Document:

Form of Advisory Agreement between the Registrant and Orange Advisors, LLC

 Exhibit 10.1 
  
 FORM OF 
 ADVISORY AGREEMENT 
  
 THIS ADVISORY AGREEMENT,
dated as of                     , 2004 (the “Agreement”), is between ORANGE HOSPITALITY, INC., a corporation organized under the
laws of the State of Maryland (the “Company”) and ORANGE ADVISORS, LLC., a limited liability company organized under the laws of the State of New Jersey (the “Advisor”). 
  
 W I T N E S S E T H 
  
  WHEREAS, the Company filed with the Securities and Exchange Commission a
Registration Statement (No. 333-115998) on Form S-11 covering 23,403,510 of its common shares (the “Offering”), par value $.01, to be offered to the public; 
   
 WHEREAS, the Company intends to qualify as a REIT (as defined below) and intends to invest its funds in investments
permitted by the terms of the Registration Statement and Sections 856 through 860 of the Code (as defined below); 
  
 WHEREAS, the Company desires to avail itself of the experience, sources of information, advice, assistance and certain facilities available to the Advisor
and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision, of the Board of Directors of the Company, all as provided herein; and 
  
 WHEREAS, the Advisor is willing to undertake to render such services, subject
to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth; 
  
 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

  
 (1) Appointment. The Company hereby appoints the
Advisor to serve as its advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment. 
  
 (2) Duties of the Advisor. The Advisor has responsibility for the day-to-day operations of the Company, including administering the Company’s
bookkeeping and accounting functions, serving as the Company’s consultant in connection with policy decisions to be made by the Board of Directors of the Company, managing the Company’s properties and rendering other services as the Board
of Directors deems appropriate. The Advisor is subject to the supervision of the Board of Directors and has only such functions as are delegated to it. In performance of its duties, subject to the supervision of the Directors and consistent with the
provisions of the Registration Statement, Articles of Incorporation and Bylaws of the Company, the Advisor shall, either directly or by engaging an Affiliate: 
  

(a) provide the daily management of the Company and perform and supervise the various administrative functions reasonably necessary for the management
of the Company; 
  
 (b) investigate, select and, on behalf of the
Company, engage and conduct business with such Persons as the Advisor deems necessary to the proper performance of its obligations 

 hereunder, including but not limited to consultants, accountants, correspondents, lenders, technical advisors, attorneys,
brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, mortgagors and any and all agents for any of the foregoing,
including Affiliates of the Advisor, and Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services, including but not limited to entering into contracts in the name of the
Company with any of the foregoing; 
  
 (c) consult with the
officers and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s policies relating to acquisition and disposition of properties and finance, and, as necessary, furnish the Directors with
advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the Company; 
  
 (d) subject to the provisions of Paragraphs 2(f) and 3 hereof, (i) research,
analyze and select potential investments in Properties, (ii) structure and negotiate the terms and conditions of transactions pursuant to which investment in Properties will be made by the Company; (iii) make investments in Properties on behalf of
the Company in compliance with the investment objectives and policies of the Company; (iv) arrange for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or
otherwise deal with the investments in, Property; and (v) enter into leases and service contracts for Company Property and, to the extent necessary, perform all other operational functions for the maintenance and administration of such Company
Property; 
  
 (e) provide the Directors with periodic reports
regarding prospective investments in Properties; 
  
 (f) obtain
the prior approval of the Directors (including a majority of all Independent Directors) for any and all investments in Properties; 
  
 (g) negotiate on behalf of the Company with banks or lenders for loans to be made to the Company and negotiate on behalf of the Company with investment
banking firms and broker-dealers or negotiate private sales of Shares and Securities or obtain loans for the Company, but in no event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and provided, further, that any
fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company; 
  
 (h) obtain reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of investments or contemplated
investments of the Company in Properties; 
  
 (i) from time to
time, or at any time reasonably requested by the Directors, make reports to the Directors of its performance of services to the Company under this Agreement; 
  
 (j) provide the Company with all necessary cash management services; 
  

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 (k) do all things necessary to assure its ability to render the services described in this Agreement;

  
 (l) deliver to or maintain on behalf of the Company copies of
all appraisals obtained in connection with the investments in Properties; and 
  
 (m) notify the Board of all proposed material transactions before they are completed. 
  
 (3) Authority of Advisor. 
  
 (a) Pursuant to the terms of this Agreement (including the restrictions included in this Paragraph 3 and in Paragraph 6, and subject to the continuing and
exclusive authority of the Directors over the management of the Company, the Directors hereby delegate to the Advisor the authority to (1) research, analyze and select investment opportunities, (2) structure the terms and conditions of transactions
pursuant to which investments will be made or acquired for the Company, (3) acquire Properties in compliance with the investment objectives and policies of the Company, (4) arrange for financing or refinancing Property, (5) enter into leases and
service contracts for the Company’s Property, and perform other property management services, (6) oversee non-affiliated property managers and other non-affiliated Persons who perform services for the Company; and (7) undertake accounting and
other record-keeping functions at the Property level. 
  
 (b)
Notwithstanding the foregoing, any investment in Properties; including any acquisition of Property by the Company (as well as any financing acquired by the Company in connection with such acquisition) will require the prior approval of the Directors
(including a majority of the Independent Directors). 
  
 (c) If a
transaction requires approval by the Independent Directors, the Advisor will deliver to the Independent Directors all documents required by them to properly evaluate the proposed investment in the Property. The prior approval of a majority of the
Independent Directors and a majority of the Directors not otherwise interested in the transaction will be required for each transaction with the Advisor or its Affiliates. 
  
 (d) The Directors may, at any time upon the giving of notice to the Advisor, modify or revoke the authority set forth in
this Paragraph 3. If and to the extent the Directors so modify or revoke the authority contained herein, the Advisor shall henceforth submit to the Directors for prior approval such proposed transactions involving investments in Property as
thereafter require prior approval, provided, however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company prior to
the date of receipt by the Advisor of such notification. 
  
 (4)
Bank Accounts. The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Company or in the name of the Company and may collect and deposit into any such account or accounts, and disburse from any
such account or accounts, any money on behalf of the Company, under such terms and conditions as the Directors may approve, provided that no funds shall be commingled with the funds of the Advisor; and the Advisor shall from time to time render
appropriate accountings of such collections and payments to the Directors and to the auditors of the Company. 
  

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 (5) Records; Access. The Advisor shall maintain appropriate records of all its activities
hereunder and make such records available for inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business hours. The Advisor shall at all reasonable times have
access to the books and records of the Company. 
  
 (6)
Limitations on Activities. Anything else in this Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment made in good faith, would (a) adversely affect the status of the Company
as a REIT, (b) subject the Company to regulation under the Investment Company Act of 1940 or (c) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, its Equity Shares or
its Securities, or otherwise not be permitted by the Articles of Incorporation or Bylaws, except if such action shall be ordered by the Directors, in which case the Advisor shall notify promptly the Directors of the Advisor’s judgment of the
potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Directors. In such event the Advisor shall have no liability for acting in accordance with the specific
instructions of the Directors so given. Notwithstanding the foregoing, the Advisor, its directors, officers, employees and stockholders, and stockholders, directors and officers of the Advisor’s Affiliates shall not be liable to the Company or
to the Directors or Stockholders for any act or omission by the Advisor, its directors, officers or employees, or stockholders, directors or officers of the Advisor’s Affiliates, except as provided in Paragraphs 18 and 19 of this Agreement.

  
 (7) Relationship with Directors. Directors, officers
and employees of the Advisor or an Affiliate of the Advisor or any corporate parents of an Affiliate, or directors, officers or stockholders of any director, officer or corporate parent of an Affiliate may serve as a Director and as officers of the
Company, except that no director, officer or employee of the Advisor or its Affiliates who also is a Director or officer of the Company shall receive any compensation from the Company for serving as a Director or officer other than reasonable
reimbursement for travel and related expenses incurred in attending meetings of the Directors. 
  
 (8) Fees. 
  
  (a)
Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company under Paragraph 2 above a monthly asset management fee in an amount equal to 10% of the amount of the Company’s
monthly REIT Operating Expenses. The Asset Management Fee may or may not be taken, in whole or in part as to any year, in the sole discretion of the Advisor. All or any portion of the Asset Management Fee not taken as to any fiscal year will be
deferred without interest and may be taken in such other fiscal year, as the Advisor may determine. The payment of the Asset Management Fee is subject to Section 11 of this Agreement. 
   
 (b) Deferred, Subordinated Share of Net Sales Proceeds. The Company
shall pay the Advisor a deferred, subordinated share from sales of assets of the Company, whether or not in 
  

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 liquidation of the Company, equal to 10% of Net Sales Proceeds remaining after receipt by the Stockholders of
Distributions equal to the sum of (i) the Stockholders’ 8% Return and (ii) 100% of Invested Capital. Following Listing, no share of Net Sales Proceeds will be paid to the Advisor. 
  
 (c) Subordinated Incentive Fee. At such time, if any, as Listing occurs, the Advisor shall be paid the Subordinated
Incentive Fee in an amount equal to 10% of the amount by which (i) the market value of the Company (as defined below) plus the total Distributions made to Stockholders from the Company’s inception until the date of Listing exceeds (ii) the sum
of (a) their Invested Capital and (b) the total Distributions required to be made to the Stockholders in order to pay the Stockholders’ 8% Return from inception through the date the market value is determined. For purposes of calculating the
Subordinated Incentive Fee, the market value of the Company shall be the average closing price or average of bid and asked price, as the case may be, over a period of 30 days during which the shares are traded with such period beginning 180 days
after Listing. The Subordinated Incentive Fee will be reduced by the amount of any prior payment to the Advisor of a deferred, subordinated share of net sales proceeds from sales of assets of the Company. In no event shall the Company pay the
Advisor both the Subordinated Incentive Fee and the Performance Fee. 
  
 (d) Performance Fee. The Company shall pay the Advisor the Performance Fee at the time and in accordance with the terms set forth in Paragraph 17 of this Agreement. 
  
 (e) Loans from Affiliates. If any loans are made to the Company by an Affiliate of the Advisor, the maximum amount of
interest that may be charged by such Affiliate shall be the lesser of (i) 1% above the prime rate of interest charged from time to time by The Bank of New York and (ii) the rate that would be charged to the Company by unrelated lending institutions
on comparable loans for the same purpose. The terms of any such loans shall be no less favorable than the terms available between non-Affiliated Persons for similar commercial loans. 
  
 (9) Expenses. 
  
 (a) In addition to the compensation paid to the Advisor pursuant to Paragraph 8 hereof, the Company shall pay directly or reimburse the Advisor for all of
the expenses paid or incurred by the Advisor in connection with the services it provides to the Company pursuant to this Agreement, including, but not limited to: 
  
 (i) the Company’s Organizational and Offering Expenses; pursuant to state securities laws, the Organization and
Offering Expenses paid by the Company, together with the 7.5% selling commissions and the 1.5% marketing allowance incurred by the Company, may not exceed 15% of the proceeds raised in connection with the Offering; 
  
 (ii) Acquisition Expenses incurred in connection with the selection and
acquisition of Properties, provided that reimbursement will be limited to the actual cost of goods and services used by the Company and obtained from entities not affiliated with the Advisor, or the lesser of the actual cost or 90% of the
competitive rate charged by unaffiliated persons providing similar goods and services in the same geographic location for goods or services provided by the Advisor or its affiliates; the total of all Acquisition Fees and Acquisition 
  

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 Expenses shall be reasonable and shall not exceed an amount equal to six percent (6%) of the contract price of a
property, unless a majority of the board of directors, not otherwise interested in the transaction, approves fees in excess of these limits subject to a determination that the transaction is commercially competitive, fair and reasonable to the
Company; 
  
 (iii) the actual cost of goods and services used by
the Company and obtained from entities not affiliated with the Advisor, other than Acquisition Expenses, including brokerage fees paid in connection with the purchase and sale of securities; 
  
 (iv) interest and other costs for borrowed money, including discounts, points
and other similar fees; 
  
 (v) taxes and assessments on income or
Property and taxes as an expense of doing business; 
  
 (vi) costs
associated with insurance required in connection with the business of the Company or by the Directors; 
  
 (vii) expenses of managing and operating Properties owned by the Company, whether payable to an Affiliate of the Company or a non-affiliated Person;

  
 (viii) all expenses in connection with payments to the
Directors and meetings of the Directors and Stockholders; 
  
 (ix)
expenses associated with Listing or with the issuance and distribution of Shares and Securities, such as selling commissions and fees, advertising expenses, taxes, legal and accounting fees, Listing and registration fees, and other Organizational
and Offering Expenses; 
  
 (x) expenses connected with payments of
Distributions in cash or otherwise made or caused to be made by the Directors to the Stockholders; 
  
 (xi) expenses of organizing, revising, amending, converting, modifying or terminating the Company or the Articles of Incorporation; 
  
 (xii) expenses of maintaining communications with Stockholders, including the
cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 
  

(xiii) administrative service expenses (including personnel costs; provided, however, that no reimbursement shall be made for costs of personnel to the
extent that such personnel perform services in transactions for which the Advisor receives a separate fee at the lesser of actual cost or 90% of the competitive rate charged by unaffiliated persons providing similar goods and services in the same
geographic location); and 
  
 (xiv) audit, accounting and legal
fees. 
  

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 (b) Expenses incurred by the Advisor on behalf of the Company and payable pursuant to this Paragraph 9
shall be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the Company during each quarter, and shall deliver such statement to the Company within 45 days after the end of each quarter.

  
 (10) Other Services. Should the Directors request that
the Advisor or any director, officer or employee thereof render services for the Company other than set forth in Paragraph 2, such services shall be separately compensated at such rates and in such amounts as are agreed by the Advisor and the
Independent Directors of the Company, subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this Agreement. 
  
  (11) Reimbursement to the Advisor. The reimbursement of the REIT
Operating Expenses is subject to the following: unless a majority of the Independent Directors shall have made a finding that, based upon such unusual and non-recurring factors which they deem sufficient, a higher level of expenses is justified, the
Company shall not reimburse the Advisor at the end of any fiscal quarter for REIT Operating Expenses that, in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed the greater of 2% of Average Invested Assets or 25%
of Net Income (the “2%/25% Guidelines”) for such year. Within 60 days after the end of any fiscal quarter of the Company for which total REIT Operating Expenses for the Expense Year exceed the 2%/25% Guidelines and the Independent
Directors do not make such a finding, the Advisor shall reimburse the Company the amount by which the total REIT Operating Expenses paid or incurred by the Company exceeded the 2%/25% Guidelines. 
   
 (12) Other Activities of the Advisor. Nothing herein contained shall
prevent the Advisor from engaging in other activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its
Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, employee, or stockholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other partnership,
corporation, firm, individual, trust or association. The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein. The Advisor shall report to the
Directors the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its
interest in any other partnership, corporation, firm, individual, trust or association. The Advisor or its Affiliates shall promptly disclose to the Directors knowledge of such condition or circumstance. If the Sponsor, Advisor, Director or
Affiliates thereof have sponsored other investment programs with similar investment objectives which have investment funds available at the same time as the Company, it shall be the duty of the Directors (including the Independent Directors) to
adopt the method set forth in the Registration Statement or another reasonable method by which properties are to be allocated to the competing investment entities and to use their best efforts to apply such method fairly to the Company. 

 
 The Advisor shall be required to use its best efforts to present a
continuing and suitable investment program to the Company which is consistent with the investment policies and objectives of the Company, but neither the Advisor nor any Affiliate of the Advisor shall be 
  

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 obligated generally to present any particular investment opportunity to the Company even if the opportunity is of
character which, if presented to the Company, could be taken by the Company. The Advisor or its Affiliates may make such an investment in a property only after (i) such investment has been offered to the Company and all public partnerships and other
investment entities affiliated with the Company with funds available for such investment and (ii) such investment is found to be unsuitable for investment by the Company, such partnerships and investment entities. 
  
 In the event that the Advisor or its Affiliates is presented with a potential
investment which might be made by the Company and by another investment entity which the Advisor or its Affiliates advises or manages, the Advisor and its Affiliates shall consider the investment portfolio of each entity, cash flow of each entity,
the effect of the acquisition on the diversification of each entity’s portfolio, rental payments during any renewal period, the estimated income tax effects of the purchase on each entity, the policies of each entity relating to leverage, the
funds of each entity available for investment and the length of time such funds have been available for investment. In the event that an investment opportunity becomes available which is suitable for both the Company and a public or private entity
which the Advisor or its Affiliates are Affiliated, then the entity which has had the longest period of time elapse since it was offered an investment opportunity will first be offered the investment opportunity. 
  
 (13) Relationship of Advisor and Company. The Company and the Advisor
are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on either of them. 
  
  (14) Term; Termination of Agreement. This Agreement shall continue
in force until September     , 2005, subject to an unlimited number of successive one-year renewals upon mutual consent of the parties. It is the duty of the Directors to evaluate the performance of the Advisor annually
before renewing the Agreement, and each such agreement shall have a term of no more than one year. 
   
 (15) Termination by Either Party. This Agreement may be terminated upon 60 days written notice without Cause or penalty, by either party (by a
majority of the Independent Directors of the Company or a majority of the Board of Directors of the Advisor, as the case may be). 
  
 (16) Assignment to an Affiliate. This Agreement may be assigned by the Advisor to an Affiliate with the approval of a majority of the Directors
(including a majority of the Independent Directors). The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Directors. This Agreement shall not be assigned by the Company
without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Company, in which case such successor organization
shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement. 
  
 (17) Payments to and Duties of Advisor Upon Termination. Payments to the Advisor pursuant to this Paragraph 17 shall be subject to the 2%/25%
Guidelines to the extent applicable. 
  

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 (a) After the Termination Date, the Advisor shall not be entitled to compensation for further services
hereunder except it shall be entitled to receive from the Company within 30 days after the effective date of such termination all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this
Agreement. 
  
 (b) Upon termination of this Agreement, if Listing
has not occurred and the Advisor has met applicable performance standards, the Advisor shall be paid the Performance Fee in the amount equal to 10% of the amount by which (i) the Appraised Value of the Company’s assets on the date of
termination of the Agreement, less any indebtedness secured by such assets, plus total Distributions paid to Stockholders from the Company’s inception through the Termination Date, exceeds (ii) the sum of 100% of Invested Capital plus an amount
equal to the Stockholders’ 8% Return from inception through the Termination Date. The Performance Fee, to the extent payable at the time of Listing, will not be payable in the event the Subordinated Incentive Fee is paid. 
  
 (c) The Performance Fee shall be paid in 12 equal quarterly installments
without interest on the unpaid balance, provided, however, that no payment will be made in any quarter in which such payment would jeopardize the Company’s REIT status, in which case any such payment or payments will be delayed until the next
quarter in which payment would not jeopardize REIT status. Notwithstanding the preceding sentence, any amounts which may be deemed payable at the date the obligation to pay the Performance Fee is incurred which relate to the appreciation of the
Company’s assets shall be an amount which provides compensation to the Advisor only for that portion of the holding period for the respective assets during which the Advisor provided services to the Company. 
  
 (d) If Listing occurs, the Performance Fee, if any, payable thereafter will
be as negotiated between the Company and the Advisor. The Advisor will not be entitled to payment of the Performance Fee in the event this Agreement is terminated because of failure of the Company and the Advisor to establish a fee structure
appropriate for a perpetual-life entity at such time, if any, as Listing occurs. The Performance Fee, to the extent payable at the time of Listing, will not be paid in the event the Subordinated Incentive Fee is paid. 
  
 (e) The Advisor shall promptly upon termination: 
  
 (i) pay over to the Company all money collected and held for the account of
the Company pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled; 
  
 (ii) deliver to the Directors a full accounting, including a statement showing all payments collected by it and a statement of all money held by it,
covering the period following the date of the last accounting furnished to the Directors; 
  
 (iii) deliver to the Directors all assets, including Properties, and documents of the Company then in the custody of the Advisor; and 
  
 (iv) cooperate with the Company to provide an orderly management transition. 
  

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 (18) Indemnification by the Company. The Company shall indemnify and hold harmless the Advisor and
its Affiliates, including their respective officers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’
fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, subject to any limitations imposed by the laws of the State of Maryland or the Articles of Incorporation of the Company.
Notwithstanding the foregoing, the Advisor shall not be entitled to indemnification or be held harmless pursuant to this Paragraph 18 for any activity for which the Advisor shall be required to indemnify or hold harmless the Company pursuant to
Paragraph 19. Any indemnification of the Advisor may be made only out of the net assets of the Company and not from Stockholders. 
  
 (19) Indemnification by Advisor. The Advisor shall indemnify and hold harmless the Company from contract or other liability, claims, damages, taxes
or losses and related expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad faith,
fraud, willful misfeasance, misconduct, negligence or reckless disregard of its duties, but the Advisor shall not be held responsible for any action of the Board of Directors in following or declining to follow any advice or recommendation given by
the Advisor. 
  
 (20) Definitions. As used in this
Agreement, the following terms have the definitions hereinafter indicated: 
  
 Acquisition Expenses. Any and all expenses incurred by the Company, the Advisor or any Affiliate of either in connection with the selection or acquisition of any Property, whether or not acquired, including,
without limitation, legal fees and expenses, travel and communications expenses, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, and title insurance. 
  
 Acquisition Fees. Any and all fees and commissions, exclusive of
Acquisition Expenses, paid by any person or entity to any other person or entity (including any fees or commissions paid by or to any Affiliate of the Company or the Advisor) in connection with the purchase, development or construction of a
Property, including, without limitation, real estate commissions, acquisition fees, finder’s fees, selection fees, development fees, construction fees, nonrecurring management fees, consulting fees, loan fees, points, or any other fees or
commissions of a similar nature. Excluded shall be development fees and construction fees paid to any person or entity not affiliated with the Advisor in connection with the actual development and construction of any Property. The total of all
Acquisition Fees and Acquisition Expenses shall not exceed an amount equal to six percent (6%) of the Contract Purchase Price of a Property, unless a majority of the Board of Directors, not otherwise interested in the transaction, approves fees in
excess of these limits subject to a determination that the transaction is commercially competitive, fair and reasonable to the Company. 
  

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   Advisor. Orange Advisors, LLC, a New Jersey limited liability company, any successor
advisor to the Company, or any person or entity to which Orange Advisors, LLC or any successor advisor subcontracts substantially all of its functions. 
  
 Affiliate or Affiliated. As to any individual, corporation, partnership, trust or other association (other than the Excess Shares Trust), (i) any
Person or entity directly or indirectly through one or more intermediaries controlling, controlled by, or under common control with another person or entity; (ii) any Person or entity, directly or indirectly owning or controlling ten percent (10%)
or more of the outstanding voting securities of another Person or entity; (iii) any officer, director, partner, or trustee of such Person or entity; (iv) any Person ten percent (10%) or more of whose outstanding voting securities are directly or
indirectly owned, controlled, or held, with power to vote, by such other Person; and (v) if such other Person or entity is an officer, director, partner, or trustee of a Person or entity, the Person or entity for which such Person or entity acts in
any such capacity. 
  
 Appraised Value. Value according to
an appraisal made by an Independent Appraiser. 
  
 Articles of
Incorporation. The Articles of Incorporation of the Company under Title 2 of the Corporations and Associations Article of the Annotated Code of Maryland, as amended from time to time. 
  
 Asset Management Fee. The fee payable to the Advisor for day-to-day professional management services in connection
with the Company and its investments in Properties pursuant to this Agreement. 
  
 Average Invested Assets. For a specified period, the average of the aggregate book value of the assets of the Company invested, directly or indirectly, in equity interests in real estate before reserves for
depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each month during such period. 
  
 Board of Directors or Board. The persons holding such office, as of any particular time, under the Articles of Incorporation, whether they be the
Directors named therein or additional or successor Directors. 
  
 Bylaws. The bylaws of the Company, as the same are in effect from time to time. 
  

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 Cause. With respect to the termination of this Agreement, fraud, criminal conduct, willful
misconduct or willful or negligent breach of fiduciary duty by the Advisor, breach of this Agreement or the bankruptcy of the Advisor. 
  
 Code. Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall
mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 
  
 Company. Orange Hospitality, Inc., a corporation organized under the
laws of the State of Maryland. 
  
 Company Property. Any
and all property, real, personal or otherwise, tangible or intangible, which is transferred or conveyed to the Company (including all rents, income, profits and gains therefrom), and which is owned or held by, or for the account of, the Company.

  
 Director. A member of the Board of Directors of the
Company. 
  
 Distributions. Any distributions of money or
other property by the Company to owners of Equity Shares, including distributions that may constitute a return of capital for federal income tax purposes. 
  
 Equity Interest. The stock of or other interests in, or warrants or other rights to purchase the stock of or other interests in, any entity that
has borrowed money from the Company or that is a tenant of the Company or that is a parent or controlling Person of any such borrower or tenant. 
  
 Equity Shares. Transferable shares of beneficial interest of the Company of any class or series, including common shares or preferred shares.

  
 Independent Appraiser. A qualified appraiser of real
estate as determined by the Board. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate Appraisers (“M.A.I.”) or the Society of Real Estate Appraisers (“S.R.E.A.”) shall be
conclusive evidence of such qualification. 
  
 Independent
Director. A Director who is not and within the last two years has not been directly or indirectly associated with the Advisor by virtue of (i) ownership of an interest in the Advisor or its Affiliates, (ii) employment by the Advisor or its
Affiliates, (iii) service as an officer or director of the Advisor or its Affiliates, (iv) performance of services, other than as a Director, for the Company, (v) service as a director or trustee of more than three real estate investment trusts
advised by the Advisor, or (vi) maintenance of a material business or professional relationship with the Advisor or any of its Affiliates. A business or professional relationship is considered material if the gross revenue derived by the Director
from the Advisor and Affiliates exceeds 5% of either the Director’s annual gross revenue during either of the last two years or the Director’s net worth on a fair market value basis. An indirect relationship shall include circumstances in
which a Director’s spouse, parents, children, siblings, mothers- or fathers-in-law, sons- or daughters-in-law, or brothers- or sisters-in-law is or has been associated with the Advisor, any of its Affiliates, or the Company. 
  

 12 

 Invested Capital. The amount calculated by multiplying the total number of Shares purchased by
Stockholders by the issue price, reduced by the portion of any Distribution that is attributable to Net Sales Proceeds and by any amounts paid by the Company to repurchase Shares pursuant to the Company’s plan for redemption of Shares.

  
 Joint Venture. The joint venture or general partnership
arrangements in which the Company is a co-venturer or general partner which are established to acquire Properties. 
  
 Listing. The listing of the Shares on a national securities exchange or the Nasdaq stock market. Listing does not include trading through the OTC
Bulletin Board. 
  
  Net Income. For any period, the
total revenues applicable to such period, less the total expenses applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, Net Income for purposes of calculating
total allowable REIT Operating Expenses (as defined herein) shall exclude the gain from the sale of the Company’s assets. 
   
 Net Sales Proceeds. In the case of a transaction described in clause (i)(A) of the definition of Sale, the proceeds of any such transaction less
the amount of all real estate commissions and closing costs paid by the Company. In the case of a transaction described in clause (i)(B) of such definition, Net Sales Proceeds means the proceeds of any such transaction less the amount of any legal
and other selling expenses incurred in connection with such transaction. In the case of a transaction described in clause (i)(C) of such definition, Net Sales Proceeds means the proceeds of any such transaction actually distributed to the Company
from the Joint Venture. In the case of a transaction described in clause (ii) of the definition of Sale, Net Sales Proceeds means the proceeds of such transaction or series of transactions less all amounts generated thereby and reinvested in one or
more Properties within 180 days thereafter and less the amount of any real estate commissions, closing costs, and legal and other selling expenses incurred by or allocated to the Company in connection with such transaction or series of transactions.
Net Sales Proceeds shall also include, in the case of any lease of a Property consisting of a building only, amounts from tenants, borrowers or lessees that the Company determines, in its discretion, to be economically equivalent to proceeds of a
Sale. Net Sales Proceeds shall not include, as determined by the Company in its sole discretion, any amounts reinvested in one or more Properties, to repay outstanding indebtedness, or to establish reserves. 
  
 Offering. The public offering of 23,403,510 Shares. 
  
 Organizational and Offering Expenses. Organizational and Offering
Expenses are defined as any and all costs and expenses, other than selling commissions and the 1.5% marketing allowance incurred by the Company, the advisor or any affiliate of either in connection with the formation, qualification and registration
of the Company and the marketing and distribution of Shares, including, without limitation, the following: legal, accounting and escrow fees; printing, amending, supplementing, mailing and distributing costs; filing, registration and qualification
fees and taxes; telegraph and telephone costs; and all advertising and marketing expenses, including the costs related to investor and broker-dealer sales meetings. The Organizational and Offering Expenses paid by the Company in connection with its
formation, together with all selling commissions and the 1.5% marketing allowance, will not exceed fifteen percent of the proceeds raised in connection with the Offering. 
  

 13 

 Performance Fee. The fee payable to the Advisor upon termination of this Agreement under certain
circumstances if certain performance standards have been met and the Subordinated Incentive Fee has not been paid. 
  
 Person. An individual, corporation, partnership, estate, trust (including a trust qualified under Section 401(a) or 501(c)(17) of the Code), a
portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity,
or any government or any agency or political subdivision thereof, and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, but does not include (i) an underwriter that
participates in a public offering of Equity Shares for a period of sixty (60) days following the initial purchase by such underwriter of such Equity Shares in such public offering, or (ii) Briad Development West, LLC, during the period ending
December 31, 2004, provided that the foregoing exclusions shall apply only if the ownership of such Equity Shares by an underwriter or Briad Development West, LLC would not cause the Company to fail to qualify as a REIT by reason of being
“closely held” within the meaning of Section 856(a) of the Code or otherwise cause the Company to fail to qualify as a REIT. 
  
 Property or Properties. The real properties, including the buildings located thereon, or the real properties only, or the buildings only, which are
acquired by the Company, either directly or through joint venture arrangements or other partnerships. 
  
  Registration Statement. The Registration Statement (No. 333-115998) on Form S-11 registering the Shares to be sold in the Offering. 

  
 REIT. A “real estate investment trust” under
Sections 856 through 860 of the Code. 
  
  REIT Operating
Expenses. All costs and expenses incurred by the Company, as determined under generally accepted accounting principles, which in any way are related to the operation of the Company or to Company’s business (excluding the operation of any
taxable REIT subsidiary), including (a) advisory fees, (b) the Asset Management Fee, (c) the Performance Fee and (d) the Subordinated Incentive Fee, but excluding (i) the expenses of raising capital such as Organizational and Offering Expenses,
legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares, (ii) interest
payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad loan reserves, (v) the Advisor’s subordinated 10% share of Net Sales Proceeds, and (vi) Acquisition Fees and Acquisition Expenses, disposition fees,
real estate commissions on the sale of property and other expenses connected with the acquisition and ownership of real estate interests or other property (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and
improvement of property). 
   
 Sale or Sales. (i) Any
transaction or series of transactions whereby: (A) the Company sells, grants, transfers, conveys, or relinquishes its ownership of any Property, or other asset not included in (i)(B), or portion thereof, including the lease of any Property
consisting of the building only, and including any event with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the Company sells, grants, transfers, conveys, or relinquishes its
ownership of all or substantially all of the interest of the Company in any Joint Venture in which it is a co-venturer or partner; or (C) any Joint Venture in which the Company as a co-venturer or partner sells, grants, transfers, conveys, or
relinquishes its ownership of any Property or portion thereof, including any event with respect to any Property which gives rise to insurance claims or condemnation awards; but (ii) not including any transaction or series of transactions specified
in clause (i)(A), (i)(B), or (i)(C) above in which the proceeds of such transaction or series of transactions are reinvested in one or more Properties within 180 days thereafter. 
  
 Securities. Any Equity Shares, Excess Shares, as such term is defined in the Articles of Incorporation, any other
stock, shares or other evidences of equity or beneficial or other interests, 
  

 14 

 voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for, guarantees of, or
warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing. 
  
 Shares. The common shares of the Company. 
  
 Sponsor. Any Person directly or indirectly instrumental in organizing, wholly or in part, the Company or any Person whom will control, manage or participate in the management of the Company, and any Affiliate
of such Person. Not included is any Person whose only relationship with the Company is that of an independent property manager of Company assets, and whose only compensation is as such. Sponsor does not include independent third parties such as
attorneys, accountants, and underwriters whose only compensation is for professional services. A Person may also be deemed a Sponsor of the Company by: 
  

	 	a.	 	taking the initiative, directly or indirectly, in founding or organizing the business or enterprise of the Company, either alone or in conjunction with one or more other Persons;

  

	 	b.	 	receiving a material participation in the Company in connection with the founding or organizing of the business of the Company, in consideration of services or property, or both
services and property; 

  

	 	c.	 	having a substantial number of relationships and contacts with the Company; 

  

	 	d.	 	possessing significant rights to control Company properties; 

  

	 	e.	 	receiving fees for providing services to the Company which are paid on a basis that is not customary in the industry; or 

  

	 	f.	 	providing goods or services to the Company on a basis which was not negotiated at arms length with the Company. 

  
 Stockholders. The registered holders of the Equity Shares. 

 
 Stockholders’ 8% Return. As of each date, an aggregate amount
equal to an 8% cumulative, non-compounded, annual return on Invested Capital. 
  
 Subordinated Incentive Fee. The fee payable to the Advisor under certain circumstances if the Shares are Listed. 
  
 Termination Date. The date of termination of the Agreement. 
  
  2%/25% Guidelines. The requirement pursuant to the guidelines of the North American Securities Administrators
Association, Inc. that, in any 12 month period, total REIT Operating Expenses not exceed the greater of 2% of the Company’s Average Invested Assets during such 12 month period or 25% of the Company’s Net Income over the same 12 month
period. 
   

 15 

 (21) Notices. Any notice, report or other communication required or permitted to be given
hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to whom it is given, and shall be given by being delivered
by hand or by overnight mail or other overnight delivery service to the addresses set forth herein: 
  
 To the Directors and to the Company: 
  

							
	 	 	Orange Hospitality, Inc.	 	 	 	 
				
	 	 	
	 	 	 	 
				
	 	 	
	 	 	 	 
				
	 	 	
	 	 	 	 
				
	 To the Advisor:
	 	Orange Advisors, LLC	 	 	 	 
				
	 	 	
	 	 	 	 
				
	 	 	
	 	 	 	 
				
	 	 	
	 	 	 	 

  
 Either party may at any time give
notice in writing to the other party of a change in its address for the purposes of this Paragraph 21. 
  
 (22) Modification. This Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in
writing signed by both parties hereto, or their respective successors or assignees. 
  
 (23) Severability. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any
reason any other or others of them may be invalid or unenforceable in whole or in part. 
  
 (24) Construction. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New Jersey. 
  
 (25) Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with
respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The
express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 
  
 (26) Indulgences, Not Waivers. Neither the failure nor any delay on
the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of
the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  

 16 

 (27) Gender. Words used herein regardless of the number and gender specifically used, shall be
deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
  
 (28) Titles Not to Affect Interpretation. The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof. 
  
 (29) Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as
against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the
signatures of all of the parties reflected hereon as the signatories. 
  
 (30) Initial Investment. An Affiliate of the Advisor has contributed to the Company $25,500 in exchange for 1,700 Equity Shares (the “Initial Investment”). The Advisor or its Affiliate may not sell these shares while this
Agreement is in effect, although the Advisor or its Affiliate may transfer such shares to the Advisor or another Affiliate. The restrictions included above shall not apply to any Equity Shares, other than the Equity Shares acquired through the
Initial Investment, acquired by the Advisor or its Affiliates. The Advisor or its Affiliate shall not vote any Equity Shares it now owns, or hereafter acquires, in any vote for the removal of Directors or any vote regarding the approval or
termination of any contract with the Advisor or any of its Affiliates. 
  

 17 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above
written. 
  

					
	 ORANGE HOSPITALITY, INC.

		
	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

	
	 ORANGE ADVISORS, LLC

		
	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

  

 18U.S. Home Systems Inc. 2004 Restricted Stock Plan

 Exhibit 10.1 
  
 U.S. HOME SYSTEMS, INC. 
 2004 RESTRICTED STOCK PLAN 
  
 The U.S. Home Systems, Inc. 2004 Restricted Stock Plan (hereinafter called the “Plan” as amended, from time to time) was adopted on May 24, 2004 by the board of directors of U.S. Home Systems, Inc., a Delaware corporation
(hereinafter called the “Company”). On July 15, 2004, the stockholders of the Company approved the Plan. 
  
 ARTICLE 1 
 PURPOSE 
  
 The purpose of the Plan is to attract, retain, and award the services of the
employees and directors of the Company and its Subsidiaries and to provide such persons with a proprietary interest in the Company through the granting of restricted stock that will: 
  
 (a) increase the interest of such persons in the Company’s welfare; 
  
 (b) furnish an incentive to such persons to continue their
services for the Company; and 
  
 (c) provide a
means through which the Company may attract able persons as employees. 
  
 ARTICLE 2 
 DEFINITIONS 
  
 For the purpose of the Plan, unless the context requires otherwise, the following terms shall have the meanings indicated: 
  
 2.1 “Board” means the board of directors of the Company.

  
 2.2 “Change of Control” means any of the following:
(i) any consolidation, merger or share exchange of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares of the Company’s Common Stock would be converted into cash, securities or other
property, other than a consolidation, merger or share exchange of the Company in which the holders of the Company’s Common Stock immediately prior to such transaction have the same proportionate ownership of Common Stock of the surviving
corporation immediately after such transaction; (ii) any sale, lease, exchange or other transfer (excluding transfer by way of pledge or hypothecation) in one transaction or a series of related transactions, of all or substantially all of the assets
of the Company; (iii) the stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company; (iv) the cessation of control (by virtue of their not constituting a majority of directors) of the Board by the
individuals (the “Continuing Directors”) who (A) at the date of this Plan were directors or (B) become directors after the date of this Plan and whose election or nomination for election by the Company’s stockholders, was approved by
a vote of at least two-thirds of the directors then in office who were directors at the date of this Plan or whose election or nomination for election was previously so approved; (v) the acquisition of beneficial ownership (within the meaning of
Rule 13d-3 under the 1934 Act) of an aggregate of 35% of the voting power of the Company’s outstanding voting securities by any person or group (as such term is used in Rule 13d-5 under the Exchange Act) who beneficially owned less 

 

 2004 RESTRICTED STOCK PLAN 

 than 20% of the voting power of the Company’s outstanding voting securities on the date of this Plan, or the
acquisition of beneficial ownership of an additional 5% of the voting power of the Company’s outstanding voting securities by any person or group who beneficially owned at least 20% of the voting power of the Company’s outstanding voting
securities on the date of this Plan, provided, however, that notwithstanding the foregoing, an acquisition shall not constitute a Change of Control hereunder if the acquiror is (A) a trustee or other fiduciary holding securities under an employee
benefit plan of the Company and acting in such capacity, (B) a Subsidiary of the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of voting securities
of the Company or (C) any other person whose acquisition of shares of voting securities is approved in advance by a majority of the Continuing Directors; or (vi) in a Title 11 bankruptcy proceeding, the appointment of a trustee or the conversion of
a case involving the Company to a case under Chapter 7. 
  
 2.3
“Code” means the Internal Revenue Code of 1986, as amended. 
  
 2.4 “Committee” means the committee appointed or designated by the Board to administer the Plan in accordance with Article 3 of this Plan. 
  
 2.5 “Common Stock” or “Shares” means the common stock of the Company, par value $ 0.001 per share, which the Company is currently
authorized to issue or may in the future be authorized to issue. 
  
 2.6 “Date of Grant” means the effective date on which a Restricted Stock Award is made to a Participant as set forth in the applicable Restricted Stock Agreement. 
  
 2.7 “Director” means a member of the Board. 
  
 2.8 “Disability” means the “disability” of a person as defined in a then effective long-term disability
plan maintained by the Company that covers such person, or if such a plan does not exist at any relevant time, “Disability” means that a person is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 90 days. 
  
 2.9 “Employee” means a common law employee, including an employee who is also an Officer or Director, (as defined
in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c) of the Code) of the Company or any Subsidiary. 
  
 2.10 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor statute. Reference in the Plan to any section of
the Exchange Act shall be deemed to include any amendments or successor provisions to such section and rules and regulations relating to such section. 
  
 2.11 “Fair Market Value” means, with respect to shares or other property, the fair market value of such shares or other property determined by
such methods or procedures as shall be established from time to time by the Committee. If the shares are listed on any established stock exchange or a national market system, unless otherwise determined by the Committee in good faith, the Fair
Market Value of shares shall mean the closing price per share on the date in question (or, if the shares were not traded on that day, the next preceding day that the shares were traded) on the principal exchange or market system on which the shares
are traded, as such prices are officially quoted on such exchange. 
  

 2004 RESTRICTED STOCK PLAN 

 2.12 “Grantee” means an Employee or Non-employee Director to whom a Restricted Stock Award has
been granted under the Plan. 
  
 2.13 “Officer” means a
person who is an “officer” of the Company or a Subsidiary within the meaning of Section 16 of the Exchange Act (whether or not the Company is subject to the requirements of the Exchange Act). 
  
 2.14 “Non-employee Director” means a member of the Board who is not
an Employee. 
  
 2.15 “Participant” shall mean an
Employee or Non-employee Director to whom a Restricted Stock Award is granted under this Plan. 
  
 2.16 “Regulation S-K” means Regulation S-K promulgated under the Securities Act, as it may be amended from time to time, and any successor to Regulation S-K. Reference in the Plan to any item of Regulation
S-K shall be deemed to include any amendments or successor provisions to such item. 
  
 2.17 “Restriction Period” means the period during which the Common Stock under a Restricted Stock Award is nontransferable and subject to “Forfeiture Restrictions” as defined in Section 6.4 of this
Plan and set forth in the Restricted Stock Agreement. 
  
 2.18
“Restricted Stock” means shares of Common Stock issued or transferred to a Participant pursuant to Section 6.1 of this Plan which are subject to restrictions or limitations set forth in this Plan and in the related Restricted Stock
Agreement. 
  
 2.19 “Restricted Stock Agreement” means
the written agreement evidencing the grant of a Restricted Stock Award executed by the Company and the Grantee, including any amendments thereto. Each Restricted Stock Agreement shall be subject to the terms and conditions of the Plan. 

 
 2.20 “Restricted Stock Award” means an award granted under
Section 6.1 of this Plan of shares of Common Stock issued to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions and other terms and
conditions as are established by the Board. 
  
 2.21
“Securities Act” means the Securities Act of 1933, as amended, and any successor statute. Reference in the Plan to any section of the Securities Act shall be deemed to include any amendments or successor provisions to such section and any
rules and regulations relating to such section. 
  
 2.22
“Subsidiary” means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing a majority of the total
combined voting power of all classes of stock in one of the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described in item (i) above owns a majority of the general partnership interest and a
majority of the limited partnership interests entitled to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners or members 
  

 2004 RESTRICTED STOCK PLAN 

 thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership listed in
item (ii) above. “Subsidiaries” means more than one of any such corporations, limited partnerships, partnerships or limited liability companies. 
  
 2.23 “Termination of Service” occurs when a Participant who is an Employee shall cease to serve as an Employee for any reason. 
  
 ARTICLE 3 
 ADMINISTRATION 
  
 The Plan shall be administered by the Committee. The Committee shall consist of not fewer than two persons. Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board.
Any vacancy occurring in the membership of the Committee may be filled by appointment by the Board. 
  
 While the Common Stock of the Company is publicly traded, the Committee shall be a committee of the Board the members of which exhibit the independence
necessary to comply with any applicable securities laws, the rules of any exchange upon which the Company’s securities are traded, or any other applicable law, as necessary. The Committee shall select one of its members to act as its Chairman.
A majority of the Committee shall constitute a quorum, and the act of a majority of the members of the Committee present at a meeting at which a quorum is present shall be the act of the Committee. 
  
 The Committee shall from time to time make recommendations to the Board
regarding persons to whom Restricted Stock Awards should be granted and shall set forth in the Restricted Stock Agreement of each person to whom the Board approves a Restricted Stock Award the Restriction Period, the Date of Grant, and such other
terms, provisions, and limitations as are approved by the Committee, but not inconsistent with the Plan. 
  
 The Committee, in its discretion, shall (i) interpret the Plan, (ii) prescribe, amend, and rescind any rules and regulations necessary or appropriate for
the administration of the Plan, and (iii) make such other determinations and take such other action as it deems necessary or advisable in the administration of the Plan. Any interpretation, determination, or other action made or taken by the
Committee shall be final, binding, and conclusive on all interested parties. 
  
 With respect to restrictions in the Plan that are based on the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed or quoted, or any other applicable law, rule or
restriction, to the extent that any such restrictions are no longer required by applicable law, the Committee shall have the sole discretion and authority to prescribe terms for Restricted Stock Awards that are not subject to such mandated
restrictions and/or to waive any such mandated restrictions with respect to outstanding Restricted Stock Awards. 
  
 Notwithstanding the foregoing, all rights and powers reserved to the Committee under this Article 3 may also be exercised by the Board. 
  

 2004 RESTRICTED STOCK PLAN 

 ARTICLE 4 
 ELIGIBILITY 
  
 Any
Employee or Non-employee Director whose judgment, initiative, and efforts contributed to the successful performance of the Company is eligible to participate in the Plan. Restricted Stock Awards may be granted by the Board at any time and from time
to time to new participants, or to then Participants, or to a greater or lesser number of Participants, and may include or exclude previous Participants, as the Board may determine. Except as required by this Plan, Restricted Stock Awards granted at
different times need not contain similar provisions. The Committee’s determinations under the Plan (including without limitation recommendations regarding which Employees or Non-employee Directors, if any, are to receive Restricted Stock
Awards, the form, amount and timing of such Restricted Stock Awards, the terms and provisions of such Awards and the agreements evidencing same) need not be uniform and may be made by it selectively among Employees and Non-employee Directors who
receive, or are eligible to receive, Restricted Stock Awards under the Plan. 
  
 ARTICLE 5 
 SHARES SUBJECT TO PLAN 
  
 5.1 Subject to adjustment as provided in Articles 9 and 10 hereof, the total number of Shares reserved for issuance in
connection with Awards under the Plan shall be 500,000. No Award may be granted if the number of Shares to which such Award relates, when added to the number of Shares previously issued under the Plan exceeds the number of Shares reserved under the
applicable provisions of the preceding sentence. If any Awards are forfeited, canceled, terminated, exchanged or surrendered, or such Award is settled in cash or otherwise terminates without a distribution of Shares to the Participant, any Shares
counted against the number of Shares reserved and available under the Plan with respect to such Award shall, to the extent of any such forfeiture, settlement, termination, cancellation, exchange or surrender, again be available for Awards under the
Plan. 
  
 5.2 If the Committee shall determine that any dividend
in Shares, recapitalization, Share split, reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase or share exchange, or other similar corporate transaction or event, affects the Shares such that an adjustment is
appropriate in order to prevent dilution or enlargement of the rights of any Employee or Non-employee Director under the Plan, then the Committee shall make such equitable changes or adjustments as it deems appropriate and, in such manner as it may
deem equitable, adjust any or all of (i) the number and kind of shares which may thereafter be issued under the Plan, and (ii) the number and kind of shares, other securities or other consideration issued or issuable in respect of outstanding
Awards. In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria and performance objectives, if any, included in, Awards in recognition of unusual or non-recurring events (including, without
limitation, events described in the preceding sentence) affecting the Company or any Subsidiary or affiliate or the financial statements of the Company or any Subsidiary or affiliate, or in response to changes in applicable laws, regulations, or
accounting principles. 
  
 5.3 Any Shares distributed pursuant to
an Award may consist, in whole or in part, of authorized and unissued Shares or treasury Shares including Shares acquired by purchase in the open market or in private transactions. 
  

 2004 RESTRICTED STOCK PLAN 

 ARTICLE 6 
 GRANT OF RESTRICTED STOCK AWARD 
  
 6.1 In General. The grant of a Restricted Stock Award shall be authorized by the Board and shall be evidenced by a Restricted Stock Agreement setting forth the Restricted Stock, the Restriction Period, the Date of Grant, and such
other terms, provisions, and limitations as are approved by the Committee, but not inconsistent with the Plan. The Board, upon its own action or in consultation with the Committee, may grant, but shall not be required to grant, a Restricted Stock
Award to any Employee or Non-employee Director. Nothing herein shall prohibit the Board, from time to time, from making discretionary Restricted Stock Awards to any Employee or Non-employee Director. The Company shall execute a Restricted Stock
Agreement with a Participant after the Board approves the issuance of a Restricted Stock Award. 
  
 Each Restricted Stock Agreement shall be in such form and shall contain such terms and conditions, as the Committee shall deem appropriate. The terms and
conditions of such Restricted Stock Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Agreements need not be identical, but each such Restricted Stock Agreement shall be subject to the terms and
conditions of this Article 6. 
  
 6.2 Issuance of Awards.
The Board may from time to time, pursuant to Section 6.1, grant Restricted Stock Awards to such Employees or Non-employee Directors as it sees fit in its sole and absolute discretion. 
  
 6.3 Forfeiture Restrictions. Shares of Common Stock that are the subject of a Restricted Stock Award shall be subject
to restrictions on disposition by the Grantee and to an obligation of the Grantee to forfeit and surrender the shares to the Company under certain circumstances (the “Forfeiture Restrictions”). The Forfeiture Restrictions shall be
determined by the Committee, in its sole discretion, and the Committee may provide that the Forfeiture Restrictions shall lapse on the passage of time or the occurrence of such other event or events determined to be appropriate by the Committee. The
Forfeiture Restrictions applicable to a particular Restricted Stock Award (which may differ from any other such Restricted Stock Award) shall be stated in the Restricted Stock Agreement. 
  
 6.4 Restricted Stock Awards. At the time any Restricted Stock Award is granted under the Plan, the Company and the
Grantee shall enter into a Restricted Stock Agreement setting forth each of the matters addressed in this Article 6 and such other matters as the Committee may determine to be appropriate. Shares of Common Stock awarded pursuant to a Restricted
Stock Award shall be represented by a stock certificate registered in the name of the Grantee of such Restricted Stock Award or by a book entry account with the Company’s transfer agent. The Grantee shall have the right to receive dividends
with respect to the shares of Common Stock subject to a Restricted Stock Award, to vote the shares of Common Stock subject thereto and to enjoy all other stockholder rights with respect to the shares of Common Stock subject thereto, except that,
unless provided otherwise in the Restricted Stock Agreement, (i) the Grantee shall not be entitled to delivery of the shares of Common Stock certificate until the Forfeiture Restrictions have expired, (ii) the Company or an escrow agent shall retain
custody of the shares of Common Stock (or such shares shall be held in a book entry account with the Company’s transfer agent) until the Forfeiture Restrictions have expired, (iii) the Grantee may not sell, transfer, pledge, exchange,
hypothecate or otherwise dispose of the shares of Common Stock until the Forfeiture Restrictions have expired, and 
  

 2004 RESTRICTED STOCK PLAN 

 (iv) a breach of the terms and conditions established by the Committee pursuant to the Restricted Stock Agreement shall
cause a forfeiture of the Restricted Stock Award. At the time of such Restricted Stock Award, the Committee may, in its sole discretion, prescribe additional terms, conditions or restrictions relating to the Restricted Stock Award, including rules
pertaining to the Grantee’s Termination of Service prior to expiration of the Forfeiture Restrictions. Such additional terms, conditions or restrictions shall also be set forth in the Restricted Stock Agreement made in connection with the
Restricted Stock Award. 
  
 6.5 Rights and Obligations of
Grantee. One or more stock certificates representing shares of Common Stock, free of Forfeiture Restrictions, shall be delivered to the Grantee promptly after, and only after, the Forfeiture Restrictions have expired and Grantee has satisfied
all applicable federal, state and local income and employment tax withholding requirements. Each Restricted Stock Agreement shall require that (i) the Grantee, by his or her acceptance of the Restricted Stock Award, shall irrevocably grant to the
Company a power of attorney to transfer any shares so forfeited to the Company and agrees to execute any documents requested by the Company in connection with such forfeiture and transfer, and (ii) such provisions regarding transfers of forfeited
shares of Common Stock shall be specifically performable by the Company in a court of equity or law. 
  
 6.6 Restriction Period. The Restriction Period for a Restricted Stock Award shall commence on the Date of Grant of the Restricted Stock Award and,
unless otherwise established by the Committee and stated in the Restricted Stock Agreement, shall expire upon satisfaction of the conditions set forth in the Restricted Stock Agreement pursuant to which the Forfeiture Restrictions will lapse. The
Committee may, in its sole discretion, accelerate the Restriction Period for all or a part of a Restricted Stock Award. 
  
 6.7 Securities Restrictions. The Committee may impose other conditions on any shares of Common Stock subject to a Restricted Stock Award as it may
deem advisable, including (i) restrictions under applicable state or federal securities laws, and (ii) the requirements of any stock exchange or national market system upon which shares of Common Stock are then listed or quoted. 
  
 6.8 Payment for Restricted Stock. The Committee shall determine the
amount and form of any payment for shares of Common Stock received pursuant to a Restricted Stock Award; provided, that in the absence of such a determination, the Grantee shall not be required to make any payment for shares of Common Stock received
pursuant to a Restricted Stock Award, except to the extent otherwise required by law. 
  
 6.9 Forfeiture of Restricted Stock. Subject to the provisions of the particular Restricted Stock Agreement, on Grantee’s Termination of Service during the Restriction Period, the shares of Common Stock
still subject to the Forfeiture Restrictions contained in the Restricted Stock Award shall be forfeited by the Grantee. Upon any forfeiture, all rights of the Grantee with respect to the forfeited shares of the Common Stock subject to the Restricted
Stock Award shall cease and terminate, without any further obligation on the part of the Company, except that if so provided in the Restricted Stock Agreement applicable to the Restricted Stock Award, the Company shall repurchase each of the shares
of Common Stock forfeited for the purchase price per share paid by the Grantee. The Committee will have discretion to determine the date of the Grantee’s Termination of Service. 
  

 2004 RESTRICTED STOCK PLAN 

 6.10 Lapse of Forfeiture Restrictions in Certain Events; Committee’s Discretion.
Notwithstanding the provisions of Section 6.9 or any other provision in the Plan to the contrary, the Committee may, on account of the Grantee’s Disability, death or otherwise, in its discretion and as of a date determined by the Committee,
fully vest any or all Common Stock awarded to the Grantee pursuant to a Restricted Stock Award, and upon such vesting, all Forfeiture Restrictions applicable to such Restricted Stock Award shall lapse or terminate. The Committee shall have
discretion to determine whether a Grantee’s Termination of Service was as a result of Disability or otherwise. Any action by the Committee pursuant to this Section 6.10 may vary among individual Grantees and may vary among the Restricted Stock
Awards held by any individual Grantee. 
  
 6.11 Withholding
Taxes. The Committee may establish such rules and procedures as it considers desirable in order to satisfy any obligation of the Company to withhold applicable federal, state and local income and employment taxes with respect to the lapse of
Forfeiture Restrictions or Code Section 83(b) election, applicable to Restricted Stock Awards. Prior to delivery of shares of Common Stock upon the lapse of Forfeitures Restrictions applicable to a Restricted Stock Award, the Grantee shall pay or
make adequate provision acceptable to the Committee for the satisfaction of all tax withholding obligations of the Company. 
  
 ARTICLE 7 
 AMENDMENT OR
DISCONTINUANCE 
  
 Subject to the limitations set forth in
this Article 7, the Board may at any time and from time to time, without the consent of the Participants, alter, amend, revise, suspend, or discontinue the Plan in whole or in part. Any such amendment shall, to the extent deemed necessary or
advisable by the Committee, be applicable to any outstanding Restricted Stock Awards theretofore granted under the Plan, notwithstanding any contrary provisions contained in any Restricted Stock Agreement. In the event of any such amendment to the
Plan, the holder of any Restricted Stock Awards outstanding under the Plan shall, upon request of the Committee and as a condition to the exercisability thereof, execute a conforming amendment in the form prescribed by the Committee to any
Restricted Stock Agreement relating thereto. Notwithstanding anything contained in this Plan to the contrary, unless required by law, no action contemplated or permitted by this Article 7 shall adversely affect any rights of Participants or
obligations of the Company to Participants with respect to any Restricted Stock Awards theretofore granted under the Plan without the consent of the affected Participant. 
  
 ARTICLE 8 
 TERM 
  
 The Plan shall be effective as of May 24,
2004 upon approval of the shareholders. Unless sooner terminated by action of the Board, the Plan will terminate on May 24, 2014, but Restricted Stock Awards granted before that date will continue to be effective in accordance with the terms and
conditions of the respective Restricted Stock Agreement. 
  
 ARTICLE 9 
 CAPITAL ADJUSTMENTS 
  
 If at any time while the Plan is in effect, or Restricted Stock Awards are outstanding, there shall be any increase or
decrease in the number of issued and outstanding shares of Common Stock resulting from (1) the declaration or payment of a stock dividend, (2) any recapitalization resulting in 
  

 2004 RESTRICTED STOCK PLAN 

 a stock split-up, combination, or exchange of shares of Common Stock, or (3) other increase or decrease in such shares of
Common Stock effected without receipt of consideration by the Company, then and in such event: 
  
 (a) An appropriate adjustment shall be made in the maximum number of shares of Common Stock then subject to being awarded under the Plan
and in the maximum number of shares of Common Stock that may be awarded to a Participant to the end that the same proportion of the Company’s issued and outstanding shares of Common Stock shall continue to be subject to being so awarded.

  
 (b) Appropriate adjustments shall be made in
the number of outstanding shares of Restricted Stock with respect to which Forfeiture Restrictions have not yet lapsed prior to any such change. 
  
 Except as otherwise expressly provided herein, the issuance by the Company of shares of its capital stock of any class, or securities convertible into
shares of capital stock of any class, either in connection with direct sale or upon the exercise of rights or warrants to subscribe therefore, or upon conversion of shares or obligations of the Company convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made with respect to the number of outstanding shares of Restricted Stock. 
  
 Upon the occurrence of each event requiring an adjustment with respect to any Restricted Stock Award, the Company shall communicate by reasonable means
intended to reach each affected Participant its computation of such adjustment which shall be conclusive and shall be binding upon each such Participant. 
  
 ARTICLE 10 
 RECAPITALIZATION, MERGER
AND CONSOLIDATION; CHANGE IN 
 CONTROL 
  
 10.1 The existence of this Plan and Restricted Stock Awards granted hereunder 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 and its business, or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or liquidation of the Company, or 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. 
  
 10.2 Subject to any required action by the stockholders, if the Company shall be the surviving or resulting corporation in any merger, consolidation or
share exchange, any Restricted Stock Awards granted hereunder shall pertain to and apply to the securities or rights (including cash, property, or assets) to which a holder of the number of shares of Common Stock subject to the Restricted Stock
Awards would have been entitled. 
  
 10.3 In the event of any
merger, consolidation or share exchange pursuant to which the Company is not the surviving or resulting corporation, there shall be substituted for each share of Common Stock subject to unvested Restricted Stock Awards, that number of shares of each
class of stock or other securities or that amount of cash, property, or assets of the surviving, resulting or 
  

 2004 RESTRICTED STOCK PLAN 

 consolidated company which were distributed or distributable to the stockholders of the Company in respect to each share
of Common Stock held by them, such outstanding Restricted Stock Awards to be thereafter exercisable for such stock, securities, cash, or property in accordance with their terms. Notwithstanding the foregoing, however, all such Restricted Stock
Awards may be canceled by the Company as of the effective date of any such reorganization, merger, consolidation, share exchange or any dissolution or liquidation of the Company by giving notice to each holder thereof or his personal representative
of its intention to do so and by permitting the purchase during the thirty (30) day period next preceding such effective date of all of the shares of Common Stock subject to such outstanding Restricted Stock Awards. 
  
 10.4 In the event of a Change of Control, then, notwithstanding any other
provision in this Plan to the contrary, all Restricted Stock Awards outstanding shall thereupon automatically be vested. The determination of the Committee that any of the foregoing conditions has been met shall be binding and conclusive on all
parties. 
  
 ARTICLE 11 
 LIQUIDATION OR DISSOLUTION 
  
 In case the Company shall, at any time while any Restricted Stock Award under this Plan shall be in force and remain unexpired, (i) sell all or
substantially all of its property, or (ii) dissolve, liquidate, or wind up its affairs, then each Participant shall be thereafter entitled to receive, in lieu of each share of Common Stock of the Company in which the Participant is vested, pursuant
to the terms of the Participant’s Restricted Stock Agreement, as of the date the Company sells all or substantially all of its property, or dissolves, liquidates or winds up its affairs, the same kind and amount of any securities or assets as
may be issuable, distributable, or payable upon any such sale, dissolution, liquidation, or winding up with respect to each share of Common Stock of the Company. Notwithstanding the foregoing, the Board may, in its sole and absolute discretion,
accelerate the vesting of any Participant’s Restricted Stock Award in connection with any sale, dissolution, liquidation, or winding up contemplated in this Article 11. 
  
 ARTICLE 12 
 MISCELLANEOUS PROVISIONS 
  
 12.1 Investment
Intent. The Company may require that there be presented to and filed with it by any Participant under the Plan, such evidence as it may deem necessary to establish that the shares of Common Stock to be received from a Restricted Stock Award are
being acquired for investment and not with a view to their distribution. 
  
 12.2 No Right to Continued Employment. Neither the Plan nor any Restricted Stock Award granted under the Plan shall confer upon any Participant any right with respect to continuance of employment by the Company
or any Subsidiary. 
  
 12.3 Indemnification of Board and
Committee. No member of the Board or the Committee, nor any Officer or Employee acting on behalf of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect
to the Plan, and all members of the Board or the Committee and each and any Officer or Employee acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action,
determination, or interpretation. 
  

 2004 RESTRICTED STOCK PLAN 

 12.4 Effect of the Plan. Neither the adoption of this Plan nor any action of the Board or the
Committee shall be deemed to give any person any right to be granted a Restricted Stock Award or any other rights except as may be evidenced by a Restricted Stock Agreement, or any amendment thereto, duly authorized by the Committee and executed on
behalf of the Company, and then only to the extent and upon the terms and conditions expressly set forth therein. 
  
 12.5 Severability And Reformation. The Company intends all provisions of the Plan to be enforced to the fullest extent permitted by law.
Accordingly, should a court of competent jurisdiction determine that the scope of any provision of the Plan is too broad to be enforced as written, the court should reform the provision to such narrower scope as it determines to be enforceable. If,
however, any provision of the Plan is held to be wholly illegal, invalid, or unenforceable under present or future law, such provision shall be fully severable and severed, and the Plan shall be construed and enforced as if such illegal, invalid, or
unenforceable provision were never a part hereof, and the remaining provisions of the Plan shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance. 
  
 12.6 Governing Law. The Plan shall be construed and interpreted in
accordance with the laws of the State of Texas. 
  
 12.7
Compliance With Other Laws and Regulations. Notwithstanding anything contained herein to the contrary, the Company shall not be required to sell or issue shares of Common Stock under any Restricted Stock Award if the issuance thereof would
constitute a violation by the Participant or the Company of any provisions of any law or regulation of any governmental authority or any national securities exchange or inter-dealer quotation system or other forum in which shares of Common Stock are
quoted or traded (including without limitation Section 16 of the Exchange Act); and, as a condition of any sale or issuance of shares of Common Stock under a Restricted Stock Award, the Committee may require such agreements or undertakings, if any,
as the Committee may deem necessary or advisable to assure compliance with any such law or regulation. The Plan, the grant and exercise of Restricted Stock Awards hereunder, and the obligation of the Company to sell and deliver shares of Common
Stock, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. 
  
 12.8 Tax Requirements. The Company shall have the right to deduct from all amounts hereunder paid in cash or other
form, any Federal, state, or local taxes required by law to be withheld with respect to such payments. The Participant receiving shares of Common Stock issued under the Plan shall be required to pay the Company the amount of any taxes which the
Company is required to withhold with respect to such shares of Common Stock. Such payments shall be required to be made prior to the delivery of any certificate representing such shares of Common Stock. Such payment may be made in cash, by check, or
through the delivery of shares of Common Stock owned by the Participant, which shares have an aggregate Fair Market Value equal to the required minimum withholding payment, or any combination thereof. 
  

 2004 RESTRICTED STOCK PLAN 

 12.9 Legend. Each certificate representing shares of Restricted Stock issued to a Participant
shall bear the following legend, or a similar legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such legend shall be surrendered upon demand by the Company and so endorsed):

  
 On the face of the certificate: 
  
 “Transfer of this stock is restricted in accordance with conditions
printed on the reverse of this certificate.” 
  
 On the
reverse: 
  
 “The shares of stock evidenced by this
certificate are subject to and transferable only in accordance with that certain U.S. Home Systems, Inc. 2004 Restricted Stock Plan, a copy of which is on file at the principal office of the Company in Lewisville, Texas. No transfer or pledge of the
shares evidenced hereby may be made except in accordance with and subject to the provisions of said Plan. By acceptance of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan.”

  
 The following legend shall be inserted on a certificate
evidencing Common Stock issued under the Plan if the shares were not issued in a transaction registered under the applicable federal and state securities laws: 
  

“Shares of stock represented by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution,
have been issued pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered for sale, sold or transferred other than pursuant to effective registration under such laws, or in
transactions otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon an opinion of counsel satisfactory to the Company.” 
  
 A copy of this Plan shall be kept on file in the principal office of the
Company in Lewisville, Texas. 
  

 2004 RESTRICTED STOCK PLAN

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