Document:

Exhibit

PERFORMANCE SHARE AWARD AGREEMENT 

THIS AWARD AGREEMENT is made and entered into as of _________________ (the “Date of Grant”), by and between Pinnacle West Capital Corporation (the “Company”), and _________________ (“Employee”).
BACKGROUND
		
	A.
	The Board of Directors of the Company (the “Board of Directors”) has adopted, and the Company’s shareholders have approved, the Pinnacle West Capital Corporation 2012 Long-Term Incentive Plan (the “Plan”), pursuant to which Performance Share Awards and Dividend Equivalent Awards may be granted to employees of the Company and its subsidiaries.  

		
	B.
	The Company desires to grant to Employee Performance Shares and Dividend Equivalents under the terms of the Plan.  

		
	C.
	Pursuant to the Plan, the Company and Employee agree as follows:

AGREEMENT
		
	1.
	Grant of Award.  Pursuant to action of the Committee, which was taken on the Date of Grant, the Company grants to Employee ____________ (____) Performance Shares and related Dividend Equivalents.  The Performance Shares granted under this Section 1 are referred to in this Award Agreement as the “Base Grant.”

		
	2.
	Award Subject to Plan.  This Performance Share Award and the related Dividend Equivalent Award are granted under and are expressly subject to all of the terms and provisions of the Plan, which terms are incorporated herein by reference, and this Award Agreement.  In the event of any conflict between the terms and conditions of this Award Agreement and the Plan, the provisions of the Plan shall control.  

		
	3.
	Performance Period.  The Performance Period for this Award begins January 1, _____, and ends December 31, _____.

		
	4.
	Payment and Vesting.

		
	(a)
	Performance Shares Payable In Stock.  As soon as practicable in the fiscal year immediately following the end of the Performance Period, the Company will determine (i) the Company’s Total Shareholder Return (as defined herein) as compared to the Total Shareholder Return of the companies in the S&P 1500 Super Composite Electric Utility Index (the “Growth Index”) over the Performance Period and (ii) the Company’s Average Performance with respect to the Performance Metrics (as defined herein).  The Company then will deliver to Employee one (1) share of the Company’s Stock for each then-outstanding Performance Share under this Award Agreement, subject to adjustment pursuant to Section 5 below.  The Company anticipates that the Stock payout, if any, related to the Company’s Total Shareholder Return will be made by _________.  The Company anticipates that the Stock payout, if any, related to the Performance Metrics will be made by __________ and in no event will such Stock payout be made later than ___________.  

		
	(b)
	Normal or Early Retirement, Death or Disability; Late Career Recipient.  

(i) Provided that Employee either qualifies for “Early Retirement” or “Normal Retirement” under the Pinnacle West Capital Corporation Retirement Plan (the “Retirement Plan”), or  is a Late Career Recipient (as defined below), in the case of Employee’s death or Disability, 

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Employee shall be deemed to have been employed by the Company through the end of the Performance Period and Employee (or his or her estate) will receive the Stock, if any, to which Employee is entitled at the time specified in Section 4(a). 
(ii) In the case of Employee’s Termination of Employment during the Performance Period which constitutes an Early Retirement or a Normal Retirement under the Retirement Plan, Employee shall be deemed to have been employed by the Company through the end of the Performance Period and Employee (or his or her estate) will receive the Stock, if any, to which Employee is entitled at the time specified in Section 4(a). 
(iii) If, at the time of Employee’s death, Disability or retirement Employee has reached sixty (60) years of age and has been credited with at least five (5) Years of Service, as defined under the Retirement Plan, and does not otherwise meet the criteria for Early Retirement or Normal Retirement under the Retirement Plan, Employee shall be treated for purposes of this Agreement as a “Late Career Recipient”.  Upon a Late Career Recipient’s retirement during the Performance Period, Employee will receive a straight prorated payout of the number of Performance Shares calculated in accordance with Section 5 based on the number of days Employee was employed during the Performance Period.  Upon a Late Career Recipient’s retirement following the end of the Performance Period, Employee will receive a payout of the number of Performance Shares calculated in accordance with Section 5.  No fractional Stock shall be issued.  If the Stock payout results in a fractional share of one-half or greater, such fraction will be increased to provide for the issuance of a full share of Stock.  Employee will receive the Stock, if any, to which Employee is entitled at the time specified in Section 4(a). 
		
	(c)
	Termination Without Cause.  In the event Employee’s employment is terminated by the Company without cause, the Chief Executive Officer (“CEO”) of the Company may determine in his discretion if, to what extent, and when any unvested portion of the Performance Shares granted under this Agreement should vest; provided, however, that (i) any vesting of unvested Performance Shares granted under this Agreement pursuant to this Section 4(c) shall be approved by the Committee, and (ii) nothing herein shall obligate the CEO to exercise his discretion to cause any unvested Performance Shares to vest.

		
	(d)
	Termination For Cause.  Notwithstanding any other provision in this Section 4, in the event Employee is terminated for Cause, then regardless of Employee’s retirement, Early Retirement, Normal Retirement, death or Disability, Employee shall forfeit the right to receive any Stock hereunder that Employee would otherwise be entitled to receive following his or her date of termination.  For purposes only of this Section 4(d), “Cause” means (A) embezzlement, theft, fraud, deceit and/or dishonesty by the Employee involving the property, business or affairs of the Company or any of its subsidiaries, or (B) an act of moral turpitude which in the sole judgment of the CEO reflects adversely on the business or reputation of the Company or any of its subsidiaries or negatively affects any of the Company’s or any of its subsidiaries’ employees or customers.

		
	(e)
	Disability.  “Disability” has the meaning set forth for such term in the Retirement Plan.   

		
	(f)
	Dividend Equivalents.  In satisfaction of the Dividend Equivalents Award made pursuant to Section 1, at the time of the Company’s delivery of Stock to Employee pursuant to this Section 4, the Company also will deliver to Employee fully transferrable shares of Stock equal in value to the amount of dividends, if any, that Employee would have received if Employee had directly owned the Stock to which the Performance Shares relate from the Date of Grant to the date of the Stock payout, plus interest on such amount at the rate of 5 percent compounded quarterly, as determined pursuant to the Plan.  The number of shares of Stock distributed to Employee will be determined by dividing the amount of the Dividend Equivalents and interest by the Fair Market Value of one share of Stock as of the applicable date of the Stock payout.  No fractional Stock shall be issued.  If the Stock payout results in 

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a fractional share of one-half or greater, such fraction will be increased to provide for the issuance of a full share of Stock.
		
	(g)
	Impact on Retirement Plans.  The value of the shares of Stock distributed upon payment for the Performance Shares and Dividend Equivalents will be disregarded for purposes of calculating the amount of Employee’s benefit under any Company retirement plans.

		
	5.
	Performance Criteria and Adjustments.  Fifty percent (50%) of the Performance Shares awarded under this Award Agreement will be determined pursuant to Section 5(a) and fifty percent (50%) of the Performance Shares awarded under this Award Agreement will be determined pursuant to Section 5(b).  In no event will Employee be entitled to receive a number of Performance Shares pursuant to this Award Agreement greater than 2.0 times the Base Grant.

		
	(a)
	Adjustment of Base Grant for Total Shareholder Return.  Fifty percent (50%) of the Base Grant will increase or decrease based upon the Company’s “Total Shareholder Return” as compared to the Total Shareholder Return of the companies in the Growth Index during the Performance Period, as follows:

	
		
	If the Company’s Total Shareholder Return Over The Performance Period As Compared to the Total Shareholder Return of the Companies in the Growth Index is:

	The Number of Performance Shares will be:

	90th Percentile or greater
	1.0 X Base Grant

	75th Percentile
	.75 X Base Grant

	50th Percentile
	0.5 X Base Grant

	25th Percentile
	0.25 X Base Grant

	Less than 25th Percentile
	None

If intermediate percentiles are achieved, the number of Performance Shares awarded will be prorated (partial shares will be rounded down to the nearest whole share when applicable).  For example, if the Company’s Total Shareholder Return during the Performance Period places the Company’s performance in the 60th percentile, then the number of Performance Shares would be increased to 0.60 (0.5 X 60/50) multiplied by the Base Grant.  In no event will Employee be entitled to receive a number of Performance Shares pursuant to this Subsection 5(a) greater than 1.0 times the Base Grant.  
		
	(b)
	Adjustment of Base Grant for Performance Metrics.  Fifty percent (50%) of the Base Grant will increase or decrease based upon the Company’s “Average Performance” with respect to the “Performance Metrics,” as follows:

	
		
	If the Company’s Average Performance is:
	The Number of Performance Shares will be:

	90th Percentile or greater
	1.0 X Base Grant

	75th Percentile
	.75 X Base Grant

	50th Percentile
	0.5 X Base Grant

	25th Percentile
	0.25 X Base Grant

	Less than 25th Percentile
	None

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If intermediate percentiles are achieved, the number of Performance Shares awarded pursuant to this Subsection 5(b) will be prorated (partial shares will be rounded down to the nearest whole share when applicable).  For example, if the Company’s Average Performance during the Performance Period places the Company’s performance in the 60th percentile, then the number of Performance Shares would be increased to .60 (0.5 X 60/50) multiplied by the Base Grant.  In no event will Employee be entitled to receive a number of Performance Shares pursuant to this Subsection (b) greater than 1.0 times the Base Grant.
		
	6.
	Definitions.

		
	(a)
	Performance Metrics.  The “Performance Metrics” for the Performance Period are: (i) the System Average Interruption Frequency Index (Major Events Excluded) (“SAIFI”); (ii) Arizona Public Service Company’s customer to employee improvement ratio; (iii) the OSHA rate (All Incident Injury Rate); (iv) nuclear capacity factor; and (v) coal capacity factor.  

		
	(1)
	With respect to the Performance Metric described in clause (i) of this Subsection 6(a), the Edison Electric Institute (“EEI”) will provide data on an annual basis regarding the SAIFI result of the participating companies; the Company will calculate its SAIFI result for the year in question and determine its percentile ranking based on the information provided by EEI.

		
	(2)
	With respect to the Performance Metric described in clause (ii) of this Subsection 6(a), S&P Global Market Intelligence (“Market Intelligence”), an independent third party data system, will provide data on an annual basis regarding the customer and employee counts; the Company will use its customer and employee counts for the year in question and determine its percentile ranking based on the information provided by Market Intelligence.  Only those companies whose customers and employees were included in the data provided by Market Intelligence in each of the years of the Performance Period will be considered.

		
	(3)
	With respect to the Performance Metric described in clause (iii) of this Subsection 6(a), EEI will provide data on an annual basis regarding the OSHA rate of the participating companies; the Company will calculate its OSHA rate for the year in question and determine its percentile ranking based on the information provided by EEI.

		
	(4)
	With respect to the Performance Metric described in clause (iv) of this Subsection 6(a), Market Intelligence will provide data on an annual basis regarding the nuclear capacity factors of the participating nuclear plants; the Company will calculate its nuclear capacity factor for the year in question and determine its percentile ranking based on the information provided by Market Intelligence.  Only those plants that were included in the data provided by Market Intelligence in each of the years of the Performance Period will be considered.

		
	(5)
	With respect to the Performance Metric described in clause (v) of this Subsection 6(a), Market Intelligence will provide data on an annual basis regarding the coal capacity factors of the participating coal plants; the Company will calculate its coal capacity factor for the year in question and determine its percentile ranking based on the information provided by Market Intelligence.  Only those plants that were included in the data provided by Market Intelligence in each of the years of the Performance Period will be considered.

		
	(6)
	The Company’s percentile ranking during the Performance Period for each Performance Metric will be the average of the Company’s percentile ranking for each Performance Metric during each of the three years of the Performance Period (each, 

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an “Average Performance Metric”); provided, however, that if the third year of a Performance Metric is not calculable by December 15 of the following year, the Performance Metric shall consist of the three most recent years for which such Performance Metric is calculable.  The Company’s “Average Performance,” for purposes of determining any Base Grant adjustments pursuant to Subsection 5(b) above will be the average of the Average Performance Metrics.  If only quartile, rather than percentile, rankings are available for a particular Performance Metric, the Average Performance Metric for any such Performance Metric shall be expressed as a percentile.  For example, if the Performance Metric was in the top quartile for two Performance Periods and in the lowest quartile in the other Performance Period, the average of these quartiles would be 3 (the average of 4, 4, and 1)  and the Average Performance Metric would be the 75th percentile (3 /4). The calculations in this Subsection 6(a)(6) will be verified by the Company’s internal auditors.
		
	(7)
	If either EEI or Market Intelligence discontinues providing the data specified above, the Committee shall select a data source that, in the Committee’s judgment, will provide data most comparable to the data provided by EEI or Market Intelligence, as the case may be.  

		
	(b)
	Total Shareholder Return.  “Total Shareholder Return” for the Performance Period is the measure of a company’s stock price appreciation plus any dividends paid during the Performance Period.  Only those companies that were included in the Growth Index in each of the years of the Performance Period will be considered.  Total Shareholder Return for the Company and the companies in the Growth Index will be determined using the Daily Comparative Return as calculated by Bloomberg (or other independent third party data system).  If the Growth Index is discontinued, the Committee shall select the most comparable index then in use for the sector comparison.  In addition, if the sector comparison is no longer representative of the Company’s industry or business, the Committee shall replace the Growth Index with the most representative index then in use.  Once the Total Shareholder Returns of the Company and all relevant companies in the Growth Index have been determined, the member companies will be ranked from greatest to least.  Percentiles will be calculated (interpolated from 0% to 100%) based on a company’s relative ranking.  Percentiles will be carried out to one (1) decimal place.  If the Company is not in the Growth Index, then its percentile will be interpolated between the companies listed in the relative ranking.  These calculations will be verified by the Company’s internal auditors.

		
	7.
	Termination of Award.  This Award Agreement will terminate and be of no further force or effect on the date that Employee is no longer employed by the Company or any of its subsidiaries, whether due to voluntary or involuntary termination, death, retirement, Disability, or otherwise, except as specifically set forth in Section 4 above or in Article 15 of the Plan.  Employee will, however, be entitled to receive any Stock and Dividend Equivalents payable under Section 4 of this Award Agreement if Employee’s employment terminates after the end of the Performance Period but before Employee’s receipt of such Stock and Dividend Equivalents.

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	8.
	Section 409A Compliance.  If the Company concludes, in the exercise of its discretion, that this Award is subject to Section 409A of the Code, the Plan and this Award Agreement shall be administered in compliance with Section 409A and each provision of this Award Agreement and the Plan shall be interpreted to comply with Section 409A.  If the Company concludes, in the exercise of its discretion, that this Award is not subject to Section 409A, but, instead, is eligible for the short-term deferral exception to the requirements of Section 409A, the Plan and this Award Agreement shall be administered to comply with the requirements of the short-term deferral exception to the requirements of Section 409A and each provision of this Award Agreement and the Plan shall be interpreted to comply with the requirements of such exception.  In either event, Employee does not have any right to make any election regarding the time or form of any payment due under this Award Agreement.

		
	9.
	Tax Withholding.  Employee is responsible for any and all federal, state, and local income, payroll or other tax obligations or withholdings (collectively, the “Taxes”) arising out of this Award.  Employee shall pay any and all Taxes due in connection with a payout of Stock hereunder by having the Company withhold shares of Stock from such payout.

		
	10.
	Continued Employment.  Nothing in the Plan or this Award Agreement shall be interpreted to interfere with or limit in any way the right of the Company or its subsidiaries to terminate Employee’s employment or services at any time.  In addition, nothing in the Plan or this Award Agreement shall be interpreted to confer upon Employee the right to continue in the employ or service of the Company or its subsidiaries.

		
	11.
	Confidentiality.  During Employee’s employment and after termination thereof, for any reason, Employee agrees that Employee will not, directly or indirectly, in one or a series of transactions, disclose to any person, or use or otherwise exploit for Employee’s own benefit or for the benefit of anyone other than the Company or any of its Affiliates any Confidential Information (as hereinafter defined), whether prepared by Employee or not; provided, however, that during the term of Employee’s employment, any Confidential Information may be disclosed (i) to officers, representatives, employees and agents of the Company and its Affiliates who need to know such Confidential Information in order to perform the services or conduct the operations required or expected of them in the business, and (ii) in good faith by Employee in connection with the performance of Employee’s job duties to persons who are authorized to receive such information by the Company or its Affiliates.  Employee shall have no obligation to keep confidential any Confidential Information, if and to the extent disclosure of any such information is specifically required by law; provided, however, that in the event disclosure is required by applicable law, Employee shall provide the Company with prompt notice of such requirement, prior to making any disclosure, so that it may seek an appropriate protective order.

Employee agrees that all Confidential Information of the Company and its Affiliates (whether now or hereafter existing) conceived, discovered or made by him during employment exclusively belongs to the Company or its Affiliates (and not to Employee). Employee will promptly disclose such Confidential Information to the Company and perform all actions reasonably requested by the Company to establish and confirm such exclusive ownership.  For purposes of this Section 11, the term “Confidential Information” shall mean and include any information disclosed to Employee any time during Employee’s employment with the Company or its Affiliates or thereafter which is not generally known to the public, including, but not limited to, information concerning the Company’s or its Affiliates’ assets and valuations, business plans, methods of operation, management, information systems, procedures, processes, practices, policies, plans, programs, personnel and/or reports or other information prepared by appraisers, consultants, advisors, bankers or attorneys.
		
	12.
	Restrictive Covenants.

		
	(a)
	Non-Competition.  Employee agrees that for a period of 12 months following any Termination of Employment voluntarily by Employee (other than due to Disability),  Employee shall not, without the prior written consent of the Company’s General Counsel, 

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participate, whether as a consultant, employee, contractor, partner, owner (ownership of less than 5% of the outstanding stock of a publicly traded company will not be considered ownership under this provision), co-owner, or otherwise, with any business, corporation, group, entity or individual that is or intends to be engaged in the business activity of supplying electricity in any area of Arizona for which the Company or its Affiliates is authorized to supply electricity. 
		
	(b)
	Employee Non-Solicitation.  Employee agrees that for a period of 12 months following Employee’s Termination of Employment for any reason, Employee will not encourage, induce, or otherwise solicit, or actively assist any other person or organization to encourage, induce or otherwise solicit, directly or indirectly, any employee of the Company or any of its Affiliates to terminate his or her employment with the Company or its Affiliates, or otherwise interfere with the advantageous business relationship of the Company and its Affiliates with their employees.

		
	(c)
	[No Pledging or Hedging. Employee agrees that during his or her term of employment, Employee will not pledge, margin, hypothecate, hedge, or otherwise grant an economic interest in any shares of Company stock received by Employee pursuant to this Award (net of shares sold or surrendered to meet tax withholding or exercise requirements). This restriction shall extend to the purchase or creation of any short sales, zero-cost collars, forward sales contracts, puts, calls, options or other derivative securities in respect of any shares of Company stock.]

		
	(d)
	Remedies.  If Employee fails to comply with Sections 11, 12(a), [or] 12(b), [or 12(c)] in a material respect, the Company may (i) cause any of Employee’s unvested Performance  Shares and related Dividend Equivalents to be cancelled and forfeited, (ii) refuse to deliver shares of Stock or cash in exchange for vested Performance Shares or Dividend Equivalents, and/or (iii) pursue any other rights and remedies the Company may have pursuant to this Award Agreement or the Plan at law or in equity including, specifically, injunctive relief.

		
	13.
	Cooperation with Government Agencies.  Employee shall have no obligation to keep confidential any Confidential Information, if and to the extent disclosure of any such information is specifically permitted by law, because Employee is providing information to government investigatory or enforcement agencies, such as the Nuclear Regulatory Commission, Department of Labor, Equal Employment Opportunity Commission (or its state equivalent), National Labor Relations Board, the Occupational Safety and Health Administration (or its state equivalent) or the Securities and Exchange Commission.  This Award Agreement also does not limit Employee’s ability to communicate with any government agency regarding matters within the agency’s jurisdiction or otherwise participate in any investigation or proceedings that may be conducted by such agency, including providing documents or other information without notice to the Company.  Nothing in this Award Agreement shall prevent Employee from the disclosure of Confidential Information or trade secrets that:  (i) is made: (a) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (b) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is permitted to be made, and is made, under seal.  In the event that Employee files a lawsuit alleging retaliation by Company for reporting a suspected violation of law, Employee may disclose Confidential Information or trade secrets related to the suspected violation of law or alleged retaliation to Employee’s attorney and use the Confidential Information or trade secrets in the court proceeding if Employee or Employee’s attorney:  (i) files any document containing Confidential Information or trade secrets, under seal if permitted; and (ii) does not disclose the Confidential Information or trade secrets, except pursuant to or in accordance with a court order.  The Company provides this notice in compliance with federal law, including  the Defend Trade Secrets Act of 2016.

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	14.
	Clawback.  The portion of this Award, if any, that is earned based on the Company’s Total Shareholder Return will be subject to potential forfeiture or recovery to the extent called for by the Company’s Clawback Policy.  The Clawback Policy may include such provisions as the Human Resources Committee of the Board of Directors determines to be necessary or appropriate either to comply with any applicable law or listing standard or in light of Company ethics or other policies and practices. Specific requirements of the Clawback Policy may be adopted and amended at such times as the Human Resources Committee of the Board of Directors determines in its discretion.  By accepting this Award, Employee consents and agrees to abide by such Clawback Policy.

		
	15.
	Non-Transferability.  Neither this Award nor any rights under this Award Agreement may be assigned, transferred, or in any manner encumbered except as provided in the Plan.

		
	16.
	Definitions:  Copy of Plan and Plan Prospectus.  To the extent not specifically defined in this Award Agreement, all capitalized terms used in this Award Agreement will have the same meanings ascribed to them in the Plan.  By signing this Award Agreement, Employee acknowledges receipt of a copy of the Plan and the related Plan prospectus.

		
	17.
	Amendment.  Except as provided below, any amendments to this Award Agreement must be made by a written agreement executed by the Company and Employee.  The Company may amend this Award Agreement unilaterally, without the consent of Employee, if the change (i) is required by law or regulation, (ii) does not adversely affect in any material way the rights of Employee, or (iii) is required to cause the benefits under the Plan to qualify for favorable tax treatment either for the Company or Employee or to comply with the provisions of Section 409A of the Code and applicable regulations or other interpretive authority.  Additional rules relating to amendments to the Plan or any Award Agreement to assure compliance with Section 409A of the Code are set forth in Section 17.15 of the Plan.

IN WITNESS WHEREOF, the Company has caused this Award Agreement to be executed, as of the Date of Grant, by an authorized representative of the Company and this Award Agreement has been executed by Employee.
PINNACLE WEST CAPITAL CORPORATION
By:  _______________________
Its:  _______________________
Date: ______________________

EMPLOYEE
By:________________________ 

Date: ______________________

8Exhibit 10.1

 

 

 

JERNIGAN CAPITAL, INC.

 

SECOND AMENDED AND RESTATED 2015 EQUITY
INCENTIVE PLAN

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	1.	PURPOSE	1
	 	 	 
	2.	DEFINITIONS	1
	 	 	 
	3.	ADMINISTRATION OF THE PLAN	7
	 	 	 
	 	3.1	Committee	7
	 	3.2	Terms of Awards	8
	 	3.3	Forfeiture; Recoupment	9
	 	3.4	No Repricing	10
	 	3.5	Deferral Arrangement	10
	 	3.6	No Liability	10
	 	3.7	Share Issuance/Book-Entry	10
	 	 	 	 
	4.	SHARES SUBJECT TO THE PLAN	10
	 	 	 	 
	 	4.1	Number of Shares Available for Awards	10
	 	4.2	Adjustments in Authorized Shares	11
	 	4.3	Share Usage	11
	 	 	 	 
	5.	EFFECTIVE DATE, DURATION AND AMENDMENTS	11
	 	 	 
	 	5.1	Effective Date	11
	 	5.2	Term	11
	 	5.3	Amendment and Termination of the Plan	12
	 	 	 	 
	6.	AWARD ELIGIBILITY AND LIMITATIONS	12
	 	 	 
	 	6.1	Service Providers and Other Persons	12
	 	6.2	Limitation on Shares Subject to Awards and Cash Awards	12
	 	6.3	Stand-Alone, Additional, Tandem and Substitute Awards	13
	 	 	 	 
	7.	AWARD AGREEMENT	13
	 	 	 
	8.	TERMS AND CONDITIONS OF OPTIONS	13
	 	 	 
	 	8.1	Option Price	13
	 	8.2	Vesting	13
	 	8.3	Term	14
	 	8.4	Termination of Service	14
	 	8.5	Limitations on Exercise of Option	14
	 	8.6	Method of Exercise	14
	 	8.7	Rights of Holders of Options	14
	 	8.8	Delivery of Share Certificates	15
	 	8.9	Transferability of Options	15
	 	8.10	Family Transfers	15

 

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	 	8.11	Limitations on Incentive Stock Options	15
	 	8.12	Notice of Disqualifying Disposition	15
	 	 	 	 
	9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS	16
	 	 	 
	 	9.1	Right to Payment and Grant Price	16
	 	9.2	Other Terms	16
	 	9.3	Term	16
	 	9.4	Transferability of SARS	16
	 	9.5	Family Transfers	17
	 	 	 	 
	10.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS	17
	 	 	 
	 	10.1	Grant of Restricted Stock or Stock Units	17
	 	10.2	Restrictions	17
	 	10.3	Restricted Stock Certificates	17
	 	10.4	Rights of Holders of Restricted Stock	18
	 	10.5	Rights of Holders of Stock Units	18
	 	10.6	Termination of Service	19
	 	10.7	Delivery of Shares	19
	 	 	 	 
	11.	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS	19
	 	 	 
	12.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK	20
	 	 	 
	 	12.1	General Rule	20
	 	12.2	Surrender of Shares	20
	 	12.3	Cashless Exercise	20
	 	12.4	Other Forms of Payment	20
	 	 	 	 
	13.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS	20
	 	 	 
	 	13.1	Dividend Equivalent Rights	20
	 	13.2	Termination of Service	21
	 	 	 	 
	14.	TERMS AND CONDITIONS OF PERFORMANCE AWARDS AND ANNUAL INCENTIVE AWARDS	21
	 	 	 
	 	14.1	Grant of Performance Awards and Annual Incentive Awards	21
	 	14.2	Value of Performance Awards and Annual Incentive Awards	21
	 	14.3	Earning of Performance Awards and Annual Incentive Awards	21
	 	14.4	Form and Timing of Payment of Performance Awards and Annual Incentive Awards	22
	 	14.5	Performance Conditions	22

 

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	 	14.6	Performance Awards or Annual Incentive Awards Granted to Designated Covered Employees	22
	 	14.7	Status of Awards Under Code Section 162(m)	25
	 	 	 	 
	15.	TERMS AND CONDITIONS OF LONG-TERM INCENTIVE UNITS	26
	 	 	 
	 	15.1	Vesting	26
	 	 	 	 
	16.	PARACHUTE LIMITATIONS	26
	 	 	 
	17.	REQUIREMENTS OF LAW	27
	 	 	 
	 	17.1	General	27
	 	17.2	Rule 16b-3	28
	 	 	 	 
	18.	EFFECT OF CHANGES IN CAPITALIZATION	28
	 	 	 
	 	18.1	Changes in Shares	28
	 	18.2	Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control	28
	 	18.3	Change in Control in which Awards are not Assumed	29
	 	18.4	Change in Control in which Awards are Assumed	30
	 	18.5	Adjustments	30
	 	18.6	No Limitations on Company	31
	 	 	 	 
	19.	GENERAL PROVISIONS	31
	 	 	 
	 	19.1	Disclaimer of Rights	31
	 	19.2	Nonexclusivity of the Plan	31
	 	19.3	Withholding Taxes	31
	 	19.4	Captions	32
	 	19.5	Other Provisions	32
	 	19.6	Number and Gender	32
	 	19.7	Severability	33
	 	19.8	Governing Law	33
	 	19.9	Code Section 409A	33

 

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JERNIGAN CAPITAL, INC.

2015 EQUITY INCENTIVE PLAN

(as amended and restated effective May 1,
2019)

 

Jernigan Capital, Inc., a Maryland
corporation (the “Company”), sets forth herein the terms of its 2015 Equity Incentive Plan (the “Plan”),
as follows:

 

		1.	PURPOSE

 

The Plan is intended to provide (a) incentive
to officers, investment professionals, employees, directors, consultants and other eligible persons to stimulate their efforts
towards the success of the Company and to operate and manage its business in a manner that will provide for the long term growth
and profitability of the Company; and (b) a means of obtaining, rewarding and retaining key personnel. To this end, the Plan
provides for the grant of stock options, stock appreciation rights, restricted stock, unrestricted stock, stock units (including
deferred stock units), dividend equivalent rights, long-term incentive units, performance awards, annual incentive cash awards
and other equity-based awards. Any of these awards may, but need not, be made as performance incentives to reward attainment of
annual or long-term performance goals in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified
stock options or incentive stock options, as provided herein.

 

		2.	DEFINITIONS

 

For purposes of interpreting the Plan and
related documents (including Award Agreements), the following definitions shall apply:

 

2.1         “Affiliate”
means, with respect to the Company, any company or other trade or business that controls, is controlled by or is under common control
with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including, without limitation, any
Subsidiary and, unless otherwise determined by the Committee, JCap Advisors, LLC. Notwithstanding anything to the contrary, for
purposes of granting Options or Stock Appreciation Rights, an entity may not be considered an Affiliate of the Company unless the
Company holds a “controlling interest” in such entity, where the term “controlling interest” has the same
meaning as provided in Treasury Regulation Section 1.414(c)-2(b)(2)(i), provided that the language “at least 50 percent”
is used instead of “at least 80 percent” and, provided further, that where granting of Options or Stock Appreciation
Rights is based upon a legitimate business criteria, the language “at least 20 percent” is used instead of “at
least 80 percent” each place it appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i).

 

2.2         “Annual
Incentive Award” means an Award, denominated in cash, made subject to attainment of performance goals (as described in
Section 14) over a Performance Period of up to one (1) year (which shall correspond to the Company’s fiscal
year, unless otherwise specified by the Committee).

 

2.3         “Applicable
Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate,
securities, tax and other laws, rules, regulations and government orders, and the rules of any applicable stock exchange or
national market system, of any jurisdiction applicable to Awards granted to residents therein.

 

2.4         “Award”
means a grant of an Option, Stock Appreciation Right, Restricted Stock, Unrestricted Stock, Stock Unit, Dividend Equivalent Right,
Performance Award, Annual Incentive Award, LTIP Unit, or Other Equity-Based Award under the Plan.

 

2.5         “Award
Agreement” means the agreement between the Company and a Grantee that evidences and sets out the terms and conditions
of an Award.

 

2.6         “Benefit
Arrangement” shall have the meaning set forth in Section 16.

 

2.7         “Board”
means the Board of Directors of the Company.

 

    	 	4	 

     

    

 

2.8         “Cause”
means, unless defined otherwise in a Service Provider’s Award Agreement or employment, consulting or services agreement
with the Company or an Affiliate (in which case such definition shall control), as determined by the Committee, the Service Provider’s
(i) continued failure to substantially perform duties, or gross negligence or willful misconduct in connection with the performance
of duties; (ii) conviction or plea of guilty or nolo contendere of a felony; (iii) conviction of any other criminal offense
involving an act of dishonesty intended to result in substantial personal enrichment of such Grantee at the expense of the Company
or an Affiliate; or (iv) material breach of any Company policy or term of any employment, consulting or other services, confidentiality,
intellectual property or non-competition agreements, if any, between the Service Provider and the Company or an Affiliate.

 

2.9         “Change
in Control” means:

 

(i)         Any
 “person” as such term is used in Section 13(d) and 14(d) of the Exchange Act (other than the Company,
any trustee or other fiduciary holding securities under any employee benefit plan of the Company or any corporation owned, directly
or indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company),
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding voting
securities;

 

(ii)        During
any period of twelve consecutive months, individuals who at the beginning of such period constitute the Board, and any new director
(other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described
in clause (i), (iii) or (iv) hereof) whose election by the Board or nomination for election by the Company’s stockholders
was approved by a vote of at least a majority 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 at least
a majority thereof, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result
of an actual or threatened election contest with respect to the election or removal of directors or actual threatened solicitation
of proxies or consents by or on behalf of a person other than the Board;

 

(iii)       The
consummation of a merger or consolidation of the Company with any other entity or the issuance of voting securities in connection
with a merger or consolidation of the Company (or any direct or indirect subsidiary thereof) pursuant to applicable exchange requirements,
other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
or parent entity) at least 50.1% of the combined voting power of the voting securities of the Company or such surviving or parent
entity outstanding immediately after such merger or consolidation or (B) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no “person” (as defined above) is or becomes the
beneficial owner, directly or indirectly, of securities of the Company representing 50% or more of either of the then outstanding
shares of Common Stock or the combined voting power of the Company’s then outstanding voting securities; or

 

(iv)       The
consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction
or series of transactions within a period of twelve months ending on the date of the last sale or disposition having a similar
effect).

 

Notwithstanding the foregoing, if an Award
constitutes deferred compensation within the meaning of Code Section 409A, no payment, settlement or vesting (if vesting would
be deemed a distribution with respect to the Award under Section 409A) shall occur with respect to such Award on account of
the Change in Control transaction or event unless the transaction or event also constitutes a change in the ownership or effective
control of the Company or a change in the ownership of a substantial portion of the Company’s assets, as those terms are
used in Code Section 409A(a)(2)(c)(v).

 

2.10       “Code”
means the Internal Revenue Code of 1986, as now in effect or as hereafter amended.

 

2.11       “Committee”
means the Committee constituted under Section 3 to administer the Plan.

 

    	 	5	 

     

    

 

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

  

2.13       “Company”
means Jernigan Capital, Inc., a Maryland corporation.

 

2.14       “Covered
Employee” means a Grantee who is a covered employee within the meaning of Code Section 162(m)(3).

 

2.15       “Determination
Date” means the Grant Date or such other date as of which the Fair Market Value of a Share is required to be established
for purposes of the Plan.

 

2.16       “Disability”
means, unless defined otherwise in a Service Provider’s Award Agreement or employment, consulting or services agreement with
the Company or an Affiliate (in which case such definition shall control), the Grantee is unable to perform each of the essential
duties of such Grantee’s position by reason of a medically determinable physical or mental impairment which is potentially
permanent in character or which can be expected to last for a continuous period of not less than 12 months; provided, however,
that, with respect to rules regarding expiration of an Incentive Stock Option following termination of the Grantee’s
Service, Disability shall mean the Grantee is unable to engage in any substantial gainful activity by reason of a medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous
period of not less than 12 months.

 

2.17       “Dividend
Equivalent Right” means a right, granted to a Grantee under Section 13, to receive cash, Shares, other Awards
or other property equal in value to dividends paid with respect to a specified number of Shares, or other periodic payments.

 

2.18       “Effective
Date” means March 13, 2015, the date the Plan was first approved by the stockholders of the Company.

 

2.19       “Exchange
Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended.

 

2.20       “Fair
Market Value” means the fair market value of a Share for purposes of the Plan, which shall be determined as of any Determination
Date as follows:

 

(i)            If
on such Determination Date the Shares are listed on a Stock Exchange, or are publicly traded on another established securities
market (a “Securities Market”), the Fair Market Value of a Share shall be the closing price of a Share as reported
on such Stock Exchange or such Securities Market (provided that, if there is more than one such Stock Exchange or Securities Market,
the Committee shall designate the appropriate Stock Exchange or Securities Market for purposes of the Fair Market Value determination).
If there is no such reported closing price on such Determination Date, the Fair Market Value of a Share shall be the closing price
of a Share on the most recent date prior to such Determination Date on which any sale of Shares shall have been reported on such
Stock Exchange or such Securities Market.

 

(ii)           If
on such Determination Date the Shares are not listed on a Stock Exchange or publicly traded on a Securities Market, the Fair Market
Value of a Share shall be the value of a Share as determined by the Committee in good faith; provided, however, that if such Fair
Market Value is used to determine an Option Price or a SAR Exercise Price, the Committee shall use a reasonable application of
a reasonable valuation method, in a manner consistent with Code Section 409A.

 

2.21       “Family
Member” means a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including
adoptive relationships, of the Grantee, any person sharing the Grantee’s household (other than a tenant or employee), a trust
in which any one or more of these persons have more than fifty percent (50%) of the beneficial interest, a foundation in which
any one or more of these persons (or the Grantee) control the management of assets, and any other entity in which one or more of
these persons (or the Grantee) own more than fifty percent (50%) of the voting interests.

 

    	 	6	 

     

    

 

2.22       “Good
Reason” means, unless defined otherwise in a Service Provider’s Award Agreement or employment, consulting or services
agreement with the Company or an Affiliate (in which case such definition shall control), as determined by the Committee (i) the
assignment to the Service Provider of substantial duties or responsibilities inconsistent with the Service Provider’s position
at the Company, or any other action by the Company which results in a substantial diminution of the Service Provider’s duties,
authorities or responsibilities (other than temporarily while physically or mentally incapacitated or as required by applicable
law); (ii) a material reduction in the Service Provider’s aggregate base salary and other compensation (including annual
target bonus opportunity and retirement plans, welfare plans and fringe benefits) taken as a whole, excluding any reductions caused
by the failure to achieve performance targets (as the same may be in effect from time to time); (iii) the relocation of the
Service Provider’s principal place of employment to a location more than 30 miles from the Service Provider’s principal
place of employment or the Company’s requiring the Service Provider to be based anywhere other than such principal place
of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially
consistent with the Service Provider’s business travel obligations as of immediately prior to the Change in Control or (iv) the
Company’s material breach of the terms of any employment agreement with the Service Provider; provided, however, that the
Service Provider must provide the Company with a written notice detailing the specific circumstances alleged to constitute “Good
Reason” within ninety (90) days after the first occurrence of such circumstances that the Service Provider knows or reasonably
should have known to constitute “Good Reason,” such condition must not have been remedied by the Company within thirty
(30) days of such written notice, and the termination must occur within ninety (30) days after such failure to remedy the event.

  

2.23       “Grant
Date” means, as determined by the Committee, the latest to occur of (i) the date as of which the Company completes
the action constituting the Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award
under Section 6, or (iii) such other date as may be specified by the Committee.

 

2.24       “Grantee”
means a natural person who receives or holds an Award under the Plan.

 

2.25       “Incentive
Stock Option” means an “incentive stock option” within the meaning of Code Section 422, or the corresponding
provision of any subsequently enacted tax statute, as amended from time to time.

 

2.26       “Long-Term
Incentive Unit” or “LTIP Unit” means an Award under Section 15 of an interest in the operating
partnership affiliated with the Company.

 

2.27       “Non-Qualified
Stock Option” means an Option that is not an Incentive Stock Option.

 

2.28       “Option”
means an option to purchase one or more Shares pursuant to the Plan.

 

2.29       “Option
Price” means the exercise price for each Share subject to an Option.

 

2.30       “Other
Agreement” shall have the meaning set forth in Section 16.

 

2.31       “Other
Equity-Based Award” means a right or other interest that may be denominated or payable in, valued in whole or in part
by reference to, or otherwise based on, or related to, Shares, other than an Option, Stock Appreciation Right, Restricted Stock,
Unrestricted Stock, Stock Unit, Dividend Equivalent Right, Performance Award or Annual Incentive Award.

 

    	 	7	 

     

    

 

2.32       “Outside
Director” means a member of the Board who is not an officer or employee of the Company.

  

2.33       “Performance
Award” means an Award made subject to the attainment of performance goals (as described in Section 14) over
a Performance Period of up to ten (10) years.

 

2.34       “Performance-Based
Compensation” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for
 “qualified performance-based compensation” paid to Covered Employees. Notwithstanding the foregoing, nothing in the
Plan shall be construed to mean that an Award which does not satisfy the requirements for “qualified performance-based compensation”
under Code Section 162(m) does not constitute performance-based compensation for other purposes, including for purposes
of Code Section 409A.

 

2.35       “Performance
Measures” means measures as described in Section 14 on which the performance goals are based and which have
been approved by the Company’s stockholders pursuant to the Plan in order to qualify Awards as Performance-Based Compensation.

 

2.36       “Performance
Period” means the period of time during which the performance goals must be met in order to determine the degree of payout
and/or vesting with respect to an Award.

 

2.37       “Plan”
means this Jernigan Capital, Inc. 2015 Equity Incentive Plan, as amended from time to time.

 

2.38       “Purchase
Price” means the purchase price for each Share pursuant to a grant of Restricted Stock, Stock Units or Unrestricted Stock.

 

2.39       “Restatement
Effective Date” means May 1, 2019, the date the most recent amendment and restatement of the Plan was approved by
the stockholders of the Company.

 

2.40       “Restricted
Stock” means Shares awarded to a Grantee pursuant to Section 10.

 

2.41       “SAR
Exercise Price” means the per share exercise price of a SAR granted to a Grantee under Section 9.

 

2.42       “Securities
Act” means the Securities Act of 1933, as now in effect or as hereafter amended.

 

2.43       “Service”
means service as a Service Provider to the Company or any Affiliate. Unless otherwise stated in the applicable Award Agreement,
a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues
to be a Service Provider to the Company or any Affiliate. Whether a termination of Service shall have occurred for purposes of
the Plan shall be determined by the Committee in its sole and absolute discretion, which determination shall be final, binding
and conclusive. Notwithstanding any other provision to the contrary, for any individual providing services solely as a director,
only service to the Company or any of its Subsidiaries constitutes Service. Except as may otherwise be required to comply with
Code Section 409A, if the Service Provider’s employment or other service relationship is with an Affiliate and that
entity ceases to be an Affiliate, a termination of Service shall be deemed to have occurred when the entity ceases to be an Affiliate
unless the Service Provider transfers his or her employment or other service relationship to the Company or its remaining Affiliates.

 

2.44       “Service
Provider” means an employee, officer, director, or a consultant or adviser (who is a natural person) providing services
to the Company or any of its Affiliates.

 

    	 	8	 

     

    

 

2.45       “Share”
means a share of Common Stock.

 

2.46       “Stock
Appreciation Right” or “SAR” means a right granted to a Grantee under Section 9.

  

2.47       “Stock
Units” means a bookkeeping entry representing the equivalent of one Share awarded to a Grantee pursuant to Section 10.

 

2.48       “Stock
Exchange” means the New York Stock Exchange or another established national or regional stock exchange.

 

2.49       “Subsidiary”
means any “subsidiary corporation” of the Company within the meaning of Code Section 424(f).

 

2.50       “Substitute
Award” means an Award granted upon assumption of, or in substitution for, outstanding awards previously granted by a
company or other entity acquired by the Company or an Affiliate or with which the Company or an Affiliate combines.

 

2.51       “Ten
Percent Stockholder” means an individual who owns more than ten percent (10%) of the total combined voting power of all
classes of outstanding voting securities of the Company, its parent or any of its Subsidiaries. In determining Share ownership,
the attribution rules of Code Section 424(d) shall be applied.

 

2.52       “Unrestricted
Stock” shall have the meaning set forth in Section 11.

 

Unless the context otherwise requires, all
references in the Plan to “including” shall mean “including without limitation.”

 

References in the Plan to any Code Section shall
be deemed to include, as applicable, regulations promulgated under such Code Section.

 

		3.	ADMINISTRATION OF THE PLAN

 

3.1         Committee.

 

The Plan shall be administered by the Committee,
constituted as follows:

 

(i)            The
Committee will consist of the Compensation Committee of the Board or, in the absence of a Compensation Committee, the Board or
such committee as the Board shall select. Once appointed, the Committee will serve in its designated capacity until otherwise directed
by the Board. The Board may increase the size of the Committee and appoint additional members, remove members (with or without
cause) and substitute new members, fill vacancies (however caused), or remove all members of the Committee and thereafter directly
administer the Plan. Notwithstanding the foregoing, unless the Board determines otherwise, at any time that the Company Shares
are registered pursuant to Section 12 of the Exchange Act, the Plan will be administered only by a committee consisting of
no fewer than two directors of the Company, each of whom is (A) a “non-employee director” within the meaning of
Rule 16b-3 (or any successor rule) of the Exchange Act and (B) an “independent director” for purpose of the
rules and regulations of the Stock Exchange or quotation system on which the Shares are principally traded; provided, however,
the failure of the Committee to be composed solely of individuals who are “non-employee directors” and “independent
directors” shall not render ineffective or void any Awards made by, or other actions taken by, such Committee.

 

(ii)            The
Plan may be administered by different bodies with respect to different Grantees.

 

    	 	9	 

     

    

 

(iii)           Decisions
of the Committee shall be final, conclusive and binding on all persons or entities, including the Company, any Grantee, any stockholder
and any employee or any Affiliate. A majority of the members of the Committee may determine its actions and fix the time and place
of its meetings.

 

(iv)           The
Committee may delegate to a committee of one or more Directors of the Company or, to the extent permitted by Applicable Law, to
one or more officers or a committee of officers, the authority to grant Awards to employees and officers of the Company and its
Affiliates who are not directors or “officers,” as such term is defined by Rule 16a-1(f) of the Exchange
Act.

  

3.2         Terms
of Awards.

 

Subject to the other terms and conditions
of the Plan, the Committee shall have full and final authority to:

 

(i)             designate
Grantees;

 

(ii)            determine
the type or types of Awards to be made to a Grantee;

 

(iii)           determine
the number of Shares to be subject to an Award;

 

(iv)           establish
the terms and conditions of each Award (including, but not limited to, the exercise price of any Option, the nature and duration
of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of
an Award or the Shares subject thereto, the treatment of an Award in the event of a Change in Control, and any terms or conditions
that may be necessary to qualify Options as Incentive Stock Options);

 

(v)            prescribe
the form of each Award Agreement evidencing an Award;

 

(vi)           interpret
and administer the Plan and any instrument or agreement entered into under or in connection with the Plan, including any Award
Agreement;

 

(vii)          correct
any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent that the
Committee shall deem desirable to carry it into effect;

 

(viii)       
  establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper
administration of the Plan;

 

(ix)           amend,
modify, or reprice (except as such practice is prohibited by Section 3.4 herein) the terms of any outstanding Award;
and

 

(x)            make
any other determination and take any other action that the Committee deems necessary or desirable for administration of the Plan.

 

Such authority specifically includes the authority, in order
to effectuate the purposes of the Plan but without amending the Plan, to make or modify Awards to eligible individuals who are
foreign nationals or are individuals who are employed outside the United States to recognize differences in local law, tax policy,
or custom. Notwithstanding the foregoing, no amendment, modification or supplement of any Award shall, without the consent of the
Grantee, impair the Grantee’s rights under such Award.

 

3.3         Forfeiture;
Recoupment.

 

The Company may reserve the right in an
Award Agreement to cause a forfeiture of the gain realized by a Grantee with respect to an Award thereunder on account of actions
taken by, or failed to be taken by, such Grantee in violation or breach of or in conflict with any (a) employment agreement,
(b) non-competition agreement, (c) agreement prohibiting solicitation of employees or clients of the Company or any
Affiliate, (d) confidentiality obligation with respect to the Company or any Affiliate, or (e) other agreement, as and
to the extent specified in such Award Agreement. The Company may annul an outstanding Award if the Grantee thereof is an employee
and  is terminated for Cause as defined in the Plan or the applicable Award Agreement or for “cause” as defined
in any other agreement between the Company or any Affiliate and such Grantee, as applicable.

  

    	 	10	 

     

    

 

If the Company adopts a “clawback”
or recoupment policy, any Award will be subject to repayment to the Company to the extent so provided under the terms of such policy.
Such policy may authorize the Company to recover from a Grantee incentive-based compensation (including Options awarded as compensation)
awarded to or received by such Grantee during a period of up to three (3) years, as determined by the Committee, preceding
the date on which the Company is required to prepare an accounting restatement due to material noncompliance by the Company, as
a result of misconduct, with any financial reporting requirement under the federal securities laws. In addition, and notwithstanding
the foregoing, such policy may otherwise authorize the Company to recover from a Grantee any amounts or awards as may in the future
be prescribed by the rules and regulations of the Securities and Exchange Commission and/or the primary stock exchange on
which the Shares are listed, if any.

 

3.4         No
Repricing.

 

Except for adjustments to Options or SARs
contemplated by Section 18, the Company may not, without obtaining stockholder approval: (a) amend the terms of
outstanding Options or SARs to reduce the Option Price or SAR Exercise Price of such outstanding Options or SARs; (b) cancel
outstanding Options or SARs in exchange for or substitution of Options or SARs with an Option Price or SAR Exercise Price that
is less than the exercise price of the original Options or SARs; (c) cancel outstanding Options or SARs with an Option Price
or SAR Exercise Price above the current Fair Market Value of a Share in exchange for cash or other securities; or (d) take
any other action with respect to Options or SARS that would be treated as a repricing under the Stock Exchange or quotation system
on which the Shares are principally traded.

 

3.5         Deferral
Arrangement.

 

The Committee may permit or require the
deferral of any award payment into a deferred compensation arrangement, subject to such rules and procedures as it may establish,
which may include provisions for the payment or crediting of interest or Dividend Equivalent Rights and, in connection therewith,
provisions for converting such credits into Stock Units and for restricting deferrals to comply with hardship distribution rules affecting
tax-qualified retirement plans subject to Code Section 401(k)(2)(B)(IV), provided that no Dividend Equivalent Rights may be
granted in connection with, or related to, an Award of Options or SARs. Any such deferrals shall be made in a manner that complies
with Code Section 409A.

 

3.6         No
Liability.

 

No member of the Board or the Committee
(or any other person to whom administrative authority has been delegated hereunder) shall be liable for any action or determination
made in good faith with respect to the Plan or any Award or Award Agreement.

 

3.7         Share
Issuance/Book-Entry.

 

Notwithstanding any provision of the Plan
to the contrary, the issuance of the Shares under the Plan may be evidenced in such a manner as the Committee, in its discretion,
deems appropriate, including, without limitation, book-entry or direct registration or issuance of one or more share certificates.

 

		4.	SHARES SUBJECT TO THE PLAN

 

4.1    
     Number of Shares Available for Awards.

 

Subject to adjustment as provided in Section 18,
the aggregate number of Shares available for issuance under the Plan (including pursuant to Incentive Stock Options) shall be 750,000.
Shares issued or to be issued under the Plan shall be authorized but unissued shares or treasury Shares or any combination of the
foregoing, as may be determined from time to time by the Board or by the Committee.

  

    	 	11	 

     

    

 

4.2         Adjustments
in Authorized Shares.

  

The Committee shall have the right to substitute
or assume Awards in connection with mergers, reorganizations, separations, or other transactions to which Code Section 424(a) applies.
The number of Shares reserved pursuant to Section 4 shall be increased by the corresponding number of awards assumed
and, in the case of a substitution, by the net increase in the number of Shares subject to awards before and after the substitution.
Available shares under a stockholder approved plan of an acquired company (as appropriately adjusted to reflect the transaction)
may be used for Awards under the Plan and do not reduce the number of Shares available under the Plan, subject to requirements
of the Stock Exchange on which the Shares are listed.

 

4.3         Share
Usage.

 

Shares covered by an Award shall be counted
as used as of the Grant Date. Any Shares that are subject to Awards shall be counted against the limit set forth in Section 4.1
as one (1) Share for every one (1) Share subject to an Award. With respect to SARs, the number of Shares subject to an
award of SARs will be counted against the aggregate number of Shares available for issuance under the Plan regardless of the number
of Shares actually issued to settle the SAR upon exercise. If any Shares covered by an Award granted under the Plan are not purchased
or are forfeited or expire, or if an Award otherwise terminates without delivery of any Shares subject thereto, then the number
of Shares counted against the aggregate number of Shares available under the Plan with respect to such Award shall, to the extent
of any such forfeiture, termination or expiration, again be available for making Awards under the Plan in the same amount as such
Shares were counted against the limit set forth in Section 4.1. The number of Shares available for issuance under the
Plan shall not be increased by (i) any Shares tendered or withheld or Award surrendered in connection with the purchase of
Shares upon exercise of an Option as described in Section 12.2, (ii) any Shares deducted or delivered from an
Award payment in connection with the Company’s tax withholding obligations as described in Section 19.3 or (iii) any
Shares purchased by the Company with proceeds from option exercises.

 

		5.	EFFECTIVE DATE, DURATION AND AMENDMENTS

 

5.1         Effective
Date.

 

The Plan shall be effective as of the Effective
Date.

 

5.2         Term.

 

The Plan first became effective on the Effective
Date. The Plan was most recently amended and restated, subject to approval by the stockholders of the Company effective as of the
Restatement Effective Date. The Plan shall continue in effect until the day immediately prior to the 10-year anniversary of the
Restatement Effective Date, unless sooner terminated on any date as provided in Section 5.3 or extended with approval
by the stockholders of the Company.

 

5.3         Amendment
and Termination of the Plan.

 

The Board may, at any time and from time
to time, amend, suspend, or terminate the Plan as to any Shares as to which Awards have not been made. An amendment shall be contingent
on approval of the Company’s stockholders to the extent stated by the Board, required by Applicable Laws or required by the
Stock Exchange on which the Shares are listed. No amendment will be made to the no-repricing provisions of Section 3.4
or the option pricing provisions of Section 8.1 without the approval of the Company’s stockholders. No amendment,
suspension, or termination of the Plan shall, without the consent of the Grantee, impair rights or obligations under any Award
theretofore awarded under the Plan.

 

    	 	12	 

     

    

 

		6.	AWARD ELIGIBILITY AND LIMITATIONS

 

6.1         Service
Providers and Other Persons.

  

Subject to this Section 6, Awards
may be made under the Plan to: (i) any Service Provider, as the Committee shall determine and designate from time to time
and (ii) any other individual whose participation in the Plan is determined to be in the best interests of the Company by
the Committee.

  

6.2         Limitation
on Shares Subject to Awards and Cash Awards.

 

During any time when the Company has a class
of equity security registered under Section 12 of the Exchange Act and the transition period under Treasury Regulation Section 1.162-27(f)(2) has
lapsed or does not apply, Awards intended to qualify as Performance-Based Compensation shall be subject to the following limitations:

 

(i)             the
maximum number of Shares subject to Options or SARs that can be granted under the Plan to any person eligible for an Award under
Section 6 is One Million (1,000,000) Shares in a calendar year (for this purpose, tandem SARs/Options shall be treated
as one Award);

 

(ii)            the
maximum number of Shares that can be granted under the Plan, other than pursuant to Options or SARs, to any person eligible for
an Award under Section 6 is One Million (1,000,000) Shares in a calendar year; and

 

(iii)           the
maximum amount that may be paid as an Annual Incentive Award in a calendar year to any person eligible for an Award shall be Five
Million Dollars ($5,000,000) and the maximum amount that may be paid pursuant to cash-settled Performance Award granted in a calendar
year to any person eligible for an Award shall be Five Million Dollars ($5,000,000).

 

The preceding limitations in this Section 6.2
are subject to adjustment as provided in Section 18.

 

6.3     
    Stand-Alone, Additional, Tandem and Substitute Awards.

 

Subject to Section 3.4, Awards
granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in
substitution or exchange for, any other Award or any award granted under another plan of the Company, any Affiliate, or any business
entity to be acquired by the Company or an Affiliate, or any other right of a Grantee to receive payment from the Company or any
Affiliate. Such additional, tandem, and substitute or exchange Awards may be granted at any time. Subject to Section 3.4,
if an Award is granted in substitution or exchange for another Award, the Committee shall require the surrender of such other Award
in consideration for the grant of the new Award. In addition, Awards may be granted in lieu of cash compensation, including in
lieu of cash amounts payable under other plans of the Company or any Affiliate. Notwithstanding Section 8.1 and Section 9.1
but subject to Section 3.4, the Option Price of an Option or the SAR Exercise Price of an SAR that is a Substitute
Award may be less than 100% of the Fair Market Value of a Share on the original date of grant; provided, that, the Option Price
or grant price is determined in accordance with the principles of Code Section 424 and the regulations thereunder for any
Incentive Stock Option and consistent with Code Section 409A for any other Option or SAR.

 

		7.	AWARD AGREEMENT

 

Each Award granted pursuant to the Plan
shall be evidenced by an Award Agreement, in such form or forms as the Committee shall from time to time determine. Award Agreements
granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the
Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-Qualified Stock
Options or Incentive Stock Options, and in the absence of such specification such options shall be deemed Non-Qualified Stock Options.

 

    	 	13	 

     

    

 

		8.	TERMS AND CONDITIONS OF OPTIONS

 

8.1         Option
Price.

  

The Option Price of each Option shall be
fixed by the Committee and stated in the Award Agreement evidencing such Option. Except in the case of Substitute Awards, the Option
Price of each Option shall be at least the Fair Market Value of a Share on the Grant Date; provided, however, that in the
event that a Grantee is a Ten Percent Stockholder, the Option Price of an Option granted to such Grantee that is intended to be
an Incentive Stock Option shall be not less than one hundred ten percent (110%) of the Fair Market Value of a Share on the Grant
Date. In no case shall the Option Price of any Option be less than the par value of a Share.

   

8.2      
   Vesting.

 

Subject to Sections 8.3 and 18.3,
each Option granted under the Plan shall become exercisable at such times and under such conditions as shall be determined by the
Committee and stated in the Award Agreement. For purposes of this Section 8.2, fractional numbers of Shares subject
to an Option shall be rounded down to the next nearest whole number.

 

8.3         Term.

 

Each Option granted under the Plan shall
terminate, and all rights to purchase Shares thereunder shall cease, upon the expiration of ten (10) years from the date such
Option is granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by
the Committee and stated in the Award Agreement relating to such Option; provided, however, that in the event that the Grantee
is a Ten Percent Stockholder, an Option granted to such Grantee that is intended to be an Incentive Stock Option shall not be exercisable
after the expiration of five (5) years from its Grant Date.

 

8.4         Termination
of Service.

 

Each Award Agreement shall set forth the
extent to which the Grantee shall have the right to exercise the Option following termination of the Grantee’s Service. Such
provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to
the Plan, and may reflect distinctions based on the reasons for termination of Service.

 

8.5         Limitations
on Exercise of Option.

 

Notwithstanding any other provision of the
Plan, in no event may any Option be exercised, in whole or in part, prior to the date the Plan is approved by the stockholders
of the Company as provided herein or after the occurrence of an event referred to in Section 18 which results in termination
of the Option.

 

8.6         Method
of Exercise.

 

Subject to the terms of Section 12
and Section 19.3, an Option that is exercisable may be exercised by the Grantee’s delivery to the Company
of notice of exercise on any business day, at the Company’s principal office, on the form specified by the Company and in
accordance with any additional procedures specified by the Committee. Subject to the terms of Section 12 and Section 19.3,
such notice shall specify the number of Shares with respect to which the Option is being exercised and shall be accompanied by
payment in full of the Option Price of the Shares for which the Option is being exercised plus the amount (if any) of federal and/or
other taxes which the Company may, in its judgment, be required to withhold with respect to an Award.

 

    	 	14	 

     

    

 

8.7         Rights
of Holders of Options.

 

Unless otherwise stated in the applicable
Award Agreement, an individual or entity holding or exercising an Option shall have none of the rights of a stockholder (for example,
the right to receive cash or dividend payments or distributions attributable to the subject Shares or to direct the voting of the
subject Shares or to receive notice of any meeting of the Company’s stockholders) until the Shares covered thereby are fully
paid and issued to him. Except as provided in Section 18, no adjustment shall be made for dividends, distributions
or other rights for which the record date is prior to the date of such issuance.

  

8.8    
     Delivery of Share Certificates.

  

Promptly after the exercise of an Option
by a Grantee and the payment in full of the Option Price with respect thereto, such Grantee shall be entitled to receive such evidence
of such Grantee’s ownership of the Shares subject to such Option as shall be consistent with Section 3.7.

 

8.9  
       Transferability of Options.

 

Except as provided in Section 8.10,
during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or incompetency, the Grantee’s guardian
or legal representative) may exercise an Option. Except as provided in Section 8.10, no Option shall be assignable
or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution.

 

8.10       Family
Transfers.

 

If authorized in the applicable Award Agreement
or by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive
Stock Option to any Family Member. For the purpose of this Section 8.10, a “not for value” transfer is
a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights;
or (iii) unless Applicable Law does not permit such transfers, a transfer to an entity in which more than fifty percent (50%)
of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer
under this Section 8.10, any such Option shall continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer, and Shares acquired pursuant to the Option shall be subject to the same restrictions on transfer
of shares as would have applied to the Grantee. Subsequent transfers of transferred Options are prohibited except to Family Members
of the original Grantee in accordance with this Section 8.10 or by will or the laws of descent and distribution. The
events of termination of Service of Section 8.4 shall continue to be applied with respect to the original Grantee,
following which the Option shall be exercisable by the transferee only to the extent, and for the periods specified, in Section 8.4.

 

8.11       Limitations
on Incentive Stock Options.

 

An Option shall constitute an Incentive
Stock Option only (i) if the Grantee of such Option is an employee of the Company or any Subsidiary of the Company; (ii) to
the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value
(determined at the time the Option is granted) of the Shares with respect to which all Incentive Stock Options held by such Grantee
become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer
and its Affiliates) does not exceed $100,000. Except to the extent provided in the regulations under Code Section 422, this
limitation shall be applied by taking Options into account in the order in which they were granted.

 

8.12       Notice
of Disqualifying Disposition.

 

If any Grantee shall make any disposition
of Shares issued pursuant to the exercise of an Incentive Stock Option under the circumstances described in Code Section 421(b) (relating
to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof.

 

    	 	15	 

     

    

 

		9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

 

9.1         Right
to Payment and Grant Price.

 

A SAR shall confer on the Grantee to
whom it is granted a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one Share on
the date of exercise over (B) the SAR Exercise Price as determined by the Committee. The Award Agreement for a SAR shall
specify the SAR Exercise Price, which shall be at least the Fair Market Value of one (1) Share on the Grant Date. SARs
may be granted in conjunction with all or part of an Option granted under the Plan or at any subsequent time during the term
of such Option, in conjunction with all or part of any other Award or without regard to any Option or other Award; provided
that a SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Exercise Price that is no less
than the Fair Market Value of one Share on the SAR Grant Date; and provided further that a Grantee may only exercise either
the SAR or the Option with which it is granted in tandem and not both.

  

9.2         Other
Terms.

 

The Committee shall determine on the Grant
Date or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including
based on achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be
or become exercisable following termination of Service or upon other conditions, the method of exercise, method of settlement,
form of consideration payable in settlement, method by or forms in which Shares will be delivered or deemed to be delivered to
Grantees, whether or not a SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of
any SAR.

 

9.3         Term.

 

Each SAR granted under the Plan shall terminate,
and all rights thereunder shall cease, upon the expiration of ten (10) years from the date such SAR is granted, or under such
circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and stated in the
Award Agreement relating to such SAR.

 

9.4         Transferability
of SARS.

 

Except as provided in Section 9.5,
during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or incompetency, the Grantee’s guardian
or legal representative) may exercise a SAR. Except as provided in Section 9.5, no SAR shall be assignable or transferable
by the Grantee to whom it is granted, other than by will or the laws of descent and distribution.

 

9.5         Family
Transfers.

 

If authorized in the applicable Award Agreement
and by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or part of a SAR to any Family Member.
For the purpose of this Section 9.5, a “not for value” transfer is a transfer which is (i) a gift,
(ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) unless Applicable
Law does not permit such transfers, a transfer to an entity in which more than fifty percent (50%) of the voting interests are
owned by Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under this Section 9.5,
any such SAR shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, and
Shares acquired pursuant to a SAR shall be subject to the same restrictions on transfer or shares as would have applied to the
Grantee. Subsequent transfers of transferred SARs are prohibited except to Family Members of the original Grantee in accordance
with this Section 9.5 or by will or the laws of descent and distribution.

 

    	 	16	 

     

    

 

		10.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK
UNITS

 

10.1       Grant
of Restricted Stock or Stock Units.

 

Awards of Restricted Stock or Stock Units
may be made for consideration or no consideration. To the extent required by Applicable Law, Grantees will be required to pay the
par value of the Shares; provided, however, that, to the extent permitted by Applicable Law, par value shall be deemed paid by
past Service or, if so provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future
Service to the Company or an Affiliate of the Company).

 

10.2       Restrictions.

 

At the time a grant of Restricted
Stock or Stock Units is made, the Committee may, in its sole discretion, establish a period of time (a “restricted
period”) applicable to such Restricted Stock or Stock Units. Each Award of Restricted Stock or Stock Units may be
subject to a different restricted period. The Committee may in its sole discretion, at the time a grant of Restricted Stock
or Stock Units is made, prescribe restrictions in addition to or other than the expiration of the restricted period,
including the satisfaction of corporate or individual performance objectives, which may be applicable to all or any portion
of the Restricted Stock or Stock Units as described in Section 14, and which shall be set forth in the Award
Agreement relating to such grant. Except as authorized by the Committee in writing, neither Restricted Stock nor Stock Units
may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the restricted period or prior to
the satisfaction of any other restrictions prescribed by the Committee with respect to such Restricted Stock or Stock
Units.

  

10.3       Restricted
Stock Certificates.

 

Pursuant to Section 3.7, to
the extent that ownership of Restricted Stock is evidenced by a book-entry registration or direct registration, such registration
shall be notated to evidence the restrictions imposed on such Award of Restricted Stock under the Plan and the applicable Award
Agreement. Subject to Section 3.7 and the immediately following sentence, the Company may issue, in the name of each
Grantee to whom Restricted Stock have been granted, share certificates representing the total number of Restricted Stock granted
to the Grantee, as soon as reasonably practicable after the Grant Date. The Committee may provide in an Award Agreement that either
(i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the shares
of Restricted Stock are forfeited to the Company or the restrictions applicable thereto lapse and such Grantee shall deliver a
stock power to the Company with respect to each certificate, or (ii) such certificates shall be delivered to the Grantee,
provided, however, that such certificates shall bear a legend or legends that comply with the applicable securities laws and regulations
and make appropriate reference to the restrictions imposed under the Plan and the Award Agreement.

 

10.4       Rights
of Holders of Restricted Stock.

 

Unless the Committee otherwise provides
in an Award Agreement, holders of Restricted Stock shall have the right to vote such Shares. Awards of Restricted Stock may provide
for the right to receive any dividends declared or paid with respect to such Shares; provided, however, that to the extent such
dividend rights are provided with respect to Restricted Stock that vests or is earned based upon the achievement of performance
goals, dividends shall not be paid currently, but shall, instead, be paid (or, to the extent deemed reinvested into additional
Shares of Restricted Stock, vest) only to the extent (and when) such Restricted Stock vests. The Award Agreement may provide that
dividends are payable in cash or deemed reinvested in additional Shares of Restricted Stock at a price per Share equal to the Fair
Market Value of a Share on the date that such dividend is paid. All distributions, if any, received by a Grantee with respect to
Restricted Stock as a result of any stock split, extraordinary dividend, share dividend, combination of shares, or other similar
transaction shall be subject to the restrictions applicable to the original Grant. Absent advance written consent by the Committee,
holders of Restricted Stock may not make an election under Code Section 83(b) with regard to the grant of Restricted
Stock, and any holder who attempts to make such an election without first obtaining such consent shall forfeit the Restricted Stock.

 

    	 	17	 

     

    

 

10.5       Rights
of Holders of Stock Units.

 

10.5.1       Voting
and Dividend Equivalent Rights.

 

Holders of Stock Units shall have no rights
as stockholders of the Company (for example, the right to receive cash or dividend payments or distributions attributable to the
Shares subject to such Stock Units, to direct the voting of the Shares subject to such Stock Units, or to receive notice of any
meeting of the Company’s stockholders); provided, however, that the Committee may provide in an Award Agreement evidencing
a grant of Stock Units that the holder of such Stock Units shall be entitled to receive Dividend Equivalent Rights.

 

10.5.2       Creditor’s
Rights.

 

A holder of Stock Units shall have no rights
other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company,
subject to the terms and conditions of the applicable Award Agreement.

  

10.6       Termination
of Service.

  

Unless the Committee otherwise provides
in an Award Agreement or in writing after the Award Agreement is issued, upon the termination of a Grantee’s Service, any
Restricted Stock or Stock Units held by such Grantee that have not vested, or with respect to which all applicable restrictions
and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of Restricted Stock or Stock Units, the
Grantee shall have no further rights with respect to such Award, including but not limited to any right to vote Restricted Stock
or any right to receive dividends with respect to Restricted Stock or Stock Units.

 

10.7       Delivery
of Shares.

 

Upon the expiration or termination of any
restricted period and the satisfaction of any other conditions prescribed by the Committee and set forth in the Award Agreement
relating to such Restricted Stock or Stock Units, the restrictions applicable to Restricted Stock or Stock Units settled in Shares
shall lapse, and, unless otherwise provided in the applicable Award Agreement, a book-entry or direct registration or a share certificate
evidencing ownership of such Shares shall, consistent with Section 3.7, be issued, free of all such restrictions, to
the Grantee or the Grantee’s beneficiary or estate, as the case may be. Neither the Grantee, nor the Grantee’s beneficiary
or estate, shall have any further rights with regard to a Stock Unit once the Shares represented by the Stock Unit has been delivered.

 

		11.	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS
AND OTHER EQUITY-BASED AWARDS

 

The Committee may, in its sole discretion,
grant (or sell) an Unrestricted Stock Award to any Grantee pursuant to which such Grantee may receive Shares free of any restrictions
(“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted or sold to any Grantee as provided
in the immediately preceding sentence in respect of past or, if so provided in the related Award Agreement or a separate agreement,
the promise by the Grantee to perform future Service to the Company or an Affiliate or other valid consideration, or in lieu of,
or in addition to, any cash compensation due to such Grantee. To the extent required by Applicable Law, Grantees will be required
to pay the par value of any Shares received pursuant to an Award; provided, however, that, to the extent permitted by Applicable
Law, par value shall be deemed paid by past Service or, if so provided in the related Award Agreement or a separate agreement,
the promise by the Grantee to perform future Service to the Company or an Affiliate of the Company).

 

The Committee may, in its sole discretion,
grant Awards to Grantees in the form of Other Equity-Based Awards, as deemed by the Committee to be consistent with the purposes
of the Plan. Awards granted pursuant to this Section 11 may be granted with vesting, value and/or payment contingent
upon the attainment of one or more performance goals. The Committee shall determine the terms and conditions of such Awards at
the date of grant or thereafter. Unless the Committee otherwise provides in an Award Agreement or in writing after the Award Agreement
is issued, upon the termination of a Grantee’s Service, any Other Equity-Based Awards held by such Grantee that have not
vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited.
Upon forfeiture of Other Equity-Based Awards, the Grantee shall have no further rights with respect to such Award.

 

    	 	18	 

     

    

 

		12.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED
STOCK

 

12.1       General
Rule.

 

Payment of the Option Price for the Shares
purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock shall be made in cash or in cash equivalents
acceptable to the Company.

 

12.2       Surrender
of Shares.

 

To the extent the Award Agreement so provides,
payment of the Option Price for Shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock
may be made all or in part through the tender or attestation to the Company of Shares, which shall be valued, for purposes of
determining the extent to which the Option Price or Purchase Price has been paid thereby, at their Fair Market Value on the date
of exercise or surrender, as applicable.

  

12.3       Cashless
Exercise.

 

With respect to an Option only (and not
with respect to Restricted Stock), to the extent permitted by law and to the extent the Award Agreement so provides, payment of
the Option Price for Shares purchased pursuant to the exercise of an Option may be made all or in part (i) by delivery (on
a form acceptable to the Committee) by the Grantee of an irrevocable direction to a licensed securities broker acceptable to the
Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and any withholding
taxes described in Section 19.3, or, (ii) with the consent of the Company, by the Grantee electing to have the
Company issue to Grantee only that the number of Shares equal in value to the difference between the Option Price and the Fair
Market Value of the Shares subject to the portion of the Option being exercised.

 

12.4       Other
Forms of Payment.

 

To the extent the Award Agreement so provides
and/or unless otherwise specified in an Award Agreement, payment of the Option Price for Shares purchased pursuant to exercise
of an Option or the Purchase Price for Restricted Stock may be made in any other form that is consistent with Applicable Laws,
regulations and rules, including, without limitation, net exercise.

 

		13.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS

 

13.1       Dividend
Equivalent Rights.

 

A Dividend Equivalent Right is an Award
entitling the recipient to receive credits based on cash distributions that would have been paid on the Shares specified in the
Dividend Equivalent Right (or other award to which it relates) if such Shares had been issued to and held by the recipient. A Dividend
Equivalent Right may be granted hereunder to any Grantee, provided that no Dividend Equivalent Rights may be granted in connection
with, or related to, an Award of Options or SARs, and, provided, further, that to the extent such Dividend Equivalent Rights are
provided with respect to an Award that vests or is earned based upon the achievement of performance goals, any dividend equivalent
amounts shall not be paid currently, but shall, instead, be paid (or, to the extent deemed reinvested into additional Shares or
Share-based Awards, issued) only to the extent such Award vest (with the Dividend Equivalent amount paid or issued, as the case
may be, at the same time the cash is paid or Shares are issued at or after vesting of the Award). The terms and conditions of Dividend
Equivalent Rights shall be specified in the Award Agreement. Dividend equivalents credited to the holder of a Dividend Equivalent
Right may be paid in cash or may be deemed to be reinvested in additional Shares or Share-based Awards, which may thereafter accrue
additional dividend equivalents. Any such reinvestment shall be based on the Fair Market Value of a Share on the date the dividend
was paid.

 

    	 	19	 

     

    

 

13.2       Termination
of Service.

 

Except as may otherwise be provided by the
Committee either in the Award Agreement or in writing after the Award Agreement is issued, a Grantee’s rights in all Dividend
Equivalent Rights or interest equivalents shall automatically terminate upon the Grantee’s termination of Service for any
reason.

 

		14.	TERMS AND CONDITIONS OF PERFORMANCE AWARDS AND
ANNUAL INCENTIVE AWARDS

 

14.1       Grant
of Performance Awards and Annual Incentive Awards.

 

Subject to the terms and provisions of the
Plan, the Committee, at any time and from time to time, may grant Performance Awards and/or Annual Incentive Awards to a Plan participant
in such amounts and upon such terms as the Committee shall determine.

  

14.2       Value
of Performance Awards and Annual Incentive Awards.

  

Each Performance Award and Annual Incentive
Award shall have an initial value that is established by the Committee at the time of grant. The Committee shall set performance
goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance
Awards that will be paid out to the Plan participant.

 

14.3       Earning
of Performance Awards and Annual Incentive Awards.

 

Subject to the terms of the Plan, after
the applicable Performance Period has ended, the holder of Performance Awards or Annual Incentive Awards shall be entitled to receive
payout on the value and number of the Performance Awards or Annual Incentive Awards earned by the Plan participant over the Performance
Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved.

 

14.4       Form and
Timing of Payment of Performance Awards and Annual Incentive Awards.

 

Payment of earned Performance Awards and
Annual Incentive Awards shall be as determined by the Committee and as evidenced in the Award Agreement. Subject to the terms of
the Plan, the Committee, in its sole discretion, may pay earned Performance Awards in the form of cash or in Shares (or in a combination
thereof) equal to the value of the earned Performance Awards at the close of the applicable Performance Period, or as soon as practicable
after the end of the Performance Period; provided that, unless specifically provided in the Award Agreement pertaining to the grant
of the Award, such payment shall occur no later than the 15th day of the third month following the end of the calendar year in
which the Performance Period ends. Any Shares may be granted subject to any restrictions deemed appropriate by the Committee. The
determination of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining
to the grant of the Award.

 

14.5       Performance
Conditions.

 

The right of a Grantee to exercise or receive
a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specified by
the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing
any performance conditions.

 

14.6       Performance
Awards or Annual Incentive Awards Granted to Designated Covered Employees.

 

If and to the extent that the Committee
determines that a Performance or Annual Incentive Award to be granted to a Grantee who is designated by the Committee as likely
to be a Covered Employee should qualify as “qualified performance-based compensation” for purposes of Code Section 162(m),
the grant, exercise and/or settlement of such Award shall be contingent upon achievement of pre-established performance goals and
other terms set forth in this Section 14.6.

 

    	 	20	 

     

    

 

14.6.1       Performance
Goals Generally.

 

The performance goals for Performance or
Annual Incentive Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect
to each of such criteria, as specified by the Committee consistent with this Section 14.6. Performance goals applicable
to Awards intended to qualify as Performance-Based Compensation shall be objective and shall otherwise meet the requirements of
Code Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted
by the Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may
determine that such Awards shall be granted, exercised and/or settled upon achievement of any one performance goal or that two
or more of the performance goals must be achieved as a condition to the grant, exercise and/or settlement of such Awards. Performance
goals may differ for Awards granted to any one Grantee or to different Grantees.

  

14.6.2       Timing
For Establishing Performance Goals.

  

Performance goals applicable to Awards intended
to qualify as Performance-Based Compensation shall be established not later than the earlier of (i) 90 days after the beginning
of any performance period applicable to such Awards and (ii) the day on which twenty-five percent (25%) of any performance
period applicable to such Awards has expired, or at such other date as may be required or permitted for “qualified performance-based
compensation” under Code Section 162(m).

 

14.6.3       Settlement
of Awards; Other Terms.

 

Settlement of such Awards shall be in cash,
Shares, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce the amount
of a settlement otherwise to be made in connection with such Awards. The Committee shall specify the circumstances in which such
Performance or Annual Incentive Awards shall be paid or forfeited in the event of termination of Service by the Grantee prior to
the end of a performance period or settlement of Awards.

 

14.6.4       Performance
Measures.

 

The performance goals upon which the payment
or vesting of a Performance or Annual Incentive Award to a Covered Employee that is intended to qualify as Performance-Based Compensation
shall be limited to the following Performance Measures, with or without adjustment:

 

(a)       funds
from operations;

 

(b)       adjusted
funds from operations;

 

(c)       earnings
before any one or more of the following: interest, taxes, depreciation, amortization and/or stock compensation;

 

(d)     
  operating (or gross) income or profit;

 

(e)        pretax
income before allocation of corporate overhead and/or bonus;

 

(f)        operating
efficiencies;

 

(g)       operating
income as a percentage of net revenue;

 

(h)       return
on equity, assets, capital, capital employed or investment;

 

(i)     
   after tax operating income;

 

(j)      
  net income;

 

    	 	21	 

     

    

 

(k)       earnings
or book value per share;

 

(l)      
  financial ratios;

 

(m)      cash
flow(s);

 

(n)       total
rental income or revenues;

 

(o)       capital
expenditures as a percentage of rental income;

 

(p)       total
operating expenses, or some component or combination of components of total operating expenses, as a percentage of rental income;

  

(q)       stock
price or total stockholder return, including any comparisons with stock market indices;

  

(r)      
  appreciation in or maintenance of the price of the common stock or any of our publicly-traded securities;

 

(s)       dividends;

 

(t)       
debt or cost reduction;

 

(u)       comparisons
with performance metrics of peer companies;

 

(v)       comparisons
of our stock price performance to the stock price performance of peer companies;

 

(w)      strategic
business objectives, consisting of one or more objectives based on meeting specified cost, acquisition or loan origination targets,
meeting or reducing budgeted expenditures, attaining division, group or corporate financial goals, meeting business expansion goals
and meeting goals relating to loan origination, acquisitions, joint ventures or collaborations or dispositions;

 

(x)      
  economic value-added models;

 

(y)       loan
portfolio performance measures; or

 

(z)       any
combination of any of the foregoing.

 

Business criteria may be (but are not required
to be) measured on a basis consistent with U.S. Generally Accepted Accounting Principles.

 

Any Performance Measure(s) may be expressed
on an absolute and/or relative basis, may be based on or otherwise employ comparisons based on internal targets, the performance
of the Company, Subsidiary, and/or Affiliate or past performance or the past performance of any of the Company, Subsidiary, and/or
Affiliate, operating units, business segments or divisions and/or the past or current performance of other companies, and in the
case of earnings based measures, may use or employ comparisons relating to capital, stockholders’ equity and/or shares outstanding,
or to assets or net assets, as the Committee may deem appropriate. The Committee also has the authority to provide for accelerated
vesting of any Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Section 14.

 

    	 	22	 

     

    

 

14.6.5       Evaluation
of Performance.

 

The Committee may provide in any such Award
that any evaluation of performance may include or exclude any of the following events that occur during a Performance Period: (a) asset
impairments or write-downs; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws,
accounting principles, or other laws or provisions affecting reported results; (d) accruals for reorganization and restructuring
programs; (e) any item that is either unusual or infrequent in nature, as determined in accordance with Accounting Standards
Codification Topic 225-20 “Extraordinary and Unusual Items,” and/or as described in “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” appearing in the Company’s annual report to stockholders
for the applicable year; (f) foreign exchange gains and losses, (g) the effect of adverse federal, governmental or regulatory
action, or delays in federal, governmental or regulatory action; and (h) any other event either not directly related to operations
or not within the reasonable control of management. To the extent such inclusions or exclusions affect Awards to Covered Employees
that are intended to qualify as Performance-Based Compensation, they shall be prescribed in a form that meets the requirements
of Code Section 162(m) for deductibility.

 

14.6.6       Adjustment
of Performance-Based Compensation.

  

Awards that are intended to qualify as Performance-Based
Compensation may not be adjusted upward. The Committee shall retain the discretion to adjust such Awards downward, either on a
formula or discretionary basis, or any combination as the Committee determines.

  

14.6.7       Board
Discretion.

 

In the event that applicable tax and/or
securities laws change to permit Board discretion to alter the governing Performance Measures without obtaining stockholder approval
of such changes, the Committee shall have sole discretion to make such changes without obtaining stockholder approval provided
the exercise of such discretion does not violate Code Sections 162(m) (to the extent the affected Award is intended to qualify
as Performance-Based Compensation) or 409A (to the extent the affected Award constitutes deferred compensation under Section 409A).
In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based
Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base
vesting on Performance Measures other than those set forth in Section 14.6.4.

 

14.7       Status
of Awards Under Code Section 162(m).

 

It is the intent of the Company that Awards
under Section 14.6 granted to persons who are designated by the Committee as likely to be Covered Employees within
the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute “qualified
performance-based compensation” within the meaning of Code Section 162(m) and regulations thereunder. Accordingly,
the terms of Section 14.6, including the definitions of Covered Employee and other terms used therein, shall be interpreted
in a manner consistent with Code Section 162(m) and regulations thereunder with respect to Awards intended to qualify
as Performance-Based Compensation. If any provision of the Plan or any agreement relating to such Awards does not comply or is
inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such provision shall be construed
or deemed amended to the extent necessary to conform to such requirements.

 

		15.	TERMS AND CONDITIONS OF LONG-TERM INCENTIVE UNITS

 

LTIP Units are intended to be profits interests
in the operating partnership affiliated with the Company, if any (such operating partnership, if any, the “Operating Partnership”),
the rights and features of which, if applicable, will be set forth in the agreement of limited partnership for the Operating Partnership
(the “Operating Partnership Agreement”). Subject to the terms and provisions of the Plan and the Operating Partnership
Agreement, the Committee, at any time and from time to time, may grant LTIP Units to Plan participants in such amounts and upon
such terms as the Committee shall determine. LTIP Units must be granted for service to the Operating Partnership. Each LTIP Unit
awarded will be equivalent to an award of one Share for purposes of reducing the number of Shares available under the Plan on a
one-for-one basis pursuant to Section 4.3.

 

    	 	23	 

     

    

 

15.1       Vesting.

 

Subject to Section 18, each
LTIP Unit granted under the Plan shall vest at such times and under such conditions as shall be determined by the Committee and
stated in the Award Agreement.

 

		16.	PARACHUTE LIMITATIONS

 

Unless the Grantee is party to a written
agreement or other legally enforceable contract that expressly addresses Code Section 280G or Code Section 4999 (in
which case, the provisions in such agreement or contract relating to Code Section 280G and Code Section 4999 shall control
and the provisions in this Section 16 shall not be applicable to the Grantee), if the Grantee is a “disqualified individual,”
as defined in Code Section 280G(c), then, notwithstanding any other provision of the Plan or of any other agreement, contract,
or understanding heretofore or hereafter entered into by a Grantee with the Company or an Affiliate (an “Other Agreement”)
providing any right to exercise, vesting, payment or benefit, and notwithstanding any formal or informal plan or other arrangement
for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries
of which the Grantee is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit
to or for the Grantee (a “Benefit Arrangement”), any right to exercise, vesting, payment or benefit to the Grantee
under the Plan shall be reduced or eliminated:

  

(i)          to
the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits
to or for the Grantee under the Plan, all Other Agreements, and all Benefit Arrangements, would cause any exercise, vesting, payment
or benefit to the Grantee under the Plan to be considered a “parachute payment” within the meaning of Code Section 280G(b)(2) as
then in effect (a “Parachute Payment”) and

 

(ii)         if,
as a result of receiving such Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under
the Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received
by the Grantee without causing any such payment or benefit to be considered a Parachute Payment.

 

The Company shall accomplish such reduction
by first reducing or eliminating any cash payments (with the payments to be made furthest in the future being reduced first), then
by reducing or eliminating any accelerated vesting of Performance Awards, then by reducing or eliminating any accelerated vesting
of Options or SARs, then by reducing or eliminating any accelerated vesting of Restricted Stock or Stock Units, then by reducing
or eliminating any other remaining Parachute Payments; provided, however, that notwithstanding the foregoing, except to the extent
it would violate Code Section 409A or other Applicable Laws, the Company and the applicable Grantee (or beneficiary) may agree
to a different order of reduction.

 

		17.	REQUIREMENTS OF LAW

 

17.1       General.

 

No participant in the Plan will be permitted
to acquire, or will have any right to acquire, Shares thereunder if such acquisition would be prohibited by any share ownership
limits contained in charter or bylaws or would impair the Company’s status as a REIT. The Company shall not be required to
offer, sell or issue any Shares under any Award if the offer, sale or issuance of such Shares would constitute a violation by the
Grantee, any other individual or entity exercising an Option, or the Company or an Affiliate of any provision of any law or regulation
of any governmental authority, including without limitation any federal or state securities laws or regulations. If at any time
the Company shall determine, in its discretion, that the offering, listing, registration or qualification of any Shares subject
to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of,
or in connection with, the issuance or purchase of Shares hereunder, no Shares may be offered, issued or sold to the Grantee or
any other individual or entity exercising an Option pursuant to such Award unless such offering, listing, registration, qualification,
consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused
thereby shall in no way affect the date of termination of the Award. Without limiting the generality of the foregoing, in connection
with the Securities Act, upon the exercise of any Option or any SAR that may be settled in Shares or the delivery of any Shares
underlying an Award, unless a registration statement under such Act is in effect with respect to the Shares covered by such Award,
the Company shall not be required to offer, sell or issue such Shares unless the Committee has received evidence satisfactory to
it that the Grantee or any other individual or entity exercising an Option or SAR or accepting delivery of such Shares may acquire
such Shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Committee
shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered
hereby pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the
exercise of an Option or a SAR or the issuance of Shares pursuant to the Plan to comply with any Applicable Laws. As to any jurisdiction
that expressly imposes the requirement that an Option (or SAR that may be settled in Shares) shall not be exercisable until the
Shares covered by such Option (or SAR) are registered under the securities laws thereof or are exempt from such registration, the
exercise of such Option (or SAR) under circumstances in which the laws of such jurisdiction apply shall be deemed conditioned upon
the effectiveness of such registration or the availability of such an exemption.

 

    	 	24	 

     

    

 

17.2       Rule 16b-3.

  

During any time when the Company has a class
of equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards pursuant to
the Plan and the exercise of Options and SARs granted hereunder that would otherwise be subject to Section 16(b) of the
Exchange Act will qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision
of the Plan or action by the Committee does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative
with respect to such Awards to the extent permitted by Applicable Law and deemed advisable by the Committee, and shall not affect
the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify
the Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption
or its replacement.

 

		18.	EFFECT OF CHANGES IN CAPITALIZATION

 

18.1       Changes
in Shares.

 

If the number of outstanding Shares is increased
or decreased or the Shares are changed into or exchanged for a different number or kind of Shares or other securities of the Company
on account of any recapitalization, reclassification, stock split, reverse stock split, spin-off, combination of share, exchange
of shares, share dividend or other distribution payable in capital shares, or other increase or decrease in such shares effected
without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which grants
of Options and other Awards may be made under the Plan, including, without limitation, the limits set forth in Section 6.2,
shall be adjusted proportionately and accordingly by the Company in a manner deemed equitable by the Committee. In addition, the
number and kind of shares for which Awards are outstanding shall be adjusted proportionately and accordingly so that the proportionate
interest of the Grantee immediately following such event shall, to the extent practicable, be the same as immediately before such
event. Any such adjustment in outstanding Options or SARs shall not change the aggregate Option Price or SAR Exercise Price payable
with respect to shares that are subject to the unexercised portion of an outstanding Option or SAR, as applicable, but shall include
a corresponding proportionate adjustment in the Option Price or SAR Exercise Price per share. The conversion of any convertible
securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. Notwithstanding
the foregoing, in the event of any distribution to the Company’s stockholders of securities of any other entity or other
assets (including an extraordinary dividend but excluding a non-extraordinary dividend of the Company) without receipt of consideration
by the Company, the Company shall, in such manner as the Company deems appropriate, adjust (i) the number and kind of shares
subject to outstanding Awards and/or (ii) the exercise price of outstanding Options and Stock Appreciation Rights to reflect
such distribution.

 

18.2       Reorganization
in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control.

 

Subject to Section 18.3, if
the Company shall be the surviving entity in any reorganization, merger, or consolidation of the Company with one or more other
entities which does not constitute a Change in Control, any Option or SAR theretofore granted pursuant to the Plan shall pertain
to and apply to the securities to which a holder of the number of Shares subject to such Option or SAR would have been entitled
immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the Option
Price or SAR Exercise Price per share so that the aggregate Option Price or SAR Exercise Price thereafter shall be the same as
the aggregate Option Price or SAR Exercise Price of the Shares remaining subject to the Option or SAR immediately prior to such
reorganization, merger, or consolidation. Subject to any contrary language in an Award Agreement evidencing an Award, or in another
agreement with the Grantee, or otherwise set forth in writing, any restrictions applicable to such Award shall apply as well to
any replacement shares received by the Grantee as a result of the reorganization, merger or consolidation. In the event of a transaction
described in this Section 18.2, Performance Awards shall be adjusted (including any adjustment to the Performance Measures
applicable to such Awards deemed appropriate by the Committee) so as to apply to the securities that a holder of the number of
Shares subject to the Performance Awards would have been entitled to receive immediately following such transaction.

 

    	 	25	 

     

    

 

18.3       Change
in Control in which Awards are not Assumed.

  

Except as otherwise provided in the applicable
Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change
in Control in which outstanding Options, SARs, Stock Units, Dividend Equivalent Rights, Restricted Stock, LTIP Units or other Equity-Based
Awards are not being assumed or continued:

  

(i)           in
each case with the exception of any Performance Award, all outstanding Restricted Stock and LTIP Units shall be deemed to have
vested, all Stock Units shall be deemed to have vested and the Shares subject thereto shall be delivered, and all Dividend Equivalent
Rights shall be deemed to have vested and the Shares subject thereto shall be delivered, immediately prior to the occurrence of
such Change in Control, and

 

(ii)          either
of the following two actions shall be taken:

 

(A)       fifteen
(15) days prior to the scheduled consummation of a Change in Control, all Options and SARs outstanding hereunder shall become immediately
exercisable and shall remain exercisable for a period of fifteen (15) days, or

 

(B)       the
Committee may elect, in its sole discretion, to cancel any outstanding Awards of Options, Restricted Stock, Stock Units, and/or
SARs and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value
(as determined by the Committee acting in good faith), in the case of Restricted Stock or Stock Units, equal to the formula or
fixed price per share paid to holders of Shares and, in the case of Options or SARs, equal to the product of the number of Shares
subject to the Option or SAR (the “Award Shares”) multiplied by the amount, if any, by which (I) the formula or
fixed price per share paid to holders of Shares pursuant to such transaction exceeds (II) the Option Price or SAR Exercise
Price applicable to such Award Shares.

 

(iii)         for
Performance Awards denominated in Shares, Stock Units or LTIP Units, if less than half of the Performance Period has lapsed, the
Awards shall be converted into Restricted Stock or Stock Units assuming target performance has been achieved (or Unrestricted Stock
if no further restrictions apply). If more than half the Performance Period has lapsed, the Awards shall be converted into Restricted
Stock or Stock Units based on actual performance to date (or Unrestricted Stock if no further restrictions apply). If actual performance
is not determinable, then Performance Awards shall be converted into Restricted Stock or Stock Units assuming target performance
has been achieved, based on the discretion of the Committee (or Unrestricted Stock if no further restrictions apply).

 

(iv)         Other
Equity Based Awards shall be governed by the terms of the applicable Award Agreement.

 

With respect to the Company’s establishment
of an exercise window, (i) any exercise of an Option or SAR during such fifteen (15)-day period shall be conditioned upon
the consummation of the event and shall be effective only immediately before the consummation of the event, and (ii) upon
consummation of any Change in Control, the Plan and all outstanding but unexercised Options and SARs shall terminate. The Committee
shall send notice of an event that will result in such a termination to all individuals and entities that hold Options and SARs
not later than the time at which the Company gives notice thereof to its stockholders.

 

    	 	26	 

     

    

 

18.4       Change
in Control in which Awards are Assumed.

 

Except as otherwise provided in the applicable
Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change
in Control in which outstanding Awards are being assumed or continued, the following provisions shall apply to such Award, to the
extent assumed or continued:

 

The Plan, Options, SARs, Stock Units,
Restricted Stock and Other Equity-Based Awards theretofore granted shall continue in the manner and under the terms so
provided in the event of any Change in Control to the extent that provision is made in writing in connection with such Change
in Control for the assumption or continuation of the Options, SARs, Stock Units, Restricted Stock and Other
Equity-Based Awards theretofore granted, or for the substitution for such Options, SARs, Stock Units, Restricted Stock and
Other Equity-Based Awards for new common stock options and stock appreciation rights and new common stock units, restricted
stock and other equity-based awards relating to the stock of a successor entity, or a parent or subsidiary thereof, with
appropriate adjustments as to the number of shares (disregarding any consideration that is not common stock) and option and
stock appreciation rights exercise prices.

  

18.5       Adjustments

 

Adjustments under this Section 18
related to Shares or securities of the Company shall be made by the Committee, whose determination in that respect shall be final,
binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions
resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. The Committee
shall determine the effect of a Change in Control upon Awards other than Options, SARs, Stock Units and Restricted Stock, and such
effect shall be set forth in the appropriate Award Agreement. The Committee may provide in the Award Agreements at the time of
grant, or any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those
described in Sections 18.1, 18.2, 18.3 and 18.4. This Section 18 does not limit the Company’s ability
to provide for alternative treatment of Awards outstanding under the Plan in the event of change in control events that do not
constitute a Change in Control.

 

18.6       No
Limitations on Company.

 

The making of Awards pursuant to the Plan
shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations,
or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or
any part of its business or assets (including all or any part of the business or assets of any Subsidiary or other Affiliate) or
engage in any other transaction or activity.

 

		19.	GENERAL PROVISIONS

 

19.1       Disclaimer
of Rights.

 

No provision in the Plan or in any Award
or Award Agreement shall be construed to confer upon any individual or entity the right to remain in the employ or Service of the
Company or an Affiliate, or to interfere in any way with any contractual or other right or authority of the Company or an Affiliate
either to increase or decrease the compensation or other payments to any individual or entity at any time, or to terminate any
employment or other relationship between any individual or entity and the Company or an Affiliate. In addition, notwithstanding
anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, in another agreement
with the Grantee, or otherwise in writing, no Award granted under the Plan shall be affected by any change of duties or position
of the Grantee, so long as such Grantee continues to provide Service. The obligation of the Company to pay any benefits pursuant
to the Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under
the conditions prescribed herein. The Plan and Awards shall in no way be interpreted to require the Company to transfer any amounts
to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms
of the Plan.

 

    	 	27	 

     

    

 

19.2       Nonexclusivity
of the Plan.

 

Neither the adoption of the Plan nor the
submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the
right and authority of the Company to adopt such other incentive compensation arrangements (which arrangements may be applicable
either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as
it may determine to be desirable.

 

19.3       Withholding
Taxes.

  

The Company or an Affiliate, as the case
may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes
of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to an Award
or upon the issuance of any Shares upon the exercise of an Option or pursuant to an Award. At the time of such vesting, lapse,
or exercise, the Grantee shall pay in cash to the Company or an Affiliate, as the case may be, any amount that the Company or an
Affiliate may reasonably determine to be necessary to satisfy such withholding obligation; provided, that if there is a same-day
sale of Shares subject to an Award, the Grantee shall pay such withholding obligation on the day on which such same-day sale is
completed. Subject to the prior approval of the Company or an Affiliate, which may be withheld by the Company or an Affiliate,
as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by
causing the Company or an Affiliate to withhold Shares otherwise issuable to the Grantee or (ii) by delivering to the Company
or an Affiliate Shares already owned by the Grantee. The Shares so delivered or withheld shall have an aggregate Fair Market Value
equal to such withholding obligations. The Fair Market Value of the Shares used to satisfy such withholding obligation shall be
determined by the Company or an Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee who
has made an election pursuant to this Section 19.3 may satisfy his or her withholding obligation only with Shares that
are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of Shares
that may be withheld from any Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting,
lapse of restrictions applicable to such Award or payment of Shares pursuant to such Award, as applicable, cannot exceed such number
of Shares having a Fair Market Value equal to the maximum statutory amount required by the Company or an Affiliate to be withheld
and paid to any such federal, state or local taxing authority with respect to such exercise, vesting, lapse of restrictions or
payment of Shares, or such lesser amount as the Company may specify or as may be necessary to avoid adverse accounting treatment.
Notwithstanding Section 2.20 or this Section 19.3, for purposes of determining taxable income and the amount
of the related tax withholding obligation pursuant to this Section 19.3, for any Shares subject to an Award that are
sold by or on behalf of a Grantee on the same date on which such shares may first be sold pursuant to the terms of the related
Award Agreement, the Fair Market Value of such shares shall be the sale price of such shares on such date (or if sales of such
shares are effectuated at more than one sale price, the weighted average sale price of such shares on such date), so long as such
Grantee has provided the Company or an Affiliate, or its designee or agent, with advance written notice of such sale.

  

19.4       Captions.

 

The use of captions in the Plan or any Award
Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award
Agreement.

  

    	 	28	 

     

    

 

19.5       Other
Provisions.

 

Each Award granted under the Plan may contain
such other terms and conditions not inconsistent with the Plan as may be determined by the Committee, in its sole discretion.

 

19.6       Number
and Gender.

 

With respect to words used in the Plan,
the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as the context
requires.

 

19.7       Severability.

 

If any provision of the Plan or any Award
Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions
hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable
in any other jurisdiction.

 

19.8       Governing
Law.

 

The validity and construction of the Plan
and the instruments evidencing the Awards hereunder shall be governed by, and construed and interpreted in accordance with, the
laws of the State of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer construction
or interpretation of the Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other
jurisdiction.

 

19.9       Code
Section 409A.

 

The Company intends to comply with Code
Section 409A, or an exemption to Code Section 409A, with regard to Awards hereunder that constitute deferred compensation
within the meaning of Code Section 409A, and the Plan and all Award Agreements shall be interpreted accordingly. To the extent
that the Company determines that a Grantee would be subject to the additional twenty percent (20%) tax imposed on certain nonqualified
deferred compensation plans pursuant to Code Section 409A as a result of any provision of any Award granted under the Plan,
such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature
of any such amendment shall be determined by the Board. Notwithstanding anything to the contrary in this Plan or any Award Agreement,
if a Grantee is deemed on the date of the Grantee’s termination of employment to be a “specified employee” within
the meaning of Code Section 409A(a)(2)(B), then, to the extent required by Code Section 409A, any payment or the provision
of any benefit pursuant to an Award that is considered deferred compensation under Code Section 409A and that is payable on
account of such Grantee’s “separation from service” shall not be made or provided until the date which is the
earlier of (i) the expiration of the six (6)-month period measured from the date of such “separation from service,”
and (ii) the date of the Grantee’s death. Upon the expiration of the foregoing delay period, all payments and benefits
delayed pursuant to this Section 19.9 (whether they would have otherwise been payable in a single sum or in installments
in the absence of such delay) shall be paid or reimbursed to the Grantee in a lump sum, and any remaining payments and benefits
due under this this Plan and any Award Agreement shall be paid or provided in accordance with the normal payment dates specified
for them therein.

 

* * *

 

    	 	29

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