Document:

Exhibit 10.3

 

FREEHOLD
PROPERTIES, INC.

 

ALIGNMENT
OF INTEREST PROGRAM

 

Freehold Properties, Inc.,
a Maryland corporation (the “Company”), sets forth herein the terms of its Alignment of Interest Program (the
 “Program”), as follows:

 

1.            Purpose.
The Freehold Properties, Inc. Equity Incentive Plan (the “Incentive Plan”) was adopted effective October 30,
2019. This Program has been adopted to provide a framework for granting certain awards under the Incentive Plan and is intended to further
the purposes of the Incentive Plan by providing long-term incentives in lieu of cash compensation. The Program is administered by the
Committee that administers the Incentive Plan. If the board of directors of the Company (the “Board”) has not appointed
such a committee, the Board serves as the Committee. The Committee believes that utilizing restricted stock with long-term vesting aligns
the interests of Participants with those of the Company’s stockholders.

 

2.            Definitions.
Whenever capitalized terms are used herein, but not defined, they shall have the meanings attributed to such terms in the Incentive Plan.

 

3.            Participation.
Participation is available to the eligible employees and service providers to the Company who have been named by the Committee to participate
in this Program, and the non-employee members of the Board (together, the “Participants”).

 

4.            Awards.
Each year, Participants may elect to reduce base salary, cash bonus, retainer, fees or other compensation (“Compensation”)
that might be payable in cash for the subsequent year (the “Reduction Year”) by a dollar or percentage amount
that will be applied to calculate the number of shares of Restricted Stock to be acquired in exchange for Compensation (the “Acquisition
Shares”). The number of Acquisition Shares received will be based on the value of the Company’s common stock determined
in accordance with Section 4(c). In addition, the Participant will receive an award of shares (the “Award Shares”)
based on the applicable multiple of the Acquisition Shares (the “Restriction Multiple”) that is established
by the Committee. The applicable Restriction Multiple shall be determined by reference to the corresponding period established by the
Committee that the Award is restricted and subject to forfeiture (the “Restriction Period”). The Participant
may elect the desired Restriction Multiple by selecting the corresponding Restricted Period. Award Shares and Acquisition Shares that
are acquired each year are collectively referred to as an “Award.”

 

(a)            The
number of Acquisition Shares granted to a Participant shall be determined by dividing the Compensation election for the Reduction Year
by the Fair Market Value of the Company’s common stock, determined in accordance with the Incentive Plan.

 

     

     

    

 

(b)            For
purposes of determining the number of Award Shares that are awarded to a Participant, the Restriction Multiples and Restriction Periods
shall be as follows:

 

(i)            For
Participants other than non-employee members of the Board:

 

	Duration of Restriction Period	 	Restriction Multiple	 
	2 years	 	0.33	x
	4 years	 	0.66	x
	6 years	 	1.0	x

 

(ii)            For
Participants who are non-employee members of the Board:

 

	Duration of Restriction Period	 	Restriction Multiple	 
	1 year	 	0.2	x
	2 years	 	0.4	x
	3 years	 	0.6	x

 

The product of the Restriction Multiple
that is elected by the Participant, multiplied by the Acquisition Shares, and rounded to the nearest share, shall be the number of shares
constituting the Award Shares pursuant to this Section 4.

 

(c)            Except
as described in this subsection, the amount of Compensation that is elected by a Participant shall be determined on January 15 of
the Reduction Year or, for Participants who are non-employee members of the Board, the 15th business day following the annual
meeting of the Company’s stockholders. If such date is not a trading day, then the trading day immediately preceding such date (the
 “Valuation Date”).

 

The Valuation Date
for a Participant’s initial year of participation in the Program shall be the date that is the 15th business day following
the Participant’s effective election, except that the Valuation Date for elections made prior to completion of the Company’s
September 2019 common stock offering shall be September 1, 2019.

 

(d)            Each
Participant must deliver a written election in the form provided by the Committee of the Participant’s election to obtain an Award
pursuant to this Section 4 to the person appointed by the Committee, prior to the end of the last business day of the year prior
to the Reduction Year. The notice shall contain the percentage reduction and the restriction period selected by the Participant. This
election shall be irrevocable by the Participant on and after January 1 of the Reduction Year.

 

(e)            Acquisition
Shares and Award Shares determined pursuant to this Section 4 shall be transferred to each Participant as soon as administratively
feasible following the Valuation Date. Such shares may be held by the Company in book entry form until the end of the applicable Restriction
Period.

 

(f)            The
Committee may limit the number of Acquisition Shares a Participant can elect to receive in any year. The Committee may also establish
minimum and maximum amounts of each Compensation type that a Participant may elect to be used to acquire Acquisition Shares.

 

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5.            Vesting
of Awards. Until an Award becomes vested in accordance with this Section 5, it is subject to forfeiture by the Participant upon
a termination of service described in Section 6. Except as provided in the applicable Award agreement, each Award will become fully
vested and no longer subject to a risk of forfeiture upon the soonest of the following to occur:

 

(a)            The
Participant continually provides services to the Company through the end of the Restriction Period.

 

(b)            The
death or Disability of the Participant.

 

(c)            The
Company undergoes a Change in Control.

 

6.            Termination
of Employment. In the event that a Participant ceases to provide services to the Company for any reason other than death, Disability,
Change in Control or as otherwise provided in the applicable Award agreement prior to the vesting of an Award described in Section 5,
the unvested portion of the Award shall be immediately forfeited.

 

7.            Amendments.
The Committee may from time to time amend or modify this Program, provided that no such action shall adversely affect Awards previously
granted hereunder.

 

8.            Survival.
This Program shall continue in effect as long as the Incentive Plan is in effect or until terminated by the Committee or the Board.

 

    3Exhibit 10.7

 

Freehold
Properties, Inc. Equity Incentive Plan

Award
Agreement

(alignment
of interest program)

 

This
Agreement is made and entered into on this [ ] day of [ ], 20__, by and between Freehold Properties, Inc. (the “Company”)
and [ ] (the “Participant”), in connection with the grant of an Award of Restricted Stock made on [ ], 20__ (the “Grant
Date”) under the Freehold Properties, Inc. Equity Incentive Plan (the “Plan”).

 

This Award includes both the
Acquisition Shares and Award Shares that were awarded to the Participant in connection with the Participant’s Restricted Stock Election
Agreement dated [  ], 20__, entered into pursuant to the Company’s Alignment of Interest Program (“Election
Agreement”). In consideration of the foregoing, the parties have entered into this Agreement to govern the terms of this Award:

 

1.            Award.
Subject to the terms and conditions set forth in the Plan and herein, the Company awards to the Participant an award of Restricted Stock
and Stock Units, as follows:

 

(a)            Restricted
Stock. The award includes [ ] shares of Restricted Stock, subject to adjustment as provided in Section 18.1 of the Plan. The
shares covered by this Award are subject to forfeiture in the event the Participant ceases to be an employee of the Company prior to the
vesting of such shares in accordance with the schedule in Paragraph 3.

 

(b)            Stock
Unit. The award includes [ ] Stock Units, subject to adjustment as provided in Section 18.1 of the Plan. The Stock Units, or
a portion thereof, will be earned on the achievement of the applicable performance goals that are described in Paragraph 3 of this Agreement.
The Stock Units are subject to forfeiture in the event the Participant ceases to be an employee of the Company prior to vesting or to
the extent that the performance goals described in Paragraph 3 are not achieved.

 

2.            Transfer
of Award. Except for transfers pursuant to a will or the laws of descent and distribution, this Award is not transferable and the
Participant may not make any disposition of the shares of Common Stock described herein, or any interest herein, prior to the dates that
such shares become vested as described herein; provided, however, that the Award may be transferred to the extent consented to by the
Committee. As used herein, “disposition” means any sale, transfer, encumbrance, gift, donation, assignment, pledge, hypothecation,
or other disposition, whether similar or dissimilar to those previously enumerated, whether voluntary or involuntary, and whether during
the Participant’s lifetime or upon or after the Participant’s death, including, but not limited to, any disposition by operation
of law, by court order, by judicial process, or by foreclosure, levy, or attachment, except a transfer by will or by the laws of descent
or distribution. Any attempted disposition in violation of this Paragraph is void.

 

3.            Vesting.

 

(a)            Restricted
Stock. Except as provided in Paragraph 4, the Restricted Stock covered by this Award will become vested upon the completion of the
Restriction Period described in the Election Agreement, which is January 1, 20__, provided that the Participant is continually employed
through such Restriction Period and the conditions of Paragraph 3(b) are satisfied.

 

     

     

    

 

(b)           Stock
Units. The Participant will receive a share of Restricted Stock for each Stock Unit that is earned for achievement and performance,
as determined by the Committee, and continuous employment during the period commencing on January 1, 20__ and ending on December 31,
20__ (the “Performance Period”). The number of Stock Units earned will be determined by the Committee as a percentage
of the target bonus award that is earned by the Participant during the Performance Period. The Stock Units that are not earned at the
end of the Performance Period will thereupon be cancelled and forfeited. The Restricted Stock will be issued to the Participant upon the
Committee’s determination after the Performance Period but not later than March 15th of the calendar year that follows
the calendar year in which the Stock Units are earned. The Restricted Stock will be subject to forfeiture until vested in the manner described
in Paragraph 3(a).

 

(c)            Notwithstanding
the foregoing, (i) the Acquisition Shares, as defined in the Election Agreement, will become fully vested in the event of a Change
in Control, and (ii) the Award Shares, as defined in the Election Agreement, will also become fully vested in the event of a Change
in Control if the Company has raised an aggregate of at least $100 million of capital (whether through equity or debt financing) between
formation of the Company and the closing date of such Change of Control.

 

4.            Effect
of Termination of Services. The unforfeited portion of the Award will become fully vested upon (i) death or Disability, (ii) termination
of Participant’s employment by the Company without Cause, or (iii) resignation by the Participant for Good Reason. The Participant
will forfeit all shares under this Award that have not yet become vested in accordance with Paragraph 3 on the date that a Participant
ceases to be an employee of the Company for any other reason than the foregoing.

 

5.            Status
of Participant. Except for the restrictions described in this Agreement and the Plan, the Participant shall be deemed a stockholder
of the Company with respect to shares of Restricted Stock granted or earned under the Award and shall be entitled to exercise voting rights
with respect thereto. Dividends earned on Common Stock are subject to the conditions of Section 10.4 of the Plan. The Company is
not required to deliver shares of Common Stock to the Participant until the shares have become vested, all applicable requirements of
law have been complied with and such shares shall have been duly listed on any securities exchange on which the Common Stock may then
be listed. Any certificates representing the shares of Common Stock awarded pursuant to this Agreement shall be issued in the Participant’s
name; however, until vested, the certificates for such shares of Common Stock shall be held by the Company and shall not be transferred
except in accordance with the provisions hereof. In lieu of issuing stock certificates, the Company may record shares of Common Stock
subject to this Award in book entry form.

 

6.            Tax
Withholding. At the time at which any portion of the Award becomes vested, the Company shall withhold from the Award the number of
shares of Common Stock with a Fair Market Value that is equivalent to the Company’s federal, state and other tax withholding obligations
unless the Participant makes other arrangements to pay to the Company the amount of such required withholdings. The Company shall, to
the extent permitted by law, have the right to deduct from any payment of any kind otherwise due the Participant taxes required to be
withheld with respect to the Award.

 

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7.            Restrictions
on Shares. Shares acquired under this Award shall be subject to certain restrictions, including but not limited to repurchase rights
in favor of the Company upon the Participant’s termination of employment as described in Paragraph 8 and the Company’s right
of first refusal as described Paragraph 9. In addition, as a condition to the issuance of Common Stock, upon request the Participant must
execute and agree to be bound by any stockholders’ agreement that is executed by other stockholders of the Company.

 

8.            Repurchase
Rights upon Termination. If a Participant ceases providing services to the Company in his or her capacity as an employee, a non-employee
member of the Board or a consultant or independent advisor for any reason, the Company shall have the right to purchase shares of Common
Stock issued to the Participant pursuant to this Award for the Fair Market Value of the Common Stock on the date that the right of repurchase
arises; provided, however, if the Participant’s services are terminated for reason of “Cause,” the purchase price
shall be $100 for all shares issued hereunder. The Company may exercise the rights described in this Paragraph 8 by (i) giving notice
of exercise to the Participant in person or by mail within 90 days of the later of (A) the date of termination of service or (B) six
months after the Participant has acquired the Common Stock subject to this right of repurchase, and (ii) delivering the purchase
price within 30 days of providing notice of intent to exercise the right of repurchase. This right of repurchase shall expire at the time
that a common class of equity securities of the Company becomes publicly traded on a recognized exchange or automated trading system.

 

(a)            The
purchase price shall be paid in cash, marketable securities or, if the purchase price exceeds $100,000, by a promissory note that is paid
in installments of not less than $100,000 annually and is secured by the Common Stock repurchased. A legend may be placed on all stock
certificates to reference this right.

 

(b)           For
purposes of this Section, “Cause” shall have the same meaning contained in the Participant’s employment agreement or
services agreement with the Company or an Affiliate. In the absence thereof, Cause shall mean:

 

		(i)	Fraud, misappropriation, embezzlement or other act of material misconduct against the Company or an Affiliate;

 

		(ii)	Substantial and willful failure to render services to the Company or Affiliate, or material inattention
to duties (other than as a result of illness, accident or other physical or mental incapacity), provided that the Participant is provided
with a reasonable opportunity to cure and resume performance within five days of receiving notice containing the specific instances of
failure to perform by the Committee;

 

		(iii)	Willful and knowing violation of any rules or regulations of any governmental or regulatory body
material to the business of the Company; or

 

		(iv)	Conviction of or plea of guilty
or nolo contendere to a felony.

 

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9.            Right
of First Refusal. A Participant may not sell the shares of Common Stock acquired pursuant to an Award to any person other than the
Company without the prior written consent of the Company, unless the Participant has received a bona fide offer from a person who is a
stockholder of the Company prior to making the offer and, prior to the completion of the sale, the Participant gives reasonable notice
to the Company of the terms thereof and provides the Company a reasonable opportunity to purchase the Common Stock under terms that are
no less favorable to the Participant. If the Company does not purchase the Common Stock within 30 days after receiving notice of such
intended sale, the Participant may complete the sale to the Company stockholder, validly identified in the notice to the Company, without
further restriction hereunder. Any transfer of Common Stock in violation of this provision may be voided by the Company within 30 days
of the Company receiving notice of the transfer. Notwithstanding the foregoing, the Company’s consent and first refusal rights described
in this Paragraph 9 shall not apply if the Participant sells the Common Stock acquired hereunder (i) in connection with or after
a public offering of the Company’s common equity securities, or (ii) in connection with or following a Change in Control.

 

10.           No
Effect on Capital Structure. This Award shall not affect the right of the Company or any Subsidiary to reclassify, recapitalize or
otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup,
or otherwise reorganize.

 

11.            Committee
Authority. Any question concerning the interpretation of this Agreement, any adjustments required to be made under the Plan and any
controversy that may arise under the Plan or this Agreement shall be determined by the Committee in its sole discretion. Such decision
by the Committee shall be final and binding.

 

12.            Plan
Controls. The terms of this Agreement are governed by the terms of the Plan, as it exists on the date of this Agreement and as the
Plan is amended from time to time. A copy of the Plan, and all amendments thereto, has been delivered or made available to the Participant
and shall be deemed a part of this Agreement as if fully set forth herein In the event of any conflict between the provisions of the Agreement
and the provisions of the Plan, the terms of the Plan shall control, except as expressly stated otherwise. For purposes of this Agreement,
the defined terms in the Plan shall have the same meaning in this Agreement, except where the context otherwise requires. The term “Section”
generally refer to provisions within the Plan. The term “Paragraph” shall refer to a provision of this Agreement.

 

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13.            Notice.
Whenever any notice is required or permitted hereunder, such notice must be in writing and personally delivered or sent by mail, delivery
service or electronic mail. The Company or Participant may change, by written notice to the other, the address previously specified for
receiving notices. Notices delivered to the Company shall be addressed as follows:

 

Freehold Properties, Inc.

Attn: Chief Operating
Officer

232 3rd Ave N.

Franklin, Tennessee 37064

 

Phone: [
]

Email: [ ]

 

Notices to the Participant
shall be hand-delivered to the Participant on the premises of the Company or its Subsidiaries, or sent via electronic mail or mailed to
the last address shown on the records of the Company.

 

14.            Information
Confidential. As partial consideration for the granting of this Award, the Participant agrees that he or she will keep confidential
all information and knowledge that the Participant has relating to the manner and amount of his or her participation in the Plan; provided,
however, that such information may be disclosed as required by law and may be given in confidence to the Participant’s spouse, tax
and financial advisors, or to a financial institution to the extent that such information is necessary to secure a loan.

 

15.            Amendment.
The Company, acting through the Committee or through the Board, may amend this Agreement at any time for any purpose determined by the
Company in its sole discretion that is consistent with the Plan, including but not limited to an amendment to accelerate the vesting schedule
set forth in Paragraph 3 due to normal retirement or other special circumstances, or to permit transfers of the Award to certain individuals
specified by the Participant. All amendments must be in writing. The Company may not amend this Agreement, however, without the Participant’s
express agreement to any amendment that could adversely affect the material rights of the Participant.

 

16.            Governing
Law. Except as is otherwise provided in the Plan, where applicable, the provisions of this Agreement shall be governed by the internal
laws of the State of Maryland, without regard to the principles of conflicts of laws thereof.

 

[Execution Page Follows]

 

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EXECUTION PAGE

 

In
Witness Whereof, the Company has caused this Agreement to be executed and the Participant has set his hand hereto on the day
and year first above written.

 

	 	  FREEHOLD
PROPERTIES, INC.

 

		By:	 
		Name:	Jeffery C. Walraven
		Title:	Chief Operating Officer

 

	 	  PARTICIPANT

 

	 	 	 
	 	 	[ ]

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