Document:

Exhibit 10.1

 

REDWOOD TRUST, INC.

AMENDED AND RESTATED

2014 INCENTIVE AWARD PLAN

 

 

ARTICLE 1.

 

PURPOSE

 

The purpose of the
Amended and Restated Redwood Trust, Inc. 2014 Incentive Award Plan, as amended March 20, 2018 (as it may be amended or restated
from time to time, the “Plan”), is to promote the success and enhance the value of Redwood Trust, Inc. (the
“Company”) by linking the individual interests of the members of the Board, Employees, and Consultants to those
of Company stockholders and by providing such individuals with an incentive for outstanding performance to generate superior returns
to Company stockholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract,
and retain the services of members of the Board, Employees, and Consultants upon whose judgment, interest, and special effort the
successful conduct of the Company’s operation is largely dependent. The Plan amends and restates in its entirety the Redwood
Trust, Inc. 2014 Incentive Award Plan (the “Original Plan”).

 

ARTICLE 2.

 

DEFINITIONS AND CONSTRUCTION

 

Wherever the following
terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular
pronoun shall include the plural where the context so indicates.

 

2.1 “Administrator”
shall mean the entity that conducts the general administration of the Plan as provided in Article 13. With reference to the duties
of the Committee under the Plan which have been delegated to one or more persons pursuant to Section 13.6, or as to which the Board
has assumed, the term “Administrator” shall refer to such person(s) unless the Committee or the Board has revoked such
delegation or the Board has terminated the assumption of such duties.

 

2.2 “Affiliate”
shall mean (a) any Subsidiary; and (b) any domestic eligible entity that is disregarded, under Treasury Regulation Section 301.7701-3,
as an entity separate from either (i) the Company or (ii) any Subsidiary.

 

2.3 “Applicable
Accounting Standards” shall mean Generally Accepted Accounting Principles in the United States, International Financial
Reporting Standards or such other accounting principles or standards as may apply to the Company’s financial statements under
United States federal securities laws from time to time.

 

2.4 “Applicable
Law” shall mean any applicable law, including without limitation: (i) provisions of the Code, the Securities Act, the
Exchange Act and any rules or regulations thereunder; (ii) corporate, securities, tax or other laws, statutes, rules, requirements
or regulations, whether federal, state, local or foreign; and (iii) rules of any securities exchange or automated quotation system
on which the Shares are listed, quoted or traded.

 

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2.5 “Award”
shall mean an Option, a Restricted Stock award, a Restricted Stock Unit award, a Performance Award, a Dividend Equivalents award,
a Deferred Stock Unit award, a Stock Payment award or a Stock Appreciation Right, which may be awarded or granted under the Plan
(collectively, “Awards”).

 

2.6 “Award
Agreement” shall mean any written notice, agreement, terms and conditions, contract or other instrument or document evidencing
an Award, including through electronic medium, which shall contain such terms and conditions with respect to an Award as the Administrator
shall determine consistent with the Plan.

 

2.7 “Award
Limit” shall mean with respect to Awards that shall be payable in Shares or in cash, as the case may be, the respective
limit set forth in the first sentence of Section 3.3.

 

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

 

2.9 “Change
in Control” shall mean and includes each of the following:

 

(a) any one person, or
more than one person acting as a group (within the meaning of Section 409A of the Code), acquires ownership of stock of the Company
that, together with other stock held by such person or group constitutes more than fifty percent (50%) of the total fair market
value or total voting power of all stock of the Company;

 

(b) any one person, or
more than one person acting as a group (within the meaning of Section 409A of the Code), 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 the Company
possessing thirty percent (30%) or more of the total voting power of the stock of the Company;

 

(c) during any twelve
(12)-month period, a majority of the members of the Company’s Board is replaced by directors whose appointment or election
is not endorsed by a majority of the members of the Board prior to such appointment or election; or

 

(d) any one person, or
more than one person acting as a group (within the meaning of Section 409A of the Code), 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 the Company 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 the Company immediately before such acquisition or acquisition; provided, that that no “Change in Control”
shall be deemed to occur when the assets are transferred to (x) a shareholder of the Company in exchange for or with respect to
its stock, (y) a person, or more than one person acting as a group (within the meaning of Section 409A of the Code), that owns,
directly or indirectly, fifty percent (50%) or more of the total value or voting power of all of the outstanding stock of the Company,
or (z) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by
a person that owns directly or indirectly fifty percent (50%) or more of the total value or voting power of all of the outstanding
stock of the Company, in each case with such persons status determined immediately after the transfer of assets.

 

Notwithstanding the foregoing, if a Change
in Control constitutes a payment event with respect to any portion of an Award that provides for the deferral of compensation and
is subject to Section 409A of the Code, the transaction or event described in subsection (a), (b), (c) or (d) with respect to such
Award (or portion thereof) must also constitute a “change in control event,” as defined in Treasury Regulation Section
1.409A-3(i)(5) to the extent required by Section 409A.

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The Committee shall have full and final
authority, which shall be exercised in its sole discretion, to determine conclusively whether a Change in Control of the Company
has occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental matters
relating thereto; provided that any exercise of authority in conjunction with a determination of whether a Change in Control
is a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such
regulation.

 

2.10 “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, together with the regulations and official guidance
promulgated thereunder.

 

2.11 “Committee”
shall mean the Compensation Committee of the Board, or another committee or subcommittee of the Board or the Compensation Committee,
appointed as provided in Section 13.1.

 

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

 

2.13 “Company”
shall have the meaning set forth in Article 1.

 

2.14 “Consultant”
shall mean any consultant or adviser engaged to provide services to the Company or any Affiliate that qualifies as a consultant
under the applicable rules of the Securities and Exchange Commission for registration of shares on a Form S-8 Registration Statement.

 

2.15 “Covered
Employee” shall mean any Employee who is, or could be, a “covered employee” within the meaning of Section
162(m) of the Code.

 

2.16 “Data”
shall have the meaning set forth in Section 12.7.

 

2.17 “Deferred
Stock Unit” shall mean a right to receive Shares awarded under Section 10.4.

 

2.18 “Director”
shall mean a member of the Board, as constituted from time to time.

 

2.19 “Director
Limit” shall have the meaning set forth in Section 3.3.

 

2.20 “Dividend
Equivalent” shall mean a right to receive the equivalent value (in cash or Shares) of dividends paid on Shares, awarded
under Section 10.2.

 

2.21 “DRO”
shall mean a domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974,
as amended from time to time, or the rules thereunder.

 

2.22 “Effective
Date” shall mean, for purposes of the Plan (as amended and restated), the date on which the Plan is approved by the Company’s
stockholders; provided, however, that solely for purposes of the second to last sentence of Section 14.1 hereof, the Effective
Date shall be the date on which the Plan (as amended and restated) is adopted by the Board, subject to approval of the Plan (as
amended and restated) by the Company’s stockholders. Notwithstanding the foregoing, the Original Plan shall remain in effect
on its existing terms unless and until the Plan (as amended and restated) is approved by the Company’s stockholders.

 

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2.23 “Eligible
Individual” shall mean any person who is an Employee, a Consultant or a Non-Employee Director, as determined by the Committee.

 

2.24 “Employee”
shall mean any officer or other employee (as determined in accordance with Section 3401(c) of the Code and the Treasury Regulations
thereunder) of the Company or of any Affiliate.

 

2.25 “Equity
Restructuring” shall mean a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend,
stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the number
or kind of Shares (or other securities of the Company) or the share price of Common Stock (or other securities) and causes a change
in the per-share value of the Common Stock underlying outstanding Awards.

 

2.26 “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

2.27 “Expiration
Date” shall have the meaning given to such term in Section 14.1.

 

2.28 “Fair
Market Value” shall mean, as of any given date, the value of a Share determined as follows:

 

(a) If the Common Stock
is listed on any (i) established securities exchange (such as the New York Stock Exchange, the NASDAQ Global Market and the NASDAQ
Global Select Market), (ii) national market system or (iii) automated quotation system on which the Shares are listed, quoted or
traded, its Fair Market Value shall be the closing sales price for a Share as quoted on such exchange or system for such date or,
if there is no closing sales price for a Share on the date in question, the closing sales price for a Share on the last preceding
date for which such quotation exists, as reported in The Wall Street Journal or such other source as the Administrator deems
reliable;

 

(b) If the Common Stock
is not listed on an established securities exchange, national market system or automated quotation system, but the Common Stock
is regularly quoted by a recognized securities dealer, its Fair Market Value shall be the mean of the high bid and low asked prices
for such date or, if there are no high bid and low asked prices for a Share on such date, the high bid and low asked prices for
a Share on the last preceding date for which such information exists, as reported in The Wall Street Journal or such other
source as the Administrator deems reliable; or

 

(c) If the Common Stock
is neither listed on an established securities exchange, national market system or automated quotation system nor regularly quoted
by a recognized securities dealer, its Fair Market Value shall be established by the Administrator in good faith.

 

2.29 “Greater
Than 10% Stockholder” shall mean an individual then owning (within the meaning of Section 424(d) of the Code) more than
10% of the total combined voting power of all classes of stock of the Company or any subsidiary corporation (as defined in Section
424(f) of the Code) or parent corporation thereof (as defined in Section 424(e) of the Code).

 

2.30 “Holder”
shall mean a person who has been granted an Award.

 

2.31 “Incentive
Stock Option” shall mean an Option that is intended to qualify as an incentive stock option and conforms to the applicable
provisions of Section 422 of the Code.

 

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2.32 “Non-Employee
Director” shall mean a Director of the Company who is not an Employee.

 

2.33 “Non-Employee
Director Equity Compensation Policy” shall have the meaning set forth in Section 4.6.

 

2.34 “Non-Qualified
Stock Option” shall mean an Option that is not an Incentive Stock Option or which is designated as an Incentive Stock
Option but does not meet the applicable requirements of Section 422 of the Code.

 

2.35 “Option”
shall mean a right to purchase Shares at a specified exercise price, granted under Article 6. An Option shall be either a Non-Qualified
Stock Option or an Incentive Stock Option; provided, however, that Options granted to Non-Employee Directors and
Consultants shall only be Non-Qualified Stock Options.

 

2.36 “Option
Term” shall have the meaning set forth in Section 6.4.

 

2.37 “Original
Plan” shall have the meaning set forth in Article 1.

 

2.38 “Parent”
shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities ending with the Company
if each of the entities other than the Company beneficially owns, at the time of the determination, securities or interests representing
at least fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities
in such chain.

 

2.39 “Performance
Award” shall mean a cash bonus award, stock bonus award, performance award or incentive award that is paid in cash, Shares
or a combination of both, awarded under Section 10.1.

 

2.40 “Performance-Based
Compensation” shall mean any compensation that is intended to qualify as “performance-based compensation”
as described in Section 162(m)(4)(C) of the Code.

 

2.41 “Performance
Criteria” shall mean the criteria (and adjustments) that the Committee selects for an Award for purposes of establishing
the Performance Goal or Performance Goals for a Performance Period, determined as follows:

 

(a) The Performance Criteria
that may be used to establish Performance Goals are as follows: (i) net earnings or net income (in either case before or after
one or more of the following: (A) interest, (B) taxes, (C) depreciation and (D) amortization); (ii) adjusted net income or adjusted
net earnings; (iii) interest income or net interest income; (iv) revenue, earnings, or income from mortgage banking activities;
(v) taxable earnings or taxable income; (vi) REIT taxable earnings or REIT taxable income; (vii) gross or net sales or revenue
(including, without limitation, revenue from gains); (viii) operating earnings, income or profit; (ix) gross or net profit or operating
margin; (x) cash flow (including, but not limited to, operating cash flow and free cash flow); (xi) return on assets (including
adjusted return on assets); (xii) return on capital (including adjusted return on capital); (xiii) return on investment (including
adjusted return on investment); (xiv) return on equity or stockholders’ equity (including adjusted return on equity or stockholders’
equity); (xv) return on sales or revenue (including adjusted return on sales or revenue); (xvi) total stockholder return; (xvii)
productivity or efficiency; (xviii) expenses, including, without limitation, expenses associated with a particular administrative
department, business function or activity or expenses per loan or designated unit; (xix) working capital; (xx) any measure of revenue,
sales, income, earnings, or profit described in clauses (i) through (ix) measured on a per share basis (basic or diluted) or per
employee basis; (xxi) price per share; (xxii) implementation or completion of designated projects or initiatives or milestones
relating to any such projects or initiatives; (xxiii) market share; (xxiv) dividends paid or payable; and (xxv) economic value
(including economic

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profit), any of which may be measured either
in absolute terms or as compared to any incremental increase or decrease or as compared to results of a competitor or group of
competitors, to results of a peer group, to market performance indicators or indices, or to other objective benchmarks. For all
Awards intended to qualify as Performance-Based Compensation, the Performance Criteria that may be used to establish Performance
Goals are limited to the foregoing.

 

(b) The Administrator,
in its sole discretion, may provide that one or more objectively determinable adjustments shall be made to one or more of the Performance
Goals. Such adjustments may include one or more of the following: (i) items related to a change in accounting principle; (ii) items
relating to financing activities; (iii) expenses for restructuring or productivity initiatives; (iv) other non-operating items;
(v) items related to acquisitions; (vi) items attributable to the business operations of any entity acquired by the Company during
the Performance Period; (vii) items related to the disposal of a business or segment of a business; (viii) items related to discontinued
operations that do not qualify as a segment of a business under Applicable Accounting Standards; (ix) items attributable to any
stock dividend, stock split, combination or exchange of stock occurring during the Performance Period; (x) any other items of significant
income or expense which are determined to be appropriate adjustments; (xi) items relating to unusual or extraordinary corporate
transactions, events or developments, (xii) items related to amortization of acquired intangible assets; (xiii) items that are
outside the scope of the Company’s core, on-going business activities; (xiv) items related to acquired in-process research
and development; (xv) items relating to changes in tax laws; (xvi) items relating to major licensing or partnership arrangements;
(xvii) items relating to asset impairment charges; (xviii) items relating to gains or losses for litigation, arbitration and contractual
settlements; or (xix) items relating to any other unusual or nonrecurring events or changes in Applicable Law, accounting principles
or business conditions. For all Awards intended to qualify as Performance-Based Compensation, such determinations shall be made
within the time prescribed by, and otherwise in compliance with, Section 162(m) of the Code.

 

2.42 “Performance
Goals” shall mean, for a Performance Period, one or more goals established in writing by the Administrator for the Performance
Period based upon one or more Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals,
the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business unit,
or an individual. The achievement of each Performance Goal shall be determined, to the extent applicable, with reference to Applicable
Accounting Standards.

 

2.43 “Performance
Period” shall mean one or more periods of time, which may be of varying and overlapping durations, as the Administrator
may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Holder’s
right to, and the payment of, an Award.

 

2.44 “Performance
Stock Unit” shall mean a Performance Award awarded under Section 10.1 which is denominated in units of value including
dollar value of Shares.

 

2.45 “Permitted
Transferee” shall mean, with respect to a Holder, (i) any “family member” of the Holder, as defined in the
instructions to Form S-8 under the Securities Act, or (ii) with the prior approval of the Administrator, (a) a trust for the benefit
of one or more of the Holder or any “family member” of the Holder as defined in clause (i) above, (b) a partnership,
limited liability company or corporation in which the Holder or any “family member” of Holder as defined in clause
(i) above are the only partners, members or shareholders, or (c) a charitable organization or foundation.

 

2.46 “Plan”
shall have the meaning set forth in Article 1.

 

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2.47 “Program”
shall mean any program adopted by the Administrator pursuant to the Plan containing the terms and conditions intended to govern
a specified type of Award granted under the Plan and pursuant to which such type of Award may be granted under the Plan.

 

2.48 “Restricted
Stock” shall mean Common Stock awarded under Article 8 that is subject to certain restrictions and may be subject to
risk of forfeiture or repurchase.

 

2.49 “Restricted
Stock Units” shall mean the right to receive a grant that is denominated in Shares (and payable in Shares, cash, or a
combination thereof), awarded under Article 9.

 

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

 

2.51 “Shares”
shall mean shares of Common Stock.

 

2.52 “Stock
Appreciation Right” shall mean a stock appreciation right granted under Article 11.

 

2.53 “Stock
Appreciation Right Term” shall have the meaning set forth in Section 11.4.

 

2.54 “Stock
Payment” shall mean (a) a payment in the form of Shares, or (b) an option or other right to purchase Shares, as part
of a bonus, deferred compensation or other arrangement, awarded under Section 10.3.

 

2.55 “Subsidiary”
shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the
Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination,
securities or interests representing at least fifty percent (50%) of the total combined voting power of all classes of securities
or interests in one of the other entities in such chain.

 

2.56 “Substitute
Award” shall mean an Award granted under the Plan upon the assumption of, or in substitution for, outstanding equity
awards previously granted by a company or other entity in connection with a corporate transaction, such as a merger, combination,
consolidation or acquisition of property or stock; provided, however, that in no event shall the term “Substitute
Award” be construed to refer to an award made in connection with the cancellation and repricing of an Option or Stock Appreciation
Right.

 

2.57 “Termination
of Service” shall mean:

 

(a) As to a Consultant,
the time when the engagement of a Holder as a Consultant to the Company or an Affiliate is terminated for any reason, with or without
cause, including, without limitation, by resignation, discharge, death or retirement, but excluding terminations where the Consultant
simultaneously commences or remains in employment or service with the Company or any Affiliate.

 

(b) As to a Non-Employee
Director, the time when a Holder who is a Non-Employee Director ceases to be a Director for any reason, including, without limitation,
a termination by resignation, failure to be elected, death or retirement, but excluding terminations where the Holder simultaneously
commences or remains in employment or service with the Company or any Affiliate.

 

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(c) As to an Employee,
the time when the employee-employer relationship between a Holder and the Company or any Affiliate is terminated for any reason,
including, without limitation, a termination by resignation, discharge, death, disability or retirement; but excluding terminations
where the Holder simultaneously commences or remains in employment or service with the Company or any Affiliate.

 

The Administrator,
in its sole discretion, shall determine the effect of all matters and questions relating to any Termination of Service, including,
without limitation, the question of whether a Termination of Service resulted from a discharge for cause and all questions of whether
particular leaves of absence constitute a Termination of Service; provided, however, that, with respect to Incentive
Stock Options, unless the Administrator otherwise provides in the terms of the Program, the Award Agreement or otherwise, or as
otherwise required by Applicable Law, a leave of absence, change in status from an employee to an independent contractor or other
change in the employee-employer relationship shall constitute a Termination of Service only if, and to the extent that, such leave
of absence, change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then-applicable
regulations and revenue rulings under said Section. For purposes of the Plan, a Holder’s employee-employer relationship or
consultancy relations shall be deemed to be terminated in the event that the Affiliate employing or contracting with such Holder
ceases to remain an Affiliate following any merger, sale of stock or other corporate transaction or event (including, without limitation,
a spin-off).

 

ARTICLE 3.

 

SHARES SUBJECT TO THE PLAN

 

3.1 Number
of Shares.

 

(a) Subject to adjustment
as provided in Sections 3.1(b) and 14.2, as of the Effective Date a total of [l] Shares(1)
shall be authorized for Awards granted under the Plan, any or all of which may be delivered upon the exercise of Incentive Stock
Options.

 

(b) If any Shares subject
to an Award are forfeited or expire or an Award is settled for cash (in whole or in part) or otherwise does not result in the issuance
of all or a portion of the Shares subject to such Award (including due to the payment of the exercise price of a Stock Appreciation
Right in Shares).

 

(c) In the event that
(i) any Option or other Award granted hereunder is exercised through the tendering of Shares (either actually or by attestation)
or by the withholding of Shares by the Company, or (ii) withholding tax liabilities arising from such Option or other Award are
satisfied by the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, then in
each such case the Shares so tendered or withheld shall be added to the Shares available for grant under the Plan on a one-for-one
basis. The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards shall not be counted against the
Shares available for issuance under the Plan. Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned,
granted or awarded if such action would cause an Incentive Stock Option to fail to qualify as an incentive stock option under Section
422 of the Code.

 

(d) Substitute Awards
shall not reduce the Shares authorized for grant under the Plan, except that Shares acquired by exercise of substitute Incentive
Stock Options will count against the maximum number of Shares that may be issued pursuant to the exercise of Incentive Stock Options
under the Plan. Additionally, in the event that a company acquired by the Company or any Affiliate or with which the Company or
any Affiliate combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation
of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted,
to the extent

 

 

 

(1) As of Board adoption date, this number is 5,013,575
shares.

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appropriate, using the exchange
ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the
consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used
for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan; provided that Awards
using such available Shares shall not be made after the date awards or grants could have been made under the terms of the
pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employed by or
providing services to the Company or its Affiliates immediately prior to such acquisition or combination.

 

3.2 Stock Distributed.
Any Shares distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Common Stock, treasury
Common Stock or Common Stock purchased on the open market.

 

3.3 Limitation on
Number of Shares Subject to Awards. Notwithstanding any provision in the Plan to the contrary, and subject to Section 14.2,
(a) the maximum aggregate number of Shares with respect to one or more Awards of Options and/or Stock Appreciation Rights that
may be granted to any one person during any calendar year shall be 1,000,000 Shares, (b) the maximum aggregate number of Shares
with respect to one or more Awards (other than Options and Stock Appreciation Rights) that are intended to qualify as performance-based
compensation under Section 162(m) of the Code and are denominated in Shares that may be granted to any one person during any calendar
year shall be 1,000,000 Shares, (c) the maximum aggregate amount of cash that may be paid in cash to any one person during any
calendar year with respect to one or more Awards that are intended to qualify as performance-based compensation under Section 162(m)
of the Code and are denominated in cash shall be $10,000,000. In addition, notwithstanding any provision in the Plan to the contrary,
the sum of any cash compensation and the grant date fair value (as determined on the date of grant) of all Awards granted to any
one Non-Employee during any calendar year shall not exceed $600,000 (the “Director Limit”).

 

ARTICLE 4.

 

GRANTING OF AWARDS

 

4.1 Participation.
The Administrator may, from time to time, select from among all Eligible Individuals, those to whom an Award shall be granted and
shall determine the nature and amount of each Award, which shall not be inconsistent with the requirements of the Plan. Except
as provided in Section 4.6 regarding the grant of Awards pursuant to the Non-Employee Director Equity Compensation Policy, no Eligible
Individual shall have any right to be granted an Award pursuant to the Plan.

 

4.2 Award Agreement.
Each Award shall be evidenced by an Award Agreement that sets forth the terms, conditions and limitations for such Award, which
may include the term of the Award, the provisions applicable in the event of the Holder’s Termination of Service, and the
Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award. Award Agreements evidencing
Awards intended to qualify as Performance-Based Compensation shall contain such terms and conditions as may be necessary to meet
the applicable

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provisions of Section 162(m) of the Code.
Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the applicable
provisions of Section 422 of the Code.

 

4.3 Limitations
Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan, and any Award granted or awarded
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 Rule 16b-3 of the Exchange Act and any amendments
thereto) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, the Plan
and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive
rule.

 

4.4 At-Will Employment;
Voluntary Participation. Nothing in the Plan or in any Program or Award Agreement hereunder shall confer upon any Holder any
right to continue in the employ of, or as a Director or Consultant for, the Company or any Affiliate, or shall interfere with or
restrict in any way the rights of the Company and any Affiliate, which rights are hereby expressly reserved, to discharge any Holder
at any time for any reason whatsoever, with or without cause, and with or without notice, or to terminate or change all other terms
and conditions of employment or engagement, except to the extent expressly provided otherwise in a written agreement between the
Holder and the Company or any Affiliate. Participation by each Holder in the Plan shall be voluntary and nothing in the Plan shall
be construed as mandating that any Eligible Individual shall participate in the Plan.

 

4.5 Foreign Holders.
Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in countries other than the United
States in which the Company and its Affiliates may operate or have Employees, Non-Employee Directors or Consultants, or in order
to comply with the requirements of any foreign securities exchange, the Administrator, in its sole discretion, shall have the power
and authority to: (a) determine which Affiliates shall be covered by the Plan; (b) determine which Eligible Individuals outside
the United States are eligible to participate in the Plan; (c) modify the terms and conditions of any Award granted to Eligible
Individuals outside the United States to comply with applicable foreign laws or listing requirements of any such foreign securities
exchange; (d) establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may
be necessary or advisable (any such subplans and/or modifications shall be attached to the Plan as appendices); provided,
however, that no such subplans and/or modifications shall increase the share limitations contained in Sections 3.1 and 3.3;
and (e) take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary
local governmental regulatory exemptions or approvals or listing requirements of any such foreign securities exchange. Notwithstanding
the foregoing, the Administrator may not take any actions hereunder, and no Awards shall be granted, that would violate Applicable
Law. For purposes of the Plan, all references to foreign laws, rules, regulations or taxes shall be references to the laws, rules,
regulations and taxes of any applicable jurisdiction other than the United States or a political subdivision thereof.

 

4.6 Non-Employee
Director Awards. The Administrator, in its sole discretion, may provide that Awards granted to Non-Employee Directors shall
be granted pursuant to a written nondiscretionary formula established by the Administrator (the “Non-Employee Director
Equity Compensation Policy”), subject to the limitations of the Plan. The Non-Employee Director Equity Compensation Policy
shall set forth the type of Award(s) to be granted to Non-Employee Directors, the number of Shares to be subject to Non-Employee
Director Awards, the conditions on which such Awards shall be granted, become exercisable and/or payable and expire, and such other
terms and conditions as the Administrator shall determine in its sole discretion. The Non-Employee Director Equity Compensation
Policy may be modified by the Administrator from time to time in its sole discretion.

 

    	 	10	 

     

    

4.7 Stand-Alone
and Tandem Awards. Awards granted pursuant to the Plan may, in the sole discretion of the Administrator, be granted either
alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem
with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards.

 

ARTICLE 5.

 

PROVISIONS APPLICABLE TO AWARDS INTENDED
TO QUALIFY AS

PERFORMANCE-BASED COMPENSATION

 

5.1 Purpose.
The Committee, in its sole discretion, may determine at the time an Award is granted or at any time thereafter whether such Award
is intended to qualify as Performance-Based Compensation. If the Committee, in its sole discretion, decides to grant such an Award
to an Eligible Individual that is intended to qualify as Performance-Based Compensation (other than an Option or Stock Appreciation
Right), then the provisions of this Article 5 shall control over any contrary provision contained in the Plan. The Administrator,
in its sole discretion, may grant Awards to other Eligible Individuals that are based on Performance Criteria or Performance Goals
or any such other criteria and goals as the Administrator shall establish, but that do not satisfy the requirements of this Article
5 and that are not intended to qualify as Performance-Based Compensation. Unless otherwise specified by the Committee at the time
of grant, the Performance Criteria with respect to an Award intended to be Performance-Based Compensation payable to a Covered
Employee shall be determined on the basis of Applicable Accounting Standards.

 

5.2 Applicability.
The grant of an Award to an Eligible Individual for a particular Performance Period shall not require the grant of an Award to
such Eligible Individual in any subsequent Performance Period and the grant of an Award to any one Eligible Individual shall not
require the grant of an Award to any other Eligible Individual in such period or in any other period.

 

5.3 Types of Awards.
Notwithstanding anything in the Plan to the contrary, the Committee may grant any Award to an Eligible Individual intended to qualify
as Performance-Based Compensation, including, without limitation, Restricted Stock the restrictions with respect to which lapse
upon the attainment of specified Performance Goals, Restricted Stock Units that vest and become payable upon the attainment of
specified Performance Goals and any Performance Awards described in Article 10 that vest or become exercisable or payable upon
the attainment of one or more specified Performance Goals.

 

5.4 Procedures with
Respect to Performance-Based Awards. To the extent necessary to comply with the requirements of Section 162(m)(4)(C) of the
Code, with respect to any Award granted to one or more Eligible Individuals which is intended to qualify as Performance-Based Compensation,
no later than 90 days following the commencement of any Performance Period or any designated fiscal period or period of service
(or such earlier time as may be required under Section 162(m) of the Code), the Committee shall, in writing, (a) designate one
or more Eligible Individuals, (b) select the Performance Criteria applicable to the Performance Period, (c) establish the Performance
Goals, and amounts of such Awards, as applicable, which may be earned for such Performance Period based on the Performance Criteria,
and (d) specify the relationship between Performance Criteria and the Performance Goals and the amounts of such Awards, as applicable,
to be earned by each Covered Employee for such Performance Period. Following the completion of each Performance Period, the Committee
shall certify in writing whether and the extent to which the applicable Performance Goals have been achieved for such Performance
Period. In determining the amount earned under such Awards, the Committee shall have the right to reduce or eliminate (but not
to increase)

    	 	11	 

     

    

the amount payable at a given level of
performance to take into account additional factors that the Committee may deem relevant, including the assessment of individual
or corporate performance for the Performance Period.

 

5.5 Payment of Performance-Based
Awards. Unless otherwise provided in the applicable Program or Award Agreement and only to the extent otherwise permitted by
Section 162(m) of the Code, as to an Award that is intended to qualify as Performance-Based Compensation, the Holder must be employed
by the Company or an Affiliate throughout the Performance Period. Unless otherwise provided in the applicable Performance Goals,
Program or Award Agreement, a Holder shall be eligible to receive payment pursuant to such Awards for a Performance Period only
if and to the extent the Performance Goals for such period are achieved.

 

5.6 Additional Limitations.
Notwithstanding any other provision of the Plan and except as otherwise determined by the Administrator, any Award which is granted
to an Eligible Individual and is intended to qualify as Performance-Based Compensation shall be subject to any additional limitations
set forth in Section 162(m) of the Code or any regulations or rulings issued thereunder that are requirements for qualification
as Performance-Based Compensation, and the Plan and the applicable Program and Award Agreement shall be deemed amended to the extent
necessary to conform to such requirements.

 

ARTICLE 6.

 

GRANTING OF OPTIONS

 

6.1 Granting of
Options to Eligible Individuals. The Administrator is authorized to grant Options to Eligible Individuals from time to time,
in its sole discretion, on such terms and conditions as it may determine, which shall not be inconsistent with the Plan.

 

6.2 Qualification
of Incentive Stock Options. No Incentive Stock Option shall be granted to any person who is not an Employee of the Company
or any subsidiary corporation (as defined in Section 424(f) of the Code) of the Company. No person who qualifies as a Greater Than
10% Stockholder may be granted an Incentive Stock Option unless such Incentive Stock Option conforms to the applicable provisions
of Section 422 of the Code. Any Incentive Stock Option granted under the Plan may be modified by the Administrator, with the consent
of the Holder, to disqualify such Option from treatment as an “incentive stock option” under Section 422 of the Code.
To the extent that the aggregate Fair Market Value of stock with respect to which “incentive stock options” (within
the meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by
a Holder during any calendar year under the Plan, and all other plans of the Company and any parent or subsidiary corporation thereof
(each as defined in Section 424(e) and 424(f) of the Code, respectively), exceeds $100,000, the Options shall be treated as Non-Qualified
Stock Options to the extent required by Section 422 of the Code. The rule set forth in the immediately preceding sentence shall
be applied by taking Options and other “incentive stock options” into account in the order in which they were granted
and the Fair Market Value of stock shall be determined as of the time the respective options were granted.

 

6.3 Option Exercise
Price. The exercise price per Share subject to each Option shall be set by the Administrator, but shall not be less than 100%
of the Fair Market Value of a Share on the date the Option is granted (or, as to Incentive Stock Options, on the date the Option
is modified, extended or renewed for purposes of Section 424(h) of the Code). In addition, in the case of Incentive Stock Options
granted to a Greater Than 10% Stockholder, such price shall not be less than 110% of the Fair Market Value of a Share on the date
the Option is granted (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code).

    	 	12	 

     

    

 

6.4 Option Term.
The term of each Option (the “Option Term”) shall be set by the Administrator in its sole discretion; provided,
however, that the Option Term shall not be more than ten (10) years from the date the Option is granted, or five (5) years
from the date an Incentive Stock Option is granted to a Greater Than 10% Stockholder. The Administrator shall determine the time
period, including the time period following a Termination of Service, during which the Holder has the right to exercise the vested
Options, which time period may not extend beyond the last day of the Option Term. Except as limited by the requirements of Section
409A or Section 422 of the Code and regulations and rulings thereunder and the first sentence of this Section 6.4, the Administrator
may extend the Option Term of any outstanding Option, and may extend the time period during which vested Options may be exercised,
in connection with any Termination of Service of the Holder, and may amend, subject to Section 14.1, any other term or condition
of such Option relating to such a Termination of Service.

 

6.5 Option Vesting.

 

(a) The period during
which the right to exercise, in whole or in part, an Option vests in the Holder 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. Such vesting
may be based on service with the Company or any Affiliate, any of the Performance Criteria, or any other criteria selected by the
Administrator, and, except as limited by the Plan, at any time after the grant of an Option, the Administrator, in its sole discretion
and subject to whatever terms and conditions it selects, may accelerate the period during which an Option vests.

 

(b) No portion of an
Option which is unexercisable at a Holder’s Termination of Service shall thereafter become exercisable, except as may be
otherwise provided by the Administrator either in the applicable Program, the Award Agreement evidencing the grant of an Option,
or by action of the Administrator following the grant of the Option. Unless otherwise determined by the Administrator in the Award
Agreement or by action of the Administrator following the grant of the Option, the portion of an Option that is unexercisable at
a Holder’s Termination of Service shall automatically expire thirty (30) days following such Termination of Service.

 

6.6 Substitute Awards.
Notwithstanding the foregoing provisions of this Article 6 to the contrary, in the case of an Option that is a Substitute Award,
the price per share of the Shares subject to such Option may be less than the Fair Market Value per share on the date of grant;
provided that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the
Shares subject to the Substitute Award, over (b) the aggregate exercise price thereof does not exceed the excess of: (x) the aggregate
fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value
to be determined by the Administrator) of the shares of the predecessor entity that were subject to the grant assumed or substituted
for by the Company, over (y) the aggregate exercise price of such shares.

 

ARTICLE 7.

 

EXERCISE OF OPTIONS

 

7.1 Partial Exercise.
An exercisable 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 Option, a partial exercise must be with respect to a minimum
number of Shares.

 

    	 	13	 

     

    

7.2 Manner of Exercise.
All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to the Secretary of the
Company, the stock administrator of the Company or such other person or entity designated by the Administrator, or his, her or
its office, as applicable:

 

(a) A written or electronic
notice complying with the applicable rules established by the Administrator stating that the Option, or a portion thereof, is exercised.
The notice shall be signed by the Holder 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 sole discretion, deems necessary or advisable to effect compliance with Applicable Law.
The Administrator, in its sole discretion, may 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 Option shall be exercised pursuant to Section 12.3 by any person or persons other than the Holder, appropriate proof of the
right of such person or persons to exercise the Option, as determined in the sole discretion of the Administrator; and

 

(d) Full payment of the
exercise price and applicable withholding taxes to the stock administrator of the Company for the Shares with respect to which
the Option, or portion thereof, is exercised, in a manner permitted by Sections 12.1 and 12.2.

 

7.3 Notification
Regarding Disposition. The Holder shall give the Company prompt written or electronic notice of any disposition of Shares acquired
by exercise of an Incentive Stock Option which occurs within (a) two years from the date of granting (including the date the Option
is modified, extended or renewed for purposes of Section 424(h) of the Code) such Option to such Holder, or (b) one year after
the transfer of such Shares to such Holder.

 

ARTICLE 8.

 

AWARD OF RESTRICTED STOCK

 

8.1 Award
of Restricted Stock.

 

(a) The Administrator
is authorized to grant Restricted Stock to Eligible Individuals, and shall determine the terms and conditions, including the restrictions
applicable to each award of Restricted Stock, which terms and conditions shall not be inconsistent with the Plan, and may impose
such conditions on the issuance of such Restricted Stock as it deems appropriate.

 

(b) The Administrator
shall establish the purchase price, if any, and form of payment for Restricted Stock; provided, however, that if
a purchase price is charged, such purchase price shall be no less than the par value, if any, of the Shares to be purchased, unless
otherwise permitted by Applicable Law. In all cases, legal consideration shall be required for each issuance of Restricted Stock.

 

8.2 Rights as Stockholders.
Subject to Section 8.4, upon issuance of Restricted Stock, the Holder shall have, unless otherwise provided by the Administrator,
all the rights of a stockholder with respect to said Shares, subject to the restrictions in the applicable Program or in each individual
Award Agreement, including the right to receive all

    	 	14	 

     

    

dividends and other distributions paid
or made with respect to the Shares; provided, however, that, in the sole discretion of the Administrator, any extraordinary
distributions with respect to the Shares shall be subject to the restrictions set forth in Section 8.3. In addition, with respect
to a share of Restricted Stock with performance-based vesting, dividends which are paid to other stockholders prior to vesting
shall only be paid out to the Holder to the extent that the performance-based vesting conditions are subsequently satisfied and
if/when the share of Restricted Stock vests.

 

8.3 Restrictions.
All shares of Restricted Stock (including any shares received by Holders thereof with respect to shares of Restricted Stock as
a result of stock dividends, stock splits or any other form of recapitalization) shall, in the terms of the applicable Program
or in each individual Award Agreement, be subject to such restrictions and vesting requirements as the Administrator shall provide.
Such restrictions may include, without limitation, restrictions concerning voting rights and transferability and such restrictions
may lapse separately or in combination at such times and pursuant to such circumstances or based on such criteria as selected by
the Administrator, including, without limitation, criteria based on the Holder’s duration of employment, directorship or
consultancy with the Company, the Performance Criteria, Company performance, individual performance or other criteria selected
by the Administrator. By action taken after the Restricted Stock is issued, the Administrator may, on such terms and conditions
as it may determine to be appropriate, accelerate the vesting of such Restricted Stock by removing any or all of the restrictions
imposed by the terms of the applicable Program or Award Agreement. Restricted Stock may not be sold or encumbered until all restrictions
are terminated or expire.

 

8.4 Repurchase or
Forfeiture of Restricted Stock. Except as otherwise determined by the Administrator at the time of the grant of the Award or
thereafter, if no price was paid by the Holder for the Restricted Stock, upon a Termination of Service during the applicable restriction
period, the Holder’s rights in unvested Restricted Stock then subject to restrictions shall lapse, and such Restricted Stock
shall be surrendered to the Company and cancelled without consideration. If a price was paid by the Holder for the Restricted Stock,
upon a Termination of Service during the applicable restriction period, the Company shall have the right to repurchase from the
Holder the unvested Restricted Stock then subject to restrictions at a cash price per share equal to the price paid by the Holder
for such Restricted Stock or such other amount as may be specified in the applicable Program or Award Agreement. Notwithstanding
the foregoing, the Administrator, in its sole discretion, may provide that upon certain events, including a Change in Control,
the Holder’s death, retirement or disability or any other specified Termination of Service or any other event, the Holder’s
rights in unvested Restricted Stock shall not lapse, such Restricted Stock shall vest and, if applicable, the Company shall not
have a right of repurchase.

 

8.5 Certificates
for Restricted Stock. Restricted Stock granted pursuant to the Plan may be evidenced in such manner as the Administrator shall
determine. Certificates or book entries evidencing shares of Restricted Stock shall include an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Restricted Stock. The Company, in its sole discretion, may (a) retain
physical possession of any stock certificate evidencing shares of Restricted Stock until the restrictions thereon shall have lapsed
and/or (b) require that the stock certificates evidencing shares of Restricted Stock be held in custody by a designated escrow
agent (which may but need not be the Company) until the restrictions thereon shall have lapsed, and that the Holder deliver a stock
power, endorsed in blank, relating to such Restricted Stock.

 

8.6 Section 83(b)
Election. If a Holder makes an election under Section 83(b) of the Code to be taxed with respect to the Restricted Stock as
of the date of transfer of the Restricted Stock rather than as of the date or dates upon which the Holder would otherwise be taxable
under Section 83(a) of the Code, the Holder shall be required to deliver

    	 	15	 

     

    

a copy of such election to the Company
promptly after filing such election with the Internal Revenue Service along with proof of the timely filing thereof with the Internal
Revenue Service.

 

ARTICLE 9.

 

AWARD OF RESTRICTED STOCK UNITS

 

9.1 Grant of Restricted
Stock Units. The Administrator is authorized to grant Awards of Restricted Stock Units to any Eligible Individual selected
by the Administrator in such amounts and subject to such terms and conditions as determined by the Administrator.

 

9.2 Term. Except
as otherwise provided herein, the term of a Restricted Stock Unit award shall be set by the Administrator in its sole discretion.

 

9.3 Purchase Price.
The Administrator shall specify the purchase price, if any, to be paid by the Holder to the Company with respect to any Restricted
Stock Unit award; provided, however, that value of the consideration shall not be less than the par value of a Share,
unless otherwise permitted by Applicable Law.

 

9.4 Vesting of Restricted
Stock Units. At the time of grant, the Administrator shall specify the date or dates on which the Restricted Stock Units shall
become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate, including, without
limitation, vesting based upon the Holder’s duration of service to the Company or any Affiliate, one or more Performance
Criteria, Company performance, individual performance or other specific criteria, in each case on a specified date or dates or
over any period or periods, as determined by the Administrator.

 

9.5 Maturity and
Payment. At the time of grant, the Administrator shall specify the maturity date applicable to each grant of Restricted Stock
Units, which shall be no earlier than the vesting date or dates of the Award and may be determined at the election of the Holder
(if permitted by the applicable Award Agreement); provided that, except as otherwise determined by the Administrator, set
forth in any applicable Award Agreement, and subject to compliance with Section 409A of the Code, in no event shall the maturity
date relating to each Restricted Stock Unit occur following the later of (a) the 15th day of the third month following
the end of calendar year in which the applicable portion of the Restricted Stock Unit vests; or (b) the 15th day of
the third month following the end of the Company’s fiscal year in which the applicable portion of the Restricted Stock Unit
vests. On the maturity date, the Company shall, subject to Section 12.4(e), transfer to the Holder one unrestricted, fully transferable
Share for each Restricted Stock Unit scheduled to be paid out on such date and not previously forfeited, or in the sole discretion
of the Administrator, an amount in cash equal to the Fair Market Value of such Shares on the maturity date or a combination of
cash and Common Stock as determined by the Administrator.

 

9.6 Payment upon
Termination of Service. An Award of Restricted Stock Units shall only be payable while the Holder is an Employee, a Consultant
or a member of the Board, as applicable; provided, however, that the Administrator, in its sole discretion, may provide
(in an Award Agreement or otherwise) that a Restricted Stock Unit award may be paid subsequent to a Termination of Service in certain
events, including a Change in Control, the Holder’s death, retirement or disability or any other specified Termination of
Service.

 

9.7 No Rights as
a Stockholder. Unless otherwise determined by the Administrator, a Holder of Restricted Stock Units shall possess no incidents
of ownership with respect to the Shares represented by such Restricted Stock

    	 	16	 

     

    

Units, unless and until such Shares are
transferred to the Holder pursuant to the terms of this Plan and the Award Agreement.

 

ARTICLE 10.

 

AWARD OF PERFORMANCE AWARDS, DIVIDEND
EQUIVALENTS, STOCK

PAYMENTS, DEFERRED STOCK UNITS

 

10.1 Performance
Awards.

 

(a) The Administrator
is authorized to grant Performance Awards, including Awards of Performance Stock Units, to any Eligible Individual and to determine
whether such Performance Awards shall be Performance-Based Compensation. The value of Performance Awards, including Performance
Stock Units, may be linked to any one or more of the Performance Criteria or other specific criteria determined by the Administrator,
in each case on a specified date or dates or over any period or periods and in such amounts as may be determined by the Administrator.
Performance Awards, including Performance Stock Unit awards may be paid in cash, Shares, or a combination of cash and Shares, as
determined by the Administrator.

 

(b) Without limiting
Section 10.1(a), the Administrator may grant Performance Awards to any Eligible Individual in the form of a cash bonus payable
upon the attainment of objective Performance Goals, or such other criteria, whether or not objective, which are established by
the Administrator, in each case on a specified date or dates or over any period or periods determined by the Administrator. Any
such bonuses paid to a Holder which are intended to be Performance-Based Compensation shall be based upon objectively determinable
bonus formulas established in accordance with the provisions of Article 5.

 

10.2 Dividend Equivalents.

 

(a) Dividend Equivalents
may be granted by the Administrator based on dividends declared on the Common Stock, to be credited as of dividend payment dates
with respect to dividends with record dates that occur during the period between the date an Award is granted to a Holder and the
date such Award vests, is exercised, is distributed or expires, as determined by the Administrator. Such Dividend Equivalents shall
be converted to cash or additional Shares by such formula and at such time and subject to such restrictions and limitations as
may be determined by the Administrator. In addition, Dividend Equivalents with respect to an Award with performance-based vesting
that are based on dividends paid to other stockholders prior to the vesting of such Award shall only be paid out to the Holder
to the extent that the performance-based vesting conditions are subsequently satisfied and if/when the Award vests.

 

 (b) Notwithstanding
the foregoing, no Dividend Equivalents shall be payable with respect to Options or Stock Appreciation Rights.

 

10.3 Stock Payments.
The Administrator is authorized to make Stock Payments to any Eligible Individual. The number or value of Shares of any Stock Payment
shall be determined by the Administrator and may be based upon one or more Performance Criteria or any other specific criteria,
including service to the Company or any Affiliate, determined by the Administrator. Shares underlying a Stock Payment which is
subject to a vesting schedule or other conditions or criteria set by the Administrator shall not be issued until those conditions
have been satisfied. Unless otherwise provided by the Administrator, a Holder of a Stock Payment shall have no rights as a Company

    	 	17	 

     

    

stockholder with respect to such Stock
Payment until such time as the Stock Payment has vested and the Shares underlying the Award have been issued to the Holder. Stock
Payments may, but are not required to, be made in lieu of base salary, bonus, fees or other cash compensation otherwise payable
to such Eligible Individual.

 

10.4 Deferred Stock
Units. The Administrator is authorized to grant Deferred Stock Units to any Eligible Individual. The number of Deferred Stock
Units shall be determined by the Administrator and may (but is not required to) be based on one or more Performance Criteria or
other specific criteria, including service to the Company or any Affiliate, as the Administrator determines, in each case on a
specified date or dates or over any period or periods determined by the Administrator. Each Deferred Stock Unit shall entitle the
Holder thereof to receive one Share on the date the Deferred Stock Unit becomes vested or upon a specified settlement date thereafter
(which settlement date may (but is not required to) be the date of the Holder’s Termination of Service). Shares underlying
a Deferred Stock Unit award which is subject to a vesting schedule or other conditions or criteria set by the Administrator shall
not be issued until on or following the date that those conditions and criteria have been satisfied. Unless otherwise provided
by the Administrator, a Holder of Deferred Stock Units shall have no rights as a Company stockholder with respect to such Deferred
Stock Units until such time as the Award has vested and any other applicable conditions and/or criteria have been satisfied and
the Shares underlying the Award have been issued to the Holder.

 

10.5 Term. The
term of a Performance Award, Dividend Equivalent award, Stock Payment award, and/or Deferred Stock Unit award shall be established
by the Administrator in its sole discretion.

 

10.6 Purchase Price.
The Administrator may establish the purchase price of a Performance Award, Shares distributed as a Stock Payment award, Shares
distributed pursuant to a Deferred Stock Unit award; provided, however, that value of the consideration shall not
be less than the par value of a Share, unless otherwise permitted by Applicable Law.

 

10.7 Termination
of Service. A Performance Award, Stock Payment award, Dividend Equivalent award, and/or Deferred Stock Unit award is distributable
only while the Holder is an Employee, Director or Consultant, as applicable. The Administrator, however, in its sole discretion,
may provide that the Performance Award, Dividend Equivalent award, Stock Payment award, and/or Deferred Stock Unit award may be
distributed subsequent to a Termination of Service in certain events, including a Change in Control, the Holder’s death,
retirement or disability or any other specified Termination of Service.

 

ARTICLE 11.

 

AWARD OF STOCK APPRECIATION RIGHTS

 

11.1 Grant of Stock
Appreciation Rights.

 

(a) The Administrator
is authorized to grant Stock Appreciation Rights to Eligible Individuals from time to time, in its sole discretion, on such terms
and conditions as it may determine, which shall not be inconsistent with the Plan.

 

(b) A Stock Appreciation
Right shall entitle the Holder (or other person entitled to exercise the Stock Appreciation Right pursuant to the Plan) to exercise
all or a specified portion of the Stock Appreciation Right (to the extent then exercisable pursuant to its terms) and to receive
from the Company an amount determined by multiplying the difference obtained by subtracting the exercise price per share of the
Stock Appreciation Right from the Fair

    	 	18	 

     

    

Market Value on the date of exercise of
the Stock Appreciation Right by the number of Shares with respect to which the Stock Appreciation Right shall have been exercised,
subject to any limitations the Administrator may impose. Except as described in (c) below, the exercise price per Share subject
to each Stock Appreciation Right shall be set by the Administrator, but shall not be less than 100% of the Fair Market Value on
the date the Stock Appreciation Right is granted.

 

(c) Notwithstanding the
foregoing provisions of Section 11.1(b) to the contrary, in the case of a Stock Appreciation Right that is a Substitute Award,
the price per share of the Shares subject to such Stock Appreciation Right may be less than 100% of the Fair Market Value per share
on the date of grant; provided that the excess of: (i) the aggregate Fair Market Value (as of the date such Substitute Award
is granted) of the Shares subject to the Substitute Award, over (ii) the aggregate exercise price thereof does not exceed the excess
of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award,
such fair market value to be determined by the Administrator) of the shares of the predecessor entity that were subject to the
grant assumed or substituted for by the Company, over (y) the aggregate exercise price of such shares.

 

11.2 Stock Appreciation
Right Vesting.

 

(a) The period during
which the right to exercise, in whole or in part, a Stock Appreciation Right vests in the Holder shall be set by the Administrator
and the Administrator may determine that a Stock Appreciation Right may not be exercised in whole or in part for a specified period
after it is granted. Such vesting may be based on service with the Company or any Affiliate, any of the Performance Criteria, or
any other criteria selected by the Administrator. Except as limited by the Plan, at any time after grant of a Stock Appreciation
Right, the Administrator, in its sole discretion and subject to whatever terms and conditions it selects, may accelerate the period
during which a Stock Appreciation Right vests.

 

(b) No portion of a Stock
Appreciation Right which is unexercisable at a Holder’s Termination of Service shall thereafter become exercisable, except
as may be otherwise provided by the Administrator in the applicable Program, the Award Agreement evidencing the grant of a Stock
Appreciation Right, or by action of the Administrator following the grant of the Stock Appreciation Right.

 

11.3 Manner of Exercise.
All or a portion of an exercisable Stock Appreciation Right shall be deemed exercised upon delivery of all of the following to
the Secretary of the Company, the stock administrator of the Company, or such other person or entity designated by the Administrator,
or his, her or its office, as applicable:

 

(a) A written or electronic
notice complying with the applicable rules established by the Administrator stating that the Stock Appreciation Right, or a portion
thereof, is exercised. The notice shall be signed by the Holder or other person then entitled to exercise the Stock Appreciation
Right or such portion of the Stock Appreciation Right;

 

(b) Such representations
and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance with Applicable Law.
The Administrator, in its sole discretion, may 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 Stock Appreciation Right shall be exercised pursuant to this Section 11.3 by any person or persons other than the Holder, appropriate
proof of the right of such person or persons to exercise the Stock Appreciation Right, as determined in the sole discretion of
the Administrator; and

    	 	19	 

     

    

 

(d) Full payment of the
exercise price and applicable withholding taxes to the stock administrator of the Company for the Shares with respect to which
the Stock Appreciation Right, or portion thereof, is exercised, in a manner permitted by Sections 12.1 and 12.2.

 

11.4 Stock Appreciation
Right Term. The term of each Stock Appreciation Right (the “Stock Appreciation Right Term”) shall be set
by the Administrator in its sole discretion; provided, however, that the Stock Appreciation Right Term shall not
be more than ten (10) years from the date the Stock Appreciation Right is granted. The Administrator shall determine the time period,
including the time period following a Termination of Service, during which the Holder has the right to exercise the vested Stock
Appreciation Rights, which time period may not extend beyond the last day of the Stock Appreciation Right Term applicable to such
Stock Appreciation Right. Except as limited by the requirements of Section 409A of the Code and regulations and rulings thereunder
and the first sentence of this Section 11.4, the Administrator may extend the Stock Appreciation Right Term of any outstanding
Stock Appreciation Right, and may extend the time period during which vested Stock Appreciation Rights may be exercised, in connection
with any Termination of Service of the Holder, and may amend, subject to Section 14.1, any other term or condition of such Stock
Appreciation Right relating to such a Termination of Service.

 

11.5 Payment.
Payment of the amounts payable with respect to Stock Appreciation Rights pursuant to this Article 11 shall be in cash, Shares (based
on its Fair Market Value as of the date the Stock Appreciation Right is exercised), or a combination of both, as determined by
the Administrator.

 

ARTICLE 12.

 

ADDITIONAL TERMS OF AWARDS

 

12.1 Payment.
The Administrator shall determine the methods by which payments by any Holder with respect to any Awards granted under the Plan
shall be made, including, without limitation: (a) cash or check, (b) Shares (including, in the case of payment of the exercise
price of an Award, Shares issuable pursuant to the exercise of the Award) or Shares held for such period of time as may be required
by the Administrator in order to avoid adverse accounting consequences, in each case, having a Fair Market Value on the date of
delivery equal to the aggregate payments required, (c) delivery of a written or electronic notice that the Holder has placed a
market sell order with a broker acceptable to the Company with respect to Shares then issuable upon exercise or vesting of an Award,
and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction
of the aggregate payments required; provided that payment of such proceeds is then made to the Company upon settlement of
such sale, or (d) other form of legal consideration acceptable to the Administrator in its sole discretion. The Administrator shall
also determine the methods by which Shares shall be delivered or deemed to be delivered to Holders. Notwithstanding any other provision
of the Plan to the contrary, no Holder who is a Director or an “executive officer” of the Company within the meaning
of Section 13(k) of the Exchange Act shall be permitted to make payment with respect to any Awards granted under the Plan, or continue
any extension of credit with respect to such payment, with a loan from the Company or a loan arranged by the Company in violation
of Section 13(k) of the Exchange Act.

 

12.2 Tax Withholding.
The Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Holder to remit to the
Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Holder’s FICA, employment
tax or other social security contribution obligation) required by law to be withheld with respect to any taxable event concerning
a Holder arising as a result of the Plan. The Administrator, in its sole discretion and in satisfaction of the foregoing requirement
or in satisfaction of any additional tax

    	 	20	 

     

    

withholding, cause the Company to, or allow
a Holder to elect to have the Company withhold Shares otherwise issuable under an Award (or allow the surrender of Shares). For
Awards outstanding as of the Effective Date that are intended to qualify as Performance-Based Compensation, the number of Shares
which may be so withheld or surrendered shall be limited to the number of Shares which have a fair market value on the date of
withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for
federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income.
For all other Awards (including all other Awards outstanding as of the Effective Date or granted after the Effective Date), the
number of Shares which may be so withheld or surrendered shall be limited to the number of Shares which have a fair market value
on the date of withholding or repurchase no greater than the aggregate amount of such liabilities based on the maximum individual
statutory withholding rates for the applicable jurisdictions. The Administrator shall determine the fair market value of the Shares,
consistent with applicable provisions of the Code, for tax withholding obligations due in connection with a broker-assisted cashless
Option or Stock Appreciation Right exercise involving the sale of Shares to pay the Option or Stock Appreciation Right exercise
price or any tax withholding obligation.

 

12.3 Transferability
of Awards.

 

(a) Except as otherwise
provided in Section 12.3(b) and 12.3(c):

 

(i) No Award under
the Plan may be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution
or, subject to the consent of the Administrator, pursuant to a DRO, unless and until such Award has been exercised, or the Shares
underlying such Award have been issued, and all restrictions applicable to such Shares have lapsed;

 

(ii) No Award or interest
or right therein shall be liable for the debts, contracts or engagements of the Holder or the Holder’s successors in interest
or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, 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 Section 12.3(a)(i); and

 

(iii) During the lifetime
of the Holder, only the Holder may exercise an Award (or any portion thereof) granted to such Holder under the Plan, unless it
has been disposed of pursuant to a DRO; after the death of the Holder, any exercisable portion of an Award may, prior to the time
when such portion becomes unexercisable under the Plan or the applicable Program or Award Agreement, be exercised by the Holder’s
personal representative or by any person empowered to do so under the deceased Holder’s will or under the then-applicable
laws of descent and distribution.

 

(b) Notwithstanding Section
12.3(a), the Administrator, in its sole discretion, may determine to permit a Holder to transfer an Award other than an Incentive
Stock Option to any one or more Permitted Transferees, subject to the following terms and conditions: (i) an Award transferred
to a Permitted Transferee shall not be assignable or transferable by the Permitted Transferee other than by will or the laws of
descent and distribution or pursuant to a DRO; (ii) an Award transferred to a Permitted Transferee shall continue to be subject
to all the terms and conditions of the Award as applicable to the original Holder (other than the ability to further transfer the
Award); (iii) the Holder and the Permitted Transferee shall execute any and all documents requested by the Administrator, including,
without limitation documents to (A) confirm the status of the transferee as a Permitted Transferee, (B)

    	 	21	 

     

    

satisfy any requirements for an exemption
for the transfer under Applicable Law and (C) evidence the transfer; and (iv) any transfer of an Award to a Permitted Transferee
shall be without consideration, except as required by Applicable Law.

 

(c) Notwithstanding Section
12.3(a), a Holder may, in the manner determined by the Administrator, designate a beneficiary to exercise the rights of the Holder
and to receive any distribution with respect to any Award upon the Holder’s death. A beneficiary, legal guardian, legal representative,
or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Program or
Award Agreement applicable to the Holder, except to the extent the Plan, the Program and the Award Agreement otherwise provide,
and to any additional restrictions deemed necessary or appropriate by the Administrator. If the Holder is married or a domestic
partner in a domestic partnership qualified under Applicable Law and resides in a community property state, a designation of a
person other than the Holder’s spouse or domestic partner, as applicable, as the Holder’s beneficiary with respect
to more than 50% of the Holder’s interest in the Award shall not be effective without the prior written or electronic consent
of the Holder’s spouse or domestic partner. If no beneficiary has been designated or survives the Holder, payment shall be
made to the person entitled thereto pursuant to the Holder’s will or the laws of descent and distribution. Subject to the
foregoing, a beneficiary designation may be changed or revoked by a Holder at any time; provided that the change or revocation
is filed with the Administrator prior to the Holder’s death.

 

12.4 Conditions
to Issuance of Shares.

 

(a) Notwithstanding anything
herein to the contrary, the Company shall not be required to issue or deliver any certificates or make any book entries evidencing
Shares pursuant to the exercise of any Award, unless and until the Board or the Committee has determined, with advice of counsel,
that the issuance of such Shares is in compliance with Applicable Law and the Shares are covered by an effective registration statement
or applicable exemption from registration. In addition to the terms and conditions provided herein, the Board or the Committee
may require that a Holder make such reasonable covenants, agreements and representations as the Board or the Committee, in its
sole discretion, deems advisable in order to comply with Applicable Law.

 

(b) All share certificates
delivered pursuant to the Plan and all Shares issued pursuant to book entry procedures are subject to any stop-transfer orders
and other restrictions as the Administrator deems necessary or advisable to comply with Applicable Law. The Administrator may place
legends on any share certificate or book entry to reference restrictions applicable to the Shares.

 

(c) The Administrator
shall have the right to require any Holder to comply with any timing or other restrictions with respect to the settlement, distribution
or exercise of any Award, including a window-period limitation, as may be imposed in the sole discretion of the Administrator.

 

(d) No fractional Shares
shall be issued and the Administrator, in its sole discretion, shall determine whether cash shall be given in lieu of fractional
Shares or whether such fractional Shares shall be eliminated by rounding down.

 

(e) Notwithstanding any
other provision of the Plan, unless otherwise determined by the Administrator or required by Applicable Law, the Company shall
not deliver to any Holder certificates evidencing Shares issued in connection with any Award and instead such Shares shall be recorded
in the books of the Company (or, as applicable, its transfer agent or stock plan administrator).

 

    	 	22	 

     

    

12.5 Forfeiture
and Claw-Back Provisions. Pursuant to its general authority to determine the terms and conditions applicable to Awards under
the Plan, the Administrator shall have the right to provide, in an Award Agreement or otherwise, or to require a Holder to agree
by separate written or electronic instrument, that:

 

(a) (i) Any proceeds,
gains or other economic benefit actually or constructively received by the Holder upon any receipt or exercise of the Award, or
upon the receipt or resale of any Shares underlying the Award, shall be paid to the Company, and (ii) the Award shall terminate
and any unexercised portion of the Award (whether or not vested) shall be forfeited, if (x) a Termination of Service occurs prior
to a specified date, or within a specified time period following receipt or exercise of the Award, or (y) the Holder at any time,
or during a specified time period, engages in any activity in competition with the Company, or which is inimical, contrary or harmful
to the interests of the Company, as further defined by the Administrator or (z) the Holder incurs a Termination of Service for
“cause” (as such term is defined in the sole discretion of the Administrator, or as set forth in a written agreement
relating to such Award between the Company and the Holder); and

 

(b) All Awards (including
any proceeds, gains or other economic benefit actually or constructively received by the Holder upon any receipt or exercise of
any Award or upon the receipt or resale of any Shares underlying the Award) shall be subject to the provisions of any claw-back
policy implemented by the Company, including, without limitation, any claw-back policy adopted to comply with the requirements
of Applicable Law, including without limitation the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or
regulations promulgated thereunder, to the extent set forth in such claw-back policy and/or in the applicable Award Agreement.

 

12.6 Prohibition
on Repricing. Subject to Section 14.2, the Administrator shall not, without the approval of the stockholders of the Company,
(i) authorize the amendment of any outstanding Option or Stock Appreciation Right to reduce its price per share, (ii) cancel any
Option or Stock Appreciation Right in exchange for cash or another Award when the Option or Stock Appreciation Right price per
share exceeds the Fair Market Value of the underlying Shares, or (iii) take any other action with respect to an Option or Stock
Appreciation Right that would be treated as a repricing under the rules and regulations of the principal United States national
securities exchange on which the Shares are traded.

 

12.7 Data Privacy.
As a condition for receiving any Award, each Holder explicitly and unambiguously consents to the collection, use and transfer,
in electronic or other form, of personal data as described in this Section 12.7 by and among the Company and its Subsidiaries and
Affiliates exclusively for implementing, administering and managing the Holder’s participation in the Plan. The Company and
its Subsidiaries and Affiliates may hold certain personal information about a Holder, including the Holder’s name, address
and telephone number; birthdate; social security, insurance number or other identification number; salary; nationality; job title(s);
any Shares held in the Company or its Subsidiaries and Affiliates; and Award details, to implement, manage and administer the Plan
and Awards (the “Data”). The Company and its Subsidiaries and Affiliates may transfer the Data amongst themselves
as necessary to implement, administer and manage a Holder’s participation in the Plan, and the Company and its Subsidiaries
and Affiliates may transfer the Data to third parties assisting the Company with Plan implementation, administration and management.
These recipients may be located in the Holder’s country, or elsewhere, and the Holder’s country may have different
data privacy laws and protections than the recipients’ country. By accepting an Award, each Holder authorizes such recipients
to receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the Holder’s
participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the Holder
may elect to deposit any Shares. The Data related to a Holder will be held only as long as necessary to implement, administer,
and manage the Holder’s

    	 	23	 

     

    

participation in the Plan. A Holder may,
at any time, view the Data that the Company holds regarding such Holder, request additional information about the storage and processing
of the Data regarding such Holder, recommend any necessary corrections to the Data regarding the Holder or refuse or withdraw the
consents in this Section 12.7 in writing, without cost, by contacting the local human resources representative. The Company may
cancel Holder’s ability to participate in the Plan and, in the Administrator’s sole discretion, the Holder may forfeit
any outstanding Awards if the Holder refuses or withdraws the consents in this Section 12.7. For more information on the consequences
of refusing or withdrawing consent, Holders may contact their local human resources representative.

 

ARTICLE 13.

 

ADMINISTRATION

 

13.1 Administrator.
The Committee (or another committee or a subcommittee of the Board assuming the functions of the Committee under the Plan) shall
administer the Plan (except as otherwise permitted herein). To the extent necessary to comply with Rule 16b-3 of the Exchange Act,
and with respect to Awards that are intended to be Performance-Based Compensation, including Options and Stock Appreciation Rights,
then the Committee (or another committee or subcommittee of the Board assuming the functions of the Committee under the Plan) shall
take all action with respect to such Awards, and the individuals taking such action shall consist solely of two or more Non-Employee
Directors appointed by and holding office at the pleasure of the Board, each of whom is intended to qualify as both a “non-employee
director” as defined by Rule 16b-3 of the Exchange Act or any successor rule and an “outside director” for purposes
of Section 162(m) of the Code. Additionally, to the extent required by Applicable Law, each of the individuals constituting the
Committee (or another committee or subcommittee of the Board assuming the functions of the Committee under the Plan) shall be an
“independent director” under the rules of any securities exchange or automated quotation system on which the Shares
are listed, quoted or traded. Notwithstanding the foregoing, any action taken by the Committee shall be valid and effective, whether
or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership
set forth in this Section 13.1 or otherwise provided in any charter of the Committee. Except as may otherwise be provided in any
charter of the Committee, appointment of Committee members shall be effective upon acceptance of appointment. Committee members
may resign at any time by delivering written or electronic notice to the Board. Vacancies in the Committee may only be filled by
the Board. Notwithstanding the foregoing, (a) the full Board, acting by a majority of its members in office, shall conduct the
general administration of the Plan with respect to Awards granted to Non-Employee Directors and, with respect to such Awards, the
terms “Administrator” and “Committee” as used in the Plan shall be deemed to refer to the Board and (b)
the Board or Committee may delegate its authority hereunder to the extent permitted by Section 13.6.

 

13.2 Duties and
Powers of Committee. It shall be the duty of the Committee to conduct the general administration of the Plan in accordance
with its provisions. The Committee shall have the power to interpret the Plan, the Program and the Award Agreement, and to adopt
such rules for the administration, interpretation and application of the Plan as are not inconsistent therewith, to interpret,
amend or revoke any such rules and to amend any Program or Award Agreement; provided that the rights or obligations of the
Holder of the Award that is the subject of any such Program or Award Agreement are not affected adversely by such amendment, unless
the consent of the Holder is obtained or such amendment is otherwise permitted under Section 12.5 or Section 14.10. Any such grant
or award under the Plan need not be the same with respect to each Holder. Any such interpretations and rules with respect to Incentive
Stock Options shall be consistent with the provisions of Section 422 of the Code. In its sole discretion, the Board may at any
time and from time to time exercise any and all rights and duties of the Committee under the Plan except with respect to matters
which under Rule 16b-3 under the Exchange Act or any successor rule, or Section

    	 	24	 

     

    

162(m) of the Code, or any regulations
or rules issued thereunder, or the rules of any securities exchange or automated quotation system on which the Shares are listed,
quoted or traded are required to be determined in the sole discretion of the Committee.

 

13.3 Action by the
Committee. Unless otherwise established by the Board or in any charter of the Committee, a majority of the Committee shall
constitute a quorum and the acts of a majority of the members present at any meeting at which a quorum is present, and acts approved
in writing by all members of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the
Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer
or other employee of the Company or any Affiliate, the Company’s independent certified public accountants, or any executive
compensation consultant or other professional retained by the Company to assist in the administration of the Plan.

 

13.4 Authority of
Administrator. Subject to the Company’s Bylaws, the Committee’s Charter and any specific designation in the Plan,
the Administrator has the exclusive power, authority and sole discretion to:

 

(a) Designate Eligible
Individuals to receive Awards;

 

(b) Determine the type
or types of Awards to be granted to each Eligible Individual;

 

(c) Determine the number
of Awards to be granted and the number of Shares to which an Award will relate;

 

(d) Determine the terms
and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grant price, purchase
price, any Performance Criteria, any restrictions or limitations on the Award, any schedule for vesting, lapse of forfeiture restrictions
or restrictions on the exercisability of an Award, and accelerations or waivers thereof, and any provisions related to non-competition
and recapture of gain on an Award, based in each case on such considerations as the Administrator in its sole discretion determines;

 

(e) Determine whether,
to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price of an Award may be paid in
cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 

(f) Prescribe the form
of each Award Agreement, which need not be identical for each Holder;

 

(g) Decide all other
matters that must be determined in connection with an Award;

 

(h) Establish, adopt,
or revise any rules and regulations as it may deem necessary or advisable to administer the Plan;

 

(i) Interpret the terms
of, and any matter arising pursuant to, the Plan, any Program or any Award Agreement;

 

(j) Make all other decisions
and determinations that may be required pursuant to the Plan or as the Administrator deems necessary or advisable to administer
the Plan; and

 

    	 	25	 

     

    

(k) Accelerate wholly
or partially the vesting or lapse of restrictions of any Award or portion thereof at any time after the grant of an Award, subject
to whatever terms and conditions it selects and Section 14.2.

 

13.5 Decisions Binding.
The Administrator’s interpretation of the Plan, any Awards granted pursuant to the Plan, any Program, any Award Agreement
and all decisions and determinations by the Administrator with respect to the Plan are final, binding and conclusive on all parties.

 

13.6 Delegation
of Authority. To the extent permitted by Applicable Law, the Board or Committee may from time to time delegate to a committee
of one or more members of the Board or one or more officers of the Company the authority to grant or amend Awards or to take other
administrative actions pursuant to this Article 13; provided, however, that in no event shall an officer
of the Company be delegated the authority to grant awards to, or amend awards held by, the following individuals: (a) individuals
who are subject to Section 16 of the Exchange Act, (b) Covered Employees or (c) officers of the Company (or Directors) to whom
authority to grant or amend Awards has been delegated hereunder; provided, further, that any delegation of administrative
authority shall only be permitted to the extent it is permissible under Section 162(m) of the Code and other Applicable Law. Any
delegation hereunder shall be subject to the restrictions and limits that the Board or Committee specifies at the time of such
delegation, and the Board may at any time rescind the authority so delegated or appoint a new delegatee. At all times, the delegatee
appointed under this Section 13.6 shall serve in such capacity at the pleasure of the Board and the Committee, as applicable, and
the Board or the Committee may abolish any committee at any time and/or re-vest in itself any previously delegated authority.

 

ARTICLE 14.

 

MISCELLANEOUS PROVISIONS

 

14.1 Amendment,
Suspension or Termination of the Plan. Except as otherwise provided in this Section 14.1, the Plan may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time to time by the Board or the Committee. However,
without approval of the Company’s stockholders given within twelve (12) months before or after the action by the Administrator,
no action of the Administrator may, except as provided in Section 14.2, (a) increase the limits imposed in Section 3.1 on the maximum
number of Shares which may be issued under the Plan or increase the Director Limit, (b) reduce the price per share of any outstanding
Option or Stock Appreciation Right granted under the Plan or take any action prohibited under Section 12.6, or (c) cancel any Option
or Stock Appreciation Right in exchange for cash or another Award when the Option or Stock Appreciation Right price per share exceeds
the Fair Market Value of the underlying Shares. Except as provided in Section 12.5 and Section 14.10, no amendment, suspension
or termination of the Plan shall, without the consent of the Holder, impair any rights or obligations under any Award theretofore
granted or awarded, unless the Award itself otherwise expressly so provides. No Awards may be granted or awarded during any period
of suspension or after termination of the Plan, and notwithstanding anything herein to the contrary, in no event may any Award
be granted under the Plan after the tenth (10th) anniversary of the Effective Date (the “Expiration Date”).
Any Awards that are outstanding on the Expiration Date shall remain in force according to the terms of the Plan and the applicable
Award Agreement.

 

14.2 Changes in
Common Stock or Assets of the Company, Acquisition or Liquidation of the Company and Other Corporate Events.

 

(a) In the event of any
stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal
cash dividends) of Company assets to stockholders, or any other

    	 	26	 

     

    

change affecting the Shares of the Company’s
stock or the share price of the Company’s stock other than an Equity Restructuring, the Administrator may make equitable
adjustments, if any, to reflect such change with respect to: (i) the aggregate number and kind of Shares that may be issued under
the Plan (including, but not limited to, adjustments of the limitations in Sections 3.1 and 3.3 on the maximum number and kind
of Shares which may be issued under the Plan, and adjustments of the Award Limit or Director Limit); (ii) the number and kind of
Shares (or other securities or property) subject to outstanding Awards; (iii) the number and kind of Shares (or other securities
or property) for which automatic grants are subsequently to be made to new and continuing Non-Employee Directors pursuant to Section
4.6; (iv) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets
or criteria with respect thereto); and (v) the grant or exercise price per share for any outstanding Awards under the Plan. Any
adjustment affecting an Award intended as Performance-Based Compensation shall be made consistent with the requirements of Section
162(m) of the Code.

 

(b) In the event of any
transaction or event described in Section 14.2(a) 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 Law or accounting
principles, the Administrator, in its sole discretion, and on such terms and conditions as it deems appropriate, either by the
terms of the Award or by action taken prior to the occurrence of such transaction or event and either automatically or upon the
Holder’s request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines
that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan or with respect to any Award under the Plan, to facilitate such transactions or events or to give
effect to such changes in laws, regulations or principles:

 

(i) To provide for
either (A) termination of any such Award in exchange for an amount of cash, if any, equal to the amount that would have been attained
upon the exercise of such Award or realization of the Holder’s rights (and, for the avoidance of doubt, if as of the date
of the occurrence of the transaction or event described in this Section 14.2 the Administrator determines in good faith that no
amount would have been attained upon the exercise of such Award or realization of the Holder’s rights, then such Award may
be terminated by the Company without payment) or (B) the replacement of such Award with other rights or property selected by the
Administrator, in its sole discretion, having an aggregate value not exceeding the amount that could have been attained upon the
exercise of such Award or realization of the Holder’s rights had such Award been currently exercisable or payable or fully
vested;

 

(ii) To provide that
such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for
by similar options, rights or 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 and prices;

 

(iii) To make adjustments
in the number and type of Shares of the Company’s stock (or other securities or property) subject to outstanding Awards,
and in the number and kind of outstanding Restricted Stock and/or in the terms and conditions of (including the grant or exercise
price), and the criteria included in, outstanding Awards and Awards which may be granted in the future;

 

(iv) To provide that
such Award shall be exercisable or payable or fully vested with respect to all Shares covered thereby, notwithstanding anything
to the contrary in the Plan or the applicable Program or Award Agreement; and

 

    	 	27	 

     

    

(v) To provide that
the Award cannot vest, be exercised or become payable after such event.

 

(c) In connection with
the occurrence of any Equity Restructuring, and notwithstanding anything to the contrary in Section 14.2(a) and 14.2(b):

 

(i) The number and
type of securities subject to each outstanding Award and the exercise price or grant price thereof, if applicable, shall be equitably
adjusted; and/or

 

(ii) The Administrator
shall make such equitable adjustments, if any, as the Administrator, in its sole discretion, may deem appropriate to reflect such
Equity Restructuring with respect to the aggregate number and kind of Shares that may be issued under the Plan (including, but
not limited to, adjustments of the limitations in Sections 3.1 and 3.3 on the maximum number and kind of Shares which may be issued
under the Plan, and adjustments of the Award Limit or Director Limit). The adjustments provided under this Section 14.2(c) shall
be nondiscretionary and shall be final and binding on the affected Holder and the Company.

 

(d) Notwithstanding any
other provision of the Plan, in the event of a Change in Control, each outstanding Award shall continue in effect or be assumed
or an equivalent Award substituted by the successor corporation or a parent or subsidiary of the successor corporation.

 

(e) In the event that
the successor corporation in a Change in Control refuses to assume or substitute for the Award, the Administrator may cause any
or all of such Awards to become fully exercisable immediately prior to the consummation of such transaction and all forfeiture
restrictions on any or all of such Awards to lapse. If an Award is exercisable in lieu of assumption or substitution in the event
of a Change in Control, the Administrator shall notify the Holder that the Award shall be fully exercisable for a period of fifteen
(15) days from the date of such notice, contingent upon the occurrence of the Change in Control, and the Award shall terminate
upon the expiration of such period.

 

(f) For the purposes
of this Section 14.2, an Award shall be considered assumed if, following the Change in Control, the Award confers the right to
purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether
stock, cash, or other securities or property) received in the Change in Control by holders of Common Stock for each Share held
on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in
the Change in Control was not solely common stock of the successor corporation or its parent, the Administrator may, with the consent
of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each Share subject
to an Award, to be solely common stock of the successor corporation or its parent equal in fair market value to the per-share consideration
received by holders of Common Stock in the Change in Control.

 

(g) The Administrator,
in its sole discretion, may include such further provisions and limitations in any Award, agreement or certificate, as it may deem
equitable and in the best interests of the Company that are not inconsistent with the provisions of the Plan.

 

(h) With respect to Awards
which are granted to Covered Employees and are intended to qualify as Performance-Based Compensation, no adjustment or action described
in this Section 14.2 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would
cause such Award to fail to so qualify as Performance-Based Compensation, unless the Administrator determines that the Award should
not so qualify. No

    	 	28	 

     

    

adjustment or action described in this
Section 14.2 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause
the Plan to violate Section 422(b)(1) of the Code. Furthermore, no such adjustment or action shall be authorized to the extent
such adjustment or action would result in short-swing profits liability under Section 16 or violate the exemptive conditions of
Rule 16b-3 unless the Administrator determines that the Award is not to comply with such exemptive conditions.

 

(i) The existence of
the Plan, the Program, the Award Agreement and the Awards granted hereunder shall not affect or restrict in any way the right or
power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or
other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of
stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights
are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock,
or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise.

 

(j) No action shall be
taken under this Section 14.2 which shall cause an Award to fail to be exempt from or comply with Section 409A of the Code or the
Treasury Regulations thereunder.

 

(k) In the event of any
pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than
normal cash dividends) of Company assets to stockholders, or any other change affecting the Shares or the share price of the Common
Stock including any Equity Restructuring, for reasons of administrative convenience, the Company, in its sole discretion, may refuse
to permit the exercise of any Award during a period of up to thirty (30) days prior to the consummation of any such transaction.

 

14.3 Approval of
Plan by Stockholders. The Plan (as amended and restated) will be submitted for the approval of the Company’s stockholders
within twelve (12) months after the date of the Board’s initial adoption of the Plan (as amended and restated).

 

14.4 No Stockholders
Rights. Except as otherwise provided herein, a Holder shall have none of the rights of a stockholder with respect to Shares
covered by any Award until the Holder becomes the record owner of such Shares.

 

14.5 Paperless Administration.
In the event that the Company establishes, for itself or using the services of a third party, an automated system for the documentation,
granting or exercise of Awards, such as a system using an internet website or interactive voice response, then the paperless documentation,
granting or exercise of Awards by a Holder may be permitted through the use of such an automated system.

 

14.6 Effect of Plan
upon Other Compensation Plans. The adoption of the Plan shall not affect any other compensation or incentive plans in effect
for the Company or any Affiliate. Nothing in the Plan shall be construed to limit the right of the Company or any Affiliate: (a)
to establish any other forms of incentives or compensation for Employees, Directors or Consultants of the Company or any Affiliate,
or (b) to grant or assume options or other rights or awards otherwise than under the Plan in connection with any proper corporate
purpose including without 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.

 

    	 	29	 

     

    

14.7 Compliance
with Laws. The Plan, the granting and vesting of Awards under the Plan and the issuance and delivery of Shares and the payment
of money under the Plan or under Awards granted or awarded hereunder are subject to compliance with all Applicable Law (including
but not limited to state, federal and foreign securities law and margin requirements), and to such approvals by any listing, regulatory
or governmental authority as may, in the opinion of counsel for 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 Company may deem necessary or desirable
to assure compliance with all Applicable Law. To the extent permitted by Applicable Law, the Plan and Awards granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to Applicable Law.

 

14.8 Titles and
Headings, References to Sections of the Code or Exchange Act. The titles and headings of the Sections in the Plan are for convenience
of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.
References to sections of the Code or the Exchange Act shall include any amendment or successor thereto.

 

14.9 Governing Law.
The Plan and any agreements hereunder shall be administered, interpreted and enforced under the internal laws of the State of Delaware
without regard to conflicts of laws thereof or of any other jurisdiction.

 

14.10 Section 409A.

 

(a) General. To the extent
that the Administrator determines that any Award granted under the Plan is subject to Section 409A of the Code, the Program pursuant
to which such Award is granted and the Award Agreement evidencing such Award shall incorporate the terms and conditions required
by Section 409A of the Code. To the extent applicable, the Plan, the Program and any Award Agreements shall be interpreted in accordance
with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including
without limitation any such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision
of the Plan to the contrary, in the event that following the Effective Date the Administrator determines that any Award may be
subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance
as may be issued after the Effective Date), the Administrator may adopt such amendments to the Plan and the applicable Program
and Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect),
or take any other actions, that the Administrator determines are necessary or appropriate to (a) exempt the Award from Section
409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with
the requirements of Section 409A of the Code and related Department of Treasury guidance and thereby avoid the application of any
penalty taxes under such Section.

 

(b) Separation from Service.
If an Award constitutes “nonqualified deferred compensation” under Section 409A of the Code, any payment or settlement
of such Award upon a Holder’s Termination of Service will, to the extent necessary to avoid taxes under Section 409A
of the Code, be made only upon the Holder’s “separation from service” (within the meaning of Section 409A
of the Code), whether such “separation from service” occurs upon or after the Holder’s Termination of Service.
For purposes of this Plan or any Award Agreement relating to any such payments or benefits, references to a “termination,”
“termination of employment” or like terms means a “separation from service.”

 

    	 	30	 

     

    

(c) Payments to Specified
Employees. Notwithstanding any contrary provision in the Plan or any Award Agreement, any payment(s) of “nonqualified deferred
compensation” required to be made under an Award to a “specified employee” (as defined under Section 409A
of the Code and as the Administrator determines) due to his or her “separation from service” will, to the extent necessary
to avoid taxes under Section 409A(a)(2)(B)(i) of the Code, be delayed for the six-month period immediately following such
“separation from service” (or, if earlier, until the specified employee’s death) and will instead be paid (as
set forth in the Award Agreement) on the day immediately following such six-month period or as soon as administratively practicable
thereafter (without interest). Any payments of “nonqualified deferred compensation” under such Award payable more than
six months following the Holder’s “separation from service” will be paid at the time or times the payments are
otherwise scheduled to be made.

 

14.11 No Rights
to Awards. No Eligible Individual or other person shall have any claim to be granted any Award pursuant to the Plan, and neither
the Company nor the Administrator is obligated to treat Eligible Individuals, Holders or any other persons uniformly.

 

14.12 Unfunded Status
of Awards. The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments
not yet made to a Holder pursuant to an Award, nothing contained in the Plan or any Program or Award Agreement shall give the Holder
any rights that are greater than those of a general creditor of the Company or any Affiliate.

 

14.13 Indemnification.
To the extent allowable pursuant to Applicable Law, each member of the Committee or of the Board shall be indemnified and held
harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member
in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or
she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid
by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her; provided he or she gives
the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend
it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled pursuant to the Company’s Articles of Incorporation or Bylaws, as a matter of law,
or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

14.14 Relationship
to other Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits under any pension,
retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Affiliate except to the
extent otherwise expressly provided in writing in such other plan or an agreement thereunder.

 

14.15 Expenses.
The expenses of administering the Plan shall be borne by the Company and its Affiliates.

 

* * * * *

 

I hereby certify that the foregoing Plan
was duly adopted by the Board of Directors of Redwood Trust, Inc. on March 20, 2018.

 

* * * * *

 

I hereby certify that the foregoing Plan
was approved by the stockholders of Redwood Trust, Inc. on May 22, 2018.

 

Executed on this 22nd day of May, 2018.

 

    	 	31	 

     

    

 

	 	 	 
	 	By: 	/s/ ANDREW P. STONE	 
	 	 	Andrew P. Stone
Executive Vice President, General Counsel, and Secretary

 

    	 	32Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated
Employment Agreement (“Agreement”), effective as of May 22, 2018 (the “Effective Date”), is entered into
by and between Martin S. Hughes (the “Employee”) and Redwood Trust, Inc., a Maryland corporation (the
“Company”), and amends and restates in its entirety that certain Amended and Restated Employment Agreement by and between
the Employee and the Company dated as of February 22, 2017 (the “Prior Agreement”).

 

The Employee has announced
his retirement from the position of Chief Executive Officer of the Company effective as of the Effective Date, and the Company
desires to establish its right to the continued employment of the Employee, in the capacity, on the terms and conditions, and subject
to the rights of termination hereinafter set forth, and the Employee is willing to accept such employment in such capacity, on
such terms and conditions, and subject to such rights of termination.

 

In consideration of
the mutual agreements hereinafter set forth, the Employee and the Company have agreed and do hereby agree as follows:

 

1.                 
Employment and Responsibilities. During the Term, the Employee shall serve as an employee of the Company
with the title “Advisor to the Chief Executive Officer,” reporting to the Chief Executive Officer of the Company. The
Employee does hereby accept and agree to such employment. The Employee’s duties (the “Employee’s Duties”)
shall be those set forth on Exhibit A and such other duties as may be determined from time to time after consultation between
the Chief Executive Officer and the Board of Directors of the Company (the “Board”). The Employee shall devote such
time, energy and skill to the performance of his duties for the Company and for the benefit of the Company as may be necessary
or required for the effective conduct and operation of the Company’s business. Furthermore, the Employee shall act only in
good faith and exercise due diligence and care in the performance of his duties to the Company under this Agreement. The Employee
agrees that neither his change in position from Chief Executive Officer of the Company to Advisor to the Chief Executive Officer
nor any action taken by the Company in connection therewith (including without limitation the appointment of a new Chief Executive
Officer of the Company) will constitute a termination of his employment without Cause (as defined in the Prior Agreement) or an
event giving rise to Good Reason (as defined in the Prior Agreement) for purposes of the Prior Agreement or any other agreement
between him and the Company.

 

2.                 
Term of Agreement. The term of this Agreement (the “Term”) shall commence on the Effective
Date and shall continue through May 22, 2020 (the “Term End Date”), unless earlier terminated as set forth herein.

 

3.                 
Compensation. Subject to and conditioned upon the Employee’s execution and
delivery to the Company of an effective release of claims in substantially the form attached hereto as Exhibit B within
twenty-one (21) days following the Effective Date and non-revocation of such release during any applicable revocation period:

 

    	 

     

    

(a)              
Base Salary. During the Term, the Company shall pay the Employee, and the Employee agrees to accept from the Company,
in payment for his services to the Company an annual base salary at the rate of $150,000 per year, paid in accordance with the
customary payroll practices of the Company (the “Base Salary”).

 

(b)             
2018 Performance Bonus. The Employee shall be eligible to receive a 2018 annual cash bonus with respect to the portion
of the 2018 calendar year prior to the Effective Date, in accordance with the 2018 annual bonus program established by the Board
(or the Board’s Compensation Committee) for the Company’s executive officers; provided, however, that (1) to the extent
a bonus becomes payable under this Section 3(b), it will be prorated to reflect the Employee’s time served as Chief Executive
Officer between January 1, 2018 and May 22, 2018 (the “Bonus Eligibility Period”) and (2) the determination of the
Employee’s achievement of his 2018 individual performance goals shall be determined by the Board (or the Board’s Compensation
Committee) based on the Employee’s 2018 individual goals as presented at the March 20, 2018 Compensation Committee meeting.
The Board (or the Board’s Compensation Committee) in its discretion will determine whether such annual bonus will be paid,
the amount of such bonus and its form of payment. The Employee’s 2018 prorated target annual bonus amount is 175% of the
portion of his base salary paid with respect to the Bonus Eligibility Period (the “Prorated Target Bonus”). If the
Board determines in its discretion that the Employee’s performance meets or exceeds the criteria established by the Board
for the award of a Prorated Target Bonus, the Board may award the Employee the Prorated Target Bonus or a higher amount. Likewise,
if the Employee’s performance does not meet said criteria, the Board may award a lesser amount, or no bonus may be awarded.
Unless otherwise provided in this Agreement, the Employee’s eligibility to receive any bonus under this Section 3(b) shall
be expressly conditioned on, among other things, the Employee remaining employed with the Company up through any designated distribution
date set by the Board for 2018 annual bonuses (currently contemplated to be early March 2019).

 

(c)              
Equity Incentive Awards. To the extent Company equity awards granted to the Employee prior to the Effective Date remain
outstanding and unvested as of the Effective Date (each, a “Company Equity Award”), each such Company Equity Award
shall, during the Term, remain outstanding and, as applicable, continue to vest in accordance with its terms. During the Term,
the Employee shall not be eligible to receive new grants of equity-based long-term incentive awards. In the event of a Change of
Control (as defined in the Redwood Trust, Inc. Executive Deferred Compensation Plan) in which the surviving or acquiring corporation
does not assume the Executive’s outstanding equity-related awards (including options and equity-based awards granted both
before and after the Effective Date) or substitute similar equity-related awards, such equity-related awards shall immediately
vest and become exercisable if the Executive’s service with the Company has not terminated before the effective date of the
Change of Control; provided, however, that the foregoing provision shall only apply if the Company is not the surviving corporation
or if shares of the Company’s common stock are converted into or exchanged for other securities or cash.

 

(d)             
Annual Review. The Employee’s performance shall be reviewed at least annually. The performance evaluations shall
consider and assess the Employee’s performance of his duties and responsibilities, the timely accomplishment of existing
performance objectives, his level of efficiency and overall effectiveness and/or other factors or criteria that the Company, in
its sole discretion, may deem relevant. The frequency of performance evaluations may vary

 

    	 	-2-	 

     

    

depending upon, among other things, length
of service, past performance, changes in job duties or performance levels.

 

4.                 
Fringe Benefits. The Employee shall be entitled to participate in any benefit programs adopted from time
to time by the Company for the benefit of its employees, and the Employee shall be entitled to receive such other fringe benefits
as may be granted to him from time to time by the Board. For purposes of the Company benefit plans, the Employee will be considered
a Managing Director-level employee.

 

(a)              
Benefit Plans. The Employee shall be entitled to participate in any benefit plans relating to pension, thrift, profit
sharing, life insurance, medical coverage, education, deferred compensation or other retirement or employee benefits available
to other employees of the Company, subject to any restrictions (including waiting periods) specified in such plans and/or related
individual agreements.

 

(b)             
Paid Time Off. The Employee shall be entitled to twenty-five (25) days of paid time off (“PTO”) per calendar
year pursuant to the Company’s policies applicable to similarly situated employees of the Company, as in effect from time
to time and consistent with the Employee’s satisfactory performance of the duties set forth in Section 1; provided, however,
that the Employee may only accrue up to a maximum of fifty (50) days of PTO. The Employee may use PTO for any reason, including
vacation, sick time, personal time and family illness. Any vacation shall be taken at the reasonable and mutual convenience of
the Company and the Employee. Subject to the forgoing, on any day when the Employee’s duties do not require Employee to work,
Employee may take a PTO day notwithstanding that at such time Employee does not have a positive PTO accrual.

 

5.                 
Business Expenses. The Company shall reimburse the Employee for any and all necessary, customary and usual
expenses, properly receipted in accordance with Company policies, incurred by the Employee on behalf of the Company during the
Term.

 

6.                 
Termination of the Employee’s Employment.

 

(a)              
Death. If the Employee dies while employed by the Company, his employment shall immediately terminate. The Company’s
obligation to pay the Employee’s Base Salary shall cease as of the date of the Employee’s death, and any unpaid Base
Salary payable with respect to any period prior to the termination date, and any previously awarded bonus unpaid as of the termination
date shall be paid to the Employee’s estate. The Employee’s beneficiaries or his estate shall receive benefits in accordance
with the Company’s retirement, insurance and other applicable programs and plans then in effect. All equity-related awards
with time-based vesting, including deferred or restricted stock units, shall vest in full. All equity-related awards with performance-based
vesting, including performance stock units, shall remain outstanding and shall continue to be eligible to vest and become payable
based on the number of target shares and the performance goals set forth in the applicable award agreement by which such awards
are evidenced. In addition, in the event the Employee dies in calendar year 2018, then within fifteen (15) days of the Employee’s
death, the Company shall pay to the Employee’s estate an incentive performance bonus equal to the Prorated Target Bonus.

 

    	 	-3-	 

     

    

(b)             
Disability. If, as a result of the Employee’s incapacity due to physical or mental illness (“Disability”),
the Employee shall have been absent from the full-time performance of his duties with the Company for six (6) consecutive months,
and, within thirty (30) days after written notice is provided to him by the Company, he shall not have returned to the full-time
performance of his duties, the Employee’s employment under this Agreement may be terminated by the Company for Disability.
During any period prior to such termination during which the Employee is absent from the full-time performance of his duties with
the Company due to Disability, the Company shall continue to pay the Employee his Base Salary at the rate in effect at the commencement
of such period of Disability. The Company’s obligation to pay the Employee’s Base Salary shall cease as of the date
of the such termination, and any unpaid Base Salary payable with respect to any period prior to the termination date, and any previously
awarded bonus unpaid as of the termination date shall be paid to the Employee. Subsequent to such termination, the Employee’s
benefits shall be determined under the Company’s retirement, insurance and other compensation programs then in effect in
accordance with the terms of such programs. In addition, in the event such termination occurs in calendar year 2018, then within
fifteen (15) days of such termination, the Company shall pay to the Employee an incentive performance bonus equal to the Prorated
Target Bonus. The Employee, the Employee’s beneficiaries or his estate shall receive benefits in accordance with the Company’s
retirement, insurance and other applicable programs and plans then in effect. All equity-related awards with time-based vesting,
including deferred or restricted stock units, shall vest in full. All equity-related awards with performance-based vesting, including
performance stock units, shall remain outstanding and shall continue to be eligible to vest and become payable based on the number
of target shares and the performance goals set forth in the applicable award agreement by which such awards are evidenced.

 

(c)              
Termination by the Company for Cause. The Company may terminate the Employee’s employment under this Agreement
for Cause, at any time prior to the Term End Date. For purposes of this Agreement, “Cause” shall mean (i) the Employee’s
material failure to substantially perform the reasonable and lawful duties of his position for the Company, which failure shall
continue for thirty (30) days after notice thereof by the Company to the Employee; (ii) acts or omissions constituting gross negligence,
recklessness or willful misconduct on the part of the Employee in respect of the performance of his duties hereunder, his fiduciary
obligations or otherwise relating to the business of the Company; (iii) the habitual or repeated neglect of his duties by the Employee;
(iv) the Employee’s conviction of a felony; (v) theft or embezzlement, or attempted theft or embezzlement, of money or tangible
or intangible assets or property of the Company or its employees, customers, clients, or others having business relations with
the Company; (vi) any act of moral turpitude by the Employee injurious to the interest, property, operations, business or reputation
of the Company; or (vii) unauthorized use or disclosure of trade secrets or confidential or proprietary information pertaining
to Company business. However, the termination of the Employee’s employment shall not be deemed to be for Cause unless and
until there has been delivered to the Employee a copy of a resolution duly adopted by the Board (after reasonable notice is provided
to the Employee and the Employee is given an opportunity to be heard by the Board), finding that, in the good faith opinion of
the Board, the Employee’s conduct met the standard for termination for Cause. In the event of a termination under this Section
6(c), the Company will pay only the portion of Base Salary or previously awarded bonus unpaid as of the termination date. Fringe
benefits which have accrued and/or vested on the termination date will continue in effect according to their terms.

 

    	 	-4-	 

     

    

(d)             
Termination by the Company Without Cause. The Company may terminate the Employee’s employment hereunder at any
time prior to the Term End Date without Cause upon thirty (30) days written notice to the Employee or pay in lieu thereof. In the
event of a termination under this Section 6(d), the Employee shall be entitled to the benefits set forth in Section 7.

 

(e)              
Termination by the Employee.

 

(i)                
The Employee may at any time prior to the Term End Date terminate his employment hereunder
for any reason or no reason by giving the Company notice in writing not less than thirty (30) days in advance of such termination.
The Employee shall have no further employment obligations to the Company after the effective date of termination, as set forth
in the notice. Fringe benefits which have accrued and/or vested on the termination date will continue in effect according to their
terms. Subject to the following paragraph (ii), in the event of a termination by the Employee under this Section 6(e), the Company
will pay only the portion of Base Salary or previously awarded bonus unpaid as of the termination date. 

 

(ii)             
If both: (x) the Employee gives notice in writing to terminate his employment hereunder
in accordance with the immediately preceding paragraph (i); and (y) the Company does not within thirty (30) following receipt of
such notice notify the Employee in writing that it intends to terminate the Employee for “Cause” in accordance with
Section 6(c) of this Agreement; then Employee’s termination shall be deemed a “Retirement” under, and as that
term is defined in, any then-outstanding Performance Stock Unit Award Agreement between the Employee and the Company, subject to
the provisions of any such Performance Stock Unit Award Agreement that provide the Compensation Committee of the Board with the
discretion to determine whether such a termination of employment is a “Retirement” for purposes of any such Performance
Stock Unit Award Agreement.

 

(f)               
Termination Due to Expiration of Agreement. Upon a termination of the Employee’s
employment with the Company due to the expiration of the Term on the Term End Date, the Employee shall not be entitled to the benefits
set forth in Section 7. In the event of a termination by the Employee under this Section 6(f), the Company will pay only the portion
of Base Salary unpaid as of the termination date. Fringe benefits which have accrued and/or vested on the termination date will
continue in effect according to their terms. 

 

7.                 
Compensation Upon Termination by the Company Without Cause.(a) 

 

(a)              
Severance. If the Employee’s employment is terminated by the Company prior to the Term End Date without Cause,
the Employee shall be entitled to the following benefits:

 

(i)                
Payment of Unpaid Base Salary. The Company shall immediately pay the Employee any portion
of the Employee’s Base Salary through the date of termination or previously awarded bonus not paid prior to the termination
date.

 

    	 	-5-	 

     

    

 

(ii)             
Severance Payment. The Company shall pay the Employee the remaining Base Salary that would have been payable for the
remainder of the Term (had the Employee remained employed hereunder). In addition, in the event the Employee’s termination
of employment without Cause occurs prior to payment of his 2018 annual bonus, the Company shall pay to the Employee a severance
amount equal to the Prorated Target Bonus.

 

(iii)           
Equity Awards. All Company Equity Awards that vest solely based on the passage of time and remain outstanding on the
date of termination shall accelerate and vest as of the date of termination to the extent they would have become vested had the
Employee remained employed through the Term End Date (but not thereafter). All Company Equity Awards that vest in whole or in part
on the achievement of applicable performance goals (“Performance-Based Company Equity Awards”) and remain outstanding
on the date of termination shall remain outstanding and eligible to vest in accordance with their terms as though the Employee
had remained employed through the Term End Date (but not thereafter).

 

For the avoidance of
doubt, all such Company Equity Awards shall remain outstanding and eligible to vest following the date of termination and shall
actually vest and become non-forfeitable (1) with respect to Company Equity Awards that vest solely based on the passage of time,
upon the effectiveness of a release (as described in Section 7(c)) or (2) with respect to Performance-Based Company Equity Awards,
in accordance with their terms and subject to the effectiveness of a release (as described in Section 7(c)).

 

(iv)            
Continuation of Fringe Benefits. Until November 30, 2021, the Company shall provide or reimburse the Employee, his spouse
and his eligible dependents for healthcare coverage upon terms substantially similar to those in effect on the last day of the
Term based on the Employee’s elections then in effect (“Continued Coverage”); provided that if such Continued
Coverage would result in penalties under the Internal Revenue Code (as amended, the “Code”), the Public Health Service
Act or the Patient Protection and Affordance Care Act then the Company may in its sole discretion provide that the Company shall
pay to the Employee, on an after-tax basis, a monthly amount equal to the full premium cost of the Continued Coverage for such
month. The Employee shall be required to provide complete and accurate documentation evidencing the Employee’s actual premium
payments for continued healthcare coverage in order to receive reimbursement from the Company pursuant to this Section 7(a)(iv).

 

(v)              
Payment/Benefit Limitation. If any payment or benefit due under this Agreement, together with all other payments and
benefits that the Employee receives or is entitled to receive from the Company or any of its subsidiaries, affiliates or related
entities, would (if paid or provided) constitute an “excess parachute payment” for purposes of Section 280G of the
Code, the amounts otherwise payable and benefits otherwise due under this Agreement will either (i) be delivered in full, or (ii)
be limited to the minimum extent necessary to ensure that no portion thereof will fail to be tax-deductible to the Company by reason
of Section 280G of the Code (and therefore, no portion thereof will be subject to the excise tax imposed under Section 4999 of
the Code), whichever of the foregoing amounts, taking into account applicable federal, state and local income and employment taxes
and the excise tax imposed under Section 4999 of the Code, results in the receipt by the Employee, on an after-tax basis, of the
greatest amount of

 

    	 	-6-	 

     

    

payments and benefits, notwithstanding
that all or some portion of such payments and/or benefits may be subject to the excise tax imposed under Section 4999 of the Code.
Unless otherwise specified in writing by the Employee, in the event that the payments and/or benefits are to be reduced pursuant
to this Section 7(a)(v), such payments and benefits shall be reduced such that the reduction of cash compensation to be provided
to the Employee as a result of this Section 7 is minimized. In applying this principle, the reduction shall be made in a manner
consistent with the requirements of Section 409A of the Code and where two (2) economically equivalent amounts are subject to reduction
but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero (0). All determinations required
to be made under this Section 7(a)(v) shall be made by the Company’s independent public accounting firm (or such other nationally
recognized public accounting firm as may be selected by the Company and to which selection the Employee consents (such consent
not to be unreasonably withheld)) which shall provide detailed supporting calculations both to the Company and the Employee within
fifteen (15) business days of the receipt of notice from the Employee that there has been a payment or benefit subject to this
Section 7(a)(v), or such earlier time as is requested by the Company.

 

(b)             
No Mitigation Required; No Other Entitlement to Benefits Under Agreement. The Employee shall not be required in any
way to mitigate the amount of any payment provided for in this Section 7, including, without limitation, by seeking other employment,
nor shall the amount of any payment provided for in this Section 7 be reduced by any compensation earned by the Employee as the
result of employment with another employer after the termination date of employment, or otherwise. Except as set forth in this
Section 7, following a termination governed by this Section 7, the Employee shall not be entitled to any other compensation or
benefits set forth in this Agreement.

 

(c)              
Release Agreement. As a condition of receiving any of the payments, vesting and benefits set forth in this Section 7,
the Employee shall be required to execute a mutual release agreement in the form attached hereto as Exhibit C or Exhibit
D, as appropriate, and such release agreement must have become effective in accordance with its terms within sixty (60) days
following the termination date. The Company, in its sole discretion, may modify the term of the required release agreement to comply
with applicable state law and may incorporate the required release agreement into a termination agreement or other agreement with
the Employee.

 

(d)             
Timing of Severance Payments. Notwithstanding any other provision of this Agreement, all cash severance payments provided
under this Agreement in connection with the termination of the employment of the Employee shall be payable on the date that is
six (6) months after the termination date.

 

8.                 
 [INTENTIONALLY OMITTED]

 

9.                 
Noncompetition Provisions.

 

(a)              
Noncompetition. The Employee agrees that during the Term prior to any termination of his employment hereunder, he will
not, directly or indirectly, without the prior written consent of a majority of the non-employee members of the Board, manage,
operate, join, control, participate in, or be connected as a stockholder (other than as a holder of shares publicly traded on a
stock exchange or the NASDAQ National Market System), partner, or other equity

 

    	 	-7-	 

     

    

holder with, or as an officer, director
or employee of, any real estate or mortgage investment organization whose business strategy is competitive with that of the Company,
as determined by a majority of the non-employee members of the Board. It is further expressly agreed that the Company will or would
suffer irreparable injury if the Employee were to compete with the Company or any subsidiary or affiliate of the Company in violation
of this Agreement and that the Company would by reason of such competition be entitled to injunctive relief in a court of appropriate
jurisdiction, and the Employee further consents and stipulates to the entry of such injunctive relief in such a court prohibiting
the Employee from competing with the Company or any subsidiary or affiliate of the Company, in the areas of business set forth
above, in violation of this Agreement.

 

(b)             
Duty to Avoid Conflict of Interest. During his employment by the Company, the Employee agrees not to engage or participate
in, directly or indirectly, any activities in conflict with the best interests of the Company. The Company shall be the final decision-maker
with regard to any conflict of interest issue.

 

(c)              
Right to Company Materials. The Employee agrees that all styles, designs, lists, materials, books, files, reports, correspondence,
records, and other documents (“Company Materials”) used, prepared, or made available to the Employee shall be and shall
remain the property of the Company. Upon the termination of employment or the expiration of this Agreement, the Employee shall
immediately return to the Company all Company Materials, and the Employee shall not make or retain any copies thereof.

 

(d)             
Non-solicitation. The Employee promises and agrees that he will not directly or indirectly solicit any of the Company’s
employees to work for any competing real estate or mortgage investment organization as determined under Section 9(a) during his
employment by the Company and for a period of one (1) year following the occurrence of any event entitling the Employee to payments
and benefits, provided the Company makes all such payments when due according to the provisions herein, including, without limitation,
if applicable and when due, any payments or vesting and delivery of shares of common stock underlying equity awards provided for
in Section 7 of this Agreement.

 

(e)              
Non-disparagement. During his employment with the Company and thereafter, the Employee
agrees not to make negative comments or statements about, or otherwise criticize or disparage, in any format or through any medium,
the Company or any of its affiliates or any of the officers, directors, managers, employees, services, operations, investments
or products of the Company or any of its affiliates. For purposes of the foregoing sentence, disparagement shall include, but not
be limited to, negative comments or statements intended or reasonably likely to be harmful or disruptive to a person’s or
entity’s respective business, business reputation, business operations, or personal reputation.

 

(f)               
Confidential and Proprietary Information.

 

(i)                
It is hereby acknowledged that the Employee has and shall gain knowledge of trade secrets
and confidential information owned by or related to the Company and/or its affiliates including but not limited to the following:
(i) the names, lists, buying habits and practices of customers, clients or vendors, (ii) marketing and related information, (iii)

 

    	 	-8-	 

     

    

relationships
with the persons or entities with whom or with which the Company has contracted, (iv) their products, designs, software, developments,
improvements and methods of operation, (v) financial condition, profit performance and financial requirements, (vi) the compensation
paid to employees, (vii) business plans and the information contained therein, and (viii) all other confidential information of,
about or concerning the Company, the manner of operation of the Company and other confidential data of any kind, nature or description
relating to the Company (collectively, the “Confidential Information”). Confidential Information does not include information
which (A) is or becomes generally available to the public other than as a result of a disclosure by the Employee; or (B) becomes
available to the Employee on a non-confidential basis after the termination or expiration of the Employee’s obligations under
this Agreement from a source other than the Company, provided that such source is not bound by a confidentiality agreement with
or other contractual, legal or fiduciary obligation of confidentiality to the Company or any other party with respect to such information;
or (C) is independently developed after the termination or expiration of the Employee’s obligations under this agreement
without reference to the Confidential Information, provided such independent development can reasonably be proven by the Employee
by written records.

 

(ii)             
The parties hereby acknowledge that the Confidential Information constitutes important,
unique, material and confidential trade secrets which affect the successful activities of the Company, and constitute a substantial
part of the assets and goodwill of the Company. In view of the foregoing, the Employee agrees that he will not at any time whether
during or after the term of this Agreement, except as required in the course of the Employee’s employment by Company and
at its direction and for its sole benefit, in any fashion, form or manner, directly or indirectly (i) use or divulge, disclose,
communicate or provide or permit access to any person, firm, partnership, corporation or other entity, any Confidential Information
of any kind, nature or description, or (ii) remove from Company’s premises any notes or records relating thereto, or copies
or facsimiles thereof (whether made by electronic, electrical, magnetic, optical, laser, acoustic or other means).

 

(iii)           
Promptly upon the request of Company, and immediately upon the termination of the Employee’s
employment, the Employee shall not transfer to any third person and shall deliver to Company all Confidential Information, and
other property belonging to the Company, including all copies thereof, in the possession or under the control of the Employee.

 

(iv)            
The Employee represents that the performance of all the terms of this Agreement will not
conflict with, and will not breach, any other invention assignment agreement, confidentiality agreement, employment agreement or
non-competition agreement to which the Employee is or has been a party. To the extent that the Employee has confidential information
or materials of any former employer, the Employee acknowledges that the Company has directed the Employee to not disclose such
confidential information or materials to the Company or any of its employees, and that the Company prohibits the Employee from
using said confidential information or materials in any work that the Employee may perform for the Company. The Employee agrees
that the Employee will not bring with the Employee to the Company, and will not use or disclose any confidential, proprietary information,
or trade secrets acquired by the Employee prior to his employment with the Company. The Employee will not disclose to the Company
or any of its employees, or induce the Company or any of its employees to use, any confidential or proprietary information or material
belonging to any previous employers

 

    	 	-9-	 

     

    

or others,
nor will the Employee bring to the Company or use in connection with the Employee’s work for the Company copies of any software,
computer files, or any other copyrighted or trademarked materials except those owned by or licensed to the Company. The Employee
represents that he is not a party to any other agreement that will interfere with his full compliance with this Agreement. The
Employee further agrees not to enter into any agreement, whether written or oral, in conflict with the provisions of this Agreement.

 

(v)              
Notwithstanding the generality of the foregoing, nothing in this Agreement is intended
to prohibit the Employee from filing a charge with, reporting possible violations to, or participating or cooperating with the
Securities and Exchange Commission or any other federal, state or local regulatory body or law enforcement agency (each a “Governmental
Agency”), including in relation to any whistleblower, anti-discrimination, or anti-retaliation provisions of federal, state
or local law or regulation. Pursuant to 18 U.S.C. Section 1833(b), the Employee will not be held criminally or civilly liable under
any federal or state trade secret law for the disclosure of a trade secret that is made: (x) in confidence to a federal, state
or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating
a suspected violation of law; or (y) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is
made under seal.

 

(g)              
Inventions. Any and all inventions, discoveries or improvements that the Employee has conceived or made or may conceive
or make during the period of employment relating to or in any way pertaining to or connected with the systems, products, computer
programs, software, apparatus or methods employed, manufactured or constructed by the Company or to systems, products, apparatus
or methods with respect to which the Company engages in, requests or anticipates research or development, shall be promptly and
fully disclosed and described by the Employee to the Company and shall be the sole and exclusive property of the Company, and the
Employee shall assign, and hereby does assign to the Company the Employee’s entire right, title and interest in and to all
such inventions, discoveries or improvements as well as any modifications or improvements thereto that may be made.

 

The obligations outlined
in this Section 9(g) do not apply to:

 

(i)                
any invention that qualifies fully under California Labor Code Section 2870, a copy of which is attached as Exhibit
E; and

 

(ii)             
any rights the Employee may have acquired in connection with an invention, discovery or improvement that was developed
by Employee when not performing Employee Duties; provided, in the case of this clause (ii), that (x) no employees, Confidential
Information or trade secret information of the Company was used; and (y) such rights do not result directly from any of Employee’s
Duties performed by the Employee for the Company during the Term.

 

(h)             
Maryland Law. The Employee agrees, in accordance with Maryland law, to first offer to the Company corporate opportunities
learned of solely as a result of the performance of his Employee Duties for the Company.

 

    	 	-10-	 

     

    

(i)                
Breach. It is expressly agreed that each breach of this Section 9 is a distinct and material breach of this Agreement
and that solely a monetary remedy would be inadequate, impracticable and extremely difficult to prove, and that each such breach
would cause the Company irreparable harm. It is further agreed that, in addition to any and all remedies available at law or equity
(including money damages), either party shall be entitled to temporary and permanent injunctive relief to enforce the provisions
of this Section, without the necessity of proving actual damages. It is further agreed that either party shall be entitled to seek
such equitable relief in any forum, including a court of law, notwithstanding the provisions of Section 11. Either party may pursue
any of the remedies described herein concurrently or consecutively in any order as to any such breach or violation, and the pursuit
of one of such remedies at any time will not be deemed an election of remedies or waiver of the right to pursue any of the other
such remedies. Any breach of this Section 9 shall immediately terminate any obligations by the Company to provide the Employee
with severance and continued benefits pursuant to Section 6 or 7 of this Agreement.

 

(j)               
Unenforceability. Should any portion of this Section 9 be deemed unenforceable because of its scope, duration or effect,
and only in such event, then the parties expressly consent and agree to such limitation on scope, duration or effect as may be
finally adjudicated as enforceable, to give this Section 9 its maximum permissible scope, duration and effect.

 

10.             
Notices. All notices and other communications under this Agreement shall be in writing and shall be given
by fax or first class mail, certified or registered with return receipt requested, and shall be deemed to have been duly given
three (3) days after mailing or twenty-four (24) hours after transmission of a fax to the respective persons named below:

 

		If to the Company:	Redwood Trust, Inc.

Attn: General Counsel

One Belvedere Place, Suite 300

Mill Valley, CA 94941

Phone: (415) 389-7373

Fax: (415) 381-1773

 

		If to the Employee:	 Martin S. Hughes

53 Bridgegate Drive

San Rafael, CA 94903

Phone: 415-505-2077

Fax: [Not applicable]

 

Either party may change
such party’s address for notices by notice duly given pursuant hereto.

 

11.             
Resolution of Disputes. To ensure the rapid and economical resolution of disputes that may arise in connection
with the Employee’s employment with the Company, the Employee and the Company agree that any and all disputes, claims, or
causes of action, in law or equity, arising from or relating to the enforcement, breach, performance, or interpretation of this
Agreement, the Employee’s employment, or the termination of the Employee’s employment

 

    	 	-11-	 

     

    

(“Arbitrable Claims”) shall
be submitted to confidential mediation in San Francisco, California conducted by a mutually agreeable mediator from Judicial Arbitration
and Mediation Services (“JAMS”) or its successor under the JAMS Rules of Practice and Procedure (the “JAMS Rules”)
then in effect, which can be found at www.jamsadr.com/adr-rules-procedures/. The cost of JAMS’ mediation fees shall be paid
by the Company. In the event that mediation is unsuccessful in resolving the Arbitrable Claims, the Arbitrable Claims shall be
resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in San Francisco, California conducted
by JAMS or its successor, under the then-applicable JAMS Rules. The Employee acknowledges that by agreeing to this arbitration
procedure, both the Employee and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative
proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and
to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision including the arbitrator’s
essential findings and conclusions and a statement of the award. The arbitrator shall be authorized to award any or all remedies
that the Employee or the Company would be entitled to seek in a court of law, including, without limitation, the award of attorneys’
fees based on a determination of the extent to which each party has prevailed as to the material issues raised in determination
of the dispute. The Company shall pay all JAMS’ arbitration fees in excess of those which would be required if the dispute
were decided in a court of law. Nothing in this Agreement is intended to prevent either the Employee or the Company from obtaining
injunctive relief in court to prevent irreparable harm pending the conclusion of any such mediation or arbitration.

 

12.             
Termination of Prior Agreements. This Agreement terminates and supersedes any and all prior agreements
and understandings between the parties with respect to employment or with respect to the compensation of the Employee by the Company,
including but not limited to the Prior Agreement.

 

13.             
Assignment Successors. This Agreement is personal in its nature, and neither of the parties hereto shall,
without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided, however,
that, in the event of the merger, consolidation, transfer, or sale of all or substantially all of the assets of the Company with
or to any other individual or entity, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the
benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of
the Company hereunder.

 

14.             
Governing Law. This Agreement and the legal relations thus created between the parties hereto shall be
governed by and construed under and in accordance with the laws of the State of California.

 

15.             
Entire Agreement; Headings. This Agreement embodies the entire agreement of the parties with respect to
the subject matter hereof and supersedes in their entirety all other or prior agreements, whether oral or written, with respect
thereto, including but not limited to the Prior Agreement, and excluding the plans and programs under which compensation and benefits
are provided pursuant to Sections 3 and 4 hereof to the extent such plans and programs are not inconsistent with this Agreement.
Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.

 

    	 	-12-	 

     

    

16.             
Waiver; Modification. Failure to insist upon strict compliance with any of the terms, covenants, or conditions
hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of, or failure
to insist upon strict compliance with, any right or power hereunder at any one or more times be deemed a waiver or relinquishment
of such right or power at any other time or times. This Agreement shall not be modified in any respect except by a writing executed
by each party hereto.

 

17.             
Severability. In the event that a court of competent jurisdiction determines that any portion of this
Agreement is in violation of any statute or public policy, only the portions of this Agreement that violate such statute or public
policy shall be stricken. All portions of this Agreement that do not violate any statute or public policy shall continue in full
force and effect. Further, any court order striking any portion of this Agreement shall modify the stricken terms as narrowly as
possible to give as much effect as possible to the intentions of the parties under this Agreement.

 

18.             
Indemnification. The Company shall indemnify and hold the Employee harmless to the maximum extent permitted
by Section 2-418 of the Maryland General Corporations Law or its successor statute, or if greater, by the Company’s Bylaws,
by any applicable resolution of the Board or by the terms providing the most extensive indemnification contained in any written
agreement between the Company and any director or officer of the Company. The Company shall provide that the Employee will continued
to be a beneficiary under all director and officer liability policies maintained by the Company from time to time for the benefit
of its directors and officers, entitled to all benefits provided thereunder to persons serving in a comparable role for the Company.

 

19.             
Section 409A. Any payments under this Agreement subject to Section 409A of the
Code that are subject to execution of a waiver and release which may be executed and/or revoked in a calendar year following the
calendar year in which the payment event (such as a termination of employment) occurs shall commence payment only in the calendar
year in which the consideration period or, if applicable, release revocation period ends, as necessary to comply with Section 409A
of the Code. Notwithstanding anything to the contrary in this Agreement, no compensation or benefits shall be paid to the Employee
during the six (6)-month period following the Employee’s “separation from service” from the Company (within the
meaning of Section 409A of the Code, a “Separation from Service”) if the Company determines that paying such amounts
at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code.
If the payment of any such amounts is delayed as a result of the previous sentence, then on the first day of the seventh month
following the date of Separation from Service (or such earlier date upon which such amount can be paid under Section 409A without
resulting in a prohibited distribution, including as a result of the Employee’s death), the Company shall pay the Employee
a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Employee during such period. Any
right to a series of installment payments pursuant to this Agreement is to be treated as a right to a series of separate payments.
To the extent permitted under Section 409A of the Code, any separate payment or benefit under this Agreement or otherwise shall
not be deemed “nonqualified deferred compensation” subject to Section 409A of the Code to the extent provided in the
exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision
of Section 409A. All payments of nonqualified deferred compensation subject to Section 409A of the Code

 

    	 	-13-	 

     

    

to be
made upon a termination of employment under this Agreement may only be made upon the Employee’s Separation from Service.

 

20.             
Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to
be an original but all of which together will constitute one and the same instrument.

 

21.             
Successor Sections. References herein to sections or rules of the Code or the Securities Exchange Act
of 1934, as amended, shall be deemed to include any successor sections or rules.

 

[Signature Page Follows]

 

    	 	-14-	 

     

    

 

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by its duly authorized officer, and the Employee has hereunto signed this
Agreement, as of the Effective Date.

 

	 	REDWOOD TRUST, INC.	 
	 	 	 
	 	 	 
	 	By: 	/s/ ANDREW P. STONE	 
	 	 	Andrew P. Stone
Executive Vice President, General Counsel, & Secretary	 
	 	 	 	 
	 	 	 	 
	 	EMPLOYEE	 
	 	 	 	 
	 	 	 	 
	 	/s/ MARTIN S. HUGHES	 
	 	Martin S. Hughes	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

    	[Signature
                                         page to Amended and Restated Employment Agreement]

     

    

 

 

EXHIBIT A

 

DUTIES

 

		1)	Assistance with the Company’s outreach program in Washington,
D.C.

 

		2)	Provision of strategic advice to the Company’s Chief Executive
Officer (as may be requested from time to time).

 

		3)	Provision of management advice to the Company’s Chief Executive
Officer (as may be requested from time to time).

 

		4)	As requested by the Board or individual Board members, provide
advice and consultation relating to the Company’s business and operations.

 

 

 

    	 	A-1	 

     

    

EXHIBIT B

 

RELEASE AGREEMENT

 

Except as otherwise
set forth in this Release Agreement or in the Amended and Restated Employment Agreement effective May 22, 2018 between Martin S.
Hughes and Redwood Trust, Inc., Martin S. Hughes (“Employee”) hereby generally and completely releases the Company
and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that
arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including the
date Employee signs this Release Agreement. This general release includes, but is not limited to: (A) all claims arising out of
or in any way related to Employee’s employment with the Company prior to Employee’s execution of this Release Agreement;
(B) all claims related to Employee’s compensation or benefits from the Company, including salary, bonuses, commissions, vacation
pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company;
(C) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing;
(D) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; (E)
all federal, state and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees
or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of
1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the federal Employee Retirement
Income Security Act of 1974 (as amended), and the California Fair Employment and Housing Act (as amended); and (F) all claims and
rights with respect to Employee’s right to communicate directly with, cooperate with, or provide information to, any federal,
state or local government regulator; provided, however, that nothing in this paragraph shall be construed in any way to release
the Company from its obligation to indemnify Employee pursuant to agreement, the Company’s bylaws or binding resolutions,
or applicable law.

 

Employee acknowledges
that he is knowingly and voluntarily waiving and releasing any rights he may have under the ADEA, and that the consideration given
under his Employment Agreement with the Company for the waiver and release in the preceding paragraph hereof is in addition to
anything of value to which he was already entitled. Employee further acknowledges that he has been advised by this writing, as
required by the ADEA, that: (A) this waiver and release does not apply to any rights or claims that may arise after the date Employee
signs this Release Agreement; (B) Employee should consult with an attorney prior to signing this Release Agreement (although Employee
may choose voluntarily not do so); (C) Employee has twenty-one (21) days to consider this Release Agreement (although Employee
may choose voluntarily to sign this Release Agreement earlier); (D) Employee has seven (7) days following the date that he signs
this Release Agreement to revoke the Release Agreement by providing written notice to an officer of the Company; and (E) this Release
Agreement shall not be effective until the date upon which the revocation period has expired, which shall be the eighth (8th)
day after Employee signs this Release Agreement. Employee acknowledges that he has read and understands Section 1542 of the California
Civil Code which reads as follows:

 

 

 

    	 	B-1	 

     

    

A general release
does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the debtor.

 

Employee hereby expressly
waives and relinquishes all rights and benefits under that section and any law of any jurisdiction of similar effect with respect
to his release of any claims hereunder.

 

IN WITNESS WHEREOF,
Employee has hereunto signed this Agreement, as of the date set forth below.

 

	 	EMPLOYEE	 
	 	 	 
	 	 	 
	 	By: 	             	 
	 	 	Martin S. Hughes	 
	 	 	 	 
	 	Date:	              	 

 

    	 	B-2	 

     

    

INDIVIDUAL TERMINATION

 

EXHIBIT C

 

RELEASE AGREEMENT

 

Except as otherwise
set forth in this Release Agreement or in Sections 7 and 18 of the Amended and Restated Employment Agreement effective May 22,
2018 between Martin S. Hughes and Redwood Trust, Inc., Martin S. Hughes (“Employee”) hereby generally and completely
releases the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors,
parent and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known
and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to
and including the date Employee signs this Release Agreement. The Company, its directors, officers, employees, shareholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns, hereby releases
Employee and his heirs, executors, successors and assigns, from any and all claims, liabilities and obligations, both known and
unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and
including the date the Company signs this Release Agreement. This general mutual release includes, but is not limited to: (A) all
claims arising out of or in any way related to Employee’s employment with the Company or the termination of that employment;
(B) all claims related to Employee’s compensation or benefits from the Company, including salary, bonuses, commissions, vacation
pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company;
(C) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing;
(D) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; (E)
all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’
fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities
Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the federal Employee Retirement
Income Security Act of 1974 (as amended), and the California Fair Employment and Housing Act (as amended); and (F) all claims and
rights with respect to Employee’s right to communicate directly with, cooperate with, or provide information to, any federal,
state or local government regulator; provided, however, that nothing in this paragraph shall be construed in any way to release
the Company from its obligation to indemnify Employee pursuant to agreement, the Company’s bylaws or binding resolutions,
or applicable law.

 

Employee acknowledges
that he is knowingly and voluntarily waiving and releasing any rights he may have under the ADEA, and that the consideration given
under his Employment Agreement with the Company for the waiver and release in the preceding paragraph hereof is in addition to
anything of value to which he was already entitled. Employee further acknowledges that he has been advised by this writing, as
required by the ADEA, that: (A) this waiver and release does not apply to any rights or claims that may arise after the date Employee
signs this Release Agreement; (B) Employee should consult with an attorney prior to signing this Release Agreement (although Employee
may choose voluntarily not do so); (C) Employee has twenty-one (21) days to consider this Release Agreement (although Employee
may choose voluntarily to sign this Release Agreement earlier); (D) Employee has seven (7) days following the date that he signs
this

 

    	 	C-1	 

     

    

Release Agreement to
revoke the Release Agreement by providing written notice to an officer of the Company; and (E) this Release Agreement shall not
be effective until the date upon which the revocation period has expired, which shall be the eighth (8th) day after
Employee signs this Release Agreement. Both Employee and the Company acknowledge that each has read and understands Section 1542
of the California Civil Code which reads as follows:

 

A general release
does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the debtor.

 

Both Employee and the
Company hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar
effect with respect to each party’s release of any claims hereunder.

 

Mutual
Nondisparagement.

 

(a)               
Nondisparagement by Employee. At all times following the cessation of Employee’s employment with the
Company, Employee agrees not to make negative comments or statements about, or otherwise criticize or disparage, in any format
or through any medium, the Company or any entity controlled by, controlling or under common control with the Company (“Affiliates”)
or any of the officers, directors, managers, employees, services, operations, investments or products of the Company or any of
its Affiliates. For purposes of the foregoing sentence, disparagement shall include, but not be limited to, negative comments or
statements intended or reasonably likely to be harmful or disruptive to a person’s or entity’s respective business,
business reputation, business operations, or personal reputation.

 

(b)               
Nondisparagement by Designated Company Representatives. At all times following the cessation of Employee’s
employment with the Company, the Company agrees not to publish, and agrees to cause the Designated Company Representatives not
to make, negative comments or statements about, or otherwise criticize or disparage, in any format or through any medium, Employee.
For purposes of the foregoing sentence, disparagement shall include, but not be limited to, negative comments or statements intended
or reasonably likely to be harmful or disruptive to a person’s business reputation or personal reputation. For purposes of
this sub-section (b), the “Designated Company Representatives” are (i) all Employee officers of the Company while serving
in such capacity and (ii) all members of the Board of Directors while serving in such capacity.

 

(c)               
The foregoing sub-sections (a) and (b) shall not be violated by truthful comments or statements (i) made in response
to legal process, in required governmental testimony or filings, in judicial, administrative or arbitral proceedings (including,
without limitation, depositions in connection with such proceedings), in compliance with law, administrative rule, or regulation,
or made pursuant to a court or administrative order, or in connection with reporting possible violations of federal law or regulation
to any governmental agency or entity, or making other disclosures that are protected under the whistleblower provisions of federal
law or regulation, (ii) made by members of the Board of Directors in the course of meetings or discussions of the Board of Directors
(or any committee thereof) or in communications between members of the Board of Directors and Employee, and not disclosed to the
public, (iii) made by a member of the Board of

 

    	 	C-2	 

     

    

Directors in the good
faith belief that the statements are required for the proper discharge of his or her fiduciary duties, or (iv) made by the Board
of Directors in connection with a termination of Employee for Cause.

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by its duly authorized officer, and Employee has hereunto signed this Agreement,
as of the date set forth below.

 

	 	EMPLOYEE	 
	 	 	 
	 	 	 
	 	By: 	             	 
	 	 	Martin S. Hughes	 
	 	 	 	 
	 	Date:	              	 
	 	 	 	 
	 	 	 	 
	 	COMPANY	 
	 	 	 	 
	 	 	 	 
	 	Name:	 	 
	 	 	 	 
	 	Date:	 	 

 

    	 	C-3	 

     

    

GROUP TERMINATION

 

EXHIBIT D

 

RELEASE AGREEMENT

 

Except as otherwise
set forth in this Release Agreement or in Sections 7 and 18 of the Amended and Restated Employment Agreement effective May 22,
2018 between Martin S. Hughes and Redwood Trust, Inc., Martin S. Hughes (“Employee”) hereby generally and completely
releases the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors,
parent and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known
and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to
and including the date Employee signs this Release Agreement. The Company, its directors, officers, employees, shareholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns, hereby releases
Employee and his heirs, executors, successors and assigns, from any and all claims, liabilities and obligations, both known and
unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and
including the date the Company signs this Release Agreement. This general mutual release includes, but is not limited to: (A) all
claims arising out of or in any way related to Employee’s employment with the Company or the termination of that employment;
(B) all claims related to Employee’s compensation or benefits from the Company, including salary, bonuses, commissions, vacation
pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company;
(C) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing;
(D) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; (E)
all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’
fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities
Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the federal Employee Retirement
Income Security Act of 1974 (as amended), and the California Fair Employment and Housing Act (as amended); and (F) all claims and
rights with respect to Employee’s right to communicate directly with, cooperate with, or provide information to, any federal,
state or local government regulator; provided, however, that nothing in this paragraph shall be construed in any way to release
the Company from its obligation to indemnify Employee pursuant to agreement, the Company’s bylaws or binding resolutions,
or applicable law.

 

Employee acknowledges
that he is knowingly and voluntarily waiving and releasing any rights he may have under the ADEA, and that the consideration given
under his Employment Agreement with the Company for the waiver and release in the preceding paragraph hereof is in addition to
anything of value to which he was already entitled. Employee further acknowledges that he has been advised by this writing, as
required by the ADEA, that: (A) this waiver and release does not apply to any rights or claims that may arise after the date Employee
signs this Release Agreement; (B) Employee should consult with an attorney prior to signing this Release Agreement (although Employee
may choose voluntarily not do so); (C) Employee has forty-five (45) days to consider this Release Agreement (although he may choose
voluntarily to sign this Release Agreement earlier); (D) Employee has seven (7) days following the date that he signs this Release

 

    	 	D-1	 

     

    

Agreement to revoke the
Release Agreement by providing written notice to an officer of the Company; (E) this Release Agreement shall not be effective until
the date upon which the revocation period has expired, which shall be the eighth (8th) day after Employee signs this
Release Agreement; and (F) Employee has received with this Release Agreement a detailed list of the job titles and ages of all
employees who were terminated in this group termination and the ages of all employees of the Company in the same job classification
or organizational unit who were not terminated.

 

Both Employee and the
Company acknowledge that each has read and understands Section 1542 of the California Civil Code which reads as follows:

 

A general release
does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the debtor.

 

Both Employee and the
Company hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar
effect with respect to each party’s release of any claims hereunder.

 

Mutual
Nondisparagement.

 

(a)               
Nondisparagement by Employee. At all times following the cessation of Employee’s employment with the
Company, Employee agrees not to make negative comments or statements about, or otherwise criticize or disparage, in any format
or through any medium, the Company or any entity controlled by, controlling or under common control with the Company (“Affiliates”)
or any of the officers, directors, managers, employees, services, operations, investments or products of the Company or any of
its Affiliates. For purposes of the foregoing sentence, disparagement shall include, but not be limited to, negative comments or
statements intended or reasonably likely to be harmful or disruptive to a person’s or entity’s respective business,
business reputation, business operations, or personal reputation.

 

(b)               
Nondisparagement by Designated Company Representatives. At all times following the cessation of Employee’s
employment with the Company, the Company agrees not to publish, and agrees to cause the Designated Company Representatives not
to make, negative comments or statements about, or otherwise criticize or disparage, in any format or through any medium, Employee.
For purposes of the foregoing sentence, disparagement shall include, but not be limited to, negative comments or statements intended
or reasonably likely to be harmful or disruptive to a person’s business reputation or personal reputation. For purposes of
this sub-section (b), the “Designated Company Representatives” are (i) all Employee officers of the Company while serving
in such capacity and (ii) all members of the Board of Directors while serving in such capacity.

 

(c)               
The foregoing sub-sections (a) and (b) shall not be violated by truthful comments or statements (i) made in response
to legal process, in required governmental testimony or filings, in judicial, administrative or arbitral proceedings (including,
without limitation, depositions in connection with such proceedings), in compliance with law, administrative rule, or regulation,
or made pursuant to a court or administrative order, or in connection with reporting possible

 

    	 	D-2	 

     

    

violations of federal
law or regulation to any governmental agency or entity, or making other disclosures that are protected under the whistleblower
provisions of federal law or regulation, (ii) made by members of the Board of Directors in the course of meetings or discussions
of the Board of Directors (or any committee thereof) or in communications between members of the Board of Directors and Employee,
and not disclosed to the public, (iii) made by a member of the Board of Directors in the good faith belief that the statements
are required for the proper discharge of his or her fiduciary duties, or (iv) made by the Board of Directors in connection with
a termination of Employee for Cause.

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by its duly authorized officer, and Employee has hereunto signed this Agreement,
as of the date set forth below.

 

	 	EMPLOYEE	 
	 	 	 
	 	 	 
	 	By: 	             	 
	 	 	Martin S. Hughes	 
	 	 	 	 
	 	Date:	              	 
	 	 	 	 
	 	 	 	 
	 	COMPANY	 
	 	 	 	 
	 	 	 	 
	 	Name:	 	 
	 	 	 	 
	 	Date:	 	 

 

    	 	D-3	 

     

    

EXHIBIT E

 

California
Labor Code

 

California Labor Code § 2870.
Application of provision providing that employee shall assign or offer to assign rights in invention to employer.

 

(a)       Any
provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights
in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time
without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that
either:

 

(1)       Relate
at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer; or

 

(2)       Result
from any work performed by the employee for the employer.

 

(b)       To
the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from
being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

 

    	 	E-1

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