Document:

Form of 2009 Equity Incentive Plan

 Exhibit 10.5 
  
  
 COLONY FINANCIAL, INC. 
 2009 EQUITY INCENTIVE PLAN 
  
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	1.	  	PURPOSE	  	1
	2.	  	DEFINITIONS	  	1
	3.	  	ADMINISTRATION OF THE PLAN	  	6
		  	3.1.	  	Board.	  	6
		  	3.2.	  	Committee.	  	6
		  	3.3.	  	Terms of Awards.	  	7
		  	3.4.	  	No Repricing.	  	8
		  	3.5.	  	Deferral Arrangement.	  	8
		  	3.6.	  	No Liability.	  	9
		  	3.7.	  	Stock Issuance/Book-Entry.	  	9
	4.	  	STOCK SUBJECT TO THE PLAN	  	9
		  	4.1.	  	Number of Shares of Stock Available for Awards.	  	9
		  	4.2.	  	Adjustments in Authorized Shares of Stock.	  	9
		  	4.3.	  	Share Usage.	  	9
	5.	  	EFFECTIVE DATE, DURATION AND AMENDMENTS	  	10
		  	5.1.	  	Effective Date.	  	10
		  	5.2.	  	Term.	  	10
		  	5.3.	  	Amendment and Termination of the Plan.	  	10
	6.	  	AWARD ELIGIBILITY AND LIMITATIONS	  	10
		  	6.1.	  	Service Providers and Other Persons.	  	10
		  	6.2.	  	Successive Awards.	  	10
	7.	  	AWARD AGREEMENT	  	11
	8.	  	TERMS AND CONDITIONS OF OPTIONS	  	11
		  	8.1.	  	Option Price.	  	11
		  	8.2.	  	Vesting.	  	11
		  	8.3.	  	Term.	  	11
		  	8.4.	  	Termination of Service.	  	11
		  	8.5.	  	Limitations on Exercise of Option.	  	12
		  	8.6.	  	Method of Exercise.	  	12
		  	8.7.	  	Rights of Holders of Options.	  	12
		  	8.8.	  	Delivery of Stock Certificates.	  	12
		  	8.9.	  	Transferability of Options.	  	12
		  	8.10.	  	Family Transfers.	  	12
		  	8.11.	  	Limitations on Incentive Stock Options.	  	13
		  	8.12.	  	Notice of Disqualifying Disposition.	  	13
	9.	  	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS	  	13
		  	9.1.	  	Right to Payment and Grant Price.	  	13
		  	9.2.	  	Other Terms.	  	14
		  	9.3.	  	Term.	  	14
		  	9.4.	  	Transferability of SARS.	  	14
		  	9.5.	  	Family Transfers.	  	14

  

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	10.	  	TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS	  	15
		  	10.1.	    	Grant of Restricted Stock or Stock Units.	  	15
		  	10.2.	    	Restrictions.	  	15
		  	10.3.	    	Restricted Stock Certificates.	  	15
		  	10.4.	    	Rights of Holders of Restricted Stock.	  	15
		  	10.5.	    	Rights of Holders of Stock Units.	  	16
		  		    	10.5.1.	  	Voting and Dividend Rights.	  	16
		  		    	10.5.2.	  	Creditor’s Rights.	  	16
		  	10.6.	    	Termination of Service.	  	16
		  	10.7.	    	Purchase of Restricted Stock and Shares of Stock Subject to Stock Units.	  	16
		  	10.8.	    	Delivery of Shares of Stock.	  	16
	11.	  	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS	  	17
	12.	  	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK	  	17
		  	12.1.	    	General Rule.	  	17
		  	12.2.	    	Surrender of Shares of Stock.	  	17
		  	12.3.	    	Cashless Exercise.	  	17
		  	12.4.	    	Other Forms of Payment.	  	18
	13.	  	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS	  	18
		  	13.1.	    	Dividend Equivalent Rights.	  	18
		  	13.2.	    	Termination of Service.	  	18
	14.	  	TERMS AND CONDITIONS OF PERFORMANCE AWARDS AND ANNUAL INCENTIVE AWARDS	  	18
		  	14.1.	    	Grant of Performance Awards and Annual Incentive Awards.	  	18
		  	14.2.	    	Value of Performance Awards and Annual Incentive Awards.	  	19
		  	14.3.	    	Earning of Performance Awards and Annual Incentive Awards.	  	19
		  	14.4.	    	Form and Timing of Payment of Performance Awards and Annual Incentive Awards.	  	19
		  	14.5.	    	Performance Conditions.	  	19
	15.	  	PARACHUTE LIMITATIONS	  	19
	16.	  	REQUIREMENTS OF LAW	  	20
		  	16.1.	    	General.	  	20
		  	16.2.	    	Rule 16b-3.	  	21
	17.	  	EFFECT OF CHANGES IN CAPITALIZATION	  	21
		  	17.1.	    	Changes in Stock.	  	21
		  	17.2.	    	Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control.	  	22
		  	17.3.	    	Change in Control in which Awards are not Assumed.	  	22
		  	17.4.	    	Change in Control in which Awards are Assumed.	  	23
		  	17.5.	    	Adjustments.	  	23
		  	17.6.	    	No Limitations on Company.	  	24
	18.	  	GENERAL PROVISIONS	  	24
		  	18.1.	    	Disclaimer of Rights.	  	24

  

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		  	18.2.	    	Nonexclusivity of the Plan.	  	24
		  	18.3.	    	Withholding Taxes.	  	24
		  	18.4.	    	Captions.	  	25
		  	18.5.	    	Other Provisions.	  	25
		  	18.6.	    	Number and Gender.	  	25
		  	18.7.	    	Severability.	  	25
		  	18.8.	    	Governing Law.	  	25
		  	18.9.	    	Section 409A of the Code.	  	25

  

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 COLONY FINANCIAL, INC. 
 2009 EQUITY INCENTIVE PLAN 
 Colony Financial, Inc., a Maryland corporation (the
“Company”), sets forth herein the terms of its 2009 Equity Incentive Plan (the “Plan”), as follows: 
 1. PURPOSE 
 This Plan is intended to (a) provide incentive to 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) provide a means of obtaining, rewarding and retaining key personnel of the Company and its manager and affiliates of the
manager. 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 and cash bonus 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 or the Manager, respectively, any company or other trade or business that controls, is controlled by or is under common control with the Company or the Manager within the
meaning of Rule 405 of Regulation C under the Securities Act, including, without limitation, any Subsidiary. For purposes of granting stock options or stock appreciation rights, an entity may not be considered an Affiliate of the Company or the
Manager, respectively, unless the Company or the Manager 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 stock 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 year (the Company’s fiscal year, unless otherwise specified by the Board). 
 2.3 “Applicable Entity” means the Company, its Affiliates or the Manager and its Affiliates. 
 2.4
“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. 

 2.5 “Award” means a grant of an Option, Stock Appreciation Right, Restricted Stock,
Unrestricted Stock, Stock Units, Dividend Equivalent Right, Performance Award, Annual Incentive Award, or Other Equity-Based Award under the Plan. 
 2.6 “Award Agreement” means the agreement between the Company and a Grantee that evidences and sets out the terms and conditions of an Award. 
 2.7 “Benefit Arrangement” shall have the meaning set forth in Section 15. 
 2.8
“Board” means the Board of Directors of the Company. 
 2.9 “Change in Control” means:

 (1) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty percent (50%) of either (i) the then
outstanding shares of common stock, par value $0.01 per share, of the Company (the “Outstanding Company Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (1), the following acquisitions shall not constitute a Change in Control: (i) any
acquisition by the Company; (ii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation or trust controlled by the Company; and (iii) any acquisition by any entity pursuant
to a transaction which complies with clauses (i), (ii) and (iii) of subsection (3) of this Section 2.9; or 
 (2)
Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent
to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, 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 other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or 
 (3) Consummation of a
reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case unless, following such Business Combination, (i) all or
substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more
than fifty percent (50%) of, respectively, the then outstanding common shares and the combined voting power of the then 

  

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outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, a corporation that as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Stock and Outstanding Company Voting Securities, as the case may be, and (ii) no Person (excluding any corporation or trust resulting from
such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation or trust resulting from such Business Combination) beneficially owns, directly or indirectly, thirty-five percent (35%) or more of the
then outstanding shares of the corporation or trust resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation or trust except to the extent that such ownership existed prior
to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation or trust resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such Business Combination; or 
 (4) Approval by the stockholders of the
Company of a complete liquidation or dissolution of the Company and consummation of such transaction. 
 2.10 “Code” means
the Internal Revenue Code of 1986, as now in effect or as hereafter amended. 
 2.11 “Committee” means a committee of, and
designated from time to time by resolution of, the Board, which shall be constituted as provided in Section 3.2 (or, if no Committee has been designated, the Board itself). 
 2.12 “Company” means Colony Financial, Inc., a Maryland corporation. 
 2.13 “Disability” means 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. 
 2.14 “Dividend Equivalent Right” means a right, granted to a Grantee under Section 13, to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect
to a specified number of shares of Stock, or other periodic payments. 
 2.15 “Effective Date” means September
[    ], 2009, the date the Plan was approved by the Board. 
  

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 2.16 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as
hereafter amended. 
 2.17 “Fair Market Value” means the value of a share of Stock, determined as follows: if on the Grant
Date the shares of Stock are listed on an established national or regional stock exchange, or are publicly traded on an established securities market, the Fair Market Value of a share of Stock shall be the closing price of the Stock on such exchange
or in such market (if there is more than one such exchange or market the Board shall determine the appropriate exchange or market) on (i) the date of grant (if the grant is made before trading commences on the exchange or securities market or
while such exchange or securities market is open for trading) or (ii) the next trading day after the date of grant (if the grant is made after the exchange or securities market closes on a trading day or if the grant is made on a day that is
not a trading day on such exchange or securities market). If there is no such reported closing price on the applicable date as specified in the immediately preceding sentence, the Fair Market Value shall be the mean between the highest bid and
lowest asked prices or between the high and low sale prices on the applicable date as specified in the immediately preceding sentence. If on the Grant Date the Stock is not listed on such an exchange or traded on such a market, Fair Market Value
shall be the value of the Stock as determined by the Board by the reasonable application of a reasonable valuation method, in a manner consistent with Code Section 409A. 
 2.18 “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. 
 2.19
“Grant Date” means, as determined by the Board, the latest to occur of (i) the date as of which the Company completes the corporate 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 Board. 
 2.20
“Grantee” means a person who receives or holds an Award under the Plan. 
 2.21 “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. 
 2.22 “Manager” means the entity, if any, providing management services to the Company, currently Colony Financial Manager, LLC, or any
entity providing management services to the Company. 
 2.23 “Non-qualified Stock Option” means an Option that is not an
Incentive Stock Option. 
  

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 2.24 “Option” means an option to purchase one or more shares of Stock pursuant to the
Plan. 
 2.25 “Option Price” means the exercise price for each share of Stock subject to an Option. 
 2.26 “Other Agreement” shall have the meaning set forth in Section 15. 
 2.27 “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, Stock, other than an Option, Stock Appreciation Right, Restricted Stock, Unrestricted Stock, Stock Units, Dividend Equivalent Right, Performance Award or Annual Incentive Award.

 2.28 “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. 
 2.29 “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. 
 2.30 “Plan” means this Colony Financial, Inc. 2009 Equity Incentive Plan, as amended from time to time. 
 2.31
“Purchase Price” means the purchase price for each share of Stock pursuant to a grant of Restricted Stock, Stock Units or Unrestricted Stock. 
 2.32 “Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange Act. 
 2.33 “Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to Section 10. 
 2.34 “SAR Exercise Price” means the per share exercise price of a SAR granted to a Grantee under Section 9. 
 2.35 “Securities Act” means the Securities Act of 1933, as now in effect or as hereafter amended. 
 2.36 “Service” means service as a Service Provider to any Applicable Entity. 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 any Applicable Entity. Subject to the preceding sentence, whether a termination of Service shall have occurred for purposes of the Plan shall be determined by the
Board, 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. 
  

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 2.37 “Service Provider” means an employee, officer, director, or a consultant or adviser
(who is a natural person) currently providing services to the Company or any of its Affiliates, the Manager, or an employee currently providing services to the Manager or any of its Affiliates. 
 2.38 “Stock” means the common stock, par value $0.01 per share, of the Company. 
 2.39 “Stock Appreciation Right” or “SAR” means a right granted to a Grantee under Section 9. 
 2.40 “Stock Unit” means a bookkeeping entry representing the equivalent of one share of Stock awarded to a Grantee pursuant to
Section 10. 
 2.41 “Subsidiary” means any “subsidiary corporation” of the Company or Manager within
the meaning of Code Section 424(f). 
 2.42 “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 stock ownership, the attribution rules of Code Section 424(d) shall be
applied. 
 2.43 “Unrestricted Stock” shall have the meaning set forth in Section 11. 
 3. ADMINISTRATION OF THE PLAN 
 3.1. Board. 

 The Board shall have such powers and authorities related to the administration of the Plan as are consistent with the Company’s
certificate of incorporation and by-laws and Applicable Laws. The Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have
full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan,
any Award or any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the Board present at a meeting or by unanimous consent of the Board executed in writing in accordance with the
Company’s certificate of incorporation and by-laws and Applicable Laws. The interpretation and construction by the Board of any provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. 
 3.2. Committee. 
 The Board from time
to time may delegate to the Committee such powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 above and other applicable provisions, as the Board shall determine, consistent
with the certificate of incorporation and by-laws of the Company and Applicable Laws. 
 (i) Except as provided in Subsection
(ii) and except as the Board may otherwise determine, the Committee, if any, appointed by the Board to administer the Plan 

  

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shall consist of two or more directors of the Company who: (a) meet such requirements as may be established from time to time by the Securities and
Exchange Commission for plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act and who (b) comply with the independence requirements of the stock exchange on which the Common Stock is listed.

 (ii) The Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the
Company, who may administer the Plan with respect to employees or other Service Providers who are not executive officers (as defined under Rule 3b-7 of the Exchange Act) or directors of the Company, may grant Awards under the Plan to such employees
or other Service Providers, and may determine all terms of such Awards, subject to the requirements of Rule 16b-3 and the rules of the New York Stock Exchange. 
 In the event that the Plan, any Award or any Award Agreement entered into hereunder provides for any action to be taken by or determination to be made by the Board, such action may be taken or such determination may
be made by a Committee if the power and authority to do so has been delegated to such Committee by the Board as provided for in this Section. Unless otherwise expressly determined by the Board, any such action or determination by the Committee shall
be final, binding and conclusive. To the extent permitted by law, the Committee may delegate its authority under the Plan to a member of the Board. 
 3.3. Terms of Awards. 
 Subject to the other terms and conditions of the Plan, the Board 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 of Stock 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 of Stock 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; and 
 (vi) amend, modify, or supplement the terms of any outstanding Award. 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. 
  

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 Any Awards granted pursuant to this Plan is subject to mandatory repayment by the Grantee to the Company
to the extent the Grantee is or in the future becomes subject to any Company “clawback” or recoupment policy that requires the repayment by the Grantee to the Company of compensation paid by the Company to the Grantee in the event that the
Grantee fails to comply with, or violates, the terms or requirements of such policy. 
 Furthermore, if the Company is required to prepare an
accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, the individuals subject to automatic forfeiture under Section 304 of the
Sarbanes-Oxley Act of 2002 and any Grantee who knowingly engaged in the misconduct, was grossly negligent in engaging in the misconduct, knowingly failed to prevent the misconduct or was grossly negligent in failing to prevent the misconduct, shall
reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred)
of the financial document that contained such material noncompliance. 
 Notwithstanding any other provision of this Plan or any provision of
any Award Agreement, if the Company is required to prepare an accounting restatement, then Grantees shall forfeit any cash or Stock received in connection with an Award (or an amount equal to the fair market value of such Stock on the date of
delivery if the Grantee no longer holds the shares of Stock) if pursuant to the terms of the Award Agreement for such Award, the amount of the Award earned or the vesting in the Award was explicitly based on the achievement of pre-established
performance goals set forth in the Award Agreement (including earnings, gains, or other criteria) that are later determined, as a result of the accounting restatement, not to have been achieved. 
 3.4. No Repricing. 
 Notwithstanding
anything in this Plan to the contrary, the Board shall not have the authority, without stockholder approval, (A) to accept the surrender of outstanding Options when the Fair Market Value of a share of Stock is less than the exercise price and
grant new Options or other Awards in substitution for them, (B) to reduce the exercise price of any outstanding Option, or (C) to take any other action that would be treated as a repricing under the rules of the stock exchange on which the
Stock is listed; provided, that appropriate adjustments shall be made to outstanding Options pursuant to Section 17. 
 3.5.
Deferral Arrangement. 
 The Board 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 equivalents, including converting such credits into deferred Stock equivalents. Any such deferrals shall be
made in a manner that complies with Code Section 409A. 
  

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 3.6. No Liability. 
 No member of the Board or the Committee 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. Stock Issuance/Book-Entry. 
 Notwithstanding any provision of this Plan to the contrary, the issuance of the shares of Stock under the Plan may be evidenced in such a manner as the Board, in its discretion, deems appropriate, including, without limitation, book-entry
registration or issuance of one or more share certificates. 
 4. STOCK SUBJECT TO THE PLAN 
 4.1. Number of Shares of Stock Available for Awards. 
 Subject to adjustment as provided in Section 17, the number of shares of Stock available for issuance under the Plan shall be 1,275,000. Subject to adjustment as provided in Section 17, the
number of shares of Stock available for issuance as Incentive Stock Options shall be 1,275,000. Shares of Stock issued or to be issued under the Plan shall be authorized but unissued shares; or, to the extent permitted by Applicable Laws, issued
shares that have been reacquired by the Company. 
 4.2. Adjustments in Authorized Shares of Stock. 
 The Board 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 of Stock 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 of Stock subject to awards before and after the substitution. Available shares under a shareholder 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 of Stock available under the Plan, subject to applicable stock exchange requirements. 
 4.3. Share Usage.

 Shares of Stock covered by an Award shall be counted as used as of the Grant Date. Any shares of Stock that are subject to Awards shall be
counted against the limit set forth in Section 4.1 as one (1) share of Stock for every one (1) share of Stock subject to an Award. With respect to SARs, the number of shares of Stock subject to an award of SARs will be counted
against the aggregate number of shares of Stock available for issuance under the Plan regardless of the number of shares of Stock actually issued to settle the SAR upon exercise. If any shares of Stock 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 of Stock subject thereto, then the number of shares of Stock counted against the aggregate number of shares of Stock 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 of Stock 

  

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were counted against the limit set forth in Section 4.1. The number of shares of Stock available for issuance under the Plan shall not be
increased by (i) any shares of Stock tendered or withheld or Award surrendered in connection with the purchase of shares of Stock upon exercise of an Option as described in Section 12.2, (ii) any shares of Stock deducted or
delivered from an Award payment in connection with the Company’s tax withholding obligations as described in Section 18.3 or (iii) any shares of Stock 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, subject to approval of the Plan by the Company’s
stockholders within one (1) year of the Effective Date. Upon approval of the Plan by the stockholders of the Company as set forth above, all Awards made under the Plan on or after the Effective Date shall be fully effective as if the
stockholders of the Company had approved the Plan on the Effective Date. If the stockholders fail to approve the Plan within one (1) year of the Effective Date, any Awards made hereunder shall be null and void and of no effect. 
 5.2. Term. 
 The Plan shall terminate
automatically ten (10) years after the Effective Date and may be terminated on any earlier date as provided in Section 5.3. 
 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 of Stock 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 applicable stock
exchange listing requirements. 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. 
 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 Board 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 Board. 
 6.2. Successive Awards. 
 An eligible person may receive more than one Award, subject to such
restrictions as are provided herein. 
  

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 7. AWARD AGREEMENT 
 Each Award granted pursuant to the Plan shall be evidenced by an Award Agreement, in such form or forms as the Board 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. 
 8. TERMS AND CONDITIONS OF OPTIONS 

8.1. Option Price. 
 The Option
Price of each Option shall be fixed by the Board and stated in the Award Agreement evidencing such Option. The Option Price of each Option shall be at least the Fair Market Value of a share of Stock 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 of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock. 
 8.2. Vesting. 
 Subject to Sections 8.3 and 17.3, each Option granted under the Plan shall
become exercisable at such times and under such conditions as shall be determined by the Board and stated in the Award Agreement. For purposes of this Section 8.2, fractional numbers of shares of Stock 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 of Stock 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 Board 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 Board, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 
  

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 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 17 which results in termination of the Option. 
 8.6. Method of Exercise. 
 Subject to the terms of Section 12 and
Section 18.3, 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 Board. Such notice shall specify the number of shares of Stock with respect to which the Option is being exercised and shall be accompanied by payment in full of the Option Price of the
shares of Stock 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. 
 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 of Stock or to direct the voting of the subject shares of Stock) until the shares of Stock covered thereby are fully paid and issued to him. Except as provided in Section 17, 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 Stock
Certificates. 
 Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be
entitled to the issuance of a stock certificate or certificates evidencing his or her ownership of the shares of Stock subject to the Option. 
 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 and by the Board, 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 

  

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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 of Stock 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 of Stock 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 of Stock 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. 
 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 of Stock on the date of exercise over (B) the SAR Exercise Price as determined by the Board. The Award Agreement for a SAR shall specify the SAR Exercise Price, which shall be at least the Fair Market Value of a share of
Stock on the date of grant. 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 of Stock on the SAR Grant Date. 
  

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 9.2. Other Terms. 
 The Board shall determine at the date of grant 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 of Stock 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 Board 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 Board, 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 of Stock 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.  
  

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 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 no consideration (other than par value of the shares of Stock which is deemed paid by Services already rendered 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 Board 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 Board 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. 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 Board with respect to such Restricted Stock or
Stock Units. 
 10.3. Restricted Stock Certificates. 
 The Company shall issue, in the name of each Grantee to whom Restricted Stock have been granted, stock certificates representing the total number of Restricted Stock granted to the Grantee, as soon as reasonably
practicable after the Grant Date. The Board 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 lapse and the 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 makes appropriate reference to the restrictions imposed under the Plan and the Award Agreement. 
 10.4. Rights of Holders of Restricted Stock. 
 Unless the Board otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such shares of Stock and the right to receive any dividends declared or paid with respect to such shares of Stock. The Board
may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and restrictions applicable to such Restricted Stock. All distributions, if any, received
by a Grantee with respect to Restricted Stock as a result of any stock split, stock dividend, combination of stock, or other similar transaction shall be subject to the restrictions applicable to the original Grant. 
  

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 10.5. Rights of Holders of Stock Units. 
 10.5.1. Voting and Dividend Rights. 
 Holders of Stock Units shall have no rights as stockholders of the Company. The Board may provide in an Award Agreement evidencing a grant of Stock Units that the holder of such Stock Units shall be entitled to receive, upon the
Company’s payment of a cash dividend on its outstanding shares of Stock, a cash payment for each Stock Unit held equal to the per-stock dividend paid on the shares of Stock. Such Award Agreement may also provide that such cash payment will be
deemed reinvested in additional Stock Units at a price per unit equal to the Fair Market Value of a share of Stock on the date that such dividend is paid. 
 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 Board 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.
Purchase of Restricted Stock and Shares of Stock Subject to Stock Units. 
 The Grantee shall be required, to the extent required
by Applicable Laws, to purchase the Restricted Stock or shares of Stock subject to vested Stock Units from the Company at a Purchase Price equal to the greater of (i) the aggregate par value of the shares of Stock represented by such Restricted
Stock or Stock Units or (ii) the Purchase Price, if any, specified in the Award Agreement relating to such Restricted Stock or Stock Units. The Purchase Price shall be payable in a form described in Section 12 or, in the discretion
of the Board, in consideration for past or future Services rendered to the Company or an Affiliate of the Company. 
 10.8.
Delivery of Shares of Stock. 
 Upon the expiration or termination of any restricted period and the satisfaction of any other conditions
prescribed by the Board, the restrictions applicable to Restricted Stock or Stock Units settled in shares of Stock shall lapse, and, unless otherwise provided in the Award Agreement, a stock certificate for such shares of Stock shall be delivered,
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 of Stock represented by the Stock Unit has been delivered. 
  

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 11. TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS 
 The Board may, in its sole discretion, grant (or sell at par value or such other higher purchase price determined by the Board) an Unrestricted Stock
Award to any Grantee pursuant to which such Grantee may receive shares of Stock free of any restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted or sold as described in the preceding sentence in
respect of past services and other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee. 
 The
Board may, in its sole discretion, grant Awards to Participants in the form of Other Equity-Based Awards, as deemed by the Board to be consistent with the purposes of the Plan. Awards granted pursuant to this paragraph may be granted with vesting,
value and/or payment contingent upon the attainment of one or more performance goals. The Board shall determine the terms and conditions of such Awards at the date of grant or thereafter. Unless the Board 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. 
 12. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK 
 12.1. General Rule. 
 Payment of the Option Price for the shares of Stock 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 of Stock. 
 To the extent the Award Agreement so provides, payment of the Option Price for shares of Stock 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 of Stock, 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. 
 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 of Stock purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable to the Board) of an irrevocable direction to a licensed securities broker
acceptable to the Company to sell shares of Stock 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 18.3, or, with the consent of the Company, by
issuing the number of shares of Stock equal in value to the difference between the Option Price and the Fair Market Value of the shares of Stock subject to the portion of the Option being exercised. 
  

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 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 of Stock
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, Service to the Company or an
Affiliate of the Company. 
 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 of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such
shares of Stock had been issued to and held by the recipient. A Dividend Equivalent Right may be granted hereunder to any Grantee. The terms and conditions of Dividend Equivalent Rights shall be specified in the grant. Dividend equivalents credited
to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date
of reinvestment. Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment or installments, all determined in the sole discretion of the Board. A Dividend Equivalent Right granted as a
component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other award, and that such Dividend Equivalent Right shall expire or be forfeited
or annulled under the same conditions as such other award. A Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other award. 
 13.2. Termination of Service. 
 Except
as may otherwise be provided by the Board 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 this Plan, the Board, 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. 
  

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 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 Board at the time of grant. The Board 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 this 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 Board and as evidenced in the Award Agreement. Subject to
the terms of this Plan, the Board, in its sole discretion, may pay earned Performance Awards in the form of cash or in shares of Stock (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 of Stock 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 Board. The Board may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. 
 15. PARACHUTE LIMITATIONS 
 If the Grantee is a
“disqualified individual,” as defined in Code Section 280G(c), then, notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by a Grantee with an
Applicable Entity, except an agreement, contract, or understanding that expressly addresses Code Section 280G or Code Section 4999 (an “Other Agreement”), 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 this 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 this Plan, all Other Agreements, and all Benefit Arrangements, would cause any exercise, vesting, payment or benefit to the Grantee under this Plan to be considered a “parachute payment” within the meaning of
Code Section 280G(b)(2) as then in effect (a “Parachute Payment”) and  
  

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 (ii) if, as a result of receiving such Parachute Payment, the aggregate after-tax amounts
received by the Grantee from the Company under this 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 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. 
 16. REQUIREMENTS OF LAW 
 16.1. General. 
 No participant in the
Plan will be permitted to acquire, or will have any right to acquire, shares of Stock 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 sell or issue any shares of Stock under any Award if the sale or issuance of such shares of Stock would constitute a violation by the Grantee, any other individual or entity exercising an Option, or any
Applicable Entity 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
listing, registration or qualification of any shares of Stock 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 of Stock hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual or entity exercising an Option pursuant to such Award unless such 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 of Stock or the delivery of any shares of Stock underlying an Award, unless a registration statement under such Act is in effect with respect to the shares of Stock
covered by such Award, the Company shall not be required to sell or issue such shares of Stock unless the Board has received evidence satisfactory to it that the Grantee or any other individual or entity exercising an Option may acquire such shares
of Stock pursuant to an 

  

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exemption from registration under the Securities Act. Any determination in this connection by the Board 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 of Stock pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option (or SAR that may be settled in shares of Stock) shall not be
exercisable until the shares of Stock covered by such Option (or SAR) are registered or are exempt from 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. 
 16.2. 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 Board 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 law and deemed advisable by the Board, 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 this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the
revised exemption or its replacement. 
 17. EFFECT OF CHANGES IN CAPITALIZATION 
 17.1. Changes in Stock. 
 If the number
of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number or kind of stock or other securities of the Company on account of any recapitalization, reclassification, stock
split, reverse split, combination of stock, exchange of stock, stock dividend or other distribution payable in capital stock, or other increase or decrease in such stock effected without receipt of consideration by the Company occurring after the
Effective Date, the number and kinds of shares of stock for which grants of Options and other Awards may be made under the Plan, including, without limitation, the limits set forth in Section 6.3, shall be adjusted proportionately and
accordingly by the Company in a manner deemed equitable by the Board. 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 

  

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

 Subject to Section 17.3, 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 of Stock 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 of Stock 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, 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 17.2, Stock Units shall be adjusted so as to apply to the securities that a holder of the number of shares of Stock subject to the Stock Units would have been entitled to receive immediately
following such transaction. 
 17.3. Change in Control in which Awards are not Assumed. 
 Upon the occurrence of a Change in Control in which outstanding Options, SARs, Stock Units, and Restricted Stock are not being assumed or continued:

 (i) all outstanding Restricted Stock shall be deemed to have vested, and all Stock Units shall be deemed to have vested and the shares of
Stock 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
Board 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 Board 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 of Stock and, in the case of Options or SARs, equal to the product of
the number of shares of Stock subject to the Option or SAR (the “Award Stock”) multiplied by the amount, if any, by which (I) the formula or fixed price per share paid to holders of shares of Stock pursuant to such transaction exceeds
(II) the Option Price or SAR Exercise Price applicable to such Award Stock. 
  

 - 22 - 

 (iii) for Performance Awards denominated in Stock, if less than half of the Performance Period has
lapsed, the Awards shall be converted into Restricted Stock 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 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 assuming target
performance has been achieved (or Unrestricted Stock if no further restrictions apply). 
 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 Board shall send notice of an event that will result in such a termination to all individuals and entities who
hold Options and SARs not later than the time at which the Company gives notice thereof to its stockholders. 
 17.4. Change in Control in
which Awards are Assumed. 
 The Plan, Options, SARs, Stock Units, and Restricted Stock 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, and Restricted
Stock theretofore granted, or for the substitution for such Options, SARs, Stock Units, and Restricted Stock for new common stock options and stock appreciation rights and new common Stock Units and Restricted Stock 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. 
 17.5. Adjustments. 
 Adjustments under
this Section 17 related to shares of Stock or securities of the Company shall be made by the Board, 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 Board 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 Board 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 17.1, 17.2, 17.3 and 17.4. This Section 17 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 are not Change in Controls. 
  

 - 23 - 

 17.6. 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. 
 18. GENERAL PROVISIONS 
 18.1. 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 any Applicable Entity, or to interfere in any way with any contractual or other right or authority of the Applicable Entity 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 Applicable Entity. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, 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 this 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
director or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan. 
 18.2.
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 Board 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 the Board in its discretion determines desirable, including, without limitation, the granting of stock options otherwise than under the Plan. 
 18.3. Withholding Taxes. 
 Any
Applicable Entity, 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 of Stock 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 Applicable Entity, as the
case may be, any amount that the Applicable Entity may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Applicable Entity, which may be withheld by the Applicable Entity, 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 Applicable Entity to withhold shares of Stock otherwise issuable to the Grantee or (ii) by delivering to the
Applicable Entity shares of Stock already owned by the Grantee. The shares of Stock so delivered 

  

 - 24 - 

 
or withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the shares of Stock used to satisfy
such withholding obligation shall be determined by the Applicable Entity 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 18.3 may satisfy his or her
withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of shares of Stock 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 of Stock pursuant to such Award, as applicable, cannot exceed such number of shares of Stock having
a Fair Market Value equal to the minimum statutory amount required by the Applicable Entity 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 of Stock. 
 18.4. Captions. 
 The use of captions in this 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. 
 18.5. 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 Board, in its sole discretion. 
 18.6. Number and Gender. 
 With respect to words used in this Plan, the singular form shall include
the plural form, the masculine gender shall include the feminine gender, etc., as the context requires. 
 18.7. 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. 
 18.8. Governing Law. 
 The validity
and construction of this Plan and the instruments evidencing the Awards hereunder shall be governed by 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 this Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction. 
 18.9. Section 409A of the Code. 
 The Company intends to comply with Code Section 409A (“Section 409A”),
or an exemption to Section 409A, with regard to Awards hereunder that constitute nonqualified 

  

 - 25 - 

 
deferred compensation within the meaning of Section 409A. 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 Section 409A as a result of any provision of any Award granted under this 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. 
 To record
adoption of the Plan by the Board as of September [    ], 2009, and approval of the Plan by the stockholders on September [    ], 2009, the Company has caused its authorized officer to execute
the Plan. 
  

			
	COLONY FINANCIAL, INC.
		
	By:	 	  

	Title:	 	  

  

 - 26 -Form of Restricted Common Stock Award Agreement

 Exhibit 10.6 
 COLONY FINANCIAL, INC. 
 2009 EQUITY INCENTIVE PLAN 
 RESTRICTED STOCK AGREEMENT 
 Colony Financial, Inc., a
Maryland corporation (the “Company”), hereby grants its shares of common stock, par value $0.01 (“Restricted Stock”) to the Grantee named below, subject to the vesting and other conditions set forth below. Additional terms and
conditions of the grant are set forth in this cover sheet and in the attachment (collectively, the “Agreement”) and in the Company’s 2009 Equity Incentive Plan (as amended from time to time, the “Plan”). 
 Name of Grantee:
                             
 Grantee’s Social Security Number:
        -        -             
 Number of Restricted Shares:      
 Grant Date:
                     
 Vesting Schedule: The
Restricted Shares shall vest on each vesting date set forth below: 
  

	 	•	 	 [insert#] on [Vest Date] 

  

	 	•	 	 [insert#] on [Vest Date] 

  

	 	•	 	 [insert#] on [Vest Date] 

 Purchase Price per Share
of Stock: $        .     
 By your signature below, you
agree to all of the terms and conditions described herein, in the attached Agreement and in the Plan, a copy of which is also attached. You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any
provision of this cover sheet or Agreement should appear to be inconsistent. 
  

							
	Grantee:	  	  
	    	Date:	  	  

		  	(Signature)	    		  	
				
	Company:	  	  
	    	Date:	  	  

		  	(Signature)	    		  	
	Title:	  		    		  	

 Attachment 
 This is not a stock certificate or a negotiable instrument. 

 COLONY FINANCIAL, INC. 
 2009 EQUITY INCENTIVE PLAN 
 RESTRICTED STOCK AGREEMENT 
  

			
	Restricted Stock	  	This Agreement evidences an award of shares of Stock in the number set forth on the cover sheet and subject to the vesting and other conditions set forth herein, in the Plan and on the cover
sheet (the “Restricted Stock”). The purchase price is deemed paid by your prior services to the Company.
		
	Transfer of Unvested Restricted Stock	  	Unvested Restricted Stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered, whether by operation of law or otherwise, nor may the Restricted Stock be made
subject to execution, attachment or similar process. If you attempt to do any of these things, the Restricted Stock will immediately become forfeited.
		
	Issuance and Vesting	  	 The Company will issue your Restricted Stock in the name set forth on the cover sheet.
  
 Your rights under this Restricted Stock grant and this Agreement shall vest in accordance with the
vesting schedule set forth on the cover sheet so long as you continue in Service on the vesting dates set forth on the cover sheet.
  
 Notwithstanding your vesting schedule, the Restricted Stock will become 100% vested upon your termination of Service due to your death or Disability.

		
	Change in Control	  	 Notwithstanding the vesting schedule set forth above, upon the consummation of a Change in Control, the Restricted Stock will become 100% vested
(i) if the Restricted Stock is not assumed, or equivalent restricted securities are not substituted for the Restricted Stock, by the Company or its successor, or (ii) if assumed or substituted for, upon your Involuntary Termination within the
12-month period following the consummation of the Change in Control.
  
 “Involuntary Termination” means termination of your Service by reason of (i) your involuntary dismissal by the Company or its successor for reasons other than Cause; or (ii) your voluntary resignation for Good Reason as
defined in any applicable employment or severance agreement, plan, or arrangement between you and the Company, or if none, then as set forth in the Plan following (x) a substantial adverse alteration in your title or responsibilities from those in
effect immediately prior to the Change in Control; (y) a reduction in your annual base salary as of immediately prior to the Change in Control (or as the same may be increased from time to time) or a material reduction in your annual target bonus
opportunity as of 

  

 2 

			
		  	immediately prior to the Change in Control; or (z) the relocation of your principal place of employment to a location more than 35 miles from your principal place of employment as of the
Change in Control or the Company’s requiring you 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 your business travel obligations as of immediately prior to the Change in Control. To qualify as an “Involuntary Termination” you must provide notice to the Company of any of the foregoing occurrences within 90 days of the
initial occurrence and the Company shall have 30 days to remedy such occurrence.
		
	Evidence of Issuance	  	The issuance of the Shares under the grant of Restricted Stock evidenced by this Agreement shall be evidenced in such a manner as the Company, in its discretion, deems appropriate, including,
without limitation, book-entry, registration or issuance of one or more share certificates, with any unvested Restricted Stock bearing the appropriate restrictions imposed by this Agreement. As your interest in the Restricted Stock vests, the
recordation of the number of shares of Restricted Stock attributable to you will be appropriately modified if necessary.
		
	Forfeiture of Unvested Restricted Stock	  	Unless the termination of your Service triggers accelerated vesting of your Restricted Stock or other treatment pursuant to the terms of this Agreement, the Plan, or any other written
agreement between an Affiliated Entity and you, you will automatically forfeit to the Company all of the unvested Restricted Stock in the event you are no longer providing Service.
		
	Forfeiture of Rights	  	 If you should take actions in violation or breach of or in conflict with any non-competition agreement, any agreement prohibiting solicitation of
employees or clients of any the Company or any Affiliate or any confidentiality obligation with respect to the Company or any Affiliate or otherwise in competition with the Company or any Affiliate the Company has the right to cause an immediate
forfeiture of your rights to the Restricted Stock awarded under this Agreement and the Restricted Stock shall immediately expire.
  
 In addition, if you have vested in Restricted Stock during the two year period prior to your actions, you will owe the Company a cash payment (or forfeiture of shares of
Stock) in an amount determined as follows: (1) for any shares of Stock that you have sold prior to receiving notice from the Company, the amount will be the proceeds received from the sale(s), and (2) for any shares of Stock that you still own, the
amount will be the number of shares of Stock owned times the Fair Market Value of the shares of Stock on the date you receive notice from the Company (provided, that the Company may require you to satisfy your payment obligations hereunder either by
forfeiting and returning to the Company the Restricted Stock or any other shares of Stock or making a cash payment or a combination of these methods as determined by the Company in its sole discretion).

  

 3 

			
	Leaves of Absence	  	 For purposes of this Agreement, your Service does not terminate when you go on a bona fide leave of absence that was approved by your
employer in writing if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. Your Service terminates in any event when the approved leave ends unless you immediately return
to active employee work.
  
 Your employer may determine, in its discretion, which leaves
count for this purpose, and when your Service terminates for all purposes under the Plan in accordance with the provisions of the Plan. Notwithstanding the foregoing, the Company may determine, in its discretion, that a leave counts for this purpose
even if your employer does not agree.

		
	Section 83(b) Election	  	 Under Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), the difference between the purchase price paid
for the shares of Stock and their fair market value on the date any forfeiture restrictions applicable to such shares lapse will be reportable as ordinary income at that time. For this purpose, “forfeiture restrictions” include the
forfeiture as to unvested Stock described above. You may elect to be taxed at the time the shares are acquired, rather than when such shares cease to be subject to such forfeiture restrictions, by filing an election under Section 83(b) of the Code
with the Internal Revenue Service within thirty (30) days after the Grant Date. You will have to make a tax payment to the extent the purchase price is less than the fair market value of the shares on the Grant Date. No tax payment will have to be
made to the extent the purchase price is at least equal to the fair market value of the shares on the Grant Date. The form for making this election is attached as Exhibit A hereto. Failure to make this filing within the thirty (30) day period
will result in the recognition of ordinary income by you (in the event the fair market value of the shares as of the vesting date exceeds the purchase price) as the forfeiture restrictions lapse.
  
 YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY
ELECTION UNDER SECTION 83(b), EVEN IF YOU REQUEST THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON YOUR BEHALF. YOU ARE RELYING SOLELY ON YOUR OWN ADVISORS WITH RESPECT TO THE DECISION AS TO WHETHER OR NOT TO FILE ANY 83(b) ELECTION.

  

 4 

			
	Withholding Taxes	  	You agree as a condition of this grant that you will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the vesting or receipt of the Restricted
Stock. In the event that the any Applicable Entity determines that any federal, state, local or foreign tax or withholding payment is required relating to the vesting or receipt of shares of Stock arising from this grant, the Applicable Entity shall
have the right to require such payments from you, or withhold such amounts from other payments due to you from the Applicable Entity (including withholding the delivery of vested shares of Stock otherwise deliverable under this
Agreement).
		
	Retention Rights	  	This Agreement and the grant evidenced hereby do not give you the right to be retained by the any Applicable Entity in any capacity. Unless otherwise specified in an employment or other
written agreement between the Applicable Entity and you, the Applicable Entity reserves the right to terminate your Service at any time and for any reason.
		
	Stockholder Rights	  	 You will be entitled to receive, upon the Company’s payment of a cash dividend on outstanding shares, an amount of Restricted Stock equal to
the per-share dividend paid on the Restricted Stock that you hold as of the record date for such dividend, which shall be subject to the same vesting, forfeiture and other conditions as the associated Restricted Stock. No adjustments are made for
dividends or other rights if the applicable record date occurs before an appropriate book entry is made (or your certificate is issued), except as described in the Plan.
  

Your grant shall be subject to the terms of any applicable agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate
activity.

		
	Legends	  	 If and to the extent that the Stock is represented by certificates rather than book entry, all certificates representing the Stock issued under
this grant shall, where applicable, have endorsed thereon the following legends:
  
 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING, FORFEITURE AND OTHER RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR
HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS
CERTIFICATE.”

		
		  	To the extent the Stock is represented by a book entry, such book entry will contain an appropriate legend or restriction similar to the foregoing.

  

 5 

			
	Clawback	  	 This Award is subject to mandatory repayment by you to the Company to the extent you are or in the future become subject to any Company
“clawback” or recoupment policy that requires the repayment by you to the Company of compensation paid by the Company to you in the event that you fail to comply with, or violate, the terms or requirements of such policy.
  
 If the Company is required to prepare an accounting restatement due to the material noncompliance of
the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, and you are subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 and you knowingly engaged in the misconduct,
were grossly negligent in engaging in the misconduct, knowingly failed to prevent the misconduct or were grossly negligent in failing to prevent the misconduct, you shall reimburse the Company the amount of any payment in settlement of this Award
earned or accrued during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document that contained such material noncompliance.

  
 [Notwithstanding any other provision of the Plan or any provision of this
Agreement, if the Company is required to prepare an accounting restatement, then you shall forfeit any cash or Stock received in connection with this Award (or an amount equal to the fair market value of such Stock on the date of delivery if you no
longer hold the shares of Stock) if pursuant to the terms of this Agreement, the amount of the Award earned or the vesting in the Award was explicitly based on the achievement of pre-established performance goals set forth in this Agreement
(including earnings, gains, or other criteria) that are later determined, as a result of the accounting restatement, not to have been achieved.] [Include if any performance goals are included in award]

		
	Applicable Law	  	This Agreement will be interpreted and enforced under 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 this Agreement to the substantive law of another jurisdiction.
		
	The Plan	  	 The text of the Plan is incorporated in this Agreement by reference.
  
 Certain capitalized terms used in this Agreement are defined in the Plan, and have the meaning
set forth in the Plan.

  

 6 

			
	 	  	This Agreement and the Plan constitute the entire understanding between you and the Company regarding
this grant. Any prior agreements, commitments or negotiations concerning this grant
are superseded;
except that any written employment, consulting, confidentiality, non-competition, non-solicitation and/or
severance agreement between you and any Applicable Entity shall supersede this Agreement with respect
to its subject
matter.
		
	Data Privacy	  	 In order to administer the Plan, the Company may process personal data about you. Such data includes, but is not limited to, information provided
in this Agreement and any changes thereto, other appropriate personal and financial data about you such as your contact information, payroll information and any other information that might be deemed appropriate by the Company to facilitate the
administration of the Plan.
  
 By accepting this grant, you give explicit consent to the
Company to process any such personal data.

		
	Code Section 409A	  	It is intended that this Award comply with Section 409A of the Code (“Section 409A”) or an exemption to Section 409A.

 By signing this Agreement, you agree to all of the terms and conditions described above and
in the Plan. 
  

 7

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