Document:

Exhibit 10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”), is
made this 5th day of July, 2011 (the “Effective Date”) by and between Kurt Twining, an
individual resident of the State of Texas
(the “Executive”), residing at
                and RealPage, Inc., a
Delaware company (the “Employer”),
located at 4000 International Parkway, Carrollton, TX
75007.

WHEREAS, Employer desires to retain the
services of Executive on the terms and conditions
hereinafter set forth: and

WHEREAS, Executive desires to furnish
services to Employer on the terms and conditions
hereinafter set forth: and

WHEREAS, the parties desire to enter into
this Agreement setting forth the terms and
conditions of the employment relationship between Executive and Employer: and

NOW, THEREFORE, in consideration of
the premises and the mutual agreements set forth below,
the parties hereby agree as follows:

1. Employment and Consideration. Employer hereby agrees to employ Executive, and Executive
hereby accepts such employment, on the terms and conditions
hereinafter set forth. In
consideration of the promises of Executive contained in this Agreement, the Company agrees to
employ Executive, and to provide Executive with confidential information of the Company necessary
for the performance of his position.

2. Employment Screening. Executive has
successfully completed a pre-employment drug test,
pre-employment consumer report verification, and the Employer new hire paperwork, each of which was
to be conducted in accordance with applicable slate and/or federal law. Executive understands and
agrees that he will be subject to Employer’s general policies and practices concerning applicants
for senior executive positions and new senior executive employees.

3. Employment Period. The period during which
Executive shall furnish services to
Employer hereunder (the “Employment Period”) shall commence on the Effective Date and shall
end on the Date of Termination (as defined in Section 8(b) below). Nothing in this Section shall
limit the right of Employer or Executive to terminate Executive’s employment hereunder on the terms
and conditions set forth in Section 7 hereof.

 

 

 

4. Position and Duties.

(a) Office; Reporting; Duties. During the Employment Period. Executive shall serve as
Chief People Officer of Employer. Executive shall report directly to the Chief Executive Officer
or such other executive as the Chief Executive Officer of Real Page shall
designate (“Supervisory Executive”). Executive shall have those powers, duties and
perquisites consistent with a senior management position and such other powers and duties as may be
prescribed by the Supervisory Executive, provided that such other powers and duties are consistent
with the scope, dignity and perquisites of Executive’s position within the management structure of
RealPage.

(b) Commitment of Full Time Efforts. Executive agrees to devote substantially his full
working time, attention and energies to the performance of his duties for Employer, provided,
however, that it shall not be a violation of this Agreement for Executive to (i) serve on civic or
charitable boards or committees, (ii) serve on corporate boards or committees, with the prior
consent of Employer, which consent shall not be unreasonably withheld, and (iii) give speeches and
make media appearances in his individual capacity to discuss matters of public interest (so long as
such shall not involve any illegal conduct), so long as the foregoing activities comply with the
RealPage, Inc. Code of Business Conduct and Ethics and do not interfere materially with the
performance of Executive’s responsibilities for Employer.

5. Place of Performance. Executive shall perform his duties for Employer from the offices
of Employer, located at 4000 International Parkway, Carrollton, Texas 75007 or such other locations
within a twenty-five (25) mile radius of such Place of Performance.

6. Compensation and Related Matters.

(a) Base Salary. As compensation for the performance by Executive of his
obligations hereunder, during the Employment Period, Employer shall pay Executive a base salary at
a rate not less than Twenty Thousand Eight Hundred and Thirty Three
and No/100 Dollars ($21,666.67)
per month, or Two Hundred Sixty Thousand and No/100 Dollars (US$260,000.00) on an annualized basis
(the base salary, at the rate in effect from time to time, is hereinafter referred to as the
“Base Salary”). Base Salary shall be paid in approximately equal installments in accordance
with Employer’s customary payroll practices and legal requirements regarding withholding and
deductions. During the Employment Period, the Base Salary shall be reviewed no less frequently than
annually (commencing in 2012) to determine whether or not the same should be adjusted in light of
the duties, responsibilities and performance of Executive and other relevant factors.

(b) Annual Bonus. Executive shall be eligible for an annual bonus under the terms of
the RealPage Management Incentive Plan (“MIP Target”) of 50% of his Base Salary for
achievement of MIP Target at 100%. The performance criteria shall be as established by the
Compensation Committee of Employer’s Board of Directors. To be eligible for the Annual Bonus,
Executive must be employed by Employer on December 31 of the year with regard to which the Annual
Bonus is applicable and must be employed on the date the Annual Bonus is paid. Annual Bonuses shall
be paid according to the RealPage Management Incentive Plan. For 2011, Executive shall be
guaranteed 50% of his actual earned and received Base Salary.

(c) Equity Grants. Under the terms and conditions of the RealPage, Inc. Amended and
Restated 2010 Equity Incentive Plan (the “Plan”) and subject to Compensation Committee
approval, Executive, shall be granted an option to purchase Thirty Thousand (30,000) shares of
RealPage common stock (Stock Option Grant”), pursuant to a Notice of Stock Option
Grant in the form attached as Exhibit I hereto;
and Twenty Thousand (20,000) shares of
RealPage restricted stock (“Restricted Stock Grant”) pursuant to a Restricted Stock
Agreement in the form attached as Exhibit II hereto.

 

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(d) Expenses and Vacations. Employer, according to its standard travel policy, shall
reimburse Executive for all reasonable, in-policy business expenses upon the presentation of
itemized statements of such expenses. Executive shall be entitled to three (3) weeks paid vacation
per year, in accordance with Employer’s vacation policy and practice applicable to senior
executives of Employer.

(e) Fringe
Benefits mid Perquisites. During the Employment Period, Employer shall
make available to Executive all the fringe benefits and perquisites that are made available to
other senior executives of Employer.

(f) Other Benefits. During the Employment
Period, Executive shall be eligible to
participate in all other employee welfare benefit plans and other benefit programs (including
group life insurance, medical and dental insurance, and accident and disability insurance) made
available generally to employees or senior executives of Real Page.

7. Termination. Executive’s employment hereunder may be terminated under the following
circumstances, in each case subject to the provisions of this Agreement:

(a) Death. Executive’s employment hereunder shall terminate upon his death.

(b) Disability. If as a result of Executive’s incapacity due to physical or mental
condition and, if reasonable accommodation is required by law, after any reasonable accommodation.
Executive shall have been absent from his duties hereunder on a full-time basis (i) for a period
of six consecutive months or (ii) for shorter periods
aggregating six months during any twelve
month period, and, in either case, within thirty (30) days after written Notice of Termination (as
described in Section 8(a) hereof) is given, Executive shall not have returned to the performance
of his duties hereunder on a full-time basis. Employer may terminate Executive’s employment
hereunder for “Disability.”

(c) Cause. Employer may terminate Executive’s employment hereunder for Cause. In the
event of a termination under this Section 7(c), the Date of Termination shall be the date set
forth in the Notice of Termination. For purposes of this Employment Agreement. “Cause”
means the occurrence of any of the following events which are not cured by Executive within ten
(10) days after receipt of written notice of such alleged cause
from Employer or, if such event
cannot be corrected within such ten (10) day period, if Executive does not commence to correct
such default within said ten (10) day period and thereafter diligently prosecute the correction of
same to completion within a reasonable time, provided, however, for no period greater than thirty
(30) days: (i) Executive’s conviction for any acts of fraud or breach of trust or any felony
criminal acts; (ii) Executive’s making a materially false written statement to Employer’s auditors
or legal counsel, (iii) Executive’s material falsification
of any corporate document or form, (iv)
any

 

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material breach by Executive of any Employer published policy
received and acknowledged by Executive in writing, (v) any material breach by Executive of the provisions of this Employment
Agreement: (vi) Executive’s making a material misrepresentation of fact or omission to disclose
material facts in relation to transactions occurring in the business
and financial matters of
Employer: or (vii) Executive’s failure—in the sole opinion of Employer—to perform Executive’s
duties which failure has not been cured within ten (10) days after written notice thereof has been
given by Employer to Executive specifying the failure to perform alleged to give rise to Cause,
provided that Employer shall be required to give only one notice as to a particular type of
failure.

(d) Good Reason. For purposes of
this Agreement, “Good Reason” shall mean, without
Executive’s written consent, (i) there is a material reduction of the level of Executive’s
compensation (excluding any bonuses) (except where there is a general reduction applicable to the
management team generally), (ii) there is a material reduction in Executive’s overall
responsibilities or authority, or scope of duties, it being understood that a reduction in
Executive’s responsibilities or authority following a Change of Control shall not constitute Good
Reason unless there also occurs a demotion in Executive’s title
or position, or (iii) a material
change in the geographic location at which Executive must perform his services (except as provided
in Section 5 above), provided, that in no instance will the relocation of Executive to a facility
or a location of ten (10) miles or less from Executive’s then current office be deemed material
for purposes of this Agreement.

In the event of a resignation for Good Reason, Executive must provide Employer with written notice
of the acts or omissions constituting the grounds for Good Reason within ninety (90) days of the
initial existence of the grounds for Good Reason and a reasonable opportunity for the Company to
cure the conditions giving rise to such Good Reason, which shall not be less than thirty (30) days
following the date of notice from Executive. If Employer cures the conditions giving rise to such
Good Reason within thirty (30) days of the date of such notice, Executive will not be entitled to
severance payments and/or benefits contemplated by Section 9(a) above if Executive thereafter
resigns from Employer based on such grounds.

(c) Other Terminations. Notwithstanding the
foregoing provisions, Employer may
terminate Executive’s employment at any time, for any reason, with or without cause, and Executive
may terminate his employment at any time, with or without cause in accordance with applicable
state and federal law. The parties acknowledge that Executive is an at-will employee of Employer.

8. Termination Procedure.

(a) Notice of Termination. Any termination of Executive’s employment by
Employer or by Executive (other than termination pursuant to Section 7(a) hereof or through
expiration of the Term) shall be communicated by written Notice of Termination to the other party
hereto in accordance with Section 15.

 

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(b) Date of Termination. “Date of Termination” shall mean (i) if
Executive’s employment is terminated by his death, the date of his death, (ii) if Executive’s
employment is terminated pursuant to Section 7(b). thirty (30) days after Notice of Termination is
given
(provided that Executive shall not have returned to the performance
of his duties on a full-time
basis during such thirty (30) day period), (iii) if Executive’s employment is terminated pursuant
to Section 7(c), the date specified in the Notice of Termination, (iv) if Executive terminates his
employment for Good Reason, ten (10) days after Notice of Termination if Employer’s breach shall
be uncured, and (v) if Executive’s employment is terminated
pursuant to Section 7(e), immediately
upon written notice delivered by the terminating party to the other, unless such notice designates
a different termination date.

9. Compensation Upon Termination.

(a) Death;
Disability; Termination By Employer without Cause or By Executive for Good
Reason. If Executive’s employment is terminated by reason of his death or Disability or by
Employer without Cause or by Executive for Good Reason, Employer shall pay to Executive (or his
legal representatives or estate or as may be directed by the legal representatives of his estate,
as the case may be) (i) six (6) equal monthly installments of an amount per installment equal to
one-twenty fourth of Executive’s Base Salary (determined as of the Date of Termination), (ii) and
if applicable, where Employer has been party to a Business Combination Transaction, and such
termination occurs within twelve (12) months of the Business
Combination Transaction, twelve (12)
equal monthly installments of an amount per installment equal to one twelfth of Executive’s base
Salary (determined as of the Date of Termination), and (iii) a lump sum cash payment, within five
days following such Date of Termination, of an amount equal to any earned but unpaid Base Salary or
bonus due to Executive in respect of periods through the Date of Termination plus accrued vacation
in accordance with Employer’s vacation policy — subject to all required deductions and
withholdings (the “Accrued Amounts”). The amount set forth in Section 9(a)(i) and 9(a)(ii)
shall be payable if and only if the Executive shall have executed on
or before the 30th
day following the Date of Termination (or other later date specified by Employer) a full Release
and Covenant not to sue the Employer and its employees, officers, directors and stockholders in the
form provided by Employer. For purposes of this Agreement, a “Business Combination Transaction”
shall be deemed to mean a transaction that results in; A. a merger or consolidation of the Employer
with or into another entity in which the Employer shall not be the
surviving entity; B. a
dissolution of the Employer; C. a transfer of all or substantially all of the assets of the
Employer in one transaction or a series of related transactions to one or more other persons or
entities; or D. any “person” or “group” (as those
terms are used in Sections 13(d) and 14(d) of the
1934 Act), other than Scren Capital L.P. and Stephen T. Winn or any Affiliate of Stephen T. Winn,
or a trustee or other fiduciary holding securities under an employee benefit plan of the Employer,
becoming the “beneficial owner” (as defined in
Rule 13d-3 of the 1934 Act), directly or
indirectly, of securities of the Employer representing 40% or more of the combined voting power of
the Employer’s then outstanding securities.

(b) Cause or By Executive Other than for Good Reason. If Executive’s employment is
terminated by Employer for Cause or by Executive other than for Good Reason, then Employer shall
pay Executive, within five (5) days following such Date of Termination, in a lump sum cash
payment, the Accrued Amounts.

 

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10. No Mitigation. Executive shall not be required to mitigate amounts payable
pursuant to Section 9 of this Agreement by seeking other employment or otherwise, nor shall such
payments be reduced on account of any remuneration earned by Executive attributable to employment
by another employer, by retirement benefits, by offset against any amount claimed to be owed by
Executive to Employer or otherwise.

11. Confidentiality, Non-Compete, and Non-Solicitation.

(a) Non-Disclosure and Non-Use of Confidential Information. Executive shall not
disclose any Employer Confidential Information to any third party (other than accountants, lawyers
and other third parties engaged by and working at the behest of Employer) without the specific
written consent of Employer and shall use Employer Confidential Information solely for the benefit
of Employer. For a period of five (5) years following the termination of Executive’s employment
with the Company (regardless of whether termination is voluntary or involuntary and with or without
cause), Executive will not, without the written consent of the Company, use, disclose, reproduce,
or distribute any of the Company’s Confidential Information.

(b) Definition of Confidential Information. For purposes of this Agreement,
Employer “Confidential Information” shall mean all information, regardless of its form or
format, about the Company, its Customers and employees that is not readily accessible to the public
and not a matter of common knowledge in the Company’s business trade or industry and that is
disclosed to or learned by Executive as a direct or indirect consequence of or through Executive’s
employment with Employer — about Employer, its parents or subsidiaries, including information about
Employer’s technology, finances, business methods, plans, operations, services, products
and processes (whether existing or contemplated), or any of its executives, clients, agents or
suppliers, information relating to software programs, source codes or object codes; computer
systems; computer systems analyses, testing results; flow charts and designs; product
specifications and documentation; user documentation; sales plans; sales records; sales literature;
customer lists and files; research and development projects or plans; marketing and merchandising
plans and strategies; pricing strategies; price lists; sales or licensing terms and conditions;
consulting sources; supply and service sources; procedure or policy manuals; legal matters;
financial statements; financing methods; financial projections; and the terms and conditions of
business arrangements with its parent, clients, suppliers, banks, or other financial institutions.

(c) Covenant Not To Compete. Executive hereby agrees that during
employment and for a period of three (3) years thereafter (the “Restricted Period”) (other than on
behalf of employer or its affiliates), Executive shall not provide the same or substantially the
same services to a Competing Business anywhere in the Restricted Area, regardless of whether these
services are provided as a principle, agent, employee executive, consultant, or volunteer,
provided, however, that mere ownership of securities having no more than one percent of the
outstanding voting power of any Competing Business listed on any national securities exchange or
traded actively in the national over-the-counter market shall not be deemed to be in violation of
this Agreement so long as Executive otherwise complies with the terms of this provision.
“Restricted Area” shall mean each and every current market
throughout the United States in
which Employer conducts business. The term “Restricted Area” shall also include any potential
markets that Executive is directly or indirectly involved in helping develop on behalf of Employer
during the 12 months immediately preceding his termination of employment. The term “Competing
Business” shall have the same definition as set forth in Section (d) below.

 

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(d) Non-Solicitation
of Customers. Executive hereby agrees that, during the
Employment Period and for a period of three (3) years thereafter
(the “Restricted Period”),
(other than on behalf of Employer or its affiliates). Executive shall not in any way directly or
indirectly, for the purpose of conducting or engaging in a Competing Business:

(i) solicit any business from, or attempt to sell any products or services, or to call
upon or solicit any customer or client of the Company then-existing, or any Past customer
of Employer, or any affiliate of Employer that executive had direct or indirect contact
while employed with Employer;

(ii) assist, cooperate or encourage any third party to do any of the foregoing.

For
purposes of this Section 11(c) and (d), the term “Past” customer or “Past”
licensee shall refer to any former customer or licensee of Employer or any affiliate within two
(2) years of their having ceased to be a customer or licensee of Employer or any affiliate.
“Competing Business” means the business of developing, designing, publishing, marketing,
maintaining or distributing databases and software applications which are competitive with
products or services of Employer, are generally referred to as “single family or multi-tenant
real estate management applications” and are generally used at apartment communities by
personnel engaged in the operation, screening, call center, leasing, pricing, promotion and
maintenance of apartment units. Without limitation of the foregoing, single family or multi-tenant
real estate management applications, data bases, software and services shall include software used
in prospecting, selling or screening potential residents, performing property management or
accounting functions, providing pricing information or performing market research, communicating
via the Internet with applicants, residents, service providers, suppliers and advertising
providers, facilitating or providing billing, payments and cash management services, vendor
screening and vendor compliance services, providing energy management or convergent billing
services and producing, soliciting and/or assisting with the solicitation of insurance products or
services or developing, marketing or selling a single family or multi-tenant vendor network
solution.

(e) Non-Solicitation of Licensees. Executive hereby agrees that, during
the Restricted Period (other than on behalf of Employer or its affiliates). Executive shall not in
any way directly or indirectly, for the purpose of conducting or engaging in a Competing Business:

(i) solicit any business from, or attempt to sell any products or services, or to call
upon or solicit any licensee of the Company then-existing, or any Past licensee of
Employer, or any affiliate of Employer that Executive had direct or indirect contact while
employed with Employer:

(ii) assist, cooperate or encourage any third party to do any of the foregoing.

 

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For
purposes of this Section 11(e), the term “Past” customer or “Past” licensee
shall refer to any former customer or licensee of Employer within two (2) years of their having
ceased to be a customer or licensee of Employer.

(f) Non-Interference with Employees. Executive hereby agrees, during
the Restricted Period, not to, directly or indirectly, solicit or induce any of Employer’s or any
affiliate’s then-existing employees, representatives, consultants or agents to give up employment
with or representation of Employer or any affiliate.

(g) Non-Interference with Business Relationships. Executive hereby agrees,
during the Restricted Period. that Executive shall not, directly or indirectly, for the purpose of
conducting or engaging in a Competing Business, utilize Employer Confidential information to
interfere with, impair, or adversely affect any contractual relationships or business relationships
between the Employer and any of the technology or distribution companies with whom the Employer or
any affiliate has strategic relationships.

(h) Non-Disparagement.
Executive hereby agrees that during the Restricted Period,
Executive shall not disparage either orally or in writing the Employer or any affiliate, their
products or services, or their officers, directors, or employees.

(i) Injunctive Relief. Executive recognizes and agrees that the injury the Employer
will suffer in the event of a breach of this Section 11 may cause the Employer irreparable injury
that cannot adequately be compensated by monetary damages alone. Therefore, in the event of a
breach of this Section 11 by Executive, or any attempted or
threatened breach, Executive agrees
that the Employer, without limiting any legal or equitable remedies
available to it, may be
entitled to equitable relief by preliminary and permanent injunction or otherwise, without the
necessity of posting any bond or undertaking, against Executive and/or the business enterprise
with which Executive may have become associated, from any court of competent jurisdiction.

12. Reasonableness of Restrictions. Executive understands and acknowledges
that Employer would not have entered into the Employment Agreement, unless and until it had secured
from Executive assurance that Executive would become and remain, until the Date of Termination, as
an Executive of Employer in accordance with the terms and conditions hereof including the specific
restriction on disclosure of confidential information in accordance
with the terms of Section 11
hereof. Executive expressly acknowledges and agrees that the covenants and restrictive
agreements contained in this Agreement are reasonable as to scope, location, and
duration and that observation thereof will not cause Executive undue hardship or
unreasonably interfere with Executive’s ability to earn a livelihood and practice Executive’s
present skills and trades. Executive has consulted with legal counsel of his selection regarding
the meaning of such covenants and restrictions, which have been explained to his satisfaction.

 

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13. Successors; Binding Agreement.

(a) Employer’s Successors. Employer shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of its
businesses and/or assets (“Transaction”) to assume and agree to perform this Agreement in
the same manner and to the same extent that Employer would be required to perform it if no such
succession had taken place. Employer may honor the obligation set forth in the preceding sentence
through execution in the course of consummating the Transaction of either a specific assignment and
assumption agreement relating to the obligations set forth herein, or a general assignment and
assumption agreement. Failure of Employer to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a material breach of a material provision of this
Agreement and shall entitle Executive to compensation in the same amount and on the same terms as
he would be entitled to hereunder if he terminated his employment for Good Reason, except that for
purposes of implementing the foregoing, the date on which any such succession becomes effective
shall be deemed the Date of Termination. As used in this Agreement, the “Employer” shall
mean Employer as hereinbefore defined and any successor to the business and/or assets as aforesaid
which executes and delivers the agreement provided for in this Section 13 or which otherwise
becomes bound by all the terms and provisions of this Agreement by operation of law.

(b) Executive’s Successors. This Agreement shall not be assignable by Executive. This
Agreement and all rights of Executive hereunder shall inure to the benefit of and be enforceable
by Executive’s personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If Executive should die while any amounts would still be
payable to him hereunder if he had continued to live, all such amounts unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to Executive’s devisee,
legatee, or other designee or, if there be no such designee, to Executive’s estate.

14.
Indemnification. To the fullest extent permitted by law, Employer shall indemnify
Executive (including the advancement of legal, accounting and other expert expenses) for any
judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys’ fees,
incurred by Executive in connection with the defense of any lawsuit or other claim to which he is
made a party by reason of performing his responsibilities as an officer or executive of Employer or
any of its subsidiaries; except that, Employer shall have no such duty of indemnification with
regard to claims or suits brought, for any reason, against Executive by any former employer of
Executive.

15. Notice. For the purposes of this Agreement, notices, demands and
all other communications provided for in this Agreement shall be in writing and shall be deemed
to have been duly given when delivered to a national overnight delivery service or (unless
otherwise specified) mailed by United States certified or registered mail, return receipt
requested, postage prepaid, addressed as set forth in the Preamble of this Agreement or to such
other address as any party may have furnished to the others in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt. No notices may be
given via e-mail or facsimile transmission.

 

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16.
Severability. Should any term, condition, provision
or part of this Agreement be found
to he unlawful, invalid, illegal or unenforceable, that portion shall be deemed null and void and
severed from the Agreement for all purposes, but such illegality, or invalidity or unenforceability
shall not affect the legality, validity or enforceability of the
remaining parts of this Agreement,
and the remainder of the Agreement shall remain in full force and effect, unless such would be
manifestly inequitable or would serve to deprived either party of a material part of what it
bargained for in entering in this Agreement.

17. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.

18.
Withholding. Notwithstanding any other provision of this Agreement, Employer may
withhold from amounts payable under this Agreement all federal, state, local and foreign taxes that
are required to be withheld by applicable laws or regulations.

19. Confidential Information and Invention Assignment. Executive shall execute and
deliver a Confidential Information, Invention Assignment and Arbitration Agreement in the form
attached as Exhibit III hereto.

20. Outside Fees. Executive agrees and covenants not to solicit or receive, in connection
with his employment with Employer, any income or other compensation from any third party doing
business with Employer, including, without limitation, any supplier, client, customer, or executive
of Employer.

21. Miscellaneous. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing signed by Executive and an
authorized officer of Employer. No waiver by any party hereto at any time of any breach by the
other parties hereto of, or compliance with, any condition or provision of this Agreement to be
performed by any such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. Any termination of Executive’s
employment or of this Agreement shall have no effect on any continuing obligations arising under
this Agreement, including without limitation, the right of Executive to receive payments pursuant
to Section 9 hereof and the obligations of Executive described in Section II hereof.

22.
Applicable Law, Venue, Jurisdiction and Arbitration. This Agreement shall be
governed, construed, and enforced in accordance with the laws of the State of Texas, or U.S.
federal law when applicable and supreme (without regard to the principles of conflicts of law).
Any action or proceeding concerning, related to, regarding, or commenced in connection with the
Agreement must be brought in a state or federal court located in Denton County, Texas, and the
parties to the Agreement hereby irrevocably submit to the personal jurisdiction of such courts and
waive any objection they may now or hereafter have as to the venue of any such action or proceeding
brought in any such court, or that any such court is an inconvenient forum.

 

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(a) Arbitration Option. Either party shall also have the option to submit any
disputes between Executive (and his attorneys, successors, and assigns) and Employer (and its
Affiliates, shareholders, directors, officers, employees, agents, successors,
attorneys, and assigns) relating in any manner whatsoever to Executive’s employment or
termination thereof by either party, including, without limitation, all disputes arising under this
Agreement. (“Arbitrable Claims”) to
binding arbitration in Denton County, Texas, pursuant
to the rules of the American Arbitration Association and the arbitration rules set forth in Texas
Code of Civil Procedure (the “Rules”). The arbitrator shall administer and conduct any
arbitration in accordance with Texas law, including the Texas Code of Civil Procedure, or U.S.
federal law when applicable and supreme. To the extent that the AAA Employment Rules conflict
with Texas or U.S. federal law. Texas or U.S. federal law shall take precedence. All persons and
entities specified in this Section (other than Employer and Executive) shall be considered
third-party beneficiaries of the rights and obligations created by this Section on Arbitration. The
decision of the Arbitrator shall be final and binding on the parties and judgment upon the award
may be entered in any of the aforementioned courts having jurisdiction over this Agreement.

(b) Arbitrable
Claims. Arbitrable Claims shall include, but are not limited to,
contract (express or implied) and tort claims of all kinds, as well as all claims based on any
federal, state, or local law, statute, or regulation, excepting only claims under applicable
workers’ compensation law and unemployment insurance claims. By way of example and not in
limitation of the foregoing. Arbitrable Claims shall include (to the fullest extent permitted by
law) any claims arising under Title VII of the Civil Rights Act of
1964, the Age Discrimination in
Employment Act, the Americans with Disabilities Act, as well as any claims asserting wrongful
termination, harassment, breach of contract, breach of the covenant of good faith and fair dealing,
negligent or intentional infliction of emotional distress, negligent or intentional
misrepresentation, negligent or intentional interference with contract or prospective economic
advantage, defamation, invasion of privacy, and claims related to disability. The parties shall be
eligible to recover in arbitration any and all types of relief that would otherwise be available to
them if they brought their claims in a judicial forum. Executive understands that this Agreement
does not prohibit him from pursuing an administrative claim with a local, state, or federal
administrative body or government agency that is authorized to enforce or administer laws related
to employment, including, but not limited to, the Department of Fair Employment and Housing, the
Equal Employment Opportunity Commission, the National Labor Relations Board, or the Workers’
Compensation Appeals Board. This Agreement does, however, preclude Executive from pursuing
court action regarding any such claim, except as permitted by law.

(c) Procedure.

1. Initiation. Arbitration of Arbitrable Claims shall be in accordance with the
Employment Rules and Mediation Procedures of the American Arbitration Association as amended
(“AAA Employment Rules”), as
augmented in this Agreement. Arbitration shall be initiated
as provided by the AAA Employment Rules, although the written notice to the other party initiating
arbitration shall also include a statement of the claim(s) asserted and the facts upon which the
claim(s) are based. Either party may bring an action in court to compel arbitration under this
Agreement and to enforce an arbitration award.

 

-11-

 

2. Binding Arbitration. Arbitration shall be final and binding upon the
parties and shall be the exclusive forum for all Arbitrable Claims, except for any appeals or
enforcement of an arbitration award. Should one party select arbitration pursuant to this
Agreement, then no other party shall initiate or prosecute any lawsuit or administrative action on
overlapping issues of law or fact, unless the rights or obligations of third parties not subject to
being determined in such arbitration are affected or must be determined in order for there to be a
complete determination of the controversy, in which event the arbitration may be stayed or
dismissed pending determination of the parties’ rights in a different forum where appropriate third
parties are joined.

3. Venue. All arbitration hearings under this Agreement shall be conducted in Denton
County, Texas.

4. Arbitrator’s Decision Must Be In Writing. The decision of the arbitrator shall be
in writing and shall include a statement of the essential conclusions and findings upon which the
decision is based.

(d) Waiver of Jury Trial. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL
BY JURY IN REGARD TO ARBITRABLE CLAIMS, INCLUDING WITHOUT LIMITATION ANY RIGHT TO TRIAL BY JURY AS
TO THE MAKING, EXISTENCE, VALIDITY, OR ENFORCEABILITY OF THE AGREEMENT TO ARBITRATE.

(e) Arbitrator Selection and Authority. All disputes involving Arbitrable Claims shall
be decided by a single arbitrator. The arbitrator shall be selected by mutual agreement of the
parties within thirty (30) days of the effective date of the notice initiating the arbitration. If
the parties cannot agree on an arbitrator, then the complaining party shall notify the AAA and
request selection of an arbitrator in accordance with the AAA Employment Rules. The arbitrator
shall have only such authority to award equitable relief, damages, costs, and fees as a court would
have for the particular claim(s) asserted. The arbitrator shall have exclusive authority to resolve
all Arbitrable Claims, including, but not limited to, whether any particular claim is arbitrable
and whether all or any part of this Agreement is void or unenforceable.

(f) Arbitration
Fees. Employer shall pay the expenses and fees of the arbitrator,
together with other expenses of the arbitration incurred or approved by the neutral arbitrator,
but excluding an initial filing fee of $100 (payable to AAA), and counsel fees or witness fees or
other expenses incurred by a party for his or own benefit. If the allocation of responsibility for
payment of the arbitrator’s fees would render the obligation to arbitrate unenforceable, the
parties authorize the arbitrator to modify the allocation as necessary to preserve enforceability.

(g) Confidentiality. All proceedings and all documents prepared in connection with
any Arbitrable Claim shall be confidential and, unless otherwise
required by law, the subject
matter thereof shall not be disclosed to any person other than the parties to the proceedings,
their counsel, witnesses and experts, tax and financial advisors and immediate family members of
Executive, the arbitrator, and, if involved, the court and court staff. All documents filed with
the arbitrator or with a court shall be filed under seal. The parties shall stipulate to all
arbitration and
court orders necessary to effectuate fully the provisions of this
subsection concerning confidentiality.

 

-12-

 

(h) Continuing Obligations. The rights and obligations of Executive and Employer set
forth in this Section on Arbitration shall survive the termination of Executive’s employment and
the expiration of this Agreement.

23. Section 409A.

1. Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified
employee” within the meaning of Section 409A of the
Internal Revenue Code of 1986, as amended (the
“Code”) and the final regulations and any guidance
promulgated thereunder (“Section 409A”) at
the time of Executive’s termination (other than due to death), and the severance payable to
Executive, if any, pursuant to this Agreement, when considered together with any other severance
payments or separation benefits which may be considered deferred compensation under Section 409A
(together, the “Deferred Compensation Separation Benefits”)will not and could not under
any circumstances, regardless of when such termination occurs, be paid in full by March 15 of the
year following Executive’s termination, then only that portion of the Deferred Compensation
Separation Benefits which do not exceed the Section 409A Limit (as defined below) may be made
within the first six (6) months following Executive’s termination of employment in accordance with
the payment schedule applicable to each payment or benefit, For these purposes, each severance
payment is hereby designated as a separate payment and will not collectively be treated as a single
payment. Any portion of the Deferred Compensation Separation Benefits in excess of the Section
409A Limit shall accrue and, to the extent such portion of the Deferred Compensation Separation
Benefits would otherwise have been payable within the first six (6) months following Executive’s
termination of employment, will become payable on the first payroll date that occurs on or after
the date six (6) months and one (1) day following the dale of Executive’s termination. All
subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance
with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein
to the contrary, if Executive dies following his termination but prior to the six (6) month
anniversary of his termination, then any payments delayed in accordance with this paragraph will be
payable in a lump sum as soon as administratively practicable after the date of
Executive’s death and all other Deferred Compensation Separation Benefits will be payable
in accordance with the payment schedule applicable to each payment or benefit.

2. The foregoing provision is intended to comply with the requirements of Section 409A so that
none of the severance payments and benefits to be provided hereunder will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so
comply. Employer and Executive agree to work together in good faith to consider amendments to
this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to
avoid imposition of any additional tax or income recognition prior to actual payment to Executive
under Section 409A.

 

-13-

 

3. For purposes of this Agreement, “Section 409A Limit” will mean the lesser of two
(2) times: (A) Executive’s annualized compensation based upon the annual rate of pay paid to
Executive during the Employer’s taxable year preceding Employer’s taxable year of
Executive’s termination of employment as determined under Treasury Regulation
1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto;
or (B) the maximum amount that may be taken into account under a qualified plan pursuant to
Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.

24. Entire Agreement. This Agreement, including the Notice of Stock Option Grant attached
as Exhibit I, the Restricted Stock Agreement attached as
Exhibit II, and the
Confidential Information. Invention Assignment and Arbitration Agreement attached as Exhibit
III, sets forth the entire agreement of the parties hereinafter in respect of the subject matter
contained herein and supersedes all prior agreements, letters of intent, promises, covenants,
arrangements, communications, representations or warranties, whether oral or written, by an
officer, executive or representative of any party hereto; and any prior agreement of the parties
hereto in respect to the subject matter contained herein. Executive acknowledges and agrees that no
officer, executive or representative of Employer is authorized to offer any term or condition of
employment which is in addition to or different than those set forth in this Agreement.

[SIGNATURE PAGE FOLLOWS]

 

-14-

 

IN WITNESS WHEREOF, the parties, intending to be legally bound, have executed this
Agreement on the Effective Date.

	 	 	 	 	 
	 	REALPAGE, INC.

 	 
	 	By:  	/s/ Stephen T. Winn
 	 
	 	 	Name:  	Stephen T. Winn  	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	EXECUTIVE:

 	 
	 	/s/ Kurt Twining
 	 
	 	Kurt Twining 	 

(Signature Page — Employment Agreement)

 

-15-

 

EXHIBIT I 

REALPAGE, INC.

NOTICE OF STOCK OPTION GRANT

UNDER THE

REALPAGE, INC. AMENDED AND RESTATED 2010 EQUITY INCENTIVE PLAN

 

-16-

 

REALPAGE, INC.

2010 EQUITY INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

Unless otherwise defined herein, the terms defined in the RealPage, Inc. 2010 Equity
Incentive Plan (the “Plan”) will have the same defined meanings in this Stock Option Award
Agreement (the “Award Agreement”).

NOTICE OF STOCK OPTION GRANT

Participant Name:

Address:

You
have been granted an Option to purchase Common Stock of RealPage, Inc. (the
“Company”), subject to the terms and conditions of the Plan and this Award Agreement, as
follows:

	 	 	 

	Grant Number

	 	                                                            
	 
	 	 
	Date of Grant

	 	                                                            
	 
	 	 
	Vesting Commencement Date

	 	                                                            
	 
	 	 
	Exercise Price per Share

	 	$                                                             
	 
	 	 
	Total Number of Shares Granted
	 	                                                             
	 
	 	 
	Total Exercise Price

	 	$                                                             
	 
	 	 
	Type of Option:

	 	_____ Incentive Stock Option
	 
	 	 
	 

	 	_____ Nonstatutory Stock Option
	 
	 	 
	Term/Expiration Date:

	 	                                                            

Vesting Schedule:

Subject to any acceleration provisions contained in the Plan or set forth
below, this Option may be exercised, in whole or in part, in accordance with the
following schedule:

Five percent (5%) of the Shares subject to the Option shall vest each quarter
beginning on the first day of the calendar quarter immediately following the vesting
commencement date for
fifteen (15) consecutive calendar quarters, and the remaining twenty-five percent
(25%) of the Shares subject to the Option shall vest on the first day of the next
following calendar quarter so that the Option shall be fully vested on the first
calendar day of the sixteenth consecutive calendar quarter following the vesting
commencement date, subject to Optionee continuing to be a service provider of the
Company or a parent or subsidiary of the Company through each such vesting date.

 

-17-

 

Termination Period:

This Option will be exercisable for three (3) months after Participant ceases to be
a Service Provider, unless such termination is due to Participant’s death or Disability,
in which case this Option will be exercisable for twelve (12) months after Participant
ceases to be Service Provider. Notwithstanding the foregoing, in no event may this Option
be exercised after the Term/Expiration Date as provided above and may be subject to
earlier termination as provided in Section 14 of the Plan or Section 20 of Exhibit A
hereto.

By Participant’s signature and the signature of the Company’s representative below,
Participant and the Company agree that this Option is granted under and governed by the
terms and conditions of the Plan and this Award Agreement, including the Terms and
Conditions of Stock Option Grant, attached hereto as
Exhibit A, all of which are
made a part of this document. Participant has reviewed the Plan and this Award Agreement
in their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Award Agreement and fully understands all provisions of the Plan and Award
Agreement. Participant hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Administrator upon any questions relating to the Plan
and Award Agreement. Participant further agrees to notify the Company upon any change in
the residence address indicated above.

	 	 	 	 	 

	PARTICIPANT:

	 	 	REALPAGE, INC.
	 
	 	 	 	 
	 

	 	 	 
	Signature
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 
	Print Name
	 	 	 	 

 

-18-

 

EXHIBIT A 

TERMS AND CONDITIONS OF STOCK OPTION GRANT

1. Grant of Option. The Company hereby grants to the Participant named in the
Notice of Grant attached as Part I of this Award Agreement (the “Participant”) an option (the
“Option”) to purchase the number of Shares, as set forth in the Notice of Grant, at the exercise
price per Share set forth in the Notice of Grant (the “Exercise Price”), subject to all of the
terms and conditions in this Award Agreement and the Plan, which is incorporated herein by
reference. Subject to Section 19 of the Plan, in the event of a conflict between the terms and
conditions of the Plan and the terms and conditions of this Award Agreement, the terms and
conditions of the Plan will prevail.

If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is
intended to qualify as an ISO under Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”). However, if this Option is intended to be an
ISO, to the extent that it exceeds the
$100.000 rule of Code Section 422(d) it will be treated as a Nonstatutory Stock Option (“NSO”).
Further, if for any reason this Option (or portion thereof) will not qualify as an ISO, then, to
the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a NSO
granted under the Plan. In no event will the Administrator, the Company or any Parent or
Subsidiary or any of their respective employees or directors have any liability to Participant (or
any other person) due to the failure of the Option to qualify for any reason as an ISO.

2. Vesting Schedule. Except as provided in Section 3, the Option awarded by this
Award Agreement will vest in accordance with the vesting provisions set forth in the Notice of
Grant. Shares scheduled to vest on a certain date or upon the occurrence of a certain condition
will not vest in Participant in accordance with any of the provisions of this Award Agreement,
unless Participant will have been continuously a Service Provider from the Date of Grant until the
date such vesting occurs.

3. Administrator Discretion. The Administrator, in its discretion, may accelerate the
vesting of the balance, or some lesser portion of the balance, of the unvested Option at any time,
subject to the terms of the Plan. If so accelerated, such Option will be considered as having
vested as of the date specified by the Administrator.

4. Exercise of Option.

(a) Right to Exercise. This Option may be exercised only within the term set out in
the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the
terms of this Award Agreement.

(b) Method of Exercise. This Option is exercisable by delivery of an exercise notice,
in the form attached as Exhibit B (the “Exercise Notice”) or in a manner and pursuant to
such procedures as the Administrator may determine, which will state the election to exercise the
Option, the number of Shares in respect of which the Option is being exercised (the “Exercised
Shares”), and such other representations and agreements as may be required by the Company
pursuant to the provisions of the Plan. The Exercise Notice will be completed by Participant and
delivered to the Company. The Exercise Notice will be accompanied by payment of the aggregate
Exercise Price as to all Exercised Shares together with any
applicable tax withholding. This
Option will be deemed to be exercised upon receipt by the Company of such fully executed Exercise
Notice accompanied by such aggregate Exercise Price.

 

-19-

 

5. Method of Payment. Payment of the aggregate Exercise Price will be by any of the
following, or a combination thereof, at the election of Participant.

(a) cash;

(b) check;

(c) consideration received by the Company under a formal cashless exercise program adopted by
the Company in connection with the Plan; or

(d) surrender of other Shares which have a Fair Market Value on the date of surrender equal to
the aggregate Exercise Price of the Exercised Shares, provided that accepting such Shares, in the
sole discretion of the Administrator, will not result in any adverse accounting consequences to the
Company.

6. Tax Obligations.

(a) Withholding Taxes. Notwithstanding any contrary provision of this Award
Agreement, no certificate representing the Shares will be issued to Participant, unless and until
satisfactory arrangements (as determined by the Administrator) will have been made by Participant
with respect to the payment of income, employment and other taxes which the Company determines must
be withheld with respect to such Shares. To the extent determined appropriate by the Company in
its discretion, it will have the right (but not the obligation) to satisfy any tax withholding
obligations by reducing the number of Shares otherwise deliverable to Participant. If Participant
fails to make satisfactory arrangements for the payment of any required tax withholding obligations
hereunder at the time of the Option exercise, Participant acknowledges and agrees that the Company
may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

(b) Notice of Disqualifying Disposition of ISO Shares. If the Option granted to
Participant herein is an ISO, and if Participant sells or otherwise disposes of any of the Shares
acquired pursuant to the ISO on or before the later of (i) the
date two (2) years after the Grant
Date, or (ii) the date one (1) year after the date of exercise, Participant will immediately notify
the Company in writing of such disposition. Participant agrees that Participant may be subject to
income lax withholding by the Company on the compensation income recognized by Participant.

 

-20-

 

(c) Code Section 409A. Under Code Section 409A. an option that vests after December
31, 2004 (or that vested on or prior to such date but which was materially modified after October
3, 2004) that was granted with a per Share exercise price that is determined by the
Internal Revenue Service (the “IRS”) to be less than the
Fair Market Value of a Share on the date
of grant (a “Discount Option”) may be considered “deferred compensation.” A Discount Option may
result in (i) income recognition by Participant prior to the exercise of the option, (ii) an
additional twenty percent (20%) federal income tax, and (iii) potential penalty and interest
charges. The Discount Option may also result in additional state income, penalty and interest
charges to the Participant. Participant acknowledges that the Company cannot and has not
guaranteed that the IRS will agree that the per Share exercise price of this Option equals or
exceeds the Fair Market Value of a Share on the Date of Grant in a later examination. Participant
agrees that if the IRS determines that the Option was granted with a per Share exercise price that
was less than the Fair Market Value of a Share on the date of grant, Participant will be solely
responsible for Participant’s costs related to such a determination.

7. Rights as Stockholder. Neither Participant nor any person claiming under or
through Participant will have any of the rights or privileges of a stockholder of the Company in
respect of any Shares deliverable hereunder unless and until certificates representing such Shares
will have been issued, recorded on the records of the Company or its transfer agents or registrars,
and delivered to Participant. After such issuance, recordation and delivery, Participant will have
all the rights of a stockholder of the Company with respect to voting such Shares and receipt of
dividends and distributions on such Shares.

8. No Guarantee of Continued Service. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE
PROVIDER AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING
PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING
SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AWARD AGREEMENT. THE
TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE
AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING
PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR
THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING
PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH
OR WITHOUT CAUSE.

9. Address for Notices. Any notice to be given to the Company under the terms of this
Award Agreement will be addressed to the Company, in care of its
Chief Legal Officer at RealPage, Inc., 4000 International Parkway,
Carrollton, Texas 75007, or at such other address as the Company may hereafter designate in writing.

10. Non-Transferability of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Participant only by Participant.

 

-21-

 

11. Binding
Agreement. Subject to the limitation on the transferability of
this grant contained herein, this Award Agreement will be binding upon and inure to the benefit of
the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

12. Additional Conditions to Issuance of Stock. If at any time the Company will
determine, in its discretion, that the listing, registration or qualification of the Shares upon
any securities exchange or under any state or federal law, or the consent or approval of any
governmental regulatory authority is necessary or desirable as a condition to the issuance of
Shares to Participant (or his or her estate), such issuance will not occur unless and until such
listing, registration, qualification, consent or approval will have been effected or obtained free
of any conditions not acceptable to the Company. The Company will make all reasonable efforts to
meet the requirements of any such state or federal law or securities exchange and to obtain any
such consent or approval of any such governmental authority. Assuming such compliance, for income
tax purposes the Exercised Shares will be considered transferred to
Participant on the date the
Option is exercised with respect to such Exercised Shares.

13. Plan Governs. This Award Agreement is subject to all terms and provisions of the
Plan. In the event of a conflict between one or more provisions of this Award Agreement and one
or more provisions of the Plan, the provisions of the Plan will govern. Capitalized terms used and
not defined in this Award Agreement will have the meaning set forth in the Plan.

14. Administrator Authority. The Administrator will have the power to interpret the
Plan and this Award Agreement and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret or revoke any such rules
(including, but not limited to, the determination of whether or not any Shares subject to the
Option have vested). All actions taken and all interpretations and determinations made by the
Administrator in good faith will be final and binding upon Participant, the Company and all other
interested persons. No member of the Administrator will be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or this Award
Agreement.

15. Electronic
Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to Options awarded under the Plan or future options that may be awarded under
the Plan by electronic means or request Participant’s consent to participate in the Plan by
electronic means. Participant hereby consents to receive such documents by electronic delivery and
agrees to participate in the Plan through any on-line or electronic system established and
maintained by the Company or another third party designated by the Company.

16. Captions. Captions provided herein are for convenience only and are not to serve
as a basis for interpretation or construction of this Award Agreement.

17. Agreement Severable. In the event that any provision in this Award Agreement
will be held invalid or unenforceable, such provision will be severable from, and such invalidity
or unenforceability will not be construed to have any effect on the remaining provisions of this
Award Agreement.

 

-22-

 

18. Modifications to the Agreement. This Award Agreement constitutes the entire
understanding of the parties on the subjects covered. Participant expressly warrants that he or
she is not accepting this Award Agreement in reliance on any promises, representations, or
inducements other than those contained herein. Modifications to this Award Agreement or the Plan
can be made only in an express written contract executed by a duly authorized officer of the
Company. Notwithstanding anything to the contrary in the Plan or this Award Agreement, the Company
reserves the right to revise this Award Agreement as it deems necessary or advisable, in its sole
discretion and without the consent of Participant, to comply with Code Section 409A or to otherwise
avoid imposition of any additional tax or income recognition under Section 409A of the Code in
connection to this Option.

19. Amendment, Suspension or Termination of the Plan. By accepting this Award.
Participant expressly warrants that he or she has received an Option under the Plan, and has
received, read and understood a description of the Plan. Participant understands that the Plan is
discretionary in nature and may he amended, suspended or terminated by the Company at any time.

20. Forfeiture Events. Participant acknowledges and agrees that, (a) if
Participant’s status as a Service Provider terminates for Cause (as defined herein), or (b) if
Participant’s status as a Service Provider terminates by reason of a Voluntary Termination (as
defined herein) and participant engages in Acts Harmful to the Interest of the Company (as defined
herein) within one (1) year after the Voluntary Termination, as determined by the Administrator,
then, to the extent permitted by applicable law, (i) the Participant will immediately forfeit any
right to exercise this Option, whether vested or unvested: and (ii) Participant will (A)
immediately forfeit any right to, and shall, within three (3) business days after receiving a
written demand therefor from the Company, return and surrender to the Company for cancellation all
shares of the Company’s capital stock received by the Participant pursuant to any exercise of this
Option occurring within six (6) months before or after the date of the termination of Participant’s
status as a Service Provider, and (B) immediately forfeit any
right to, and shall, within three (3)
business days after receiving a written demand therefor from the Company, pay to the Company a cash
payment equal to the value of all proceeds received by Participant within six (6) months before or
after the date of the termination of Participant’s status as a Service Provider from the sale of
any shares of the Company’s capital stock originally acquired by Participant pursuant to any
exercise of this Option, less the aggregate exercise price paid by Participant for the shares of
capital stock from which such proceeds are derived. In the case of the surrender of shares of the
Company’s capital stock hereunder, the Company shall, within three (3) business days of
Participant’s surrender and cancellation of such shares of capital stock, refund to Participant the
amount of the exercise price paid by Participant to the Company for the shares of capital stock so
surrendered and cancelled.

For purposes of this provision, “Acts Harmful to the Interest of the Company” shall mean (a)
accepting employment with or serving in any other capacity for any business entity that is in
competition with the Company: (b) soliciting, recruiting, or employing any employee of the Company
for the benefit of another business entity that is not an affiliate (as defined in Rule I2b-2 of
the Exchange Act) of the Company: (c) disclosing any trade secret or confidential information of
the Company under circumstances that are injurious to the Company: or (d) disparagement of the Company or any affiliate (as defined in Rule 12b-2 of the Exchange Act) or
their business, products, directors, officers or employees.

 

-23-

 

For purposes of this provision. “Cause” shall mean (a) the unauthorized disclosure of any
trade secret or confidential information of the Company: (b) the commission of any act of
dishonesty, embezzlement or fraud: (c) the commission of any act of insubordination or willful
violation of law or any policy of the Company: or (d) conviction of a felony, which in the
determination of the Administrator, causes substantial injury and discredit to the Company.

For
purposes of this provision. “Voluntary Termination” shall mean, (a) with respect to an
Employee, a termination of employment with the Company, or any Parent or Subsidiary, which is
initiated voluntarily by the Employee, as determined in the sole discretion of the Administrator:
provided, however, that a Voluntary Termination shall not include a termination of employment by
reason of death. Disability or retirement from active service at or after age sixty-five (65) or a
breach of any material obligation by the Company: or (b) with respect to a Consultant, a cessation
of services for the Company, or any Parent or Subsidiary, which is initiated voluntarily by the
Consultant, as determined in the sole discretion of the Administrator.

21. Governing Law. This Award Agreement will be governed by the laws of the State of
Texas, without giving effect to the conflict of law principles thereof. For purposes of litigating
any dispute that arises under this Option or this Award Agreement, the parties hereby submit to
and consent to the jurisdiction of the State of Texas, and agree that such litigation will be
conducted in the courts of Denton County, Texas, or the federal courts for the United States for
the Northern District of Texas, and no other courts, where this Option is made and/or to be
performed.

 

-24-

 

EXHIBIT II 

REALPAGE, INC.

RESTRICTED STOCK AWARD AGREEMENT

UNDER THE

REALPAGE, INC. AMENDED AND RESTATED 2010 EQUITY INCENTIVE PLAN

 

-25-

 

REALPAGE, INC.

2010 EQUITY INCENTIVE PLAN

RESTRICTED STOCK AWARD AGREEMENT

Unless
otherwise defined herein, the terms defined in the RealPage. Inc. 2010 Equity
Incentive Plan (the “Plan”) will have the same defined meanings in this Restricted Stock Award
Agreement (the “Award Agreement”).

NOTICE OF RESTRICTED STOCK GRANT 

Participant Name:

Address:

You have been granted the right to receive an Award of Restricted Stock subject to the
terms and conditions of the Plan and this Award Agreement, as follows:

	 	 	 	 	 
	Grant Number
	 	 	 	 

	 	 	 	 	 
	Date of Grant
	 	 	 	 

	 	 	 	 	 
	Vesting Commencement Date
	 	 	 	 

	 	 	 	 	 
	Total Number of Shares Granted
	 	 	 	 

Vesting Schedule:

Subject to any acceleration provisions contained in the Plan or set forth below the
Restricted Stock will vest and the Company’s right to reacquire the Restricted Stock will lapse in
accordance with the following schedule:

Six
and one quarter percent (6.25%) of the Shares of Restricted Stock shall vest each quarter,
beginning on the first day of the calendar quarter immediately following the vesting commencement
date for sixteen (16) consecutive calendar quarters so that the Restricted Stock shall be fully
vested on the first calendar day of the sixteenth consecutive calendar quarter following the
vesting commencement date, subject to Participant continuing to be a service provider of the
Company or a parent or subsidiary of the Company through each such vesting date.

 

-26-

 

By Participant’s signature and the signature of the representative of RealPage, Inc. (the
“Company”) below. Participant and the Company agree that this Award of Restricted Stock is granted
under and governed by the terms and conditions of the Plan and this
Award Agreement, including the
Terms and Conditions of Restricted Stock Grant, attached hereto as
Exhibit A, all of which
are made a part of this document. Participant has reviewed the Plan and this Award Agreement in
their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Award Agreement and fully understands all provisions of the Plan and Award
Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions relating to the Plan and Award
Agreement. Participant further agrees to notify the Company upon any change in the residence
address indicated above.

	 	 	 	 	 	 	 
	PARTICIPANT:

	 	 	 	REALPAGE,  INC.	 	 
	 
	 	 	 	 	 	 
	 

Signature

	 	 
	 	 

By
	 	 
	 
	 	 	 	 	 	 
	 

Print Name

	 	 
	 	 

Title
	 	 

 

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EXHIBIT A 

TERMS AND CONDITIONS OF RESTRICTED STOCK GRANT

1. Grant of Restricted Stock. The Company hereby grants to the individual named in the
Notice of Grant attached as Part 1 of this Award Agreement (the “Participant”) under the Plan for
past services and as a separate incentive in connection with his or her services and not in lieu of
any salary or other compensation for his or her services, an Award of Shares of Restricted Stock,
subject to all of the terms and conditions in this Award Agreement and the Plan, which is
incorporated herein by reference. Subject to Section 19 of the Plan, in the event of a conflict
between the terms and conditions of the Plan and the terms and conditions of this Award Agreement,
the terms and conditions of the Plan will prevail.

2. Escrow of Shares.

(a) All
Shares of Restricted Stock will, upon execution of this Award
Agreement, be
delivered and deposited with an escrow holder designated by the Company (the “Escrow Holder”). The
Shares of Restricted Stock will be held by the Escrow Holder until such time as the Shares of
Restricted Stock vest or the date Participant ceases to be a Service Provider.

(b) The Escrow Holder will not be liable for any act it may do or omit to do with respect to
holding the Shares of Restricted Stock in escrow while acting in good faith and in the exercise of
its judgment.

(c) Upon Participant’s termination as a Service Provider for any reason, the Escrow Holder,
upon receipt of written notice of such termination, will take all steps necessary to accomplish the
transfer of the unvested Shares of Restricted Stock to the Company. Participant hereby appoints
the Escrow Holder with full power of substitution, as Participant’s true and lawful
attorney-in-fact with irrevocable power and authority in the name and on behalf of Participant to
take any action and execute all documents and instruments, including, without limitation, stock
powers which may be necessary to transfer the certificate or certificates evidencing such unvested
Shares of Restricted Stock to the Company upon such termination.

(d) The
Escrow  Holder will take all steps necessary to accomplish the transfer of Shares of
Restricted Stock to Participant after they vest following Participant’s request that the Escrow
Holder do so.

(e) Subject to the terms hereof. Participant will have all the rights of a stockholder with
respect to the Shares while they are held in escrow, including without limitation, the right to
vote the Shares and to receive any cash dividends declared thereon.

 

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(f) In
the event of any dividend or other distribution (whether in the form of cash, Shares,
other securities, or other property), recapitalization, stock split, reverse Stock split,
reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of
Shares or other securities of the Company, or other change in the corporate structure of the
Company affecting the Shares, the Shares of Restricted Stock will be increased, reduced or
otherwise changed, and by virtue of any such change Participant will in his or her capacity as
owner of unvested Shares of Restricted Stock be entitled to new or additional or different shares
of Stock, cash or securities (other than rights or warrants to purchase securities): such new or
additional or different shares, cash or securities will thereupon be considered to be unvested
Shares of Restricted Stock and will be subject to all of the conditions and restrictions which were
applicable to the unvested Shares of Restricted Stock pursuant to this Award Agreement. If
Participant receives rights or warrants with respect to any unvested Shares of Restricted Stock,
such rights or warrants may be held or exercised by Participant, provided that until such exercise
any such rights or warrants and after such exercise any shares or other securities acquired by the
exercise of such rights or warrants will be considered to be unvested Shares of Restricted Stock
and will be subject to all of the conditions and restrictions which were applicable to the unvested
Shares of Restricted Stock pursuant to this Award Agreement. The Administrator in its absolute
discretion at any time may accelerate the vesting of all or any portion of such new or additional
shares of stock, cash or securities, rights or warrants to purchase securities or shares or other
securities acquired by the exercise of such rights or warrants.

(g) The Company may instruct the transfer agent for its Common Stock to place a legend on
the certificates representing the Restricted Stock or otherwise note its records as to the
restrictions on transfer set forth in this Award Agreement.

3. Vesting Schedule. Except as provided in Section 4 below and Section 14 of the Plan, and
subject to Section 5 below, the Shares of Restricted Stock awarded by this Award Agreement will
vest in accordance with the vesting provisions set forth in the Notice of Grant. Shares of
Restricted Stock scheduled to vest on a certain dale or upon the occurrence of a certain condition
will not vest in Participant in accordance with any of the provisions of this Award Agreement,
unless Participant will have been continuously a Service Provider from the Date of Grant until the
date such vesting occurs.

4. Administrator Discretion. The Administrator, in
its discretion, may accelerate the
vesting of the balance, or some lesser portion of the balance, of the unvested Restricted Stock at
any time, subject to the terms of the Plan. If so accelerated, such Restricted Stock will be
considered as having vested as of the date specified by the Administrator.

5. Forfeiture upon Termination of Status as a Service Provider. Notwithstanding any
contrary provision of this Award Agreement, the balance of the Shares of Restricted Stock that have
not vested at the time of Participant’s termination as a Service Provider for any reason will be
forfeited and automatically transferred to and reacquired by the Company at no cost to the Company
upon the date of such termination and Participant will have no further rights thereunder.
Participant will not be entitled to a refund of the price paid for the Shares of Restricted Stock,
if any, returned to the Company pursuant to this Section 5. Participant hereby appoints the Escrow
Agent with full power of substitution, as Participant’s true and lawful attorney-in-fact with
irrevocable power and authority in the name and on behalf of
Participant to take any action and
execute all documents and instruments, including, without limitation, Stock powers which may be
necessary to transfer the certificate or certificates evidencing such unvested Shares to the
Company upon such termination of service.

 

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6. Death of Participant. Any distribution or delivery to be made to Participant under this
Award Agreement will, if Participant is then deceased, be made to Participant’s designated
beneficiary, or if no beneficiary survives Participant, the administrator or executor of
Participant’s estate. Any such transferee must furnish the Company with (a) written notice of his
or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity
of the transfer and compliance with any laws or regulations pertaining to said transfer.

7. Withholding of Taxes. Notwithstanding any contrary provision of this Award Agreement, no
certificate representing the Shares of Restricted Stock may be released from the escrow
established pursuant to Section 2, unless and until satisfactory arrangements (as determined by the
Administrator) will have been made by Participant with respect to the payment of income, employment
and other taxes which the Company determines must be withheld with
respect to such Shares, if any.
The Administrator, in its sole discretion and pursuant to such procedures as it may specify from
time to time, may permit Participant to satisfy such tax withholding obligation, in whole or in
part (without limitation) by (a) paying cash, (b) electing to have the Company withhold otherwise
deliverable Shares having a Fair Market Value equal to the minimum
amount required to be withheld,
(c) delivering to the Company already vested and owned Shares having a Fair Market Value equal to
the amount required to be withheld or (d) selling a sufficient number of such Shares otherwise
deliverable to Participant through such means as the Company may determine in its sole discretion
(whether through a broker or otherwise) equal to the amount required to be withheld. To the extent
determined appropriate by the Company in its discretion, it will have the right (but not the
obligation) to satisfy any tax withholding obligations by reducing the number of Shares otherwise
deliverable to Participant. If Participant fails to make satisfactory arrangements for the payment
of any required tax withholding obligations hereunder at the time any applicable Shares otherwise
are scheduled to vest pursuant to Sections 3 or 4 (or Section 14 of the Plan), Participant will
permanently forfeit such Shares and the Shares will be returned to the Company at no cost to the
Company.

8. Rights as Stockholder. Neither Participant nor any person claiming under or through
Participant will have any of the rights or privileges of a stockholder of the Company in respect of
any Shares deliverable hereunder unless and until certificates representing such Shares will have
been issued, recorded on the records of the Company or its transfer agents or registrars, and
delivered to Participant or the Escrow Agent. Except as provided in
Section 2, after such issuance,
recordation and delivery. Participant will have all the rights of a stockholder of the Company with
respect to voting such Shares and receipt of dividends and distributions on such Shares.

9. No Guarantee of Continued Service. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE
VESTING OF THE SHARES OF RESTRICTED STOCK PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY
CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING
OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED,
BEING GRANTED THIS RESTRICTED
STOCK OR ACQUIRING SHARES HEREUNDER, PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AWARD
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE
VESTING PERIOD. FOR ANY PERIOD, OR AT
ALL AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANTS RIGHT OR THE RIGHT OF THE COMPANY (OR THE
PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANTS RELATIONSHIP AS
A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

 

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10. Address
for Notices. Any notice to be given to the Company under the terms of this Award
Agreement will be addressed to the Company, in care of its Chief Legal Officer at
RealPage, Inc., 4000 International Parkway, Carrollton, Texas 75007, or at such other address as
the Company may hereafter designate in writing.

11. Grant
is Not Transferable. Except to the limited extent provided in Section 6, the unvested
Shares subject to this grant and the rights and privileges conferred
hereby will not be
transferred, assigned, pledged or hypothecated in any way (whether by operation of law or
otherwise) and will not be subject to sale under execution, attachment or similar process. Upon any
attempt to transfer, assign, pledge, hypothecate or otherwise dispose of any unvested Shares of
Restricted Stock subject to this grant, or any right or privilege conferred hereby, or upon any
attempted sale under any execution, attachment or similar process, this grant and the rights and
privileges conferred hereby immediately will become null and void.

12. Binding
Agreement, Subject to the limitation on the transferability of this grant
contained herein, this Award Agreement will be binding upon and inure to the benefit of
the heirs, legatees, legal representatives, successors and assigns of
the parties hereto.

13. Additional Conditions to Release from Escrow. The Company will not be required to issue
any certificate or certificates for Shares hereunder or release such Shares from the escrow
established pursuant to Section 2 prior to fulfillment of all the following conditions: (a) the
admission of such Shares to listing on all stock exchanges on which such class of stock is then
listed: (b) the completion of any registration or other qualification of such Shares under any
state or federal law or under the rulings or regulations of the Securities and Exchange Commission
or any other governmental regulatory body which the Administrator will, in its absolute
discretion, deem necessary or advisable: (c) the obtaining of any approval or other clearance from
any state or federal governmental agency, which the Administrator will, in its absolute discretion,
determine to be necessary or advisable: and (d) the lapse of such reasonable period of time
following the date of grant of the Restricted Stock as the
Administrator may establish from time to
time for reasons of administrative convenience.

14. Plan Governs. This Award Agreement is subject to all terms and provisions of the Plan.
In the event of a conflict between one or more provisions of this Award Agreement and one or more
provisions of the Plan, the provisions of the Plan will govern. Capitalized terms used and not
defined in this Award Agreement will have the meaning set forth in the Plan.

15. Administrator Authority. The Administrator will have the power to interpret the Plan
and this Award Agreement and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret or revoke any such rules
(including, but not limited to, the determination of whether or not any Shares of Restricted Stock
have vested). All actions taken and all interpretations and determinations made by the
Administrator in good faith will be final and binding upon Participant, the Company and all other
interested persons. No member of the Administrator will be personally
liable for any action,
determination or interpretation made in good faith with respect to the Plan or this Award
Agreement.

 

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16. Electronic
Delivery. The Company may, in its sole discretion, decide to deliver any
documents related to the Shares of Restricted Stock awarded under the Plan or future Restricted
Stock that may be awarded under the Plan by electronic means or request Participant’s consent to
participate in the Plan by electronic means. Participant hereby consents to receive such documents
by electronic delivery and agrees to participate in the Plan through any on-line or electronic
system established and maintained by the Company or another third party designated by the Company.

17. Captions.
Captions provided herein are for convenience only and are not to serve as a
basis for interpretation or construction of this Award Agreement.

18. Agreement Severable. In the event that any provision in this Award Agreement will be
held invalid or unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining provisions of this
Award Agreement.

19. Modifications to the Agreement. This Award Agreement constitutes the entire
understanding of the parties on the subjects covered. Participant expressly warrants that he or she
is not accepting this Award Agreement in reliance on any promises, representations, or inducements
other than those contained herein. Modifications to this Award Agreement or the Plan can be made
only in an express written contract executed by a duly authorized officer of the Company.
Notwithstanding anything to the contrary in the Plan or this Award Agreement, the Company reserves
the right to revise this Award Agreement as it deems necessary or
advisable, in its sole discretion
and without the consent of Participant, to comply with Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”) or to otherwise avoid imposition of any additional tax or income
recognition under Section 409A of the Code in connection to this Award of Restricted Stock.

20. Amendment,
Suspension or Termination of the Plan. By accepting this Award, Participant
expressly warrants that he or she has received an Award of Restricted Stock under the Plan, and has
received, read and understood a description of the Plan. Participant understands that the Plan is
discretionary in nature and may be amended, suspended or terminated
by the Company at any time.

21. Forfeiture
Events. Participant acknowledges and agrees that, (a) if Participant’s
status as a Service Provider terminates for Cause (as defined herein), or (b) if Participant’s
status as a Service Provider terminates by reason of a Voluntary Termination (as defined herein)
and participant engages in Acts Harmful to the Interest of the Company (as defined herein) within
one (1) year after the Voluntary Termination, as determined by the Administrator, then, to the
extent permitted by applicable law, (i) the Participant will (A) immediately forfeit any right the
Shares of Restricted Stock issued under this Award Agreement, whether
vested or unvested, and
shall, within three (3) business days after receiving a written
demand therefor from the Company,
return and surrender to the Company

 

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for
cancellation all Shares of Restricted Stock of the Company received by the Participant pursuant to this Award Agreement, and (B) immediately
forfeit any right to, and shall, within three (3) business days after receiving a written demand
therefore from the Company, pay to the Company a cash payment equal to the value of all proceeds
received by Participant within six (6) months before or after the date of the termination of
Participant’s status as a Service Provider from the sale of any Shares of the Restricted Stock
originally acquired by Participant pursuant to this Award of Restricted Stock.

For
purposes of this provision, “Acts Harmful to the Interest of the Company” shall mean (a)
accepting employment with or serving in any other capacity for any business entity that is in
competition with the Company; (b) soliciting, recruiting, or employing any employee of the Company
for the benefit of another business entity that is not an affiliate (as defined in Rule 12b-2 of
the Exchange Act) of the Company: (c) disclosing any trade secret or confidential information of
the Company under circumstances that are injurious to the Company: or (d) disparagement of the
Company or any affiliate (as defined in Rule 12b-2 of the Exchange Act) or their business,
products, directors, officers or employees.

For
purposes of this provision, “Cause” shall mean (a) the unauthorized disclosure of any
trade secret or confidential information of the Company: (b) the commission of any act of
dishonesty, embezzlement or fraud: (c) the commission of any act of insubordination or willful
violation of law or any policy of the Company: or (d) conviction of a felony, which in the
determination of the Administrator, causes substantial injury and discredit to the Company.

For purposes of this provision, “Voluntary Termination” shall mean, (a) with respect to an
Employee, a termination of employment with the Company, or any Parent or Subsidiary, which is
initiated voluntarily by the Employee, as determined in the sole discretion of the Administrator:
provided, however, that a Voluntary Termination shall not include a termination of employment by
reason of death. Disability or retirement from active service at or after age sixty-five (65) or a
breach of any material obligation by the Company; (b) with respect to a Consultant, a cessation of
services for the Company, or any Parent or Subsidiary, which is initiated voluntarily by the
Consultant, as determined in the sole discretion of the Administrator: or (c) with respect to a
Director, a resignation or other cessation of service as a member of
the Board initiated
voluntarily by the Director, as determined in the sole discretion of
the Administrator.

22. Governing Law. This Award Agreement will be governed by the laws of the State of
Texas, without giving effect to the conflict of law principles thereof. For purposes of litigating
any dispute that arises under this Award of Restricted Stock or this Award Agreement, the parties
hereby submit to and consent to the jurisdiction of the State of Texas, and agree that such
litigation will be conducted in the courts of Denton County, Texas, or the federal courts for the
United States for the Northern District of Texas, and no other courts, where this Award of
Restricted Stock is made and/or to be performed.

 

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EXHIBIT III 

REALPAGE,
INC.

CONFIDENTIAL INFORMATION,

INVENTION ASSIGNMENT, AND ARBITRATION AGREEMENT

As
a condition of my employment with RealPage, Inc., or its subsidiaries, affiliates,
successors or assigns (together the “Company”), and in consideration of my employment with the
Company and my receipt of the compensation now and hereafter paid to me by the Company, and other
good and valuable consideration herein, the undersigned agrees to the following provisions of this
Confidential Information. Invention Assignment, and Arbitration
Agreement (this “Agreement”):

1. Confidential Information.

1. Company Information. I agree and acknowledge that as an Employee of the Company. I will be
given access to Confidential Information that the Company has collected, developed, and/or
discovered over time, and at great expense. I agree that during and for five (5) years after my
employment with the Company terminates, regardless of the reason for termination. I will hold in
the strictest confidence, and will not use (except for the benefit of the Company during my
employment) or disclose to any person, firm, or corporation (without written authorization of the
President or the Board of Directors of the Company) any Company Confidential Information. I
understand that my unauthorized use or disclosure of Company Confidential Information during my
employment may lead to disciplinary action, up to and including immediate termination and legal
action by the Company. I understand that “Company
Confidential Information” means any non-public
information that is not readily and easily available to the public or a matter of common knowledge
to those in the Company’s business, trade, or industry that relates to the actual or anticipated
business, research or development of the Company, or to the Company’s technical data, trade
secrets, or know-how, including, but not limited to, research, product plans, or other
information regarding the Company’s products or services and markets therefore, customer lists and
customers (including, but not limited to, customers of the Company on which I called or with which
I may become acquainted during the term of my employment), software, developments, inventions,
processes, formulas, technology, designs, drawings, engineering, hardware
configuration information, marketing, finances, and other business
information: provided, however,
Company Confidential Information does not include any of the foregoing items to the extent the same
have become publicly known and made generally available through no wrongful act of mine or of
others. I understand that nothing in this Agreement is intended to limit employees’ rights to
discuss the terms, wages, and working conditions of their employment, as protected by applicable
law.

 

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2. Former
Employer Information. I agree that during my employment with the
Company, I will not
improperly use, disclose, or induce the Company to use any proprietary
information or trade secrets of any former or concurrent employer or
other person or entity. I
further agree that I will not bring onto the premises of the Company or transfer onto the Company’s
technology systems any unpublished document, proprietary information, or trade secrets belonging to
any such employer, person, or entity unless consented to in writing by both the Company and such
employer, person, or entity.

3. Third Party Information. I recognize that the Company may have received and in the future
may receive from third parties associated with the Company, e.g., the Company’s customers,
suppliers, licensors, licensees, partners, or collaborators
(“Associated Third Parties”) their
confidential or proprietary information (“Associated Third Party Confidential
Information”). By way of example  Associated Third Party Confidential Information may include the
habits or practices of Associated Third Parties, the technology of Associated Third Parties,
requirements of Associated Third Parties, and information related to the business conducted between
the Company and such Associated Third Parties. I agree at all times during my employment with the
Company and thereafter to hold in the strictest confidence, and not to use or to disclose to any
person, firm, or corporation, any Associated Third Party Confidential Information, except
as necessary in carrying out my work for the Company consistent with the Company’s agreement with
such Associated Third Parties. I further agree to comply with any and all Company policies and
guidelines that may be adopted from time to time regarding Associated Third Parties and Associated
Third Party Confidential Information. I understand that my unauthorized use or disclosure of
Associated Third Party Confidential Information or violation of any
Company policies during my
employment will lead to disciplinary action, up to and including immediate termination and legal
action by the Company.

Inventions.

4. Inventions
Retained and Licensed. I have attached hereto as Exhibit A, a list
describing all inventions, discoveries, original works of authorship, developments, improvements,
and trade secrets that were conceived in whole or in part by me prior to my employment with the
Company and to which  I have any right, title, or interest, and which relate to the Company’s
proposed business, products, or research and development
(“Prior Inventions”); or, if no such list
is attached, I represent and warrant that there are no such Prior
Inventions. Furthermore, I
represent and warrant that if any Prior Inventions are included on
Exhibit A, they will not
materially affect my ability to perform all obligations under this
Agreement. If, in the course of
my employment with the Company. I incorporate into or use in connection with any product, process,
service, technology, or other work by or on behalf of the Company any Prior Invention, I hereby
grant to the Company a non-exclusive, royalty-free, fully paid-up, irrevocable, perpetual,
worldwide license, with the right to grant and authorize sublicenses, to make, have made, modify,
use, import, offer for sale, and sell such Prior Invention as part of or in connection with such
product, process, service, technology, or other work, and to practice any method related thereto.

 

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5. Assignment of Inventions. I agree that I will promptly make full written disclosure to the
Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the
Company, or its designee, all my right, title, and interest in and to any and all inventions,
original works of authorship, developments, concepts, improvements, designs,
discoveries, ideas, trademarks, or trade secrets, whether or not patentable or registrable under
patent, copyright, or similar laws, which I may solely or jointly conceive or develop or reduce to
practice, or cause to be conceived or developed or reduced to
practice, during the period of time I
am in the employ of the Company (including during my off-duty hours), or with the use of Company’s
equipment, supplies, facilities, or Company Confidential Information, except as provided in Section
II.E below (collectively referred to as “Inventions”). I further acknowledge that all original
works of authorship that arc made by me (solely or jointly with others) within the scope of and
during the period of my employment with the Company and that are protectable by copyright are
“works made for hire,” as that term is defined in the United
States Copyright Act. I understand
and agree that the decision whether or not to commercialize or market any Inventions is within the
Company’s sole discretion and for the Company’s sole benefit, and that no royalty or other
consideration will be due to me as a result of the Company’s efforts to commercialize or market any
such Inventions.

6. Maintenance of Records. I agree to keep and maintain adequate, current, accurate, and
authentic written records of all Inventions made by me (solely or jointly with others) during the
term of my employment with the Company. The records will be in the
form of notes, sketches,
drawings, electronic files, reports, or any other format that may be specified by the Company. The
records are and will be available to and remain the sole property of the Company at all times.

7. Patent
and Copyright Registrations. I agree to assist the Company, or
its designee, at the
Company’s expense, in every proper way to secure the Company’s rights in the Inventions and any
rights relating thereto in any and all countries, including the disclosure to the Company of all
pertinent information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments, and all other instruments that the Company shall deem proper or
necessary in order to apply for, register, obtain, maintain, defend, and enforce such rights, and
in order to assign and convey to the Company, its successors, assigns, and nominees the sole and
exclusive rights, title, and interest in and to such Inventions and any rights relating thereto,
and testifying in a suit or other proceeding relating to such Inventions and any rights relating
thereto. I further agree that my obligation to execute or cause to be executed, when it is in my
power to do so, any such instrument or papers shall continue alter the termination of this
Agreement. If the Company is unable because of my mental or physical incapacity or for any other
reason to secure my signature with respect to any Inventions, including, without limitation, to
apply for or to pursue any application for any United States or foreign patents or copyright
registrations covering such Inventions, then I hereby irrevocably designate and appoint the Company
and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my
behalf and stead, to execute and file any papers and oaths, and to do all other lawfully permitted
acts with respect to such Inventions with the same legal force and effect as if executed by me.

 

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Conflicting Employment.

8. Current
Obligations. I agree that during the term of my employment with the Company.
I will not engage in or undertake any other employment, occupation, consulting relationship, or
commitment that is directly related to the business in which the Company is now involved or becomes
involved or has plans to become involved, nor will I engage in any other activities that conflict
with my obligations to the Company.

B. Prior Relationships. Without limiting Section III.A. I represent that I have no other
agreements, relationships, or commitments to any other person or entity that conflict with my
obligations to the Company under this Agreement or my ability to become employed and perform the
services for which I am being hired by the Company. I further agree that if I have signed a
confidentiality agreement or similar type of agreement with any former employer or other entity. I
will comply with the terms of any such agreement to the extent that its terms are lawful under
applicable law. I represent and warrant that after undertaking a careful search (including searches
of my computers, cell phones, electronic devices, and documents). I have returned all property and
confidential information belonging to all prior employers, Moreover. I agree to fully indemnify the
Company, its directors, officers, agents, employees, investors, shareholders, administrators,
affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns for all
verdicts, judgments, settlements, and other losses incurred by any of them resulting from my breach
of my obligations under any agreement to which I am a party or obligation to which I am bound, as
well as any reasonable attorneys’ fees and costs if the
plaintiff is the prevailing party in such
an action, except as prohibited by law.

Returning Company Documents. Upon separation from employment with the Company or on demand by
the Company during my employment, I will immediately deliver to the Company, and will not keep in
my possession, recreate, or deliver to anyone else, any and all
Company property, including, but
not limited to, Company Confidential Information, Associated Third Party Confidential Information,
as well as all devices and equipment belonging to the Company (including computers, handheld
electronic devices, telephone equipment, and other electronic devices), Company credit cards,
records, data, notes, notebooks, reports, files, proposals, lists, correspondence, specifications,
drawings, blueprints, sketches, materials, photographs, charts, any other documents and property,
and reproductions of any and all of the aforementioned items that
were developed by me pursuant to
my employment with the Company, obtained by me in connection with my employment with the Company,
or otherwise belonging to the Company, its successors, or assigns, including, without limitation,
those records maintained pursuant to Section II.C I also consent to an exit interview to confirm
my compliance with this Section IV.

 

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Termination Certification. Upon separation from employment with the Company, I agree to
immediately sign and deliver to the Company the “Termination Certification” attached hereto as
Exhibit B. I also agree to keep the Company advised of my home and
business address for a period of seven (7) years after termination of my employment with the
Company, so that the Company can contact me regarding my continuing obligations provided by this
Agreement.

Notification of New Employer. In the event that I leave the employ of the Company, I hereby
grant consent to notification by the Company to my new employer about my obligations under this
Agreement.

Conflict of Interest Guidelines. I agree to diligently adhere to all policies of the Company,
including the Company’s insider’s trading policies and the Conflict of Interest Guidelines
attached as Exhibit C hereto, which may be revised from time to time during my employment.

Representations. I agree to execute any proper oath or verify any proper document required to
carry out the terms of this Agreement. I represent that my performance of all the terms of this
Agreement will not breach any agreement to keep in confidence proprietary information acquired by
me in confidence or in trust prior to my employment by the Company. I hereby represent and warrant
that I have not entered into, and I will not enter into, any oral or written agreement in conflict
herewith.

Audit.
I acknowledge that I have no reasonable expectation of privacy in any computer,
technology system, email, handheld device, telephone, or documents
that are used to conduct the
business of the Company. As such, the Company has the right to audit and search all such items and
systems, without further notice to me, to ensure that the Company is licensed to use the software
on the Company’s devices in compliance with the Company’s software licensing policies, to ensure
compliance with the Company’s policies, and for any other business-related purposes in the
Company’s sole discretion. I understand that 1 am not permitted to add any unlicensed,
unauthorized, or non-compliant applications to the Company’s technology systems and that I shall
refrain from copying unlicensed software onto the Company’s technology systems or using
non-licensed software or websites. I understand that it is my
responsibility to comply with the
Company’s policies governing use of the Company’s documents and the internet, email, telephone, and
technology systems to which I will have access in connection with my employment.

Dispute Resolution. I agree that any and all controversies, claims, or disputes with the
Company (including any employee, officer, director, stockholder or benefit Plan of the Company)
shall be resolved in accordance with the procedures set forth in Section 23 of my Employment
Agreement with the Company.

 

-5-

 

General Provisions.

9. Entire Agreement. This Agreement, together with the Exhibits herein, my executed
Employment Agreement and any agreements relating to restricted stock and other awards
pursuant to the RealPage. Inc. Amended and Restated 2010 Equity Incentive Plan, and the terms of
the Significant Owner Agreement (if one was executed by me) set forth the entire agreement and
understanding between the Company and me relating to the subject matter herein and supersedes all
prior discussions or representations between us, including, but not
limited to, any representations
made during my interview(s) or relocation negotiations, whether written or oral. No modification of
or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be
effective unless in writing signed by the President of the Company and me. Any subsequent change or
changes in my duties, salary, or compensation will not affect the validity or scope of this
Agreement.

10. Severability.
If one or more of the provisions in this Agreement are deemed void by law,
then the remaining provisions will continue in full force and effect.

11. Successors and Assigns. This Agreement will be binding upon my heirs, executors, assigns,
administrators, and other legal representatives, and will be for the benefit of the Company, its
successors, and its assigns. There are no intended third-party beneficiaries to this Agreement,
except as expressly stated.

E. Waiver. Waiver by the Company of a breach of any provision of this Agreement will not
operate as a waiver of any other or subsequent breach.

F. Survivorship. The rights and obligations of the parties to this Agreement will survive
termination of my employment with the Company.

G. Signatures. This Agreement may be signed in two counterparts, each of which shall be
deemed an original, with the same force and effectiveness as though executed in a single document.

	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

Signature
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name of Employee (typed or printed)
	 	 
	 
	Witness:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name (typed or printed)	 	 	 	 	 	 

 

-6-

 

Exhibit A

LIST OF PRIOR INVENTIONS

AND ORIGINAL WORKS OF AUTHORSHIP

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Identifying Number or Brief	 
	Title	 	Date	 	 	Description	 
	 
	 	 	 	 	 	 	 	 

___ No
inventions or improvements

___ Additional Sheets Attached

	 	 	 	 	 
	Signature of Employee:
	 	 	 	 

	 	 	 	 	 
	Print Name of Employee:
	 	 	 	 

	 	 	 	 	 
	Date:
	 	 	 	 

 

 

 

Exhibit B

REALPAGE, INC.

TERMINATION CERTIFICATION

This
is to certify that I do not have in my possession, nor have I failed to return, any
devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings,
blueprints, sketches, materials, equipment, any other documents or property, or reproductions of
any and all aforementioned items belonging to RealPage, Inc., its subsidiaries, affiliates,
successors or assigns (together, the “Company”).

I
further certify that I have complied with all the terms of the attached Confidential
Information, Invention Assignment, and Arbitration Agreement signed
by me, including the reporting
of any inventions and original works of authorship (as defined therein) conceived or made by me
(solely or jointly with others), as covered by that agreement.

I
further agree that, in compliance with the Confidential Information, Invention Assignment,
and Arbitration Agreement, I will preserve as confidential all Company Confidential Information and
Associated Third Party Confidential Information, including trade secrets, confidential knowledge,
data, or other proprietary information relating to products, processes, know-how, designs,
formulas, developmental or experimental work, computer programs, databases, other original works of
authorship, customer lists, business plans, financial information, or other subject matter
pertaining to any business of the Company or any of its employees,
clients, consultants, or
licensees, to the extent required by the terms of that agreement.

I also agree that for three (3) years from this date. I will not either directly or indirectly
solicit any of the Company’s employees to leave their employment, to the extent required by the
terms of the Confidential Information, Invention Assignment, and Arbitration Agreement.

After
leaving the Company’s employment. I will be employed by
 __________ in the position of:
 _______.

	 	 	 	 	 
	 

	 	 

Signature of employee
	 	 
	 
	 	 	 	 
	 

	 	 

Print name
	 	 
	 
	 	 	 	 
	 

	 	 

Date
	 	 
	 
	 	 	 	 
	Address for Notifications:
	 	 	 	 
	 

	 	 

	 	 

 

 

 

Exhibit C 

REALPAGE, INC.

CONFLICT OF INTEREST GUIDELINES

It
is the policy of RealPage, Inc. to conduct its affairs in strict compliance with the letter
and spirit of the law and to adhere to the highest principles of
business ethics. Accordingly, all
officers, employees, and independent contractors must avoid
activities that are in conflict, or
give the appearance of being in conflict, with these principles and with the interests of the
Company. The following are potentially compromising situations that must be avoided:

1. Revealing confidential information to outsiders or misusing confidential information.
Unauthorized divulging of information is a violation of this policy whether or not for personal
gain and whether or not harm to the Company is intended. (The At-Will
Employment, Confidential
Information, Invention Assignment, and Arbitration Agreement elaborates on this principle and is a
binding agreement.)

2. Accepting or offering substantial gifts, excessive entertainment, favors, or payments that
may be deemed to constitute undue influence or otherwise be improper or embarrassing to the
Company.

3. Participating in civic or professional organizations that might involve divulging
confidential information of the Company.

4. Initiating or approving personnel actions affecting reward or punishment of employees or
applicants where there is a family relationship or is or appears to be a personal or social
involvement.

5. Initiating or approving any form of personal or social harassment of employees.

6. Investing
or holding outside directorship in suppliers, customers, or competing companies,
including financial speculations, where such investment or directorship might influence in any
manner a decision or course of action of the Company.

7. Borrowing from or lending to employees, customers, or suppliers.

8. Acquiring real estate of interest to the Company.

9. Improperly using or disclosing to the Company any proprietary information or trade
secrets of any former or concurrent employer or other person or entity with whom obligations
of confidentiality exist.

10. Unlawfully discussing prices, costs, customers, sales, or markets with competing
companies or their employees.

11. Making any unlawful agreement with distributors with respect to prices.

12. Improperly using or authorizing the use of any inventions that are the subject of patent
claims of any other person or entity.

13. Engaging in any conduct that is not in the best interest of the Company.

Each officer, employee, and independent contractor must take every necessary action to ensure
compliance with these guidelines and to bring problem areas to the attention of higher management
for review. Violations of this conflict of interest policy may result in discharge without warning.exv10w1

Exhibit 10.1

 

FURMANITE CORPORATION

1994 STOCK INCENTIVE PLAN

Amendment and Restatement

Effective June 14, 2011

 

 

	 	 	 	 	 	 	 	 	 
	TABLE OF CONTENTS	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE I	 	PLAN
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	 	1.1	 	Purpose
	 	 	1	 
	 	 	1.2	 	Term of Plan
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE II	 	DEFINITIONS
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	 	2.1	 	Affiliate
	 	 	2	 
	 	 	2.2	 	Award
	 	 	2	 
	 	 	2.3	 	Board
	 	 	2	 
	 	 	2.4	 	Change of Control
	 	 	2	 
	 	 	2.5	 	Code
	 	 	3	 
	 	 	2.6	 	Committee
	 	 	3	 
	 	 	2.7	 	Company
	 	 	3	 
	 	 	2.8	 	Disability
	 	 	3	 
	 	 	2.9	 	Distribution Date
	 	 	4	 
	 	 	2.10	 	Dividend Equivalent
	 	 	4	 
	 	 	2.11	 	Employee Benefits Agreement
	 	 	4	 
	 	 	2.12	 	Employee
	 	 	4	 
	 	 	2.13	 	Exchange Act
	 	 	4	 
	 	 	2.14	 	Fair Market Value
	 	 	4	 
	 	 	2.15	 	Holder
	 	 	4	 
	 	 	2.16	 	Incentive Option
	 	 	4	 
	 	 	2.17	 	KSI Deferred Compensation Plans
	 	 	4	 
	 	 	2.18	 	Mature Shares
	 	 	5	 
	 	 	2.19	 	Minimum Statutory Tax Withholding Obligation
	 	 	5	 
	 	 	2.20	 	Net Shares
	 	 	5	 
	 	 	2.21	 	Non-Employee Director
	 	 	5	 
	 	 	2.22	 	Nonqualified Option
	 	 	5	 
	 	 	2.23	 	Option
	 	 	5	 
	 	 	2.24	 	Option Agreement
	 	 	5	 
	 	 	2.25	 	Permissible under Section 409A
	 	 	5	 
	 	 	2.26	 	Plan
	 	 	5	 
	 	 	2.27	 	Restricted Stock
	 	 	5	 
	 	 	2.28	 	Restricted Stock Agreement
	 	 	5	 
	 	 	2.29	 	Restricted Stock Award
	 	 	5	 
	 	 	2.30	 	Retirement
	 	 	5	 
	 	 	2.31	 	Restricted Stock Unit
	 	 	5	 
	 	 	2.32	 	Restricted Stock Unit Award
	 	 	5	 
	 	 	2.33	 	Section 409A
	 	 	6	 
	 	 	2.34	 	Stock
	 	 	6	 
	 	 	2.35	 	Substantial Risk of Forfeiture
	 	 	6	 
	 	 	2.36	 	Ten Percent Stockholder
	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE III	 	ELIGIBILITY
	 	 	7	 

-i-

 

	 	 	 	 	 	 	 	 	 
	TABLE OF CONTENTS

(continued)	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IV	 	GENERAL PROVISIONS RELATING TO AWARDS
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	 	 	4.1	 	Authority to Grant Awards
	 	 	8	 
	 	 	4.2	 	Dedicated Shares; Maximum Awards
	 	 	8	 
	 	 	4.3	 	Non-Transferability
	 	 	8	 
	 	 	4.4	 	Requirements of Law
	 	 	8	 
	 	 	4.5	 	Changes in the Company’s Capital Structure
	 	 	9	 
	 	 	4.6	 	Election Under Section 83(b) of the Code
	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE V	 	OPTIONS
	 	 	12	 
	 	 	 	 	 
	 	 	 	 
	 	 	5.1	 	Type of Option
	 	 	12	 
	 	 	5.2	 	Exercise Price
	 	 	12	 
	 	 	5.3	 	Duration of Options
	 	 	12	 
	 	 	5.4	 	Amount Exercisable
	 	 	14	 
	 	 	5.5	 	Exercise of Options
	 	 	14	 
	 	 	5.6	 	Substitution Options
	 	 	15	 
	 	 	5.7	 	No Rights as Stockholder
	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI	 	RESTRICTED STOCK AWARDS
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	 	 	6.1	 	Restricted Stock Awards
	 	 	16	 
	 	 	6.2	 	Holder’s Rights as Stockholder
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VII	 	RESTRICTED STOCK UNIT AWARDS
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	 	 	7.1	 	Authority to Grant Restricted Stock Unit Awards
	 	 	17	 
	 	 	7.2	 	Restricted Stock Unit Award
	 	 	17	 
	 	 	7.3	 	Restricted Stock Unit Award Agreement
	 	 	17	 
	 	 	7.4	 	Dividend Equivalents
	 	 	17	 
	 	 	7.5	 	Form of Payment Under Restricted Stock Unit Award
	 	 	17	 
	 	 	7.6	 	Time of Payment Under Restricted Stock Unit Award
	 	 	17	 
	 	 	7.7	 	No Rights as Stockholder
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VIII	 	ADMINISTRATION
	 	 	18	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IX	 	AMENDMENT OR TERMINATION OF PLAN
	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE X	 	MISCELLANEOUS
	 	 	20	 
	 	 	 	 	 
	 	 	 	 
	 	 	10.1	 	No Establishment of a Trust Fund
	 	 	20	 
	 	 	10.2	 	No Employment or Affiliation Obligation
	 	 	20	 
	 	 	10.3	 	Forfeiture
	 	 	20	 
	 	 	10.4	 	Tax Withholding
	 	 	20	 
	 	 	10.5	 	Written Agreement
	 	 	21	 
	 	 	10.6	 	Indemnification of the Committee
	 	 	21	 
	 	 	10.7	 	Gender
	 	 	22	 
	 	 	10.8	 	Headings
	 	 	22	 
	 	 	10.9	 	Other Compensation Plans
	 	 	22	 

-ii-

 

	 	 	 	 	 	 	 	 	 
	TABLE OF CONTENTS

(continued)	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	 	 	 	 
	 	 	10.10	 	Other Options or Awards
	 	 	22	 
	 	 	10.11	 	Option Adjustments Pursuant to the Employee Benefits Agreement
	 	 	22	 
	 	 	10.12	 	Governing Law
	 	 	22	 
	 	 	10.13	 	Compliance with Section 409A
	 	 	22	 

-iii-

 

ARTICLE I

PLAN

          1.1        Purpose. The Plan is intended to advance the best interests of the Company and its
stockholders by providing those persons who have substantial responsibility for the management and
growth of the Company and its Affiliates with additional incentives and an opportunity to obtain or
increase their proprietary interest in the Company, thereby encouraging them to continue in their
employment or affiliation with the Company or any of its Affiliates.

          1.2        Term of Plan. No Award shall be granted under the Plan after March 4, 2019. The Plan
shall remain in effect until all Awards under the Plan have been satisfied or expired.

-1-

 

ARTICLE II

DEFINITIONS

             The words and phrases defined in this Article shall have the meaning set out in these
definitions throughout the Plan, unless the context in which any such word or phrase appears
reasonably requires a broader, narrower or different meaning.

          2.1        “Affiliate” means any parent corporation and any subsidiary corporation. The term “parent
corporation” means any corporation (other than the Company) in an unbroken chain of corporations
ending with the Company if, at the time of the action or transaction, each of the corporations
other than the Company owns stock possessing 50 percent or more of the total combined voting power
of all classes of stock in one of the other corporations in the chain. The term “subsidiary
corporation” means any corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if, at the time of the action or transaction, each of the corporations
other than the last corporation in the unbroken chain owns stock possessing 50 percent or more of
the total combined voting power of all classes of stock in one of the other corporations in the
chain.

          2.2        “Award” means any Incentive Option, Nonqualified Option, Restricted Stock Award or
Restricted Stock Unit Award granted under the Plan.

          2.3        “Board” means the board of directors of the Company.

          2.4        “Change of Control” means the occurrence of any of the following after March 4, 2009:

              (a) the acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) (a “Covered Person”) of beneficial ownership
(within the meaning of rule 13d-3 promulgated under the Exchange Act) of 20 percent or more
of either (i) the then outstanding shares of Stock (the “Outstanding Company Common Stock”)
or (ii) the combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this Section 2.4(a), the following
acquisitions shall not constitute a Change in Control of the Company: (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 entity controlled by the Company or (iii) any
acquisition by any corporation pursuant to a transaction which complies with clauses (i),
(ii) and (iii) of Section 2.4(c);

              (b) individuals who, as of March 4, 2009, constitute the Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board of
Directors; provided, however, that any individual becoming a director subsequent to March 4,
2009, 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

-2-

 

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

              (c) the consummation of (i) a reorganization, merger or consolidation or sale of the
Company or (ii) a disposition of all or substantially all of the assets of the Company (a
“Business Combination”), in each case, unless, following such Business Combination, (A) all
or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 80 percent of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a corporation which
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 Common Stock or Outstanding Company Voting Securities, as the case may
be, (B) no Covered Person (excluding any employee benefit plan (or related trust) of the
Company or such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 80 percent or more of, respectively, the then outstanding shares of
common stock of the corporation resulting from such Business Combination or the combined
voting power of the then outstanding voting securities of such corporation, except to the
extent that such ownership existed prior to the Business Combination, and (C) at least a
majority of the members of the board of directors of the corporation 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;
provided, however, that any individual becoming a director subsequent to March 4, 2009 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.

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

          2.6        “Committee” means a committee of at least two persons appointed by the Board.

          2.7        “Company” means Furmanite Corporation, a Delaware corporation.

          2.8        “Disability” means, as determined by the Committee in its discretion exercised in good
faith, (a) in the case of an Award that is exempt from the application of the requirements of
Section 409A a medically determinable mental or physical impairment which, in the opinion of a
physician selected by the Committee, shall prevent the Holder from engaging in any substantial
gainful activity and 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 and which: (i) was not
contracted,

-3-

 

suffered or incurred while the Holder was engaged in, or did not result from having engaged
in, a felonious criminal enterprise; (ii) did not result from alcoholism or addiction to narcotics;
(iii) did not result from an injury incurred while a member of the Armed Forces of the United
States for which the Holder receives a military pension; and (iv) did not result from an
intentionally self-inflicted injury and (b) in the case of an Award that is not exempt from the
application of the requirements of Section 409A, a physical or mental condition of the Holder where
(i) the Holder is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (ii) the Holder is, by
reason of any medically determinable physical or mental impairment that can be expected to result
in death or can be expected to last for a continuous period of not less than 12 months, receiving
income replacement benefits for a period of not less than three months under an accident and health
plan covering employees of the Company. A determination of Disability may be made by a physician
selected or approved by the Committee and, in this respect, the Holder shall submit to an
examination by such physician upon request by the Committee.

          2.9        “Distribution Date” shall have the meaning specified in the Distribution Agreement by and
between the Company, Kaneb Services LLC and Kaneb Pipeline Partners, L.P.

          2.10       “Dividend Equivalent” means a payment equivalent in amount to dividends paid with respect
to the Stock to the Company’s stockholders.

          2.11       “Employee Benefits Agreement” means the Employee Benefits Agreement by and between the
Company and Kaneb Services LLC, a Delaware limited liability company.

          2.12       “Employee” means a person employed by the Company or any Affiliate as a common law
employee.

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

          2.14       “Fair Market Value” of the Stock as of any date means the closing price of the Stock on
such date, or, if the Stock was not traded on such date, on the immediately preceding day that the
Stock was so traded. However, if the Stock is not listed on a securities exchange, the Fair Market
Value will be an amount determined by the Committee in a manner that complies with the requirements
of Section 409A.

          2.15       “Holder” means a person who has been granted an Award or any person who is entitled to
receive Stock under an Award.

          2.16       “Incentive Option” means an Option granted under the Plan which is designated as an
“Incentive Option” and satisfies the requirements of section 422 of the Code.

          2.17       “KSI Deferred Compensation Plans” means the Kaneb Services, Inc. 1996 Supplemental
Deferred Compensation Plan, the Kaneb Services, Inc. Non-Employee Directors Deferred Stock Unit
Plan, the Kaneb Services, Inc. Deferred Stock Unit Plan, and any other nonqualified deferred
compensation plans that the Company may adopt in the future.

-4-

 

          2.18       “Mature Shares” means shares of Stock that the Holder has held for at least six months.

          2.19       “Minimum Statutory Tax Withholding Obligation” means, with respect to an Award, the
amount the Company, an Affiliate or other subsidiary is required to withhold for federal, state,
local and foreign taxes based upon the applicable minimum statutory withholding rates required by
the relevant tax authorities.

          2.20       “Net Shares” means the shares of Stock to be issued upon exercise of an Option reduced by
the number of unencumbered, transferable Mature Shares that would be required to be tendered to the
Company to satisfy the exercise price of the Option.

          2.21       “Non-Employee Director” means any duly elected member of the Board who is not an
Employee.

          2.22       “Nonqualified Option” means an Option granted under the Plan other than an Incentive
Option.

          2.23       “Option” means either an Incentive Option or a Nonqualified Option granted under the Plan
to purchase shares of Stock.

          2.24       “Option Agreement” means the written agreement which sets out the terms of an Option.

          2.25       “Permissible under Section 409A” means with respect to a particular action (such as, the
grant, payment, vesting, settlement or deferral of an amount or Award under the Plan) that such
action shall not subject the compensation at issue to the additional tax or interest applicable
under Section 409A.

          2.26       “Plan” means the Furmanite Corporation 1994 Stock Incentive Plan, as set forth in this
document and as it may be amended from time to time.

          2.27       “Restricted Stock” means stock awarded or purchased under the Plan pursuant to a
Restricted Stock Agreement.

          2.28       “Restricted Stock Agreement” means the written agreement which sets out the terms of a
Restricted Stock Award.

          2.29       “Restricted Stock Award” means an Award of Restricted Stock.

          2.30       “Retirement” means the termination of an Employee’s employment relationship with the
Company and all Affiliates after attaining the age of 55.

          2.31       “Restricted Stock Unit” means a restricted stock unit credited to a Holder’s ledger
account maintained by the Company pursuant to Article VII.

          2.32       “Restricted Stock Unit Award” means an Award granted pursuant to Article VII.

-5-

 

          2.33       “Section 409A” means section 409A of the Code and the regulations and other guidance
promulgated by the United States Department of Treasury or the United States Internal Revenue
Service under section 409A of the Code, or any successor statute.

          2.34       “Stock” means the common stock of the Company, no par value, or, in the event that the
outstanding shares of common stock are later changed into or exchanged for a different class of
stock or securities of the Company or another corporation, that other stock or security. Shares of
Stock when issued may be represented by a certificate or by book or electronic entry.

          2.35       “Substantial Risk of Forfeiture” shall have the meaning ascribed to that term in Section
409A.

          2.36       “Ten Percent Stockholder” means an individual who, at the time the Option is granted,
owns stock possessing more than ten percent of the total combined voting power of all classes of
stock or series of the Company or of any Affiliate. An individual shall be considered as owning
the stock owned, directly or indirectly, by or for his brothers and sisters (whether by the whole
or half blood), spouse, ancestors and lineal descendants; and stock owned, directly or indirectly,
by or for a corporation, partnership, estate or trust, shall be considered as being owned
proportionately by or for its stockholders, partners or beneficiaries.

-6-

 

ARTICLE III

ELIGIBILITY

          The individuals who shall be eligible to receive Incentive Options shall be those key
Employees of the Company or any of its Affiliates as the Committee shall determine from time to
time. The individuals who shall be eligible to receive Awards other than Incentive Options shall
be those persons, including Employees, consultants, advisors and directors, who have substantial
responsibility for the management and growth of the Company or any of its Affiliates as the
Committee shall determine from time to time. Further, shares of Stock may be issued under the Plan
to participants and former participants in the KSI Deferred Compensation Plans in satisfaction of
the Company’s obligations thereunder.

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ARTICLE IV

GENERAL PROVISIONS RELATING TO AWARDS

          4.1         Authority to Grant Awards. The Committee may grant Awards to those key Employees of the
Company or any of its Affiliates and other eligible persons as it shall from time to time
determine, under the terms and conditions of the Plan. Subject only to any applicable limitations
set out in the Plan, the number of shares of Stock to be covered by any Award to be granted to any
person shall be as determined by the Committee.

          4.2         Dedicated Shares; Maximum Awards. The aggregate number of shares of Stock with respect to
which Awards may be granted under the Plan to current and former participants in the KSI Deferred
Compensation Plans pursuant to the terms thereof is 6,100,000. Such shares of Stock may be
treasury shares or authorized but unissued shares. The maximum number of shares of Stock with
respect to which Options may be granted under the Plan is 6,100,000 shares. The maximum number of
shares of Stock with respect to which Restricted Stock Awards and Restricted Stock Unit Awards may
be granted under the Plan is 1,250,000 shares. The maximum number of shares with respect to which
Options which may be granted to any person under the Plan during any calendar year is 750,000
shares. If a Holder’s Option is cancelled, the cancelled Option continues to be counted against
the maximum number of shares of Stock for which Options may be granted to the Holder under the
Plan. The number of shares stated in this Section 4.2 shall be subject to adjustment in accordance
with the provisions of Section 4.5. If any outstanding Award expires or terminates for any reason
or any Award is surrendered, the shares of Stock allocable to the unexercised portion of that Award
may again be subject to an Award under the Plan.

          4.3         Non-Transferability. Incentive Options shall not be transferable by the Employee other
than by will or under the laws of descent and distribution, and shall be exercisable, during the
Employee’s lifetime, only by him. Except as specified in the applicable Award agreements or in
domestic relations court orders, Awards other than Incentive Options shall not be transferable by
the Holder other than by will or under the laws of descent and distribution, and shall be
exercisable, during the Holder’s lifetime, only by him. In the discretion of the Committee, any
attempt to transfer an Award other than under the terms of the Plan and the applicable Award
agreement may terminate the Award.

          4.4         Requirements of Law. The Company shall not be required to sell or issue any shares of
Stock under any Award if issuing the shares of Stock would constitute or result in a violation by
the Holder or the Company of any provision of any law, statute or regulation of any governmental
authority. Specifically, in connection with any applicable statute or regulation relating to the
registration of securities, upon exercise of any Award, the Company shall not be required to issue
any shares of Stock unless the Committee has received evidence satisfactory to it to the effect
that the Holder will not transfer the shares of Stock except in accordance with applicable law,
including receipt of an opinion of counsel satisfactory to the Company to the effect that any
proposed transfer complies with applicable law. The determination by the Committee on this matter
shall be final, binding and conclusive. The Company may, but shall in no event be obligated to,
register any shares of Stock covered by the Plan pursuant to applicable securities laws of any
country or any political subdivision. In the event the shares of Stock issuable on exercise of

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an Option or any other Award are not registered, the Company may imprint on the certificate
evidencing the shares of Stock any legend that counsel for the Company considers necessary or
advisable to comply with applicable law; or should the shares of Stock be represented by book or
electronic entry rather than a certificate, the Company may take such steps to restrict transfer of
the shares of Stock as counsel for the Company considers necessary or advisable to comply with
applicable law. The Company shall not be obligated to take any other affirmative action in order
to cause the exercise of an Option or vesting under an Award, or the issuance of shares of Stock
pursuant thereto, to comply with any law or regulation of any governmental authority.

          4.5         Changes in the Company’s Capital Structure. (a) The existence of outstanding Awards shall
not affect in any way the right or power of the Company or its stockholders to make or authorize
any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s
capital structure or its business, any merger or consolidation of the Company, any issue of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Stock or its rights, the
dissolution or liquidation of the Company, any sale or transfer of all or any part of its assets or
business or any other corporate act or proceeding, whether of a similar character or otherwise.

               (a)         If the Company shall effect a subdivision or consolidation of shares or other
capital readjustment, the payment of a stock dividend, or other increase or reduction of the
number of shares of Stock outstanding, without receiving compensation for it in money,
services or property, then (i) the number, class or series and per share price of shares of
Stock subject to outstanding Awards under this Plan shall be appropriately adjusted in such
a manner as to entitle a Holder to receive upon exercise of an Award, for the same aggregate
cash consideration, the equivalent total number and class or series of shares he would have
received had he exercised his Award in full immediately prior to the event requiring the
adjustment, and (ii) the number and class or series of shares of Stock then reserved to be
issued under the Plan shall be adjusted by substituting for the total number and class or
series of shares of Stock then reserved, that number and class or series of shares of Stock
that would have been received by the owner of an equal number of outstanding shares of each
class or series of Stock as the result of the event requiring the adjustment.

              (b)         If while unexercised Awards remain outstanding under the Plan (i) the Company shall
not be the surviving entity in any merger, consolidation or other reorganization (or
survives only as a subsidiary of an entity other than an entity that was wholly-owned by the
Company immediately prior to such merger, consolidation or other reorganization), (ii) the
Company sells, leases or exchanges or agrees to sell, lease or exchange all or substantially
all of its assets to any other person or entity (other than an entity wholly-owned by the
Company), (iii) the Company is to be dissolved or (iv) the Company is a party to any other
corporate transaction (as defined under section 424(a) of the Code and applicable Department
of Treasury Regulations) that is not described in clauses (i), (ii) or (iii) of this
sentence (each such event is referred to herein as a “Corporate Change”), then, except as
otherwise provided in an Award agreement or as a result of the Board’s effectuation of one
or more of the alternatives described below, there shall be no acceleration of the time at
which any Award then outstanding may be exercised, and no later than ten days after the
approval by the stockholders of the

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Company of such Corporate Change, the Board, acting in its sole and absolute discretion
without the consent or approval of any Holder, shall act to effect one or more of the
following alternatives, which may vary among individual Holders and which may vary among
Awards held by any individual Holder:

          (A)         accelerate the time at which some or all of the Awards then
outstanding may be exercised so that such Awards may be exercised in full
for a limited period of time on or before a specified date (before or after
such Corporate Change) fixed by the Board, after which specified date all
such Awards that remain unexercised and all rights of Holders thereunder
shall terminate;

          (B)         require the mandatory surrender to the Company by all or selected
Holders of some or all of the then outstanding Options held by such Holders
(irrespective of whether such Options are then exercisable under the
provisions of this Plan or the Option Agreements evidencing such Options) as
of a date, before or after such Corporate Change, specified by the Board, in
which event the Board shall thereupon cancel such Options and the Company
shall pay to each such Holder an amount of cash per share equal to the
excess, if any, of the per share price offered to stockholders of the
Company in connection with such Corporate Change over the exercise prices
under such Options for such shares;

          (C)         with respect to all or selected Holders, have some or all of their
then outstanding Awards (whether vested or unvested) assumed or have a new
Award substituted for some or all of their then outstanding Awards (whether
vested or unvested) by an entity which is a party to the transaction
resulting in such Corporate Change and which is then employing him, or a
parent or subsidiary of such entity, provided that (1) such assumption or
substitution is on a basis where the excess of the aggregate fair market
value of the shares subject to the Award immediately after the assumption or
substitution over the aggregate exercise price of such shares is equal to
the excess of the aggregate fair market value of all shares subject to the
Award immediately before such assumption or substitution over the aggregate
exercise price of such shares, and (2) the assumed rights under such
existing Award or the substituted rights under such new Award as the case
may be will have the same terms and conditions as the rights under the
existing Award assumed or substituted for, as the case may be;

          (D)         provide that the number and class or series of shares of Stock
covered by an Award (whether vested or unvested) theretofore granted shall
be adjusted so that such Award when exercised shall thereafter cover the
number and class or series of shares of stock or other securities or
property (including, without limitation, cash) to which the Holder would
have been entitled pursuant to the terms of the agreement or plan relating
to such Corporate Change if, immediately prior to such

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Corporate Change, the Holder had been the holder of record of the
number of shares of Stock then covered by such Award; or

                   (E)         make such adjustments to Awards then outstanding as the Board deems
appropriate to reflect such Corporate Change (provided, however, that the
Board may determine in its sole and absolute discretion that no such
adjustment is necessary).

            In effecting one or more of alternatives (C), (D) or (E) above, and except as otherwise may be
provided in an Award agreement, the Board, in its sole and absolute discretion and without the
consent or approval of any Holder, may accelerate the time at which some or all Awards then
outstanding may be exercised.

          (c)         In the event of changes in the outstanding Stock by reason of recapitalizations,
reorganizations, mergers, consolidations, combinations, exchanges or other relevant changes
in capitalization occurring after the date of the grant of any Award and not otherwise
provided for by this Section 4.5, any outstanding Awards and any agreements evidencing such
Awards shall be subject to adjustment by the Board in its sole and absolute discretion as to
the number and price of shares of Stock or other consideration subject to such Awards. In
the event of any such change in the outstanding Stock, the aggregate number of shares
available under this Plan may be appropriately adjusted by the Board, whose determination
shall be conclusive.

          (d)         After a merger of one or more corporations into the Company or after a
consolidation of the Company and one or more corporations in which the Company shall be the
surviving corporation, each Holder shall be entitled to have his Restricted Stock
appropriately adjusted based on the manner the Stock was adjusted under the terms of the
agreement of merger or consolidation.

          (e)         The issue by the Company of shares of Stock of any class or series, or securities
convertible into shares of Stock of any class or series, for cash or property, or for labor
or services either upon direct sale or upon the exercise of rights or warrants to subscribe
for them, or upon conversion of shares or obligations of the Company convertible into shares
or other securities, shall not affect, and no adjustment by reason of such issuance shall be
made with respect to, the number, class or series, or price of shares of Stock then subject
to outstanding Awards.

          4.6         Election Under Section 83(b) of the Code. No Holder shall exercise the election permitted
under section 83(b) of the Code with respect to any Award without the written approval of the Chief
Financial Officer of the Company. Any Holder who makes an election under section 83(b) of the Code
with respect to any Award without the written approval of the Chief Financial Officer of the
Company may, in the discretion of the Committee, forfeit any or all Awards granted to him under the
Plan.

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ARTICLE V

OPTIONS

          
5.1        Type of Option. The Committee shall specify in an Option Agreement whether a given Option
is an Incentive Option or a Nonqualified Option. However, notwithstanding such designation, to the
extent that the aggregate Fair Market Value (determined as of the time an Incentive Option is
granted) of the Stock with respect to which incentive stock options first become exercisable by an
Employee during any calendar year (under the Plan and any other incentive stock option plan(s) of
the Company or any Affiliate) exceeds $100,000, the Incentive Option shall be treated as a
Nonqualified Option. In making this determination, incentive stock options shall be taken into
account in the order in which they were granted.

          5.2         Exercise Price. The price at which Stock may be purchased under an Option shall not be
less than 100 percent of the Fair Market Value of the shares of Stock on the date the Option is
granted. In the case of any Ten Percent Stockholder, the price at which shares of Stock may be
purchased under an Incentive Option shall not be less than 110 percent of the Fair Market Value of
the Stock on the date the Incentive Option is granted. An Option granted under the Plan may not be
granted with any Dividend Equivalents rights.

          
5.3         Duration of Options. An Option shall not be exercisable after the earlier of (i) the term
of the Option specified in the Option Agreement (which shall not exceed five years from the date
the Option is granted in the case of an Incentive Option granted to a Ten Percent Stockholder, or
ten years from the date the Option is granted in the case of any other Option), or (ii) the period
of time specified herein that follows the Holder’s Retirement, Disability, death or other severance
of the employment or affiliation relationship between the Holder and the Company and all
Affiliates. Except as specified in Section 10.11, unless the Holder’s Option Agreement specifies
otherwise, an Option shall not continue to vest after the severance of the employment or
affiliation relationship between the Company and all Affiliates.

             (a)    
    General Term of Option. Unless the Option Agreement specifies a shorter term, an
Option shall expire on the tenth anniversary of the date the Option is granted.
Notwithstanding the foregoing, unless the Option Agreement specifies a shorter term, in the
case of an Incentive Option granted to a Ten Percent Stockholder, the Option shall expire on
the fifth anniversary of the date the Option is granted.

             (b)        Early Termination of Option Due to Severance of Employment or Affiliation
Relationship (Other Than for Death, Disability or Retirement). Except as may be otherwise
expressly provided in an Option Agreement, (i) an Option that has been granted to a person
other than a Non-Employee Director and that has been in effect for at least two years shall
terminate on the earlier of the date of the expiration of the general term of the Option or
90 days after the date of the termination of the employment relationship between the Holder
and the Company and all Affiliates for any reason other than the death, Disability or
Retirement of the Holder, and (ii) an Option that has been granted to a person other than a
Non-Employee Director and that has been in effect for less than two years shall terminate on
the earlier of the date of the expiration of the general term of the Option or 30 days after
the date of the termination of the employment

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relationship between the Holder and the Company and all Affiliates for any reason other
than the death, Disability or Retirement of the Holder, during which period the Holder shall
be entitled to exercise the Option in respect of the number of shares that the Holder would
have been entitled to purchase had the Holder exercised the Option on the date of such
termination of employment. Whether authorized leave of absence, or absence on military or
government service, shall constitute a termination of the employment relationship between
the Holder and the Company and all Affiliates shall be determined by the Committee at the
time thereof.

          Except as may be otherwise expressly provided in an Option Agreement, an Option that
has been granted to a Non-Employee Director shall terminate on the earlier of the date of
the expiration of the general term of the Option or 90 days after the Non-Employee Director
is no longer a director of the Company for any reason other than the death or Disability of
the Holder.

          (c)        Early Termination of Option Due to Death. Unless the Option Agreement specifies
otherwise, in the event of the severance of the employment or affiliation relationship
between the Holder and the Company and all Affiliates due to death before the date of
expiration of the general term of the Option, the Holder’s Option shall terminate on the
earlier of the date of expiration of the general term of the Option or 180 days after the
Holder’s death.

          (d)        Early Termination of Option Due to Disability. With respect to an Option granted
to a person other than a Non-Employee Director, unless the Option Agreement specifies
otherwise, in the event of the severance of the employment relationship between the Holder
and the Company and all Affiliates due to Disability before the date of the expiration of
the general term of the Option, the Option shall terminate on the earlier of the expiration
of the general term of the Option or 90 days after the termination of the employment
relationship between the Holder and the Company and all Affiliates terminates due to
Disability.

          In the event his affiliation relationship is terminated as a result of Disability, a
Holder who is a Non-Employee Director may exercise an Option for a period of 180 days after
the Non-Employee Director is no longer a director of the Company or until the expiration of
the Option period, if sooner, to the extent of the Stock with respect to which the Option
could have been exercised by the Holder on the date the Non-Employee Director ceases being a
director of the Company.

          (e)        Early Termination of Option Due to Retirement. Unless the Option Agreement
specifies otherwise, if the Holder is an Employee and the employment relationship between
the Holder and the Company and all Affiliates terminates by reason of Retirement, the
Holder’s Option shall terminate on the earlier of the expiration of the general term of the
Option or one day less than three months after the date of the Holder’s termination of
employment due to Retirement.

          After the death of the Holder, the Holder’s executors, administrators or any person or persons
to whom the Holder’s Option may be transferred by will or by the laws of descent and distribution,
shall have the right, at any time prior to the termination of the Option to exercise the

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Option, in respect to the number of shares that the Holder would have been entitled to
exercise if the Holder exercised the Option prior to his death.

          5.4        Amount Exercisable. Each Option may be exercised at the time, in the manner and subject
to the conditions the Committee specifies in the Option Agreement in its sole discretion. If
specified in the Option Agreement, an Option will be exercisable in full upon the occurrence of a
Change of Control.

          5.5        Exercise of Options. Each Option shall be exercised by the delivery of written notice to
the Company setting forth the number of shares of Stock with respect to which the Option is to be
exercised, together with: (a) cash, a certified check, a bank draft or a postal or express money
order payable to the order of the Company for an amount equal to the exercise price under the
Option, (b) Mature Shares with a Fair Market Value on the date of exercise equal to the exercise
price under the option, (c) an election to make a cashless exercise through a registered
broker-dealer or (d) except as specified below, any other form of payment which is acceptable to
the Committee, and specifying the address to which the certificates for the shares of Stock are to
be mailed or the information necessary for the Company to effect an electronic transfer of the
shares of Stock. If Mature Shares are used for payment by the Holder, the aggregate Fair Market
Value of the shares of Stock tendered must be equal to or less than the aggregate exercise price of
the shares of Stock being purchased upon exercise of the Option, and any difference must be paid
pursuant to (a) above. As promptly as practicable after receipt of written notification and
payment, the Company shall deliver the number of shares of Stock with respect to which the Option
has been exercised, issued as designated by the Holder. Delivery of the shares of Stock shall be
deemed effected for all purposes when the transfer agent of the Company shall have deposited the
certificates in the United States mail, to the address specified by the Holder, or when the shares
have been transferred electronically as designated by the Holder. In lieu of tendering the Mature
Shares to the Company for the exercise price pursuant to (b) above, the Company may, in its sole
discretion, accept documentation provided by the Holder that the Holder owns the Mature Shares
necessary for exercise and would be able to deliver them to the Company if requested by the
Company, in which case the Company will deliver only the Net Shares. The Company shall have sole
discretion in determining that the shares are Mature Shares and that they are unencumbered,
transferable, and acceptable by the Company for this purpose.

             The delivery of certificates upon the exercise of Options is subject to the condition that the
person exercising the Option provide the Company with the information the Company might reasonably
request pertaining to exercise, sale or other disposition.

             Electronic transfer of shares of Stock may be effected by the Company it is sole discretion,
in lieu of issuance of physical share certificate(s).

             The Company may permit a Holder to elect to pay the exercise price upon the exercise of an
Option by authorizing a third-party broker to sell all or a portion of the shares of Stock acquired
upon exercise of the Option and remit to the Company a sufficient portion of the sale proceeds to
pay the exercise price and any applicable tax withholding resulting from such exercise.

             An Option may not be exercised for a fraction of a Common Share.

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          5.6        Substitution Options. Options may be granted under the Plan from time to time in
substitution for stock options held by employees of other corporations who are about to become
employees of or affiliated with the Company or any Affiliate as the result of a merger or
consolidation of the employing corporation with the Company or any Affiliate, or the acquisition by
the Company or any Affiliate of the assets of the employing corporation, or the acquisition by the
Company or any Affiliate of stock of the employing corporation as the result of which it becomes an
Affiliate of the Company. The terms and conditions of the substitute Options granted may vary from
the terms and conditions set out in the Plan to the extent the Committee, at the time of grant, may
deem appropriate to conform, in whole or in part, to the provisions of the stock options in
substitution for which they are granted.

          5.7        No Rights as Stockholder. No Holder shall have any rights as a Stockholder with respect
to Stock covered by his Option until the shares of Stock are delivered to him.

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ARTICLE VI

RESTRICTED STOCK AWARDS

          6.1        Restricted Stock Awards. The Committee may make Awards of Restricted Stock to eligible
persons selected by it. The amount of, the vesting and the transferability restrictions applicable
to, any Restricted Stock Award shall be determined by the Committee in its sole discretion;
provided, however, that the minimum vesting period for any Awards of Restricted Stock should
normally be ratably over a period of three years and, in no event, less than one year. If the
Committee imposes vesting or transferability restrictions on a Holder’s rights with respect to
shares of Restricted Stock, the Committee may issue such instructions to the Company’s transfer
agent in connection therewith as it deems appropriate. The Committee may also cause the
certificate for shares issued pursuant to a Restricted Stock Award to be imprinted with any legend
which counsel for the Company considers advisable with respect to the restrictions or, should the
shares of Stock be represented by book or electronic entry rather than a certificate, the Company
may take such steps to restrict transfer of the shares of Stock as counsel for the Company
considers necessary or advisable to comply with applicable law. Each Restricted Stock Award shall
be evidenced by a Restricted Stock Award Agreement that contains any vesting, transferability
restrictions and other provisions that are not inconsistent with the Plan as the Committee may
specify.

          6.2        Holder’s Rights as Stockholder. Subject to the terms and conditions of the Plan, each
Holder of Restricted Stock shall have all the rights of a shareholder with respect to the shares of
Stock included in the Restricted Stock Award during any period in which such shares are subject to
forfeiture and restrictions on transfer, including without limitation, the right to vote such
shares, if unrestricted shares of the same class have the right to vote. Dividends paid with
respect to shares of Restricted Stock in cash or property other than Stock in the Company or rights
to acquire shares of Stock in the Company shall be paid to the Holder currently. Dividends paid in
Stock in the Company or rights to acquire Stock in the Company shall be added to and become a part
of the Restricted Stock.

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ARTICLE VII

RESTRICTED STOCK UNIT AWARDS

          7.1        Authority to Grant Restricted Stock Unit Awards. Subject to the terms and provisions of
the Plan, the Committee may make Awards of Restricted Stock Units to eligible persons selected by
it. The amount of and the vesting, transferability and forfeiture restrictions applicable to any
Restricted Stock Unit Award shall be determined by the Committee in its sole discretion; provided,
however, that the minimum vesting period for any Restricted Stock Unit Award should be not less
than one year. The Committee shall maintain a bookkeeping ledger account which reflects the number
of Restricted Stock Units credited under the Plan for the benefit of a Holder.

          7.2        Restricted Stock Unit Award. A Restricted Stock Unit Award shall be similar in nature to
a Restricted Stock Award except that no shares of Stock are actually transferred to the Holder
until a later date specified in the applicable Award agreement. Each Restricted Stock Unit shall
have a value equal to the Fair Market Value of a share of Stock.

          7.3        Restricted Stock Unit Award Agreement. Each Restricted Stock Unit Award shall be
evidenced by an Award agreement that contains any Substantial Risk of Forfeiture, vesting,
transferability and forfeiture restrictions, form and time of payment provisions and other
provisions not inconsistent with the Plan as the Committee may specify.

          7.4        Dividend Equivalents. An Award agreement for a Restricted Stock Unit Award may specify
that the Holder shall be entitled to the payment of Dividend Equivalents under the Award.

          7.5        Form of Payment Under Restricted Stock Unit Award. Payment under a Restricted Stock Unit
Award shall be made in shares of Stock.

          7.6        Time of Payment Under Restricted Stock Unit Award. A Holder’s payment under a Restricted
Stock Unit Award shall be made at such time as is specified in the applicable Award agreement. The
Award agreement shall specify that the payment will be made (a) by a date that is no later than the
date that is two and one-half (2 1/2) months after the end of the calendar year in which the
Restricted Stock Unit Award payment is no longer subject to a Substantial Risk of Forfeiture or (b)
at a time that is Permissible under Section 409A.

          7.7        No Rights as Stockholder. A recipient of a Restricted Stock Unit Award shall have no
rights of a stockholder with respect to the Holder’s Restricted Stock Units until the shares of
Stock are delivered to him. A Holder shall have no voting rights with respect to any Restricted
Stock Unit Awards.

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ARTICLE VIII

ADMINISTRATION

          The Plan shall be administered by the Committee. All questions of interpretation and
application of the Plan and Awards shall be subject to the determination of the Committee. A
majority of the members of the Committee shall constitute a quorum. All determinations of the
Committee shall be made by a majority of its members. Any decision or determination reduced to
writing and signed by a majority of the members shall be as effective as if it had been made by a
majority vote at a meeting properly called and held. The Plan shall be administered in such a
manner as to permit the Options which are designated to be Incentive Options to qualify as
Incentive Options. In carrying out its authority under the Plan, the Committee shall have full and
final authority and discretion, including but not limited to the following rights, powers and
authorities, to:

          (a)        determine the persons to whom and the time or times at which Awards will be made;

          (b)        determine the number of shares and the exercise price of Stock covered in each
Award, subject to the terms of the Plan;

          (c)        determine the terms, provisions and conditions of each Award, which need not be
identical;

          (d)        accelerate the time at which any outstanding Option may be exercised, or Restricted
Stock Award or Restricted Stock Unit Award will vest; provided, however, that the Committee
determines that such acceleration of vesting is in the best interests of the Company and its
shareholders and, in the case of a Restricted Stock Unit Award, is Permissible under Section
409A;

          (e)        define the effect, if any, on an Award of the death, disability, retirement or
termination of employment or affiliation relationship between the Holder and the Company and
Affiliates;

          (f)        prescribe, amend and rescind rules and regulations relating to administration of
the Plan; and

          (g)        make all other determinations and take all other actions deemed necessary,
appropriate or advisable for the proper administration of the Plan.

          The actions of the Committee in exercising all of the rights, powers, and authorities set out
in this Article and all other Articles of the Plan, when performed in good faith and in its sole
judgment, shall be final, conclusive and binding on all parties.

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ARTICLE IX

AMENDMENT OR TERMINATION OF PLAN

          The Board may amend, terminate or suspend the Plan at any time, in its sole and absolute
discretion; provided, however, that to the extent required to maintain the status of any Option
under the Code, no amendment that would change the aggregate number of shares of Stock which may be
issued under Options, or change the class of Employees eligible to receive Options shall be made
without the approval of the Company’s stockholders. Subject to the preceding sentence, the Board
shall have the power to make any changes in the Plan and in the regulations and administrative
provisions under it or in any outstanding Incentive Option as in the opinion of counsel for the
Company may be necessary or appropriate from time to time to enable any Incentive Option granted
under the Plan to continue to qualify as an incentive stock option or such other stock option as
may be defined under the Code so as to receive preferential federal income tax treatment.

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ARTICLE X

MISCELLANEOUS

          10.1        No Establishment of a Trust Fund. No property shall be set aside nor shall a trust fund
of any kind be established to secure the rights of any Holder under the Plan. All Holders shall at
all times rely solely upon the general credit of the Company for the payment of any benefit which
becomes payable under the Plan.

          10.2        No Employment or Affiliation Obligation. The granting of any Option or Award shall not
constitute an employment contract, express or implied, nor impose upon the Company or any Affiliate
any obligation to employ or continue to employ, or utilize the services of, any Holder. The right
of the Company or any Affiliate to terminate the employment of any person shall not be diminished
or affected by reason of the fact that an Option or Award has been granted to him.

          10.3        Forfeiture. Notwithstanding any other provisions of the Plan, if the Committee finds by
a majority vote after full consideration of the facts that the Holder, before or after termination
of his employment or affiliation relationship with the Company or an Affiliate for any reason
committed or engaged in willful misconduct, gross negligence, a breach of fiduciary duty, fraud,
embezzlement, theft, a felony, a crime involving moral turpitude or proven dishonesty in the course
of his employment by the Company or an Affiliate, which conduct damaged the Company or Affiliate,
the Holder shall forfeit all outstanding Options and all outstanding Awards, and all exercised
Options if the Company has not yet delivered Stock to the Holder with respect thereto.

             The decision of the Committee as to the cause of the Holder’s discharge, the damage done to
the Company or an Affiliate shall be final. No decision of the Committee, however, shall affect
the finality of the discharge of the Holder by the Company or an Affiliate in any manner.

          10.4        Tax Withholding. The Company or any Affiliate or subsidiary shall be entitled to deduct
from other compensation payable to each Holder any sums required by federal, state, local or
foreign tax law to be withheld with respect to the grant, vesting or exercise of an Award or lapse
of restrictions on an Award or payment under an Award. In the alternative, the Company may require
the Holder (or other person validly exercising or holding the Award) to pay such sums for taxes
directly to the Company or any Affiliate or subsidiary in cash or by check within ten days after
the date of grant, vesting, exercise or lapse of restrictions or payment. In the discretion of the
Company, and with the consent of the Holder, the Company may reduce the number of shares of Stock
issued to the Holder upon his exercise of an Option to satisfy the tax withholding obligations of
the Company or an Affiliate; provided that the Fair Market Value of the shares held back shall not
exceed the Company’s or the Affiliate’s minimum statutory withholding tax obligations. The Company
may, in its discretion, permit a Holder to satisfy any Minimum Statutory Tax Withholding Obligation
arising upon the vesting of or payment under an Award by delivering to the Holder a reduced number
of shares of Stock in the manner specified herein. If permitted by the Company and acceptable to
the Holder, at the time of vesting of shares or payment under the Award, the Company shall (a)
calculate the amount of the Company’s or an Affiliate’s or a subsidiary’s Minimum Statutory Tax
Withholding Obligation on the assumption that all such shares of Stock vested or to be paid under
the Award are made available for delivery, (b) reduce

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the number of such shares of Stock made available for delivery so that the Fair Market Value
of the shares of Stock withheld on the vesting or payment date approximates the Company’s or an
Affiliate’s or a subsidiary’s Minimum Statutory Tax Withholding Obligation and (c) in lieu of the
withheld shares of Stock, remit cash to the United States Treasury or other applicable governmental
authorities, on behalf of the Holder, in the amount of the Minimum Statutory Tax Withholding
Obligation. The Company shall withhold only whole shares of Stock to satisfy its Minimum Statutory
Tax Withholding Obligation. Where the Fair Market Value of the withheld shares of Stock does not
equal the amount of the Minimum Statutory Tax Withholding Obligation, the Company shall withhold
shares of Stock with a Fair Market Value less than the amount of the Minimum Statutory Tax
Withholding Obligation and the Holder must satisfy the remaining minimum withholding obligation in
some other manner permitted under this Section 10.4. The withheld shares of Stock not made
available for delivery by the Company shall be retained as treasury shares or will be cancelled and
the Holder’s right, title and interest in such shares of Stock shall terminate. The Company shall
have no obligation upon payment, vesting or exercise of any Award or lapse of restrictions on an
Award until the Company or an Affiliate or subsidiary has received payment sufficient to cover all
tax withholding amounts due with respect to that payment, vesting, exercise or lapse of
restrictions. Neither the Company nor any Affiliate or subsidiary shall be obligated to advise a
Holder of the existence of the tax or the amount which it will be required to withhold.

          10.5        Written Agreement. Each Award shall be embodied in a written agreement which shall be
subject to the terms and conditions of the Plan and shall be signed by the Holder and by a member
of the Committee on behalf of the Committee and the Company or an executive officer of the Company,
other than the Holder, on behalf of the Company. The agreement may contain any other provisions
that the Committee in its discretion shall deem advisable which are not inconsistent with the terms
of the Plan.

          10.6        Indemnification of the Committee. The Company shall indemnify each present and future
member of the Committee against, and each member of the Committee shall be entitled without further
act on his part to indemnity from the Company for, all expenses (including attorney’s fees, the
amount of judgments and the amount of approved settlements made with a view to the curtailment of
costs of litigation, other than amounts paid to the Company itself) reasonably incurred by him in
connection with or arising out of any action, suit or proceeding in which he may be involved by
reason of his being or having been a member of the Committee, whether or not he continues to be a
member of the Committee at the time of incurring the expenses, including, without limitation,
matters as to which he shall be finally adjudged in any action, suit or proceeding to have been
found to have been negligent in the performance of his duty as a member of the Committee. However,
this indemnity shall not include any expenses incurred by any member of the Committee in respect of
matters as to which he shall be finally adjudged in any action, suit or proceeding to have been
guilty of gross negligence or willful misconduct in the performance of his duty as a member of the
Committee. In addition, no right of indemnification under the Plan shall be available to or
enforceable by any member of the Committee unless, within 60 days after institution of any action,
suit or proceeding, he shall have offered the Company, in writing, the opportunity to handle and
defend same at its own expense. This right of indemnification shall inure to the benefit of the
heirs, executors or administrators of each member of the Committee and shall be in addition to all
other rights to which a member of the Committee may be entitled as a matter of law, contract or
otherwise.

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          10.7        Gender. If the context requires, words of one gender when used in the Plan shall include
the other and words used in the singular or plural shall include the other.

          10.8        Headings. Headings of Articles and Sections are included for convenience of reference
only and do not constitute part of the Plan and shall not be used in construing the terms of the
Plan.

          10.9        Other Compensation Plans. The adoption of the Plan shall not affect any other stock
option, incentive or other compensation or benefit plans in effect for the Company or any
Affiliate, nor shall the Plan preclude the Company from establishing any other forms of incentive
compensation arrangements for Employees.

          10.10     Other Options or Awards. The grant of an Award shall not confer upon the Holder the
right to receive any future or other Awards under the Plan, whether or not Awards may be granted to
similarly situated Holders, or the right to receive future Awards upon the same terms or conditions
as previously granted.

          10.11     Option Adjustments Pursuant to the Employee Benefits Agreement. Notwithstanding any
other provision of the Plan or an Option Agreement, the exercise price applicable to each
outstanding Option, to the extent that the Option has not expired or been exercised as of the
Distribution Date, shall be reduced in accordance with the formula specified in paragraph (b) of
Section 3.1 of the Employee Benefits Agreement. Notwithstanding any other provisions of the Plan
or Option Agreement, the term of each outstanding Option, to the extent that the Option has not
expired or been exercised as of the Distribution Date, shall be adjusted in the manner specified in
paragraph (e) of Section 3.1 of the Employee Benefits Agreement.

          10.12     Governing Law. The provisions of the Plan shall be construed, administered and governed
under the laws of the State of Texas.

          10.13     Compliance With Section 409A. Awards shall be designed, granted and administered in
such a manner that they are either exempt from the application of, or comply with, the requirements
of Section 409A. The Plan and each Award Agreement under the Plan that is intended to comply the
requirements of Section 409A shall be construed and interpreted in accordance with such intent. If
the Committee determines that an Award, Award agreement, payment, distribution, deferral election,
transaction, or any other action or arrangement contemplated by the provisions of the Plan would,
if undertaken or implemented, cause a Holder to become subject to additional taxes under Section
409A, then unless the Committee specifically provides otherwise, such Award, Award agreement,
payment, distribution, deferral election, transaction or other action or arrangement shall not be
given effect to the extent it causes such result and the related provisions of the Plan and/or
Award agreement will be deemed modified, or, if necessary, suspended in order to comply with the
requirements of Section 409A to the extent determined appropriate by the Committee, in each case
without the consent of or notice to the Holder. The exercisability of an Option shall not be
extended to the extent that such extension would subject the Holder to additional taxes under
Section 409A. Notwithstanding any other provision of the Plan, if Holder is a “specified employee”
(within the meaning of Section 409A), and the Company determines that a payment or vesting under an
Award is not Permissible under Section 409A, then no payment shall be made or vesting shall occur
under the Award due to a

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“separation from service” (within the meaning of Section 409A of the Code) for any reason
before the date that is six (6) months after the date on which the Holder incurs such separation
from service.

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