Document:

2002 REDWOOD TRUST, INC.
EMPLOYEE STOCK PURCHASE PLAN

 

(as amended)

 

1.
ESTABLISHMENT OF PLAN.

 

Redwood
Trust, Inc., a Maryland corporation (the “Company”), proposes to grant options (“Options”) for purchase
of the Company's common stock, $0.01 per share par value (“Common Stock”), to eligible employees of the Company and
its Designated Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “Plan”).
For purposes of this Plan, “parent corporation” and “subsidiary” shall have the same meanings as “parent
corporation” and “subsidiary corporation” set forth in Sections 424(e) and 424(f), respectively, of the Internal
Revenue Code of 1986, as amended (the “Code”). The Company intends this Plan to qualify as an “employee stock
purchase plan” under Section 423 of the Code (including any amendments or successor provisions to such Section), and the
provisions of this Plan shall be construed as reasonably necessary in order to effectuate such intent. Any term not expressly
defined in this Plan but defined for purposes of Section 423 of the Code shall have the same definition herein.

 

2. STOCK SUBJECT TO PLAN.

 

A total
of 450,000 shares of the Common Stock is reserved for issuance under this Plan. Such number shall be subject to adjustments affected
in accordance with Section 16 of this Plan. Any shares of Common Stock that have been made subject to an Option that cease to be
subject to the Option (other than by means of exercise of the Option), including, without limitation, in connection with the cancellation
or termination of an Option, shall again be available for issuance in connection with future grants of Options under this Plan.

 

3. PURPOSE.

 

The
purpose of this Plan is to provide employees of the Company and its designated subsidiaries, as that term is defined in Section
5 of this Plan (“Designated Subsidiaries”), with a convenient means of acquiring an equity interest in the Company
through payroll deductions, to enhance such employees' sense of participation in the affairs of the Company and its Designated
Subsidiaries, to provide an incentive for continued employment with the Company and its Designated Subsidiaries, to provide an
additional form of tax-advantaged compensation for employees, and to provide a performance incentive that will inure to the benefit
of all of the Company's stockholders.

 

4. ADMINISTRATION.

 

This
Plan shall be administered by a committee (the “Committee”) appointed by the Company's Board of Directors (the “Board”)
consisting of at least two members of the Board, each of whom is a “non-employee director” as defined in Rule 16b-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (unless the General Counsel of the Company
shall have rendered a written opinion to the Board that such composition of the Committee is not required for the exemption under
Rule 16b-3 to be available with respect to purchases of Common Stock under the Plan), which shall be the Compensation Committee
of the Board if it satisfies such requirements. Subject to the provisions of this Plan and the limitations of Section 423 of the
Code or any successor provision in the Code, the Committee shall have exclusive authority, in its discretion, to determine all
matters relating to Options granted under this Plan, including all terms, conditions, restrictions, and limitations of Options;
provided, however, that all participants granted Options under an offering pursuant to this Plan shall have the same rights and
privileges within the meaning of Code Section 423(b)(5) except as required by applicable law. The Committee shall also have exclusive
authority to interpret this Plan and may from time to time adopt rules and regulations of general application for this Plan's administration.
The Committee's exercise of discretion and interpretation of this Plan, its rules and regulations, and all actions taken and determinations
made by the Committee pursuant to this Plan shall be conclusive and binding on all parties involved or affected. The Committee
may delegate administrative duties to the Plan Financial Agent (defined in Section 12) or such of the Company's officers or employees
as it so determines (provided that no such delegation may be made that would cause the purchase of Common Stock by participants
under this Plan to cease to be exempt from Section 16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)). All expenses incurred in connection with the administration of this Plan shall be paid by the Company and the Designated
Subsidiaries; provided, however, that the Committee may require a participant to pay any costs or fees in connection with the sale
by the participant of shares of Common Stock acquired under this Plan or in connection with the participant's request for the issuance
of a certificate for shares of Common Stock held in the participant's account under the Plan.

 

5. ELIGIBILITY.

 

Any
employee of the Company or the Designated Subsidiaries is eligible to participate in the Plan for any Offering Period (as hereinafter
defined) under this Plan except the following:

 

(a)
employees who have not been continuously employed by the Company or Subsidiaries from the date of hire or rehire or of return
from an unapproved leave of absence for a period of at least three months before the beginning of such Offering Period;

 

(b)
employees who are customarily employed for less than 20 hours per week;

 

(c)
employees who are customarily employed for not more than five months in a calendar year; and

 

(d)
employees who, together with any other person whose stock would be attributed to such employee pursuant to Section 424(d) of the
Code, own stock or hold options to purchase stock possessing 5% or more of the total combined voting power or value of all classes
of stock of the Company or any of its Subsidiaries or who, as a result of being granted Options under this Plan, would own stock
or hold options to purchase stock possessing 5% or more of the total combined voting power or value of all classes of stock of
the Company or any of its Subsidiaries.

 

    	 

    	 

    

  

For
all purposes of this Plan, the term Designated Subsidiaries shall mean those Subsidiaries which have been, or which may in the
future be, determined by the Board to be Designated Subsidiaries. A Designated Subsidiary will cease to be a Designated Subsidiary
on the earlier of (i) the date the Committee or the Board determines that such Subsidiary is no longer a Designated Subsidiary
or (ii) such Designated Subsidiary ceases for any reason to be a “parent corporation” or “subsidiary corporation”
as defined in Sections 424(e) and 424(f), respectively, of the Code.

 

6. EFFECTIVE DATE; OFFERING
AND PURCHASE PERIODS.

 

The
effective date of this Plan shall be July 1, 2002 (the “Effective Date”). The offering periods of this Plan (individually,
an “Offering Period”) shall consist of periods determined as described below not to exceed the maximum period permitted
by Section 423 of the Code. Until determined otherwise by the Committee or the Board, (a) Offering Periods shall commence on each
January 1 and continue for twelve months, provided, however, that the first Offering Period shall begin on July 1, 2002 and continue
for six months and the initial Offering Period for any newly eligible employee that becomes a participant during an otherwise ongoing
Offering Period shall be deemed to begin on the first day of the first Purchase Period after eligibility, and (b) each Offering
Period shall consist of one or more purchase periods (individually, a “Purchase Period”) during which payroll deductions
of the participants are accumulated under this Plan. Until otherwise determined by the Committee or the Board, each Purchase Period
shall be a three-month period commencing on each January 1, April 1, July 1, and October 1, provided, however, that the first Purchase
Period shall commence with the first Offering Period on July 1, 2002. The first day of each Offering Period is referred to as the
“Offering Date”. The last day of each Purchase Period is referred to as the “Purchase Date”. Subject to
the requirements of Section 423 of the Code, the Committee or the Board shall have the power to change the duration of Offering
Periods or Purchase Periods with respect to future offerings if such change is announced at least 30 days prior to the first day
of the first Offering Period or Purchase Period to be affected by such change.

 

7. PARTICIPATION IN THIS
PLAN.

 

Eligible
employees may become participants in an Offering Period under this Plan as of the Purchase Period first commencing after satisfying
the eligibility requirements by delivering an enrollment form provided by the Company to the Secretary of the Company or such other
officer as he or she may designate from time to time (“Redwood Plan Administrator”) not later than the 15 th
day of the month (or if such day is not a business day for the Company or the applicable Subsidiary, on the immediately preceding
business day) before commencement of such Purchase Period unless a later time for filing the enrollment form authorizing payroll
deductions is set by the Committee for all eligible employees with respect to a given Purchase Period. Notwithstanding the foregoing,
for the initial Offering Period, commencing on the effective date, the time for filing an enrollment form and commencing participation
for employees who satisfy the eligibility requirements as of the effective date shall be determined by the Committee and communicated
to such employees. Once an employee becomes a participant in the Plan, such employee will automatically participate in all Purchase
Periods commencing after satisfying the eligibility and enrollment requirements as set forth in the first sentence or second sentence
of this section unless the employee withdraws from this Plan or terminates further participation in the Offering Period as set
forth in Sections 13 and 14 below. Such participant is not required to file any additional enrollment forms in order to continue
participation in this Plan.

 

8. GRANT OF OPTION ON ENROLLMENT.

 

Enrollment
by an eligible employee in this Plan with respect to an Offering Period will constitute the grant by the Company to such employee
as of the relevant Offering Date of an Option to purchase on each relevant Purchase Date up to that number of whole shares of Common
Stock of the Company, determined by dividing (a) the amount accumulated in such employee's payroll deduction account during the
Purchase Period ending on such Purchase Date by (b) the Purchase Price as that term is defined in Section 9; provided, however,
that the number of shares which may be purchased pursuant to an Option may in no event exceed (i) the number determined by dividing
the amount of $6,250 by the fair market value (as defined in Section 9) of a share of Common Stock on the Offering Date, or (ii)
such other maximum number of shares as may be specified in the future by the Board or Committee in lieu of the limitation contained
in clause (i).

 

9. PURCHASE PRICE.

 

The
purchase price per share (the “Purchase Price”) at which a share of Common Stock will be sold on any Purchase Date
shall initially be the LOWER of (a) 85% of the fair market value of such share on the first day of the Offering Period in which
such Purchase Date occurs or (b) 85% of the fair market value of such share on the Purchase Date.

 

For
purposes of this Plan, the term “fair market value” of the Common Stock on any date shall be the closing price on such
date of the Common Stock reported on the New York Stock Exchange or any national securities exchange on which the Common Stock
is listed. If there is no reported closing price of the Common Stock on such date, then the “fair market value” shall
be measured on the next preceding trading day for which such reported closing price is available. If there is no regular trading
market for the Common Stock, the fair market value of the Common Stock shall be as determined by the Committee in its sole discretion,
exercised in good faith. The Committee may change the manner in which the Purchase Price is determined with respect to future Offering
Periods or Purchase Periods (provided such determination does not have the effect of lowering the Purchase Price to an amount less
than that which would be computed utilizing the method for determining the Purchase Price set forth in the first paragraph of this
Section 9) if such changed manner of computation applied to all eligible employees and is announced at least 30 days prior to the
first day of the first Offering Period or Purchase Period to be affected by such change.

 

10. PURCHASE OF SHARES;
CHANGES IN PAYROLL DEDUCTIONS; ISSUANCE OF SHARES.

 

(a)
Funds contributed by each participant for the purchase of shares under this Plan shall be accumulated by regular payroll deductions
made during each Offering Period. The deductions shall be made in $50 increments as selected by the Participant up to a maximum
of not more than 15% of the participant's Compensation. As used herein, “Compensation” shall mean all base salary,
wages, cash bonuses, commissions, current-pay dividend equivalent rights (“DERs”), and overtime; provided, however,
that, for purposes of determining a participant's Compensation, any election by such participant to reduce his or her regular cash
remuneration under Sections 125 or 401(k) of the Code shall be treated as if the participant did not make such election. “Compensation”
does not include severance pay, hiring and relocation allowances, pay in lieu of vacation, automobile allowances, imputed income
arising under any Company group insurance or benefit program, income received in connection with stock options or other stock-based
awards (other than current-pay DERs), or any other special items of remuneration. Payroll deductions shall commence on the first
payday following the Offering Date and shall continue through the last payday of the Offering Period unless sooner altered or terminated
as provided in this Plan.

 

    	 

    	 

    

  

(b)
A participant may lower (but not increase) the rate of payroll deductions during a Purchase Period by filing with the Redwood Plan
Administrator a new authorization for payroll deductions, in which case the new rate shall become effective for the next payroll
period commencing more than 15 days after the Redwood Plan Administrator's receipt of the authorization and shall continue for
the remainder of the Offering Period unless changed as described below. Such change in the rate of payroll deductions may be made
at any time during a Purchase Period, but not more than one change may be made effective during any Purchase Period. Notwithstanding
the foregoing, a participant may lower the rate of payroll deductions to zero for the remainder of the Purchase Period. A participant
may increase or decrease the rate of payroll deductions for any subsequent Purchase Period by filing with the Redwood Plan Administrator
a new authorization for payroll deductions not later than the 15 th day of the month (or if such date is not a business
day, the immediately preceding business day) before the beginning of such Purchase Period. A participant who has decreased the
rate of withholding to zero will be deemed to continue as a participant in the Plan until the participant withdraws from the Plan
in accordance with the provisions of Section 13. A participant shall have the right to withdraw from this Plan in the manner set
forth in Section 13 regardless of whether the participant has exercised his or her right to lower the rate at which payroll deductions
are made during an Offering Period.

 

(c)
All payroll deductions made for a participant will be credited to his or her account under this Plan and deposited with the general
funds of the Company. No interest will accrue on payroll deductions. All payroll deductions received or held by the Company may
be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

 

(d)
On each Purchase Date, provided that the participant has not terminated employment in accordance with Section 14 or has not submitted
to the Redwood Plan Administrator a signed and completed withdrawal form, in either case on or before the 15 th day
(or if such date is not a business day, on the immediately preceding business day) of the last month of the Purchase Period in
accordance with Section 10(b) or Section 13 of this Plan, or the Plan has not been terminated prior to the date referred to in
the foregoing clause, the Company shall apply the funds then in the participant's account to the purchase at the Purchase Price
of whole share(s) of Common Stock issuable under the Option deemed granted to such participant with respect to the Offering Period
to the extent that such Option is exercisable on the Purchase Date; provided that in no event shall an Option be deemed exercised
(by applying funds to a purchase) after the expiration of 27 months from the date such Option was deemed granted under Section
8 hereof. Subject to Section 11, any funds remaining in the participant's account will be applied to the following Purchase Period.
No fractional shares will be purchased.

 

(e)
During a participant's lifetime, such participant's Option to purchase shares hereunder is exercisable only by him or her. The
participant will have no interest or voting right in shares covered by his or her Option until such Option has been exercised.

 

11. LIMITATIONS ON RIGHT
TO PURCHASE.

 

(a)
No employee shall be granted an Option to purchase Common Stock under this Plan at a rate which, when aggregated with his or her
rights to purchase stock under all other employee stock purchase plans of the Company or any Subsidiary which is intended to meet
the requirements of Code Section 423, exceeds $25,000 in fair market value, determined as of the applicable date of the grant of
the Option, for each calendar year in which the employee participates in this Plan (or any other employee stock purchase plan described
in this Section 11(a)).

 

(b)
The number of shares which may be purchased by any employee on a Purchase Date may not exceed the number of shares determined by
dividing the sum of $6,250 by the fair market value (as defined in Section 9) of a share of Common Stock on the first day of the
Offering Period in which such Purchase Date occurs or, in the event the Committee or Board may specify a different limitation to
be applied in lieu of the foregoing limitation, then the number of shares which may be purchased by any employee on a Purchase
Date may not exceed such other limitation.

 

(c)
If the number of shares to be purchased on a Purchase Date by all employees participating in this Plan exceeds the number of shares
then available for issuance under this Plan, then the Company will make a pro rata allocation of the remaining shares in as uniform
a manner as shall be reasonably practicable and as the Committee shall determine to be equitable. In such event, the Company shall
give written notice of such reduction of the number of shares to be purchased under a participant's Option to each participant
affected thereby.

 

(d)
Any payroll deductions accumulated in a participant's account which are not used to purchase stock due to the limitations in this
Section 11 shall be returned to the participant as soon as practicable after the end of the applicable Purchase Period without
interest.

 

12. EVIDENCE OF STOCK OWNERSHIP.

 

(a)
Promptly following each Purchase Date, the number of full shares of Common Stock purchased by each participant shall be deposited
into an account established in the participant's name at a stock brokerage or other financial services firm designated or approved
by the Committee (the “Plan Financial Agent”). A participant shall be free to undertake a disposition (whether by way
of sale, gift, or other transfer) of the shares in his or her account at any time, subject to the Company's Insider Trading Policy
and applicable securities law rules and regulations, but, in the absence of such a disposition, the shares must remain in the participant's
account at the Plan Financial Agent until the holding period set forth in Code Section 423(a) has been satisfied. With respect
to full shares for which the Code Section 423(a) holding period has been satisfied, the participant may move those shares to another
brokerage account of the participant's choosing or request that a stock certificate for full shares be issued and delivered to
him or her.

 

    	 

    	 

    

  

(b)
Following termination of a participant's employment for any reason, the participant shall have a period of 60 days to notify the
Plan Financial Agent whether such participant desires (i) to receive a certificate representing all full shares then in the participant's
account with the Plan Financial Agent and any cash being held for future purchases or (ii) to sell the shares in the participant's
account through the Plan Financial Agent. If the terminated participant fails to file such notice with the Plan Financial Agent
within 60 days after termination, he or she shall be deemed to have elected the alternative set forth in clause (i) above, provided
that the Plan Financial Agent will continue to hold the terminated participant's certificates, on his or her behalf, in an account
no longer subject to this Plan, until otherwise directed by such participant or determined by the Plan Financial Agent. However,
the participant shall not in any event receive a certificate representing shares with respect to which the Code Section 423(a)
holding period has not been satisfied until such holding period has been satisfied.

 

13. WITHDRAWAL.

 

(a)
Each participant may withdraw from an Offering Period under this Plan by signing and delivering to the Redwood Plan Administrator
a written notice to that effect on a form provided for such purpose. Such withdrawal may be elected at any time on or prior to
the 15 th day of the last month (or if such date is not a business day, the immediately preceding business day) of a
Purchase Period.

 

(b)
Upon withdrawal from this Plan, the accumulated payroll deductions of the participant not theretofore utilized for the purchase
of shares of Common Stock on a Purchase Date shall be returned to the withdrawn participant, without interest, and his or her participation
in this Plan shall terminate. In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume
his or her participation in this Plan during the same Offering Period unless otherwise determined by the Committee, but he or she
may participate in any subsequent Offering Period by filing a new authorization for payroll deductions in the same manner as set
forth above for initial participation in this Plan.

 

14. TERMINATION OF EMPLOYMENT;
LEAVE OF ABSENCE.

 

Termination
of a participant's employment for any reason, including retirement, death, or the failure of a participant to remain an eligible
employee, immediately terminates his or her participation in this Plan. In such event, except as provided in Section 15, the payroll
deductions credited to the participant's account will be returned to him or her or, in the case of his or her death, to his or
her beneficiary or heirs, without interest. For purposes of this Section 14, an employee will not be deemed to have terminated
employment or failed to remain in the continuous employ of the Company in the case of any leave of absence permitted by applicable
law or otherwise approved by the Committee.

 

15. RETURN OF PAYROLL DEDUCTIONS.

 

In the
event a participant's interest in this Plan is terminated by withdrawal, termination of employment, or otherwise, or in the event
this Plan is terminated by the Board, the Company shall promptly deliver to the participant all contributions of the participant
to the Plan which have not yet been applied to the purchase of stock unless such termination of participation occurs later than
the 15 th day of the final month of any Purchase Period (or if such date is not a business day, on the preceding business
day), in which event such contributions will be utilized to purchase Common Stock for the participant. No interest shall accrue
on the payroll deductions of a participant in this Plan.

 

16. CAPITAL CHANGES.

 

In the
event that at any time or from time to time a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization,
merger, consolidation, distribution to stockholders other than a normal cash dividend, or other change in the Company's corporate
or capital structure results in (a) the outstanding shares of Common Stock or any securities exchanged therefor or received in
their place being exchanged for a different number or class of securities of the Company or of any other corporation or (b) new,
different, or additional securities of the Company or of any other corporation being received by the holders of shares of Common
Stock, then the Committee, in its sole discretion, shall make such equitable adjustments as it shall deem appropriate in the circumstances
in the maximum number and kind of shares of stock subject to this Plan as set forth in Sections 1 and 2, the number and kind of
shares subject to outstanding Options, and the Purchase Price. The determination by the Committee as to the terms of any of the
foregoing adjustments shall be conclusive and binding.

 

17. NONASSIGNABILITY.

 

Neither
payroll deductions credited to a participant's account nor any rights with regard to the exercise of an Option or to receive shares
under this Plan may be assigned, transferred, pledged, or otherwise disposed of in any way (other than by will, the laws of descent
and distribution, or as provided in Section 24 hereof) by the participant. Any such attempt at assignment, transfer, pledge, or
other disposition shall be void and without effect.

 

18. REPORTS AND STATUS
OF ACCOUNTS.

 

Individual
accounts will be maintained by the Plan Financial Agent for each participant in this Plan. The participant shall have all ownership
rights with respect to shares of Common Stock held in his or her account by the Plan Financial Agent, including the right to vote
such shares and to receive any dividends or distributions which may be declared thereon by the Board. The Plan Financial Agent
shall send to each participant promptly after the end of each Purchase Period a report of his or her account setting forth the
total of shares purchased, the total number of shares then held in his or her account, and the market value per share. Neither
the Company nor any Designated Subsidiary shall have any liability for any error or discrepancy in any such report.

 

    	 

    	 

    

  

19. NO RIGHTS TO CONTINUED
EMPLOYMENT; NO IMPLIED RIGHTS.

 

Neither
this Plan nor the grant of any Option hereunder shall confer any right on any employee to remain in the employ of the Company or
any Subsidiary or restrict the right of the Company or any Subsidiary to terminate such employee's employment. The grant of any
Option hereunder during any Offering Period shall not give a participant any right to similar grants thereafter.

 

20. EQUAL RIGHTS AND PRIVILEGES.

 

All
eligible employees shall have equal rights and privileges with respect to this Plan except as required by applicable law so that
this Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 or any successor provision
of the Code and the related regulations. Any provision of this Plan which is inconsistent with Section 423 or any successor provision
of the Code shall, without further act or amendment by the Company, the Board, or the Committee, be reformed to comply with the
requirements of Section 423. This Section 20 shall take precedence over all other provisions in this Plan.

 

21. NOTICES.

 

All
notices or other communications by a participant to the Company under or in connection with this Plan shall be deemed to have been
duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for
the receipt thereof.

 

22. AMENDMENT OF PLAN.

 

This
Plan may be amended by the stockholders of the Company. The Board may also amend this Plan in such respects as it shall deem advisable;
however, stockholder approval will be required for any amendment that will increase the total number of shares as to which Options
may be granted under this Plan, or, but for such shareholder approval, cause this Plan to fail to continue to qualify as an “employee
stock purchase plan” under Section 423 of the Code or cause the purchase of shares thereunder to fail to be exempt from the
provisions of Section 16(b) of the Exchange Act.

 

23. TERMINATION OF THE
PLAN.

 

The
Company's stockholders or the Board may suspend or terminate this Plan at any time. Unless this Plan shall theretofore have been
terminated by the Company's stockholders or the Board, this Plan shall remain in full force and effect until all shares reserved
under Section 2 have been purchased pursuant to the terms hereof.

 

24. DESIGNATION OF BENEFICIARY.

 

(a)
A participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the participant's
account under this Plan in the event of such participant's death prior to delivery to him or her (or to the Plan Financial Agent
on his or her behalf) of such shares and cash.

 

(b)
Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under this Plan who is living at the time of such participant's
death, the Company shall deliver such shares or cash to the executor or administrator of the estate of the participant, or if no
such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver
such shares or cash to the spouse or to any one or more dependents or relatives of the participant or, if no spouse, dependent,
or relative is known to the Company, to such other person as the Company may in good faith determine to be the appropriate designee.

 

25. CONDITIONS UPON ISSUANCE
OF SHARES; LIMITATION ON SALE OF SHARES.

 

Shares
shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such shares pursuant
thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities
Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of the New York
Stock Exchange or any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

 

26. WITHHOLDING.

 

The
Committee shall have the right to make such provisions as it deems appropriate to satisfy any obligation of the Company to withhold
federal, state, or local income or other taxes incurred by reason of the operation of the Plan.

 

27. GOVERNING LAW.

 

Except
to the extent that provisions of this Plan are governed by applicable provisions of the Code or any other substantive provision
of federal law, this Plan shall be construed in accordance with, and shall be governed by, the substantive laws of the State of
California without regard to any provisions of California law relating to the conflict of laws.ROI Acquisition Corp

601 Lexington Avenue, 51st Floor

New York, NY 10022

 

May 20, 2013

 

Clinton Magnolia Master Fund, Ltd.

601 Lexington Avenue, 51st Floor

New York, NY 10022

 

 

		RE:	Common Stock Purchase Agreement (this “Agreement”)

 

Ladies and Gentlemen:

 

ROI Acquisition Corp.,
a Delaware corporation (the “Company”), is pleased to accept the offer that Clinton Magnolia Master Fund, Ltd.
(the “Purchaser”) has made to purchase 1,050,000 shares of common stock (the “Shares”), $0.0001
par value per share (the “Common Stock”) of the Company. The terms on which the Company is willing to sell the
Shares to the Purchaser, and the Company and the Purchaser’s agreements regarding such Shares, are as follows:

 

1.                 
Purchase of Shares. The Company hereby agrees to sell and issue the Shares to the Purchaser, and the Purchaser
hereby agrees to purchase the Shares from the Company, on the terms and subject to the conditions set forth in this Agreement.
Immediately prior to the Merger Effective Time (as defined in the Business Combination Agreement and Plan of Merger, dated as of
January 31, 2013, by and among the Company and the other parties thereto, as amended from time to time (the transactions contemplated
thereby, the “Proposed Business Combination”)) (but in any event solely upon, and immediately following, approval
of the Proposed Business Combination and all other proposals which are preconditions thereto by the Company’s stockholders
and public warrantholders at the Company’s special meeting in lieu of the 2013 annual meeting and special meeting of public
warrantholders to take place on May 21, 2013), the Company shall deliver to the Purchaser a certificate registered in the Purchaser’s
name representing the Shares, and the Purchaser shall deliver to the Company the aggregate sum of $10,500,000.00 (the “Purchase
Price”) in cash.

 

2.                 
Representations, Warranties and Agreements.

 

2.1             
Purchaser’s Representations, Warranties and Agreements. To induce the Company to issue the Shares to the Purchaser,
the Purchaser hereby represents and warrants to the Company and agrees with the Company as follows:

 

2.1.1       
No Government Recommendation or Approval. The Purchaser understands that no United States federal or state agency
or similar agency of any other country has passed upon or made any recommendation or endorsement of the offering of the Shares.

 

2.1.2       
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Purchaser of
the transactions contemplated hereby do not violate, conflict with or constitute a default under (i) the formation and governing
documents of the Purchaser, (ii) any agreement, indenture or instrument to which the Purchaser is a party or (iii) any law, statute,
rule or regulation to which the Purchaser is subject, or any agreement, order, judgment or decree to which the Purchaser is subject.

 

    	 

    	 

    

 

 

2.1.3       
Organization and Authority. The Purchaser is an exempted company organized under the laws of the Cayman Islands.
The Purchaser is duly organized and validly existing under the laws of its jurisdiction of formation and possesses all requisite
power and authority necessary to carry out the transactions contemplated by this Agreement. Upon execution and delivery by the
Purchaser, this Agreement is a legal, valid and binding agreement of the Purchaser, enforceable against the Purchaser in accordance
with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar
laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless of
whether enforcement is sought in a proceeding at law or in equity).

 

2.1.4       
Experience, Financial Capability and Suitability. The Purchaser is sufficiently experienced in financial and business
matters to be capable of evaluating the merits and risks of this investment and to make an informed decision relating thereto.
The Purchaser is aware its investment in the Company is a speculative investment that has limited liquidity, because there may
never be an established market for the Company’s securities. The Purchaser has the financial capability for making the investment
and the investment is a suitable one for the Purchaser. The Purchaser can, without impairing its financial condition, hold the
Shares for an indefinite period of time and can afford a complete loss of the investment. The Purchaser acknowledges that the Company
has urged the Purchaser to seek independent advice from professional advisors relating to the suitability of an investment in the
Company and in connection with this Agreement, and that the Purchaser has sought and received such independent professional advice
with respect to such investment and this Agreement or, after careful consideration, the Purchaser has determined to waive its right
to seek and/or receive such independent professional advice.

 

2.1.5       
Access to Information; Independent Investigation. Prior to the execution of this Agreement, the Purchaser has had
the opportunity to ask questions of and receive answers from representatives of the Company concerning an investment in the Company,
as well as the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information
to verify the accuracy of all information so obtained. In determining whether to make this investment, the Purchaser has relied
solely on the Purchaser’s own knowledge and understanding of the Company and its business based upon the Purchaser’s
own due diligence investigation and the information furnished pursuant to this paragraph. The Purchaser understands that no person
has been authorized to give any information or to make any representations which were not furnished pursuant to this Section 2
and the Purchaser has not relied on any other representations or information in making its investment decision, whether written
or oral, relating to the Company, its operations and/or its prospects.

 

2.1.6       
Sophistication. The Purchaser represents that it is an “accredited investor” as such term is defined
in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) and acknowledges
the sale contemplated hereby is being made in reliance on a private placement exemption pursuant to Section 4(2) of the Securities
Act and the rules and regulations promulgated thereunder or similar exemptions under state law.

 

    	-2-

    	 

    

 

 

2.1.7       
Investment Purposes. The Purchaser is purchasing the Shares solely for investment purposes, for the Purchaser’s
own account and not for the account or benefit of any U.S. Person, and not with a view towards the distribution thereof and the
Purchaser has no present arrangement to sell the Shares to or through any person or entity. The Purchaser did not decide to enter
into this Agreement as a result of any general solicitation or general advertising within the meaning of Rule 502 under the Securities
Act. The Purchaser shall not engage in hedging transactions with regard to the Shares unless in compliance with the Securities
Act.

 

2.1.8       
Restrictions on Transfer; Shell Company. The Purchaser understands the Shares will be “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act and the Purchaser understands that the certificates representing
the Shares will contain a legend in respect of such restrictions. If in the future the Purchaser decides to offer, resell, pledge
or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise transferred only pursuant to: (i) registration
under the Securities Act, or (ii) an available exemption from registration. The Purchaser agrees that if any transfer of its Shares
or any interest therein is proposed to be made, as a condition precedent to any such transfer, the Purchaser may be required to
deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration or an exemption, the Purchaser agrees
not to resell the Shares. The Purchaser further acknowledges that because the Company is a shell company, Rule 144 may not be available
to the Purchaser for the resale of the Shares until one year following consummation of a merger, capital stock exchange, asset
acquisition, stock purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”),
despite technical compliance with the requirements of Rule 144.

 

2.1.9       
No Governmental Consents. No governmental, administrative or other third party consents or approvals are required,
necessary or appropriate on the part of the Purchaser in connection with the transactions contemplated by this Agreement.

 

2.2             
Company’s Representations, Warranties and Agreements. To induce the Purchaser to purchase the Shares, the Company
hereby represents and warrants to the Purchaser and agrees with the Purchaser as follows:

 

2.2.1       
Organization and Corporate Power. The Company is a corporation duly incorporated and validly existing under the laws
of Delaware and is qualified to do business in every jurisdiction in which the failure to so qualify would reasonably be expected
to have a material adverse effect on the financial condition, operating results or assets of the Company. The Company possesses
all requisite corporate power and authority necessary to carry out the transactions contemplated by this Agreement.

 

2.2.2       
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the
transactions contemplated hereby do not violate, conflict with or constitute a default under (i) the Certificate of Incorporation
or Bylaws of the Company, (ii) any agreement, indenture or instrument to which the Company is a party or (iii) any law, statute,
rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which the Company is subject.

 

    	-3-

    	 

    

 

 

2.2.3       
Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Shares will
be duly and validly issued, fully paid and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms
hereof the Purchaser will have or receive good title to the Shares, free and clear of all liens, claims and encumbrances of any
kind, other than (a) transfer restrictions contained in the Lockup Agreement of even date herewith among the Company, the Purchaser
and the other party thereto, (b) transfer restrictions under federal and state securities laws and (c) liens, claims or encumbrances
imposed due to the actions of the Purchaser.

 

3.                 
Waiver of Liquidation Distributions; Redemption Rights. In connection with the Shares purchased pursuant to
this Agreement and any other Company securities purchased on a private placement basis, the Purchaser hereby waives any and all
right, title, interest or claim of any kind in or to any distributions by the Company from the Trust Account (as such term is defined
in the Investment Management Trust Agreement dated as of February 22, 2012 by and between the Company and Continental Stock Transfer
& Trust Company, in the event of a liquidation of the Company upon the Company’s failure to timely complete a Business
Combination. For purposes of clarity, in the event the Purchaser purchases Common Stock in the aftermarket, any additional shares
so purchased shall be eligible to receive their pro rata portion of any liquidating distributions by the Company. However, in no
event will the Purchaser have the right to redeem any Shares, or any shares of Common Stock purchased on a private placement basis
or in the aftermarket, for funds held in the Trust Account upon the successful completion of a Business Combination.

 

4.                 
Restrictions on Transfer.

 

4.1             
Securities Law Restrictions. The Purchaser agrees not to sell, transfer, pledge, hypothecate or otherwise dispose
of all or any part of the Shares unless, prior thereto (a) a registration statement on the appropriate form under the Securities
Act and applicable state securities laws with respect to the Shares proposed to be transferred shall then be effective or (b) the
Company shall have received an opinion from counsel reasonably satisfactory to the Company, that such registration is not required
because such transaction is exempt from registration under the Securities Act and the rules promulgated by the Securities and Exchange
Commission thereunder and with all applicable state securities laws.

 

4.2             
Restrictive Legends. All certificates representing the Shares shall have endorsed thereon legends substantially as
follows:

 

“THESE SECURITIES (i) HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THESE SECURITIES
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER
THE SECURITIES ACT, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE)
OR (C) PURSUANT TO ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS.”

 

    	-4-

    	 

    

 

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO A LOCKUP AGREEMENT AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED
DURING THE TERM OF THE LOCKUP AGREEMENT, EXCEPT IN ACCORDANCE WITH THE TERMS THEREOF.”

 

4.3             
Additional Shares or Substituted Securities. In the event of the declaration of a share dividend, the declaration
of an extraordinary dividend payable in a form other than shares, a spin-off, a share combination or division, an adjustment in
conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding issued shares without receipt
of consideration, any new, substituted or additional securities or other property which are by reason of such transaction distributed
with respect to any Shares subject to this Section 4 or into which such Shares thereby become convertible shall immediately be
subject to this Section 4. Appropriate adjustments to reflect the distribution of such securities or property shall be made to
the number and/or class of Shares subject to this Section 4.

 

5.                 
Other Agreements.

 

5.1             
Further Assurances. The Purchaser agrees to execute such further instruments and to take such further action as may
reasonably be necessary to carry out the intent of this Agreement.

 

5.2             
Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be addressed
to the receiving party’s address set forth on the first page of this Agreement or to such other address as a party may designate
by notice hereunder, and shall be either (a) delivered by hand, (b) sent by overnight courier, or (c) sent by certified mail, return
receipt requested, postage prepaid. All notices, requests, consents and other communications hereunder shall be deemed to have
been given either (i) if by hand, at the time of the delivery thereof to the receiving party at the address of such party set forth
above, (ii) if sent by overnight courier, on the next business day following the day such notice is delivered to the courier service,
or (iii) if sent by certified mail, on the (5th) business day following the day such mailing is made.

 

5.3             
Entire Agreement. This Agreement, together with (i) the Lockup Agreement of even date herewith among the Company,
the Purchaser and Clinton Magnolia Master Fund, Ltd. and (ii) the Amended and Restated Registration Rights Agreement to be entered
into in connection with the consummation of the Proposed Business Combination, embodies the entire agreement and understanding
between the Purchaser and the Company with respect to the subject matter hereof and supersedes all prior oral or written agreements
and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any
kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and
provisions of this Agreement.

 

    	-5-

    	 

    

 

 

5.4             
Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written
agreement executed by all parties hereto.

 

5.5             
Waivers and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom
granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or
consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement,
whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which
it was given, and shall not constitute a continuing waiver or consent.

 

5.6             
Assignment. The rights and obligations under this Agreement may not be assigned by either party hereto without the
prior written consent of the other party.

 

5.7             
Benefit. All statements, representations, warranties, covenants and agreements in this Agreement shall be binding
on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing
in this Agreement shall be construed to create any rights or obligations except among the parties hereto, and no person or entity
shall be regarded as a third-party beneficiary of this Agreement.

 

5.8             
Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance
with and governed by the laws of the state of Delaware for agreements made and to be wholly performed within such state.

 

5.9             
Severability. In the event that any court of competent jurisdiction shall determine that any provision, or any portion
thereof, contained in this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed
limited to the extent that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect.
In the event that such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions
of this Agreement shall nevertheless remain in full force and effect.

 

5.10         
No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or
remedy under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right,
power or remedy of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other
or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party
hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a
party not expressly required under this Agreement shall entitle the party receiving such notice or demand to any other or further
notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving such notice or demand
to any other or further action in any circumstances without such notice or demand.

 

    	-6-

    	 

    

 

 

5.11         
Survival of Representations and Warranties. All representations and warranties made by the parties hereto in this
Agreement, shall survive the execution and delivery hereof and any investigations made by or on behalf of the parties.

 

5.12         
No Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other
financial consultant has acted on its behalf in connection with this Agreement in such a way as to create any liability on the
other; provided, however, that in the event of such a liability, each of the parties hereto agrees to indemnify and save the other
harmless from any claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent
claiming to have been employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against
any such claim.

 

5.13         
Headings and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience
of reference only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

5.14         
Counterparts. This Agreement may be executed in one or more counterparts, all of which when taken together shall
be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect
as if such facsimile or “.pdf” signature page were an original thereof.

 

6.                 
Voting of Shares. The Purchaser agrees to vote the Shares as well as any shares of Common Stock acquired on
a private placement basis or in the aftermarket in favor of the Proposed Business Combination (if such shares are eligible to be
voted).

 

[Signature Page Follows]

 

    	-7-

    	 

    

 

 

If the foregoing accurately
sets forth our understanding and agreement, please sign the enclosed copy of this agreement and return it to us.

 

	 	Very truly yours,
	 	 	 
	 	ROI ACQUISITION CORP.
	 	 	 
	 	By:	/s/ Joseph A. De Perio
	 	Name:	Joseph A. De Perio
	 	Title:	President

  

Accepted and agreed as of the date first set
forth above:

 

 

Clinton
MAGNOLIA Master Fund, LTD.

 

By: Clinton Group, Inc., its investment manager

 

By: /s/ Joseph A. De Perio

Name: Joseph A. De Perio

Title: Senior Portfolio Manager

 

    	 

    	 

    

 

 

Acknowledged and agreed as of

May 20, 2013:

 

everyware
global, inc.

 

By: /s/ Kerri Love

Name: Kerri Love

Title: Senior Vice President, General Counsel and Secretary

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