-seven (547)-day period shall cease during the time of Employee's adequate performance of his duties hereunder before Employee again becomes totally disabled.

If, following Employee’s becoming totally disabled, this Agreement shall be terminated (as provided in the preceding paragraph) and Employee’s employment with Corporation terminated, Employee shall be one hundred percent (100%) vested in any employer contributions under the EDCP. 

For the purpose of this Agreement, the term "totally disabled" or "total disability" shall mean Employee's inability to adequately perform his executive and management duties hereunder on account of accident or illness.  It is understood that Employee's occasional sickness or other incapacity of short duration may not result in him being or becoming "totally disabled"; however, such illness or incapacity could constitute Employee's being or becoming "totally disabled" if such illness or incapacity is prolonged or recurring.

13.    Termination of employment.

A.    Termination by Corporation.  The Corporation's Chief Executive Officer may terminate this Agreement and Employee’s employment (the date thereof being referred to as his “Actual Termination Date”), at any time, with or without "good cause" ("good cause" being hereinafter defined), (i) immediately upon giving written notice to Employee of his termination for “good cause,” and (ii) by giving at least thirty (30) days' written notice to Employee of Corporation’s intention to terminate Employee's employment without "good cause"; provided, however, with respect to termination without “good cause,” Corporation may, at its selection, terminate Employee's actual employment (so that Employee no longer renders services on behalf of Corporation) at any time during said thirty (30) day period; and,

4

(1)    In the event such termination is for "good cause," Corporation shall be obligated only to pay Employee his base salary earned under Paragraph 5 through his Actual Termination Date.

For purposes of this Agreement (including Paragraph 18 hereof), "good cause" shall mean: that, in the sole discretion of the Corporation’s Chief Executive Officer, any of the following have occurred or exist: (i) the willful and deliberate failure of Employee to substantially perform his executive and management duties hereunder for reasons other than Employee's sickness, injury or disability; (ii) the willful and deliberate conduct by Employee which results in substantial injury or damage to Corporation; or (iii) the conviction or plea of guilty by Employee of a felony crime.  A termination of Employee for “good cause” based on clause (i) or (ii) of the preceding sentence will take effect immediately, unless Corporation’s Chief Executive Officer, in his sole discretion, allows Employee a right to cure, in which case such termination for “good cause” will take effect thirty (30) days (or such shorter period as determined by the Chief Executive Officer) after Employee receives from Corporation written notice of its intent to terminate Employee’s employment and Corporation’s description of the alleged cause, unless Employee, in the opinion of the Corporation’s Chief Executive Officer, during such permitted cure period, makes significant progress toward remedying (and as soon as practicable thereafter, substantially completes the remedy of) the events or circumstances constituting “good cause”; a termination of Employee for “good cause” based on clause (iii) of the preceding sentence will take effect immediately.

(2)    In the event such termination is without "good cause," as defined in subparagraph (1) of this Paragraph and, if applicable, subject to the terms of Paragraph 18, and if Employee timely signs and does not revoke a release as provided in subparagraph G of this Paragraph 13, Corporation shall be obligated to:

(a)    upon Employee’s separation from service, pay Employee his base salary as provided for in Paragraph 5 of this Agreement up to the end of the scheduled term of this Agreement.  Such amount, if any, payable under this subparagraph (a) for the period after his Actual Termination Date will be paid in accordance with the regular payroll schedule applicable to all other similarly-situated active executive employees of Corporation commencing with the next regularly scheduled payday, with any portion of such amount that is payable within the six (6)-month period beginning on the date of his separation from service being paid in a lump sum upon the day after the six (6)-month anniversary of his separation from service;

(b)    pay Employee an amount equal to a portion of his performance bonus compensation as provided for in Paragraph 7 of this Agreement prorated based on the number of days through the end of the scheduled term of this Agreement.  The amount of such bonus payable under this subparagraph (b), if any, will be paid to Employee pursuant to the terms and customary operations of the Management Incentive Program (or other applicable bonus program) except that Employee’s performance will be deemed to be at target while actual performance of Corporation will be applied; provided, if the scheduled term of this Agreement ends after the calendar year in which the notice 

5

of termination is given, (i) the bonus payment for the calendar year in which such notice is given (and any other full calendar year that ends before the scheduled term of this Agreement ends) will be paid without any proration; and (ii) the amount of the bonus payment for the calendar year in which the scheduled term of this Agreement ends will be calculated on a pro rata basis, using the number of days elapsed during such calendar year through the end of the scheduled term of this Agreement, and will be paid upon Employee’s separation from service in a lump sum between January 1 and March 15, inclusive, of the calendar year following the calendar year in which the scheduled term of this Agreement ends or, if later, upon the day after the six (6)-month anniversary of his separation from service;

(c)    continue to honor all Equity Awards, subject to the terms thereof, granted to Employee prior to the termination date stated in said written notice, all of said options to be or become fully vested as of the termination date stated in said written notice; provided, any Equity Awards that vest based on performance will remain subject to the applicable performance criteria, and Employee’s performance will be deemed to be at target while actual vesting based on performance of Corporation will be applied in the manner and at the time provided in the agreements for such Equity Awards;

(d)    upon Employee’s separation from service, continue to pay or provide to Employee all of the retirement, health, life and disability benefits, as are provided for in this Agreement or under any programs, plans or policies covering Employee at the time of any such notice of termination, up to the end of the scheduled term of this Agreement.

Notwithstanding the foregoing, after Employee’s Actual Termination Date, Employee shall not actively participate in any retirement plan qualified under Code Section 401(a), any employee stock purchase plan under Code Section 423, any fully insured benefit for which the insurer does not allow post-employment participation, or any other plan or benefit (other than Corporation’s self-insured group health plan) that Corporation or the third-party insurer of such benefit reasonably determines is not suitable or available for post-employment participation. In such event, Employee shall be entitled to the benefits described in the next succeeding paragraph, to the extent applicable, up to the end of the scheduled term of this Agreement.

6

(i)    After Employee’s Actual Termination Date, Employee shall no longer actively participate in the Aflac Incorporated 401(k) Savings and Profit Sharing Plan (the “401(k) Plan”). Corporation shall pay to Employee an amount equal to the dollar amount of matching contributions, if any, that would have been made to Employee’s account(s) under the 401(k) Plan if Employee had continued to actively participate in such plan for the period from Employee’s Actual Termination Date through the end of the scheduled term of this Agreement, and had made Employee deferrals at the deferral rate necessary to receive the maximum matching contribution (if any) available to him under the terms of the 401(k) Plan with such amount being calculated as if Employee’s compensation and the limits applicable under the 401(k) plan all remained at the levels in effect as of the date the notice of termination is given.  This payment shall be made to Employee in a lump sum upon the day after the six (6)-month anniversary of his separation from service.

(ii)    Upon Employee’s separation from service, Corporation shall allow Employee to continue to participate in Corporation’s group health plan for the remainder of the stated term of this Agreement as if he remained an active employee; provided, Employee pays the full premium cost for such coverage; and provided further, Corporation shall reimburse Employee for the employer portion of the cost of such coverage (such that Employee shall pay in net terms only the active employee cost of such coverage) within sixty (60) days after the end of each calendar month in which Employee maintains such coverage.

B.    Termination by Employee.  Employee may terminate this Agreement at any time by giving at least sixty (60) days' written notice to Corporation of his intention to terminate his employment;

(1)    in the event such termination by Employee shall be without "good reason" (as defined in Paragraph 18 hereof) and with a bona fide intent either (i) to retire or (ii) not to work in, or engage in a business or activity that would be in a Competing Business (as defined in Paragraph 15) that would violate the covenant against competition as set forth in Paragraph 15, Corporation shall be obligated to:

(a)    pay Employee his base salary due him under Paragraph 5 of this Agreement up to his Actual Termination Date;

(b)    pay Employee an amount equal to any performance bonus compensation due him under Paragraph 7 of this Agreement for the period ending on the earlier of (i) the termination date stated in such written notice, or (ii) the last day of the calendar year in which written notice of termination is provided.  

7

The amount of said bonus, if any, will be paid to Employee pursuant to the terms and customary operations of the Management Incentive Program (or other applicable bonus program) except that Employee’s performance will be deemed at target while actual performance of Corporation will be applied, and will be calculated on a pro rata basis, using the number of days Employee was actually employed by Corporation during the calendar year in which Employee provides such written notice of termination;

(c)    continue to honor all Equity Awards, subject to the terms thereof, which have been granted to Employee and are fully vested prior to the termination date stated in said written notice;

(d)    pay Employee retirement benefits as are provided for in the EDCP.  

(2)    In the event such termination by Employee shall be for "good reason" (as defined in Paragraph 18 hereof), and if Employee timely signs and does not revoke a release as provided in subparagraph G of this Paragraph 13, Corporation shall be obligated to provide Employee with the payments, benefits and rights in a manner, at such times and in such forms as specified in subparagraphs A(2)(a)-(d) of this Paragraph 13.

(3)    In the event (i) such termination by Employee shall be without "good reason" (as defined in Paragraph 18 hereof) and (ii) Corporation determines that Employee’s post-employment activities violate, or will be in violation of, the Covenants of Paragraphs 15 and/or 16, then Corporation shall not be obligated to make or provide any further payments or benefits to Employee under this Agreement except as herein provided in this subparagraph.

(a)    subject to Corporation's rights under Paragraphs 15 and 16, Corporation shall pay Employee his base salary due him under Paragraph 5 of this Agreement up to his Actual Termination Date;

(b)    Subject to Corporation's rights under Paragraphs 15 and 16 hereof, Corporation shall continue to honor all Equity Awards, subject to the terms thereof, which have been granted to Employee and are fully vested prior to the termination date stated in said written notice.

C.    Termination while disabled.  If Employee is totally disabled at the time any such notice of termination is given, then notwithstanding the provisions of this Paragraph 13, Corporation shall nevertheless continue to pay Employee, as his sole compensation hereunder, the compensation and other benefits for the remaining period of Employee's total disability as provided for in Paragraph 12 hereinabove.  It is understood that in no event shall such disabled Employee be entitled to compensation under this Paragraph 13 in addition to the continuation of his compensation under Paragraph 12.

D.    Cooperation After Notice of Termination.  Following any such notice of termination, Employee shall fully cooperate with Corporation in all matters relating to the 

8

winding up of his pending work on behalf of Corporation and the orderly transfer of any such pending work to other employees of Corporation as may be designated by the Corporation’s Chief Executive Officer; and to that end, Corporation shall be entitled to full-time services of Employee through his Actual Termination Date and such full-time or part-time services of Employee as Corporation may reasonably require during all or any part of the sixty (60)-day period that follows his Actual Termination Date; provided, the parties acknowledge that, depending on the level of services so required, the provision of such services may delay the timing of Employee’s separation from service.

E.    Separation from Service.  The term “separation from service” when used in this Agreement shall mean that Employee separates from service with Corporation and all affiliates, as defined in Code Section 409A and guidance issued thereunder (“Section 409A”). As a general overview of Section 409A’s definition of “separation from service”, an employee separates from service if the employee dies, retires, or otherwise has a termination of employment with all affiliates, determined in accordance with the following:

(1)    Leaves of Absence.  The employment relationship is treated as continuing intact while the employee is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months, or, if longer, so long as the employee retains a right to reemployment with an affiliate under an applicable statute or by contract.  A leave of absence constitutes a bona fide leave of absence only while there is a reasonable expectation that the employee will return to perform services for an affiliate.  If the period of leave exceeds six (6) months and the employee does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six (6)-month period.  Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months, where such impairment causes the employee to be unable to perform the duties of his or his position of employment or any substantially similar position of employment, a twenty-nine (29)-month period of absence shall be substituted for such six (6)-month period.

(2)    Status Change.  Generally, if an employee performs services both as an employee and an independent contractor, the employee must separate from service both as an employee and as an independent contractor pursuant to standards set forth in Treasury Regulations to be treated as having a separation from service.  However, if an employee provides services to affiliates as an employee and as a member of the Board of Directors, the services provided as a director are not taken into account in determining whether the employee has a separation from service as an employee for purposes of this Agreement.

(3)    Termination of Employment.  Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the employer and the employee reasonably anticipate that (A) no further services will be performed after a certain date, or (B) the level of bona fide services the employee will perform after such date (whether as an employee or as an independent contractor) will permanently decrease to less than fifty percent (50%) of the average level of bona fide services performed 

9

(whether as an employee or an independent contractor) over the immediately preceding thirty-six (36)-month period.  Facts and circumstances to be considered in making this determination include, but are not limited to, whether the employee continues to be treated as an employee for other purposes (such as continuation of salary and participation in employee benefit programs), whether similarly-situated service providers have been treated consistently, and whether the employee is permitted, and realistically available, to perform services for other service recipients in the same line of business.  For periods during which an employee is on a paid bona fide leave of absence and has not otherwise terminated employment as described in subparagraph (1) above, for purposes of this subparagraph, the employee is treated as providing bona fide services at a level equal to the level of services that the employee would have been required to perform to receive the compensation paid with respect to such leave of absence.  Periods during which an employee is on an unpaid bona fide leave of absence and has not otherwise terminated employment are disregarded for purposes of this subsection (including for purposes of determining the applicable thirty-six (36)-month period).

F.    Separate Payments.  Each payment made to Employee pursuant to this Paragraph 13 or Paragraph 18 shall be treated as a separate payment for purposes of Code Section 409A.

G.    Release Requirement.  As a condition to Employee receiving any pay or benefits under subparagraph A(2) or B(2) of this Paragraph 13 or under Paragraph 18 (as applicable), Employee must sign (and not revoke) a written release agreement (“Release”) containing any terms specified by Corporation for (i) Employee’s release of Corporation and its affiliates from all claims arising from Employee’s employment or termination, (ii) Employee’s non-revocation of that release during the seven (7)-day period applicable to age-based claims, and (iii) Employee’s promise to comply with specified confidentiality, noncompetition and/or nonsolicitation provisions.  Corporation will terminate Employee’s eligibility for severance pay and benefits if he fails to sign, if he revokes, or if he fails to follow the terms of this Release and if it is not signed and returned to Corporation within the earlier of (i) the deadline specified by Corporation or (ii) sixty (60) days after Employee’s Actual Termination Date (or Termination Date for purposes of Paragraph 18).  Employee must sign the Release after his Actual Termination Date (or Termination Date for purposes of Paragraph 18).  In the event that any payment under subparagraph A(2) or B(2) of this Paragraph 13 or under Paragraph 18 (as applicable) is not exempt from Code Section 409A, the payment timing is based on the signing of this Release, and the period in which Employee could timely sign and return the release spans two (2) calendar years, such payment shall in all events be made in the second such calendar year.  Notwithstanding the foregoing, if the payment timing of any portion of payments or benefits, which rely solely on the short-term deferral rule to be exempt from Code Section 409A, would be delayed beyond the short-term deferral rule period due to Employee’s late signing of the Release, such portion shall be forfeited.
14.    Death of Employee.  In the event of Employee's death during the term of this agreement or any extension hereof, this Agreement shall terminate immediately, and Employee's estate shall be entitled to receive terminal pay in an amount equal to the amount of Employee's base salary and any performance bonus compensation actually paid by Corporation to Employee during the last thirty-six (36) months of his life, said terminal pay to be paid in thirty-six (36) equal monthly installments beginning on the first day of the month next following the month during 

10

which Employee's death occurs.  If the Employee's death occurs before he has been employed for thirty-six (36) months, the terminal pay shall be based on an amount equal to the Employee's base salary and any performance bonus actually paid by Corporation to Employee during the period of his employment plus the amount of base salary and performance bonus the Employee would have been paid had he survived for the full initial thirty-six (36)-month period.  Terminal pay as herein provided for in this Paragraph shall be in addition to amounts otherwise receivable by Employee or his estate under this or any other agreements with Corporation or under any employee benefits or retirement plans established by Corporation and in which Employee is participating at the time of his death.  Upon his death, Employee shall be one hundred percent (100%) vested in any employer contributions under the EDCP.   In addition, Corporation shall honor all Equity Awards, subject to the terms thereof, granted to Employee prior to his death; and Employee or his estate shall, if not otherwise vested, become fully vested in said options as of the date of Employee's death.  

15.    Covenants not to compete and not to disclose confidential information and trade secrets. 
 A.    Covenant against competition.  During employment and for a twenty-four (24)-month period after Employee’s Actual Termination Date (or Termination Date for purposes of Paragraph 18), Employee will not, on his own behalf, or on behalf of any other person or entity, compete with Aflac and its affiliated companies (the ”Aflac Companies”) by providing in the Restricted Territory (as defined in subparagraph A(3) of this Paragraph 15) to any Competing Business (as defined in subparagraph A(2) of this Paragraph 15), services similar to those Employee provided to the Aflac Companies with respect to the Aflac Business (as defined in subparagraph A(1) of this Paragraph 15), in circumstances in which Employee’s responsibilities and duties are substantially similar to those performed by him during the twenty-four (24)-month period ending on his Actual Termination Date.
(1)  “Aflac Business” means the Aflac Companies’ insurance company business, which the Aflac Companies operate throughout the United States (including the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam) and throughout Japan, and which includes but is not limited to (i) the development, underwriting marketing, distribution and sale of individual and group voluntary insurance products, including accident, cancer and other specified diseases, dental, hospital confinement indemnity, hospital confinement sickness indemnity, hospital intensive care, life, annuities, lump sum cancer, lump sum cancer critical illness, specified health event, short term disability and vision; (ii) the offering of un-reimbursed medical, dependent care, and transportation flexible spending accounts; and (iii) operating a private medical and insurance product exchange and similar enrollment services.  “Aflac Business” will also include any additional insurance and reimbursement account products and services, which become part of the business conducted by the Aflac Companies, whether through acquisition and/or development, and in which or to which Employee has had direct exposure in his position with the Aflac Companies.  Similarly, “Aflac Business” will not include any business operation, which formerly was part of the business conducted by the Aflac Companies and which ceased being a part thereof due to divestiture or discontinuation of that part of the business.

(2)  “Competing Business” means any person, concern or entity, which is engaged in, or conducts a business substantially the same as, the Aflac Business or any part thereof.

11

(3)  “Restricted Territory” means the area within the United States (including the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam) and Japan.

B.    Covenant against disclosure of confidential information and trade secrets.  Employee acknowledges that, during the term of his employment under this Agreement, Employee will be privy to (i) certain confidential and proprietary information of Aflac Companies, which constitutes trade secrets as defined in the Georgia Trade Secret Act of 1990 (the “Trade Secret Act”), and (ii) certain other confidential and proprietary information of Corporation that may not constitute trade secrets as so defined.  With respect to such Trade Secrets and other confidential and proprietary information, Employee covenants and agrees, as follows:
(1)    Employee agrees to not disclose to any third party, without the prior written consent of Corporation’s Chief Executive Officer or unless necessary to perform his duties and responsibilities hereunder, the processes, machines, technical documentation, computer programs, customer lists, identity of customers, business plans, marketing plans and techniques, pricing data, financial data, marketing programs, customer files, financial institution files, technical expertise and know how, and other confidential and proprietary information and trade secrets, whether as defined in the Trade Secret Act or which may lie beyond it (collectively, the “Property”), which have been or will be provided to Employee by any of the Aflac Companies and are confidential and proprietary property of any of the Aflac Companies.  Employee further agrees not to use any Property to his personal benefit or the benefit of any third party.  Employee also agrees to return to Corporation all such Property which is tangible upon or before his Actual Termination Date.  Notwithstanding the foregoing, the Property protected hereunder will not include any data or information that has been disclosed to the public (except where such public disclosure has been made by Employee without authorization), that has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means.  The restrictions in this Paragraph are in addition to, and not in lieu of, any rights or remedies Corporation may have available pursuant to the laws of the State of Georgia to prevent the disclosure of trade secrets and proprietary information, with such laws including but not limited to the Trade Secrets Act.
(2)    Employee’s obligations under the nondisclosure provisions in this Paragraph 15.B (i) will apply to Property that does not constitute trade secrets during the term of Employee’s employment hereunder and for as long as the Property remains confidential, and (ii) will apply to Property that constitutes trade secrets until such Property no longer constitutes trade secrets and is no longer confidential.
16.    Enforcement of restrictive covenants.
A.Blue Penciling.  The parties agree that if any court finds that any provision in Paragraph 15 or this Paragraph 16 is overly broad such that it is unenforceable under applicable state law, the court may reform that provision to narrow its scope to the extent necessary to render it enforceable.

12

B.Severability.  Employee acknowledges and agrees that the covenant against competition and the covenant against disclosure contained in Paragraphs 15.A and 15.B, respectively, are reasonable and valid and do not impose limitations greater than those that are necessary to protect the business interests and confidential information of the Aflac Companies.  The parties agree that the invalidity or unenforceability of any one or more of such covenants, other provisions, or parts thereof (collectively the “Covenants”) will not affect the validity or enforceability of the other Covenants, all of which are inserted conditionally on their being valid in law.  In the event one or more Covenants contained herein are ruled invalid (after application of subparagraph A of this Paragraph), this Agreement will be construed as if such invalid Covenant had not been inserted.  The parties hereto agree that the Covenants contained in this Agreement are severable and divisible; that none of such Covenants depends on any other Covenant for its enforceability; that such Covenants constitute enforceable obligations between the parties; that each such Covenant will be construed as an agreement independent of any other Covenant of this Agreement; and that the existence of any claim or cause of action by one party to this Agreement against the other party to this Agreement, whether predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by any party to this Agreement of any such Covenant.

C.Injunctive Relief.  Employee hereby agrees that any remedy at law for any breach of the Covenants will be inadequate and that any of the Aflac Companies will be entitled to apply for injunctive relief in addition to any other remedy the Aflac Companies might have under this Agreement.

D.Claim for Damages.  Employee acknowledges that, in addition to seeking injunctive relief, any of the Aflac Companies may bring a cause of action against him for any and all losses, liabilities, damages, deficiencies, costs (including, without limitation, court costs), and expenses (including, without limitation, reasonable attorneys’ fees), incurred by the Aflac Companies and arising out of or due to my breach of any Covenant or agreement contained in Paragraph 15.  Notwithstanding anything herein to the contrary, the breach of any Covenant will cause Employee to forfeit any and all payments otherwise due under Paragraph 13, and Employee agrees to repay to the Aflac Companies any amount already paid under such applicable subparagraph.

E.Survival.  Paragraph 15 and this Paragraph 16, to the extent applicable, will survive the termination of this Agreement and Employee’s employment.  In addition, neither the termination of this Agreement nor Employee’s employment will terminate any other obligations or rights that, by the specific terms of this Agreement, extend beyond such termination.

17.    Right to acquire insurance.  If Employee shall terminate his employment hereunder for any reason other than death, he may, at his election, acquire any insurance policies upon his life owned by the Corporation by giving written notice of his election to Corporation within ninety (90) days after his termination of employment.  Such policies shall be transferred to the Employee upon his payment to Corporation of the then interpolated terminal reserve value of said insurance.  In the event any policies transferred to Employee as herein provided shall not have an interpolated terminal reserve value, then the amount to be paid by Employee shall be its then fair market value.

    

13

18.    Change in control.

A.    In general.  In the event there is a Change in Control (as defined in this Paragraph) of Corporation, this Agreement shall, in order to help eliminate the uncertainties and concerns which may arise at such time, be automatically extended upon all of the same terms and provisions contained herein, for an additional period of three (3) years, beginning on the first day of the month during which such Change in Control shall occur.

B.    Notwithstanding the term of subparagraph A(2) and (B)(2) of Paragraph 13, and in lieu of the obligations of the Corporation under such paragraph, if, after a Change in Control Employee's employment is terminated by Corporation without "good cause" (as defined in Paragraph 13), or is terminated by Employee for "good reason" (as defined in Paragraph 18), any such termination by Corporation to be made only in accordance with the requirements specified by Paragraph 13.A, Employee shall be entitled to the following if Employee timely signs and does not revoke a release as provided in subparagraph G of Paragraph 13:

(1)    In a manner, at such times and in such forms as provided in Paragraph 13.A(1) Corporation shall pay Employee’s full base salary to Employee through the date of termination stated in Corporation’s written notice required pursuant to Paragraph 13.A hereof (hereinafter in this Paragraph the “Termination Date”) at the rate in effect on the date such notice is given and, additionally, shall pay Employee all compensation and benefits payable to Employee under the terms of any compensation or benefit plan, program or arrangement maintained by Corporation during such period through the Termination Date.

(2)    The Corporation shall pay Employee all compensation and benefits due Employee under Corporation's retirement, insurance and other compensation or benefit plans, programs of arrangements as such payments become due.  The amount of such compensation and benefits shall be determined under, and paid in accordance with, Corporation's retirement, insurance and other compensation or benefit plans, programs and arrangements.

(3)    In lieu of any further salary payments to Employee for periods subsequent to the Termination Date, the Corporation shall pay to Employee, immediately after the Termination Date, a lump sum payment, in cash, equal to three (3) times the sum of (i) Employee’s annual base salary in effect immediately prior to the Change in Control and (ii) the higher of the amount paid to Employee pursuant to the Corporation’s Management Incentive Plan (or any successor plan thereto) for the year preceding the year in which the Termination Date occurs or paid in the year preceding the year in which the Change in Control occurs; provided, if Employee’s separation from service occurs more than twenty-four (24) months after the Change in Control, only the portion of such lump-sum severance payment in excess of the total amount that would have been payable under Paragraphs 13.A(2)(a) and (b) shall be paid pursuant to the terms hereinabove, and the remainder shall be paid pursuant to the terms of Paragraphs 13.A(2)(a) and (b) as if no Change in Control had occurred; and, provided further, such amount will be paid upon the day after the six (6)-month anniversary of Employee’s

14

separation from service; provided further, if upon his Termination Date Employee has attained his Maximum Retirement Benefit Date, no amount shall be payable under this subparagraph 3.

(4)    The Corporation shall pay to Employee, immediately after the Termination Date, a lump sum amount, in cash, equal to a pro rata portion (based on the number of days Employee is an employee during the year in which the Termination Date occurs) of the aggregate value of the maximum annual amount of all contingent incentive compensation awards to Employee for all uncompleted periods under the Corporation's Management Incentive Plan (or successor plan thereto); provided, to the extent any amount of such lump sum payable after the Termination Date is not exempt from Section 409A, such amount will be paid upon the day after the six (6)-month anniversary of Employee’s separation from service.

(5)    For a thirty-six (36)-month period after Employee’s separation from service,  Corporation shall provide Employee with life, disability, accident and health insurance benefits substantially similar to and equal or greater in economic value than such benefits which Employee is receiving immediately prior to the Termination Date (without giving effect to any reduction in such benefits subsequent to a Change in Control which reduction in benefits would constitute “good reason” as defined in this Paragraph).  Benefits required to be provided to Employee pursuant to this subparagraph B(5) shall be reduced to the extent comparable benefits are actually received by or made available to Employee without cost during such thirty-six (36)-month period and any such benefit actually received by Employee shall be reported to Corporation by Employee.

Notwithstanding the foregoing, with respect to any of such life and/or disability benefits that are fully insured, in lieu of providing such benefits for such period, Corporation shall pay Employee a lump-sum amount equal to the cost of such benefits on a post-employment basis for such thirty-six (36)-month period; provided, any such cash payment shall be made as soon as practicable after Employee’s separation from service, with any amount that is not exempt from Section 409A and that is otherwise payable within the six (6)-month period beginning on the date of his separation from service being paid upon the day after the six (6)-month anniversary of his separation from service.

C.    In addition to the payments provided for in subparagraph B of this Paragraph 18, in the event that after a Change in Control Employee's employment by the Corporation is terminated by the Corporation without "good cause" or by Employee for "good reason," the Corporation shall continue to honor all Equity Awards granted to Employee (subject to the terms of such awards) prior to the Termination Date, and all Equity Awards granted to Employee prior to his Actual Termination Date shall become fully vested and exercisable (and to the extent applicable (e.g., with respect to any restricted stock units or similar awards) payable, as of the Termination Date; provided, any Equity Awards that vest based on performance will vest as if the maximum performance under the performance criteria had been satisfied. 

D.    Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit received or to be received by Employee in connection with a Change in Control or the termination of Employee’s employment (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Corporation, any person whose 

15

actions result in a Change in Control or any person affiliated with the Corporation or such person) (all such payments and benefits being hereinafter called “Total Payments”) would not be deductible (in whole or in part) by the Corporation, an affiliate or person making such payment or providing such benefit as a result of Section 280G of the Internal Revenue Code of 1986 (the “Code”) then, to the extent necessary to make such portion of the Total Payments deductible (and after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement or agreement), adjustments in such payments shall be made as follows:  (i) the cash payments provided pursuant to subparagraph B(3) and B(4) of this Paragraph 18 that are exempt from Section 409A shall first be reduced (if necessary, to zero);  (ii) then, if further reductions are necessary, benefits provided under subparagraph B(5) of this Paragraph 18 that are exempt from Section 409A shall be reduced (if necessary, to zero); (iii) then, if still further reductions are necessary, the cash payments provided pursuant to subparagraph B(3) and B(4) of this Paragraph 18 that are not exempt from Section 409A shall be reduced (if necessary, to zero); and (iv) finally, if still further reductions are necessary, all of the benefits provided under subparagraph B(5) of this Paragraph 18 that are not exempt from Section 409A shall  be forfeited.  For purposes of this limitation (i) no portion of the Total Payments, the receipt or enjoyment of which Employee shall have effectively waived in writing prior to the date of termination of employment shall be taken into account (provided that, in no event will any such waiver impermissibly affect any portion of the Total Payments that is subject to Section 409A), (ii) no portion of the Total Payments shall be taken into account which in the opinion of the tax counsel selected by the Corporation’s independent auditors and reasonably acceptable to Employee does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code, including by reason of Section 280G(b)(4)(A) of the Code, (iii) except as provided in clause (iv) above, the payments and benefits be reduced only to the extent necessary so that the Total Payments (other than those referred to in clauses (i) or (ii)) in their entirety constitute reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4)(B) of the Code or are otherwise not subject to disallowance as deductions, in the opinion of the tax counsel referred to in clause (ii); and (iv) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Corporation’s independent auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.  In no event shall the Corporation’s obligation to continue to honor all Equity Awards granted to Employee prior to the Termination Date nor the vesting of Equity Awards in accordance with Paragraph 18.C hereof be affected by this Paragraph 18.D.

E.    Definitions.

(1)    “Change in Control” means a change in ownership or effective control of Corporation or a change in the ownership of a substantial portion of the assets of Corporation, all within the meaning of Section 409A.  As a general overview, Section 409A’s definition of these terms, and the dates as of which they occur, are as follows:

(a)    The date any one person, or more than one person acting as a group, acquires ownership of stock of Corporation that, together with stock held by such person or group constitutes more than fifty percent (50%) of the total voting power of the stock of Corporation.  However, if any one person, or more than one person acting as a group, is considered to own more than fifty percent 

16

(50%) of the total fair market value or total voting power of the stock of Corporation, the acquisition of additional stock by the same person or persons is not considered to cause a change in the ownership of Corporation or to cause a change in the effective control of Corporation.

(b)    The date any one person, or more than one person acting as a group, acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of Corporation possessing thirty percent (30%) or more of the total voting power of the stock of Corporation.

(c)    The date that any one person, or more than one person acting as a group acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) assets from Corporation that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of Corporation immediately before such acquisition or acquisitions. 

(d)    The date a majority Corporation’s board of directors is replaced during any twelve (12)-month period by directors whose appointment or election is not endorsed by a majority of the members of Corporation’s board of directors before the date of the appointment or election.

(2)    “Good reason” shall mean the termination of employment by Employee upon the occurrence of any one or more of the following events to the extent that there is, or would be if not corrected, a material negative change in Employee’s employment relationship with Corporation:

(a)    A material breach by Corporation of the terms and conditions of this Agreement affecting Employee’s salary and bonus compensation, any employee benefit, Equity Awards or the loss of any of Employee’s titles or positions with Corporation;

(b)    A significant diminution of Employee’s duties and responsibilities;

(c)    The assignment to Employee of duties significantly inconsistent with or different from his duties and responsibilities existing at the time of a Change in Control;

(d)    A purported termination of Employee’s employment by Corporation other than as permitted by this Agreement;

(e)    The relocation of Corporation’s principal office or of Employee’s own office to any place beyond twenty-five (25) miles from the current principal office of Corporation in Columbus, Georgia; and

17

(f)    The failure of any successor to Corporation to expressly assume and agree to discharge Corporation’s obligations to Employee under this Agreement as extended under this Paragraph, in form and substance satisfactory to Employee.

Notwithstanding the foregoing, Employee shall have good reason under this Agreement only if (i) Employee provides Corporation, within ninety (90) days of the occurrence of the event giving rise to the notice, a written notice indicating the specific good reason provision(s) in this Agreement relied upon, setting forth in reasonable detail the facts and circumstances claimed to provide a basis for good reason, and indicating a date of termination of employment (not less than thirty (30) nor more than sixty (60) days after the date such notice is given); and (ii) such facts and circumstances are not substantially corrected by Corporation prior to the date of termination specified by Employee in such notice.  Any failure by Employee to set forth in a notice of good reason any facts or circumstances which contribute to the showing of good reason shall not waive any right of Employee hereunder or preclude Employee from asserting such fact or circumstances in enforcing his rights hereunder.

19.    No requirement to seek employment and no offset.  Corporation agrees that, if Employee's employment is terminated by Corporation during the term of this Agreement or by Employee for "good reason" during the term of this Agreement, Employee is not required to seek other employment or attempt in any way to reduce the amounts payable to Employee by Corporation pursuant to the applicable terms of this Agreement; it being understood and agreed that the amount of any payment or benefit to Employee provided for hereunder shall not be reduced by any compensation or other benefits earned by Employee as a result of his employment by another employer or, after a Change in Control, by Corporation's attempt to offset any amount claimed to be owed by Employee to Corporation or otherwise.

20.    Waiver of breach or violation not deemed continuing.  The waiver by either party of a breach or violation of any provision of this Agreement shall not operate as or be construed to be a waiver of any subsequent breach hereof.

21.    Notices.  Any and all notices required or permitted to be given under this Agreement will be sufficient if furnished in writing, sent by registered or certified mail to his last known residence in the case of Employee or to its principal office in Columbus, Georgia, in the case of the Corporation.

22.    Authority.  The provisions of this Agreement required to be approved by the Board of Directors of Corporation or the Compensation Committee of the Board have been so approved and authorized.

23.    Arbitration.  From time-to-time, Employee agrees to sign and become a party to any arbitration agreement with such terms as Corporation may provide, and the terms of such arbitration agreement shall be incorporated herein by this reference and shall apply to all claims under this Agreement; provided, notwithstanding the foregoing, any claims or actions, whether for damages, injunctive relief or other relief, for any violation or breach of the Covenants set forth in Paragraphs 

18

15 and 16, including but not limited to the actions described in subparagraphs C and D of Paragraph 16, (i) shall be excluded from the arbitration agreement and its applicability, and (ii) shall be subject to the jurisdiction of the applicable court as set forth in Paragraph 24.

	
		
	/s/ DPA
	/s/ FJC

	Initials for Corporation
	Initials of Employee

24.    Governing Law.  This Agreement shall be interpreted, construed and governed according to the laws of the State of Georgia.  Any legal action brought in regard to this Agreement, which is not subject to arbitration as provided in Paragraph 23 or is brought to enforce the finding of the arbitrator, shall be brought in the Superior Court of Muscogee County, Georgia, or the United States District Court of the Southern District of Georgia, whichever applies, and the parties waive jurisdiction and venue in any other court.

25.    Paragraph Headings.  The paragraph headings contained in this Agreement are for convenience only and shall in no manner be construed as part of this Agreement.

26.    Two originals.  This Agreement is executed in two (2) originals, each of which shall be deemed an original and together shall constitute one and the same Agreement, with one original being delivered to each party hereto.

27.    Code Section 409A.  This Agreement is intended to comply with the requirements of Code Section 409A and shall be construed accordingly.  Any payments or distributions to be made to Employee under this Agreement upon a “separation from service” (as defined above) of amounts classified as “nonqualified deferred compensation” for purposes of Code Section 409A, payable due to a separation from service and not exempt from Section 409A, shall in no event be made or commence until six (6) months after such separation from service.  Each payment of nonqualified deferred compensation under this Agreement shall be treated as a separate payment for purposes of Code Section 409A.  Notwithstanding the foregoing, Corporation shall not be liable to Employee or any other person if the Internal Revenue Service or any court determines for any reason that any payments under this Agreement are subject to taxes or penalties under Section 409A.

28.    Tax Withholding.  Corporation shall withhold all applicable taxes from any amounts payable under this Agreement, including, but not limited to, any federal, foreign, state and local taxes; and all such amounts described in this Agreement shall be paid net of such taxes.

29.    Amendments and Waivers.  Except as otherwise specified herein, this Agreement may be amended, and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of Corporation and Employee.
 
    

19

IN WITNESS WHEREOF, Corporation has hereunto caused its name to be signed and its seal to be affixed by its duly authorized officers, and Employee has hereunto set his hand and seal, all being done in duplicate originals, with one original being delivered to each party as of the 23rd day of June, 2015.

	
					
	 
	 
	 
	 
	AFLAC INCORPORATED

	 
	 
	 
	 
	 

	/s/ Frederick J. Crawford
	BY:
	/s/ Daniel P. Amos

	Frederick J. Crawford
	 
	 
	 
	 DANIEL P. AMOS

	     Employee
	 
	 
	 
	     Chairman and Chief Executive Officer

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	/s/ Jenna Owens
	ATTEST:
	/s/ J. Matthew Loudermilk

	     Witness
	 
	 
	 
	J. MATTHEW LOUDERMILK

	 
	 
	 
	 
	     VP, Corporate Secretary

20EX-10.1

 Exhibit 10.1 

DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC. 

SECOND AMENDED AND RESTATED EQUITY INCENTIVE PLAN 

DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC., a Maryland corporation (the “Company”), initially adopted this Equity Incentive
Plan (the “Initial Plan”) effective January 12, 2006, for the benefit of the eligible non-employee directors, officers, other employees, advisors and consultants providing services to the Company (which may include employees of the
Advisor, Manager and other Plan Related Parties). On March 12, 2015, the Board adopted this Second Amended and Restated Equity Incentive Plan to amend and restate for the second time the Initial Plan in its entirety to read as follows. The Plan
will be effective on the date it is approved by a majority of the votes cast at a stockholder meeting, provided the stockholders of the Company so approve this Plan within twelve (12) months from March 12, 2015. 

The purpose of the Plan is to enable the Company and the Advisor, Manager and other Plan Related Parties to obtain and retain the services of
eligible individuals who are important to the long range success of the Company, by offering such individuals an opportunity to participate in the Company’s growth through the ownership of stock in the Company. 

ARTICLE I 
 DEFINITIONS

 Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates
otherwise. 
 “Administrator” shall mean the Board or, if the Board so delegates its authority, the Compensation Committee and, to
the extent either of them delegates authority under Section 11.4, the person or entity to whom authority is delegated. 

“Advisor” shall mean Dividend Capital Total Advisors LLC, a Delaware limited liability company. 

“Affiliate” or “Affiliated” means, as to any individual, corporation, partnership, trust, limited liability company or
other legal entity (i) any person or entity directly or indirectly through one or more intermediaries controlling, controlled by or under common control with another person or entity; (ii) any person or entity directly or indirectly
owning, controlling, or holding with power to vote ten percent (10%) or more of the outstanding voting securities of another person or entity; (iii) any officer, director, general partner or trustee of such person or entity; (iv) any
person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with power to vote, by such other person; and (v) if such other person or entity is an officer, director, general
partner or trustee of a person or entity, the person or entity for which such person or entity acts in any such capacity. 

“Award” shall mean any grant of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Dividend Equivalents,
Other Share-Based Awards, or Cash-Based Awards under the Plan. 

 “Award Agreement” shall mean the written document(s), including an electronic writing
acceptable to the Administrator, and any notice, addendum, amendment or supplement thereto, memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate the terms of the Plan. 

“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act. 

“Board” shall mean the Board of Directors of the Company. 

“Change in Control” shall mean any of the following transactions: 

(a) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities
beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 50% or more of the combined voting power of the Company’s then outstanding securities (a “Controlling Interest”),
excluding (i) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or (ii) any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of
paragraph (c) below; or 
 (b) a change in the composition of the Board over a period of 36 consecutive months (or less) such that a
majority of the Board members (rounded up to the nearest whole number) ceases, by reason of one or more proxy contests for the election of Board members, to be comprised of individuals who either (i) have been Board members continuously since
the beginning of such period or (ii) have been elected or nominated for election as Board members during such period by at least two-thirds (2/3) of the Board members described in clause (i) who were still in office at the time such
election or nomination was approved by the Board; or 
 (c) there is consummated a merger or consolidation of the Company or any direct or
indirect subsidiary of the Company with any other entity, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof
outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing 50% or more of the combined voting power of the
Company’s then outstanding securities; or 
 (d) the stockholders of the Company approve a plan of complete liquidation or dissolution
of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the
Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to
such sale. 

  
 2 

 Notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred (i) solely as the
result of a public offering or (ii) by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or
series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions. 

“Cash-Based Award” shall mean an Award granted under Article IX. 

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

“Common Stock” shall mean the common stock of the Company, par value $0.01 per share, issued or authorized to be issued in the
future, including unclassified shares of common stock as well as Class A, Class W and Class I shares of common stock, but excluding any preferred stock and any warrants, options or other rights to purchase Common Stock. 

“Company” shall mean Dividend Capital Diversified Property Fund Inc., a Maryland corporation. 

“Compensation Committee” shall mean the compensation committee of the Board, which shall at all times consist of two or more persons
who are (i) “non-employee directors” within the meaning of Rule 16b-3, (ii) Independent Directors and (iii) “outside directors” within the meaning of Section 162(m) of the Code. 

“Director Option” shall mean an Option granted pursuant to Article V. 

“Dividend Equivalent” shall mean a right to receive cash, Shares, other Awards or other property equal in value to dividends paid
with respect to a specified number of Shares. 
 “Eligible Individual” shall mean any director, officer or other employee of the
Company or a Related Corporation, or any consultant or advisor of the Company or a Related Corporation who is a natural person providing bona fide services to the Company or a Related Corporation and those 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 stock. Such natural person may be an employee of any Plan Related Party as long as he or she is
performing bona fide advisory or consulting services to the Company or a Related Corporation. “Eligible Individual” also includes any prospective director, officer, employee, consultant, or advisor listed above, so long as any Award
granted to that person does not vest, and no Share is issued, before the person performs services. 
 “Employer” shall mean either
the Company or a Related Corporation, or any Plan Related Party, as the context may require. 
 “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended. 

  
 3 

 “Fair Market Value” on any date shall mean the Closing Price (as defined below) per
Share on such date if such date is a Trading Day or, if such date is not a Trading Day, the Trading Day immediately prior to such date. The “Closing Price” on any date shall mean the last sale price, regular way (as defined below), or, in
case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading
on the principal national securities exchange on which the Shares are listed or admitted to trading or, if the Shares are not listed or admitted to trading on any national securities exchange, the last quoted price, or if not so quoted, the average
of the high bid and low asked prices in the over-the-counter market, as reported by the principal automated quotation system that may then be in use or, if the Shares are not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market-maker authorized to make a market in the Shares selected by the Board or, if there is no professional market maker making a market in the Shares, the daily NAV per Share determined by the Company or, if
the Company does not compute a daily NAV, the fair market value of a Share as determined by the Board, in its absolute discretion. “Trading Day” shall mean a day on which the principal national securities exchange or national automated
quotation system on which the Shares are listed or admitted to trading is open for the transaction of business or, if the Shares are not listed or admitted to trading on any national securities exchange or national automated quotation system, shall
mean (a) any day that a daily NAV per Share is determined by the Company or (b) if the Company does not compute a daily NAV, any day other than a Saturday, a Sunday or a day on which banking institutions in the State of Colorado are
authorized or obligated by law or executive order to close. The term “regular way” means a trade that is effected in a recognized securities market for clearance and settlement pursuant to the rules and procedures of the National
Securities Clearing Corporation, as opposed to a trade effected “ex-clearing” for same day or next day settlement. 

“Incentive Stock Option” shall mean an Option that is intended to qualify as an “incentive stock option” within the
meaning of Section 422 of the Code. 
 “Independent Director” shall mean a member of the Board who is not, and within the
last two years has not been, directly or indirectly, associated with the Advisor or the Manager or any of their Affiliates by virtue of (i) ownership of an interest in the Advisor or the Manager or any of their Affiliates, (ii) employment
by the Advisor or the Manager or any of their Affiliates, (iii) service as an officer or director of the Advisor or the Manager or any of their Affiliates, (iv) performance of services, other than as a director, for the Company,
(v) service as a director or trustee of more than three real estate investment trusts advised by the Advisor or its Affiliates, or (vi) maintenance of a material business or professional relationship with the Advisor or the Manager or any
of their Affiliates. An indirect relationship shall include circumstances in which a director’s spouse, parents, children, siblings, mother- or father-in-law, sons- or daughters-in-law or brothers- or sisters-in-law is or has been associated
with the Advisors or the Manager or any of their Affiliates. A business or a professional relationship is considered material if gross income derived by the director from the Advisor or the Manager or Affiliates thereof exceeds five percent
(5%) of either the director’s annual gross income during either of the last two years or the director’s net worth determined on a fair market value basis. 

  
 4 

 “Manager” shall mean Dividend Capital Property Management LLC, a Colorado limited
liability company. 
 “NAV” shall mean net asset value, as determined pursuant to valuation procedures approved by the Board. 

“Non-Employee Director” shall have the meaning ascribed to such term in Section 5.1. 

“Non-Qualified Stock Option” shall mean an Option which is not intended to be an Incentive Stock Option. 

“Option” shall mean a stock option granted under Article IV or V. 

“Other Share-Based Award” shall mean an Award granted under Article IX. 

“Participant” shall mean an Eligible Individual who is granted an Award. 

“Performance Criteria” mean one or more of the business criteria listed below, or any combination thereof, which apply to a
Participant, a business unit, or the Company as a whole, and may be applied on a per share or absolute basis, may be measured pursuant to U.S. generally accepted accounting principles (“GAAP”), non-GAAP or other objective standards, and
may be compared with a peer group or other benchmark: 
 (a) Earnings per share; 

(b) Net income (before or after taxes); 

(c) Return measures (including, but not limited to, return on assets, equity or sales); 

(d) Cash flow return on investments which equals net cash flows divided by owners’ equity; 

(e) Earnings before or after taxes, depreciation and/or amortization; 

(f) Gross revenues; 
 (g) Net or
gross operating income (before or after taxes) or growth thereof, including same store net operating income; 
 (h) Total stockholder
returns; 
 (i) Corporate performance indicators (indices based on the level of certain services provided to customers); 

(j) Cash generation, profit and/or revenue targets; 

(k) Growth measures, including revenue growth and growth of adjusted or modified funds from operations; 

  
 5 

 (l) Share price (including, but not limited to, growth measures and total stockholder return);

 (m) Pre-tax profits; 
 (n)
Net asset value; 
 (o) Total property return; 

(p) Capital expenditure; 
 (q)
Expense levels or ratios and reduction of expenses and costs; 
 (r) Customer satisfaction; and/or 

(s) Strategic metrics, including capital allocation and investment strategy, execution of transition and development plans, branding or
rebranding, management effectiveness, staffing development, team building and management, office relocation, management of legal and regulatory matters, management of co-investment relationships and joint ventures. 

“Performance Goal” means a pre-established, objective goal based on a Performance Criteria measured over a pre-established
performance period, the attainment of which goal could be determined by a third party having knowledge of the relevant facts. 

“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, except that such term shall not include (i) the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company. 
 “Plan” shall mean this Second Amended and Restated Equity Incentive Plan of Dividend Capital Diversified Property
Fund Inc., as it may be amended from time to time. 
 “Plan Related Party” shall mean any entity or entities which are controlled
by or majority-owned by, directly or indirectly, any of John A. Blumberg, James R. Mulvihill, and/or Evan H. Zucker (individually, a “Founder”, and, collectively, the “Founders”), or by any partnership, trust or other entity
which a Founder controls or majority owns, and specifically shall include (whether within the foregoing definition or not), without limitation, the Company, DCTAG Incentive, LLC (“DCTAG Incentive”), Dividend Capital Total Advisors Group
LLC (“DCTAG”), Dividend Capital Total Advisors LLC (“DCTA”), Dividend Capital Property Management LLC (“DCPM”), Dividend Capital Securities Group LLLP (“DCSG”), BCC-BD Expense Company LLC (“BCC”) and
any entity or entities which are controlled by, under common control with, or controlling DCTAG Incentive, DCTAG, DCTA, DCPM, DCSG, BCC or the Company. BCC and DCSG and their subsidiaries shall be deemed a “Plan Related Party” though not
controlled by the Founders. Notwithstanding the foregoing, entities owned or controlled by a single Founder for purposes of estate or family planning, or unrelated to the platforms commonly known as Dividend Capital Group or Black Creek Group, shall
not be “Plan Related Parties” for purposes of this Plan. 

  
 6 

 “Related Corporation” shall mean a parent or subsidiary corporation of the Company, as
those terms are defined in Sections 424(e) and (f) of the Code. 
 “Restricted Stock” shall mean an Award of Shares
granted under Article VII. 
 “Restricted Stock Unit” shall mean an Award of a Unit granted under Article VIII. 

“Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time. 

“Securities Act” shall mean the Securities Act of 1933, as amended. 

“Shares” shall mean shares of Common Stock issuable upon the grant, vesting, exercise and/or settlement of Awards under the Plan.

 “Stock Appreciation Right” or “SAR” shall mean an Award granted under Article VI. 

“Termination of Service” shall mean the time when the service provider/service recipient relationship between a Participant and the
Employer is terminated for any reason, with or without cause, including, but not by way of limitation, a termination by resignation, discharge, death, disability or retirement; but, provided it does not conflict with any terms in an Award Agreement,
excluding (i) at the absolute discretion of the Administrator, termination where there is a simultaneous reemployment or continuing employment of a Participant by another Employer, (ii) at the absolute discretion of the Administrator,
terminations which result in a temporary severance of the service provider/service recipient relationship, and (iii) at the absolute discretion of the Administrator, terminations which are followed by the simultaneous establishment of a
consulting relationship with the Participant by an Employer. Provided it does not conflict with any terms in an Award Agreement, the Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to
Termination of Service, including, but not by way of limitation, the question of whether a Termination of Service resulted from a discharge for “cause” as it may be defined in an Award Agreement, and all questions or whether a particular
leave of absence constitutes a Termination of Service. Notwithstanding the foregoing, with respect to any Award that constitutes a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code,
“Termination of Service” shall mean a “separation from service” as defined under Section 409A of the Code to the extent required by Section 409A of the Code to avoid the imposition of any tax or interest or the
inclusion of any amount in income pursuant to Section 409A of the Code. 
 “Unit” shall mean a unit, the value of which shall
always be equal to the value of one Share. 

  
 7 

 ARTICLE II 

SHARES SUBJECT TO PLAN 

2.1 Shares Subject to Plan. The aggregate number of Shares which may be issued upon grant, vesting, exercise or settlement of Awards under the
Plan shall not exceed five million (5,000,000), subject to adjustment as provided herein. The Shares issuable under the Plan shall be previously authorized but unissued shares. 

2.2 Individual Limitations. No more than five million (5,000,000) Shares may be made subject to Incentive Stock Options. No more than two
hundred thousand (200,000) Shares may be made subject to Options or SARs to a single individual in a single calendar year, subject to adjustment as provided herein, and no more than two hundred thousand (200,000) Shares may be made subject
to stock-based awards other than Options or SARs (including Restricted Stock and Restricted Stock Units or Other Stock-Based Awards) to a single individual in a single calendar year, in either case, subject to adjustment as provided herein. No more
than $1,000,000 may be payable for Cash-Based Awards to a single individual in a single calendar year. Determinations made in respect of the limitations set forth in the immediately preceding sentence shall be made in a manner consistent with
Section 162(m) of the Code. 
 2.3 Expired Awards and Other Rights. If any Shares subject to an Award are forfeited or cancelled, or if
an Award is settled in cash, terminates unearned or expires, in each case, without a distribution of shares to the Participant, the Shares with respect to such Award shall, to the extent of any such forfeiture, cancellation, cash settlement,
termination or expiration, again be available for Awards under the Plan. By contrast, if Shares are surrendered or withheld as payment of the exercise price of an Award or withholding taxes in respect of an Award, the Shares with respect to such
Award shall, to the extent of any such surrender or withholding, no longer be available for Awards under the Plan. Similarly, Shares subject to any portion of a stock-settled SAR that is exercised shall no longer be available for Awards under the
Plan, regardless of whether the Shares are issued. Upon the exercise of any Award granted in tandem with any other Award, such related Award shall be cancelled to the extent of the number of Shares as to which the Award is exercised and,
notwithstanding the foregoing, such number of Shares shall no longer be available for Awards under the Plan. 
 2.4 Adjustments to Shares,
Awards. In the event that the Administrator shall determine that any extraordinary dividend or other extraordinary distribution (whether in the form of cash, Shares, or other property), recapitalization, stock split, reverse split, reorganization,
merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar corporate transaction or event, affects the Shares such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of
Participants under the Plan, then the Administrator shall make such equitable changes or adjustments as it deems necessary or appropriate to any or all of (i) the number and kind of Shares or other property (including cash) that may thereafter
be issued in connection with Awards (including the maximum amounts that may be subject to or payable for Awards granted to a single individual in a single calendar year), (ii) the number and kind of Shares or other property (including cash)
issued or issuable in respect of outstanding Awards, (iii) the exercise price, grant price, or purchase price relating to any Award; provided, that, with respect to Incentive Stock Options, such adjustment shall be made in accordance
with Section 424(h) of the Code; and (iv) the Performance Goals applicable to outstanding Awards. Any fractional Shares resulting from any adjustment under this Section 2.4 shall be eliminated. 

  
 8 

 ARTICLE III 

GRANTING OF AWARDS 
 3.1
Eligibility. Any Eligible Individual selected by the Administrator pursuant to Section 3.2(a)(i) shall be eligible to receive an Award. 

3.2 Granting of Awards. 
 (a) The
Administrator shall from time to time, in its absolute discretion, and subject to applicable limitations of the Plan: 
 (i) determine which
Eligible Individuals should be granted Awards; 
 (ii) determine the number of Shares to be subject to such Awards; and 

(iii) determine the terms and conditions of such Awards, consistent with the Plan. 

(b) Upon the selection of a Participant to be granted an Award, the Administrator shall instruct the Secretary of the Company to issue the
Award and may impose such conditions on the grant of the Award as it deems appropriate. 
 (c) Notwithstanding Section 3.2(a) and (b),
no Award shall be granted to any Participant to the extent that the grant of such Award could, at the time of grant or afterwards, impair the Company’s status as a real estate investment trust within the meaning of the Code or result in a
violation of any of the stock ownership and transfer restrictions imposed under the Company’s Articles of Incorporation as amended and supplemented. 

ARTICLE IV 
 STOCK
OPTIONS 
 4.1 Option Agreement. The Administrator may from time to time grant to Eligible Individuals Awards of Incentive Stock Options
or Non-qualified Stock Options; provided, however, that Awards of Incentive Stock Options shall be limited to employees of the Company or of any current or hereafter existing Related Corporation, and any other Eligible Individuals who
are eligible to receive Incentive Stock Options under the provisions of Section 422 of the Code. Each Option shall be evidenced by a written Award Agreement, which shall be executed by the Participant and an authorized officer of the Company
and which shall contain such terms and conditions as the Administrator shall determine consistent with the Plan. No Option shall be an Incentive Stock Option unless so designated by the Administrator at the time of grant or in the applicable Award
Agreement. 
 4.2 Exercise Price. The exercise price per Share of the Shares subject to each Option shall be set by the Administrator;
provided, however, that such exercise price shall not be less than the Fair Market Value of a Share on the date the Option is granted except as follows. The 

  
 9 

 
exercise per Share of an Option may be less than the Fair Market Value of a Share on the date the Option is granted pursuant to a corporate transaction involving the Company, if permitted under
Sections 424(a) and 409A of the Code. 
 4.3 Option Term. The term of an Option shall be set by the Administrator in its absolute
discretion; provided, however, that no Option shall be granted with a term of more than ten years from the date the Option is granted. The Administrator may extend the term of any outstanding Option in connection with any Termination
of Service of the Participant, or amend any other term or condition of such Option relating to such a termination. 
 4.4 Option Vesting.

 (a) The period during which the right to exercise an Option in whole or in part vests in the Participant shall be set by the Administrator
and the Administrator may determine that an Option may not be exercised in whole or in part for a specified period after it is granted; provided, however, that, unless the Administrator otherwise provides in the terms of the Award
Agreement or otherwise, no Option shall be exercisable by any Participant who is then subject to Section 16 of the Exchange Act within the period ending six months and one day after the date the Option is granted. The vesting of an Option may
be made subject to the attainment of one or more Performance Goals 
 (b) No portion of an Option which is unexercisable at Termination of
Service shall thereafter become exercisable, except as may be otherwise provided by the Administrator in any Award Agreement or by action of the Administrator following the grant of the Option. 

4.5 Partial Exercise. An Option may be exercised in whole or in part; however, an Option shall not be exercisable with respect to fractional
Shares and the Administrator may require that, by the terms of the Award Agreement, a partial exercise be allowed only with respect to a minimum number of Shares. 

4.6 Manner of Exercise. All or a portion of an Option shall be deemed exercised upon delivery of all of the following to the Secretary of the
Company (or such other officer as identified in the applicable Award Agreement) with a copy of such documents delivered concurrently to the Secretary of the Company: 

(a) a written notice complying with the applicable rules established by the Administrator stating that the Option, or a portion thereof, is
exercised, and such notice shall be signed by the Participant or other person then entitled to exercise the Option or such portion of the Option; 

(b) such representations and documents as the Administrator, in its absolute discretion, deems necessary or advisable to effect compliance
with all applicable provisions of the Securities Act of 1933, as amended, and any other federal or state securities laws or regulations; provided, the Administrator may, in its absolute discretion, also take whatever additional actions it
deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars; 

  
 10 

 (c) in the event that the Option shall be exercised by any person or persons other than the
Participant, as determined pursuant to Section 12.2, appropriate proof of the right of such person or persons to exercise the Option; 

(d) full satisfaction of the exercise price for the Shares with respect to which the Option, or portion thereof, is exercised;
provided, that in the discretion of the Administrator and subject to the terms set forth in the applicable Award Agreement, the exercise price for Shares subject to an Option may be paid (i) in cash or cash equivalents, (ii) by an
exchange of Shares previously owned by the Participant, (iii) through a “broker cashless exercise” procedure approved by the Administrator (to the extent permitted by law), (iv) by having Shares with an aggregate Fair Market
Value on the date of exercise equal to the aggregate exercise price withheld by the Company or (v) a combination of the above, in any case in an amount having a combined value equal to such exercise price; and 

(e) full satisfaction of any tax withholding obligations required under Section 12.8. 

4.7 No Reload Options. No Option shall contain a reload feature that results in a new Option automatically granted upon delivery of Shares to
the Company in payment of the exercise price or any tax withholding obligation. 
 ARTICLE V 

DIRECTOR OPTIONS 
 5.1
Eligibility. Under the Initial Plan, until it was suspended effective as of June 17, 2011, the Company’s “non-employee directors” within the meaning of Rule 16b-3 or any similar rule which may subsequently be in effect
(“Non-Employee Directors”) were eligible to receive, and did receive, Director Options with specified terms as described in this Article V. This Article V continues to apply to such Options granted, but no additional Options shall be
granted pursuant to this Article V under this Plan. This Article V does not limit the ability of the directors to receive any other Awards permitted under this Plan. 

5.2 Award of Stock Options. 
 (a)
Effective on the later of (i) the date on which a Non-Employee Director became a member of the Board or (ii) the date the Initial Plan was adopted by the Company, or (iii) the date on which the Company closed on the sale of at least
two hundred thousand (200,000) shares of its common stock pursuant to its initial Form S-11 Registration Statement (file no. 333-125338), then each Non-Employee Director who satisfied the conditions set forth in Section 5.1 of the Initial
Plan automatically was awarded a Director Option to purchase ten thousand (10,000) Shares (subject to adjustment pursuant to Section 2.4) (an “Initial Option”). Effective on the date of each Annual Meeting of Stockholders of the
Company (an “Annual Meeting”), commencing with the Company’s Annual Meeting in 2007, each Non-Employee Director then in office was automatically awarded, unless otherwise determined by the Administrator, a Director Option to purchase
five thousand (5,000) Shares (subject to adjustment pursuant to Section 2.4) (a “Subsequent Option”). The Director Options are not intended to qualify as Incentive Stock Options. 

  
 11 

 (b) Notwithstanding any other provision of the Plan, the number of Director Options to be issued
pursuant to Article V of the Initial Plan shall be reduced or eliminated to the extent that the issuance of such Director Options would otherwise (i) enable the Independent Directors as a group to hold more than 10% of the outstanding Shares if
such Director Options were exercised; (ii) result in the Company being “closely-held” within the meaning of Section 856(h) of the Code; (iii) cause the Company to own, directly or constructively, 10% or more of the ownership
interests in a tenant of the property of the Company (or of the property of one or more partnerships in which the Company is a partner), within the meaning of Section 856(d)(2)(B) of the Code; (iv) result in a violation of any of the stock
ownership and transfer restrictions imposed under the Company’s Articles of Incorporation; or (v) cause, in the opinion of counsel to the Company, the Company to fail to qualify (or create, in the opinion of counsel to the Company, a risk
that the Company would no longer qualify) as a real estate investment trust within the meaning of the Code. To the extent that the issuance of Director Options pursuant to Section 5.2(a) would violate any of these limitations, the number of
Director Options to be issued to each of the Non-Employee Directors shall be reduced pro rata (with those Director Options not granted pursuant to this Section 5.2(b) referred to as the “Excess Options”). To the extent that the number
of Director Options issued to a Non-Employee Director is reduced in any year as a result of the application of these limitations, the Excess Options shall be issued to the Non-Employee Director in any subsequent year in which issuance of such Excess
Options, after taking into account the Director Options to be issued to the Non-Employee Directors in such subsequent year under Section 5.2(a), would not violate the limitations imposed by this Section 5.2(b). To the extent that the
issuance of an Excess Option is delayed until a subsequent year under this Section 5.2, the Excess Option shall be treated for all purposes under the Plan as having been issued in such subsequent year. 

5.3 Stock Option Certificates. The award of a Director Option shall be evidenced by a certificate executed by an officer of the Company. 

5.4 Option Price. The exercise price per Share of the Shares subject to each Initial Option granted shall be $11.00 per Share, and the
exercise price per Share of the Shares subject to each Subsequent Option granted shall be set by the Administrator; provided, however, that the exercise price per Share under each Subsequent Option shall not be less than the Fair Market Value of a
Share on the date such Subsequent Option is granted. 
 5.5 Exercise and Term of Director Options. 

(a) Director Options may be exercised by the delivery of written notice of exercise and full satisfaction of the exercise price for the Shares
with respect to which the Option, or portion thereof, is exercised; provided, that in the discretion of the Administrator and subject to the terms set forth in the applicable Stock Option Certificate, the exercise price for Shares subject to
an Option may be paid (i) in cash or cash equivalents, (ii) by an exchange of Shares previously owned by the Participant, (iii) through a “broker cashless exercise” procedure approved by the Administrator (to the extent
permitted by law), (iv) by having Shares with an aggregate Fair Market Value on the date of exercise equal to the aggregate exercise price withheld by the Company or (v) a combination of the above, in any case in an amount having a
combined value equal to such exercise price. 

  
 12 

 (b) Director Options shall lapse on such date as shall be determined by the Administrator and set
forth in the Award Agreement evidencing such Director Option; provided, that such date shall not be later than the tenth anniversary of the date of grant of such Director Option. Unless otherwise determined by the Administrator and subject to
such terms and conditions as are set forth in the Award Agreement evidencing such Director Option, each Non-Employee Director’s Initial Option shall become exercisable as follows: (i) 20% of the Shares on the date of grant, (ii) an
additional 20% of the Shares on each anniversary following the date of grant for a period of four years until 100% of the Shares become exercisable. In the event such Director Options have not lapsed prior thereto, a Non-Employee Director’s
Subsequent Options shall become fully exercisable on the second anniversary of the date on which each such Subsequent Option was granted. 

(c) Director Options shall continue to be exercisable until the such date as shall be determined by the Administrator and set forth in the
Award Agreement evidencing such Director Option; provided, that such date shall not be later than the tenth anniversary of the date of grant of such Director Option. Notwithstanding the generality of the foregoing, Director Options shall
continue to be exercisable in the case of the Non-Employee Director’s death or disability for a period ending on the first anniversary of such death or disabling event, provided that the death or disabling event occurs while the person is a
Non-Employee Director and prior to his or her removal for Cause, resignation or ceasing to be a Director of the Company for any other reason and the Director Option is otherwise exercisable on the date of the death or disabling event;
provided, however, if the Option is exercised within the first six months after it becomes exercisable, any Shares issued pursuant to such exercise may not be sold until the six-month anniversary of the date the Option became
exercisable. For purposes of this Article V, a Non-Employee Director is removed “for Cause” for gross negligence or willful misconduct in the execution of his duties; or for conviction of, or entry of a plea of guilty or nolo
contendere to, any felony or any act of fraud, embezzlement, misappropriation, or a crime involving moral turpitude. 
 ARTICLE VI

 STOCK APPRECIATION RIGHTS 

6.1 In General. An SAR may be granted as a stand-alone Award or in tandem with an Option. An SAR (i) granted in tandem with an Option may
be granted at the time of grant of the related Option or at any time thereafter or (ii) granted in tandem with an Incentive Stock Option may only be granted at the time of grant of the related Incentive Stock Option. A SAR granted in tandem
with an Option shall be exercisable only to the extent the underlying Option is exercisable. Payment of a SAR may be made in cash, Shares, or other property as specified in the Award Agreement or determined by the Administrator. 

6.2 SAR Agreement. Each SAR shall be evidenced by a written Award Agreement, which shall be executed by the Participant and an authorized
officer of the Company and which shall contain such terms and conditions as the Administrator shall determine consistent with the Plan. 

6.3 Right Conferred. An SAR shall confer on the Participant a right to receive an amount with respect to each Share subject thereto, upon
exercise thereof, equal to the excess of 

  
 13 

 
(i) the Fair Market Value of one Share on the date of exercise over (ii) the grant price of the SAR (which in the case of an SAR granted in tandem with an Option shall be equal to the
exercise price of the underlying Option). 
 6.4 Grant Price. The grant price per Share of the Shares subject to each SAR shall be set by
the Administrator; provided, however, that such grant price shall not be less than the Fair Market Value of a Share on the date the SAR is granted, except as follows. The exercise per Share of a SAR may be less than the Fair Market
Value of a Share on the date the SAR is granted pursuant to a corporate transaction involving the Company, if permitted under Section 409A of the Code. 

6.5 SAR Term. The term of an SAR shall be set by the Administrator in its absolute discretion; provided, however, that no SAR
shall be granted with a term of more than ten years from the date the SAR is granted. The Administrator may extend the term of any outstanding SAR in connection with any Termination of Service of the Participant, or amend any other term or condition
of such SAR relating to such a termination. 
 6.6 SAR Vesting. 

(a) The period during which the right to exercise an SAR in whole or in part vests in the Participant shall be set by the Administrator and the
Administrator may determine that an SAR may not be exercised in whole or in part for a specified period after it is granted; provided, however, that, unless the Administrator otherwise provides in the terms of the Award Agreement or otherwise, no
SAR shall be exercisable by any Participant who is then subject to Section 16 of the Exchange Act within the period ending six months and one day after the date the SAR is granted. The vesting of an SAR may be made subject to the attainment of
one or more Performance Goals. 
 (b) No portion of an SAR which is unexercisable at Termination of Service shall thereafter become
exercisable, except as may be otherwise provided by the Administrator in any Award Agreement or by action of the Administrator following the grant of the SAR. 

6.7 Partial Exercise. An SAR may be exercised in whole or in part; however, an SAR shall not be exercisable with respect to fractional Shares
and the Administrator may require that, by the terms of the Award Agreement, a partial exercise be allowed only with respect to a minimum number of Shares. 

6.8 Manner of Exercise. All or a portion of an SAR shall be deemed exercised upon delivery of all of the following to the Secretary of the
Company (or such other officer as identified in the applicable Award Agreement) with a copy of such documents delivered concurrently to the Secretary of the Company: 

(a) a written notice complying with the applicable rules established by the Administrator stating that the SAR, or a portion thereof, is
exercised, and such notice shall be signed by the Participant or other person then entitled to exercise the SAR or such portion of the SAR; 

  
 14 

 (b) such representations and documents as the Administrator, in its absolute discretion, deems
necessary or advisable to effect compliance with all applicable provisions of the Securities Act of 1933, as amended, and any other federal or state securities laws or regulations; provided, the Administrator may, in its absolute discretion,
also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars; 

(c) in the event that the SAR shall be exercised by any person or persons other than the Participant, as determined pursuant to
Section 12.2, appropriate proof of the right of such person or persons to exercise the SAR; 
 (d) if applicable, full satisfaction of
the exercise price for the Shares with respect to which the SAR, or portion thereof, is exercised; provided, that in the discretion of the Administrator and subject to the terms set forth in the applicable Award Agreement, the exercise price
for Shares subject to a SAR may be paid the same way as an Option under Section 4.6(d); and 
 (e) full satisfaction of any tax
withholding obligations required under Section 12.8. 
 ARTICLE VII 

RESTRICTED STOCK 
 7.1
Restricted Stock. The Administrator is authorized to grant Restricted Stock to Eligible Individuals on the following terms and conditions: 

7.2 Restricted Stock Agreement. Each Restricted Stock Award shall be evidenced by a written Award Agreement, which shall be executed by the
Participant and an authorized officer of the Company and which shall contain such terms and conditions as the Administrator shall determine consistent with the Plan. 

7.3 Issuance and Restrictions. Restricted Stock shall be subject to such restrictions on transferability and other restrictions, if any, as
the Administrator may impose at the date of grant or thereafter, which restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, or otherwise, as the Administrator may determine. The
Administrator may place restrictions on Restricted Stock that shall lapse, in whole or in part, only upon the attainment of Performance Goals. Except to the extent restricted under the Award Agreement relating to the Restricted Stock, a Participant
granted Restricted Stock shall have all of the rights of a stockholder including, without limitation, the right to vote Restricted Stock and the right to receive dividends thereon. 

7.4 Forfeiture. Upon Termination of Service during the applicable restriction period, Restricted Stock and any accrued but unpaid dividends
that are then subject to restrictions shall be forfeited; provided, that the Administrator may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture conditions
relating to Restricted Stock will be waived in whole or in part in the event of terminations resulting from specified causes, and the Administrator may in other cases waive in whole or in part the forfeiture of Restricted Stock. 

  
 15 

 7.5 Certificates for Stock. Certificates representing Restricted Stock granted under the Plan may
be evidenced in such manner as the Administrator shall determine or the Administrator, in its discretion, may register such Shares in book-entry form. If certificates representing Restricted Stock are registered in the name of the Participant, such
certificates shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, and the Company shall retain physical possession of the certificate. 

7.6 Dividends. Dividends paid on Restricted Stock shall be either paid at the dividend payment date, or deferred for payment to such date as
determined by the Administrator, in cash or in unrestricted Shares having a Fair Market Value equal to the amount of such dividends (such deferred payment of dividends shall be required for Restricted Stock with restrictions that lapse only upon the
attainment of Performance Goals). Shares distributed in connection with a stock split or stock dividend, and other property distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted
Stock with respect to which such Shares or other property has been distributed. 
 ARTICLE VIII 

RESTRICTED STOCK UNITS 

8.1 Restricted Stock Units. The Administrator is authorized to grant Restricted Stock Units to Eligible Individuals, subject to the terms and
conditions contained in the Plan and the applicable Award Agreement. 
 8.2 Restricted Stock Unit Agreement. Each Restricted Stock Unit
Award shall be evidenced by a written Award Agreement, which shall be executed by the Participant and an authorized officer of the Company and which shall contain such terms and conditions as the Administrator shall determine consistent with the
Plan. 
 8.3 Award and Restrictions. Delivery of Shares or cash, as determined by the Administrator, will occur upon the lapse of any
restrictions placed by the Administrator or, subject to compliance with Section 409A of the Code, the expiration of the deferral period specified for Restricted Stock Units by the Administrator in the applicable Award Agreement or, if the
Administrator permits, elected by the Participant. The Administrator may place restrictions on Restricted Stock Units that shall lapse, in whole or in part, upon the attainment of Performance Goals. 

8.4 Forfeiture. Upon Termination of Service during the applicable deferral period or portion thereof to which forfeiture conditions apply, or
upon failure to satisfy any other conditions precedent to the delivery of Shares or cash to which such Restricted Stock Units relate, all Restricted Stock Units shall be forfeited; provided, that the Administrator may provide, by rule or
regulation or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Restricted Stock Units will be waived in whole or in part in the event of termination resulting from specified
causes, and the Administrator may in other cases waive in whole or in part the forfeiture of Restricted Stock Units. 
 8.5 Dividend
Equivalents. Unless otherwise determined by the Administrator at the date of grant, any Dividend Equivalents that are granted with respect to any Restricted Stock 

  
 16 

 
Unit shall be either (A) paid with respect to such Restricted Stock Unit at the dividend payment date in cash or in Shares of unrestricted Common Stock having a Fair Market Value equal to
the amount of such dividends, or (B) deferred with respect to such Restricted Stock Unit and the amount or value thereof automatically deemed reinvested in additional Restricted Stock Units, other Awards or other investment vehicles, as the
Administrator shall determine or permit the Participant to elect (such deferred payment of Dividend Equivalents shall be required for Restricted Stock Units with restrictions that lapse only upon the attainment of Performance Goals). The applicable
Award Agreement shall specify whether any Dividend Equivalents shall be paid at the dividend payment date, deferred or deferred at the election of the Participant (subject to the requirements of Section 409A of the Code). 

ARTICLE IX 
 OTHER AWARDS

 9.1 Other Share-Based Awards. The Administrator shall have the authority to grant Awards to Eligible Individuals in the form of Other
Share-Based Awards, as deemed by the Administrator to be consistent with the purposes of the Plan. Each Other Share-Based Award shall be evidenced by a written Award Agreement, which shall be executed by the Participant and an authorized officer of
the Company and which shall contain such terms and conditions as the Administrator shall determine. Awards granted pursuant to this Article IX may be granted with value and payment contingent upon the attainment of one or more Performance Goals. The
Administrator shall determine the terms and conditions of such Awards at the date of grant or thereafter. 
 9.2 Cash-Based Awards. The
Administrator shall have the authority to grant Awards to Eligible Individuals in the form of Cash-Based Awards, as deemed by the Administrator to be consistent with the purposes of the Plan. Each Cash-Based Award shall be evidenced by a written
Award Agreement, which shall be executed by the Participant and an authorized officer of the Company and which shall contain such terms and conditions as the Administrator shall determine. Awards granted pursuant to this Article IX may be granted
with value and payment contingent upon the attainment of one or more Performance Goals. The Administrator shall determine the terms and conditions of such Awards at the date of grant or thereafter. 

ARTICLE X 
 CONDITIONS TO
ISSUANCE OF SHARES 
 10.1 Issuance. The Company shall not be required to issue or deliver any Shares purchased upon the grant, vesting
and/or exercise of any Award, or portion thereof, prior to fulfillment of all of the following conditions: 
 (a) the registration of such
Shares for listing on all stock exchanges on which the Shares are then listed; 
 (b) the completion of any registration or other
qualification of such Shares under any state or federal law, or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body which the Administrator shall, in its absolute discretion, deem
necessary or advisable; 

  
 17 

 (c) the obtaining of any approval or other clearance from any state or federal governmental
agency which the Administrator shall, in its absolute discretion, determine to be necessary or advisable; 
 (d) the lapse of such
reasonable period of time following the grant, vesting and/or exercise of the Award as the Administrator may establish from time to time for reasons of administrative convenience; and 

(e) full satisfaction of the exercise or purchase price for such Shares, plus satisfaction of any Employer applicable withholding tax
obligations, in either case, in accordance with the terms of the Plan and the applicable Award Agreement. 
 ARTICLE XI 

ADMINISTRATION 
 11.1
Administration. The Plan shall be administered by the Board or, if the Board so delegates its authority, by the Compensation Committee. If the Board administers the Plan, all references herein to the “Administrator” shall be references to
the Board. If the Compensation Committee is appointed to administer the Plan, all references herein to the “Administrator” shall be references to the Compensation Committee. The Administrator shall have the authority in its absolute
discretion, subject to and not inconsistent with the express provisions of the Plan, to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary or advisable in the
administration of the Plan, including, without limitation, the authority to grant Awards; to determine the Eligible Individuals to whom and the time or times at which Awards shall be granted; to determine the type and number of Awards to be granted,
the number of Shares to which an Award may relate and the terms, conditions, restrictions and Performance Criteria relating to any Award; to accelerate the vesting of any Award at any time; and to determine whether, to what extent, and under what
circumstances an Award may be settled, cancelled, forfeited, exchanged, or surrendered; to make adjustments in the terms and conditions of, and the Performance Goals (if any) included in, Awards; to construe and interpret the Plan and any Award; to
prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of the Award Agreements (which need not be identical for each Participant); and to make all other determinations deemed necessary or
advisable for the administration of the Plan. 
 Notwithstanding the foregoing, neither the Board, the Compensation Committee nor their
respective delegates shall have the authority to reprice (or cancel and regrant) any Option, SAR, or, if applicable, other Award at a lower exercise, grant or purchase price without first obtaining the approval of the Company’s stockholders. No
stockholder approval is required, however, if any action listed above is done pursuant to a corporate transaction involving the Company, including, but not limited to, any stock dividend, distribution (in the form of cash, Shares, other securities,
or property), stock split, extraordinary cash dividend, recapitalization, Change in Control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities, or other similar transaction.

  
 18 

 In addition, an Award shall not be granted, become vested, be exercised or paid if, in the sole
and absolute discretion of the Administrator, the grant, vesting, exercise or payment of such Award could result in any of the following: 

(a) the Participant’s or any other person’s ownership of Shares being in violation of any of the stock ownership and transfer
restrictions imposed under the Company’s Articles of Incorporation as amended and supplemented; 
 (b) the Shares shall be deemed not
to be transferable within the meaning of Section 856 of the Code; 
 (c) income to the Company or any other result that could impair
the Company’s status as a real estate investment trust within the meaning of the Code. 
 11.2 Duties and Powers of Administrator. The
Administrator may appoint a chairperson and a secretary and may make such rules and regulations for the conduct of its business as it shall deem advisable, and shall keep minutes of its meetings. All determinations of the Administrator shall be made
by a majority of its members either present in person or participating by conference telephone at a meeting or by written consent. The Administrator may delegate to one or more of its members or to one or more agents such administrative duties as it
may deem advisable, and the Administrator or any person to whom it has delegated duties as aforesaid may employ one or more persons to render advice with respect to any responsibility the Administrator or such person may have under the Plan. All
decisions, determinations and interpretations of the Administrator shall be final and binding on all persons, including but not limited to the Company, any parent or subsidiary of the Company or any Participant (or any person claiming any rights
under the Plan from or through any Participant) and any stockholder. The Administrator’s determinations under the Plan need not be uniform and may be made selectively among Awards, Eligible Individuals (whether or not the Eligible Individuals
are similarly situated), or both. 
 11.3 Professional Assistance; Good Faith Actions. The Administrator may employ attorneys, consultants,
accountants, appraisers, brokers, or other persons. The Administrator, the Company and the Company’s officers shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and
determinations made by the Administrator in good faith shall be final and binding upon all Participants, the Company, stockholders and all other interested persons; provided, however, that after a Change in Control, any determination
by the Administrator as to whether “cause” or “good reason” (as may be defined in an Award Agreement) exists will be subject to de novo review by a court of competent jurisdiction. No members of the Administrator shall be
personally liable for any action, determination or interpretation made in good faith with respect to the Plan and all members of the Administrator and shall be fully protected by the Company in respect of any such action, determination or
interpretation. 
 11.4 Delegation of Authority to Grant Awards. The Administrator may, but need not, delegate from time to time to a
committee consisting of one or more of the Company’s officers authority to grant Awards under the Plan to Eligible Individuals; provided, however, that each such Eligible Individual must be an individual other than an
“officer,” “director” or “beneficial 

  
 19 

 
owner of more than ten per cent of any class of any equity security” of the Company within the meaning of each such term as it is used under Section 16(b) of the Exchange Act. Any
delegation hereunder shall be subject to the restrictions and limits that the Administrator specifies at the time of such delegation of authority and may be rescinded at any time by the Administrator. At all times, any subcommittee appointed under
this Section 11.4 shall serve in such capacity at the pleasure of the Administrator. 
 ARTICLE XII 

MISCELLANEOUS PROVISIONS 

12.1 Rights as Stockholders. Except as determined by the Administrator and set forth in an Award Agreement, the holders of Awards shall not
be, nor have any of the rights or privileges of, stockholders of the Company in respect of any Shares subject to an Award unless and until such Shares have been issued by the Company to such holders. 

12.2 Not Transferable. Awards granted under the Plan may not be sold, pledged, assigned, or transferred in any manner other than by will or
applicable laws of descent and distribution. No Award holder shall be liable for the debts, contracts or engagements of the Participant or his or her successors-in-interest or shall be subject to disposition by transfer, alienation, anticipation,
pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any
attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence. 

During the lifetime of the Participant, only he or she may exercise an Option or SAR (or any portion thereof) granted to him or her under the
Plan. After the death of the Participant, any exercisable portion of the Option or SAR may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Award Agreement, be exercised by his or her personal
representative or by any person empowered to do so under the deceased Participant’s will or under the then applicable laws of descent and distribution. 

12.3 No Right to Employment or Other Service Relationship. Nothing in the Plan or in any Award Agreement hereunder shall (i) confer upon
any Participant any right to (a) continue in the employ of his or her Employer or to provide services to the Company, or (b) receive any severance pay from the Company or his or her Employer, or (ii) interfere with or restrict in any
way the rights of the Company or his or her Employer, which are hereby expressly reserved, to terminate the services of any Participant at any time for any reason whatsoever, with or without cause. 

12.4 Term of Plan. Unless earlier terminated by the Board, the Plan shall automatically expire and terminate on March 12, 2025. The
expiration or other termination of the Plan shall have no adverse effect on any Awards that are outstanding on the date of such expiration or other termination. 

12.5 Amendment, Suspension or Termination of the Plan. The Plan may be wholly or partially amended or otherwise modified, suspended or
terminated at any time or from time to 

  
 20 

 
time by the Board; provided, however, that an amendment that requires stockholder approval in order for the Plan to continue to comply with applicable law, regulation or stock
exchange requirement, or that removes the prohibition on repricing in Section 11.1, shall not be effective unless approved by the requisite vote of stockholders. Notwithstanding the foregoing, no amendment, suspension or termination of the Plan
shall, without the consent of the holder of an Award, alter or impair any rights or obligations under such Award theretofore granted or awarded unless the Award Agreement itself otherwise expressly so provides, and no amendment shall be made that
could jeopardize the status of the Company as a real estate investment trust under the Code. No Awards may be granted or awarded during any period of suspension or after termination of the Plan. 

12.6 Change in Control and Other Corporate Events. 

(a) Subject to Section 12.6(b), in the event of any Change in Control or other transaction or event described in Section 2.4 or any
unusual or nonrecurring transactions or events affecting the Company, any Affiliate of the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, the
Administrator is hereby authorized to take any action with respect to Awards at such time and on such terms and conditions as the Administrator determines in its absolute direction to be desirable, which action(s) may include, without limitation:

 (i) a determination that the Company shall pay to the holder of any Award, in consideration for the cancellation of such Award, an amount
of cash equal to the amount that could have been attained upon the vesting or exercise of such Award had such Award been currently exercisable or payable or fully vested, as applicable, or the replacement of such Award with other rights or property
selected by the Administrator; 
 (ii) a determination that Awards cannot vest, be exercised or become payable after such event, provided
that such determination may not conflict with anything to the contrary in an Award Agreement; 
 (iii) a determination that all or some
Awards shall become immediately vested and/or exercisable either prior to or as of such event, or that for a specified period of time prior to a transaction or event, an Option or SAR shall be exercisable as to all Shares covered thereby; 

(iv) a determination that upon such event, such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof,
or shall be substituted for by similar awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of Shares or other property and prices which are the
subject of such Award; or 
 (v) a determination to make adjustments to Awards consistent with Section 2.4. 

(b) With respect to Awards, no adjustment or action described in this Section 12.6 or in any other provision of the Plan shall be
authorized to the extent that such adjustment or action would result in short-swing profits liability under Section 16 of the Exchange Act or violate the exemptive conditions of Rule 16b-3 unless the Administrator determines that the Award is
not to comply with such exemptive conditions. The number of Shares subject to any Option shall always be rounded to the next whole number. 

  
 21 

 12.7 Approval of Plan by Stockholders. The Plan will be submitted for approval by the
Company’s stockholders within twelve (12) months from March 12, 2015. 
 12.8 Tax Withholding. The Company shall be entitled
to require of each Participant satisfaction of the Employer’s withholding obligations under federal, state or local tax law with respect to the issuance, vesting, exercise or payment of any Award, and the Company may defer such issuance,
vesting, exercise or payment unless indemnified to its satisfaction. The Administrator shall provide in the applicable Award Agreement the acceptable methods of satisfying such withholding obligations, which may include: (i) deducting such
amounts from other compensation otherwise payable to the Participant; (ii) having Shares otherwise issuable hereunder withheld, the Fair Market Value of which is sufficient to satisfy the Participant’s minimum estimated tax obligations (or
any other amount of the Participant’s estimated tax obligations that preserves the treatment of an Award as equity for financial accounting purposes) associated with the transaction; (iii) tendering back to the Company previously acquired
Shares or (iv) a combination of the foregoing. Nothing in the Plan or any Award Agreement will obligate the Company to make any gross-up payment to offset any tax obligation (withholding or otherwise) of a Participant due to an Award. 

12.9 Forfeiture Provisions. Pursuant to its general authority to determine the terms and conditions applicable to Awards granted under the
Plan, the Administrator shall have the right to provide, in the terms of an Award Agreement, or by separate written instrument, that (i) any proceeds, gains or other economic benefit actually or constructively received by an Participant upon
the receipt or exercise of the Award, or upon the receipt or resale of any Shares underlying such Award, must be paid to the Company, and (ii) the Award shall terminate and any outstanding portion of such Award (whether or not vested) shall be
forfeited, if (a) a Termination of Service occurs prior to a specified date, or within a specified time period following receipt or exercise of the Award, or (b) the Participant, at any time, or during a specified time period, engages in
any activity in competition with his or her Employer or the Company, or which is inimical, contrary or harmful to the interests of his or her Employer or the Company, as may be further defined from time to time by the Administrator. 

12.10 Limitations Applicable to Section 16. Notwithstanding any other provision of the Plan, the Plan, and any Award granted to any
individual who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that
are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan shall be deemed amended to the extent necessary to conform to such applicable exemptive rule. 

12.11 Effect of Plan Upon Other Equity and Compensation Plans. The adoption of the Plan shall not affect any other equity- or cash-based
compensation or incentive plans in effect for the Company from time to time. Nothing in the Plan shall be construed to limit the right of the Company (i) to establish any other forms of incentives or compensation for employees of the Company,
the Manager, the Advisor or other Plan Related Parties, or (ii) to grant or assume 

  
 22 

 
options or other rights or awards otherwise than under the Plan in connection with any proper corporate purpose including, but not by way of limitation, the grant or assumption of options in
connection with the acquisition by purchase, lease, merger, consolidation or otherwise of the business, stock or assets of any corporation, partnership, limited liability company, firm or association. Any amount payable under an Award will be
excluded from compensation when calculating benefits payable to a Participant under any Company pension plan or Company welfare plan, unless the plan specifically says so. 

12.12 Section 83(b) Election Prohibited. No Participant may make an election under Section 83(b) of the Code with respect to any
Award granted under the Plan without the Company’s consent. 
 12.13 Compliance with Laws. This Plan, the granting and vesting of
Awards under the Plan, the issuance and delivery of Shares, and the payment of money or other consideration allowable under the Plan or under Awards granted hereunder are subject to compliance with all applicable federal and state laws, rules and
regulations (including, but not limited to, state and federal securities laws and federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Board, the
Compensation Committee or the Company, be necessary or advisable in connection therewith. Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company,
provide such assurances and representations to the Company as the Board, the Compensation Committee or the Company may deem necessary or desirable to assure compliance with all applicable legal requirements. To the extent permitted by applicable
law, the Plan shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 12.14 Titles. Titles are
provided herein for convenience only and are not to serve as a basis for interpretation or construction of the Plan. 
 12.15 Governing Law.
This Plan and any agreements hereunder shall be administered, interpreted and enforced under the internal laws of the State of Colorado without regard to conflicts of laws provisions thereof. 

12.16 Code Section 409A. 

(a) The Award Agreement for any Award that the Administrator reasonably determines to constitute a “nonqualified deferred compensation
plan” under Section 409A of the Code (a “Section 409A Plan”), and the provisions of the Plan applicable to that Award, shall be construed in a manner consistent with the applicable requirements of Section 409A of the Code,
and the Administrator, in its sole discretion and without the consent of any Participant, may amend any Award Agreement (and the provisions of the Plan applicable thereto) if and to the extent that the Administrator determines that such amendment is
necessary or appropriate to comply with the requirements of Section 409A of the Code. Any payments described in an Award Agreement that are due within the “short term deferral period” as defined in Section 409A of the Code shall
not be treated as deferred compensation unless applicable law requires otherwise. 

  
 23 

 (b) If any Award constitutes a Section 409A Plan, then the Award shall be subject to the
following additional requirements, if and to the extent required to comply with Section 409A of the Code: 
 (i) Payments under the
Section 409A Plan may not be made earlier than the first to occur of (u) the Participant’s “separation from service”, (v) the date the Participant becomes “disabled”, (w) the Participant’s death,
(x) a “specified time (or pursuant to a fixed schedule)” specified in the Award Agreement at the date of the deferral of such compensation, (y) a “change in the ownership or effective control of the corporation, or in the
ownership of a substantial portion of the assets” of the Company, or (z) the occurrence of an “unforeseeable emergency”; provided, however, that the Administrator, in its discretion and without the
Participant’s consent may exercise its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred compensation within the meaning of Code Section 409A if and solely to the extent
that such accelerated payment or settlement is permissible under Treasury Regulation Section 1.409A-3(j)(4) or any successor thereto; 

(ii) The time or schedule for any payment of the deferred compensation may not be accelerated, except to the extent provided in applicable
Treasury Regulations or other applicable guidance issued by the Internal Revenue Service; 
 (iii) Any elections with respect to the
deferral of such compensation or the time and form of distribution of such deferred compensation shall comply with the requirements of Section 409A(a)(4) of the Code; and 

(iv) In the case of any Participant who is “specified employee”, a distribution on account of a “separation from service”
may not be made before the date which is six months after the date of the Participant’s “separation from service” (or, if earlier, the date of the Participant’s death). For purposes of the foregoing, the terms in quotations shall
have the same meanings as those terms have for purposes of Section 409A of the Code, and the limitations set forth herein shall be applied in such manner (and only to the extent) as shall be necessary to comply with any requirements of
Section 409A of the Code that are applicable to the Award. 
 (c) For purposes of any Award that constitutes a Section 409A Plan,
each amount to be paid or benefit to be provided to a Participant that constitutes deferred compensation subject to Section 409A of the Code shall be construed as a separate identified payment for purposes of Section 409A of the Code. 

(d) For purposes of Section 409A of the Code, the payment of Dividend Equivalents under any Award shall be construed as earnings and the
time and form of payment of such Dividend Equivalents shall be treated separately from the time and form of payment of the underlying Award. 

(e) Notwithstanding the foregoing, none of the Company or its Affiliates, or the Plan Related Parties or any of their Affiliates, make any
representation to any Participant or Beneficiary that any Awards made pursuant to this Plan are exempt from, or satisfy, the requirements of Section 409A of the Code, and none of the Company or its Affiliates, or the Plan Related Parties or any
of their Affiliates, shall have any liability or other obligation to prevent, 

  
 24 

 
minimize, or offset any negative consequences under Section 409A or indemnify or hold harmless the Participant or any Beneficiary for any tax, additional tax, interest or penalties that the
Participant or any Beneficiary may incur in the event that any provision of this Plan, or any Award Agreement, or any amendment or modification thereof, or any other action taken with respect thereto, is deemed to violate any of the requirements of
Section 409A. 
 12.17 Clawback or Recoupment. Other than with respect to Awards granted prior to the effectiveness of this Plan (and
Shares and cash paid or payable thereunder), and unless otherwise specified in the Award Agreement or determined in the Administrator’s sole discretion, all Awards, and all Shares and cash payable under all Awards, are subject to any clawback
or recoupment policy adopted by the Company (including any policy required under the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable laws), regardless of whether the policy is adopted after the date on which the Award
is granted, vests or becomes exercisable, or is exercised or settled. 

*        *        * 

  
 25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]