Document:

FORM OF

MANAGEMENT AND ADVISORY AGREEMENT

dated as of                            , 2014

between

NEW
SENIOR INVESTMENT GROUP INC.

and

FIG LLC

    	 

    	 

    

	 	 	 	 	 
	 	 	TABLE OF CONTENTS	 	 
	 	 	 	 	 
	SECTION 1.	 	DEFINITIONS	 	1
	 	 	 	 	 
	SECTION 2.	 	APPOINTMENT AND DUTIES OF THE MANAGER	 	2
	 	 	 	 	 
	SECTION 3.	 	DEVOTION OF TIME; ADDITIONAL ACTIVITIES	 	7
	 	 	 	 	 
	SECTION 4.	 	AGENCY	 	7
	 	 	 	 	 
	SECTION 5.	 	BANK ACCOUNTS	 	7
	 	 	 	 	 
	SECTION 6.	 	RECORDS; CONFIDENTIALITY	 	8
	 	 	 	 	 
	SECTION 7.	 	OBLIGATIONS OF MANAGER; RESTRICTIONS.	 	8
	 	 	 	 	 
	SECTION 8.	 	COMPENSATION	 	9
	 	 	 	 	 
	SECTION 9.	 	EXPENSES OF THE COMPANY	 	10
	 	 	 	 	 
	SECTION 10.	 	CALCULATIONS OF EXPENSES	 	12
	 	 	 	 	 
	SECTION 11.	 	LIMITS OF MANAGER RESPONSIBILITY; INDEMNIFICATION	 	12
	 	 	 	 	 
	SECTION 12.	 	NO JOINT VENTURE	 	12
	 	 	 	 	 
	SECTION 13.	 	TERM; TERMINATION	 	13
	 	 	 	 	 
	SECTION 14.	 	ASSIGNMENT	 	14
	 	 	 	 	 
	SECTION 15.	 	TERMINATION FOR CAUSE	 	14
	 	 	 	 	 
	SECTION 16.	 	ACTION UPON TERMINATION	 	15
	 	 	 	 	 
	SECTION 17.	 	RELEASE OF MONEY OR OTHER PROPERTY UPON WRITTEN REQUEST	 	16
	 	 	 	 	 
	SECTION 18.	 	NOTICES	 	16
	 	 	 	 	 
	SECTION 19.	 	BINDING NATURE OF AGREEMENT; SUCCESSORS AND ASSIGNS	 	17
	 	 	 	 	 
	SECTION 20.	 	ENTIRE AGREEMENT	 	17
	 	 	 	 	 
	SECTION 21.	 	CONTROLLING LAW	 	17
	 	 	 	 	 
	SECTION 22.	 	INDULGENCES, NOT WAIVERS	 	18
	 	 	 	 	 
	SECTION 23.	 	TITLES NOT TO AFFECT INTERPRETATION	 	18
	 	 	 	 	 
	SECTION 24.	 	EXECUTION IN COUNTERPARTS	 	18
	 	 	 	 	 
	SECTION 25.	 	PROVISIONS SEPARABLE	 	18
	 	 	 	 	 
	SECTION 26.	 	GENDER	 	18

 

    	 

    	 

    

MANAGEMENT AND ADVISORY AGREEMENT

THIS MANAGEMENT AND ADVISORY
AGREEMENT, is made as of                           , 2014 (the “Agreement”)
by and between NEW SENIOR INVESTMENT GROUP INC., a Delaware corporation (the “Company”),
and FIG LLC, a Delaware limited liability company (together with its permitted assignees, the “Manager”).

W I T N E S S E T H:

WHEREAS, the Company desires to avail itself
of the experience, sources of information, advice, assistance and certain facilities of or available to the Manager and to have
the Manager undertake the duties and responsibilities hereinafter set forth, on behalf of the Company, as provided in this Agreement;
and

WHEREAS, the Manager is willing to render
such services on the terms and conditions hereinafter set forth.

 

NOW THEREFORE, IN CONSIDERATION OF THE
MUTUAL AGREEMENTS HEREIN SET FORTH, THE PARTIES HERETO AGREE AS FOLLOWS:

 

SECTION 1.       DEFINITIONS.

The following terms have the meanings assigned
to them:

(a)          “Agreement”
means this Management and Advisory Agreement, as amended from time to time.

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

(c)          “Code”
means the Internal Revenue Code of 1986, as amended.

(d)          “Common
Share” means a share of capital stock of the Company
now or hereafter authorized as common voting stock of the Company.

(e)          “Distribution Date”
means                            , 2014.

(f)           “Exchange
Act” means the Securities Exchange Act of 1934, as
amended.

(g)          “Funds
from Operations” is as defined by the National Association of Real Estate Investment Trusts and means net income (computed
in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate assets, impairment charges of depreciable
real estate, plus real estate depreciation and amortization (excluding depreciation on non-real estate assets such as furniture,
fixtures and equipment), and after adjustments required to account for earnings attributable to unconsolidated partnerships and
joint ventures on the basis of FFO. Funds from Operations will be computed on an unconsolidated basis. The computation of Funds
from Operations may be adjusted by the Independent Directors upon reasonable request by the Manager based on changes in, or certain
applications of, GAAP.

    	1

    	 

    

 (h)          “Governing
Instruments” means, with regard to any entity, the articles
of incorporation and bylaws in the case of a corporation, certificate of limited partnership (if applicable) and the partnership
agreement in the case of a general or limited partnership, the articles of formation and the operating agreement in the case of
a limited liability company, or, in each case, comparable governing documents.

(i)         
 “Independent Directors”
means the members of the Board of Directors who are not officers or employees of the Manager.

(j)         
 “Investment Company Act”
means the Investment Company Act of 1940, as amended.

(k)          “Investments”
means the investments of the Company.

(l)        
  “Junior Share”
means a share of capital stock of the Company now or hereafter authorized or reclassified that has dividend rights, or rights
upon liquidation, winding up and dissolution, that are inferior or junior to the REIT Shares.

(m)        “Other
Non-Routine Items” means (i) write-offs of unamortized deferred financing fees, or additional costs, make-whole
payments, penalties or premiums incurred as the result of early repayment of debt, (ii) changes in the fair value of
contingent consideration and financial instruments, (iii) preferred stock redemption charges, (iv) gains or losses related to
litigation, claims and other contingencies, (v) losses on early extinguishment of debt, (vi) charges or income related to
changes in income tax valuation allowances, tax litigation or settlements, (vii) impairments or reversals of impairments,
(viii) changes in valuation allowances related to straight-line rent receivables, (ix) integration expenses related to
acquisitions and (x) other adjustments approved by the Independent Directors upon reasonable request by the Manager based on
adjustments made to Funds from Operations for the purpose of reporting to the public normalized Funds from Operations.

(n)         “Preferred Share”
means a share of capital stock of the Company now or hereafter authorized or reclassified that has dividend rights, or rights upon
liquidation, winding up and dissolution, that are superior or prior to the REIT Shares.

(o)         “REIT
Share” means a share of the Company’s Common Shares,
par value $0.01 per share. Where relevant in this Agreement, “REIT
Shares” includes shares of the Company’s Common
Shares, par value $0.01 per share, issued upon conversion of Preferred Shares or Junior Shares.

(p)         “Subsidiary”
means any subsidiary of the Company and any partnership, the general partner of which is the Company or any subsidiary of the Company
and any limited liability company, the managing member of which is the Company or any subsidiary of the Company.

    	2

    	 

    

SECTION 2.      
APPOINTMENT AND DUTIES OF THE MANAGER.

(a)          The Company hereby appoints the
Manager to manage the assets of the Company subject to the further terms and conditions set forth in this Agreement and the Manager
hereby agrees to use its commercially reasonable efforts to perform each of the duties set forth herein. The appointment of the
Manager shall be exclusive to the Manager except to the extent that the Manager otherwise agrees, in its sole and absolute discretion,
and except to the extent that the Manager elects, pursuant to the terms of this Agreement, to cause the duties of the Manager hereunder
to be provided by third parties.

(b)          The Manager, in its capacity as
manager of the assets and the day-to-day operations of the Company, at all times will be subject to the supervision of the Company’s
Board of Directors and will have only such functions and authority as the Company may delegate to it including, without limitation,
the functions and authority identified herein and delegated to the Manager hereby. The Manager will be responsible for the day-to-day
operations of the Company and will perform (or cause to be performed) such services and activities relating to the assets and operations
of the Company as may be appropriate, including, without limitation:

  (i)          serving as the Company’s consultant
with respect to the periodic review of the guidelines attached hereto as Schedule 1 (as may be modified from time to time with
the approval of a majority of the Independent Directors, the “Guidelines”);

  (ii)         investigation, analysis, valuation
and selection of investment opportunities;

  (iii)        with respect to prospective Investments
by the Company and dispositions of Investments, conducting negotiations with brokers, sellers and purchasers and their respective
agents and representatives, investment bankers and owners of privately and publicly held companies;

  (iv)        engaging and supervising independent
contractors that provide services relating to the Company or the Investments, including, but not limited to, investment banking,
legal or regulatory advisory, tax advisory, accounting advisory, securities brokerage, property management/operations, property
condition, real estate and leasing advisory and brokerage, and other financial and consulting services as the Manager determines
from time to time is advisable;

  (v)         negotiating for the purchase, sale,
exchange or other disposition of any Investments;

  (vi)        coordinating and managing operations
of any joint venture or co-investment interests held by the Company and conducting all matters with the joint venture or co-investment
partners;

  (vii)       coordinating and supervising all
property managers, tenant operators, leasing agents and developers for the administration, leasing, management and/or development
of any of the Investments;

 

  (viii)      providing executive and administrative
personnel, office space and office services required in rendering services to the Company;

    	3

    	 

    

  (ix)        conducting periodic on-site visits
to properties to inspect the physical condition and operations of the properties and to evaluate the performance of a tenant or
operator of its duties;

  (x)        administering the day-to-day operations
of the Company and performing and supervising the performance of such other administrative functions necessary in the management
of the Company as may be agreed upon by the Manager and the Board of Directors, including, without limitation, the collection of
revenues and the payment of the Company’s debts and obligations and maintenance of appropriate computer services to perform
such administrative functions;

  (xi)       communicating with the past, current
and prospective holders of any equity or debt securities of the Company as required to satisfy the reporting and other requirements
of any governmental bodies or agencies or trading markets and to maintain effective relations with such holders;

  (xii)      counseling the Company in connection
with policy decisions to be made by the Board of Directors;

  (xiii)     evaluating and recommending to
the Board of Directors modifications to any hedging strategies in effect on the date hereof and engaging in hedging activities
consistent with the Guidelines;

  (xiv)      counseling the Company regarding
the maintenance of its status as a real estate investment trust (“REIT”) and monitoring compliance with the
various REIT qualification tests and other rules set out in the Code and Treasury Regulations thereunder;

  (xv)       counseling the Company regarding
the maintenance of its exemption from the Investment Company Act and monitoring compliance with the requirements for maintaining
an exemption from that Act;

  (xvi)       assisting the Company in developing
criteria that are specifically tailored to the Company’s investment objectives and making available to the Company its knowledge
and experience with respect to its target assets;

  (xvii)      monitoring the operating performance
of the Investments and providing periodic reports with respect thereto to the Board of Directors, including comparative information
with respect to such operating performance, valuation and budgeted or projected operating results;

  (xviii)     investing and re-investing any
moneys and securities of the Company (including investing in short-term Investments pending investment in Investments, payment
of fees, costs and expenses, or payments of dividends or distributions to stockholders and partners of the Company) and advising
the Company as to its capital structure and capital raising;

  (xix)     causing the Company to retain qualified
accountants and legal counsel, as applicable, to assist in developing appropriate accounting procedures, compliance procedures
and testing systems with respect to financial reporting obligations and compliance with the provisions of the Code applicable to
REITs;

    	4

    	 

    

  (xx)        causing the Company to qualify to
do business in all applicable jurisdictions and to obtain and maintain all appropriate licenses;

  (xxi)       assisting the Company in complying
with all regulatory requirements applicable to the Company in respect of its business activities, including preparing or causing
to be prepared all financial statements required under applicable regulations and contractual undertakings and all reports and
documents required under the Exchange Act;

  (xxii)      taking all necessary actions to
enable the Company to make required tax filings and reports, including soliciting stockholders for required information to the
extent provided by the provisions of the Code applicable to REITs;

  (xxiii)     handling and resolving all claims,
disputes or controversies (including all litigation, arbitration, settlement or other proceedings or negotiations) in which the
Company may be involved or to which the Company may be subject arising out of the Company’s day-to-day operations, subject
to such limitations or parameters as may be imposed from time to time by the Board of Directors;

  (xxiv)     using commercially reasonable efforts
to cause expenses incurred by or on behalf of the Company to be within any expense guidelines set by the Board of Directors from
time to time;

  (xxv)      performing such other services as
may be required from time to time for management and other activities relating to the assets of the Company as the Board of Directors
and Manager shall agree from time to time or as the Manager shall deem appropriate under the particular circumstances;

  (xxvi)     using commercially reasonable efforts
to cause the Company to comply with all applicable laws; and

  (xxvii)    traveling in connection with the
performance of any services or activities relating to our assets, operations or investment analysis.

Without limiting the foregoing, the Manager
will perform portfolio management services (the “Portfolio
Management Services”) on behalf of the Company with respect
to the Investments. Such services will include, but not be limited to, consulting with the Company on the purchase and sale of,
and other investment opportunities in connection with, the Company’s portfolio of assets; the collection of information and
the submission of reports pertaining to the Company’s assets, interest rates and general economic conditions; periodic review
and evaluation of the performance of the Company’s portfolio of assets; acting as liaison between the Company and banking,
mortgage banking, investment banking and other parties with respect to the purchase, financing and disposition of assets; and other
customary functions related to portfolio management. Additionally, the Manager will perform monitoring services (the “Monitoring
Services”) on behalf of the Company with respect to any
services provided by third parties, which the Manager determines are material to the performance of the business.

    	5

    	 

    

(c)         The
Manager may enter into agreements with other parties, including its affiliates; provided, that any such agreements entered
into with affiliates of the Manager shall be (A) on terms no more favorable to such affiliate than could be obtained from a
third party on an arm’s-length basis and (B) to the extent the same do not fall within the provisions of the Guidelines,
approved by a majority of the Independent Directors to the extent required by any Board policy.

(d)         The Manager may retain, for and
on behalf, and at the sole cost and expense, of the Company, such services of accountants, legal counsel, tax counsel, appraisers,
insurers, brokers or business developers, transfer agents, registrars, developers, investment banks, financial advisors, underwriters,
asset managers, banks and other lenders and others as the Manager deems necessary or advisable in connection with the management
and operations of the Company. Notwithstanding anything contained herein to the contrary, the Manager shall have the right to cause
any such services to be rendered by its employees or affiliates (which, for the avoidance of doubt, includes any employees, consultants
or agents of any affiliate of the Manager). The Company shall pay or reimburse the Manager or its affiliates performing such services
for the cost thereof; provided, that such costs and reimbursements are no greater than those which would be payable to outside
professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis.

(e)         As frequently as the Manager may
deem necessary or advisable, or at the direction of the Board of Directors, the Manager shall, at the sole cost and expense of
the Company, prepare, or cause to be prepared, with respect to any Investment (i) an appraisal prepared by an independent
real estate appraiser; (ii) reports and information on the Company’s operations and asset performance and (iii) other
information reasonably requested by the Company.

(f)         The Manager shall prepare, or cause
to be prepared, at the sole cost and expense of the Company, all reports, financial or otherwise, with respect to the Company reasonably
required by the Board of Directors in order for the Company to comply with its Governing Instruments or any other materials required
to be filed with any governmental body or agency, and shall prepare, or cause to be prepared, all materials and data necessary
to complete such reports and other materials including, without limitation, an annual audit of the Company’s books of account
by a nationally recognized independent accounting firm.

(g)         The Manager shall prepare regular
reports for the Board of Directors to enable the Board of Directors to review the Company’s acquisitions, portfolio composition
and characteristics, credit quality, performance and compliance with the Guidelines and any policies approved by the Board of Directors.

(h)         Notwithstanding anything contained
in this Agreement to the contrary, except to the extent that the payment of additional monies is proven by the Company to have
been required as a direct result of the Manager’s acts or omissions which result in the right of the Company to terminate
this Agreement pursuant to Section 15 of this Agreement, the Manager shall not be required to expend money (“Excess
Funds”) in excess of that contained in any applicable Company Account (as herein defined) or otherwise made available
by the Company to be expended by the Manager hereunder. Failure of the Manager to expend Excess Funds out-of-pocket shall not give
rise or be a contributing factor to the right of the Company under Section 13(a) of this Agreement to terminate this Agreement
due to the Manager’s unsatisfactory performance.

    	6

    	 

    

(i)         In performing its duties under this
Section 2, the Manager shall be entitled to rely reasonably on qualified experts hired by the Manager.

SECTION 3.      DEVOTION OF TIME; ADDITIONAL ACTIVITIES.

(a)         The Manager will provide a management
team, including a Chief Executive Officer and a Chief Financial Officer of the Company, to provide the management services to be
provided by the Manager to the Company hereunder. The members of such team shall devote such of their time to the management of
the Company as is reasonably necessary and appropriate, commensurate with the level of activity of the Company from time to time.

(b)         Except to the extent set forth in
clause (a) above, nothing herein shall prevent the Manager or any of its affiliates or any of the officers and employees of any
of the foregoing from engaging in other businesses or from rendering services of any kind to any other person or entity, including
investment in, or advisory service to others investing in, any type of real estate or real estate related investment, including
investments which meet the principal investment objectives of the Company.

(c)         Managers, members, partners, officers,
employees and agents of the Manager or affiliates of the Manager may serve as directors, officers, employees, agents, nominees
or signatories for the Company or any Subsidiary, to the extent permitted by their Governing Instruments, as from time to time
amended, or by any resolutions duly adopted by the Board of Directors pursuant to the Company’s Governing Instruments. When
executing documents or otherwise acting in such capacities for the Company, such persons shall use their respective titles in the
Company.

SECTION 4.     AGENCY.

The Manager shall act as agent of the Company
in making, acquiring, financing and disposing of Investments, disbursing and collecting the Company’s funds, paying the debts
and fulfilling the obligations of the Company, supervising the performance of professionals engaged by or on behalf of the Company
and handling, prosecuting and settling any claims of or against the Company, the Board of Directors, holders of the Company’s
securities or the Company’s representatives or properties.

 

SECTION 5.     BANK ACCOUNTS.

The Manager may establish and maintain
one or more bank accounts in the name of the Company or any Subsidiary (any such account, a “Company
Account”), and may collect and deposit funds into any
such Company Account or Company Accounts, and disburse funds from any such Company Account or Company Accounts; and the Manager
shall from time to time render appropriate accountings of such collections and payments to the Board of Directors and, upon request,
to the auditors of the Company or any Subsidiary.

    	7

    	 

    

SECTION 6.     RECORDS;
CONFIDENTIALITY.

The Manager shall maintain appropriate
books of accounts and records relating to services performed under this Agreement, and such books of account and records shall
be accessible for inspection by representatives of the Company at any time during normal business hours upon ten (10) business
days advance written notice.

The Manager shall keep confidential any
and all non-public information obtained in connection with the services rendered under this Agreement and shall not disclose any
such information to any person, except to (i) its affiliates, members, officers, directors, employees, agents, representatives
or advisors who have a need to know such information in order to carry out their duties to the Company and who have a duty to the
Manager or to the Company to keep such information confidential, (ii) to appraisers, financing sources and others in the ordinary
course of the Manager’s business for the purpose of rendering services hereunder, provided that such persons agree to keep
such information confidential, (iii) in connection with any governmental or regulatory requests of the Manager and any of its affiliates,
members, officers, directors, employees, agents, representatives or advisors, (v) as required by applicable law or regulation or
(vi) with the prior written consent of the Board of Directors.

SECTION 7.    OBLIGATIONS OF MANAGER; RESTRICTIONS.

(a)         The Manager shall require each seller
or transferor of Investment assets to the Company to make such representations and warranties regarding such assets as may, in
the sole judgment made in good faith of the Manager, be necessary and appropriate. In addition, the Manager shall take such other
action as it deems necessary or appropriate with regard to the protection of the Investments.

(b)         The Manager shall refrain from any
action that, in its sole judgment made in good faith, (i) is not in compliance with the Guidelines, (ii) can reasonably be expected
to result in the loss of the Company’s status as a REIT under the Code or (iii) would violate any law, rule or regulation
of any governmental body or agency having jurisdiction over the Company or any Subsidiary or that would otherwise not be permitted
by such entity’s Governing Instruments. If the Manager is ordered to take any such action by the Board of Directors, the
Manager shall promptly notify the Board of Directors of the Manager’s judgment that such action would adversely affect such
status or violate any such law, rule or regulation or the Governing Instruments. Notwithstanding the foregoing, the Manager, its
directors, officers, stockholders and employees shall not be liable to the Company or any Subsidiary, the Board of Directors, or
the Company’s or any Subsidiary’s stockholders or partners for any act or omission by the Manager, its directors, officers,
stockholders or employees except as provided in Section 11 of this Agreement.

(c)         The Manager shall at all times during
the term of this Agreement (including the Original Term and any renewal term) maintain a tangible net worth equal to or greater
than $1,000,000. Additionally, during such period the Manager shall maintain “errors and omissions” insurance coverage
and other insurance coverage which is customarily carried by asset and investment managers performing functions similar to those
of the Manager under this Agreement with respect to assets similar to the assets of the Company, in an amount which is comparable
to that customarily maintained by other managers or servicers of similar assets.

    	8

    	 

    

 

SECTION 8.       COMPENSATION.

(a)         During the term of this Agreement
(as the same may be extended from time to time), the Manager will receive an annual management fee (the “Management Fee”)
equal to 1.50% of the Company’s “Gross Equity.” The Management Fee shall be calculated and paid monthly in arrears
based upon the weighted daily average of the Gross Equity of the Company for such month. The term “Gross Equity” for
any period means (A) the sum of (i) the “Total Equity,” plus (ii) the value of contributions made by partners other
than the Company, from time to time, to the capital of any Subsidiary (reduced proportionately in the case of a Subsidiary to the
extent that the Company owns, directly or indirectly, less than 100% of the equity interests in such Subsidiary), less (B) any
capital dividends or capital distributions (calculated without regard to depreciation and amortization) made by the Company to
its stockholders or, without duplication, by any Subsidiary to its stockholders, partners or other equity holders. As used herein,
the term “Total Equity” shall mean (i) the equity invested by Newcastle Investment Corp. in the assets of the Company
as of the Distribution Date, plus (ii) the total net proceeds to the Company from any common or preferred equity capital hereafter
raised by the Company or any Subsidiary of the Company (exclusive, with respect to any Subsidiary, of capital of such Subsidiary
consisting of a capital contribution or other form of capital investment made by the Company or another Subsidiary of the Company).

(b)         The Manager shall compute each installment
of the Management Fee within 15 days after the end of the calendar month with respect to which such installment is payable, and
such installment shall be due and payable no later than 20 days after the end of the calendar month with respect to which such
installment is payable. A copy of the computations made by the Manager to calculate such installment shall, for informational purposes
only and subject in any event to Section 13(a) of this Agreement, promptly be delivered to the Board of Directors within 90
days after the end of each calendar year.

(c)         The Management Fee is subject to
adjustment pursuant to and in accordance with the provisions of Section 13(a) of this Agreement.

(d)         The Board of Directors may, by written
notice to the Manager delivered ten (10) days prior to the date on which any payment of the Incentive Compensation (as defined
below) is payable, request that the Manager accept all or a portion of such payment in the form of issued Common Shares, which
notice shall specify the amount of the payment of the Incentive Compensation, the amount thereof which the Company intends to pay
in cash, if any, and the amount thereof which the Company intends to pay in the form of such Common Shares in the number of such
shares as determined by the Board of Directors. Within five (5) days following receipt of said notice, the Manager shall notify
the Company in writing, such election to be made by the Manager in its sole discretion, whether it will accept such portion of
such payment in the form of such shares and in such number of such shares.

    	9

    	 

    

(e)         In addition to the Management Fee
otherwise payable hereunder, the Company shall pay the Manager on a quarterly basis annual incentive compensation (“Incentive
Compensation”) on a cumulative, but not compounding, basis, in an amount equal to the product of (A) 25% of the dollar amount
by which (1)(a) the Funds from Operations (before such payment) of the Company per REIT Share (based on the weighted average number
of REIT Shares outstanding), plus (b) gains (or losses) from sales of property, plus (c) all internal and external acquisition-related
expenses, plus (d) unconsummated transaction expenses, plus (e) Other Non-Routine Items, in each case per REIT Share (based on
the weighted average number of REIT Shares outstanding), exceed (2) an amount equal to (a) the weighted average value per REIT
Share of the equity invested by Newcastle Investment Corp. as of the Distribution Date, and the prices per REIT Share at any subsequent
offerings by the Company (adjusted for any prior capital dividends or capital distributions) multiplied by (b) a simple interest
rate of ten percent (10%) per annum multiplied by (B) the weighted average number of REIT Shares outstanding during such period.
The obligation of the Company to pay the Incentive Compensation shall survive the expiration or earlier termination of this Agreement,
subject to Section 16(b).

(f)         Commencing from the Distribution
Date, upon the successful completion of an offering of Common Shares by the Company, the Company shall pay and issue to the Manager
options to purchase Common Shares equal to 10% of the number of Common Shares sold in the offering with an exercise price equal
to the price per Common Share, as the case may be, paid by the public or other ultimate purchaser in the offering. For the avoidance
of doubt, the distribution on the Distribution Date shall not constitute an “offering” for purposes of this Section
8(f).

SECTION 9.     EXPENSES OF THE COMPANY.

The Company shall pay all of its expenses
and shall reimburse the Manager or (for the avoidance of doubt) its affiliates for documented expenses of the Manager or its affiliates
incurred on its behalf (collectively, the “Expenses”).
Expenses include all costs and expenses which are expressly designated elsewhere in this Agreement as the Company’s, together
with the following:

(a)         expenses in connection with the
issuance and transaction costs incident to the acquisitions, disposition and financing of Investments;

(b)         travel and other out-of-pocket expenses
incurred by managers, officers, employees and agents of the Manager or its affiliates in connection with the sourcing, underwriting,
purchase, financing, refinancing, sale or other disposition, or asset management of an Investment;

(c)         costs of legal, accounting, tax,
auditing, underwriting, asset management, sourcing, administrative and other services rendered for the Company by providers retained
by the Manager or its affiliates or, if provided by the Manager’s or any affiliate’s employees, consultants or agents,
in amounts which are no greater than those which would be payable to outside professionals or consultants engaged to perform such
services pursuant to agreements negotiated on an arm’s-length basis;

    	10

    	 

    

(d)         the compensation and expenses of
the Independent Directors and the cost of liability insurance to indemnify the Company’s directors and officers;

(e)         compensation and expenses of the
Company’s custodian and transfer agent, if any;

(f)         costs associated with the establishment
and maintenance of any credit facilities and other indebtedness of the Company (including commitment fees, legal fees, closing
and other costs) or any securities offerings of the Company;

(g)         costs associated with any computer
software or hardware that is used for the Company;

(h)         costs and expenses incurred in contracting
with third parties, including affiliates of the Manager, in accordance with the terms of the Agreement;

(i)         all other costs and expenses relating
to the Company’s business and investment operations, including, without limitation, the costs and expenses of sourcing, underwriting,
acquiring, financing, owning, protecting, maintaining, developing, operating and disposing of Investments, including appraisal,
reporting, audit and legal fees;

(j)         all insurance costs incurred in
connection with the operation of the Company’s business except for the costs attributable to the insurance that the Manager
elects to carry for itself and its employees;

(k)         expenses relating to any office
or office facilities maintained for the Company or Investments separate from the office or offices of the Manager;

(l)         expenses connected with the payments
of interest, dividends or distributions in cash or any other form made or caused to be made by the Board of Directors to or on
account of the holders of securities of the Company or its Subsidiaries, including, without limitation, in connection with any
dividend reinvestment plan;

(m)         expenses connected with communications
to holders of securities of the Company or its Subsidiaries and other bookkeeping and clerical work necessary in maintaining relations
with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or
agencies, including, without limitation, all costs of preparing and filing required reports with the Securities and Exchange Commission,
the costs payable by the Company to any transfer agent and registrar in connection with the listing and/or trading of the Company’s
stock on any exchange, the fees payable by the Company to any such exchange in connection with its listing, costs of preparing,
printing and mailing the Company’s annual report to its shareholders and proxy materials with respect to any meeting of the
shareholders of the Company; and

(n)         all other expenses actually incurred
by the Manager which are reasonably necessary for the performance by the Manager of its duties and functions under this Agreement.

    	11

    	 

    

Without regard to the amount of
compensation received under this Agreement by the Manager, the Manager shall bear the following expenses, except as expressly set
forth herein: (i) wages and salaries of the Manager’s officers and employees; (ii) rent attributable to the space
occupied by the Manager; and (iii) all other “overhead” expenses of the Manager.

SECTION 10.  CALCULATIONS OF EXPENSES.

The Manager shall prepare a statement documenting
the Expenses of the Company and the Expenses incurred by the Manager on behalf of the Company during each calendar month, and shall
deliver such statement to the Company in the ordinary course of periodic accounting. Expenses incurred by the Manager on behalf
of the Company shall be reimbursed monthly to the Manager on the later of (i) the first business day of the month immediately following
the date of delivery of such statement, and (ii) 10 business days after the date of delivery of such statement.

 

SECTION 11.    LIMITS OF MANAGER RESPONSIBILITY; INDEMNIFICATION.

(a)         The Manager assumes no responsibility
under this Agreement other than to render the services called for under this Agreement in good faith and shall not be responsible
for any action of the Board of Directors in following or declining to follow any advice or recommendations of the Manager, including
as set forth in Section 7(b) of this Agreement. The Manager, its members, managers, officers and employees will not be liable
to the Company or any Subsidiary, to the Board of Directors, or the Company’s or any Subsidiary’s stockholders or partners
for any acts or omissions by the Manager, its members, managers, officers or employees, pursuant to or in accordance with this
Agreement, except by reason of acts constituting bad faith, willful misconduct, gross negligence or reckless disregard of the Manager’s
duties under this Agreement. The Company shall, to the full extent lawful, reimburse, indemnify and hold the Manager, its members,
managers, officers and employees, sub-advisers and each other Person, if any, controlling the Manager (each, an “Indemnified
Party”), harmless of and from any and all expenses, losses,
damages, liabilities, demands, charges and claims of any nature whatsoever (including attorneys’ fees) in respect of or arising
from any acts or omissions of such Indemnified Party made in good faith in the performance of the Manager’s duties under
this Agreement and not constituting such Indemnified Party’s bad faith, willful misconduct, gross negligence or reckless
disregard of the Manager’s duties under this Agreement.

(b)         The Manager shall, to the full extent
lawful, reimburse, indemnify and hold the Company, its shareholders, directors, officers and employees and each other Person, if
any, controlling the Company (each, a “Company Indemnified
Party”), harmless of and from any and all expenses, losses,
damages, liabilities, demands, charges and claims of any nature whatsoever (including attorneys’ fees) in respect of or arising
from the Manager’s bad faith, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement.

SECTION 12.    NO JOINT VENTURE.

Nothing in this Agreement shall be construed
to make the Company and the Manager partners or joint venturers or impose any liability as such on either of them.

    	12

    	 

    

SECTION 13.    TERM; TERMINATION.

(a)         Unless terminated in accordance
with Section 14 or Section 15, this Agreement shall be in effect until the date that is ten (10) years after the date hereof
(the “Original Term”). At the expiration of the Original Term and each Renewal Term (as defined below), this Agreement
shall be deemed renewed automatically each year for an additional one-year period (each, a “Renewal Term”) unless (i) a
majority consisting of at least two-thirds of the Independent Directors or a simple majority of the holders of outstanding Common
Shares, agree that there has been unsatisfactory performance that is materially detrimental to the Company or (ii) a simple
majority of the Independent Directors agree that the Management Fee payable to the Manager is unfair; provided, that the Company
shall not have the right to terminate this Agreement under clause (ii) foregoing if the Manager agrees to continue to provide
the services under this Agreement at a fee that a simple majority of Independent Directors have reasonably determined to be fair.
If the Company elects not to renew this Agreement at the expiration of the Original Term or any Renewal Term, the Company shall
deliver to the Manager prior written notice (the “Termination
Notice”) of the Company’s intention not to renew
this Agreement based upon the terms set forth in this Section 13(a) of this Agreement not less than 60 days prior to the expiration
of the then existing term. If the Company so elects not to renew this Agreement, the Company shall designate the date (the “Effective
Termination Date”), not less than 60 days from the date
of the notice, on which the Manager shall cease to provide services under this Agreement, and this Agreement shall terminate on
such date; provided, however, that in the event that such Termination Notice is given in connection with a determination that the
compensation payable to the Manager is unfair, the Manager shall have the right to renegotiate the Management Fee by delivering
to the Company, no fewer than forty-five (45) days prior to the prospective Effective Termination Date, written notice (any
such notice, a “Notice of Proposal to Negotiate”)
of its intention to renegotiate its compensation under this Agreement. Thereupon, the Company and the Manager shall endeavor to
negotiate in good faith the revised compensation payable to the Manager under this Agreement. Provided that the Manager and the
Company agree to a revised Management Fee (or other compensation structure) within 45 days following the receipt of the Notice
of Proposal to Negotiate, the Termination Notice shall be deemed of no force and effect and this Agreement shall continue in full
force and effect on the terms stated in this Agreement, except that the Management Fee shall be the revised Management Fee (or
other compensation structure) then agreed upon by the parties to this Agreement. The Company and the Manager agree to execute and
deliver an amendment to this Agreement setting forth such revised Management Fee promptly upon reaching an agreement regarding
same. In the event that the Company and the Manager are unable to agree to a revised Management Fee during such 45 day period,
this Agreement shall terminate, such termination to be effective on the date which is the later of (A) ten (10) days
following the end of such 45 day period and (B) the Effective Termination Date originally set forth in the Termination Notice.

(b)         In the event that this Agreement
is terminated in accordance with the provisions of Section 13(a) of this Agreement, the Company shall pay to the Manager,
on the date on which such termination is effective, a termination fee (the “Termination
Fee”) equal to the amount of the Management Fee earned
by the Manager during the period consisting of the twelve (12) full, consecutive calendar months immediately preceding such
termination. The obligation of the Company to pay the Termination Fee shall survive the termination of this Agreement.

    	13

    	 

    

(c)         No later than sixty (60) days
prior to the expiration of the Original Term or any Renewal Term, the Manager may deliver written notice to the Company informing
it of the Manager’s intention not to renew the term, whereupon the term of this Agreement shall not be renewed and extended,
and this Agreement shall terminate effective on the expiration date of this Agreement next following the delivery of such notice.

(d)         If this Agreement is terminated
pursuant to this Section 13, such termination shall be without any further liability or obligation of either party to the
other, except as provided in Section 13(b) and Section 16 of this Agreement. In addition, Section 11 of this Agreement
shall survive termination of this Agreement.

 

SECTION 14.    ASSIGNMENT.

(a)         Except as set forth in Section 14(b)
of this Agreement, this Agreement shall terminate automatically in the event of its assignment, in whole or in part, by the Manager,
unless such assignment is consented to in writing by the Company with the consent of a majority of the Independent Directors; provided,
however, that no such consent shall be required in the case of an assignment by the Manager to an entity whose day-to-day business
and operations are managed and supervised by Mr. Wesley R. Edens (the “Principal”).
Any such permitted assignment shall bind the assignee under this Agreement in the same manner as the Manager is bound, and the
Manager shall be liable to the Company for all errors or omissions of the assignee under any such assignment. In addition, the
assignee shall execute and deliver to the Company a counterpart of this Agreement naming such assignee as Manager. This Agreement
shall not be assigned by the Company without the prior written consent of the Manager, except in the case of assignment by the
Company to another REIT or other organization which is a successor (by merger, consolidation or purchase of assets) to the Company,
in which case such successor organization shall be bound under this Agreement and by the terms of such assignment in the same manner
as the Company is bound under this Agreement.

(b)         Notwithstanding any provision of
this Agreement, the Manager may subcontract and assign any or all of its responsibilities under Section 2 of this Agreement to
any of its affiliates in accordance with the terms of this Agreement, or if approved by the Board, applicable to any such subcontract
or assignment, and the Company hereby consents to any such assignment and subcontracting. In addition, provided that the Manager
provides prior written notice to the Company for informational purposes only, nothing contained in this Agreement shall preclude
any pledge, hypothecation or other transfer of any amounts payable to the Manager under this Agreement.

SECTION 15.    TERMINATION FOR CAUSE.

(a)         The
Company may terminate this Agreement effective upon sixty (60) days prior written notice of termination from the Company to
the Manager, without payment of any Termination Fee, if any act of fraud, misappropriation of funds, or embezzlement against the
Company or other willful violation of this Agreement by the Manager in its corporate capacity (as distinguished from the acts of
any employees of the Manager which are taken without the complicity of the Principal) under this Agreement or in the event of any
gross negligence on the part of the Manager in the performance of its duties under this Agreement.

    	14

    	 

    

(b)         The Manager may terminate this Agreement
effective upon sixty (60) days prior written notice of termination to the Company in the event that the Company shall default
in the performance or observance of any material term, condition or covenant contained in this Agreement and such default shall
continue for a period of 30 days after written notice thereof specifying such default and requesting that the same be remedied
in such 30 day period.

SECTION 16.    ACTION UPON TERMINATION.

(a)         From and after the effective date
of termination of this Agreement, pursuant to Sections 13, 14, or 15 of this Agreement, the Manager shall not be entitled to compensation
for further services under this Agreement, but shall be paid all compensation accruing to the date of termination and, if terminated
pursuant to Section 13 or Section 15(b), the applicable Termination Fee. Upon such termination, the Manager shall forthwith:

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

 (ii)        deliver to the Board of Directors
a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering
the period following the date of the last accounting furnished to the Board of Directors with respect to the Company or a Subsidiary;
and

 (iii)    
  deliver to the Board of Directors all property and documents of the Company or any Subsidiary then in the custody
of the Manager.

(b)         In the event that this Agreement
is terminated, the Company shall have the option, to be exercised by written notice to the Manager within ten (10) days following
such termination, to purchase from the Manager the right of the Manager to receive the Incentive Compensation. In exchange therefor
the Company will be obligated to pay the Manager a cash purchase price (the “Cash
Price”) equal to the amount of the Incentive Compensation
that would be paid to the Manager if all of the Company’s assets were sold for cash at their then current fair market value
(taking into account, among other things, expected future performance of the underlying investments, the “Fair
Market Value”). In the event that the Company does not
elect to exercise such option to purchase the Incentive Compensation, the Manager shall have the right to require the Company to
do so at the Cash Price by delivering to the Company written notice within twenty (20) days following such termination. The
Fair Market Value shall be determined by independent appraisal to be conducted by a nationally recognized appraisal firm mutually
agreed upon by the Company and the Manager. If the Company and the Manager are unable to agree upon an appraisal firm, then each
of the Company and the Manager shall choose an independent appraisal firm to conduct an appraisal. In such event, (i) if the
appraisals prepared by the two appraisers so selected are the same or differ by an amount that does not exceed 20% of the higher
of the two appraisals, the Fair Market Value will be deemed to be the average of such appraisals, and (ii) if the two appraisals
differ by more than 20% of the higher of the two appraisals, the two appraisers together shall select a third nationally recognized
appraisal firm to conduct an appraisal. If the two appraisers are unable to agree as to the identity of such third appraiser, either
of the Manager and the Company may request that the American Arbitration Association (“AAA”)
select the third appraiser, which shall then be selected by the AAA. The Fair Market Value will then be deemed to be the amount
determined by such third appraiser, but in no event less than the lower or more than the higher of the first two appraisals made
under this Section 16(b).

    	15

    	 

    

SECTION 17.    RELEASE OF MONEY OR OTHER PROPERTY
UPON WRITTEN REQUEST.

The Manager agrees that any money or other
property of the Company or Subsidiary held by the Manager under this Agreement shall be held by the Manager as custodian for the
Company or Subsidiary, and the Manager’s records shall be appropriately marked clearly to reflect the ownership of such
money or other property by the Company or such Subsidiary. Upon the receipt by the Manager of a written request signed by a duly
authorized officer of the Company requesting the Manager to release to the Company or any Subsidiary any money or other property
then held by the Manager for the account of the Company or any Subsidiary under this Agreement, the Manager shall release such
money or other property to the Company or any Subsidiary within a reasonable period of time, but in no event later than sixty
(60) days following such request. The Manager shall not be liable to the Company, any Subsidiary, the Independent Directors,
or the Company’s or a Subsidiary’s stockholders or partners for any acts performed or omissions to act by the Company
or any Subsidiary in connection with the money or other property released to the Company or any Subsidiary in accordance with
the first sentence of this Section 17. The Company and any Subsidiary shall indemnify the Manager and its members, managers,
officers and employees against any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever,
which arise in connection with the Manager’s release of such money or other property to the Company or any Subsidiary in
accordance with the terms of this Section 17. Indemnification pursuant to this provision shall be in addition to any right
of the Manager to indemnification under Section 11 of this Agreement. 

 

SECTION 18.     NOTICES.

Unless expressly provided otherwise in
this Agreement, all notices, requests, demands and other communications required or permitted under this Agreement shall be in
writing and shall be deemed to have been duly given, made and received when delivered against receipt or upon actual receipt of
(i) personal delivery, (ii) delivery by reputable overnight courier, (iii) delivery by facsimile transmission or
email against answerback, (iv) delivery by registered or certified mail, postage prepaid, return receipt requested, addressed
as set forth below:

    	16

    	 

    

(a)       If to the Company:

New Senior Investment Group Inc.

c/o FIG LLC

1345 Avenue of the Americas

46th Floor

New York, New York 10105

Attention: Mr. Cameron D. MacDougall

(b)      If to the Manager:

FIG LLC

1345 Avenue of the Americas

46th Floor

New York, New York 10105

Attention: Mr. Randal A. Nardone

Either party may alter the address to which communications
or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section 18 for
the giving of notice.

SECTION 19.       BINDING NATURE OF AGREEMENT; SUCCESSORS
AND ASSIGNS.

This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and permitted assigns
as provided in this Agreement.

SECTION 20.       ENTIRE AGREEMENT.

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

SECTION 21.       CONTROLLING
LAW.

This Agreement and all questions relating
to its validity, interpretation, performance and enforcement shall be governed by and construed, interpreted and enforced in accordance
with the laws of the State of New York, notwithstanding any New York or other conflict-of-law provisions to the contrary.

    	17

    	 

    

SECTION 22.       INDULGENCES, NOT WAIVERS.

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

SECTION 23.       TITLES NOT TO AFFECT INTERPRETATION.

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

SECTION 24.       EXECUTION IN COUNTERPARTS.

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

SECTION 25.       PROVISIONS SEPARABLE.

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

SECTION 26.       GENDER.

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

    	18

    	 

    

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

	 	 	 	 
	 	COMPANY:
	 	 
	 	NEW SENIOR INVESTMENT GROUP INC.,
	 	a Delaware corporation
	 	 
	 	By:	 
	 	 	Name:	Cameron D. MacDougall
	 	 	Title:	Secretary
	 	 	 
	 	MANAGER:
	 	 
	 	FIG LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	 
	 	 	Name: 	Daniel Bass
	 	 	Title:	Chief Financial Officer

    	19

    	 

    

 

SCHEDULE 1

 

INVESTMENT GUIDELINES OF NEW SENIOR INVESTMENT
GROUP INC.

 

1.
          No investment of New Senior Investment Group Inc. (the
“Company”) shall be made which would cause the Company to fail to qualify as a real estate investment trust under
the Internal Revenue Code of 1986, as amended.

 

2.          No investment of the Company shall be made which would cause
the Company to be regulated as an investment company under the Investment Company Act of 1940, as amended.

    	20EXHIBIT 10.1
	 

TABLE OF CONTENTS

INTERNAP
NETWORK SERVICES CORPORATION

2014 STOCK INCENTIVE PLAN 

 

TABLE OF CONTENTS

TABLE OF CONTENTS
 

	​
	§ 1. BACKGROUND AND PURPOSE
	​
	​
	​
	​
	1
	
	​
	​

	​
	§ 2. DEFINITIONS
	​
	​
	​
	​
	1
	
	​
	​

	​
	2.1
	Affiliate

	​
	​
	​
	​
	1
	
	​
	​

	​
	2.2
	Board

	​
	​
	​
	​
	1
	
	​
	​

	​
	2.3
	Change Effective Date

	​
	​
	​
	​
	1
	
	​
	​

	​
	2.4
	Change in Control

	​
	​
	​
	​
	1
	
	​
	​

	​
	2.5
	Code

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.6
	Committee

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.7
	Company

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.8
	Continuous Service

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.9
	Director

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.10
	Eligible Employee

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.11
	Fair Market Value

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.12
	ISO

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.13
	1933 Act

	​
	​
	​
	​
	2
	
	​
	​

	​
	2.14
	1934 Act

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.15
	Non-ISO

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.16
	Option

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.17
	Option Certificate

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.18
	Option Price

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.19
	Parent

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.20
	Participant

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.21
	Plan

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.22
	Preexisting Plan

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.23
	Restricted Stock

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.24
	RSU

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.25
	Rule 16b-3

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.26
	SAR Value

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.27
	Stock

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.28
	Stock Appreciation Right

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.29
	Stock Appreciation Right Certificate

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.30
	Stock Award

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.31
	Stock Grant Certificate

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.32
	Subsidiary

	​
	​
	​
	​
	3
	
	​
	​

	​
	2.33
	Ten Percent Shareholder

	​
	​
	​
	​
	3
	
	​
	​

	​
	§ 3. SHARES AND GRANT LIMITS
	​
	​
	​
	​
	3
	
	​
	​

	​
	3.1
	Shares Reserved

	​
	​
	​
	​
	3
	
	​
	​

	​
	3.2
	Source of Shares

	​
	​
	​
	​
	4
	
	​
	​

	​
	3.3
	Use of Proceeds

	​
	​
	​
	​
	4
	
	​
	​

	​
	3.4
	Grant Limits

	​
	​
	​
	​
	4
	
	​
	​

	​
	3.5
	Preexisting Plan

	​
	​
	​
	​
	4
	
	​
	​

	​
	§ 4. EFFECTIVE DATE
	​
	​
	​
	​
	4
	
	​
	​

	​
	§ 5. COMMITTEE
	​
	​
	​
	​
	4
	
	​
	​

	​
	§ 6. ELIGIBILITY
	​
	​
	​
	​
	4
	
	​
	​

	​
	§ 7. OPTIONS
	​
	​
	​
	​
	4
	
	​
	​

	​
	7.1
	Committee Action

	​
	​
	​
	​
	4
	
	​
	​

	​
	7.2
	$100,000 Limit

	​
	​
	​
	​
	5
	
	​
	​

	​
	​
	​
	​
			​
		​

i

TABLE OF CONTENTS

 

	​
	7.3
	Option Price

	​
	​
	​
	​
	5
	
	​
	​

	​
	7.4
	Payment

	​
	​
	​
	​
	5
	
	​
	​

	​
	7.5
	Exercise

	​
	​
	​
	​
	5
	
	​
	​

	​
	§ 8. STOCK APPRECIATION RIGHTS
	​
	​
	​
	​
	5
	
	​
	​

	​
	8.1
	Committee Action

	​
	​
	​
	​
	5
	
	​
	​

	​
	8.2
	Terms and Conditions

	​
	​
	​
	​
	5
	
	​
	​

	​
	8.3
	Exercise

	​
	​
	​
	​
	6
	
	​
	​

	​
	§ 9. RESTRICTED STOCK AND RSUs
	​
	​
	​
	​
	6
	
	​
	​

	​
	9.1
	Committee Action

	​
	​
	​
	​
	6
	
	​
	​

	​
	9.2
	Conditions

	​
	​
	​
	​
	6
	
	​
	​

	​
	9.3
	Dividends and Voting Rights

	​
	​
	​
	​
	7
	
	​
	​

	​
	9.4
	Satisfaction of Forfeiture Conditions

	​
	​
	​
	​
	7
	
	​
	​

	​
	9.5
	Income Tax Deduction

	​
	​
	​
	​
	7
	
	​
	​

	​
	§ 10. NON-TRANSFERABILITY
	​
	​
	​
	​
	8
	
	​
	​

	​
	§ 11. SECURITIES REGISTRATION
	​
	​
	​
	​
	8
	
	​
	​

	​
	§ 12. LIFE OF PLAN
	​
	​
	​
	​
	9
	
	​
	​

	​
	§ 13. ADJUSTMENT
	​
	​
	​
	​
	9
	
	​
	​

	​
	13.1
	Capital Structure

	​
	​
	​
	​
	9
	
	​
	​

	​
	13.2
	Available Shares

	​
	​
	​
	​
	9
	
	​
	​

	​
	13.3
	Transactions Described in § 424 of the Code

	​
	​
	​
	​
	9
	
	​
	​

	​
	13.4
	Fractional Shares

	​
	​
	​
	​
	10
	
	​
	​

	​
	§ 14. CHANGE IN CONTROL
	​
	​
	​
	​
	10
	
	​
	​

	​
	14.1
	Acceleration of Vesting

	​
	​
	​
	​
	10
	
	​
	​

	​
	14.2
	Cash Payment for Options and Stock Appreciation Rights 

	​
	​
	​
	​
	10  
	
	​
	​

	​
	§ 15. AMENDMENT OR TERMINATION
	​
	​
	​
	​
	10
	
	​
	​

	​
	§ 16. INDEMNIFICATION
	​
	​
	​
	​
	11
	
	​
	​

	​
	§ 17. MISCELLANEOUS
	​
	​
	​
	​
	11
	
	​
	​

	​
	17.1
	Shareholder Rights

	​
	​
	​
	​
	11
	
	​
	​

	​
	17.2
	Deferral of Stock Awards

	​
	​
	​
	​
	11
	
	​
	​

	​
	17.3
	Other Provisions

	​
	​
	​
	​
	11
	
	​
	​

	​
	17.4
	Section 409A

	​
	​
	​
	​
	11
	
	​
	​

	​
	17.5
	Section 162(m)

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.6
	Rule 16b-3

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.7
	Clawback

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.8
	Withholding

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.9
	Beneficiary Designation

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.10
	Non-Uniform Treatment

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.11
	No Repricing

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.12
	No Contract of Employment

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.13
	Expenses

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.14
	Construction

	​
	​
	​
	​
	12
	
	​
	​

	​
	17.15
	Other Conditions

	​
	​
	​
	​
	13
	
	​
	​

	​
	17.16
	Coordination with Employment Agreements and Other Agreements 

	​
	​
	​
	​
	13
	
	​
	​

	​
	​
	​
	​
			​
		​

 

ii

TABLE OF CONTENTS

§ 1. 

BACKGROUND AND PURPOSE 

The purpose of this Plan is to promote the interest of the Company by authorizing the Committee to grant Options, Stock Appreciation Rights, Restricted Stock and RSUs to Eligible Employees and Directors in order (1) to attract and retain Eligible Employees and Directors, (2) to provide an additional incentive to each Eligible Employee or Director to work to increase the value of Stock, (3) to provide each Eligible Employee or Director with a stake in the future of the Company which corresponds to the stake of each of the Company’s stockholders, and (4) to compensate Directors for their service to the Company. 

§ 2. 

DEFINITIONS 

2.1  Affiliate — means any organization (other than a Subsidiary) that would be treated as under common control with the Company under § 414(c) of the Code if “50 percent” were substituted for “80 percent” in the income tax regulations under § 414(c) of the Code. 

2.2  Board — means the Board of Directors of the Company. 

2.3  Change Effective Date — means either the date which includes the “closing” of the transaction which makes a Change in Control effective if the Change in Control is made effective through a transaction which has a “closing” or the date a Change in Control is reported in accordance with applicable law as effective to the Securities and Exchange Commission if the Change in Control is made effective other than through a transaction which has a “closing”. 

2.4  Change in Control — means the happening of any of the following events: 
(a)
	An acquisition by any individual, entity or group (within the meaning of § 13(d)(3) or 14(d)(2) of the 1934 Act) (an “Entity”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 30% or more of either (i) the then outstanding shares of Stock (the “Outstanding Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”); excluding, however, the following: (A) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) of this Section; 

(b)
	A change in the composition of the Board such that the individuals who, as of the effective date of this Plan, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”), cease for any reason to constitute at least a majority of the Board; provided, however, that for purposes of this definition, any individual who becomes a member of the Board subsequent to the effective date of this Plan whose election, or nomination for election, by the Company’s stockholders was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso), shall be considered as though such individual were a member of the Incumbent Board; and provided, further however, that any such individual whose initial assumption of office occurs as a result of or in connection with either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the 1934 Act) or other actual or threatened solicitation of proxies or consents by or on behalf of an Entity other than the Board shall not be so considered as a member of the Incumbent Board; 

(c)
	The approval by the stockholders of the Company of a merger, reorganization or consolidation or sale or other disposition of all or substantially all of the assets of the Company (each, a “Corporate Transaction”) and, if consummation of such Corporate Transaction is subject, at the time of such approval by stockholders, to the consent of any government or governmental agency, the obtaining of such consent either explicitly or implicitly by consummation; excluding however, such a Corporate Transaction pursuant to which (i) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Stock and Outstanding Voting Securities immediately prior to such Corporate Transaction 

1

TABLE OF CONTENTS

will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a Parent) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Stock and Outstanding Voting Securities, as the case may be, (ii) no Entity (other than the Company, any employee benefit plan (or related trust) of the Company, such corporation resulting from such Corporate Transaction or, if reference was made to equity ownership of any Parent for purposes of determining whether clause (i) above is satisfied in connection with the applicable Corporate Transaction, such Parent) will beneficially own, directly or indirectly, 50% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors unless such ownership resulted solely from ownership of securities of the Company prior to the Corporate Transaction, and (iii) individuals who were members of the Incumbent Board will immediately after the consummation of the Corporate Transaction constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction (or, if reference was made to equity ownership of any Parent for purposes of determining whether clause (i) above is satisfied in connection with the applicable Corporate Transaction, of the Parent); or 
(d)
	The approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

2.5  Code — means the Internal Revenue Code of 1986, as amended. 

2.6  Committee — means the Compensation Committee of the Board which shall have at least 2 members, each of whom shall be appointed by and shall serve at the pleasure of the Board and shall come within the definition of a “non-employee director” under Rule 16b-3 and an “outside director” under § 162(m) of the Code. 

2.7  Company — means Internap Network Services Corporation and any successor to Internap Network Services Corporation. 

2.8  Continuous Service — means that a Participant’s service with the Company or an Affiliate, whether as an employee, consultant or director, is not interrupted or terminated. A Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the company or an Affiliate as an employee, consultant or director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s Continued Service; provided, further, that that if any Stock Award is subject to § 409A of the Code, this sentence shall only be given effect to the extent consistent with § 409A of the Code. The Committee, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence taken by a Participant. 

2.9  Director — means any member of the Board who is not an employee of the Company or a Parent or Subsidiary or affiliate (as such term is defined in Rule 405 of the 1933 Act) of the Company. 

2.10  Eligible Employee — means an employee of the Company or any Subsidiary or Parent or Affiliate to whom one or more grants are made under this Plan. 

2.11  Fair Market Value — means (a) the closing price of the Stock reported on Nasdaq on the date of grant, exercise or vesting, as applicable, or if Nasdaq is closed on that date, the last preceding date on which Nasdaq was open for trading and on which shares of Stock were traded, (b) if the Stock is not listed on Nasdaq, the Fair Market Value shall be the closing price of the Stock on such other United States-based quotation system or stock exchange on which the Stock may be traded on the date of grant, exercise or vesting, as applicable, or if such exchange is closed on that date, the last preceding date on which such exchange was open for trading and on which shares of Stock were actually traded, or (c) if no fair market value of the Stock may be determined according to the preceding clauses (a) or (b), in the discretion of the Committee, any stock valuation method which complies with the requirements of § 409A or § 422 of the Code, as applicable, based on the provisions of such statutory provision and any formal guidance issued by the Internal Revenue Service. 

2.12  ISO — means an option granted under this Plan to purchase Stock which is intended to satisfy the requirements of § 422 of the Code. 

2.13  1933 Act — means the Securities Act of 1933, as amended. 

2

TABLE OF CONTENTS

2.14  1934 Act — means the Securities Exchange Act of 1934, as amended. 

2.15  Non-ISO — means an option granted under this Plan to purchase Stock which is intended to fail to satisfy the requirements of § 422 of the Code. 

2.16  Option — means an ISO or a Non-ISO which is granted under § 7. 

2.17  Option Certificate — means the certificate (whether in electronic or written form) which sets forth the terms and conditions of an Option granted under this Plan. 

2.18  Option Price — means the price which shall be paid to purchase one share of Stock upon the exercise of an Option granted under this Plan. 

2.19  Parent — means any corporation which is a parent corporation (within the meaning of § 424(e) of the Code) of the Company. 

2.20  Participant — means any Eligible Employee or Director. 

2.21  Plan — means this Internap Network Services Corporation 2014 Stock Incentive Plan as effective as of the date approved by the stockholders of the Company and as amended from time to time thereafter. 

2.22  Preexisting Plan — means the Internap Network Services Corporation 2005 Incentive Stock Plan. 

2.23  Restricted Stock — means a grant of Stock under § 9 while such Stock remains subject to forfeiture, restrictions on transfer, or other conditions pursuant to § 9 or § 10. 

2.24  RSU — means a grant under § 9 of stock units with each unit equal to one share of Stock, which is designed to be satisfied or settled in either cash based on the Fair Market Value of the number of shares of Stock described in such grant or a number of shares of Stock equal to the number of stock units, which stock units, at the Committee’s discretion, may be subject to the risk of forfeiture, restrictions on transfer or other restrictions under § 9. 

2.25  Rule 16b-3 — means the exemption under Rule 16b-3 to § 16(b) of the 1934 Act or any successor to such rule. 

2.26  SAR Value — means the value assigned by the Committee to a share of Stock in connection with the grant of a Stock Appreciation Right under § 8. 

2.27  Stock — means the common stock of the Company. 

2.28  Stock Appreciation Right — means a right which is granted under § 8 to receive the appreciation in a share of Stock. 

2.29  Stock Appreciation Right Certificate — means the certificate (whether in electronic or written form) which sets forth the terms and conditions of a Stock Appreciation Right which is not granted as part of an Option. 

2.30  Stock Award — means any Option, Stock Appreciation Right, Restricted Stock or RSU. 

2.31  Stock Grant Certificate — means the certificate (whether in electronic or written form) which sets forth the terms and conditions of Restricted Stock or RSUs. 

2.32  Subsidiary — means a corporation which is a subsidiary corporation (within the meaning of § 424(f) of the Code) of the Company. 

2.33  Ten Percent Stockholder — means a person who owns (after taking into account the attribution rules of § 424(d) of the Code) more than ten percent of the total combined voting power of all classes of stock of either the Company, a Subsidiary or Parent. 

§ 3. 

SHARES AND GRANT LIMITS 

3.1  Shares Reserved. There shall (subject to § 13) be reserved for issuance under this Plan 4,600,000 shares of Stock, provided, however, (i) no more than the number of shares of Stock described in § 3.1 shall be issued in connection with the exercise of ISOs and (ii) the number of Restricted Stock and RSU grants made under § 9 of this Plan (after taking into account any forfeitures and cancellations) will not during the life of this Plan in the aggregate exceed 50% of the total number of shares reserved for issuance under this Plan. 

3

TABLE OF CONTENTS

3.2  Source of Shares. The shares of Stock described in § 3.1 shall be reserved to the extent that the Company deems appropriate from authorized but unissued shares of Stock and from shares of Stock which have been reacquired by the Company. Notwithstanding anything to the contrary contained herein, the following shall not increase the number of shares of Stock available for issuance under this Plan: (a) shares of Stock tendered in payment of an Option; (b) shares of Stock withheld by the Company to satisfy any tax withholding obligation; and (c) shares of Stock that are repurchased by the Company with Option proceeds. In addition, shares of Stock covered by a Stock Appreciation Right, to the extent that it is exercised and settled in shares of Stock, and whether or not shares of Stock are actually issued to the Participant upon exercise of the Stock Appreciation Right, shall be considered issued or transferred pursuant to this Plan. 

3.3  Use of Proceeds. The proceeds which the Company receives from the sale of any shares of Stock under this Plan shall be used for general corporate purposes and shall be added to the general funds of the Company. 

3.4  Grant Limits. No Participant in any calendar year shall be granted Stock Awards with respect to more than 1,400,000 shares of Stock (subject to § 13). 

3.5  Preexisting Plan. No grants shall be made under the Preexisting Plan on or after the date this Plan becomes effective, but the terms of any grant made under the Preexisting Plan prior to the date this Plan becomes effective shall be interpreted under the terms of the Preexisting Plan under which such grant was made and not under this Plan. 

§ 4. 

EFFECTIVE DATE 

The effective date of this Plan shall be the date the stockholders of the Company (acting at a duly called meeting of such stockholders) approve the adoption of this Plan. 

§ 5. 

COMMITTEE 

This Plan shall be administered by the Committee. The Committee acting in its absolute discretion shall exercise such powers and take such action as expressly called for under this Plan and, further, the Committee shall have the power to interpret this Plan and (subject to § 14 and § 15 and Rule 16b-3) to take such other action in the administration and operation of this Plan as the Committee deems equitable under the circumstances, which action shall be binding on the Company, on each affected Participant and on each other person directly or indirectly affected by such action. Furthermore, the Committee as a condition to making any grant under this Plan to any Participant shall have the right to require him or her to execute an agreement which makes the Participant subject to non-competition provisions and other restrictive covenants which run in favor of the Company. 

§ 6. 

ELIGIBILITY 

Only Eligible Employees who are employed by the Company or a Subsidiary or Parent shall be eligible for the grant of ISOs under this Plan. All Participants shall be eligible for the grant of Non-ISOs, Stock Appreciation Rights Restricted Stock and RSUs under this Plan. 

§ 7. 

OPTIONS 

7.1  Committee Action. The Committee acting in its absolute discretion shall have the right to grant Options to Participants under this Plan from time to time to purchase shares of Stock, but the Committee shall not (subject to § 13) take any action, whether through amendment, cancellation, replacement grants, or any other means, to reduce the Option Price of any outstanding Options absent the approval of the Company’s stockholders. The Committee may appoint a delegate and authorize such delegate to make grants of Options to Eligible Employees who are not “insiders” within the meaning of Rule 16b-3 or “covered employees” under § 162(m) of the Code. Each grant of an Option to a Participant shall be evidenced by an Option Certificate, and each Option Certificate shall set forth whether the Option is an ISO or a Non-ISO and shall set forth such other terms and conditions of such grant as the Committee acting in its absolute discretion deems consistent with the 

4

TABLE OF CONTENTS

terms of this Plan; however, (a) if the Committee grants an ISO and a Non-ISO to an Eligible Employee on the same date, the right of the Eligible Employee to exercise the ISO shall not be conditioned on his or her failure to exercise the Non-ISO and (b) the minimum period of time over which an Option shall vest (whether subject to vesting over a period of time only or achievement of performance objectives) shall be no less than the one (1) year period which starts on the date as of which the Option is granted unless the Committee determines that a shorter period of time (or no period of time) better serves the Company’s interest. 

7.2  $100,000 Limit. No Option shall be treated as an ISO to the extent that the aggregate Fair Market Value of the Stock subject to the Option which would first become exercisable in any calendar year exceeds $100,000. Any such excess shall instead automatically be treated as a Non-ISO. The Committee shall interpret and administer the ISO limitation set forth in this § 7.2 in accordance with § 422(d) of the Code, and the Committee shall treat this § 7.2 as in effect only for those periods for which § 422(d) of the Code is in effect. 

7.3  Option Price. The Option Price for each share of Stock subject to an Option shall be no less than the Fair Market Value of a share of Stock on the date the Option is granted; provided, however, if the Option is an ISO granted to an Eligible Employee who is a Ten Percent Stockholder, the Option Price for each share of Stock subject to such ISO shall be no less than 110% of the Fair Market Value of a share of Stock on the date such ISO is granted. 

7.4  Payment. The Option Price shall be payable in full upon the exercise of any Option and, at the discretion of the Committee, an Option Certificate can provide for the payment of the Option Price either in cash, by check or in Stock which is acceptable to the Committee, or through any cashless exercise procedure which is effected by an unrelated broker through a sale of Stock in the open market and which is acceptable to the Committee, or in any combination of such forms of payment. Any payment made in Stock shall be treated as equal to the Fair Market Value of such Stock on the date the certificate for such Stock (or proper evidence of such certificate) is presented to the Committee or its delegate in such form as acceptable to the Committee. 

7.5  Exercise. 
(a)
	Exercise Period. Each Option granted under this Plan shall be exercisable in whole or in part at such time or times as set forth in the related Option Certificate, but no Option Certificate shall make an Option exercisable on or after the earlier of 

(1)
	the date which is the fifth anniversary of the date the Option is granted, if the Option is an ISO and the Eligible Employee is a Ten Percent Stockholder on the date the Option is granted, or 

(2)
	the date which is the tenth anniversary of the date the Option is granted, if the Option is (a) a Non-ISO or (b) an ISO which is granted to an Eligible Employee who is not a Ten Percent Stockholder on the date the Option is granted. 

(b)
	Termination of Status as Participant. Subject to § 7.5(a), an Option Certificate may provide for the exercise of an Option after a Participant’s status as such has terminated for any reason whatsoever, including retirement, death or disability.

§ 8. 

STOCK APPRECIATION RIGHTS 

8.1 Committee Action. The Committee acting in its absolute discretion shall have the right to grant Stock Appreciation Rights to Participants under this Plan from time to time. The Committee may appoint a delegate and authorize such delegate to make grants of Stock Appreciation Rights to Eligible Employees who are not “insiders” within the meaning of Rule 16b-3 or “covered employees” under § 162(m) of the Code. Each Stock Appreciation Right grant shall be evidenced by a Stock Appreciation Right Certificate or, if such Stock Appreciation Right is granted as part of an Option, shall be evidenced by the Option Certificate for the related Option. 

8.2  Terms and Conditions. 
(a)
	Stock Appreciation Right Certificate. If a Stock Appreciation Right is granted independent of an Option, such Stock Appreciation Right shall be evidenced by a Stock Appreciation Right Certificate, and such certificate shall set forth the number of shares of Stock on which the Participant’s right to appreciation shall be based and the SAR Value of each share of Stock. Such SAR Value shall be no less than the Fair Market Value of a share of Stock on the date on which the Stock Appreciation Right is granted. The Stock Appreciation Right Certificate 

5

TABLE OF CONTENTS

shall set forth such other terms and conditions for the exercise of the Stock Appreciation Right as the Committee deems appropriate under the circumstances, but no Stock Appreciation Right Certificate shall make a Stock Appreciation Right exercisable on or after the date which is the tenth anniversary of the date such Stock Appreciation Right is granted. 
(b)
	Option Certificate. If a Stock Appreciation Right is granted together with an Option, such Stock Appreciation Right shall be evidenced by an Option Certificate, the number of shares of Stock on which the Participant’s right to appreciation shall be based shall be the same as the number of shares of Stock subject to the related Option, and the SAR Value for each such share of Stock shall be no less than the Option Price under the related Option. Each such Option Certificate shall provide that the exercise of the Stock Appreciation Right with respect to any share of Stock shall cancel the Participant’s right to exercise his or her Option with respect to such share and, conversely, that the exercise of the Option with respect to any share of Stock shall cancel the Participant’s right to exercise his or her Stock Appreciation Right with respect to such share. A Stock Appreciation Right which is granted as part of an Option shall be exercisable only while the related Option is exercisable. The Option Certificate shall set forth such other terms and conditions for the exercise of the Stock Appreciation Right as the Committee deems appropriate under the circumstances. 

(c)
	Minimum Vesting Period. The minimum period of time over which a Stock Appreciation Right shall vest (whether subject to vesting over a period of time only or achievement of performance objectives) shall be no less than the one (1) year period which starts on the date as of which the Stock Appreciation Right is granted unless the Committee determines that a shorter period of time (or no period of time) better serves the Company’s interest.

8.3  Exercise. A Stock Appreciation Right shall be exercisable only when the Fair Market Value of a share of Stock on which the right to appreciation is based exceeds the SAR Value for such share, and the payment due on exercise shall be based on such excess with respect to the number of shares of Stock to which the exercise relates. A Participant upon the exercise of his or her Stock Appreciation Right shall receive a payment from the Company in cash or in Stock issued under this Plan, or in a combination of cash and Stock, and the number of shares of Stock issued shall be based on the Fair Market Value of a share of Stock on the date the Stock Appreciation Right is exercised. The Committee acting in its absolute discretion shall have the right to determine the form and time of any payment under this § 8.3. Subject to this § 8.3, a Stock Appreciation Right Certificate or an Option Certificate, as applicable, may provide for the exercise of a Stock Appreciation Right after a Participant’s status as such has terminated for any reason whatsoever, including retirement, death or disability. 

§ 9. 

RESTRICTED STOCK AND RSUs 

9.1  Committee Action. The Committee acting in its absolute discretion shall have the right to grant Restricted Stock and RSUs to Participants. The Committee may appoint a delegate and authorize such delegate to grant Restricted Stock and RSUs to Eligible Employees who are not “insiders” within the meaning of rule 16b-3 or “covered employees” under § 162(m) of the Code. Each grant of Restricted Stock or RSUs shall be evidenced by a Stock Grant Certificate, and each Stock Grant Certificate shall set forth the conditions, if any, under which Stock will be issued under the Restricted Stock grant or cash will be paid, or Stock will be issued, under the RSU grant and the conditions under which the Participant’s interest in any Stock or RSUs which have been issued will become non-forfeitable. Unless determined otherwise by the Committee, each Stock unit awarded under an RSU grant will be equal to one share of Stock and shall entitle a Participant to either an equivalent number of shares of Stock or an amount of cash determined with reference to the Fair Market Value of an equivalent number of shares of Stock. To the extent determined by the Committee, RSUs may be satisfied or settled in cash, in shares of Stock or in a combination thereof. RSUs shall be settled no later than the 15​th day of the third month after the RSUs vest. Restricted Stock and RSUs granted pursuant to the Plan need not be identical but shall be consistent with the terms of the Plan. 

9.2  Conditions. 
(a)
	Conditions to Issuance of Stock. The Committee acting in its absolute discretion may make the issuance of Stock under a Restricted Stock grant subject to the satisfaction of one, or more than one, condition which the Committee deems appropriate under the circumstances for Participants generally or for a Participant in particular, and the related Stock Grant Certificate shall set forth each such condition and the deadline for satisfying each such condition. Stock subject to a Restricted Stock grant shall be issued in the name of a Participant only after each such condition, if any, has been timely satisfied, and any Stock which is so issued shall be held by the Company pending the satisfaction of the forfeiture conditions, if any, under § 9.2(b) for the related Restricted Stock grant. 

6

TABLE OF CONTENTS

(b)
	Conditions on Forfeiture of Stock or Cash Payment. The Committee acting in its absolute discretion may make any cash payment due, or Stock to be issued, under an RSU grant or Stock issued in the name of a Participant under a Restricted Stock grant non-forfeitable subject to the satisfaction of one, or more than one, objective employment, performance or other conditions that the Committee acting in its absolute discretion deems appropriate under the circumstances for Participants generally or for a Participant in particular, and the related Stock Grant Certificate shall set forth each such condition, if any, and the deadline, if any, for satisfying each such condition. A Participant’s non-forfeitable interest in the shares of Stock underlying Restricted Stock or the cash payable, or Stock Issuable, under an RSU grant shall depend on the extent to which he or she timely satisfies each such condition. If a share of Stock is issued under this § 9.2(b) before a Participant’s interest in such share of Stock is non-forfeitable, (1) such share of Stock shall not be available for re-issuance under § 3 until such time, if any, as such share of Stock thereafter is forfeited as a result of a failure to timely satisfy a forfeiture condition and (2) the Company shall have the right to condition any such issuance on the Participant first signing an irrevocable stock power in favor of the Company with respect to the forfeitable shares of Stock issued to such Participant in order for the Company to effect any forfeiture called for under the related Stock Grant Certificate. 

(c)
	Minimum Vesting Period. The minimum vesting period over which Restricted Stock or an RSU shall vest is as follows: (i) if subject to vesting over a period of time, such period shall be no less than the three (3) year period which starts on the date as of which the Restricted Stock or RSU is granted or (ii) if subject to achievement of performance objectives, such period shall be no less than the one (1) year period which starts on the date as of which the Restricted Stock or RSU is granted, unless in each case the Committee determines that a shorter period of time (or no period of time) better serves the Company’s interest. 

(d)
	Termination of Status as Participant. Subject to § 9.1 and § 9.2, a Stock Grant Certificate may provide for the vesting and settlement of Restricted Stock or RSUs after a Participant’s status as such has terminated for any reason whatsoever, including retirement, death or disability.

9.3  Dividends and Voting Rights. 
(a)
	Dividends, Voting, Liquidation and Other Rights. Except as otherwise provided in the Plan or in a Stock Grant Certificate, a participant shall have all voting, dividend, liquidation and other rights with respect to the shares of Stock issued to the Participant as a Restricted Stock award under this Section 9 upon the Participant becoming the holder of record of the Stock granted pursuant to such award. The Committee may, at the time of the grant of such award, provide that the payment of cash dividends with respect to such award be reinvested into additional Restricted Stock, subject in all cases to deferral and payment on a contingent basis based on the Participant’s achievement of the performance objectives, time vesting, or other conditions with respect to such additional Restricted Stock. 

(b)
	Dividend Equivalents. The Committee may, at the date of the grant of such award, provide for the payment of dividend equivalents to a Participant either in cash or in shares of Stock, subject in all cases to deferral and payment on a contingent basis based on the Participant’s achievement of the performance objectives, time vesting or other conditions with respect to which such dividend equivalents are paid.

9.4  Satisfaction of Forfeiture Conditions. A share of Stock shall cease to be subject to a Restricted Stock grant at such time as a Participant’s interest in such Stock becomes non-forfeitable under this Plan, and the certificate or other evidence of ownership representing such share shall be transferred to the Participant as soon as practicable thereafter. 

9.5  Income Tax Deduction. 
(a)
	General. The Committee shall (where the Committee under the circumstances deems in the Company’s best interest) either (1) grant Restricted Stock and RSUs to Eligible Employees subject to at least one condition related to one, or more than one, performance goal based on the performance goals described in § 9.5(b) which seems likely to result in the Restricted Stock or RSU grant qualifying as “performance-based compensation” under § 162(m) of the Code or (2) grant Restricted Stock and RSUs to Eligible Employees under such other circumstances as the Committee deems likely to result in an income tax deduction for the Company with respect such Restricted Stock or RSUs. A performance goal may be set in any manner determined by the Committee, including looking to achievement on an absolute or relative basis in relation to peer groups or indexes, and no change may be made to a performance goal after the goal has been set, unless otherwise determined by the Committee at the time such performance goal is set. 

7

TABLE OF CONTENTS

(b)
	Performance Goals. A performance goal is described in this § 9.5(b) if such goal relates to (1) the Company’s return over capital costs or increases in return over capital costs, (2) the Company’s total earnings or the growth in such earnings, (3) the Company’s consolidated earnings or the growth in such earnings, (4) the Company’s earnings per share or the growth in such earnings, (5) the Company’s net earnings or the growth in such earnings, (6) the Company’s earnings before interest expense, taxes, depreciation, amortization, which may in the Committee’s discretion include one-time charges or the growth in such earnings, (7) the Company’s earnings before interest and taxes or the growth in such earnings, (8) the Company’s consolidated net income or the growth in such income, (9) the value of the Company’s stock or the growth in such value, (10) the Company’s stock price or the growth in such price, (11) the Company’s return on assets or the growth on such return, (12) the Company’s cash flow or the growth in such cash flow, including operating cash flow and free cash flow, (13) the Company’s total stockholder return or the growth in such return, (14) the Company’s expenses or the reduction of such expenses, (15) the Company’s revenues and/or revenue growth, (16) the Company’s overhead ratios or changes in such ratios, (17) the Company’s expense-to-sales ratios or the changes in such ratios, (18) the Company’s economic value added or changes in such value added, (19) the Company’s return on capital, (20) the Company’s return on equity, (21) the Company’s working capital, (22) the Company’s operating income, (23) the Company’s gross, operating or net profit margin, (23) customer satisfaction of the Company’s customers, (24) the Company’s market share, (25) the Company’s product development, (26) the Company’s bookings, (27) the Company’s customer attrition rate or the Company’s addition of new customers, (28) the Company’s capital expenditures, (29) debt of the Company, or (30) the Company’s accounts receivable. 

(c)
	Adjustments. When the Committee determines whether a performance goal has been satisfied for any period, the Committee where the Committee deems appropriate may make such determination using calculations which alternatively include and exclude one, or more than one, “extraordinary items” as determined under U.S. generally accepted accounting principles, and the Committee may determine whether a performance goal has been satisfied for any period taking into account the alternative which the Committee deems appropriate under the circumstances. The Committee also may take into account any other unusual or non-recurring items, including, without limitation, the charges or costs associated with restructurings of the Company, discontinued operations, and the cumulative effects of accounting changes and, further, may take into account any unusual or non-recurring events affecting the Company, changes in applicable tax laws or accounting principles or such other factors as the Committee may determine reasonable and appropriate under the circumstances (including, without limitation, any factors that could result in the Company’s paying non-deductible compensation to an Eligible Employee).

§ 10. 

NON-TRANSFERABILITY 

No Option, Restricted Stock, RSU or Stock Appreciation Right shall (absent the Committee’s consent) be transferable by a Participant other than by will or by the laws of descent and distribution, and any Option or Stock Appreciation Right shall (absent the Committee’s consent) be exercisable during a Participant’s lifetime only by the Participant. The person or persons to whom an Option, Restricted Stock, RSU or Stock Appreciation Right is transferred by will or by the laws of descent and distribution (or with the Committee’s consent) thereafter shall be treated as the Participant. 

§ 11. 

SECURITIES REGISTRATION 

As a condition to the receipt of shares of Stock under this Plan, the Participant shall, if so requested by the Company, agree to hold such shares of Stock for investment and not with a view of resale or distribution to the public and, if so requested by the Company, shall deliver to the Company a written statement satisfactory to the Company to that effect. Furthermore, if so requested by the Company, the Participant shall make a written representation to the Company that he or she will not sell or offer for sale any of such Stock unless a registration statement shall be in effect with respect to such Stock under the 1933 Act and any applicable state securities law or he or she shall have furnished to the Company an opinion in form and substance satisfactory to the Company of legal counsel satisfactory to the Company that such registration is not required. Certificates or other evidence of ownership representing the Stock transferred upon the exercise of an Option or Stock Appreciation Right or upon the lapse of the forfeiture conditions, if any, on any Restricted Stock may at the discretion of the Company bear a legend to the effect that such Stock has not been registered under the 1933 Act or any applicable state securities law and that such 

8

TABLE OF CONTENTS

Stock cannot be sold or offered for sale in the absence of an effective registration statement as to such Stock under the 1933 Act and any applicable state securities law or an opinion in form and substance satisfactory to the Company of legal counsel satisfactory to the Company that such registration is not required. 

§ 12. 

LIFE OF PLAN 

No Option, Stock Appreciation Right, Restricted Stock or RSU shall be granted under this Plan on or after the earlier of: 
(a)
	the tenth anniversary of the effective date of this Plan (as determined under § 4), in which event this Plan otherwise thereafter shall continue in effect until all outstanding Options, Stock Appreciation Rights have been exercised in full or no longer are exercisable and all Stock issued under any Restricted Stock or RSU awards under this Plan have been forfeited or have become non-forfeitable, or 

(b)
	the date on which all of the Stock reserved under § 3 has (as a result of the exercise of Options or Stock Appreciation Rights granted under this Plan or the satisfaction of the forfeiture conditions, if any, on Restricted Stock or RSUs) been issued or no longer is available for use under this Plan, in which event this Plan also shall terminate on such date.

§ 13. 

ADJUSTMENT 

13.1  Capital Structure. The grant caps described in § 3.4, the number, kind or class (or any combination thereof) of shares of Stock subject to outstanding Options and Stock Appreciation Rights granted under this Plan and the Option Price of such Options and the SAR Value of such Stock Appreciation Rights as well as the number, kind or class (or any combination thereof) of shares of Stock subject to outstanding Restricted Stock or RSU grants made under this Plan shall be adjusted by the Committee in a reasonable and equitable manner to preserve immediately after 
(a)
	any equity restructuring or change in the capitalization of the Company, including, but not limited to, spin offs, stock dividends, large non-reoccurring dividends, rights offerings or stock splits, or 

(b)
	any other transaction described in § 424(a) of the Code which does not constitute a Change in Control of the Company

the aggregate intrinsic value of each such outstanding Option, Stock Appreciation Right, Restricted Stock and RSU immediately before such restructuring or recapitalization or other transaction. 

13.2  Available Shares. If any adjustment is made with respect to any outstanding Stock Award under § 13.1, then the Committee shall adjust the number, kind or class (or any combination thereof) of shares of Stock reserved under § 3.1 so that there is a sufficient number, kind and class of shares of Stock available for issuance pursuant to each such Stock Award as adjusted under § 13.1 without seeking the approval of the Company’s stockholders for such adjustment unless such approval is required under applicable law or the rules of the stock exchange on which shares of Stock are traded. Furthermore, the Committee shall have the absolute discretion to further adjust such number, kind or class (or any combination thereof) of shares of Stock reserved under § 3.1 in light of any of the events described in § 13.1(a) and § 13.1(b) to the extent the Committee acting in good faith determinates that a further adjustment would be appropriate and proper under the circumstances and in keeping with the purposes of this Plan without seeking the approval of the Company’s stockholders for such adjustment unless such approval is required under applicable law or the rules of the stock exchange on which shares of Stock are traded. 

13.3  Transactions Described in § 424 of the Code. If there is a corporate transaction described in § 424(a) of the Code which does not constitute a Change in Control of the Company, the Committee as part of any such transaction shall have right to make Stock Awards (without regard to any limitations set forth under 3.4 of this Plan) to effect the assumption of, or the substitution for, outstanding restricted stock, restricted stock unit, option and stock appreciation right grants previously made by any other corporation to the extent that such corporate transaction calls for such substitution or assumption of such outstanding restricted stock, restricted stock unit, stock option and stock appreciation right grants. Furthermore, if the Committee makes any such grants as part of any such transaction, the Committee shall have the right to increase the number of shares of Stock available for issuance under § 3.1 by the number of shares of Stock subject to such grants without seeking the approval of the Company’s stockholders for such adjustment unless such approval is required under applicable law or the rules of the stock exchange on which shares of Stock are traded. 

9

TABLE OF CONTENTS

13.4  Fractional Shares. If any adjustment under this § 13 would create a fractional share of Stock or a right to acquire a fractional share of Stock under any Stock Award, such fractional share shall be disregarded and the number of shares of Stock reserved under this Plan and the number subject to any Stock Awards shall be the next lower number of shares of Stock, rounding all fractions downward. An adjustment made under this § 13 by the Committee shall be conclusive and binding on all affected persons. 

§ 14. 

CHANGE IN CONTROL 

14.1  Acceleration of Vesting. Unless otherwise determined by the Committee, in the event of a Change in Control of the Company, effective as of the Change Effective Date, any surviving corporation or acquiring corporation shall assume all Stock Awards outstanding under the Plan or shall substitute similar stock awards (including an award to be settled in cash or to acquire the same consideration paid to the stockholders in the Change in Control for those Stock Awards outstanding under the Plan). In the event any surviving corporation or acquiring corporation refuses to assume such Stock Awards or to substitute similar stock awards for those outstanding under the Plan as of the Change Effective Date, then with respect to Stock Awards held by any Participant whose employment or service with the Company has not terminated, the vesting of such stock Awards (and, if applicable, the time during which such Stock Awards may be exercised) shall be accelerated in full, and, if applicable, be exercisable for a reasonable period of time immediately prior to the Change Effective Date, subject to the transaction occurring, and the Stock Awards shall terminate if not exercised (if applicable) at or prior to the Change Effective Date; provided, that (a) if any issuance or forfeiture condition described in a Stock Award relates to satisfying any performance goal and there is a target for such performance goal, such issuance or forfeiture condition shall be deemed satisfied under this § 14.1 only to the extent of such target unless such target has been exceeded before the Change Effective Date, in which such issuance or forfeiture condition shall be deemed satisfied to the extent that such target has been so exceeded, and (b) a Change in Control shall effect a Stock Appreciation Right or RSU which is subject to § 409A of the Code only if the Change in Control also constitutes a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company within the meaning of § 409A(a)(2)(A)(v) of the Code. With respect to any other Stock Awards outstanding under the Plan, such Stock Awards shall terminate if not exercised (if applicable) prior to such event. 

14.2  Cash Payment for Options and Stock Appreciation Rights. If and to the extent that Participants are entitled to accelerated vesting in the event of a Change in Control as provided in the above § 14.1, then the Committee, in its sole discretion and without the consent of any Participant affected thereby, may determine that some or all Participants holding outstanding Options and/or Stock Appreciation Rights shall receive, with respect to some or all of the shares of Stock subject to such Options and/or Stock Appreciation Rights, as of the Change Effective Date, for any Options and Stock Appreciation Rights, cash in an amount equal to the greater of the excess of (i) the highest price of the Stock on Nasdaq on the last trading date immediately prior to the Change Effective Date (or, if the Stock is not listed on Nasdaq, an amount equal to the highest price of the Stock on such other United States-based quotation system or stock exchange on which the Stock may be traded such date; or, if the Stock is not traded on any such quotation system or stock exchange, an amount equal to the value of the Stock determined by the Committee in its discretion according to any stock valuation method which complies with the requirements of § 409A or § 422 of the Code, as applicable, based on the provisions of such statutory provision and any formal guidance issued by the Internal Revenue Service), or (ii) the highest price per share actually paid in connection with the Change in Control of the Company, over the exercise price per share of such Options or the SAR Value per share of such Stock Appreciation Rights. Upon a Participant’s receipt of such amount with respect to some or all of his or her Options and/or Stock Appreciation Rights, the respective Options and/or Stock Appreciation Rights shall be cancelled and may no longer be exercised by such Participant. 

§ 15. 

AMENDMENT OR TERMINATION 

This Plan may be amended by the Board or the Committee from time to time to the extent that the Board or Committee deems necessary or appropriate; provided, however, (a) no amendment shall be made absent the approval of the stockholders of the Company to the extent such approval is required under applicable law or the rules of the stock exchange on which shares of Stock are listed and (b) no amendment shall be made to § 14 on or after the date of any Change in Control which might adversely affect any rights which otherwise would vest on the related Change Effective Date. In addition, the Board and the Committee each may suspend granting or making any Stock Awards under this Plan at any time and may terminate this Plan at 

10

TABLE OF CONTENTS

any time; provided, however, neither the Board nor the Committee shall have the right unilaterally to modify, amend or cancel any Option, Stock Appreciation Right, Restricted Stock or RSU granted before such suspension or termination unless (1) the Participant consents in writing to such modification, amendment or cancellation or (2) there is a dissolution or liquidation of the Company or a transaction described in § 13.1 or § 14. 

§ 16. 

INDEMNIFICATION 

Neither any member or former member of the Committee, nor any individual or group to whom authority or responsibility of the Committee is or has been delegated, shall be personally responsible or liable for any act or omission in connection with the performance of powers or duties or the exercise of discretion or judgment in the administration and implementation of the Plan. Each person who is or shall have been a member of the Committee and any other individual or group exercising delegated authority or responsibility with respect to the Plan shall be indemnified and held harmless by the Company from and against any cost, liability or expense imposed or incurred in connection with such person’s or the Committee’s taking or failing to take any action under the Plan or the exercise of discretion or judgment in the administration and implementation of the Plan. The indemnification obligation of the Company pursuant to this Section shall not apply to the extent that it is adjudged that a person otherwise entitled to indemnification by the Company hereunder did not act in good faith and in a manner which such person reasonably believed to be in the best interests of the Company. This Section shall not be construed as limiting the Company’s or any subsidiary’s ability to terminate or otherwise alter the terms and conditions of the employment of an individual or group exercising delegated authority or responsibility with respect to the Plan, or to discipline any such person. Each such person shall be justified in relying on information furnished in connection with the Plan’s administration by any appropriate person or persons. 

§ 17. 

MISCELLANEOUS 

17.1  Stockholder Rights. No Participant shall have any rights as a stockholder of the Company as a result of the grant of an Option, Stock Appreciation Right or RSU pending the actual delivery of the Stock subject to such Option, Stock Appreciation Right or RSU to such Participant. A Participant’s rights as a stockholder in the shares of Stock which remain subject to forfeiture under § 9.2(b) shall be set forth in the related Stock Grant Certificate. The Committee may specify in an Option Certificate, Stock Appreciation Right Certificate or Stock Grant Certificate that the Participant’s rights, payments and benefits with respect to such award shall be subject to reduction cancellation, forfeiture or recoupment upon the occurrence of certain event, in addition to applicable vesting conditions of such award. Such events may include, without limitation: breach of non-competition, non-solicitation, confidentiality or other restrictive covenants that are contained in the Option Certificate, Stock Appreciation Right Certificate or Stock Grant Certificate or otherwise applicable to such Participant; a termination of a Participant’s Continuous Service for cause; or other conduct by the Participant that is detrimental to the business or reputation of the Company and/or its Affiliates. 

17.2  Deferral of Stock Awards. The Committee may establish one or more programs under this Plan to permit selected Participants the opportunity to elect to defer consideration upon exercise of a Stock Award, satisfaction of performance criteria, or other event that absent the election would entitle the Participant to payment or receipt of shares of Stock or other consideration under a Stock Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payment of, and accrual of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Committee deems advisable for the administration of any such deferral program. 

17.3  Other Provisions. The Option Certificates, Stock Appreciation Right Certificates and Stock Grant Certificates authorized under this Plan may contain such other provisions not inconsistent with this Plan as the Committee may deem advisable, including, without limitation, restrictions upon the exercise of Stock Awards. 

17.4  Section 409A. This Plan is intended to comply with § 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Plan shall be interpreted and administered in compliance therewith. Any payments described in this Plan that are due within the “short-term deferral period” as defined in § 409A of the Code shall not be treated as deferred compensation unless applicable laws require otherwise. Notwithstanding anything to the contrary in this Plan, to the extent required to avoid accelerated taxation and tax penalties under § 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six-month period 

11

TABLE OF CONTENTS

immediately following a Participant’s termination of Continuous Service shall instead be paid on the first payroll date after the six-month anniversary of such Participant’s separation from service (or such person’s death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Participant under § 409A of the Code and neither the Company nor the Committee will have any liability to any Participant for such tax or penalty. 

17.5  Section 162(m). To the extent the Committee issues any award under this Plan that is intended to be exempt from the deduction limitation of § 162(m) of the Code, the Committee may, without stockholder or grantee approval, amend the Plan or the relevant Option Certificate, Stock Appreciation Right Certificate, or Stock Grant Certificate retroactively or prospectively to the extent it determines necessary in order to comply with any subsequent clarification of § 162(m) of the Code required to preserve the Company’s federal income tax deduction for compensation paid pursuant to any such award. 

17.6  Rule 16b-3. The Committee shall have the right to amend any Stock Award to withhold or otherwise restrict the transfer of any Stock or cash under this Plan to a Participant as the Committee deems appropriate in order to satisfy any condition or requirement under Rule 16b-3 to the extent Rule 16 of the 1934 Act might be applicable to such grant or transfer. 

17.7  Clawback Policies. Notwithstanding any other provisions in this Plan, except as otherwise determined by the Committee, all Stock Awards under this Plan shall be subject to such “clawback” or similar policies relating to the recovery of compensation as may be (a) adopted by the Company from time to time, (b) set forth in an Option Certificate, Stock Appreciation Right Certificate, Stock Grant Certificate or other grant agreement, or (c) required by any applicable law, rule, regulation or stock exchange listing requirement. 

17.8  Withholding. Each Stock Award shall be made subject to the condition that the Participant consents to whatever action the Committee directs to satisfy the minimum statutory federal and state tax withholding requirements, if any, which the Company determines are applicable to the exercise of such Stock Award or to the satisfaction of an feiture conditions with respect to Stock subject to a Restricted Stock or RSU grant issued in the name of the Participant. No withholding shall be effected under this Plan which exceeds the minimum statutory federal and state withholding requirements. 

17.9  Beneficiary Designation. Each Participant who receives a Stock Award may from time to time name any beneficiary or beneficiaries by whom any right under the Plan is to be exercised in the case of such Participant’s death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. 

17.10  Non-Uniform Treatment. The Committee’s determinations under this Plan need not be uniform and may be made by the Committee selectively among persons who are eligible to receive, or actually receive, Stock Awards under this Plan. 

17.11  No Repricing. Except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares), Stock Awards issued under this Plan may not be repriced, replaced, regranted through cancellation, modified or exchanged for cash or property without stockholder approval if the effect of such repricing, replacement, regrant or modification would be to reduce the exercise price or base price of such Stock Awards to the same Participants. Without limiting the generality of the foregoing, without the approval of the Company’s stockholders, no Option or Stock Appreciation Right may be repurchased or otherwise cancelled in exchange for cash or other property (except in connection with a corporate transaction as contemplated by the foregoing sentence) if the exercise price of the Option or the grant price of the Stock Appreciation Right is equal to or less than the Fair Market Value of the Common Stock at the time of such repurchase or exchange. 

17.12  No Contract of Employment. The grant of a Stock Award to a Participant under this Plan shall not constitute a contract of employment or a right to continue to serve on the Board and shall not confer on a Participant any rights upon his or her termination of employment or service in addition to those rights, if any, expressly set forth in this Plan or the related Option Certificate, Stock Appreciation Right Certificate, or Stock Grant Certificate. 

17.13  Expenses. The costs of administering this Plan shall be paid by the Company. 

17.14  Construction. All references to sections (§) are to sections (§) of this Plan unless otherwise indicated. This Plan shall be construed under the laws of the State of Delaware. Each term set forth in § 2 shall, unless otherwise stated, have the meaning set forth opposite such term for purposes of this Plan and, for purposes of such definitions, the singular shall include the plural and the plural shall include the singular. Finally, if there is any conflict between the terms of this Plan and the terms of any Option Certificate, Stock Appreciation Right Certificate or Stock Grant Certificate, the terms of this Plan shall control. 

12

TABLE OF CONTENTS

17.15  Other Conditions. Each Option Certificate, Stock Appreciation Right Certificate or Stock Grant Certificate may require that a Participant (as a condition to the exercise of an Option or a Stock Appreciation Right or the issuance of Stock subject to a grant of Restricted Stock or RSUs) enter into any agreement or make such representations prepared by the Company, including (without limitation) any agreement which restricts the transfer of Stock acquired pursuant to a Restricted Stock grant or RSU grant or the exercise of an Option or a Stock Appreciation Right or provides for the repurchase of such Stock by the Company. 

	17.16		 
Coordination with Employment Agreements and Other Agreements. If the Company enters into an employment agreement
or other agreement with a Participant which expressly provides for the acceleration in vesting of an outstanding Stock Award or
for the extension of the deadline to exercise any rights under an outstanding Stock Award, any such acceleration or extension
shall be deemed effected pursuant to, and in accordance with, the terms of such outstanding Stock Award and this Plan even if
such employment agreement or other agreement is first effective after the date the outstanding Stock Award was granted or made.

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00232-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00232-of-00352.parquet"}]]