Document:

Exhibit 10.1

 

LXP
INDUSTRIAL TRUST

2022 EQUITY-BASED AWARD PLAN

 

 

 

Plan
Document

 

 

 

1.           Introduction.

 

(a)          Purpose.
By resolution of the Compensation Committee of its Board of Trustees approved on April 1, 2022 (the “Committee Approval
Date”), LXP Industrial Trust (the “Company”) hereby establishes this equity-based incentive
compensation plan to be known as the “LXP Industrial Trust 2022 Equity-Based Award Plan” (the “Plan”).
The Plan was established for the following purposes: (i) to enhance the Company’s ability to attract highly qualified
personnel; (ii) to strengthen its retention capabilities; (iii) to enhance the long-term performance and competitiveness
of the Company; and (iv) to ensure that the interests of Plan participants align with those of the Company’s shareholders.
This Plan is intended to achieve such purposes and to serve as the sole source for all future equity-based awards to those eligible
for Plan participation.

 

(b)          Effective
Date. This Plan shall become effective on the date (the “Effective Date”) upon which it has received
approval by a vote of a majority of the votes cast at a duly held meeting of the Company’s shareholders (or by such other
shareholder vote that the Committee determines to be sufficient for the issuance of Shares and Awards according to the Company’s
governing documents and Applicable Law).

 

(c)          Definitions.
Terms used herein and in Appendix I that begin with an initial capital letter shall have the meanings set forth in
Appendix I or elsewhere in this Plan, unless the context of their use clearly indicates a different meaning.

 

(d)          Effect
on Other Plans, Awards, and Arrangements. This Plan is not intended to affect, and shall not affect, any share options, equity-based
compensation, or other benefits that the Company or its Affiliates may have provided, or may provide in the future, pursuant to any agreement,
plan, or program that is independent of this Plan. For example, changes in this Plan from the Company’s Amended and Restated 2011
Equity-Based Award Plan (the “2011 Plan” do not affect any awards granted under the 2011 Plan.

 

2.            Types
of Awards. The Plan permits, but does not require, the granting of the following types of Awards according to the Sections
of the Plan listed below:

 

	Section 5 	Share
                                         Options
	Section 6	Shares
                                         Appreciation Rights (“SARs”) Restricted Share, Restricted Share
                                         Unit (“RSUs”) and Unrestricted Share
	Section 7	Awards
	Section 8	Performance
                                         Awards
	Section 9	Dividends
                                         Equivalent Rights

  

3.            Shares
Available for Awards.

 

(a)          Generally.
Subject to Section 12 below, from the Effective Date, a total of 4,000,000 Shares shall be available for issuance under the
Plan (plus any shares subject to outstanding awards under the Amended and Restated
Lexington Realty Trust 2011 Equity-Based Award Plan). The Shares deliverable pursuant to Awards shall be authorized but unissued Shares, or Shares that the Company otherwise
holds in treasury or in trust.

 

(b)          Replenishment;
Counting of Shares. If an Award expires or becomes un-exercisable without having been exercised in full or, with respect to
Restricted Shares, Restricted Share Units, or Performance Units, is forfeited to the Company, the unpurchased Shares (or for Awards
other than Options or SARs, the forfeited

 

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Shares)
which were subject thereto will become available for future grant or sale under this Plan, unless this Plan has terminated.
With respect to SARs, all of the Shares covered by the Award (that is, Shares actually issued pursuant to a SAR, as well as
the Shares that represent payment of the exercise price therefor) will cease to be available under this Plan. Shares that
actually have been issued under this Plan under any Award will not revert to this Plan and will not become available for
future distribution under this Plan; provided, however, that if Shares issued pursuant to Awards of Restricted Shares are
forfeited to the Company, such Shares will become available for future grant under this Plan. Shares: (i) used to pay
the exercise price of an Award, (ii) used to satisfy the Withholding Tax obligations related to an Award, or
(iii) re-acquired by the Company on the open market or otherwise using cash proceeds from the exercise of Options will
be deemed used under this Plan and will not become available for future grant or sale under this Plan. To the extent that an
Award under this Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of
Shares available for issuance under this Plan. Notwithstanding the foregoing, and subject to adjustment as provided in
Section 13, the maximum number of Shares that may be issued upon the exercise of ISOs will equal the aggregate Share
number stated in Section 3(a), plus, to the extent allowable under Code Section 422, any Shares that become
available for issuance under this Plan pursuant to this Section 3(b).

 

4.            Eligibility.

 

(a)          General
Rule. Subject to the express provisions of the Plan, the Committee shall determine from the class of Eligible Persons those
Persons to whom Awards may be granted, the number of Shares subject to each Award, the price (if any) to be paid for the Shares
or the Award and, in the case of Performance Awards, in addition to matters discussed in Section 8 below, the specific objectives,
goals and performance criteria that further define the Performance Award. The Committee may grant ISOs only to Employees of the
Company or any of its Affiliates that is a “parent corporation” or “subsidiary corporation” within the
meaning of Section 424 of the Code, and may grant all other Awards to any Eligible Person. A Participant who has been granted
an Award may be granted an additional Award or Awards in accordance with the terms of this Plan if the Committee shall so determine,
if such person is otherwise an Eligible Person.

 

(b)          Documentation
of Award. Each Award shall be evidenced by an Award Agreement signed by the Company and by the Participant. The Award Agreement
shall set forth the material terms and conditions of the Award established by the Committee, and each Award shall be subject to
the terms and conditions set forth in Sections 13, 22 and 23 unless otherwise specifically provided in an Award Agreement.

 

(c)          Minimum
Vesting for Awards. Notwithstanding any other provision of this Plan to the contrary, Awards that are subject to vesting shall
become vested on a pro rata basis over a period of not less than one year following the Date of Grant; provided, however, that,
notwithstanding the foregoing, such Awards that result in the issuance of an aggregate of up to 5% of the maximum number
of Shares available at any time pursuant to Section 3(a) may be granted without respect to such minimum vesting provision.

 

(d)          Limitation
on Individual Grants. The maximum number of Shares subject to an Award or Awards granted to any one Participant in any one
calendar year may not exceed 500,000 Shares (or 75,000 Shares for non-Employee Trustee), subject to adjustment as provided in Section
12.

 

5.            Share
Options.

 

(a)          Grants.
Subject to the special rules for ISOs set forth in the next paragraph, the Committee may grant Options to Eligible Persons pursuant
to Award Agreements (i) that set forth terms and conditions that are not inconsistent with the Plan, that may be immediately
exercisable or that may become exercisable in whole or in part based on future events or conditions, (ii) that may include
vesting or other requirements for the right to exercise

 

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the Options, and (iii) that may differ for any reason from those
granted to other Eligible Persons or classes of Eligible Persons, provided in all instances that:

 

(A)       the
exercise price for Shares subject to purchase through exercise of an Option shall not be less than 100% of the Fair Market
Value of the underlying Shares on the Grant Date; and

 

(B)       no
Option shall be exercisable for a term ending more than ten years after the Grant Date for such Option.

 

(b)          Special
ISO Provisions. The following provisions shall control any grants of Options that are denominated as ISOs; provided that
ISOs may not be awarded unless the Plan receives shareholder approval within twelve (12) months after its Committee
Approval Date, and provided further that ISOs may not be granted more than ten (10) years after the Board approves the
Plan.

 

(i)         Eligibility.
The Committee may grant ISOs only to Employees of the Company or any of its Affiliates that is a “parent corporation”
or “subsidiary corporation” within the meaning of Code Section 424.

 

(ii)        Documentation.
Each Option that is intended to be an ISO must be designated as an ISO in the Award Agreement, provided that any Option that is
designated as an ISO will not be an ISO to the extent that such Option fails to meet the requirements of Code Section 422
or the provisions of this Section 5(b). In the case of an ISO, the Committee shall determine on the Grant Date the acceptable
methods of paying the exercise price for Shares and shall include such methods in the applicable Award Agreement.

 

(iii)       $100,000
Limit. To the extent that the aggregate Fair Market Value of Shares with respect to which ISOs first become exercisable by
a Participant in any calendar year (including those granted under this Plan and any other plan of the Company or any of its Affiliates)
exceeds U.S. $100,000, such excess Options shall be treated as Non-ISOs. For purposes of determining whether the U.S. $100,000
limit is exceeded, the Fair Market Value of the Shares subject to an ISO shall be determined as of the Grant Date. In reducing
the number of Options treated as ISOs to meet the U.S. $100,000 limit, the most recently granted Options shall be reduced
first. In the event that Code Section 422 is amended to alter the limitation set forth therein, the limitation of this paragraph
shall be automatically adjusted accordingly.

 

(iv)       Grants
to 10% Holders. In the case of an ISO granted to an Employee who is a Ten Percent Holder on the Grant Date, the ISO’s
term shall not exceed five (5) years from the Grant Date, and the exercise price shall be at least 110% of the Fair
Market Value of the underlying Shares as of the Grant Date. In the event that Code Section 422 is amended to alter the limitations
set forth therein, the limitation of this paragraph shall be automatically adjusted accordingly.

 

(v)         Substitution
of Options. In the event that the Company or its Affiliate acquires (whether by purchase, merger, or otherwise) all or substantially
all of the outstanding capital stock or assets of another corporation, or in the event of any reorganization or other transaction
qualifying under Code Section 424, the Committee may, in accordance with the provisions of Code Section 424, substitute
ISOs for ISOs previously granted under the plan of the acquired company provided (A) the excess of the aggregate Fair Market
Value of the Shares subject to an ISO immediately after the substitution over the aggregate exercise price of such Shares is not
more than the similar excess immediately before such substitution, and (B) the new ISO does not give additional benefits
to the Participant, including any extension of the exercise period.

 

(vi)        Notice
of Disqualifying Dispositions. By executing an Award Agreement for ISOs, each Participant agrees to notify the Company in
writing immediately after the Participant sells, transfers or otherwise disposes of any Shares acquired through exercise of the
ISO, if such disposition occurs within the earlier of (A) two years of the Grant Date, or (B) one (1) year after
the exercise of the ISO being exercised. Each Participant further agrees to provide any information about a disposition of Shares
as may be requested by the Company from time to time.

 

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(c)          Method
of Exercise. Each Option may be exercised, in whole or in part (provided, that the Company shall not be required to issue
fractional Shares) at any time and from time to time prior to its expiration, but only pursuant to the terms of the applicable
Award Agreement and subject to the times, circumstances, and conditions for exercise contained in the applicable Award Agreement.
Exercise shall occur by delivery of both written notice of exercise to a designated Employee of the Company and payment of the
full exercise price for the Shares being purchased. Unless otherwise specified in an Award Agreement, the exercise price of Options
held by any Participant shall be satisfied through a net exercise by surrendering to the Company Shares otherwise receivable upon
exercise of the Option having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the Shares
as to which the Option is being exercised.

 

The
Company shall not deliver Shares pursuant to the exercise of an Option until the Company has received sufficient Shares (and/or
funds to the extent otherwise permitted pursuant to any Award Agreement) to cover the full exercise price due and all applicable
Withholding Taxes required by reason of such exercise.

 

Notwithstanding
any other provision of the Plan to the contrary, no Participant who is a Trustee or an “executive officer” of the
Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to make payment with respect to any Awards
granted under the Plan, or to continue any extension of credit with respect to such payment, with a loan from the Company or a
loan arranged by the Company in violation of Section 13(k) of the Exchange Act.

 

(d)          Exercise
of an Unvested Option. Unvested Options shall not be exercisable by the Participant.

 

(e)         Termination
of Continuous Service. The Committee may establish and set forth in the applicable Award Agreement or employment- related
agreements the terms and conditions on which an Option shall remain exercisable, if at all, following termination of a Participant’s
Continuous Service. The Committee may waive or modify these provisions at any time. To the extent that a Participant is not entitled
to exercise an Option at the date of his or her termination of Continuous Service, or if the Participant (or other person entitled
to exercise the Option) does not exercise the Option to the extent so entitled within the time specified in the Award Agreement,
the relevant employment-related agreements or below (as applicable), the Option shall terminate, and the Shares underlying the
unexercised portion of the Option shall revert to the Plan and become available for future Awards. In no event may any Option
be exercised after the expiration of the Option term as set forth in the Award Agreement.

 

The
following provisions shall apply to the extent an Award Agreement or an employment-related agreement does not specify the terms
and conditions upon which an Option shall terminate when there is a termination of a Participant’s Continuous Service:

 

	Reason
    for terminating Continuous Service	 	Option
    Termination Date
	 	 	 
	By
    the Company for Cause, or what would have been Cause if the Company had known all of the relevant facts.	 	Termination
    of the Participant’s Continuous Service, or when Cause first existed, if earlier.
	Disability
    of the Participant.	 	Within
    six (6) months after termination of the Participant’s Continuous Service.
	Retirement
    of the Participant.	 	Within
    six (6) months (three (3) months in the case of ISOs) after termination of the Participant’s Continuous Service.
	Death
    of the Participant during Continuous Service or within ninety (90) days thereafter.	 	Within
    six (6) months after termination of the Participant’s Continuous Service.
	Any
    other reason.	 	Within
    ninety (90) days after termination of the Participant’s Continuous Service.

 

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If
there is a Securities and Exchange Commission blackout period (or a Company-imposed blackout period) that prohibits the buying
or selling of Shares during any part of the ten (10)-day period before the expiration of any Option based on the termination of
a Participant’s Continuous Service (as described above), the period for exercising the Options shall be extended until ten
(10) days beyond when such blackout period ends.

 

Notwithstanding
any provision herein or within an Award Agreement, no Option shall ever be exercisable after the expiration date of its original
term as set forth in the Award Agreement.

 

6.            SARS.

 

(a)          Grants.
The Committee may grant SARs to Eligible Persons pursuant to Award Agreements setting forth terms and conditions that are not
inconsistent with the Plan; provided that:

 

(i)          the
exercise price for the Shares subject to each SAR shall not be less than the Fair Market Value of the underlying Shares as of
the Grant Date (unless the Award replaces a previously issued Option or SAR);

 

(ii)         no
SAR shall be exercisable for a term ending more than ten (10) years after its Grant Date; and

 

(iii)        each
SAR shall, except to the extent that an Award Agreement for an SAR (an “SAR Award Agreement”) provides
otherwise, be subject to the provisions of Section 5(e) relating to the effect of a termination of Participant’s Continuous
Service, with “SAR” being substituted for “Option.”

 

(b)          Settlement.
Subject to the Plan’s terms, a SAR shall entitle the Participant, upon exercise of the SAR, to receive Shares having a Fair
Market Value on the date of exercise equal to the product of the number of Shares as to which the SAR is being exercised, and
the excess of (i) the Fair Market Value, on such date, of the Shares covered by the exercised SAR, over (ii) an exercise
price designated in the SAR Award Agreement. Notwithstanding the foregoing, a SAR Award Agreement may limit the total settlement
value that the Participant will be entitled to receive upon the SAR’s exercise, and may provide for settlement either in
cash or in any combination of cash or Shares that the Committee may authorize pursuant to an Award Agreement. If, on the date
on which a SAR or portion thereof is to expire, the Fair Market Value of the underlying Shares exceeds their aggregate exercise
price of such SAR, then the SAR shall be deemed exercised, and the Participant shall within ten (10) days thereafter receive
the Shares that would have been issued on such date if the Participant had affirmatively exercised the SAR on that date.

 

(c)          SARs
related to Options. The Committee may grant SARs either concurrently with the grant of an Option or with respect to an outstanding
Option, in which case the SAR shall extend to all or a portion of the Shares covered by the related Option, and shall have an
exercise price that is not less than the exercise price of the related Option. A SAR shall entitle the Participant who holds the
related Option, upon exercise of the SAR and surrender of the related Option, or portion thereof, to the extent that the SAR and
related Option each were previously unexercised, to receive payment of an amount determined pursuant to Section 6(b) above.
Any SAR granted in tandem with an ISO will contain such terms as may be required to comply with the provisions of Code Section 422.

 

(d)          Effect
on Available Shares. All SARs that may be settled in Shares shall be counted in full against the number of Shares available
for award under the Plan, regardless of the number of Shares actually issued upon settlement of the SARs.

 

7.            Restricted
Shares, RSUs, and Unrestricted Share Awards.

 

(a)          Grant.
The Committee may grant Restricted Share, RSU, or Unrestricted Share Awards to Eligible Persons, in all cases pursuant to Award
Agreements setting forth terms and conditions that are not inconsistent with the Plan. The Committee shall establish as to each
Restricted Share or RSU Award the number of Shares deliverable or subject to the Award (which number may be determined by a written
formula), and the period

 

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or
periods of time (the “Restriction Period”) at the end of which all or some restrictions specified
in the Award Agreement shall lapse, and the Participant shall receive unrestricted Shares (and cash to the extent provided in
the Award Agreement) in settlement of the Award. Such restrictions may include, without limitation, restrictions concerning
dividend and voting rights and transferability, and such restrictions may lapse separately or in combination at such times
and pursuant to such circumstances or based on such criteria as selected by the Committee, including, without limitation,
criteria based on the Participant’s duration of employment, directorship or consultancy with the Company, individual,
group, or divisional performance criteria, Company performance, or other criteria selection by the Committee. The Committee
may make Restricted Share and RSU Awards with or without the requirement for payment of cash or other consideration. In
addition, the Committee may grant Awards hereunder in the form of Unrestricted Shares which shall vest in full upon the Grant
Date or such other date as the Committee may determine or which the Committee may issue pursuant to any program under which
one or more Eligible Persons (selected by the Committee in its sole discretion) elect to pay for such Shares or to receive
Unrestricted Shares in lieu of cash bonuses that would otherwise be paid.

 

(b)         Vesting
and Forfeiture. The Committee shall set forth, in an Award Agreement granting Restricted Shares or RSUs, the terms and conditions
under which the Participant’s interest in the Restricted Shares or the Shares subject to RSUs will become vested and non-forfeitable.
Except as set forth in the applicable Award Agreement or in employment-related agreements or as the Committee otherwise determines,
upon termination of a Participant’s Continuous Service for any reason, the Participant shall forfeit his or her Restricted
Shares and RSUs to the extent the Participant’s interest therein has not vested on or before such termination date; provided
that if a Participant purchases Restricted Shares and forfeits them for any reason, the Company shall return the purchase price
to the Participant to the extent either set forth in an Award Agreement or required by Applicable Laws.

 

(c)          Account
for Restricted Shares. Unless otherwise provided in an Award Agreement, the Company shall hold Restricted Shares in a book-entry
restricted account until the restrictions on such Shares lapse, and the Participant shall provide the Company with appropriate
stock powers endorsed in blank. The Participant’s failure to provide such stock powers within ten (10) days after receiving
a written request from the Company therefor shall entitle the Committee to unilaterally declare a forfeiture of all or some of
the Participant’s Restricted Shares.

 

(d)          Section 83(b)
Elections. A Participant may make an election under Code Section 83(b) (the “Section 83(b) Election”)
with respect to Restricted Shares. A Participant who has received RSUs may, within ten (10) days after receiving the RSU
Award, provide the Committee with a written notice of his or her desire to make Section 83(b) Election with respect to the
Shares subject to such RSUs. The Committee may in its discretion convert the Participant’s RSUs into Restricted Shares,
on a one- for-one basis, in full satisfaction of the Participant’s RSU Award. The Participant may then make a Section 83(b)
Election with respect to those Restricted Shares; provided that the Participant’s Section 83(b) Election will be invalid
if not filed with the Company and the appropriate U.S. tax authorities within 30 days after the Grant Date of the
RSUs that are thereafter replaced by the Restricted Shares.

 

(e)          Issuance
of Shares upon Vesting. As soon as practicable after vesting of a Participant’s Restricted Shares (or of the right to
receive Shares underlying RSUs), the Company shall deliver to the Participant, free from vesting restrictions, one Share for each
surrendered and vested Restricted Share (or deliver one Share free of the vesting restriction for each vested RSU), unless an
Award Agreement provides otherwise and subject to Section 10 regarding Withholding Taxes. No fractional Shares shall be distributed,
and cash shall be paid in lieu thereof.

 

8.            Performance
Awards.

 

(a)          Grant.
The Committee is hereby authorized to grant Performance Awards to Participants. Performance Awards include arrangements under
which the grant, issuance, retention, vesting and/or transferability of any Award are subject to Performance Criteria and such
additional conditions or terms as the Committee may

 

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designate. Subject to the terms of the Plan and any applicable Award Agreement,
a Performance Award granted under the Plan:

 

(i)          may
be denominated or payable in cash, Shares (including, without limitation, Restricted Shares), other securities, or other Awards;
and

 

(ii)         shall
confer on the holder thereof rights valued as determined by the Committee and payable to, or exercisable by, the holder of the
Performance Award, in whole or in part, on the achievement of such performance goals during such Performance Periods as the Committee
shall establish.

 

(b)          Amendment
of Performance Criteria. After a Performance Award has been granted, the Committee may, if it determines appropriate,
amend any Performance Criteria, at its sole and absolute discretion.

 

(c)          Satisfaction
of Performance Criteria. If, as a result of the applicable Performance Criteria being met, a Performance Award becomes
vested and/or exercisable in respect of some, but not all of the number of Shares underlying such Award, which did not become
vested and exercisable by the end of the Performance Period, such Performance Award shall thereupon lapse and cease to be exercisable
in respect of the balance of the Shares which did not vest and/or become exercisable by the end of the Performance Period.

 

9.            Dividend
Equivalent Rights. The Committee may grant Dividend Equivalent Rights to any Eligible Person, and may do so either pursuant
to an Award Agreement that is independent of any other Award (other than an Option or SAR) or through a provision in another Award
that Dividend Equivalent Rights attach to the Shares underlying the Award. For example, and without limitation, the Committee
may grant a Dividend Equivalent Right in respect of each Share subject to a Restricted Share Award, RSU Award, or Performance
Award.

 

(a)          Nature
of Right. Each Dividend Equivalent Right shall represent the right to receive amounts based on the dividends declared on Shares
as of all dividend payment dates during the term of the Dividend Equivalent Right (as determined by the Committee). Unless otherwise
determined by the Committee, a Dividend Equivalent Right shall expire upon termination of the Participant’s Continuous Service,
provided that a Dividend Equivalent Right that is granted as part of another Award shall have a term and an expiration date that
coincides with those of the related Award.

 

(b)          Settlement.
Unless otherwise provided in an Award Agreement, Dividend Equivalent Rights shall be paid out on the (i) record date for
dividends if the Award occurs on a stand-alone basis, and (ii) vesting or later settlement date for another Award if the
Dividend Equivalent Right is granted as part of it. Payment of all amounts determined in accordance with this Section shall be
in Shares, with cash paid in lieu of fractional Shares, provided that the Committee may instead provide in an Award Agreement
for cash settlement of all or part of the Dividend Equivalent Rights. Only the Shares actually issued pursuant to Dividend Equivalent
Rights shall count against the limits set forth in Section 3 above.

 

(c)          Other
Terms. The Committee may impose such other terms and conditions on the grant of a Dividend Equivalent Right as it deems appropriate
in its discretion as reflected by the terms of the Award Agreement. The Committee may establish a program under which Dividend
Equivalent Rights may be granted in conjunction with other Awards.

 

10.          Taxes;
Withholding.

 

(a)          General
Rule. Participants are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection
with Awards, and neither the Company or any of its Affiliates, nor any of their respective employees, directors, or agents shall
have any obligation to mitigate, indemnify, or otherwise hold any Participant harmless from any or all of such taxes. The Company’s
obligation to deliver Shares (or to pay cash) to Participants pursuant to Awards is at all times subject to a Participant’s
prior or coincident satisfaction of all required

 

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Withholding Taxes. Except to the extent otherwise either provided in an Award
Agreement, the Company or any of its Affiliates shall satisfy Withholding Taxes:

 

(i)          first
by withholding and cancelling the Participant’s rights with respect to a number of Shares that (A) would otherwise
have been delivered to the Participant pursuant to the Award, and (B) have an aggregate Fair Market Value (as of the date
of withholding) equal to the Withholding Taxes;

 

(ii)         second
by withholding any cash otherwise payable to the Participant pursuant to the Award; and

 

(iii)        finally,
by withholding the cash otherwise payable to the Participant by the Company.

 

The
number of Shares withheld and cancelled to pay a Participant’s Withholding Taxes shall not be rounded up to the
nearest whole Share sufficient to satisfy such taxes. In such case, the Participant shall pay to the Company that amount of
cash that is equal to the amount by which the Withholding Taxes exceed the Fair Market Value of such Shares as of the date of
withholding.

 

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

 

(c)          Unfunded
Tax Status. The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments
not yet made to a Person pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give such Person any
rights that are greater than those of a general creditor of the Company or any of its Affiliates, and a Participant’s rights
under the Plan at all times constitute an unsecured claim against the general assets of the Company for the collection of benefits
as they come due. Neither the Participant nor the Participant’s duly- authorized transferee or Beneficiaries shall have
any claim against or rights in any specific assets, Shares, or other funds of the Company.

 

11.          Non-Transferability
of Awards.

 

(a)          General.
Except as set forth in this Section, or as otherwise approved by the Committee, Awards may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent or distribution. The designation of a death
Beneficiary by a Participant will not constitute a transfer. An Award may be exercised during the lifetime of the holder of an
Award only by such holder, by the duly-authorized legal representative of a holder who is Disabled, or by a transferee permitted
by this Section.

 

(b)          Limited
Transferability Rights. The Committee may in its discretion provide in an Award Agreement that an Award in the form of a non-ISO,
SAR, Restricted Shares, or Performance Shares may be transferred, on such terms and conditions as the Committee deems appropriate,
either (i) by instrument to the Participant’s Immediate Family, (ii) by instrument to an inter vivos or testamentary
trust (or other entity) in which the Award is to be passed to the Participant’s designated beneficiaries, or (iii) by
gift to charitable institutions. Any transferee of the Participant’s rights shall succeed and be subject to all of the terms
of the applicable Award Agreement and the Plan.

 

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(c)          Death.
In the event of the death of a Participant, any outstanding Awards issued to the Participant shall automatically be transferred
to the Participant’s Beneficiary (or, if no Beneficiary is designated or surviving, to the person or persons to whom the
Participant’s rights under the Award pass by will or the laws of descent and distribution).

 

12.          Change
in Capital Structure; Change in Control; Etc.

 

(a)         Changes
in Capitalization. The Committee shall equitably adjust the number of Shares covered by each outstanding Award, and the number
of Shares that have been authorized for issuance under the Plan but as to which no Awards have yet been granted or that have been
returned to the Plan upon cancellation, forfeiture, or expiration of an Award, the maximum annual Share limit on Awards to any
individual Participant, as well as the exercise or other price per Share covered by each such outstanding Award, to reflect any
increase or decrease in the number of issued Shares resulting from a stock-split, reverse stock-split, stock dividend, combination,
recapitalization or reclassification of the Shares, merger, consolidation, change in organization form, or any other increase or
decrease in the number of issued Shares effected without receipt of consideration by the Company. In the event of any such transaction
or event, the Committee may provide in substitution for any or all outstanding Awards such alternative consideration (including
cash or securities of any surviving entity) as it may in good faith determine to be equitable under the circumstances and may require
in connection therewith the surrender of all Awards so replaced. In any case, such substitution of cash or securities shall not
require the consent of any person who is granted Awards pursuant to the Plan. Except as expressly provided herein, or in an Award
Agreement, if the Company issues for consideration shares of stock of any class or securities convertible into shares of stock
of any class, the issuance shall not affect, and no adjustment by reason thereof shall be required to be made with respect to the
number or price of Shares subject to any Award.

 

(b)          Dissolution
or Liquidation. In the event of the dissolution or liquidation of the Company other than as part of a Change of Control but
subject to the terms of any Award Agreements or employment-related agreements between the Company or any of its Affiliates and
any Participant, each Award will terminate immediately prior to the consummation of such dissolution or liquidation, subject to
the ability of the Committee to exercise any discretion authorized in the case of a Change in Control.

 

(c)          Change
in Control. In the event of a Change in Control but subject to the terms of any Award Agreements or employment-related agreements
between the Company or any of its Affiliates and any Participant, each outstanding Award shall be assumed, or a substantially
equivalent award shall be substituted, by the surviving or successor company or a parent or subsidiary of such successor company
(in each case, the “Successor Company”) upon consummation of the Change in Control. Notwithstanding
the foregoing, instead of having outstanding Awards be assumed or replaced with equivalent awards by the Successor Company, the
Committee may in its sole and absolute discretion and authority, without obtaining the approval or consent of the Company’s
shareholders or any Participant with respect to his or her outstanding Awards, take one or more of the following actions (with
respect to any or all of the Awards, and with discretion to differentiate between individual Participants and Awards for any reason):

 

(i)          accelerate
the vesting of Awards so that Awards shall vest (and, to the extent applicable, become exercisable) as to the Shares that otherwise
would have been unvested and provide that repurchase rights of the Company with respect to Shares issued pursuant to an Award
shall lapse as to the Shares subject to such repurchase right;

 

(ii)         arrange
or otherwise provide for the payment of cash or other consideration to Participants in exchange for the satisfaction and cancellation
of all or some outstanding Awards (based on the Fair Market Value, as of the date of the Change in Control, of the Award being
cancelled, based on any reasonable valuation method selected by the Committee, and with the Committee having full discretion to
cancel either all Awards or only select Awards (such as only those that have vested on or before the Change in Control), provided,
that no payment of cash or other consideration shall be made for Options that have an exercise price in excess of Fair Market
Value;

 

(iii)        terminate
all or some Awards upon the consummation of the Change in Control, provided that the Committee shall provide for vesting of such
Awards in full as of a date immediately prior to consummation of the Change in Control. To the extent that an Award is not exercised,
settled, or cancelled prior to

 

    9

     

    

 

consummation of a transaction in which the Award is not being assumed or substituted, such Award
shall terminate upon such consummation; and/or

 

(iv)        make
such other modifications, adjustments or amendments to outstanding Awards or this Plan as the Committee deems necessary or appropriate,
subject to the terms set forth above and Section 17.

 

Notwithstanding
the above and unless otherwise provided in an Award Agreement or in any employment-related agreement between the Company or any
of its Affiliates and the Participant, in the event a Participant is Involuntarily Terminated on or within twelve (12) months
(or any other period set forth in an Award Agreement) following a Change in Control, then any Award that is assumed or substituted
pursuant to this Section above shall accelerate and become fully vested (and become exercisable in full in the case of Options
and SARs), and any repurchase right applicable to any Shares underlying the Award shall lapse in full. The acceleration of vesting
and lapse of repurchase rights provided for in the previous sentence shall occur immediately prior to the effective date of the
Participant’s Involuntary Termination.

 

13.          Recoupment
of Awards. Unless otherwise specifically provided in an Award Agreement, and to the extent permitted by Applicable Law,
the Committee may in its sole and absolute discretion, without obtaining the approval or consent of the Company’s shareholders
or of any Participant, require that any Participant reimburse the Company for all or any portion of any Awards granted under this
Plan (“Reimbursement”), or the Committee may require the termination of any outstanding, unexercised,
unexpired Awards (“Termination”), or rescission of any exercise, payment, or delivery pursuant to the
Award (“Rescission”), or the recapture of any Shares (“Recapture”), if and
to the extent:

 

(a)          the
granting, vesting, or payment of such Award was predicated upon the achievement of certain financial results that were subsequently
the subject of a material financial restatement;

 

(b)          in
the Committee’s view, the Participant either benefited from a calculation that later proved to be materially inaccurate,
or engaged in fraud or misconduct that caused or partially caused the need for a material financial restatement by the Company
or any Affiliate; and lower granting, vesting, or payment of such Award would have occurred based upon the conduct described in
clause (a) of this Section.

 

In
each instance, the Committee shall, to the extent practicable and allowable under Applicable Laws, require Reimbursement, Termination,
or Rescission of, or Recapture relating to, any such Award granted to a Participant; provided that the Company will not seek Reimbursement,
Termination, or Rescission of, or Recapture relating to, any such Awards that were paid or vested more than three (3) years
prior to the first date of the applicable restatement period. Notwithstanding any other provision of the Plan, all Awards shall
be subject to Reimbursement, Termination, Rescission, and/or Recapture to the extent required by Applicable Law, including but
not limited to Section 10D of the Exchange Act. In addition, without limiting anything in this Section 13, all Awards granted
under the Plan will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant
to the listing standards of any national securities exchange or association on which the Company’s securities are listed
or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Law and any clawback
policy that the Company otherwise adopts, to the extent applicable and permissible under Applicable Law. In addition, the Board
may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Committee determines necessary
or appropriate, including but not limited to a reacquisition right in respect of previously acquired Shares or other cash or property
upon the occurrence of Cause. No recovery of compensation under such a clawback policy will be an event giving rise to a Participant’s
right to voluntarily terminate employment upon a “resignation for good reason,” or for a “constructive termination”
or any similar term under any plan of or agreement with the Company.

 

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

 

    10

     

    

 

15.          Administration
of the Plan. The Committee shall administer the Plan in accordance with its terms, provided that the Board may act in
lieu of the Committee on any matter. The Committee shall hold meetings at such times and places as it may determine from time
to time and may prescribe, amend, and rescind such rules, regulations, and procedures for the conduct of its business as it deems
advisable. In the absence of a duly appointed Committee, the Board shall function as the Committee for all purposes of the Plan.

 

(a)          Committee
Composition. The Board shall appoint the members of the Committee. The Board may at any time appoint additional members to
the Committee, remove and replace members of the Committee with or without Cause, and fill vacancies on the Committee however
caused.

 

(b)          Powers
of the Committee. Subject to the provisions of the Plan, the Committee shall have the authority, in its sole discretion:

 

(i)          to
grant Awards and to determine Eligible Persons to whom Awards shall be granted from time to time and the number of Shares, units,
or dollars to be covered by each Award;

 

(ii)         to
determine, from time to time, the Fair Market Value of Shares;

 

(iii)        to
determine, and to set forth in Award Agreements, the terms and conditions of all Awards, including, but not limited to, any applicable
exercise or purchase price, the installments and conditions under which an Award shall become vested (which may be based on performance),
terminated, expired, cancelled, or replaced, and the circumstances for vesting acceleration or waiver of forfeiture restrictions,
and other restrictions and limitations;

 

(iv)        to
approve the forms of Award Agreements and all other documents, notices, and certificates in connection therewith which need not
be identical either as to type of Award or among Participants;

 

(v)         to
construe and interpret the terms of the Plan and any Award Agreement, to determine the meaning of their terms, and to prescribe,
amend, and rescind rules and procedures relating to the Plan and its administration;

 

(vi)        to
the extent consistent with the purposes of the Plan and without amending the Plan, to modify, to cancel, or to waive the Company’s
rights with respect to any Awards, to adjust or to modify Award Agreements for changes in Applicable Law, and to recognize differences
in foreign law, tax policies, or customs;

 

(vii)       to
require, as a condition precedent to the grant, vesting, exercise, settlement, and/or issuance of Shares pursuant to any Award,
that a Participant agree to execute a general release of claims (in any form that the Committee may require, in its sole discretion,
which form may include any other provisions (e.g. confidentiality and restrictions on competition) that are found in general
claims release agreements that the Company utilizes or expects to utilize);

 

(viii)      in
the event that the Company establishes, for itself or using the services of a third party, an automated system for the documentation,
granting, settlement, or exercise of an Award, such as a system using an internet website or interactive voice response, to implement
paperless documentation, granting, settlement, or exercise of Awards by a Participant, may be permitted through the use of such
an automated system; and

 

(ix)        to
make all interpretations and to take all other actions that the Committee may consider necessary or advisable to administer the
Plan or to effectuate its purposes.

 

Subject
to Applicable Law and the restrictions set forth in the Plan, the Committee may delegate administrative functions to individuals
who are Trustees or Employees.

 

(c)          Local
Law Adjustments and Sub-Plans. To facilitate the making of any grant of an Award under this Plan, the Committee may adopt
rules and provide for such special terms for Awards to Participants who are (i) located within the United States, (ii) foreign
nationals, or (iii) employed by the Company or any of its Affiliates

 

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outside of the United States of America as the Committee
may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom. Without limiting the foregoing,
the Company is specifically authorized to adopt rules and procedures regarding local currency conversion, taxes, withholding procedures,
and handling of stock certificates, which vary with the customs and requirements of particular countries. The Company may adopt
sub-plans and establish escrow accounts and trusts, and settle Awards in cash in lieu of shares, as may be appropriate, required
or applicable to particular locations and countries.

 

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

 

(e)          Deference
to Committee Determinations. The Committee shall have the discretion to interpret or construe ambiguous, unclear, or implied
(but omitted) terms in any fashion it deems to be appropriate in its sole discretion, and to make any findings of fact needed
in the administration of the Plan or Award Agreements. The Committee’s prior exercise of its discretionary authority shall
not obligate it to exercise its authority in a like fashion thereafter. The Committee’s interpretation and construction
of any provision of the Plan or of any Award or Award Agreement, and all determinations that the Committee makes pursuant to the
Plan, shall be final, binding, and conclusive. The validity of any such interpretation, construction, decision or finding of fact
shall not be given de novo review if challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly
made in bad faith or materially affected by fraud.

 

(f)          No
Liability; Indemnification. Neither the Board nor any Trustee or Committee member, nor any Person acting at the direction
of the Board or the Committee, shall be liable for any act, omission, interpretation, construction, or determination made in good
faith with respect to the Plan, any Award, or any Award Agreement. The Company and its Affiliates shall pay or reimburse any Committee
member, Trustee, Employee, or Consultant who in good faith takes action on behalf of the Plan for all expenses incurred with respect
to the Plan, and to the full extent allowable under Applicable Law shall indemnify each and every one of them for any claims,
liabilities, and costs (including reasonable attorney’s fees) arising out of their good faith performance of duties on behalf
of the Plan. The Company and its Affiliates may, but shall not be required to, obtain liability insurance for this purpose.

 

(g)         Claims
Limitations Period. Any Participant who believes he or she is being denied any benefit or right under this Plan or under any
Award may file a written claim with the Committee. Any claim must be delivered to the Committee within sixty (60) days of
the specific event giving rise to the claim. Untimely claims will not be processed and shall be deemed denied. The Committee will
notify the Participant of its decision in writing as soon as administratively practicable. Claims not responded to by the Committee
in writing within 120 days of the date the written claim is delivered to the Committee shall be deemed denied. The Committee’s
decision, including any deemed denial, is final, binding and conclusive on all persons. No lawsuit relating to this Plan may be
filed before a written claim is filed with the Committee and is denied or deemed denied, and any permitted lawsuit must be filed
within one year of such denial or deemed denial or be forever barred.

 

(h)         Expenses.
The expenses of administering the Plan shall be borne jointly and severally by the Company and its Affiliates.

 

16.          Time
of Granting Awards. The date of grant (“Grant Date”) of an Award shall be the date on which
the Committee makes the determination granting such Award or such other date as is determined by the Committee, provided that
in the case of an ISO, the Grant Date shall be the later of the date on which the Committee makes the determination granting such
ISO or the date of commencement of the Participant’s employment relationship with the Company; and, provide further, that
the grant date under generally accepted accounting principles as consistently applied by the Company may be different than the
Grant Date hereunder.

 

    12

     

    

 

17.          Modification
of Awards and Substitution of Options. Within the limitations of the Plan, the Committee may modify an Award to accelerate
the rate at which an Option or SAR may be exercised, to accelerate the vesting of any Award, to extend or renew outstanding Awards,
to accept the cancellation of outstanding Awards to the extent not previously exercised, or to make any change that the Plan would
permit for a new Award. However, except as approved by the Company’s shareholders for any period during which it is subject
to the reporting requirements of the Exchange Act, any amendment to this Plan or any Award Agreement that results in the repricing
of an Option or SAR issued under this Plan shall not be effective without prior approval of the shareholders of the Company. For
this purpose, repricing includes a reduction in the exercise price of an Option or SAR or the cancellation of an Option or SAR
in exchange for cash, Options, or SARs with an exercise price less than the exercise price of the cancelled Option or SAR, other
awards under this Plan, or any other consideration provided by the Company. Notwithstanding the foregoing in this Section 17,
and except as provided in Section 13, no modification of an outstanding Award may materially and adversely affect a Participant’s
rights thereunder unless either (i) the Participant provides written consent to the modification, or (ii) before a Change
in Control, the Committee determines in good faith that the modification is not materially adverse to the Participant.

 

18.          Plan
Amendment and Termination. The Committee may amend or terminate the Plan as it shall deem advisable; provided that no
change shall be made that increases the total number of Shares reserved for issuance pursuant to Awards (except pursuant to Section 12
above) unless such change is authorized by the shareholders of the Company. A termination or amendment of the Plan shall not materially
and adversely affect a Participant’s vested rights under an Award previously granted to him or her, unless the Participant
consents in writing to such termination or amendment. Notwithstanding the foregoing, the Committee may amend the Plan to comply
with changes in tax, securities laws or regulations, or U.S. generally accepted accounting principles, or in the interpretation
thereof.

 

19.          Term
of Plan. If not sooner terminated by the Board, this Plan shall terminate at the close of business on the date ten (10) years
after the earlier of the date on which the Board approved the Plan and the Effective Date of the Plan as determined under Section 1(b)
above. No Awards shall be made under the Plan after its termination.

 

20.          Governing
Law. The terms of this Plan shall be governed by the laws of the State of Maryland, within the United States of America,
without regard to the State’s conflict of laws rules.

 

21.          Laws
and Regulations.

 

(a)          General
Rules. This Plan, the granting of Awards, the exercise of Options and SARs, and the obligations of the Company hereunder (including
those to pay cash or to deliver, sell, or accept the surrender of any of its Shares or other securities) shall be subject to all
Applicable Law. In the event that any Shares are not registered under any Applicable Law prior to the required delivery of them
pursuant to Awards, the Company may require, as a condition to their issuance or delivery, that the persons to whom the Shares
are to be issued or delivered make any written representations and warranties (such as that such Shares are being acquired by
the Participant for investment for the Participant’s own account and not with a view to, for resale in connection with,
or with an intent of participating directly or indirectly in, any distribution of such Shares) that the Committee may reasonably
require, and the Committee may in its sole discretion include a legend to such effect on the certificates representing any Shares
issued or delivered pursuant to the Plan.

 

(b)          Black-out
Periods. Notwithstanding any contrary terms within the Plan or any Award Agreement, the Committee shall have the absolute
discretion to impose a “blackout” period on the exercise of any Option or SAR, as well as the settlement of any Award,
with respect to any or all Participants (including those whose Continuous Service has ended) to the extent that the Committee
determines that doing so is either desirable or required in order to comply with applicable securities laws.

 

(c)          Severability;
Blue Pencil. In the event that any one or more of the provisions of this Plan shall be or become invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.
If, in the opinion of any court of competent jurisdiction such covenants are not reasonable in any respect, such court shall have
the right, power and authority to excise or modify such provision or provisions of these covenants as to the court shall appear
not reasonable and to enforce the remainder of these covenants as so amended.

 

    13

     

    

 

22.          No
Shareholder Rights. Neither any Participant nor any transferee or Beneficiary of a Participant shall have any rights as
a shareholder of the Company with respect to any Shares underlying any Award until the date of issuance of a share (by certificate
or book-entry) to such Participant, transferee, or Beneficiary for such Shares in accordance with the Company’s governing
instruments and Applicable Law. Prior to the issuance of Shares or Restricted Shares pursuant to an Award, a Participant shall
not have the right to vote or to receive dividends or any other rights as a shareholder with respect to the Shares underlying
the Award (unless otherwise provided in the Award Agreement for Restricted Shares), notwithstanding its exercise in the case of
Options and SARs. No adjustment will be made for a dividend or other right that is determined based on a record date prior to
the date the stock certificate is issued, except as otherwise specifically provided for in this Plan or an Award Agreement.

 

23.          No
Employment Rights. The Plan shall not confer upon any Participant any right to continue an employment, service or consulting
relationship with the Company, nor shall it affect in any way a Participant’s right or the Company’s right to terminate
the Participant’s employment, service, or consulting relationship at any time, with or without Cause.

 

24.          Data
Privacy. As a condition of receipt of any Award, each Participant explicitly and unambiguously consents to the collection,
use, and transfer, in electronic or other form, of personal data as described in this Section 24 by and among, as applicable,
the Company and its Affiliates for the purpose of implementing, administering, and managing this Plan and Awards and the Participant’s
participation in this Plan. In furtherance of such implementation, administration, and management, the Company and its Affiliates
may hold certain personal information about a Participant, including, but not limited to, the Participant’s name, home address,
telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job
title(s), information regarding any securities of the Company or any of its Affiliates, and details of all Awards (the “Data”).
In addition to transferring the Data amongst themselves as necessary for the purpose of implementation, administration, and management
of this Plan and Awards and the Participant’s participation in this Plan, the Company and its Affiliates may each transfer
the Data to any third parties assisting the Company in the implementation, administration, and management of this Plan and Awards
and the Participant’s participation in this Plan. Recipients of the Data may be located in the Participant’s country
or elsewhere, and the Participant’s country and any given recipient’s country may have different data privacy laws
and protections. By accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain, and transfer
the Data, in electronic or other form, for the purposes of assisting the Company in the implementation, administration, and management
of this Plan and Awards and the Participant’s participation in this Plan, including any requisite transfer of such Data
as may be required to a broker or other third party with whom the Company or the Participant may elect to deposit any Shares.
The Data related to a Participant will be held only as long as is necessary to implement, administer, and manage this Plan and
Awards and the Participant’s participation in this Plan. A Participant may, at any time, view the Data held by the Company
with respect to such Participant, request additional information about the storage and processing of the Data with respect to
such Participant, recommend any necessary corrections to the Data with respect to the Participant, or refuse or withdraw the consents
herein in writing, in any case without cost, by contacting the Participant’s local human resources representative. The Company
may cancel the Participant’s eligibility to participate in this Plan, and in the Committee’s sole and absolute discretion,
the Participant may forfeit any outstanding Awards if the Participant refuses or withdraws the consents described herein. For
more information on the consequences of refusal to consent or withdrawal of consent, Participants may contact their local human
resources representative.

 

    14Document

INDEMNITY AGREEMENT
This Indemnity Agreement (the “Agreement”), dated as of _________, __, 202_, is made by and between Immersion Corporation, a Delaware corporation (the “Company”), and _________________________ (the “Indemnitee”). 
RECITALS
A.     The Company is aware that competent and experienced persons are increasingly reluctant to serve as directors, officers or agents of corporations unless they are protected by comprehensive liability insurance or indemnification, due to increased exposure to litigation costs and risks resulting from their service to such corporations, and due to the fact that the exposure frequently bears no reasonable relationship to the compensation of such directors, officers and other agents.      
B.     The statutes and judicial decisions regarding the duties of directors and officers are often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors, officers and agents with adequate, reliable knowledge of legal risks to which they are exposed or information regarding the proper course of action to take.       
C.     Plaintiffs often seek damages in such large amounts and the costs of litigation may be so enormous (whether or not the case is meritorious), that the defense and/or settlement of such litigation is often beyond the personal resources of directors, officers and other agents.       
D.     The Company believes that it is unfair for its directors, officers and agents and the directors, officers and agents of its subsidiaries to assume the risk of huge judgments and other expenses which may occur in cases in which the director, officer or agent received no personal profit and in cases where the director, officer or agent was not culpable.       
E.     The Company recognizes that the issues in controversy in litigation against a director, officer or agent of a corporation such as the Company or its subsidiaries are often related to the knowledge, motives and intent of such director, officer or agent, that he is usually the only witness with knowledge of the essential facts and exculpating circumstances regarding such matters, and that the long period of time which usually elapses before the trial or other disposition of such litigation often extends beyond the time that the director, officer or agent can reasonably recall such matters; and may extend beyond the normal time for retirement for such director, officer or agent with the result that he, after retirement or in the event of his death, his spouse, heirs, executors or administrators, may be faced with limited ability and undue hardship in maintaining an adequate defense, which may discourage such a director, officer or agent from serving in that position.        
F.     Based upon their experience as business managers, the Board of Directors of the Company (the “Board”) has concluded that, to retain and attract talented and experienced individuals to serve as directors, officers and agents of the Company and its subsidiaries and to encourage such individuals to take the business risks necessary for the success of the Company and its subsidiaries, it is necessary for the Company to contractually indemnify its directors, officers and agents and the directors, officers and agents of its subsidiaries, and to assume for itself maximum liability for expenses and damages in connection with claims against such directors, officers and agents in connection with their service to the Company and its subsidiaries, and has further concluded that the failure to provide such contractual indemnification could result in great harm to the Company and its subsidiaries and the Company's stockholders.       

G.     Section 145 of the General Corporation Law of Delaware, under which the Company is organized (“Section 145”), empowers the Company to indemnify its directors, officers, employees and agents by agreement and to indemnify persons who serve, at the request of the Company, as the directors, officers, employees or agents of other corporations or enterprises, and expressly provides that the indemnification provided by Section 145 is not exclusive.       
H.     This Agreement is a supplement to and in furtherance of the Bylaws and Certificate of Incorporation of the Company and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;
I.     Indemnitee has certain rights to indemnification and/or insurance provided by _______ which Indemnitee and ___________ intend to be secondary to the primary obligation of the Company to indemnify Indemnitee as provided herein, with the Company’s acknowledgement and agreement to the foregoing being a material condition to Indemnitee’s willingness to serve on the Board;
J.     The Company desires and has requested the Indemnitee to serve or continue to serve as a director, officer or agent of the Company and/or one or more subsidiaries of the Company free from undue concern for claims for damages arising out of or related to such services to the Company and/or one or more subsidiaries of the Company.       
K.     Indemnitee is willing to serve, or to continue to serve, the Company and/or one or more subsidiaries of the Company, provided that he is furnished the indemnity provided for herein.                                     
AGREEMENT
NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:       
1.     Definitions.  For the purposes of this Agreement:
(a)     “Affiliated Stockholder” is defined in Section 4(d) of this Agreement.
(b)    Agent of the Company means any person who is or was a director, officer, employee or other agent of the Company or a subsidiary of the Company; or is or was serving at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company as a director, officer, employee or agent of another foreign or domestic corporation, partnership, joint venture, trust or other enterprise; or was a director, officer, employee or agent of a foreign or domestic corporation which was a predecessor corporation of the Company or a subsidiary of the Company, or was a director, officer, employee or agent of another enterprise at the request of, for the convenience of, or to represent the interests of such predecessor corporation.
(c)    Beneficial Owner shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity. 
(d)    “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:
2 

    (i)      Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing twenty percent (20%) or more of the combined voting power of the Company’s then outstanding securities unless the change in relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;
    (ii)      Change in Board.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a least a majority of the members of the Board;
    (iii)      Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty-one percent (51%) of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the Board or other governing body of such surviving entity;
    (iv)      Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and
    (v)      Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.
(e)    Exchange Act shall mean the Securities Exchange Act of 1934, as amended.
(f)    Expenses include all out of pocket expenses or costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees and related disbursements), actually 'and reasonably incurred by the Indemnitee in connection with either the investigation, defense or appeal of a Proceeding or establishing or enforcing a right to indemnification under this Agreement or Section 145 or otherwise; provided, however, that "expenses" shall not include any judgments, fines, ERISA excise taxes or penalties, or amounts paid in settlement of a Proceeding. 
(g)    Fund Indemnitors is defined in Section 9(b) of this Agreement.
(h)    Independent Counsel means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither at present is, nor in the past five years has been, retained to represent (i) the Company or an Indemnified Party in any matter material to either such party (other than with respect to matters concerning an Indemnified Party under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in 
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representing either the Company or an Indemnified Party in an action to determine an Indemnified Party’s rights under this Agreement.  The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.
(i)     Indemnified Party and Indemnified Parties mean Affiliated Stockholders and Agents of an Affiliated Stockholder (to the extent provided by Sections 1(f), 1(h), 5 through 8, 9(d), 10 and 20 of this Agreement) and also includes the Indemnitee.
(j)    Person shall have the meaning stated in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.  
(k)     Proceeding means any threatened, pending, or completed action, suit or other Proceeding, whether civil, criminal, administrative, or investigative.            
(l)     Subsidiary means any corporation of which more than 50% of the outstanding voting securities is owned directly or indirectly by the Company, by the Company and one or more other subsidiaries, or by one or more other subsidiaries.       
2.     Agreement to Serve. The Indemnitee agrees to serve and/or continue to serve as agent of the Company, at its will (or under separate agreement, if such agreement exists), in the capacity Indemnitee currently serves as an agent of the Company, so long as he is duly appointed or elected and qualified in accordance with the applicable provisions of the Bylaws of the Company or any subsidiary of the Company or until such time as he tenders his resignation in writing; provided, however, that nothing contained in this Agreement is intended to create any right to continued employment by Indemnitee.       
3.     Liability Insurance.            
(a)     Maintenance of D&O Insurance. The Company hereby covenants and agrees that, so long as the Indemnitee shall continue to serve as an agent of the Company and thereafter so long as the Indemnitee shall be subject to any possible Proceeding by reason of the fact that the Indemnitee was an agent of the Company, the Company, subject to Section 3(c), shall promptly obtain and maintain in full force and effect directors’ and officers’ liability insurance (“D&O Insurance”) in reasonable amounts from established and reputable insurers.            
(b)     Rights and Benefits. In all policies of D&O Insurance, the Indemnitee shall be named as an insured in such a manner as to provide the Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company's directors, if the Indemnitee is a director; or of the Company's officers, if the Indemnitee is not a director of the Company but is an officer; or of the Company's key employees, if the Indemnitee is not a director or officer but is a key employee.            
(c)     Limitation on Required Maintenance of D&O Insurance. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain D&O Insurance if the Company determines in good faith that such insurance is not reasonably available, the premium costs for such insurance are disproportionate to the amount of coverage provided, the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or the Indemnitee is covered by similar insurance maintained by a subsidiary of the Company.       
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4.     Mandatory Indemnification. Subject to Section 8 below, the Company shall indemnify the Indemnitee as follows:            
(a)     Successful Defense. To the extent the Indemnitee has been successful on the merits or otherwise in defense of any Proceeding (including, without limitation, an action by or in the right of the Company) to which the Indemnitee was a party by reason of the fact that he is or was an Agent of the Company at any time, against all expenses of any type whatsoever actually and reasonably incurred by him in connection with the investigation, defense or appeal of such Proceeding.            
(b)     Proceedings Other Than Proceedings by or in the Right of the Company. If the Indemnitee is a Person who was or is a party or is threatened to be made a party to any Proceeding (other than an action by or in the right of the Company) by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by him in any such capacity, the Company shall indemnify the Indemnitee against any and all expenses and liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes and penalties, and amounts paid in settlement) imposed by a court or governmental entity or otherwise actually and reasonably incurred by him in connection with the investigation, defense, settlement or appeal of such Proceeding, provided the Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and its stockholders, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful.            
(c)     Derivative Actions or Other Proceedings by or in the Right of the Company. If the Indemnitee is a Person who was or is a party or is threatened to be made a party to any Proceeding by or in the right of the Company by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by him in any such capacity, the Company shall indemnify the Indemnitee against all expenses actually and reasonably incurred by him in connection with the investigation, defense, settlement, or appeal of such Proceeding, provided the Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and its stockholders; except that no indemnification under this Section 4(c) shall be made in respect to any claim, issue or matter as to which such Person shall have been finally adjudged to be liable to the Company by a court of competent jurisdiction unless and only to the extent that the court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such Person is fairly and reasonably entitled to indemnity for such amounts which the court shall deem proper.  
(d)     Indemnification of Affiliated Stockholder.  If (i) Indemnitee is or was affiliated with one (1) or more investment funds or firms that has invested in the Company (an “Affiliated Stockholder”), and (ii) the Affiliated Stockholder is, or is threatened to be made, a party to or a participant in any Proceeding, and (iii) the Affiliated Stockholder’s involvement in the Proceeding (A) arises primarily out of, or relates to, any action taken by the Company that was approved by the Company’s Board, and (B) arises out of facts or circumstances that are the same or substantially similar to the facts and circumstances that form the basis of claims that have been, could have been or could be brought against the Indemnitee in a Proceeding, regardless of whether the legal basis of the claims against the Indemnitee and the Affiliated Stockholder are the same or similar, then the Affiliated Stockholder shall be entitled to all rights and remedies, including with respect to indemnification and advancement, provided to the Indemnitee under this Agreement as if the Affiliated Stockholder were the Indemnitee.  The rights provided to the Affiliated Stockholder under this Section 4(d) shall be suspended during any period during which the Affiliated Stockholder does not have a representative on the Company’s Board; provided, however, that in the event of any such suspension or termination, the Affiliated Stockholder’s rights to indemnification and advancement of expenses will not be suspended or terminated with 
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respect to any Proceeding based in whole or in part on facts and circumstances occurring at any time prior to such suspension or termination regardless of whether the Proceeding arises before or after such suspension or termination. The Company and Indemnitee intend and agree that the Affiliated Stockholder is an express third-party beneficiary of the terms of this Section 4(d).         
(e)     Actions where Indemnitee is Deceased. If the Indemnitee is a Person who was or is a party or is threatened to be made a party to any Proceeding by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by him in any such capacity, and if prior to, during the pendency of after completion of such Proceeding Indemnitee becomes deceased, the Company shall indemnify the Indemnitee's heirs, executors and administrators against any and all expenses and liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes and penalties, and amounts paid in settlement) actually and reasonably incurred to the extent Indemnitee would have been entitled to indemnification pursuant to Sections 4(a), 4(b), or 4(c) above were Indemnitee still alive.            
(f)     Indemnification for Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the extent that the Indemnitee or an Agent of an Affiliated Stockholder is, by reason of his or her corporate status or affiliation with Indemnitee, a witness, or is made (or asked) to respond to discovery requests, in any Proceeding to which Indemnitee or such Agent of an Affiliated Stockholder is not a party, he or she shall be indemnified against all Expenses actually and reasonably incurred by him or her, or on his or her behalf, in connection therewith.

(g)    Notwithstanding the foregoing, and except as provided in Section 9(b) of this Agreement, the Company shall not be obligated to indemnify the Indemnitee for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes and penalties, and amounts paid in settlement) for which payment is actually made to Indemnitee under a valid and collectible insurance policy of D&O Insurance, or under another valid and enforceable indemnity clause, by-law or agreement.     
5.     Partial Indemnification and Contribution. 
(a)     If  an Indemnified Parties is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes and penalties, and amounts paid in settlement) incurred by him, her or it in the investigation, defense, settlement or appeal of a Proceeding, but not entitled, however, to indemnification for all of the total amount of this Agreement, the Company shall nevertheless indemnify the Indemnified Party for such total amount except as to the portion of this Agreement to which the Indemnified Party is not entitled.   
(b)     Whether or not the indemnification provided in Section 4 of this Agreement is available, in respect of any threatened, pending or completed Proceeding in which the Company is jointly liable with an Indemnified Party (or would be if joined in such Proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such Proceeding without requiring the Indemnified Party to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee.  The Company shall not enter into any settlement of any Proceeding in which the Company is jointly liable with an Indemnified Party (or would be if joined in such Proceeding) unless such settlement provides for a full and final release of all claims asserted against the Indemnified Party.
(c)     Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason,  an Indemnified Party shall elect or be required to pay 
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all or any portion of any judgment or settlement in any threatened, pending or completed Proceeding in which the Company is jointly liable with the Indemnified Party  (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by the Indemnified Party in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company, other than the Indemnified Party, who are jointly liable with the Indemnified Party (or would be if joined in such Proceeding), on the one hand, and the Indemnified Party, on the other hand, from the transaction or events from which such Proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company other than the Indemnified Party who are jointly liable with the Indemnified Party (or would be if joined in such Proceeding), on the one hand, and the Indemnified Party, on the other hand, in connection with the transaction or events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which applicable law may require to be considered.  The relative fault of the Company and all officers, directors or employees of the Company, other than the Indemnified Party, who are jointly liable with the Indemnified Party (or would be if joined in such Proceeding), on the one hand, and the Indemnified Party, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.
(d)     The Company hereby agrees to fully indemnify and hold Indemnified Parties harmless from any claims of contribution which may be brought by officers, directors, or employees of the Company, other than the Indemnified Parties, who may be jointly liable with the Indemnified Parties.
(e)     To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to  an Indemnified Party for any reason whatsoever, the Company, in lieu of indemnifying the Indemnified Party, shall contribute to the amount incurred by the Indemnified Party, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and the Indemnified Party as a result of the event(s) and/or transaction(s) giving cause to such Proceeding and/or (ii) the relative fault of the Company (and its directors, officers, employees and Agents) and the Indemnified Party in connection with such event(s) and/or transaction(s).
6.     Mandatory Advancement of Expenses. Subject to Section 8(a) below, the Company shall advance all expenses incurred by an Indemnified Party in connection with the investigation, defense, settlement or appeal of any Proceeding to which the Indemnified Party is a party or is threatened to be made a party by reason of the fact that the Indemnitee is or was an Agent of the Company or the Affiliated Stockholder satisfies the conditions set forth in Section 4(d) of this Agreement.  Indemnitee (and, as applicable, an Affiliated Stockholder or an Agent of an Affiliated Stockholder) hereby undertakes to repay such amounts advanced only if, and to the extent that, it shall be determined ultimately that the Indemnitee (or, as applicable, the Affiliated Stockholder or the Agent of an Affiliated Stockholder) is not entitled to be indemnified by the Company as authorized hereby. The advances to be made hereunder shall be paid by the Company to the Indemnitee (or, as applicable, the Affiliated Stockholder or the Agent of an Affiliated Stockholder) within twenty (20) days following delivery of a written request therefor by the Indemnitee (or, as applicable, the Affiliated Stockholder or the Agent of an Affiliated Stockholder) to the Company.       
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7.     Procedures and Presumptions for Determination of Entitlement to Indemnification.  It is the intent of this Agreement to secure for the Indemnified Parties rights of indemnity that are as favorable as may be permitted under the DGCL and public policy of the State of Delaware.  Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether an Indemnified Party is entitled to indemnification under this Agreement:
(a)    To obtain indemnification under this Agreement, an Indemnified Party shall submit to the Company a written request, including such documentation and information as is reasonably available to the Indemnified Party and is reasonably necessary to determine whether and to what extent the Indemnified Party is entitled to indemnification.  The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that the Indemnified Party has requested indemnification.  Notwithstanding the foregoing, any failure of an Indemnified Party to provide such a request to the Company, or to provide such a request in a timely fashion, shall not relieve the Company of any liability that it may have to that Indemnified Party unless, and to the extent that, such failure actually and materially prejudices the interests of the Company.  The Company will be entitled to participate in the Proceeding at its own Expense.
(b)    Upon written request by an Indemnified Party for indemnification pursuant to the first sentence of Section 7(a) of this Agreement, a determination with respect to the Indemnified Party’s entitlement thereto shall be made in the specific case by one of the following four methods, the choice of which method shall be at the election of the Board, unless there has been a Change in Control within the meaning of Section 1(d), in which case method (iii), use of an Independent Counsel, must be chosen: 
    (i) by a majority vote of the disinterested directors, even though less than a quorum, 
    (ii) by a committee of disinterested directors designated by a majority vote of the disinterested directors, even though less than a quorum, 
    (iii) if there are no disinterested directors or if the disinterested directors so direct or if there has been a Change in Control within the meaning of Section 1(d), by the Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to the Indemnified Parties, or 
    (iv) if so directed by the Board, by the stockholders of the Company.  
For purposes of this Section 7, disinterested directors are those members of the Board who are not parties to the Proceeding in respect of which indemnification is sought by an Indemnified Party.
(c)    If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 7(b)(iii), the Independent Counsel shall be selected as provided in this Section 7(c).  The Independent Counsel shall be selected by the Board.  An Indemnified Party may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1(h) of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If a written objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that 
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such objection is without merit.  If, within twenty (20) days after submission by an Indemnified Party of a written request for indemnification pursuant to Section 7(a) of this Agreement, no Independent Counsel shall have been selected and not objected to, either the Company or the Indemnified Party may petition the Court of Chancery of the State of Delaware or other court of competent jurisdiction for resolution of any objection which shall have been made by the  Indemnified Party to the Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 7(b) of this Agreement.  The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 7(b) of this Agreement, and the Company shall pay all reasonable fees and expenses incurred by the Company and the Indemnified Parties incident to the procedures of this Section 7(c), regardless of the manner in which such Independent Counsel was selected or appointed.
(d)    In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that the Indemnified Party is entitled to indemnification under this Agreement.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.  Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because an Indemnified Party has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that an Indemnified Party has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that an Indemnified Party has not met the applicable standard of conduct.
(e)    An Indemnified Party shall be deemed to have acted in good faith if the Indemnified Party’s action is based on the records or books of account of the Company and its Subsidiaries, including financial statements, or on information supplied to the Indemnified Party by the officers of the Company and its Subsidiaries in the course of their duties, or on the advice of legal counsel for the Company and its Subsidiaries or on information or records given or reports made to the Company and its Subsidiaries by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Company and its Subsidiaries.  The provisions of this Section 7(e) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnified  Party may be deemed to have met the applicable standard of conduct set forth in this Agreement.  In addition, the knowledge and/or actions, or failure to act, of any director, officer, Agent or employee of the Company and its Subsidiaries shall not be imputed to an Indemnified Party for purposes of determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of this Section 7(e) are satisfied, it shall in any event be presumed that an Indemnified Party has at all times acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
(f)    If the person, persons or entity empowered or selected under Section 7(b) to determine whether an Indemnified Party is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and the Indemnified Party shall be entitled to such indemnification absent (i) a misstatement by the Indemnified Party of a material fact, or an omission of a material fact necessary to make the Indemnified Party’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such sixty (60) day period may be extended for a reasonable time, not to exceed an 
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additional thirty (30) days, if the person, persons or entity making such determination with respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or information relating thereto; and provided further, that the foregoing provisions of this Section 7(f) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 7(b)(iv) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination, the Board or the Disinterested Directors, if appropriate, resolve to submit such determination to the stockholders for their consideration at an annual meeting of stockholders to be held within seventy five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat.
(g)    An Indemnified Party shall cooperate with the person, persons or entity making such determination with respect to an Indemnified Party’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to the Indemnified Party and reasonably necessary to such determination.  Any Independent Counsel, member of the Board or stockholder of the Company shall act reasonably and in good faith in making a determination regarding the Indemnified Party’s entitlement to indemnification under this Agreement.  Any costs or expenses (including attorneys’ fees and disbursements) incurred by an Indemnified Party in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to the Indemnified Party’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold the Indemnified Party harmless therefrom.
(h)    In the event that any Proceeding to which an Indemnified Party is a party is resolved in any manner other than by adverse judgment against the Indemnified Party (including, without limitation, settlement of such Proceeding with or without payment of money or other consideration) it shall be presumed that the Indemnified Party has been successful on the merits or otherwise in such Proceeding.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
(i)    The termination of any Proceeding, or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of an Indemnified Party to indemnification or create a presumption that the Indemnified Party did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that the Indemnified Party had reasonable cause to believe that his or her conduct was unlawful.
8.     Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:            
(a)     To indemnify or advance expenses to an Indemnified Party with respect to Proceedings or claims initiated or brought voluntarily by the Indemnified Party and not by way of defense, unless 
(i)     such indemnification is expressly required to be made by law, 
(ii)     the Proceeding was authorized by the Board, 
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(iii)     such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under the General Corporation Law of Delaware or 
(iv)     the Proceeding is brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 145. 
(b)    To indemnify the Indemnified  Party for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by the Indemnified Party of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law, (ii) any reimbursement of the Company by the Indemnified  Party of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnified Party from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), as modified by the Dodd-Frank Wall Street Reform and Consumer Protection Act  of 2010 and further modified by 15 U.S.C. § 78u(d), or the payment to the Company of profits arising from the purchase and sale by the Indemnified Party of securities in violation of Section 306 of the Sarbanes-Oxley Act) or (iii) any reimbursement of the Company by the Indemnified Party of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act.
9.     Non-exclusivity. 
(a)    The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee may have under any provision of law, the Company's Certificate of Incorporation or Bylaws, the vote of the Company's stockholders or disinterested directors, other agreements, or otherwise, both as to action in his official capacity and to action in another capacity while occupying his position as an Agent of the Company, and the Indemnitee's rights hereunder shall continue after the Indemnitee has ceased acting as an Agent of the Company and shall inure to the benefit of the heirs, executors and administrators of the Indemnitee.
(b)    The Company hereby acknowledges that Indemnitee has certain rights to indemnification, advancement of expenses and/or insurance provided by [Name of Fund/Sponsor] and certain of [its][their] affiliates (collectively, the “Fund Indemnitors”).  The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by an Indemnified Party are secondary), (ii) that it shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement and the Certificate of Incorporation or Bylaws of the Company (or any other agreement between the Company and Indemnitee), without regard to any rights Indemnitee may have against the Fund Indemnitors, and (iii)  that it irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect of this Agreement.  The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of 
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Indemnitee against the Company.  The Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of the terms of this Section 9(b).
(c)    Except as provided in Section 9(b) above, in the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee (other than against the Fund Indemnitors), who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.
(d)    Except as provided in Section 9(b) above, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that an Indemnified Party has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
(e)    Except as provided in Section 9(b) above, the Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.
10.     Enforcement and Remedies of an Indemnified Party. 
(a)In the event that (i) a determination is made pursuant to Section 7 of this Agreement that an Indemnified Party is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 6 of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to Section 7(b) of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 4(a), 4(d), 4(f) or 5(a) or the last sentence of Section 7(g) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made pursuant to Sections 4(b) or 4(c) of this Agreement within ten (10) days after a determination has been made that the Indemnified Party is entitled to indemnification or such determination is deemed to have been made pursuant to Section 7 of this Agreement, the Indemnified Party shall be entitled to an adjudication in the Court of Chancery of the State of Delaware, or, at the option of the Indemnified Party, in an arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association, of the Indemnified Party’s entitlement to such indemnification.  The Indemnified Party shall commence such Proceeding seeking an adjudication within one hundred eighty (180) days following the date on which the Indemnified Party first has the right to commence such Proceeding pursuant to this Section 10(a).  The Company shall not oppose the Indemnified Party’s right to seek any such adjudication.
(b)In the event that a determination shall have been made pursuant to Section 7(b) of this Agreement that an Indemnified Party is not entitled to indemnification, any judicial Proceeding commenced pursuant to this Section 10 shall be conducted in all respects as a de novo trial on the merits, and the Indemnified Party shall not be prejudiced by reason of the adverse determination under Section 7(b).
(c)If a determination shall have been made pursuant to Section 7(b) of this Agreement that an Indemnified Party is entitled to indemnification, the Company shall be bound by such determination in any judicial Proceeding commenced pursuant to this Section 10, absent (i) a misstatement by the Indemnified Party of a material fact, or an omission of a material fact necessary to make the Indemnified Party’s misstatement not materially misleading in connection 
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with the application for indemnification, or (ii) a prohibition of such indemnification under applicable law.
(d)In the event that an Indemnified Party, pursuant to this Section 10, seeks a judicial adjudication of his or her rights under, or to recover damages for breach of, this Agreement, or to recover under any directors’ and officers’ liability insurance policies maintained by the Company, the Company shall pay on his or her behalf, in advance, any and all expenses (of the types described in the definition of Expenses in Section 1 of this Agreement) actually and reasonably incurred by him or her in such judicial adjudication, regardless of whether the Indemnified Party ultimately is determined to be entitled to such indemnification, advancement of expenses or insurance recovery.
(e)The Company shall be precluded from asserting in any judicial Proceeding commenced pursuant to this Section 10 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.  It is the intent of the Company that, to the fullest extent permitted by law, the Indemnified Party not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of the Indemnified Party’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnified Party hereunder.  The Company shall indemnify an Indemnified Party against any and all Expenses and, if requested by the Indemnified Party, shall (within ten (10) days after receipt by the Company of a written request therefore) advance, to the extent not prohibited by law, such expenses to the Indemnified Party, which are incurred by the Indemnified Party in connection with any action brought by the Indemnified Party for indemnification or advance of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, if, in the case of indemnification, the Indemnified Party is wholly successful on the underlying claims; if an Indemnified Party is not wholly successful on the underlying claims, then such indemnification shall be only to the extent the Indemnified Party is successful on such underlying claims or otherwise as permitted by law, whichever is greater.
(f)Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.
11.     Subrogation. In the event the Company is obligated to make a payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery under any valid and collectible insurance policy of D&O Insurance or another indemnity agreement covering the  Indemnified Party, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.       
12.     Survival of Rights.             
(a)     All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an Agent of the Company and shall continue thereafter so long as Indemnitee shall be subject to any possible claim or threatened, pending or completed Proceeding, whether civil, criminal, arbitrational, administrative or investigative, by reason of the fact that Indemnitee was serving in the capacity referred to herein.            
(b)     The Company shall require any successor to the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, expressly to assume and agree to perform this Agreement in 
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the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.       
13.     Interpretation of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to the Indemnitee to the fullest extent permitted by law including those circumstances in which indemnification would otherwise be discretionary.  The headings of the Sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction of this Agreement.
   
14.     Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and enforceability of the remaining provisions of the Agreement (including without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable and to give effect to Section 13 of this Agreement.  
15.     Savings Clause. If this Agreement or any portion of it is invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify an Indemnified Party as to expenses, judgments, fines, penalties or ERISA excise taxes with respect to any Proceeding to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated or by any other applicable law.       
16.     Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement (whether or not similar) nor shall such waiver constitute a continuing waiver.       
17.    Reliance; Integration; Bar Orders.
(a)    The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby in order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as an officer or director of the Company.
(b)    This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter of this Agreement.
(c)    The Company shall not seek from a court, or agree to, a “bar order” which would have the effect of prohibiting or limiting the Indemnitee’s rights to receive advancement of expenses under this Agreement.
18.     Notice. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and receipted for by the party addressee or (ii) if mailed by prepaid certified mail or prepaid overnight courier or (iii) if transmitted by facsimile or electronic mail transmission (including 
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PDF).  Any such notice or communication shall be deemed to have been given on (i) the day such notice or communication is personally delivered, (ii) three (3) days after such notice or communication is mailed by prepaid certified or registered mail, (iii) one (1) working day after such notice or communication is sent by overnight courier, or (iv) the day such notice or communication is faxed or sent electronically, provided that the sender has received a confirmation of such fax or electronic transmission. Addresses for notice to either party are as shown on the signature page of this Agreement.  A party may, for purposes of this Agreement, change his, her or its address, fax number, email address or the person to whom a notice or other communication is marked to the attention of, by giving notice of such change to the other party pursuant to this Section 18. 
19.    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same the same instrument.  Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 

20.     Governing Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.  The Company and the Indemnified Parties hereby irrevocably and unconditionally (i) agree that, except as provided in Section 10(a) of this Agreement (regarding arbitration), any Proceeding arising out of or in connection with this Agreement shall be brought only in the Court of Chancery of the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any Proceeding arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably [name] [address] as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such Proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such Proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such Proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

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The parties hereto have entered into this Indemnity Agreement effective as of the date first above written.                                        
THE COMPANY:                                        IMMERSION CORPORATION                                         

By: _________________________
Its: President and Chief Executive Officer                                        Address: 2999 N.E. 191st Street, Suite 610                                                Aventura, FL  33180 
Email:  ___________________________
Facsimile:  ________________________                                         

INDEMNITEE: 

[Signature]

[Print Name]

Address:

____________________________________

Email:  ___________________________
Facsimile:  ________________________  
       

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