Document:

Exhibit 10.22

 

ANGEL OAK MORTGAGE, INC.

 

2021 EQUITY INCENTIVE PLAN

 

Section 1.     Purpose;
Types of Awards; Construction.

 

The purposes of the Angel Oak
Mortgage, Inc. 2021 Equity Incentive Plan (the “Plan”) are to afford an incentive to (i) the directors, officers,
employees and consultants of Angel Oak Mortgage, Inc., a Maryland corporation (the “Company”), and (ii) Falcons
I, LLC, the manager of the Company (the “Manager”), and the members, directors, trustees, officers and employees
of the Manager or its Affiliates and other entities that provide services to the Company and the employees of such entities, to continue
(if applicable) as directors, officers, employees and consultants of the Company, to continue their service to the Company, to increase
their efforts on behalf of the Company and to promote the success of the Company’s business. The Plan provides for the grant of
Options (which may be in the form of Incentive Stock Options or Nonqualified Stock Options), SARs, Restricted Stock, Restricted Stock
Units, unrestricted Shares, Performance Awards, LTIP Units and Other Stock-Based Awards.

 

Section 2.     Definitions.

 

For purposes of the Plan or
any Award Agreement, unless such Award Agreement provides otherwise, the following terms shall be defined as set forth below:

 

(a)            “Affiliate”
means (i) any Person directly or indirectly controlling, controlled by, or under common control with such other Person, (ii) any
executive officer or general partner of such other Person and (iii) any legal entity for which such Person acts as an executive officer
or general partner.

 

(b)            “Award”
means any Option, SAR, Restricted Stock, Restricted Stock Unit, unrestricted Share, Performance Award, LTIP Unit or Other Stock-Based
Award granted under the Plan.

 

(c)            “Award
Agreement” means any written agreement, contract or other instrument or document evidencing an Award.

 

(d)            “Board”
means the Board of Directors of the Company.

 

(e)            “Change
in Control” means the happening of any of the following:

 

(i)         
     any “person,” including a “group” (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act, but excluding the Company, any entity controlling, controlled by or
under common control with the Company, any trustee, fiduciary or other person or entity holding securities under any employee
benefit plan or trust of the Company or any such entity, and with respect to any particular Participant, such Participant and any
 “group” (as such term is used in Section 13(d)(3) of the Exchange Act) of which such Participant is a member),
is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or
indirectly, of shares of the Company representing 35% or more of either (A) the combined voting power of the Company’s
then outstanding securities or (B) the then outstanding Shares (other than as a result of an acquisition of securities directly
from the Company); or

 

(ii)            any
consolidation or merger of the Company where the stockholders of the Company immediately prior to the consolidation or merger, would not,
immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the surviving or resulting
entity in the consolidation or merger (or of its ultimate parent entity, if any); or

 

(iii)           there
shall occur (A) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged
by any party as a single plan) of all or substantially all of the assets of the Company, other than a sale or transfer by the Company
of all or substantially all of the Company’s assets to an entity at least 50% of the combined voting power of the securities of
which are owned by “persons” (as defined above) in substantially the same proportion as their ownership of the Company immediately
prior to such sale or transfer or (B) the approval by stockholders of the Company of any plan or proposal for the liquidation or
dissolution of the Company; or

 

    

     

    

 

(iv)           the
members of the Board at the beginning of any consecutive 24-calendar-month period (the “Incumbent Directors”) cease
for any reason other than due to death to constitute at least a majority of the members of the Board; provided that any director
whose election, or nomination for election by the Company’s stockholders, was approved or ratified by a vote of a majority of the
members of the Board (or a committee thereof) then still in office who were Incumbent Directors at the beginning of such 24-calendar-month
period shall be deemed to be an Incumbent Director for purposes of the foregoing; provided further that any such director whose
initial assumption of office occurs as a result of either an actual or threatened election contest or other actual or threatened solicitation
of proxies or consents by or on behalf of an individual, entity or group other than the Board shall not be considered an Incumbent Director.

 

Notwithstanding the foregoing,
no event or condition shall constitute a Change in Control to the extent that, if it were, a 20% tax would be imposed under Section 409A
of the Code; provided that, in such a case, the event or condition shall continue to constitute a Change in Control to the maximum
extent possible (e.g., if applicable, in respect of vesting without an acceleration of distribution) without causing the imposition
of such 20% tax.

 

(f)            “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder.

 

(g)            “Committee”
means the committee established by the Board to administer the Plan, the composition of which shall at all times consist of “non-employee
directors” within the meaning of Rule 16b-3 under the Exchange Act.

 

(h)            “Company”
means Angel Oak Mortgage, Inc., a corporation organized under the laws of the State of Maryland, or any successor thereto.

 

(i)            “Effective
Date” means June 21, 2021.

 

(j)            “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated
thereunder.

 

(k)            “Fair
Market Value” means, with respect to property other than Shares, the fair market value of such property determined by such methods
or procedures as shall be established from time to time by the Board and, with respect to Shares, a
price that is based on the opening, closing, actual, high, low, or average selling prices of a Share as reported on the established stock
exchange on which the Shares are principally traded on the applicable date, the preceding trading day, the next succeeding trading
day, or an average of trading days, as determined by the Board in its discretion. Unless the Board determines otherwise, Fair Market Value
shall be deemed to be equal to the reported closing price of a Share on the date as of which such value is being determined or, if
there shall be no reported transactions for such date, on the preceding date for which transactions were reported; provided that
if the Shares are not publicly traded at the time a determination of their value is required to be made hereunder, the determination
of their Fair Market Value shall be made by the Committee or the Board in such manner as it deems appropriate and in accordance with Section 409A
of the Code.

 

(l)            “Incentive
Stock Option” means an Option that meets the requirements of Section 422 of the Code, or any successor provision, which
is intended by the Committee to constitute an Incentive Stock Option.

 

(m)          “Incumbent
Directors” shall have the meaning given to the term under Section 2(e)(iv).

 

(n)          “LTIP
Unit” means an OP Unit, granted to a Participant under Section 6(b)(iv), subject to the restrictions set forth in such
Section.

 

(o)          “Manager”
means Falcons I, LLC, the manager of the Company.

 

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(p)          “Non-Employee
Director” means any director of the Company who is not an officer, employee or Affiliate of the Company or any Subsidiary.

 

(q)          “Nonqualified
Stock Option” means an Option which is not an Incentive Stock Option.

 

(r)           “Operating
Partnership” means Angel Oak Mortgage Operating Partnership, LP, a Delaware limited partnership.

 

(s)          “Option”
means a right, granted to a Participant under Section 6(b)(i), to purchase Shares.

 

(t)           “OP
Unit” means a unit of partnership interest in the Operating Partnership.

 

(u)          “Other
Stock-Based Award” means a right or other interest granted to a Participant that may be denominated or payable in, valued in
whole or in part by reference to, or otherwise based on, or related to, Shares, including but not limited to unrestricted Shares or distribution
equivalent rights.

 

(v)          “Participant”
means an eligible Person who has been granted an Award under the Plan.

 

(w)         “Performance
Award” means a right to receive an amount of cash, Shares, or a combination of both, contingent upon the attainment of specified
performance goals within a specified Performance Period.

 

(x)          “Performance
Period” means any period designated by the Board during which (i) the performance goals applicable to an Award shall be
measured and (ii) the conditions to vesting applicable to an Award shall remain in effect.

 

(y)         “Person”
means any natural person, corporation, partnership, association, limited liability company, estate, trust, joint venture, any federal,
state or municipal government or any bureau, department or agency thereof or any other legal entity and any fiduciary acting in such capacity
on behalf of the foregoing.

 

(z)          “Plan”
means this Angel Oak Mortgage, Inc. 2021 Equity Incentive Plan, as amended from time to time.

 

(aa)       “Restricted
Stock” means an Award of Shares to a Participant under Section 6(b)(ii) that may be subject to certain restrictions
and to a risk of forfeiture.

 

(bb)      “Restricted
Stock Unit” means a right granted to a Participant under Section 6(b)(iii) to receive from the Company or the Operating
Partnership Shares, cash or other property at the end of a specified period, which right may be conditioned on the satisfaction of specified
performance or other criteria.

 

(cc)       “SAR”
means a stock appreciation right granted to a Participant under Section 6(b)(i) that represents an unfunded and unsecured promise
to deliver Shares, cash, other securities, other Awards or other property equal in value to the excess, if any, of the Fair Market Value
per Share over the base price per Share of the SAR.

 

(dd)      “Securities
Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder.

 

(ee)       “Share”
means a share of common stock, par value $0.01 per share, of the Company.

 

(ff)        “Stock
Award” means a Restricted Stock Award, Restricted Stock Unit Award or Other Stock-Based
Award.

 

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(gg)     “Subsidiary”
means any corporation, limited liability company, partnership, joint venture or similar entity in which the Company owns, directly or
indirectly, an equity interest possessing more than 50% of the combined voting power of the total outstanding equity interests of such
entity.

 

Section 3.     Administration.

 

The Plan shall be administered
by the Board. Except with respect to the amendment, modification, suspension or early termination of the Plan and any change or adjustment
to the maximum number of Shares and/or OP Units that may be issued pursuant to Awards granted under the Plan pursuant to Section 5,
the Board may appoint a Committee to administer all or a portion of the Plan. To the extent that the Board so delegates its authority,
references herein to the Board shall be deemed references to the Committee. The Board may delegate to one or more agents such administrative
duties as it may deem advisable, and the Committee or any other Person to whom the Board has delegated duties as aforesaid may employ
one or more Persons to render advice with respect to any responsibility the Board or such Committee or Person may have under the Plan.
No member of the Board or Committee shall be liable for any action taken or determination made in good faith with respect to the Plan
or any Award granted hereunder.

 

The Board shall have the authority
in its discretion, subject to and not inconsistent with the express provisions of the Plan, to administer the Plan and to exercise all
the powers and authorities either specifically granted to it under the Plan or necessary or advisable in the administration of the Plan,
including, without limitation, the authority to: (i) grant Awards; (ii) determine the Persons to whom and the time or times
at which Awards shall be granted; (iii) determine the type and number of Awards to be granted, the number of Shares and/or OP Units
to which an Award may relate and the terms, conditions, restrictions and performance criteria relating to any Award; (iv) determine
whether, to what extent, and under what circumstances an Award may be settled, cancelled, forfeited, exchanged, or surrendered; (v) make
adjustments in the terms and conditions of Awards; (vi) construe and interpret the Plan and any Award; (vii) prescribe, amend
and rescind rules and regulations relating to the Plan; (viii) determine the terms and provisions of the Award Agreements (which
need not be identical for each Participant); and (ix) make all other determinations deemed necessary or advisable for the administration
of the Plan. All decisions, determinations and interpretations of the Board shall be final and binding on all Persons, including but not
limited to, the Company, any parent or Subsidiary, any Participant (or any Person claiming any rights under the Plan from or through any
Participant) and any stockholder. Notwithstanding any provision of the Plan or any Award Agreement to the contrary, except as provided
in the third paragraph of Section 5, neither the Board nor the Committee may take any action which would have the effect of reducing
the aggregate exercise or purchase price of any Award without obtaining the approval of the Company’s stockholders.

 

Section 4.     Eligibility.

 

Awards may be granted, in the
discretion of the Board, to Participants. In determining the Persons to whom Awards shall be granted and the type of any Award (including
the number of Shares to be covered by such Award), the Board shall take into account such factors as the Board shall deem relevant in
connection with accomplishing the purposes of the Plan. Notwithstanding anything herein to the contrary,
the aggregate value of cash compensation to be paid and the grant date fair value of Awards that may be granted during any fiscal year
of the Company to any Non-Employee Director shall not exceed $500,000.

 

Section 5.     Shares
and OP Units Subject to the Plan.

 

Subject
to adjustment as provided in this Section 5 and to all other limits set forth in this Plan, the maximum number of Shares
and/or OP Units that may be issued pursuant to Awards granted under the Plan shall be equal to 2,125,000. Subject to adjustment as provided
in this Section 5, no more than 2,125,000 Shares in the aggregate may be issued under the Plan in connection with Incentive
Stock Options. The number of Shares and/or OP Units that remain available for future grants under this Plan shall be reduced by the sum
of the aggregate number of Shares and/or OP Units that become subject to outstanding Options, outstanding SARs, outstanding Stock Awards,
LTIP Units and outstanding Performance Awards denominated in Shares and/or OP Units.

 

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If any Shares and/or OP Units
subject to an Award are forfeited, cancelled, exchanged or surrendered or if such an Award terminates or expires without the issuance
of Shares and/or OP Units to the Participant, or if Shares and/or OP Units are surrendered or withheld by the Company as payment of either
the exercise price of an Award and/or withholding taxes in respect of an Award, the Shares and/or OP Units with respect to such Award
shall, to the extent of any such forfeiture, cancellation, exchange, surrender, withholding, termination or expiration, again be available
for issuance pursuant to Awards granted under the Plan. Upon the exercise of any Award granted in tandem with any other Award, such related
Award shall be cancelled to the extent of the number of Shares and/or OP Units as to which the Award is exercised and, notwithstanding
the foregoing, such number of Shares and/or OP Units shall no longer be available for Awards under the Plan.

 

In the event that the Board
shall determine that any dividend or other distribution (whether in the form of cash, Shares, OP Units or other property), recapitalization,
share split, reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar
transaction or event, affects the Shares and/or OP Units such that an adjustment is appropriate in order to prevent dilution or enlargement
of the rights of Participants under the Plan, then the Board shall make equitable changes or adjustments to any or all of: (i) the
number and kind of Shares, OP Units or other property (including cash) that may thereafter be issued in connection with Awards; (ii) the
number and kind of Shares, OP Units or other property (including cash) issued or issuable in respect of outstanding Awards; (iii) the
exercise price, base price, grant price or purchase price relating to any Award; and (iv) the performance goals, if any, applicable
to outstanding Awards. In addition, the Board may determine that any such equitable adjustment may be accomplished by making a payment
to the Award holder, in the form of cash or other property (including but not limited to Shares and/or OP Units).

 

Shares
to be delivered under this Plan shall be made available from authorized and unissued Shares and/or OP Units, or authorized and issued
OP Units reacquired and held as treasury or otherwise or a combination thereof.

 

Section 6.     Terms
of Awards.

 

(a)           General.
The term of each Award shall be for such period as may be determined by the Board. Subject to the terms of the Plan and any applicable
Award Agreement, payments to be made by the Company upon the grant, vesting, maturation or exercise of an Award may be made in such forms
as the Board shall determine at the date of grant or thereafter, including, without limitation, cash, Shares, OP Units or other property,
and may be made in a single payment or transfer, in installments or on a deferred basis. The Board may make rules relating to installment
or deferred payments with respect to Awards, including the rate of interest to be credited with respect to such payments. In addition
to the foregoing, the Board may impose on any Award or the exercise thereof, at the date of grant or thereafter, such additional terms
and conditions, not inconsistent with the provisions of the Plan, as the Board shall determine.

 

(b)           Terms
of Specified Awards. The Board is authorized to grant the Awards described in this Section 6(b), under such terms and conditions
as deemed by the Board to be consistent with the purposes of the Plan. Such Awards may be granted with vesting, value and/or payment contingent
upon attainment of one or more performance goals. Except as otherwise set forth herein or as may be determined by the Board, each Award
granted under the Plan shall be evidenced by an Award Agreement containing such terms and conditions applicable to such Award as the Board
shall determine at the date of grant or thereafter.

 

(i)           Options
and SARs. The Board is authorized to grant Options and SARs to Participants on the following terms and conditions:

 

(A)            Types
of Options. Each Option, or portion thereof, that is not an Incentive Stock Option shall be a Nonqualified Stock Option. To the extent
that the aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which Options designated as Incentive
Stock Options are exercisable for the first time by a Participant during any calendar year (under this Plan or any other plan of the Company,
or any parent or Subsidiary) exceeds the amount (currently $100,000) established by the Code, such Options shall constitute Nonqualified
Stock Options.

 

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(B)            Exercise
Price of Options. The exercise price per share purchasable under an Option shall be determined by the Board, but in no event shall
the per share exercise price of any Option be less than 100% of the Fair Market Value of a Share on the applicable date of grant. The
exercise price for Shares subject to an Option may be paid (i) in cash, (ii) by an exchange of Shares previously owned by a
Participant, (iii) by authorizing the Company to withhold whole Shares which would otherwise be delivered having an aggregate Fair
Market Value, determined as of the date of exercise, equal to the amount necessary to satisfy such obligation, (iv) in cash by a
broker-dealer acceptable to the Company to whom the participant has submitted an irrevocable notice of exercise, or (v) by a combination
of the above, in any case in an amount having a combined value equal to such exercise price, in each case, to the extent set forth in
the Award Agreement or as otherwise permitted by the Board.

 

(C)            Base
Price of SARs. The base price per share of a SAR shall be determined by the Board, but in no event shall the per share base price
of any SAR be less than 100% of the Fair Market Value of a Share on the applicable date of grant.

 

(D)            Term
and Exercisability of Options and SARs. Options and SARs shall be exercisable over the exercise period (which shall not exceed ten
years from the date of grant), at such times and upon such conditions as the Board may determine, as reflected in the Award Agreement;
provided that the Board shall have the authority to accelerate the exercisability of any outstanding Option or SAR at such time and under
such circumstances as it, in its sole discretion, deems appropriate. An Option or SAR may be exercised to the extent of any or all full
Shares as to which the Option or SAR has become exercisable, by giving written notice of such exercise to the Board or its designated
agent.

 

(E)            Termination
of Service. Subject to Section 7, an Option or SAR may not be exercised unless: (1) the Participant is then providing services
to the Company; and (2) the Participant has continuously maintained such relationship since the date of grant of the Option or SAR;
provided that the Award Agreement may contain provisions extending the exercisability of Options or SARs, in the event of specified
terminations of service, to a date not later than the expiration date of such Option or SAR.

 

(F)            No
Repricing. The Board shall not, without the approval of the stockholders of the Company, (i) reduce the exercise price or base
price of any previously granted Option or SAR, (ii) cancel any previously granted Option or SAR in exchange for another Option or
SAR with a lower exercise price or base price or (iii) cancel any previously granted Option or SAR in exchange for cash or another
Award if the exercise price of such Option or the base price of such SAR exceeds the Fair Market Value of a Share on the date of such
cancellation, in each case, other than in connection with a Change in Control or the adjustment provisions set forth in Section 5.

 

(G)            Tandem
SARs. Any SAR granted in tandem with and related to an Incentive Stock Option shall be granted at the same time that such Incentive
Stock Option is granted.

 

(H)            Other
Provisions. Options and SARs may be subject to such other conditions including, but not limited to, restrictions on transferability
of the Shares acquired upon exercise of such Options or SARs, as the Board may prescribe in its discretion or as may be required by applicable
law.

 

(ii)          Restricted
Stock. The Board is authorized to grant shares of Restricted Stock to Participants on the following terms and conditions:

 

(A)            Issuance
and Restrictions. Restricted Stock shall be subject to such restrictions on transferability and other restrictions, if any, as the
Board may impose at the date of grant or thereafter, which restrictions may lapse separately or in combination at such times, under such
circumstances, in such installments, or otherwise, as the Board may determine. The Board may place restrictions on Restricted Stock that
shall lapse, in whole or in part, only upon the attainment of one or more performance goals.

 

(B)            Forfeiture.
Subject to Section 7, upon termination of service to the Company during the applicable restriction period, Restricted Stock and any
declared but unpaid distributions that are then subject to restrictions shall be forfeited; provided that the Board may provide,
by rule or regulation or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture conditions
relating to Restricted Stock will be waived in whole or in part in the event of terminations resulting from specified causes, and the
Board may in other cases waive in whole or in part the forfeiture of Restricted Stock.

 

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(C)            Certificates
for Shares. Restricted Stock granted under the Plan may be evidenced in such manner as the Board shall determine. If certificates
representing Restricted Stock are registered in the name of the Participant, such certificates shall bear an appropriate legend referring
to the terms, conditions and restrictions applicable to such Restricted Stock, and the Company shall retain physical possession of the
certificate.

 

(D)            Rights
with Respect to Restricted Stock. Subject to the terms and conditions of a Restricted Stock Award, the holder of such Award shall
have all rights as a stockholder of the Company, including, but not limited to, voting rights, the right to receive distributions and
the right to participate in any capital adjustment applicable to all holders of Shares. Distributions paid on Restricted Stock shall be
paid at the distribution payment date; provided that, as determined by the Board in its sole discretion, distributions paid with
respect to a Restricted Stock Award may be held by the Company and/or may be subject to restrictions and a risk of forfeiture to the same
extent, and on the same terms and conditions, as the Restricted Stock to which such distribution relates, until such date as determined
by the Board, and in any event shall be payable in cash or reinvested by the Company in Shares purchased from the Company for the Fair
Market Value of such Shares on the payment date of such distribution. Unless otherwise determined by the Board, Shares distributed in
connection with a share split or share distribution, and other property distributed as a distribution, shall be subject to restrictions
and a risk of forfeiture to the same extent, and on the same terms and conditions, as the Restricted Stock with respect to which such
Shares or other property has been distributed.

 

(iii)          Restricted
Stock Units. The Board is authorized to grant Restricted Stock Units to Participants, subject to the following terms and conditions:

 

(A)            Award
and Restrictions. Delivery of Shares, cash or other property, as determined by the Board, will occur upon expiration of the period
specified for Restricted Stock Units by the Board during which forfeiture conditions apply, or such later date as the Board shall determine.
The Board may place restrictions on Restricted Stock Units that shall lapse, in whole or in part, only upon the attainment of one or more
performance goals.

 

(B)            Forfeiture.
Subject to Section 7, upon termination of service to the Company prior to the vesting of a Restricted Stock Unit, or upon failure
to satisfy any other conditions precedent to the delivery of Shares or cash to which such Restricted Stock Units relate, all Restricted
Stock Units and any declared but unpaid distribution equivalents that are then subject to deferral or restriction shall be forfeited;
provided that the Board may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case,
that restrictions or forfeiture conditions relating to Restricted Stock Units will be waived in whole or in part in the event of termination
resulting from specified causes, and the Board may in other cases waive in whole or in part the forfeiture of Restricted Stock Units.

 

(C)            Distribution
Equivalents. Unless otherwise determined by the Board, Restricted Stock Units shall be credited with distribution equivalents at such
time as distributions, whether in the form of cash, Shares or other property, are paid with respect to the Shares. Unless otherwise determined
by the Board, any such distribution equivalents shall be paid on the distribution payment date to the Participant as though each Restricted
Stock Unit held by such Participant were an outstanding Share; provided that, as determined by the Board in its sole
discretion, such payments or allocations may be held by the Company and/or may be subject to restrictions and a risk of forfeiture to
the same extent, and on the same terms and conditions, as the Restricted Stock Unit to which such distribution relates, until such date
as determined by the Board, and in any event shall be payable in cash or reinvested by the Company in Shares purchased from the Company
for the Fair Market Value of such Shares on the payment date of such distribution or allocation. Unless otherwise determined by the Board,
Shares and/or OP Units distributed in connection with a share split or share distribution, and other property distributed as a distribution,
shall be subject to restrictions and a risk of forfeiture to the same extent, and on the same terms and conditions, as the Restricted
Stock Units with respect to which such Shares or other property has been distributed.

 

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(iv)          LTIP
Units. The Board is authorized to grant LTIP Units to Participants, subject to the following terms and conditions:

 

(A)            Award
and Restrictions. Delivery of OP Units, Shares, cash or other property, and the right to convert vested units to Shares, as determined
by the Board, will occur upon expiration of the period specified for LTIP Units by the Board during which forfeiture conditions apply,
or such later date as the Board shall determine. The Board may place restrictions on LTIP Units that shall lapse, in whole or in part,
only upon the attainment of one or more performance goals.

 

(B)            Forfeiture.
Subject to Section 7, upon termination of service to the Company prior to the vesting of an LTIP Unit, or upon failure to satisfy
any other conditions precedent to the delivery of OP Units, Shares or cash to which such LTIP Units relate, all LTIP Units and any accrued
but unpaid distributions or allocations that are then subject to restriction shall be forfeited; provided that the Board
may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture
conditions relating to LTIP Units will be waived in whole or in part in the event of termination resulting from specified causes, and
the Board may in other cases waive in whole or in part the forfeiture of LTIP Units.

 

(C)            Certificates
for LTIP Units. LTIP Units granted under the Plan may be evidenced in such manner as the Board shall determine. If certificates representing
LTIP Units are registered in the name of the Participant, such certificates shall bear an appropriate legend referring to the terms, conditions
and restrictions applicable to such LTIP Units, and the Company shall retain physical possession of the certificate.

 

(D)            Distributions.
Unless otherwise determined by the Board, distributions and allocations with respect to LTIP Units shall be paid or made at the distribution
or allocation payment date, as applicable; provided that, as determined by the Board in its sole discretion, such payments
or allocations may be held by the Company and/or may be subject to restrictions and a risk of forfeiture to the same extent, and on the
same terms and conditions, as the LTIP Unit to which such distribution relates, until such date as determined by the Board, and in any
event shall be payable in cash or reinvested by the Company in Shares purchased from the Company for the Fair Market Value of such Shares
on the payment date of such distribution or allocation. Unless otherwise determined by the Board, Shares and/or OP Units distributed in
connection with a share split or share distribution, and other property distributed as a distribution, shall be subject to restrictions
and a risk of forfeiture to the same extent, and on the same terms and conditions, as the LTIP Units with respect to which such Shares
or other property has been distributed.

 

(v)          Performance
Awards. The Board is authorized to grant Performance Awards Participants, subject to the following terms and conditions:

 

(A)            Value
of Performance Awards and Performance Goals. The method of determining the value of the Performance Award and the performance goals
and Performance Period applicable to a Performance Award shall be determined by the Board.

 

(B)            Vesting
and Forfeiture. The Agreement relating to a Performance Award shall provide, in the manner determined by the Board, in its discretion,
and subject to the provisions of this Plan, for the vesting of such Performance Award if the specified performance goals are satisfied
or met during the specified Performance Period and for the forfeiture of such Award if the specified performance goals are not satisfied
or met during the specified Performance Period. Subject to Section 7, upon termination of service to the Company during the applicable
Performance Period, all Performance Awards shall be forfeited; provided that the Board may provide, by rule or regulation
or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Performance
Awards will be waived in whole or in part in the event of terminations resulting from specified causes, and the Board may in other cases
waive in whole or in part the forfeiture of Performance Awards.

 

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(C)            Settlement
of Vested Performance Awards. The Agreement relating to a Performance Award shall specify whether such Award may be settled in Shares
(including shares of Restricted Stock), OP Units or cash or a combination thereof. If a Performance Award is settled in shares of Restricted
Stock, such shares of Restricted Stock shall be issued to the holder in book entry form or a certificate or certificates representing
such Restricted Stock shall be issued in accordance with Section 6(b)(ii)(C) and the holder of such Restricted Stock shall have
such rights as a stockholder of the Company as determined pursuant to Section 6(b)(ii)(D). Any distributions or distribution equivalents
with respect to a Performance Award shall be subject to the same restrictions as such Performance Award. Prior to the settlement of a
Performance Award in Shares, including Restricted Stock, the holder of such Award shall have no rights as a stockholder of the Company.

 

(vi)          Other
Stock-Based Awards. The Board is authorized to grant Awards to Participants in the form of Other Stock-Based Awards, as deemed by
the Board to be consistent with the purposes of the Plan. Awards granted pursuant to this paragraph may be granted with vesting, value
and/or payment contingent upon the attainment of one or more performance goals. The Board shall determine the terms and conditions of
such Awards at the date of grant or thereafter. Without limiting the generality of this paragraph, Other Stock-Based Awards may include
grants of Shares that are not subject to any restrictions or a substantial risk of forfeiture.

 

Section 7.     Change
in Control.

 

(a)            Subject
to the terms of the applicable Award Agreements, in the event of a Change in Control, the Board, as constituted prior to the Change in
Control, may, in its discretion:

 

(i)            require
that (A) some or all outstanding Options and SARs shall become exercisable in full or in part, either immediately or upon a subsequent
termination of employment, (B) the restriction period applicable to some or all outstanding Awards shall lapse in full or in part,
either immediately or upon a subsequent termination of employment, (C) the Performance Period applicable to some or all outstanding
Awards shall lapse in full or in part, and (D) the performance goals applicable to some or all outstanding Awards shall be deemed
to be satisfied at the target, maximum or any other level;

 

(ii)            require
that shares of capital stock of the corporation resulting from or succeeding to the business of the Company pursuant to such Change in
Control, or a parent corporation thereof, or other property be substituted for some or all of the Shares and/or OP Units subject to an
outstanding Award, with an appropriate and equitable adjustment to such award as determined by the Board in accordance with Section 5;
and/or

 

(iii)            require
outstanding Awards, in whole or in part, to be surrendered to the Company by the holder, and to be immediately cancelled by the Company,
and to provide for the holder to receive (A) a cash payment in an amount equal to (1) in the case of an Option or an SAR, the
aggregate number of Shares then subject to the portion of such Option or SAR surrendered, whether or not vested or exercisable, multiplied
by the excess, if any, of the Fair Market Value of a Share as of the date of the Change in Control, over the exercise price or base price
per Share subject to such Option or SAR, (2) in the case of a Stock Award or a Performance Award denominated in Shares or OP Units,
the number of Shares or OP Units then subject to the portion of such Award surrendered to the extent the performance goals applicable
to such Award have been satisfied or are deemed satisfied pursuant to Section 7(a)(i), whether or not vested, multiplied by the Fair
Market Value of a Share or OP Unit as of the date of the Change in Control, and (3) in the case of a Performance Award denominated
in cash, the value of the Performance Award then subject to the portion of such Award surrendered to the extent the performance goals
applicable to such Award have been satisfied or are deemed satisfied pursuant to Section 7(a)(i); (B) shares of capital stock
of the corporation resulting from or succeeding to the business of the Company pursuant to such Change in Control, or a parent corporation
thereof, or other property having a Fair Market Value not less than the amount determined under clause (A) above; or (C) a combination
of the payment of cash pursuant to clause (A) above and the issuance of shares or other property pursuant to clause (B) above.

 

    9

     

    

 

(b)            Notwithstanding
Section 7(a) and except to the extent the Board expressly provides otherwise in an applicable Award Agreement, in the event
of a Change in Control, unless provision is made in connection with such Change in Control for assumption or continuation of Awards previously
granted or substitution of such Awards for new awards covering shares of a successor corporation or its “parent corporation”
(as defined in Section 424(e) of the Code) or “subsidiary corporation” (as defined in Section 424(f) of
the Code) with appropriate adjustments to the number and kinds of shares, and if applicable, the exercise price and performance goals,
in each case, that the Board determines will preserve the material terms and conditions of such Awards as in effect immediately prior
to the Change in Control (including, without limitation, with respect to the intrinsic value of the Awards, if any, as of the Change in
Control, difficulty of achieving performance goals, if applicable, and transferability of the shares underlying such Awards), immediately
upon the occurrence of the Change in Control, any then-unvested and outstanding Awards granted to such Participant shall immediately and
automatically become fully vested, exercisable and free of transfer restrictions. The Board may also make additional adjustments and/or
settlements of outstanding Awards as it deems appropriate and consistent with the Plan’s purposes.

 

Section 8.     General
Provisions.

 

(a)            Nontransferability.
Unless otherwise provided in an Award Agreement, Awards shall not be transferable by a Participant except by will or the laws of descent
and distribution and shall be exercisable during the lifetime of a Participant only by such Participant or his guardian or legal representative.

 

(b)            No
Right to Continued Service, etc. Nothing in the Plan or in any Award, any Award Agreement or other agreement entered into pursuant
hereto shall confer upon any Participant the right to continue as a director of, or continue to provide services to, the Company or any
parent, Subsidiary or Affiliate of the Company or to be entitled to any remuneration or benefits not set forth in the Plan or such Award
Agreement or other agreement or to interfere with or limit in any way the right of the Company to terminate such Participant’s service.

 

(c)            Taxes.
The Company or any parent or Subsidiary of the Company is authorized to withhold from any Award granted any payment relating to an Award
under the Plan, including from a distribution of Shares or OP Units, or any other payment to a Participant, amounts of applicable withholding
and other taxes due in connection with any transaction involving an Award, and to take such other action as the Board may deem advisable
to enable the Company and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating
to any Award. This authority shall include authority to withhold or receive Shares and/or OP Units or other property and to make cash
payments in respect thereof in satisfaction of a Participant’s tax obligations. The Board may provide in the Award Agreement that
in the event that a Participant is required to pay any amount to be withheld in connection with the issuance of Shares and/or OP Units
in settlement or exercise of an Award, such Participant may satisfy such obligation (in whole or in part) by electing to have the Company
withhold a portion of the Shares and/or OP Units to be received upon settlement or exercise of such Award that is equal to the minimum
amount required to be withheld.

 

Notwithstanding the foregoing,
a Participant who is not an employee of the Company or the Manager or any parent or Subsidiary of the Company or the Manager shall be
solely responsible for the payment of any taxes that may become payable by such Participant which arise from the issuance, vesting or
exercise of any Award granted to it by the Company under the Plan.

 

(d)            Effective
Date; Amendment and Termination.

 

(i)            The
Plan shall take effect upon the Effective Date.

 

(ii)            The
Board may at any time and from time to time terminate, amend, modify or suspend the Plan in whole or in part; provided, that unless
otherwise determined by the Board, no amendment shall be effective without the approval of the Company’s stockholders if (A) stockholder
approval is required in order for the Plan to comply with any law, regulation or stock exchange requirement or (B) such amendment
seeks to modify the Non-Employee Director compensation limit set forth in Section 4 or the prohibition on repricing set forth in
Section 6. The Board may at any time and from time to time amend any outstanding Award in whole or in part. Notwithstanding the foregoing
sentence of this clause (ii), no amendment or modification to or suspension or termination of the Plan or amendment of any Award
shall affect adversely any of the rights of any Participant, without such Participant’s consent, under any Award theretofore granted
under the Plan.

 

    10

     

    

 

(e)            Expiration
of Plan. Unless earlier terminated by the Board pursuant to the provisions of the Plan, the Plan shall expire on the tenth anniversary
of its approval by the Board. No Awards shall be granted under the Plan after such expiration date. The expiration of the Plan shall not
affect adversely any of the rights of any Participant, without such Participant’s consent, under any Award theretofore granted.

 

(f)            Deferrals.
Subject to applicable law, the Board shall have the authority to establish such procedures and programs that it deems appropriate to provide
Participants with the ability to defer receipt of cash, Shares, OP Units or other property payable with respect to Awards granted under
the Plan.

 

(g)            No
Rights to Awards; No Stockholder Rights. No Participant shall have any claim to be granted any Award under the Plan. There is no obligation
for uniformity of treatment among Participants. Except as provided specifically herein or in the applicable Award Agreement, a Participant
or a transferee of an Award shall have no rights as a stockholder with respect to any Shares covered by the Award until the date of the
issuance of such Shares and, if such Shares are evidenced by certificates, the delivery of a certificate evidencing such Shares.

 

(h)            Unfunded
Status of Awards. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With
respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award shall give any
such Participant any rights that are greater than those of a general creditor of the Company.

 

(i)            No
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award. The Board shall determine
whether cash, other Awards or other property shall be issued or paid in lieu of such fractional Shares or whether such fractional Shares
or any rights thereto shall be forfeited or otherwise eliminated.

 

(j)            Regulations
and Other Approvals.

 

(i)            The
obligation of the Company to sell or deliver Shares and/or OP Units with respect to any Award granted under the Plan shall be subject
to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all
such approvals by governmental agencies as may be deemed necessary or appropriate by the Board.

 

(ii)            Each
Award is subject to the requirement that, if at any time the Board determines, in its absolute discretion, that the listing, registration
or qualification of Shares and/or OP Units issuable pursuant to the Plan is required by any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection
with, the grant of an Award or the issuance of Shares and/or OP Units, no such Award shall be granted or payment made or Shares or OP
Units issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free
of any conditions not acceptable to the Board.

 

(iii)           In
the event that the disposition of Shares and/or OP Units acquired pursuant to the Plan is not covered by a then-current registration statement
under the Securities Act and is not otherwise exempt from such registration, such Shares and/or OP Units shall be restricted against transfer
to the extent required by the Securities Act or regulations thereunder, and the Board may require a Participant receiving Shares and/or
OP Units pursuant to the Plan, as a condition precedent to receipt of such Shares and/or OP Units, to represent to the Company in writing
that the Shares and/or OP Units acquired by such Participant are acquired for investment only and not with a view to distribution.

 

(iv)          The
Board may require a Participant receiving Shares and/or OP Units pursuant to the Plan, as a condition precedent to receipt of such Shares
and/or OP Units, to enter into a stockholder agreement or “lock-up” agreement in such form as the Board shall determine is
necessary or desirable to further the Company’s interests.

 

    11

     

    

 

(v)            All
Awards under the Plan are intended to comply with any applicable requirements of Section 409A of the Code and the regulations thereunder,
and no Award, deferral, election, payment or other action shall be permitted to the extent it would violate such requirements.

 

(k)           Governing
Law. The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of Maryland without giving
effect to the conflict of laws principles thereof.

 

(l)            Forfeiture
and Compensation Recovery. Awards and any compensation associated therewith shall be subject to potential cancellation, recoupment,
rescission, payback or other action in accordance with the terms of the Company’s clawback or recoupment policies, if any, as may
be established or amended from time to time.

 

    12Exhibit 10.23

 

ANGEL OAK MORTGAGE, INC.

EXECUTIVE SEVERANCE AND CHANGE IN CONTROL PLAN

 

(Effective June 21, 2021)

 

In order to secure the continued services of certain
key management employees of Angel Oak Mortgage, Inc. (the “Company”) and to ensure their continued dedication
to their assigned duties without distraction in circumstances arising from the possibility of certain terminations of employment and in
the event of any threat or occurrence of a Change in Control of the Company, the Compensation Committee of the Board of Directors of the
Company (the “Committee”) has adopted this Executive Severance Plan (as it may be amended pursuant to the terms hereof,
this “Plan”).

 

SECTION 1. Definitions. For purposes
of this Plan, the following terms shall have the meanings set forth below:

 

“Accrued Bonus” shall mean a
Participant’s accrued, but unpaid as of a Participant’s Termination Date, annual cash bonus for any completed fiscal year
of the Company preceding a Participant’s Termination Date.

 

“Affiliate(s)” shall mean, with
respect to the Company, a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is
under common control with, the Company, including each subsidiary of the Company within the meaning of Section 424(f) of the
Code.

 

“Annual Bonus” shall mean the
Participant’s average cash performance bonus based on the amount of cash performance bonus, if any, paid for the three (3) most
recent years, provided that, if Participant was not eligible to receive an annual cash performance bonus for at least three (3) years
prior to termination, then the Annual Bonus shall be (i) if the Participant was eligible to receive a bonus for two (2) years
prior to termination, the average cash performance bonus, if any, for the prior two (2) years; (ii) if the Participant was eligible
to receive a bonus for only one (1) year prior to termination, the cash performance bonus, if any, paid for such year; and (iii) if
Participant has not been employed long enough to be eligible to receive an annual bonus, then the Participant’s target annual cash
performance bonus for the fiscal year in which the Qualifying Termination occurs. For the avoidance of doubt, Annual Bonus shall include
annual cash bonus received by the Participant from the Company and all of its Affiliates.

 

“Beneficiary” shall mean the
person or entity designated by Participant, by written instrument delivered to the Company, to receive the benefits payable under this
Plan in the event of Participant’s death. If Participant fails to designate a Beneficiary, or if no Beneficiary survives Participant,
such death benefits shall be paid as follows: (i) to Participant’s surviving spouse; (ii) if there is no surviving spouse,
to Participant’s living descendants per stirpes; or (iii) if there is neither a surviving spouse nor descendants, to
Participant’s duly appointed and qualified executor or personal representative.

 

“Cause” shall mean the definition
of such term contained in a written employment agreement in effect between the Participant and the Company or an Affiliate or, if there
is no such employment agreement in effect or if any such employment agreement does not define the term “Cause,” the term “Cause”
shall mean a Participant’s (i) commission of a crime of moral turpitude or a felony that involves financial misconduct or moral
turpitude or has resulted, or reasonably could be expected to result, in imprisonment of the Participant or serious economic injury to
the Company or any of its Affiliates, (ii) dishonesty or willful commission or omission of any action that has caused, or reasonably
could be expected to cause, demonstrable and serious economic injury to the Company or any of its Affiliates, or (iii) material breach
of this Agreement or any other material agreement entered into between a Participant and the Company or any of its Affiliates, or the
Company’s or any of its Affiliates’ written policies and procedures as may be implemented from time to time after notice and
a reasonable opportunity to cure (if such breach can be cured).

 

    

     

    

 

“Change in Control” shall have
the same meaning as such term is defined under the Equity Plan, or any successor thereto.

 

“CIC Qualifying Termination”
shall mean a Qualifying Termination that occurs within twelve (12) months following the consummation of a Change in Control.

 

“CIC Severance Multiple” shall
be the multiple specified as the “CIC Severance Multiple” in the Participation and Restrictive Covenant Agreement for a Participant.

 

“CIC Severance Period” shall
be the period of time specified as the “CIC Severance Period” in the Participation and Restrictive Covenant Agreement for
a Participant.

 

“Claimant” shall have the meaning
set forth in Section 4(c).

 

“COBRA” shall mean the Consolidated
Budget Reconciliation Act of 1985, as amended from time to time, and the regulations promulgated thereunder.

 

“COBRA Benefits” shall have
the meaning set forth in Section 3(a)(v).

 

“Code” shall mean the Internal
Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder.

 

“Cure Period” shall have the
meaning set forth in the “Good Reason Process” definition.

 

“Effective Date” shall mean
June 21, 2021.

 

“Employment” shall mean employment
with the Company or any Affiliate of the Company. A Participant’s Employment shall be deemed to have continued notwithstanding a
transfer of employment between the Company and any of its Affiliates, or between any two Affiliates.

 

“Equity Plan” shall mean the
Angel Oak Mortgage, Inc. 2021 Equity Incentive Plan, as may be amended from time to time, or any successor plan.

 

“ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder.

 

“Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended from time to time, and the regulations promulgated thereunder.

 

“Excise Tax” shall have the
meaning set forth in Section 3(d)(i).

 

“Full Payment” shall have the
meaning set forth in Section 3(d)(i).

 

    2

     

    

 

“Good Reason” shall have the
meaning set forth in any then applicable employment or other similar written agreement (including such similar term or concept, as determined
by the Plan Administrator) between Participant and the Company or an Affiliate. If there is no such written agreement or if such agreement
does not define “Good Reason,” then “Good Reason” shall be deemed to exist if, and only if, without
Participant’s written consent: (i) there is a reduction of Participant’s then current Monthly Base Salary by 10% or more
unless such reduction is part of a generalized salary reduction affecting similarly situated employees; (ii) there is a change in
Participant’s position with the Company that materially reduces Participant’s duties, level of authority or responsibility;
(iii) the Company or any successor materially breaches any employment or other material agreement between Participant and the Company
or its Affiliates (if any); or (iv) the Company conditions Participant’s continued service with the Company or its Affiliates
on Participant being transferred to a location that would increase Participant’s one-way commute by more than fifty (50) miles
from Participant’s then principal residence. In order to terminate due to Good Reason, Participant must comply with the Good Reason
Process described herein.

 

“Good Reason Process” shall
mean that (i) Participant reasonably determines in good faith that a Good Reason condition has occurred, (ii) Participant notifies
the Company in writing of the occurrence of the Good Reason condition within sixty (60) days of Participant having actual or constructive
knowledge of the occurrence of such condition, (iii) Participant cooperates in good faith with the Company’s efforts at no
cost to the Participant, for a period not less than thirty (30) days following such notice (the “Cure Period”),
to remedy the condition, (iv) notwithstanding such efforts, the Good Reason condition continues to exist, and (v) Participant
terminates Participant’s Employment within thirty (30) days after the expiration of the Cure Period. For the avoidance of doubt,
if the Company cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.

 

“Monthly Base Salary” shall
mean Participant’s monthly base salary at the rate in effect prior to any reduction for purposes of Good Reason, or on the date
of a Qualifying Termination, whichever is higher; provided, however, that, with respect to a CIC Qualifying Termination,
such rate shall in no event be less than the highest rate in effect for Participant at any time following the Effective Date and prior
to the termination of the Plan in accordance with Section 8(l). For the avoidance of doubt, Monthly Base Salary shall include
base salary received by the Participant from the Company and all of its Affiliates.

 

“Monthly Severance Amount” shall
mean the sum of (i) Participant’s Monthly Base Salary plus (ii) one-twelfth (1/12) of Participant’s Annual
Bonus.

 

“Participant” shall mean any
employee of the Company (or one of its Affiliates) selected by the Plan Administrator in accordance with Section 2 who has
entered into a Participation and Restrictive Covenant Agreement and otherwise meets the requirements of Section 2.

 

“Participation and Restrictive Covenant
Agreement” shall mean the written agreement evidencing participation under this Plan and the restrictive covenants being agreed
to as a condition to participate in this Plan between the Company and the applicable employee.

 

“Payment” shall have the meaning
set forth in Section 3(d)(i).

 

“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)(3).

 

“Plan Administrator” shall mean
(i) the Committee with respect to any Participant who is subject to Section 16 of the Exchange Act and (ii) Committee or,
if designated by the Committee, the Company’s Chief Executive Officer or such other person with respect to any Participant who is
not subject to Section 16 of the Exchange Act.

 

“Qualifying Termination” shall
mean the Participant’s termination of Employment which constitutes a termination by the Company without Cause or a resignation by
the Participant for Good Reason.

 

    3

     

    

 

“Reduced Payment” shall have
the meaning set forth in Section 3(d)(i).

 

“Retirement Plan” shall mean
any qualified or nonqualified supplemental employee pension benefit plan, as defined in Section 3(2) of ERISA, currently or
hereinafter made available by the Company or its Affiliates in which Participant is eligible to participate.

 

“Section 409A Payment”
shall have the meaning set forth in Section 5(d).

 

“Severance Benefits” shall mean
the severance benefits under Section 3(a).

 

“Severance Multiple” shall be
the multiple specified as the “Severance Multiple” in the Participation and Restrictive Covenant Agreement for a Participant.

 

“Severance Payments” shall have
the meaning set forth in Section 3(a)(i).

 

“Severance Period” shall be
the period of time specified as the “Severance Period” in the Participation and Restrictive Covenant Agreement for a Participant.

 

“Termination Date” shall mean,
with respect to any Participant, the effective date of such Participant’s termination of Employment, as determined in accordance
with Section 5(d).

 

“Welfare Plan” shall mean any
health, vision or dental plan, disability plan, survivor income plan or life insurance plan, as defined in Section 3(1) of ERISA,
currently or hereafter made available by the Company or its Affiliates in which Participant is eligible to participate.

 

SECTION 2. Eligibility. The Plan Administrator
shall from time to time, in its sole discretion, select and designate in writing, which of the Company’s (including any of its Affiliates)
employees are eligible to participate in this Plan and such employee shall become a Participant under this Plan conditioned upon accepting
and executing a Participation and Restrictive Covenant Agreement within 30 days after such agreement is delivered to such employee. The
Plan Administrator may, in its sole discretion, remove an employee from participation in the Plan, with such removal to be effective upon
12-months prior notice to the impacted employee.

 

SECTION 3. Compensation, Benefits and
Effect of Termination of Employment.

 

(a)  Effect of Qualifying Termination.
Subject to Section 3(c) and Section 3(d), upon a Participant’s Qualifying Termination, the Company
shall provide Participant the payments and benefits set forth below (the “Severance Benefits”). For the avoidance of
doubt, a Participant shall not be entitled to benefits under this Plan if such Participant’s Employment terminates for any reason
(including for Cause or a resignation without Good Reason and, except as provided in Section 3(e), due to death or disability)
other than as specifically set forth in the Qualifying Termination definition or this Section 3(a).

 

(i)  The Company shall pay to
Participant an amount equal to the Severance Multiple times the Monthly Severance Amount or, in the event of a Participant’s CIC
Qualifying Termination, the CIC Severance Multiple times the Monthly Severance Amount. Such amount shall be payable over the Severance
Period or CIC Severance Period, as applicable, in substantially equal installments in accordance with the Company’s regular payroll
policies as if Participant’s employment had not ended (collectively, the “Severance Payments”). Subject to compliance
with Section 3(b) below, the first installment of the Severance Payments will be paid within 60 days following the Termination
Date, with the first payment including such amounts as would have otherwise been paid during the period beginning on the Termination Date
and ending on such payment date.

 

    4

     

    

 

(ii)  The Company shall pay Participant
any Accrued Bonus, with such Accrued Bonus payable in a single lump sum no later than the March 15th following the year in which
such Accrued Bonus was earned.

 

(iii)  Participant shall receive
any and all benefits accrued through the date of termination of Employment under any Retirement Plan, Welfare Plan or other plan or program
in which Participant participates as of the Termination Date, with the amount, form and time of payment of such benefits determined by
the terms of such Retirement Plan, Welfare Plan and other plan or program.

 

(iv)  If upon the Termination
Date Participant holds any awards granted under the Equity Plan, including stock options, restricted stock, restricted stock units, performance
shares, performance units, and any other stock-based award, (A) any then-unvested time-based equity awards shall vest and be settled
in accordance with the terms of the applicable award agreement, and (B) (x) in the event of Participant’s Qualifying Termination,
a pro-rated portion of any then-unvested performance-based equity awards shall vest, with such pro-rated portion to be equal to the number
of shares subject to such award that would vest based on actual performance through the end of the applicable performance period, multiplied
by a fraction, the numerator of which shall equal the number of days elapsed in the applicable performance period as of the Termination
Date and the denominator of which shall equal the number of days in the applicable performance period, with such awards to be settled
in accordance with the terms of the applicable award agreement; and (y) in the event of Participant’s CIC Qualifying Termination,
any then-unvested performance-based equity awards shall vest based on actual performance through the end of the applicable performance
period, with such awards to be settled in accordance with the terms of the applicable award agreement; provided, however, in the event
outstanding equity awards held by the Participant are not assumed in connection with a Change in Control, such awards shall vest in full
upon such Change in Control, with performance-based equity awards determined based on actual performance through the date of the Change
in Control for performance measures relating to stock price performance (i.e., total shareholder return) and, for performance measures
not related to stock price performance, based on the greater of (1) actual performance through the date of the Change in Control
and (2) target performance.

 

(v)  If Participant timely elects
COBRA continuation coverage, Participant shall pay and the Company shall reimburse Participant for such health insurance coverage at the
same rate as it pays for health insurance coverage for its active employees (with Participant required to pay for any employee-paid portion
of such coverage)for the duration of the Severance Period or, in the event of a Participant’s CIC Qualifying Termination, the
CIC Severance Period, in each case, reduced by the value of any similar benefits received by the Participant under another employer’s
plan (whether through the Participant or as a dependent) (such amounts to be referred to herein as the “COBRA Benefits”).

 

(vi)  During the Severance Period
or, in the event of a Participant’s CIC Qualifying Termination, the CIC Severance Period, Participant shall not be entitled to reimbursement
for fringe benefits, including without limitation, dues and expenses related to club memberships, automobile expenses, expenses for professional
services and other similar perquisites.

 

(b)  Death; Disability.

 

(i)  If Participant’s Employment
terminates under circumstances described in Section 3(a), then upon Participant’s subsequent death, all unpaid amounts
payable to Participant under Section 3(a)(i), (ii), (iv) or (v), if any, shall be paid to Participant’s
Beneficiary.

 

    5

     

    

 

(ii)  If Participant’s Employment
terminates as a result of such Participant’s death or disability, (A) the Company shall pay Participant an amount equal to
(1) the Participant’s Annual Bonus multiplied by (2) a fraction, the numerator of which is the number of days that occurred
on or before the Termination Date in the calendar year that includes the Termination Date, and the denominator of which is the number
of days in the calendar year that includes the Termination Date, with such amount payable in a single lump sum no later than the March 15th
following the year in which the Termination Date occurs; and (B) the Participant’s equity awards shall vest pursuant to Section 3(a)(iv) as
if the Participant had experienced a Qualifying Termination.

 

(c)  Release of Claims. The obligations
of the Company and its Affiliates under this Section 3 (except upon such Participant’s death) shall be subject to such
Participant’s execution, within 45 days after the Termination Date (or such shorter period of time specified by the Company), of
a general release and waiver substantially in a form prescribed by the Company, which has become irrevocable following any revocation
period permitted by the Company.

 

(d)  Recoupment. Notwithstanding any
provisions in this Plan to the contrary, the Plan Administrator may, in its sole and absolute discretion, in the event of Participant’s
material breach of a material obligation of Participant to the Company pursuant to any award or agreement between Participant and the
Company, including a material breach of the Participation and Restrictive Covenant Agreement or a determination that an event constituting
Cause has occurred, regardless of whether this determination happened prior to or following the Termination Date: (i) terminate the
right of such Participant to receive any payment under this Section 3, to the extent it has not been paid; and (ii) seek
the recoupment of any payment paid to such Participant under this Section 3, including through exercise rights of set-off,
forfeiture or cancellation, to the full extent permitted by law, with respect to any other awards, benefits or payments otherwise due
Participant from the Company or any of its Affiliates, to the extent the Plan Administrator in its sole discretion deems appropriate after
considering the relevant facts and circumstances. Any termination and/or recoupment of a Participant’s benefits under this Plan
shall be in addition and without prejudice to any other remedies that the Company might elect to assert.

 

(e)  Code Section 280G.

 

(i)  If any payment or benefit (including
payments and benefits pursuant to this Plan) Participant would receive in connection with or as a result of a Change in Control from the
Company or otherwise (the “Payment”) would (i) constitute a “parachute payment” within the meaning
of Section 280G of the Code, and (ii) but for this paragraph, be subject to the excise tax imposed by Section 4999 of the
Code (the “Excise Tax”), then the Company shall cause to be determined, before any amounts of the Payment are paid
to Participant, which of the following two alternative forms of payment shall be paid to Participant: (A) payment in full of the
entire amount of the Payment (a “Full Payment”), or (B) payment of only a part of the Payment so that Participant
receives the largest payment possible without the imposition of the Excise Tax (a “Reduced Payment”). A Full Payment
shall be made in the event that the amount received by Participant on a net after-tax basis is greater than what would be received by
Participant on a net after-tax basis if the Reduced Payment were made, otherwise a Reduced Payment shall be made. If a Reduced Payment
is made, (i) the Payment shall be paid only to the extent permitted under the Reduced Payment alternative, and Participant shall
have no rights to any additional payments and/or benefits constituting the Payment, and (ii) reduction in payments and/or benefits
shall occur in the following order: (A) reduction of cash payments (in the reverse chronological order in which such cash would otherwise
be paid); (B) cancellation of accelerated vesting of equity awards other than stock options (in the reverse chronological order in
which such equity awards would vest in the absence of a Change in Control); (C) cancellation of accelerated vesting of stock options
(in the reverse chronological order in which such stock options would vest in the absence of a Change in Control); and (D) reduction
of other benefits paid to Participant (in the reverse chronological order in which such benefits would otherwise be provided).

 

    6

     

    

 

(ii)  The independent registered public
accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change in Control,
or a nationally recognized law firm selected by the Plan Administrator, shall make all determinations required to be made under Section 3(d)(i).
If the independent registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, the Company shall appoint a nationally recognized law firm or independent registered
public accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations
by such independent registered public accounting firm or law firm required to be made hereunder. Any good faith determinations of the
accounting firm or law firm made hereunder shall be final, binding and conclusive upon the Company and Participant.

 

SECTION 4. Administration of Plan; Claims
Procedure.

 

(a)  General. Except as specifically
provided herein, this Plan shall be administered by the Plan Administrator. The Plan Administrator may delegate any administrative duties,
including, without limitation, duties with respect to the processing, review, investigation, approval and payment of benefits under this
plan to designated individuals or committees. The Plan Administrator shall be the “administrator” and a “named fiduciary”
under this Plan for purposes of ERISA.

 

(b)  Interpretations and Variations.
The Plan Administrator shall have the duty and authority to interpret and construe, in its sole discretion, the terms of this Plan in
regard to all questions of eligibility, the status and rights of Participants, and the manner, time and amount of any payment under this
Plan. The Plan Administrator or its representative shall decide any issues arising under this Plan, and the decision of the Plan Administrator
shall be binding and conclusive on Participants and the Company. Any variations from this Plan may be made only by the Plan Administrator
in its sole discretion.

 

(c)  Filing a Claim. Although it is
not normally necessary to file a claim in order to receive benefits under this Plan, if a Participant (the “Claimant”)
feels he or she has been improperly denied benefits under this Plan, any claim for payment of such benefits shall be signed, dated and
submitted to the Company in accordance with Section 8(a). All claims relating to this Plan must be filed within 90 days following
Participant’s Termination Date, unless the Plan Administrator otherwise specifies in writing. The Plan Administrator shall then
evaluate the claim and notify the Claimant of the approval or disapproval in accordance with the provisions of this Plan not later than
90 days after the Company’s receipt of such claim unless special circumstances require an extension of time for processing the claims.
If such an extension of time for processing is required, written notice of the extension shall be furnished to the Claimant prior to the
termination of the initial 90-day period which shall specify the special circumstances requiring an extension and the date by which a
final decision will be reached (which date shall not be later than 180 days after the date on which the claim was filed). If the Claimant
does not provide all the necessary information for the Plan Administrator to process the claim, the Plan Administrator may request additional
information and set deadlines for the Claimant to provide that information.

 

    7

     

    

 

(d)  Notice of Initial Determination.
The Claimant shall be given a written notice in which the Claimant shall be advised as to whether the claim is granted or denied, in whole
or in part. If a claim is denied, in whole or in part, the Claimant shall be given written notice which shall contain (i) the specific
reasons for the denial, (ii) specific references to pertinent Plan provisions on which the denial is based, (iii) a description
of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary
and (iv) an explanation of this Plan’s appeal procedures, which shall also include a statement of the Claimant’s right
to bring a civil action under Section 502(a) of ERISA following a denial of the claim upon review.

 

(e)  Right to Appeal. If a claim for
payment of benefits under this Plan made in accordance with the procedures specified in this Plan is denied, in whole or in part, the
Claimant shall have the right to request that the Plan Administrator review the denial, provided that the Claimant files a written
request for review with the Plan Administrator within 60 days after the date on which the Claimant received written notification of the
denial. The Claimant may review or receive copies, upon request and free of charge, any documents, records or other information “relevant”
(within the meaning of Department of Labor Regulation 2560.503-1(m)(8)) to the Claimant’s claim. The Claimant may also submit written
comments, documents, records and other information relating to his or her claim.

 

(f)  Review of Appeal. In deciding
a Claimant’s appeal, the Plan Administrator shall take into account all comments, documents, records and other information submitted
by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial review of
the claim. If the Claimant does not provide all the necessary information for the Plan Administrator to decide the appeal, the Plan Administrator
may request additional information and set deadlines for the Claimant to provide that information. Within 60 days after a request for
review is received, the review shall be made and the Claimant shall be advised in writing of the decision on review, unless special circumstances
require an extension of time for processing the review, in which case the Claimant shall be given a written notification within such initial
60-day period specifying the reasons for the extension and when such review shall be completed (provided that such review shall
be completed within 120 days after the date on which the request for review was filed).

 

(g)  Notice of Appeal Determination.
The decision on review shall be forwarded to the Claimant in writing and, in the case of a denial, shall include (i) specific reasons
for the decision, (ii) specific references to the pertinent Plan provisions upon which the decision is based, (iii) a statement
that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records
or other information relevant to the Claimant’s claim and (iv) a statement of the Claimant’s right to bring a civil action
under Section 502(a) of ERISA following a wholly or partially denied claim for benefits. The Plan Administrator’s decision
on review shall be final and binding on all persons for all purposes. If a Claimant shall fail to file a request for review in accordance
with the procedures herein outlined, such Claimant shall have no right to review and shall have no right to bring an action in any court,
and the denial of the claim shall become final and binding on all persons for all purposes. Any notice and decisions by the Plan Administrator
under this Section 4 may be furnished electronically in accordance with Department of Labor Regulation 2520.104b-1(c)(i),
(iii) and (iv).

 

(h)  Statute of Limitations. No Claimant
may bring any legal action to recover benefits under this Plan until he or she has exhausted the internal administrative claims and appeals
process described above. No legal action may be commenced at all, unless commenced no later than one year following the issuance of a
final decision on the claim for benefits, or the expiration of the appeal decision period if no decision is issued. This one-year statute
of limitations on suits for all benefits available under this Plan shall apply in any forum where such legal action is initiated.

 

    8

     

    

 

SECTION 5. Section 409A Compliance;
Changes in Law.

 

(a)  It is the intention of the Company that
the provisions of this Plan comply with Section 409A of the Code, and all provisions of this Plan shall be construed and interpreted
in a manner consistent with Section 409A of the Code. In the event that the Company determines that any provision of this Plan does
not comply with Section 409A of the Code or any such rules, regulations or guidance and that as a result any Participant may become
subject to a tax under Section 409A of the Code, notwithstanding Section 8(l), the Company shall have the discretion
to amend or modify such provision to avoid the application of such tax, and in no event shall any Participant’s consent be required
for such amendment or modification. Notwithstanding any provision of this Plan to the contrary, each Participant shall be solely responsible
and liable for the satisfaction of all taxes and penalties that may arise in connection with amounts payable pursuant to this Plan (including
any taxes arising under Section 409A of the Code), and the Company not shall have any obligation to indemnify or otherwise hold such
Participant harmless from any or all of such taxes.

 

(b)  In the event that the Company determines
that any provision of this Plan violates, or would result in any material liability (other than liabilities for the Severance Benefits)
to the Company under, any law, regulation, rule or similar authority of any governmental agency the Company shall be entitled, notwithstanding
Section 8(l), to amend or modify such provision as the Company determines in its discretion to be necessary or desirable to
avoid such violation or liability, and in no event shall any Participant’s consent be required for such amendment or modification.

 

(c)  The payments under this Plan are designated
as separate payments for purposes of the short-term deferral rule under Treasury Regulation Section 1.409A-1(b)(4), the exemption
for involuntary terminations under separation pay plans under Treasury Regulation Section 1.409A-1(b)(9)(iii), and the exemption
for medical expense reimbursements under Treasury Regulation Section 1.409A-1(b)(9)(v)(B). As a result, (i) payments that are
made on or before the 15th day of the third month of the calendar year following the year that includes Participant’s Termination
Date, (ii) any additional payments that are made on or before the last day of the second calendar year following the year of Participant’s
Termination Date and do not exceed the lesser of two times Participant’s annual rate of pay in the year prior to the Termination
Date or two times the limit under Code Section 401(a)(17) then in effect, and (iii) continued medical expense reimbursements
during the applicable COBRA period, are intended to be exempt from the requirements of Section 409A of the Code.

 

(d)  To the extent any amounts under this
Plan are payable by reference to a Participant’s termination of Employment, such term and similar terms shall be deemed to refer
to such Participant’s “separation from service,” within the meaning of Section 409A of the Code. Notwithstanding
any other provision in this Plan, to the extent any payments hereunder constitute “nonqualified deferred compensation,” within
the meaning of Section 409A of the Code (a “Section 409A Payment”), and Participant is a specified employee,
within the meaning of Treasury Regulation Section 1.409A-1(i), as determined by the Company in accordance with any method permitted
under Section 409A of the Code, as of the date of Participant’s separation from service, each such Section 409A Payment
that is payable upon such Participant’s separation from service and would have been paid prior to the six-month anniversary of such
Participant’s separation from service, shall be delayed until the earlier to occur of (i) the six-month anniversary of Participant’s
separation from service and (ii) the date of Participant’s death. Further, to the extent that any amount is a Section 409A
Payment and such payment is conditioned upon Participant’s execution of a release or Participation and Restrictive Covenant Agreement
and which is to be paid or provided during a designated period that begins in one taxable year and ends in a second taxable year, then
such Section 409A Payment shall be paid or provided in the later of the two taxable years.

 

    9

     

    

 

(e)  Any reimbursements payable to a Participant
pursuant to this Plan or otherwise shall be paid to such Participant in no event later than the last day of the calendar year following
the calendar year in which such Participant incurred the reimbursable expense. Any amount of expenses eligible for reimbursement, or in-kind
benefit provided, during a calendar year shall not affect the amount of expenses eligible for reimbursement, or in-kind benefit to be
provided, during any other calendar year. The right to any reimbursement or in-kind benefit pursuant to this Plan shall not be subject
to liquidation or exchange for any other benefit.

 

SECTION 6. Covenants. Each Participant’s
participation in this Plan is conditioned upon Participant’s execution of a Participation and Restrictive Covenant Agreement within
thirty (30) days after such agreement is delivered to such Participant (or such later date as permitted by the Plan Administrator).
If a Participant breaches any of the covenants in the Participation and Restrictive Covenant Agreement, including any non-competition,
non-solicitation, non-disparagement or confidentiality covenants contained therein, (i) Participant’s entitlement to Severance
Benefits shall be null and void, (ii) all rights to receive or continue to receive Severance Benefits shall thereupon cease and (iii) Participant
shall immediately repay to the Company all amounts theretofore paid to, and the value of all benefits theretofore received by, Participant.
The foregoing shall not limit any other rights or remedies the Company may have existing in its favor, including injunctive relief.

 

SECTION 7. Offset; No Mitigation.

 

(a)  To the extent permitted by Section 409A
of the Code, the amount of a Participant’s payments under this Plan shall be reduced to the extent necessary to defray amounts owed
by Participant due to unused expense account balances, overpayment of salary, awards or bonuses, advances or loans.

 

(b)  In no event shall any Participant be
obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Participant under any of the
provisions of this Plan and, such amounts shall not be reduced whether or not Participant obtains other employment, except as expressly
provided in Sections 3(a)(v) and 3(c).

 

SECTION 8. Miscellaneous.

 

(a)  Notices. All notices, requests,
consents and other communications hereunder to any party shall be deemed to be sufficient if delivered in writing in person or by telecopy
(or similar electronic means with a copy following by nationally recognized overnight courier) or sent by nationally-recognized overnight
courier or first class registered or certified mail, return receipt requested, postage prepaid, addressed to such party at the address
set forth below or at such other address as may hereafter be designated in writing by such party to the other parties.

 

	If to the Company:	Angel Oak Mortgage,Inc.
	 	3344 Peachtree Road NE, Suite 1725
	 	Atlanta, GA 30326
	 	Attention: General Counsel and Secretary
	 	 
	If to a Participant:	At the most recent address on file with the Company

 

or such other address or to the attention of such other person as the
recipient party shall have specified by prior written notice to the sending party. Any notice under this Plan shall be deemed to have
been given when so delivered, sent or mailed.

 

    10

     

    

 

(b)  Choice of Law. This Plan shall
be deemed to be made in Georgia, and, to the extent not preempted by ERISA or other federal law, the validity, interpretation, construction
and performance of this plan in all respects shall be governed by the laws of Georgia without regard to its principles of conflicts of
law.

 

(c)  No Waiver. No failure by the Company
or a Participant at any time to give notice of any breach by the Company or a Participant, or to require compliance with, any condition
or provision of this Plan shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time.

 

(d)  Severability. If a court of competent
jurisdiction determines that any provision of this Plan is invalid or unenforceable, then the invalidity or unenforceability of that provision
shall not affect the validity or enforceability of any other provision of this Plan, and all other provisions shall remain in full force
and effect.

 

(e)  Withholding of Taxes and Other Employee
Deductions. The Company may withhold from any benefits and payments made pursuant to this Plan all federal, state, city and other
taxes as may be required pursuant to any law or governmental regulation or ruling and all other normal employee deductions made with respect
to the Company’s employees generally.

 

(f)  Headings. The paragraph headings
have been inserted for purposes of convenience and shall not be used for interpretive purposes.

 

(g)  Interpretations. For purposes
of this Plan, the words “include” and “including,” and variations thereof, shall not be deemed to be terms of
limitation but rather shall be deemed to be followed by the words “without limitation”. The term “or” is not exclusive.
The word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other thing extends,
and such phrase shall not mean simply “if.” Wherever the context so requires, the masculine gender includes the feminine or
neuter, and the singular number includes the plural and conversely.

 

(h)  Successors. This Plan shall be
binding upon and inure to the benefit of the Company and any successor of the Company, including without limitation any person, association,
or entity which may hereafter acquire or succeed to all or substantially all of the business or assets of the Company by any means whether
direct or indirect, by purchase, merger, consolidation, or otherwise and the Company shall require any such acquirer successor to assume
this Plan and the obligations and liabilities contemplated thereunder, including, but not limited to the amendment and termination obligations
contemplated under Section 8(l). Participants’ rights, benefits and obligations under this Plan are personal and shall
not be voluntarily or involuntarily assigned, alienated, or transferred, whether by operation of law or otherwise, without the prior written
consent of the Company.

 

(i)  Non-Duplication. The Severance
Benefits provided under this Plan are not intended to result in any duplicative benefits to Participant and this Plan shall be administered
accordingly. Accordingly, the Plan Administrator, in good faith, shall exercise its discretion and to the extent permitted under applicable
law, equitably offset against Participant’s severance benefits under this Plan against any other severance, termination, or similar
benefits payable to Participant by the Company or amounts paid to comply with, or satisfy liability under, the Worker Adjustment and Retraining
Notification Act or any other foreign, federal, state, or local law requiring payments in connection with any termination of Employment
or workforce reduction, including, but not limited to, amounts paid in connection with paid leaves of absence, back pay, benefits, and
other payments intended to satisfy such liability or alleged liability. For the avoidance of doubt, this Plan shall replace any agreements
entered into between the Company and the Participant providing the Participant with severance or related benefits and the Participant
shall not be entitled to benefits under both this Plan and any other severance plan or policy maintained by the Company or its Affiliates
and amounts payable under this Plan shall be reduced by any amounts received or payable under any such severance plan or policy. To the
extent that the Severance Benefits payable hereunder are deemed to be a substitute for a Section 409A Payment provided under another
agreement with Participant, then the Severance Benefits payable hereunder shall be paid at the same time and in the same form as such
substituted Section 409A Payment to the extent required to comply with Section 409A of the Code.

 

    11

     

    

 

(j)  Deemed Resignations. Any termination
of a Participant’s Employment shall constitute an automatic resignation of such Participant as an officer of the Company and each
Affiliate of the Company, an automatic resignation from the board of directors, if applicable, of the Company and each Affiliate of the
Company and from the board of directors or similar governing body of any corporation, limited liability company or other entity in which
the Company or any Affiliate holds an equity interest and with respect to which board or similar governing body such Participant serves
as the Company’s or such Affiliate’s designee or other representative.

 

(k)  No Guarantee of Employment. This
Plan shall not be construed as creating any contract of Employment between the Company and its Affiliates, on the one hand, and any Participant,
on the other hand, nor shall this Plan be construed as restricting in any way the rights of the Company or any of its Affiliates to terminate
the Employment of any Participant at any time and for any reason subject, however, to any rights of a Participant under this Plan.

 

(l)  Amendment and Termination of this
Plan. Except as specifically provided in Section 5, the Committee may amend, modify or terminate this Plan at any time;
provided, however, that (i) no such amendment, modification or termination will be effective unless each affected Participant
has received written notice thereof at least twelve (12) months prior to such amendment, modification or termination becoming effective;
(ii) no such amendment, modification or termination may materially impair the rights of a Participant whose Termination Date previously
occurred; and (iii) a Participant’s right to receive payments or benefits with respect to a CIC Qualifying Termination shall
not be adversely affected by an amendment or termination of this Plan that is made within six (6) months before or twelve (12) months
after a Change in Control. The failure of the Company or a Participant to insist upon strict adherence to any term of this Plan on any
occasion shall not be considered as a waiver of the rights of the Company or such Participant or deprive the Company or such Participant
of the right thereafter to insist upon strict adherence to that term or any other term of this Plan. No failure or delay by the Company
or any Participant in exercising any right or power hereunder will operate as a waiver thereof, nor will any single or partial exercise
of any such right or power, or any abandonment of any steps to enforce such right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. For the avoidance of doubt, a Participation’s participation in this Plan shall terminate
upon the earliest to occur of (i) the date of termination of the Participant’s employment by the Company if no benefits are
payable under the Plan, (ii) the date the Company satisfies its obligation, if any, to make payments and provide benefits to the
Participant pursuant to the Plan, (iii) the removal of the Participant from participation in this Plan in accordance with Section 2,
and (iv) termination of the Plan in accordance with this Section 8(l) prior to the date the Participant terminates employment
with the Company.

 

SECTION 9. Survival. The provisions
of this Plan, including Sections 3, Section 4, Section 5, Section 6, Section 7
and Section 8 shall survive and remain binding and enforceable, notwithstanding the expiration or termination of this Plan,
the termination of a Participant’s Employment for any reason or any settlement of the financial rights and obligations arising from
such Participant’s participation hereunder, to the extent necessary to preserve the intended benefits of such provisions.

 

* * * * * *

 

    12

     

    

 

IN WITNESS
WHEREOF, the Company has caused this Plan to be executed on its behalf, to be effective as of the Effective Date.

 

	 	
    ANGEL OAK MORTGAGE, INC.

    

    

    

	 	 
	 	/s/ Robert Williams
	 	Robert Williams
	 	Chief Executive Officer and President

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