Document:

Exhibit 10.4

 

INTER-AMERICAN MANAGEMENT LLC

SEVERANCE PLAN AND SUMMARY PLAN DESCRIPTION

 

1.             Purpose
and Effective Date. Inter-American Management LLC, a Delaware limited liability company (the “Company”)
has adopted this Severance Plan (this “Plan”) to provide for the potential payment of severance benefits
to Eligible Individuals (as defined below) in the event of certain terminations of employment as described herein. The Plan was
approved by the Board of Directors of the Company (the “Board”) to be effective as of July 9, 2020 (the
 “Effective Date”).

 

2.             ERISA
and Tax Compliance. The Plan is intended to be a “severance pay arrangement” within the meaning of Section
3(2)(B)(i) of ERISA that is excepted from the definitions of “employee pension benefit plan” and “pension plan”
set forth under Section 3(2) of ERISA, and is intended to meet the descriptive requirements of a plan constituting a “severance
pay plan” within the meaning of regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations
 §2510.3-2(b). The Plan is not intended to satisfy the qualification requirements of Code Section 401, but is intended to
comply with the requirements of Code Section 409A and the Treasury regulations and guidance issued thereunder. This Plan document
also constitutes a summary plan description with respect to the Plan. This Plan is a welfare program under the Company’s
health and welfare plan.

 

3.             Definitions. For purposes of this Plan, the terms listed below shall have the meanings specified herein:

 

(a)               
“Administrator” means the Board or a committee appointed by the Board to administer this Plan.

 

(b)              
“Affiliate” means any person that directly or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, the Company and any predecessor to any such entity; provided ̧ however,
that a natural person shall not be considered an Affiliate.

 

(c)              
“Base Salary” means the amount an Eligible Individual is entitled to receive as regular hourly
wages (considering regularly scheduled workweeks, and excluding any overtime or premium pay) or base salary on an annualized basis,
calculated as of immediately prior to the Termination Date or, if greater, before giving effect to any reduction not consented
to by the Eligible Individual.

 

(d)              
“Business” shall mean, with respect to an Eligible Individual, the business and operations that
are the same or similar to those performed by the Company and any other member of the Company Group for which such Eligible Individual
provides services or about which such Eligible Individual obtains Confidential Information during such Eligible Individual’s
employment with any member of the Company Group, which business and operations include the acquisition, development, management,
operation, and disposal of licensed healthcare facilities and medical office buildings.

 

    

     

    

 

(e)              
 “Business Opportunity” shall mean, with respect to an Eligible Individual, any commercial, investment
or other business opportunity relating to the Business (as such term is defined in relation to such Eligible Individual).

 

(f)               
“Cause” means one or more of the following events: (i) an Eligible Individual’s material
breach of this Plan or of any other written agreement between such Eligible Individual and one or more members of the Company Group,
including such Eligible Individual’s breach of any material representation, warranty or covenant made under any such agreement;
(ii) an Eligible Individual’s material breach of any policy or code of conduct established by a member of the Company Group
and applicable to such Eligible Individual; (iii) an Eligible Individual’s violation of any law applicable to the workplace
(including any law regarding anti-harassment, anti-discrimination, or anti-retaliation); (iv) an Eligible Individual’s fraud,
theft, dishonesty, gross negligence, willful misconduct, embezzlement, or breach of fiduciary duty related to any member of the
Company Group or the performance of such Eligible Individual’s duties hereunder; (v) the conviction or indictment of an Eligible
Individual for, or plea of guilty or nolo contendere by such Eligible Individual to, any felony (or state law equivalent) or any
crime involving moral turpitude; (vi) an Eligible Individual’s willful failure or refusal, other than due to Disability,
to perform such Eligible Individual’s obligations to the Company or a member of the Company Group or to follow any lawful
directive from the Company or a member of the Company Group, as determined by the Administrator; or (vii) notwithstanding Section
3(f)(i), an Eligible Individual’s violation of any of the covenants set forth in Section 9; provided, however,
that if an Eligible Individual’s actions or omissions as set forth in Section 3(f)(i), Section 3(f)(vi), or
Section 3(f)(vii) are of such a nature that the Administrator determines that they are curable by such Eligible Individual,
such actions or omissions must remain uncured thirty (30) days after the Administrator first provided such Eligible Individual
written notice of the obligation to cure such actions or omissions.

 

(g)              
“Change in Control” means and includes each of the following:

 

(i)                
the acquisition, either directly or indirectly, by any individual, entity or group (within the meaning of Sections 13(d)
and 14(d)(2) of the Exchange Act of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act), of more than
50% of either (A) the then outstanding shares of Common Stock, taking into account as outstanding for this purpose such shares
of Common Stock issuable upon the exercise of options or warrants, the conversion of convertible shares or debt, and the exercise
of any similar right to acquire such Common Stock (the “Outstanding Company Common Stock”) or (B) the
combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions
shall not constitute a Change in Control (1) any acquisition by the Company or any of its subsidiaries, (2) any acquisition by
a trustee or other fiduciary holding the Company’s securities under an employee benefit plan sponsored or maintained by the
Company or any of its Affiliates, (3) any acquisition by an underwriter, initial purchaser or placement agent temporarily holding
the Company’s securities pursuant to an offering of such securities or (4) any acquisition by an entity owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of the then Outstanding
Company Common Stock.

 

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(ii)               
 the individuals who constitute Incumbent Directors at the beginning of any two (2)-consecutive-year period, together with
any new Incumbent Directors who become members of the Board during such two (2)-year period, cease to be a majority of the Board
at the end of such two (2)-year period.

 

(iii)               the
consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving
the Company that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities
in the transaction (a “Business Combination”), in each case, unless following such Business Combination:

 

(A)            
the individuals and entities who were the beneficial owners of the Outstanding Company Voting Securities immediately prior
to such Business Combination, beneficially own, directly or indirectly, more than 50% of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of members of the board of directors (or the analogous
governing body) of the entity resulting from such Business Combination (the “Successor Entity”) (or,
if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting securities
to elect a majority of the members of the board of directors (or the analogous governing body) of the Successor Entity (the “Parent
Company”));

 

(B)             
 no Person beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, more than
50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of members
of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Successor
Entity); and

 

(C)             
 at least a majority of the members of the board of directors (or the analogous governing body) of the Parent Company (or,
if there is no Parent Company, the Successor Entity) following the consummation of the Business Combination were Incumbent Directors
at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination.

 

(iv)            
 The direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries,
taken as a whole, to any Person that is not a subsidiary of the Company.

 

(h)               “Change
in Control Period” means: (i) with respect to Level One Participants, the period beginning on the date that is
six (6) months preceding the date that a Change in Control occurs and ending on the date that is twelve (12) months following
the date that a Change in Control occurs; and (ii) with respect to Level Two Participants, the period beginning on the date
that a Change in Control occurs and ending on the date that is twelve (12) months following the date that a Change in Control
occurs.

 

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(i)                
“CIC Termination” means an Involuntary Termination that occurs during the Change in Control Period.

 

(j)                
“Code” means the Internal Revenue Code of 1986, as amended.

 

(k)              
“Common Stock” means the common stock of the Company, par value $0.001 per share.

 

(l)                “Company
Group” means Global Medical REIT Inc., a Maryland corporation, and its direct and indirect subsidiaries (including
the Company).

 

(m)            
“Confidential Information” means all trade secrets, non-public information, designs, ideas, concepts,
improvements, product developments, discoveries and inventions, whether patentable or not, that are conceived, made, developed
or acquired by or disclosed to an Eligible Individual, individually or in conjunction with others, during the period that he or
she is employed or engaged by the Company or any other member of the Company Group (whether during business hours or otherwise
and whether on the Company’s premises or otherwise) that relate to any member of the Company Group’s businesses or
properties, products or services (including all such information relating to corporate opportunities, operations, future plans,
methods of doing business, business plans, strategies for developing business and market share, research, financial and sales data,
pricing terms, evaluations, opinions, interpretations, acquisition prospects, the identity of customers or acquisition targets
or their requirements, the identity of key contacts within customers’ organizations or within the organization of acquisition
prospects, or marketing and merchandising techniques, prospective names and marks). For purposes of this Plan, Confidential Information
shall not include any information that (i) is or becomes generally available to the public other than as a result of a disclosure
or wrongful act of such Eligible Individual or any of his or her agents; (ii) was available to such Eligible Individual on a non-confidential
basis before its disclosure by a member of the Company Group; or (iii) becomes available to such Eligible Individual on a non-confidential
basis from a source other than a member of the Company Group; provided, however, that such source is not bound by
a confidentiality agreement with, or other obligation with respect to confidentiality to, a member of the Company Group.

 

(n)              
“Death/Disability Termination” means the termination of an Eligible Individual’s employment
due to death or Disability.

 

(o)              
“Disability” means a determination by the Administrator that an Eligible Individual is unable
to perform the essential functions of the Eligible Individual’s position (after accounting for reasonable accommodation,
if applicable and required by applicable law), due to physical or mental impairment that continues, or can reasonably be expected
to continue, for a period in excess of one hundred-twenty (120) consecutive days or one hundred-eighty (180) days, whether or not
consecutive (or for any longer period as may be required by applicable law), in any twelve (12)-month period.

 

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(p)              
 “Eligible Individual” means an employee of the Company eligible to receive the benefits described
in this Plan, as designated in writing by the Administrator; provided, however, that (i) any individual who has a written
employment or severance agreement with the Company that provides for potential severance benefits (other than any benefits pursuant
to this Plan) shall not be an Eligible Individual under this Plan; and (ii) in order to be an Eligible Individual, such employee
must sign and return to the Company, in the time designated by the Administrator, a Participation Agreement.

 

(q)              
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

(r)               
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(s)               
“Incumbent Directors” means the individuals elected to the Board (either by a vote or by approval
of the proxy statement of the Company in which such person is named as a nominee for director without objection to such nomination)
and whose election or nomination for election to the Board was approved by a vote of at least two-thirds of the directors serving
on the Board at the time of the election or nomination, as applicable, shall be an Incumbent Director. No individual designated
to serve as a director by a person who shall have entered into an agreement with the Company to effect a transaction described
in Section 3(g)(i) or Section 3(g)(iii) and no individual initially elected or nominated as a director of the Company
as a result of an actual or threatened election contest with respect to directors shall be an Incumbent Director.

 

(t)                “Involuntary
Termination” means termination of an Eligible Individual’s employment by the Company other than due to death,
Disability or for Cause.

 

(u)              
“Level One Participant” means an Eligible Individual designated by the Administrator, in writing,
as a Level One Participant, in the notice or other agreement provided to such Eligible Individual in which he or she is designated
as an Eligible Individual.

 

(v)              
“Level Two Participant” means an Eligible Individual designated by the Administrator, in writing,
as a Level Two Participant, in the notice or other agreement provided to such Eligible Individual in which he or she is designated
as an Eligible Individual.

 

(w)               “LTIP”
means the Global Medical REIT Inc. 2016 Equity Incentive Plan, as amended
from time to time, together with any successor equity incentive plans adopted by the Company.

 

(x)               
“Market Area” shall mean: (A) the United States of America; and (B) and any other geographic area
or market where or with respect to which the Company or any other member of the Company Group conducts or has specific plans to
conduct the Business on or at any time during the twelve (12) month period prior to the Termination Date.

 

(y)              
 “Participation Agreement” means the participation agreement delivered to an Eligible Individual
by the Administrator prior to his or her becoming a participant in this Plan evidencing such Eligible Individual’s agreement
to participate in this Plan and to comply with the terms, conditions and restrictions within the Plan.

 

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(z)               
 “Person” means any firm, corporation, partnership, or other entity and also includes any individual,
firm corporation, partnership, or other entity as defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act. Notwithstanding
the preceding sentence, the term “Person” does not include (i) the Company or any of its subsidiaries, (ii) any trustee
or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) any underwriter
temporarily holding securities pursuant to an offering of such securities or (iv) any corporation owned, directly or indirectly,
by the shareholders of the Company in substantially the same proportions as their ownership of the Common Stock.

 

(aa)             
“Prohibited Period” shall mean:

 

(A)            
with respect to Level One Participants, the period during which the Eligible Individual is employed by any member of the
Company Group and continuing for a period of twelve (12) months following the date that the Eligible Individual is no longer employed
by any member of the Company Group; and

 

(B)             
with respect to Level Two Participants, the period during which the Eligible Individual is employed by any member of the
Company Group and continuing for a period of six (6) months following the date that the Eligible Individual is no longer employed
by any member of the Company Group.

 

(bb)            
 “Pro-Rata Bonus” means an amount equal to the annual cash-based performance bonus that an Eligible
Individual would have actually been entitled to receive based on actual performance for the calendar year in which the Termination
Date occurs, multiplied by a fraction, the numerator of which is the number of days the Eligible Individual was employed by the
Company in such calendar year, and the denominator of which is the total number of days during such calendar year.

 

(cc)             
“Target Bonus” means the target annual cash-based performance bonus (as determined by the Company
in its discretion with respect to each calendar year and communicated in writing to the Eligible Individual) that an Eligible Individual
would have been eligible to receive for the calendar year in which the Termination Date occurs.

 

(dd)            
“Termination Date” means the date that an Eligible Individual has a “separation from service”
as defined under Code Section 409A and applicable guidance thereunder.

 

4.             Eligibility; Plan Benefits. The Eligible Individuals designated by the Administrator are eligible to receive
the benefits described below:

 

(a)              
Death/Disability Termination. In the event of a Death/Disability Termination, the Eligible Individual (or the Eligible
Individual’s estate) shall, subject to compliance with Sections 5 and 9, be entitled to receive the following
benefits:

 

(i)                 in
the case of a Level One Participant only, a Pro-Rata Bonus for the calendar year in which the Termination Date occurs,
payable as soon as administratively feasible following preparation of the Company’s unaudited financial statements for
such calendar year provided that such payment date is not less than sixty (60) days following the Termination Date,
but in no event later than March 15 of the calendar year following the calendar year to which such Pro-Rata Bonus
relates;

 

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(ii)               
in the case of a Level One Participant only, payment of the COBRA Subsidy in accordance with Section 4(d) for a period
of twelve (12) months following the Termination Date;

 

(iii)             
all unvested equity-based awards granted under the LTIP that are held by the Eligible Individual as of immediately prior
to the Termination Date shall, effective as of the date that is sixty (60) days following the Termination Date, be eligible to
vest in accordance with the terms and conditions provided in the applicable award agreements governing such awards.

 

(b)              
Involuntary Termination. In the event of an Involuntary Termination, the Eligible Individual shall, subject to compliance
with Sections 5 and 9, be entitled to receive the following benefits:

 

(i)                
A payment (a “Severance Payment”) in an amount equal to:

 

(A)            
in the case of a Level One Participant, twelve (12) months of Base Salary; or

 

(B)            
in the case of a Level Two Participant, one month of Base Salary for each full year of service recognized by the Company
through the Termination Date, up to a maximum of six (6) months of Base Salary.

 

(ii)               
Payment of a COBRA Subsidy in accordance with Section 4(d) for a period of:

 

(A)             
in the case of a Level One Participant, twelve (12) months following the Termination Date; or

 

(B)             
in the case of a Level Two Participant, a number of months following the Termination Date (up to a maximum of six (6) months)
equal to the number of months of Base Salary payable pursuant to Section 4(b)(i)(B).

 

(iii)              
all unvested equity-based awards granted under the LTIP that are held by the Eligible Individual as of immediately prior
to the Termination Date shall, effective as of the date that is sixty (60) days following the Termination Date, be eligible to
vest in accordance with the terms and conditions provided in the applicable award agreements governing such awards.

 

(c)              
CIC Termination. In the event of a CIC Termination, the Eligible Individual shall, subject to compliance with Sections
5 and 9, be entitled to receive the following benefits (which are in lieu of the benefits described in Section 4(b)):

 

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(i)                
 A payment (a “CIC Severance Payment”) in an amount (subject to Section 4(e)(iii)) equal
to:

 

(A)            
in the case of a Level One Participant, two times the sum of (x) twelve (12) months of Base Salary plus (y) the Target Bonus;
or

 

(B)             
in the case of a Level Two Participant, two (2) months of Base Salary for each full year of service recognized by the Company
through the Termination Date, up to a maximum of twelve (12) months of Base Salary.

 

(ii)               
Payment of a COBRA Subsidy in accordance with Section 4(d) for a period of:

 

(A)             
in the case of a Level One Participant, eighteen (18) months following the Termination Date; or

 

(B)             
in the case of a Level Two Participant, a number of months following the Termination Date (up to a maximum of twelve (12)
months) equal to the number of months of Base Salary payable pursuant to Section 4(c)(i)(B).

 

(iii)             
all unvested equity-based awards subject to time-based vesting granted under the LTIP that are held by the Eligible Individual
as of immediately prior to the Termination Date shall, effective as of the date that is sixty (60) days following the Termination
Date, immediately vest in full and be eligible for settlement in accordance with the terms and conditions provided in the applicable
award agreements governing such awards.

 

(iv)             
all unvested equity-based awards subject to performance-based vesting granted under the LTIP that are held by the Eligible
Individual as of immediately prior to the Termination Date shall, effective as of the date that is sixty (60) days following the
Termination Date, be eligible to vest in accordance with the terms and conditions provided in the applicable award agreements governing
such awards.

 

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(d)               COBRA
Reimbursement. If the Company’s group health plans are subject to the continuation coverage requirements under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and an Eligible Individual elects
to continue coverage for such Eligible Individual and such Eligible Individual’s spouse and eligible dependents, if
any, under COBRA and such Eligible Individual satisfies the conditions to receive COBRA Subsidy pursuant to Section
4(a)(ii), Section 4(b)(ii) or Section 4(c)(ii), the Company shall promptly reimburse such Eligible
Individual on a monthly basis for the difference between the amount such Eligible Individual pays to effect and continue such
coverage and the employee contribution amount that similarly situated employees of the Company pay for the same or similar
coverage under such group health plans (the “COBRA Subsidy”). Each payment of the COBRA Subsidy
shall be paid to such Eligible Individual on the Company’s first regularly scheduled pay date in the calendar month
immediately following the calendar month in which such Eligible Individual submits to the Company documentation of the
applicable premium payment having been paid by such Eligible Individual, which documentation shall be submitted by such
Eligible Individual to the Company within thirty (30) days following the date on which the applicable premium payment is
paid. Such Eligible Individual shall be eligible to receive such reimbursement payments until the earliest of: (1) the end of
the applicable time period specified in Section 4(a)(ii), Section 4(b)(ii) or Section 4(c)(ii) (the
 “COBRA Expiration Date”); (2) the date such Eligible Individual is no longer eligible to receive
COBRA continuation coverage; and (3) the date on which such Eligible Individual becomes eligible to receive coverage under a
group health plan sponsored by another employer (and any such eligibility shall be promptly reported to the Company by such
Eligible Individual); provided, however, that the election of COBRA continuation coverage and the payment of any
premiums due with respect to such COBRA continuation coverage shall remain such Eligible Individual’s sole
responsibility, and the Company shall not assume any obligation for payment of any such premiums relating to such COBRA
continuation coverage. Notwithstanding the foregoing, if the Company’s group health plans are subject to the
continuation coverage requirements under COBRA and the provision of the benefits described in this Section 4(d) cannot
be provided in the manner described above without penalty, tax or other adverse impact on the Company or any other member of
the Company Group, then the Company and such Eligible Individual shall negotiate in good faith to determine an alternative
manner in which the Company may provide substantially equivalent benefits to such Eligible Individual without such adverse
impact on the Company or such other member of the Company Group. Further notwithstanding the foregoing, if the
Company’s group health plans are not subject to the continuation coverage requirements under COBRA but an Eligible
Individual satisfies the conditions to receive COBRA Subsidy pursuant to Section 4(c)(ii), then the Company shall pay
such Eligible Individual an amount, less applicable taxes, deductions and withholdings, equal to the COBRA Subsidy that would
have been paid to such Eligible Individual if the Company’s group health plans were subject to the continuation
coverage requirements under COBRA (the “Replacement Payment”). Each Replacement Payment shall be
paid to such Eligible Individual on the Company’s first regularly scheduled pay date in the calendar month immediately
following the Termination Date. Such Eligible Individual shall be eligible to receive such Replacement Payment until the
earliest of (x) the end of the applicable time period specified in Section 4(c)(ii) or (y) the date on which such
Eligible Individual becomes eligible to receive coverage under a group health plan sponsored by another employer (and any
such eligibility shall be promptly reported to the Company by such Eligible Individual).

 

(e)               
Payment of Severance Payment or CIC Severance Payment.

 

(i)                 With
respect to any Eligible Individual who is a Level One Participant, any Severance Payment will be divided into substantially equal
installments paid over the twelve (12)-month period beginning on the Company’s first regularly scheduled pay date that is
on or after the date that is sixty (60) days after the Termination Date; provided, however, that to the extent,
if any, that the aggregate amount of the installments of the Severance Payment that would otherwise be paid pursuant to the preceding
provisions of this Section 4(e)(i) after March 15 of the calendar year following the calendar year in which the Termination
Date occurs (the “Applicable March 15”) exceeds the maximum exemption amount under Treasury Regulation
Section 1.409A-1(b)(9)(iii)(A), then such excess shall be paid to the Eligible Individual in a lump sum on the Applicable March
15 (or the first business day preceding the Applicable March 15 if the Applicable March 15 is not a business day) and the installments
of the Severance Payment payable after the Applicable March 15 shall be reduced by such excess (beginning with the installment
first payable after the Applicable March 15 and continuing with the next succeeding installment until the aggregate reduction
equals such excess).

 

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(ii)               
With respect to any Eligible Individual who is a Level Two Participant, any Severance Payment will paid in a lump sum on
the Company’s first regularly scheduled pay date that is on or after the date that is sixty (60) days after the Termination
Date.

 

(iii)             
With respect to all Eligible Individuals, any CIC Severance Payment will paid in a lump sum on the Company’s first
regularly scheduled pay date that is on or after the date that is sixty (60) days after the later to occur of the Termination Date
and the date of the Change in Control; provided, however, that with respect to any Eligible Individual who is a Level
One Participant and whose Termination Date occurred during the six (6)-month period preceding the date that a Change in Control
occurs, the CIC Severance Payment shall be reduced by an amount equal to any installments of a Severance Payment that such Eligible
Individual has received prior to the date on with the CIC Severance Payment is paid and, for the avoidance of doubt, such Individual
shall not be eligible to receive any further installments of the Severance Payment following the payment of a CIC Severance Payment.

 

(f)               
Recognition of Prior Service. For purposes of this Plan (including, without limitation, this Section 4), the
Company shall recognize all service of the Eligible Individuals with the Company prior to the Effective Date.

 

5.             Release.
As a condition to the payment by the Company of any of the amounts and benefits due under Section 4 above, the Eligible
Individual shall: (a) execute on or before the Release Expiration Date (as defined below), and not revoke within any time provided
by the Company to do so, a release of all claims in a form acceptable to the Company (the “Release”),
which Release shall release each member of the Company Group and their respective Affiliates, and the foregoing entities’
respective shareholders, members, partners, officers, managers, directors, fiduciaries, employees, representatives, agents and
benefit plans (and fiduciaries of such plans) from any and all claims, including any and all causes of action arising out of the
Eligible Individual’s employment with the Company and any other member of the Company Group or the termination of such employment,
but excluding all claims to severance payments or benefits that the Eligible Individual may have under this Plan ; and (b) abide
by the terms of Section 9. As used herein, the “Release Expiration Date” is that date that is
twenty-one (21) days following the date upon which the Company delivers the Release to an Eligible Individual (which shall occur
no later than seven (7) days after the Termination Date) or, in the event that such termination of employment is “in connection
with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in
Employment Act of 1967), the date that is forty-five (45) days following such delivery date.

 

6.             No Mitigation. An Eligible Individual shall not be required to mitigate the amount of any payment or benefit
provided for in this Plan by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for
in this Plan be reduced by any compensation or benefit earned by the Eligible Individual as the result of employment by another
employer or by retirement benefits. Subject to the foregoing, the benefits under this Plan are in addition to any other benefits
to which an Eligible Individual is otherwise entitled.

 

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7.             Terminations for Cause or Voluntary Resignation. If an Eligible Individual’s employment is terminated
by the Company for Cause or by the Eligible Individual due to a voluntary resignation, the Eligible Individual shall not be entitled
to any severance payments or benefits under this Plan.

 

8.             Certain Excise Taxes. Notwithstanding anything to the contrary in this Plan, if an Eligible Individual is
a “disqualified individual” (as defined in Section 280G(c) of the Code), and the payments and benefits provided for
in this Plan, together with any other payments and benefits which such Eligible Individual has the right to receive from the Company
or any of its Affiliates, would, either separately or in the aggregate, constitute a “parachute payment” (as defined
in Section 280G(b)(2) of the Code), then the payments and benefits provided for in this Plan shall be either (a) reduced (but not
below zero) so that the present value of such total amounts and benefits received by such Eligible Individual from the Company
and its Affiliates shall be one dollar ($1.00) less than three times such Eligible Individual’s “base amount”
(as defined in Section 280G(b)(3) of the Code) and so that no portion of such amounts and benefits received by such Eligible Individual
shall be subject to the excise tax imposed by Section 4999 of the Code or (b) paid in full, whichever produces the better net after-tax
position to such Eligible Individual (taking into account any applicable excise tax under Section 4999 of the Code and any other
applicable taxes). The reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments
or benefits to be paid in cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with
such payment or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit
that would be made first in time) and, then, reducing any benefit to be provided in-kind hereunder in a similar order. The determination
as to whether any such reduction in the amount of the payments and benefits provided hereunder is necessary shall be made by the
Company in good faith. If a reduced payment or benefit is made or provided and through error or otherwise that payment or benefit,
when aggregated with other payments and benefits from the Company (or its Affiliates) used in determining if a “parachute
payment” exists, exceeds one dollar ($1.00) less than three times such Eligible Individual’s base amount, then such
Eligible Individual shall be required to immediately repay such excess to the Company upon notification that an overpayment has
been made. Nothing in this Section 8 shall require the Company to be responsible for, or have any liability or obligation
with respect to, such Eligible Individuals’ excise tax liabilities under Section 4999 of the Code.

 

9.             Confidentiality;
Non-Competition; Non-Solicitation.

 

(a)               Following
the time that an Eligible Individual becomes a participant in the Plan, he or she will be provided with, and will have access
to, Confidential Information. Both during the time that an Eligible Individual participates in this Plan and thereafter,
except as expressly permitted by this Agreement or by directive of the Administrator, such Eligible Individual shall not
disclose any Confidential Information to any person or entity and shall not use any Confidential Information except for the
benefit of the Company Group. By becoming an Eligible Individual, each Eligible Individual acknowledges and agrees that he or
she would inevitably use and disclose Confidential Information in violation of this Section 9(a) if he or she were to
violate any of the covenants set forth in the other portions of this Section 9. Employee shall follow all Company
Group policies and protocols regarding the security of all documents and other materials containing Confidential Information
(regardless of the medium on which Confidential Information is stored). The covenants of this Section 9.a) shall apply
to all Confidential Information, whether now known or later to become known to an Eligible Individual during the period that
he or she is employed by or affiliated with the Company or any other member of the Company Group.

 

    11

     

    

 

(b)              
Notwithstanding any provision of Section 9.a) to the contrary, Eligible Individuals may make the following disclosures
and uses of Confidential Information:

 

(i)                 disclosures
to employees of a member of the Company Group who have a need to know the information in connection with the businesses of the
Company Group;

 

(ii)                disclosures
to customers and suppliers when, in the reasonable and good faith belief of such Eligible Individual, such disclosure is in connection
with Employee’s performance of Employee’s duties under this Agreement and is in the best interests of the Company
Group;

 

(iii)              
disclosures and uses that are approved in writing by the Administrator; or

 

(iv)              disclosures
to a person or entity that has (x) been retained by a member of the Company Group to provide services to one or more members of
the Company Group and (y) agreed in writing to abide by the terms of a confidentiality agreement.

 

(c)              
Notwithstanding the foregoing, nothing in this Plan shall prohibit or restrict an Eligible Individual from lawfully: (i)
initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or
otherwise assisting in an investigation by, any governmental authority regarding a possible violation of any law; (ii) responding
to any inquiry or legal process directed to such Eligible Individual from any such governmental authority (including the U.S. Securities
and Exchange Commission); (iii) testifying, participating or otherwise assisting in any action or proceeding by any such governmental
authority relating to a possible violation of law; or (iv) making any other disclosures that are protected under the whistleblower
provisions of any applicable law. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, an individual shall not
be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A)
is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and
(2) solely for the purpose of reporting or investigating a suspected violation of law; (B) is made to the individual’s attorney
in relation to a lawsuit for retaliation against the individual for reporting a suspected violation of law; or (C) is made in a
complaint or other document filed in a lawsuit or proceeding, if such filing is made under seal. Nothing in this Plan requires
an Eligible Individual to obtain prior authorization before engaging in any conduct described in this paragraph, or to notify the
Company that he or she has engaged in any such conduct.

 

(d)               The
Company shall provide Eligible Individuals access to Confidential Information for use only during the period of such Eligible
Individual’s employment or engagement by the Company or another member of the Company Group, and in consideration of
the Company providing such Eligible Individual with access to Confidential Information and as a condition to such Eligible
Individual’s participation in this Plan, each Eligible Individual voluntarily agrees to the covenants set forth in this Section
9. Each Eligible Individual agrees and acknowledges that the limitations and restrictions set forth herein, including
geographical and temporal restrictions on certain competitive activities, are reasonable in all respects, do not interfere
with public interests, will not cause such Eligible Individual undue hardship, and are material and substantial parts of this
Plan intended and necessary to prevent unfair competition and to protect the Company Group’s confidential information,
goodwill and legitimate business interests.

 

    12

     

    

 

(e)               
 During the Prohibited Period, each Eligible Individual shall not, without the prior written approval of the Administrator,
directly or indirectly, for such Eligible Individual or on behalf of or in conjunction with any other person or entity of any nature:

 

(i)                
engage in or participate within the Market Area in competition with any member of the Company Group in any aspect of the
Business, which prohibition shall prevent such Eligible Individual from directly or indirectly: (A) owning, managing, operating,
or being an officer or director of, any business that competes with any member of the Company Group in the Market Area, or (B)
joining, becoming an employee or consultant of, or otherwise being affiliated with, any person or entity engaged in, or planning
to engage in, the Business in the Market Area in competition, or anticipated competition, with any member of the Company Group
in any capacity (with respect to this clause) in which such Eligible Individual’s duties or responsibilities are the same
as or similar to the duties or responsibilities that such Eligible Individual had on behalf of any member of the Company Group;

 

(ii)               
appropriate any Business Opportunity of, or relating to, any member of the Company Group located in the Market Area;

 

(iii)               solicit,
canvass, approach, encourage, entice or induce any customer or supplier of any member of the Company Group with whom or which
such Eligible Individual had contact on behalf of any member of the Company Group to cease or lessen such customer’s or
supplier’s business with any member of the Company Group; or

 

(iv)             
solicit, canvass, approach, encourage, entice or induce any employee or contractor of any member of the Company Group to
terminate his, her or its employment or engagement with any member of the Company Group.

 

(f)               
Because of the difficulty of measuring economic losses to the Company Group as a result of a breach or threatened breach
of the covenants set forth in this Section 9, and because of the immediate and irreparable damage that would be caused to
the members of the Company Group for which they would have no other adequate remedy, the Company and each other member of the Company
Group shall be entitled to enforce the foregoing covenants, in the event of a breach or threatened breach, by injunctions and restraining
orders from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would
not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief
shall not be the Company’s or any other member of the Company Group’s exclusive remedy for a breach but instead shall
be in addition to all other rights and remedies available to the Company and each other member of the Company Group at law and
equity.

 

    13

     

    

 

(g)              
 The covenants in this Section 9, and each provision and portion hereof, are severable and separate, and the unenforceability
of any specific covenant (or portion thereof) shall not affect the provisions of any other covenant (or portion thereof). Moreover,
in the event any arbitrator or court of competent jurisdiction shall determine that the scope, time or territorial restrictions
set forth are unreasonable, then it is the intention of the parties that such restrictions be enforced to the fullest extent which
such arbitrator or court deems reasonable, and this Agreement shall thereby be reformed.

 

10.           Administration
of this Plan.

 

(a)               
Administrator’s Powers and Duties. The Company shall be the named fiduciary and shall have full power to administer
this Plan in all of its details, subject to applicable requirements of law. The duties of the Company shall be performed by the
Administrator, provided that the Administrator may delegate all or any portion of its duties to an executive officer of
the Company. It shall be the duty of the Administrator to see that this Plan is carried out, in accordance with its terms, for
the exclusive benefit of persons entitled to participate in this Plan. For this purpose, the Administrator’s powers shall
include, but not be limited to, the following authority, in addition to all other powers provided by this Plan:

 

(i)                
to make and enforce such rules and regulations as it deems necessary or proper for the efficient administration of this
Plan;

 

(ii)               
to interpret this Plan and all facts with respect to a claim for payment or benefits. Where such claim is made prior to
a Change in Control, the Administrator’s interpretation thereof shall be final and conclusive on all persons claiming payment
or benefits under this Plan;

 

(iii)              
to decide all questions concerning this Plan and the eligibility of any person to participate in this Plan;

 

(iv)             
to make a determination as to the right of any person to a payment or benefit under this Plan (including, without limitation,
to determine whether and when there has been a termination of an Eligible Individual’s employment and the cause of such termination
and the amount of any payment or benefit due under this Plan);

 

(v)              
to appoint such agents, counsel, accountants, consultants, claims administrators and other persons as may be required to
assist in administering this Plan;

 

(vi)             
to allocate and delegate its responsibilities under this Plan and to designate other persons to carry out any of its responsibilities
under this Plan, any such allocation, delegation or designation to be in writing;

 

(vii)             
to sue or cause suit to be brought in the name of this Plan; and

 

(viii)             to
obtain from the Company and from Eligible Individuals such information as is necessary for the proper administration of this Plan.

 

    14

     

    

 

(b)              
 Indemnification. The Company shall indemnify and hold harmless the Administrator (and each member thereof) in the
performance of its, his or her duties under this Plan against any and all expenses and liabilities arising out of its, his or her
administrative functions or fiduciary responsibilities under this Plan, including any expenses and liabilities that are caused
by or result from an act or omission constituting the negligence of the Administrator or such member in the performance of such
functions or responsibilities, but excluding expenses and liabilities that are caused by or result from such Administrator’s
or member's own gross negligence or willful misconduct. Expenses against which such Administrator or member shall be indemnified
hereunder shall include, without limitation, the amounts of any settlement or judgment, costs, counsel fees, and related charges
reasonably incurred in connection with a claim asserted or a proceeding brought or settlement thereof.

 

(c)              
Compensation, Bond and Expenses. The members of the Administrator shall not receive compensation with respect to
their services for the Administrator. To the extent required by applicable law, but not otherwise, Administrator members shall
furnish bond or security for the performance of their duties hereunder. Any expenses properly incurred by the Administrator incident
to the administration, termination or protection of this Plan, including the cost of furnishing bond, shall be paid by the Company.

 

(d)              
Claims Procedure. Any Eligible Individual that the Administrator determines is entitled to a benefit under this Plan
is not required to file a claim for benefits. Any Eligible Individual who is not paid a benefit hereunder and who believes that
he or she is entitled to a benefit hereunder or who has been paid a benefit and who believes that he or she is entitled to a greater
benefit hereunder may file a claim for benefits under this Plan in writing with the Administrator. In any case in which a claim
for Plan benefits by an Eligible Individual is denied or modified, the Administrator shall furnish written notice to the claimant
within ninety (90) days after receipt of such claim for Plan benefits (or within one hundred eighty (180) days if additional information
requested by the Administrator necessitates an extension of the ninety (90)-day period and the claimant is informed of such extension
in writing within the original ninety (90)-day period), which notice shall:

 

(i)                
state the specific reason or reasons for the denial or modification;

 

(ii)               
provide specific reference to pertinent Plan provisions on which the denial or modification is based;

 

(iii)             
provide a description of any additional material or information necessary for the Eligible Individual or his or her representative
to perfect the claim, and an explanation of why such material or information is necessary; and

 

(iv)               explain
this Plan’s claim review procedure as contained herein and describe the Eligible Individual’s right to bring an action
under Section 502(a) of ERISA following a denial or modification on review.

 

    15

     

    

 

In the event a claim for Plan
benefits is denied or modified, if the Eligible Individual or his or her representative desires to have such denial or
modification reviewed, he or she must, within sixty (60) days following receipt of the notice of such denial or modification,
submit a written request for review by the Administrator of its initial decision. In connection with such request, the
Eligible Individual or his or her representative may review any pertinent documents upon which such denial or modification
was based and may submit issues and comments in writing. Within sixty (60) days following such request for review the
Administrator shall, after providing a full and fair review, render its final decision in writing to the Eligible Individual
and his or her representative, if any, stating specific reasons for such decision and making specific references to pertinent
Plan provisions upon which the decision is based. If special circumstances require an extension of such sixty (60)-day
period, the Administrator’s decision shall be rendered as soon as possible, but not later than one hundred twenty (120)
days after receipt of the request for review. If an extension of time for review is required, written notice of the extension
shall be furnished to the Eligible Individual and his representative, if any, prior to the commencement of the extension
period. The Administrator shall be given written notice of its decision on review to the Eligible Individual. In the event a
claim for Plan benefits is denied or modified on review, such notice shall set forth the specific reasons for such denial or
modification and provide specific references to this Plan provisions on which the denial or modification is based. The notice
shall also provide that the Eligible Individual is entitled to receive, upon request and free of charge, reasonable access
to, and copies of, all documents, records, and other information relevant to the Eligible Individual’s claim for
benefits, including (i) documents, records or other information relied upon for the benefit determination, (ii) documents,
records or other information submitted, considered or generated without regard to whether such documents, records or other
information were relied upon in making the benefit determination, and (iii) documents, records or other information that
demonstrates compliance with the standard claims procedure. The notice shall also contain a statement describing the Eligible
Individual’s right to bring an action under Section 502(a) of ERISA. Any legal action with respect to a claim for Plan
benefits must be filed no later than one (1) year after the later of (i) the date the claim is denied by the Administrator or
(ii) if a review of such denial is requested pursuant to the provisions above, the date of the final decision by the
Administrator with respect to such request.

 

11.          
General Provisions.

 

(a)               
Funding. The benefits provided herein shall he unfunded and shall be provided from the Company’s general assets.

 

(b)              
Cost of Plan. The cost of this Plan shall be borne by the Company and no contributions shall be required of the Eligible
Individuals.

 

(c)               
Plan Year. The Plan shall operate on a calendar year basis.

 

(d)              
Amendment and Termination.

 

(i)                
The Plan may be amended from time to time or terminated at the discretion of the Board. Notwithstanding anything to the
contrary herein, the Administrator, in its sole discretion, may reduce or terminate the coverage of any Eligible Individual under
this Plan at any time in its sole and absolute discretion; provided, however, in the event of a Change in Control during
the existence of this Plan, this Plan shall remain in full force and effect and benefits may not be reduced during the Change in
Control Period.

 

    16

     

    

 

(ii)                The provisions set forth in Section 11(d)(i) that otherwise restrict amendments to this Plan shall not apply to
(A) an amendment to the administrative provisions of this Plan that is required pursuant to applicable law, (B) an amendment that
increases the benefits payable under this Plan or otherwise constitutes a bona fide improvement of an Eligible Individual’s
rights under this Plan or (C) an amendment which decreases the benefits of an Eligible Individual that is consented to in writing
by such Eligible Individual.

 

(e)              
Not a Contract of Employment. The adoption and maintenance of this Plan shall not be deemed to be a contract of employment
between the Company and any person or to be consideration for the employment of any person. Nothing herein contained shall be deemed
to give any person the right to be retained in the employ of the Company or to restrict the right of the Company to discharge any
person at any time nor shall this Plan be deemed to give the Company the right to require any person to remain in the employ of
the Company or to restrict any person’s right to terminate his or her employment at any time.

 

(f)               
Severability. Any provision in this Plan that is prohibited or unenforceable in any jurisdiction by reason of applicable
law shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating
or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

 

(g)              
After-Acquired Evidence. Notwithstanding any provision of the Plan to the contrary, in the event that the Administrator
determines that an Eligible Individual is eligible to receive severance pay or benefits pursuant to Section 4 but, after
such determination, the Administrator subsequently acquires evidence or determines that (i) such Eligible Individual has failed
to abide by the terms of Section 9 or any other restrictive covenant agreements between such Eligible Individual and any
member of the Company Group; or (ii) a Cause condition existed prior to such Eligible Individual’s termination of employment
that, had the Company been fully aware of such condition, would have given the Company the right to terminate such Eligible Individual’s
employment for Cause, then the Company shall have the right to cease the payment of all pay and benefits pursuant to Section
4, and such Eligible Individual shall promptly return to the Company any payment and any other severance benefits received
by such Eligible Individual pursuant to Section 4 prior to the date that the Administrator determines that the conditions
of this Section 11(g) have been satisfied.

 

(h)              
Nonalienation. Eligible Individual shall not have any right to pledge, hypothecate, anticipate or assign benefits
or rights under this Plan, except by will or the laws of descent and distribution.

 

(i)                
Effect of Plan. This Plan is intended to supersede all prior oral or written policies of the Company and all prior
oral or written communications to Eligible Individual with respect to the subject matter hereof including any employment offer
letter with an Eligible Individual, and all such prior policies or communications are hereby null and void and of no further force
and effect. Further, this Plan shall be binding upon the Company and any successor of the Company, by merger or otherwise, and
shall inure to the benefit of and be enforceable by the Company’s employees.

 

    17

     

    

 

(j)                  Taxes. The Company or its successor may withhold from any amounts payable to an Eligible Individual under this Plan
such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

(k)               
Governing Law. All questions arising with respect to the provisions of this Plan and payments due hereunder shall
be determined by application of the laws of the Delaware, without giving effect to any conflict of law provisions thereof, except
to the extent that Delaware law is preempted by federal law (including by including ERISA, which is the federal law that governs
the Plan, the administration of the Plan and any claims made under the Plan).

 

(l)                
Section 409A. The Plan and all benefits provided hereunder are intended to be exempt from Code Section 409A to the
maximum extent permitted by applicable law. To the extent that any payment provided hereunder is subject to Code Section 409A,
(i) this Plan and all payments provided hereunder are intended to comply with the provisions of Code Section 409A, and (ii) if
on the date of an Eligible Individual’s separation from service the Eligible Individual is a “specified employee,”
as defined in Section 409A of the Code, then all or such portion of any severance payments under this Plan that would be subject
to the additional tax provided by Section 409A(a)(l)(B) of the Code if not delayed as required by Section 409A(a)(2)(B)(i) of the
Code shall be delayed until the date that is six (6) months after the date of the Eligible Individual’s separation from service
date (or, if earlier, the Eligible Individual’s date of death) and shall be paid as a lump sum (without interest) on such
date.

 

(m)              
Notices. For the purposes of this Plan, notices and all other communications shall be in writing and shall be deemed
to have been duly given when personally delivered, by facsimile transmission or sent by certified mail, return receipt requested,
postage prepaid, or by expedited (overnight) courier with established national reputation, shipping prepaid or billed to sender,
in either case addressed to the respective addresses last given by each party to the other (provided that all notices to
the Company must be directed to the attention of the General Counsel and Corporate Secretary of the Company) or to such other address
as either party may have furnished to the other in writing in accordance herewith. All notices and communication shall be deemed
to have been received on the date of delivery thereof, or on the second (2nd) day after deposit thereof with an expedited
courier service, except that notice of change of address shall be effective only upon receipt.

 

(n)               
Clawback. Any amounts payable under the Plan are subject to any policy (whether in existence as of the Effective
Date or later adopted) established by the Company providing for clawback or recovery of amounts that were paid to an Eligible Individual;
provided, however, that the establishment or modification of any clawback policy by the Company on or after the date
of a Change in Control shall only apply to amounts payable under the Plan to the extent required by applicable law. The Company
shall make any determination for clawback or recovery in its sole discretion and in accordance with applicable laws, regulations,
and securities exchange listing standards.

 

    18Exhibit 10.5

 

		INTER-AMERICAN MANAGEMENT LLC EMWLOYMENTAGREEMENT Allen E. Webb This Employment Agreement (this "Agreement") is entered into by and between Inter-American Management LLC, a Delaware limited liability company (hereinafter referred to as the "Company"), and Allen E. Webb (hereinafter referred to as the "Executive"), dated and effective as of the Effective Date defmed in Section 1 below. WHEREAS, the Executive is currently employed by the Company as a Senior Vice President, and the Company and the Executive wish to enter into this Agreement to establish the terms and conditions of such employment from and after the Effective Date. Accordingly, the parties hereto agree as follows: 1. Term. The term of this Agreement shall have an initial term commencing as of December 1, 2016 (the "Effective Date") and ending on the third anniversary of the Effective Date, unless sooner terminated in accordance with the provisions of Section 4 (the period during which the Executive is employed hereunder being hereinafter referred to as the "Term"). The Term shall be subject to automatic one (1) year renewals unless notice of non-renewal is provided between the parties in accordance with the notice provisions of Section 7.6, at least ninety (90) days prior to the end of any such Term (a "Non-Renewal"). 2. Duties. The Executive shall be a Senior Vice President, and, in that capacity, shall faithfully perform for the Company the duties of said office and shall perform such other duties of an executive, managerial or administrative nature as shall be specified and designated from time to time by the President of the Company. In his capacity as a Senior Vice President of the Company, the Executive shall report to and operate under the supervision of the President of the Company. 2.1 External Manager Duties. The Company serves as (a) the external manager of Global Medical REIT Inc. ("GMR") and GMR's subsidiaries pursuant to that certain Amended and Restated Management Agreement made and entered into as of July 1, 2016, by and between GMR and the Company (as amended from time to time) (the "GMR Management Agreement") and (b) the external manager of American Housing REIT Inc. ("AHR") and AHR's subsidiaries pursuant to that certain Management Agreement made and entered into as ofNovember 10, 2014, but effective as of April 1, 2014, by and between AHR and the Company (as amended from time to time) (the "AHR Management Agreement" and, together with the GMR Management Agreement, the "Management Agreements"). Pursuant to Management Agreements, the Company is responsible for managing the business and affairs of GMR and AHR and, in connection therewith, is required to provide each of GMR and AHR with corporate officers. Accordingly, in addition to his duties to the Company hereunder, the Executive's duties shall include serving as the Senior Vice President, SEC Reporting and Technical Accounting of GMR and assisting the Company in performing its obligations to GMR and its subsidiaries under the GMR Management Agreement without any additional compensation, other than discretionary equity incentive awards under the equity incentive plans of GMR that may be granted to the Executive by the compensation committee of the board of directors of GMR in its discretion from time to time as described further below. In his capacity as an officer of GMR, the Executive shall report to and operate under the supervision of the Chief Financial Officer of GMR and the audit committee of the board of directors of GMR. Upon request of the Company, the Executive may also serve as an officer of AHR or of other 

 

     

     

    

 

		funds or entities that the Company manages without any additional compensation except as approved by the Company in its discretion. 2.2 Time Commitment. The Executive shall devote substantially all of the Executive's business time and effort to the performance of the Executive's duties hereunder. The Executive shall allocate his time as is reasonably necessary for him to perform the duties associated with each of his positions at the Company, GMR and any other fund or entity that is managed by the Company for which the Executive is requested by the Company to perform services. Provided that the following activities do not interfere with the Executive's duties hereunder, including his duties as Senior Vice President, SEC Reporting and Technical Accounting of GMR and as an officer of any other fund or entity that is managed by the Company for which the Executive is requested by the Company to perform services, and provided that the following activities do not violate the Executive's covenant against competition as described in Section 6.2 hereof, during the Term the Executive may perform personal, charitable and other business activities, including, without limitation, serving as an officer, employee or director of one or more other professional organizations and businesses as well as charitable and non-profit organizations. 3. Compensation and Benefits. 3.1 Salary. The Company shall pay the Executive an initial salary at the rate of $190,000 per annum (the "Annual Salary"), in accordance with the customary payroll practices of the Company applicable to senior executives generally. The Annual Salary may be increased from time to time by an amount and on such conditions as may be approved by the members of the Company, and upon such increase, the increased amount shall thereafter be deemed to be the Annual Salary. Notwithstanding the foregoing, (i) the Executive's Annual Salary shall be increased by 4% on each anniversary of the Effective Date during the Term, (ii) if the equity market capitalization of GMR is at least $300,000,000 as of the close of trading on any 10 consecutive trading days during the Term, the Executive's Annual Salary shall be increased by 15% of the Executive's then-current Annual Salary as of such lOth consecutive trading day. 3.2 Cash and Equity Bonus Compensation. (a) Company Compensation. The Executive will be eligible to receive discretionary annual cash bonuses (each an "Annual Bonus"), subject to the approval of the President of the Company. Each Annual Bonus, if any, will be paid within 90 days after the end of the fiscal year to which such Annual Bonus relates. Additionally, the Executive will be eligible to participate in any executive compensation plan or program, including any equity incentive plan, of the Company. Unless otherwise approved by the President of the Company, any Annual Bonus or other cash or equity-linked bonus compensation shall be at the discretion and subject to the approval of the President of the Company. (b) GMR Compensation. The Executive will be eligible to participate in any executive compensation plan or program, including any equity incentive plan, adopted by the compensation committee of the board of directors of GMR. Any GMR equity-based awards made to the Executive upon approval by the compensation committee of the board of directors of GMR (collectively, "GMR Equity Compensation") shall be at the discretion and subject to the approval of the compensation committee of the board of directors of GMR. (c) Compensation by Other Entities Managed by the Company. The Executive will be eligible to participate in any executive compensation plan or program, including any equity incentive plan, adopted by the compensation committee of the board of directors or other similar 2 

 

     

     

    

 

		governing body of AHR and of any other fund or entity that is managed by the Company if the Executive is requested by the Company to serve as an officer of AHR or such other fund or entity, as applicable. Any equity-based awards made to the Executive under any such executive compensation plan or program of AHR or other such fund or entity (collectively, "Other Company Equity Compensation" and, together with GMR Equity Compensation, "Equity Compensation") shall be at the discretion and subject to the approval of the compensation committee of the board of directors or other similar governing body of AHR or such other fund or entity. 3.3 Benefits-In General. The Executive shall be permitted during the Term, and any renewal Term, to participate in any group medical, life, hospitalization or disability insurance plans, health programs, pension and profit sharing plans, 401(k) plan, relocation programs and similar benefits that may be available to other senior executives of the Company generally, on the same terms as may be applicable to such other executives (except as otherwise provided in this Section 3), in each case to the extent that the Executive is eligible under the terms of such plans or programs. 3.4 Paid Time Off. The Executive shall be entitled to no fewer than twenty (20) days of paid time off per year, plus Company-scheduled holidays. Any unused days of paid time off will be forfeited at the end of the year. 3.5 Expenses. The Company shall pay or reimburse the Executive for all ordinary and reasonable out-of-pocket expenses actually incurred and, in the case of reimbursement, actually paid by the Executive during the Term in connection with the performance of the Executive's services under this Agreement, provided that the Executive shall submit such expenses in accordance with the policies applicable to senior executives of the Company generally. To the extent the Company is entitled to be reimbursed by GMR or AHR or another company that is managed by the Company, the reimbursement shall be paid pro-rata based on the percentage of the Executive's time allocated to each entity. 4. Termination of Employment. The Company may terminate the Executive's employment for any reason or for no reason and with or without Cause (as defmed herein below). The Executive may terminate the Executive's employment with the Company for Good Reason (as defmed herein below) or without Good Reason. The Company or the Executive may terminate the Executive's employment upon the Executive's disability as provided in Section 4.1, or by Non-Renewal. The survival provisions of this Agreement described in Section 7.15 contemplate without limitation that upon the termination of his employment the Executive shall be subject to the provisions of the Covenant Against Competition set forth in Section 6.2. 4.1 Termination upon the Executive's Death or Disability. (a) If the Executive dies during the Term, the obligations of the Company to or with respect to the Executive shall terminate in their entirety except as otherwise provided in this Section 4.1 and except for the surviving provisions of this Agreement as described in Section 7.15. (b) If the Executive becomes eligible for disability benefits under the Company's long-term disability plans and arrangements, the Company or the Executive shall have the right, to the extent permitted by law, to terminate the employment of the Executive upon at least ninety (90) days' prior written notice to the other party, provided that the Company shall not have the right to terminate the Executive's employment in accordance with this Section 4.1(b) if, (i) in the opinion of a qualified physician reasonably acceptable to both parties, it is reasonably certain that the Executive will be able to resume his duties on a regular full-time basis within one hundred eighty (180) days of the date that the notice of such termination is delivered, and (ii) upon the expiration of such one hundred eighty (180) day period,
the Executive has resumed his duties on a regular full-time basis. 3 

 

     

     

    

 

		(c) Upon the Executive's death or the termination of the Executive's employment by virtue of disability, all of the following shall apply: (i) the Executive, or the Executive's estate or beneficiaries in the case of the death of the Executive, shall have no right to receive any compensation or benefit hereunder on and after the effective date of the termination of employment, except that the Executive, for himself and his dependents, or the Executive's beneficiaries, as applicable, shall have the right, at his or his estate's expense, under COBRA to continue coverage under the Company's major medical group health and dental plans for a period of up to eighteen (18) months after the termination and the Executive or, in the event of the death of the Executive, the Executive's estate or beneficiaries shall be entitled to reimbursement of all reimbursable expenses incurred by the Executive prior to the date of such termination; (ii) all of the Equity Compensation previously awarded to the Executive, to the extent not vested or to the extent subject to forfeiture restrictions, as of the date of the termination of the Executive's employment, shall immediately be deemed vested and all forfeiture restrictions shall immediately lapse (treating any applicable performance criteria as fully satisfied), and any outstanding options to acquire shares of stock of GMR, AHR or another fund or entity that is managed by the Company that are held by the Executive shall immediately be vested and shall be, as determined in the discretion of the board of directors of GMR or by the board of directors or other similar governing body of AHR or such other fund or entity, either (A) exercisable by the Executive or, in the case of the Executive's death, by the beneficiaries of Executive's estate, for one (1) year following the termination (or, if shorter, the balance of the regular term of the options), or (B) cashed out or cancelled pursuant to the terms set forth in the applicable equity incentive plan as in effect on the Effective Date hereof; and (iii) this Agreement shall otherwise terminate and there shall be no further rights with respect to the Executive hereunder except for the surviving provisions of this Agreement as provided in Section 7.15. 4.2 Termination by the Company for Cause. The Company may terminate the Executive's employment at any time for "Cause" if any of the following have occurred: (a) the Executive's conviction for (or pleading guilty or nolo contendere to) any felony, or a misdemeanor involving moral turpitude; (b) the Executive's indictment for any felony or misdemeanor involving moral turpitude, if such indictment is not discharged or otherwise resolved within eighteen (18) months; (c) the Executive's commission of an act of fraud, theft, dishonesty or breach of fiduciary duty related to the Company, GMR, AHR or any other fund or entity that is managed by the Company and for which the Executive is requested by the Company to perform services or the performance of the Executive's duties hereunder; (d) the continuing failure or habitual neglect by the Executive to perform the Executive's duties hereunder, except that, if such failure or neglect is curable, the Executive shall have thirty (30) days from his receipt of a notice of such failure or neglect to cure such condition and, if the Executive does so to the reasonable satisfaction of the Company (such cure opportunity being available only once), then such failure or neglect shall not constitute Cause hereunder; 4 

 

     

     

    

 

		(e) any violation by the Executive of the Restrictive Covenants set forth in Section 6 except that, if such violation is not willful and is curable, the Executive shall first have thirty (30) days from his receipt of notice of such violation to cure such condition and, ifthe Executive does so to the reasonable satisfaction of the Company, such violation shall not constitute Cause hereunder; or (f) the Executive's material breach of this Agreement, except that, if such breach is curable, the Executive shall first have thirty (30) days from his receipt of such notice of such breach to cure such breach and, if the Executive does so to the reasonable satisfaction of the Company, such breach shall not constitute Cause hereunder. If the Company terminates the Executive's employment for Cause, the Executive shall have no right to receive any compensation or benefit hereunder on and after the effective date of the termination of employment, except that the Executive shall be entitled to receive the Executive's Annual Salary through the date of termination and any other benefits that are earned and accrued under this Agreement prior to the date of termination, and the Executive shall be entitled to receive reimbursement of expenses incurred prior to the date of termination that are reimbursable under this Agreement. This Agreement shall otherwise terminate upon such termination of employment and the Executive shall have no further rights or obligations hereunder except for the surviving provisions of this Agreement as described in Section 7.15. 4.3 Termination by the Company without Cause. The Company may terminate the Executive's employment at any time without Cause upon thirty (30) days' prior written notice to the Executive. If the Company terminates the Executive's employment without the occurrence of any of the events constituting Cause and the termination is not due to the Executive's death or disability, then the termination by the Company is without Cause. If the Company terminates the Executive's employment without Cause, then the Severance Package provisions of Section 5 shall apply, and this Agreement shall otherwise terminate and the Executive shall have no further rights or obligations hereunder except for the surviving provisions of this Agreement as described in Section 7.15. Termination of Emolovment by the Executive for Good Reason. Subject to 4.4 the notice and cure provisions set forth below, the Executive may terminate the Executive's employment with the Company for Good Reason and receive the Severance Package provisions of Section 5 if any of the following have occurred without the Executive's written consent ("Good Reason"): (a) any material diminution in the Executive's title, authorities, duties or responsibilities (including without limitation the assignment of duties inconsistent with his position, or a significant adverse alteration of the nature or status of his responsibilities, or a significant adverse alteration of the conditions ofhis employment); (b) any requirement that the Executive report to a corporate officer or employee of the Company instead of reporting directly to the members of the Company; (c) after there has occurred a Change in Control, any duplication with other Company personnel of the Executive's title, authorities, duties or responsibilities; (d) any material reduction ofthe Executive's Annual Salary; (e) the Company's material breach ofthis Agreement; 5 

 

     

     

    

 

		(f) a determination by the Company to relocate its corporate headquarters to a new location that is more than fifty (50) miles from the current address of the Company's corporate headquarters in Bethesda, Maryland; or (g) a Non-Renewal by the Company, unless such Non-Renewal is made as a result of an event constituting Cause. Notwithstanding the forgoing, the Executive shall not be deemed to have terminated this Agreement for Good Reason unless: (y) the Executive terminates this Agreement no later than six (6) months following the initial existence of the above referenced event or condition which is the basis for such termination (it being understood that each instance of any such event shall constitute a separate basis for such termination and a separate event or condition occurring on the date of such instance for purposes of calculating the six-month period); and (z) the Executive provides to the Company a written notice of the existence of the above referenced event or condition which is the basis for the termination within sixty (60) days following the initial existence of such event or condition, and the Company fails to remedy such event or condition within 30 days following the receipt of such notice. This Agreement shall otherwise terminate upon such termination of employment and the Executive shall have no further rights or obligations hereunder except for the surviving provisions ofthis Agreement as described in Section 7.15. 4.5 Termination of Employment by the Executive without Good Reason. The Executive may terminate the Executive's employment with the Company at any time without Good Reason. A Non-Renewal by the Executive shall be deemed to constitute a termination by the Executive of his employment with the Company without Good Reason. lfthe Executive terminates his employment without the occurrence of any of the events constituting "Good Reason" and the termination is not due to the Executive's death or disability, then the termination by the Executive is without Good Reason. If the Executive terminates the Executive's employment with the Company without Good Reason, the Executive shall have no right to receive any compensation or benefit hereunder on and after the effective date of the termination of employment, except that the Executive shall be entitled to receive the Executive's Annual Salary through the date of termination, other benefits that are earned and accrued under this Agreement or under applicable Company benefit plans prior to the date of termination and reimbursement of expenses incurred prior to the date of termination that are reimbursable under this Agreement. This Agreement shall otherwise terminate upon such termination of employment and the Executive shall have no further rights or obligations hereunder except for the surviving provisions of this Agreement as described in Section 7.15. 5. Severance Package for Certain Terminations of Employment. The Executive shall be entitled to certain rights and shall be bound by certain obligations as described in this Section 5 (the "Severance Package") if the Executive's employment terminates under any of the following conditions: (x) if the Executive resigns within ninety (90) days following receipt of a Non-Renewal by the Company; (y) if the Company terminates the Executive's employment without Cause, or (z) if the Executive terminates the Executive's employment for Good Reason. For purposes of this Agreement, the "Severance Package" shall consist of all of the following rights and obligations: (a) The Executive shall be entitled to receive the Executive's Annual Salary pro-rated for the period through the date of termination, other benefits that are earned and accrued under this Agreement and under applicable Company benefit plans prior to the date of termination, and reimbursement of expenses incurred prior to the date of termination that are reimbursable under this Agreement; (b) If the Executive signs the general release of
claims in favor of the Company in the form set forth in Attachment "A" and the general release becomes irrevocably effective 6 

 

     

     

    

 

		not later than forty-five (45) days after the date of the termination event, the Executive shall also be entitled to all of the following: (i) payment of a cash amount, payable in equal monthly installments over a 12-month period, equal to the sum of (i) one-sixth of the Executive's then current Annual Salary and (ii) one-sixth of the most recent Annual Bonus paid to the Executive; provided, however, if the Executive is a "specified employee" within the meaning of Section 409A of the Internal Revenue Code, as amended (the "Tax Code"), any payments of"deferred compensation" (as defmed under Treasury Regulation Section 1.409A-1(b)(l), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-l(b)(3) through (b)(12)), shall not commence until the first day of the seventh month beginning after the date of the Executive's "separation from service" (as defmed under Treasury Regulation Section 1.409A-l(h)) to avoid the imposition of the additional20% tax under Section 409A of the Tax Code (and in the case of installment payments, the frrst payment shall include all installment payments required by this subsection that otherwise would have been made during such period); and (ii) for a period of eighteen (18) months after termination of employment, the Executive shall have the right under COBRA to continue coverage, at his expense, under the Company's major medical group health and dental plans, it being expressly understood and agreed that nothing in this clause (b)(ii) shall restrict the ability of the Company to generally amend or terminate such plans and programs from time to time in its sole discretion; provided, however, that the Company shall in no event be required to provide such coverage after such time as the Executive becomes entitled to receive health benefits from another employer or recipient of the Executive's services (and provided, further, that such entitlement shall be determined without regard to any individual waivers or other arrangements); (iii) all of the Equity Compensation awarded to the Executive, to the extent not vested or to the extent subject to forfeiture restrictions as of the date of the termination of the Executive's employment, shall immediately be deemed vested and any forfeiture restrictions shall immediately lapse (treating the performance criteria for the year of termination as fully satisfied). Unless a later payment date is required under Section 409A of the Tax Code (as described above or pursuant to Section 7.20 of this Agreement), payments due under the Severance Package shall be paid to the Executive (or installment payments shall commence) on the fiftieth (50th) day following the date of the termination event. This Agreement shall otherwise terminate upon such termination of employment and the Executive shall have no further rights hereunder except for surviving provisions of this Agreement as provided in Section 7.15. 6. Covenants of the Executive. 6.1 General Covenants of the Executive. The Executive acknowledges that (a) the principal business of the Company and its affiliates is the management of publicly traded companies, including REITs, that focus on the acquisition, development, and operation of single-family residential rental properties and healthcare properties (such business, and any and all other businesses that after the date hereof, and from time to time during the Term, become material with respect to the Company's then- overall business, herein being collectively referred to as the "Business"); (b) the Company knows of a limited number of persons who have developed the Business; (c) the Business is, in part, national in scope; (d) the Executive's work for the Company and its affiliates has given and will continue to give the Executive access to the confidential affairs and proprietary information of the Company and to "trade secrets," (as defmed under the laws of the State of Maryland) of the Company and
its affiliates; (e) the covenants and agreements ofthe Executive contained in this Section 6.1 are essential to the business and 7 

 

     

     

    

 

		goodwill of the Company; and (f) the Company would not have entered into this Agreement but for the covenants and agreements set forth in this Section 6.1. 6.2 Covenant Against Competition. The covenant against competition herein described shall apply as follows: (a) during the Term; (b) for a period of one (1) year following a termination of the Executive's employment by the Company without Cause, by the Executive with Good Reason or by either party after Non-Renewal; (c) for a period of one-hundred eighty (180) days following a termination of the Executive's employment by the Company for Cause or by the Executive without Good Reason; provided, however, that the Company shall have the option to extend the period for up to an additional one-hundred eighty (180) days if the Company pays the Executive his Annual Salary as in effect on the date of termination during such extended period; and (d) as to Section 6.2(bb) and (dd), at any time during and after the Executive's employment with the Company and its subsidiaries (and the predecessors of either). During the time periods described hereinabove, the Executive covenants as follows: (aa) The Executive shall not, directly or indirectly, own, manage, control or participate in the ownership, management, or control of, or be employed or engaged by or otherwise affiliated or associated as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, director or in any other individual or representative capacity, engage or participate in any single-family residential rental property REIT, senior housing property or healthcare property REIT or other fmancial investment business which owns single-family rental properties, senior housing properties or healthcare properties as its primary business and that has assets in excess of One Hundred Million and No/00 Dollars ($100,000,000), if such business is in competition in any manner whatsoever with the Business of the Company in any state or country or other jurisdiction in which the Company conducts its Business as of the date oftermination;provided, however, that, notwithstanding the foregoing, (i) the Executive may own or participate in the ownership of any entity which he owned or managed or participated in the ownership or management of prior to the Effective Date which ownership, management or participation has been disclosed to the Company; and (ii) the Executive may invest in securities of any entity, solely for investment purposes and without participating in the business thereof, if (A) such securities are traded on any national securities exchange or the National Association of Securities Dealers Automated Quotation System or equivalent non-U.S. securities exchange, (B) the Executive is not a controlling person of, or a member of a group which controls, such entity and (C) the Executive does not, directly or indirectly, own five percent (5%) or more of any class of securities of such entity. (bb) Except in connection with the business and affairs of the Company and its affiliates, the Executive shall keep secret and retain in strictest confidence, and shall not use for his benefit or the benefit of others, all confidential matters relating to the Company and its Business and the business of any of the Company's affiliates, learned by the Executive heretofore or hereafter directly or indirectly as a result of his positions with the Company or its affiliates (or any predecessor) (the "Confidential Company Information"), including, without limitation, information with respect to the respective businesses, properties, profit or loss figures, operations, strategies, and business transactions of any of them (or any of their predecessors), and shall not disclose such Confidential Company information to anyone outside of the Company except with the Company's express written consent and except for Confidential Company 8 

 

     

     

    

 

		Information which (i) at the time of receipt or thereafter becomes publicly known through no wrongful act of the Executive; (ii) is clearly obtainable in the public domain; (iii) was not acquired by the Executive in connection with the Executive's employment or affiliation with the Company or its affiliates; (iv) was not acquired by the Executive from the Company or its affiliates or representatives or from a third-party who has an agreement with the Company or its affiliates not to disclose such information; (v) was legally in the possession of or developed by the Executive prior to the Effective Date; or (vi) is required to be disclosed by rule of law or by order of a court or governmental body or agency. For purposes of this Agreement, "affiliate" means, with respect to the Company, any person, partnership, corporation or other entity that controls, is controlled by or is under common control with the Company, including but not limited to GMR and AHR and their respective affiliates and any other future REIT or fund managed by the Company. (cc) The Executive shall not, without the Company's prior written consent, directly or indirectly, (i) knowingly solicit or knowingly encourage to leave the employment or other service of the Company or any of its affiliates, any employee employed by the Company or any of its affiliates at the time of the termination thereof or knowingly hire (on behalf of the Executive or any other person or entity) any employee employed by the Company or any of its affiliates at the time of the termination who has left the employment or other service of the Company or any of its affiliates (or any predecessor thereof) within one (1) year of the termination of such employee's or independent contractor's employment or other service with the Company or any of its affiliates; or (ii) whether for the Executive's own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with the Company's or any of its affiliates' respective relationship with, or endeavor to entice away from the Company or any of its affiliates, any person who during the Executive's employment with the Company or any of its affiliates is or was a customer or client of the Company or any of its affiliates (or any predecessor thereof). Notwithstanding the above, nothing shall prevent the Executive from soliciting loans, investment capital, or the provision of management services from third parties engaged in the Business if the activities of the Executive facilitated thereby do not otherwise adversely interfere with the operations of the Business. (dd) All memoranda, notes, lists, records, property and any other tangible product and documents (and all copies thereof) made, produced or compiled by the Executive or made available to the Executive during the Term concerning the Business of the Company and its affiliates shall be the Company's property and shall be delivered to the Company at any time on request. Notwithstanding the above, the Executive's contacts and contact data base shall not be the Company's property. Notwithstanding the above, software, methods and material developed by the Executive prior to the Term of the Agreement shall not be the Company's property. 6.3 Rights and Remedies upon Breach. The Executive acknowledges and agrees that any breach by him of any of the provisions of Sections 6.1 or 6.2 (the "Restrictive Covenants") would result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Executive breaches, or threatens to commit a breach of, any of the Restrictive Covenants, the Company and its affiliates shall have the right and remedy to have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages) by any court having equity jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders
and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then continuing, of such covenants. This right and remedy shall be in addition to, and not in lieu of, any other rights and remedies available to the Company and its affiliates under law or in equity (including, without limitation, the recovery of damages). The existence of any claim or cause of action by the Executive, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement of the Restrictive Covenants. The Company has the right to cease making the payments provided as part of the Severance Package in the event of a 9 

 

     

     

    

 

		material breach of any of the Restrictive Covenants that, if capable of cure and not willful, is not cured within thirty (30) days after receipt of notice thereof from the Company. 7. Other Provisions. 7.1 Severabilitv. The Executive acknowledges and agrees that the Executive has had an opportunity to seek advice of counsel in connection with this Agreement and that the Restrictive Covenants are reasonable in geographical and temporal scope and in all other respects. If it is determined that any of the provisions of this Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the provisions of this Agreement shall not thereby be affected and shall be given full affect, without regard to the invalid portions. 7.2 Duration and Scope of Covenants. If any court or other decision maker of competent jurisdiction determines that any of the Executive's covenants contained in this Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, are unenforceable because of the duration or geographical scope of such provision, then, after such determination has become fmal and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced. 7.3 Enforceability ofRestrictive Covenants; Jurisdictions. The Company and the Executive intend to and hereby consent to jurisdiction to enforce the Restrictive Covenants upon the courts of any jurisdiction within the geographical scope of the Restrictive Covenants. If the courts of any one or more of such jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of breadth of scope or otherwise it is the intention of the Company and the Executive that such determination not bar or in any way affect the Company's right, or the right of any of its affiliates, to the relief provided above in the courts of any other jurisdiction within the geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in such other respective jurisdictions, such Restrictive Covenants as they relate to each jurisdiction's being, for this purpose, severable, diverse and independent covenants, subject, where appropriate, to the doctrine of res judicata. 7.4 Arbitration. Except with respect to any claims or disputes arising from or relating to the Restrictive Covenants, any disputes arising under or in connection with this Agreement shall be resolved by binding arbitration, to be held in Bethesda, Maryland in accordance with the Commercial Arbitration Rules, as amended from time to time, of the American Arbitration Association (the "AAA"). The Company and the Executive will each select an arbitrator, and a third arbitrator will be selected jointly by the arbitrators selected by the Company and the Executive within 15 days after demand for arbitration is made by a Party. If the arbitrators selected by the Company and the Executive are unable to agree on a third arbitrator within that period, then either the Company or the Executive may request that the AAA select the third arbitrator. The arbitrators will possess substantive legal experience in the principle issues in dispute and will be independent of the Company and the Executive. To the extent permitted by applicable law and not prohibited by the Company's certificate of incorporation and bylaws, the Company will pay all expenses (including the reasonable expenses of the Executive, including his reasonable legal fees, if the Executive is the prevailing party in such arbitration) incurred in connection with arbitration and the fees and expenses of the arbitrators and will advance such expenses from time to time as required. Except as may otherwise be agreed in writing by the parties or as ordered by the arbitrators upon substantial justification shown,
the hearing for the dispute will be held within 60 days of submission of the dispute to arbitration. The arbitrators will render their fmal award within 30 days following conclusion of the hearing and any required post-hearing briefmg or other proceedings ordered by the arbitrators. The arbitrators will state the factual and legal basis for the award. The 10 

 

     

     

    

 

		decision of the arbitrators will be final and binding and not subject to judicial review and fmal judgment may be entered upon such an award in any court of competent jurisdiction, but entry of such judgment will not be required to make such award effective. 7.5 Attorneys' Fees. If litigation shall be brought to enforce or interpret any provision contained herein, the Company, to the extent permitted by applicable law and not prohibited by the Company's articles of incorporation and bylaws, shall indenmify the Executive for the Executive's reasonable attorneys' fees and disbursements incurred in such litigation if the Executive is the prevailing party in such litigation. 7.6 Notices. Any notice, consent or other communication required or permitted hereunder shall be in writing and shall be delivered personally, sent by facsimile transmission, email transmission with a confirming telephone call or by certified, registered or express mail, postage prepaid. Any such notice, consent or other communication shall be deemed given when so delivered personally, delivered by overnight courier, sent by facsimile transmission or sent by email transmission with a confirming telephone call or, if mailed, five days after the date of deposit in the United States mails as follows: (a) Ifto the Company, to: Inter-American Management LLC 4800 Montgomery Lane Suite 450 Bethesda, MD 20814 Attention: Jeffrey Busch Telephone: 301-968-3688, ext. 6862 Email: jeffb@interamc.com with a copy to: Inter-American Management LLC 4800 Montgomery Lane, Suite 450 Bethesda, MD 20814 Attention: Don McClure Telephone: 202-524-6863 Email: donm@interamc.com (b) If to the Executive, to: Allen E. Webb 4800 Montgomery Lane, Suite 450 Bethesda, MD 20814 Telephone: 202-524-6867 Email: allenw@interamc.com Any such person may by notice given in accordance with this Section to the other parties hereto designate another address or person for receipt by such person of notices hereunder. 7.7 Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with the Company or its subsidiaries (or any predecessor of either). 11 

 

     

     

    

 

		7.8 Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other such right, power or privilege. 7.9 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED EXCLUSIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF MARYLAND WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. Subject to the parties' obligations under Section 7.4, the Executive and the Company each hereby expressly consents to the exclusive venue and jurisdiction of the state and federal courts located in Baltimore or Bethesda, Maryland for any lawsuit arising from or relating to this Agreement. 7.10 Assignment. This Agreement shall be binding upon and inure to the benefit of the executors, administrators, heirs, successors and assigns of the parties; provided, however, that except as herein expressly provided, this Agreement shall not be assignable either by the Company (except to an affiliate of the Company, in which event the Company shall remain liable if the affiliate fails to meet any of the Company's obligations hereunder, including without limitation to provide the employment opportunities offered hereby and to make payments or provide benefits or otherwise) or by the Executive. 7.11 Withholding. The Company shall be entitled to withhold from any payments or deemed payments any amount of withholding required by law. In the event that the Company determines that any federal, state, local or foreign tax or withholding payment is required relating to the vesting in or delivery of any Equity Compensation, the Company shall have the right to require such payments from the Executive or withhold such amounts from other payments due to the Executive from the Company or any affiliate, or to withhold such Equity Compensation that would otherwise have been issued to the Executive. The Executive shall have the right to recommend the manner in which such payments shall be made or withheld. No other taxes, fees, impositions, duties or other charges or offsets of any kind shall be deducted or withheld from amounts payable hereunder, unless otherwise required by law. 7.12 No Duty to Mitigate. The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor will any payments hereunder be subject to offset in the event the Executive does mitigate. 7.13 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, heirs, executors and legal representatives. 7.14 Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original but all such counterparts together shall constitute one and the same instrument. Each counterpart may consist of two copies hereof each signed by one of the parties hereto. 7.15 Survival. The rights and obligations of the parties under this Agreement, which by their nature would continue beyond the termination or expiration of this Agreement, shall survive the termination or expiration of this Agreement. The Company's obligations hereunder shall not be terminated by reason of any liquidation, dissolution, bankruptcy, cessation of business, or similar event relating to the Company. This Agreement shall not be terminated by any merger or consolidation or other reorganization ofthe Company. In the event any such merger, consolidation or reorganization shall
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		accomplished by transfer of stock or by transfer of assets or otherwise, the provisions of this Agreement shall be binding upon and inure to the benefit of the surviving or resulting corporation or person. 7.16 Existing Agreements. Executive represents to the Company that the Executive is not subject or a party to any employment or consulting agreement, non-competition covenant or other agreement, covenant or understanding which might prohibit the Executive from executing this Agreement or limit the Executive's ability to fulfill the Executive's responsibilities hereunder. 7.17 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement. 7.18 Parachute Provisions. If any amount payable to, or other benefit receivable by, the Executive pursuant to this Agreement (taking into account payments and benefits under other agreements, plans and agreements) is deemed to constitute a "parachute payment" as defmed in Section 280G of the Tax Code, then such payment or benefit shall be reduced to the extent required to prevent such payment or benefit so that it is not deemed to constitute a "parachute payment" as defmed in Section 280G of the Tax Code. 7.19 Indemnification; Directors and Officer's Insurance. The Executive shall be entitled to indemnification in all instances in which the Executive is acting within the scope of his authority to the fullest extent permitted by applicable law and not prohibited by the Company's, GMR or AHR's charter and bylaws or operating agreement, as applicable, from and against any damages or liabilities, including reasonable attorney's fees; provided, however , that the Executive shall not be entitled to indemnification for damages or liabilities which result from or arise out of the Executive's willful misconduct or gross negligence. During the Term, the Company, GMR and AHR will maintain directors' and officers' liability insurance in a coverage amount of not less than Ten Million and No/00 Dollars ($10,000,000). 7.20 409A. This Agreement and the amounts payable and other benefits hereunder are intended to comply with, or otherwise be exempt from, Section 409A of the Tax Code. This Agreement shall be administered, interpreted and construed in a manner consistent with Section 409A. If any provision of this Agreement is found not to comply with, or otherwise not to be exempt from, the provisions of Section 409A, it shall be modified and given effect, in the sole discretion of the Company and without requiring the Executive's consent, in such manner as the Company determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Section 409A. Each payment under this Agreement shall be treated as a separate identified payment for purposes of Section 409A. The preceding provisions shall not constitute or be construed as a guarantee, representation or warranty by the Company of any particular favorable tax effect or result to the Executive of the payments and other benefits under this Agreement. With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, the Executive, as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (a) the expenses eligible for reimbursement or the amount of in- kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 1OS(b) of the Tax Code; (b) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (c) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. 13 

 

     

     

    

 

		If a payment obligation under this Agreement arises on account of the Executive's termination of employment and if such payment is subject to Section 409A, the payment shall be paid only in connection with the Executive's "separation from service" (as defmed in Treas. Reg. Section 1.409A-l(h)). If a payment obligation under this Agreement arises on account of the Executive's "separation from service" (as defmed under Treas. Reg. Section 1.409A-l(h)) while the Executive is a "specified employee" (as defmed under Treas. Reg. Section 1.409A-l(h)), any payment of"deferred compensation" (as defmed under Treasury Regulation Section 1.409A-l(b)(l), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-l(b)(3) through (b)(12)) that is scheduled to be paid within six months after such separation from service shall accrue without interest and shall be paid on the first day of the seventh month beginning after the date of the Executive's separation from service or, if earlier, within 15 days after the appointment of the personal representative or executor of the Executive's estate following his death. [Signature page follows.] 14 

 

     

     

    

 

		IN WITNESS WHEREOF, the parties hereto have signed their names to this Employment Agreement as of the day and year set forth below. COMPANY: Date: fh.btr / 2016 EXECUTIVE: 4 !/Jt tA By Date: ttlnak£ { , 2016 Name: Allen E. Webb 

 

     

     

    

 

		ATTACHMENT "A" to INTER-AMERICAN MANAGEMENT LLC ENWLOYMENTAGREEMENT Allen E. Webb General Release of Claims Consistent with Section 5 of the Employment Agreement dated December 1, 2016, between Inter- American Management LLC (the "Company") and me (the "Employment Agreement") and in consideration for and contingent upon my receipt of the Severance Package set forth in Sections S(b) of the Employment Agreement, I, for myself, my attorneys, heirs, executors, administrators, successors, and assigns, do hereby fully and forever release and discharge the Company and its affiliated entities (as defmed in the Employment Agreement), as well as their predecessors, successors, assigns, and their current or former directors, officers, partners, agents, employees, attorneys, and administrators from all suits, causes of action, and/or claims, demands or entitlements of any nature whatsoever, whether known, unknown, or unforeseen, which I have or may have against any of them arising out of or in connection with my employment by the Company, the Employment Agreement, the termination of my employment with the Company, or any event, transaction, or matter occurring or existing on or before the date of my signing of this General Release, except that I am not releasing any (a) right to indemnification that I may otherwise have, (b) right to Annual Salary and benefits under applicable benefit plans that are earned and accrued but unpaid as of the date of my signing this General Release, (c) right to reimbursement for business expenses incurred and not reimbursed as of the date of my signing this General Release, (d) right to any bonus payment(s) or other compensation that is earned and accrued but has not then been paid as of the date of my signing this General Release, or (e) claims arising after the date of my signing this General Release. I agree not to file or otherwise institute any claim, demand or lawsuit seeking damages or other relief and not to otherwise assert any claims, demands or entitlements that are lawfully released herein. I further hereby irrevocably and unconditionally waive any and all rights to recover any relief or damages concerning the claims, demands or entitlements that are lawfully released herein. I represent and warrant that I have not previously filed or joined in any such claims, demands or entitlements against the Company, GMR, AHR or the other persons released herein and that I will indemnify and hold them harmless from all liabilities, claims, demands, costs, expenses and/or attorneys' fees incurred as a result of any such claims, demands or lawsuits. Except as otherwise expressly provided above, this General Release specifically includes, but is not limited to, all claims of breach of contract, employment discrimination (including any claims coming within the scope of Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Equal Pay Act, the Americans with Disabilities Act, the Family and Medical Leave Act, and any comparable law, all as amended, or any other applicable federal, state, or local law), claims under the Employee Retirement Income Security Act, as amended, claims under the Fair Labor Standards Act, as amended (or any other applicable federal, state or local statute relating to payment of wages), claims concerning recruitment, hiring, termination, salary rate, severance pay, stock options, wages or benefits due, sick leave, holiday pay, vacation pay, life insurance, group medical insurance, any other fringe benefits, worker's compensation, termination, employment status, libel, slander, defamation, intentional or negligent misrepresentation and/or infliction of emotional distress, together with any and all tort, contract, or other claims which might have been asserted by me or on my behalf in any suit, charge of discrimination, or claim against the Company or the persons released herein. A-1 

 

     

     

    

 

		I acknowledge that I have been given an opportunity of twenty-one (21) days to consider this General Release and that I have been encouraged by the Company to discuss fully the terms of this General Release with legal counsel of my own choosing. Moreover, for a period of seven (7) days following my execution of this General Release, I shall have the right to revoke the waiver of claims arising under the Age Discrimination in Employment Act, a federal statute that prohibits employers from discriminating against employees who are age 40 or over. Ifl elect to revoke this General Release within this seven-day period, I must inform the Company by delivering a written notice of revocation to the Company 's Director of Human Resources no later than 11:59 p.m. on the seventh calendar day after I sign this General Release. I understand that, if I elect to exercise this revocation right, this General Release shall be voided in its entirety and the Company shall be relieved of all obligations to make the portion of the Severance Package described in Section S(b) of the Employment Agreement. I may, if I wish, elect to sign this General Release prior to the expiration of the 21-day consideration period, and I agree that if I elect to do so, my election is made freely and voluntarily and after having an opportunity to consult counsel. AGREED: Date A-2 us 4771962

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