Document:

Form of Escrow Agreement

 EXHIBIT 10.3 
 FORM OF ESCROW AGREEMENT BETWEEN 
 STRATEGIC STORAGE TRUST, INC. AND WELLS FARGO BANK, N.A. 

 Exhibit 10.3 
 ESCROW AGREEMENT 
 This ESCROW AGREEMENT (this “Agreement”) is entered into
as of January           , 2008 by and among Strategic Storage Trust, Inc., a Maryland corporation (the “Company”), U.S. Select Securities, LLC, a Virginia limited liability
company (the “Dealer Manager”), and Wells Fargo Bank, National Association, a national banking association organized under the laws of the United States or America, as escrow agent (the “Escrow Agent”). 

The Company will issue in a public offering (the “Offering”) shares of its common stock (the
“Stock”) pursuant to a registration statement on Form S-11 filed by the Company with the Securities and Exchange Commission. The Dealer Manager will act as dealer manager for the offering of the Stock. The Company is entering into
this Agreement to set forth the terms on which the Escrow Agent will hold and disburse the proceeds from subscriptions for the purchase of the Stock in the Offering until such time as: (1) in the case of subscriptions received from all
nonaffiliates of the Company, the Company has received subscriptions for Stock resulting in a total of $1,000,000 in Stock sold in the offering (the “Required Capital”); (2) in the case of subscriptions received from residents
of New York (“NY Subscribers”) only, the Company has received subscriptions for Stock from nonaffiliates of the Company resulting in total minimum capital raised of $2,500,000 (the “NY Required Capital”) and
(3) in the case of subscriptions received from residents of Pennsylvania (“PA Subscribers”) only, the Company has received subscriptions for Stock from nonaffiliates of the Company resulting in total minimum capital raised of
$50,000,000 (the “PA Required Capital”). 
 The Company hereby appoints Wells Fargo Bank, N.A. as Escrow
Agent for purposes of holding the proceeds from the subscriptions for the Stock, on the terms and conditions hereinafter set forth: 
 1. Until such time as the Company has received subscriptions for Stock resulting in total minimum capital raised equal to the Required Capital and such funds are disbursed from the Escrow Account in accordance with paragraph 3(a) hereof,
persons subscribing to purchase the Stock (the “Subscribers”) will be instructed by the Dealer Manager or any soliciting dealers to remit the purchase price in the form of checks, drafts, wires, or money orders (hereinafter
“instruments of payment”) payable to the order of “Wells Fargo Bank, N.A. as Escrow Agent for Strategic Storage Trust, Inc.” (after subscriptions are received resulting in total minimum capital raised equal to the Required
Capital and such funds are disbursed from the Escrow Account in accordance with paragraph 3(a) hereof, subscriptions shall continue to be so submitted unless otherwise instructed by the Dealer Manager). Any checks, drafts or money orders received
made payable to a party other than the Escrow Agent (or after the Required Capital is received, made payable to a party other than the party designated by the Dealer Manager) shall be returned to the soliciting dealer who submitted the check, draft
or money order. Within one (1) business day after receipt of instruments of payment from the Offering, the Dealer Manager will (a) send to the Escrow Agent each Subscriber’s name, address, executed IRS Form W-9, number of shares
purchased, and purchase price remitted, and (b) Escrow Agent will deposit the instruments of payment from such Subscribers (the “Subscription Materials”), into an escrow account hereby designated as the “Escrow Account for
the Benefit of Subscribers for Common Stock of Strategic Storage Trust, Inc.” (the “Escrow Account”), which deposit shall occur within one (1) business day after the Dealer Manager’s receipt of all the Subscription
Materials, until such Escrow Account has closed pursuant to paragraph 3(a) hereof. Instruments of payment received from NY Subscribers (as identified as such by the Company) shall be accounted for separately in a subaccount entitled “Escrow
Account for the Benefit of NY Subscribers” (the “NY Escrow 

 
Account”), until such NY Escrow Account has closed pursuant to paragraph 3(a) hereof. Instruments of payment received from PA Subscribers
(as identified as such by the Company) shall be accounted for separately in a subaccount entitled “Escrow Account for the Benefit of PA Subscribers” (the “PA Escrow Account”), until such PA Escrow Account has closed
pursuant to paragraph 3(a) hereof. Each of the Escrow Account, the NY Escrow Account and the PA Escrow Account will be established and maintained in such a way as to permit the interest income calculations described in paragraph 7. 

2. The Escrow Agent agrees to promptly process for collection the instruments of payment upon deposit into the Escrow Account, the NY
Escrow Account or the PA Escrow Account, as applicable. Deposits shall be held in the Escrow Account, the NY Escrow Account or the PA Escrow Account until such funds are disbursed in accordance with paragraph 3 hereof. Prior to disbursement of the
funds deposited in the Escrow Account, the NY Escrow Account or the PA Escrow Account, such funds shall not be subject to claims by creditors of the Company or the Dealer Manager or any of their affiliates. If any of the instruments of payment are
returned to the Escrow Agent for nonpayment prior to receipt of the Required Capital or, in connection with subscriptions from NY Subscribers, the NY Required Capital or, in connection with subscriptions from PA Subscribers, the PA Required Capital,
the Escrow Agent shall promptly notify the Dealer Manager and the Company in writing via mail, email or facsimile of such nonpayment, and is authorized to debit the Escrow Account, the NY Escrow Account or the PA Escrow Account, as applicable in the
amount of such returned payment as well as any interest earned on the amount of such payment. 
 3. (a) (i) Subject to
the provisions of subparagraphs 3(b)-3(e) below, once the collected funds in the Escrow Account are an amount equal to or greater than the Required Capital, the Escrow Agent shall promptly notify the Company and, upon receiving written instruction
from the Company, disburse to the Company, by check, ACH or wire transfer, the funds in the Escrow Account representing the gross purchase price for the Stock and any interest thereon. After such time the Escrow Account shall remain open and the
Company shall continue to cause subscriptions for the Stock that are not to be deposited in the NY Escrow Account or the PA Escrow Account to be deposited therein until the Company informs the Escrow Agent in writing to close the Escrow Account, and
thereafter any subscription documents and instruments of payment received by the Escrow Agent from Subscribers other than NY Subscribers or PA Subscribers shall be forwarded directly to the Company. For purposes of this Agreement, the term
“collected funds” shall mean all funds received by the Escrow Agent that have cleared normal banking channels and are in the form of cash or cash equivalent. 
 (ii) regardless of any release of funds from the Escrow Account, the Company and the Dealer Manager shall continue to forward instruments of payment and Subscription Materials received from NY
Subscribers for deposit into the NY Escrow Account or PA Subscribers for deposit into the PA Escrow Account, as the case may be, to the Escrow Agent until such time as the Company notifies the Escrow Agent in writing that total subscription proceeds
(including the amount then in the NY Escrow Account and the PA Escrow Account) equal or exceed the NY Required Capital or the PA Required Capital, as the case may be. Within five days, the Escrow Agent shall disburse to the Company, by check, ACH or
wire transfer, the funds then in the NY Escrow Account or the PA Escrow Account, as the case may be, representing the gross purchase price for the Stock and any interest thereon. Following such disbursements, the Escrow Agent shall close the NY
Escrow Account or the PA Escrow Account, as the case may be, and thereafter any Subscription Materials and instruments of payment received by the Escrow Agent from NY Subscribers or PA Subscribers, as the case may be, shall 

  

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be deposited directly to the Escrow Account (or to the Company, if it has closed the Escrow Account, as instructed in writing by the Company). 
 (b) Within four business days of the close of business on the date that is one year following commencement of the Offering (the
“Expiration Date”), the Escrow Agent shall promptly notify the Company if it is not in receipt of evidence of Subscription Materials accepted on or before the Expiration Date, and instruments of payment dated not later than that the
Expiration Date, for the purchase of at least the Required Capital (from all sources but exclusive of any funds received from subscriptions for Stock from entities which the Company has notified the Escrow Agent are affiliated with the Company). At
such time, the Escrow Agent shall promptly return directly to each Subscriber the collected funds deposited in the Escrow Account, the NY Escrow Account and the PA Escrow Account on behalf of such Subscriber (unless earlier disbursed in accordance
with paragraph 3(c)), or shall return the instruments of payment delivered, but not yet processed for collection prior to such time, together with interest in the amounts calculated pursuant to paragraph 7 for each Subscriber at the address provided
by the Dealer Manager or the Company. Notwithstanding the above, in the event the Escrow Agent has not received an executed IRS Form W-9 at such time for each Subscriber, the Escrow Agent shall remit an amount to the Subscribers in accordance with
the provisions hereof, withholding twenty-eight percent (28%) of any interest income on subscription proceeds (determined in accordance with paragraph 7) attributable to each Subscriber for whom the Escrow Agent does not possess an executed IRS
Form W-9. However, the Escrow Agent shall not be required to remit any payments until funds represented by such payments have been collected. 
 (c) Notwithstanding subparagraphs 3(a) and 3(b) above, if the Escrow Agent is not in receipt of evidence of subscriptions accepted on or before the close of business on such date that is 120 days after commencement of
the Offering (the Company will notify the Escrow Agent of the commencement date of the Offering) (the “Initial Escrow Period”), and instruments of payment dated not later than that date, for the purchase of Stock providing for total
purchase proceeds from all nonaffiliated sources that equal or exceed the PA Required Capital, the Escrow Agent shall promptly notify the Company. Thereafter, the Company shall send to each PA Subscriber by certified mail within ten
(10) calendar days after the end of the Initial Escrow period a notification in the form of Exhibit “A”. If, pursuant to such notification, a PA Subscriber requests the return of his or her subscription funds within ten
(10) calendar days after receipt of the notification (the “Request Period”), the Escrow Agent shall promptly refund directly to each PA Subscriber the collected funds deposited in the PA Escrow Account on behalf of such PA
Subscriber or shall return the instruments of payment delivered, but not yet processed for collection prior to such time, to the address provided by the Dealer Manager or the Company, together with interest income in the amounts calculated pursuant
to paragraph 7. Notwithstanding the above, if the Escrow Agent has not received an executed IRS Form W-9 is for such PA Subscriber, the Escrow Agent shall thereupon remit an amount to such PA Subscriber in accordance with the provisions hereof,
withholding twenty-eight percent (28%) of any interest income earned on subscription proceeds (determined in accordance with paragraph 7) attributable to such PA Subscriber. However, the Escrow Agent shall not be required to remit such payments
until the Escrow Agent has collected funds represented by such payments. 
 (d) The subscription funds of PA Subscribers who
do not request the return of their subscription funds within the Request Period shall remain in the PA Escrow Account for successive 120-day escrow periods (a “Successive Escrow Period”), each commencing automatically upon the
termination of the prior Successive Escrow Period, and the Company and Escrow Agent shall follow the notification and payment procedure set forth in subparagraph 3(c) above with respect to the Initial Escrow Period for each Successive Escrow Period
until the 

  

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occurrence of the earliest of (i) the Expiration Date, (ii) the receipt and acceptance by the Company of subscriptions for the purchase of Stock
with total purchase proceeds that equal or exceed the PA Required Capital and the disbursement of the PA Escrow Account on the terms specified herein, or (iii) all funds held in the PA Escrow Account having been returned to the PA Subscribers
in accordance with the provisions hereof. 
 (e) If the Company rejects any subscription for which the Escrow Agent has
collected funds, the Escrow Agent shall, upon the written request of the Company, promptly issue a refund to the rejected Subscriber. If the Company rejects any subscription for which the Escrow Agent has not yet collected funds but has submitted
the Subscriber’s check for collection, the Escrow Agent shall promptly return the funds in the amount of the Subscriber’s check to the rejected Subscriber after such funds have been collected. If the Escrow Agent has not yet submitted a
rejected Subscriber’s check for collection, the Escrow Agent shall promptly remit the Subscriber’s check directly to the Subscriber. 
 4. The Escrow Agent shall provide to the Company weekly statements (or more frequently as reasonably requested by the Company) on the account balance in each of the Escrow Account, the NY Escrow Account and the PA
Escrow Account, and the activity in such accounts since the last report. 
 5. Prior to the disbursement of funds deposited
in the Escrow Account, the NY Escrow Account or the PA Escrow Account in accordance with the provisions of paragraph 3 hereof, the Escrow Agent shall invest all of the funds deposited as well as earnings and interest derived therefrom in the Escrow
Account, the NY Escrow Account or the PA Escrow Account, as applicable, in the “Short-Term Investments” specified below at the written direction of the Company, unless the costs to the Company for the making of such investment are
reasonably expected to exceed the anticipated interest earnings from such investment in which case the funds and interest thereon shall remain in the respective escrow account until the balance in the respective escrow account reaches the minimum
amount necessary for the anticipated interest earnings from such investment to exceed the costs to the Company for the making of such investment, as determined by the Company based upon applicable interest rates. “Short-Term Investments”
include obligations of, or obligations guaranteed by, the United States government or bank money-market accounts or certificates of deposit of national or state banks that have deposits insured by the Federal Deposit Insurance Corporation (including
certificates of deposit of any bank acting as a depository or custodian for any such funds) which mature on or before the Expiration Date, unless such instrument cannot be readily sold or otherwise disposed of for cash by the Expiration Date without
any dissipation of the offering proceeds invested. Without limiting the generality of the foregoing, Exhibit “B” hereto sets forth specific Short-Term Investments that shall be deemed permissible investments hereunder. 

The following securities are not permissible investments: 
 (a) money market funds; 
 (b) corporate equity or debt
securities; 
 (c) repurchase agreements; 
 (d) bankers’ acceptances; 
 (e) commercial paper; and

 (f) municipal securities. 
 It is hereby expressly agreed and stipulated by the parties hereto that the Escrow Agent shall not be required to exercise any discretion hereunder and shall have no investment or 

  

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management responsibility and, accordingly, shall have no duty to, or liability for its failure to, provide investment recommendations or investment advice
to the parties hereto. It is the intention of the parties hereto that the Escrow Agent shall never be required to use, advance or risk its own funds or otherwise incur financial liability in the performance of any of its duties or the exercise of
any of its rights and powers hereunder. 
 6. The Escrow Agent is entitled to rely upon written instructions received from
the Company, unless the Escrow Agent has actual knowledge that such instructions are not valid or genuine; provided that, if in the Escrow Agent’s opinion, any instructions from the Company are unclear, the Escrow Agent may request
clarification from the Company prior to taking any action, and if such instructions continue to be unclear, the Escrow Agent may rely upon written instructions from the Company’s legal counsel in distributing or continuing to hold any funds.
However, the Escrow Agent shall not be required to disburse any funds attributable to instruments of payment that have not been processed for collection, until such funds are collected and then shall disburse such funds in compliance with the
disbursement instructions from the Company. 
 7. If the Offering terminates prior to receipt of the Required Capital, or one
or more NY Subscribers or PA Subscribers elects to have his or her subscription returned in accordance with paragraph 3, interest income earned on subscription proceeds deposited in the Escrow Account (the “Escrow Income”), the NY
Escrow Account (the “NY Escrow Income”), or the PA Escrow Account (the “PA Escrow Income”), as applicable, shall be remitted to Subscribers. The Company shall reimburse the Escrow Agent for all escrow expenses. The
Escrow Agent shall remit all such Escrow Income, NY Escrow Income and PA Escrow Income in accordance with paragraph 3. If the Company chooses to leave the Escrow Account open after receiving the Required Capital then it shall make regular
acceptances of subscriptions therein, but no less frequently than monthly, and the Escrow Income from the last such acceptance shall be calculated and remitted to the Company. 
 8. The Escrow Agent shall receive compensation from the Company as set forth in Exhibit “C” attached hereto. The fee agreed upon for the services rendered hereunder is intended
as full compensation for the Escrow Agent’s services as contemplated by the Agreement; provided, however, that in the event that the conditions for the disbursement of funds under the Agreement are not fulfilled, or the Escrow Agent renders any
material service not contemplated in the Agreement, or there is any assignment of interest in the subject matter of the Agreement, or any material modification hereof, or if any material controversy arises hereunder, or the Escrow Agent is made a
party to any litigation pertaining to the Agreement, or the subject matter hereof, then the Escrow Agent shall be reasonably compensated for such extraordinary services and reimbursed for all costs and expenses, including reasonable attorney’s
fees, occasioned by any delay, controversy, litigation or event, and the same shall be recoverable from the Company. 
 9. In
performing any of its duties hereunder, the Escrow Agent shall not incur any liability to anyone for any damages, losses, or expenses, except for damages, losses or expenses determined to have been caused by the Escrow Agent’s willful
misconduct, breach of trust, or gross negligence. Accordingly, the Escrow Agent shall not incur any such liability with respect to any action taken or omitted (a) in good faith upon advice of the Escrow Agent’s counsel given with respect
to any questions relating to the Escrow Agent duties and responsibilities under this Agreement, or (b) in reliance upon any instrument, including any written instrument or instruction provided for in this Agreement, not only as to its due
execution and validity and effectiveness of its provisions but also as to the truth and accuracy of information contained therein, which the Escrow Agent shall in good faith believe to be genuine, to have been signed or 

  

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presented by a proper person or persons and to conform to the provisions of this Agreement. NEITHER PARTY SHALL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY
(I) DAMAGES, LOSSES OR EXPENSES IN CONNECTION WITH A BREACH OF THIS AGREEMENT OR ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN DAMAGES, LOSSES OR EXPENSES WHICH HAVE BEEN ADJUDICATED TO HAVE RESULTED FROM A PARTY’SAGENT’S
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II) SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR LOSSES OF ANY KIND WHATSOEVER (INCLUDING WITHOUT LIMITATION LOST PROFITS), EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES
OR DAMAGES AND REGARDLESS OF THE FORM OF ACTION. 
 10. The Company hereby agrees to indemnify and hold the Escrow Agent
harmless against any and all losses, claims, damages, liabilities, and expenses, including reasonable attorneys’ fees and disbursements, that may be imposed on or incurred by the Escrow Agent in connection with acceptance of appointment as the
Escrow Agent hereunder, or the performance of the duties hereunder, including any litigation arising from this Agreement or involving the subject matter hereof, except where such losses, claims, damages, liabilities, and expenses are determined to
have been caused by the Escrow Agent’s willful misconduct or gross negligence. 
 11. In the event of a dispute between
the parties hereto sufficient in the Escrow Agent’s discretion to justify doing so, the Escrow Agent shall be entitled to tender into the registry or custody of any court of competent jurisdiction all money or property in its hands under this
Agreement, together with such legal pleadings as deemed appropriate, and thereupon be discharged from all further duties and liabilities under this Agreement. In the event of any uncertainty as to the duties hereunder, the Escrow Agent may refuse to
act under the provisions of this Agreement pending order of a court of competent jurisdiction and shall have no liability to the Company or to any other person as a result of such action. Any such legal action may be brought in such court, as the
Escrow Agent shall determine to have jurisdiction thereof. The filing of any such legal proceedings shall not deprive the Escrow Agent of its compensation earned prior to such filing. 
 12. All communications and notices required or permitted by this Agreement shall be in writing and shall be deemed to have been given
when delivered personally or by messenger or by overnight delivery service or when received via telecopy or other electronic transmission, in all cases addressed to the person for whom it is intended at such person’s address set forth below or
to such other address as a party shall have designated by notice in writing to the other party in the manner provided by this paragraph: 
 if to the Company: 
 Strategic Storage Trust, Inc. 
 Attention : H. Michael Schwartz 
 111 Corporate Drive, Suite 120 
 Ladera Ranch, California 92694 
 Fax: 949-429-6606 
  

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 if to the Dealer Manager: 
 U.S. Select Securities LLC 
 Attention : Jill Raymond 
 Five Financial Plaza, Suite 205 
 Napa, California 94558 
 Fax: 707-307-0440 
  
 if
to the Escrow Agent: 
 Wells Fargo Bank, N.A. 
 Attention: Kristi Boyce, Corporate, Municipal & Escrow Solutions 
 666 Walnut Street 
 MAC N8200-034 
 Des Moines, IA 50309-3907 
 Fax: 515-245-8532 
 Each party hereto may, from time to time, change the address to which notices to it are
to be delivered or mailed hereunder by notice in accordance herewith to the other parties. 
 13. This Agreement shall be
governed by the laws of the State of Maryland as to both interpretation and performance without regard to the conflict of laws rules thereof. 
 14. The provisions of this Agreement shall be binding upon the legal representatives, successors, and assigns of the parties hereto. The foregoing notwithstanding, no assignment of the interests of any of the other
parties shall be binding on the Escrow Agent unless and until written notice of such assignment shall be filed with and acknowledged by the Escrow Agent. 
 15. The Company and the Dealer Manager hereby acknowledge that Wells Fargo Bank, N.A. is serving as Escrow Agent only for the limited purposes herein set forth, and hereby agree that they will not represent or imply
that, by serving as Escrow Agent hereunder or otherwise, have investigated the desirability or advisability of investment in the Company or have approved, endorsed, or passed upon the merits of the Stock or the Company, nor shall they use the name
of the Escrow Agent in any manner whatsoever in connection with the offer or sale of the Stock other than by acknowledgment that is has agreed to serve as Escrow Agent for the limited purposes herein set forth. 
 16. This Agreement and any amendment hereto may be executed by the parties hereto in one or more counterparts, each of which shall be
deemed to be an original. 
 17. Except as otherwise required for subscription funds received from NY Subscribers or PA
Subscribers as provided herein, in the event that the Dealer Manager receives instruments of payment after the Required Capital has been received and the proceeds of the Escrow Account have been distributed to the Company, the Escrow Agent is hereby
authorized to deposit such instruments of payment within one (1) business day to any deposit account as directed by the Company. The application of said funds into a deposit account or to forward such funds directly to the Company, in either
case directed by the Company shall be a full acquittance to the Escrow Agent, who shall not be responsible for the application of said funds thereafter. 
  

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 18. The Escrow Agent shall be bound only by the terms of this Escrow Agreement and shall
not be bound by or incur any liability with respect to any other agreements or understanding between any other parties, whether or not the Escrow Agent has knowledge of any such agreements or understandings. 
 19. Indemnification provisions set forth herein shall survive the termination of this Agreement and the resignation or removal of the
Escrow Agent. 
 20. In the event that any part of this Agreement is declared by any court or other judicial or
administrative body to be null, void, or unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this Agreement shall remain in full force and effect. 
 21. Unless otherwise provided in this Agreement, final termination of this Escrow Agreement shall occur on the date that all funds held
in the Escrow Account, the NY Escrow Account and the PA Escrow Account are distributed either (a) to the Company or to Subscribers and the Company has informed the Escrow Agent in writing to close the Escrow Account, the NY Escrow Account and
the PA Escrow Account pursuant to paragraph 3 hereof or (b) to a successor escrow agent upon written instructions from the Company. 
 22. The Escrow Agent has no responsibility for accepting, rejecting, or approving subscriptions. The Escrow Agent shall complete an OFAC search, in compliance with its policy and procedures, of each subscription check
prior to depositing the check in the Escrow Account, the NY Escrow Account or the PA Escrow Account and shall inform the Company if a subscription check fails the OFAC search. The Dealer Manager shall provide a copy of each subscription check in
order that the Escrow Agent may perform such OFAC search. 
 23. This Agreement shall not be modified, revoked, released, or
terminated unless reduced to writing and signed by all parties hereto, subject to the following paragraph. If, at any time, any attempt is made to modify this Agreement in a manner that would increase the duties and responsibilities of the Escrow
Agent or to modify this Agreement in any manner which the Escrow Agent shall deem undesirable, or at any other time, the Escrow Agent may resign by providing written notice to the Company and until (a) the acceptance by a successor escrow agent
as shall be appointed by the Company; or (b) thirty (30) days after such written notice has been given, whichever occurs sooner, the Escrow Agent’s only remaining obligation shall be to perform its duties hereunder in accordance with
the terms of the Agreement. 
 24. The Escrow Agent may resign at any time from its obligations under this Escrow Agreement
by providing written notice to the Company. Such resignation shall be effective on the date specified in such notice, which shall be not less than thirty (30) days after such written notice has been given. The Escrow Agent shall have no
responsibility for the appointment of a successor escrow agent. 
 25. The Escrow Agent may be removed for cause by the
Company by written notice to the Escrow Agent effective on the date specified in such written notice. The removal of the Escrow Agent shall not deprive the Escrow Agent of its compensation earned prior to such removal. 
 26. In the event that any part of this Agreement is declared by any court or other judicial or administrative body to be null, void, or
unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this Agreement shall remain in 

  

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full force and effect. This Agreement contains the entire understanding among the parties hereto with respect to the escrow contemplated hereby and
supersedes and replaces all prior and contemporaneous agreements and understandings, oral or written, with regard to such escrow. The section headings in this Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute the same instrument. 
 [Signature page follows] 
  

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 Agreed to as of the        day of
              , 2008. 
  

			
	 STRATEGIC STORAGE TRUST, INC.

		
	 By:
	 	  

		 	         H. Michael Schwartz

		 	         President

	
	 U.S. SELECT SECURITIES LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 The terms and conditions contained above are
 hereby accepted and agreed to by:

	
	 WELLS FARGO BANK, N.A.,
 AS ESCROW AGENT

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 10Form of Strategic Storage Trust, Inc. Long Term Incentive Plan

 EXHIBIT 10.4 
 FORM OF EMPLOYEE AND DIRECTOR LONG-TERM INCENTIVE PLAN OF 
 STRATEGIC STORAGE TRUST, INC.

 FORM OF EMPLOYEE AND DIRECTOR LONG-TERM INCENTIVE PLAN 
 OF 
 STRATEGIC STORAGE TRUST, INC.

 TABLE OF CONTENTS 
  

							
	 1.
	  	 PURPOSES OF THE PLAN AND DEFINITIONS
	  	   1

		  	 1.1
	  	 PURPOSES
	  	   1

		  	 1.2
	  	 DEFINITIONS
	  	   1

	 2.
	  	 ELIGIBLE PERSONS
	  	   6

	 3.
	  	 SHARES OF STOCK SUBJECT TO THIS PLAN
	  	   6

	 4.
	  	 ADMINISTRATION
	  	   7

		  	 4.1
	  	 COMMITTEE
	  	   7

		  	 4.2
	  	 DURATION, REMOVAL, ETC
	  	   7

		  	 4.3
	  	 MEETINGS AND ACTIONS OF COMMITTEE
	  	   7

		  	 4.4
	  	 COMMITTEE’S POWERS
	  	   8

		  	 4.5
	  	 TERM OF PLAN
	  	   9

	 5.
	  	 GRANT OF OPTIONS
	  	   9

		  	 5.1
	  	 WRITTEN AGREEMENT
	  	   9

		  	 5.2
	  	 ANNUAL $100,000 LIMITATION ON ISOS
	  	   9

	 6.
	  	 CERTAIN TERMS AND CONDITIONS OF OPTIONS AND OTHER AWARDS
	  	   9

		  	 6.1
	  	 ALL AWARDS
	  	   9

		  	 6.2
	  	 TERMS AND CONDITIONS TO WHICH ONLY NQOS ARE
SUBJECT
	  	 12

		  	 6.3
	  	 TERMS AND CONDITIONS TO WHICH ONLY ISOS ARE
SUBJECT
	  	 13

		  	 6.4
	  	 SURRENDER OF OPTIONS
	  	 13

	 7.
	  	 RESTRICTED STOCK
	  	 14

		  	 7.1
	  	 GRANT
	  	 14

		  	 7.2
	  	 RESTRICTIONS
	  	 14

		  	 7.3
	  	 DIVIDENDS
	  	 14

	 8.
	  	 STOCK APPRECIATION RIGHT
	  	 14

	 9.
	  	 DIVIDEND EQUIVALENT RIGHTS
	  	 15

		  	 9.1
	  	 GENERAL
	  	 15

		  	 9.2
	  	 RIGHTS AND OPTIONS
	  	 15

		  	 9.3
	  	 PAYMENTS
	  	 15

	 10.
	  	 OTHER EQUITY-BASED AWARDS
	  	 15

		  	 10.1
	  	 GRANT
	  	 15

		  	 10.2
	  	 TERMS AND CONDITIONS
	  	 15

		  	 10.3
	  	 PAYMENT OR SETTLEMENT
	  	 16

	 11.
	  	 COMPLIANCE WITH LAWS
	  	 16

	 12.
	  	 EMPLOYMENT OR OTHER RELATIONSHIP
	  	 16

	 13.
	  	 AMENDMENT, SUSPENSION AND TERMINATION OF THIS PLAN
	  	 16

	 14.
	  	 LIABILITY AND INDEMNIFICATION OF THE COMMITTEE
	  	 17

	 15.
	  	 SECURITIES LAW LEGENDS
	  	 17

	 16.
	  	 SEVERABILITY
	  	 17

	 17.
	  	 EFFECTIVE DATE AND STOCKHOLDER APPROVAL
	  	 18

	 18.
	  	 MISCELLANEOUS
	  	 18

		  	 18.1
	  	 LOANS
	  	 18

		  	 18.2
	  	 FORFEITURE PROVISIONS
	  	 18

		  	 18.3
	  	 LIMITATIONS APPLICABLE TO SECTION 16
	  	 18

  

 i 

							
		  	 18.4
	  	 EFFECT OF PLAN UPON OTHER INCENTIVE AND
COMPENSATION PLANS
	  	 18

		  	 18.5
	  	 SECTION 83(B) ELECTION PROHIBITED
	  	 19

  

 ii 

 EMPLOYEE AND DIRECTOR LONG-TERM INCENTIVE PLAN 
 OF 
 STRATEGIC STORAGE TRUST, INC.

  

	 1.
	 PURPOSES OF THE PLAN AND DEFINITIONS 

 1.1. Purposes. The purposes of the Employee and Director Long-Term Incentive Plan (the “Plan”) of Strategic Storage Trust, Inc. (the “Company”) are to: 
 (a) provide incentives to individuals chosen to receive share-based awards because of their ability to improve operations and increase
profits; 
 (b) encourage selected persons to accept or continue employment with the Company or any Advisor or its Affiliates
that the Committee deems important to the Company’s long-term success; and 
 (c) increase the interest of Directors in
the Company’s welfare through their participation in the growth in value of the Company’s Stock. 
 To accomplish
these purposes, this Plan provides a means whereby Employees of the Company or any Advisor or Affiliate of the Company, Directors and other enumerated persons may receive Awards. 
 1.2. Definitions. For purposes of this Plan, the following terms have the following meanings: 
 “Advisor” means the Person or Persons, if any, appointed, employed or contracted with by the Company responsible for directing
or performing the day-to-day business affairs of the Company, including any Person to whom the Advisor subcontracts substantially all of such functions. The initial Advisor is Strategic Storage Advisor, LLC. 
 “Affiliate” means any Person (other than an Advisor), whose employees (as such term is defined in the Form S-8 registration
statement under the Securities Act) are eligible to receive Awards under the Plan. The determination of whether a Person is an Affiliate shall be made by the Committee acting in its sole and absolute discretion. 
 “Applicable Laws” means the requirements relating to the administration of Awards under U.S. state corporate laws, U.S. Federal
and state securities laws, the Code, any stock exchange or quotation system on which the shares of Stock are listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

 “Articles of Incorporation” means the articles of incorporation of the Company as the same may be amended from
time to time. 
 “Award” means any award under this Plan, including any grant of Options, Restricted Shares, Stock
Appreciation Rights, Distribution Equivalent Rights or Other Equity-Based Award. 
  

 1 

 “Award Agreement” means, with respect to each Award, the written agreement
executed by the Company and the Participant or other written document approved by the Committee setting forth the terms and conditions of the Award. 
 “Board” means the Board of Directors of the Company. 
 “Cause,” unless
otherwise defined in an Employee’s employment agreement, means (i) gross negligence or willful misconduct, (ii) an uncured breach of any of the Employee’s material duties under his or her employment agreement, (iii) fraud or
other conduct against the material best interests of his or her employer or the Company, or (iv) a conviction of a felony, if such conviction has a material adverse effect on his or her employer. If “Cause” is otherwise defined
in an Employee’s employment agreement, the definition in the employment agreement shall be effective for purposes of the Plan with respect to the Employee in question. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute. 
 “Committee” has the meaning given it in Section 4.1. 
 “Common Stock” or “Stock” means common shares of capital stock of the Company, $0.001 par value per share. 
 “Company” has the meaning given it in Section 1.1. 
 “Director”
means a person elected or appointed and serving as director of the Company in accordance with the Articles of Incorporation and the Maryland General Corporation Law. 
 “Distribution Equivalent Right” means an Award of rights pursuant to Section 9. 
 “Effective Date” has the meaning given it in Section 17. 
 “Employee” has the meaning ascribed to it for purposes of Section 3401(c) of the Code and the Treasury Regulations adopted under that Section. An employee includes an officer or a Director who is an employee of the
Company. 
 “Employment Termination” means that a Participant has ceased, for any reason and with or without Cause,
to be an Employee or Director of, or a consultant to, the Company, the Advisor or any Affiliate of the Company. However, the term “Employment Termination” shall not include a Non-Employee Director’s ceasing to be a Director or a
transfer of a Participant from the Company to the Advisor or an Affiliate or vice versa, or from one Affiliate to another, or a leave of absence duly authorized by the Company unless the Committee has provided otherwise. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute. 

“Exercise Notice” has the meaning given it in Section 6.1(f). 
  

 2 

 “Fair Market Value” means with respect to Stock: 
 (i) if the Stock is listed on any established stock exchange or a national market system, including, without limitation, the NASDAQ
National Market System, the Fair Market Value of shares of Stock shall be the closing sales price for the Stock, or the mean between the high bid and low asked prices if no sales were reported, as quoted on such system or exchange (or, if the Stock
is listed on more than one exchange, then on the largest such exchange) for the date the value is to be determined (or if there are no sales or bids for such date, then for the last preceding business day on which there were sales or bids), as
reported in The Wall Street Journal or similar publication; or 
 (ii) if the Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, or if there is no market for the Stock, the Fair Market Value of the shares of Stock shall be determined in good faith by the Committee by the reasonable application of a reasonable valuation
method, with reference to all information material to the value of the Company, including by way of example, the Company’s net worth, prospective earning power, distribution-paying capacity and other relevant factors, including the goodwill of
the Company, the economic outlook in the Company’s industry, the Company’s position in the industry and its management, and the values of stock of other enterprises in the same or similar lines of business; 
 provided, however, that for purposes of granted Nonqualified Share Options or Stock Appreciation Rights, Fair Market Value of Stock shall be determined
in accordance with the requirements of Code Section 409A, and for purposes of granting Incentive Stock Options, Fair Market Value of Stock shall be determined in accordance with the requirements of Code Section 422. 
 “Grant Date” has the meaning given it in Section 6.1(c). 
 “Incentive Stock Option” or “ISO” means any Option intended to be and designated as an “incentive stock
option” within the meaning of Section 422 of the Code, and any successor provision. 
 “Non-Employee
Director” means a person who is a non-employee director as defined in Rule 16b-3 or a person who is an outside director as defined in Treasury Regulation 1.162-27(e)(3). 
 “Non-Qualified Share Option” or “NQO” means any Option that is not an Incentive Stock Option. 
 “Operating Partnership” means Strategic Storage Operating Partnership, L.P. 
 “Option” means an option granted under Section 5. 
 “Other Equity-Based
Award” means any award other than an Option, Stock Appreciation Right, a Restricted Stock Award or Distribution Equivalent Right Award which, subject to such terms and conditions as may be prescribed by the Committee, entitles a Participant to
receive shares of Common Stock or rights or units valued in whole or in part by reference to, or otherwise based on, shares of Common Stock or distributions on shares of Common Stock. 
 “Participant” means an eligible person who is granted an Award. 
  

 3 

 “Performance Goals” means any one or more of the following performance goals,
intended by the Committee to constitute objective goals for purposes of Code Section 162(m), either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or Affiliate, either
individually, alternatively or in combination, and measured either quarterly, annually or cumulatively over a period of quarters or years, on an absolute basis or relative to a pre-established target, to previous quarter’s or years’
results or to a designated comparison group, any of which may be measured on an aggregate or per share basis, in each case as specified by the Committee in the Award Agreement: 
  

	 	 (i)
	 earnings before any one or more of the following: interest, taxes, depreciation or amortization, 

  

	 	 (ii)
	 net income (loss) (either before or after interest, taxes, depreciation and/or amortization), 

  

	 	 (iii)
	 changes in the market price of the Stock (on a per share or aggregate basis), 

  

	 	 (iv)
	 economic value added, 

  

	 	 (v)
	 funds from operations or similar measure, 

  

	 	 (vi)
	 sales or revenue, 

  

	 	 (vii)
	 acquisitions or strategic transactions, 

  

	 	 (viii)
	 operating income (loss), 

  

	 	 (ix)
	 cash flow (including, but not limited to, operating cash flow and free cash flow), 

  

	 	 (x)
	 return on capital, assets, equity, or investment, 

  

	 	 (xi)
	 stockholder returns (including total returns calculated to include aggregate Stock appreciation and total dividends paid, assuming full reinvestment of
dividends, during the applicable period), 

  

	 	 (xii)
	 cash available, 

  

	 	 (xiii)
	 return on sales, 

  

	 	 (xiv)
	 gross or net profit levels, 

  

	 	 (xv)
	 productivity, 

  

	 	 (xvi)
	 expense levels or management, 

  

	 	 (xvii)
	 margins, 

  

	 	 (xviii)
	 operating efficiency, 

  

	 	 (xix)
	 customer/tenant satisfaction, 

  

 4 

	 	 (xx)
	 working capital, 

  

	 	 (xxi)
	 earnings (loss) per share of Stock, 

  

	 	 (xxii)
	 revenue or earnings growth, 

  

	 	 (xxiii)
	 number of securities sold, 

  

	 	 (xxiv)
	 the Company’s ranking against selected peer groups, 

  

	 	 (xxv)
	 “same-store” performance from period to period, 

  

	 	 (xxvi)
	 leasing or occupancy rates, 

  

	 	 (xxvii)
	 objectively determinable capital deployment, 

  

	 	 (xxviii)
	 objectively determined expense management, 

  

	 	 (xxix)
	 sales or market shares, 

  

	 	 (xxx)
	 number of customers, 

  

	 	 (xxxi)
	 productivity of employees as measured by revenues, cost, or earnings per employee, 

  

	 	 (xxxii)
	 establishment of a trading market for the Company’s Stock, and 

  

	 	 (xxxiii)
	 any combination of the foregoing. 

 The Committee may appropriately adjust any evaluation of performance under a Performance Goal to remove the effect of equity compensation expense under FAS 123R, amortization of acquired technology and intangibles, asset write-downs;
litigation or claim judgments or settlements; the effect of changes in or provisions under tax law, accounting principles or other such laws or provisions affecting reported results; accruals for reorganization and restructuring programs;
discontinued operations; and any items that are extraordinary, unusual in nature, non-recurring or infrequent in occurrence, except where such action would result in the loss of the otherwise available exemption of the Award under
Section 162(m) of the Code, if applicable. 
 “Performance Period” means, with respect to an Award, a period
of time within which the Performance Goals relating to such Award are to be measured. The Performance Period will be established by the Committee at the time the Award is granted. 
 “Person” means a corporation, partnership, trust, association or any other entity. 
 “Plan” means this Employee and Director Long-Term Incentive Plan of Strategic Storage Trust, Inc. 
 “Related Corporation” means a parent or subsidiary corporation of the Company, as those terms are defined in Sections 424(e)
and (f) of the Code. 
 “Restricted Stock” means an Award granted under Section 7. 
  

 5 

 “Rule 16b-3” means Rule 16b-3 adopted under Section 16(b) of the Exchange
Act or any successor rule, as it may be amended from time to time, and references to paragraphs or clauses of Rules 16b-3 refer to the corresponding paragraphs or clauses of Rule 16b-3 as it exists at the Effective Date or the comparable paragraph
or clause of Rule 16b-3 or successor rule, as that paragraph or clause may thereafter be amended. 
 “Section
16(b)” means Section 16(b) under the Exchange Act. 
 “Securities Act” means the Securities Act of 1933,
as amended from time to time, and any successor statute. 
 “Stock Appreciation Right” means an Award granted under
Section 8. 
 “Ten Percent Stockholder” means any person who, at the time this definition is being applied,
owns, directly or indirectly (or is treated as owning by reason of attribution rules currently set forth in Code Section 424 or any successor statute), shares of the Company constituting more than 10% of the total combined voting power of all
classes of outstanding capital stock of the Company or any Related Corporation. 
  

	 2.
	 ELIGIBLE PERSONS 

 Every person who, at or as of the Grant Date, is (a) a full-time Employee of the Company, (b) a Director of the Company, (c) is an executive officer or full-time employee of the Advisor or its Affiliates who provides services
to the Company and who does not have any beneficial ownership of the Advisor and its Affiliates, or (d) someone whom the Committee designates as eligible for an Award (other than for Incentive Stock Options) because the person (i) performs
bona fide consulting or advisory services for the Company, the Advisor or any Affiliate of the Company pursuant to a written agreement (other than services in connection with the offer or sale of securities in a capital-raising transaction), and
(ii) has a direct and significant effect on the financial development of the Company or any Affiliate of the Company, shall be eligible to receive Awards hereunder; provided, however, that Incentive Stock Options may only be granted to an
Employee of the Company or a Related Corporation. 
  

	 3.
	 SHARES OF STOCK SUBJECT TO THIS PLAN 

 The total number of shares of Stock that may be issued under Awards is a number of shares equal to ten percent (10%) of the Company’s outstanding Stock, but may never exceed ten million
(10,000,000) shares. The maximum number of shares of Stock with respect to which ISOs may be granted under the Plan is the lesser of the total number of shares of Stock that may be issued under Awards or ten million
(10,000,000) shares. Such shares of Stock may consist, in whole or in part, of authorized and unissued Stock or shares of Stock reacquired in private transactions or open market purchases, but all shares of Stock issued under the Plan,
regardless of their source, shall be counted against the Stock limitation. Any shares of Stock that are retained by the Company upon exercise or settlement of an Award in order to satisfy the exercise price in whole or in part, or to pay
withholding taxes due with respect to such exercise or settlement, shall be treated as issued to the Participant and will thereafter not be available under the Plan. Any shares of Stock subject to unexercised portions of Options granted under
the Plan which shall have been terminated, cancelled or that have expired may again be subject to Options hereunder. Awards settled in cash will not reduce the maximum aggregate number of shares of Common Stock that may be issued under the
Plan. The number of shares of Stock reserved for issuance under this Plan is subject to adjustment in accordance with the provisions for adjustment in Section 6.1. To the extent required under Section 162(m) of the Code and the
regulations 

  

 6 

 
thereunder, as applicable, for compensation to be treated as qualified performance-based compensation, subject to adjustment in accordance with
Section 6.1, the maximum number of shares of Stock with respect to which (a) Options, (b) Stock Appreciation Rights, or (c) other Awards to the extent they are granted with the intent that they qualify as qualified
performance-based compensation under Section 162(m) of the Code may be granted during any calendar year to any employee may not exceed one million (1,000,000). If, after grant, an Option is cancelled, the cancelled Option shall continue to be
counted against the maximum number of shares for which options may be granted to an employee during any calendar year as described in this Section 3. If, after grant, the exercise price of an Option is reduced or the base amount on which a
Stock Appreciation Right is calculated is reduced, the transaction shall be treated as the cancellation of the Option or the Stock Appreciation Right, as applicable, and the grant of a new Option or Stock Appreciation Right, as applicable. If an
Option or Stock Appreciation Right is deemed to be cancelled as described in the preceding sentence, the Option or Stock Appreciation Right that is deemed to be canceled and the Option or Stock Appreciation Right that is deemed to be granted shall
both be counted against the maximum number of shares for which Options or Stock Appreciation Rights may be granted to an employee during any calendar year as described in this Section 3. 
  

	 4.
	 ADMINISTRATION 

 4.1. Committee. 
 (a) In General. This Plan shall be administered by the compensation committee
(the “Committee”) appointed by the Board. The number of persons who shall constitute the Committee shall be determined from time to time by a majority of all the members of the Board; provided, however, that the Committee shall not
consist of fewer than two persons. 
 (b) Section 162(m). To the extent the Board desires to qualify Awards granted
under this Plan as “performance based compensation” within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more “outside directors” as defined in Treasury Regulation
1.162-27(e)(3). 
 (c) Rule 16b-3. To the extent desirable to qualify transactions under this Plan as exempt under Rule
16b-3, a Committee consisting solely of two or more “non-employee directors” as defined in Rule 16b-3, must approve such transactions. 
 4.2. Duration, Removal, Etc. The members of the Committee shall serve at the pleasure of the Board, which shall have the power, at any time and from time to time, to remove members from or add
members to the Committee. Removal from the Committee may be with or without cause. Any individual serving as a member of the Committee shall have the right to resign from the Committee by giving at least three days’ prior written
notice to the Board. The Board, and not the remaining members of the Committee, shall have the power and authority to fill vacancies on the Committee, however caused. The Board shall promptly fill any vacancy that causes the number of
members of the Committee to be fewer than two or any other minimum number required to comply with Rule 16b-3 or Section 162(m) of the Code, (unless the Board expressly determines not to have Awards under the Plan comply with Rule 16b-3 or
Section 162(m) of the Code, respectively). 
 4.3. Meetings and Actions of Committee. The Board shall
designate which of the Committee members shall be the chairperson of the Committee. If the Board fails to designate a chairperson for the Committee, the members of the Committee shall elect one of the Committee 

  

 7 

 
members as chairperson, who shall act as chairperson until he or she ceases to be a member of the Committee or until the Board (or the Committee) elects a
new chairperson. The Committee may make any rules and regulations for the conduct of its business that are not inconsistent with this Plan, the Articles of Incorporation, the Bylaws of the Company or Applicable Laws. 
 4.4. Committee’s Powers. Subject to the express provisions of this Plan, the Committee shall have the authority,
in its sole discretion: 
 (a) to grant Awards upon such terms and conditions (not inconsistent with the provisions of this
Plan), as the Committee may consider appropriate; 
 (b) to adopt, amend and rescind administrative and interpretive rules
and regulations relating to the Plan; 
 (c) to determine the eligible persons to whom, and the time or times at which,
Awards shall be granted; 
 (d) to determine the number of shares of Stock that shall be the subject of each Award;

 (e) to determine the terms and provisions of each Award Agreement (which need not be identical) and any amendments
thereto, including provisions defining or otherwise relating to: 
 (i) the period or periods and extent of exercisability
of any Option or Stock Appreciation Right; 
 (ii) the methods by which the exercise price of an Option may be paid, the
form of payment, including, without limitation, cash, Stock, or other property (including “cashless exercise” arrangements), and the methods by which Stock shall be delivered or deemed to be delivered to Participants; provided, however,
that if Stock is used to pay the exercise price of an Option, such Stock must have been held by the Participant for at least six months; 
 (iii) the extent to which the transferability of shares of Stock issued or transferred pursuant to any Award is restricted; 
 (iv) the effect of Employment Termination on an Award; and 
 (v) the
effect of approved leaves of absence; 
 (f) to accelerate the time of exercisability of any Option, Distribution Equivalent
Right, Stock Appreciation Right or Other Equity-Based Award; 
 (g) to construe the respective Award Agreements and the Plan;

 (h) to make determinations of the Fair Market Value of shares of Stock; 
 (i) to waive any provision, condition or limitation set forth in an Award Agreement; 
 (j) to delegate its duties under the Plan to such agents as it may appoint from time to time; provided, however, that the Committee may
not delegate its duties with respect to 

  

 8 

 
making or exercising discretion with respect to Awards to eligible persons if such delegation would cause Awards not to qualify for the exemptions provided
by Rule 16b-3 or Section 162(m) of the Code (unless the Board expressly determines not to have Awards under the Plan comply with Rule 16b-3 or Section 162(m) of the Code, respectively); and 
 (k) to make all other determinations, perform all other acts and exercise all other powers and authority necessary or advisable for
administering the Plan. 
 The Committee may discriminate among Participants and among Awards granted to a Participant in
exercising its discretion pursuant to this Plan. The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan, in any Award or in any Award Agreement in the manner and to the extent it deems necessary or
desirable to implement the Plan, and the Committee shall be the sole and final judge of that necessity or desirability. The determinations of the Committee on the matters referred to in this Section 4.4 shall be final and conclusive.

 4.5. Term of Plan. No Awards shall be granted under this Plan after 10 years from the Effective Date of
this Plan. 
  

	 5.
	 GRANT OF OPTIONS 

 5.1. Written Agreement. Each Option shall be evidenced by an Award Agreement. The Award Agreement shall specify whether each Option it evidences is an NQO or an ISO. 
 5.2. Annual $100,000 Limitation on ISOs. To the extent that the aggregate Fair Market Value of shares of Stock with
respect to which ISOs first become exercisable by a Participant in any calendar year exceeds $100,000, taking into account ISOs granted under this Plan and any other plan of the Company or any Related Corporation, the Options covering such
additional shares of Stock becoming exercisable in that year shall cease to be ISOs and thereafter be NQOs. For this purpose, the Fair Market Value of shares of Stock subject to Options shall be determined as of the date the Options were
granted. In reducing the number of Options treated as ISOs to meet this $100,000 limit, the most recently granted Options shall be reduced first. 
  

	 6.
	 CERTAIN TERMS AND CONDITIONS OF OPTIONS AND OTHER AWARDS 

 Each Option shall be designated as an ISO or an NQO and shall be subject to the terms and conditions set forth in Section 6.1. The Committee may provide for different terms and
conditions in any Award Agreement or amendment thereto as provided in Section 4.4 to the extent not inconsistent with the terms of the Plan. 
 6.1. All Awards. All Options and other Awards shall be subject to the following terms and conditions: 
 (a) Changes in Capital Structure. If the number of outstanding shares of Stock is increased or decreased by means of a nonreciprocal transaction between an entity and its shareholders that causes the per-share
Fair Market Value of the shares of Stock underlying an Award to change, such as a stock dividend, stock split, spinoff, rights offering, or recapitalization through a large, nonrecurring cash dividend, (each an “Equity Restructuring”)
then, from and after the record date for such Equity Restructuring, the number of shares of Stock and class of Stock subject to this Plan and each outstanding Award shall be adjusted in proportion to such 

  

 9 

 
increase or decrease in outstanding Stock and the then-applicable exercise price of each outstanding Award shall be correspondingly decreased or increased,
as applicable. 
 (b) Certain Corporate Transactions. In the case of any reclassification or change of outstanding Stock
issuable upon exercise of an outstanding Award or in the case of any consolidation or merger of the Company with or into another entity (other than a merger in which the Company is the surviving entity and which does not result in any
reclassification or change in the then-outstanding Stock) or in the case of any sale or conveyance to another entity of the property of the Company as an entirety or substantially as an entirety, in each case that is not an Equity Restructuring,
then, as a condition of such reclassification, change, consolidation, merger, sale or conveyance, the Company or such successor or purchasing entity, as the case may be, shall make lawful and adequate provision whereby the holder of each outstanding
Award shall thereafter have the right, on exercise of such Award, to receive the kind and amount of securities, property and/or cash receivable upon such reclassification, change, consolidation, merger, sale or conveyance by a holder of the number
of securities issuable upon exercise of such Award immediately before such reclassification, change, consolidation, merger, sale or conveyance. Such provision shall include adjustments that shall be as nearly equivalent as may be practicable to
the adjustments provided for in Section 6.1(a). Notwithstanding the foregoing, if such a transaction occurs, in lieu of causing such rights to be substituted for outstanding Awards, the Committee may, upon 20 days’ prior written
notice to Participants in its sole discretion: (i) shorten the period during which Awards are exercisable, provided they remain exercisable, to the extent otherwise exercisable, for at least 20 days after the date the notice is given, or
(ii) cancel an Award upon payment to the Participant in cash, with respect to each Award to the extent then exercisable, of an amount which, in the sole discretion of the Committee, is determined to be equivalent to the amount, if any, by which
the Fair Market Value (at the effective time of the transaction) of the consideration that the Participant would have received if the Award had been exercised before the effective time exceeds the exercise price of the Award. The actions
described in this Section 6.1(b) may be taken without regard to any resulting tax consequences to the Participant. 
 (c) Grant Date. Each Award Agreement shall specify the date as of which it shall be effective (the “Grant Date”), which shall not be earlier than the date on which the Committee has approved the terms and conditions of the
Award and has determined the recipient of the Award and the number of shares, if any, covered by the Award, and has taken all such other actions necessary to complete the grant of the Award. 
 (d) Time of Exercise; Vesting. Awards may, in the sole discretion of the Committee, be exercisable or may vest, and restrictions may
lapse, including without limitation, upon the achievement of any Performance Goals, if any, that may be established by the Committee as a condition to vesting or settlement of the Award, as the case may be, at such times and in such amounts as may
be specified by the Committee in the grant of the Award Performance Goals, if any, shall be established before twenty-five percent (25%) of the Performance Period has elapsed, but in no event later than within ninety (90) days after the
first day of a Performance Period. At the time any Performance Goals are established, the outcome as to whether the Performance Goals will be met must be substantially uncertain. If any Performance Goals are established as a condition to vesting or
settlement of an Award and such Performance Goal is not based solely on the increase in the Fair Market Value of the Stock, the Committee shall certify in writing that the applicable Performance Goals were in fact satisfied before such Award is
vested or settled, as applicable. To the extent an Award is subject to Performance Goals with the intent that the Award constitute performance-based compensation under Code Section 162(m), the Committee shall comply with all applicable
requirements under 

  

 10 

 
Code Section 162(m) and the rules and regulations promulgated thereunder in granting, modifying, and settling such Award. The Committee may, but is not
required to, structure any Award so as to qualify as performance-based compensation under Code Section 162(m) and may establish other performance criteria that do not qualify as Performance Goals hereunder. 
 (e) Nonassignability of Rights. Awards shall not be transferable other than with the consent of the Committee (which consent will
not be granted in the case of ISOs unless the conditions for transfer of ISOs specified in the Code have been satisfied) or by will or the laws of the descent and distribution. Awards requiring exercise shall be exercisable during the
Participant’s lifetime, only by the Participant; or in the event the Participant is disabled (within the meaning of Section 22(e)(3) of the Code), by the legal representative of the Participant; or in the event of death of the Participant,
by the legal representative of the Participant’s estate or if no legal representative has been appointed within ninety (90) days of the Participant’s death, by the person(s) taking under the laws of descent and distribution governing
the State in which the Participant was domiciled at the time of the Participant’s death; except to the extent that the Committee may provide otherwise as to any Awards other than Incentive Stock Options. 
 (f) Notice and Payment. To the extent it is exercisable, an Award shall be exercisable only by written or recorded electronic notice
of exercise, in the manner specified by the Committee from time to time, delivered to the Company or its designated agent during the term of the Award (the “Exercise Notice”). The Exercise Notice shall: (i) state the number of
shares of Stock with respect to which the Award is being exercised; (ii) be signed by the holder of the Award or by the person authorized to exercise the Award pursuant to Section 6.1(e); and (iii) include such other information,
instruments and documents as may be required to satisfy any other condition to exercise set forth in the Award Agreement. Except as provided below, payment in full, in cash or check, shall be made for all shares of Stock purchased at the time
notice of exercise of an Award is given to the Company. The proceeds of any payment shall constitute general funds of the Company. At the time an Award is granted or before it is exercised, the Committee, in the exercise of its sole
discretion, may authorize any one or more of the following additional methods of payment: 
 (i) for all Participants other
than officers of the Company and Directors, acceptance of each such Participant’s full recourse promissory note for some or all (to the extent permitted by law) of the exercise price of the Stock being acquired, payable on such terms and rate
of interest as determined by the Committee, and secured in such manner, if at all, as the Committee shall approve, including, without limitation, by a security interest in the Stock which are the subject of the Award or other securities; 

(ii) for all Participants, delivery by each such Participant of Stock already owned by such Participant for all or part of the
exercise price of the Award being exercised, provided that the Fair Market Value of such Stock is equal on the date of exercise to the exercise price of the Award being exercised, or such portion thereof as the Participant is authorized to pay and
elects to pay by delivery of such shares of Stock; 
 (iii) for all Participants, surrender by each such Participant, or
withholding by the Company from the Stock issuable upon exercise of the Award, of a number of shares of Stock subject to the Award being exercised with a Fair Market Value equal to some or all of the exercise price of the Stock being acquired,
together with such documentation as the Committee and the broker, if applicable, shall require; or 
  

 11 

 (iv) for all Participants, payment may be made pursuant to a cashless exercise
arrangement approved by the Committee. 
 (g) Termination of Employment from the Company, the Advisor or any Affiliate of the
Company; Removal of a Director for Cause. The Committee shall establish, in respect of each Award when granted, the effect of an Employment Termination on the rights and benefits thereunder and in so doing may, but need not, make distinctions
based upon the cause of termination (such as retirement, death, disability or other factors) or which party effected the termination (the employer or the Employee). All Awards granted to a Director whether or not an Employee will lapse on the
date the Director ceases to be a Director of the Company as a result of his removal for Cause. Notwithstanding any other provision in this Plan or the Award Agreement, the Committee may decide in its discretion at the time of any Employment
Termination (or within a reasonable time thereafter) to extend the exercise period of an Award (but not beyond the period specified in Section 6.2(b) or 6.3(b), as applicable) and not decrease the number of shares of Stock covered by the Award
with respect to which the Award is exercisable or vested. A transfer of a Participant from the Company to the Advisor or an Affiliate or vice versa, or from one Affiliate to another, or a leave of absence duly authorized by the Company, shall
not be deemed an Employment Termination or a break in continuous employment unless the Committee has provided otherwise. 
 (h) Other Provisions. Each Award Agreement may contain such other terms, provisions and conditions not inconsistent with this Plan, as may be determined by the Committee, and each ISO granted under this Plan shall include such
provisions and conditions as are necessary to qualify such Option as an “incentive stock option” within the meaning of Section 422 of the Code. 
 (i) Withholding and Employment Taxes. At the time of exercise of an Award, the lapse of restrictions on an Award, the Participant shall remit to the Company in cash all applicable Federal
and state withholding and employment taxes. If and to the extent authorized and approved by the Committee in its sole discretion, a Participant may elect, by means of a form of election to be prescribed by the Committee, to have shares of Stock
which are acquired upon exercise of an Award withheld by the Company or tender other shares of Stock owned by the Participant to the Company at the time that the amount of such taxes is determined, in order to pay the amount of such tax obligations,
subject to any limitations as the Committee determines are necessary or appropriate. Any shares of Stock so withheld or tendered shall be valued by the Company as of the date they are withheld or tendered. 
 (j) Employee Status. If the terms of any Award provides that it may be earned or exercised only during employment or continued
service or within a specified period of time after termination of employment or continued service, the Committee may decide to what extent leaves of absence for governmental or military service, illness, temporary disability or other reasons shall
not be deemed interruptions of continuous employment or service. 
 (k) Stockholder Rights. A Participant, as a result
of receiving an Award, shall not have any rights as a stockholder until, and then only to the extent that, the Award is earned and settled in shares of Common Stock. 
 6.2. Terms and Conditions to Which Only NQOs Are Subject. Options granted under this Plan which are designated as NQOs shall be subject to the following terms and conditions:

  

 12 

 (a) Exercise Price. The exercise price of an NQO shall be determined by the
Committee; provided, however, that the exercise price of an NQO shall not be less than the Fair Market Value of the Stock subject to the Option on the Grant Date. 
 (b) Option Term. Unless the Committee specifies an earlier expiration date at the Grant Date, each NQO shall expire 10 years after the Grant Date. 
 6.3. Terms and Conditions to Which Only ISOs Are Subject. Options granted under this Plan which are designated as
ISOs shall be subject to the following terms and conditions: 
 (a) Exercise Price. The exercise price of an ISO shall
be determined in accordance with the applicable provisions of the Code and shall in no event be less than the Fair Market Value of the Stock covered by the ISO at the Grant Date; provided, however, that the exercise price of an ISO granted to a Ten
Percent Stockholder shall not be less than 110% of such fair market value. 
 (b) Option Term. Unless an earlier
expiration date is specified by the Committee at the Grant Date, each ISO shall expire 10 years after the Grant Date; provided, however, that an ISO granted to a Ten Percent Stockholder shall expire no later than five years after the Grant Date.

 (c) Disqualifying Dispositions. If shares of Stock acquired by exercise of an ISO are disposed of within two years
after the Grant Date or within one year after the transfer of the Stock to the optionee, the holder of the Stock immediately before the disposition shall promptly notify the Company in writing of the date and terms of the disposition, shall provide
such other information regarding the disposition as the Company may reasonably require. 
 (d) Termination of
Employment. All vested ISOs must be exercised within three months of the Employment Termination of the optionee, or at any time specified in the Award Agreement that is otherwise permissible in the case of a Participant who dies while employed
or within three months of Employment Termination, unless such Employment Termination is due to the employee’s being disabled (within the meaning of Section 22(e)(3) of the Code), in which case the ISO shall be exercised within one year of
the Employment Termination; provided, however, that such time limits may be exceeded by the Committee under the terms of the Award, in which case, the ISO will be a NQO if it is exercised after the time limits that would otherwise apply. 

6.4. Surrender of Options. The Committee, acting in its sole discretion, may include a provision in an Award
Agreement allowing the optionee to surrender the Option covered by the agreement, in whole or in part in lieu of exercise in whole or in part, on any date that the Fair Market Value of the Stock subject to the Option exceeds the exercise price and
the Option is exercisable (to the extent being surrendered). The surrender shall be effected by the delivery of the Award Agreement, together with a signed statement which specifies the number of shares of Stock as to which the optionee is
surrendering the Option, together with a request for such type of payment. Upon such surrender, the optionee shall receive (subject to any limitations imposed by Rule 16b-3), at the election of the Committee, payment in cash or shares of Stock,
or a combination of the two, equal to (or equal in Fair Market Value to) the excess of the Fair Market Value of the shares of Stock covered by the portion of the Option being surrendered on the date of surrender over the exercise price for such
shares of Stock. The Committee, acting in its sole discretion, shall determine the form of payment, taking into account such factors as it 

  

 13 

 
deems appropriate. To the extent necessary to satisfy Applicable Laws, the Committee may terminate an optionee’s rights to receive payments in cash
for fractional shares of Stock. Any Award Agreement providing for such surrender privilege shall also incorporate such additional restrictions on the exercise or surrender of Options as may be necessary to satisfy Applicable Law. 
  

	 7.
	 RESTRICTED STOCK 

 Restricted Stock shall be subject to the following terms and conditions: 
 7.1.
Grant. The Committee may grant one or more Awards of Restricted Stock to any Participant. Each Award of Restricted Stock shall specify the number of shares of Stock to be issued to the Participant, the date of issuance and
the restrictions imposed on the shares of Stock including the conditions of release or lapse of such restrictions. Pending the lapse of restrictions, certificates evidencing Restricted Stock (if any) shall bear a legend referring to the
restrictions and shall be held by the Company. Prior to the issuance of any Restricted Stock, the Participant receiving such Restricted Stock shall pay to the Company an amount of cash equal to the exercise price of the Restricted Stock, if
any, specified by the Committee in the Award Agreement. Upon the issuance of Restricted Stock, the Participant may be required to furnish such additional documentation or other assurances as the Committee may require in order to enforce the
restrictions applicable thereto. 
 7.2. Restrictions. Except as specifically provided elsewhere in
this Plan or the Award Agreement regarding Restricted Stock, Restricted Stock may not be sold, assigned, transferred, pledged or otherwise disposed of or encumbered, either voluntarily or involuntarily, until the restrictions have lapsed and the
rights to the shares of Restricted Stock have vested. The Committee may in its sole discretion provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions, in whole or in part, based on service,
performance or such other factors or criteria as the Committee may determine. 
 7.3.
Distributions. Unless otherwise determined by the Committee, cash distributions with respect to Restricted Stock shall be paid to the recipient of the Award of Restricted Stock on the normal distribution payment dates, and
distributions payable in shares of Stock shall be paid in the form of Restricted Stock having the same terms as the Restricted Stock upon which such distribution is paid. Each Award Agreement for Awards of Restricted Stock shall specify whether
and, if so, the extent to which the Participant shall be obligated to return to the Company any cash distributions paid with respect to any shares of Restricted Stock which are subsequently forfeited. 
  

	 8.
	 STOCK APPRECIATION RIGHTS 

 The Committee may grant Stock Appreciation Rights to eligible persons. A Stock Appreciation Right shall entitle its holder to receive from the Company, at the time of exercise of the right, an amount in cash
equal to (or, at the Committee’s discretion, shares of Stock equal in Fair Market Value to) the excess of the Fair Market Value (at the date of exercise) of a share of Stock over a specified price fixed by the Committee in the governing Award
Agreement multiplied by the number of shares of Stock as to which the holder is exercising the Stock Appreciation Right. The specified price fixed by the Committee shall not be less than the Fair Market Value of the shares of Stock on the Grant
Date of the Stock Appreciation Right. Stock Appreciation Rights may be granted in tandem with any previously or contemporaneously granted Option or independent of any Option. The specified price of a tandem Stock 

  

 14 

 
Appreciation Right shall be the exercise price of the related Option. Any Stock Appreciation Rights granted in connection with an ISO shall contain such
terms as may be required to comply with Section 422 of the Code. 
  

	 9.
	 DISTRIBUTION EQUIVALENT RIGHTS 

 9.1. General. The Committee shall have the authority to grant Distribution Equivalent Rights to Participants upon such terms and conditions as it shall establish, subject in all events to the
following limitations and provisions of general application set forth in this Plan. Each Distribution Equivalent Right shall entitle a holder to receive, for a period of time to be determined by the Committee, a payment equal to the periodic
distributions declared and paid by the Company on one share of Stock. If the Distribution Equivalent Right relates to a specific Option, the period shall not extend beyond the earliest of the date the Option is exercised, the date any Stock
Appreciation Right related to the Option is exercised, or the expiration date set forth in the Option. To the extent the Committee deems advisable, it shall structure the Distribution Equivalent Rights such that they are either exempt from or
compliant with Code Section 409A. 
 9.2. Rights and Options. Each Distribution Equivalent
Right may relate to a specific Option granted under this Plan and may be granted to the optionee either concurrently with the grant of such Option or at such later time as determined by the Committee, or each Distribution Equivalent Right may be
granted independent of any Option. 
 9.3. Payments. The Committee shall determine at the time of
grant whether payment pursuant to a Distribution Equivalent Right shall be immediate or deferred and if immediate, the Company shall make payments pursuant to each Distribution Equivalent Right concurrently with the payment of the periodic
distributions to holders of Common Shares. If deferred, the payments shall not be made until a date or the occurrence of an event specified by the Committee and then shall be made within 30 days after the occurrence of the specified date or
event, unless the Distribution Equivalent Right is forfeited under the terms of the Plan or applicable Award Agreement; provided, however, that the Committee may not make payment of a Distribution Equivalent Right contingent upon the exercise of the
related Option or Stock Appreciation Right, to the extent the Committee desires to preserve such Option’s or Stock Appreciation Right’s exemption from Section 409A of the Code. The Committee shall also determine in its sole
discretion whether any portion of any payment shall be made in shares of Stock. 
  

	 10.
	 OTHER EQUITY-BASED AWARDS 

 10.1. Grant. The Committee may grant one or more Other Equity-Based Awards to any Participant. Each Award specify the number of shares of Common Stock or other equity interests covered
by such awards. 
 10.2. Terms and Conditions. The Committee, at the time an Other Equity-Based
Award is made, shall specify the terms and conditions which govern the award. The terms and conditions of an Other Equity-Based Award may prescribe that a Participant’s rights in the Other Equity-Based Award shall be forfeitable,
nontransferable or otherwise restricted for a period of time or subject to such other conditions as may be determined by the Committee, in its discretion and set forth in the Agreement. Other Equity-Based Awards may be granted to Participants,
either alone or in addition to other awards granted under the Plan, and Other Equity-Based Awards may be granted in the settlement of other Awards granted under the Plan. To the extent the Committee deems advisable, it shall structure such Other
Equity-Based Awards such that they are either exempt from or compliant with Code Section 409A. 
  

 15 

 10.3. Payment or Settlement. Other Equity-Based Awards valued
in whole or in part by reference to, or otherwise based on, shares of Common Stock, shall be payable or settled in shares of Common Stock, cash or a combination of Common Stock and cash, as determined by the Committee in its discretion. Other
Equity-Based Awards denominated as equity interests other than shares of Common Stock may be paid or settled in shares or units of such equity interests or cash or a combination of both as determined by the Committee in its discretion. 

 

	 11.
	 COMPLIANCE WITH LAWS 

 This Plan, the granting and vesting of Awards under this Plan, the issuance and delivery of Stock, and the payment of money or other consideration allowable under this Plan or under Awards awarded hereunder are
subject to compliance with all applicable federal and state laws, rules and regulations (including, but not limited to, state and federal securities laws and federal margin requirements) and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Committee, the Board or the Company, be necessary or advisable in connection therewith. Any securities delivered under this Plan shall be subject to such restrictions, and the
person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Committee, the Board or the Company may deem necessary or desirable to assure compliance with all applicable legal
requirements. To the extent permitted by applicable law, the Plan shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. Nothing in this Plan or in any Award or Award Agreement shall require the
Company to issue any Stock with respect to any Award if, in the opinion of counsel for the Company, that issuance could constitute a violation of any Applicable Laws. As a condition to the grant or exercise of any Award, the Company may require
the Participant (or, in the event of the Participant’s death, the Participant’s legal representatives, heirs, legatees or distributees) to provide written representations concerning the Participant’s (or such other person’s)
intentions with regard to the retention or disposition of the Stock covered by the Award and written covenants as to the manner of disposal of such Stock as may be necessary or useful to ensure that the grant, exercise or disposition thereof will
not violate the Securities Act, any other law or any rule of any applicable securities exchange or securities association then in effect. The Company shall not be required to register any Stock under the Securities Act or register or qualify
any Stock under any state or other securities laws. 
  

	 12.
	 EMPLOYMENT OR OTHER RELATIONSHIP 

 Nothing in this Plan or any Award shall in any way interfere with or limit the right of the Company, the Advisor or any Affiliate of the Company to terminate any Participant’s employment or status as a consultant
or Director at any time, nor confer upon any Participant any right to continue in the employ of, or as a Director or consultant of, the Company, the Advisor or any Affiliate of the Company. 
  

	 13.
	 AMENDMENT, SUSPENSION AND TERMINATION OF THIS PLAN 

 The Board may at any time amend, suspend or discontinue this Plan provided that such amendment, suspension or discontinuance meets the requirements of Applicable Laws, including without
limitation, the requirements for stockholder approval. Notwithstanding the above, an amendment, alteration, suspension or discontinuation shall not be made if it would impair the rights of any Participant under any Award previously granted,
without the Participant’s consent, except to conform this Plan and Awards granted to the requirements of Applicable Laws. 
  

 16 

	 14.
	 LIABILITY AND INDEMNIFICATION OF THE COMMITTEE 

 No person constituting, or member of the group constituting, the Committee shall be liable for any act or omission on such person’s part, including but not limited to the exercise of any
power or discretion given to such member under this Plan, except for those acts or omissions resulting from such member’s gross negligence or willful misconduct. The Company shall indemnify each present and future person constituting, or
member of the group constituting, the Committee against, and each person or member of the group constituting the Committee shall be entitled without further act on his or her part to indemnity from the Company for, all expenses (including the amount
of judgments and the amount of approved settlements made with a view to the curtailment of costs of litigation) reasonably incurred by such person in connection with or arising out of any action, suit or proceeding to the fullest extent permitted by
law and by the Articles of Incorporation and Bylaws of the Company. 
  

	 15.
	 SECURITIES LAW LEGENDS 

 Certificates of shares of Stock and Restricted Stock, if issued, may have the following legend and statements of other applicable restrictions endorsed thereon: 
  

	
	 THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE LAWS. THE SHARES MAY NOT BE
OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL THE HOLDER HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE ISSUER (WHICH, IN THE SOLE DISCRETION THE ISSUER, MAY INCLUDE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER) THAT
SUCH OFFER, SALE, PLEDGE, TRANSFER OR OTHER DISPOSITION WILL NOT VIOLATE ANY APPLICABLE FEDERAL OR STATE SECURITIES LAWS.

 This legend shall not be required for any shares of Stock issued pursuant to an
effective registration statement under the Securities Act. 
  

	 16.
	 SEVERABILITY 

 If any provision of this Plan is held to be illegal or invalid for any reason, that illegality or invalidity shall not affect the remaining portions of the Plan, but such provision shall be fully severable and the Plan shall be construed
and enforced as if the illegal or invalid provision had never been included in this Plan. Such an illegal or invalid provision shall be replaced by a revised provision that most nearly comports to the substance of the illegal or invalid
provision. If any of the terms or provisions of this Plan or any Award Agreement conflict with the requirements of Applicable Laws, those conflicting terms or provisions shall be deemed inoperative to the extent they conflict with Applicable
Law. 
  

 17 

	 17.
	 EFFECTIVE DATE 

 The effective date of this Plan is the earlier of the date this Plan was originally approved by the Company’s Board (            , 200  ) or the date
it was approved in that form by the holders of a majority of the Company’s voting stock (            , 200  ) (the “Effective Date”). 

 

	 18.
	 MISCELLANEOUS 

 18.1. Loans. An employer may, in its discretion, extend one or more loans to Employees in connection with the exercise or receipt of an Award granted under this Plan, to the extent not prohibited by law. The
terms and conditions of any such loan shall be set by the board of directors of the employer. 
 18.2.
Forfeiture Provisions. Pursuant to its general authority to determine the terms and conditions applicable to Awards granted under the Plan, the Committee shall have the right (to the extent consistent with the applicable exemptive
conditions of Rule 16b-3) to provide, in the terms of an Award Agreement, or by separate written instrument, that (i) any proceeds, gains or other economic benefit actually or constructively received by a Participant upon the receipt or
exercise of the Award, or upon the receipt or resale of any Stock underlying such Award, must be paid to the Company, and (ii) the Award shall terminate and any unexercised portion of such Award (whether or not vested) shall be forfeited, if
(a) Employment Termination occurs prior to a specified date, or within a specified time period following receipt or exercise of the Award, or (b) the Participant, at any time, or during a specified time period, engages in any activity in
competition with his employer or the Company, or which is inimical, contrary or harmful to the interests of his employer or the Company, as may be further defined from time to time by the Committee. 
 18.3. Limitations Applicable to Section 16. Notwithstanding any other provision of this Plan, this Plan,
and any Award granted to any individual who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any
amendment to Rule 16b-3) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

 18.4. Effect of Plan Upon Other Incentive and Compensation Plans. The adoption of this Plan
shall not affect any other options or compensation or incentive plans in effect for the Company. Nothing in this Plan shall be construed to limit the right of the Company (i) to establish any other forms of incentives or compensation for
employees of the Company, the Advisor or its Affiliates, or (ii) to grant or assume options or other rights or awards otherwise than under this Plan in connection with any proper corporate purpose including, but not by way of limitation, the
grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise of the business, stock or assets of any corporation, partnership, limited liability company, firm or association. 
  

 18 

 18.5. Section 83(b) Election Prohibited. No Participant
may make an election under Section 83(b) of the Code with respect to any Award granted under this Plan without the Company’s consent. Each Award for which an election under Section 83(b) of the Code could be made without regard to
this Section 18.5 shall, to the extent the Committee deems advisable, contain an acknowledgment by the Participant that such election may not be made without the Company’s consent. 
 [End of Plan.] 
  

 19

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