Document:

EX-10.1

 Exhibit 10.1 

HATTERAS FINANCIAL CORP. 

2015 EQUITY INCENTIVE PLAN 
  

	1.	Establishment, Purpose and Types of Awards 

 Hatteras Financial Corp. (the
“Company”), hereby establishes the Hatteras Financial Corp. 2015 Equity Incentive Plan (the “Plan”). The purpose of the Plan is to promote the long-term growth and profitability of the Company by (i) providing
key people with incentives to improve shareholder value and to contribute to the growth and financial success of the Company through their future services, and (ii) enabling the Company to attract, retain and reward the best-available persons.

 The Plan permits the granting of stock options (including incentive stock options qualifying under Code section 422 and nonstatutory
stock options), stock appreciation rights, restricted stock awards, phantom stock, performance awards, other stock-based awards, or any combination of the foregoing. 
  

	2.	Definitions 

 Under this Plan, except where the context otherwise indicates, the
following definitions apply: 
 (a) “Administrator” means the Board or the committee(s) or officer(s)
appointed by the Board that have authority to administer the Plan as provided in Section 3 hereof. 
 (b)
“Affiliate” means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, the Company (including, but not limited to, joint ventures, limited liability companies, and
partnerships). For this purpose, “control” shall mean ownership of 50% or more of the total combined voting power or value of all classes of stock or interests of the entity, or the power to direct the management and policies of the
entity, by contract or otherwise. 
 (c) “Award” means any stock option, stock appreciation right, stock
award, phantom stock award, performance award, or other stock-based award. 
 (d) “Board” means the Board of
Directors of the Company. 
 (e) “Change in Control” means: (i) the acquisition (other than from the
Company) in one or more transactions by any Person, as defined in this Section 2(e), of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50% or more of (A) the
then outstanding shares of the securities of the Company, or (B) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Company Voting Stock”);
(ii) the closing of a sale or other conveyance of all or substantially all of the assets of the Company; or (iii) the effective time of any merger, share exchange, consolidation, or other business combination involving the Company if
immediately after such transaction persons who hold a majority of the outstanding voting securities entitled to vote generally in the election of directors of the surviving entity (or the entity owning 100% of such surviving entity) are not persons
who, immediately prior to such transaction, held the Company Voting Stock; provided, however, that if a Change in Control (as defined in clauses (i), (ii) or (iii) constitutes a payment event for any Award that constitutes
“nonqualified deferred compensation” that is subject to Code section 409A, no payment will be made under that Award on account of a Change in Control unless the event described in clause (i), (ii) or (iii) above, as applicable,
constitutes a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5). For purposes of this Section 2(e), a “Person” means any individual, entity or group within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the Company and by entities controlled by the Company or an underwriter of the Common Stock in a
registered public offering. 
 (f) “Code” means the Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder. 

  
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 (g) “Common Stock” means shares of common stock of the Company,
par value of $.001 per share. 
 (h) “Fair Market Value” means, with respect to a share of the
Company’s Common Stock for any purpose on a particular date, the value determined by the Administrator in good faith. However, if the Common Stock is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as
amended, and listed for trading on a national exchange or market, “Fair Market Value” means, as applicable, (i) either the closing price or the average of the high and low sale price on the relevant date, as determined in the
Administrator’s discretion, quoted on the New York Stock Exchange, the American Stock Exchange, the Nasdaq Global Select Market, or the Nasdaq Global Market; (ii) the last sale price on the relevant date quoted on the Nasdaq Capital
Market; (iii) the average of the high bid and low asked prices on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the National Quotation Bureau, Inc. or a comparable service as determined in the Administrator’s
discretion; or (iv) if the Common Stock is not quoted by any of the above, the average of the closing bid and asked prices on the relevant date furnished by a professional market maker for the Common Stock, or by such other source, selected by
the Administrator. If no public trading of the Common Stock occurs on the relevant date but the shares are so listed, then Fair Market Value shall be determined as of the last date before the relevant date on which trading of the Common Stock did
occur. For all purposes under this Plan, the term “relevant date” as used in this Section 2(h) means either the date as of which Fair Market Value is to be determined or the next preceding date on which public trading of the
Common Stock occurs, as determined in the Administrator’s discretion. 
 (i) “Grant Agreement” means a
written document, including an electronic writing acceptable to the Administrator, memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate the terms of the Plan. 

(i) “Manager” means the person or persons, if any, appointed or employed by or contracted with the Company
from time to time and responsible for directing or performing day-to-day business affairs or operations of the Company, including any person or persons to whom the Manager subcontracts any of such functions. The initial Manager is Atlantic Capital
Advisors LLC. 
  

	3.	Administration 

 (a) Administration of the Plan. The Plan shall be
administered by the Board or by such committee or committees as may be appointed by the Board from time to time. To the extent allowed by applicable state law, the Board by resolution may authorize an officer or officers to grant Awards (other than
stock Awards) to other officers and employees of the Company and its Affiliates, and, to the extent of such authorization, such officer or officers shall be the Administrator. 

(b) Powers of the Administrator. The Administrator shall have all the powers vested in it by the terms of the Plan, such
powers to include authority, in its sole and absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish programs for granting Awards. 

The Administrator shall have full power and authority to take all other actions necessary to carry out the purpose and intent
of the Plan, including, but not limited to, the authority to: (i) determine the eligible persons to whom, and the time or times at which Awards shall be granted; (ii) determine the types of Awards to be granted; (iii) determine the
number of shares to be covered by or used for reference purposes for each Award; (iv) impose such terms, limitations, restrictions and conditions upon any such Award as the Administrator shall deem appropriate; (v) modify, amend, extend or
renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided however, that, except as provided in Section 6 or 7(d) of the Plan, any modification that would materially adversely affect any
outstanding Award shall not be made without the consent of the holder); (vi) accelerate or otherwise change the time in which an Award may be exercised or becomes payable and to waive or 

  
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accelerate the lapse, in whole or in part, of any restriction or condition with respect to such Award following the death, disability, retirement or involuntary termination of employment or
service of the participant (as determined by the Administrator) or, as provided in Section 7, upon a Change in Control of the Company or, in the case of a participant employed by the Manager, a termination of the Company’s management
agreement; (vii) establish objectives and conditions, if any, for earning Awards and determining whether Awards will be paid with respect to a performance period; and (viii) for any purpose, including but not limited to, qualifying for
preferred tax treatment under foreign tax laws or otherwise complying with the regulatory requirements of local or foreign jurisdictions, to establish, amend, modify, administer or terminate sub-plans, and
prescribe, amend and rescind rules and regulations relating to such sub-plans. 
 The
Administrator shall have full power and authority, in its sole and absolute discretion, to administer, construe and interpret the Plan, Grant Agreements and all other documents relevant to the Plan and Awards issued thereunder, to establish, amend,
rescind and interpret such rules, regulations, agreements, guidelines and instruments for the administration of the Plan and for the conduct of its business as the Administrator deems necessary or advisable, and to correct any defect, supply any
omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent the Administrator shall deem it desirable to carry it into effect. 

Except for adjustments as provided in Section 7(d) of the Plan, neither the Board nor the Administrator shall have the
authority to take any of the following actions, unless the shareholders of the Company have approved such an action within twelve (12) months prior to such an event: (i) the reduction of the exercise price of any outstanding stock option
or stock appreciation right under the Plan; (ii) the cancellation of any outstanding stock option or stock appreciation right under the Plan and the grant in substitution therefor of (1) a new stock option or stock appreciation right under
the Plan or another equity plan of the Company covering the same or a different number of shares of Common Stock, (2) a restricted stock Award (including a share bonus), (3) an other stock-based Award, (4) a phantom stock Award,
(5) a performance award, (6) cash and/or (7) other valuable consideration (as determined by the Board, in its sole discretion); or (iii) any other action that is treated as a repricing under generally accepted accounting
principles. 
 (c) Non-Uniform Determinations. The Administrator’s determinations under the Plan (including
without limitation, determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such Awards) need not be uniform and may be made by the
Administrator selectively among persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated. 

(d) Limited Liability. To the maximum extent permitted by law, no member of the Administrator shall be liable for any
action taken or decision made in good faith relating to the Plan or any Award thereunder. 
 (e) Indemnification. To
the maximum extent permitted by law and by the Company’s charter and by-laws, the members of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan. 

(f) Effect of Administrator’s Decision. All actions taken and decisions and determinations made by the
Administrator on all matters relating to the Plan pursuant to the powers vested in it hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and binding on all parties concerned, including the Company,
its shareholders, any participants in the Plan and any other employee, consultant, or director of the Company, and their respective successors in interest. 

  
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	4.	Shares Available for the Plan; Maximum Awards 

 Subject to adjustments as provided in
Section 7(d) of the Plan, the shares of Common Stock that may be issued with respect to Awards granted under the Plan shall not exceed an aggregate of 1,500,000 shares of Common Stock. All of such shares of Common Stock shall be available for
issuance as incentive stock options to qualify under Code section 422. The Company shall reserve such number of shares for Awards under the Plan, subject to adjustments as provided in Section 7(d) of the Plan. If any Award, or portion of
an Award, under the Plan is cancelled, forfeited, expires or terminates without the issuance of shares of Common Stock or is settled in cash without delivery of shares of Common Stock, then the shares subject to such Award shall thereafter, to the
extent of such cancellation, expiration, forfeiture, termination or cash settlement, be available for further Awards under the Plan. In the event that (i) any stock option granted under the Plan is exercised through the tendering of shares of
Common Stock (either actually or by attestation) or by the withholding of shares of Common Stock by the Company or (ii) withholding tax liabilities resulting from any Award are satisfied by the withholding of shares of Common Stock, then the
number of shares tendered or withheld shall not be available for further Awards under the Plan. If Common Stock is issued in settlement of a stock appreciation right (“SAR”), then the number of shares of Common Stock available for further
Awards under the Plan shall be reduced by the number of shares of Common Stock for which the SAR was exercised rather than the number of shares of Common Stock issued in settlement of the SAR. 

Subject to adjustments as provided in Section 7(d) of the Plan, the maximum number of shares of Common Stock subject to Awards of any
combination that may be granted during any one fiscal year of the Company to any one individual under this Plan shall be limited to 150,000 shares or, in the case of an individual who is a member of the Board but who is not an employee of the
Company, the Manager or an Affiliate of the Company of the Manager, 25,000 shares in any fiscal year. Such per-individual limit shall not be adjusted to effect a restoration of shares of Common Stock with respect to which the related Award is
terminated, surrendered or canceled. Two or more Awards that are granted in tandem shall be treated as a single award for purposes of this paragraph. 
  

	5.	Participation 

 Participation in the Plan shall be open to all employees, officers, and
directors of, and other individuals providing bona fide services to or for, the Company, the Manager or of any Affiliate of the Company or the Manager, as may be selected by the Administrator from time to time. The Administrator may also
grant Awards to individuals in connection with hiring, retention or otherwise, prior to the date the individual first performs services for the Company or an Affiliate, provided that such Awards shall not become vested or exercisable, and no shares
shall be issued to such individual, prior to the date the individual first commences performance of such services. 
  

	6.	Awards 

 The Administrator, in its sole discretion and consistent with the terms of the
Plan, establishes the terms of all Awards granted under the Plan. Awards may be granted individually or in tandem with other types of Awards, concurrently with or with respect to outstanding Awards. All Awards are subject to the terms and conditions
provided in the Grant Agreement and the terms and conditions provided in the Plan. 
 (a) Stock Options. The
Administrator may from time to time grant to eligible participants Awards of incentive stock options as that term is defined in Code section 422 or nonstatutory stock options; provided, however, that Awards of incentive stock
options shall be limited to employees of the Company or of any current or hereafter existing “parent corporation” or “subsidiary corporation,” as defined in Code sections 424(e) and (f), respectively, of the Company
and any other individuals who are eligible to receive incentive stock options under the provisions of Code section 422. Options must have an exercise price at least equal to Fair Market Value as of the date of grant. No stock option shall be an
incentive stock option unless so designated by the Administrator at the time of grant or in the Grant Agreement evidencing such stock option. Subject to the provisions of the Plan, stock options may be exercised in whole at any time or in part from
time to time at such times and in compliance with such requirements as the Administrator shall determine. Subject to the provisions of the Plan, no stock option shall be exercisable in full sooner than three years from the date the stock option is
granted (provided that 

  
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stock options may vest in installments during such period of restriction); provided that a stock option may be exercisable in full one year from the date of grant if the stock option will become
exercisable on account of the satisfaction of performance objectives or the stock option was granted to a member of the Board who is not an employee of the Company, the Manager or an Affiliate of the Company or the Manager. 

(b) Stock Appreciation Rights. The Administrator may from time to time grant SARs to eligible participants. A SAR
entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one share of
Common Stock over (B) the base price per share specified in the Grant Agreement, times (ii) the number of shares specified by the SAR, or portion thereof, which is exercised. The base price per share specified in the Grant Agreement shall
not be less than the Fair Market Value on the grant date or, in the case of a SAR granted in tandem with a stock option, the exercise price of the related stock option. No SAR shall have a term longer than ten years’ duration. Subject to the
provisions of the Plan, SARs may be exercised in whole at any time or in part from time to time at such times and in compliance with such requirements as the Administrator shall determine. Subject to the provisions of the Plan, no SAR shall be
exercisable in full sooner than three years from the date the SAR is granted (provided that SARs may vest in installments during such period of restriction); provided that a SAR may be exercisable in full one year from the date of grant if the SAR
will become exercisable on account of the satisfaction of performance objectives or the SAR was granted to a member of the Board who is not an employee of the Company, the Manager or an Affiliate of the Company or the Manager. Payment by the Company
of the amount receivable upon any exercise of a SAR may be made by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the Administrator. If upon settlement of the exercise of a
SAR a grantee is to receive a portion of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value of a share of Common Stock on the exercise date. No fractional shares shall
be used for such payment and the Administrator shall determine whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be eliminated. 

(c) Stock Awards. The Administrator may from time to time grant Awards of restricted Common Stock to eligible
participants in such amounts and on such terms and conditions as it shall determine; provided, however, that no such Award shall be earned or vested in full sooner than three years from the date of its grant (provided that Awards of
restricted stock may be earned or vested in installments during such period of restriction) except that an Award of restricted stock may be earned or vested in full one year from the date of its grant if the Award will become vested or will be
earned on account of the satisfaction of performance objectives or if the Award was granted to a member of the Board who is not an employee of the Company, the Manager or an Affiliate of the Company or the Manager. Prior to their forfeiture, a
participant will have all rights of a shareholder with respect to restricted shares of Common Stock, including the right to receive dividends and vote the shares; provided, however, that (i) if the restricted shares of Common Stock will
not become vested and transferable solely on account of continued employment or service, dividends payable on the shares shall be accumulated and paid, without interest, when and to the extent that the underlying Award becomes vested and
transferable, (ii) the participant may not sell, transfer, pledge, exchange or otherwise dispose of shares of restricted Common Stock before they become transferable in accordance with the Plan and the Grant Agreement, (iii) the Company
may retain custody of any certificates evidencing the shares of restricted Common Stock and (iv) the participant may be required to deliver a stock power, endorsed in blank, with respect to such shares. 

(d) Phantom Stock. The Administrator may from time to time grant Awards to eligible participants denominated in
stock-equivalent units (“phantom stock”) in such amounts and on such terms and conditions as it shall determine; provided, however, that no phantom stock Award shall be earned or vested in full sooner than three years from
the date of its grant (provided that phantom stock Awards may be earned or vested in installments during such period of restriction) except that a phantom stock Award may be earned or vested in full one year from the date of its grant if the Award
will become vested or will be earned on account of the satisfaction of performance objectives or if the phantom stock was granted to a member of the Board who is not an employee of the Company, the Manager or an Affiliate of the Company or the
Manager. Phantom stock units granted to a participant shall be credited to a bookkeeping 

  
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reserve account solely for accounting purposes and shall not require a segregation of any of the Company’s assets. An Award of phantom stock may be settled in Common Stock, in cash, or in a
combination of Common Stock and cash, as determined in the sole discretion of the Administrator. Except as otherwise provided in the applicable Grant Agreement, the grantee shall not have the rights of a shareholder with respect to any shares of
Common Stock represented by a phantom stock unit solely as a result of the grant of a phantom stock unit to the grantee. If the phantom stock Award does not vest solely on account of continued employment or service, the Grant Agreement shall provide
that any dividend equivalent rights with respect to the phantom stock Award shall be accumulated and paid, without interest, only when and to the extent that the phantom stock Award vests. 

(e) Performance Awards. The Administrator may, in its discretion, grant performance awards which become payable on
account of attainment of one or more performance goals established by the Administrator. Performance awards may be paid by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the
Administrator. Notwithstanding anything to the contrary herein, certain awards granted under this Section 6(e) may be granted in a manner which is intended to be deductible by the Company under Section 162(m) of the Code (or any successor
section thereto) (“Performance-Based Awards”). A participant’s Performance-Based Award shall be determined based on the attainment of written performance goals approved by the Administrator for a performance period established
by the Administrator (i) while the outcome for that performance period is substantially uncertain and (ii) no more than 90 days after the commencement of the performance period to which the performance goal relates or, if less, the
number of days which is equal to 25 percent of the relevant performance period. The performance goals, which must be objective, shall be based upon one or more of the following criteria: (i) consolidated earnings before or after taxes
(including earnings before interest, taxes, depreciation and amortization); (ii) net income; (iii) operating income; (iv) comprehensive income or comprehensive income per share; (v) earnings per share; (vi) book value per
share; (vii) core earnings or core earnings per share, (viii) return on shareholders’ equity; (ix) expense management; (x) return on investment; (xi) total return or total shareholder return; (xii) improvements in
capital structure; (xiii) profitability of an identifiable business unit or product; (xiv) maintenance or improvement of profit or operating margins; (xv) stock price; (xvi) revenues or sales; (xvii) costs; (xviii) cash
flow, cash flow per share, funds from operations, funds from operations per share or similar measure; (xix) return on assets; (xx) gross or net profit; (xxi) dividends paid or payable; (xxii) cash or funds available for
distribution, including on an adjusted or on a per share basis. The foregoing criteria may relate to the Company, one or more of its Affiliates or one or more of its or their divisions or units, or any combination of the foregoing, and may be
applied on an absolute basis and/or be relative to prior years for the Company, one or more peer group companies or indices, or any combination thereof, all as the Administrator shall determine. In addition, to the degree consistent with
Section 162(m) of the Code (or any successor section thereto), the performance goals may be calculated without regard to extraordinary items. The Administrator shall determine whether, with respect to a performance period, the applicable
performance goals have been met with respect to a given participant and, if they have, shall so certify and ascertain the amount of the applicable Performance-Based Award. No Performance-Based Awards will be paid for such performance period until
such certification is made by the Administrator. The amount of the Performance-Based Award actually paid to a given Participant may be less than the amount determined by the applicable performance goal formula, at the discretion of the
Administrator. The amount of the Performance-Based Award determined by the Administrator for a performance period shall be paid to the participant at such time as determined by the Administrator in its sole discretion after the end of such
performance period; provided, however, that a participant may, if and to the extent permitted by the Board and consistent with the provisions of Sections 162(m) and 409A of the Code, elect to defer payment of a Performance-Based
Award. 
 (f) Other Stock-Based Awards. The Administrator may from time to time grant other stock-based awards to
eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine; provided, however, that no other
stock-based award shall be earned or vested in full sooner than three years from the date of its grant (provided that other stock-based awards may be earned or vested in installments during such period of restriction) except that an other
stock-based award may be 

  
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earned or vested in full one year from the date of its grant if the Award will become vested or will be earned on account of the satisfaction of performance objectives or if the other stock-based
award was granted to a member of the Board who is not an employee of the Company, the Manager or an Affiliate of the Company or the Manager. Other stock-based awards may be denominated in cash, in Common Stock or other securities, in
stock-equivalent units, in stock appreciation units, in securities or debentures convertible into Common Stock, or in any combination of the foregoing and may be paid in Common Stock or other securities, in cash, or in a combination of Common Stock
or other securities and cash, all as determined in the sole discretion of the Administrator. 
  

	7.	Miscellaneous 

 (a) Withholding of Taxes. Grantees and holders of
Awards shall pay to the Company or its Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes required to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax
liability. The Company or its Affiliate may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award. In the event that payment to the Company or its Affiliate
of such tax obligations is made in shares of Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such purposes and shall not exceed in amount the minimum statutory tax withholding obligation. 

(b) Loans. To the extent otherwise permitted by law, the Company or its Affiliate may make or guarantee loans to
grantees to assist grantees in exercising Awards and satisfying any withholding tax obligations. 
 (c)
Transferability. Except as otherwise determined by the Administrator, and in any event in the case of an incentive stock option or a stock appreciation right granted with respect to an incentive stock option, no Award granted under the Plan
shall be transferable by a grantee otherwise than by will or the laws of descent and distribution. Unless otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Award may be exercised during
the lifetime of the grantee, only by the grantee or, during the period the grantee is under a legal disability, by the grantee’s guardian or legal representative. Shares of Common Stock acquired upon the exercise of a stock option or a SAR
cannot be transferred or sold before the earlier of the first anniversary of the date on which the stock option or SAR was exercised or the first day on which the participant is not employed by, or providing services to, the Company, the Manager or
an Affiliate of the Company or the Manager. Shares of Common Stock acquired under Awards other than stock options and SARs cannot be transferred or sold before the earlier of the first anniversary of the date on which the Common Stock was issued to
the participant or the first day on which the participant is not employed by, or providing services to, the Company, the Manager or an Affiliate of the Company or the Manager. 

(d) Adjustments for Corporate Transactions and Other Events. 

 

	 	(i)	Stock Dividend, Stock Split and Reverse Stock Split. In the event of a stock dividend of, or stock split or reverse stock split affecting, the Common Stock, (A) the maximum number of shares of such Common
Stock as to which Awards may be granted under this Plan and the maximum number of shares with respect to which Awards may be granted during any one fiscal year of the Company to any individual, as provided in Section 4 of the Plan, and
(B) the number of shares covered by and the exercise price and other terms of outstanding Awards, shall, without further action of the Board, be adjusted to reflect such event. The Administrator may make adjustments, in its discretion, to
address the treatment of fractional shares and fractional cents that arise with respect to outstanding Awards as a result of the stock dividend, stock split or reverse stock split. 

  
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	 	(ii)	Non-Change in Control Transactions. Except with respect to the transactions set forth in Section 7(d)(i), in the event of any change affecting the Common Stock, the Company or its capitalization, by reason
of a spin-off, split-up, dividend, recapitalization, merger, consolidation or share exchange, other than any such change that is part of a transaction resulting in a Change in Control of the Company, the Administrator, in its discretion and without
the consent of the holders of the Awards, may make (A) appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect to which Awards may be granted under the Plan, in the aggregate and with respect to
any individual during any one fiscal year of the Company, as provided in Section 4 of the Plan; and (B) any adjustments in outstanding Awards, including but not limited to modifying the number, kind and price of securities subject to
Awards. 

  

	 	(iii)	Change in Control Transactions. In the event of any transaction resulting in a Change in Control of the Company, the Administrator, in its discretion and without the need for a holder’s consent, may provide
that outstanding stock options and other Awards that are payable in or convertible into Common Stock under this Plan will be assumed by, or replaced with a substitute award granted by, the surviving entity in the Change in Control. Such assumed or
substitute award shall be of the same type as the original Award. The assumed or substitute award shall have a value as of the Change in Control that is substantially equal to the value of the original Award (or the difference between Fair Market
Value and exercise price in the case of stock options and stock appreciation rights) as determined by the Administrator. Any Award that is not assumed or replaced with a substitute award in accordance with the preceding sentences shall be
terminated. In the event of such termination, (A) the outstanding stock options and other Awards that will terminate upon the effective time of the Change in Control shall become fully vested immediately before the effective time of the Change
in Control, and (B) the holders of stock options and other Awards under the Plan will be permitted, immediately before the Change in Control, to exercise or convert all portions of such stock options or other Awards under the Plan that are then
exercisable or convertible or which become exercisable or convertible upon or prior to the effective time of the Change in Control. 

  

	 	(iv)	Unusual or Nonrecurring Events. The Administrator is authorized to make, in its discretion and without the consent of holders of Awards, adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, whenever the Administrator
determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 

(e) Substitution of Awards in Mergers and Acquisitions. Awards may be granted under the Plan from time to time in
substitution for awards held by employees, officers, consultants or directors of entities who become or are about to become employees, officers, consultants or directors of the Company or an Affiliate as the result of a merger or consolidation of
the employing entity with the Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets or stock of the employing entity. The terms and conditions of any substitute Awards so granted may vary from the terms and
conditions set forth herein to the extent that the Administrator deems appropriate at the time of grant to conform the substitute Awards to the provisions of the awards for which they are substituted. 

(f) Termination, Amendment and Modification of the Plan. The Board may amend or terminate the Plan at any time;
provided, however, that no amendment may adversely impair the rights of a participant with respect to outstanding Awards without the participant’s consent. In addition, an 

  
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amendment will be contingent upon approval of the Company’s shareholders if such approval is required by law or the rules of any exchange on which the Common Stock is listed or if the
amendment would (i) materially increase the benefits accruing to participants under the Plan, (ii) materially increase the aggregate number of shares of Common Stock that may be issued under the Plan (other than an increase pursuant to
Section 7(d)), (iii) materially modify the requirements as to eligibility for participation in the Plan or (iv) except as provided in Section 7(d), reduce the exercise price of an outstanding option or SAR or permit a payment in
exchange for the cancellation of an option or SAR if on the date of payment the exercise price of the option or SAR exceeds Fair Market Value. Except as otherwise determined by the Board, termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. 

(g) Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant Agreement thereunder shall confer any
right on an individual to continue in the service of the Company or shall interfere in any way with the right of the Company to terminate such service at any time with or without cause or notice and whether or not such termination results in
(i) the failure of any Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other adverse effect on the individual’s interests under the Plan. 

(h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company and a grantee or any other person. To the extent that any grantee or other person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company. 
 (i) Governing Law. The validity,
construction and effect of the Plan, of Grant Agreements entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and
all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with applicable federal laws and the laws of the State of North Carolina, without regard to its conflict of laws principles.

 (j) 409A Savings Clause. The Plan and all Awards granted hereunder are intended to comply with, or otherwise be
exempt from, Code section 409A. The Plan and all Awards granted under the Plan shall be administered, interpreted, and construed in a manner consistent with that intent and to avoid the imposition of additional taxes under Code section
409A(a)(1)(B). Should any provision of the Plan, any Award Agreement, or any other agreement or arrangement contemplated by the Plan be found not to comply with, or otherwise be exempt from, the provisions of Code section 409A, such provision shall
be modified and given effect (retroactively if necessary), in the sole discretion of the Administrator, and without the consent of the holder of the Award, in such manner as the Administrator determines to be necessary or appropriate to comply with,
or to effectuate an exemption from, Code section 409A. Notwithstanding anything in the Plan to the contrary, in no event shall the Administrator exercise its discretion to accelerate the payment or settlement of an Award where such payment or
settlement constitutes deferred compensation within the meaning of Code section 409A unless, and solely to the extent, that such accelerated payment or settlement is permissible under Treasury Regulation section 1.409A-3(j)(4) or any successor
provision. 
 (k) Effective Date; Termination Date. The Plan is effective as of the date on which the Plan is adopted
by the Board, subject to approval of the shareholders within twelve months before or after such date. No Award shall be granted under the Plan after the close of business on the day immediately preceding the tenth anniversary of the effective date
of the Plan, or if earlier, the tenth anniversary of the date this Plan is approved by the shareholders. Subject to other applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the Plan shall remain in effect
until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards. 

  
 -9- 

 PLAN APPROVAL 

Date Approved by the Board: March 17, 2015 
 Date
Approved by the Shareholders: May 6, 2015 

  
 -10-EXHIBIT 10.70

THIRD AMENDMENT TO STANDARD INDUSTRIAL / COMMERCIAL

MULTI -TENANT LEASE-NET

This Third Amendment to Standard Industrial/Commercial Multi -Tenant Lease-Net (the "Amendment") is made as of this 30th day of April, 2015, by and between FR National Life, LLC, a Delaware limited liability company ("Lessor") and PhotoMedex, Inc, a Nevada corporation ("Lessee").

RECITALS

A.            WHEREAS, Landlord and Tenant entered into that certain Standard Industrial/Commercial Multi -Tenant Lease-Net dated March 17, 2005 for the space commonly known as 2375 Camino Vida Roble, Suite B, Carlsbad CA 92011, comprising approximately 8,000 rentable square feet as Amended by the First Amendment to Standard Industrial/ Commercial Multi- Tenant Lease Net dated February 22nd, 2012.

 

B.

C.            WHEREAS, Landlord and Tenant entered into that certain Standard Industrial/Commercial Multi -Tenant Lease-Net dated February 22, 2012 for the space commonly known as 2375 Camino Vida Roble, Suite C, Carlsbad CA 92011, comprising approximately 3,320 rentable square feet for a combined approximately 11,320 rentable square feet combined in the two (2) lease documents.

D.            WHEREAS, Landlord and Tenant entered into that certain Second Amendment to Standard Industrial/Commercial Multi -Tenant Lease-Net dated August 8th, 2014 to expand into the space commonly known as 2365 Camino Vida Roble, Suite B, Carlsbad CA 92011, comprising approximately 5,669 rentable square feet for a combined approximately 16,903 rentable square feet combined in the two (2) lease documents and First & Second Amendment (the "Current Premises").

E.            WHEREAS, Lessor and Lessee desire to amend certain terms of the Lease in accordance with the terms and conditions set forth below.

NOW, THEREFORE, in consideration of the foregoing and the terms and provisions of this Amendment, Lessor and Lessee agree as follows:

	
1.

	
Defined Terms.  All terms used in this Amendment but not otherwise defined in this Amendment shall have the same meanings respectively ascribed to them in the Lease.  The Lease, as modified by this Amendment, is referred to as the "Lease".

	
2.

	
Term.  The term of the Lease shall be extended Twenty Four (24) months commencing October 1, 2015 and expire September 30, 2017.

	
3.

	
Rental Rate.  The monthly Base Rent for the Current Premises shall be payable as follows:

	 	
Period

	
Base Rent

	 
	 	
10/1/15-9/30/16

	
 $    16,226.88

	 
	 	
10/1/16-9/30/17

	
 $    16,713.68

	 

 

	
4.

	
Operating Expenses.  In addition to the Base Rent, Lessee shall pay its proportionate share of the NNN Expenses including Real Property Taxes, Real Property Insurance and Common Area Maintenance charges. Estimated NNN charges verses actual expenses shall be reconciled annually. HVAC maintenance and repair are included in the Lessor's NNN expense.  Lessee shall be responsible for paying directly their separately metered utilities servicing the Premises.

	
5.

	
Tenant Improvement Allowance. Included in the Base Rental Rate quoted above, Lessor shall provide Lessee with a one-time Lessee Improvement Allowance up to Forty Two Thousand Dollars ($42,000.00) ("TI Allowance") to complete improvements to the Premises.  Lessee hereby covenants and agrees that Lessee shall utilize the TI Allowance to perform the following tenant improvements:  (i) Install new ADA restroom, tie into existing sewer as needed and repair floor as needed (ii) HVAC: install new supply and returns for existing west half of office area. Install new thermostat and start up system.  Install fan for new and existing rest room and vent to outside (iii) Install new kitchenette with 8' of base cabinets.  Install pony wall with counter (iv) Electrical; Install electrical as needed to feed (30) work stations and printer at interior offices and a new refrigerator, microwave and two insta-hot water heaters and convenience outlets in bath and kitchenette area.  Install three new 2 X 4 troffer style light fixtures in office area and relocate as needed.  Install two new 20 amp circuits in warehouse area for convenience outlets and router station (v) Flooring: Install new commercial grade carpet in existing front office area.  Install new vinyl with cove in new bathroom.  Stain and seal kitchenette area.  Prep and patch as needed.  (vi) Doors & Painting:  Install one new 3070 door.  Relocate one existing door.  Drywall to match existing and paint affected areas as needed (vii) Fire: Install new fire sprinklers as needed in new bathroom (viii) Install new drain and water supply for sinks at west warehouse area (collectively, the "Permitted Lessee TI Work"). The design of the Permitted Lessee TI Work shall be approved by Lessor which Lessor shall not unreasonably withhold or delay its consent to, and approval of, any changes that Lessee proposes to make in the Permitted Lessee TI Work; however, Lessee shall be required to reasonably evidence to Lessor that the cost of any changes to the Permitted Lessee TI Work shall be covered by (i) the TI Allowance (in addition to all other costs to be incurred in connection with the performance of the Permitted Lessee TI Work that will remain unchanged) or (ii) Lessee's own funds (and Lessee shall provide to Lessor reasonable evidence of the availability of such funds of Lessee).  Lessee may request periodic disbursements of the TI Allowance (no more

frequently than monthly and in no smaller amounts than $5,000); however, as a condition precedent to any disbursement of the TI Allowance (except the final disbursement for which unconditional final lien waivers shall be required), Lessee shall be required to deliver to Lessor, in form and substance reasonably satisfactory to Lessor, conditional lien waivers from each contractor, subcontractor, supplier and materialman (collectively, "Contractors") for which Lessee is seeking a payment, together with any other documentation that would normally and customarily be delivered in connection with a draw request for an institutional lender's construction loan, if and to the extent requested by Lessor.  A 10% retainage shall be deducted from each disbursement of the TI Allowance and Lessor shall continue to hold that retainage pending completion of the Permitted Lessee TI Work and delivery of final and unconditional lien waivers from all Contractors engaged in the performance of any aspect or component of the Permitted Lessee TI Work.  Lessee shall perform the Permitted TI Lessee Work in compliance with all applicable laws in connection with, the performance of the Permitted Lessee TI Work, but Lessor shall reasonably cooperate with Lessee's efforts, at no out-of-pocket expense to Lessor.  All Permitted Lessee TI Work shall be deemed Lessor's property upon the termination or expiration of the Lease, unless Lessor requires Lessee to remove all or any portion of the Permitted Lessee TI Work.  Lessor shall have the right to reasonably approve all Contractors; all Contractors shall be duly licensed.  Lessor shall have no responsibility or obligation, of any nature whatsoever, in connection with the design and construction of the Permitted Lessee TI Work, other than the provision of the TI Allowance.  In the event that Lessee fails to request a disbursement of all of the TI Allowance on or before December 31, 2015, Lessee shall automatically be deemed to have waived its right to the application and expenditure of the remaining (unrequested) funds in the TI Allowance. Lessee shall be solely responsible for the payment of all costs incurred in connection with the construction and installation of the Permitted Lessee TI Work, if and to the extent that such costs exceed the TI Allowance.

	
6.

	
Security Deposit. The Total Security Deposit on hand totaling $10,751.00 shall be increased by $5,962.68 to equal a Security Deposit amount of $16,713.68.

	
7.

	
Option to Renew.  Per Exhibit A, Lessee has two (2) fair market value option to renew the lease for a period of Twenty Four (24) months.

	
8.

	
Conflict.  In the event there is conflict or inconsistency between the terms and conditions of this Amendment and the terms and conditions of the Lease, the terms and conditions of this Amendment shall control.  Except as otherwise expressly amended hereby, the Lease shall remain in full force and effect according to its terms.

	
9.

	
Counterparts; Facsimile.  This Amendment may be executed in two (2) or more counterparts, each of which shall be considered an original and all of which, when taken together, shall constitute one (1) instrument.  A facsimile counterpart of this Amendment shall be deemed an original for all relevant purposes.

IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the date first written above.

LESSOR:

FR National Life, LLC. a Delaware limited Liability Company

		By:	By: First Industrial, L.P., a Delaware limited partnership, its sole member

		By:	First Industrial Realty Trust, Inc., a Maryland corporation, its sole general partner

By: _/s/ Ryan McClean                                                 

Its:  Senior Regional Director                                       

Date:   5/1/15                                                                              

LESSEE:

PhotoMedex, Inc, a Nevada corporation

By: /s/ Dennis M. McGrath                                           

Its: President & CFO                                                     

Date: :  4/28/15                                                                           

EXHIBIT A

OPTION TO RENEW

1.            Lessee shall have the option ("Renewal Option") to renew this Lease for two (2) term of Twenty Four (24) months ("Renewal Term"), on all the same terms and conditions set forth in this Lease, except that Base Rent during the Renewal Terms shall be equal to the greater of (i) Fair Market Rent (as defined in Section 2 below) and (ii) the Renewal Rent Floor (as defined below).  The "Renewal Rent Floor" shall be the rate of Base Rent in effect as of the expiration of the Original Term or the first Renewal Term, as applicable. Lessee shall deliver written notice to Lessor of Lessee's election to exercise the Renewal Option ("Renewal Notice") not less than one hundred eighty (180) days, nor more than two hundred seventy (270) days, prior to the expiration date of the Original Term or the then-current Renewal Term, as applicable; and if Lessee fails to timely deliver the Renewal Notice to Lessor, then Lessee shall automatically be deemed to have irrevocably waived and relinquished the Renewal Option.

 

2.             "Fair Market Rent" shall be determined by Lessor, in its sole, but good faith, discretion based upon the annual base rental rates then being charged (as of the date on which Lessee delivers the applicable Renewal Notice) in the industrial market sector of the geographic area where the Building is situated for comparable space and for a lease term commencing on or about the commencement date of the applicable Renewal Term and equal in duration to the applicable Renewal Term, taking into consideration:  the geographic location, quality and age of the building; the location and configuration of the relevant space within the applicable building; the extent of service to be provided to the proposed Lessee thereunder; applicable distinctions between "gross" lease and "net" leases; the creditworthiness and quality of Lessee; leasing commissions; and any other relevant term or condition in making such evaluation, as reasonably determined by Lessor.  Lessor shall notify Lessee of Lessor's determination of Fair Market Rent for the Renewal Term, in writing (the "Base Rent Notice") within thirty (30) days after receiving the applicable Renewal Notice.

 

3.            Lessee shall then have fifteen (15) days after Lessor's delivery of the Base Rent Notice in which to advise Lessor, in writing (the "Base Rent Response Notice") whether Lessee (i) is prepared to accept the Fair Market Rent established by Lessor in the Base Rent Notice and proceed to lease the Premises, during the Renewal Term, at the greater of (y) Fair Market Rent or (z) the Renewal Rent Floor; or (ii) elects to withdraw and revoke its Renewal Notice, whereupon the Renewal Option shall automatically be rendered null and void; or (iii) elects to contest Lessor's determination of Fair Market Rent.  In the event that Lessee fails to timely deliver the Base Rent Response Notice, then Lessee shall automatically be deemed to have elected (i) above.  Alternatively, if Lessee timely elects (ii), then this Lease shall expire on the original expiration date of the initial Term or the then current Renewal Term, as applicable.  If, however, Lessee timely elects (iii), then the following provisions shall apply:

 

3.1            The Fair Market Rent shall be determined by either the Independent Brokers or the Determining Broker, as provided and defined below.

 

3.2            Within fifteen (15) days after Lessee delivers its Base Rent Response Notice, electing (iii), each of Lessor and Lessee shall advise the other, in writing (the "Arbitration Notice") of both (i) the identity of the individual that each of Lessor and Lessee,

respectively, is designating to act as Lessor's or Lessee's, as the case may be, duly authorized representative for purposes of the determination of Fair Market Rent pursuant to this Section 3 (the "Representatives"); and (ii) a list of three (3) proposed licensed real estate brokers, any of which may serve as one of the Independent Brokers (collectively, the "Broker Candidates").  Each Broker Candidate:

	
(A)

	
shall be duly licensed in the jurisdiction in which the Premises is located;

	
(B)

	
shall have at least five (5) years' experience, on a full-time basis, leasing industrial space (warehouse/distribution/ancillary office) in the same general geographic area as that in which the Premises is located, and at least three (3) of those five (5) years of experience shall have been consecutive and shall have elapsed immediately preceding the date on which Lessee delivers the Renewal Notice; and

	
(C)

	
shall be independent and have no then-pending (as of the date Lessor or Lessee designates the broker as a Broker Candidate) brokerage relationship, formal or informal, oral or written, with any or all of Lessor, Lessee, and any affiliates of either or both of Lessor and Lessee ("Brokerage Relationship"), nor may there have been any such Brokerage Relationship at any time during the two (2) year period immediately preceding the broker's designation, by Lessor or Lessee, as a Broker Candidate.

3.3            Within fifteen (15) days after each of Lessor and Lessee delivers its Arbitration Notice to the other, Lessor and Lessee shall cause their respective Representatives to conduct a telephonic meeting at a mutually convenient time.  At that meeting, the two (2) Representatives shall examine the list of six (6) Broker Candidates and shall each eliminate two (2) names from the list on a peremptory basis.  In order to eliminate four (4) names, first, the Lessee's Representative shall eliminate a name from the list and then the Lessor's Representative shall eliminate a name therefrom.  The two (2) Representatives shall alternate in eliminating names from the list of six (6) Broker Candidates in this manner until each of them has eliminated two (2) names.  The two (2) Representatives shall immediately contact the remaining two (2) Broker Candidates (the "Independent Brokers"), and engage them, as behalf of Lessor and Lessee, to determine the Fair Market Rent in accordance with the provisions of this Section 3.

 

3.4            The Independent Brokers shall determine the Fair Market Rent within thirty (30) days of their appointment.  Lessor and Lessee shall each make a written submission to the Independent Brokers (no more than ten (10) pages in length, in the aggregate, per submitting party), advising of the rate that the submitting party believes should be the Fair Market Rate, together with whatever written evidence or supporting data that the submitting party desires in order to justify its desired rate of Fair Market Rent; provided, in all events, however, that the aggregate maximum length of each party's submission shall not exceed ten (10) pages (each such submission package, a "FMR Submission").  The Independent Brokers shall be obligated to choose one (1) of the parties' specific proposed rates of Fair Market Rent, without being permitted to effectuate any compromise position

3.5            In the event, however, that the Independent Brokers fail to reach agreement, within twenty (20) days after the date on which both Lessor and Lessee deliver the FMR Submissions to the Independent Brokers (the "Decision Period"), as to which of the two (2) proposed rates of Fair Market Rent should be selected, then, within five (5) days after the expiration of the Decision Period, the Independent Brokers shall jointly select a real estate broker who (x) meets all of the qualifications of a Broker Candidate, but was not included in the original list of six (6) Broker Candidates; and (y) is not affiliated with any or all of (A) either or both of the Independent Brokers and (B) the real estate brokerage companies with which either or both of the Independent Brokers is affiliated (the "Determining Broker").  The Independent Brokers shall engage the Determining Broker on behalf of Lessor and Lessee (but without expense to the Independent Brokers), and shall deliver the FMR Submissions to the Determining Broker within five (5) days after the date on which the Independent Brokers select the Determining Broker pursuant to the preceding sentence (the "Submission Period").

 

3.6            The Determining Broker shall make a determination of the Fair Market Rent within twenty (20) days after the date on which the Submission Period expires.  The Determining Broker shall be required to select one of the parties' specific proposed rates of Fair Market Rent, without being permitted to effectuate any compromise position.

 

3.7            The decision of the Independent Brokers or the Determining Broker, as the case may be, shall be conclusive and binding on Lessor and Lessee, and neither party shall have any right to contest or appeal such decision.  Judgment may be entered, in a court of competent jurisdiction, upon the decision of the Independent Brokers or the Determining Broker, as the case may be.

 

3.8            In the event that the initial Term expires and the Renewal Term commences prior to the date on which the Independent Brokers or the Determining Broker, as the case may be, renders their/its decision as to the Fair Market Rent, then from the commencement date of the Renewal Term through the date on which the Fair Market Rent is determined under this Section 3 (the "Determination Date"), Lessee shall pay monthly Base Rent to Lessor at a rate equal to 110% of the rate of monthly Base Rent in effect on the expiration date of the initial Term (the "Temporary Base Rent").  Within ten (10) business days after the Determination Date, Lessor shall pay to Lessee, or Lessee shall pay to Lessor, depending on whether the Base Rent for the Renewal Term is less than or greater than the Temporary Base Rent, whatever sum that Lessor or Lessee, as the case may be, owes the other (the "Catch-Up Payment"), based on the Temporary Base Rent actually paid and the Base Rent due (as determined by the Independent Brokers or the Determining Broker, as the case may be) during that portion of the Renewal Term that elapses before the Catch-Up Payment is paid, in full (together with interest thereon, as provided below).  The Catch-Up Payment shall bear interest at the rate of Prime (defined below), plus five percent (5.0%) per annum from the date each monthly component of the Catch-Up Payment would have been due, had the Fair Market Rent been determined prior to the commencement of the Renewal Term, through the date on which the Catch-Up Payment is paid, in full (inclusive of interest thereon).  For purposes hereof, "Prime" shall mean the per annum rate of interest publicly announced by Wells Fargo Bank, N.A. (or its successor), from time to time, as its "prime" or "base" or "reference" rate of interest.

 

3.9            The party whose proposed rate of Fair Market Rent is not selected by the Independent Brokers or the Determining Broker, as the case may be, shall bear all costs of all

counsel, experts or other representatives that are retained by both parties, together with all other costs of the arbitration proceeding described in this Section 3, including, without limitation, the fees, costs and expenses imposed or incurred by any or all of the Independent Brokers and the Determining Broker.

3.10            Unless otherwise expressly agreed in writing, during the period of time that any arbitration proceeding is pending under this Section 3, Lessor and Lessee shall continue to comply with all those terms and provisions of this Lease that are not the subject of their dispute and arbitration proceeding, most specifically including, but not limited to, Lessee's monetary obligations under this Lease; and, with respect to the payment of Base Rent during that portion of the Renewal Term that elapses during the pendency of any arbitration proceeding under this Section 3, the provisions of Section 3.8 shall apply.

 

3.11            During any period of time that an arbitration is pending or proceeding under this Section 3, Lessee shall have no right to assign this Lease or enter into any sublease for all or any portion of the Premises, notwithstanding any provision to the contrary in this Lease.  Furthermore, if this Lease requires that Lessor perform any Lessee improvement work in connection with the Renewal Term, Lessor shall be relieved of any such obligation during the pendency of any arbitration proceeding under this Section 3.

 

4.            The Renewal Option is granted subject to all of the following conditions:

 

	
(a)

	
As of the date on which Lessee delivers its Renewal Notice and continuing through the commencement date of the Renewal Term, this Lease shall be in full force and effect and no act or omission shall occur which, with the giving of notice or the passage of time, or both, shall constitute a Breach or Default by Lessee under this Lease.

	
(b)

	
There shall be no further right of renewal after the expiration of the second Renewal Term.

	
(c)

	
The Renewal Option is personal to Lessee.  In the event that Lessee assigns its interest under this Lease or subleases all or any portion of the Premises, whether or not in accordance with the requirements of this Lease, and whether directly or indirectly, the provisions of this Exhibit A, shall not be available to, or run to the benefit of, and may not be exercised by, any assignee or sublessee.

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