Document:

Energy Fuels Inc.: Exhibit 4.1 - Filed by newsfilecorp.com

ENERGY FUELS INC. 

2018 OMNIBUS EQUITY INCENTIVE COMPENSATION PLAN 

(as amended and restated as of March 29, 2018) 

TABLE OF CONTENTS 

	 	  	 
	 	  	  
	 	  	  
	ARTICLE 1.
      AMENDMENT AND RESTATEMENT, PURPOSE AND DURATION 	1
	 	  	  
	1.1 	Amendment
      and Restatement of the Plan 	1
	1.2 	Purpose of
      the Plan 	1
	1.3 	Duration
      of the Plan 	1
	1.4 	Successor
      Plan 	1
	 	  	  
	ARTICLE 2.
      DEFINITIONS 	 
	 	  	  
	ARTICLE 3.
      ADMINISTRATION 	6

	 	  	  
	3.1 	General 	6

	3.2 	Authority
      of the Committee 	6

	3.3 	Delegation 	6

	 	  	  
	ARTICLE 4.
      SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS 	6

	 	  	  
	4.1 	Number of
      Shares Available for Awards 	6

	4.2 	Adjustments in Authorized Shares 	7

	 	  	  
	ARTICLE 5.
      ELIGIBILITY AND PARTICIPATION 	7

	 	  	  
	5.1 	Eligibility 	7

	5.2 	Actual
      Participation 	7

	 	  	  
	ARTICLE 6.
      STOCK OPTIONS 	8

	 	  	  
	6.1 	Grant of
      Options 	8

	6.2 	Award
      Agreement 	8

	6.3 	Option
      Price 	8

	6.4 	Duration
      of Options 	8

	6.5 	Exercise
      of Options 	8

	6.6 	Payment 	8

	6.7 	Restrictions on Share Transferability 	8
	6.8 	Death,
      Retirement and Termination of Employment 	9

	6.9 	Nontransferability of Options 	10
  
	6.10 	Notification of Disqualifying Disposition 	10
  
	6.11 	$100,000
      Annual ISO Limitation 	10
	 	  	  
	ARTICLE 7.
      STOCK APPRECIATION RIGHTS 	11
	 	  	  
	7.1 	Grant of
      SARs 	11
	7.2 	SAR
      Agreement 	11
  
	7.3 	Term of
      SAR 	11
  
	7.4 	Exercise
      of Freestanding SARs 	11
  
	7.5 	Exercise
      of Tandem SARs 	11
  
	7.6 	Payment
      of SAR Amount 	11
  
	7.7 	Termination of Employment 	11
	7.8 	Nontransferability of SARs 	11
	7.9 	Other
      Restrictions 	11
  
	 	  	  
	ARTICLE 8.
      RESTRICTED STOCK AND RESTRICTED STOCK UNITS 	12
  
	 	  	  
	8.1 	Grant of
      Restricted Stock or Restricted Stock Units 	12
  
	8.2 	Restricted Stock or Restricted Stock Unit Agreement
      	12
  
	8.3 	Nontransferability of Restricted Stock and Restricted
      Stock Units 	12
  
	8.4 	Other
      Restrictions 	12
  

i 

	8.5
      	Certificate Legend 	12
	8.6
      	Voting Rights
      	13 
	8.7
      	Dividends
      and Other Distributions 	13
  
	8.8
      	Death and other
      Termination of Employment 	13 
	8.9
      	Payment
      in Settlement of Restricted Stock Units 	14
  
	 	  	  
	ARTICLE
      9. DEFERRED SHARE UNITS 	14
  
	 	  	  
	9.1
      	Grant of
      Deferred Share Units 	14
  
	9.2
      	Deferred Share Unit
      Agreement 	14 
	9.3
      	Nontransferability of Restricted Stock and Restricted
      Stock Units 	14
  
	9.4
      	Termination of
      Employment 	14 
	 	  	  
	ARTICLE
      10. PERFORMANCE SHARES AND PERFORMANCE UNITS 	14
	 	  	  
	10.1
      	Grant of Performance
      Shares and Performance Units 	14
	10.2
      	Value of
      Performance Shares and Performance Units 	14
	10.3
      	Earning of Performance
      Shares and Performance Units 	14
	10.4
      	Form and
      Timing of Payment of Performance Shares and Performance Units 	15
  
	10.5
      	Dividends and Other
      Distributions 	15 
	10.6
      	Termination of Employment 	15
  
	10.7
      	Nontransferability of
      Performance Shares and Performance Units 	15 
	 	  	  
	ARTICLE
      11. FULL VALUE STOCK-BASED AWARDS 	15 
	 	  	  
	11.1
      	Stock-Based Awards
      	15 
	11.2
      	Termination of Employment 	15
	11.3
      	Nontransferability of
      Stock-Based Awards 	15
	 	  	  
	ARTICLE
      12. BENEFICIARY DESIGNATION 	16 
	 	  	  
	ARTICLE
      13. DEFERRALS 	16 
	 	  	  
	ARTICLE
      14. RIGHTS OF PERSONS ELIGIBLE TO PARTICIPATE 	16 
	 	  	  
	14.1
      	Employment 	16 
	14.2
      	Participation 	16
	14.3
      	Rights as a
      Shareholder 	16
	 	  	  
	ARTICLE
      15. CHANGE OF CONTROL 	16
	 	  	  
	15.1 	Accelerated Vesting and
      Payment 	16
	15.2
      	Alternative Awards 	17
  
	15.3
      	Compliance with Section
      280G of the Code 	18 
	 	  	  
	ARTICLE
      16. AMENDMENT, MODIFICATION, SUSPENSION AND TERMINATION 	18 
	 	  	  
	16.1
      	Amendment, Modification,
      Suspension and Termination 	18 
	16.2
      	Adjustment of Awards Upon the Occurrence of Unusual or
      Nonrecurring Events 	19
  
	16.3
      	Awards Previously
      Granted 	19 
	 	  	  
	ARTICLE
      17. WITHHOLDING 	19 
	 	  	  
	ARTICLE
      18. SUCCESSORS 	19
	 	  	  
	ARTICLE
      19. GENERAL PROVISIONS 	19
	 	  	  
	19.1
      	Forfeiture Events
    	19
	19.2
      	Legend 	20
  
	19.3
      	Delivery of Title
    	20 
	19.4
      	Investment Representations 	20
  
	19.5
      	Uncertificated Shares
      	20 

ii 

	19.6
      	Unfunded Plan 	20
  
	19.7
      	No Fractional Shares
      	20
	19.8
      	Other
      Compensation and Benefit Plans 	20
	19.9
      	No Constraint on
      Corporate Action 	20
	19.10
      	Compliance with United States Securities Laws
    	20
  
	 	  	  
	ARTICLE
      20. LEGAL CONSTRUCTION 	21
  
	 	  	  
	20.1
      	Gender
      and Number 	21
  
	20.2
      	Severability 	21 
	20.3
      	Requirements of Law 	21
  
	20.4
      	Governing Law 	21 
	20.5
      	Compliance with Section 409A of the Code 	21
  

iii 

ENERGY FUELS INC.

2018 OMNIBUS EQUITY INCENTIVE COMPENSATION PLAN

ARTICLE 1.  AMENDMENT AND RESTATEMENT, PURPOSE AND DURATION 

1.1      Amendment
and Restatement of the Plan. The Company’s 2015 Omnibus Equity Incentive
Compensation Plan (the “2015 Plan”) was approved by the Company’s shareholders
on June 18, 2015 (the “Approval Date”). The 2015 Plan was subsequently amended
and restated by the Board as set forth herein (the “Plan”) on March 29, 2018
(the “Effective Date”), subject to approval by the Company’s shareholders and
the TSX. The Plan permits the grant of Nonqualified Stock Options, Incentive
Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock
Units, Deferred Stock Units, Performance Shares, Performance Units and
Stock-Based Awards. For the terms and conditions of the Plan applicable to an
Award, refer to the version of the Plan in effect as of the date such Award was
granted. 

1.2      Purpose
of the Plan. The purpose of the Plan is to promote the success and enhance
the value of the Company by linking the personal interests of the Participants
to those of the Company’s stockholders, and by providing Participants with an
incentive for outstanding performance. The Plan is further intended to provide
flexibility to the Company in its ability to attract, motivate and retain the
services of Participants upon whose judgment, interest and special effort the
success of the Company is substantially dependent. 

1.3      Duration
of the Plan. The Plan, as amended and restated, shall commence as of the
Effective Date, as described in Section 1.1 herein, and shall remain in effect,
subject to the right of the Committee or the Board to amend or terminate the
Plan at any time pursuant to Article 16 hereof, until the earlier of (i) the
tenth anniversary of the Approval Date, or (ii) all Shares subject to the Plan
have been purchased or acquired according to the Plan’s provisions. 

1.4      Successor
Plan. This Plan is the successor to the Company’s current Stock Option Plan,
(the “Predecessor Plan”), and no further awards have been made under the
Predecessor Plan from and after the Approval Date of this Plan. All outstanding
awards under the Predecessor Plan immediately prior to the Approval Date of this
Plan are hereby incorporated into this Plan and shall accordingly be treated as
Awards under this Plan. However, each such Award shall continue to be governed
solely by the terms and conditions of the instrument evidencing such grant or
issuance and, except as otherwise expressly provided herein or by the
Committee, no provision of this Plan shall affect or otherwise modify the rights
or obligations of holders of such incorporated awards. 

ARTICLE 2.  DEFINITIONS 

Whenever used in the Plan, the
following terms shall have the respective meanings set forth below, unless the
context clearly requires otherwise, and when such meaning is intended, such term
shall be capitalized. 

2.1      “Affiliate”
shall have the meaning ascribed to such term in the OSA. 

2.2      “Award”
means, individually or collectively, a grant under this Plan of NQSOs, ISOs,
SARs, Restricted Stock, Restricted Stock Units, Performance Shares, Performance
Units or Stock-Based Awards, in each case subject to the terms of this Plan.

2.3      “Award
Agreement” means either (i) a written agreement entered into by the Company
or an Affiliate of the Company and a Participant setting forth the terms and
provisions applicable to Awards granted under this Plan; or (ii) a written
statement issued by the Company or an Affiliate of the Company to a Participant
describing the terms and provisions of such Award. All Award Agreements shall be
deemed to incorporate the provisions of the Plan. An Award Agreement need not be
identical to other Award Agreements either in form or substance. 

2.4      “Beneficial
Ownership” shall have the meaning ascribed to such term in Section 90 of the
OSA. 

2.5     
“Blackout Period” means a period of time during which the Participant
cannot sell Shares, due to applicable law or policies of the Company in respect
of insider trading. 

1 

2.6      “Board”
or “Board of Directors” means the Board of Directors of the Company. 

2.7      “Change
of Control” shall occur if any of the following events occur: 

	 	(i) 	
      any transaction at any time and by whatever means
      pursuant to which (A) the Company goes out of existence by any means,
      except for any corporate transaction or reorganization in which the
      proportionate voting power among holders of securities of the entity
      resulting from such corporate transaction or reorganization is
      substantially the same as the proportionate voting power of such holders
      of Company voting securities immediately prior to such corporate
      transaction or reorganization or (B) any Person or any group of two or
      more Persons acting jointly or in concert (other than the Company, a
      wholly-owned Subsidiary of the Company, an employee benefit plan of the
      Company or of any of its wholly-owned Subsidiaries, including the trustee
      of any such plan acting as trustee) hereafter acquires the direct or
      indirect “beneficial ownership” (as defined by the Business
      Corporations Act (Ontario) of, or acquires the right to exercise
      control or direction over, securities of the Company representing 50% or
      more of the Company’s then issued and outstanding securities in any manner
      whatsoever, including, without limitation, as a result of a take-over bid,
      an exchange of securities, an amalgamation of the Company with any other
      entity, an arrangement, a capital reorganization or any other business
      combination or reorganization;

	 	 	 
	 	(ii) 	
      the sale, assignment or other transfer of all or
      substantially all of the assets of the Company to a Person other than a
      wholly-owned Subsidiary of the Company;

	 	 	 
	 	(iii) 	
      the dissolution or liquidation of the Company except in
      connection with the distribution of assets of the Company to one or more
      Persons which were wholly-owned Subsidiaries of the Company immediately
      prior to such event;

	 	 	 
	 	(iv) 	
      the occurrence of a transaction requiring approval of the
      Company’s shareholders whereby the Company is acquired through
      consolidation, merger, exchange of securities, purchase of assets,
      amalgamation, arrangement or otherwise by any other Person (other than a
      short form amalgamation or exchange of securities with a wholly-owned
      Subsidiary of the Company);

	 	 	 
	 	(v) 	
      a majority of the members of the Board of Directors of
      the Company are replaced or changed, as a result of or in connection with
      any: (A) take-over bid, consolidation, merger, exchange of securities,
      amalgamation, arrangement, capital reorganization or any other business
      combination or reorganization involving or relating to the Company; (B)
      sale, assignment or other transfer of all or substantially all of the
      assets of the Company in one or a series of transactions, or any purchase
      of assets; or (C) dissolution or liquidation of the Company;

	 	 	 
	 	(vi) 	
      during any two-year period, a majority of the members of
      the Board of Directors of the Company is replaced by directors who are not
      nominated and approved by the Board of Directors of the Company;

	 	 	 
	 	(vii) 	
      with respect to holders of any Award who are employed by
      a subsidiary of the Company, an event set forth in (i), (ii), (iii), (iv),
      or (v) has occurred with respect to such subsidiary (the “Employing
      Subsidiary”), in which case the term “Company” in those paragraphs will be
      read to mean “Employing Subsidiary” and the phrase “ wholly-owned
      Subsidiary(ies)” will be read to mean “ Affiliate(s) or wholly-owned
      Subsidiary(ies)”; or

	 	 	 
	 	(viii) 	
      the Board passes a resolution to the effect that, for the
      purposes of some or all of the Award Agreements, an event set forth in
      (i), (ii), (iii), (iv), (v), (vi) or (vii) above has
  occurred.

2

Notwithstanding the foregoing,
the Committee may modify the definition of a Change of Control for a particular
Award or Awards as the Committee deems appropriate to comply with Section 409A
of the Code. 

2.8      “Change
of Control Price” means the highest price per Share offered in conjunction
with any transaction resulting in a Change of Control (as determined in good
faith by the Committee if any part of the offered price is payable other than in
cash). In the case of a Change of Control occurring solely by reason of a change
in the composition of the Board, the highest Fair Market Value of the Shares on
any of the thirty (30) trading days immediately preceding the date on which a
Change of Control occurs, except if the relevant participant is subject to
taxation under the ITA such Change of Control price shall be deemed to be a
price determined by the Committee based on the closing price of a Share on the
TSX or the NYSE on the trading day preceding the Change of Control date or based
on the volume weighted average trading price of the Shares on the TSX and NYSE
for the five trading days immediately preceding the Change of Control date. 

2.9      “Code”
means the U.S. Internal Revenue Code of 1986, as amended from time to time, or
any successor thereto. 

2.10      “Committee”
means the Board of Directors, or, if so delegated in whole or in part by the
Board, the Compensation Committee, or any other duly authorized committee of the
Board appointed by the Board to administer the Plan.

2.11      “Company”
means Energy Fuels Inc., an Ontario corporation, and any successor thereto as
provided in Article 18 herein. 

2.12      “Constructively
Terminated” means, unless otherwise specified by the Committee in the Award
Agreement, a voluntary termination of employment by an Employee within ten (10)
business days after any of the following actions by the Company, an Affiliate,
or a person acting on behalf of either: 

	 	(i) 	
      Requiring the Employee to be based as his/her regular or
      customary place of employment at any office or location more than fifty
      (50) miles from the location at which the Employee performed his/her
      duties immediately prior to the Change of Control, or in a state or
      province other than the one in which the Employee performed his/her duties
      immediately prior to the Change of Control, in each case except for travel
      reasonably required in the performance of the individual’s
      responsibilities;

	 	 	 
	 	(ii) 	
      Materially reducing the Employee’s base salary below the
      rate in effect at the time of a Change of Control;

	 	 	 
	 	(iii) 	
      Failing to pay the Employee’s base salary, other wages or
      employment-related benefits as required by law; or

	 	 	 
	 	(iv) 	
      A material reduction or diminution in the level of
      responsibility, or office of the Employee, provided that before any claim
      of material reduction or diminution of responsibility may be relied upon
      by the Employee, the Employee must have provided written notice to the
      Employee’s supervisor and the Board of the alleged material reduction or
      diminution of responsibility and have given the Company or Affiliate, as
      the case may be, at least thirty (30) calendar days within which to cure
      the alleged material reduction or diminution of
  responsibility.

2.13      “Consultant”
means a Person that: 

	 	(i) 	
      is a natural person;

	 	 	 
	 	(ii) 	
      is engaged to provide services to the Company or an
      Affiliate other than services provided in relation to a distribution of
      securities of the Company or an Affiliate;

	 	 	 
	 	(iii) 	
      provides the services under a written contract with the
      Company or an Affiliate;

3

	 	(iv) 	
      spends or will spend a significant amount of time and
      attention on the affairs and business of the Company or an Affiliate;
      and

	 	 	 
	 	(v) 	
      provides bona fide services to the Company or its
      majority-owned subsidiaries and such services are not in connection with
      the offer or sale of securities in a capital-raising transaction, and do
      not directly or indirectly promote or maintain a market for the Company’s
      securities.

2.14      “Deferred
Share Unit” means an Award denominated in units that provides the holder
thereof with a right to receive Shares or cash or a combination thereof upon
settlement of the Award, granted under Article 9 herein and subject to the terms
of this Plan. 

2.15     
“Director” means any individual who is a member of the Board of Directors
of the Company. 

2.16      “Dividend
Equivalent” means a right with respect to an Award to receive cash, Shares
or other property equal in value and form to dividends declared by the Board and
paid with respect to outstanding Shares. Dividend Equivalents shall not apply to
an Award unless specifically provided for in the Award Agreement, and if
specifically provided for in the Award Agreement shall be subject to such terms
and conditions set forth in the Award Agreement as the Committee shall
determine. 

2.17      “Employee”
means any employee of the Company or an Affiliate. Directors who are not
otherwise employed by the Company or an Affiliate shall not be considered
Employees under this Plan. 

2.18      “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor act thereto. 

2.19      “Fair
Market Value” or “FMV” means, unless otherwise required by any
applicable provision of the Code or any regulations thereunder or by any
applicable accounting standard for the Company’s desired accounting for Awards
or by the rules of the NYSE or the TSX, a price that is determined by the
Committee, provided that such price cannot be less than the greater of (a) the
volume weighted average trading price of the Shares on the TSX or the NYSE for
the five trading days immediately prior to the grant date or (b) the closing
price of the Shares on the TSX or the NYSE on the trading day immediately prior
to the grant date. 

2.20      “Fiscal
Year” means the Company’s fiscal year commencing on January 1 and ending on
December 31 or such other fiscal year as approved by the Board. 

2.21      “Freestanding
SAR” means a SAR that is not a Tandem SAR, as described in Article 7 herein.

2.22      “Grant
Price” means the price against which the amount payable is determined upon
exercise of an SAR. 

2.23       “Incentive Stock
Option” or “ISO” means an Option to purchase Shares granted under
Article 6 herein and that is designated as an Incentive Stock Option and is
intended to meet the requirements of Section 422 of the Code, or any successor
provision. 

2.24      “ITA”
means the Income Tax Act (Canada). 

2.25      “Non-Employee
Director” means a Director who is not an Employee. 

2.26      “Nonqualified
Stock Option” or “NQSO” means an Option to purchase Shares, granted
under Article 6 herein, which is not intended to be an Incentive Stock Option or
that otherwise does not meet the requirements for treatment as an Incentive
Stock Option under Section 422 of the Code, or any successor provision. 

2.27      “NYSE”
means the NYSE American LLC. 

4 

2.28      “Option”
means the conditional right to purchase Shares at a stated Option Price for a
specified period of time in the form of an Incentive Stock Option or a
Nonqualified Stock Option subject to the terms of this Plan. 

2.29      “Option
Price” means the price at which a Share may be purchased by a Participant
pursuant to an Option, as determined by the Committee. 

2.30      “OSA”
means the Securities Act (Ontario), as may be amended from time to time.

2.31     
“Participant” means an Employee, Non-Employee Director or Consultant who
has been selected to receive an Award, or who has an outstanding Award granted
under the Plan. 

2.32      “Performance
Goal” means a performance criterion selected by the Committee for a given
Award for purposes of Article 11 based on one or more performance measures. 

2.33      “Performance
Period” means the period of time during which the assigned performance
criteria must be met in order to determine the degree of payout and/or vesting
with respect to an Award. 

2.34      “Performance
Share” means an Award granted under Article 10 herein and subject to the
terms of this Plan, denominated in Shares, the value of which at the time it is
payable is determined as a function of the extent to which corresponding
performance criteria have been achieved. 

2.35     
“Performance Unit” means an Award granted under Article 10 herein and
subject to the terms of this Plan, denominated in units, the value of which at
the time it is payable is determined as a function of the extent to which
corresponding performance criteria have been achieved. 

2.36      “Period
of Restriction” means the period when an Award of Restricted Stock or
Restricted Stock Units is subject to forfeiture based on the passage of time,
the achievement of performance criteria, and/or upon the occurrence of other
events as determined by the Committee, in its discretion. 

2.37     
“Person” shall have the meaning ascribed to such term in Section 3(a)(9)
of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d) thereof; provided, however, that “Person”
shall not include (i) the Company or any Affiliate, or (ii) any employee benefit
plan (including an employee stock ownership plan) sponsored by the Company or
any Affiliate. 

2.38      “Restricted
Stock” means an Award of Shares subject to a Period of Restriction, granted
under Article 8 herein and subject to the terms of this Plan. 

2.39     
“Restricted Stock Unit” means an Award denominated in units subject to a
Period of Restriction, with a right to receive Shares or cash or a combination
thereof upon settlement of the Award, granted under Article 8 herein and subject
to the terms of this Plan. 

2.40      “Shares”
means common shares of the Company. 

2.41      “Significant
Stockholder” means a person who at the time of a grant of an ISO to such
person owns (or is deemed to own pursuant to Section 424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of all
classes of shares of the Company or any of its Affiliates. 

2.42      “Stock
Appreciation Right” or “SAR” means the conditional right to receive
the difference between the FMV of a Share on the date of exercise over the Grant
Price, pursuant to the terms of Article 7 herein and subject to the terms of
this Plan. 

2.43      “Stock-Based
Award” means an equity-based or equity-related Award granted under Article
11 herein and subject to the terms of this Plan, and not otherwise described by
the terms of this Plan. 

5 

2.44      “Tandem
SAR” means a SAR that the Committee specifies is granted in connection with
a related Option pursuant to Article 7 herein and subject to the terms of this
Plan, the exercise of which shall require forfeiture of the right to purchase a
Share under the related Option (and when a Share is purchased under the Option,
the Tandem SAR shall similarly be cancelled) or a SAR that is granted in tandem
with an Option but the exercise of such Option does not cancel the SAR, but
rather results in the exercise of the related SAR. Regardless of whether an
Option is granted coincident with a SAR, a SAR is not a Tandem SAR unless so
specified by the Committee at the time of grant. 

2.45      “TSX”
means the Toronto Stock Exchange. 

2.46      “Voting
Power” shall mean such number of Voting Securities as shall enable the
holders thereof to cast all the votes which could be cast in an annual election
of directors of a company.

2.47      “Voting
Securities” shall mean all securities entitling the holders thereof to vote
in an annual election of directors of a company. 

ARTICLE 3.  ADMINISTRATION 

3.1      General.
The Committee shall be responsible for administering the Plan. The Committee may
employ attorneys, consultants, accountants, agents and other individuals, any of
whom may be an Employee, and the Committee, the Company, and its officers and
Directors shall be entitled to rely upon the advice, opinions or valuations of
any such persons. All actions taken and all interpretations and determinations
made by the Committee shall be final, conclusive and binding upon the
Participants, the Company, and all other interested parties. 

3.2     
Authority of the Committee. The Committee shall have full and exclusive
discretionary power to interpret the terms and the intent of the Plan and any
Award Agreement or other agreement ancillary to or in connection with the Plan,
to determine eligibility for Awards, and to adopt such rules, regulations and
guidelines for administering the Plan as the Committee may deem necessary or
proper. Such authority shall include, but not be limited to, selecting Award
recipients, establishing all Award terms and conditions, including grant and
exercise price, and vesting terms and, subject to Article 16, adopting
modifications and amendments, or sub-plans to the Plan or any Award Agreement,
including, without limitation, any that are necessary or appropriate to comply
with the laws or compensation practices of the jurisdictions in which the
Company and Affiliates operate. 

3.3      Delegation.
The Committee may delegate to one or more of its members any of the Committee’s
administrative duties or powers as it may deem advisable; provided, however,
that any such delegation shall not be inconsistent with the provisions of Rule
16b-3 under the Exchange Act as to actions to be taken by the Committee in
connection therewith, and must be permitted under applicable corporate law. 

ARTICLE 4.  SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS 

4.1      Number
of Shares Available for Awards. Subject to adjustment as provided in Section
4.2 herein, the number of Shares hereby reserved for issuance to Participants
under the Plan shall not exceed the number which represents 10% of the issued
and outstanding Shares from time to time (the “Total Share Authorization”).
Subject to applicable law, the requirements of the TSX or the NYSE and any
shareholder or other approval which may be required, the Board may in its
discretion amend the Plan to increase such limit without notice to any
Participants. 

	 	(a) 	
      The number of Shares reserved for issue to Insiders
      pursuant to this Plan, together with Shares reserved for issue to Insiders
      under any other existing share compensation arrangement of the Company,
      shall not exceed 10% of the aggregate outstanding Shares of the Company.
      Within any one-year period, the number of Shares issued to Insiders
      pursuant to this Plan and all other existing share compensation
      arrangement of the Company shall not exceed 10% of the aggregate
      outstanding Shares of the Company. If the number of Shares shall be
      increased or decreased as a result of a stock split, consolidation
      reclassification or recapitalization and not as a result of the issuance
      of Shares for additional consideration or by way of a stock dividend in
      the ordinary course, the Company may make appropriate adjustments to the
      maximum number of Shares which may be issued from the treasury of the
      Company under the Plan.

6 

	 	(b) 	
      For greater clarity, any Awards that are not settled in
      Shares shall not reduce any of these reserves. Any Shares related to
      Awards (or, after the Approval Date, awards granted under the Predecessor
      Plan) which (i) terminate by expiration, forfeiture, cancellation or
      otherwise without the issuance of such Shares, (ii) are settled in cash
      either in lieu of Shares or otherwise, or (iii) are exchanged with the
      Committee’s approval for Awards not involving Shares, shall be available
      again for issuance under the Plan. The maximum number of Shares available
      for issuance under the Plan shall not be reduced to reflect any dividends
      or Dividend Equivalents that are reinvested into additional Shares or
      credited as additional Restricted Stock, Restricted Stock Units,
      Performance Shares or Stock-Based Awards. The Shares available for
      issuance under the Plan may be authorized and unissued Shares or treasury
      Shares.

4.2      Adjustments
in Authorized Shares. In the event of any corporate event or transaction
(collectively, a “Corporate Reorganization”) (including, but not limited
to, a change in the Shares of the Company or the capitalization of the Company)
such as a merger, arrangement, amalgamation, consolidation, reorganization,
recapitalization, separation, stock dividend, extraordinary dividend, stock
split, reverse stock split, split up, spin-off or other distribution of stock or
property of the Company, combination of securities, exchange of securities,
dividend in kind, or other like change in capital structure or distribution
(other than normal cash dividends) to stockholders of the Company, or any
similar corporate event or transaction, the Committee shall make or provide for
such adjustments or substitutions, as applicable, in the number and kind of
Shares that may be issued under the Plan, the number and kind of Shares subject
to outstanding Awards, the Option Price or Grant Price applicable to outstanding
Awards, the Award Limits, the limit on issuing Awards other than Options granted
with an Option Price equal to at least the FMV of a Share on the date of grant
or Stock Appreciation Rights with a Grant Price equal to at least the FMV of a
Share on the date of grant, and any other value determinations applicable to
outstanding Awards or to this Plan, as are equitably necessary to prevent
dilution or enlargement of Participants’ rights under the Plan that otherwise
would result from such corporate event or transaction. In connection with a
Corporate Reorganization, the Committee shall have the discretion to permit a
holder of Options to purchase (at the times, for the consideration, and subject
to the terms and conditions set out in this Plan) and the holder will then
accept on the exercise of such Option, in lieu of the Shares that such holder
would otherwise have been entitled to purchase, the kind and amount of shares or
other securities or property that such holder would have been entitled to
receive as a result of the Corporate Reorganization if, on the effective date
thereof, that holder had owned all Shares that were subject to the Option. Such
adjustments shall be made automatically, without the necessity of Committee
action, on the customary arithmetical basis in the case of any stock split,
including a stock split effected by means of a stock dividend, and in the case
of any other dividend paid in Shares. 

The Committee shall also make
appropriate adjustments in the terms of any Awards under the Plan as are
equitably necessary to reflect such corporate event or transaction and may
modify any other terms of outstanding Awards, including modifications of
performance criteria and changes in the length of Performance Periods. The
determination of the Committee as to the foregoing adjustments, if any, shall be
conclusive and binding on Participants under the Plan., provided that any such
adjustments must comply with Section 409A of the Code with respect to any U.S.
Participants. 

Subject to the provisions of
Article 14 and any applicable law or regulatory requirement, without affecting
the number of Shares reserved or available hereunder, the Committee may
authorize the issuance, assumption, substitution or conversion of Awards under
this Plan in connection with any such corporate event or transaction, upon such
terms and conditions as it may deem appropriate. Additionally, the Committee may
amend the Plan, or adopt supplements to the Plan, in such manner as it deems
appropriate to provide for such issuance, assumption, substitution or conversion
as provided in the previous sentence. 

ARTICLE 5.  ELIGIBILITY AND PARTICIPATION 

5.1      Eligibility.
Individuals eligible to participate in the Plan include all Employees,
Non-Employee Directors and Consultants. 

5.2      Actual
Participation. Subject to the provisions of the Plan, the Committee may, from
time to time, in its sole discretion select from among eligible Employees,
Non-Employee Directors and Consultants, those to whom Awards shall be granted
under the Plan, and shall determine in its discretion the nature, terms,
conditions and amount of each Award. 

7 

ARTICLE 6.  STOCK OPTIONS 

6.1      Grant
of Options. Subject to the terms and provisions of the Plan, Options may be
granted to Participants in such number, and upon such terms, and at any time and
from time to time as shall be determined by the Committee in its discretion.
ISOs may be granted only to Employees of the Company or a parent or subsidiary
corporation of the Company within the meaning of Section 424 of the Code, and no
ISOs may be granted more than ten (10) years after the Approval Date.
Notwithstanding Section 4.1 of the Plan, the maximum number of Shares issuable
upon the exercise of ISOs is 7,670,029. 

6.2     
Award Agreement. Each Option grant shall be evidenced by an Award
Agreement that shall specify the Option Price, the duration of the Option, the
number of Shares to which the Option pertains, the conditions upon which an
Option shall become vested and exercisable, and any such other provisions as the
Committee shall determine. The Award Agreement shall also specify whether the
Option is intended to be an ISO or a NQSO. 

6.3      Option
Price. The Option Price for each grant of an Option under this Plan shall be
determined by the Committee and shall be specified in the Award Agreement. The
Option Price for an Option shall be not less than the FMV of the Shares on the
date of grant; provided, however, that the Option Price for an ISO granted to a
Significant Stockholder shall be not less than one hundred ten percent (110%) of
the FMV of the Shares on the date of grant. 

6.4      Duration
of Options. Each Option granted to a Participant shall expire at such time as
the Committee shall determine at the time of grant; provided, however, that no
Option shall be exercisable later than the tenth (10th) anniversary date of its
grant, and provided further that no ISO granted to a Significant Stockholder
shall be exercisable after the expiration of five (5) years from the date of
grant. Notwithstanding the foregoing, the expiry date of any NQSO shall be
extended to the tenth business day following the last day of a Blackout Period
if the expiry date would otherwise occur in a Blackout Period or within five
days of the end of the Blackout Period. 

6.5      Exercise
of Options. Options granted under this Article 6 shall be exercisable at
such times and on the occurrence of such events, and be subject to such
restrictions and conditions, as the Committee shall in each instance approve,
which need not be the same for each grant or for each Participant. 

6.6      Payment.
Options granted under this Article 6 shall be exercised by the delivery of a
notice of exercise to the Company or an agent designated by the Company in a
form specified or accepted by the Committee, or by complying with any
alternative procedures which may be authorized by the Committee, setting forth
the number of Shares with respect to which the Option is to be exercised,
accompanied by full payment for the Shares. 

The Option Price upon exercise of
any Option shall be payable to the Company in full either: (a) in cash,
certified cheque or wire transfer; or (b) by any other method approved or
accepted by the Committee in its sole discretion subject to the rules of the TSX
and NYSE, as applicable and such rules and regulations as the Committee may
establish.

Subject to Section 6.7 and any
governing rules or regulations, as soon as practicable after receipt of a
notification of exercise and full payment for the Shares, the Shares in respect
of which the Option has been exercised shall be issued as fully-paid and
non-assessable shares of the Company. As of the business day the Company
receives such notice and such payment, the Participant (or the person claiming
through him, as the case may be) shall be entitled to be entered on the share
register of the Company as the holder of the number of Shares in respect of
which the Option was exercised and to receive as promptly as possible thereafter
a certificate or evidence of book entry representing the said number of Shares.
The Company shall cause to be delivered to the Participant Share certificates or
evidence of book entry Shares in an appropriate amount based upon the number of
Shares purchased under the Option(s), but in any event, on or before the
15th day of the third month of the year following the year in which
the Option was exercised. 

6.7      Restrictions
on Share Transferability. The Committee may impose such restrictions on any
Shares acquired pursuant to the exercise of an Option granted pursuant to this
Plan as it may deem advisable, including, without limitation, requiring the Participant to
hold the Shares acquired pursuant to exercise for a specified period of time, or
restrictions under applicable laws or under the requirements of any stock
exchange or market upon which such Shares are listed and/or traded. 

8

6.8      Death,
Retirement and Termination of Employment.

	 	(a) 	
      Death: If a Participant dies while an Employee, officer
      or director of or Consultant to the Company or an
  Affiliate:

	 	(i) 	
      the executor or administrator of the Participant’s estate
      may exercise Options of the Participant equal to the number of Options
      that were exercisable at the Termination Date (as defined
below);

	 	 	 
	 	(ii) 	
      the right to exercise such Options terminates on the
      earlier of: (i) the date that is 12 months after the Termination Date; and
      (ii) the date on which the exercise period of the particular Option
      expires. Any Options held by the Participant that are not yet vested at
      the Termination Date immediately expire and are cancelled and forfeited to
      the Company on the Termination Date; and

	 	 	 
	 	(iii) 	
      such Participant’s eligibility to receive further grants
      of Options under the Plan ceases as of the Termination
  Date.

	 	(b) 	
      Retirement: If a Participant voluntarily retires
    then:

	 	(i) 	
      any Options held by the Participant that are exercisable
      at the Termination Date continue to be exercisable by the Participant
      until the earlier of: (i) the date that is six months after the
      Termination Date, provided that if an ISO is exercised after the date that
      is three months from the Termination Date, then such Option shall no
      longer be considered to be an ISO; and (ii) the date on which the exercise
      period of the particular Option expires. Any Options held by the
      Participant that are not yet vested at the Termination Date immediately
      expire and are cancelled and forfeited to the Company on the Termination
      Date,

	 	 	 
	 	(ii) 	
      the eligibility of a Participant to receive further
      grants under the Plan ceases as of the date that the Company or an
      Affiliate, as the case may be, provides the Participant with written
      notification that the Participant’s employment or term of office or
      engagement, is terminated, notwithstanding that such date may be prior to
      the Termination Date, and

	 	 	 
	 	(iii) 	
      notwithstanding (b)(i) and (ii) above, unless the
      Committee, in its sole discretion, otherwise determines, at any time and
      from time to time, Options are not affected by a change of employment
      arrangement within or among the Company or an Affiliate for so long as the
      Participant continues to be an employee of the Company or an
    Affiliate.

	 	(c) 	
      Termination of Employment: Where a Participant’s
      employment or term of office or engagement terminates (for any reason
      other than death or voluntary retirement (whether such termination occurs
      with or without any or adequate notice or reasonable notice, or with or
      without any or adequate compensation in lieu of such notice)),
  then:

	 	(i) 	
      any Options held by the Participant that are exercisable
      at the Termination Date continue to be exercisable by the Participant
      until the earlier of: (i) the date that is three months after the
      Termination Date; and (ii) the date on which the exercise period of the
      particular Option expires. Any Options held by the Participant that are
      not yet vested at the Termination Date immediately expire and are
      cancelled and forfeited to the Company on the Termination Date,

	 	 	 
	 	(ii) 	
      the eligibility of a Participant to receive further
      grants under the Plan ceases as of the date that the Company or an
      Affiliate, as the case may be, provides the Participant
  with written notification that the Participant’s employment or term
of office or engagement, is terminated, notwithstanding that such date may be
prior to the Termination Date, and 

9 

	 	(iii) 	
      notwithstanding (c)(i) and (ii) above, unless the
      Committee, in its sole discretion, otherwise determines, at any time and
      from time to time, Options are not affected by a change of employment
      arrangement within or among the Company or an Affiliate for so long as the
      Participant continues to be an employee of the Company or an
    Affiliate.

	 	(d) 	
      For purposes of section 6.8, the term, “Termination Date”
      means, in the case of a Participant whose employment or term of office or
      engagement with the Company or an Affiliate
terminates:

	 	(i) 	
      by reason of the Participant’s death, the date of
      death;

	 	 	 
	 	(ii) 	
      for any reason whatsoever other than death, the date of
      the Participant’s last day actively at work for or actively engaged by the
      Company or the Affiliate, as the case may be; and for greater certainty
      “Termination Date” in any such case specifically does not mean the date on
      which any period of contractual notice or reasonable notice that the
      Company or the Affiliate, as the case may be, may be required at law to
      provide to a Participant would expire; and

	 	 	 
	 	(iii) 	
      the resignation of a director or the expiry of a
      director’s term on the Board without re- election (or nomination for
      election) shall be considered to be a termination of his or her term of
      office.

6.9      Nontransferability
of Options.

	 	(a) 	
      Incentive Stock Options. No ISO granted under the
      Plan may be sold, transferred, pledged, assigned or otherwise alienated or
      hypothecated, other than by will or by the laws of descent and
      distribution. Further, all ISOs granted to a Participant under this
      Article 6 shall be exercisable during such Participant’s lifetime only by
      such Participant.

	 	 	 
	 	(b) 	
      Nonqualified Stock Options. Except as otherwise
      provided in a Participant’s Award Agreement at the time of grant or
      thereafter by the Committee, a NQSO granted under this Article 6 may not
      be sold, transferred, pledged, assigned, or otherwise alienated or
      hypothecated, other than by will or by the laws of descent and
      distribution. Further, except as otherwise provided in a Participant’s
      Award Agreement at the time of grant or thereafter by the Committee, all
      NQSOs granted to a Participant under this Article 6 shall be exercisable
      during such Participant’s lifetime only by such
  Participant.

6.10      Notification
of Disqualifying Disposition. The Participant to whom an ISO is granted
shall notify the Company upon the disposition of Shares issued pursuant to the
exercise of an ISO or Shares received as a dividend on ISO stock. The Company
shall use such information to determine whether a disqualifying disposition as
described in Section 421(b) of the Code has occurred. 

6.11      $100,000
Annual ISO Limitation. To the extent that the aggregate FMV of Shares
(determined as of the time the ISOs with respect to such Shares are granted)
with respect to which ISOs are exercisable for the first time by any Participant
during any calendar year (under this Plan and all other plans of the Company and
any Affiliate) exceeds $100,000 (or such other amount as may be allowed under
Section 422 of the Code), such ISOs shall be treated as NQSOs. The foregoing
provisions shall be applied by taking ISOs into account in the order in which
they were granted. 

10 

ARTICLE 7.  STOCK APPRECIATION RIGHTS 

7.1      Grant
of SARs. Subject to the terms and conditions of the Plan, SARs may be
granted to Participants at any time and from time to time and upon such terms as
shall be determined by the Committee in its discretion. The Committee may grant
Freestanding SARs, Tandem SARs, or any combination of these forms of SARs. 

The SAR Grant Price for each
grant of a Freestanding SAR shall be determined by the Committee and shall be
specified in the Award Agreement. The SAR Grant Price may include a Grant Price
based on one hundred percent (100%) of the FMV of the Shares on the date of
grant, a Grant Price that is set at a premium to the FMV of the Shares on the
date of grant, or is indexed to the FMV of the Shares on the date of grant, with
the index determined by the Committee, in its discretion, provided that the
Grant Price may never be less than the FMV of the Shares on the date of Grant.
The Grant Price of Tandem SARs shall be equal to the Option Price of the related
Option. 

7.2      SAR
Agreement. Each SAR Award shall be evidenced by an Award Agreement that
shall specify the Grant Price, the term of the SAR, and any such other
provisions as the Committee shall determine. 

7.3     
Term of SAR. The term of an SAR granted under the Plan shall be
determined by the Committee, in its sole discretion, and except as determined
otherwise by the Committee and specified in the SAR Award Agreement, no SAR
shall be exercisable later than the tenth (10th) anniversary date of its
grant.

7.4     
Exercise of Freestanding SARs. Freestanding SARs may be exercised upon
whatever terms and conditions the Committee, in its sole discretion, imposes.

7.5      Exercise
of Tandem SARs. With respect to Participants who are not subject to taxation
under the ITA, Tandem SARs may be exercised for all or part of the Shares
subject to the related Option upon the surrender of the right to exercise the
equivalent portion of the related Option. With respect to Participants subject
to taxation under the ITA, prior to exercising a Tandem SAR the Participant must
elect to receive the Tandem SAR in consideration for the disposition of that
Participant’s right to receive shares under the Option. A Tandem SAR may be
exercised only with respect to the Shares for which its related Option is then
exercisable.

Notwithstanding any other
provision of this Plan to the contrary, with respect to a Tandem SAR granted in
connection with an ISO: (a) the Tandem SAR will expire no later than the
expiration of the underlying ISO; (b) the value of the payout with respect to
the Tandem SAR may be for no more than one hundred percent (100%) of the
difference between the Option Price of the underlying ISO and the FMV of the
Shares subject to the underlying ISO at the time the Tandem SAR is exercised;
and (c) the Tandem SAR may be exercised only when the FMV of the Shares subject
to the ISO exceeds the Option Price of the ISO. 

7.6      Payment
of SAR Amount. Upon the exercise of an SAR, a Participant shall be entitled
to receive payment from the Company in an amount representing the difference
between the FMV of the underlying Shares on the date of exercise over the Grant
Price. At the discretion of the Committee, the payment upon SAR exercise may be
in cash, Shares of equivalent value (based on the FMV on the date of exercise of
the SAR, as defined in the Award Agreement or otherwise defined by the Committee
thereafter), in some combination thereof, or in any other form approved by the
Committee at its sole discretion. Payment shall be made no earlier than the date
of exercise, nor later than 2-1/2 months after the close of the year in which the
SAR is exercised. The Committee’s determination regarding the form of SAR payout
shall be set forth or reserved for later determination in the Award Agreement
for the grant of the SAR. 

7.7     
Termination of Employment. Each Award Agreement shall set forth the extent
to which the Participant shall have the right to exercise the SAR following
termination of the Participant’s employment or other relationship with the
Company or Affiliates. Such provisions shall be determined in the sole
discretion of the Committee, need not be uniform among all SARs issued pursuant
to the Plan, and may reflect distinctions based on the reasons for
termination.

7.8      Nontransferability
of SARs. Except as otherwise provided in a Participant’s Award Agreement at
the time of grant or thereafter by the Committee, an SAR granted under the Plan
may not be sold, transferred, pledged, assigned or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution.
Further, except as otherwise provided in a Participant’s Award Agreement at the
time of grant or thereafter by the Committee, all SARs granted to a Participant
under the Plan shall be exercisable during such Participant’s lifetime only by
such Participant. 

7.9      Other
Restrictions. Without limiting the generality of any other provision of this
Plan, the Committee may impose such other conditions and/or restrictions on any
Shares received upon exercise of an SAR granted pursuant to the Plan as it may
deem advisable. This includes, but is not limited to, requiring the Participant
to hold the Shares received upon exercise of an SAR for a specified period of
time. 

11 

ARTICLE 8.  RESTRICTED STOCK AND RESTRICTED STOCK UNITS 

8.1      Grant
of Restricted Stock or Restricted Stock Units. Subject to the terms and
conditions of the Plan, the Committee, at any time and from time to time, may
grant Shares of Restricted Stock and/or Restricted Stock Units to Participants
in such amounts and upon such terms as the Committee shall determine.

8.2      Restricted
Stock or Restricted Stock Unit Agreement. Each Restricted Stock and/or
Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall
specify the Period(s) of Restriction, the number of Shares of Restricted Stock
or the number of Restricted Stock Units granted, the settlement date for
Restricted Stock Units, and any such other provisions as the Committee shall
determine, provided that unless otherwise determined by the Committee or as set
out in any Award Agreement, no Restricted Stock Unit shall vest later than three
years after the date of grant. 

8.3      Nontransferability
of Restricted Stock and Restricted Stock Units. Except as otherwise provided
in this Plan or the Award Agreement, the Shares of Restricted Stock and/or
Restricted Stock Units granted herein may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated until the end of the applicable
Period of Restriction specified in the Award Agreement (and in the case of
Restricted Stock Units until the date of settlement through delivery or other
payment), or upon earlier satisfaction of any other conditions, as specified by
the Committee in its sole discretion and set forth in the Award Agreement at the
time of grant or thereafter by the Committee. All rights with respect to the
Restricted Stock and/or Restricted Stock Units granted to a Participant under
the Plan shall be available during such Participant’s lifetime only to such
Participant, except as otherwise provided in the Award Agreement at the time of
grant or thereafter by the Committee.

8.4      Other
Restrictions. The Committee shall impose, in the Award Agreement at the time
of grant or anytime thereafter, such other conditions and/or restrictions on any
Shares of Restricted Stock or Restricted Stock Units granted pursuant to this
Plan as it may deem advisable, including, without limitation, a requirement that
Participants pay a stipulated purchase price for each Share of Restricted Stock
or each Restricted Stock Unit, restrictions based upon the achievement of
specific performance criteria, time-based restrictions on vesting following the
attainment of the performance criteria, time-based restrictions, restrictions
under applicable laws or under the requirements of any stock exchange or market
upon which such Shares are listed or traded, or holding requirements or sale
restrictions placed on the Shares by the Company upon vesting of such Restricted
Stock or Restricted Stock Units.

To the extent deemed appropriate
by the Committee, subject to Section 19.5, the Company may retain the
certificates representing Shares of Restricted Stock, or Shares delivered in
settlement of Restricted Stock Units, in the Company’s possession until such
time as all conditions and/or restrictions applicable to such Shares have been
satisfied or lapse, but in no event will delivery of such Shares be made later
than the earlier of (i) 2-1/2 months after the close of the year in which such
conditions or restrictions were satisfied or lapsed and (ii) December 31 of the
third year following the year of the grant date. 

Except as otherwise provided in
this Article 8, Shares of Restricted Stock covered by each Restricted Stock
Award shall become freely transferable by the Participant after all conditions
and restrictions applicable to such Shares have been satisfied or lapse, and
Restricted Stock Units shall be settled through payment in cash, Shares, or a
combination of cash and Shares as the Committee, in its sole discretion, shall
determine. 

8.5      Certificate
Legend. In addition to any legends placed on certificates pursuant to
Section 8.4 herein, each certificate representing Shares of Restricted Stock
granted pursuant to the Plan may bear a legend such as the following: 

“The sale or other transfer of the
shares of stock represented by this certificate, whether voluntary, involuntary
or by operation of law, is subject to certain restrictions on transfer as set
forth in the 2018 Omnibus Equity Incentive Compensation Plan and in the
associated Award Agreement. A copy of the Plan and such Award Agreement may be
obtained from Energy Fuels Inc.” 

12 

8.6      Voting
  Rights. To the extent required by law, Participants holding Shares of
  Restricted Stock granted hereunder shall have the right to exercise full voting
  rights with respect to those Shares during the Period of Restriction. A
  Participant shall have no voting rights with respect to any Restricted Stock
Units granted hereunder. 

8.7      Dividends
and Other Distributions. During the Period of Restriction, Participants
holding Shares of Restricted Stock or Restricted Stock Units granted hereunder
may, if the Committee so determines, be credited with dividends paid with
respect to the underlying Shares or Dividend Equivalents while they are so held
in a manner determined by the Committee in its sole discretion. Dividend
Equivalents shall not apply to an Award unless specifically provided for in the
Award Agreement. The Committee may apply any restrictions to the dividends or
Dividend Equivalents that the Committee deems appropriate. The Committee, in its
sole discretion, may determine the form of payment of dividends or Dividend
Equivalents, including cash, Shares, Restricted Stock or Restricted Stock Units.

8.8      Death
and other Termination of Employment.

	 	(a) 	
      Death: If a Participant dies while an Employee, officer
      or director of or Consultant to the Company or an
  Affiliate:

	 	(i) 	
      any Restricted Stock Units held by the Participant that
      have vested as at the Termination Date (as defined below), shall be paid
      to the Recipient’s estate. Any Restricted Stock Units that have not vested
      as at the Termination Date will be immediately cancelled and forfeited to
      the Company on the Termination Date; and

	 	 	 
	 	(ii) 	
      such Participant’s eligibility to receive further grants
      of Restricted Stock Units under the Plan ceases as of the Termination
      Date.

	 	(b) 	
      Termination other than Death: Where a Participant’s
      employment or term of office or engagement terminates for any reason other
      than death (whether such termination occurs with or without any or
      adequate notice or reasonable notice, or with or without any or adequate
      compensation in lieu of such notice), then:

	 	(i) 	
      any Restricted Stock Units held by the Participant that
      have vested before the Termination Date shall be paid to the Recipient.
      Any Restricted Stock Units held by the Participant that are not yet vested
      at the Termination Date will be immediately cancelled and forfeited to the
      Company on the Termination Date;

	 	 	 
	 	(ii) 	
      the eligibility of a Participant to receive further
      grants under the Plan ceases as of the date that the Company or an
      Affiliate, as the case may be, provides the Participant with written
      notification that the Participant’s employment or term of office or
      engagement, is terminated, notwithstanding that such date may be prior to
      the Termination Date; and

	 	 	 
	 	(iii) 	
      notwithstanding (b)(i) and (ii) above, unless the
      Committee, in its sole discretion, otherwise determines, at any time and
      from time to time, Restricted Stock Units are not affected by a change of
      employment arrangement within or among the Company or an Affiliate for so
      long as the Participant continues to be an employee of the Company or an
      Affiliate.

	 	(c) 	
      For purposes of section 8.8, the term, “Termination Date”
      means, in the case of a Participant whose employment or term of office or
      engagement with the Company or an Affiliate
terminates:

	 	(i) 	
      by reason of the Participant’s death, the date of
      death;

	 	 	 
	 	(ii) 	
      for any reason whatsoever other than death, the date of
      the Participant’s last day actively at work for or actively engaged by the
      Company or the Affiliate, as the case may be; and for greater certainty “Termination Date” in any such case
specifically does not mean the date on which any period of contractual notice or
reasonable notice that the Company or the Affiliate, as the case may be, may be
required at law to provide to a Participant would expire; and 

13 

	 	(iii) 	
      the resignation of a director or the expiry of a
      director’s term on the Board without re- election (or nomination for
      election) shall be considered to be a termination of his or her term of
      office.

8.9      Payment
in Settlement of Restricted Stock Units. When and if Restricted Stock Units
become payable, a Participant having received the grant of such units shall be
entitled to receive payment from the Company in settlement of such units in
cash, Shares of equivalent value (based on the FMV, as defined in the Award
Agreement at the time of grant or thereafter by the Committee), in some
combination thereof, or in any other form determined by the Committee at its
sole discretion. The Committee’s determination regarding the form of payout
shall be set forth or reserved for later determination in the Award Agreement
for the grant of the Restricted Stock Unit. 

ARTICLE 9.  DEFERRED SHARE UNITS 

9.1      Grant
of Deferred Share Units. Subject to the terms and conditions of the Plan,
the Committee, at any time and from time to time, may grant Deferred Share Units
to Participants in such amounts and upon such terms as the Committee shall
determine. 

9.2      Deferred
Share Unit Agreement. Each Deferred Share Unit grant shall be evidenced by
an Award Agreement that shall specify the number of Deferred Share Units
granted, the settlement date for Deferred Share Units, and any other provisions
as the Committee shall determine, including, but not limited to a requirement
that Participants pay a stipulated purchase price for each Deferred Share Unit,
restrictions based upon the achievement of specific performance criteria,
time-based restrictions, restrictions under applicable laws or under the
requirements of any stock exchange or market upon which the Shares are listed or
traded, or holding requirements or sale restrictions placed on the Shares by the
Company upon vesting of such Deferred Share Units. 

9.3      Nontransferability
of Restricted Stock and Restricted Stock Units. Except as otherwise provided
in this Plan or the Award Agreement, the Deferred Share Units granted herein may
not be sold, transferred, pledged, assigned or otherwise alienated or
hypothecated. All rights with respect to the Deferred Share Units granted to a
Participant under the Plan shall be available during such Participant’s lifetime
only to such Participant, except as otherwise provided in the Award Agreement at
the time of grant or thereafter by the Committee. 

9.4      Termination
of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to retain Deferred Share Units following
termination of the Participant’s employment or other relationship with the
Company or Affiliates. Such provisions shall be determined in the sole
discretion of the Committee, need not be uniform among all Deferred Share Units
issued pursuant to the Plan, and may reflect distinctions based on the reasons
for termination. 

ARTICLE 10.  PERFORMANCE SHARES AND PERFORMANCE UNITS 

10.1      Grant
of Performance Shares and Performance Units. Subject to the terms and
conditions of the Plan, the Committee, at any time and from time to time, may
grant Performance Shares and/or Performance Units to Participants in such
amounts and upon such terms as the Committee shall determine. 

10.2      Value
of Performance Shares and Performance Units. Each Performance Share and
Performance Unit shall have an initial value equal to the FMV of a Share on the
date of grant. The Committee shall set performance criteria for a Performance
Period in its discretion, which, depending on the extent to which they are met,
will determine, in the manner determined by the Committee and set forth in the
Award Agreement, the value and/or number of each Performance Share or
Performance Unit that will be paid to the Participant. 

10.3      Earning
of Performance Shares and Performance Units. Subject to the terms of this
Plan and the applicable Award Agreement, after the applicable Performance Period
has ended, the holder of Performance Shares/Performance Units shall be entitled
to receive payout on the value and number of Performance Shares/Performance Units, determined as a function of the
extent to which the corresponding performance criteria have been achieved.
Notwithstanding the foregoing, the Company shall have the ability to require the
Participant to hold any Shares received pursuant to such Award for a specified
period of time. 

14 

10.4      Form
  and Timing of Payment of Performance Shares and Performance Units. Payment
  of earned Performance Shares/Performance Units shall be as determined by the
  Committee and as set forth in the Award Agreement. Subject to the terms of the
  Plan, the Committee, in its sole discretion, may pay earned Performance
  Shares/Performance Units in the form of cash or in Shares (or in a combination
  thereof) equal to the value of the earned Performance Shares/Performance Units
  at the end of the applicable Performance Period. Any Shares may be granted
  subject to any restrictions deemed appropriate by the Committee. The
  determination of the Committee with respect to the form of payout of such Awards
  shall be set forth in the Award Agreement for the grant of the Award or reserved
for later determination. 

10.5      Dividends
and Other Distributions. The Committee shall determine whether Participants
holding Performance Shares will receive Dividend Equivalents with respect to
dividends declared with respect to the Shares. Dividends or Dividend Equivalents
may be subject to accrual, forfeiture or payout restrictions as determined by
the Committee in its sole discretion. 

10.6      Termination
of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to retain Performance Shares/Performance Units
following termination of the Participant’s employment or other relationship with
the Company or an Affiliate. Such provisions shall be determined in the sole
discretion of the Committee, need not be uniform among all Awards of Performance
Shares/Performance Units issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination. 

10.7      Nontransferability
of Performance Shares and Performance Units. Except as otherwise provided in
a Participant’s Award Agreement at the time of grant or thereafter by the
Committee, Performance Shares/Performance Units may not be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution. Further, except as otherwise provided
in a Participant’s Award Agreement or otherwise by the Committee at any time, a
Participant’s rights under the Plan shall inure during such Participant’s
lifetime only to such Participant. 

ARTICLE 11. FULL VALUE STOCK-BASED AWARDS 

11.1      Stock-Based
Awards. The Committee may grant other types of equity-based or
equity-related Awards not otherwise described by the terms of this Plan
(including the grant or offer for sale of unrestricted Shares) in such amounts
and subject to such terms and conditions, including, but not limited to, being
subject to performance criteria, or in satisfaction of such obligations, as the
Committee shall determine. Such Awards may involve the transfer of actual Shares
to Participants, or payment in cash or otherwise of amounts based on the value
of Shares. 

11.2      Termination
of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to receive Stock-Based Awards following
termination of the Participant’s employment or other relationship with the
Company or Affiliates. Such provisions shall be determined in the sole
discretion of the Committee, need not be uniform among all Stock-Based Awards
issued pursuant to the Plan, and may reflect distinctions based on the reasons
for termination. 

11.3     
Nontransferability of Stock-Based Awards. Except as otherwise provided in
a Participant’s Award Agreement at the time of grant or thereafter by the
Committee, Stock-Based Awards may not be sold, transferred, pledged, assigned or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution. Further, except as otherwise provided in a
Participant’s Award Agreement at the time of grant or thereafter by the
Committee, a Participant’s rights under the Plan shall be exercisable during
such Participant’s lifetime only by such Participant. 

15 

ARTICLE 12.  BENEFICIARY DESIGNATION 

A Participant’s “beneficiary” is
the person or persons entitled to receive payments or other benefits or exercise
rights that are available under the Plan in the event of the Participant’s
death. A Participant may designate a beneficiary or change a previous
beneficiary designation at such times as prescribed by the Committee and by
using such forms and following such procedures approved or accepted by the
Committee for that purpose. If no beneficiary designated by the Participant is
eligible to receive payments or other benefits or exercise rights that are
available under the Plan at the Participant’s death, the beneficiary shall be
the Participant’s estate. 

Notwithstanding the provisions
above, the Committee may, in its discretion, after notifying the affected
Participants, modify the foregoing requirements, institute additional
requirements for beneficiary designations, or suspend the existing beneficiary
designations of living Participants or the process of determining beneficiaries
under this Article 12, or both, in favor of another method of determining
beneficiaries. 

ARTICLE 13.  DEFERRALS 

The Committee may permit or
require a Participant to defer such Participant’s receipt of any Award, or
payment in settlement or exercise of any Award, provided that any such deferral
must comply with the applicable requirements of Section 409A of the Code and the
Treasury regulations thereunder so that such deferral does not cause the
Participant to be subject to taxes and interest pursuant to Section 409A of the
Code. 

ARTICLE 14.  RIGHTS OF PERSONS ELIGIBLE TO PARTICIPATE 

14.1      Employment.
Nothing in the Plan or an Award Agreement shall interfere with or limit in any
way the right of the Company or an Affiliate to terminate any Participant’s
employment, consulting or other service relationship with the Company or an
Affiliate at any time, nor confer upon any Participant any right to continue in
the capacity in which he or she is employed or otherwise serves the Company or
an Affiliate. 

Neither an Award nor any benefits
arising under this Plan shall constitute part of an employment or service
contract with the Company or an Affiliate, and, accordingly, subject to the
terms of this Plan, this Plan may be terminated or modified at any time in the
sole and exclusive discretion of the Committee or the Board without giving rise
to liability on the part of the Company or an Affiliate for severance payments
or otherwise, except as provided in this Plan. 

For purposes of the Plan, unless
otherwise provided by the Committee, a transfer of employment of a Participant
between the Company and an Affiliate or among Affiliates shall not be deemed a
termination of employment. The Committee may provide in a Participant’s Award
Agreement or otherwise the conditions under which a transfer of employment to an
entity that is spun off from the Company or an Affiliate shall not be deemed a
termination of employment for purposes of an Award. 

14.2      Participation.
No Employee or other Person eligible to participate in the Plan shall have the
right to be selected to receive an Award. No person selected to receive an Award
shall have the right to be selected to receive a future Award, or, if selected
to receive a future Award, the right to receive such future Award on terms and
conditions identical or in proportion in any way to any prior Award. 

14.3      Rights
as a Shareholder. A Participant shall have none of the rights of a
shareholder with respect to Shares covered by any Award until the Participant
becomes the record holder of such Shares. 

ARTICLE 15. CHANGE OF CONTROL 

15.1      Accelerated
Vesting and Payment. Subject to the provisions of Section 15.2 or as
otherwise provided in the Award Agreement, in the event of a Change of Control,
unless otherwise specifically prohibited under law or by the rules and
regulations of a national securities exchange or market on which Shares are
listed or traded: 

	 	(a) 	
      Any and all Options and SARs granted hereunder shall be
      accelerated to become immediately exercisable in
full;

16 

	 	(b) 	
      Any Period of Restriction and other restrictions imposed
      on Restricted Stock or Restricted Stock Units shall lapse, and Restricted
      Stock Units shall be immediately settled and payable;

	 	 	 
	 	(c) 	
      The target payout opportunities attainable under all
      outstanding Awards of performance-based Restricted Stock,
      performance-based Restricted Stock Units, Performance Units and
      Performance Shares shall be deemed to have been fully earned based on
      targeted performance being attained as of the effective date of the Change
      of Control, and:

	 	(i) 	
      The vesting of all Awards denominated in Shares shall be
      accelerated as of the effective date of the Change of Control, (or such
      other time prior to the time of the Change of Control, if the Committee in
      its reasonable discretion determines is appropriate) and shall be paid out
      to Participants within thirty (30) days following the effective date of
      the Change of Control; and

	 	 	 
	 	(ii) 	
      Awards denominated in cash shall be paid to Participants
      in cash within thirty (30) days following the effective date of the Change
      of Control;

	 	(d) 	
      Upon a Change of Control, unless otherwise specifically
      provided in a written agreement entered into between the Participant and
      the Company or an Affiliate, the Committee shall immediately cause all
      other Stock-Based Awards to vest and be paid out as determined by the
      Committee; and

	 	 	 
	 	(e) 	
      The Committee shall have the discretion to unilaterally
      determine that all outstanding Awards shall be cancelled upon a Change of
      Control, and that the value of such Awards, as determined by the Committee
      in accordance with the terms of the Plan and the Award Agreements, shall
      be paid out in cash in an amount based on the Change of Control Price
      within a reasonable time subsequent to the Change of Control; provided,
      however, that no such payment shall be made on account of an ISO using a
      value higher than the FMV of the underlying Shares on the date of
      settlement.

15.2      Alternative
Awards. Notwithstanding Section 15.1, no cancellation, acceleration of
vesting, lapsing of restrictions, payment of an Award, cash settlement or other
payment shall occur with respect to any Award if the Committee reasonably
determines in good faith prior to the occurrence of a Change of Control that
such Award shall be honored or assumed, or new rights substituted therefor (with
such honored, assumed or substituted Award hereinafter referred to as an
“Alternative Award”) by any successor to the Company or an Affiliate as
described in Article 17; provided, however, that any such Alternative Award
must: 

	 	(a) 	
      Be based on stock which is traded on the TSX and/or an
      established U.S. securities market;

	 	 	 
	 	(b) 	
      Provide such Participant with rights and entitlements
      substantially equivalent to or better than the rights, terms and
      conditions applicable under such Award, including, but not limited to, an
      identical or better exercise or vesting schedule and identical or better
      timing and methods of payment;

	 	 	 
	 	(c) 	
      Recognize, for the purpose of vesting provisions, the
      time that the Award has been held prior to the Change of
Control;

	 	 	 
	 	(d) 	
      Have substantially equivalent economic value to such
      Award (determined prior to the time of the Change of Control);
  and

	 	 	 
	 	(e) 	
      Have terms and conditions which provide that in the event
      that the Participant’s employment with the Company, an Affiliate or any
      successor as described in Article 18 is involuntarily terminated or
      Constructively Terminated at any time within at least twelve months
      following a Change of Control, any conditions on a Participant’s rights
      under, or any restrictions on transfer or exercisability applicable to,
      each such Alternative Award shall be waived or shall lapse, as the case
      may be.

17 

15.3      Compliance
with Section 280G of the Code. In the event that any accelerated Award
vesting or payment received or to be received by a Participant pursuant to
Section 15.1 herein (the “Benefit”) would (i) constitute a “parachute payment”
within the meaning of and subject to Section 280G of the Code and (ii) but for
this Section 15.3, be subject to the excise tax imposed by Section 4999 of the
Code (the “Excise Tax”), then such Benefit shall be reduced to the extent
necessary so that no portion of the Benefit will be subject to the Excise Tax,
as determined in good faith by the Committee; provided, however, that if, in the
absence of any such reduction (or after such reduction), the Participant
believes that the Benefit or any portion thereof (as reduced, if applicable)
would be subject to the Excise Tax, the Benefit shall be reduced (or further
reduced) to the extent determined by the Participant in his or her discretion so
that the Excise Tax would not apply. If, notwithstanding any such reduction (or
in the absence of such reduction), the Internal Revenue Service (“IRS”)
determines that the Participant is liable for the Excise Tax as a result of the
Benefit, then the Participant shall be obligated to return to the Company,
within thirty days of such determination by the IRS, a portion of the Benefit
sufficient such that none of the Benefit retained by the Participant constitutes
a “parachute payment” within the meaning of Section 280G of the Code that is
subject to the Excise Tax. 

ARTICLE 16.  AMENDMENT,
MODIFICATION, SUSPENSION AND TERMINATION 

16.1      Amendment,
Modification, Suspension and Termination.

	 	(a) 	
      Except as set out in clauses (b) and (c) below, and as
      otherwise provided by law, or stock exchange rules, the Committee or Board
      may, at any time and from time to time, alter, amend, modify, suspend or
      terminate the Plan or any Award in whole or in part without notice to, or
      approval from, shareholders, including, but not limited to for the
      purposes of:

	 	(i) 	
      making any acceleration of or other amendments to the
      general vesting provisions of any Award;

	 	 	 
	 	(ii) 	
      waiving any termination of, extending the expiry date of,
      or making any other amendments to the general term of any Award or
      exercise period thereunder provided that no Award held by an Insider may
      be extended beyond its original expiry date;

	 	 	 
	 	(iii) 	
      making any amendments to add covenants or obligations of
      the Company for the protection of Participants;

	 	 	 
	 	(iv) 	
      making any amendments not inconsistent with the Plan as
      may be necessary or desirable with respect to matters or questions which,
      in the good faith opinion of the Board, it may be expedient to make,
      including amendments that are desirable as a result of changes in law or
      as a “housekeeping” matter; or

	 	 	 
	 	(v) 	
      making such changes or corrections which are required for
      the purpose of curing or correcting any ambiguity or defect or
      inconsistent provision or clerical omission or mistake or manifest
      error.

	 	(b) 	
      Other than as expressly provided in an Award Agreement or
      as set out herein with respect to a Change of Control, the Committee shall
      not alter or impair any rights or increase any obligations with respect to
      an Award previously granted under the Plan without the consent of the
      Participant.

	 	 	 
	 	(c) 	
      The following amendments to the Plan shall require the
      prior approval of the Company’s shareholders:

	 	(i) 	
      A reduction in the Option Price of a previously granted
      Option or the Grant Price of a previously granted SAR benefitting an
      Insider of the Company or one of its Affiliates except for adjustments to
      the Option Price or Grant Price applicable to outstanding Awards pursuant
      to Section 4.2 hereof.

	 	 	 
	 	(ii) 	
      Any amendment or modification which would increase the
      total number of Shares available for issuance under the Plan or the total
      number of Shares available for ISOs under the
Plan.

18 

	 	(iii) 	
      An increase to the limit on the number of Shares issued
      or issuable under the Plan to Insiders of the Company;

	 	 	 
	 	(iv) 	
      An extension of the expiry date of an Option or SAR,
      other than as otherwise permitted hereunder in relation to a Blackout
      Period; or

	 	 	 
	 	(v) 	
      Any amendment to the amendment provisions of the Plan
      under this Article 16.1.

16.2      Adjustment
of Awards Upon the Occurrence of Unusual or Nonrecurring Events. The
Committee may make adjustments in the terms and conditions of, and the criteria
included in, Awards in recognition of unusual or nonrecurring events in addition
to the events described in Section 4.2 hereof affecting the Company or the
financial statements of the Company or of changes in applicable laws,
regulations or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent unintended dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan. The determination of the Committee as to the foregoing
adjustments, if any, shall be conclusive and binding on Participants under the
Plan. 

16.3      Awards
Previously Granted. Notwithstanding any other provision of the Plan to the
contrary, no termination, amendment, suspension or modification of the Plan
shall adversely affect in any material way any Award previously granted under
the Plan, without the written consent of the Participant holding such Award.

ARTICLE 17. WITHHOLDING 

The Company or any Affiliate
shall have the power and the right to deduct or withhold, or require a
Participant to remit to the Company or any Affiliate, an amount sufficient to
satisfy federal, state and local taxes or provincial, domestic or foreign
(including the Participant’s FICA obligation), required by law or regulation to
be withheld with respect to any taxable event arising or as a result of this
Plan or any Award hereunder. The Committee may provide for Participants to
satisfy withholding requirements by having the Company issuing a number of
Shares net of amounts required to satisfy withholding requirements, the Company
withholding and selling Shares, or the Participant making such other
arrangements, including the sale of Shares, in either case on such conditions as
the Committee specifies. 

Participant acknowledges and
agrees that the ultimate liability for all taxes legally payable by Participant
is and remains Participant’s responsibility and may exceed the amount actually
withheld by the Company. Participant further acknowledges that the Company (a)
makes no representations or undertakings regarding the treatment of any taxes in
connection with any aspect of this Plan; and (b) does not commit to and is under
no obligation to structure the terms of this Plan to reduce or eliminate
Participant’s liability for taxes or achieve any particular tax result. Further,
if Participant has become subject to tax in more than one jurisdiction,
Participant acknowledges that the Company may be required to withhold or account
for taxes in more than one jurisdiction. 

ARTICLE 18.  SUCCESSORS 

Any obligations of the Company or
an Affiliate under the Plan with respect to Awards granted hereunder shall be
binding on any successor to the Company or Affiliate, respectively, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation or otherwise, of all or substantially all of the
businesses and/or assets of the Company or Affiliate, as applicable. 

ARTICLE 19.  GENERAL PROVISIONS 

19.1      Forfeiture
Events. Without limiting in any way the generality of the Committee’s power
to specify any terms and conditions of an Award consistent with law, and for
greater clarity, the Committee may specify in an Award Agreement that the
Participant’s rights, payments and benefits with respect to an Award shall be
subject to reduction, cancellation, forfeiture or recoupment upon the occurrence
of certain specified events, in addition to any otherwise applicable vesting or
performance conditions of an Award. Such events may include, but shall not be
limited to, failure to accept the terms of the Award Agreement, termination of
employment under certain or all circumstances, violation of material Company and
Affiliate policies, breach of noncompetition, confidentiality, non-solicitation,
noninterference, corporate property protection or other agreements that may
apply to the Participant, or other conduct by the Participant that is
detrimental to the business or reputation of the Company and Affiliates. 

19 

Except as expressly otherwise
  provided in this Plan or an Award Agreement, the termination and the expiry of
  the period within which an Award will vest and may be exercised by a Participant
  shall be based upon the last day of actual service by the Participant to the
  Company and specifically does not include any period of notice that the Company
  may be required to provide to the Participant under applicable employment law.

19.2      Legend.
The certificates for Shares may include any legend that the Committee deems
appropriate to reflect any restrictions on transfer of such Shares. 

19.3      Delivery
of Title. The Company shall have no obligation to issue or deliver evidence
of title for Shares issued under the Plan prior to: 

	 	(a) 	
      Obtaining any approvals from governmental agencies that
      the Company determines are necessary or advisable; and

	 	 	 
	 	(b) 	
      Completion of any registration or other qualification of
      the Shares under any applicable law or ruling of any governmental body
      that the Company determines to be necessary or
advisable.

19.4      Investment
Representations. The Committee may require each Participant receiving Shares
pursuant to an Award under this Plan to represent and warrant in writing that
the Participant is acquiring the Shares for investment and without any present
intention to sell or distribute such Shares. 

19.5      Uncertificated
Shares. To the extent that the Plan provides for issuance of certificates to
reflect the transfer of Shares, the transfer of such Shares may be effected on a
non-certificated basis to the extent not prohibited by applicable law or the
rules of any applicable stock exchange. 

19.6     
Unfunded Plan. Participants shall have no right, title or interest
whatsoever in or to any investments that the Company or an Affiliate may make to
aid it in meeting its obligations under the Plan. Nothing contained in the Plan,
and no action taken pursuant to its provisions, shall create or be construed to
create a trust of any kind, or a fiduciary relationship between the Company or
an Affiliate and any Participant, beneficiary, legal representative or any other
person. Awards shall be general unsecured obligations of the Company, except
that if an Affiliate executes an Award Agreement instead of the Company the
Award shall be a general unsecured obligation of the Affiliate and not any
obligation of the Company. To the extent that any individual acquires a right to
receive payments from the Company or an Affiliate, such right shall be no
greater than the right of an unsecured general creditor of the Company or
Affiliate, as applicable. All payments to be made hereunder shall be paid from
the general funds of the Company or Affiliate, as applicable, and no special or
separate fund shall be established and no segregation of assets shall be made to
assure payment of such amounts except as expressly set forth in the Plan. The
Plan is not intended to be subject to ERISA. 

19.7      No
Fractional Shares. No fractional Shares shall be issued or delivered
pursuant to the Plan or any Award Agreement. In such an instance, unless the
Committee determines otherwise, fractional Shares and any rights thereto shall
be forfeited or otherwise eliminated.

19.8      Other
Compensation and Benefit Plans. Nothing in this Plan shall be construed to
limit the right of the Company or an Affiliate to establish other compensation
or benefit plans, programs, policies or arrangements. Except as may be otherwise
specifically stated in any other benefit plan, policy, program or arrangement,
no Award shall be treated as compensation for purposes of calculating a
Participant’s rights under any such other plan, policy, program or arrangement.

19.9      No
Constraint on Corporate Action. Nothing in this Plan shall be construed (i)
to limit, impair or otherwise affect the Company’s or an Affiliate’s right or
power to make adjustments, reclassifications, reorganizations or changes in its
capital or business structure, or to merge or consolidate, or dissolve,
liquidate, sell or transfer all or any part of its business or assets, or (ii)
to limit the right or power of the Company or an Affiliate to take any action
which such entity deems to be necessary or appropriate. 

19.10      Compliance
with United States Securities Laws. All Awards and the issuance of Shares
underlying such Awards issued pursuant to the Plan will be issued pursuant to
the registration requirements of the United States Securities Act of 1933, as
amended, or an exemption from such registration requirements. 

20 

ARTICLE 20. LEGAL CONSTRUCTION 

20.1      Gender
and Number. Except where otherwise indicated by the context, any masculine
term used herein also shall include the feminine, the plural shall include the
singular, and the singular shall include the plural. 

20.2      Severability.
In the event any provision of this Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provision had not been included. 

20.3      Requirements
of Law. The granting of Awards and the issuance of Shares under the Plan
shall be subject to all applicable laws, rules and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required. The Company or an Affiliate shall receive the consideration
required by law for the issuance of Awards under the Plan. 

The inability of the Company or
an Affiliate to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company or an Affiliate to be necessary for the
lawful issuance and sale of any Shares hereunder, shall relieve the Company or
Affiliate of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained. 

20.4      Governing
Law. The Plan and each Award Agreement shall be governed by the laws of the
Province of Ontario excluding any conflicts or choice of law rule or principle
that might otherwise refer construction or interpretation of the Plan to the
substantive law of another jurisdiction. 

20.5      Compliance
with Section 409A of the Code.

	 	(a) 	
      To the extent applicable, it is intended that this Plan
      and any Awards made hereunder shall not provide for the payment of
      “deferred compensation” within the meaning of Section 409A of the Code or
      shall be structured in a manner and have such terms and conditions that
      would not cause a Participant to be subject to taxes and interest pursuant
      to Section 409A of the Code. This Plan and any Awards made hereunder shall
      be administrated and interpreted in a manner consistent with this intent,
      and any provision that would cause this Plan or any Award made hereunder
      to become subject to taxation under Section 409A of the Code shall have no
      force and effect until amended to comply with Section 409A of the Code
      (which amendment may be retroactive to the extent permitted by Section
      409A of the Code and may be made by the Company without the consent of
      Participants)

	 	 	 
	 	(b) 	
      Notwithstanding anything in this Plan or in any Award
      Agreement to the contrary, but subject to this Article 20.5(b) to the
      extent that any amount or benefit that would constitute “deferred
      compensation” for purposes of Section 409A of the Code would otherwise be
      payable or distributable under this Plan or any Award Agreement by reason
      of the occurrence of a Change of Control or the Participant’s disability
      or separation from service, such amount or benefit will not be payable or
      distributable to the Participant by reason of such circumstance unless (i)
      the circumstances giving rise to such Change of Control, disability or
      separation from service meet the description or definition of “change in
      control event,” “disability,” or “separation from service,” as the case
      may be, in Section 409A of the Code and applicable proposed or final
      Treasury regulations thereunder, and (ii) the payment or distribution of
      such amount or benefit would otherwise comply with Section 409A of the
      Code and not subject the Participant to taxes and interest pursuant to
      Section 409A of the Code (which may require, if the Participant is a
      “specified employee” within the meaning of Section 409A of the Code, that
      the payment date shall not be earlier than the date that is six (6) months
      after the date of the Participant’s separation from service). This
      provision does not prohibit the vesting of any Award or the vesting of any
      right to eventual payment or distribution of any amount or benefit under
this Plan or any Award Agreement. 

21 

	 	(c) 	
      Notwithstanding anything in this Plan or in any Award
      Agreement to the contrary, but subject to Section 20.5(b) to the extent
      necessary to avoid the application of Section 409A of the Code, (i) the
      Committee may not amend an outstanding Option, SAR or similar Award to
      extend the time to exercise such Award beyond the later of the 15th day of
      the third month following the date at which, or December 31 of the
      calendar year in which, the Award would otherwise have expired if the
      Award had not been extended, based on the terms of the Award at the
      original grant date (the “Safe Harbor Extension Period”), provided that,
      in any event, Options and SARs granted to U.S. Participants may not be
      extended past the 10th anniversary of the original date of grant, and (ii)
      any purported extension of the exercise period of an outstanding Award
      beyond the Safe Harbor Extension Period shall be deemed to be an amendment
      to the last day of the Safe Harbor Extension Period and no
later.

	 	 	 
	 	(d) 	
      The Committee shall use its reasonable discretion to
      determine the extent to which the provisions of Article 20.5 will apply to
      a Participant who is subject to taxation under the
ITA.

22Exhibit

Exhibit 10.1

ADVISORY AGREEMENT
between
KBS GROWTH & INCOME REIT, INC.
and
KBS CAPITAL ADVISORS LLC

August 6, 2018

TABLE OF CONTENTS
	
			
	 
	 
	Page

	 
	 
	 

	ARTICLE 1 – DEFINITIONS   
	1

	ARTICLE 2 – APPOINTMENT   
	10

	ARTICLE 3 – DUTIES OF THE ADVISOR   
	10

	 
	3.01 Organizational and Offering Services   
	10

	 
	3.02 Acquisition Services   
	10

	 
	3.03 Asset Management Services   
	11

	 
	3.04 Stockholder Services   
	13

	 
	3.05 Other Services   
	14

	ARTICLE 4 – AUTHORITY OF ADVISOR   
	14

	 
	4.01 General   
	14

	 
	4.02 Powers of the Advisor   
	14

	 
	4.03 Approval by the Board   
	14

	 
	4.04 Modification or Revocation of Authority of Advisor   
	14

	ARTICLE 5 – BANK ACCOUNTS   
	14

	ARTICLE 6 – RECORDS AND FINANCIAL STATEMENTS   
	15

	ARTICLE 7 – LIMITATION ON ACTIVITIES   
	15

	ARTICLE 8 – FEES   
	15

	 
	8.01 Acquisition Fees   
	15

	 
	8.02 Origination Fees   
	16

	 
	8.03 Asset Management Fees   
	16

	 
	8.04 Disposition Fees   
	16

	 
	8.05 Subordinated Share of Cash Flows   
	17

	 
	8.06 Subordinated Incentive Fee   
	17

	 
	8.07 Changes to Fee Structure   
	18

	ARTICLE 9 – EXPENSES   
	18

	 
	9.01 General   
	20

	 
	9.02 Timing of and Limitations on Reimbursements   
	21

	ARTICLE 10 – VOTING AGREEMENT   
	21

	ARTICLE 11 – RELATIONSHIP OF ADVISOR AND COMPANY, OTHER ACTIVITIES OF THE ADVISOR   
	21

	 
	11.01 Relationship   
	21

	 
	11.02 Time Commitment   
	21

	 
	11.03 Investment Opportunities and Allocation   
	21

	ARTICLE 12 – THE KBS NAME   
	22

	ARTICLE 13 – TERM AND TERMINATION OF THE AGREEMENT   
	23

	 
	13.01 Term   
	23

	 
	13.02 Termination by Either Party   
	23

	 
	13.03 Payments on Termination and Survival of Certain Rights and Obligations
	23

	ARTICLE 14 – ASSIGNMENT   
	24

	ARTICLE 15 – INDEMNIFICATION AND LIMITATION OF LIABILITY   
	24

	 
	15.01 Indemnification   
	24

	 
	15.02 Limitation on Indemnification   
	25

	 
	15.03 Limitation on Payment of Expenses   
	25

i

	
			
	ARTICLE 16 – MISCELLANEOUS   
	25

	 
	16.01 Notices   
	25

	 
	16.02 Modification   
	26

	 
	16.03 Severability   
	26

	 
	16.04 Construction   
	26

	 
	16.05 Entire Agreement   
	26

	 
	16.06 Waiver   
	26

	 
	16.07 Gender   
	26

	 
	16.08 Titles Not to Affect Interpretation   
	26

	 
	16.09 Counterparts   
	26

	ARTICLE 17 – ADVANCE   
	26

ii

ADVISORY AGREEMENT
This Advisory Agreement, dated as of August 6, 2018 (the “Agreement”), is between KBS Growth & Income REIT, Inc., a Maryland corporation (the “Company”), and KBS Capital Advisors LLC, a Delaware limited liability company (the “Advisor”).
W I T N E S S E T H
WHEREAS, the Company and the Advisor have previously entered that Advisory Agreement dated as of September 29, 2017 (the “September Advisory Agreement”) and wish to authorize, ratify,  and approve the terms of the September Advisory Agreement as the understanding between the parties as of April 28, 2018 through the date of this Agreement;
WHEREAS, the Company desires to renew its agreement with the Advisor on the same terms as the September Advisory Agreement and to continue to avail itself of the knowledge, experience, sources of information, advice, assistance and certain facilities available to the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the board of directors of the Company (the “Board”), all as provided herein; 
WHEREAS, the Advisor is willing to continue to undertake to render such services, subject to the supervision of the Board, on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:
ARTICLE 1
DEFINITIONS
The following defined terms used in this Agreement shall have the meanings specified below:
“Acquiror” shall have the meaning set forth in the definition of “Merger” below.
“Acquisition Expenses” means any and all expenses, excluding the fees payable to the Advisor pursuant to Section 8.01 and Section 8.02, incurred by the Company, the Advisor or any Affiliate of either in connection with the selection, acquisition or development of any property, loan or other potential investment, whether or not acquired or originated, as applicable, including, without limitation, legal fees and expenses, travel and communication expenses, costs of appraisals, nonrefundable option payments on properties or other investments not acquired, accounting fees and expenses, title insurance premiums and miscellaneous expenses related to the selection, acquisition or development of any property, loan or other potential investment.
“Acquisition Fees” means the fee paid to the Advisor pursuant to Section 8.01 plus all other fees and commissions, excluding Acquisition Expenses, paid by any Person to any Person in connection with making or investing in any Property or other Permitted Investment or the purchase, development or construction of any Property by the Company. Included in the computation of such fees or commissions shall be any real estate commission, selection fee, 

1

Development Fee, Construction Fee, nonrecurring management fee, loan fees or points or any fee of a similar nature, however designated. Excluded shall be Development Fees and Construction Fees paid to Persons not Affiliated with the Advisor in connection with the actual development and construction of a Property.
“Advance” shall have the meaning set forth in Article 17.
“Advisor” means (i) KBS Capital Advisors LLC, a Delaware limited liability company, or (ii) any successor advisor to the Company.
“Affiliate” or “Affiliated” An Affiliate of another Person includes any of the following: (i) any Person directly or indirectly controlling, controlled by, or under common control with such other Person; (ii) any Person directly or indirectly owning, controlling, or holding with the power to vote 10% or more of the outstanding voting securities of such other Person; (iii) any legal entity for which such Person acts as an executive officer, director, trustee, or general partner; (iv) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held, with power to vote, by such other Person; and (v) any executive officer, director, trustee, or general partner of such other Person. An entity shall not be deemed to control or be under common control with an Advisor-sponsored program unless (i) the entity owns 10% or more of the voting equity interests of such program or (ii) a majority of the board of directors (or equivalent governing body) of such program is composed of Affiliates of the entity.
“Appraised Value” means the value according to an appraisal made by an Independent Appraiser.
“Articles of Incorporation” means the Articles of Incorporation of the Company under Title 2 of the Corporations and Associations Article of the Annotated Code of Maryland, as amended from time to time.
“Asset Management Fee” shall have the meaning set forth in Section 8.03.
“Average Invested Assets” means, for a specified period, the average of the aggregate book value of the assets of the Company invested, directly or indirectly, in Properties, Loans and other Permitted Investments secured by real estate before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each month during such period.
“Average Issue Price” means the weighted average price at which shares were purchased in the primary portion of an Offering which shall be calculated as of the end of the month preceding the date upon which the calculation is being made.
“Board of Directors” or “Board” means the persons holding such office, as of any particular time, under the Articles of Incorporation of the Company, whether they be the Directors named therein or additional or successor Directors.
“Bylaws” means the bylaws of the Company, as amended from time to time.

2

“Cash from Financings” means the net cash proceeds realized by the Company from the financing of Properties, Loans or other Permitted Investments or from the refinancing of any Company indebtedness (after deduction of all expenses incurred in connection therewith).
“Cash from Sales and Settlements” means the net cash proceeds realized by the Company (i) from the sale, exchange or other disposition of any of its assets or any portion thereof after deduction of all expenses incurred in connection therewith and (ii) from the prepayment,
maturity, workout or other settlement of any Loan or Permitted Investment or portion thereof after deduction of all expenses incurred in connection therewith. In the case of a transaction described in clause (i) (C) of the definition of “Sale” and (i)(B) of the definition of “Settlement,” Cash from Sales and Settlements means the proceeds of any such transaction actually distributed to the Company from the Joint Venture or partnership. Cash from Sales and Settlements shall not include Cash from Financings.
 “Cash from Sales, Settlements and Financings” means the total sum of Cash from Sales and Settlements and Cash from Financings.
“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.
“Company” means KBS Growth & Income REIT, Inc., a corporation organized under the laws of the State of Maryland.
“Competitive Real Estate Commission” means a real estate or brokerage commission for the purchase or sale of property that is reasonable, customary, and competitive in light of the size, type, and location of the property.
“Conflicts Committee” shall have the meaning set forth in the Company’s Articles of Incorporation.
“Construction Fee” means a fee or other remuneration for acting as general contractor and/or construction manager to construct improvements, supervise and coordinate projects or to provide major repairs or rehabilitation on a Property.
“Contract Sales Price” means the purchase price to be paid in connection with the sale of a Property, Loan or other Permitted Investment less any concessions agreed to in connection with the sale which may include but are not limited to credits for future building or tenant improvements, credits for future free rent given to tenants, credits for future lease up assumptions, or other future rental concessions; or, in the case of a discounted payoff of a Loan, the total funds received by the Company in connection with the payoff, less any expenses related thereto.
“Cost of Loans and other Permitted Investments” means the sum of the cost of all Loans and Permitted Investments held, directly or indirectly, by the Company or the Partnership, calculated each month on an ongoing basis, and calculated as follows for each investment: the lesser of (i) the amount actually paid or allocated to acquire, originate or fund the Loan or 

3

Permitted Investment, including the fees and expenses associated with the acquisition, origination or funding of such Loan or Permitted Investment (but excluding any Acquisition Fees or Origination Fees paid to the Advisor or its Affiliates under this Agreement), and (ii) the outstanding principal amount of such Loan or Permitted Investment, including the fees and expenses associated with the acquisition, origination or funding of such Loan or Permitted Investment (but excluding any Acquisition Fees or Origination Fees paid to the Advisor or its Affiliates under this Agreement), as of the time of calculation. With respect to any Loan or Permitted Investment held by the Company or the Partnership through a Joint Venture or partnership of which it is, directly or indirectly, a co-venturer or partner, such amount shall be the Company’s proportionate share thereof. 
“Cost of Real Estate Investments” means the sum of (i) with respect to Properties wholly owned, directly or indirectly, by the Company, the amount actually paid or allocated to the purchase of Properties, including the fees and expenses associated with the purchase of such Properties (but excluding any Acquisition Fees paid to the Advisor or its Affiliates under this Agreement), plus budgeted capital improvement costs for the development, construction or improvement of Properties once such funds are disbursed pursuant to a final approved budget and (ii) in the case of Properties owned by any Joint Venture or partnership in which the Company or the Partnership is, directly or indirectly, a co-venturer or a partner, the portion of the amount actually paid or allocated to the purchase of Properties, including the fees and expenses associated with the purchase of such Properties (but excluding any Acquisition Fees paid to the Advisor or its Affiliates under this Agreement), plus budgeted capital improvement costs for the development, construction or improvement of Properties once such funds are disbursed pursuant to a final approved budget, that is attributable to the Company’s investment in the Joint Venture or partnership. 
 “Dealer Manager” means (i) KBS Capital Markets Group LLC, a Delaware limited liability company, or (ii) any successor dealer manager to the Company.
“Development Fee” means a fee for the packaging of a Property, including negotiating and approving plans, and undertaking to assist in obtaining zoning and necessary variances and necessary financing for the Property, either initially or at a later date.
“Director” means a member of the Board of Directors of the Company.
“Disposition Fee” shall have the meaning set forth in Section 8.04.
“Distributions” means any distributions (which shall not include stock dividends) of money or other property by the Company to owners of Shares, including distributions that may constitute a return of capital for federal income tax purposes.
“Excess Proceeds” shall have the meaning set forth in Article 17.
“GAAP” means accounting principles generally accepted in the United States.
“Gross Investment Amount” means the amount calculated by multiplying the total number of Shares purchased by Stockholders by the issue price, reduced by the total number of shares repurchased by the Company (excluding the number of shares issued as stock dividends and subsequently repurchased by the Company) multiplied by the Average Issue Price.

4

“Gross Proceeds” means the aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for Organization and Offering Expenses.
“Independent Appraiser” means a person or entity with no material current or prior business or personal relationship with the Advisor or the Directors, who is engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the Company, and who is a qualified appraiser of real estate as determined by the Board. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate Appraisers (“M.A.I.”) or the Society of Real Estate Appraisers (“S.R.E.A.”) shall be conclusive evidence of such qualification.
“Joint Venture” means any joint venture, limited liability company or other Affiliate of the Company that owns, in whole or in part, on behalf of the Company any Properties, Loans or other Permitted Investments.
“Listed” or “Listing” shall have the meaning set forth in the Company’s Articles of Incorporation.
“Loans” means mortgage loans and other types of debt financing investments made by the Company or the Partnership, either directly or indirectly, including through ownership interests in a Joint Venture or partnership, and including, without limitation, mezzanine loans, B-notes, bridge loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests, and participations in such loans.
“Market Value” shall have the meaning set forth in Section 8.06(i).
“Merger” means any business combination, merger, reorganization or share exchange involving the Company or its subsidiaries into or with another corporation or other legal person (the “Acquiror”) and as a result of such transaction, less than 51% of the outstanding voting securities or other capital interests of the surviving, resulting or acquiring corporation or other legal person are owned in the aggregate by those who were Stockholders immediately prior to such transaction (other than the Acquiror or its Affiliates if they owned Shares immediately prior to such transaction).
“Merger Consideration Amount” means (i) in the case of a Merger in which the consideration consists solely of cash, the total consideration to be received by holders of Shares outstanding immediately prior to the closing of the Merger, (ii) in the case of a Merger in which the consideration consists of securities traded on a national securities exchange, the product of (x) the number of shares of such securities received by the Stockholders at the closing of the Merger and (y) the market value of such securities, measured by taking the average closing price or the average of the bid and asked price, as the case may be, over a period of 30 consecutive days during which such securities are traded, with such 30-day period ending on the trading day prior to the closing date of the Merger, (iii) in the case of a Merger in which the consideration consist of securities that are not traded on a national securities exchange, the aggregate the fair market value (as of the most recent practicable date) of the securities to be received by the Stockholders as estimated by an independent expert chosen by the Board of Directors, and (iv) in the case of a Merger in which the consideration is some combination of that described above, the sum of clauses (i) through (iii), as applicable.
“MFFO” shall have the meaning set forth in Article 17.

5

“MFFO Surplus” shall have the meaning set forth in Article 17.
“NASAA Guidelines” means the NASAA Statement of Policy Regarding Real Estate Investment Trusts as in effect on the date hereof.
“Net Income” means, for any period, the total revenues applicable to such period, less the total expenses applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, Net Income for purposes of calculating total allowable Operating Expenses (as defined herein) shall exclude the gain from the sale of the Company’s assets.
“Offering” means a Private Offering or Public Offering.
“Operating Cash Flow” means Operating Revenue Cash Flows minus the sum of (i) Operating Expenses, (ii) all principal and interest payments on indebtedness and other sums paid to lenders, (iii) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares, (iv) taxes, (v) incentive fees paid in compliance with Section IV.F. of the NASAA Guidelines and (vi) Acquisition Fees, Origination Fees, Acquisition Expenses, real estate commissions on the resale of real property, and other expenses connected with the acquisition, origination, disposition, and ownership of real estate interests, loans or other property (other than commissions on the sale of assets other than real property), such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property.
“Operating Expenses” means all costs and expenses incurred by the Company, as determined under GAAP, that in any way are related to the operation of the Company or to Company business, including fees paid to the Advisor, but excluding (i) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad loan reserves, (v) incentive fees paid in compliance with Section IV.F. of the NASAA Guidelines and (vi) Acquisition Fees, Origination Fees, Acquisition Expenses, real estate commissions on the resale of real property, and other expenses connected with the acquisition, origination, disposition, and ownership of real estate interests, loans or other property (other than commissions on the sale of assets other than real property), such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property.
“Operating Revenue Cash Flows” means the Company’s cash flow from ownership and/or operation of (i) Properties, (ii) Loans, (iii) Permitted Investments, (iv) short-term investments, and (v) interests in Properties, Loans and Permitted Investments owned by any Joint Venture or any partnership in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner.

6

“Organization and Offering Expenses” means all expenses incurred by or on behalf of the Company in connection with or in preparing the Company for an Offering and including, to the extent applicable, the qualification, registration and regulatory filings of the Offering and the marketing and distribution of the Shares, whether incurred before or after the date of this Agreement, which may include but are not limited to, total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys); any expense allowance granted by the Company to the underwriter or any reimbursement of expenses of the underwriter by the Company; expenses for printing, engraving and mailing; compensation of employees while engaged in sales activity; charges of transfer agents, registrars, trustees, escrow holders, depositaries and experts; and expenses of qualification of the sale of the securities under Federal and State laws, including taxes and fees, accountants’ and attorneys’ fees.
“Origination Fees” means the fee payable to the Advisor pursuant to Section 8.02 plus all other fees and commissions, excluding Acquisition Expenses, paid by any Person to any Person in connection with making or investing in any Loan by the Company.
“Partnership” means KBS Growth & Income Limited Partnership, a Delaware limited partnership formed to own and operate Properties, Loans and other Permitted Investments on behalf of the Company.
“Permitted Investments” means all investments (other than Properties, Loans and short-term investments acquired for purposes of cash management) in which the Company may acquire an interest, either directly or indirectly, including through ownership interests in a Joint Venture or partnership, pursuant to its Articles of Incorporation, Bylaws and the investment objectives and policies adopted by the Board from time to time.
“Person” means an individual, corporation, partnership, estate, trust (including a trust qualified under Section 401(a) or 501(c) (17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or political subdivision thereof, and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.
“Private Offering” means an offering of Shares pursuant to an exemption from registration under the Securities Act of 1933, as amended.
“Property” or “Properties” means any real property or properties transferred or conveyed to the Company or the Partnership, either directly or indirectly, and/or any real property or properties transferred or conveyed to a Joint Venture or partnership in which the Company is, directly or indirectly, a co-venturer or partner.
“Property Manager” means an entity that has been retained to perform and carry out, at one or more of the Properties, property-management services, excluding persons, entities or independent contractors retained or hired to perform facility management or other services or tasks at a particular Property, the costs for which are passed through to and ultimately paid by the tenant at such Property.

7

“Public Offering” means the public offering of Shares pursuant to the effective Registration Statement filed under the Securities Act of 1933 (file no. 333-207471), as amended.
“REIT” means a “real estate investment trust” under Sections 856 through 860 of the Code.
“Sale” means any transaction or series of related transactions whereby: (A) the Company or the Partnership sells, grants, transfers, conveys, or relinquishes its ownership of any Property, Loan or other Permitted Investment or portion thereof, including the transfer of any Property that is the subject of a ground lease, and including any event with respect to any Property, Loan or other Permitted Investment that gives rise to a significant amount of insurance proceeds or condemnation awards, and including the issuance by one of the Company’s subsidiaries of any asset-backed securities as part of a securitization transaction; (B) the Company or the Partnership sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all of the interest of the Company or the Partnership in any Joint Venture or partnership in which it is, directly or indirectly, a co-venturer or partner; or (C) any Joint Venture or partnership (in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner) sells, grants, transfers, conveys, or relinquishes its ownership of any Property, Loan or other Permitted Investment or portion thereof, including any event with respect to any Property, Loan or other Permitted Investment that gives rise to insurance claims or condemnation awards, and including the issuance by such Joint Venture or partnership or one of its subsidiaries of any asset-backed securities as part of a securitization transaction.
“SEC” means the United States Securities and Exchange Commission.
“Settlement” means the prepayment, maturity, workout or other settlement of any Loan or other Permitted Investment or portion thereof owned, directly or indirectly, by (A) the Company or the Partnership or (B) any Joint Venture or any partnership in which the Company or the Partnership is, directly or indirectly, a partner.
“Shares” means the shares of common stock of the Company, par value $.01 per share.
“Stockholders” means the registered holders of the Shares.
“Stockholders’ 6% Return” means, as of any date, an aggregate amount equal to a 6% cumulative, non-compounded, annual return on Gross Investment Amount (calculated like simple interest on a daily basis based on a three hundred sixty-five day year). For purposes of calculating the Stockholders’ 6% Return, Gross Investment Amount shall be determined for each day during the period for which the Stockholders’ 6% Return is being calculated, including a daily adjustment to reflect shares repurchased by the Company (excluding shares issued as stock dividends and subsequently repurchased by the Company), and shall be calculated net of (1) Distributions of Cash from Sales and Settlements, (2) Distributions of Operating Cash Flow to the extent such Distributions of Operating Cash Flow provide a cumulative, non-compounded, annual return in excess of 6%, as such amounts are computed on a daily basis based on a three hundred sixty-five day year and (3) Distributions of Cash from Financings, except to the extent such Distributions would be required to supplement Distributions of Operating Cash Flow in order to achieve a cumulative, non-compounded, annual return of 6%, as such amounts are computed on a daily basis based on a three hundred sixty-five day year.
“Subordinated Incentive Fee” means the fee payable to the Advisor under certain circumstances, as calculated in Section 8.06.

8

“Subordinated Performance Fee Due Upon Termination” means a fee payable in the form of a promissory note (the “Performance Fee Note”) in a principal amount equal to (1) 15% of the amount, if any, by which (a) the Appraised Value of the Company’s Properties at the Termination Date, less amounts of all third-party indebtedness secured by the Company’s Properties, plus the fair market value of all other Loans and Permitted Investments of the Company at the Termination Date, less amounts of third-party indebtedness related to such Loans and Permitted Investments, plus the fair market value of the Company’s other assets and liabilities, plus total Distributions through the Termination Date exceeds (b) the Gross Investment Amount plus total Distributions required to be made to the stockholders in order to pay the Stockholders’ 6% Return from inception through the Termination Date. After the Termination Date, the Company shall repay the Performance Fee Note at such time as the Company completes the first Sale or Settlement after the date Stockholders have received Distributions in an aggregate amount equal to the sum of the Stockholders’ 6% Return and the Gross Investment Amount (the “Performance Fee Trigger Date”) and which Performance Fee will be paid using Cash from Sales and Settlements. If the Cash from Sales and Settlements from the first Sale or Settlement after the Performance Fee Trigger Date is insufficient to pay the Performance Fee Note in full, then the Performance Fee Note shall be paid in part from the Cash from Sales and Settlement from the first Sale or Settlement, and in part from the Cash from Sales and Settlements from each successive Sale or Settlement until the Performance Fee Note is repaid in full. If the Performance Fee Note has not been paid in full within five years from the Termination Date, then upon the Performance Fee Trigger Date, the Advisor, its successors or assigns, may elect to convert the balance of the fee into Shares at a price per Share equal to the average closing price of the Shares over the ten trading days immediately preceding the date of such election if the Shares are Listed at such time. If the Shares are not Listed at the time of the Performance Fee Trigger Date, the Advisor, its successors or assigns, may elect to convert the balance of the fee into Shares at a price per Share equal to the fair market value for the Shares as determined by the Board of Directors based upon the Appraised Value of Company’s Properties on the date of election plus the fair market value of all other Loans and Permitted Investments of the Company on the date of election.
 “Subordinated Share of Cash Flows” has the meaning set forth in Section 8.06.
“Termination Date” means the date of termination of the Agreement determined in accordance with Article 12 hereof.
“2%/25% Guidelines” means the requirement pursuant to the NASAA Guidelines that, in any period of four consecutive fiscal quarters, total Operating Expenses not exceed the greater of 2% of the Company’s Average Invested Assets during such 12-month period or 25% of the Company’s Net Income over the same 12-month period.

9

ARTICLE 2 
APPOINTMENT
The Company hereby appoints the Advisor to serve as its advisor and asset manager on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment.
ARTICLE 3 
DUTIES OF THE ADVISOR
The Advisor is responsible for managing, operating, directing and supervising the operations and administration of the Company and its assets. The Advisor undertakes to use its best efforts to present to the Company potential investment opportunities, to make investment decisions on behalf of the Company, subject to limitations in the Company’s Articles of Incorporation, the direction and oversight of the Board and Section 4.03 hereof, and to provide the Company with a continuing and suitable investment program consistent with the investment objectives and policies of the Company as determined and adopted from time to time by the Board. Subject to the limitations set forth in this Agreement, including Article 4 hereof, and the continuing and exclusive authority of the Board over the management of the Company, the Advisor shall, either directly or by engaging an Affiliate or third party, perform the following duties:
3.01    Organizational and Offering Services. The Advisor shall perform all services related to the organization of the Company or any Offering, other than services that (i) are to be performed by the dealer manager for any Offering, (ii) the Company elects to perform directly or (iii) would require the Advisor to register as a broker-dealer with the SEC or any state.
3.02    Acquisition Services.
(i)    Serve as the Company’s investment and financial advisor and provide relevant market research and economic and statistical data in connection with the Company’s assets and investment objectives and policies;
(ii)    Subject to Section 4 hereof and the investment objectives and policies of the Company: (a) locate, analyze and select potential investments; (b) structure and negotiate the terms and conditions of transactions pursuant to which investments in Properties, Loans and other Permitted Investments will be made; (c) acquire, originate and dispose of Properties, Loans and other Permitted Investments on behalf of the Company; (d) arrange for financing and refinancing and make other changes in the asset or capital structure of investments in Properties, Loans and other Permitted Investments; and (e) enter into leases, service contracts and other agreements for Properties, Loans and other Permitted Investments;
(iii)    Perform due diligence on prospective investments and create due diligence reports summarizing the results of such work;

10

(iv)    Prepare reports regarding prospective investments that include recommendations and supporting documentation necessary for the Directors to evaluate the proposed investments;
(v)    Obtain reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of contemplated investments of the Company;
(vi)    Deliver to or maintain on behalf of the Company copies of all appraisals obtained in connection with the Company’s investments; and
(vii)    Negotiate and execute approved investments and other transactions, including prepayments, maturities, workouts and other settlements of Loans and other Permitted Investments.
3.03    Asset Management Services.
(i)    Real Estate and Related Services:
(a)    Investigate, select and, on behalf of the Company, engage and conduct business with (including enter contracts with) such Persons as the Advisor deems necessary to the proper performance of its obligations as set forth in this Agreement, including but not limited to consultants, accountants, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, developers, construction companies, Property Managers and any and all Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services;
(b)    Negotiate and service the Company’s debt facilities and other financings;
(c)    Monitor applicable markets and obtain reports (which may be prepared by the Advisor or its Affiliates) where appropriate, concerning the value of investments of the Company;
(d)    Monitor and evaluate the performance of each asset of the Company and the Company’s overall portfolio of assets, provide daily management services to the Company and perform and supervise the various management and operational functions related to the Company’s investments;
(e)    Formulate and oversee the implementation of strategies for the administration, promotion, management, operation, maintenance, improvement, financing and refinancing, marketing, leasing and disposition of Properties, Loans and other Permitted Investments on an overall portfolio basis;
(f)    Consult with the Company’s officers and the Board and assist the Board in the formulation and implementation of the Company’s financial policies, and, as necessary, furnish the Board with advice and recommendations with 

11

respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the Company;
(g)    Oversee the performance by the Property Managers of their duties, including collection and proper deposits of rental payments and payment of Property expenses and maintenance;
(h)    Conduct periodic on-site property visits to some or all (as the Advisor deems reasonably necessary) of the Properties to inspect the physical condition of the Properties and to evaluate the performance of the Property Managers;
(i)    Review, analyze and comment upon the operating budgets, capital budgets and leasing plans prepared and submitted by each Property Manager and aggregate these property budgets into the Company’s overall budget;
(j)    Coordinate and manage relationships between the Company and any co-venturers or partners; and
(k)    Consult with the Company’s officers and the Board and provide assistance with the evaluation and approval of potential asset dispositions, sales and refinancings.
(ii)    Accounting and Other Administrative Services:
(a)    Provide the day-to-day management of the Company and perform and supervise the various administrative functions reasonably necessary for the management of the Company;
(b)    From time to time, or at any time reasonably requested by the Board, make reports to the Board on the Advisor’s performance of services to the Company under this Agreement;
(c)    Make reports to the Conflicts Committee each quarter of the investments that have been made by other programs sponsored by the Advisor or any of its Affiliates, including KBS Realty Advisors LLC, as well as any investments that have been made by the Advisor or any of its Affiliates directly;
(d)    Provide or arrange for any administrative services and items, legal and other services, office space, office furnishings, personnel and other overhead items necessary and incidental to the Company’s business and operations;
(e)    Provide financial and operational planning services;
(f)    Maintain accounting and other record-keeping functions at the Company and investment levels, including information concerning the activities of the Company as shall be required to prepare and to file all periodic financial 

12

reports, tax returns and any other information required to be filed with the SEC, the Internal Revenue Service and any other regulatory agency;
(g)    Maintain and preserve all appropriate books and records of the Company;
(h)    Provide tax and compliance services and coordinate with appropriate third parties, including the Company’s independent auditors and other consultants, on related tax matters;
(i)    Provide the Company with all necessary cash management services;
(j)    Manage and coordinate with the transfer agent the distribution process and payments to Stockholders;
(k)    Consult with the Company’s officers and the Board and assist the Board in evaluating and obtaining adequate insurance coverage based upon risk management determinations;
(l)    Provide the Company’s officers and the Board with timely updates related to the overall regulatory environment affecting the Company, as well as managing compliance with such matters, including but not limited to compliance with the Sarbanes-Oxley Act of 2002;
(m)    Consult with the Company’s officers and the Board relating to the corporate governance structure and appropriate policies and procedures related thereto;
(n)    Perform all reporting, record keeping, internal controls and similar matters in a manner to allow the Company to comply with applicable law, including federal and state securities laws and the Sarbanes-Oxley Act of 2002;
(o)    Notify the Board of all proposed material transactions before they are completed; and
(p)    Do all things necessary to assure its ability to render the services described in this Agreement.
3.04    Stockholder Services. Manage services for and communications with Stockholders, including answering phone calls, preparing and sending written and electronic reports and other communications;
(i)    Oversee the performance of the transfer agent and registrar;
(ii)    Establish technology infrastructure to assist in providing Stockholder support and service; and

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(iii)    Consistent with Section 3.01, the Advisor shall perform the various subscription processing services reasonably necessary for the admission of new Stockholders.
3.05    Other Services. Except as provided in Article 7, the Advisor shall perform any other services reasonably requested by the Company (acting through the Conflicts Committee).
ARTICLE 4 
AUTHORITY OF ADVISOR
4.01    General. All rights and powers to manage and control the day-to-day business and affairs of the Company shall be vested in the Advisor. The Advisor shall have the power to delegate all or any part of its rights and powers to manage and control the business and affairs of the Company to such officers, employees, Affiliates, agents and representatives of the Advisor or the Company as it may deem appropriate. Any authority delegated by the Advisor to any other Person shall be subject to the limitations on the rights and powers of the Advisor specifically set forth in this Agreement or the Articles of Incorporation.
4.02    Powers of the Advisor. Subject to the express limitations set forth in this Agreement and the continuing and exclusive authority of the Board over the management of the Company, the power to direct the management, operation and policies of the Company, including making, financing and disposing of investments, shall be vested in the Advisor, which shall have the power by itself and shall be authorized and empowered on behalf and in the name of the Company to carry out any and all of the objectives and purposes of the Company and to perform all acts and enter into and perform all contracts and other undertakings that it may in its sole discretion deem necessary, advisable or incidental thereto to perform its obligations under this Agreement.
4.03    Approval by the Board. Notwithstanding the foregoing, the Advisor may not take any action on behalf of the Company without the prior approval of the Board or duly authorized committees thereof if the Articles of Incorporation or Maryland General Corporation Law require the prior approval of the Board. If the Board or a committee of the Board must approve a proposed investment, financing or disposition or chooses to do so, the Advisor will deliver to the Board or committee, as applicable, all documents required by it to evaluate such investment, financing or disposition.
4.04    Modification or Revocation of Authority of Advisor. The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority or approvals set forth in Article 3 and this Article 4 hereof; provided, however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company prior to the date of receipt by the Advisor of such notification.
ARTICLE 5 
BANK ACCOUNTS
The Advisor may establish and maintain one or more bank accounts in the name of the Company and may collect and deposit into any 

14

such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company, under such terms and conditions as the Board may approve, provided that no funds shall be commingled with the funds of the Advisor. The Advisor shall from time to time render appropriate accountings of such collections and payments to the Board and the independent auditors of the Company.
ARTICLE 6
RECORDS AND FINANCIAL STATEMENTS
The Advisor, in the conduct of its responsibilities to the Company, shall maintain adequate and separate books and records for the Company’s operations in accordance with GAAP, which shall be supported by sufficient documentation to ascertain that such books and records are properly and accurately recorded. Such books and records shall be the property of the Company and shall be available for inspection by the Board and by counsel, auditors and other authorized agents of the Company, at any time or from time to time during normal business hours. Such books and records shall include all information necessary to calculate and audit the fees or reimbursements paid under this Agreement. The Advisor shall utilize procedures to attempt to ensure such control over accounting and financial transactions as is reasonably required to protect the Company’s assets from theft, error or fraudulent activity. All financial statements that the Advisor delivers to the Company shall be prepared on an accrual basis in accordance with GAAP, except for special financial reports that by their nature require a deviation from GAAP. The Advisor shall liaise with the Company’s officers and independent auditors and shall provide such officers and auditors with the reports and other information that the Company so requests.
ARTICLE 7 
LIMITATION ON ACTIVITIES
Notwithstanding any provision in this Agreement to the contrary, the Advisor shall not take any action that, in its sole judgment made in good faith, would (i) adversely affect the ability of the Company to qualify or continue to qualify as a REIT under the Code, (ii) subject the Company to regulation under the Investment Company Act of 1940, as amended, (iii) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, its Shares or its other securities, (iv) require the Advisor to register as a broker-dealer with the SEC or any state, or (v) violate the Articles of Incorporation or Bylaws. In the event an action that would violate (i) through (v) of the preceding sentence but such action has been ordered by the Board, the Advisor shall notify the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Board. In such event, the Advisor shall have no liability for acting in accordance with the specific instructions of the Board so given.
ARTICLE 8
 FEES
8.01    Acquisition Fees. Prior to execution of this Agreement, as compensation for the investigation, selection and acquisition (by purchase, investment or exchange) of Properties and other Permitted Investments, the Company paid an Acquisition Fee to the Advisor for each such investment. No Acquisition Fee shall be paid to the Advisor following execution of this Agreement.

15

8.02    Origination Fees. Prior to the execution of this Agreement, as compensation for the investigation, selection, sourcing and acquisition or origination of Loans, the Company paid an Origination Fee to the Advisor for each such acquisition or origination. No Origination Fee shall be paid to the Advisor following execution of this Agreement.
8.03    Asset Management Fees.
(i)    Except as provided in Section 8.03(ii) hereof, the Company shall pay the Advisor as compensation for the services described in Section 3.03 hereof a monthly fee (the “Asset Management Fee”) in an amount equal to one-twelfth of 1.6% of the sum of the Cost of Real Estate Investments and the Cost of Loans and other Permitted Investments. The Advisor shall submit a monthly invoice to the Company, accompanied by a computation of the Asset Management Fee for the applicable period. The Asset Management Fee shall be payable on the last day of such month, or the first business day following the last day of such month. The Asset Management Fee may not be taken, in whole or in part, as to any period in the sole discretion of the Advisor. All or any portion of the Asset Management Fees not taken as to any period shall be deferred without interest and may be paid in such other fiscal period as the Advisor shall determine.
(ii)    Notwithstanding anything contained in Section 8.03(i) to the contrary, a Property, Loan or other Permitted Investment that has suffered an impairment in value, reduction in cash flow or other negative circumstances may either be excluded from the calculation of the Cost of Real Estate Investments or the Cost of Loans and other Permitted Investments or included in such calculation at a reduced value that is recommended by the Advisor and the Company’s management and then approved by a majority of the members of the Conflicts Committee, and the resulting change in the Asset Management Fee with respect to such investment will be applicable upon the earlier to occur of the date on which (i) such investment is sold, (ii) such investment is surrendered to a Person other than the Company, its direct or indirect wholly owned subsidiary or a Joint Venture or partnership in which the Company has an interest, (iii) the Advisor determines that it will no longer pursue collection or other remedies related to such investment, or (iv) the Advisor recommends a revised fee arrangement with respect to such investment.
8.04    Disposition Fees. If the Advisor or any of its Affiliates provide a substantial amount of services (as determined by the Conflicts Committee) in connection with a Sale, which includes the sale of a single asset or the sale of all or a portion of the Company’s assets through a portfolio sale, merger, or other business combination transaction, the Advisor or such Affiliate shall receive a fee at the closing (the “Disposition Fee”) equal to 1.5% of the Contract Sales Price.  The payment of any Disposition Fee by the Company shall be subject to the limitations contained in the Company’s Charter. Any Disposition Fee payable under this Section 8.03 may be paid in addition to commissions paid to non-Affiliates, provided that the total commissions (including such Disposition Fee) paid to all Persons by the Company for each Sale shall not exceed an amount equal to the lesser of (i) 6.0% of the aggregate Contract Sales Price of each Property, Loan or other Permitted Investment or (ii) the Competitive Real Estate Commission for each Property, Loan or other Permitted Investment. Substantial assistance in connection with the Sale of a Property includes the Advisor’s preparation of an investment package for the Property (including a new investment analysis, rent rolls, tenant information regarding credit, a property 

16

title report, an environmental report, a structural report and exhibits) or such other substantial services performed by the Advisor in connection with a Sale. The Advisor shall submit an invoice to the Company on or about the closing or closings of each disposition, accompanied by a computation of the Disposition Fee. Generally, the Disposition Fee payable to the Advisor shall be paid at the closing of the transaction upon receipt of the invoice by the Company. However, the Disposition Fee may not be taken, in whole or in part, as to any period in the sole discretion of the Advisor. All or any portion of the Disposition Fees not taken as to any period shall be deferred without interest and may be paid in such other period as the Advisor shall determine.
8.05    Subordinated Share of Cash Flows. The Subordinated Share of Cash Flows shall be payable to the Advisor in an amount equal to 15% of Operating Cash Flow and Cash from Sales, Settlements and Financings remaining after the Stockholders have received Distributions in an aggregate amount equal to the sum of:
a.    the Stockholders’ 6% Return and
b.    Gross Investment Amount.
Following Listing, no Subordinated Share of Cash Flows will be paid to the Advisor.
If the Subordinated Share of Cash Flows is payable to the Advisor, the Advisor shall submit a monthly invoice to the Company, accompanied by a computation of the total amount of the Subordinated Share of Cash Flows for the applicable period. Generally, the Subordinated Share of Cash Flows payable to the Advisor shall be paid on the last day of such month, or the first business day following the last day of such month. For the avoidance of doubt, to the extent the payment of the Subordinated Share of Cash Flows is funded other than from Cash From Sales and Settlements, such amounts shall be included in Operating Expenses and subject to the 2%/25% Guidelines.
8.06    Subordinated Incentive Fee.
(i)    Upon Listing, the Advisor shall be entitled to the Subordinated Incentive Fee in an amount equal to 15.0% of the amount by which (i) the market value of the outstanding Shares of the Company, measured by taking the average closing price or the average of the bid and asked price, as the case may be, over a period of 30 days during which the Shares are traded, with such period beginning 180 days after Listing (the “Market Value”), plus the total of all Distributions paid to Stockholders from the Company’s inception until the date that Market Value is determined, exceeds (ii) the sum of (A) Gross Investment Amount and (B) the total Distributions required to be paid to the Stockholders in order to pay the Stockholders’ 6% Return from inception through the date Market Value is determined. The Company shall have the option to pay such fee in the form of cash, Shares, a promissory note or any combination of the foregoing. In the event the Subordinated Incentive Fee is paid to the Advisor following Listing, no other performance fee will be paid to the Advisor.
(ii)    Upon a Merger, the Advisor shall be entitled to the Subordinated Incentive Fee in an amount equal to 15.0% of the amount by which (i) the Merger Consideration Amount, plus the total of all Distributions paid to Stockholders from the Company’s inception until the date of the closing of the Merger, plus all Distributions declared prior 

17

to the Merger but to be paid after the Merger, exceeds (ii) the sum of (A) Gross Investment Amount and (B) the total Distributions required to be paid to the Stockholders in order to pay the Stockholders’ 6% Return from inception through the date of the closing of the Merger. The Company shall have the option to pay such fee in the form of cash or Shares or any combination thereof. In the event the Subordinated Incentive Fee is paid to the Advisor in connection with a Merger, no other performance fee will be paid to the Advisor.
8.07    Changes to Fee Structure. In the event of Listing, the Company and the Advisor shall negotiate in good faith to establish a fee structure appropriate for a perpetual-life entity.
ARTICLE 9
EXPENSES
9.01    General. In general, the Company shall directly pay expenses related to its operations.  Any expenses paid by the Advisor or its Affiliates on behalf of the Company shall be reimbursed to the Advisor; provided, however, upon execution of this Agreement, other than as specifically set forth below with respect to the allocable portion of expenses related to internal audit department personnel providing services to the Company and promotional costs and expenses related to the leasing of properties, the Company shall not reimburse the Advisor or its Affiliates for expenses incurred by the Advisor or its Affiliates in connection with providing services pursuant to this Agreement.  Expense reimbursement obligations of the Company prior to execution of this Agreement are as set forth in the Advisory Agreement dated August 9, 2017.   Reimburseable expenses include, but are not limited to:
(i)    Organization and Offering Expenses related to the Private Offering that commenced on June 11, 2015, provided that no reimbursement shall be made for wholesaling compensation expense;
(ii)    Organization and Offering Expenses related to the Public Offering provided that:
(a)    the Company shall not make any reimbursements for wholesaling compensation expense;
(b)    the Company shall not reimburse the Advisor to the extent such reimbursement would cause the total amount spent by the Company on Organization and Offering Expenses in the Public Offering to exceed 15% of the Gross Proceeds raised in the Public Offering as of the date of the reimbursement;
(c)    the Company will directly pay selling commissions, the dealer manager fees and the stockholder servicing fee related to Shares sold in the primary portion of the Public Offering;
(d)    except as provided in Section 9.01(c), the Advisor and its Affiliates will pay Organization and Offering Expenses in the primary portion of the Public Offering directly, and in addition to amounts paid by the Company pursuant to Section 9.01(c), the Company will reimburse the Advisor and its Affiliates for additional Organization and Offering Expenses in the primary portion of the 

18

Public Offering up to 1% of the Gross Proceeds raised in the primary portion of the  Public Offering; and  
(e)    with respect to Organization and Offering Expenses related to the preparation of an online distribution channel in the primary portion of the Public Offering, the Advisor and its Affiliates shall be responsible for all such Organization and Offering Expenses;
(iii)    For the avoidance of doubt, Organization and Offering Expenses related to the Private Offering (which is to be exempt from registration pursuant to Rule 506(c) of the Securities Act) that the Company expects to launch in the fourth quarter of 2017 shall not be reimburseable expenses and the Advisor and its Affiliates shall be responsible for all such expenses; 
(iv)    Acquisition Fees, Origination Fees and Acquisition Expenses incurred in connection with the selection and acquisition of Properties, Loans and other Permitted Investments, including such expenses incurred related to assets pursued or considered but not ultimately acquired by the Company, provided that, notwithstanding anything herein to the contrary, the payment of Acquisition Fees, Origination Fees and Acquisition Expenses by the Company shall be subject to the limitations contained in the Company’s Articles of Incorporation;
(v)    The actual out-of-pocket cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor;
(vii)    Interest and other costs for borrowed money, including discounts, points and other similar fees;
(viii)    Taxes and assessments on income or Properties, taxes as an expense of doing business and any other taxes otherwise imposed on the Company and its business, assets or income;
(ix)    Out-of-pocket costs associated with insurance required in connection with the business of the Company or by its officers and Directors;
(x)    Expenses of managing, improving, developing, operating and selling Properties, Loans and other Permitted Investments owned, directly or indirectly, by the Company, as well as expenses of other transactions relating to such Properties, Loans and other Permitted Investments, including but not limited to prepayments, maturities, workouts and other settlements of Loans and other Permitted Investments;
(xi)    All out-of-pocket expenses in connection with payments to the Board and meetings of the Board and Stockholders;
(xii)    The allocable portion of expenses related to internal audit department personnel providing services to the Company;

19

(xiii)    Promotional costs and expenses related to the leasing of properties;
(xiv)    Out-of-pocket expenses of providing services for and maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities;
(xiv)    Audit, accounting and legal fees, and other fees for professional services relating to the operations of the Company and all such fees incurred at the request, or on behalf of, the Board, the Conflicts Committee or any other committee of the Board; 
(xv)    Out-of-pocket costs for the Company to comply with all applicable laws, regulations and ordinances; 
(xvi)    Expenses connected with payments of Distributions and stock dividends made or caused to be made by the Company to the Stockholders;
(xvii)    Expenses of organizing, redomesticating, merging, liquidating or dissolving the Company or of amending the Articles of Incorporation or the Bylaws; and
(xviii)    All other out-of-pocket costs incurred by the Advisor in performing its duties hereunder.
9.02    Timing of and Additional Limitations on Reimbursements.
(i)    Expenses incurred by the Advisor on behalf of the Company and reimbursable pursuant to this Article 9 shall be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the
Company during each quarter and shall deliver such statement to the Company within 45 days after the end of each quarter.
(ii)    Commencing with the quarter ending December 31, 2016, the following limitation on Operating Expenses shall apply: The Company shall not reimburse the Advisor at the end of any fiscal quarter for Operating Expenses that in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2% of Average Invested Assets or 25% of Net Income (the “2%/25% Guidelines”) for such year unless the Conflicts Committee determines that such excess was justified, based on unusual and nonrecurring factors that the Conflicts Committee deems sufficient. If the Conflicts Committee does not approve such excess as being so justified, any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company. If the Conflicts Committee determines such excess was justified, then, within 60 days after the end of any fiscal quarter of the Company for which total reimbursed Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the direction of the Conflicts Committee, shall cause such fact to be disclosed to the Stockholders in writing (or the Company shall disclose such fact to the Stockholders in the next quarterly report of the Company or by filing a Current Report on Form 8-K with the SEC within 60 days of such quarter end), together with an explanation of the factors the Conflicts Committee considered in determining that such excess expenses were justified. The Company will ensure that such determination will be 

20

reflected in the minutes of the meetings of the Board. All figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent basis.
ARTICLE 10 
VOTING AGREEMENT
The Advisor agrees that, with respect to any Shares now or hereinafter owned by it, the Advisor will not vote or consent on matters submitted to the stockholders of the Company regarding (i) the removal of the Advisor or any Affiliate of the Advisor, and (ii) any transaction between the Company and the Advisor or any of its Affiliates. This voting restriction shall survive until such time that the Advisor is both no longer serving as such and is no longer an Affiliate of the Company.
ARTICLE 11 
RELATIONSHIP OF ADVISOR AND COMPANY;  
OTHER ACTIVITIES OF THE ADVISOR
11.01    Relationship. The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers. Nothing herein contained shall prevent the Advisor from engaging in other activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates. Nor shall this Agreement limit or restrict the right of any manager, director, officer, employee or equityholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other Person. The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein. The Advisor shall promptly disclose to the Board the existence of
any condition or circumstance, existing or anticipated, of which it has knowledge, that creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other Person.
11.02    Time Commitment. The Advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to the Company such time as shall be reasonably necessary to conduct the business and affairs of the Company in an appropriate manner consistent with the terms of this Agreement. The Company acknowledges that the Advisor and its Affiliates and their respective employees, officers and agents may also engage in activities unrelated to the Company and may provide services to Persons other than the Company or any of its Affiliates.
11.03    Investment Opportunities and Allocation. The Advisor shall be required to use commercially reasonable efforts to present a continuing and suitable investment program to the Company that is consistent with the investment policies and objectives of the Company, but neither the Advisor nor any Affiliate of the Advisor shall be obligated generally to present any particular investment opportunity to the Company even if the opportunity is of character that, if presented to the Company, could be taken by the Company. In the event an investment opportunity is located that may be suitable for the Company and other programs advised by the Advisor or any of its Affiliates, including KBS Realty Advisors, the Advisor, in its sole discretion, will have to determine the program or investor for which the investment opportunity 

21

is most suitable based on the investment objectives, portfolio and criteria of each program or investor. This determination must be made in a manner that is fair without favoring any other program or investor. The factors that the Advisor shall consider when determining the program or investor for which an investment opportunity would be the most suitable are the following:
		
	•
	the investment objectives and criteria of each program or investor;

		
	•
	the cash requirements of each program or investor;

		
	•
	the effect of the investment on the diversification of each program’s or investor’s portfolio by type of investment, risk of investment, type of commercial property, geographic location of properties, and tenants of properties and, in the case of debt-related investments, the characteristics of the underlying property;

		
	•
	the policy of each program or investor relating to leverage;

		
	•
	the anticipated cash flow of the property or asset to be acquired;

		
	•
	the income tax effects of the purchase on each program or investor;

		
	•
	the size of the investment; and

		
	•
	the amount of funds available to each program or investor and the length of time such funds have been available for investment.

If a subsequent event or development, such as a delay in the closing of a property or investment or a delay in the construction of a property, causes any investment, in the opinion of the Advisor, to be more appropriate for another program or investor, they may offer the investment to another program or investor. It shall be the duty of the Board to ensure that the allocation method described above is applied fairly to the Company.
ARTICLE 12
THE KBS NAME
The Advisor and its Affiliates have a proprietary interest in the name “KBS.” The Advisor hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free right and license to use the name “KBS” during the term of this Agreement. Accordingly, and in recognition of this right, if at any time the Company ceases to retain the Advisor or one of its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written request from the Advisor, cease to conduct business under or use the name “KBS” or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries to a name that does not contain the name “KBS” or any other word or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any of its Affiliates. At such time, the Company will also make any changes to any trademarks, servicemarks or other marks necessary to remove any references to the word “KBS.” Consistent with the foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having “KBS” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company.

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ARTICLE 13
TERM AND TERMINATION OF THE AGREEMENT
13.01    Term. This Agreement shall terminate April 27, 2019 and may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties. The Company (acting through the Conflicts Committee) will evaluate the performance of the Advisor annually before renewing this Agreement, and each such renewal shall be for a term of no more than one year. Any such renewal must be approved by the Conflicts Committee.
13.02    Termination by Either Party. This Agreement may be terminated upon 60 days written notice without cause or penalty by either the Company (acting through the Conflicts Committee) or the Advisor. The provisions of Articles 1, 10, 12, 13, 15, 16 and 17 shall survive termination of this Agreement.
13.03    Payments on Termination and Survival of Certain Rights and Obligations. Payments to the Advisor pursuant to this Section 13.03 shall be subject to the 2%/25% Guidelines to the extent applicable.
(i)    After the Termination Date, the Advisor shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company within 30 days after the effective date of such termination (A) all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this Agreement and (B) the Subordinated Performance Fee Upon Termination, provided that no Subordinated Performance Fee Upon Termination will be paid if the Company has paid or is obligated to pay the Subordinated Incentive Fee.  If at the Termination Date, the Advisor will be entitled to the Subordinated Performance Fee Upon Termination upon the Performance Fee Trigger Date, then the Company agrees that until the Subordinated Performance Fee
Upon Termination is paid, if ever, the Company will not pay to any subsequent external advisor that is not affiliated with KBS Capital Advisors LLC (1) any fee or other compensation based on a participation in the Company’s cash flow from operation activities, cash flows from investing activities and cash flows from financing activities (each as defined by GAAP) or any fee or compensation based on an increase in the value of the Company or its assets or (2) any fee or compensation upon a Merger or Listing.
(ii)    The Advisor shall promptly upon termination:
(a)    pay over to the Company all money collected pursuant to this Agreement, if any, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;
(b)    deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board;
(c)    deliver to the Board all assets and documents of the Company then in the custody of the Advisor; and

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(d)    cooperate with the Company to provide an orderly transition of advisory functions.
(iii)    Notwithstanding anything contained in this Section 13.03 to the contrary, the obligations of the Company and the Advisor set forth in Article 17 of this Agreement shall survive the termination of this Agreement.
ARTICLE 14
ASSIGNMENT
This Agreement may be assigned by the Advisor to an Affiliate with the consent of the Conflicts Committee. The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Board or the Conflicts Committee. This Agreement shall not be assigned by the Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or other organization that is a successor to all of the assets, rights and obligations of the Company, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement.
ARTICLE 15
INDEMNIFICATION AND LIMITATION OF LIABILITY
15.01    Indemnification. Except as prohibited by the restrictions provided in this Section 15.01, Section 15.02 and Section 15.03, the Company shall indemnify, defend and hold harmless the Advisor and its Affiliates, including their respective officers, directors, equity holders, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance. Any indemnification of the Advisor may be made only out of the net assets of the Company and not from Stockholders.
Notwithstanding the foregoing, the Company shall not indemnify the Advisor or its Affiliates for any loss, liability or expense arising from or out of an alleged violation of federal or state securities laws by such party unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged material securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the SEC and of the published position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws.
15.02    Limitation on Indemnification. Notwithstanding the foregoing, the Company shall not provide for indemnification of the Advisor or its Affiliates for any liability or loss suffered by any of them, nor shall any of them be held harmless for any loss or liability suffered by the Company, unless all of the following conditions are met:

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(i)    The Advisor or its Affiliates have determined, in good faith, that the course of conduct that caused the loss or liability was in the best interests of the Company.
(ii)    The Advisor or its Affiliates were acting on behalf of or performing services for the Company.
(iii)    Such liability or loss was not the result of negligence or misconduct by the Advisor or its Affiliates.
15.03    Limitation on Payment of Expenses. The Company shall pay or reimburse reasonable legal expenses and other costs incurred by the Advisor or its Affiliates in advance of the final disposition of a proceeding only if (in addition to the procedures required by the Maryland General Corporation Law, as amended from time to time) all of the following are satisfied: (i) the proceeding relates to acts or omissions with respect to the performance of duties or services on behalf of the Company, (ii) the legal proceeding was initiated by a third party who is not a stockholder or, if by a stockholder acting in his or her capacity as such, a court of competent jurisdiction approves such advancement and (iii) the Advisor or its Affiliates undertake to repay the amount paid or reimbursed by the Company, together with the applicable legal rate of interest thereon, if it is ultimately determined that the particular indemnitee is not entitled to indemnification.
ARTICLE 16
MISCELLANEOUS
16.01    Notices. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Articles of Incorporation, the Bylaws or is accepted by the party to whom it is given, and shall be given by being delivered by hand or by overnight mail or other overnight delivery service to the addresses set forth herein:
To the Company or the Board:
KBS Growth & Income REIT, Inc.
800 Newport Center Drive, Suite 700
Newport Beach, California 92660
To the Advisor:
KBS Capital Advisors LLC
800 Newport Center Drive, Suite 700
Newport Beach, California 92660
Either party may at any time give notice in writing to the other party of a change in its address for the purposes of this Section 16.01.

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16.02    Modification. This Agreement shall not be changed, modified, terminated or discharged, in whole or in part, except by an instrument in writing signed by both parties hereto, or their respective successors or permitted assigns.
16.03    Severability. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.
16.04    Construction. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware.
16.05    Entire Agreement. This Agreement contains the entire agreement and understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing.
16.06    Waiver. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.
16.07    Gender. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.
16.08    Titles Not to Affect Interpretation. The titles of Articles and Sections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.
16.09    Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.
ARTICLE 17
ADVANCE
Notwithstanding anything contained in Article 9 of the Agreement to the contrary, the Advisor hereby agrees to advance funds to the Company equal to the cumulative amount of cash 

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distributions declared by the Company for distribution record dates through the period ended May 31, 2016 and to advance funds to the Company, to the extent and in the amount requested by the Company, equal to an amount up to the cumulative amount of cash distributions declared by the Company for distribution record dates for the period from June 1, 2016 to June 30, 2016 (such amounts advanced, the “Advance”).
The Advisor further agrees that the Company will only be obligated to repay the Advisor for the Advance if and to the extent that:
		
	(i)
	the Company’s modified funds from operations (“MFFO”), as such term is defined by the Investment Program Association and interpreted by the Company, for the immediately preceding month exceeds the amount of cash distributions declared for record dates of such prior month (an “MFFO Surplus”), and the Company shall pay the Advisor the amount of the MFFO Surplus to reduce the principal amount outstanding under the Advance, provided that such payments shall only be made if management in its sole discretion expects an MFFO Surplus to be recurring for at least the next two calendar quarters, determined on a quarterly basis; or

		
	(ii)
	the Advance may be repaid from excess proceeds (“Excess Proceeds”) from the Company’s third-party financings, provided that the amount of any such Excess Proceeds that may be used to repay the principal amount outstanding under the Advance shall be determined by the Conflicts Committee of the Company in its sole discretion.

The Advisor understands and agrees that no interest shall accrue on the Advance. To the extent payment of any amount is due to the Advisor hereunder, the Company shall pay the Advisor no later than the last business day of the month in which the amount of such payment is determined, or the first business day of the following month.

[The remainder of this page is intentionally left blank.
Signature page follows.]

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

KBS GROWTH & INCOME REIT, INC.

		
	By:
	/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr., Chief Executive Officer

KBS CAPITAL ADVISORS LLC

		
	By:
	PBren Investments, L.P., a Manager

		
	By:
	PBren Investments, LLC, as general partner

		
	By:
	/s/ Peter M. Bren

Peter M. Bren, Manager

		
	By:
	Schreiber Real Estate Investments, L.P., a Manager

By: Schreiber Investments, LLC, as general partner

		
	By:
	/s/ Charles J. Schreiber, Jr.

Charles J. Schreiber, Jr., Manager

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