Document:

Alkaline Water Company Inc.: Exhibit 4.9 - Filed by newsfilecorp.com

THE ALKALINE WATER COMPANY INC.
2013 EQUITY
INCENTIVE PLAN 

1.          
Purpose; Eligibility. 

1.1                    
General Purpose. The name of this plan is The Alkaline Water
Company Inc. 2013 Equity Incentive Plan (the “Plan”). The purposes of the
Plan are to (a) enable The Alkaline Water Company Inc., a Nevada corporation
(the “Company”), and any Affiliate to attract and retain the types of
Employees, Consultants and Directors who will contribute to the Company’s long
range success; (b) provide incentives that align the interests of Employees,
Consultants and Directors with those of the shareholders of the Company; and (c)
promote the success of the Company’s business. 

1.2                     
Eligible Award Recipients. The persons eligible to receive
Awards are the Employees, Consultants and Directors of the Company and its
Affiliates and such other individuals designated by the Committee who are
reasonably expected to become Employees, Consultants and Directors after the
receipt of Awards. 

1.3                     
Available Awards. Awards that may be granted under the Plan
include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock
Appreciation Rights, (d) Restricted Awards and (e) Performance Compensation
Awards. 

2.           
Definitions. 

“Affiliate” means a corporation or other entity that, directly
or through one or more intermediaries, controls, is controlled by or is under
common control with, the Company. 

“Applicable Laws” means the requirements related to or
implicated by the administration of the Plan under applicable state corporate
law, United States federal and state securities laws, the Code, any stock
exchange or quotation system on which the shares of Common Stock are listed or
quoted, and the applicable laws of any foreign country or jurisdiction where
Awards are granted under the Plan. 

“Award” means any right granted under the Plan, including an
Incentive Stock Option, a Non-qualified Stock Option, a Stock Appreciation
Right, a Restricted Award, or a Performance Compensation Award. 

“Award Agreement” means a written agreement, contract,
certificate or other instrument or document evidencing the terms and conditions
of an individual Award granted under the Plan which may, in the discretion of
the Company, be transmitted electronically to any Participant. Each Award
Agreement shall be subject to the terms and conditions of the Plan. 

“Beneficial Owner” has the meaning assigned to such term in Rule
13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the
beneficial ownership of any particular “person” (as that term is used in Section
13(d)(3) of the Exchange Act), such “person” shall be deemed to have beneficial
ownership of all securities that such “person” has the right to acquire by
conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only after the passage of time. The terms
“Beneficially Owns” and “Beneficially Owned” have a corresponding meaning. 

“Board” means the Board of Directors of the Company, as
constituted at any time.

- 2 -

“Cause” means: 

With respect to any Employee or Consultant: 

	 	(a) 	
      If the Employee or Consultant is a party to an employment
      or service agreement with the Company or its Affiliates and such agreement
      provides for a definition of Cause or other similar term, the definition
      contained therein; or

	 	 	 
	 	(b) 	
      If no such agreement exists, or if such agreement does
      not define Cause or other similar term: (i) the commission of, or plea of
      guilty or no contest to, a felony or a crime involving moral turpitude or
      the commission of any other act involving willful malfeasance or material
      fiduciary breach with respect to the Company or an Affiliate; (ii) conduct
      that results in or is reasonably likely to result in harm to the
      reputation or business of the Company or any of its Affiliates; (iii)
      gross negligence or willful misconduct with respect to the Company or an
      Affiliate; or (iv) material violation of state or federal securities
      laws.

With respect to any Director, a
determination by a majority of the disinterested Board members that the Director
has engaged in any of the following: 

	 	(a) 	
      malfeasance in office;

	 	 	 
	 	(b) 	
      gross misconduct or neglect;

	 	 	 
	 	(c) 	
      false or fraudulent misrepresentation inducing the
      director’s appointment;

	 	 	 
	 	(d) 	
      wilful conversion of corporate funds; or

	 	 	 
	 	(e) 	
      repeated failure to participate in Board meetings on a
      regular basis despite having received proper notice of the meetings in
      advance.

The Committee, in its absolute
discretion, shall determine the effect of all matters and questions relating to
whether a Participant has been discharged for Cause. 

“Change in Control”

	 	(a) 	
      The direct or indirect sale, transfer, conveyance or
      other disposition (other than by way of merger or consolidation), in one
      or a series of related transactions, of all or substantially all of the
      properties or assets of the Company and its subsidiaries, taken as a
      whole, to any Person that is not a subsidiary of the Company;

	 	 	 
	 	(b) 	
      The Incumbent Directors cease for any reason to
      constitute at least a majority of the Board;

	 	 	 
	 	(c) 	
      The date which is 10 business days prior to the
      consummation of a complete liquidation or dissolution of the
    Company;

	 	 	 
	 	(d) 	
      The acquisition by any Person of Beneficial Ownership of
      50% or more (on a fully diluted basis) of either (i) the then outstanding
      shares of Common Stock of the Company, taking into account as outstanding for this purpose such Common Stock
issuable upon the exercise of options or warrants, the conversion of convertible
stock or debt, and the exercise of any similar right to acquire such Common
Stock (the “Outstanding Company Common 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 Company
Voting Securities”); provided, however, that for purposes of this Plan, the
following acquisitions shall not constitute a Change in Control: (A) any
acquisition by the Company or any Affiliate, (B) any acquisition by any employee
benefit plan sponsored or maintained by the Company or any subsidiary, (C) any
acquisition which complies with clauses, (i), (ii) and (iii) of subsection (e)
of this definition or (D) in respect of an Award held by a particular
Participant, any acquisition by the Participant or any group of persons
including the Participant (or any entity controlled by the Participant or any
group of persons including the Participant); or 

- 3 -

	 	(e) 	
      The consummation of a reorganization, merger,
      consolidation, statutory share exchange or similar form of corporate
      transaction involving the Company that requires the approval of the
      Company’s shareholders, whether for such transaction or the issuance of
      securities in the transaction (a “Business Combination”), unless
      immediately following such Business Combination: (i) more than 50% of the
      total voting power of (A) the entity resulting from such Business
      Combination (the “Surviving Company”), or (B) if applicable, the
      ultimate parent entity that directly or indirectly has beneficial
      ownership of sufficient voting securities eligible to elect a majority of
      the members of the board of directors (or the analogous governing body) of
      the Surviving Company (the “Parent Company”), is represented by the
      Outstanding Company Voting Securities that were outstanding immediately
      prior to such Business Combination (or, if applicable, is represented by
      shares into which the Outstanding Company Voting Securities were converted
      pursuant to such Business Combination), and such voting power among the
      holders thereof is in substantially the same proportion as the voting
      power of the Outstanding Company Voting Securities among the holders
      thereof immediately prior to the Business Combination; (ii) no Person
      (other than any employee benefit plan sponsored or maintained by the
      Surviving Company or the Parent Company) is or becomes the Beneficial
      Owner, directly or indirectly, of 50% or more of the total voting power of
      the outstanding voting securities eligible to elect members of the board
      of directors of the Parent Company (or the analogous governing body) (or,
      if there is no Parent Company, the Surviving Company); and (iii) at least
      a majority of the members of the board of directors (or the analogous
      governing body) of the Parent Company (or, if there is no Parent Company,
      the Surviving Company) following the consummation of the Business
      Combination were Board members at the time of the Board’s approval of the
      execution of the initial agreement providing for such Business
      Combination.

“Code” means the Internal Revenue Code of 1986, as it may be
amended from time to time. Any reference to a section of the Code shall be
deemed to include a reference to any regulations promulgated thereunder. 

“Committee” means the Board or a committee of one or more
members of the Board appointed by the Board to administer the Plan in accordance
with Section 3.3 and Section 3.4. 

- 4 -

“Common Stock” means the common stock, $0.001 par value per
share, of the Company, the preferred stock, $0.001 par value per share, of the
Company, or such other securities of the Company as may be designated by the
Committee from time to time in substitution thereof. 

“Company” means The Alkaline Water Company Inc., a Nevada
corporation, and any successor thereto. 

“Consultant” means any individual who is engaged by the Company
or any Affiliate to render consulting or advisory services. 

“Continuous Service” means that the Participant’s service with
the Company or an Affiliate, whether as an Employee, Consultant or Director, is
not interrupted or terminated. The 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 Continuous Service; provided further that if any Award is
subject to Section 409A of the Code, this sentence shall only be given effect to
the extent consistent with Section 409A of the Code. For example, a change in
status from an Employee of the Company to a Director of an Affiliate will not
constitute an interruption of Continuous Service. The Committee or its delegate,
in its sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved by that
party, including sick leave, military leave or any other personal or family
leave of absence. 

“Covered Employee” has the same meaning as set forth in Section
162(m)(3) of the Code, as interpreted by Internal Revenue Service. 

“Director” means a member of the Board.

“Disability” means that the Participant is unable to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment; provided, however, for purposes of determining
the term of an Incentive Stock Option pursuant to Section 6.9 hereof, the term
Disability shall have the meaning ascribed to it under Section 22(e)(3) of the
Code. The determination of whether an individual has a Disability shall be
determined under procedures established by the Committee. Except in situations
where the Committee is determining Disability for purposes of the term of an
Incentive Stock Option pursuant to Section 6.9 hereof within the meaning of
Section 22(e)(3) of the Code, the Committee may rely on any determination that a
Participant is disabled for purposes of benefits under any long-term disability
plan maintained by the Company or any Affiliate in which a Participant
participates. 

“Disqualifying Disposition” has the meaning set forth in Section
14.11. 

“Effective Date” shall mean the date as of which this Plan is
adopted by the Board.

“Employee” means any person, including an Officer or Director,
employed by the Company or an Affiliate; provided, that, for purposes of
determining eligibility to receive Incentive Stock Options, an Employee shall
mean an employee of the Company or a parent or subsidiary corporation within the
meaning of IRC Section 424. Mere service as a Director or payment of a
director’s fee by the Company or an Affiliate shall not be sufficient to
constitute “employment” by the Company or an Affiliate. 

- 5 -

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

“Fair Market Value” means, as of any date, the value of the
Common Stock as determined below. If the Common Stock is listed or quoted on any
established stock exchange or public market, including without limitation, the
New York Stock Exchange, the NASDAQ Stock Market, the OTC Bulletin Board
operated by the Financial Industry Regulatory Authority, or one of marketplaces
operated by the OTC Markets Group, the Fair Market Value shall be the closing
price of a share of Common Stock (or if no sales were reported the closing price
on the date immediately preceding such date) as quoted on such exchange or
public market on the day of determination, as reported in the source as the
Committee deems reliable. In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the Committee
and such determination shall be conclusive and binding on all persons. 

“Free Standing Rights” has the meaning set forth in Section
7.1(a) .

“Good Reason” means:

	 	(a) 	
      If an Employee or Consultant is a party to an employment
      or service agreement with the Company or its Affiliates and such agreement
      provides for a definition of Good Reason or other similar term, the
      definition contained therein; or

	 	 	 
	 	(b) 	
      If no such agreement exists or if such agreement does not
      define Good Reason, the occurrence of one or more of the following without
      the Participant’s express written consent, which circumstances are not
      remedied by the Company within thirty (30) days of its receipt of a
      written notice from the Participant describing the applicable
      circumstances (which notice must be provided by the Participant within
      ninety (90) days of the Participant’s knowledge of the applicable
      circumstances): (i) any material, adverse change in the Participant’s
      duties, responsibilities, authority, title, status or reporting structure;
      (ii) a material reduction in the Participant’s base salary or bonus
      opportunity; or (iii) a geographical relocation of the Participant’s
      principal office location by more than fifty (50)
miles.

“Grant Date” means the date on which the Committee adopts a
resolution, or takes other appropriate action, expressly granting an Award to a
Participant that specifies the key terms and conditions of the Award or, if a
later date is set forth in such resolution, then such date as is set forth in
such resolution. 

“Incentive Stock Option” means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code. 

“Incumbent Directors” means individuals who, on the Effective
Date, constitute the Board, provided that any individual becoming a Director
subsequent to the Effective Date whose election or nomination for election to
the Board was approved by a vote of at least two- thirds of the Incumbent
Directors then on the Board (either by a specific vote or by approval of the
proxy statement of the Company in which such person is named as a nominee for
Director without objection to such nomination) shall be an Incumbent Director.
No individual initially elected or nominated as a director of the Company as a
result of an actual or threatened election contest with respect to Directors or
as a result of any other actual or threatened solicitation of proxies by or on
behalf of any person other than the Board shall be an Incumbent Director. 

- 6 -

“Negative Discretion” means the discretion authorized by the
Plan to be applied by the Committee to eliminate or reduce the size of a
Performance Compensation Award in accordance with Section 7.3(d)(iv) of the
Plan; provided, that, the exercise of such discretion would not cause the
Performance Compensation Award to fail to qualify as “performance- based
compensation” under Section 162(m) of the Code. 

“Non-Employee Director” means a Director who is a “non-employee
director” within the meaning of Rule 16b-3. 

“Non-qualified Stock Option” means an Option that by its terms
does not qualify or is not intended to qualify as an Incentive Stock Option.

“Officer” means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder. 

“Option” means an Incentive Stock Option or a Non-qualified
Stock Option granted pursuant to the Plan. 

“Optionholder” means a person to whom an Option is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Option. 

“Option Exercise Price” means the price at which a share of
Common Stock may be purchased upon the exercise of an Option. 

“Outside Director” means a Director who is an “outside director”
within the meaning of Section 162(m) of the Code and Treasury Regulations
Section 1.162 -27(e)(3) or any successor to such statute and regulation. 

“Participant” means an eligible person to whom an Award is
granted pursuant to the Plan or, if applicable, such other person who holds an
outstanding Award. 

“Performance Compensation Award” means any Award designated by
the Committee as a Performance Compensation Award pursuant to Section 7.3 of the
Plan. 

“Performance Criteria” means the criterion or criteria that the
Committee shall select for purposes of establishing the Performance Goal(s) for
a Performance Period with respect to any Performance Compensation Award under
the Plan. The Performance Criteria that will be used to establish the
Performance Goal(s) shall be based on the attainment of specific levels of
performance of the Company (or Affiliate, division, business unit or operational
unit of the Company) and shall be limited to the following: 

	 	(a) 	
      net earnings or net income (before or after
  taxes);

	 	 	 
	 	(b) 	
      basic or diluted earnings per share (before or after
      taxes);

	 	 	 
	 	(c) 	
      net revenue or net revenue growth;

	 	 	 
	 	(d) 	
      gross revenue;

- 7 -

	 	(e) 	
      gross profit or gross profit growth;

	 	 	 
	 	(f) 	
      net operating profit (before or after taxes);

	 	 	 
	 	(g) 	
      return on assets, capital, invested capital, equity, or
      sales;

	 	 	 
	 	(h) 	
      cash flow (including, but not limited to, operating cash
      flow, free cash flow, and cash flow return on capital);

	 	 	 
	 	(i) 	
      earnings before or after taxes, interest, depreciation
      and/or amortization;

	 	 	 
	 	(j) 	
      gross or operating margins;

	 	 	 
	 	(k) 	
      improvements in capital structure;

	 	 	 
	 	(l) 	
      budget and expense management;

	 	 	 
	 	(m) 	
      productivity ratios;

	 	 	 
	 	(n) 	
      economic value added or other value added
      measurements;

	 	 	 
	 	(o) 	
      share price (including, but not limited to, growth
      measures and total shareholder return);

	 	 	 
	 	(p) 	
      expense targets;

	 	 	 
	 	(q) 	
      margins;

	 	 	 
	 	(r) 	
      operating efficiency;

	 	 	 
	 	(s) 	
      working capital targets;

	 	 	 
	 	(t) 	
      enterprise value;

	 	 	 
	 	(u) 	
      safety record; and

	 	 	 
	 	(v) 	
      completion of acquisitions or business
  expansion.

Any one or more of the Performance Criteria may be used on an
absolute or relative basis to measure the performance of the Company and/or an
Affiliate as a whole or any division, business unit or operational unit of the
Company and/or an Affiliate or any combination thereof, as the Committee may
deem appropriate, or as compared to the performance of a group of comparable
companies, or published or special index that the Committee, in its sole
discretion, deems appropriate, or the Committee may select Performance Criterion
(o) above as compared to various stock market indices. The Committee also has
the authority to provide for accelerated vesting of any Award based on the
achievement of Performance Goals pursuant to the Performance Criteria specified
in this paragraph. To the extent required under Section 162 (m) of the Code, the
Committee shall, within the first 90 days of a Performance Period (or, if longer
or shorter, within the maximum period allowed under Section 162(m) of the Code),
define in an objective fashion the manner of calculating the Performance
Criteria it selects to use for such Performance Period. In the event that
applicable tax and/or securities laws change to permit the Committee discretion to alter the governing
Performance Criteria without obtaining shareholder approval of such changes, the
Committee shall have sole discretion to make such changes without obtaining
shareholder approval. 

- 8 -

“Performance Formula” means, for a Performance Period, the one
or more objective formulas applied against the relevant Performance Goal to
determine, with regard to the Performance Compensation Award of a particular
Participant, whether all, some portion but less than all, or none of the
Performance Compensation Award has been earned for the Performance Period. 

“Performance Goals” means, for a Performance Period, the one or
more goals established by the Committee for the Performance Period based upon
the Performance Criteria. The Committee is authorized at any time during the
first 90 days of a Performance Period (or, if longer or shorter, within the
maximum period allowed under Section 162(m) of the Code), or at any time
thereafter (but only to the extent the exercise of such authority after such
period would not cause the Performance Compensation Awards granted to any
Participant for the Performance Period to fail to qualify as “performance-based
compensation” under Section 162(m) of the Code), in its sole and absolute
discretion, to adjust or modify the calculation of a Performance Goal for such
Performance Period to the extent permitted under Section 162(m) of the Code in
order to prevent the dilution or enlargement of the rights of Participants based
on the following events: 

	 	(a) 	
      asset write-downs;

	 	 	 
	 	(b) 	
      litigation or claim judgments or settlements;

	 	 	 
	 	(c) 	
      the effect of changes in tax laws, accounting principles,
      or other laws or regulatory rules affecting reported results;

	 	 	 
	 	(d) 	
      any reorganization and restructuring programs;

	 	 	 
	 	(e) 	
      extraordinary nonrecurring items as described in
      Accounting Principles Board Opinion No. 30 (or any successor or
      pronouncement thereto) and/or in management’s discussion and analysis of
      financial condition and results of operations appearing in the Company’s
      annual report to shareholders for the applicable year;

	 	 	 
	 	(f) 	
      acquisitions or divestitures;

	 	 	 
	 	(g) 	
      any other specific unusual or nonrecurring events, or
      objectively determinable category thereof;

	 	 	 
	 	(h) 	
      foreign exchange gains and losses; and

	 	 	 
	 	(i) 	
      a change in the Company’s fiscal
year.

“Performance Period” means the one or more periods of time not
less than one fiscal quarter in duration, as the Committee may select, over
which the attainment of one or more Performance Goals will be measured for the
purpose of determining a Participant’s right to and the payment of a Performance
Compensation Award. 

- 9 -

“Permitted Transferee” means:

	 	(a) 	
      a member of the Optionholder’s immediate family (child,
      stepchild, grandchild, parent, stepparent, grandparent, spouse, former
      spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
      daughter-in-law, brother-in-law, or sister-in-law, including adoptive
      relationships), any person sharing the Optionholder’s household (other
      than a tenant or employee), a trust in which these persons have more than
      50% of the beneficial interest, a foundation in which these persons (or
      the Optionholder) control the management of assets, and any other entity
      in which these persons (or the Optionholder) own more than 50% of the
      voting interests;

	 	 	
       

	 	(b) 	
      third parties designated by the Committee in connection
      with a program established and approved by the Committee pursuant to which
      Participants may receive a cash payment or other consideration in
      consideration for the transfer of a Non-qualified Stock Option;
  and

	 	 	
       

	 	(c) 	
      such other transferees as may be permitted by the
      Committee in its sole discretion.

“Plan” means this The Alkaline Water Company Inc. 2013 Equity
Incentive Plan, as amended and/or amended and restated from time to time. 

“Related Rights” has the meaning set forth in Section 7.1(a) .

“Restricted Award” means any Award granted pursuant to Section
7.2(a) .

“Restricted Period” has the meaning set forth in Section 7.2(a)
.. 

“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act
or any successor to Rule 16b-3, as in effect from time to time. 

“Securities Act” means the Securities Act of 1933, as
amended.

“Stock Appreciation Right” means the right pursuant to an Award
granted under Section 7.1 to receive, upon exercise, an amount payable in cash
or shares equal to the number of shares subject to the Stock Appreciation Right
that is being exercised multiplied by the excess of (a) the Fair Market Value of
a share of Common Stock on the date the Award is exercised, over (b) the
exercise price specified in the Stock Appreciation Right Award Agreement. 

“Stock for Stock Exchange” has the meaning set forth in Section
6.3.

“Ten Percent Shareholder” means a person who owns (or is deemed
to own pursuant to Section 424(d) of the Code) stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company or of any
of its Affiliates. 

3.           
Administration. 

3.1                      
Authority of Committee. The Plan shall be administered initially
by the Board, except that the Board may, in its discretion, establish a
committee composed of two (2) or more members of the Board to administer the
Plan, which committee may be an executive, compensation or other committee, including a separate committee especially created
for this purpose. Subject to the terms of the Plan, the Committee’s charter and
Applicable Laws, and in addition to other express powers and authorization
conferred by the Plan, the Committee shall have the authority: 

- 10 -

	 	(a) 	
      to construe and interpret the Plan and apply its
      provisions;

	 	 	
       

	 	(b) 	
      to promulgate, amend, and rescind rules and regulations
      relating to the administration of the Plan;

	 	 	
       

	 	(c) 	
      to authorize any person to execute, on behalf of the
      Company, any instrument required to carry out the purposes of the
    Plan;

	 	 	
       

	 	(d) 	
      to delegate its authority to one or more Officers of the
      Company with respect to Awards that do not involve Covered Employees or
      “insiders” within the meaning of Section 16 of the Exchange Act;

	 	 	
       

	 	(e) 	
      to determine when Awards are to be granted under the Plan
      and the applicable Grant Date;

	 	 	
       

	 	(f) 	
      from time to time to select, subject to the limitations
      set forth in this Plan, those Participants to whom Awards shall be
      granted;

	 	 	
       

	 	(g) 	
      to determine the number of shares of Common Stock to be
      made subject to each Award;

	 	 	
       

	 	(h) 	
      to determine whether each Option is to be an Incentive
      Stock Option or a Non-qualified Stock Option;

	 	 	
       

	 	(i) 	
      to prescribe the terms and conditions of each Award,
      including, without limitation, the exercise price and medium of payment
      and vesting provisions, and to specify the provisions of the Award
      Agreement relating to such grant;

	 	 	
       

	 	(j) 	
      to designate an Award (including a cash bonus) as a
      Performance Compensation Award and to select the Performance Criteria that
      will be used to establish the Performance Goals;

	 	 	
       

	 	(k) 	
      to amend any outstanding Awards, including for the
      purpose of modifying the time or manner of vesting, or the term of any
      outstanding Award; provided, however, that if any such amendment impairs a
      Participant’s rights or increases a Participant’s obligations under his or
      her Award or creates or increases a Participant’s federal income tax
      liability with respect to an Award, such amendment shall also be subject
      to the Participant’s consent;

	 	 	
       

	 	(l) 	
      to determine the duration and purpose of leaves of
      absences which may be granted to a Participant without constituting
      termination of their employment for purposes of the Plan, which periods
      shall be no shorter than the periods generally applicable to Employees
      under the Company’s employment policies;

- 11 -

	 	(m) 	
      to make decisions with respect to outstanding Awards that
      may become necessary upon a change in corporate control or an event that
      triggers anti-dilution adjustments;

	 	 	
       

	 	(n) 	
      to interpret, administer, reconcile any inconsistency in,
      correct any defect in and/or supply any omission in the Plan and any
      instrument or agreement relating to, or Award granted under, the Plan;
      and

	 	 	
       

	 	(o) 	
      to exercise discretion to make any and all other
      determinations which it determines to be necessary or advisable for the
      administration of the Plan.

The Committee also may modify the purchase price or the
exercise price of any outstanding Award, provided that shareholder approval
shall be required before the repricing is effective if such shareholder approval
is necessary to satisfy any Applicable Laws. 

3.2                      
Committee Decisions Final. All decisions made by the Committee
pursuant to the provisions of the Plan shall be final and binding on the Company
and the Participants, unless such decisions are determined by a court having
jurisdiction to be arbitrary and capricious. 

3.3                      
Delegation. The Committee, or if no Committee has been
appointed, the Board, may delegate administration of the Plan to a committee or
committees of one or more members of the Board, and the term “Committee”
shall apply to any person or persons to whom such authority has been delegated.
The Committee shall have the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and references in
this Plan to the Board or the Committee shall thereafter be to the committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. The members of the Committee shall be appointed by
and serve at the pleasure of the Board. From time to time, the Board may
increase or decrease the size of the Committee, add additional members to,
remove members (with or without cause) from, appoint new members in substitution
therefor, and fill vacancies, however caused, in the Committee. The Committee
shall act pursuant to a vote of the majority of its members or, in the case of a
Committee comprised of only two members, the unanimous consent of its members,
whether present or not, or by the written consent of the majority of its members
and minutes shall be kept of all of its meetings and copies thereof shall be
provided to the Board. Subject to the limitations prescribed by the Plan and the
Board, the Committee may establish and follow such rules and regulations for the
conduct of its business as it may determine to be advisable.

3.4                      
Committee Composition. If the Board establishes a committee to administer
the Plan, except as otherwise determined by the Board, the Committee shall
consist solely of two or more Non-Employee Directors who are also Outside
Directors. The Board shall have discretion to determine whether or not it
intends to comply with the exemption requirements of Rule 16b-3 and/or Section
162(m) of the Code. However, if the Board intends to satisfy such exemption
requirements, with respect to Awards to any Covered Employee and with respect to
any insider subject to Section 16 of the Exchange Act, the Committee shall be a
compensation committee of the Board that at all times consists solely of two or
more Non-Employee Directors who are also Outside Directors. Within the scope of
such authority, the Board or the Committee may (a) delegate to a committee of
one or more members of the Board who are not Outside Directors the authority to
grant Awards to eligible persons who are either (i) not then Covered Employees
and are not expected to be Covered Employees at the time of recognition of
income resulting from such Award or (ii) not persons with respect to whom the
Company wishes to comply with Section 162(m) of the Code or (b) delegate to a
committee of one or more members of the Board who are not Non-Employee Directors
the authority to grant Awards to eligible persons who are not then subject to
Section 16 of the Exchange Act. Nothing herein shall create an inference that an
Award is not validly granted under the Plan in the event Awards are granted
under the Plan by a compensation committee of the Board that does not at all
times consist solely of two or more Non-Employee Directors who are also Outside
Directors. 

- 12 -

3.5                      
Indemnification. In addition to such other rights of indemnification as
they may have as Directors or members of the Committee, and to the extent
allowed by Applicable Laws, the Committee shall be indemnified by the Company
against the reasonable expenses, including attorney’s fees, actually incurred in
connection with any action, suit or proceeding or in connection with any appeal
therein, to which the Committee may be party by reason of any action taken or
failure to act under or in connection with the Plan or any Award granted under
the Plan, and against all amounts paid by the Committee in settlement thereof
(provided, however, that the settlement has been approved by the Company, which
approval shall not be unreasonably withheld) or paid by the Committee in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such Committee did not act in good faith and in a manner which
such person reasonably believed to be in the best interests of the Company, or
in the case of a criminal proceeding, had no reason to believe that the conduct
complained of was unlawful; provided, however, that within 60 days after
institution of any such action, suit or proceeding, such Committee shall, in
writing, offer the Company the opportunity at its own expense to handle and
defend such action, suit or proceeding. 

4.           
Shares Subject to the Plan. 

4.1                       Subject to adjustment in accordance with Section 11, a total of
7,700,000 shares of Common Stock shall be available for the grant of Awards
under the Plan. During the terms of the Awards, the Company shall keep available
at all times the number of shares of Common Stock required to satisfy such
Awards. 

4.2                      
Shares of Common Stock available for distribution under the Plan may consist, in
whole or in part, of authorized and unissued shares, treasury shares or shares
reacquired by the Company in any manner. 

4.3                      
Any shares of Common Stock subject to an Award that is canceled,
forfeited or expires prior to exercise or realization, either in full or in
part, shall again become available for issuance under the Plan. Notwithstanding
anything to the contrary contained herein: shares subject to an Award under the
Plan shall not again be made available for issuance or delivery under the Plan
if such shares are (a) shares tendered in payment of an Option, (b) shares
delivered or withheld by the Company to satisfy any tax withholding obligation,
or (c) shares covered by a stock-settled Stock Appreciation Right or other
Awards that were not issued upon the settlement of the Award. 

5.           
Eligibility. 

5.1                      
Eligibility for Specific Awards. Incentive Stock Options may be
granted only to Employees. Awards other than Incentive Stock Options may be
granted to Employees, Consultants and Directors and those individuals whom the
Committee determines are reasonably expected to become Employees, Consultants
and Directors following the Grant Date. 

- 13 -

5.2                      
Ten Percent Shareholders. A Ten Percent Shareholder shall not be
granted an Incentive Stock Option unless the Option Exercise Price is at least
110% of the Fair Market Value of the Common Stock at the Grant Date and the
Option is not exercisable after the expiration of five years from the Grant
Date. 

6.           
Option Provisions.

Each Option granted under the Plan shall be evidenced by an Award
Agreement. Each Option so granted shall be subject to the conditions set forth
in this Section 6, and to such other conditions not inconsistent with the Plan
as may be reflected in the applicable Award Agreement. All Options shall be
separately designated Incentive Stock Options or Non-qualified Stock Options at
the time of grant, and, if certificates are issued, a separate certificate or
certificates will be issued for shares of Common Stock purchased on exercise of
each type of Option. Notwithstanding the foregoing, the Company shall have no
liability to any Participant or any other person if an Option designated as an
Incentive Stock Option fails to qualify as such at any time or if an Option is
determined to constitute “nonqualified deferred compensation” within the meaning
of Section 409A of the Code and the terms of such Option do not satisfy the
requirements of Section 409A of the Code. The provisions of separate Options
need not be identical, but each Option shall include (through incorporation of
provisions hereof by reference in the Option or otherwise) the substance of each
of the following provisions: 

6.1                      
Term. Subject to the provisions of Section 5.2 regarding Ten
Percent Shareholders, no Incentive Stock Option shall be exercisable after the
expiration of 10 years from the Grant Date. The term of a Non-qualified Stock
Option granted under the Plan shall be determined by the Committee; provided,
however, no Non-qualified Stock Option shall be exercisable after the expiration
of 10 years from the Grant Date. 

6.2                      
Exercise Price of an Incentive Stock Option. Subject to the
provisions of Section 5.2 regarding Ten Percent Shareholders, the Option
Exercise Price of each Incentive Stock Option shall be not less than 100% of the
Fair Market Value of the Common Stock subject to the Option on the Grant Date.
Notwithstanding the foregoing, an Incentive Stock Option may be granted with an
Option Exercise Price lower than that set forth in the preceding sentence if
such Option is granted pursuant to an assumption or substitution for another
option in a manner satisfying the provisions of Section 424(a) of the Code. 

6.3                      
Consideration. The Option Exercise Price of Common Stock
acquired pursuant to an Option shall be paid, to the extent permitted by
applicable statutes and regulations, either (a) in cash or by certified or bank
check at the time the Option is exercised or (b) in the discretion of the
Committee, upon such terms as the Committee shall approve, the Option Exercise
Price may be paid: (i) by delivery to the Company of other Common Stock, duly
endorsed for transfer to the Company, with a Fair Market Value on the date of
delivery equal to the Option Exercise Price (or portion thereof) due for the
number of shares being acquired, or by means of attestation whereby the
Participant identifies for delivery specific shares of Common Stock that have an
aggregate Fair Market Value on the date of attestation equal to the Option
Exercise Price (or portion thereof) and receives a number of shares of Common
Stock equal to the difference between the number of shares thereby purchased and
the number of identified attestation shares of Common Stock (a “Stock for
Stock Exchange”); (ii) a “cashless” exercise program established with a
broker; (iii) by reduction in the number of shares of Common Stock otherwise
deliverable upon exercise of such Option with a Fair Market Value equal to the
aggregate Option Exercise Price at the time of exercise; (iv) any combination of
the foregoing methods; or (v) in any other form of legal consideration that may be acceptable to
the Committee. Unless otherwise specifically provided in the Option, the
exercise price of Common Stock acquired pursuant to an Option that is paid by
delivery (or attestation) to the Company of other Common Stock acquired,
directly or indirectly from the Company, shall be paid only by shares of the
Common Stock of the Company that have been held for more than six months (or
such longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes). Notwithstanding the foregoing, during any period
for which the Common Stock is publicly traded an exercise by a Director or
Officer that involves or may involve a direct or indirect extension of credit or
arrangement of an extension of credit by the Company, directly or indirectly, in
violation of Section 402(a) of the Sarbanes-Oxley Act of 2002 shall be
prohibited with respect to any Award under this Plan. 

- 14 -

6.4                      
Transferability of an Incentive Stock Option. An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder. Notwithstanding the foregoing, the Optionholder may,
by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option. 

6.5                      
Transferability of a Non-qualified Stock Option. A Non-qualified
Stock Option may, in the sole discretion of the Committee, be transferable to a
Permitted Transferee, upon written approval by the Committee to the extent
provided in the Award Agreement. If the Non- qualified Stock Option does not
provide for transferability, then the Non-qualified Stock Option shall not be
transferable except by will or by the laws of descent and distribution and shall
be exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written
notice to the Company, in a form satisfactory to the Company, designate a third
party who, in the event of the death of the Optionholder, shall thereafter be
entitled to exercise the Option. 

6.6                      
Vesting of Options. Each Option may, but need not, vest and
therefore become exercisable in periodic installments that may, but need not, be
equal. The Option may be subject to such other terms and conditions on the time
or times when it may be exercised (which may be based on performance or other
criteria) as the Committee may deem appropriate. The vesting provisions of
individual Options may vary. No Option may be exercised for a fraction of a
share of Common Stock. The Committee may, but shall not be required to, provide
for an acceleration of vesting and exercisability in the terms of any Award
Agreement upon the occurrence of a specified event. 

6.7                      
Termination of Continuous Service. Unless otherwise provided in
an Award Agreement or in an employment agreement the terms of which have been
approved by the Committee, in the event an Optionholder’s Continuous Service
terminates (other than upon the Optionholder’s death or Disability), the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination) but only
within such period of time ending on the earlier of (a) the date three months
following the termination of the Optionholder’s Continuous Service or (b) the
expiration of the term of the Option as set forth in the Award Agreement;
provided that, if the termination of Continuous Service is by the Company for
Cause, all outstanding Options (whether or not vested) shall immediately
terminate and cease to be exercisable. If, after termination, the Optionholder
does not exercise his or her Option within the time specified in the Award
Agreement, the Option shall terminate. 

- 15 -

6.8                      
Extension of Termination Date. An Optionholder’s Award Agreement
may also provide that if the exercise of the Option following the termination of
the Optionholder’s Continuous Service for any reason would be prohibited at any
time because the issuance of shares of Common Stock would violate the
registration requirements under the Securities Act or any other state or federal
securities law or the rules of any securities exchange or interdealer quotation
system, then the Option shall terminate on the earlier of (a) the expiration of
the term of the Option in accordance with Section 6.1 or (b) the expiration of a
period after termination of the Participant’s Continuous Service that is three
months after the end of the period during which the exercise of the Option would
be in violation of such registration or other securities law requirements. 

6.9                       Disability of Optionholder. Unless otherwise provided in an
Award Agreement, in the event that an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s Disability, the Optionholder may
exercise his or her Option (to the extent that the Optionholder was entitled to
exercise such Option as of the date of termination), but only within such period
of time ending on the earlier of (a) the date 12 months following such
termination or (b) the expiration of the term of the Option as set forth in the
Award Agreement. If, after termination, the Optionholder does not exercise his
or her Option within the time specified herein or in the Award Agreement, the
Option shall terminate. 

6.10                      
Death of Optionholder. Unless otherwise provided in an Award
Agreement, in the event an Optionholder’s Continuous Service terminates as a
result of the Optionholder’s death, then the Option may be exercised (to the
extent the Optionholder was entitled to exercise such Option as of the date of
death) by the Optionholder’s estate, by a person who acquired the right to
exercise the Option by bequest or inheritance or by a person designated to
exercise the Option upon the Optionholder’s death, but only within the period
ending on the earlier of (a) the date 12 months following the date of death or
(b) the expiration of the term of such Option as set forth in the Award
Agreement. If, after the Optionholder’s death, the Option is not exercised
within the time specified herein or in the Award Agreement, the Option shall
terminate. 

6.11                      
Incentive Stock Option $100,000 Limitation. To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time
by any Optionholder during any calendar year (under all plans of the Company and
its Affiliates) exceeds $100,000, the Options or portions thereof which exceed
such limit (according to the order in which they were granted) shall be treated
as Non-qualified Stock Options. 

7.           
Provisions of Awards Other Than Options. 

7.1                      
Stock Appreciation Rights. 

	 	(a) 	
      General. Each Stock Appreciation Right granted
      under the Plan shall be evidenced by an Award Agreement. Each Stock
      Appreciation Right so granted shall be subject to the conditions set forth
      in this Section 7.1, and to such other conditions not inconsistent with
      the Plan as may be reflected in the applicable Award Agreement. Stock
      Appreciation Rights may be granted alone (“Free Standing Rights”)
      or in tandem with an Option granted under the Plan (“Related
      Rights”).

	 	 	
       

	 	(b) 	
      Grant Requirements. Any Related Right that relates
      to a Non-qualified Stock Option may be granted at the same time the Option
      is granted or at any time thereafter but before the exercise or expiration of the Option. Any Related
Right that relates to an Incentive Stock Option must be granted at the same time
the Incentive Stock Option is granted. 

- 16 -

	 	(c) 	
      Term of Stock Appreciation Rights. The term of a
      Stock Appreciation Right granted under the Plan shall be determined by the
      Committee; provided, however, no Stock Appreciation Right shall be
      exercisable later than the tenth anniversary of the Grant Date.

	 	 	
       

	 	(d) 	
      Vesting of Stock Appreciation Rights. Each Stock
      Appreciation Right may, but need not, vest and therefore become
      exercisable in periodic installments that may, but need not, be equal. The
      Stock Appreciation Right may be subject to such other terms and conditions
      on the time or times when it may be exercised as the Committee may deem
      appropriate. The vesting provisions of individual Stock Appreciation
      Rights may vary. No Stock Appreciation Right may be exercised for a
      fraction of a share of Common Stock. The Committee may, but shall not be
      required to, provide for an acceleration of vesting and exercisability in
      the terms of any Stock Appreciation Right upon the occurrence of a
      specified event.

	 	 	
       

	 	(e) 	
      Exercise and Payment. Upon exercise of a Stock
      Appreciation Right, the holder shall be entitled to receive from the
      Company an amount equal to the number of shares of Common Stock subject to
      the Stock Appreciation Right that is being exercised multiplied by the
      excess of (i) the Fair Market Value of a share of Common Stock on the date
      the Award is exercised, over (ii) the exercise price specified in the
      Stock Appreciation Right or related Option. Payment with respect to the
      exercise of a Stock Appreciation Right shall be made on the date of
      exercise. Payment shall be made in the form of shares of Common Stock
      (with or without restrictions as to substantial risk of forfeiture and
      transferability, as determined by the Committee in its sole discretion),
      cash or a combination thereof, as determined by the Committee.

	 	 	
       

	 	(f) 	
      Exercise Price. The exercise price of a Free
      Standing Stock Appreciation Right shall be determined by the Committee. A
      Related Right granted simultaneously with or subsequent to the grant of an
      Option and in conjunction therewith or in the alternative thereto shall
      have the same exercise price as the related Option, shall be transferable
      only upon the same terms and conditions as the related Option, and shall
      be exercisable only to the same extent as the related Option; provided,
      however, that a Stock Appreciation Right, by its terms, shall be
      exercisable only when the Fair Market Value per share of Common Stock
      subject to the Stock Appreciation Right and related Option exceeds the
      exercise price per share thereof and no Stock Appreciation Rights may be
      granted in tandem with an Option unless the Committee determines that the
      requirements of Section 7.1(b) are satisfied.

	 	 	
       

	 	(g) 	
      Reduction in the Underlying Option Shares. Upon
      any exercise of a Related Right, the number of shares of Common Stock for
      which any related Option shall be exercisable shall be reduced by the
      number of shares for which the Stock Appreciation Right has been
      exercised. The number of shares of Common Stock for which a Related Right
      shall be exercisable shall be reduced upon any exercise of any related
      Option by the number of shares of Common Stock for which such Option has
      been exercised.

- 17 -

7.2                      
Restricted Awards. 

	 	(a) 	
      General. A Restricted Award is an Award of actual
      shares of Common Stock (“Restricted Stock”) or hypothetical Common
      Stock units (“Restricted Stock Units”) having a value equal to the
      Fair Market Value of an identical number of shares of Common Stock, which
      may, but need not, provide that such Restricted Award may not be sold,
      assigned, transferred or otherwise disposed of, pledged or hypothecated as
      collateral for a loan or as security for the performance of any obligation
      or for any other purpose for such period (the “Restricted Period”)
      as the Committee shall determine. Each Restricted Award granted under the
      Plan shall be evidenced by an Award Agreement. Each Restricted Award so
      granted shall be subject to the conditions set forth in this Section 7.2,
      and to such other conditions not inconsistent with the Plan as may be
      reflected in the applicable Award Agreement.

	 	 	
       

	 	(b) 	
      Restricted Stock and Restricted Stock
  Units.

	 	(i) 	
      Each Participant granted Restricted Stock shall execute
      and deliver to the Company an Award Agreement with respect to the
      Restricted Stock setting forth the restrictions and other terms and
      conditions applicable to such Restricted Stock. If the Committee
      determines that the Restricted Stock shall be held by the Company or in
      escrow rather than delivered to the Participant pending the release of the
      applicable restrictions, the Committee may require the Participant to
      additionally execute and deliver to the Company (A) an escrow agreement
      satisfactory to the Committee, if applicable and (B) the appropriate blank
      stock power with respect to the Restricted Stock covered by such
      agreement. If a Participant fails to execute an agreement evidencing an
      Award of Restricted Stock and, if applicable, an escrow agreement and
      stock power, the Award shall be null and void. Subject to the restrictions
      set forth in the Award, the Participant generally shall have the rights
      and privileges of a shareholder as to such Restricted Stock, including the
      right to vote such Restricted Stock and the right to receive dividends;
      provided that, any cash dividends and stock dividends with respect to the
      Restricted Stock shall be withheld by the Company for the Participant’s
      account, and interest may be credited on the amount of the cash dividends
      withheld at a rate and subject to such terms as determined by the
      Committee. The cash dividends or stock dividends so withheld by the
      Committee and attributable to any particular share of Restricted Stock
      (and earnings thereon, if applicable) shall be distributed to the
      Participant in cash or, at the discretion of the Committee, in shares of
      Common Stock having a Fair Market Value equal to the amount of such
      dividends, if applicable, upon the release of restrictions on such share
      and, if such share is forfeited, the Participant shall have no right to
      such dividends.

	 	 	
       

	 	(ii) 	
      The terms and conditions of a grant of Restricted Stock
      Units shall be reflected in an Award Agreement. No shares of Common Stock
      shall be issued at the time a Restricted Stock Unit is granted, and the
      Company will not be required to set aside a fund for the payment of any
      such Award. A Participant shall have no voting rights with respect to any
      Restricted Stock Units granted hereunder. At the discretion of the
      Committee, each Restricted Stock Unit (representing
one share of Common Stock) may be credited with cash and stock
dividends paid by the Company in respect of one share of Common Stock
(“Dividend Equivalents”). Dividend Equivalents shall be withheld by the
Company for the Participant’s account, and interest may be credited on the
amount of cash Dividend Equivalents withheld at a rate and subject to such terms
as determined by the Committee. Dividend Equivalents credited to a Participant’s
account and attributable to any particular Restricted Stock Unit (and earnings
thereon, if applicable) shall be distributed in cash or, at the discretion of
the Committee, in shares of Common Stock having a Fair Market Value equal to the
amount of such Dividend Equivalents and earnings, if applicable, to the
Participant upon settlement of such Restricted Stock Unit and, if such
Restricted Stock Unit is forfeited, the Participant shall have no right to such
Dividend Equivalents. 

- 18 -

	 	(c) 	
      Restrictions

	 	
      (i) 
	
      Restricted Stock awarded to a Participant shall be
      subject to the following restrictions until the expiration of the
      Restricted Period, and to such other terms and conditions as may be set
      forth in the applicable Award Agreement: (A) if an escrow arrangement is
      used, the Participant shall not be entitled to delivery of the stock
      certificate; (B) the shares shall be subject to the restrictions on
      transferability set forth in the Award Agreement; (C) the shares shall be
      subject to forfeiture to the extent provided in the applicable Award
      Agreement; and (D) to the extent such shares are forfeited, the stock
      certificates shall be returned to the Company, and all rights of the
      Participant to such shares and as a shareholder with respect to such
      shares shall terminate without further obligation on the part of the
      Company.

	 	
       
	
       

	 	
      (ii) 
	
      Restricted Stock Units awarded to any Participant shall
      be subject to (A) forfeiture until the expiration of the Restricted
      Period, and satisfaction of any applicable Performance Goals during such
      period, to the extent provided in the applicable Award Agreement, and to
      the extent such Restricted Stock Units are forfeited, all rights of the
      Participant to such Restricted Stock Units shall terminate without further
      obligation on the part of the Company and (B) such other terms and
      conditions as may be set forth in the applicable Award
Agreement.

	 	
       
	
       

	 	
      (iii) 
	
      The Committee shall have the authority to remove any or
      all of the restrictions on the Restricted Stock and Restricted Stock Units
      whenever it may determine that, by reason of changes in Applicable Laws or
      other changes in circumstances arising after the date the Restricted Stock
      or Restricted Stock Units are granted, such action is
  appropriate.

	 	(d) 	
      Restricted Period. With respect to Restricted
      Awards, the Restricted Period shall commence on the Grant Date and end at
      the time or times set forth on a schedule established by the Committee in
      the applicable Award Agreement.

- 19 -

No Restricted Award may be granted or settled for a fraction of
a share of Common Stock. The Committee may, but shall not be required to,
provide for an acceleration of vesting in the terms of any Award Agreement upon
the occurrence of a specified event. 

	 	(e) 	
      Delivery of Restricted Stock and Settlement of
      Restricted Stock Units. Upon the expiration of the Restricted Period
      with respect to any shares of Restricted Stock, the restrictions set forth
      in Section 7.2(c) and the applicable Award Agreement shall be of no
      further force or effect with respect to such shares, except as set forth
      in the applicable Award Agreement. If an escrow arrangement is used, upon
      such expiration, the Company shall deliver to the Participant, or his or
      her beneficiary, without charge, the stock certificate evidencing the
      shares of Restricted Stock which have not then been forfeited and with
      respect to which the Restricted Period has expired (to the nearest full
      share) and any cash dividends or stock dividends credited to the
      Participant’s account with respect to such Restricted Stock and the
      interest thereon, if any. Upon the expiration of the Restricted Period
      with respect to any outstanding Restricted Stock Units, the Company shall
      deliver to the Participant, or his or her beneficiary, without charge, one
      share of Common Stock for each such outstanding Restricted Stock Unit
      (“Vested Unit”) and cash equal to any Dividend Equivalents credited
      with respect to each such Vested Unit in accordance with Section
      7.2(b)(ii) hereof and the interest thereon or, at the discretion of the
      Committee, in shares of Common Stock having a Fair Market Value equal to
      such Dividend Equivalents and the interest thereon, if any; provided,
      however, that, if explicitly provided in the applicable Award Agreement,
      the Committee may, in its sole discretion, elect to pay cash or part cash
      and part Common Stock in lieu of delivering only shares of Common Stock
      for Vested Units. If a cash payment is made in lieu of delivering shares
      of Common Stock, the amount of such payment shall be equal to the Fair
      Market Value of the Common Stock as of the date on which the Restricted
      Period lapsed with respect to each Vested Unit.

	 	 	 
	 	(f) 	
      Stock Restrictions. Each certificate representing
      Restricted Stock awarded under the Plan shall bear a legend in such form
      as the Company deems appropriate.

7.3                     
Performance Compensation Awards. 

	 	(a) 	
      General. The Committee shall have the authority,
      at the time of grant of any Award described in this Plan (other than
      Options and Stock Appreciation Rights granted with an exercise price equal
      to or greater than the Fair Market Value per share of Common Stock on the
      Grant Date), to designate such Award as a Performance Compensation Award
      in order to qualify such Award as “performance-based compensation” under
      Section 162(m) of the Code. In addition, the Committee shall have the
      authority to make an Award of a cash bonus to any Participant and
      designate such Award as a Performance Compensation Award in order to
      qualify such Award as “performance- based compensation” under Section
      162(m) of the Code.

	 	 	 
	 	(b) 	
      Eligibility. The Committee will, in its sole
      discretion, designate within the first 90 days of a Performance Period
      (or, if longer or shorter, within the maximum period allowed under Section
      162(m) of the Code) which Participants will be eligible to receive
      Performance Compensation Awards in respect of such Performance Period.
      However, designation of a Participant eligible to receive an Award
      hereunder for a Performance Period shall not in any manner entitle the Participant to
receive payment in respect of any Performance Compensation Award for such
Performance Period. The determination as to whether or not such Participant
becomes entitled to payment in respect of any Performance Compensation Award
shall be decided solely in accordance with the provisions of this Section 7.3.
Moreover, designation of a Participant eligible to receive an Award hereunder
for a particular Performance Period shall not require designation of such
Participant eligible to receive an Award hereunder in any subsequent Performance
Period and designation of one person as a Participant eligible to receive an
Award hereunder shall not require designation of any other person as a
Participant eligible to receive an Award hereunder in such period or in any
other period. 

- 20 -

	 	(c) 	
      Discretion of Committee with Respect to Performance
      Compensation Awards. With regard to a particular Performance Period,
      the Committee shall have full discretion to select the length of such
      Performance Period (provided any such Performance Period shall be not less
      than one fiscal quarter in duration), the type(s) of Performance
      Compensation Awards to be issued, the Performance Criteria that will be
      used to establish the Performance Goal(s), the kind(s) and/or level(s) of
      the Performance Goal(s) that is (are) to apply to the Company and the
      Performance Formula. Within the first 90 days of a Performance Period (or,
      if longer or shorter, within the maximum period allowed under Section
      162(m) of the Code), the Committee shall, with regard to the Performance
      Compensation Awards to be issued for such Performance Period, exercise its
      discretion with respect to each of the matters enumerated in the
      immediately preceding sentence of this Section 7.3(c) and record the same
      in writing.

	 	 	
       

	 	(d) 	
      Payment of Performance Compensation
  Awards

	 	(i) 	
      Condition to Receipt of Payment. Unless otherwise
      provided in the applicable Award Agreement, a Participant must be employed
      by the Company on the last day of a Performance Period to be eligible for
      payment in respect of a Performance Compensation Award for such
      Performance Period.

	 	 	
       

	 	(ii) 	
      Limitation. A Participant shall be eligible to
      receive payment in respect of a Performance Compensation Award only to the
      extent that: (A) the Performance Goals for such period are achieved; and
      (B) the Performance Formula as applied against such Performance Goals
      determines that all or some portion of such Participant’s Performance
      Compensation Award has been earned for the Performance Period.

	 	 	
       

	 	(iii) 	
      Certification. Following the completion of a
      Performance Period, the Committee shall review and certify in writing
      whether, and to what extent, the Performance Goals for the Performance
      Period have been achieved and, if so, calculate and certify in writing the
      amount of the Performance Compensation Awards earned for the period based
      upon the Performance Formula. The Committee shall then determine the
      actual size of each Participant’s Performance Compensation Award for the
      Performance Period and, in so doing, may apply Negative Discretion in
      accordance with Section 7.3(d)(iv) hereof, if and when it deems
      appropriate.

- 21 - 

	 	(iv) 	
      Use of Discretion. In determining the actual size
      of an individual Performance Compensation Award for a Performance Period,
      the Committee may reduce or eliminate the amount of the Performance
      Compensation Award earned under the Performance Formula in the Performance
      Period through the use of Negative Discretion if, in its sole judgment,
      such reduction or elimination is appropriate. The Committee shall not have
      the discretion to (A) grant or provide payment in respect of Performance
      Compensation Awards for a Performance Period if the Performance Goals for
      such Performance Period have not been attained or (B) increase a
      Performance Compensation Award above the maximum amount payable under
      Section 7.3(d)(i) of the Plan.

	 	 	 
	 	(v) 	
      Timing of Award Payments. Performance Compensation
      Awards granted for a Performance Period shall be paid to Participants as
      soon as administratively practicable following completion of the
      certifications required by this Section 7.3.

8.           
Securities Law Compliance.

Each Award Agreement shall provide that no shares of Common Stock shall
be purchased or sold thereunder unless and until (a) any then applicable
requirements of state or federal laws and regulatory agencies have been fully
complied with to the satisfaction of the Company and its counsel and (b) if
required to do so by the Company, the Participant has executed and delivered to
the Company a letter of investment intent in such form and containing such
provisions as the Committee may require. The Company shall use reasonable
efforts to seek to obtain from each regulatory commission or agency having
jurisdiction over the Plan such authority as may be required to grant Awards and
to issue and sell shares of Common Stock upon exercise of the Awards; provided,
however, that this undertaking shall not require the Company to register under
the Securities Act the Plan, any Award or any Common Stock issued or issuable
pursuant to any such Award. If, after reasonable efforts, the Company is unable
to obtain from any such regulatory commission or agency the authority which
counsel for the Company deems necessary for the lawful issuance and sale of
Common Stock under the Plan, the Company shall be relieved from any liability
for failure to issue and sell Common Stock upon exercise of such Awards unless
and until such authority is obtained. 

9.           
Use of Proceeds from Stock.

Proceeds from the sale of Common Stock pursuant to Awards, or upon
exercise thereof, shall constitute general funds of the Company. 

10.           
Miscellaneous. 

10.1                      
Acceleration of Exercisability and Vesting. The Committee shall
have the power to accelerate the time at which an Award may first be exercised
or the time during which an Award or any part thereof will vest in accordance
with the Plan, notwithstanding the provisions in the Award stating the time at
which it may first be exercised or the time during which it will vest. 

10.2                      
Shareholder Rights. Except as provided in the Plan or an Award
Agreement, no Participant shall be deemed to be the holder of, or to have any of
the rights of a holder with respect to, any shares of Common Stock subject to
such Award unless and until such Participant has satisfied all requirements for
exercise of the Award pursuant to its terms and no adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions of other rights for which the
record date is prior to the date such Common Stock certificate is issued, except
as provided in Section 11 hereof. 

- 22 -

10.3                      
No Employment or Other Service Rights. Nothing in the Plan or
any instrument executed or Award granted pursuant thereto shall confer upon any
Participant any right to continue to serve the Company or an Affiliate in the
capacity in effect at the time the Award was granted or shall affect the right
of the Company or an Affiliate to terminate (a) the employment of an Employee
with or without notice and with or without Cause or (b) the service of a
Director pursuant to the By-laws of the Company or an Affiliate, and any
applicable provisions of the corporate law of the state in which the Company or
the Affiliate is incorporated, as the case may be. 

10.4                      
Transfer; Approved Leave of Absence. For purposes of the Plan, no
termination of employment by an Employee shall be deemed to result from either
(a) a transfer to the employment of the Company from an Affiliate or from the
Company to an Affiliate, or from one Affiliate to another, or (b) an approved
leave of absence for military service or sickness, or for any other purpose
approved by the Company, if the Employee’s right to reemployment is guaranteed
either by a statute or by contract or under the policy pursuant to which the
leave of absence was granted or if the Committee otherwise so provides in
writing, in either case, except to the extent inconsistent with Section 409A of
the Code if the applicable Award is subject thereto. 

10.5                      
Withholding Obligations. To the extent provided by the terms of
an Award Agreement and subject to the discretion of the Committee, the
Participant may satisfy any federal, state or local tax withholding obligation
relating to the exercise or acquisition of Common Stock under an Award by any of
the following means (in addition to the Company’s right to withhold from any
compensation paid to the Participant by the Company) or by a combination of such
means: (a) tendering a cash payment; (b) authorizing the Company to withhold
shares of Common Stock from the shares of Common Stock otherwise issuable to the
Participant as a result of the exercise or acquisition of Common Stock under the
Award, provided, however, that no shares of Common Stock are withheld with a
value exceeding the minimum amount of tax required to be withheld by law; or (c)
delivering to the Company previously owned and unencumbered shares of Common
Stock of the Company. 

11.           
Adjustments Upon Changes in Stock.

In the event of changes in the outstanding Common Stock or in the
capital structure of the Company by reason of any stock or extraordinary cash
dividend, stock split, reverse stock split, an extraordinary corporate
transaction such as any recapitalization, reorganization, merger, consolidation,
combination, exchange, or other relevant change in capitalization occurring
after the Grant Date of any Award, Awards granted under the Plan and any Award
Agreements, the exercise price of Options and Stock Appreciation Rights and the
maximum number of shares of Common Stock subject to all Awards stated in Section
4 will be equitably adjusted or substituted, as to the number, price or kind of
a share of Common Stock or other consideration subject to such Awards to the
extent necessary to preserve the economic intent of such Award. In the case of
adjustments made pursuant to this Section 11, unless the Committee specifically
determines that such adjustment is in the best interests of the Company or its
Affiliates, the Committee shall, in the case of Incentive Stock Options, ensure
that any adjustments under this Section 11 will not constitute a modification,
extension or renewal of the Incentive Stock Options within the meaning of
Section 424(h)(3) of the Code and in the case of Non-qualified Stock Options,
ensure that any adjustments under this Section 11 will not constitute a
modification of such Non-qualified Stock Options within the meaning of Section 409A
of the Code. Any adjustments made under this Section 11 shall be made in a
manner which does not adversely affect the exemption provided pursuant to Rule
16b-3 under the Exchange Act. Further, with respect to Awards intended to
qualify as “performance-based compensation” under Section 162(m) of the Code,
any adjustments or substitutions will not cause the Company to be denied a tax
deduction on account of Section 162(m) of the Code. The Company shall give each
Participant notice of an adjustment hereunder and, upon notice, such adjustment
shall be conclusive and binding for all purposes. 

- 23 -

12.          
Effect of Change in Control. 

12.1                      
Unless otherwise provided in an Award Agreement, notwithstanding any provision
of the Plan to the contrary:

	 	(a) 	
      In the event of a Change in Control, all Options and
      Stock Appreciation Rights shall become immediately exercisable with
      respect to 100% of the shares subject to such Options or Stock
      Appreciation Rights, and/or the Restricted Period shall expire immediately
      with respect to 100% of the shares of Restricted Stock or Restricted Stock
      Units.

	 	 	 
	 	(b) 	
      With respect to Performance Compensation Awards, in the
      event of a Change in Control, all Performance Goals or other vesting
      criteria will be deemed achieved at 100% of target levels and all other
      terms and conditions will be deemed met.

To the extent practicable, any actions taken by the Committee
under the immediately preceding clauses (a) and (b) shall occur in a manner and
at a time which allows affected Participants the ability to participate in the
Change in Control with respect to the shares of Common Stock subject to their
Awards. 

12.2                      
In addition, in the event of a Change in Control, the Committee may in its
discretion and upon at least 10 days’ advance notice to the affected persons,
cancel any outstanding Awards and pay to the holders thereof, in cash or stock,
or any combination thereof, the value of such Awards based upon the price per
share of Common Stock received or to be received by other shareholders of the
Company in the event. In the case of any Option or Stock Appreciation Right with
an exercise price (or SAR Exercise Price in the case of a Stock Appreciation
Right) that equals or exceeds the price paid for a share of Common Stock in
connection with the Change in Control, the Committee may cancel the Option or
Stock Appreciation Right without the payment of consideration therefor. 

12.3                      
The obligations of the Company under the Plan shall be binding upon any
successor corporation or organization resulting from the merger, consolidation
or other reorganization of the Company, or upon any successor corporation or
organization succeeding to all or substantially all of the assets and business
of the Company and its Affiliates, taken as a whole. 

13.           
Amendment of the Plan and Awards. 

13.1                      
Amendment of Plan. The Board at any time, and from time to time,
may amend or terminate the Plan. However, except as provided in Section 11
relating to adjustments upon changes in Common Stock and Section 13.3, no
amendment shall be effective unless approved by the shareholders of the Company
to the extent shareholder approval is necessary to satisfy any Applicable Laws.
At the time of such amendment, the Board shall determine, upon advice
from counsel, whether such amendment will be contingent on shareholder approval.

- 24 - 

13.2                      
Shareholder Approval. The Board may, in its sole discretion,
submit any other amendment to the Plan for shareholder approval, including, but
not limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers. 

13.3                      
Contemplated Amendments. It is expressly contemplated that the Board may
amend the Plan in any respect the Board deems necessary or advisable to provide
eligible Employees, Consultants and Directors with the maximum benefits provided
or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options or to the
nonqualified deferred compensation provisions of Section 409A of the Code and/or
to bring the Plan and/or Awards granted under it into compliance therewith. 

13.4                      
No Impairment of Rights. Rights under any Award granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
(a) the Company requests the consent of the Participant and (b) the Participant
consents in writing. 

13.5                      
Amendment of Awards. The Committee at any time, and from time to
time, may amend the terms of any one or more Awards; provided, however, that the
Committee may not affect any amendment which would otherwise constitute an
impairment of the rights under any Award unless (a) the Company requests the
consent of the Participant and (b) the Participant consents in writing. 

14.           
General Provisions. 

14.1                      
Forfeiture Events. The Committee may specify in an Award
Agreement that the Participant’s rights, payments and benefits with respect to
an Award shall be subject to reduction, cancellation, forfeiture or recoupment
upon the occurrence of certain events, in addition to applicable vesting
conditions of an Award. Such events may include, without limitation, breach of
non-competition, non-solicitation, confidentiality, or other restrictive
covenants that are contained in the Award Agreement or otherwise applicable to
the Participant, a termination of the 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. 

14.2                      
Clawback. Notwithstanding any other provisions in this Plan, any
Award which is subject to recovery under any law, government regulation or stock
exchange listing requirement, will be subject to such deductions and clawback as
may be required to be made pursuant to such law, government regulation or stock
exchange listing requirement (or any policy adopted by the Company pursuant to
any such law, government regulation or stock exchange listing requirement). 

14.3                      
Other Compensation Arrangements. Nothing contained in this Plan
shall prevent the Board from adopting other or additional compensation
arrangements, subject to shareholder approval if such approval is required; and
such arrangements may be either generally applicable or applicable only in
specific cases. 

14.4                      
Sub-plans. The Committee may from time to time establish sub-plans under
the Plan for purposes of satisfying blue sky, securities, tax or other laws of
various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain
such limitations and other terms and conditions as the Committee determines are
necessary or desirable. All sub- plans shall be deemed a part of the Plan, but
each sub-plan shall apply only to the Participants in the jurisdiction for which
the sub-plan was designed. 

- 25 -

14.5                      
Deferral of Awards. The Committee may establish one or more
programs under the Plan to permit selected Participants the opportunity to elect
to defer receipt of consideration upon exercise of an Award, satisfaction of
performance criteria, or other event that absent the election would entitle the
Participant to payment or receipt of shares of Common Stock or other
consideration under an Award. The Committee may establish the election
procedures, the timing of such elections, the mechanisms for payments 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. 

14.6                      
Unfunded Plan. The Plan shall be unfunded. Neither the Company,
the Board nor the Committee shall be required to establish any special or
separate fund or to segregate any assets to assure the performance of its
obligations under the Plan. 

14.7                      
Delivery. Upon exercise of a right granted under this Plan, the
Company shall issue Common Stock or pay any amounts due within a reasonable
period of time thereafter. Subject to any statutory or regulatory obligations
the Company may otherwise have, for purposes of this Plan, 30 days shall be
considered a reasonable period of time. 

14.8                      
No Fractional Shares. No fractional shares of Common Stock shall
be issued or delivered pursuant to the Plan. The Committee shall determine
whether cash, additional Awards or other securities or property shall be issued
or paid in lieu of fractional shares of Common Stock or whether any fractional
shares should be rounded, forfeited or otherwise eliminated. 

14.9                      
Other Provisions. The Award Agreements authorized under the Plan
may contain such other provisions not inconsistent with this Plan, including,
without limitation, restrictions upon the exercise of the Awards, as the
Committee may deem advisable. 

14.10                      
Section 409A. The Plan is intended to comply with Section 409A of the
Code to the extent subject thereto, and, accordingly, to the maximum extent
permitted, the Plan shall be interpreted and administered to be in compliance
therewith. Any payments described in the Plan that are due within the
“short-term deferral period” as defined in Section 409A of the Code shall not be
treated as deferred compensation unless Applicable Laws require otherwise.
Notwithstanding anything to the contrary in the Plan, to the extent required to
avoid accelerated taxation and tax penalties under Section 409A of the Code,
amounts that would otherwise be payable and benefits that would otherwise be
provided pursuant to the Plan during the six (6) month period immediately
following the Participant’s termination of Continuous Service shall instead be
paid on the first payroll date after the six-month anniversary of the
Participant’s separation from service (or the Participant’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 Section 409A of the Code and neither the
Company nor the Committee will have any liability to any Participant for such
tax or penalty. 

14.11                      
Disqualifying Dispositions. Any Participant who shall make a
“disposition” (as defined in Section 424 of the Code) of all or any portion of
shares of Common Stock acquired upon exercise of an Incentive Stock Option within two years from the Grant Date of
such Incentive Stock Option or within one year after the issuance of the shares
of Common Stock acquired upon exercise of such Incentive Stock Option (a
“Disqualifying Disposition”) shall be required to immediately advise the
Company in writing as to the occurrence of the sale and the price realized upon
the sale of such shares of Common Stock. 

- 26 -

14.12                      
Section 16. It is the intent of the Company that the Plan satisfy, and be
interpreted in a manner that satisfies, the applicable requirements of Rule
16b-3 as promulgated under Section 16 of the Exchange Act so that Participants
will be entitled to the benefit of Rule 16b-3, or any other rule promulgated
under Section 16 of the Exchange Act, and will not be subject to short-swing
liability under Section 16 of the Exchange Act. Accordingly, if the operation of
any provision of the Plan would conflict with the intent expressed in this
Section 14.12, such provision to the extent possible shall be interpreted and/or
deemed amended so as to avoid such conflict. 

14.13                      
Section 162(m). To the extent the Committee issues any Award that is
intended to be exempt from the deduction limitation of Section 162(m) of the
Code, the Committee may, without shareholder or grantee approval, amend the Plan
or the relevant Award Agreement retroactively or prospectively to the extent it
determines necessary in order to comply with any subsequent clarification of
Section 162(m) of the Code required to preserve the Company’s federal income tax
deduction for compensation paid pursuant to any such Award. 

14.14                      
Beneficiary Designation. Each Participant under the Plan may
from time to time name any beneficiary or beneficiaries by whom any right under
the Plan is to be exercised in 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. 

14.15                      
Expenses. The costs of administering the Plan shall be paid by
the Company. 

14.16                      
Severability. If any of the provisions of the Plan or any Award
Agreement is held to be invalid, illegal or unenforceable, whether in whole or
in part, such provision shall be deemed modified to the extent, but only to the
extent, of such invalidity, illegality or unenforceability and the remaining
provisions shall not be affected thereby. 

14.17                      
Plan Headings. The headings in the Plan are for purposes of convenience
only and are not intended to define or limit the construction of the provisions
hereof. 

14.18                      
Non-Uniform Treatment. The Committee’s determinations under the
Plan need not be uniform and may be made by it selectively among persons who are
eligible to receive, or actually receive, Awards. Without limiting the
generality of the foregoing, the Committee shall be entitled to make non-uniform
and selective determinations, amendments and adjustments, and to enter into
nonuniform and selective Award Agreements. 

15.           
Effective Date of Plan.

The Plan shall become effective as of the Effective Date, but no Award
shall be exercised (or, in the case of a stock Award, shall be granted) unless
and until the Plan has been approved by the shareholders of the Company, which
approval shall be within twelve (12) months before or after the date the Plan is
adopted by the Board. 

- 27 -

16.           
Termination or Suspension of the Plan.

The Plan shall terminate automatically on October 7, 2023. No Award
shall be granted pursuant to the Plan after such date, but Awards theretofore
granted may extend beyond that date. The Board may suspend or terminate the Plan
at any earlier date pursuant to Section 13.1 hereof. No Awards may be granted
under the Plan while the Plan is suspended or after it is terminated. Unless the
Company determines to submit Section 7.3 of the Plan and the definition of
“Performance Goal” and “Performance Criteria” to the Company’s shareholders at
the first shareholder meeting that occurs in the fifth year following the year
in which the Plan was last approved by shareholders (or any earlier meeting
designated by the Board), in accordance with the requirements of Section 162(m)
of the Code, and such shareholder approval is obtained, then no further
Performance Compensation Awards shall be made to Covered Employees under Section
7.3 after the date of such annual meeting, but the Plan may continue in effect
for Awards to Participants not in accordance with Section 162(m) of the Code.

17.           
Choice of Law.

The law of the State of Nevada shall govern all questions concerning
the construction, validity and interpretation of this Plan, without regard to
such state’s conflict of law rules. 

As adopted by the Board of Directors of The Alkaline Water
Company Inc. on October 7, 2013.

As approved by the shareholders of The Alkaline Water Company
Inc. on October 7, 2013. 

As amended by the Board of Directors of The Alkaline Water
Company Inc. on October 31, 2014 and January 20, 2016.Exhibit

Exhibit 10.1

THIRD MODIFICATION AGREEMENT 

THIS THIRD MODIFICATION AGREEMENT (this “Agreement”) is entered into as of January 13, 2016 by and between VEREIT TRS CORP. (f/k/a ARCP TRS CORP.) (“Lender”) and COLE CORPORATE INCOME OPERATING PARTNERSHIP II, LP (“Borrower”).

PRELIMINARY STATEMENT

A.    Borrower was initially indebted to Lender as evidenced by that certain Subordinate Promissory Note dated January 13, 2014 in the original principal amount of $10,000,000 (as amended, the “Note”).
 
B.    The Note was amended to, among other things, increase the maximum principal amount thereof to $60,000,000 pursuant to the terms of that certain Modification Agreement dated June 25, 2014 (the “Modification Agreement”) and to extend the maturity date to January 13, 2016 pursuant to that certain Second Modification Agreement dated as of November 11, 2014.

C.    The unpaid principal balance of the Note as of the date hereof is $30,000,000.

E.    Lender and Borrower have agreed to modify the Note as set forth in this Agreement.  

AGREEMENT

For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 

1.    Accuracy of Preliminary Statement.   Borrower acknowledges the accuracy of the above Preliminary Statement.

2.    Note Modifications.  

(a)    In order to decrease the maximum principal amount of the Note from $60,000,000 to $30,000,000, the reference to $60,000,000 on the first line of the first page of the Note is hereby amended to $30,000,000 and the first full paragraph of the first page of the Note is hereby amended and restated in its entirety as follows:
          
FOR VALUE RECEIVED, Cole Corporate Income Operating Partnership II, LP, a Delaware limited partnership, (“Borrower”), hereby promises to pay to the order of VEREIT TRS Corp., a Delaware corporation (“Lender”), at the offices of Lender located at 2325 East Camelback Road, Suite 1100, Phoenix, AZ 85016, the principal amount of $30,000,000, or, if less, the aggregate unpaid principal amount of the advances hereunder, together with interest on the principal balance outstanding hereunder, from (and including) the date of disbursement until (but not including) the date of payment, at a per diem rate equal to the Stated Interest Rate specified below or, to the extent applicable, the Default Interest Rate specified below, in accordance with the following terms and conditions:
            
(b)    In order to extend the maturity date of the Note, Section 5 of the Note is hereby amended and restated in its entirety as follows:

5.    Payments.  Accrued interest under this Note shall be due and payable in arrears on the last day of each Interest Period.  The principal balance outstanding hereunder, together with all accrued interest and other amounts payable hereunder, if not sooner paid as provided herein, shall be due and payable on June 30, 2016.  

(c)    The legend added to the Note pursuant to the Modification Agreement is hereby amended and restated in its entirety as follows:

“The indebtedness evidenced by this instrument is subordinated to the prior payment in full of the Lender Debt (as defined in the Second Amended and Restated Subordination Agreement hereinafter referred to) pursuant to, and to the extent provided in, the Second Amended and Restated Subordination Agreement dated as of December 12, 2014, as amended, among Cole Office & Industrial (CCIT II), Inc., Cole Corporate Income Operating Partnership II, LP, VEREIT TRS Corp. and JP Morgan Chase Bank, N.A., as administrative agent.” 

(d)    The Note is hereby modified by amending and restating the second sentence of Section 8 as follows:
The term “Credit Facility” shall mean that certain credit facility in an amount not to exceed $400,000,000 (subject to potential increases up to an aggregate maximum principal amount of $1,250,000,000) pursuant to that certain Amended and Restated Credit Agreement dated as of December 12, 2014 by and among the Borrower, as borrower, the lenders from time to time that are parties thereto, and JPMorgan Chase Bank, N.A., as administrative agent, and the other loan documents executed and delivered in connection therewith (each as amended, supplemented or replaced).
3.    Borrower acknowledges and agrees that: (i) except to the extent expressly provided for in this Agreement, the Note is not modified or amended by this Agreement and shall remain in full force and effect and this Agreement shall not constitute a waiver of any rights or remedies in respect of the Note; (ii) the Note (as modified by this Agreement) and all rights, title, interest, liens, powers and privileges by virtue thereof are hereby reaffirmed, ratified, renewed and extended and shall be and continue to be in full force and effect to secure the payment of the indebtedness evidenced by the Note  and any and all restatements, renewals, modifications, amendments, increases and/or extensions thereof; and (iii) no payment, discharge or release of any collateral securing the Note  is intended hereby and all liens on all such collateral shall continue in full force and effect, unimpaired from the date of their execution and perfection.

4.    The Borrower and Lender acknowledge and agree that the Note, and all payments payable thereunder are subject to the terms, conditions and limitations contained in the Second Amended and Restated Subordination Agreement dated as of December 12, 2014, as amended, among Cole Office & Industrial (CCIT II), Inc., Cole Corporate Income Operating Partnership II, LP, VEREIT TRS Corp. and JP Morgan Chase Bank, N.A., as administrative agent (the “Subordination Agreement”). 

5.    Miscellaneous.     The provisions of this Agreement shall be deemed severable.  If any part of this Agreement shall be held unenforceable, the remainder shall remain in full force and effect, and such unenforceable provision shall be reformed by such court so as to give maximum legal effect to the intention of the parties as expressed therein.  Each of the parties hereto agrees to sign such other and further documents, and to take such other actions, as may be reasonably appropriate to carry out the intentions expressed in this Agreement, including, without limitation, documentation in respect of the reaffirmation and confirmation of liens, and the priority of such liens, on the collateral, if any, for the loan evidenced by the Note. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  This Agreement, the Note and any other instruments referred to herein, constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, of the parties or any of them with respect to the subject matter hereof, if any. 

[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]

    

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date set forth above.

	
				
	 
	VEREIT TRS CORP., a Delaware corporation

	 
	By: VEREIT Operating Partnership, L. P., its sole stockholder

	 
	By:
	/s/ Lauren Goldberg
	 

	 
	Printed Name:
	Lauren Goldberg
	 

	 
	Its:
	Executive Vice President, General Counsel and Secretary
	 

	
				
	 
	COLE CORPORATE INCOME OPERATING PARTNERSHIP II, LP, 
a Delaware limited partnership

	 
	By: Cole Office & Industrial REIT (CCIT II), Inc., a Maryland corporation, its general partner

	 
	By:
	/s/ Simon J. Misselbrook
	 

	 
	Printed Name:
	Simon J. Misselbrook
	 

	 
	Its:
	Chief Financial Officer and Treasurer
	 

                        

                        

CONSENT

This Consent relates to the foregoing Third Modification Agreement by and between VEREIT TRS CORP. (f/k/a ARCP TRS CORP.) and COLE CORPORATE INCOME OPERATING PARTNERSHIP II, LP.  All capitalized terms herein shall be as defined in such Third Modification Agreement.  Pursuant to Sections 3 and 4 of the Subordination Agreement, JP Morgan Chase Bank, N.A., as Administrative Agent hereby consents to, and acknowledges that the Required Lenders, as defined in the Amended and Restated Credit Agreement referenced in the definition of Credit Facility above, and as previously amended, have consented to the extension of the maturity date of the Note to June 30, 2016 pursuant to the foregoing Third Modification Agreement.

Executed this 13 day of January, 2016. 

	
				
	 
	JPMORGAN CHASE BANK, N.A.,

	 
	as Administrative Agent

	 
	By:
	/s/ Ryan M. Dempsey
	 

	 
	Name:
	Ryan M. Dempsey
	 

	 
	Title:
	Authorized Officer

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